Document:

iex10-1.htm

    
      

      8720
Stony Point Parkway

                                                                  Suite
200

      Richmond,
Virginia 23235

                                                            Phone:
(804) 565-3000

                                                        Fax:
(804) 565-3500

    

    
      
        

      

    

    July 2,
2009

     

     

    Dr.
Geoffrey Allan,

    XX XXX
XXX,

    Richmond,
Virginia, xxxxx

     

    RE:    Separation
Agreement and General Release

     

    Dear
Geoff:

        

        This letter
sets out the terms of our agreement regarding your separation and release of
claims with respect to the termination of your employment with Insmed
Incorporated (“Insmed” or “us”) effective on June 15, 2009 (your “Date of
Termination”).

     

        Following
your Date of Termination, we will pay you (or, in the event of your death, your
estate) a single lump-sum severance payment in the amount of $675,000, which
shall be reduced for applicable withholding taxes, and which represents the sum
of (i) your current annual base salary rate of $450,000, plus (ii) a payment of
$225,000 representing your annual bonus for 2009.  This amount will be
paid on the first regular pay date following the date on which you have signed
and returned this letter to Insmed and the revocation period described below has
expired.

     

        In addition,
we will directly pay or reimburse you for 100% of the applicable COBRA premiums
for continued coverage under our group health plan for you and your qualified
beneficiaries for a period of up to eighteen months following your Date of
Termination.  If at the end of such period you are eligible to and
choose to convert your coverage under our group health policy to an individual
policy, we will also pay or reimburse you for 100% of your premiums under the
converted individual policy for an additional period of up to eighteen months;
provided, however, that if you become eligible for alternate health coverage
during such period, our obligation to continue to pay or reimburse for your such
premiums will cease at such time.  You may apply for short term
disability and long term disability benefits under the Insmed short term
disability and long term disability policies, with any benefits being subject to
the terms of those policies.

     

        We will
provide you with the use of the automobile that is currently made available to
you until the end of the current lease period, which is approximately 18
months.  We will pay for the lease and insurance costs on the
automobile until the end of the current lease period.

     

        With respect
to your stock options that were vested as of your Date of Termination, the
exercise period for each option will be extended to the expiration date of that
option as set in the option agreement.  Otherwise, the provisions of
your stock options, restricted stock and restricted stock unit awards, as
applicable, will be governed by the terms and conditions of your award
agreements and of our equity incentive plan, including the forfeiture of any
unvested stock options.

     

        In exchange
for the severance benefits described above, you agree on behalf of yourself,
your heirs, representatives, executors, estate, successors and assigns, to waive
and release Insmed, its directors,
officers, employees, agents, insurers, reinsurers, attorneys, successors,
assigns and any parent, subsidiary and affiliated companies (collectively, the
“Released Parties”), from all claims you ever had or might now have against the
Released Parties relating in any way to your employment with Insmed or the
termination of that employment, whether or not you are, or ever were, aware that
they existed.  The claims you are agreeing to release specifically
include, but are not limited to,  any and all claims against the
Released Parties based upon state, federal, local, foreign or common law,
including but not limited to claims under the Age Discrimination Act of 1967, as
amended, Title VII of the Civil Right Act of 1964, as amended, the Americans
with Disabilities Act, the Employee Retirement Income Security Act of 1974, the
National Labor Relations Act, the Fair Labor Standards Act, the Portal to Portal
Act, the Worker Adjustment and Retraining Act, the Equal Pay Act, claims for
wrongful discharge, emotional distress, wages, damage to reputation, attorneys’
fees, and any claim based on contract or tort, including without limitation any
claim under your change in control agreement with us dated March 14, 2007 (your
“Change in Control Agreement”).

     

        In addition,
you agree that you will continue to abide through and after your Date of
Termination by the confidentiality restriction contained in Section 17 of your
Change in Control Agreement.  You also agree that you will abide for a
period of eighteen months following your Date of Termination by the covenant not
to compete set forth in Section 18 of your Change in Control Agreement as though
your employment had been terminated under such agreement.  In
addition, you also agree to abide by the applicable terms of the covenants not
to compete or solicit contained in our agreement with Merck & Co. dated
February 12, 2009, as well as in any other agreement to which Insmed or any of
our subsidiaries is a party.  You further agree that you will continue
to comply through and after your Date of Termination with all applicable terms
and conditions of our insider trading policy with respect to the exercise or
sale of the equity awards you have received from us or otherwise with respect to
any transactions in our stock, including without limitation the prohibition of
trading while in possession of material non-public information and the
requirement to obtain pre-clearance and following the other procedures under the
policy in connection with any trading in our stock.

     

        You have a
period of twenty-one days in which to consider the terms of this letter before
you sign it, although you are free to sign and return it at any time before such
period has elapsed.  You acknowledge that you have been advised to
consult with counsel before signing this letter.  The terms of this
letter will automatically become effective seven days after the date on which
you have signed and returned the letter to me.  You have the right to
revoke this letter at any time within that seven-day period.  If you
decide to revoke this letter, you must provide me with a signed notice of
revocation on or before the end of the seven-day period.

    If you
agree with the terms of this letter, please sign below and return the signed
letter to me by not later than July 6th.
2009.

     

    Sincerely,

     

                      
/s/ Kevin P. Tully

    __________________________

    Name: Kevin P. Tully

    Title  : CFO

     

    ACCEPTED
AND AGREED:

         

            
/s/ Geoffrey
Allan

    _______________________

    Geoffrey
Allan

     

     July 2,
2009

    _______________________

    DateExhibit
4.1

 

INDENTURE

 

between

 

LEVEL 3 COMMUNICATIONS, INC.

 

and

 

THE BANK OF NEW YORK MELLON

 

as Trustee

 

UP TO $500,000,000

 

7% CONVERTIBLE SENIOR NOTES Due 2015

 

 

DATED AS OF JUNE 26, 2009

 

 

CROSS REFERENCE TABLE

 

	
  TIA
  Section

  	
   

  	
  Indenture Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.11

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(5)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.12

  	
   

  
	
  (b)

  	
   

  	
  7.12

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  11.03

  	
   

  
	
  (c)

  	
   

  	
  11.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
  (b)

  	
   

  	
  7.06

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  (d)

  	
   

  	
  N.A.

  	
   

  
	
  314(a)

  	
   

  	
  7.07

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  (c)(1)

  	
   

  	
  N.A.

  	
   

  
	
  (c)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (d)

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
  N.A.

  	
   

  
	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01

  	
   

  
	
  (b)

  	
   

  	
  7.05

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  (d)(1)

  	
   

  	
  7.01

  	
   

  
	
  (d)(2)

  	
   

  	
  7.01

  	
   

  
	
  (d)(3)

  	
   

  	
  7.01

  	
   

  
	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a) (last
  sentence)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  317(a)(1)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  318(a)

  	
   

  	
  N.A.

  	
   

  

 

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  1

  
	
  SECTION 1.02.

  	
  Other Definitions

  	
  9

  
	
  SECTION 1.03.

  	
  Incorporation by Reference of Trust Indenture Act

  	
  9

  
	
  SECTION 1.04.

  	
  Rules of Construction

  	
  10

  
	
  SECTION 1.05.

  	
  Acts of Holders

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  THE SECURITIES

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Designation Amount And Issue Of Securities

  	
  11

  
	
  SECTION 2.02.

  	
  Form and Dating

  	
  12

  
	
  SECTION 2.03.

  	
  Execution and Authentication

  	
  13

  
	
  SECTION 2.04.

  	
  Registrar, Paying Agent and Conversion Agent

  	
  13

  
	
  SECTION 2.05.

  	
  Paying Agent to Hold Money and Securities in Trust

  	
  14

  
	
  SECTION 2.06.

  	
  Holder Lists

  	
  14

  
	
  SECTION 2.07.

  	
  Transfer and Exchange

  	
  14

  
	
  SECTION 2.08.

  	
  Replacement Securities

  	
  16

  
	
  SECTION 2.09.

  	
  Outstanding Securities; Determinations of Holders’ Action

  	
  16

  
	
  SECTION 2.10.

  	
  Temporary Securities

  	
  17

  
	
  SECTION 2.11.

  	
  Cancellation

  	
  17

  
	
  SECTION 2.12.

  	
  Persons Deemed Owners

  	
  18

  
	
  SECTION 2.13.

  	
  Global Securities

  	
  18

  
	
  SECTION 2.14.

  	
  CUSIP Numbers

  	
  23

  
	
  SECTION 2.15.

  	
  Defaulted Interest

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  PURCHASE AT OPTION OF HOLDERS UPON A DESIGNATED EVENT

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Purchase of Securities at Option of the Holders upon a
  Designated Event

  	
  23

  
	
  SECTION 3.02.

  	
  Notice of Designated Event; Designated Event Purchase
  Notice

  	
  24

  
	
  SECTION 3.03.

  	
  Effect of Designated Event Purchase Notice

  	
  26

  
	
  SECTION 3.04.

  	
  Deposit of Designated Event Payment

  	
  27

  
	
  SECTION 3.05.

  	
  Securities Purchased in Part

  	
  27

  
	
  SECTION 3.06.

  	
  Covenant to Comply with Securities Laws upon Purchase of
  Securities

  	
  27

  
	
  SECTION 3.07.

  	
  Repayment to the Company

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
  28

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Principal, Premium, Interest on the Securities

  	
  28

  
				

 

i

 

TABLE OF CONTENTS (continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 4.02.

  	
  Compliance Certificate

  	
  28

  
	
  SECTION 4.03.

  	
  Maintenance of Office or Agency

  	
  28

  
	
  SECTION 4.04.

  	
  Limitation on Liens

  	
  29

  
	
  SECTION 4.05.

  	
  Delivery of Certain Information

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  When the Company May Merge, Etc.

  	
  29

  
	
  SECTION 5.02.

  	
  Successor Corporation Substituted

  	
  30

  
	
  SECTION 5.03.

  	
  Purchase Option on a Designated Event

  	
  31

  
	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  EVENTS OF DEFAULT

  	
  31

  
	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default

  	
  31

  
	
  SECTION 6.02.

  	
  Acceleration

  	
  32

  
	
  SECTION 6.03.

  	
  Other Remedies

  	
  33

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults

  	
  33

  
	
  SECTION 6.05.

  	
  Control by Majority

  	
  33

  
	
  SECTION 6.06.

  	
  Limitation on Suits

  	
  34

  
	
  SECTION 6.07.

  	
  Rights of Holders To Receive Payment

  	
  34

  
	
  SECTION 6.08.

  	
  Collection Suit by Trustee

  	
  34

  
	
  SECTION 6.09.

  	
  Trustee May File Proofs of Claim

  	
  34

  
	
  SECTION 6.10.

  	
  Priorities

  	
  35

  
	
  SECTION 6.11.

  	
  Undertaking for Costs

  	
  35

  
	
  SECTION 6.12.

  	
  Restoration of Rights and Remedies

  	
  35

  
	
  SECTION 6.13.

  	
  Rights and Remedies Cumulative

  	
  35

  
	
  SECTION 6.14.

  	
  Waiver of Stay, Extension or Usury Laws

  	
  36

  
	
  SECTION 6.15.

  	
  Notice of Default or Event of Default

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  TRUSTEE

  	
  36

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee

  	
  36

  
	
  SECTION 7.02.

  	
  Rights of Trustee

  	
  37

  
	
  SECTION 7.03.

  	
  Individual Rights of Trustee

  	
  39

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer

  	
  39

  
	
  SECTION 7.05.

  	
  Notice of Defaults

  	
  39

  
	
  SECTION 7.06.

  	
  Reports by Trustee to Holders

  	
  39

  
	
  SECTION 7.07.

  	
  Reports by Company

  	
  39

  
	
  SECTION 7.08.

  	
  Compensation and Indemnity

  	
  40

  

 

ii

 

TABLE OF CONTENTS (continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 7.09.

  	
  Replacement of Trustee

  	
  41

  
	
  SECTION 7.10.

  	
  Successor Trustee by Merger

  	
  42

  
	
  SECTION 7.11.

  	
  Eligibility; Disqualification

  	
  42

  
	
  SECTION 7.12.

  	
  Preferential Collection of Claims Against Company

  	
  42

  
	
  SECTION 7.13.

  	
  Money Held in Trust

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  DISCHARGE OF INDENTURE

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Discharge of Liability on Securities

  	
  42

  
	
  SECTION 8.02.

  	
  Repayment of the Company

  	
  43

  
	
  SECTION 8.03.

  	
  Deposited Monies to Be Held in Trust by Trustee

  	
  43

  
	
  SECTION 8.04.

  	
  Reinstatement

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  AMENDMENTS

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders

  	
  43

  
	
  SECTION 9.02.

  	
  With Consent of Holders

  	
  45

  
	
  SECTION 9.03.

  	
  Compliance with Trust Indenture Act

  	
  46

  
	
  SECTION 9.04.

  	
  Revocation and Effect of Consents, Waivers and Actions

  	
  46

  
	
  SECTION 9.05.

  	
  Notation on or Exchange of Securities

  	
  46

  
	
  SECTION 9.06.

  	
  Trustee to Sign Supplemental Indentures

  	
  46

  
	
  SECTION 9.07.

  	
  Effect of Supplemental Indentures

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  
	
  CONVERSION

  	
  47

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Right To Convert

  	
  47

  
	
  SECTION 10.02.

  	
  Exercise of Conversion Privilege; Issuance of Common Stock
  on Conversion; No Adjustment for Interest or Dividends

  	
  49

  
	
  SECTION 10.03.

  	
  Cash Payments in Lieu of Fractional Shares

  	
  50

  
	
  SECTION 10.04.

  	
  Conversion Rate

  	
  50

  
	
  SECTION 10.05.

  	
  Adjustment of the Conversion Rate

  	
  50

  
	
  SECTION 10.06.

  	
  Effect of Reclassification, Consolidation, Merger or Sale

  	
  58

  
	
  SECTION 10.07.

  	
  Taxes on Shares Issued

  	
  59

  
	
  SECTION 10.08.

  	
  Reservation of Shares; Shares to Be Fully Paid; Listing of
  Common Stock

  	
  59

  
	
  SECTION 10.09.

  	
  Responsibility of Trustee

  	
  59

  
	
  SECTION 10.10.

  	
  Notice to Holders Prior to Certain Actions

  	
  60

  
	
  SECTION 10.11.

  	
  Restriction on Common Stock Issuable upon Conversion

  	
  60

  
	
  SECTION 10.12.

  	
  Rights Issued in Respect of Common Stock Issued Upon
  Conversion

  	
  61

  

 

iii

 

TABLE OF CONTENTS (continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
  62

  
	
   

  	
   

  
	
  SECTION 11.01.

  	
  Trust Indenture Act Controls

  	
  62

  
	
  SECTION 11.02.

  	
  Notices

  	
  62

  
	
  SECTION 11.03.

  	
  Communication by Holders with Other Holders

  	
  63

  
	
  SECTION 11.04.

  	
  Certificate and Opinion as to Conditions Precedent

  	
  63

  
	
  SECTION 11.05.

  	
  Statements Required in an Officers’ Certificate or Opinion

  	
  63

  
	
  SECTION 11.06.

  	
  Separability Clause

  	
  63

  
	
  SECTION 11.07.

  	
  Rules by Trustee, Paying Agent, Conversion Agent and
  Registrar

  	
  63

  
	
  SECTION 11.08.

  	
  Legal Holidays

  	
  63

  
	
  SECTION 11.09.

  	
  Governing Law

  	
  64

  
	
  SECTION 11.10.

  	
  No Recourse Against Others

  	
  64

  
	
  SECTION 11.11.

  	
  Successors

  	
  64

  
	
  SECTION 11.12.

  	
  Multiple Originals

  	
  64

  
	
  SECTION 11.13.

  	
  Waiver of Jury Trial

  	
  64

  
	
  SECTION 11.14.

  	
  Force Majeure

  	
  64

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of
  Global Security

  	
   

  
	
  Exhibit A-1

  	
  Form of
  Certificated Security

  	
   

  
	
  Exhibit B

  	
  Transfer
  Certificate

  	
   

  
	
  Exhibit C

  	
  Form of
  Restricted Common Stock Legend

  	
   

  
	
  Exhibit D

  	
  Form of
  Transfer Certificate for Transfer of Restricted Common Stock

  	
   

  
				

 

iv

 

INDENTURE dated as of June 26,
2009, between LEVEL 3 COMMUNICATIONS, INC., a Delaware corporation (the “Company”),
and THE BANK OF NEW YORK MELLON, a New York banking corporation, as trustee
hereunder (the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company has duly authorized the creation of an
issue of its 7% Convertible Senior Notes due 2015 (the “Securities”) of
substantially the tenor and amount hereinafter set forth, and to provide
therefor the Company has duly authorized the execution and delivery of this
Indenture.

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

 

SECTION 1.01.                      Definitions.  For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

 

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

 

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

 

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

 

(iv)                              unless otherwise indicated,
references to Articles, Sections, paragraphs or other subdivisions are
references to such Articles, Sections, paragraphs or other subdivisions of this
Indenture

 

 

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

 

“Acquired Debt” means, with respect to any
specified Person, (i) indebtedness of any other Person existing at the
time such Person merges with or into or consolidates with such specified Person
and (ii) 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.

 

“Additional Securities” means, subject to the
Issuer’s compliance with the covenants in this Indenture, 7% Senior Convertible
Notes due 2015 issued from time to time after the Issue Date under the terms of
this Indenture (other than pursuant to Section 2.07, 2.08 or 2.10 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 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.

 

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

 

“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 a
resolution certified by the Secretary or an Assistant Secretary of the Company
to have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification.

 

“Business Day” means each day of the year
other than a Saturday or a Sunday on which banking institutions are not
required or authorized by law, regulation or executive order to close in The
City of New York.

 

“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-1.

 

2

 

A “Change in Control” of the Company will be
deemed to have occurred at such time after the original issuance of Securities
as any of the following events shall occur:

 

(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 (other
than as a result of any merger, share exchange, transfer of assets or similar
transaction solely for the purpose of changing the Company’s jurisdiction of
incorporation and resulting in a reclassification, conversion or exchange of
outstanding shares of the Common Stock solely into shares of common stock of
the surviving entity); 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)                                 (1) 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, 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 a majority of the total voting power of the Voting Stock of the
Company (other than as a result of any merger, share exchange, transfer of
assets or similar transaction solely for the purpose of changing the jurisdiction
of incorporation of the Company and resulting in a reclassification, conversion
or exchange of outstanding shares of the Common Stock solely into shares of
common stock of the surviving entity) and (2) a Termination of Trading
shall have occurred; or

 

(c)                                  the Company’s consolidation
or merger with or into any other Person, any merger of another Person into the
Company, or any 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,
other than (i) any transaction (A) that does not result in any
reclassification, conversion, exchange or cancellation of outstanding shares of
the Company’s Capital Stock and (B) pursuant to which holders of the
Company’s Capital Stock immediately prior to the 

 

3

 

transaction are entitled to exercise, directly or indirectly, 50% or
more of the total voting power of all shares of Capital Stock entitled to vote
generally in the election of directors of the continuing or surviving person
immediately after the transaction; or (ii) any merger, share exchange,
transfer of assets or similar transaction solely for the purpose of changing
the Company’s jurisdiction of incorporation and resulting in a
reclassification, conversion or exchange of outstanding shares of the Common
Stock solely into shares of common stock of the surviving entity; or

 

(d)                                 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 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

 

(e)                                  the shareholders of the
Company shall have approved any plan of liquidation or dissolution of the
Company.

 

“Closing Sale Price”
of the shares of Common Stock on any date means the closing per share sale
price (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 on the Nasdaq Global Select Market or such principal
United States securities exchange on which shares of Common Stock may be traded
or, if the shares of Common Stock are not approved for trading on the Nasdaq
Global Select Market or 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.

 

“Common Stock” means the Common Stock, $0.01
par value per share, of the Company as it exists on the date of this Indenture.
Subject to the provisions of Section 10.06, shares issuable on conversion
of Securities shall include only shares of Common Stock or shares of any class
or classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time
there shall be more than one such resulting class, the shares so issuable on
conversion of Securities shall include shares of all such classes, and the
shares of each such class then so issuable shall be substantially in the
proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

 

“common stock” means any stock of any class
of Capital Stock which has no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution
or winding up of the issuer.

 

“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, 

 

4

 

and, thereafter, “Company”
shall mean such successor. The foregoing sentence shall likewise apply to any
subsequent such successor or successors.

 

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

 

“Conversion Price” means $1,000 divided by
the applicable Conversion Rate.

 

“Corporate Trust Office” means the principal
office of the Trustee at which at any time its corporate trust business shall
be administered, which office at the date hereof is located at The Bank of New
York Mellon, 101 Barclay Street, Floor 8 West, New York, New York 10286, 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).

 

“Default” means any event, act or condition
the occurrence of which is, or after notice or the passage of time or both
would be, an Event of Default.

 

“Designated Event” means the occurrence of a
Change in Control or a Termination of Trading.

 

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

 

“Exchange Agreement” means the Exchange
Agreement, dated as of June 21, 2009, between the Company and Loomis,
Sayles & Company, L.P.

 

“Global Securities” means Securities that are
in the form of the Securities attached hereto as Exhibit A and, to the
extent that such Securities are required to bear the Legend required by Section 2.07,
such Securities will be in the form of a 144A Global Security.

 

“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.

 

“Interest Payment Date” means the date
specified in the Securities as the fixed date on which an installment of
interest on the Securities is due and payable.

 

“Interest Rate” means 7% per annum.

 

“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.

 

5

 

“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 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
with stockholders’ equity which constituted at least 15% of the Company’s
consolidated stockholders’ equity, all as determined as of the date of the
Company’s most recently prepared financial statements in accordance with GAAP.

 

“Officer” means the Chairman of the Board of
Directors, the President or a Vice President and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company.

 

“Officers’ Certificate” means a certificate
signed by an Officer of the Company.

 

“Opinion of Counsel” means a written opinion
of counsel, who may be counsel for the Company or who may be an employee of or
other counsel for the Company.

 

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

 

1.                                       Securities
theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

 

2.                                       Securities, or
portions thereof, for whose payment or redemption or repayment at the option of
the Holder money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities and any coupons appertaining
thereto, 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;

 

3.                                       Securities
which have been paid pursuant to Section 2.08 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant
to this Indenture, other than any such Securities in respect of which there
shall have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

4.                                       Securities
converted into Common Stock or Preferred Stock in accordance with or as
contemplated by this Indenture, if the terms of such Securities provide for
convertibility pursuant to Section 10.01.

 

6

 

“Permitted Holders” means the members of the
Board of Directors of the Company 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 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.

 

“principal” of a Security means the principal
amount due on the Stated Maturity as set forth on the face of the Security.

 

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

 

“Responsible Officer”, when used with respect
to the Trustee, means any officer within the corporate trust department of the
Trustee, including any vice president, any assistant vice president (whether or
not designated by a number or a word or words added before or after the title “vice
president”), any assistant secretary or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of such
officer’s knowledge 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 Exhibits A-1 and A-2 of this Indenture.

 

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

 

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

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities” has the meaning ascribed to it
in the first paragraph under the caption “Recitals of the Company.”

 

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

 

“Specified
Indebtedness” means (a) the Company’s 6.0% Convertible
Subordinated Notes due 2009, 11.5% Senior Notes due 2010, 6.0% Convertible
Subordinated Notes due 2010, 2.875% Convertible Senior Notes due 2010, 10.0%
Convertible Senior Notes due 2011, 5.25% Convertible Senior Notes due 2011,
3.5% Convertible Senior Notes due 2012, 

 

7

 

9% Convertible Senior
Discount Notes due 2013, 15% Convertible Senior Notes due 2013 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 or any guarantee thereof (other than
promissory notes or similar evidences 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). For the
avoidance of doubt, “Specified Indebtedness” shall not include indebtedness
among the Company or its Subsidiaries or among Subsidiaries of the Company.

 

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

 

“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.

 

“Termination of Trading” will be deemed to
have occurred if the Common Stock (or other common stock into which the Notes
are then convertible) is not listed for trading on a U.S. national securities
exchange.

 

“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.

 

“Trading Day”
means (a) if the applicable security is quoted on the Nasdaq Global Select
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.

 

“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 Capital
Stock of such Person which ordinarily has voting power for the election of
directors (or Persons performing similar 

 

8

 

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.                                                                 Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  1.05(a)

  
	
  “Additional Shares”

  	
   

  	
  10.01

  
	
  “Adjustment Event”

  	
   

  	
  10.05(j)

  
	
  “Agent Members”

  	
   

  	
  2.13(f)(5)

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01(h)

  
	
  “Business Combination”

  	
   

  	
  10.06

  
	
  “Conversion Agent”

  	
   

  	
  2.04

  
	
  “Conversion Date”

  	
   

  	
  10.02

  
	
  “Conversion Rate”

  	
   

  	
  10.04

  
	
  “Current Market Price”

  	
   

  	
  10.05(f)(1)

  
	
  “Custodian”

  	
   

  	
  6.01(h)

  
	
  “Defaulted Interest”

  	
   

  	
  2.15

  
	
  “Depositary”

  	
   

  	
  2.02(a)

  
	
  “Designated Event Offer”

  	
   

  	
  3.01(a)

  
	
  “Designated Event Payment”

  	
   

  	
  3.01(a)

  
	
  “Designated Event Purchase Date”

  	
   

  	
  3.01(b)

  
	
  “Designated Event Purchase Notice”

  	
   

  	
  3.02(b)

  
	
  “Determination Date”

  	
   

  	
  10.05(j)

  
	
  “Distribution”

  	
   

  	
  10.05(d)

  
	
  “DTC”

  	
   

  	
  2.02(a)

  
	
  “Effective Date”

  	
   

  	
  10.01

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Expiration Time”

  	
   

  	
  10.05(e)

  
	
  “Fair Market Value”

  	
   

  	
  10.05(f)(2)

  
	
  “Legal Holiday”

  	
   

  	
  11.08

  
	
  “Legend”

  	
   

  	
  2.07(f)

  
	
  “Notice of Default”

  	
   

  	
  6.01(d)

  
	
  “Original Securities”

  	
   

  	
  2.01

  
	
  “Paying Agent”

  	
   

  	
  2.04

  
	
  “Payment Default”

  	
   

  	
  6.01(e)

  
	
  “Purchased Shares”

  	
   

  	
  10.05(e)(i)

  
	
  “QIBs”

  	
   

  	
  2.02(a)

  
	
  “Record Date”

  	
   

  	
  10.05(f)(3)

  
	
  “Registrar”

  	
   

  	
  2.04

  
	
  “Restricted Common Stock Legend”

  	
   

  	
  10.11(a)

  
	
  “Rule 144A Information”

  	
   

  	
  4.05

  
	
  “Spinoff Valuation Period”

  	
   

  	
  10.05(d)(i)

  
	
  “Stock Price”

  	
   

  	
  10.01

  
	
  “Transfer”

  	
   

  	
  2.13(e)

  
	
  “Trigger Event”

  	
   

  	
  10.05(d)

  

 

SECTION 1.03.                                                                 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.

 

9

 

“indenture Security holder” means a Holder.

 

“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 TIA reference to another statute or defined by
SEC rule have the meanings assigned to them by such definitions.

 

SECTION 1.04.                                                                 Rules of
Construction.  Unless the
context otherwise requires:

 

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

 

(ii)                                  “or” is not exclusive;

 

(iii)                               “including” means including,
without limitation; and

 

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

 

SECTION 1.05.                                                                 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 their 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 1.05.

 

(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 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 that the Trustee deems sufficient.

 

(c)                                  The ownership of Securities
shall be proved by the register for the Securities or by a certificate of the
Registrar.

 

10

 

(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 resolution of the Board of Directors, 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 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 II

 

THE
SECURITIES

 

SECTION 2.01.                      Designation
Amount And Issue Of Securities.  The Securities shall be designated as “7%
Convertible Senior Notes due 2015”. 
Subject to Section 2.03, the Trustee shall authenticate Initial
Securities for original issue on the Issue Date in the aggregate principal
amount of $200,000,000 (the “Original Securities”).

 

The
Issuer shall be entitled, subject to its compliance with the covenants set
forth in this Indenture, to issue Additional Securities up to $300,000,000
under this Indenture which shall have identical terms as the Original
Securities, other than with respect to the date of issuance and issue price
(and such changes as are customary to permit escrow arrangements, if any, in
connection with the issuance of such Additional Securities).  The Original Securities and any Additional
Securities shall be treated as a single class for all purposes under this
Indenture.

 

With respect to the
Additional Securities, the Issuer shall set forth in an Officers’ Certificate,
a copy of each which shall be delivered to the Trustee, the following
information:

 

(1)          the aggregate
principal amount of such Additional Securities to be authenticated and
delivered pursuant to this Indenture; and

 

(2)          the issue
price, the issue date and the CUSIP number of such Additional Securities; provided,
however, that no Additional Securities may be issued after the
expiration of the “period of thirteen days” described in Treasury Regulation Section 1.1275-1(f)(1)(iii) unless
such issuance would be a 

 

11

 

“qualified
reopening” within the meaning of Treasury Regulation Section 1.1275-2(k)(3).

 

SECTION 2.02.                      Form and
Dating.  The Securities and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibits
A-1 and A-2, which are incorporated into and made a part of this Indenture. The
Securities 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). 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)           144A Global Securities.  Securities offered and sold within the United
States to “qualified institutional buyers” as defined in Rule 144A (“QIBs”)
in reliance on Rule 144A shall be issued initially in the form of a 144A
Global Security, which shall be deposited with the Trustee at its Corporate
Trust Office, as custodian for, and registered in the name of, The Depository
Trust Company (“DTC”) or its nominee (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 herein
provided. The aggregate principal amount of the 144A Global Security may from
time to time be increased or decreased by adjustments made on the records of
the Trustee and the Depositary as hereinafter provided.

 

(b)           Global Securities in
General.  Except as provided in Section 2.07
or 2.13, owners of beneficial interests in Global Securities will not be
entitled to receive physical delivery of Certificated Securities. 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
principal amount of Outstanding Securities from time to time endorsed thereon
and that the aggregate principal amount of Outstanding Securities represented thereby
may from time to time be reduced or increased, as appropriate, to reflect
exchanges and conversions.

 

Any
adjustment of the aggregate principal amount of a Global Security to reflect
the amount of any increase or decrease in the principal amount of Outstanding
Securities represented thereby shall be made by the Trustee in accordance with
instructions given by the Holder thereof as required by Section 2.13
hereof and shall be made on the records of the Trustee and the Depositary.

 

(c)           Book-Entry Provisions.  This Section 2.02(c) shall apply
only to Global Security deposited with or on behalf of the Depositary.

 

The
Company shall execute and the Trustee shall, in accordance with this Section 2.02(c),
authenticate and deliver initially one or more Global Securities that (a) shall
be registered in the name of the Depositary, (b) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary’s instructions or held
by the Trustee as custodian for such Depositary and (c) shall bear legends
substantially to the following effect:

 

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, 

 

12

 

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.”

 

(d)           Certificated
Securities.  Securities not issued as
interests in the Global Securities will be issued in certificated form
substantially in the form of Exhibit A-2 attached hereto.

 

SECTION 2.03.                      Execution and
Authentication.  One Officer
shall sign the Security for the Company by manual or facsimile signature.

 

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 of the Trustee,
and such duly executed certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder.

 

SECTION 2.04.                      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 

 

13

 

4.03. The term Conversion
Agent includes any additional conversion agent, including any named pursuant to
Section 4.03.

 

The
Company shall enter into an appropriate agency agreement with any Registrar,
Paying Agent, Conversion Agent or co-registrar (other than the Trustee). The
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 7.08. 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 2.05.                      Paying Agent to
Hold Money and Securities in Trust.  Except as otherwise provided herein, prior to
12:00 p.m., New York time on 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 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 money so
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 a
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.

 

SECTION 2.06.                      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. If the Trustee is not the Registrar, the
Company shall cause to be furnished to the Trustee at least semiannually on
each June 1 and December 1 during the term of the Securities a
listing of Holders dated within 13 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.

 

SECTION 2.07.                      Transfer and
Exchange.  Subject to
Sections 2.02(b), 2.07(b) and 2.13 hereof,

 

(a)           (i) upon surrender for
registration of transfer of any Security, together with a written instrument of
transfer satisfactory to the Registrar duly executed by the Holder or such
Holder’s attorney duly authorized in writing, at the office or agency of the
company designated as Registrar or co-registrar pursuant to Section 2.04,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, 

 

14

 

one or more new Securities
of any authorized denomination or denominations, of a like aggregate principal
amount. 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 transfer or exchange of the Securities from the Holder
requesting such transfer or exchange.

 

(ii)           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, upon surrender of the
Securities to be exchanged, together with a written instrument of transfer
satisfactory to the Registrar duly executed by the Holder or such Holder’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.

 

(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 2.13
and this Section 2.07(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.

 

(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.

 

(d)           Any Registrar appointed
pursuant to Section 2.04 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 form of
Security 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 Counsel, 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.

 

15

 

(g)           Any Security or Common Stock
issued upon the conversion or exchange of a Security that is purchased or owned
by the Company or any Affiliate thereof may not be resold by the Company or
such Affiliate unless registered under the Securities Act or resold pursuant to
an exemption from the registration requirements of the Securities Act in a
transaction which results in such Securities or Common Stock, as the case may
be, no longer being “restricted securities” (as defined under Rule 144).

 

SECTION 2.08.                      Replacement
Securities.  If (a) any
mutilated Security is surrendered to the Trustee, or (b) 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 as may be required by them 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, the Company shall
execute and upon its 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,
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 2.08, 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 2.08 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 2.08 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.

 

SECTION 2.09.                      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 or
delivered to it for cancellation, those paid pursuant to Section 2.08 and
those described in this Section 2.09 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 of the Outstanding 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 

 

16

 

relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities which a Responsible Officer of the Trustee 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 2.08, it ceases to be
Outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a protected purchaser.

 

Unless
the Company defaults in making the applicable payment, if the Paying Agent
holds, in accordance with this Indenture, on or prior to the Business Day
following the Designated Event Purchase Date, or on the Stated Maturity, money
or securities, if permitted hereunder, sufficient to pay Securities payable on
that date, then immediately after such Designated Event Purchase Date or Stated
Maturity, as the case may be, such Securities shall cease to be Outstanding and
interest on such Securities shall cease to accrue.

 

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 shall cease to accrue on such Security.

 

SECTION 2.10.                      Temporary
Securities.  Pending the
preparation of definitive Securities, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities which
are printed, lithographed, typewritten, mimeographed 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 Officer
executing such Securities may determine, as conclusively evidenced by such
Officer’s 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 2.04,
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 thereof a like principal amount 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 2.11.                      Cancellation.  All Securities surrendered for payment,
purchase or redemption by the Company pursuant to Article 3, conversion or
registration of transfer or exchange 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 which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee. The Company may not reissue,
reoffer or resell new Securities to replace Securities it has paid or delivered
to the Trustee for cancellation or that any 

 

17

 

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 2.11,
except as expressly permitted by this Indenture. All cancelled Securities shall
be disposed of by the Trustee in accordance with its customary procedures.

 

SECTION 2.12.                      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 principal or redemption price of the Security or the payment of any
Designated Event Payment in respect thereof, and 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 2.13.                      Global
Securities.  (a) 
Notwithstanding any other provisions of this Indenture or the Securities, (A) transfers
of a Global Security, in whole or in part, shall be made only in accordance
with Sections 2.07 and 2.13(a)(i), (B) transfers of a beneficial interest
in a Global Security for a Certificated Security shall comply with Sections
2.07 and 2.13(a)(ii) below, and (C) transfers of a Certificated
Security shall comply with Section 2.07 and Sections 2.13(a)(iii) and
(iv) below.

 

(i)            Transfer of Global
Security.  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 this clause (i) 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. Nothing in this Section 2.13(a)(i) shall
prohibit or render ineffective (A) any transfer of a beneficial interest
in a Global Security effected in accordance with the other provisions of this Section 2.13(a);
and (B) the transfer and exchange of beneficial interests in a Global
Security effected through the Depositary in accordance with this Indenture and
the procedures of the Depositary.

 

(ii)           Restrictions on Transfer of
a Beneficial Interest in a Global Security for a Certificated Security.  A beneficial interest in a Global Security
may not be exchanged for a Certificated Security except upon satisfaction of
the requirements set forth below. Upon receipt by the Trustee of a transfer of
a beneficial interest in a Global Security in accordance with Applicable
Procedures for a Certificated Security in the form satisfactory to the Trustee,
together with:

 

(A)          so long as the
Securities are Restricted Securities, a certification in the form set forth in Exhibit B;

 

(B)           written
instructions from the Company to the Trustee to make, or direct the Registrar
to make, an adjustment on its books and records with respect to such Global
Security to reflect a decrease in the aggregate principal amount of the
Securities represented by 

 

18

 

the
Global Security, such instructions to contain information regarding the Depositary
account to be credited with such decrease; and

 

(C)           if the Company
or Registrar so requests, to the extent contemplated by the Legend, an Opinion
of Counsel or other evidence reasonably satisfactory to them as to the
compliance with the restrictions set forth in the Legend, then the Trustee
shall cause, or direct the Registrar to cause, in accordance with the standing
instructions and procedures existing between the Depositary and the Registrar,
the aggregate principal amount of Securities represented by the Global Security
to be decreased by the aggregate principal amount of the Certificated Security
to be issued, shall issue such Certificated Security and shall debit or cause
to be debited to the account of the Person specified in such instructions a
beneficial interest in the Global Security equal to the principal amount of the
Certificated Security so issued.

 

(iii)          Transfer and Exchange of
Certificated Securities.  When
Certificated Securities are presented to the Registrar with a request:

 

(x) to
register the transfer of such Certificated Securities; or

 

(y) to
exchange such Certificated Securities for an equal principal amount of
Certificated Securities of other authorized denominations,

 

the
Registrar shall register the transfer or make the exchange as requested if its
reasonable requirements for such transaction are met; provided, however,
that the Certificated Securities surrendered for transfer or exchange:

 

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

 

(2)          so long as such
Securities are Restricted Securities, such Securities are being transferred or
exchanged pursuant to an effective registration statement under the Securities
Act or pursuant to clause (A), (B) or (C) below, and are accompanied
by the following additional information and documents, as applicable:

 

(A)          if such
Certificated Securities are being delivered to the Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or

 

(B)           if such
Certificated Securities are being transferred to the Company, a certification
to that effect; or

 

(C)           if such
Certificated Securities are being transferred pursuant to an exemption from
registration, (i) a certification to that effect 

 

19

 

(in
the form set forth in Exhibit B, if applicable) and (ii) if the
Company or Registrar so requests, an Opinion of Counsel or other evidence
reasonably satisfactory to them as to the compliance with the restrictions set
forth in the Legend.

 

(iv)          Restrictions on Transfer of
a Certificated Security for a Beneficial Interest in a Global Security. A
Certificated Security may not be exchanged for a beneficial interest in a
Global Security except upon satisfaction of the requirements set forth below.
Upon receipt by the Trustee of a Certificated Security, duly endorsed or
accompanied by appropriate instruments of transfer, in form reasonably
satisfactory to the Trustee, together with:

 

(1)          so long as the
Securities are Restricted Securities, certification, in the form set forth in Exhibit B,
that such Certificated Security is being transferred to a QIB in accordance

 

(2)          with Rule 144A;
and

 

(3)          written
instructions directing the Trustee to make, or to direct the Registrar to make,
an adjustment on its books and records with respect to such Global Security to
reflect an increase in the aggregate principal amount of the Securities
represented by the Global Security, such instructions to contain information
regarding the Depositary account to be credited with such increase, then the
Trustee shall cancel such Certificated Security and cause, or direct the
Registrar to cause, in accordance with the standing instructions and procedures
existing between the Depositary and the Registrar, the aggregate principal
amount of Securities represented by the Global Security to be increased by the
aggregate principal amount of the Certificated Security to be exchanged, and
shall credit or cause to be credited to the account of the Person specified in
such instructions a beneficial interest in the Global Security equal to the
principal amount of the Certificated Security so cancelled. If no Global
Securities are then Outstanding, the Company shall issue and the Trustee shall
authenticate, upon written order of the Company in the form of an Officers’
Certificate, a new Global Security in the appropriate principal amount.

 

(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 and other evidence the
Registrar may request as to the compliance with the restrictions set forth in
the Legend.

 

(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 

 

20

 

registration statement under
the Securities Act, transferred in compliance with Rule 144 or, if
earlier, when the restricted Securities can be sold free of restriction by an
Affiliate. 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 2.13 (accompanied, in the event that such
restrictions on transfer have terminated by reason of a transfer in compliance
with Rule 144, by an Opinion of Counsel 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, which shall not bear the 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 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 DTC participants, members or beneficial owners 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. 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.

 

(d)           In the event that Rule 144
as promulgated under the Securities Act is amended to shorten the holding
period, then restrictions on transfer on the Securities and the Common Stock
will be deemed to refer to the shortened restriction period. The Company
undertakes to inform the Trustee if such change to Rule 144 occurs and the
effect (if any) to the restrictions on transfer applicable to the Securities
and Common Stock and shall provide additional information (including an Opinion
of Counsel and/or an Officers’ Certificate) if so requested by the Trustee.

 

(e)           As used in this Section 2.13,
the term “transfer” encompasses any sale, pledge, transfer,
hypothecation or other disposition of any Security.

 

(f)            The provisions of clauses
(1), (2), (3), (4) and (5) below shall apply only to Global Securities:

 

(1)          Notwithstanding
any other provisions of this Indenture or the Securities, except as provided in
Section 2.13(a)(i), 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 (i) 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 or (ii) an Event of Default has occurred and
is continuing with respect to the Securities. Any Global Security exchanged

 

21

 

pursuant
to clause (i) above shall be so exchanged in whole and not in part, and
any Global Security exchanged pursuant to clause (ii) 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.

 

(2)          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 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 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.

 

(3)          Subject to the
provisions of clause (5) 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.

 

(4)          In the event of
the occurrence of any of the events specified in clause (1) above, the
Company will promptly make available to the Trustee a reasonable supply of
Certificated Securities in definitive, fully registered form, without interest
coupons.

 

(5)          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
between the Depositary, its Agent Members and any other person on 

 

22

 

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.

 

SECTION 2.14.                      CUSIP Numbers.  The Company in issuing the Securities may use
“CUSIP” numbers, and if so, the Trustee shall use the CUSIP numbers in notices
to Securityholders as a convenience to Securityholders; provided that any such
notice may state that no representation is made as to the correctness of such
numbers as printed on the Securities and that reliance may be placed only on
the other identification numbers printed on the Securities. The Company will
promptly notify the Trustee of any change in the CUSIP numbers.

 

SECTION 2.15.                      Defaulted
Interest.  If the
Company does not punctually pay or duly provide for the payment of any interest
payable on an Interest Payment Date with respect to any Security (herein called
“Defaulted Interest”), it shall pay, or shall deposit with the Paying
Agent money in immediately available funds sufficient to pay, the Defaulted
interest, plus (to the extent lawful) any interest payable on the Defaulted
Interest, to the Persons who are Holders on a subsequent special record date. A
special record date, as used in this Section 2.15 with respect to the
payment of any Defaulted Interest, shall mean the 15th day immediately
preceding the date fixed by the Company for the payment of Defaulted Interest,
whether or not such day is a Business Day. At least 15 days before the
subsequent special record date, the Company shall mail to each Holder and to
the Trustee (or cause the Trustee to mail to each Holder) a notice that states
the subsequent special record date, the payment date and the amount of
Defaulted Interest to be paid.

 

ARTICLE III

 

PURCHASE
AT OPTION OF HOLDERS UPON A DESIGNATED EVENT

 

SECTION 3.01.                      Purchase of
Securities at Option of the Holders upon a Designated Event.

 

(a)           Following a Designated
Event, 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 100% of the principal amount thereof, plus
(subject to the following sentence) accrued and unpaid interest to, but
excluding, the Designated Event Purchase Date (as defined below).  If such Designated Event Purchase Date is
after a Regular Record Date or a special record date but on or prior to the
corresponding Interest Payment Date or a defaulted Interest Payment Date,
however, then the Company shall pay the interest payable on such date to the
Person in whose name the Security is registered at the close of business on the
relevant Regular Record Date or special record date.

 

(b)           Notice of a Designated Event
shall be mailed by or at the direction of the Company to the Holders of
Securities as specified in Section 3.02. 
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 in exchange for the Designated Event Payment.  Payment shall be made by the Company in respect
of Securities properly tendered pursuant to this Section 3.01 on a
Business Day specified by the Company (the “Designated Event Purchase Date”)
which shall 

 

23

 

be no earlier than
20 Business Days and no later than 30 Business Days after the date of
the notice given pursuant to Section 3.02.

 

SECTION 3.02.                      Notice of
Designated Event; Designated Event Purchase Notice.

 

(a)           Within 30 days after the
occurrence of a Designated Event, the Company, or, at the written request and
expense of the Company within 30 days after such occurrence, the Trustee, shall
give to all Holders notice of the occurrence of the Designated Event and of the
purchase right set forth herein arising as a result thereof. The Company shall
also deliver a copy of such notice of a purchase right to the Trustee. The
notice shall include a form of Designated Event Purchase Notice to be completed
by the Holder and shall state:

 

(i)            briefly, the events causing
a Designated Event and the date of such Designated Event;

 

(ii)           the date by which the
Designated Event Purchase Notice pursuant to this Section 3.02 must be
given;

 

(iii)          the Designated Event
Purchase Date;

 

(iv)          the Designated Event
Payment;

 

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

 

(vi)          that Securities as to which
a Designated Event Purchase Notice has been given may be converted pursuant to
the Indenture only if the Designated Event Purchase Notice has been withdrawn
in accordance with the terms of this Indenture;

 

(vii)         that Securities must be
surrendered to the Paying Agent to collect payment;

 

(viii)        that the Designated Event
Payment for any Security as to which a Designated Event Purchase Notice has
been duly given and not withdrawn will be paid promptly following the later of
the Designated Event Purchase Date and the time of surrender of such Security
as described in (7) above;

 

(ix)           briefly, the procedures the
Holder must follow to exercise rights under Section 3.01;

 

(x)            briefly, the conversion
rights of the Securities, including the Conversion Rate and any adjustments
thereto, including, if such Designated Event constitutes a Change in Control
described in clause (b) or (c) in the definition thereof, whether any
Additional Shares (as defined in Section 10.01) will be issued by the
Company to Holders of Securities who convert their Securities in connection
with such Change in Control;

 

24

 

(xi)           the procedures for
withdrawing a Designated Event Purchase Notice;

 

(xii)          the CUSIP number of the
Securities;

 

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

 

(xiv)        that in the case of a
Designated Event Purchase Date that occurs after a Regular Record Date or
special record date and on or prior to the corresponding Interest Payment Date
or Defaulted Interest payment date, the interest due on such date shall be paid
to the Holder of such Security at the close of business on the relevant Regular
Record Date or special record date.

 

(b)           A Holder may exercise its
rights specified in Section 10.06 hereof upon delivery of a written notice
of purchase (a “Designated Event Purchase Notice”) to the Paying Agent
prior to the Designated Event Purchase Date, stating:

 

(i)            the certificate number, if
any, of each Security, if any, which the Holder will deliver to be purchased;

 

(ii)           the portion of the principal
amount of the Security which the Holder will deliver to be purchased, which
portion must be $1,000 or any whole multiple thereof; and

 

(iii)          that such Security shall be
purchased pursuant to the terms and conditions specified on the reverse side of
the Securities and in this Indenture;

 

provided,
however, that if the Securities are not in certificated form, a Holder’s
Designated Event Purchase Notice must comply with the applicable Depositary
procedures.

 

The
delivery of such Security to the Paying Agent prior to the Designated Event
Purchase Date (together with all necessary endorsements) at the offices of the
Paying Agent shall be a condition to the receipt by the Holder of the
Designated Event Payment therefor; provided, however, that such Designated
Event Payment shall be so paid only if the Security so delivered to the Paying
Agent shall conform in all respects to the description thereof set forth in the
related Designated Event Purchase Notice.

 

The
Company shall purchase from the Holder thereof, pursuant to this Section 3.02,
a portion of a Security so delivered for purchase if the principal amount of
such portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

 

Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.02
shall be consummated by the delivery of the consideration to be received by the

 

25

 

Holder
promptly following the later of the Designated Event Purchase Date and the time
of delivery of the Security to the Paying Agent in accordance with this Section 3.02.

 

Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the
Designated Event Purchase Notice contemplated by this Section 3.02(b) shall
have the right to withdraw such Designated Event Purchase Notice at any time
prior to the close of business on the Business Day immediately preceding the
Designated Event Purchase Date by delivery of a written notice of withdrawal to
the Paying Agent in accordance with Section 3.03.

 

The
Paying Agent shall promptly notify the Company of the receipt by it of any
Designated Event Purchase Notice or written withdrawal thereof.

 

SECTION 3.03.                      Effect of
Designated Event Purchase Notice.  Upon receipt by the Paying Agent of the
Designated Event Purchase Notice specified in Section 3.02, the Holder of
the Security in respect of which such Designated Event Purchase Notice was
given shall (unless such Designated Event Purchase Notice is withdrawn as
specified in the following two paragraphs) thereafter be entitled to receive
solely the Designated Event Payment with respect to such Security.  Such payment shall be paid to such Holder,
subject to receipt of consideration for the Securities by the Paying Agent,
promptly following the later of (x) the Designated Event Purchase Date
with respect to such Security (provided the conditions in Section 3.02, as
the case may be, have been satisfied) and (y) the time of delivery of such
Security to the Paying Agent by the Holder thereof in the manner required by Section 3.02,
as the case may be.  Securities in
respect of which a Designated Event Purchase Notice has been given by the
Holder thereof may not be converted on or after the date of the delivery of
such Designated Event Purchase Notice unless such Designated Event Purchase
Notice has first been validly withdrawn as specified in the following two
paragraphs.

 

A
Designated Event Purchase Notice may be withdrawn by means of a written notice
of withdrawal delivered to the office of the Paying Agent in accordance with
the Designated Event Purchase Notice at any time prior to the close of business
on the Business Day immediately preceding the Designated Event Purchase Date
specifying:

 

(i)            the certificate number, if
any, of each Security in respect of which such notice of withdrawal is being
submitted;

 

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

 

(iii)          the principal amount, if
any, of each such Security which remains subject to the original Designated
Event Purchase Notice and which has been or will be delivered for purchase by
the Company;

 

provided,
however, that if the Securities are not in certificated form, a Holder’s notice
of withdrawal must comply with the applicable Depositary procedures.

 

There
shall be no purchase of any Securities pursuant to Section 3.01 if there
has occurred (prior to, on or after, as the case may be, the giving by the
Holders of such Securities of the required Designated Event Purchase Notice)
and is continuing an Event of Default (other 

 

26

 

than
a default in the payment of the Designated Event Payment with respect to such
Securities).  The Paying Agent will
promptly return to the respective Holders thereof any Securities (x) with
respect to which a Designated Event Purchase Notice has been withdrawn in
compliance with this Indenture, or (y) held by it during the continuance
of an Event of Default (other than a default in the payment of the Designated
Event Payment with respect to such Securities) in which case, upon such return,
the Designated Event Purchase Notice with respect thereto shall be deemed to
have been withdrawn.

 

SECTION 3.04.                      Deposit of
Designated Event Payment. 
Prior to 12:00 p.m. (New York City time) on the Designated
Event Purchase Date, the Company shall deposit with the Trustee or with the
Paying Agent an amount of cash (in immediately available funds if deposited on
such Business Day) sufficient to pay the aggregate Designated Event Payment of
all the Securities or portions thereof which are to be purchased as of the
Designated Event Purchase Date.

 

If
the Trustee or other Paying Agent appointed by the Company holds cash
sufficient to pay the aggregate Designated Event Payment of all the Securities
or portions thereof that are to be purchased as of the Designated Event
Purchase Date, on or after the Designated Event Purchase Date (i) such
Securities will cease to be Outstanding, (ii) interest on such Securities
will cease to accrue and (iii) all other rights of the Holders of such
Securities will terminate, whether or not book-entry transfer of the Securities
has been made or the Securities have been delivered to the Trustee or Paying
Agent, other than the right to receive the Designated Event Payment upon
delivery of the Securities.

 

SECTION 3.05.                      Securities
Purchased in Part.  Any
Security which is to be purchased only in part shall be surrendered at the
office of the Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing) and the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, a new Security or Securities, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Security so
surrendered which is not purchased.

 

SECTION 3.06.                      Covenant to
Comply with Securities Laws upon Purchase of Securities.  In connection with any offer to purchase or
purchase of Securities under Section 3.01 hereof (provided that such offer
or purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4
(which term, as used herein, includes any successor provision thereto) under
the Exchange Act at the time of such offer or purchase), the Company shall (i) comply
with Rule 13e-4, Rule 14e-1 and any other tender offer rules under
the Exchange Act which may then be applicable, (ii) file the related
Schedule TO (or any successor schedule, form or report) or any other schedule
required under the Exchange Act, and (iii) otherwise comply with all
applicable federal and state securities laws so as to permit the rights and
obligations under Section 3.01 to be exercised in the time and in the
manner specified in Section 3.01 and 3.02.

 

SECTION 3.07.                      Repayment to
the Company.  The Trustee
and the Paying Agent shall return to the Company any cash or other consideration
that remains unclaimed as 

 

27

 

provided in the Securities,
together with interest, if any, thereon, held by them for the payment of the
Designated Event Payment; provided, however, that to the extent
that the aggregate amount of cash deposited by the Company pursuant to Section 3.04
exceeds the aggregate Designated Event Payment of the Securities or portions
thereof which the Company is obligated to purchase as of the Designated Event
Purchase Date then promptly after the Business Day following the Designated
Event Purchase Date the Trustee shall return any such excess to the Company
together with interest, if any, thereon.

 

ARTICLE IV

 

COVENANTS

 

SECTION 4.01.                      Payment of
Principal, Premium, Interest on the Securities.  The Company will duly and punctually pay the
principal of and interest at the Interest Rate in respect of the Securities in
accordance with the terms of the Securities and this Indenture. The Company
will deposit or cause to be deposited with the Trustee as directed by the
Trustee, no later than 12:00 p.m., New York time on the day of the Stated
Maturity of any Security or on any Interest Payment Date, all payments so due
on such date. Principal amount at Stated Maturity, and cash interest shall be
considered paid on the applicable date due if at 12:00 p.m., New York time
on such date the Trustee or the Paying Agent holds, in accordance with this
Indenture, money or securities, if permitted hereunder, sufficient to pay all
such amounts then due.

 

SECTION 4.02.                      Compliance
Certificate.  The Company
shall deliver to the Trustee within 90 days after the end of each fiscal year
of the Company (beginning with the fiscal year ending on December 31,
2009) an Officers’ Certificate, stating whether or not to the best knowledge of
the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without
regard to any period of grace or requirement of notice provided hereunder) and
if the Company shall be in default, specifying all such defaults and the nature
and status thereof of which they may have knowledge.

 

SECTION 4.03.                      Maintenance of
Office or Agency.  The Company
will maintain in The Borough of Manhattan, the City of New York, an office or
agency of the Trustee, Registrar, Paying Agent and Conversion Agent where
Securities may be presented or surrendered for payment, where Securities may be
surrendered for registration of transfer, exchange, purchase or conversion and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The New York branch office of the Corporate
Trust Office of the Trustee, shall initially be such office or agency for all
of the aforesaid purposes. The Corporate Trust Office of the Trustee shall
provide appropriate contact information therefor upon request. The Company
shall give prompt written notice to the Trustee of the location, and of any
change in the location, of any such office or agency (other than a change in
the location of the office of the Trustee). If at any time the Company shall
fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the address of the Trustee set forth in Section 11.02.

 

28

 

The
Company may also from time to time designate one or more other offices or
agencies where the Securities may be presented or surrendered for any or all
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 the
Borough of Manhattan, the City of New York, for such purposes.

 

SECTION 4.04.                      Limitation on
Liens.

 

(a)           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 4.04 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.

 

(b)           The foregoing restrictions
in this Section 4.04 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 4.05.                      Delivery of
Certain Information.  At any time
when the Company is not subject to Section 13 or 15(d) of the
Exchange Act, upon the request of a Holder or any beneficial holder of
Securities or shares of Common Stock issued upon conversion thereof, the
Company will promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder or any beneficial holder of
Securities or holder of shares of Common Stock issued upon conversion of
Securities, or to a prospective purchaser of any such security designated by
any such Holder, as the case may be, to the extent required to permit
compliance by such Holder or Holder with Rule 144A in connection with the
resale of any such security. “Rule 144A Information” shall be such
information as is specified pursuant to Rule 144A(d)(4) under the
Securities Act.

 

ARTICLE V

 

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, 

 

29

 

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 principal of, premium, if any, 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 Section 3.01 and conversion rights in
accordance with Section 10.06 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

 

(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 

 

30

 

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 a Designated Event.  This Article Five does
not affect the obligations of the Company (including without limitation any
successor to the Company) under Section 3.01.

 

ARTICLE VI

 

EVENTS
OF DEFAULT

 

SECTION 6.01.                      Events of
Default.  An “Event of Default”
with respect to any Securities occurs if:

 

(a)           the Company defaults in the
payment of principal of, or premium, if any, on the Securities when due at
maturity, upon repurchase, upon acceleration or otherwise; 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 3.01)
and continuance of such default for 30 days or more; or

 

(c)           (i) the Company
defaults in the payment of the Designated Event Payment in respect of the
Securities on the date therefor; or (ii) the Company fails to provide
timely notice of any Designated Event in accordance with Sections 3.01 and
10.02; or

 

(d)           the Company defaults (other
than a default set forth in clause (a), (b) or (c) 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 of the then Outstanding
Securities; or

 

(e)           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 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 of such 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 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

 

31

 

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

 

(f)                                    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

 

(g)                                 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

 

(h)                                 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; or

 

(i)                                     The Company
defaults with respect to its obligation to deliver when due all shares of Common
Stock deliverable upon conversion of the Securities, which default continues
for 5 Business Days.

 

SECTION 6.02.                                                                 Acceleration.  If an Event of Default (other than an Event
of Default with respect to the Company specified in clauses (g) and (h) of
Section 6.01) occurs 

 

32

 

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 of the then Outstanding Securities, by written notice to the Company and
the Trustee, may declare the unpaid principal of, premium, if any, and accrued
and unpaid interest on all the Securities to be due and payable.  Upon such declaration, such principal amount,
premium, if any, 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 (g) or (h) of
Section 6.01 occurs, all unpaid principal of, and premium, if any, 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 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 principal of, premium, if any, 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 principal 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 of a Security 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 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 principal of, and premium, if any, or interest on the
Securities (other than the non-payment of principal of, and premium, if any,
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 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; 

 

33

 

provided, however, that the Trustee shall have no
duty or obligation (subject to Section 7.05) 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 of a Security 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 of the then Outstanding Securities
make a written request to the Trustee to pursue the remedy;

 

(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 of the
then Outstanding Securities do not give the Trustee a direction inconsistent
with the request.

 

A Holder of a Security 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 of a Security to receive payment of
principal, premium, if any, 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 of a Security.

 

SECTION 6.08.                                                                 Collection Suit
by Trustee.  If an Event
of Default specified in Section 6.01(a), (b) or (c)(i) 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
principal, premium, if any, and interest remaining unpaid on the Securities and
interest on overdue principal, premium, if any, and interest and such further
amount as shall be sufficient to cover the costs and, to the extent lawful,
expenses of collection, including the reasonable 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 of a Security any plan of
reorganization, arrangement, adjustment or composition affecting the 

 

34

 

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 principal (or premium, if any) 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 7.08;

 

SECOND:  To
the payment of the amounts then due and unpaid upon the Securities for
principal (and premium, if any) 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 principal (and premium, if any) 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 25% in principal amount of the then
Outstanding Securities.

 

SECTION 6.12.                                                                 Restoration of
Rights and Remedies.  If the
Trustee or any Holder of a Security has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or
to such Holder, then and in every such case the Company, the Trustee and the
Holders of Securities shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding had been instituted.

 

SECTION 6.13.                                                                 Rights and
Remedies Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities, no right or remedy herein conferred upon
or reserved to the Trustee or to the Holders of Securities is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and 

 

35

 

remedy given hereunder or now or hereafter existing at law or in equity
or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

 

SECTION 6.14.                                                                 Waiver of Stay,
Extension or Usury Laws.  The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

SECTION 6.15.                                                                 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 VII

 

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.

 

36

 

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.

 

(iv)                              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 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;

 

(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;

 

37

 

(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 shall 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

 

(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.

 

38

 

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 7.11 and 7.12.

 

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.  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.

 

(a)                                  For so long as
the indentures governing any of the Company’s outstanding 6.0% Convertible
Subordinated Notes due 2009, 11.5% Senior Notes due 2010, 6.0% Convertible
Subordinated Notes due 2010, 2.875% Convertible Senior Notes due 2010, 10.0%
Convertible Senior Notes due 2011, 5.25% Convertible Senior Notes due 2011,
3.5% Convertible Senior Notes due 2012, 9% Convertible Senior Discount Notes
due 2013 or 15% Convertible Senior Notes due 2015 contain a provision with
respect to the Company’s obligation to file with the Trustee certain
information, documents and reports that are substantially identical to the
requirements set forth below in this Section 7.07(a), the Company will:

 

39

 

(b)                                 file with the
Trustee, within 15 days after the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents, and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which
the Company may be required to file with the Commission pursuant to Section 13
or Section 15(d) of the Exchange Act; or, if the Company is not
required to file information, documents or reports pursuant to either of such
Sections of the Exchange Act, then it will file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of the
Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations;

 

(c)                                  file with the
Trustee and the Commission, in accordance with the rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the
conditions and covenants of this Indenture as may be required from time to time
by such rules and regulations; and

 

(d)                                 transmit by
mail to the Holders of Securities, within 30 days after the filing thereof with
the Trustee, in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, such summaries of any information, documents and
reports required to be filed by the Company pursuant to paragraphs (1) and
(2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.

 

(e)                                  From and after
the date on which Section 7.07(a) is no longer applicable to the
Company with respect to the Securities, the Company shall file with the Trustee
and the Commission such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at
the times and in the manner provided pursuant to the Trust Indenture Act;
provided that any such information, documents or reports required to be filed with
the Commission pursuant to Section 13 or 15(d) of the Exchange Act
shall be filed with the Trustee within 15 days after the same is actually filed
with the Commission.  Delivery of such
reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice
of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to 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);

 

40

 

(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 shall be
determined to have been caused by its own negligence or willful misconduct; and

 

(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 or willful misconduct
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 7.08,
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 the
principal amount, 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 7.08
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(h) or Section 6.01(i),
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 7.09. The Holders of a majority in aggregate principal amount
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 7.11;

 

(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 

 

41

 

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 7.08.

 

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 7.11,
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.

 

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 VIII

DISCHARGE OF INDENTURE

 

SECTION 8.01.                                                                 Discharge of
Liability on Securities.  When
all Outstanding Securities will become due and payable within one year of their
Stated Maturity and the 

 

42

 

Company has deposited with the Trustee cash sufficient to pay and
discharge all Outstanding Securities on the date of their Stated Maturity, then
the Company may discharge its obligations under this Indenture while Securities
remain Outstanding; provided that provisions of Section 2.04, Section 2.05,
Section 2.07, Section 2.08, Section 2.09, Section 2.13, Section 4.01,
Section 4.03, Section 7.08, Article 10 and this Article 8
shall survive until the Securities have been paid in full. The Trustee shall
join in the execution of a document prepared by the Company acknowledging
satisfaction and discharge of this Indenture on demand of the Company
accompanied by an Officers’ Certificate and Opinion of Counsel and at the cost
and expense of the Company. For the avoidance of doubt, Sections 3.01 through
3.04 shall cease to apply and shall be of no further force and effect from and
after such deposit.

 

SECTION 8.02.                                                                 Repayment of
the Company.  The Trustee
and the Paying Agent shall promptly return to the Company upon written request (i) any
excess money held by them at any time and (ii) any money or securities
held by them for the payment of any amount with respect to the Securities that
remains unclaimed for two years, subject to applicable unclaimed property law.
After return to the Company, Holders entitled to the money or securities 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.

 

SECTION 8.03.                                                                 Deposited
Monies to Be Held in Trust by Trustee.  Subject to Section 8.02, all monies
deposited with the Trustee pursuant to Section 8.01 shall be held in trust
for the sole benefit of the Holders and such monies shall be applied by the
Trustee to the payment, either directly or through any Paying Agent (including
the Company if acting as its own Paying Agent), to the Holders for the payment
of which such monies have been deposited with the Trustee, of all sums due and
to become due thereon for principal and interest.

 

SECTION 8.04.                                                                 Reinstatement.  If the Trustee or the Paying Agent is unable
to apply any money in accordance with Sections 8.01 and 8.03 by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 8.01 until such time as the Trustee
or the Paying Agent is permitted to apply all such money in accordance with
Sections 8.01 and 8.03; provided, however, that if the Company
makes any payment of interest on or principal of any Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders to receive such payment from the money held by the Trustee or
Paying Agent.

 

ARTICLE IX

 

AMENDMENTS

 

SECTION 9.01.                                                                 Without Consent
of Holders.  Without the
consent of any Holders of Securities, the Company, when authorized by or
pursuant to a Board Resolution, and the Trustee, at any time and from time to
time, may amend this Indenture or the Securities without the consent of any
Holder for any of the following purposes:

 

43

 

(1)                             to evidence the
succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company herein and in the Securities
contained; or

 

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

 

(3)                             to add any
additional Events of Default for the benefit of the Holders of the Securities; provided, however, that in respect of any
such additional Events of Default such supplemental indenture may provide for a
particular period of grace after default (which period may be shorter or longer
than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such default or may limit the remedies available to
the Trustee upon such default or may limit the right of the Holders of a
majority in aggregate principal amount of the Securities to which such
additional Events of Default apply to waive such default; or

 

(4)                             to change or
eliminate any restrictions on the payment of principal of or any premium or
interest on the Securities, to permit the Securities to be issued in exchange
for other Securities of other authorized denominations or to permit or
facilitate the issuance of Securities in uncertificated form, provided that any such action shall not
adversely affect the interests of the Holders of Securities in any material
respect; or

 

(5)                             to secure the
Securities; or

 

(6)                             to evidence and
provide for the acceptance of appointment hereunder by a successor Trustee with
respect to the Securities and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee; or

 

(7)                             to cure any
ambiguity, to correct or supplement any provision herein which may be defective
or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture
which shall not be inconsistent with the provisions of this Indenture, provided such provisions shall not
adversely affect the interests of the Holders of the Securities in any material
respect; or

 

(8)                             to provide for
conversion rights or repurchase rights of Holders of Securities in the event of
consolidation, merger, share exchange or sale of all or substantially all of
the assets of the Company as required to comply with Section 5.01 or
10.06; or

 

(9)                             to reduce the
Conversion Price; or

 

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

 

44

 

(11)                       to comply with
the requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the TIA.

 

SECTION 9.02.                                                                 With Consent of
Holders.  With the written consent of
the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding or by the adoption of a resolution at a
meeting of Holders at which a quorum is present by at least a majority in
aggregate principal amount of the Securities represented at the meeting, the
Company may modify and amend this Indenture or the Securities and waive
noncompliance by the Company. However, without the consent of each Holder
affected, a modification, amendment or waiver to this Indenture or the
Securities may not:

 

(1)                             change the
Stated Maturity of the principal of (or premium, if any, on) or any installment
of principal of or interest on, including Defaulted Interest, any Security; or
reduce the principal amount thereof or the rate or amount of interest thereon,
or any premium payable upon the redemption thereof or alter the provisions of
this Indenture with respect to the purchase of the Securities at the option of
the Holders upon a Designated Event in a manner adverse to the Holders thereof,
or adversely affect any right of repayment at the option of the Holder of any
Security, or adversely affect any right of repayment at the option of the
Holder of any Security, or impair the right to institute suit for the
enforcement of any payment on or after the Stated Maturity thereof (or, in the
case of purchase at the option of the Holder, on or after the Designated Event
Purchase Date), or

 

(2)                             reduce the
percentage in principal amount of the Securities, or

 

(3)                             modify any of
the provisions of this Section, Section 6.04, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of the Securities, or

 

(4)                             impair the
right to institute suit for the enforcement of any payment on or with respect
to any Security; or

 

(5)                             waive a Default
or Event of Default in the payment of principal of or premium, if any, or
interest on the Securities (except a rescission of acceleration of the
Securities by the Holders of at least a majority in aggregate principal amount
of the Securities then Outstanding and a waiver of the payment default that
resulted from such acceleration) or of a Designated Event Payment; or

 

(6)                             make any change
in the provisions of this Indenture relating to waivers of past Defaults or
Events of Default or the rights of Holders of Securities to receive payments of
principal of, premium, if any, or interest on the Securities; or

 

(7)                             make any adverse
change to the abilities of Holders of Securities to enforce their rights under
this Indenture; or

 

45

 

(8)                             except as
permitted by this Indenture (including Section 9.01(7)), increase the
Conversion Price, or modify the provisions of this Indenture relating to
conversion of the Securities in a manner adverse to the Holders thereof or
otherwise impair the right of Holders to convert their Securities, upon the
terms established pursuant to or in accordance with the provisions of this
Indenture.

 

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, 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.

 

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, Waivers and Actions.  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, 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 Holder.

 

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
Board of Directors, 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 be provided with 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.

 

46

 

ARTICLE X

CONVERSION

 

SECTION 10.01.                                                           Right To Convert.  Subject to and upon compliance with the
provisions of this Indenture, each Holder of Securities shall have the right,
at his or her option, at any time on or before the close of business on the
Stated Maturity date (except that 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 Business Day immediately preceding
the Designated Event Purchase 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 3.03)) to convert the
principal amount of any Security held by such Holder, or any portion of such
principal amount which is $1,000 or an integral multiple thereof, into that
number of fully paid and non-assessable shares of Common Stock (as such shares
shall then be constituted) obtained by dividing the principal amount of the
Security or portion thereof to be converted by 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.  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.

 

If a Change in Control described in clause (b) or
(c) of the definition thereof occurs, then the Conversion Rate per $1,000
principal amount of Securities otherwise in effect in respect of Securities for
which a conversion notice is received by the Conversion Agent during the period
beginning 10 Trading Days before the anticipated Effective Date (as defined
below) of the Change in Control and ending at the close of business on the
Trading Day immediately preceding the related Designated Event Purchase Date
shall be increased by the amount (the “Additional Shares”), if any,
determined by reference to the table below, based on the Effective Date of such
Change in Control and the Stock Price of such Change in Control; provided,
however, that the Company shall not be required to pay the Additional Shares if
a Change in Control described in clause (c) of the definition of Change in
Control occurs and at least 90% of the consideration (excluding cash payments
for fractional shares) in the transaction or transactions constituting the
Change in Control consists of shares of common stock that are, or upon issuance
will be, traded on the New York Stock Exchange or the NYSE Alternext or
approved for trading on a Nasdaq market and as a result of such transaction or
transactions the Securities become convertible solely into such common stock
and other consideration payable in such transaction or transactions.  The Company will mail a notice to Holders and
issue a press release no later than 20 Business Days prior to the anticipated
Effective Date of such anticipated Change in Control.

 

The number of Additional Shares will be determined
by reference to the table below and is based on the date on which the Change in
Control becomes effective (the “Effective Date”) and the price (the “Stock
Price”) paid per share of Common Stock in the transaction constituting the
Change in Control.  If holders of the
Common Stock receive only cash in the transaction constituting the Change in
Control, the Stock Price shall be the cash amount paid per share of the Common
Stock.  Otherwise, the Stock Price shall
be equal to the average of the 

 

47

 

Closing Sale Price over the
five Trading Day period ending on the Trading Day immediately preceding the
Effective Date.

 

The following table sets forth the Additional
Shares, if any, issuable upon conversion of each $1,000 principal amount of
Securities in connection with such a Change in Control for each Stock Price and
Effective Date set forth below.

 

Additional Shares

 

	
   

  	
   

  	
  Effective Date

  	
   

  
	
  Stock Price on

  Effective Date

  	
   

  	
  On or before

  March 15,

  2010

  	
   

  	
  March

  15, 2011

  	
   

  	
  March

  15, 2012

  	
   

  	
  March

  15, 2013

  	
   

  	
  March

  15, 2014

  	
   

  	
  March

  15, 2015

  	
   

  
	
  $

  	
  1.33

  	
   

  	
  196.3

  	
   

  	
  196.3

  	
   

  	
  196.3

  	
   

  	
  196.3

  	
   

  	
  196.3

  	
   

  	
  196.3

  	
   

  
	
  $

  	
  1.50

  	
   

  	
  167.4

  	
   

  	
  164.1

  	
   

  	
  159.3

  	
   

  	
  151.7

  	
   

  	
  138.3

  	
   

  	
  111.1

  	
   

  
	
  $

  	
  1.75

  	
   

  	
  135.1

  	
   

  	
  128.1

  	
   

  	
  118.0

  	
   

  	
  101.9

  	
   

  	
  73.5

  	
   

  	
  15.9

  	
   

  
	
  $

  	
  2.00

  	
   

  	
  110.8

  	
   

  	
  101.1

  	
   

  	
  87.0

  	
   

  	
  64.5

  	
   

  	
  24.8

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  2.25

  	
   

  	
  92.0

  	
   

  	
  80.2

  	
   

  	
  62.9

  	
   

  	
  35.4

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  2.50

  	
   

  	
  76.9

  	
   

  	
  63.4

  	
   

  	
  43.6

  	
   

  	
  12.1

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  2.75

  	
   

  	
  64.5

  	
   

  	
  49.6

  	
   

  	
  27.8

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  3.00

  	
   

  	
  54.3

  	
   

  	
  38.2

  	
   

  	
  14.7

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  3.50

  	
   

  	
  38.1

  	
   

  	
  20.2

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  4.00

  	
   

  	
  26.0

  	
   

  	
  6.7

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  4.50

  	
   

  	
  16.5

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  $

  	
  5.00

  	
   

  	
  9.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  

 

If actual Stock Prices on the Effective Date are not
set forth on the table above and:

 

(i)                                     if the actual
Stock Price on the Effective Date is between two Stock Prices on the table or
the actual Effective Date is between two Effective Dates on the table, the
number of Additional Shares will be determined by a straight-line interpolation
between the adjustment amounts set forth for such two Stock Prices or such two
Effective Dates on the table based on a 360-day year, as applicable;

 

(ii)                                  if the Stock
Price on the Effective Date equals or exceeds $5.00 per share (subject to
adjustment as described below), no Additional Shares will be issued upon conversion;
and

 

(iii)                               if the Stock
Price on the Effective Date is less than $1.33 per share (subject to adjustment
as described below), no Additional Shares will be issued upon conversion.

 

The Stock Prices set forth in the first column of
the table above will be adjusted as of any date on which the Conversion Rate is
adjusted.  The adjusted Stock Prices will
equal the Stock Prices applicable immediately prior to such adjustment
multiplied by a fraction, the numerator of which is the Conversion Rate
immediately prior to the adjustment giving rise to the 

 

48

 

Stock Price adjustment and
the denominator of which is the Conversion Rate as so adjusted.  The number of Additional Shares set forth in
the table above will be adjusted in the same manner as the Conversion Rate as
set forth in Section 10.05 hereof.

 

Notwithstanding the foregoing, in no event will the
Conversion Rate exceed 833.333 shares of Common Stock per $1,000 principal
amount of Securities, subject to adjustment in the manner set forth in Section 10.05
hereof.

 

SECTION 10.02.                                                           Exercise of
Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for
Interest 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 4.03,
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 such
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 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 10.07. If
the Securities are not in certificated form, the Holders may exercise their
right of conversion by complying with the applicable Depositary
procedures.  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 of Securities 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 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 a check or cash (which payment,
if any, shall be paid no later than three Business Days after satisfaction of
the requirements for conversion set forth above) in respect of any fractional
interest in respect of a share of Common Stock, pursuant to Section 10.03.
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 2.03, 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 principal amount 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 (the “Conversion
Date”) on which the requirements set forth in this Section 10.02 have
been satisfied as to such Security (or portion thereof), and the Person in 

 

49

 

whose name any 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 shares
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 the Company
has specified a Designated Event Purchase Date during such period) 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 principal
amount 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 on any Security converted or
for dividends on any shares issued upon the conversion of such Security as
provided in this Article 10.

 

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 principal amount of the Securities (or specified portions
thereof to the extent permitted hereby) so surrendered for conversion. 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, round such fraction up to the nearest whole
number of shares for issuance upon conversion. 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 Trading Day immediately preceding the day on which the
Securities (or specified portions thereof) are deemed to have been converted.

 

SECTION 10.04.                                                           Conversion
Rate.  Each $1,000 principal amount of
the Securities shall be convertible into the number of shares of Common Stock
(the “Conversion Rate”) specified in the form of Security attached as Exhibit A
hereto, subject to adjustment as provided in this Article 10.

 

SECTION 10.05.                                                           Adjustment of
the Conversion Rate.  The
Conversion Rate 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 Rate
shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate 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,

 

50

 

(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 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; and

 

(ii)                                  the
denominator of which shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination,

 

such increase 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 10.05 is declared but not so paid or made, the Conversion
Rate shall again be adjusted to the Conversion Rate 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 Rate shall be increased so that the same
shall equal the rate determined by multiplying the Conversion Rate 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 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, 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 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.

 

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 Rate shall be
readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the
basis of delivery of only the number of shares of Common Stock actually delivered.
If such rights or warrants are not so issued, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such date
fixed 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 

 

51

 

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 Rate in effect at the opening
of business on the day following the day upon which such subdivision becomes
effective shall be proportionately increased, and conversely, in case
outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such combination becomes
effective shall be proportionately reduced, such increase or reduction, 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 pay a cash dividend to all holders of its Common Stock
or, 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 10.05(d) shall not apply to, (x) any
rights or warrants referred to in Section 10.05(b) and (y) any
dividend or distribution referred to in Section 10.05(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 Rate shall be increased so that the same shall
be equal to the rate determined by multiplying the Conversion Rate 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; and

 

(ii)                                  the
denominator 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,

 

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 

 

52

 

such Holder converted each
Security on the Record Date. If such Distribution is not so paid or made, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would
then be in effect if such Distribution had not been declared. If the Board of
Directors determines the Fair Market Value of any distribution for purposes of
this Section 10.05 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 Rate shall be increased so that the same shall be
equal to the rate determined by multiplying the Conversion Rate in effect on
the Record Date with respect to such distribution by a fraction:

 

(i)                                     the
numerator 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
Nasdaq Global Select Market 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; and

 

(ii)                                  the
denominator of which shall be the average Closing Sale Price of one share of
Common Stock over the Spinoff Valuation Period,

 

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 10.05
(and no adjustment to the Conversion Rate under this Section 10.05 will be
required) until the occurrence of the earliest Trigger Event, whereupon such
rights and warrants shall be deemed to have been distributed and an appropriate
adjustment (if any is required) to the Conversion Rate shall be made under this
Section 10.05. 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 

 

53

 

distribution
(or deemed distribution) of rights or warrants, or any Trigger Event or other
event (of the type described in the preceding sentence) with respect thereto
that was counted for purposes of calculating a distribution amount for which an
adjustment to the Conversion Rate under this Section 10.05 was made, (1) in
the case of any such rights or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall
be readjusted upon such final redemption or repurchase to give effect to such
distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or repurchase price received by
a holder or holders of Common Stock with respect to such rights or warrants
(assuming such holder had retained such rights or warrants), made to all
holders of Common Stock as of the date of such redemption or repurchase, and (2) in
the case of such rights or warrants that shall have expired or been terminated
without exercise by any holders thereof, the Conversion Rate shall be
readjusted as if such rights and warrants had not been issued.

 

No adjustment of the Conversion Rate shall be
made pursuant to this Section 10.05 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 10.05(d) and
10.05(a) and (b), any dividend or distribution to which this Section 10.05(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 Rate adjustment required
by this Section 10.05 with respect to such dividend or distribution shall
then be made) immediately followed by (2) a dividend or distribution of
such shares of Common Stock or such rights or warrants (and any further
Conversion Rate adjustment required by Sections 10.05(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 10.05(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 10.05(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
tendering or exchanging stockholders of consideration per share of Common Stock
having a Fair Market 

 

54

 

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 Rate shall be increased so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to
the Expiration Time by a fraction,

 

(i)                                     the
numerator of which shall be the sum of (x) the Fair Market Value
(determined as aforesaid) of the aggregate consideration payable to tendering
or exchanging 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, and

 

(ii)                                  the
denominator 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

 

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 Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such tender or exchange offer had not been
made.

 

(f)                                    For
purposes of this Section 10.05, the following terms shall have the meaning
indicated:

 

(1)                             “Current
Market Price” shall mean, with respect to any date, the average of the
daily Closing Sale Prices per share of Common Stock for the 10 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.

 

55

 

If another issuance,
distribution, subdivision or combination to which this Section 10.05
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 increases in the Conversion Rate, in addition to those
required by Section 10.05(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 increase the Conversion Rate by any amount
for any period of time if the period is at least twenty (20) days, the increase
is irrevocable during the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company,
which determination shall be conclusive. Whenever the Conversion Rate is
increased 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 increased Conversion Rate takes effect, and such notice
shall state the increased Conversion Rate and the period during which it will
be in effect.

 

(h)                                 No
adjustment in the Conversion Rate shall be required unless such adjustment
would require an increase or decrease of at least one percent (1%) in such
rate; provided, however, that any adjustments that by reason of
this Article 10 are not required to be made shall be carried forward and
made (i) as part of any subsequent adjustment or (ii) at the time the
Company mails a notice of a Designated Event pursuant to Section 3.01(b).
All calculations under this Article 10 shall be made by the Company and
shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be. No adjustment 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, property or such
securities. Interest will not accrue on any cash into which the Securities are
convertible. The Conversion Rate shall be adjusted only once 

 

56

 

for a single event or occurrence that would
require an adjustment under more than one of Section 10.05(a), (b), (c), (d) or
(e).

 

(i)                                     Whenever
the Conversion Rate 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 Rate 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 Rate and may assume that the last
Conversion Rate 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 Rate setting forth the adjusted Conversion Rate
and the date on which each adjustment becomes effective and shall mail such
notice of such adjustment of the Conversion Rate 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 10.05 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 10.05(a), (3) a
date fixed for the determination of stockholders entitled to receive rights or
warrants pursuant to Section 10.05(b), or (4) the Expiration Time for
any tender or exchange offer pursuant to Section 10.05(e), (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 consideration 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 fractional share pursuant to Section 10.03.
For purposes of this Section 10.05(j), 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 10.05, 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 

 

57

 

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 10.06.                                                           Effect
of Reclassification, Consolidation, Merger or Sale.  If any of the following events occur (each, a
“Business Combination”): (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 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 Holders of the Securities then outstanding will be
entitled thereafter to convert such Securities into the kind and amount of
shares of stock, other securities or other property or assets (including cash)
or any combination thereof) which they would have owned or been entitled to
receive upon such Business Combination had such Securities been converted into
Common Stock (without giving effect to any adjustment to the Conversion Rate
with respect to a Business Combination constituting a Change in Control)
immediately prior to such Business Combination, except that such Holders will
not receive the Additional Shares if such Holder does not convert during the
period set forth in the second paragraph of Section 10.01.  In the event holders of Common Stock have the
opportunity to elect the form of consideration to be received in such Business
Combination, the Company shall make adequate provision whereby the Securities
shall be convertible from and after the effective date of such Business
Combination into the form of consideration received in such Business
Combination by Holders of the greatest number of shares of Common Stock who
made a given election with respect to the form of consideration.  The Company may not become a party to any
Business Combination unless its terms are consistent with this Section 10.06.
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 10. If, in the case of any such Business Combination, 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
Business Combination, 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, including to the
extent practicable the provisions providing for the purchase rights set forth
in Section 3.01 hereof. 
Notwithstanding anything contained in this Section, and for the
avoidance of doubt, this Section shall not affect the right of a Holder to
convert its Securities into shares of Common Stock prior to the effective date
of the Business Combination.

 

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.

 

58

 

The above provisions of this Section 10.06
shall similarly apply to successive reclassifications, changes, consolidations,
mergers, share exchanges, combinations, sales and conveyances.

 

If this Section 10.06 applies to any
event or occurrence, Section 10.05 shall not apply.

 

SECTION 10.07.                                                           Taxes
on Shares Issued.  The issue of
shares 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 shares 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 10.08.                                                           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 of Common Stock 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 increasing
the Conversion Rate to an amount that would cause the Conversion Price to be
reduced below the then par value, if any, of the shares of Common Stock
issuable upon conversion of the Securities, the Company shall take all
corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue shares of such Common
Stock at such adjusted Conversion Rate.

 

The Company covenants that all shares of
Common Stock issued upon conversion of Securities 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 approved for trading on the Nasdaq Global Select 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 10.09.                                                           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 Rate, 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 

 

59

 

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 10.10.                                                           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 10.05(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 4.03, and
shall caused to be mailed to each Holder of Securities, at their last addresses
as they shall appear on the resister of the Securities 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 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.
The Company shall also disseminate a press release through Dow Jones &
Company Inc., Bloomberg Business News, PR Newswire or another comparable news
service containing this information.

 

SECTION 10.11.                                                           Restriction
on Common Stock Issuable upon Conversion. 
(a) Shares of Common Stock to be issued upon conversion of the
Securities prior to the 

 

60

 

effectiveness of a Resale Registration
Statement (as defined in the Exchange Agreement) shall be physically delivered
in certificated form or in the form of beneficial interests in book-entry
Common Stock registered in the name of the Depositary or a nominee thereof to
the Holders converting such Securities, and the certificate or certificates
representing such shares of Common Stock shall bear the Restricted Common Stock
Legend attached hereto as Exhibit C (the “Restricted Common Stock
Legend”) unless removed in accordance with Section 10.11(c).

 

(b)                                 If
(i) shares of Common Stock to be issued upon conversion of a Security
prior to the effectiveness of a Resale Registration Statement are to be
registered in a name other than that of the Holder of such Security or (ii) shares
of Common Stock represented by a certificate bearing the Restricted Common
Stock Legend are transferred subsequently by such Holder, then, unless the
Resale Registration Statement has become effective and such shares are being
transferred pursuant to the Resale Registration Statement, the Holder must
deliver to the transfer agent for the Common Stock a certificate in
substantially the form of Exhibit D as to compliance with the restrictions
on transfer applicable to such shares of Common Stock, and neither the transfer
agent nor the registrar for the Common Stock shall be required to register any
transfer of such Common Stock not so accompanied by a properly completed
certificate.

 

(c)                                  Except
for transfers in connection with a Resale Registration Statement, if
certificates representing shares of Common Stock are issued upon the
registration of transfer, exchange or replacement of any other certificate
representing shares of Common Stock bearing the Restricted Common Stock Legend,
or if a request is made to remove such Restricted Common Stock Legend from
certificates representing shares of Common Stock, the certificates so issued
shall bear the Restricted Common Stock Legend, or the Restricted Common Stock
Legend shall not be removed, as the case may be, unless there is delivered to
the Company such satisfactory evidence, which, in the case of a transfer made
pursuant to Rule 144 under the Securities Act, may include an Opinion of
Counsel as may be reasonably required by the Company, 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 shares of Common Stock are securities
that are not “restricted” within the meaning of Rule 144 under the
Securities Act.  Upon provision to the
Company of such reasonably satisfactory evidence, the Company shall cause the
transfer agent for the Common Stock to countersign and deliver certificates
representing shares of Common Stock that do not bear the Restricted Common
Stock Legend.

 

SECTION 10.12.                                                           Rights
Issued in Respect of Common Stock Issued Upon Conversion.  If the Company has a stockholder rights plan
in effect on any Conversion Date, the Company shall issue, in addition to the
Common Stock, the rights under the rights plan unless the rights have separated
from the Common Stock at the time of conversion, in which case the Conversion
Rate will be adjusted as if the Company had distributed to all holders of the
Common Stock, shares of the Capital Stock, evidences of indebtedness or assets
as set forth in Section 10.05, subject to readjustment in the event of the
expiration, termination or redemption of such rights.

 

61

 

ARTICLE XI

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. If any provision of this Indenture expressly modifies or
excludes any provision of the TIA that may be so modified or excluded, the
Indenture provision so modifying or excluding such provision of the TIA shall
be deemed to apply.

 

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, other
than notices to the Company, transmitted by facsimile transmission (confirmed
by guaranteed overnight courier) to the following facsimile numbers:

 

if to the Company:

 

Level 3 Communications, Inc.

1025 Eldorado Blvd.

Broomfield, Colorado 80021

Attention:  General Counsel

Facsimile:  (720) 888-5127

 

if to the Trustee:

 

The Bank of New York Mellon

101 Barclay St., Fl. 8W

New York, New York 10286

Attn: Corporate Trust Administration

Facsimile:  (212) 815-5704

 

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.

 

62

 

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 an Officers’
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent, if any, have been complied with.

 

SECTION 11.05.                    Statements Required in an
Officers’ 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:

 

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

 

(2)   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;

 

(3)   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

 

(4)   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.

 

SECTION 11.07.                    Rules by Trustee,
Paying Agent, Conversion Agent and Registrar.  The Trustee may make reasonable rules for
action by or a meeting of Holders. The Registrar, 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, if any, shall accrue for the
intervening period.

 

63

 

SECTION 11.09.                    GOVERNING LAW.  THIS INDENTURE AND THE SECURITIES WILL BE
GOVERNED BY, AND 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 this Indenture or
for any claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder 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.  The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement. One signed copy is enough to prove this
Indenture.

 

SECTION 11.13.                    Waiver of Jury Trial.
EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES
OR THE TRANSACTION CONTEMPLATED HEREBY.

 

SECTION 11.14.                    Force Majeure. In no
event shall the Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee shall
use reasonable efforts which are consistent with accepted practices in the
banking industry to resume performance as soon as practicable under the
circumstances.

 

64

 

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

 

	
   

  	
  LEVEL 3
  COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robin E. Grey

  
	
   

  	
   

  	
  Name:

  	
  Robin E. Grey

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
  THE BANK
  OF NEW YORK MELLON, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geovanni Barris

  
	
   

  	
   

  	
  Name:

  	
  Geovanni Barris

  
	
   

  	
   

  	
  Title:

  	
  Vice Presidnt

  

 

65

 

EXHIBIT
A

 

[FORM OF FACE OF GLOBAL SECURITY]

 

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO
THE ISSUER 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 HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER
HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT
THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (A) PRIOR
TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS ONE YEAR AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR THE ISSUE DATE OF OPTIONAL
SECURITIES, IF ANY) AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF
THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS
SECURITY), OTHER THAN (1) TO THE COMPANY, (2) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, INCLUDING THE
EXEMPTION PROVIDED BY RULE 144 (IF APPLICABLE) UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
APPLICABLE TO THIS SECURITY, THE FORM OF WHICH MAY BE OBTAINED FROM
THE COMPANY OR THE TRANSFER AGENT) OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. PRIOR TO
A TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE (2) ABOVE, THE HOLDER OF
THIS SECURITY MUST FURNISH TO THE COMPANY AND THE TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AND LEGAL OPINIONS AS THEY MAY REASONABLY
REQUIRE. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES
FOR THE BENEFIT OF THE COMPANY THAT IT IS A QUALIFIED INSTITUTIONAL BUYER AND
THAT IT IS HOLDING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR
DISTRIBUTION IN ANY CASE THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE
IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY EXCEPT AS PERMITTED BY
THE SECURITIES ACT;

 

The foregoing legend may
be removed from this Security on satisfaction of the conditions specified in
the Indenture.

 

THE ISSUER, BY ITS SALE OF THIS SECURITY, AND
THE HOLDER OF THE SECURITY (AND ANY SUCCESSOR HOLDER OF, OR HOLDER OF A
BENEFICIAL INTEREST IN, THE INSTRUMENT), BY ITS RESPECTIVE PURCHASE HEREOF,
AGREE (IN THE ABSENCE OF AN ADMINISTRATIVE DETERMINATION OR JUDICIAL RULING TO
THE CONTRARY) TO CHARACTERIZE THIS INSTRUMENT AS HAVING BEEN ISSUED WITH
ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED. UPON WRITTEN REQUEST TO THE COMPANY
AT  1025 ELDORADO BLVD.,
BROOMFIELD, COLORADO 80021,
ATTENTION: GENERAL COUNSEL, WE WILL PROMPTLY PROVIDE TO YOU THE ISSUE PRICE,
THE ISSUE DATE, AND THE YIELD TO MATURITY OF THE NOTE AS WELL AS THE AMOUNT OF
OID INCLUDABLE WITH RESPECT TO IT.

 

 

Level 3 Communications, Inc.

 

7% Convertible Senior Notes due 2015

 

	
  No.

  	
  Rule 144A
  CUSIP: 52729N BQ2

  

 

Issue
Date: June 26, 2009

 

Interest
Rate: 7% per annum

 

Interest
Payment Dates: March 15 and September 15 of each year, commencing on September 15,
2009

 

Record
Dates: March 1 and September 1

 

LEVEL 3 COMMUNICATIONS,
INC., a corporation duly organized and existing under the laws of the State of
Delaware, promises to pay to Cede & Co. or registered assigns, the
principal amount of $200,000,000 (TWO HUNDRED MILLION DOLLARS) on March 15,
2015.

 

This Security shall bear
interest at the initial
rate of 7% per annum.  This Security is convertible as specified on
the other side of this Security.

 

Additional provisions of
this Security are set forth on the other side of this Security.

 

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be executed.

 

	
  Dated:

  	
  LEVEL 3
  COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

 

THE BANK OF NEW YORK MELLON,

 

as
Trustee, certifies that this is one

 

of the
Securities referred to in the

 

within-mentioned
Indenture.

 

	
  By

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 

Dated:

 

 

[FORM OF REVERSE OF GLOBAL SECURITY]

 

7% Convertible Senior Notes due 2015

 

1.             Interest.

 

The Company will pay interest semi-annually in arrears on March 15
and September 15 of each year, beginning September 15, 2009.  Interest on the Securities will accrue from
the most recent Interest Payment Date to which interest has been paid or, if no
interest has been paid, from June 26, 2009.  Interest will be computed on the basis of a
360-day year composed of twelve 30-day months.

 

2.             Method of Payment.

 

Subject to the terms and
conditions of the Indenture, the Company will make payments in cash in respect
of Designated Event Payments at Stated Maturity to Holders who surrender
Securities to the Paying Agent to collect such payments in respect of the
Securities.  The Company will pay cash
amounts in money of the United States that at the time of payment is legal
tender for payment of public and private debts. 
However, the Company may make such cash payments by wire transfer of
immediately available funds or check payable in such money.

 

3.             Paying Agent, Conversion Agent and Registrar.

 

Initially, The Bank of
New York Mellon (the “Trustee”) will act as Paying Agent, Conversion
Agent and Registrar.  The Company may
appoint and change any Paying Agent, Conversion Agent or Registrar without
notice, other than notice to the Trustee; provided, however, that
the Company will maintain at least one Paying Agent in the State of New York,
City of New York, Borough of Manhattan, which shall initially be an office or
agency of the Trustee.  The Company or
any of its Subsidiaries or any of their Affiliates may act as Paying Agent,
Conversion Agent or Registrar.

 

4.             Indenture.

 

The Company issued the
Securities under an Indenture dated as of June 26, 2009 (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, as in
effect from time to time (the “TIA”). 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.  The
Securities are subject to all such terms, and Securityholders are referred to
the Indenture and the TIA for a statement of those terms.  To the extent any provisions of this Security
and the Indenture conflict, the provisions of the Indenture shall control.

 

The Securities are
unsubordinated unsecured obligations of the Company.  [This Security is one of the Original
Securities referred to in the Indenture issued in an aggregate principal amount
of $200,000,000.  The Securities include
the Original Securities and any Additional Securities]. [This Security is one
of the Additional Securities issued in addition to the Original Securities in
an aggregate principal amount of $200,000,000 previously issued under the
Indenture.  The Original Securities and
the Additional Securities are treated as a single class of securities under the
Indenture.]

 

5.             Purchase by the Company at the Option of the Holder
upon a 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 100% of the aggregate principal amount of the
Securities, 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, 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 Purchase Date.

 

Holders have the right
to withdraw any Designated Event Purchase Notice by delivering to the Paying
Agent a written notice of withdrawal in accordance with the provisions of the
Indenture.

 

If cash or other
consideration permitted under the Indenture sufficient to pay the Designated
Event Payment of all Securities or portions thereof to be purchased on the
Designated Event Purchase Date is deposited with the Paying Agent on the
Designated Event Purchase Date, interest ceases to accrue on such Securities or
portions thereof immediately 

 

 

after
such Designated Event Purchase Date, and the Holder thereof shall have no other
rights as such other than the right to receive the Designated Event Payment
upon surrender of such Security.

 

6.             Conversion.

 

The Securities may be
converted into shares of common stock on the terms and subject to the
conditions of the Indenture and this Security.

 

A Security in respect of
which a Holder has delivered a Designated Event Purchase Notice exercising the
option of such Holder to require the Company to purchase such Security may be
converted only if such notice of exercise is withdrawn in accordance with the
terms of the Indenture.

 

The initial Conversion
Rate is 555.5556 shares of Common Stock per $1,000 principal amount of
Securities, subject to adjustment in certain events described in the Indenture.  A Holder that surrenders Securities for
conversion will receive cash or a check, or, at the Company’s option, a whole
share of Common Stock, in lieu of any fractional shares of Common Stock.

 

To surrender a Security
for conversion, a Holder must (1) complete and manually sign the
irrevocable conversion notice below (or complete and manually sign a facsimile
of such notice) and deliver such notice to the Conversion Agent, (2) surrender
the Security to the Conversion Agent, (3) furnish appropriate endorsements
and transfer documents and (4) pay any transfer or similar tax, if
required.

 

A Holder may convert a
portion of a Security if the principal amount of such portion is $1,000 or an
integral multiple of $1,000.  No payment
or adjustment will be made for dividends on the shares of Common Stock except
as provided in the Indenture.  Except as
provided in Paragraph 1 hereof, on conversion of a Security, the Holder will
not receive any cash payment representing accrued interest with respect to the
converted Securities.  Instead, upon
conversion the Company will deliver to the Holder a fixed number of shares of
Common Stock and any cash payment to account for fractional shares.

 

The Conversion Rate will
be adjusted as provided in Article 10 of the Indenture.

 

7.             Denominations; Transfer; Exchange.

 

The Securities are in
fully registered form, without coupons, in minimum denominations of $1,000 of
principal amount and integral multiples of $1,000.  A Holder may transfer or exchange the
Securities in accordance with the Indenture. 
The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture.

 

8.             Persons Deemed Owners.

 

The registered Holder of
this Security may be treated as the owner of this Security for all purposes.

 

9.             Unclaimed Money or Securities.

 

The Trustee and the
Paying Agent shall return to the Company any money held by them for the payment
of any amount with respect to the Securities that remains unclaimed for two
years, subject to applicable unclaimed property law.  After return to the Company, Holders entitled
to the money or securities must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another
person.

 

10.           Amendment; Waiver.

 

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 of the then outstanding Securities, and any existing default
may be waived with the consent of the Holders of a majority in principal amount
of the then outstanding Securities.

 

Without the consent of any Holder, the
Indenture or the Securities may be amended: 
(a) to evidence the succession of another Person to the
Company and the assumption by any such successor of the covenants of the
Company herein and in the Securities contained; (b) to add to the
covenants of the Company for the benefit of the 

 

 

Holders of the Securities or to surrender any right or
power herein conferred upon the Company; (c) to add any additional Events
of Default for the benefit of the Holders of the Securities; provided, however, that in respect of any such additional
Events of Default such supplemental indenture may provide for a particular
period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for an immediate
enforcement upon such default or may limit the remedies available to the
Trustee upon such default or may limit the right of the Holders of a majority
in aggregate principal amount of the Securities to which such additional Events
of Default apply to waive such default; (d) to change or eliminate any
restrictions on the payment of principal of or any premium or interest on the
Securities, to permit the Securities to be issued in exchange for other
Securities of other authorized denominations or to permit or facilitate the
issuance of Securities in uncertificated form, provided
that any such action shall not adversely affect the interests of the Holders of
Securities in any material respect; (e) to secure the Securities; (f) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities and to add to or change any of the
provisions of the Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee; (g) to
cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under the Indenture
which shall not be inconsistent with the provisions of the Indenture, provided such provisions shall not adversely affect the
interests of the Holders of the Securities in any material respect; (h) to
provide for conversion rights or repurchase rights of Holders of Securities in
the event of consolidation, merger, share exchange or sale of all or
substantially all of the assets of the Company as required to comply with
Sections 5.01 or 10.06 of the Indenture; (i) to reduce the Conversion
Price; (j) to add guarantees with respect to the Securities; or (k) to
comply with the requirements of the Commission in order to effect or maintain
the qualification of the Indenture under the TIA.

 

Without the consent of each Holder affected, an amendment or waiver may
not (with respect to any Securities held by a nonconsenting Holder): (a) change
the Stated Maturity of the principal of (or premium, if any, on) or any
installment of principal of or interest on, including Defaulted Interest, any
Security; or reduce the principal amount thereof or the rate or amount of
interest thereon, or any premium payable upon the redemption thereof or alter
the provisions of the Indenture with respect to the purchase of the Securities
at the option of the Holders upon a Designated Event in a manner adverse to the
Holders thereof, or adversely affect any right of repayment at the option of
the Holder of any Security, or adversely affect any right of repayment at the
option of the Holder of any Security, or impair the right to institute suit for
the enforcement of any payment on or after the Stated Maturity thereof (or, in
the case of purchase at the option of the Holder, on or after the Designated
Event Purchase Date); (b) reduce the percentage in principal amount of the
Securities, (c) modify any of the provisions of this Section, Section 6.04,
except to increase any such percentage or to provide that certain other
provisions of the Indenture cannot be modified or waived without the consent of
the Holder of the Securities, (d) impair the right to institute suit for the
enforcement of any payment on or with respect to any Security; (e) waive a
Default or Event of Default in the payment of principal of or premium, if any,
or interest on the Securities (except a rescission of acceleration of the
Securities by the Holders of at least a majority in aggregate principal amount
of the Securities then Outstanding and a waiver of the payment default that
resulted from such acceleration) or of a Designated Event Payment; (f) make
any change in the provisions of the Indenture relating to waivers of past Defaults
or Events of Default or the rights of Holders of Securities to receive payments
of principal of, premium, if any, or interest on the Securities; (g) make
any adverse change to the abilities of Holders of Securities to enforce their
rights under the Indenture; or (j) except as permitted by the Indenture (including Section 9.01(7)),
increase the Conversion Price, or modify the provisions of the Indenture
relating to conversion of the Securities in a manner adverse to the Holders
thereof or otherwise impair the right of Holders to convert their Securities,
upon the terms established pursuant to or in accordance with the provisions of
the Indenture.

 

11.           Defaults and Remedies.

 

An Event of Default is: (a) default in
payment of the principal of, or premium, if any, on 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), or (c) 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 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; (h) certain
events involving bankruptcy, insolvency or reorganization of the Company or any
Material Subsidiary; or (i) the Company defaults with respect to
its obligation to deliver when due all shares of Common Stock deliverable upon conversion
of the Securities, which default continues for 5 Business Days. If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Securities may declare the unpaid principal 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, all outstanding Securities become due and payable without further
action or notice.  Premium is due under
the Indenture and under the Securities only pursuant to Article 3 of the
Indenture and the Securities. Holders of Securities may not enforce the
Indenture or the Securities except as provided in the Indenture. The Trustee
may require an indemnity satisfactory to it before it enforces the Indenture or
the Securities. Subject to certain limitations, Holders of a majority in
principal amount 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 principal,
premium, if any, or interest) if it determines that withholding notice is in
their interests. The Company must furnish annual compliance certificates to the
Trustee.

 

12.           Trustee Dealings with the
Company.

 

Subject to certain
limitations imposed by the TIA, the Trustee under the Indenture, 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.

 

13.           Calculations in Respect of
Securities.

 

The Company will be
responsible for making all calculations called for under the Securities.  These calculations include, but are not
limited to, determination of the Closing Sale Prices for the Common Stock, the
rate of interest payable on the Securities and the Conversion Rate of the Securities.  Any calculations made in good faith and
without manifest error will be final and binding on Holders of the
Securities.  The Company will be required
to deliver to each of the Trustee and the Conversion Agent a schedule of its
calculations and each of the Trustee and the Conversion Agent will be entitled
to rely upon the accuracy of such calculations without independent
verification.  The Trustee will forward
the Company’s calculations to any Holder of the Securities upon the request of
such Holder.

 

14.           No Recourse Against Others.

 

A director, officer,
employee shareholder or affiliates, as such, of the Company or the Trustee
shall not 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. 
By accepting a Security, each Holder waives and releases all such
liability.  The waiver and release are part
of the consideration for the issue of the Securities.

 

15.           Authentication.

 

This Security shall not
be valid until an authorized signatory of the Trustee manually signs the
Trustee’s Certificate of Authentication on the other side of this Security.

 

 

16.           Abbreviations.

 

Customary abbreviations
may be used in the name of a Holder or an assignee, such as TEN COM (=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/M/A (=Uniform Gift to Minors Act).

 

17.           GOVERNING LAW.

 

THE INDENTURE AND THIS
SECURITY WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture
which has in it the text of this Security in larger type.  Requests may be made to:

 

Level 3 Communications, Inc.

1025 Eldorado Blvd.

Broomfield, CO 80021

Attn: Vice President, Investor Relations

 

 

FORM OF CONVERSION NOTICE

 

[Notice pursuant to Section 10.02 of the Indenture]

 

[Name
and Address of Conversion Agent]

 

	
  Re:

  	
   

  	
  Level
  3 Communications, Inc. 7% Convertible Senior Notes

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  due
  March 15, 2015 (the “Securities”)

  

 

	
  Reference
  is hereby made to the Indenture, dated as of June 26, 2009 (the “Indenture”),
  between Level 3 Communications, Inc., as Issuer, and The Bank of New York
  Mellon, as Trustee. Capitalized terms used but not defined herein shall have
  the meanings given to them in the Indenture.

  
	
   

  
	
  This
  letter relates to the Securities specified below, which are registered in the
  name of the undersigned (the “Holder”). The Holder hereby irrevocably
  exercises its right to convert such Securities, or the portion thereof, if
  any, specified below, into Common Stock and, except to the extent specified
  or required as described below, directs that certificates representing such
  Common Stock, together with any check in payment for a fractional share and
  any Security representing any unconverted principal amount, be issued and
  delivered through the facilities of the Depositary, for credit to the
  account(s) of the Person(s) indicated below.

  
	
   

  
	
  The
  Holder acknowledges and agrees that no Common Stock will be delivered on
  conversion until any amount payable by the Holder on account of interest is
  paid, any certificates evidencing specified Securities not held in book-entry
  form are duly endorsed or assigned to the Company or in blank and surrendered
  and any taxes or other charges or documents required in connection with a
  transfer on conversion, and any other required items, are delivered to the
  Conversion Agent.

  
	
   

  
	
  The
  Holder acknowledges and agrees that, notwithstanding this request for
  conversion, the Company may require that the Common Stock delivered on conversion
  of the specified Securities be delivered in certificated form subject to a
  restrictive legend, or that additional certifications be delivered on behalf
  of the relevant beneficial owner(s), if it determines that doing so is
  necessary to comply with the requirements of the Securities Act or otherwise,
  as provided in the Indenture.

  
	
   

  
	
  Conversion of the specified
  Securities is subject to the requirements established by the Company as well
  as to the procedures of the Depositary, all as in effect from time to time.
  The specified Securities will be deemed to have been converted as of the
  close of business on the Business Day on which this conversion notice and all
  other required items have been delivered to the Conversion Agent as provided
  above and, upon such conversion, shall cease to accrue interest or be
  outstanding (subject to the Holder’s right to receive the Common Stock as
  provided in the Indenture). Prior to such conversion, the Holder will have no
  rights in the Common Stock.

  

 

	
   

  	
   

  	
  Please
  provide the information requested below, as applicable.

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  PLEASE
  SPECIFY THE SECURITIES HELD AND THE PORTION THEREOF TO BE CONVERTED:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Principal
  amount held: U.S. $

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP
  number(s):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Depositary
  (DTC) account where held:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Principal
  amount being converted (if less than all):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  $

  	
   

  	
   

  
									

 

 

	
  2.

  	
   

  	
  UNLESS
  AND TO THE EXTENT OTHERWISE SPECIFIED BELOW, all Securities (together with
  any unconverted Securities) will be delivered in book-entry form to the DTC
  account specified in Item 1 above.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  IF
  OTHER ARRANGEMENTS ARE DESIRED, please (a) specify the type, number and form
  of securities to be delivered on conversion and the name(s) of the account
  holder(s) or registered owner(s), by checking the appropriate boxes and
  providing the information requested and (b) complete Item (4) below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   ̈

  	
  Common
  Stock

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   ̈

  	
  Book-Entry

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Number
  of shares of Common Stock:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DTC
  Account:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   ̈

  	
  Certificates

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Number
  of shares of Common Stock:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Registered
  Owner:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   ̈

  	
  Unconverted
  Securities

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   ̈

  	
  Certificates

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Principal
  Amount: U.S. $ 

  	
   

  	
  *

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Registered
  Owner:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   ̈

  	
  Book-Entry

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Principal
  Amount: U.S. $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  DTC
  Account:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  [TO
  BE COMPLETED ONLY IF UNCONVERTED SECURITIES OR SHARES OF COMMON STOCK ARE TO
  BE ISSUED OTHER THAN TO THE HOLDER PURSUANT TO ITEM (3) ABOVE.]  The undersigned confirms that such
  unconverted Securities or shares of Common Stock are being transferred:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHECK
  ONE BOX BELOW

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a) 
   ̈  to the Company; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
   ̈  pursuant to and in compliance with Rule 144A
  under the Securities Act of 1933; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
   ̈ pursuant to
  an exemption from registration under the Securities Act of 1933 provided by Rule
  144 thereunder.

  
												

 

	
  *

  	
  Aggregate principal amount of each certificate must
  equal U.S. $1,000 or any amount in excess thereof in integral multiples of
  U.S. $1,000.

  

 

 

Unless
one of the boxes is checked, the transfer agent will refuse to register any of
the Common Stock evidenced by this certificate in the name of any person other
than the registered Holder thereof; provided, however, that if
that if box (c) is checked, the Trustee may require, prior to registering any
such transfer of the Common Stock, such certifications and other information,
and if box (c) is checked, such legal opinions, as the Company has reasonably
requested in writing, by delivery to the transfer agent of a standing letter of
instruction, to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

 

Please sign and date this
notice in the space provided below.

 

	
  DATE:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name
  of Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature(s) of
  Holder

  
	
   

  	
   

  
	
   

  	
  Title(s):

  

 

	
   

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

  

 

Notice:  Signature(s) must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Trustee, which
requirements will include membership or participation in the Securities
Transfer Agents Medallion Program (STAMP), the Stock Exchange Medallion Program
(SEMP) and the New York Stock Exchange Medallion Signature Program (MSP) or
such other “signature guarantee program” as may be determined by the Trustee in
addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with
the Securities Exchange Act of 1934.

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guarantee

  

 

 

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:

  	
   

  	
   

  
					

 

[FOR INCLUSION ONLY IF THIS
SECURITY BEARS A RESTRICTED SECURITIES LEGEND] In connection with any transfer
of any of the Securities evidenced by this certificate which are “restricted
securities” (as defined in Rule 144 (or any successor thereto) under the
Securities Act), the undersigned confirms that such Securities are being
transferred:

 

	
  CHECK
  ONE BOX BELOW

  
	
   

  
	
  (1)

  	
   ̈

  	
  to
  the Company; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   ̈

  	
  pursuant
  to and in compliance with Rule 144A under the Securities Act of 1933; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   ̈

  	
  pursuant
  to an exemption from registration under the Securities Act of 1933 provided
  by Rule 144 thereunder.

  

 

 

Unless
one of the boxes is checked, the Registrar will refuse to register any of the
Securities evidenced by this certificate in the name of any person other than
the registered Holder thereof; provided, however, that if box (3)
is checked, the Trustee may require, prior to registering any such transfer of
the Securities, such certifications and other information, and if box (3) is
checked such legal opinions, as the Company has reasonably requested in
writing, by delivery to the Trustee of a standing letter of instruction, to
confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act
of 1933; provided further, however, that this paragraph shall not
be applicable to any Securities which are not “restricted securities” (as
defined in Rule 144 (or any successor thereto) under the Securities Act).

 

	
  Your
  Signature:

  	
   

  
	
   

  	
   

  
	
   

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

  

 

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Medallion Signature
  Guarantee:

  	
   

  	
   

  
					

 

 

SCHEDULE I

 

SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY

 

The Initial Principal Amount of Global Security is:
                        ($                      ).  Such Principal Amount has been increased or
decreased by the adjustments set forth below by or on behalf of the Depository
in accordance with the Applicable Procedures.

 

	
  Date

  	
   

  	
  Amount of Increase

  in Principal Amount

  of Global Security

  	
   

  	
  Amount of Decrease in

  Principal Amount of

  Global Security

  	
   

  	
  Principal Amount of

  Global Security

  After Increase or

  Decrease

  	
   

  	
  Notation by

  Registrar or

  Security Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT A-1

 

[FORM OF FACE OF CERTIFICATED SECURITY]

 

THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF THE
COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED (A) PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) WHICH IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR
THE ISSUE DATE OF OPTIONAL SECURITIES, IF ANY) AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF THIS SECURITY), OTHER THAN (1) TO THE COMPANY, (2) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, INCLUDING
THE EXEMPTION PROVIDED BY RULE 144 (IF APPLICABLE) UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
APPLICABLE TO THIS SECURITY, THE FORM OF WHICH MAY BE OBTAINED FROM
THE COMPANY OR THE TRANSFER AGENT) OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. PRIOR TO
A TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE (2) ABOVE, THE HOLDER OF
THIS SECURITY MUST FURNISH TO THE COMPANY AND THE TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AND LEGAL OPINIONS AS THEY MAY REASONABLY
REQUIRE. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES
FOR THE BENEFIT OF THE COMPANY THAT IT IS A QUALIFIED INSTITUTIONAL BUYER AND
THAT IT IS HOLDING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR
DISTRIBUTION IN ANY CASE THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY,
ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY EXCEPT AS
PERMITTED BY THE SECURITIES ACT.

 

The foregoing legend may be
removed from this Security on satisfaction of the conditions specified in the
Indenture.

 

THE ISSUER, BY ITS SALE OF
THIS SECURITY, AND THE HOLDER OF THE SECURITY (AND ANY SUCCESSOR HOLDER OF, OR
HOLDER OF A BENEFICIAL INTEREST IN, THE INSTRUMENT), BY ITS RESPECTIVE PURCHASE
HEREOF, AGREE (IN THE ABSENCE OF AN ADMINISTRATIVE DETERMINATION OR JUDICIAL
RULING TO THE CONTRARY) TO CHARACTERIZE THIS INSTRUMENT AS HAVING BEEN ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. UPON WRITTEN REQUEST TO THE
COMPANY AT  1025 ELDORADO BLVD.,
BROOMFIELD, COLORADO 80021,
ATTENTION: GENERAL COUNSEL, WE WILL PROMPTLY PROVIDE TO YOU THE ISSUE PRICE,
THE ISSUE DATE, AND THE YIELD TO MATURITY OF THE NOTE AS WELL AS THE AMOUNT OF
OID INCLUDABLE WITH RESPECT TO IT.

 

 

LEVEL 3 COMMUNICATIONS, INC.

 

7%
Convertible Senior Notes due 2015

 

	
  No.

  	
   

  	
  Rule 144A CUSIP: 52729N BQ2

  

 

Issue Date:

 

Interest Rate: 7% per annum

 

Interest Payment Dates: March 15 and September 15
of each year, commencing on September 15, 2009

 

Record Dates: March 1 and September 1

 

LEVEL 3
COMMUNICATIONS, INC., a corporation duly organized and existing under the laws
of the State of Delaware, promises to pay to Cede & Co. or registered
assigns, the principal amount of
                    
([   ] DOLLARS) on March 15, 2015.

 

This
Security shall bear interest at the initial rate of 7% per annum.  This Security is convertible as specified on
the other side of this Security.

 

Additional
provisions of this Security are set forth on the other side of this Security.

 

 

IN WITNESS WHEREOF, the Issuer
has caused this instrument to be executed.

 

	
  Dated:

  	
  LEVEL 3 COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

THE BANK OF NEW YORK MELLON,

 

 

as
Trustee, certifies that this is one

of the
Securities referred to in the

within-mentioned
Indenture.

 

	
  By

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

 

Dated:

 

 

[FORM OF REVERSE OF CERTIFICATED SECURITY

IS IDENTICAL TO EXHIBIT A]

 

 

EXHIBIT B

 

LEVEL 3 COMMUNICATIONS, INC.

 

7% Convertible Senior Notes due 2015

 

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 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 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 issuable 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”), the
undersigned confirms that such Securities are being transferred:

 

CHECK
ONE BOX BELOW

 

	
  (1)

  	
   ̈

  	
  to
  the Company; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   ̈

  	
  pursuant
  to and in compliance with Rule 144A under the Securities Act of 1933; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   ̈

  	
  pursuant
  to an exemption from registration under the Securities Act of 1933 provided
  by Rule 144 thereunder.

  

 

Unless
one of the boxes is checked, the Registrar will refuse to register any of the
Securities evidenced by this certificate in the name of any person other than
the registered Holder thereof; provided, however, that if box (3) is
checked, the Trustee may require, prior to registering any such transfer of the
Securities, such certifications and other information, and if box (3) is
checked such legal opinions, as the Company has reasonably requested in
writing, by delivery to the Trustee of a standing letter of instruction, to
confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act
of 1933; provided further, however, that this paragraph shall not
be applicable to any Securities which are not “restricted securities” (as
defined in Rule 144 (or any successor thereto) under the Securities Act).

 

	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
  

  (Sign exactly as your name appears on the Security)

  	
   

  

 

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Medallion
  Signature Guarantee:

  	
   

  	
   

  
					

 

 

EXHIBIT C

 

FORM OF RESTRICTED COMMON STOCK LEGEND

 

THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF THE
COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED (A) PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) WHICH IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR
THE ISSUE DATE OF OPTIONAL SECURITIES, IF ANY) AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF THIS SECURITY), OTHER THAN (1) TO THE COMPANY, (2) SO
LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A,
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (3) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (4) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. PRIOR TO
A TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE (3) ABOVE, THE HOLDER OF
THIS SECURITY MUST FURNISH TO THE COMPANY AND THE TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AND LEGAL OPINIONS AS THEY MAY REASONABLY
REQUIRE.

 

The foregoing legend may be removed from this Security
on satisfaction of the conditions specified in the Indenture.

 

 

EXHIBIT D

 

FORM OF TRANSFER CERTIFICATE FOR TRANSFER

OF RESTRICTED COMMON STOCK

 

(Transfers pursuant to Section 10.11(b) of
the Indenture)

 

[NAME
AND ADDRESS OF COMMON STOCK TRANSFER AGENT]

 

Re:          Level 3 Communications, Inc. 7% Convertible Senior
Notes due 2015 (the “Securities”)

 

Reference is hereby made to
the Indenture dated as of June 26, 2009 (the “Indenture”) between
Level 3 Communications, Inc. and The Bank of New York Mellon, as
Trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

This letter relates to                   
shares of Common Stock represented by the accompanying certificate(s) that
were issued upon conversion of Securities and which are held in the name of
[name of transferor] (the “Transferor”) to effect the transfer of such
Common Stock.

 

In connection with the
transfer of such shares of Common Stock, the undersigned confirms that such
shares of Common Stock are being transferred:

 

CHECK
ONE BOX BELOW

 

	
  (1)

  	
   ̈

  	
  to
  the Company; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   ̈

  	
  pursuant
  to and in compliance with Rule 144A under the Securities Act of 1933; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   ̈

  	
  pursuant
  to an exemption from registration under the Securities Act of 1933 provided
  by Rule 144 thereunder.

  

 

Unless one of the boxes is
checked, the transfer agent will refuse to register any of the Common Stock
evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however, that if box (3) is
checked, the transfer agent may require, prior to registering any such transfer
of the Common Stock such certifications and other information, and if box (3) is
checked such legal opinions, as the Company has reasonably requested in
writing, by delivery to the transfer agent of a standing letter of instruction,
to confirm that such transfer is being made pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the
Securities Act of 1933.

 

	
   

  	
  [Name
  of Transferor],

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Dated:

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