Document:

Exhibit 10.1

 

CONFORMED COPY

 

 

 

AGREEMENT

 

 

 

DATED 6th August, 2003

 

 

€1,400,000,000

 

CREDIT FACILITY

 

FOR

 

VALENTIA TELECOMMUNICATIONS,

an Irish unlimited public company

 

AND

 

eircom LIMITED

 

AND

 

IRISH TELECOMMUNICATIONS INVESTMENTS LIMITED

 

ARRANGED BY

 

ALLIED IRISH BANKS, p.l.c.

THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND

BARCLAYS CAPITAL

DEUTSCHE BANK AG LONDON

GOLDMAN SACHS INTERNATIONAL

THE ROYAL BANK OF SCOTLAND plc

as Mandated Lead Arrangers

and

CITIGROUP GLOBAL MARKETS LIMITED

MORGAN STANLEY SENIOR FUNDING, INC.

as Lead Arrangers

 

WITH

 

DEUTSCHE BANK AG LONDON

as Facility Agent

 

 

 

London

 

 

CONTENTS

 

	
  Clause

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Interpretation

  
	
  2.

  	
  Facilities

  
	
  3.

  	
  Purpose

  
	
  4.

  	
  Conditions
  precedent

  
	
  5.

  	
  Utilisation - Loans

  
	
  6.

  	
  Utilisation -
  Documentary Credits

  
	
  7.

  	
  Documentary
  Credits

  
	
  8.

  	
  Ancillary
  facilities

  
	
  9.

  	
  Repayment

  
	
  10.

  	
  Prepayment and cancellation

  
	
  11.

  	
  Interest

  
	
  12.

  	
  Terms

  
	
  13.

  	
  Market
  disruption

  
	
  14.

  	
  Taxes

  
	
  15.

  	
  Increased
  Costs

  
	
  16.

  	
  Mitigation

  
	
  17.

  	
  Payments

  
	
  18.

  	
  Guarantee
  and indemnity

  
	
  19.

  	
  Representations

  
	
  20.

  	
  Information
  covenants

  
	
  21.

  	
  Financial
  covenants

  
	
  22.

  	
  General
  covenants

  
	
  23.

  	
  Default

  
	
  24.

  	
  The Administrative Parties

  
	
  25.

  	
  Evidence and calculations

  
	
  26.

  	
  Fees

  
	
  27.

  	
  Indemnities and Break Costs

  
	
  28.

  	
  Expenses

  
	
  29.

  	
  Amendments
  and waivers

  
	
  30.

  	
  Changes
  to the Parties

  
	
  31.

  	
  Disclosure of information

  
	
  32.

  	
  Set-off

  
	
  33.

  	
  Pro Rata
  Sharing

  
	
  34.

  	
  Severability

  
	
  35.

  	
  Counterparts

  
	
  36.

  	
  Notices

  
	
  37.

  	
  Language

  
	
  38.

  	
  Governing law

  
	
  39.

  	
  Enforcement

  

 

 

	
  Schedules

  
	
   

  
	
  1.

  	
  Original
  Parties

  
	
  2.

  	
  Conditions Precedent
  Documents

  
	
  3.

  	
  Form of Request

  
	
  4.

  	
  Calculation of the
  Mandatory Cost

  
	
  5.

  	
  Form of Transfer
  Certificate

  
	
  6.

  	
  Existing
  Security

  
	
  7.

  	
  Form of Compliance
  Certificate

  
	
  8.

  	
  Form of Accession Agreement

  
	
  9.

  	
  Form of Resignation Request

  
	
  10.

  	
  FormS of Letter of Credit

  
	
  11.

  	
  Structure
  Memorandum

  
	
  12.

  	
  Existing Group Indebtedness

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signatories

  

 

 

THIS AGREEMENT is dated 6th August, 2003

 

BETWEEN:

 

(1)           VALENTIA
TELECOMMUNICATIONS, an Irish unlimited public company (registered in Ireland number
298420) (the Company);

 

(2)           EIRCOM
LIMITED
(registered in Ireland number 98789 (eircom));

 

(3)           IRISH
TELECOMMUNICATIONS INVESTMENTS LIMITED (registered in Ireland number 81987) (ITI);

 

(4)           THE
COMPANY AND THE SUBSIDIARIES OF THE COMPANY listed in Schedule 1 (Original Parties) as
original guarantors (in this capacity each an Original Guarantor);

 

(5)           ALLIED
IRISH BANKS p.l.c., THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND, BARCLAYS
CAPITAL, DEUTSCHE BANK AG LONDON, GOLDMAN SACHS INTERNATIONAL and THE ROYAL BANK OF SCOTLAND plc
as mandated lead arrangers (in this capacity each a Mandated Lead Arranger);

 

(6)           CITIGROUP
GLOBAL MARKETS LIMITED and MORGAN STANLEY SENIOR FUNDING, INC. as lead
arrangers (in this capacity each a Lead Arranger);

 

(7)           THE
FINANCIAL INSTITUTIONS listed in Part 2 of Schedule 1 (Original Parties) as
original lenders (each an Original Lender);

 

(8)           DEUTSCHE
BANK AG LONDON as facility agent (in this capacity the Facility Agent); and

 

(9)           DEUTSCHE
BANK AG LONDON as security agent (in this capacity the Security Agent).

 

IT IS AGREED as follows:

 

1.             INTERPRETATION

 

1.1           Definitions

 

In this Agreement:

 

Acceptable Bank means a commercial bank or
trust company which has a rating of A or higher by S&P or FitchIBCA or A2
or higher by Moody’s or a comparable rating from an internationally recognised
credit rating agency for its long-term debt obligations.

 

Accession Agreement means a letter, substantially
in the form of Schedule 8 (Form of Accession Agreement), with such amendments
as the Facility Agent may approve or reasonably require.

 

Accounting Principles means the accounting
principles applied in the Original Financial Statements.

 

Additional Borrower means a wholly-owned
Subsidiary of eircom which becomes an Additional Borrower in accordance with
Clause 30.6 (Additional Obligors).

 

1

 

Additional Guarantor means a member of the Group
which becomes a Guarantor after the date of this Agreement.

 

Additional Obligor means an Additional Borrower
or an Additional Guarantor.

 

Administrative Party means each Arranger, the
Fronting Bank or the Facility Agent.

 

Affiliate means a Subsidiary or a
Holding Company of a person or any other Subsidiary of that Holding Company.

 

Ancillary Facility
Document
means any document evidencing any bilateral facility a Lender may make
available under this Agreement in place of all or part of its Tranche D
Commitment.

 

APSS means the eircom Approved
Profit Sharing Scheme constituted by deed dated 31st March, 1999 (the APSS Trust
Deed).

 

Arranger means a Mandated Lead
Arranger or a Lead Arranger.

 

Auditors means PricewaterhouseCoopers,
Ernst & Young, KPMG, Deloitte & Touche or such other firm of
independent public accountants of international standing which may be appointed
by the Company in accordance with this Agreement as its auditors.

 

Availability Period means:

 

(a)           in respect of the Tranche A Facility,
Tranche B Facility and Tranche C Facility (other than that part of Tranche A
which constitutes the Refinancing Reserve), the period from and including the
date of this Agreement to and including the Term Loan Availability Date;

 

(b)           in respect of that part of the Tranche A
Facility which constitutes the Refinancing Reserve, the period from and
including the date of this Agreement to and including the Refinancing Reserve
Availability Date; and

 

(c)           in respect of the Tranche D Facility, the
period from and including the date of this Agreement to and including the
Tranche D Availability Date.

 

Beneficiary means the beneficiary of a
Documentary Credit.

 

Borrower means the Company, eircom,
ITI or an Additional Borrower.

 

Break Costs means the amount (if any)
which a Lender is entitled to receive under this Agreement as compensation if
any part of a Loan or overdue amount is paid otherwise than on its due date.

 

Business Day means a day (other than a
Saturday or a Sunday) on which banks are open for general business in London
and Dublin and:

 

(a)           if on that day a payment in or a purchase
of a currency (other than euro) is to be made, the principal financial centre
of the country of that currency; or

 

(b)           if on that day a payment in or a purchase
of euro is to be made, which is also a TARGET Day.

 

2

 

Business Model means the business model for
the Group agreed between the Company and the Arrangers.

 

Business Plan means a business plan for the
Group, with projections for at least 3 years from the date of such plan.

 

Cash means cash in hand or on
deposit with any Acceptable Bank.

 

Cash Equivalents means, at any time:

 

(a)           certificates of deposit, maturing within
one year after the relevant date of calculation, issued by an Acceptable Bank;

 

(b)           any investment in marketable obligations
issued or guaranteed by the government of any OECD Country or by an
instrumentality or agency of the government of any OECD Country having an
equivalent credit rating;

 

(c)           open market commercial paper:

 

(i)            for which a recognised trading market
exists;

 

(ii)           issued in any OECD Country;

 

(iii)          which matures within one year after the
relevant date of calculation; and

 

(iv)          which has a credit rating of either A-1 by
S&P or FitchIBCA or P-1 by Moody’s, or, if no rating is available in
respect of the commercial paper or indebtedness, the issuer of which has, in
respect of its long-term debt obligations, an equivalent rating;

 

(d)           Sterling bills of exchange eligible for
rediscount at the Bank of England (or Irish equivalent) and accepted by an
Acceptable Bank; or

 

(e)           any other instrument, security or
investment approved by the Majority Lenders,

 

Charge of Shares means the charge granted by
the Company in respect of the shares of eircom entered into in connection with
the obligations of the Obligors under the Finance Documents.

 

Commitment means a Commitment, as so
designated, of a Lender under a particular Facility.

 

Compliance Certificate has the meaning given to that
term in Clause 20.3 (Compliance Certificate).

 

Credit means a Loan or a Documentary
Credit.

 

Dangerous Substance means any radioactive
emissions or noise and any natural or artificial substance (in whatever form)
the generation, transportation, storage, treatment, use or disposal of which
(whether alone or in combination with any substance) and including (without
limitation) any controlled, special, hazardous, toxic, radioactive or dangerous
substance or waste, gives rise to a risk of causing harm to man or any other
living organism or damaging the Environment, public health or welfare.

 

3

 

Debentures means:

 

(a)           the composite debenture between eircom and
ITI and the Security Agent; and

 

(b)           the debenture between the Company and the
Security Agent,

 

each
entered into in connection with the obligations of the relevant Obligors under
the Finance Documents.

 

Default means:

 

(a)           an Event of Default; or

 

(b)           an event or circumstance which would be
(with the expiry of a grace period, the giving of notice, the making of any determination
or the satisfaction of any other applicable condition in each case as specified
in Clause 23 (Default) or any combination of them) an Event of Default,
provided that any such event which by reason of the express provisions in any
Finance Document requires the satisfaction of a condition of materiality before
it may become an Event of Default shall not be a Default unless that condition
of materiality is satisfied.

 

Disclosure Letter means the letter dated on or
before the first Utilisation Date from the Company and each Obligor to the
Facility Agent counter-signed by the Facility Agent for the purposes of
identification, disclosing certain matters considered by the Company to be
relevant in the context of such of the representations and warranties set out
in Clause 19 (Representations) as are expressed to be qualified by the
Disclosure Letter for the purposes of this Agreement.

 

Distribution means one or more cash
dividends to be paid by the Company in respect of its issued shares in an
aggregate amount not exceeding the Distribution Amount.

 

Distribution Amount means €400,000,000 (in
aggregate).

 

Documentary Credit means any guarantee or Letter
of Credit issued pursuant to Clause 6 (Utilisation - Documentary Credits), as
the same may be varied or extended from time to time.

 

EIB Loan means the IR£25,000,000 loan
made from European Investment Bank to ITI under a loan agreement dated
December, 1993.

 

eircom Funding means eircom Funding, a
public unlimited company registered in Ireland number 359251.

 

eircom Funding  Holdco means eircom Funding
(Holdings) Limited, registered in Ireland number 359454.

 

eircom Funding Loan means the subordinated loan
made or to be made by eircom Funding to the Company in a principal amount equal
to the initial principal amount of the Junior High Yield Notes.

 

eircom Funding Guarantee means the guarantee given on
or about the date of this Agreement by eircom in favour of eircom Funding in
respect of the obligations of the Company under the eircom Funding Loan
Agreement, the terms of which are set out in the eircom Funding Loan Agreement.

 

4

 

eircom Funding Loan
Agreement
means the agreement dated on or about the date of this Agreement between eircom
Funding and the Company in respect of the eircom Funding Loan.

 

Environmental Approval means any authorisation
required by an Environmental Law.

 

Environmental Claim means any claim by any person
in connection with:

 

(i)            a breach, or alleged breach, of an
Environmental Law;

 

(ii)           any accident, fire, explosion or other
event of any type involving an emission or Dangerous Substance; or

 

(iii)          any other environmental contamination at or
from any site owned or occupied by any member of the Group.

 

Environmental Law means any law or regulation
concerning:

 

(i)            the protection of health and safety;

 

(ii)           the environment; or

 

(iii)          any emission or Dangerous Substance.

 

ESOT means the eircom Employee
Share Ownership Trust constituted by deed dated 31st March, 1999 (the ESOT Trust
Deed).

 

ESOT Dividend means the 2 per cent per
annum cash dividend payable on the ESOT Preference Shares.

 

ESOT Loan means a loan made by the
Company to the ESOT on or about 22nd May, 2002 in an amount of €50,051,000.

 

ESOT Preference Shares means the 2390 cumulative
redeemable preference shares of €50,000 each in the capital of Valentia
Holdings Limited issued to the ESOT (and any shares resulting from any future
subdivision of such 2390 shares).

 

EURIBOR means for a Term of any Loan
or overdue amount in euro:

 

(a)           the applicable Screen Rate; or

 

(b)           if no Screen Rate is available for that
Term of that Loan or overdue amount, the arithmetic mean (rounded upward to
four decimal places) of the rates as supplied to the Facility Agent at its
request quoted by the Reference Banks to leading banks in the European
interbank market,

 

as of
11.00 a.m. (Brussels time) on the Rate Fixing Day for the offering of deposits
in euro for a period comparable to that Term.

 

euro means the single currency of
the Participating Member States.

 

Event of Default means an event specified as
such in this Agreement.

 

Excluded Companies means eircom Funding, eircom
Funding Holdco, eircom ESOP Trustee Limited, Lercie Limited and the Nominees.

 

5

 

Existing Facility means the €2,400,000,000
credit facility dated 29th June, 2001 between (amongst others) the Company and
the Facility Agent.

 

Facility means a credit facility made
available under this Agreement.

 

Facility Office means the office(s) notified
by a Lender to the Facility Agent:

 

(a)           on or before the date it becomes a Lender;
or

 

(b)           by not less than five Business Days’
notice,

 

as the
office(s) through which it will perform its obligations under this Agreement.

 

Fee Letter means any letter entered into
by reference to this Agreement between one or more Administrative Parties and
the Company setting out the amount of certain fees referred to in this
Agreement.

 

Final Maturity Date means:

 

(a)           in relation to Tranche A, the Tranche A
Final Maturity Date;

 

(b)           in relation to Tranche B, the Tranche B
Final Maturity Date;

 

(c)           in relation to Tranche C, the Tranche C
Final Maturity Date; and

 

(d)           in relation to Tranche D, the Tranche D
Final Maturity Date.

 

Finance Document means:

 

(a)           this Agreement;

 

(b)           a Security Document;

 

(c)           a Fee Letter;

 

(d)           a Documentary Credit;

 

(e)           a Transfer Certificate;

 

(f)            an Accession Agreement;

 

(g)           an Ancillary Facility Document;

 

(h)           the Intercreditor Agreement;

 

(i)            a Hedging Document;

 

(j)            the Syndication Letter; and

 

(k)           any other document designated as such by
the Facility Agent and the Company.

 

Finance Party means a Lender or an
Administrative Party.

 

Financial Indebtedness means any indebtedness for or
in respect of (without double counting):

 

6

 

(a)           moneys borrowed;

 

(b)           any acceptance credit;

 

(c)           any bond, note, debenture, loan stock or
other similar instrument;

 

(d)           any finance or capital lease treated as
such in the Group’s consolidated accounts;

 

(e)           receivables sold or discounted (otherwise
than on a non-recourse basis);

 

(f)            the acquisition cost of any asset to the
extent payable more than 120 days after its acquisition or possession by the
party liable where the deferred payment is arranged primarily as a method of
raising finance or financing the acquisition of that asset;

 

(g)           any derivative transaction protecting
against or benefiting from fluctuations in any rate or price (and, except for
non-payment of an amount, the then mark to market value of the derivative
transaction will be used to calculate its amount);

 

(h)           any other transaction (including any
forward sale or purchase agreement) which has the commercial effect of a
borrowing;

 

(i)            any counter-indemnity obligation in respect
of any guarantee, indemnity, bond, letter of credit or any other instrument
issued by a bank or financial institution; or

 

(j)            any guarantee, indemnity or similar
assurance against financial loss of any person in respect of any item referred
to in paragraphs (a) to (i) above and any agreement to maintain the solvency of
any person whether by investing in, lending to or purchasing assets of such
person.

 

Fronting Bank means such Lender (being
licensed in a member state of the European Union to engage in guarantee
business, and if not licensed in Ireland, which has notified its regulatory
authority of carrying on such business in Ireland and such regulatory authority
has notified the Central Bank and Financial Services Authority of Ireland or
the Irish Financial Services Regulatory Authority) which agrees (with the
approval of the Company, the Facility Agent and, where a Documentary Credit is
outstanding at that time (unless otherwise expressly provided in the terms of
that Documentary Credit), the relevant Beneficiary under that Documentary Credit)
to act as Fronting Bank.  A reference to
the Fronting Bank in relation to any particular Documentary Credit shall be
taken as a reference to the Lender which issued that Documentary Credit as
Fronting Bank, regardless of whether it has subsequently ceased to act as
Fronting Bank.

 

GAAP means generally accepted
accounting principles in Ireland from time to time.

 

Group means the Company and its
Subsidiaries.

 

Group Guarantees means (a) guarantees entered
into pursuant to section 17 of the Companies (Amendment) Act 1986 of Ireland;
and (b) the assumption of joint and several liability by eircom Limited for
debts arising from legal acts performed by eircom Investments B.V. and
eircomnet B.V. within the meaning of article 403, paragraph 1 under f of Book 2
of the Dutch Civil Code.

 

Guarantor means an Original Guarantor
or an Additional Guarantor.

 

Hedging Document has the meaning given to it
in the Intercreditor Agreement.

 

7

 

Hedging Letter means a letter dated on or
about the date of this Agreement between the Company and the Facility Agent
relating to the interest and currency hedging strategy of the Group.

 

Hedging Security Document has the meaning given to it
in the Intercreditor Agreement.

 

High Yield Notes means the Senior High Yield
Notes or the Junior High Yield Notes, or both of them, as the context requires.

 

Holding Company, of any other person, means a
company in respect of which that other person is a Subsidiary.

 

Increased Cost means:

 

(a)           an additional or increased cost;

 

(b)           a reduction in the rate of return under a
Finance Document or on its overall capital; or

 

(c)           a reduction of an amount due and payable
under any Finance Document,

 

which
is incurred or suffered by a Finance Party or any of its Affiliates but only to
the extent attributable to that Finance Party having entered into any Finance
Document or funding or performing its obligations under any Finance Document.

 

Indentures mean the Senior High Yield
Indenture and the Junior High Yield Indenture.

 

Indenture Documents means:

 

(a)           the Indentures (including any Senior High
Yield Notes and Junior High Yield Notes issued thereunder);

 

(b)           the registration rights agreements dated on
or about the date of this Agreement relating to the High Yield Notes, between
the Company, certain of its Subsidiaries and the initial purchasers of the High
Yield Notes;

 

(c)           the dollar deposit and custody agreements
and the two euro deposit and custody agreements dated on or about the date
hereof relating to the High Yield Notes, between the Company, the Bank of New
York or an affiliate thereof as book-entry depository and the Bank of New York
or an affiliate thereof as note custodian thereunder;

 

(d)           the purchase agreement dated 30th July,
2003 relating to the High Yield Notes, between the Company, certain of its
Subsidiaries and the initial purchasers referred to therein; and

 

(e)           the fee letters dated on or about the date
hereof relating to the fees payable in connection with the High Yield Notes.

 

Information Memorandum means the information
memorandum prepared on behalf of, and approved by, the Company in connection
with this Agreement.

 

Intellectual Property
Rights
means all know-how, patents, trademarks, service marks, designs, business
names, topographical or similar rights, copyrights and other intellectual
property rights and any interests (including by way of licence) in any of the
foregoing (in any 

 

8

 

jurisdiction and in each case whether
registered or not and including all applications for the same) of any member of
the Group.

 

Intercreditor Agreement means the intercreditor
agreement dated on or around the date of this Agreement between, amongst
others, the Company, eircom, eircom Funding and the Facility Agent.

 

Investor means each shareholder of
Valentia Holdings Limited from time to time.

 

Investor Debt has the meaning given to it
in the Intercreditor Agreement.

 

IR£ means Irish Pounds.

 

Ireland means the Republic of
Ireland, and Irish shall be construed accordingly.

 

ITI Loan Stock means the:

 

(a)           IR£20,000,000 9.25 per cent. loan stock due
2003 issued by ITI constituted by an instrument dated 8th September, 1988; and

 

(b)           IR£30,000,000 9.25 per cent. loan stock due
2003 issued by ITI constituted by an instrument dated 23rd February, 1993.

 

Joint Venture means all joint venture
entities, whether a company, unincorporated firm, undertaking, joint venture,
association or partnership in which any member of the Group has an interest
from time to time.

 

Junior High Yield
Indenture
means the senior subordinated indenture, dated on or about the date hereof,
between eircom Funding as issuer, eircom Limited and the other guarantors
referred to therein, the Bank of New York as trustee, registrar and paying
agent, the Bank of New York (Luxembourg) as Luxembourg paying agent and
transfer agent, the Bank of New York (London) as principal paying agent and
transfer agent, AIB/BNY Fund Management (Ireland) Limited as Irish paying agent
and transfer agent and any entities that from time to time are added as
additional guarantors.

 

Junior High Yield Notes means the Original Notes (as
defined in the Junior High Yield Indenture).

 

Lease Transaction Security
means
any Security Interest subsisting or created (or the creation of which is
contemplated) as of the date of this Agreement in connection with any of the
finance lease transactions specified in Schedule 6 and the financing thereof.

 

Lender means:

 

(a)           an Original Lender; or

 

(b)           any person which becomes a Lender after the
date of this Agreement.

 

Letter of Credit means a letter of credit
issued by the Fronting Bank pursuant to Clause 6.3 (Issue of Documentary
Credit) substantially in one of the forms set out in Schedule 10 (Letter of
Credit), or in such other form as the Fronting Bank, acting on the instructions
of the Majority Lenders, shall agree, as the same may be varied or extended
from time to time.

 

9

 

Loan means, unless otherwise
stated in this Agreement, the principal amount of each borrowing under this
Agreement or the principal amount outstanding of that borrowing.

 

Majority Lenders means, at any time, Lenders:

 

(a)           whose share in the outstanding Credits and
whose undrawn Commitments then aggregate 66 2/3 per cent.
or more of the aggregate of all the outstanding Credits and the undrawn
Commitments of all the Lenders;

 

(b)           if there is no Credit then outstanding,
whose undrawn Commitments then aggregate 66 2/3 per cent.
or more of the Total Commitments; or

 

(c)           if there is no Credit then outstanding and
the Total Commitments have been reduced to zero, whose Commitments aggregated
66 2/3 per cent. or more of the Total Commitments
immediately before the reduction.

 

Management Incentive
Scheme
means the management incentive schemes of Valentia Holdings Limited relating to
the grant of options to acquire shares in Valentia Holdings Limited to
executives and senior managers of eircom, substantially in the form initialled
by the Facility Agent on or prior to the date of this Agreement.

 

Management Options   means any options to acquire shares in
Valentia Holdings Limited that may from time to time be granted by Valentia
Holdings Limited to directors or employees of Valentia Holdings Limited, the
Company or eircom (or to affiliates of such directors or employees).

 

Mandatory Cost means the cost of complying
with certain regulatory requirements, expressed as a percentage rate per annum
and calculated by the Facility Agent under Schedule 4 (Calculation of the
Mandatory Cost).

 

Margin means:

 

(a)           in relation to any Tranche A Loan and any
overdue or other amount relating to the Tranche A Facility, 2.25 per cent. per
annum, save as adjusted pursuant to Clause 11.3 (Margin adjustments);

 

(b)           in relation to any Tranche B Loan and any
overdue or other amount relating to the Tranche B Facility, 2.75 per cent. per
annum;

 

(c)           in relation to any Tranche C Loan and any
overdue or other amount relating to the Tranche C Facility, 3.25 per cent. per
annum; and

 

(d)           in relation to any Tranche D Loan and any
overdue or other amount relating to the Tranche D Facility, 2.25 per cent. per
annum, save as adjusted pursuant to Clause 11.3 (Margin adjustments).

 

Material Adverse Effect  means an event or circumstance that is or is reasonably likely to be
materially adverse to:

 

(a)           the ability of any
Obligor to perform its payment or other material obligations under any Finance
Document (taking into account support able to be provided to that Obligor by
other members of the Group and including, without limitation, obligations under
Clause 21 (Financial covenants)); or

 

10

 

(b)           the
validity or enforceability of any Finance Document (other than a Hedging
Security Document); or

 

(c)           the
business, assets or financial condition of the Obligors as a whole.

 

Material Subsidiary means, at any time, any
Subsidiary of the Company, other than eircom ESOP Trustee Limited, whose net
assets, Adjusted EBITDA or turnover (excluding intra-Group items) then equal or
exceed five per cent. of the net assets, Consolidated Adjusted EBITDA or
turnover of the Group.

 

For
this purpose:

 

(a)           the net assets, Consolidated Adjusted
EBITDA or turnover of a Subsidiary of the Company will be determined from its
financial statements (consolidated if it has Subsidiaries) upon which the
latest audited financial statements of the Group have been based;

 

(b)           if a Subsidiary of the Company becomes a
member of the Group after the date on which the latest audited financial
statements of the Group have been prepared, the net assets, Consolidated
Adjusted EBITDA or turnover of that Subsidiary will be determined from its
latest financial statements;

 

(c)           the net assets, Consolidated Adjusted
EBITDA or turnover of the Group will be determined from its latest audited
financial statements, adjusted (where appropriate) to reflect the net assets,
Consolidated Adjusted EBITDA or turnover of any company or business
subsequently acquired or disposed of;

 

(d)           the net assets, Consolidated Adjusted
EBITDA and turnover of the Group shall be calculated without regard to the
Excluded Companies; and

 

(e)           if a Material Subsidiary disposes of all or
substantially all of its assets to another Subsidiary of the Company, it will
immediately cease to be a Material Subsidiary and the other Subsidiary (if it
is not already) will immediately become a Material Subsidiary; the subsequent
financial statements of those Subsidiaries and the Group will be used to
determine whether those Subsidiaries are Material Subsidiaries or not.

 

If there is a dispute as to whether or not
a company is a Material Subsidiary, a Compliance Certificate signed by the
Company’s auditors will be, in the absence of manifest error, conclusive.

 

Maturity Date means, for a Tranche D Loan
or a Documentary Credit, the last day of its Term.

 

Moodys means Moodys Investor
Services, Inc., or any successor to its ratings business.

 

Nominees means eircom (Holdings No.1)
Limited, eircom (Holdings No. 2) Limited, eircom (Holdings No. 3) Limited,
eircom (Holdings No. 4) Limited, eircom (Holdings No. 5) Limited, and eircom
(Initial Funder) Limited.

 

Non-Obligor means a member of the Group
that is not an Obligor.

 

Obligor means a Borrower or a
Guarantor.

 

11

 

Original Financial Statements means the audited
consolidated financial statements of the Company for the year ended 31st March,
2003.

 

Original Investors means Providence Equity
Partners, Inc., PV III Investment (Cayman) Limited, PV Investment (Cayman)
Limited, PV III (O) Investment (Cayman) Limited, PV (O) Investment (Cayman)
Limited, Soros Private Equity Investors L.P., Knightstown Investor Limited,
EMOF L.L.C., The Goldman Sachs Group, Inc., Lionheart Ventures (Overseas)
Limited, Eircom ESOP Trustee Limited in its capacity as trustee of the eircom
Employee Share Ownership Trust and trustee of the Valentia Share Trust, Aurum
Nominees Limited and Yoghal Trading Limited.

 

Original Obligor means each Original Borrower
and each Original Guarantor.

 

Participating Member State means a member state of the
European Communities that adopts or has adopted the euro as its lawful currency
under the legislation of the European Union for European Monetary Union.

 

Party means a party to this
Agreement.

 

Permitted Distribution means any distribution by the
Company to its shareholders (and/or, in the case of paragraph (d) below,
directly to the ESOT and/or, in the case of (g) below, directly to its
Investors) for the purpose of effecting (or enabling the relevant shareholder
to effect) any or all of the following:

 

(a)           the redemption of some or all of the ESOT
Preference Shares by up to an aggregate amount of €66,000,000 for cash,
provided that the provisions of Clause 22.29 (Repayment of ESOT Loan) shall
then apply;

 

(b)           the Distribution (provided that it is made
within 90 Business Days after the first Utilisation Date);

 

(c)           payment in cash, of up to €46,000,000 of
accrued dividend on the Preference Shares (provided that such payment is made
within 90 Business Days after the first Utilisation Date and the provisions of
Clause 22.29 (Repayment of ESOT Loan) shall then apply);

 

(d)           payment in cash (whether by way of dividend
(in or in lieu of such dividend, a contribution of an equivalent amount), loan
or similar distribution) of an annual 2 per cent. dividend on the ESOT
Preference Shares (and, in the event that such dividend is not or cannot be
paid, accrued interest on such dividend);

 

(e)           payment of head office expenses or other
administrative expenses which do not exceed €1,000,000 in aggregate in any
financial year of the Company;

 

(f)            payments in connection with any purchase,
repurchase, redemption, defeasance, acquisition, cancellation, conversion or
retirement for value of any equity of a member of the Group or Valentia
Holdings Limited under the Management Incentive Scheme and/or the issue of
shares (for cash or non-cash consideration, including by way of bonus issue) in
Valentia Holdings Limited and the repurchase or redemption of such shares, such
payments not to exceed €5,000,000 in aggregate in any financial year of the
Company, save in respect of the financial year ending in 2009 where an
aggregate annual limit of €15,000,000 shall apply (and the amount of such
€15,000,000 limit that is unutilised by 31st March, 2009 may be
carried over into the next financial year);

 

12

 

(g)           management fees provided that such
management fees are not used as a means of making an equity distribution to the
Investors and which do not in aggregate exceed €1,000,000 (or its equivalent)
in any financial year of the Company; or

 

(h)           any fees paid for corporate advisory or
legal advisory work provided on arm’s length terms in the ordinary course of
business and which are not used as a means of making an equity distribution to
the Investors,

 

PROVIDED THAT, except in the case of a
Permitted Distribution under paragraphs (e), (f) or (h) above, in any such case
no Event of Default under Clause 23.2 (Non-Payment) or Clause 23.3(a) (Breach
of other obligations), has occurred which is then continuing at the time the
relevant Permitted Distribution is made. 
Any such payment not made as a result of such an Event of Default may be
paid after such Event of Default has been waived or is no longer continuing (i)
for a period of 3 months since the Event of Default was remedied; or (ii) (if
earlier) at the delivery of the next Compliance Certificate under Clause 20.3
(Compliance Certificate) (provided always that there is no other outstanding
Event of Default under Clause 23.2 (Non-Payment) or Clause 23.3(a) (Breach of
other obligations), continuing).

 

For the avoidance of doubt, the Company may
elect to effect any Permitted Distribution by means of an upstream loan
arrangement (and may pay a subsequent cash dividend in an amount equal to any
repayment in cash of such a loan, so that such subsequent dividend does not
result in any net cash outflow from the Company) and/or an issue of shares
and/or a cancellation or purchase back or redemption of shares, subject always
to the overall limitations set out in this definition.

 

Permitted Exit means any initial public
offering of shares in the Company or any Holding Company of the Company (other
than an Original Investor or a Holding Company of an Original Investor) which
complies with the terms of Clause 10.6 (Mandatory prepayment - debt and equity
issues) and which involves the listing of new shares amounting to at least 20
per cent. of the total issued share capital of the Company or any Holding
Company of the Company (other than an Original Investor or a Holding Company of
an Original Investor) on a recognised exchange in the European Union or United
States.

 

Preference Shares means the ESOT Preference
Shares, the 8,000,000 non-voting third-party cumulative redeemable preference
shares of €0.50 each and 5,000,000 non-voting adviser cumulative redeemable
preference shares of €0.50 each in Valentia Holdings Limited.

 

Primary Syndication Date means the earlier of (i) the
date on which the Facility Agent notifies the Company that primary syndication
of the Facilities has been or is to be completed and (ii) 31st December, 2003.

 

Pro Rata Share means:

 

(a)           for the purpose of determining a Lender’s
share in a utilisation of a Facility, the proportion which its Commitment under
that Facility bears to all the Commitments under that Facility; and

 

(b)           for any other purpose on a particular date:

 

(i)            the proportion which a Lender’s share of
the Credits (if any) bears to all the Credits;

 

(ii)           if there is no Credit outstanding on that
date, the proportion which its Commitment bears to the Total Commitments on
that date;

 

13

 

(iii)          if the Total Commitments have been
cancelled, the proportion which its Commitments bore to the Total Commitments
immediately before being cancelled; or

 

(iv)          when the term is used in relation to a
Facility, the above proportions but applied only to the Credits and Commitments
for that Facility.

 

For the
purpose of sub-paragraph (iv) above, the Facility Agent will determine, in the
case of a dispute, whether the term in any case relates to a particular
Facility.

 

Rate Fixing Day means the second TARGET Day
before the first day of a Term for a Loan or such other day as the Facility
Agent determines is generally treated as the rate fixing day by market practice
in the relevant interbank market.

 

Reference Banks means Barclays Bank PLC,
Deutsche Bank AG London and The Royal Bank of Scotland plc and any other bank
or financial institution appointed as such by the Facility Agent under this
Agreement.

 

Refinancing Amount means, at any time, the lower
of:

 

(a)           €88,250,000; or

 

(b)           the outstanding principal amount of the EIB Loan and
ITI Loan Stock at that time (together with any accrued interest, fees, costs
and/or expenses in respect thereof).

 

Refinancing Reserve means the portion of Tranche
A reserved for the refinancing of certain Financial Indebtedness in accordance
with Clause 4.3 (Refinancing Reserve).

 

Refinancing Reserve
Availability Date means 31st December, 2003.

 

Repayment Instalment means each instalment for
repayment of the Tranche A Loans.

 

Repeating Representations means the representations
which are deemed to be repeated under this Agreement pursuant to Clause 19
(Representations).

 

Reports means the due diligence reports
referred to in Schedule 2, Part I in paragraph 1 under the heading “Other
Documents and Evidence”.

 

Request means a request for a Credit,
substantially in the form of Schedule 3 (Form of Request).

 

Rollover Credit means one or more Credits
under the Tranche D Facility:

 

(a)           to be made on the same day that a maturing
Credit under the Tranche D Facility is due to be repaid;

 

(b)           the aggregate amount of which is equal to
or less than the maturing Credit; and

 

(c)           to be made to the same Borrower for the
purpose of refinancing a maturing Credit under the Tranche D Facility.

 

St. John’s Road means the property measuring
3.9 hectares, situated at St. Johns Road West/Military Road, Kilmainham, Dublin
8.

 

14

 

Screen Rate means the percentage rate per
annum determined by the Banking Federation of the European Union for the
relevant Term displayed on the appropriate page of the Telerate screen selected
by the Facility Agent.  If the relevant
page is replaced or the service ceases to be available, the Facility Agent
(after consultation with the Company and the Lenders) may specify another page
or service displaying the appropriate rate.

 

Security Assignment means:

 

(a)           the security assignment agreement between eircom Funding
and the Security Agent relating to the eircom Funding Loan and the eircom
Funding Guarantee; and

 

(b)           the security assignment by eircom Funding in favour of
the Security Agent relating to the Hedging Documents to which eircom Funding is
a party.

 

Security Document means:

 

(a)           the Security Assignment;

 

(b)           the Charge of Shares;

 

(c)           each Debenture; and

 

(d)           any other document evidencing or creating
security over any asset of an Obligor to secure any obligation of any Obligor
to a Finance Party under the Finance Documents.

 

Security Interest means any mortgage, pledge,
lien, charge, assignment, hypothecation or security interest or any other
agreement or arrangement having a similar effect.

 

Senior High Yield
Indenture
means the senior indenture, dated on or about the date hereof, between the
Company as issuer, eircom Limited as guarantor, the Bank of New York as
trustee, registrar and paying agent, the Bank of New York (Luxembourg) as
Luxembourg paying agent and transfer agent, the Bank of New York (London) as
principal paying agent and transfer agent, AIB/BNY Fund Management (Ireland)
Limited as Irish paying agent and transfer agent and any entities that from
time to time are added as additional note guarantors.

 

Senior High Yield Notes means the Original Notes (as
defined in the Senior High Yield Indenture).

 

S&P means Standard & Poor’s
Corporation (a division of the McGraw-Hill Companies, Inc.) (or any successor
to its ratings business).

 

Subsidiary means an entity of which a
person has direct or indirect control or owns directly or indirectly more than
50% of the voting capital or similar right of ownership (excluding eircom ESOP
Trustee Limited for so long as it is the trustee of ESOT and/or the APSS and
all or substantially all its assets are held on trust for the beneficiaries of
ESOT and/or the APSS respectively) and control for this purpose means the power to
direct the management and the policies of the entity whether through the
ownership of voting capital, by contract or otherwise.

 

Syndication Letter means the letter dated on or
around the date of this Agreement between the Company and the Arrangers dealing
with syndication of the Facility.

 

15

 

TARGET Day means a day on which the
Trans-European Automated Real-time Gross Settlement Express Transfer payment
system is open for the settlement of payments in euro.

 

Tax means any tax, levy, impost,
duty or other charge or withholding of a similar nature (including any related
penalty or interest).

 

Tax Deduction means a deduction or
withholding for or on account of Tax from a payment under a Finance Document.

 

Tax Payment means a payment made by an
Obligor to a Finance Party in any way relating to a Tax Deduction or under any
indemnity given by that Obligor in respect of Tax under any Finance Document.

 

Term means each period determined
under this Agreement:

 

(a)           by reference to which interest on a Loan or
an overdue amount is calculated; or

 

(b)           for which the Fronting Bank may be under a
liability under a Documentary Credit.

 

Term Loan means any of a Tranche A
Loan, a Tranche B Loan or a Tranche C Loan.

 

Term Loan Availability
Date
means the date which is 10 days after the date of this Agreement.

 

Term Loan Commitment means the Tranche A
Commitments, the Tranche B Commitments or the Tranche C Commitments, as the
case may be.

 

Total Commitments means the Commitments of all
the Lenders.

 

Total Term Loan
Commitments means the aggregate of the Term Loan Commitments of all the Lenders,
being the total amount specified as such in Schedule 1 (Original Parties) at
the date of this Agreement.

 

Total Tranche D
Commitments means the aggregate of the Tranche D Commitments of all the Lenders,
being as at the date of this Agreement €150,000,000.

 

Tranche A Commitment in relation to a Lender means
the amount (if any) appearing and designated as such against that Lender’s name
in Schedule 1 (Original Parties) or in the Transfer Certificate or other
document by which it became a party to or acquired rights and/or obligations
under this Agreement, as reduced or increased by substitution or transfer
pursuant to Clause 30 (Changes to the Parties) and any Transfer Certificates to
which such Lender is party, and to the extent not otherwise cancelled,
transferred, reduced or terminated under this Agreement.  As at the date of this Agreement, the
aggregate of all the Lenders’ Tranche A Commitments is €730,000,000.

 

Tranche A Facility means the term loan facility
referred to in Clause 2.1(a)(i) (Facilities).

 

Tranche A Final Maturity
Date
means the date which is seven years from the date of this Agreement.

 

Tranche A Loan means a Loan under the
Tranche A Facility and identified as such in its Request.

 

16

 

Tranche B Commitment in relation to a Lender means
the amount (if any) appearing and designated as such against that Lender’s name
in Schedule 1 (Original Parties) or in the Transfer Certificate or other
document by which it became a party to or acquired rights and/or obligations
under this Agreement, as reduced or increased by substitution or transfer
pursuant to Clause 30 (Changes to the Parties) and any Transfer Certificates to
which such Lender is party, and to the extent not otherwise cancelled,
transferred, reduced or terminated under this Agreement.  As at the date of this Agreement, the
aggregate of all the Lenders’ Tranche B Commitments is €260,000,000.

 

Tranche B Facility means the term loan facility
referred to in Clause 2.1(a)(ii) (Facilities).

 

Tranche B Final Maturity
Date
means the date which is eight years from the date of this Agreement.

 

Tranche B Loan means a Loan under the
Tranche B Facility and identified as such in its Request.

 

Tranche C Commitment in relation to a Lender means
the amount (if any) appearing and designated as such against that Lender’s name
in Schedule 1 (Original Parties) or in the Transfer Certificate or other
document by which it became a party to or acquired rights and/or obligations
under this Agreement, as reduced or increased by substitution or transfer
pursuant to Clause 30 (Changes to the Parties) and any Transfer Certificates to
which such Lender is party, and to the extent not otherwise cancelled,
transferred, reduced or terminated under this Agreement.  As at the date of this Agreement, the
aggregate of all the Lenders’ Tranche C Commitments is €260,000,000.

 

Tranche C Facility means the term loan facility
referred to in Clause 2.1(a)(iii) (Facilities).

 

Tranche C Final Maturity
Date
means the date which is nine years from the date of this Agreement.

 

Tranche C Loan means a Loan under the
Tranche C Facility and identified as such in its Request.

 

Tranche D Availability
Date means
the date falling one month before the Tranche D Final Maturity Date.

 

Tranche D Borrower means eircom, ITI or an
Additional Borrower.

 

Tranche D Commitment in relation to a Lender means
the amount (if any) appearing and designated as such against that Lender’s name
in Schedule 1 (Original Parties) or in the Transfer Certificate or other
document by which it became a party to or acquired rights and/or obligations
under this Agreement, as reduced or increased by substitution or transfer
pursuant to Clause 30 (Changes to the Parties) and any Transfer Certificates to
which such Lender is party, and to the extent not otherwise cancelled,
transferred, reduced or terminated under this Agreement.  As at the date of this Agreement, the
aggregate of all the Lenders’ Tranche D Commitments is €150,000,000.

 

Tranche D Facility means the term loan facility
referred to in Clause 2.1(b) (Facilities).

 

Tranche D Final Maturity
Date means
the date which is seven years from the date of this Agreement.

 

17

 

Tranche D Loan means a Loan under the Tranche
D Facility and identified as such in its Request.

 

Transfer Certificate means a certificate,
substantially in the form of Schedule 5 (Form of Transfer Certificate), with
such amendments as the Facility Agent may approve or reasonably require or any
other form agreed between the Facility Agent and the Company.

 

Treasury Transaction means any derivative
transaction protecting against or benefiting from fluctuations in any rate,
price, index or credit rating.

 

U.K. means the United Kingdom of
Great Britain and Northern Ireland.

 

US Dollars or US$ means the lawful currency
for the time being of the United States of America.

 

Utilisation Date means each date on which a
Facility is utilised.

 

1.2          Construction

 

(a)           The following definitions have the meanings given to
them in Clause 21 (Financial covenants):

 

(i)            Adjusted EBITDA;

 

(ii)           Capital Expenditure;

 

(iii)          Consolidated Adjusted EBITDA;

 

(iv)          Consolidated Cash and Cash Equivalents;

 

(v)           Consolidated Cashflow;

 

(vi)          Consolidated Interest Payable;

 

(vii)         Consolidated Net Interest Payable;

 

(viii)        Consolidated Net Total Borrowings;

 

(ix)           Consolidated Total Borrowings;

 

(x)            Consolidated Total Debt Service;

 

(xi)           Measurement Period; and

 

(xii)          Quarter Date.

 

(b)           In this Agreement, unless the contrary intention
appears, a reference to:

 

(i)            an amendment includes a supplement, novation,
restatement or re-enactment and amended will be construed accordingly;

 

assets includes present and future properties, revenues and
rights of every description;

 

18

 

an authorisation includes an authorisation,
consent, approval, resolution, licence, exemption, filing, registration or
notarisation;

 

Barclays Capital is a reference to Barclays Capital, the
investment banking division of Barclays Bank PLC (and all such references shall
include Barclays Bank PLC);

 

disposal means a sale, transfer, grant, lease or other
disposal, whether voluntary or involuntary, and dispose will be construed accordingly;

 

indebtedness includes any obligation (whether incurred as
principal or as surety) for the payment or repayment of money;

 

a person includes any individual, company,
corporation, unincorporated association or body (including a partnership,
trust, joint venture or consortium), government, state, agency, organisation or
other entity whether or not having separate legal personality;

 

a regulation includes any regulation, rule,
official directive, request or guideline (whether or not having the force of
law but, if not having the force of law, being of a type with which any person
to which it applies is accustomed to comply) of any governmental,
inter-governmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation;

 

(ii)           a currency is a reference to the lawful currency for
the time being of the relevant country;

 

(iii)          a Default being outstanding means that it has not been
remedied or waived;

 

(iv)          a provision of law is a reference to that provision as
extended, applied, amended or re-enacted and includes any subordinate
legislation;

 

(v)           a Clause, a Subclause or a Schedule is a reference to
a clause or subclause of, or a schedule to, this Agreement;

 

(vi)          a person includes its successors in title, permitted
assigns and permitted transferees;

 

(vii)         a Finance Document or another document is a reference
to that Finance Document or other document as amended; and

 

(viii)        a time of day is a reference to London time.

 

(c)           Unless the contrary intention appears, a reference to
a month
or months
is a reference to a period starting on one day in a calendar month and ending
on the numerically corresponding day in the next calendar month or the calendar
month in which it is to end, except that:

 

(i)            if the numerically corresponding day is not a Business
Day, the period will end on the next Business Day in that month (if there is
one) or the preceding Business Day (if there is not);

 

(ii)           if there is no numerically corresponding day in that
month, that period will end on the last Business Day in that month; and

 

19

 

(iii)          notwithstanding sub-paragraph (i) above, a period
which commences on the last Business Day of a month will end on the last
Business Day in the next month or the calendar month in which it is to end, as
appropriate.

 

(d)           Unless expressly provided to the contrary in a Finance
Document, a person who is not a party to a Finance Document may not enforce any
of its terms under the Contracts (Rights of Third Parties) Act 1999 and
notwithstanding any term of any Finance Document, the consent of any third
party is not required for any variation (including any release or compromise of
any liability) or termination of that Finance Document.

 

(e)           Unless the contrary intention appears:

 

(i)            a reference to a Party will not include that Party if
it has ceased to be a Party under this Agreement;

 

(ii)           an amount in euro is payable only in the euro unit;

 

(iii)          a word or expression used in any other Finance
Document or in any notice given in connection with any Finance Document has the
same meaning in that Finance Document or notice as in this Agreement; and

 

(iv)          any obligation of an Obligor under the Finance
Documents which is not a payment obligation remains in force for so long as any
payment obligation of an Obligor is or may be outstanding under the Finance
Documents.

 

(f)            The headings in this Agreement do not affect its
interpretation.

 

(g)           It is agreed that the obligations of the Company in
this Agreement are corporate obligations of the Company only and not its
present or future shareholders (the Shareholders).  No liability shall attach to or be incurred by the Shareholders
directly or indirectly by reason of any obligations, agreements, covenants or
representations contained in this Agreement and the Shareholders may rely on
this clause and to that extent their rights under the Contracts (Rights of
Third Parties) Act 1999 are not excluded.

 

2.             FACILITIES

 

2.1          Facilities

 

Subject to the terms of this Agreement the
Lenders make available:

 

(a)           to the Company, the following
facilities denominated in euro:

 

(i)            Tranche A Facility: a term loan facility in an
aggregate amount not exceeding the aggregate of all the Lenders’ Tranche A
Commitments;

 

(ii)           Tranche B Facility: a term loan facility in an
aggregate amount not exceeding the aggregate of all the Lenders’ Tranche B
Commitments;

 

(iii)          Tranche C Facility: a term loan facility in an
aggregate amount not exceeding the aggregate of all the Lenders’ Tranche C
Commitments; and

 

(b)           to the Tranche D Borrowers
only, the Tranche
D Facility: a revolving credit facility denominated in euro in an
aggregate amount not exceeding the Total Tranche D Commitments.

 

20

 

2.2          Documentary Credits

 

(a)           The Tranche D Facility includes a Letter of Credit
option and a guarantee option.

 

(b)           The maximum aggregate amount which may be outstanding
under the Documentary Credits at any one time is €50,000,000.

 

2.3          Ancillary Facilities

 

Subject to the terms of this Agreement, a
Lender may also make available certain other bi-lateral facilities to the
Tranche D Borrowers in place of all or part of its Tranche D Commitment.

 

2.4          Nature of a Finance Party’s rights and
obligations

 

Unless otherwise agreed by all the Finance
Parties:

 

(a)           the obligations of a Finance
Party under the Finance Documents are several;

 

(b)           failure by a Finance Party to
perform its obligations does not affect the obligations of any other Party
under the Finance Documents;

 

(c)           no Finance Party is
responsible for the obligations of any other Finance Party under the Finance
Documents;

 

(d)           the rights of a Finance Party
under the Finance Documents are separate and independent rights;

 

(e)           a debt arising under the
Finance Documents to a Finance Party is a separate and independent debt; and

 

(f)            a Finance Party may, except as
otherwise stated in the Finance Documents, separately enforce those rights.

 

2.5          Appointment of Company as Obligors’ agent

 

Each Obligor (other than the Company) by
its execution of this Agreement or an Accession Agreement irrevocably appoints
the Company to act on its behalf as its agent in relation to the Finance
Documents and irrevocably authorises:

 

(a)           the Company on its behalf to
supply all information concerning itself contemplated by this Agreement to the
Finance Parties and to give and receive all notices and instructions
(including, in the case of a Borrower, Requests), to execute on its behalf any
Accession Agreement and to make such agreements capable of being given or made
by any Obligor (including, without limitation, any agreement (however
fundamental) amending, novating or varying any of the terms of any of the
Finance Documents and/or any related documents) notwithstanding that they may
affect such Obligor, without further reference to or the consent of such
Obligor; and

 

(b)           each Finance Party to give any
notice, demand or other communication to such Obligor pursuant to the Finance
Documents to the Company on its behalf, and in each case such Obligor shall be
bound thereby as though such Obligor itself had given such notices and
instructions (including, without limitation, any Requests) or 

 

21

 

executed or
made such agreements or received any such notice, demand or other
communication.

 

2.6          Company’s acts as Obligors’ agent binding

 

Every act, omission, agreement,
undertaking, settlement, waiver, notice or other communication given or made by
the Company or given to the Company as agent for the Obligors under the Finance
Documents, or in connection with the Finance Documents (whether or not known to
any other Obligor and whether occurring before or after such other Obligor
became an Obligor under this Agreement) shall be binding for all purposes on
all other Obligors as if the other Obligors had expressly made, given or
concurred with the same.  In the event
of any conflict between any notices or other communications of the Company and
any other Obligor, those of the Company shall prevail.

 

3.             PURPOSE

 

3.1          Term Loans

 

Each Term Loan shall be applied in or
towards refinancing the existing indebtedness of the Group and may be applied
in the financing of the Distribution.

 

3.2          Tranche D

 

Each Tranche D Loan and each Documentary
Credit may only be used for working capital and other general corporate
purposes of the Group.

 

3.3          No obligation to monitor

 

No Finance Party is bound to monitor or
verify the utilisation of a Facility.

 

4.             CONDITIONS PRECEDENT

 

4.1          Conditions precedent documents

 

The Lenders and the Fronting Bank shall not
be obliged to participate in any Loan or, as the case may be, issue any
Documentary Credit until the Facility Agent has notified the Company and the
Lenders that it has received all of the documents and evidence set out in Part
1 of Schedule 2 (Conditions precedent documents) in form and substance
satisfactory to the Facility Agent (acting reasonably) or has waived in writing
the requirement for any such document or evidence.  The Facility Agent must give this notification to the Company and
the Lenders promptly upon being so satisfied.

 

4.2          Further conditions precedent

 

The obligations of each Lender to
participate in any Credit are subject to the further conditions precedent that
on both the date of the Request and the Utilisation Date for that Credit:

 

(a)           the Repeating Representations
are correct in all material respects (or, in the case of a Rollover Credit, no
Event of Default has been declared in writing in relation to any such Repeating
Representation by the Facility Agent acting on the instructions of the Majority
Lenders which instructions also specify that a Rollover Credit is not to be
rolled over); and

 

22

 

(b)           no Default (or, in the case of
a Rollover Credit, no Event of Default which has been declared in writing by
the Facility Agent acting on the instructions of the Majority Lenders, which
instructions also specify that a Rollover Credit is not to be rolled over), is
outstanding or would result from the Credit.

 

4.3          Refinancing Reserve

 

A Tranche A Loan may not be drawn down if
that would result in the undrawn Tranche A Commitments being less than the
Refinancing Amount, unless that Tranche A Loan is being drawn down for the
purpose of repaying the ITI Loan Stock and/or the EIB Loan and after the
application of such Tranche A Loan the undrawn Tranche A Commitments will be
greater than or equal to the Refinancing Amount.

 

4.4          Tranche D

 

In addition to the other conditions in this
Agreement, Tranche D may not be utilised unless the Term Loan Commitments
(other than the Refinancing Reserve) have been (or will be upon first
utilisation of Tranche D) fully utilised.

 

4.5          Conditions Subsequent

 

The Company shall procure that within 30
days of the first Utilisation Date the Facility Agent is provided with evidence
(in form and substance satisfactory to the Facility Agent (acting reasonably))
that all of the Group’s insurance policies required by Clause 22.20 (Insurance)
are on risk together with confirmation that the interest of the Finance Parties
has been noted on the relevant policies (other than directors and other
officers policies).

 

4.6          Maximum number

 

Unless the Facility Agent agrees, a Request
may not be given if, as a result, there would be more than 15 Credits
outstanding.

 

5.             UTILISATION - LOANS

 

5.1          Giving of Requests

 

(a)           A Borrower may borrow a Loan by giving to the Facility
Agent a duly completed Request.

 

(b)           Unless the Facility Agent otherwise agrees, the latest
time for receipt by the Facility Agent of a duly completed Request is 10.00
a.m. (London time) one Business Day before the Rate Fixing Day for the proposed
borrowing.

 

(c)           Each Request is irrevocable.

 

5.2          Completion of Requests

 

A Request for a Loan will not be regarded
as having been duly completed unless:

 

(a)           it identifies the Borrower;

 

(b)           it identifies the Facility the
Loan applies to;

 

(c)           the Utilisation Date is a
Business Day falling within the Availability Period for that Loan;

 

23

 

(d)           if delivered in respect of a
Tranche D Loan, Tranche A (other than the Refinancing Reserve), Tranche B and
Tranche C have been, or on the same date as the date on which that Tranche D
Loan is drawn will be, drawn in full;

 

(e)           the amount of the Loan
requested is:

 

(i)            in relation to a Term Loan, a
minimum of €10,000,000 and an integral multiple of €5,000,000 (save in respect
of a Term Loan advanced out of the Refinancing Reserve, in which case such Term
Loan shall be in an amount equal to the outstanding principal amount of the EIB
Loan or, as the case may be, the ITI Loan Stock that is to be repaid by such
Term Loan) ;

 

(ii)           in relation to a Tranche D
Loan, a minimum of €10,000,000 and an integral multiple of €5,000,000;

 

(iii)          the maximum undrawn amount
available under this Agreement for Loans under the relevant Facility on the
proposed Utilisation Date; or

 

(iv)          such other amount as the
Facility Agent may agree; and

 

(f)            the proposed Term complies
with this Agreement.

 

Only one Loan may be requested in a
Request.

 

5.3          Advance of Loan

 

(a)           The Facility Agent must promptly notify each Lender of
the details of the requested Loan and the amount of its share in that Loan.

 

(b)           The amount of each Lender’s share of the Loan will be
its Pro Rata Share on the proposed Utilisation Date.

 

(c)           No Lender is obliged to participate in a Loan if as a
result:

 

(i)            its share in the Credits under a Facility would exceed
its Commitment for that Facility; or

 

(ii)           the Credits would exceed the Total Commitments.

 

(d)           If the conditions set out in this Agreement have been
met, each Lender must make its share in the Loan available to the Facility
Agent for the relevant Borrower on the Utilisation Date.

 

6.             UTILISATION -
DOCUMENTARY CREDITS

 

6.1          Giving of Requests

 

(a)           A Borrower may request a Documentary Credit to be
issued by giving to the Facility Agent a duly completed Request.

 

(b)           Unless the Facility Agent otherwise agrees, the latest
time for receipt by the Facility Agent of a duly completed Request is 10.00
a.m. (London time) three Business Days before the proposed Utilisation Date.

 

(c)           Each Request is irrevocable.

 

24

 

6.2          Completion of Requests

 

A Request for a Documentary Credit will not
be regarded as being duly completed unless:

 

(a)           it identifies the Borrower;

 

(b)           it identifies the Beneficiary
by name and address;

 

(c)           it specifies that it is for a
Documentary Credit;

 

(d)           the Utilisation Date is a
Business Day falling within the Availability Period for that Documentary
Credit;

 

(e)           the amount of the Documentary
Credit requested is:

 

(i)            a minimum of €2,000,000;

 

(ii)           the maximum undrawn amount
available under this Agreement for Documentary Credits on the proposed
Utilisation Date; or

 

(iii)          such other amount as the
Facility Agent may agree;

 

(f)            the proposed beneficiary is a
bank approved by the Facility Agent (acting reasonably) or any other
beneficiary approved by the Majority Lenders (acting reasonably);

 

(g)           the form of Documentary Credit
is attached and has been approved by the Fronting Bank;

 

(h)           the expiry date of the
Documentary Credit falls on or before the Tranche D Final Maturity Date;

 

(i)            the delivery instructions for
the Documentary Credit are specified; and

 

(j)            the Borrower making
such Request shall represent and warrant to each Finance Party that the
conditions set forth in the immediately succeeding paragraph will be met.

 

The Fronting Bank is not obliged to issue a
Documentary Credit if to do so would in the opinion of the Fronting Bank result
in it being in breach or violation of the Irish Insurance Act, 1936 or the EC
(Non-Life Insurance) Regulations, 1976, save that in such circumstances the
Fronting Bank must, in consultation with the Company, use its reasonable
endeavours to remedy or avoid such breach by completing any necessary
procedural formalities, provided that the Fronting Bank is not obliged to take
any step under this Subclause if, in the opinion of the Fronting Bank (acting
reasonably), to do so might be prejudicial to it.

 

Only one Documentary Credit may be
requested in a Request.

 

6.3          Issue of Documentary Credit

 

(a)           The Facility Agent must promptly notify the Fronting
Bank and each Lender of the details of the requested Documentary Credit and the
amount of its share of that Documentary Credit.

 

(b)           The amount of each Lender’s share in a Documentary
Credit will be its Pro Rata Share on the proposed Utilisation Date.

 

25

 

(c)           The Fronting Bank is not obliged to issue any
Documentary Credit if as a result:

 

(i)            a Lender’s share in the Credits under the
Tranche D Facility would exceed its Tranche D Commitment; or

 

(ii)           the Credits would exceed the Total Tranche D
Commitments.

 

(d)           If the conditions set out in this Agreement have been
met, the Fronting Bank must issue the Documentary Credit on the Utilisation
Date.

 

7.             DOCUMENTARY CREDITS

 

7.1          General

 

(a)           A Documentary Credit is repaid or prepaid
if:

 

(i)            a Borrower provides cash cover for that Documentary
Credit;

 

(ii)           the maximum amount payable under the Documentary
Credit is reduced in accordance with its terms; or

 

(iii)          the Fronting Bank is satisfied (acting reasonably)
that it has no further liability under that Documentary Credit.

 

The amount by which a Documentary Credit is
repaid or prepaid under sub-paragraphs (i) and (ii) above is the amount of the
relevant cash cover or reduction.

 

(b)           If a Documentary Credit or any amount outstanding
under a Documentary Credit is expressed to be immediately payable, the Borrower
that requested the issue of that Documentary Credit must repay or prepay that
amount immediately.

 

(c)           Cash cover is provided for a Documentary
Credit if the relevant Borrower pays an amount in the currency of the
Documentary Credit to an interest-bearing account with a Finance Party in
London in the name of the Borrower and the following conditions are met:

 

(i)            the account is with the Facility Agent (if, subject as
provided below, the cash cover is to be provided for all the Lenders) or with a
Lender (if the cash cover is to be provided for that Lender);

 

(ii)           until no amount is or may be outstanding under that
Documentary Credit, withdrawals from the account may only be made to pay a
Finance Party amounts due and payable to it under that Documentary Credit or
this Clause; and

 

(iii)          the Borrower has executed a security document over
that account, in form and substance satisfactory to the Facility Agent or the
relevant Lender, creating a first ranking security interest over that account.

 

Where cash cover is to be provided to all
the Lenders, a Lender may require its portion of the cash cover to be paid into
its account instead of an account with the Facility Agent.

 

(d)           The outstanding or principal amount of a
Documentary Credit at any time is the maximum amount that is or may be payable
by the relevant Borrower in respect of that Documentary Credit at that time.

 

26

 

7.2          Claims under a Documentary Credit

 

(a)           Each Borrower irrevocably and unconditionally
authorises the Fronting Bank to pay any claim made or purported to be made
under a Documentary Credit requested by it and which appears on its face to be
in order (a claim).

 

(b)           Each Borrower must immediately on demand pay to the
Facility Agent for the Fronting Bank an amount equal to the amount of any
claim.

 

(c)           Each Borrower acknowledges that the Fronting Bank:

 

(i)            is not obliged to carry out any investigation or seek
any confirmation from any other person before paying a claim; and

 

(ii)           deals in documents only and will not be concerned with
the legality of a claim or any underlying transaction or any available set-off,
counterclaim or other defence of any person.

 

(d)           The obligations of a Borrower under this Clause will
not be affected by:

 

(i)            the sufficiency, accuracy or genuineness of any claim
or any other document; or

 

(ii)           any incapacity of, or limitation on the powers of, any
person signing a claim or other document.

 

7.3          No Event of Default

 

The making by a Beneficiary of a claim
under a Documentary Credit shall not of itself constitute an Event of Default
for the purpose of this Agreement.

 

7.4          Indemnities

 

(a)           A Borrower must on demand indemnify the Fronting Bank
against any loss or liability which the Fronting Bank incurs under or in
connection with any Documentary Credit requested by it, except to the extent
that the loss or liability is directly caused by the gross negligence or wilful
misconduct of the Fronting Bank.

 

(b)           Each Lender must promptly on demand indemnify the
Fronting Bank against its share of any loss or liability which the Fronting
Bank incurs under or in connection with any Documentary Credit and which has
not been paid for by an Obligor, except to the extent that the loss or
liability is directly caused by the gross negligence or wilful misconduct of
the Fronting Bank.

 

(c)           A Lender’s share of the liability or loss referred to
in sub-paragraph (b) above will be its Pro Rata Share on the Utilisation Date,
adjusted to reflect any subsequent assignment or transfer under this Agreement.

 

(d)           The relevant Borrower must immediately on demand
reimburse any Lender for any payment it makes to the Fronting Bank under this
Subclause.

 

(e)           The obligations of each Lender under this Clause are
continuing obligations and will extend to the ultimate balance of all sums
payable by that Lender under or in connection with any Documentary Credit,
regardless of any intermediate payment or discharge in whole or in part.

 

27

 

(f)            The obligations of any Lender under this Clause will
not be affected by any act, omission or thing which, but for this provision,
would reduce, release or prejudice any of its obligations under this Clause
(whether or not known to it or any other person).  This includes:

 

(i)            any time or waiver granted to, or composition with,
any person;

 

(ii)           any release of any person under the terms of any
composition or arrangement;

 

(iii)          the taking, variation, compromise, exchange, renewal
or release of, or refusal or neglect to perfect, take up or enforce, any rights
against, or security over assets of, any person;

 

(iv)          any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to
realise the full value of any security;

 

(v)           any incapacity or lack of power, authority or legal
personality of or dissolution or change in the members or status of any person;

 

(vi)          any amendment (however fundamental) of a Finance
Document or any other document or security;

 

(vii)         any unenforceability, illegality or invalidity of any
obligation of any person under any Finance Document or any other document or security;
or

 

(viii)        any insolvency or similar proceedings.

 

7.5          Rights of contribution

 

No Borrower will be entitled to any right
of contribution or indemnity from any Finance Party in respect of any payment
it may make under this Clause.

 

8.             ANCILLARY FACILITIES

 

8.1          General

 

In this Clause:

 

Ancillary Commitment means the maximum amount of
Ancillary Outstandings that can be incurred under the relevant Ancillary
Facility Document.

 

Ancillary Facility means any facility or
financial accommodation required in connection with the business of the Group
and established under this Clause.  This
may include any overdraft, foreign exchange or guarantee or banking facility.

 

Ancillary Lender means a Lender which becomes
an Ancillary Lender under this Clause.

 

Ancillary Outstandings means the principal amount
outstanding under an Ancillary Facility, as calculated under the Ancillary
Facility Document(s) for that Ancillary Facility.

 

8.2          Availability

 

(a)           If the Company and a Lender agree and subject as
provided below, the Lender may provide an Ancillary Facility on a bi-lateral
basis to a Borrower in place of all or part of that Lender’s Tranche D
Commitment.

 

28

 

(b)           An Ancillary Facility may not be made available unless
the Facility Agent (acting reasonably) has first approved it.

 

(c)           If the Facility Agent approves an Ancillary Facility,
then:

 

(i)            the Lender concerned will become an Ancillary Lender;
and

 

(ii)           the Ancillary Facility will be available,

 

with effect from the date agreed by the
Company and the Ancillary Lender.

 

(d)           The Facility Agent must promptly notify the other
Lenders.

 

8.3          Approval process

 

The Facility Agent will not approve an
Ancillary Facility, unless it has received:

 

(a)           a notice specifying:

 

(i)            the Tranche D Borrowers which
may use the Ancillary Facility;

 

(ii)           the start and expiry dates of
the Ancillary Facility;

 

(iii)          the type of Ancillary Facility
being provided;

 

(iv)          the Ancillary Lender; and

 

(v)           the applicable Ancillary
Commitment;

 

(b)           a copy of the Ancillary
Facility Document; and

 

(c)           any other information which
the Facility Agent may reasonably require in connection with the Ancillary
Facility.

 

8.4          Terms of Ancillary Facilities

 

(a)           Except as provided below, the terms of any Ancillary
Facility will be those agreed by the Ancillary Lender and the Company.

 

(b)           However, those terms:

 

(i)            must be based upon normal commercial terms at that
time;

 

(ii)           may only allow Tranche D Borrowers to use the
Ancillary Facility;

 

(iii)          may not allow the Ancillary Outstandings to exceed the
Ancillary Commitment;

 

(iv)          may not allow the Ancillary Commitment of a Lender to
exceed the Tranche D Commitment of that Lender; and

 

(v)           must ensure that the Ancillary Commitment is reduced
to nil, and that all Ancillary Outstandings are repaid or cash-collateralised
in full, not later than the Tranche D Final Maturity Date.

 

(c)           Any document providing for an Ancillary Facility is an
Ancillary Facility Document.

 

29

 

8.5          Tranche D Commitment

 

For the purposes of:

 

(a)           calculating commitment fee;
and

 

(b)           calculating the amount of a
Lender’s share in a Credit under the Tranche D Facility:

 

(i)            the Tranche D Commitment
of a Lender will be reduced by the amount of its Ancillary Commitment in force
at that time; and

 

(ii)           the Tranche D Commitment
of a Lender will be increased by the cancelled amount of its Ancillary
Commitment at the time of cancellation.

 

8.6          Refinancing of Ancillary Facility

 

(a)           No Ancillary Lender may demand repayment or prepayment
of any amounts or demand cash cover for any liabilities made available or
incurred by it under its Ancillary Facility, unless:

 

(i)            the Total Tranche D Commitments have been
cancelled in full, or the Facility Agent has declared all outstanding Credit
under the Tranche D Facility immediately due and payable; or

 

(ii)           the Ancillary Outstandings under that Ancillary
Facility can be refinanced by a Tranche D Loan.

 

(b)           For the purposes of determining whether or not a
Tranche D Loan can be used for this purpose:

 

(i)            the Tranche D Commitment of the Ancillary Bank
will be increased by the amount of the Ancillary Outstandings; and

 

(ii)           the Tranche D Loan may be borrowed irrespective
of whether a Default is outstanding or any other applicable condition precedent
not satisfied.

 

8.7          Information

 

Each Obligor and each Ancillary Lender
must, promptly following a written request by the Facility Agent, supply the
Facility Agent with any information relating to the operation of an Ancillary
Facility (including the Ancillary Outstandings) as the Facility Agent may
reasonably request.

 

9.             REPAYMENT

 

9.1          Repayment of Tranche A Loans

 

Each Borrower must repay the Tranche A
Loans made to it by instalments in accordance with the following schedule.  Each Repayment Instalment shall be paid on
the Repayment Dates indicated below and shall be in an aggregate amount equal
to the percentage of Tranche A Loans outstanding on the Refinancing Reserve
Availability Date set opposite the relevant Repayment Date below.  The final Repayment Instalment shall be paid
on the Tranche A Final Maturity Date and shall comprise all the Tranche A Loans
then outstanding.

 

30

 

	
  Repayment Date

  	
   

  	
  Repayment
  Instalment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  eighteen months after the date of this Agreement

  	
   

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  twenty-four months after the date of this Agreement

  	
   

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  thirty months after the date of this Agreement

  	
   

  	
  6.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  thirty-six months after the date of this Agreement

  	
   

  	
  6.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  forty-two months after the date of this Agreement

  	
   

  	
  8.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  forty-eight months after the date of this Agreement

  	
   

  	
  8.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  fifty-four months after the date of this Agreement

  	
   

  	
  10.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  sixty months after the date of this Agreement

  	
   

  	
  10.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  sixty-six months after the date of this Agreement

  	
   

  	
  11.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  seventy-two months after the date of this Agreement

  	
   

  	
  11.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Date falling
  seventy-eight months after the date of this Agreement

  	
   

  	
  12.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Tranche A
  Final Maturity Date

  	
   

  	
  12.50

  	
  %

  

 

9.2          Repayment of Tranche B Loans

 

Each Borrower must repay the Tranche B
Loans made to it in full on the Tranche B Final Maturity Date.

 

9.3          Repayment of Tranche C Loans

 

Each Borrower must repay the Tranche C
Loans made to it in full on the Tranche C Final Maturity Date.

 

9.4          Repayment of Tranche D Loans

 

(a)           Each Borrower must repay each Tranche D Loan made
to it in full on its Maturity Date.  No
Tranche D Loan may be outstanding after the Tranche D Final Maturity Date.

 

(b)           Subject to the other terms of this Agreement, any
amounts repaid under paragraph (a) above may be re-borrowed and any Rollover
Credit shall be netted off against the amount to be repaid so that only the net
amount of cash owed as between the parties shall be paid.

 

9.5          Repayment of Documentary Credits

 

(a)           Each Borrower must repay each Documentary Credit
issued on its behalf in full on its Maturity Date.

 

31

 

(b)           Subject to the other terms of this Agreement, any
amounts repaid under paragraph (a) above may be re-utilised.

 

10.          PREPAYMENT AND CANCELLATION

 

10.1        Interpretation

 

In this Agreement:

 

Insurance Proceeds means any amount received or
recovered (following a claim) by a person under any insurance policy for loss
or damage to its assets or business other than in respect of third party
liability.

 

Issue has the meaning given to that
term in Clause 10.6 (Mandatory Prepayment - debt and equity issues).

 

Net Proceeds means:

 

(a)           in respect of an Issue, the consideration
received by the Company and its Subsidiaries or by any Holding Company of the
Company in respect of that Issue; and

 

(b)           in respect of a disposal, the consideration
received in cash or Cash Equivalents (or other instruments which upon receipt
are readily convertible into cash on reasonable commercial terms) by any member
or members of the Group in respect of the disposal to any person who is not a
member of the Group of all or any part of its business, undertaking or assets
(including the amount of any intercompany debt repaid to continuing members of
the Group),

 

in each case net of all taxes applicable
on, or to any gain resulting from (or incurred in connection with the
upstreaming of the consideration received from), the Issue or disposal and net
of all reasonable third party costs, fees or expenses incurred by continuing
members of the Group in arranging and effecting that Issue or disposal).

 

Permitted Purpose means:

 

(a)           Capital Expenditure in the business of the
Group; and/or

 

(b)           the financing of redundancy costs payable
to employees and/or former employees of the Group.

 

10.2        Mandatory prepayment - illegality

 

(a)           A Lender must notify the Company promptly if it
becomes aware that it is unlawful in any jurisdiction for that Lender to
perform any of its obligations under a Finance Document or to fund or maintain
its share in any Credit.

 

(b)           After notification under paragraph (a) above:

 

(i)            each Borrower must repay or prepay the share of that
Lender in each Credit utilised by it on the date specified in paragraph (c)
below; and

 

(ii)           the Commitments of that Lender will be immediately
cancelled.

 

(c)           The date for repayment or prepayment of a Lender’s
share in a Credit will be:

 

32

 

(i)            the Business Day following receipt by the Company of
notice from the Lender under paragraph (a) above; or

 

(ii)           if later, the latest date allowed by the relevant law.

 

10.3        Mandatory prepayment - change of control

 

(a)           If:

 

(i)            during the period prior to a Permitted Exit, the
Original Investors (other than the ESOT) (and/or their respective Affiliates,
limited partnerships or vehicles or funds which are under their respective
control) cease to own or control (directly or indirectly) at least 50.1 per
cent. of the issued voting share capital of the Company (excluding any shares
issued upon the exercise of Management Options or pursuant to the Management
Incentive Scheme not exceeding 10 per cent. of such capital); or

 

(ii)           at any time, any person or group of persons acting in
concert (and/or their Affiliates, limited partnerships or vehicles or funds
which are under their control) (other than any of the Original Investors and/or
their respective Affiliates, limited partnerships or vehicles or funds which
are under their respective control) owns or controls (directly or indirectly)
more than 25 per cent. of the issued voting share capital of the Company,

 

then, if the Majority Lenders so require,
the Facility Agent must, by notice to the Company:

 

(iii)          cancel the Total Commitments; and

 

(iv)          declare all outstanding Credits, together with accrued
interest and all other amounts accrued under the Finance Documents, to be
immediately due and payable.

 

Any such notice will take effect in
accordance with its terms.

 

(b)           In paragraph (a) above:

 

control means the power to direct the
management and policies of the relevant person, whether through the ownership
of voting capital, by contract or in any other way recognised by law; and

 

acting in concert means acting together
pursuant to an agreement or understanding (whether formal or informal).

 

10.4        Mandatory prepayment – disposals and
Insurance Proceeds

 

(a)           Upon the sale of all or substantially all of the
assets or business of the Group, all of the Commitments shall be cancelled and
the Company shall procure that all of the Credits are prepaid in full forthwith
in accordance with this Clause 10.

 

(b)           Upon the receipt of the Net Proceeds of any disposal
of any of the assets, business or undertaking of any member of the Group or
receipt by a member of the Group of any Insurance Proceeds, the Company shall
apply, or shall procure that there is applied, an amount equal to the Net
Proceeds of such disposal, or an amount equal to the Insurance Proceeds, as the
case may be, in or towards prepayment of the Credits in accordance with this
Clause, provided that the foregoing shall not apply where:

 

33

 

(i)            in the case of a disposal:

 

(A)          the Net Proceeds of such disposal, when taken together
with the consideration for any related disposals, amount to less than €5,000,000;
or

 

(B)           the Net Proceeds of disposal are reinvested in a
Permitted Purpose within 12 months of the date of disposal or, if later, of the
date of receipt of the relevant Net Proceeds, or are committed to be reinvested
in a Permitted Purpose within 12 months of the date of disposal and are so
reinvested within 18 months of such date or, if later, of the date of receipt
of the relevant Net Proceeds; or

 

(C)           the disposal is of a trading asset and the disposal is
made in the ordinary course of business; or

 

(D)          the disposal is permitted by Clause 22.6(b)(i), (vi)
or (xii); or

 

(ii)           in the case of the receipt of Insurance Proceeds:

 

(A)          the Insurance Proceeds are used or committed to be
used to repair or replace the assets which were the subject of the claim with
substantially similar or updated assets or are used or committed to be used to
remedy the cause of the claim which resulted in the Insurance Proceeds or (in
the case of Insurance Proceeds in respect of business interruption or loss of
profits) are reinvested in the business of the Group within six months of
receipt of the Insurance Proceeds and, where such Insurance Proceeds are
committed to be used within such six month period, are so used within 12 months
of such receipt; or

 

(B)           the Insurance Proceeds received are in an aggregate
amount of less than €2,500,000 in each financial year.

 

(c)           Subject to Clause 10.7 (Payment into a blocked
account), any prepayment under this Subclause must be made on or before the
last day of the Term(s) of the Credit(s) to be prepaid current at the time the
relevant Net Proceeds were received or recovered.

 

10.5        Mandatory prepayment - excess cashflow

 

(a)           In this Subclause:

 

Consolidated Cashflow and Consolidated Total Debt Service
have the meanings given to them in Clause 21 (Financial Covenants); and

 

Excess Cashflow means, for any financial year
of the Company, Consolidated Cashflow, less:

 

(i)            Consolidated Total Debt Service;

 

(ii)           any exceptional costs payable by the Group during that
Measurement Period in respect of the settlement of asbestos claims to the
extent that such amounts are shown, and covered by a provision, in the Original
Financial Statements;

 

34

 

(iii)          any exceptional costs payable by the Group during that
Measurement Period in respect of tax audit settlements to the extent that such
amounts are shown, and covered by a provision, in the Original Financial
Statements;

 

(iv)          the aggregate net cash amount payable by the Group
during that Measurement Period in respect of temporary income stream payments
in respect of pension deficit provision to the extent that such amounts are
shown, and covered by a provision, in the Original Financial Statements;

 

(v)           the Net Proceeds of any disposal to the extent the
same are (A) included in Consolidated Cashflow for the relevant financial year;
and (B) able to be reinvested in accordance with Clause 10.4(b)(i)(B); and

 

(vi)          any Insurance Proceeds to the extent the same are (A)
included in Consolidated Cashflow for the relevant financial year; and (B) able
to be used for repair, replacement or re-investment accordance with Clause
10.4(b)(ii)(A).

 

Relevant Percentage means:

 

(a)           33 per cent, in respect of any financial
year where:

 

(i)            the ratio of Consolidated Net Total
Borrowings of the Group to Consolidated Adjusted EBITDA (calculated in
accordance with Clause 21.3) for the Measurement Period ending on the last day
of that financial year is 2.5:1 or less; and

 

(ii)           the sum of (A) the drawn and undrawn Total
Commitments and (B) the drawn and undrawn Ancillary Commitments (as defined in
Clause 8.1) on the last day of that financial year are €550,000,000 or less; or

 

(b)           50 per cent, in respect of any other
financial year.

 

(b)           If the annual consolidated financial statements of the
Company reveal Excess Cashflow, the Company must apply an amount equal to the
Relevant Percentage of Excess Cashflow towards prepaying the Credits in
accordance with this Clause 10.

 

(c)           Any prepayment under this Subclause must be made on or
before the last day of the then current Term(s) of the Credits in which the
annual audited consolidated accounts of the Company establishing that there has
been Excess Cash Flow are delivered to the Facility Agent.

 

(d)           No prepayment is required under this Subclause in
respect of the financial year of the Company ending on 31st March, 2004.

 

10.6        Mandatory Prepayment - debt and equity
issues

 

(a)           Upon:

 

(i)            any initial public offering, listing, public offering
or flotation of any shares or equity securities by the Company or any Holding
Company of the Company (other than an Original Investor and excluding any
initial public offering, listing or flotation of ESOT Preference Shares to
facilitate the distribution of ESOT Preference Shares to the beneficiaries of the
ESOT) (an Equity
Issue); or

 

35

 

(ii)           the issue of any bonds, notes or other debt securities
by any member of the Group (other than the High Yield Notes or any Investor
Debt) (a Debt
Issue),

 

(each an Issue), the Company shall
ensure that an amount equal to the Relevant Proportion of the Net Proceeds of
such Issue received by the relevant member of the Group or, as the case may be,
such Holding Company shall be applied firstly in prepayment of Credits in accordance
with this Clause.

 

(b)           For the purpose of this Subclause, Relevant
Proportion means:

 

(i)            in the case of an Equity Issue, 50 per cent; and

 

(ii)           in the case of a Debt Issue, 100 per cent.

 

(c)           Subject to Clause 10.7 (Payment into a blocked account),
any prepayment under this subclause must be made on or before the last day of
the Term of the Credit to be prepaid in which the Net Proceeds of the relevant
Issue are received by the relevant company.

 

10.7        Payment into a blocked account

 

(a)           In this Clause blocked account means an interest bearing
blocked account in the name of the Company with the Facility Agent.

 

(b)           When it is established that the Company will be
required to prepay Credits on the last day of the current Term(s) for those
Credits, the Company must:

 

(i)            within 10 Business Days of receipt of the relevant Net
Proceeds or, as the case may be, the date on which it is established that the
relevant Net Proceeds are not to be applied in reinvestment in a Permitted
Purpose; or

 

(ii)           within 10 Business Days of, as the case may be:

 

(A)          receipt of the relevant Insurance Proceeds;

 

(B)           the date on which it is established that the relevant
Insurance Proceeds are not to be applied to repair or replace the assets the
subject of the claim;

 

(C)           the date on which it is established that the relevant
Insurance Proceeds are not to be applied to remedy the cause of the claim
resulting Insurance Proceeds; or

 

(D)          (in the case of Insurance Proceeds in respect of
business interruption or loss of profit), the date on which it is established
that the relevant Insurance Proceeds are not to be reinvested in the business
of the Group,

 

ensure that an amount equal to the amounts to be
repaid is deposited in the blocked account.

 

(c)           The Company irrevocably authorises the Facility Agent
to apply any amount deposited with it under paragraph (b) towards prepayment of
the Credits on the last day of the relevant Term(s) or earlier if the Company
so directs.

 

(d)           Amounts standing to the credit of a blocked account
may only be used to repay or prepay Credits or any other amounts outstanding
under the Finance Documents.

 

36

 

10.8        Voluntary prepayment

 

(a)           The Company may, by giving not less than five Business
Days’ prior notice to the Facility Agent, prepay (or ensure that a Borrower
prepays) any Credit at any time in whole or in part and, subject to Clause
10.12(e) (Application between Term Facilities and Tranche D Facility), such
prepayment shall be applied in prepayment of such Credits determined by the
Company at its discretion.

 

(b)           A prepayment of part of a Credit in respect of a Loan
must be in a minimum amount of €10,000,000 and an integral multiple of
€5,000,000.

 

10.9        Automatic cancellation

 

(a)           Any Term Loan Commitments of each Lender (other than
an amount of each Lender’s Tranche A Commitments equal to the Pro Rata Share of
the Refinancing Amount on the Term Loan Availability Date) which have not been
utilised on or before the Term Loan Availability Date shall be automatically
cancelled on that date.

 

(b)           The Tranche A Commitments of each Lender which have
not been utilised on the Refinancing Reserve Availability Date shall be
automatically cancelled on that date.

 

(c)           The Tranche D Commitments of each Lender will be automatically
cancelled at the close of business on the Tranche D Availability Date.

 

10.10      Voluntary cancellation

 

(a)           The Company may, by giving not less than five Business
Days’ prior notice to the Facility Agent, cancel the unutilised amount of the
Tranche A Commitments, the Tranche B Commitments, the Tranche C Commitments or
the Tranche D Commitments in whole or in part.

 

(b)           Partial cancellation of the Tranche A Commitments, the
Tranche B Commitments, the Tranche C Commitments or the Tranche D Commitments
must be in a minimum amount of €10,000,000 and an integral multiple of
€5,000,000.

 

(c)           Any cancellation in part will be applied against the
relevant Commitment of each Lender participating in the relevant Tranche pro
rata.

 

10.11      Involuntary prepayment and cancellation

 

(a)           If an Obligor is, or will be, required to pay to a
Lender a Tax Payment or an Increased Cost, the Company may, while the
requirement continues, give notice to the Facility Agent requesting prepayment
and cancellation in respect of that Lender.

 

(b)           After notification under paragraph (a) above:

 

(i)            each Borrower must repay or prepay that Lender’s share
in each Credit utilised by it on the date specified in paragraph (c) below; and

 

(ii)           the Commitments of that Lender will be immediately
cancelled.

 

(c)           The date for repayment or prepayment of a Lender’s
share in a Credit will be the last day of the current Term for that Credit or,
if earlier, the date specified by the Company in its notification.

 

37

 

10.12      Application between Term Facilities and
Tranche D Facility

 

(a)           Any amount to be applied in mandatory prepayment of
the Credits must be applied:

 

(i)            first, in prepayment of the Term Loans;

 

(ii)           secondly, in prepayment of the Tranche D Loans; and

 

(iii)          thirdly, in prepayment of any Documentary Credit.

 

(b)           Where there is a mandatory or involuntary prepayment
of a Tranche D Loan or a Documentary Credit, the Tranche D Commitments will, at
the same time, be reduced by the same amount.

 

(c)           If a prepayment is required to be made in respect of
Tranche D at a time when no Tranche D Loan or Documentary Credit is
outstanding, the Tranche D Commitments will be reduced by the relevant amount,
notwithstanding that no Tranche D Loan or Documentary Credit is prepaid.

 

(d)           Any partial mandatory prepayment of the Term Loans
will be applied against each Term Loan Facility pro rata and, subject to (e)
below, each partial voluntary or mandatory prepayment of a Term Loan Facility
will be applied against the Term Loans comprised in each Facility pro rata.

 

(e)           A Lender with participations in an outstanding Tranche
B Loan or a Tranche C Loan may elect to refuse partial voluntary or mandatory
prepayment of such Loans if, at the time of such proposed prepayment, a Tranche
A Loan remains outstanding, in which case the declined prepayment shall instead
be applied against Tranche A in accordance with paragraph (f) below.

 

(f)            Any amount applied in prepayment of Tranche A will be
applied against the Repayment Instalments pro rata, provided that the Borrower
may elect to:

 

(i)            apply 50 per cent. of any such amount in chronological
order against the first two Repayment Instalments which will become due after
the date of prepayment; or

 

(ii)           (in the case of a voluntary prepayment) apply any such
amount in chronological order against the first four Repayment Instalments
which will become due after the date of prepayment.

 

(g)           No amount of a Term Loan prepaid under this Agreement
may subsequently be re-borrowed.

 

10.13      Re-borrowing of Tranche D Loans

 

Any Tranche D Loan which is voluntarily
prepaid in whole or part may be re-borrowed on the terms of this Agreement.

 

10.14      Miscellaneous provisions

 

(a)           Any notice of prepayment and/or cancellation under
this Agreement is irrevocable and must specify the relevant date(s) and the
affected Credits and Commitments.  The
Facility Agent must notify the Lenders promptly of receipt of any such notice.

 

38

 

(b)           All prepayments under this Agreement must be made with
accrued interest on the amount prepaid. 
No premium or penalty is payable in respect of any prepayment except for
Break Costs.

 

(c)           The Majority Lenders may agree a shorter notice period
for a voluntary prepayment or a voluntary cancellation.

 

(d)           No prepayment or cancellation is allowed except in
accordance with the express terms of this Agreement.

 

(e)           No amount of the Total Commitments cancelled under
this Agreement may subsequently be reinstated.

 

11.          INTEREST

 

11.1        Calculation of interest

 

The rate of interest on each Loan for each
Term is the percentage rate per annum equal to the aggregate of the applicable:

 

(a)           Margin;

 

(b)           EURIBOR; and

 

(c)           Mandatory Cost.

 

11.2        Payment of interest

 

Except where it is provided to the contrary
in this Agreement, each Borrower must pay accrued interest on each Loan made to
it on the last day of each Term and also, if the Term is longer than six
months, on the dates falling at six-monthly intervals after the first day of
that Term.

 

11.3        Margin adjustments

 

(a)           In this Subclause:

 

Consolidated Net Total
Borrowings, Consolidated
Adjusted EBITDA and Quarter Date have the meanings given to
them in Clause 21.1 (Financial covenants).

 

Margin Certificate is a certificate,
substantially in the form of Schedule 7 (Form of Compliance Certificate),
setting out the ratio of Consolidated Net Total Borrowings and Consolidated
Adjusted EBITDA (calculated in accordance with Clause 21.3) as at a Quarter
Date.

 

(b)           The Company must supply to the Facility Agent a Margin
Certificate within 45 days of each Quarter Date, beginning with the first
Quarter Date to fall after the first anniversary of the date of this Agreement.

 

(c)           A Margin Certificate must be signed by two authorised
signatories of the Company.

 

(d)           Subject to paragraph (e) below, after the first
anniversary of the date of this Agreement the Margin for Tranche A and Tranche
D will be calculated by reference to the table below and the information set
out in the relevant Margin Certificate:

 

39

 

	
  Column 1

  Ratio of Consolidated Net Total Borrowings

  to Consolidated Adjusted EBITDA

  	
   

  	
  Column 2

  Margin

  	
   

  
	
   

  	
   

  	
  (per cent. per annum)

  	
   

  
	
   

  	
   

  	
  Tranche A Facility

  	
   

  	
  Tranche D Facility

  	
   

  
	
  >4.00:1

  	
   

  	
  2.250

  	
   

  	
  2.250

  	
   

  
	
  <4.00:1 - >3.50:1

  	
   

  	
  2.125

  	
   

  	
  2.125

  	
   

  
	
  <3.50:1 - >3.25:1

  	
   

  	
  2.000

  	
   

  	
  2.000

  	
   

  
	
  <3.25:1 - >3.00.1

  	
   

  	
  1.875

  	
   

  	
  1.875

  	
   

  
	
  <3.00:1 - >2.75:1

  	
   

  	
  1.750

  	
   

  	
  1.750

  	
   

  
	
  <2.75:1

  	
   

  	
  1.50

  	
   

  	
  1.50

  	
   

  

 

(e)           Any adjustment to the Margin pursuant to paragraph (d)
above shall be effective from the date falling 5 Business Days after the date
of delivery of the relevant Margin Certificate and applicable accounts.

 

(f)            For so long as:

 

(i)            the Company is in default of
its obligation under this agreement to provide a Margin Certificate; or

 

(ii)           an Event of Default is
outstanding,

 

the Margin for Tranche A and Tranche D will
be the highest applicable rate, provided that once the Company has provided the
outstanding Margin Certificate or the Event of Default is no longer outstanding
(as the case may be), the Margin for Tranche A and Tranche D shall revert to
the applicable Margin calculated in accordance with Clause 11.3(d).

 

(g)           If the Margin has been reduced under this Subclause in
reliance on a Margin Certificate but the subsequent audited financial
statements of the Company do not confirm the reduction, the reduction will be
reversed with retrospective effect.  The
Margin will instead be that calculated by reference to the relevant financial
statements of the Company.  If, in this
event, any amount of interest has been paid by a Borrower on the basis of the
Margin Certificate, that Borrower must immediately pay to the Facility Agent
any shortfall in the amount which would have been paid to the Lenders if the
Margin had been calculated by reference to the relevant financial statements.

 

11.4        Interest on overdue amounts

 

(a)           If an Obligor fails to pay any amount payable by it
under the Finance Documents, it must immediately on demand by the Facility
Agent pay interest on the overdue amount from its due date up to the date of
actual payment, both before, on and after judgment.

 

(b)           Interest on an overdue amount is payable at a rate
determined by the Facility Agent to be one per cent. per annum above the rate
which would have been payable if the overdue amount had, during the period of
non-payment, constituted a Loan.  For
this purpose, the Facility Agent may (acting reasonably):

 

40

 

(i)            select successive Terms of any duration of up to three
months; and

 

(ii)           determine the appropriate Rate Fixing Day for that
Term.

 

(c)           Notwithstanding paragraph (b) above, if the overdue
amount is a principal amount of a Loan and becomes due and payable prior to the
last day of its current Term, then:

 

(i)            the first Term for that overdue amount will be the
unexpired portion of that Term; and

 

(ii)           the rate of interest on the overdue amount for that
first Term will be one per cent. per annum above the rate then payable on that
Loan.

 

After the expiry of the first Term for that
overdue amount, the rate on the overdue amount will be calculated in accordance
with paragraph (b) above.

 

(d)           Interest (if unpaid) on an overdue amount will be
compounded with that overdue amount at the end of each of its Terms but will
remain immediately due and payable.

 

11.5        Bank basis

 

Interest shall accrue from day to day, and
be computed on the basis of a year of 360 days and the actual number of days
elapsed.

 

11.6        Notification of rates of interest

 

The Facility Agent must promptly notify
each relevant Party of the determination of a rate of interest under this
Agreement.

 

12.          TERMS

 

12.1        Selection - Term Loans

 

(a)           Each Term Loan has successive Terms.

 

(b)           Each Term for a Term Loan will start on its
Utilisation Date or on the expiry of its preceding Term.

 

(c)           A Borrower must select each subsequent Term in an
irrevocable notice received by the Facility Agent not later than 10.00 a.m.
(London time) on the Rate Fixing Day for that Term.

 

(d)           If a Borrower fails to select a Term for an
outstanding Term Loan under paragraph (c) above, that Term will, subject to the
other provisions of this Clause, be three months.

 

(e)           Subject to the following provisions of this Clause,
each Term for a Term Loan will be one, two, three or six months or any other
period agreed by the Company and the Facility Agent (acting on the instructions
of all the Lenders).

 

12.2        Selection - Tranche D Loans

 

(a)           Each Tranche D Loan has one Term only.

 

(b)           A Borrower must select the Term for a Tranche D Loan
in the relevant Request.

 

(c)           Subject to the following provisions of this Clause,
each Term for a Tranche D Loan will be one, two, three or six months or any
other period agreed by the Company and the Lenders.

 

41

 

12.3        Consolidation

 

(a)           Unless the relevant Borrower otherwise requests, a
Term for a Term Loan will end on the same day as the current Term for any other
Term Loan under the same Facility as that Term Loan and borrowed by that
Borrower.  On the last day of those
Terms, those Term Loans will be consolidated and treated as one Term Loan.

 

(b)           Until the Primary Syndication Date, the Term of any
Tranche D Loan will end on the same day as the current Term of any other
Tranche D Loan borrowed by that Borrower.

 

12.4        Coincidence with Repayment Instalment dates

 

(a)           A Borrower may select any Term of less than six months
for a Tranche A Loan (and may redesignate any Tranche A Loan as two Tranche A
Loans) to ensure that the amount of the Tranche A Loans with a Term ending on a
date for repayment of a Repayment Instalment is not less than the Repayment
Instalment due on that date.

 

(b)           If a Borrower fails to make a selection in the
circumstances envisaged in paragraph (a) above, the Facility Agent may prior to
the Rate Fixing Day for the relevant Term shorten any Term for a Tranche A Loan
(and may designate any Tranche A Loan as two Tranche A Loans) to achieve the
same end.

 

12.5        No overrunning the Final Maturity Date

 

If a Term would otherwise overrun the
relevant Final Maturity Date, it will be shortened so that it ends on the Final
Maturity Date.

 

12.6        Other adjustments

 

The Facility Agent and the Company may
enter into such other arrangements as they may agree for the adjustment of
Terms and the consolidation and/or splitting of Loans.

 

12.7        Notification

 

The Facility Agent must notify the relevant
Borrower and the Lenders of the duration of each Term promptly after
ascertaining its duration.

 

12.8        Terms during syndication

 

Notwithstanding any other provision of this
Agreement, no Borrower may choose a Term other than one month (or such other
period may be agreed with the Facility Agent and the Company) in respect of any
Loan the Term (or first Term) of which starts before the Primary Syndication
Date.

 

13.          MARKET DISRUPTION

 

13.1        Failure of a Reference Bank to supply a
rate

 

If EURIBOR is to be calculated by reference
to the Reference Banks but a Reference Bank does not supply a rate by 11.00
a.m. (London time) on a Rate Fixing Day, the applicable EURIBOR will, subject
as provided below, be calculated on the basis of the rates of the remaining
Reference Banks.

 

42

 

13.2        Market disruption

 

(a)           In this Clause, each of the following events is a market
disruption event:

 

(i)            EURIBOR is to be calculated by reference to the
Reference Banks but no, or only one, Reference Bank supplies a rate by 11.00
a.m. (London time) on the Rate Fixing Day; or

 

(ii)           the Facility Agent receives by close of business on
the Rate Fixing Day notification from Lenders whose shares in the relevant Loan
exceed 35 per cent. of that Loan that the cost to them of obtaining matching
deposits in the relevant interbank market is in excess of EURIBOR for the
relevant Term.

 

(b)           The Facility Agent must promptly notify the Company
and the Lenders of a market disruption event.

 

(c)           After notification under paragraph (b) above, the rate
of interest on each Lender’s share in the affected Loan for the relevant Term
will be the aggregate of the applicable:

 

(i)            Margin;

 

(ii)           rate notified to the Facility Agent by that Lender as
soon as practicable, and in any event before interest is due to be paid in
respect of that Term, to be that which expresses as a percentage rate per annum
the cost to that Lender of funding its share in that Loan from whatever source
it may reasonably select; and

 

(iii)          Mandatory Cost.

 

13.3        Alternative basis of interest or funding

 

(a)           If a market disruption event occurs and the Facility
Agent or the Company so requires, the Company and the Facility Agent must enter
into negotiations for a period of not more than 30 days with a view to agreeing
an alternative basis for determining the rate of interest and/or funding for
the affected Loan and any future Loan.

 

(b)           Any alternative basis agreed will be, with the prior
consent of all the Lenders, binding on all the Parties.

 

14.          TAXES

 

14.1        General

 

In this Clause:

 

Irish Lender means a Lender which,

 

(a)           at the date a payment of
interest is made under this Agreement, carries on a bona fide banking business
in Ireland; or

 

(b)           is a company:

 

(i)            which advances money to an
Irish Obligor being a company in the ordinary course of a trade which includes
the lending of money to a company,

 

43

 

(ii)           in whose hands any interest
payable in respect of money so advanced is taken into account in computing the
trading income of the company, and

 

(iii)          which:

 

(A)          has notified in writing to the
appropriate Irish Revenue Commissioners inspector to whom the company makes the
return referred to in section 951 of the Taxes Consolidation Act 1997 (TCA)
that it meets the requirements of subparagraphs (i) and (ii), and

 

(B)           has notified the said Irish
Obligor in writing that it is a company which meets those requirements and that
it has made the notification referred to in subparagraph (iii)(A); and

 

(C)           has provided the said Irish
Obligor with its tax reference number (within the meaning of section 885 of the
TCA); or

 

(c)           is a qualifying company within
the meaning of section 110 of TCA; or

 

(d)           is resident for tax purposes
(under the law of the appropriate country) in a country which is a Member State
of the European Union (other than Ireland) or with which Ireland has a double
taxation agreement and which does not carry on a business in Ireland through a
branch or agency with which the payment is effectively connected.

 

Irish Obligor means an Obligor resident in
Ireland for Irish tax purposes or which makes such payments through a branch or
office in Ireland.

 

UK Obligor means an Obligor resident in
the United Kingdom for the purposes of United Kingdom taxation or which makes
such payments through a branch or office in the United Kingdom.

 

Qualifying Lender means a Lender which is:

 

(a)           in relation to payments of interest made by
an Irish Obligor, an Irish Lender;

 

(b)           in relation to payments of interest made by
a UK Obligor, a UK Lender; or

 

(c)           a Treaty Lender.

 

Tax Credit means a credit against any
Tax or any relief or remission for Tax (or its repayment).

 

Treaty Lender means:

 

(a)           in relation to payments made by an Irish
Obligor, a Lender which is, on the date a payment of interest is made under
this Agreement a person which is resident (as defined in the appropriate double
taxation agreement) in and is making loans from a country with which Ireland has
a double taxation agreement which permits the payment of interest to persons so
resident by persons resident in Ireland without the deduction of any
withholding tax or a company which is resident for tax purposes (under the law
of the appropriate country) in a country which is a Member State of the
European Union (other than Ireland) or with which Ireland has a double taxation
agreement; or

 

44

 

(b)           in relation to payments made by a UK
Obligor, a Lender which is, on the date a payment of interest falls due under
this Agreement:

 

(i)             a bank or company which is resident (as
defined in the appropriate double taxation agreement) in a country with which
the United Kingdom has a double taxation agreement which permits the payment of
interest to persons so resident by persons resident in the United Kingdom
without the deduction of any withholding tax; and

 

(ii)            does not carry on a business in the United
Kingdom through a permanent establishment (as defined in the appropriate double
taxation agreement) with which the payment is effectively connected.

 

U.K. Lender means a Lender which is:

 

(a)           within the charge to U.K. corporation tax in respect
of, and beneficially entitled to, a payment of interest on a Loan made by a
person that was a bank for the purposes of section 349 of the Income and
Corporation Taxes Act 1988 (as currently defined in section 840A of the Income
and Corporation Taxes Act 1988) at the time the Loan was made; or

 

(b)           a U.K. Non-Bank Lender.

 

U.K. Non-Bank Lender means a Lender which is:

 

(a)           a company resident in the U.K. for tax
purposes;

 

(b)           a partnership each member of which is a company
resident in the U.K. for tax purposes; or

 

(c)           a company not resident in the U.K. for tax purposes
which carries on a trade in the U.K. through a branch or agency or, for the
purposes of accounting periods beginning on or after 1st January,
2003, a permanent establishment and brings into account payments made to it
under this Agreement in computing its chargeable profits for the purpose of
section 11(2) of the Income and Corporation Taxes Act 1988,

 

which, in each case, is beneficially
entitled to payments made to it under this Agreement and which has provided to
the Company and not retracted confirmation of the above.

 

14.2        Tax gross-up

 

(a)           Each Obligor must make all payments to be made by it
under the Finance Documents without any Tax Deduction, unless a Tax Deduction
is required by law.

 

(b)           If:

 

(i)            a Lender is not, or ceases to be, a Qualifying Lender;
or

 

(ii)           an Obligor or a Lender is aware that an Obligor must
make a Tax Deduction (or that there is a change in the rate or the basis of a
Tax Deduction),

 

it must promptly notify the Facility
Agent.  The Facility Agent must then
promptly notify the affected Parties.

 

45

 

(c)           Except as provided below, if a Tax Deduction is
required by law to be made by an Obligor or the Facility Agent, the amount of
the payment due from the Obligor will be increased to an amount which (after
making the Tax Deduction) leaves an amount equal to the payment which would
have been due if no Tax Deduction had been required.

 

(d)           Except as provided below, neither an Irish Obligor or
an Obligor resident for tax purposes in the U.K. is required to make an
increased payment under paragraph (c) above to a Lender that is not, or has
ceased to be, a Qualifying Lender in excess of the amount that the Obligor
would have had to pay had the Lender been, or not ceased to be, a Qualifying
Lender.

 

(e)           Paragraph (d) above will not apply if the Lender has
ceased to be a Qualifying Lender by reason of any change after the date it
became a Lender under this Agreement in (or in the interpretation,
administration, or application of) any law or double taxation agreement or any
published practice or concession of any relevant taxing authority.

 

(f)            Neither an Irish Obligor or an Obligor resident for
tax purposes in the U.K. is required to make an increased payment to a Lender
under paragraph (c) above if that Lender is a Treaty Lender and the Obligor
making the payment is able to demonstrate that the Tax Deduction would not have
been required if the Lender had complied with its obligations under paragraph
(i) below.

 

(g)           If an Obligor is required to make a Tax Deduction,
that Obligor must make the minimum Tax Deduction and must make any payment
required in connection with that Tax Deduction within the time allowed by law.

 

(h)           Within 30 days of making either a Tax Deduction or a
payment required in connection with a Tax Deduction, the Obligor making that
Tax Deduction or payment must deliver to the Facility Agent for the relevant
Finance Party evidence (including copies of any receipts) satisfactory to that
Finance Party (acting reasonably) that the Tax Deduction has been made or (as
applicable) the appropriate payment has been paid to the relevant taxing
authority.

 

(i)            A Treaty Lender must co-operate with each Obligor by
using its reasonable endeavours to complete any procedural formalities
necessary for that Obligor to obtain authorisation to make that payment without
a Tax Deduction.

 

(j)            Any confirmation by a Lender of its status for the
purpose of the definition of U.K. Non-Bank Lender must be given to the
Facility Agent on or promptly after the date it becomes a Lender.  The Facility Agent must promptly forward any
confirmation received by it to the Company. 
A U.K. Non-Bank Lender must promptly notify the Company and the Facility
Agent of any change in its status that may affect any confirmation made by it.

 

14.3        Tax indemnity

 

(a)           Except as provided below, the Company must indemnify a
Finance Party against any loss or liability which that Finance Party (in its
absolute discretion) determines will be or has been suffered (directly or
indirectly) by that Finance Party for or on account of Tax in relation to a
payment received or receivable (or any payment deemed to be received or
receivable) under a Finance Document.

 

(b)           Paragraph (a) above does not apply to any Tax assessed
on a Finance Party under the laws of the jurisdiction in which:

 

(i)            that Finance Party is incorporated or, if different,
the jurisdiction (or jurisdictions) in which that Finance Party is treated as
resident for tax purposes; or

 

46

 

(ii)           that Finance Party’s Facility Office is located in
respect of amounts received or receivable in that jurisdiction,

 

if that Tax is imposed on or calculated by
reference to the net income received or receivable by that Finance Party.  However, any payment deemed to be received
or receivable, including any amount treated as income but not actually received
by the Finance Party, such as a Tax Deduction, will not be treated as net
income received or receivable for this purpose.

 

(c)           A Finance Party making, or intending to make, a claim
under paragraph (a) above must promptly notify the Company of the event which
will give, or has given, rise to the claim.

 

14.4        Tax Credit

 

If an Obligor makes a Tax Payment and the
relevant Finance Party (in its absolute discretion) determines that:

 

(a)            a Tax Credit is attributable
to that Tax Payment; and

 

(b)           it has used and retained that
Tax Credit,

 

the Finance Party must promptly notify the
Obligor of such Tax Credit and promptly pay an amount to the Obligor which that
Finance Party determines (in its absolute discretion) will leave the Finance
Party (after that payment) in the same after-tax position as it would have been
in if the Tax Payment had not been made by the Obligor.

 

14.5        Stamp taxes

 

The Company must pay and indemnify each
Finance Party against any stamp duty, registration or other similar Tax payable
in connection with the entry into, performance or enforcement of any Finance
Document, except for any such Tax payable in connection with the entry into of
a Transfer Certificate.

 

14.6        Value added taxes

 

(a)           Any amount (including costs and expenses) payable
under a Finance Document by an Obligor is exclusive of any value added tax or
any other Tax of a similar nature which might be chargeable in connection with
that amount.  If any such Tax is
chargeable, the Obligor must pay to the Finance Party (in addition to and at
the same time as paying that amount) an amount equal to the amount of that Tax.

 

(b)           The obligation of any Obligor under paragraph (a)
above will be reduced to the extent that the Finance Party is properly entitled
to repayment or a credit in respect of the relevant Tax.

 

15.          INCREASED COSTS

 

15.1        Increased Costs

 

Except as provided below in this Clause,
the Company must pay to a Finance Party the amount of any Increased Cost
incurred by that Finance Party or any of its Affiliates as a result of:

 

(a)           the introduction of, or any
change in, or any change in the interpretation or application of, any law or
regulation; or

 

47

 

(b)           compliance with any law or
regulation,

 

made after the date of this Agreement.

 

15.2        Exceptions

 

The Company need not make any payment for
an Increased Cost to the extent that the Increased Cost is:

 

(a)           compensated for under another
Clause or would have been but for an exception to that Clause;

 

(b)           a tax on the overall net
income of a Finance Party or any of its Affiliates;

 

(c)           attributable to a Finance
Party or its Affiliate wilfully failing to comply with any law or regulation;
or

 

(d)           compensated for by the payment
of the Mandatory Costs.

 

15.3        Claims

 

A Finance Party intending to make a claim
for an Increased Cost must notify the Company promptly of the circumstances
giving rise to, and the amount of, the claim.

 

16.          MITIGATION

 

16.1        Mitigation

 

Each Finance Party must, in consultation
with the Company, take all reasonable steps to mitigate any circumstances which
arise and which result or would result in:

 

(a)           any Tax Payment or Increased
Cost being payable to that Finance Party;

 

(b)           that Finance Party being able
to exercise any right of prepayment and/or cancellation under this Agreement by
reason of any illegality; or

 

(c)           that Finance Party incurring
any cost of complying with the minimum reserve requirements of the European
Central Bank,

 

including (but not limited to) transferring
its rights and obligations under the Finance Documents to an Affiliate or
changing its Facility Office.

 

The Company must indemnify each Finance
Party for all costs and expenses reasonably incurred by that Finance Party as a
result of any step requested to be taken by it under this Subclause.

 

A Finance Party is not obliged to take any
step under this Subclause if, in the opinion of that Finance Party (acting
reasonably), to do so might be prejudicial to it.

 

16.2        Conduct of business by a Finance Party

 

No term of this Agreement will:

 

(a)           interfere with the right of
any Finance Party to arrange its affairs (Tax or otherwise) in whatever manner
it thinks fit;

 

48

 

(b)           oblige any Finance Party to
investigate or claim any credit, relief, remission or repayment available to it
in respect of Tax or the extent, order and manner of any claim; or

 

(c)           oblige any Finance Party to
disclose any information relating to its affairs (Tax or otherwise) or any
computation in respect of Tax which it considers to be confidential.

 

17.          PAYMENTS

 

17.1        Place

 

Unless a Finance Document specifies that
payments under it are to be made in another manner, all payments by a Party (other
than the Facility Agent) under the Finance Documents must be made to the
Facility Agent to its account at such office or bank:

 

(a)           in the principal financial
centre of the country of the relevant currency; or

 

(b)           in the case of euro, in the
principal financial centre of a Participating Member State or London,

 

as it may notify to that Party for this
purpose by not less than five Business Days’ prior notice.

 

17.2        Funds

 

Payments under the Finance Documents to the
Facility Agent must be made for value on the due date at such times and in such
funds as the Facility Agent may specify to the Party concerned as being
customary at the time for the settlement of transactions in the relevant
currency in the place for payment.

 

17.3        Distribution

 

(a)           Each payment received by the Facility Agent under the
Finance Documents for another Party must, except as provided below, be made
available by the Facility Agent to that Party by payment (as soon as
practicable after receipt) to its account with such office or bank:

 

(i)            in the principal financial centre of the country of
the relevant currency; or

 

(ii)           in the case of euro, in the principal financial centre
of a Participating Member State or London,

 

as it may notify to the Facility Agent for
this purpose by not less than five Business Days’ prior notice.

 

(b)           The Facility Agent may apply any amount received by it
for an Obligor in or towards payment (as soon as practicable after receipt) of
any amount due from that Obligor under the Finance Documents or in or towards
the purchase of any amount of any currency to be so applied.

 

(c)           Where a sum is paid to the Facility Agent under this
Agreement for another Party, the Facility Agent is not obliged to pay that sum
to that Party until it has established that it has actually received it.  However, the Facility Agent may assume that
the sum has been paid to it, and, in reliance on that assumption, make
available to that Party a corresponding amount.  If it transpires that the sum has not been received by the
Facility Agent, that Party must immediately on demand by the Facility Agent
refund any corresponding amount made

 

49

 

available
to it together with interest on that amount from the date of payment to the
date of receipt by the Facility Agent at a rate calculated by the Facility
Agent to reflect its cost of funds from such sources as it may reasonably
select.

 

17.4        Currency

 

(a)           Unless a Finance Document specifies that payments
under it are to be made in a different manner, the currency of each amount
payable under the Finance Documents is determined under this Clause.

 

(b)           Interest is payable in the currency in which the
relevant amount in respect of which it is payable is denominated.

 

(c)           A repayment or prepayment of any principal amount is
payable in the currency in which that principal amount is denominated on its
due date.

 

(d)           Amounts payable in respect of costs and expenses are
payable in the currency in which they are incurred.

 

(e)           Each other amount payable under the Finance Documents
is payable in euros.

 

17.5        No set-off or counterclaim

 

All payments made by an Obligor under the
Finance Documents must be made without set-off or counterclaim.

 

17.6        Business Days

 

(a)           If a payment under the Finance Documents is due on a
day which is not a Business Day, the due date for that payment will instead be
the next Business Day in the same calendar month (if there is one) or the
preceding Business Day (if there is not) or whatever day the Facility Agent
determines is market practice.

 

(b)           During any extension of the due date for payment of
any principal under this Agreement interest is payable on that principal at the
rate payable on the original due date.

 

17.7        Partial payments

 

(a)           If any Administrative Party receives a payment insufficient
to discharge all the amounts then due and payable by the Obligors under the
Finance Documents, the Administrative Party must apply that payment towards the
obligations of the Obligors under the Finance Documents in the following order:

 

(i)            first, in or towards payment pro
rata of any unpaid fees, costs and expenses of the Administrative Parties under
the Finance Documents;

 

(ii)           secondly, in or towards payment pro
rata of any accrued interest or fee due but unpaid under this Agreement;

 

(iii)          thirdly, in or towards payment pro
rata of any principal amount due but unpaid under this Agreement; and

 

(iv)          fourthly, in or towards payment pro
rata of any other sum due but unpaid under the Finance Documents.

 

50

 

(b)           The Facility Agent must, if so directed by all the
Lenders, vary the order set out in sub-paragraphs (a)(ii) to (iv) above.

 

(c)           This Subclause will override any appropriation made by
an Obligor.

 

17.8        Timing of payments

 

If a Finance Document does not provide for
when a particular payment is due, that payment will be due within five Business
Days of demand by the relevant Finance Party.

 

18.          GUARANTEE AND INDEMNITY

 

18.1        Guarantee and indemnity

 

Each Guarantor jointly and severally and
irrevocably and unconditionally:

 

(a)           guarantees to each Finance
Party punctual performance by each Borrower of all its payment obligations
under the Finance Documents;

 

(b)           undertakes with each Finance
Party that, whenever a Borrower does not pay any amount when due under any
Finance Document, it must immediately on demand by the Facility Agent pay that
amount as if it were the principal obligor; and

 

(c)           indemnifies each Finance Party
immediately on demand against any loss or liability suffered by that Finance
Party if any obligation guaranteed by it is or becomes unenforceable, invalid
or illegal; the amount of the loss or liability under this indemnity will be
equal to the amount the Finance Party would otherwise have been entitled to
recover.

 

18.2        Continuing guarantee

 

This guarantee is a continuing guarantee
and will extend to the ultimate balance of all sums payable by any Obligor
under the Finance Documents, regardless of any intermediate payment or
discharge in whole or in part.

 

18.3        Reinstatement

 

(a)           If any discharge (whether in respect of the
obligations of any Obligor or any security for those obligations or otherwise)
or arrangement is made in whole or in part on the faith of any payment,
security or other disposition which is avoided or must be restored on
insolvency, liquidation or otherwise without limitation, the liability of each
Guarantor under this Clause will continue as if the discharge or arrangement
had not occurred.

 

(b)           Each Finance Party may concede or compromise any claim
that any payment, security or other disposition is liable to avoidance or
restoration.

 

18.4        Waiver of defences

 

The obligations of each Guarantor under
this Clause will not be affected by any act, omission or thing which, but for
this provision, would reduce, release or prejudice any of its obligations under
this Clause (whether or not known to it or any Finance Party).  This includes:

 

(a)           any time or waiver granted to,
or composition with, any person;

 

51

 

(b)           any release of any person
under the terms of any composition or arrangement;

 

(c)            the taking, variation,
compromise, exchange, renewal or release of, or refusal or neglect to perfect,
take up or enforce, any rights against, or security over assets of, any person;

 

(d)           any non-presentation or
non-observance of any formality or other requirement in respect of any
instrument or any failure to realise the full value of any security;

 

(e)           any incapacity or lack of
power, authority or legal personality of or dissolution or change in the
members or status of any person;

 

(f)            any amendment (however
fundamental) of a Finance Document or any other document or security; or

 

(g)           any unenforceability,
illegality, invalidity or non-provability of any obligation of any person under
any Finance Document or any other document or security.

 

18.5        Immediate recourse

 

Each Guarantor waives any right it may have
of first requiring any Finance Party (or any trustee or agent on its behalf) to
proceed against or enforce any other right or security or claim payment from
any person before claiming from that Guarantor under this Clause.

 

18.6        Appropriations

 

Until all amounts which may be or become
payable by the Obligors under the Finance Documents have been irrevocably paid
in full, each Finance Party (or any trustee or agent on its behalf) may:

 

(a)           without affecting the
liability of any Guarantor under this Clause:

 

(i)            refrain from applying or
enforcing any other moneys, security or rights held or received by that Finance
Party (or any trustee or agent on its behalf) in respect of those amounts; or

 

(ii)           apply and enforce them in such
manner and order as it sees fit (whether against those amounts or otherwise);
and

 

(b)           hold in an interest-bearing
suspense account any moneys received from any Guarantor or on account of that
Guarantor’s liability under this Clause.

 

18.7        Non-competition

 

Unless:

 

(a)           all amounts which may be or
become payable by the Obligors under the Finance Documents have been
irrevocably paid in full; or

 

(b)           the Facility Agent otherwise
directs,

 

no Guarantor will, after a claim has been
made or by virtue of any payment or performance by it under this Clause:

 

52

 

(i)            be subrogated to any rights, security or moneys held,
received or receivable by any Finance Party (or any trustee or agent on its
behalf);

 

(ii)           be entitled to any right of contribution or indemnity
in respect of any payment made or moneys received on account of that
Guarantor’s liability under this Clause;

 

(iii)          claim, rank, prove or vote as a creditor of any
Obligor or its estate in competition with any Finance Party (or any trustee or
agent on its behalf) in respect of any payment made or moneys received on
account of that Guarantor’s liability under this Clause; or

 

(iv)          receive, claim or have the benefit of any payment,
distribution or security from or on account of any Obligor, or exercise any
right of set-off as against any Obligor in respect of any payment made or
moneys received on account of that Guarantor’s liability under this Clause.

 

Each Guarantor must hold in trust for and
immediately pay or transfer to the Facility Agent for the Finance Parties any
payment or distribution or benefit of security received by it contrary to this
Clause or in accordance with any directions given by the Facility Agent under
this Clause.

 

18.8        Additional security

 

This guarantee is in addition to and is not
in any way prejudiced by any other security now or subsequently held by any
Finance Party.

 

18.9        Certificate

 

A certificate of the Facility Agent as to
any amount due from any Borrower under this Agreement (containing reasonable
details of the calculation thereof) shall, in the absence of manifest error, be
prima facie evidence of such amount as against each Guarantor.

 

18.10      Release of Guarantors

 

At the time of completion of any sale or
other disposal (in accordance with and as expressly permitted by this Agreement
and by Clause 30.7 (Resignation of an Obligor) in particular) to a person or
persons outside (and which will remain outside) the Group of all of the shares
in the capital of any Guarantor (other than the Company) (or of all of the
shares in any other member of the Group such that any Guarantor (other than the
Company) ceases as a result thereof to be a member of the Group) and in such
other circumstances (if any) as all the Lenders may from time to time agree in
writing, such Guarantor shall be released from all past, present and future
liabilities (both actual and contingent and including, without limitation, any
liability to any other Guarantor by way of contribution) hereunder and under
the other Finance Documents to which it is a party (other than liabilities
which it has in its capacity as a Borrower). 
For the avoidance of doubt, notwithstanding the foregoing, the Company
must comply with Clause 21.7 (Guarantor cover) at all times.

 

19.          REPRESENTATIONS

 

19.1        Representations

 

The representations set out in this Clause
are made by each Obligor or (if it so states) the Company to each Finance
Party. The representations and warranties in Clause 19.2 to 19.20 (inclusive)
shall be subject to any matter disclosed in all material respects to the
Finance Parties in the Disclosure Letter.

 

53

 

19.2        Status

 

(a)           It is a company, duly incorporated and validly
existing under the laws of its jurisdiction of incorporation.

 

(b)           It and each of its Material Subsidiaries has the power
to own its assets and carry on its business as it is being conducted.

 

19.3        Powers and authority

 

It has the power to enter into and perform,
and has taken all necessary action to authorise the entry into and performance
of, the Finance Documents to which it is or will be a party and the
transactions contemplated by those Finance Documents.

 

19.4        Legal validity

 

Subject to any general principles of law
limiting its obligations and referred to in any legal opinion required under
this Agreement, each Finance Document to which it is a party (other than any
Hedging Security Document) is its legally binding, valid and enforceable
obligation.

 

19.5        Non-conflict

 

The entry into and performance by it of,
and the transactions contemplated by, the Finance Documents do not conflict
with:

 

(a)           any law or regulation
applicable to it;

 

(b)           its constitutional documents
or the constitutional documents of any of its Subsidiaries who are party to the
Finance Documents; or

 

(c)           any document which is binding
upon it or any of its Subsidiaries or any of its or its Subsidiaries’ assets in
such a manner or to such an extent as to have a Material Adverse Effect.

 

19.6        No default

 

(a)           As at the date of this Agreement, no Default, and
thereafter, no Event of Default, is outstanding or will result from the
execution of, or the performance of any transaction contemplated by, any Finance
Document; and

 

(b)           No other event is outstanding which constitutes a
default under any document which is binding on it or any of its Subsidiaries or
any of its or its Subsidiaries’ assets to an extent or in a manner which is
reasonably likely to have a Material Adverse Effect.

 

19.7        Authorisations

 

As at the date of this Agreement and except
for registration of each Security Document, all authorisations required by it
in connection with the entry into, performance, validity and enforceability of,
and the transactions contemplated by, the Finance Documents have been obtained
or effected (as appropriate) and are in full force and effect save where
failure to obtain or effect any such authorisation would not have a Material
Adverse Effect.

 

54

 

19.8        Business licences, etc.

 

As at the date of this Agreement, all
authorisations required by it and the Material Subsidiaries in order for it and
the Material Subsidiaries to carry on their business operations have been
obtained or effected, save where failure to do so would not have a Material
Adverse Effect.

 

19.9        Financial statements

 

Its audited financial statements most recently
delivered to the Facility Agent under this Agreement:

 

(a)           have been prepared in accordance
with the accounting principles and practices generally accepted in its
jurisdiction of incorporation, consistently applied; and

 

(b)           give a true and fair view of
its financial condition (consolidated if applicable) as at the date to which
they were drawn up,

 

except, in each case, as disclosed in those
financial statements.

 

19.10      No material adverse effect

 

As at the date of this Agreement, no event
or series of events have occurred which constitute a Material Adverse Effect.

 

19.11      Information Package

 

(a)           In this Subclause:

 

Information Package means:

 

(i)            the Business Plan delivered to the Facility
Agent under Part I of Schedule 2 (Conditions Precedent Documents) and the
Business Model; and

 

(ii)           the Information Memorandum,

 

supplied
to the Arrangers.

 

(b)           In the case of the Company only and as at the date of
this Agreement, the date the Information Package (or part thereof) is delivered
to the Arrangers and as at the Primary Syndication Date:

 

(i)            the factual information contained in the Information
Package was true and accurate in all material respects as at its date or (if
appropriate) as at the date (if any) at which it is stated to be given;

 

(ii)           all expressions of opinion or intention contained in
the Information Package were made after careful consideration and are believed
by the Company to be reasonable as at the date at which it is stated to be
given;

 

(iii)          the financial projections contained in the Information
Package have been prepared as at the date of the Information Package on the basis
of recent historical information and assumptions believed by the Company to be
reasonable at that date;

 

55

 

(iv)          the Information Package did not omit as at its date
any information which, if disclosed, would make the Information Package untrue
or misleading in any material respect; and

 

(v)           nothing has occurred since the date of the Information
Package which, if disclosed, would make the Information Package untrue or
misleading in any material respect.

 

The Company may make written disclosures to
the Facility Agent against this representation prior to its repetition on the
Primary Syndication Date and the representation will be deemed to be qualified
by those written disclosures.

 

19.12      Due Diligence Reports

 

(a)           In this Subclause, Reports means the legal due
diligence reports prepared by A&L Goodbody and (in respect of certain
finance leases) by Arthur Cox prior to the date of this Agreement and referred
to in Part 1 of Schedule 2 (Conditions Precedent Documents).

 

(b)           In the case of the Company only as at the date of this
Agreement and to the best of its knowledge after due enquiry:

 

(i)            all factual information provided by or on behalf of
any member of the Group to A&L Goodbody or Arthur Cox in connection with a
Report was true in all material respects at its date or (if appropriate) as at
the date (if any) at which it is stated to be given;

 

(ii)           all expressions of opinion or intention given by or on
behalf of any member of the Group and all forecasts and projections furnished
by any member of the Group to A&L Goodbody or Arthur Cox in connection with
a Report were arrived at after careful consideration and are believed by the
Company to be reasonable as at the date at which it is stated to be given;

 

(iii)          no Report omitted as at its date any information
which, if disclosed, would make that Report untrue or misleading in any
material respect; and

 

(iv)          as at the date of this Agreement and save for any
matter contemplated by the Finance Documents, the Indenture Documents and the
intra-group reorganisation effected prior to the date hereof on the terms
notified to the Facility Agent before the first Utilisation Date, nothing has
occurred since the date of a Report which, if disclosed, would make that Report
untrue or misleading in any material respect in the light of circumstances in
which such Report was made available.

 

19.13      Litigation etc.

 

(a)           As at the date of this Agreement, no litigation,
arbitration or administrative or regulatory proceedings or investigations are
current or, to its knowledge, pending or threatened, which are reasonably
likely to be determined adversely to it or to any of its Subsidiaries, and
which, if adversely determined, would have a Material Adverse Effect.

 

(b)           As at the date of this Agreement, no labour disputes
are current or, to its knowledge, threatened which would have a Material
Adverse Effect.

 

19.14      Structure Memorandum

 

(a)           In this Subclause, Structure Memorandum means
the chart set out in Schedule 11 (Structure Memorandum).

 

56

 

(b)           In the case of the Company only and as at the date of
this Agreement, the Structure Memorandum, shows all members of the Group
immediately after the date of this Agreement and is accurate in all material
respects.

 

19.15      Intellectual Property Rights

 

(a)           As at the date of this Agreement, it (and each
Material Subsidiary) owns or has licensed to it or has the right to use all the
Intellectual Property Rights which are material in the context of its business
and which are required by it in order for it to carry on its business in all
material respects as it is being conducted and as reflected in the Original
Financial Statements and it does not (nor does any Material Subsidiary), in
carrying on its business, infringe any Intellectual Property Rights of any
third party in any way which would have a Material Adverse Effect.

 

(b)           As at the date of this Agreement, all actions
(including payment of all fees) required to maintain any Intellectual Property
Rights which are material in the context of its (or the Material Subsidiaries’)
business in full force and effect have been taken where failure to take any
such action would have a Material Adverse Effect.

 

19.16      Ownership of Assets

 

Save for any shares held by the Nominees in
eircom Funding and those assets the subject of the finance lease transactions
referred to in the Reports, it and each Material Subsidiary is the legal and
beneficial owner of the shares and other assets which are material in the context
of their business and which are required by each of them in order for each of
them to carry on their business in all material respects as it is being
conducted (or, in the case of other assets, such companies are otherwise
lawfully entitled to use such assets whether pursuant to licences or other
agreements), save to the extent that failure to own such assets or to have an
entitlement to use such assets would not have a Material Adverse Effect.

 

19.17      Environmental Matters

 

(a)           As at the date of this Agreement, it and each of its
Material Subsidiaries have obtained all requisite Environmental Approvals
required for the carrying on of its business as currently conducted and have at
all times complied with (i) the terms and conditions of such Environmental
Approvals and (ii) all other applicable Environmental Laws which in each case,
if not obtained or complied with, would have a Material Adverse Effect.

 

(b)           As at the date of this Agreement, to the best of its
knowledge and belief, there is no Environmental Claim (whether in respect of
any site previously or currently owned or occupied by any member of the Group
or otherwise) pending or threatened, and there are no past or present acts,
omissions, events or circumstances that would be likely to form the basis of
any Environmental Claim (including, without limitation any arising out of the
use, disposal, generation, storage, release, burial, deposit or emission of any
Dangerous Substance and whether in respect of any site previously or currently
owned or occupied by any member of the Group or otherwise), against it or any
member of the Group which if determined against that member of the Group would
have a Material Adverse Effect.

 

19.18      Pari passu ranking

 

As at the date of this Agreement, its
obligations under the Finance Documents rank and will rank at least pari passu
with all its other unsecured obligations, except for obligations mandatorily
preferred by law applying to companies generally.

 

57

 

19.19      Tax liabilities

 

(a)           Save for claims being contested in good faith and in
respect of which adequate provision has been or will be and is made and
disclosed in the latest accounts, no material claims are being or are
reasonably likely to be asserted against it or any of its Material Subsidiaries
with respect to Taxes which are reasonably likely to be determined adversely to
it or to such Material Subsidiary and which, if determined adversely to it or
to such Material Subsidiary, would have a Material Adverse Effect.

 

(b)           Neither it nor any Material Subsidiary are overdue in
the filing of any Tax returns required to be filed by any of them, and each of
them has paid all Taxes shown to be due on any Tax returns required to be filed
by them or on any assessments made against them where failure to file,
non-payment or a claim for payment would in any such case have a Material
Adverse Effect.

 

19.20      Financial Indebtedness and Security
Interests

 

As at the date of this Agreement, other
than Financial Indebtedness and Security Interests permitted under this
Agreement, no member of the Group has any Financial Indebtedness outstanding or
any Security Interest on any of its assets.

 

19.21      Times for making representations

 

(a)           The representations set out in this Clause are made by
each Original Obligor on the date of this Agreement.

 

(b)           Unless a representation is expressed to be given at a
specific date, each representation is deemed to be repeated by:

 

(i)            each Additional Obligor and the Company on the date
that Additional Obligor becomes an Obligor; and

 

(ii)           each Obligor on the date of each Request, each
Utilisation Date and the first day of each Term.

 

(c)           When a representation is repeated, it is applied to
the circumstances existing at the time of repetition.

 

20.          INFORMATION COVENANTS

 

20.1        Financial statements

 

(a)           The Company and eircom must each supply to the
Facility Agent in sufficient copies for all the Lenders:

 

(i)            its audited consolidated annual financial statements
for each of its financial years; and

 

(ii)           its monthly and quarterly consolidated management
accounts together with, in the case of the quarterly consolidated financial
statements, a comparison of actual performance in that quarter (explaining any
material changes against the budget for that period) with that projected in the
Business Plan; and

 

(iii)          the audited annual financial statements of any
Borrower for each of its financial years.

 

58

 

(b)           All financial statements must be supplied as soon as
they are available and:

 

(i)            in the case of any audited consolidated financial
statements of the Company or eircom, within 120 days;

 

(ii)           in the case of any monthly and quarterly consolidated
management accounts, within 45 days; and

 

(iii)          in the case of each other Borrower’s audited annual
financial statements, within 120 days,

 

of the end of the relevant financial
period.

 

20.2        Form of financial statements

 

(a)           The Company must ensure that each set of financial
statements of a member of the Group supplied under this Agreement gives (if
audited) a true and fair view of, or (if unaudited) fairly represents, the
financial condition (consolidated or otherwise) of the relevant person as at
the date to which those financial statements were drawn up.

 

(b)           The Company must ensure that each set of its annual
audited consolidated financial statements are prepared in accordance with GAAP,
consistently applied.

 

(c)           If GAAP at any time changes so that it differs from
the Accounting Principles in a way that has had or will have a material impact
on the calculation of the financial covenants set out in Clause 21 (Financial
Covenants) then:

 

(i)            the Company must promptly notify the Facility Agent of
such change and provide a written description of the impact of such change on the
calculation of the financial covenants set out in Clause 21 (Financial
Covenants);

 

(ii)           the Company and Facility Agent must enter into
discussions in good faith for a period of not more than 30 days to discuss the
consequences of such change on the calculation of the financial covenants in
Clause 21 (Financial Covenants) with a view to agreeing any amendments required
to be made to this Agreement to place the Obligors and the Lenders in the same
position as they would have been in if the change to GAAP had not happened; and

 

(iii)          the Facility Agent or the Company may require that
compliance with Clause 21 (Financial Covenants) be calculated in accordance
with the Accounting Principles, in which case compliance with the financial
covenants in Clause 21 (Financial covenants) in respect of each Quarter Date
which falls at the end of a Measurement Period during which the relevant change
from the Accounting Principles applies will be tested by reference to the
Accounting Principles.

 

(d)           Any agreement between the Company and the Facility
Agent pursuant to paragraph (c)(ii) above will be, with the prior consent of
the Majority Lenders, binding on all the Parties.

 

(e)           If no agreement is reached under paragraph (c)(ii)
above on the required amendments to this Agreement, the Company must supply
with each set of consolidated financial statements of the Group supplied under
this Agreement a reconciliation statement in sufficient detail to allow the
financial covenants in Clause 21 (Financial covenants) to be tested on the
basis of the Accounting Principles.

 

59

 

20.3        Compliance Certificate

 

(a)           A Compliance Certificate is a certificate,
substantially in the form of Schedule 7 (Form of Compliance Certificate)
setting out, among other things, calculations of the financial covenants.

 

(b)           The Company must supply to the Facility Agent a
Compliance Certificate with each set of its audited consolidated annual
financial statements sent to the Facility Agent under this Agreement.

 

(c)           The Company must supply to the Facility Agent a
Compliance Certificate with each set of quarterly management accounts delivered
to the Facility Agent under this Agreement.

 

(d)           A Compliance Certificate must be signed by two
authorised signatories of the Company and, in the case of a Compliance
Certificate supplied with its audited consolidated annual financial statements,
the Auditors (subject to any customary qualifications with respect to their
liability and the basis of their confirmation as the Auditors may specify).

 

20.4        Budget and Business Plan

 

(a)           The Company must supply to the Facility Agent not
later than 30 days after the beginning of each financial year a revised
Business Plan for that financial year and, not later than 60 days after the
beginning of each financial year, a revised Business Plan for the following two
financial years, in each case including a budget and financial projections for
such period.

 

(b)           The Business Plan must:

 

(i)            show the information provided for in the Business Plan
delivered to the Facility Agent under Part 1 of Schedule 2 (Conditions
Precedent Documents); and

 

(ii)           be approved by the board of directors of the Company.

 

20.5        Presentations

 

The Company shall procure that at least
once in each financial year the senior executives of the Company and eircom
shall give a presentation to the Lenders at a place and time agreed between the
Company and Facility Agent (each acting reasonably), such presentation to
include discussions of projections for the Group’s business covering the period
from the date of such presentation to the Tranche C Final Maturity Date.

 

20.6        Auditors

 

(a)           The Company must retain as its Auditors one of the
firms specified in the definition thereof, and may only replace its Auditors
with a firm not named in the definition thereof with the prior approval of the
Facility Agent (acting on the instructions of the Majority Lenders), such
approval not to be unreasonably withheld or delayed.

 

(b)           If the Facility Agent notifies the Company in writing
that it reasonably suspects that a Default has occurred and is continuing or
that the Company has provided materially inaccurate information to it and the
Facility Agent wishes to discuss the financial position of any member of the
Group with the Auditors, the Facility Agent may notify the Company, stating the
questions or issues which the Facility Agent wishes to discuss with the
Auditors. In this event, the Company must ensure that the Auditors are
authorised (at the expense of the Company except where no Default is shown to
exist):

 

60

 

(i)            to discuss the financial position of each member of
the Group with the Facility Agent on request from the Facility Agent; and

 

(ii)           to disclose to the Facility Agent for the Finance
Parties any information which the Facility Agent may reasonably request.

 

20.7        Information — miscellaneous

 

The Company must supply to the Facility
Agent, in sufficient copies for all the Lenders if the Facility Agent so
requests:

 

(a)           copies of all documents
despatched by the Company to its creditors generally or any class of them at
the same time as they are despatched;

 

(b)           promptly upon becoming aware
of them, details of any litigation, arbitration or administrative proceedings
which are current, threatened or pending and which have a reasonable prospect
of being adversely determined and, if adversely determined, would have a
Material Adverse Effect;

 

(c)           promptly on request a list of
the then current Material Subsidiaries;

 

(d)           promptly on request, an up to
date copy of its shareholders’ register;

 

(e)           promptly on request, such
further information regarding the financial condition, assets and operations of
the Group as any Finance Party through the Facility Agent may reasonably
request; and

 

(f)            full details of any claim or
claims which would otherwise fall within Clause 19.19 (Tax Liabilities) but in
respect of which adequate provision will be made in the relevant accounts.

 

20.8        Notification of Default

 

(a)           Unless the Facility Agent has already been so notified
by another Obligor, each Obligor must notify the Facility Agent of any Default
(and the steps, if any, being taken to remedy it) promptly upon becoming aware
of its occurrence.

 

(b)           Promptly on request by the Facility Agent, the Company
must supply to the Facility Agent a certificate, signed by two of its
authorised signatories on its behalf, certifying that no Default is outstanding
or, if a Default is outstanding, specifying the Default and the steps, if any,
being taken to remedy it.

 

(c)           If the Facility Agent has reasonable grounds for
believing that there is or may be an Event of Default outstanding or an Event
of Default is outstanding, the Company will procure (at its own cost) that any
one or more representatives of the Facility Agent and/or accountants or other
professional advisers appointed by the Facility Agent are allowed to have
access during normal business hours to the assets, books and records of each
member of the Group and are able to inspect and copy the same.

 

20.9        Year end

 

The Company must not change its financial
year end without the consent of the Facility Agent (acting on the instructions
of the Majority Lenders), such consent not to be unreasonably withheld or
delayed.

 

61

 

20.10      Use of websites

 

(a)           Except as provided below, the Company may deliver any
information under this Agreement to a Lender by posting it on to an electronic
website if:

 

(i)            the Facility Agent and the Lender agree;

 

(ii)           the Company and the Facility Agent designate an
electronic website for this purpose;

 

(iii)          the Company notifies the Facility Agent of the address
of and password for the website; and

 

(iv)          the information posted is in a format agreed between
the Company and the Facility Agent.

 

The Facility Agent must supply each
relevant Lender with the address of and password for the website.

 

(b)           Notwithstanding the above, the Company must supply to
the Facility Agent in paper form a copy of any information posted on the
website together with sufficient copies for:

 

(i)            any Lender not agreeing to receive information via the
website; and

 

(ii)           within ten Business Days of request any other Lender,
if that Lender so requests.

 

(c)           The Company must promptly upon becoming aware of its
occurrence, notify the Facility Agent if:

 

(i)            the website cannot be accessed;

 

(ii)           the website or any information on the website is
infected by any electronic virus or similar software;

 

(iii)          the password for the website is changed; or

 

(iv)          any information to be supplied under this Agreement is
posted on the website or amended after being posted.

 

If the circumstances in paragraphs (i) or
(ii) above occur, the Company must supply any information required under this
Agreement in paper form.

 

21.          FINANCIAL COVENANTS

 

21.1        Definitions

 

In this Clause:

 

Adjusted EBITDA means, in relation to any
person, a calculation on the same principles as that set out in the definition
of Consolidated Adjusted EBITDA below, but on an unconsolidated basis.

 

Capital Expenditure means any expenditure which
is or will be treated as capital expenditure in the audited consolidated
financial statements of the Company in accordance with Clause 21.2(a)
(Interpretation) below (which, for the avoidance of doubt, shall not

 

62

 

include
redundancy costs) and excluding any Capital Expenditure financed by grants with
no scheduled repayment obligations for the Group.

 

Consolidated Cash and Cash
Equivalents means any Cash and Cash Equivalents to which any member of the Group
or the relevant member of the Group (as the case may be) is beneficially
entitled at that time and which is capable of being applied against
Consolidated Total Borrowings.

 

Consolidated Adjusted
EBITDA means,
for any Measurement Period, Consolidated EBITDA for that Measurement Period,
adjusted by adding back (but only to the extent already deducted) any
redundancy costs expensed in that Measurement Period to any employees and/or
former employees of the Group and/or any amortisation of the pension surplus of
eircom created at the time of its acquisition by the Company and identified in
the Original Financial Statements.

 

Consolidated Cashflow means Consolidated EBITDA for
a Measurement Period, adjusted by:

 

(a)           taking into account any extraordinary or
exceptional item received or paid in cash during that Measurement Period;

 

(b)           deducting Capital Expenditure paid or
required to be paid during that Measurement Period;

 

(c)           taking into account amortisation of the
Group’s pension surplus;

 

(d)           deducting all dividends or any other
distributions paid to any person during that Measurement Period which is
referable to share capital not held by a member of the Group (including, but
not limited to, the ESOT Dividend);

 

(e)           deducting (to the extent not already
deducted) any redundancy costs paid to any employees and/or former employees of
the Group during that Measurement Period;

 

(f)            taking into account any changes in working
capital over that Measurement Period, and

 

(g)           deducting any tax paid during such
Measurement Period,

 

provided
that for each Measurement Period which includes a scheduled repayment of
Tranche A Loans under Clause 9.1 (Repayment of Tranche A Loan) or of Tranche B
Loans under Clause 9.2 (Repayment of Tranche B Loans), Consolidated Cashflow
will be increased by the Group’s Consolidated Cash and Cash Equivalents as at
the beginning of that Measurement Period, provided that such increase cannot
exceed €75,000,000.

 

Consolidated EBITDA means the consolidated net
pre-taxation profits of the Group for a Measurement Period, adjusted by:

 

(a)           adding back Consolidated Net Interest
Payable and any capitalised interest (relating to debt issue costs) and interest
payable in kind;

 

(b)           taking no account of any exceptional or
extraordinary item;

 

(c)           excluding any amount attributable to
minority interests;

 

63

 

(d)           adding back depreciation and amortisation;
and

 

(e)           excluding any intra-Group items.

 

Consolidated Interest
Payable
means all interest and periodic financing charges including acceptance
commission, commitment fee and the interest element of rental payments on
finance or capital leases (whether, in each case, paid or payable in cash but
excluding capitalised interest (relating to debt issue costs) and interest
payable in kind), incurred by the Group or relevant member of the Group (as the
case may be) in effecting, servicing or maintaining Consolidated Total
Borrowings during a Measurement Period and including, for the avoidance of
doubt, all documentary credit fees in relation to Documentary Credits.

 

Consolidated Net Interest
Payable means
Consolidated Interest Payable, less all financing income received or receivable
by the Group or relevant member of the Group (as the case may be) during the
relevant Measurement Period, plus or minus (as the case may be) the net amount
paid to or, as the case may be, paid to or by the Group under Treasury
Transactions in respect of interest rate and currency exposure on indebtedness
during the relevant Measurement Periods.

 

Consolidated Net Total
Borrowings means at any time Consolidated Total Borrowings less Consolidated Cash
and Cash Equivalents.

 

Consolidated Total Borrowings
means,
in respect of the Group or any relevant member of the Group (as the case may
be), at any time the aggregate of the following:

 

(a)           the outstanding principal amount of any
moneys borrowed;

 

(b)           the outstanding principal amount of any
acceptance under any acceptance credit;

 

(c)           the outstanding principal amount of any
bond, note, debenture, loan stock or other similar instrument;

 

(d)           the capitalised element of indebtedness
under a finance or capital lease treated as such in the Group’s consolidated
accounts;

 

(e)           the outstanding principal amount of all
moneys owing in connection with the sale or discounting of receivables
(otherwise than on a non-recourse basis);

 

(f)            the outstanding principal amount of any
indebtedness arising from any deferred payment agreements arranged primarily as
a method of raising finance or financing the acquisition of an asset to the
extent payable more than 120 days after the acquisition of such asset by the
party liable;

 

(g)           any fixed or minimum premium payable on the
repayment or redemption of any instrument referred to in paragraph (c) above;

 

(h)           the outstanding principal amount of any
indebtedness arising in connection with any other transaction (including any
forward sale or purchase agreement) which has the commercial effect of a
borrowing;

 

(i)            the net mark to market value of derivative
transactions protecting against or benefiting from fluctuations in any rate or
price (other than under the Hedging Documents);

 

64

 

(j)            for the avoidance of doubt, excluding the
outstanding amount attributable to Section 17 Guarantees which are not treated
as borrowings under the accounting principles applicable under Clause 21.2(a)
(Interpretation); and

 

(k)           the outstanding principal amount of any
indebtedness of any person of a type referred to in paragraphs (a) - (j) above
which is the subject of a guarantee, indemnity or similar assurance against
financial loss given by a member of the Group,

 

but
excluding:

 

(i)            any Investor Debt;

 

(ii)           any indebtedness between an Obligor and any
other Obligor; and

 

(iii)          the eircom Funding Loan.

 

which
would otherwise be included, and so that:

 

(A)          no amount shall be taken into account more than once
in the same calculation (regardless of whether that amount is also the subject
of a guarantee or other indemnity); and

 

(B)           where any indebtedness is guaranteed or otherwise
credit-supported by a Documentary Credit, there shall be no double counting of
that indebtedness and the relevant amount of the Documentary Credit.

 

Any
amount outstanding in a currency other than euros is to be taken into account
at its euro equivalent calculated on the basis of:

 

(1)           the Facility Agent’s spot rate of exchange
for the purchase of the relevant currency in the London foreign exchange market
with euros at or about 10.00 a.m. (London time) on the day the relevant amount
falls to be calculated; or

 

(2)           if the amount is to be calculated on the
last day of a financial period of the Company, the rate of exchange used by the
Company in its financial statements for that period.

 

Consolidated Total Debt
Service
means, in respect of a Measurement Period:

 

(a)           Consolidated Net Interest Payable for that
Measurement Period; plus

 

(b)           all Consolidated Total Borrowings which
fall due for repayment or prepayment during that Measurement Period, other
than:

 

(i)            any principal amount repaid or prepaid
under a revolving credit or overdraft or similar facility and which is or may
be available for redrawing;

 

(ii)           any amount mandatorily prepaid under this
Agreement;

 

(iii)          any principal amount repaid or prepaid
under the EIB Loan or the ITI Loan Stock; or

 

(iv)          for the avoidance of doubt, the repayment
of the Existing Facility.

 

Measurement Period means a period of 12 months
ending on each Quarter Date.

 

65

 

OECD Country means each member from time to
time of the Organisation for Economic Co-operation and Development which has a
rating of A or higher by S&P or FitchIBCA or A2 or higher by Moody’s or a
comparable rating from a nationally recognised credit-rating agency for its
long-term debt obligations.

 

Quarter Date means each of 30th June, 30th
September, 31st December and 31st March.

 

21.2        Interpretation

 

(a)           Except as provided to the contrary in this Agreement,
an accounting term used in this Clause is to be construed in accordance with
GAAP or, if required by Clause 20.2(c) (Form of financial statements), the
Accounting Principles.

 

(b)           All the terms defined in Clause 21.1 (Financial
Covenants - Definitions) above are to be determined on a consolidated basis
(unless the contrary intention appears) as determined from the audited
consolidated annual financial statements of the Group or the quarterly
management accounts of the Group delivered pursuant to Clause 20.1 (Information
Covenants - Financial Statements), whichever is the more recent (but in the
latter case, subject to adjustment in the light of the audited consolidated
annual financial statements of the Group covering the same period when
released).

 

(c)           In each case where one of the terms defined in Clause
21.1 above and setting out a calculation to be applied on a consolidated basis
is to be calculated in relation to an individual company or companies, it shall
be calculated on the same principles as in that definition but on an
unconsolidated basis.

 

(d)           No item must be credited or deducted more than once in
any calculation under this Clause.

 

21.3        Consolidated Net Total Borrowings to
Consolidated Adjusted EBITDA

 

The Company must ensure that the ratio of Consolidated
Net Total Borrowings on each Quarter Date falling on a date or during a period
specified in column 1 below to Consolidated Adjusted EBITDA for the Measurement
Period ended on such Quarter Date shall not exceed the ratio set out in column
2 below opposite the relevant date or period.

 

	
  Column 1

  Date / Period

  	
   

  	
  Column 2

  Consolidated Net Total Borrowings:

  Consolidated Adjusted EBITDA

  	
   

  
	
  30th September, 2003

  	
   

  	
  4.80:1

  	
   

  
	
  31st December, 2003

  	
   

  	
  4.80:1

  	
   

  
	
  31st March, 2004

  	
   

  	
  4.80:1

  	
   

  
	
  30th June, 2004

  	
   

  	
  4.70:1

  	
   

  
	
  30th September, 2004

  	
   

  	
  4.60:1

  	
   

  
	
  31st December, 2004

  	
   

  	
  4.50:1

  	
   

  
	
  31st March, 2005

  	
   

  	
  4.45:1

  	
   

  
	
  30th June, 2005

  	
   

  	
  4.30:1

  	
   

  
	
  30th September, 2005

  	
   

  	
  4.20:1

  	
   

  
	
  31st December, 2005

  	
   

  	
  4.05:1

  	
   

  
	
  31st March, 2006

  	
   

  	
  3.95:1

  	
   

  

 

66

 

	
  Column 1

  Date / Period

  	
   

  	
  Column 2

  Consolidated Net Total Borrowings:

  Consolidated Adjusted EBITDA

  	
   

  
	
  The period from 1st April,
  2006 up to and including 31st March, 2007

  	
   

  	
  3.50:1

  	
   

  
	
  The period from 1st April,
  2007 up to and including 31st March, 2008

  	
   

  	
  3.10:1

  	
   

  
	
  The period from 1st April,
  2008 up to and including 31st March, 2009

  	
   

  	
  2.75:1

  	
   

  
	
  The period from 1st April,
  2009 up to and including 31st March, 2013

  	
   

  	
  2.50:1

  	
   

  

 

21.4        Interest Cover Ratio

 

The Company must ensure that the ratio of Consolidated
Adjusted EBITDA to Consolidated Net Interest Payable for each Measurement
Period ending on a Quarter Date falling on a date during a period specified in
Column 1 below shall not be less than the ratio set out in column 2 below
opposite the relevant date or period.

 

	
  Column 1

  Date / Period

  	
   

  	
  Column 2

  Consolidated Adjusted EBITDA:

  Consolidated Net Interest Payable

  	
   

  
	
  30th September, 2003

  	
   

  	
  2.65:1

  	
   

  
	
  31st December, 2003

  	
   

  	
  2.65:1

  	
   

  
	
  31st March, 2004

  	
   

  	
  2.65:1

  	
   

  
	
  30th June, 2004

  	
   

  	
  2.70:1

  	
   

  
	
  30th September, 2004

  	
   

  	
  2.75:1

  	
   

  
	
  31st December, 2004

  	
   

  	
  2.80:1

  	
   

  
	
  31st March, 2005

  	
   

  	
  2.90:1

  	
   

  
	
  30th June, 2005

  	
   

  	
  3.00:1

  	
   

  
	
  30th September, 2005

  	
   

  	
  3.15:1

  	
   

  
	
  31st December, 2005

  	
   

  	
  3.30:1

  	
   

  
	
  31st March, 2006

  	
   

  	
  3.50:1

  	
   

  
	
  The period from 1st April,
  2006 up to and including 31st March, 2007

  	
   

  	
  3.60:1

  	
   

  
	
  The period from 1st April,
  2007 up to and including 31st March, 2008

  	
   

  	
  3.95:1

  	
   

  
	
  The period from 1st April,
  2008 up to and including 31st March, 2009

  	
   

  	
  4.25:1

  	
   

  
	
  The period from 1st April,
  2009 up to and including 31st March, 2013

  	
   

  	
  4.50:1

  	
   

  

 

67

 

21.5        Capital Expenditure

 

The Company must ensure that in respect of each
financial year of the Group it will not, and will procure that no other member
of the Group will, incur Capital Expenditure which would cause the Capital
Expenditure of the Group to exceed the amount set out in column 2 below
opposite the relevant financial year of the Company, provided that 50 per cent.
of the amount of any such annual limit specified in column 2 below that is not
utilised in any financial year of the Company may be carried forward and added
(otherwise than for the purposes of the further application of this proviso) to
the Capital Expenditure limit for the next succeeding financial year only.

 

	
  Column 1

  Period

  	
   

  	
  Column 2

  Maximum Capital Expenditure

  	
   

  
	
   

  	
   

  	
  (€ million)

  	
   

  
	
  Financial year ending 31st March, 2004

  	
   

  	
  223,200,000

  	
   

  
	
  Financial year ending 31st March, 2005

  	
   

  	
  251,600,000

  	
   

  
	
  Financial year ending 31st March, 2006

  	
   

  	
  247,700,000

  	
   

  
	
  Financial year ending 31st March, 2007

  	
   

  	
  258,300,000

  	
   

  
	
  Financial year ending 31st March, 2008

  	
   

  	
  261,800,000

  	
   

  
	
  Financial year ending 31st March, 2009

  	
   

  	
  261,600,000

  	
   

  
	
  Financial year ending 31st March, 2010

  	
   

  	
  262,000,000

  	
   

  
	
  Financial year ending 31st March, 2011

  	
   

  	
  264,400,000

  	
   

  
	
  Financial year ending 31st March, 2012

  	
   

  	
  266,800,000

  	
   

  
	
  Financial year ending 31st March, 2013

  	
   

  	
  269,100,000

  	
   

  

 

21.6        Cashflow

 

The Company must ensure that the ratio of
Consolidated Cashflow to Consolidated Total Debt Service for each Measurement
Period shall not be less than 1.00:1.

 

21.7        Guarantor cover

 

(a)           The Company must ensure that the aggregate net assets,
turnover and Adjusted EBITDA of the Guarantors are not at any time less than 90
per cent. of the total net assets, turnover or Consolidated Adjusted EBITDA of
the Group.

 

(b)           For the purpose of this Clause:

 

(i)            the net assets, turnover and Adjusted EBITDA of a
Guarantor will be determined from its financial statements (unconsolidated if
it has Subsidiaries) based upon which the latest audited consolidated annual
financial statements of the Group have been prepared;

 

(ii)           if a company becomes a Guarantor after the date on
which the latest audited consolidated annual financial statements of the Group
have been prepared, the net assets, turnover and Adjusted EBITDA of that
Guarantor will be determined from its latest financial statements; and

 

68

 

(iii)          the net assets, turnover and Consolidated Adjusted
EBITDA of the Group will be determined from its latest audited consolidated
annual financial statements, adjusted (where appropriate) (A) to reflect the
gross assets and Adjusted EBITDA of any company or business which has
subsequently been disposed of or acquired and (B) by deducting the contribution
to such net assets, turnover and Consolidated Adjusted EBITDA of the Excluded
Companies.

 

22.          GENERAL COVENANTS

 

22.1        General

 

Each Obligor agrees to be bound by the
covenants set out in this Clause relating to it and, where the covenant is
expressed to apply to any Material Subsidiary or member of the Group, each
Obligor must ensure that each of its Material Subsidiaries or, where the
relevant covenant is expressed to apply to each member of the Group, its
Subsidiaries performs that covenant.

 

22.2        Authorisations

 

(a)           Each Obligor must promptly obtain, maintain and comply
with the terms of any authorisation required under any law or regulation to
enable it to perform its obligations under, or for the validity or
enforceability of, any Finance Document.

 

(b)           Each member of the Group must promptly obtain,
maintain and comply with the terms of any authorisation required under any law
or regulation to enable it to carry on its business where failure to do so
would have a Material Adverse Effect.

 

22.3        Compliance with laws

 

Each Obligor and each Material Subsidiary
must comply in all respects with all laws to which it is subject where failure
to do so would have a Material Adverse Effect.

 

22.4        Pari passu ranking

 

Each Obligor must ensure that its payment
obligations under the Finance Documents rank at least pari passu with all its
other present and future unsecured unsubordinated payment obligations, except
for obligations mandatorily preferred by law applying to companies generally.

 

22.5        Negative pledge

 

(a)           Except as provided below, no member of the Group may
create or allow to exist any Security Interest on any of its assets.

 

(b)           Paragraph (a) does not apply to:

 

(i)            any Security Interest created or evidenced by the
Combined Security Documents (as defined in the Intercreditor Agreement);

 

(ii)           any Security Interest referred to in Schedule 6
(Existing Security), except, where an amount is stated, to the extent the
principal amount secured by that Security Interest exceeds the amount stated in
that Schedule;

 

69

 

(iii)          any Security Interest comprising a netting or set-off
arrangement entered into by a member of the Group in the ordinary course of its
banking arrangements for the purpose of netting debit and credit balances;

 

(iv)          any lien arising by operation of law and in the
ordinary course of trading;

 

(v)           any Security Interest already existing on an asset, or
an asset of any person, acquired by a member of the Group after the date of
this Agreement but only for the period of six months from the date of
acquisition and to the extent that the principal amount secured by that
Security Interest has not been incurred or increased in contemplation of, or
since, the acquisition;

 

(vi)          any Security Interest granted in respect of pre-judgment
legal process or judgment relating to security for costs, in each case where
the relevant proceedings are being contested in good faith by the relevant
party;

 

(vii)         any Security Interest securing Taxes which are not
overdue;

 

(viii)        any Security Interest given pursuant to Clause 7.1(c)(iii) (Documentary
Credits);

 

(ix)           any Security Interest for which the relevant company
has the prior written consent of the Majority Lenders;

 

(x)            any retention of title to goods supplied to any member
of the Group in the ordinary course of its trading activities securing
obligations not more than 90 days overdue (but excluding for the avoidance of
doubt any vendor financing arrangements not permitted pursuant to this
Agreement);

 

(xi)           any Security Interest created over real property owned
by the Group (other than the real property mortgaged under the Debentures and
which is specifically referred to in the Second Schedule thereto) to secure
finance for the development of the real property over which the Security
Interest is created, provided that the aggregate principal amount secured by
all such Security Interests may not exceed €10,000,000;

 

(xii)          any Security Interest created over St. John’s Road;

 

(xiii)         any Security Interest created over any real property
which has been transferred to or otherwise vested in a Joint Venture in
accordance with Clause 22.11(b)(B) or (C) (Mergers, Acquisitions and Joint
Ventures) or over the assets of a Joint Venture with no material assets other
than such real property, in each case to secure finance for the development of
the real property over which the Security Interest is created;

 

(xiv)        any netting of payments under Permitted Treasury Transactions (as
defined in Clause 22.13); and

 

(xv)         any Security Interest (not being over any asset subject
to any Security Interest under the Security Documents) securing that member of
the Group’s own indebtedness which (when taken together with any other
indebtedness which has the benefit of a Security Interest not permitted under
the preceding sub-paragraphs) and together with the aggregate amount of
indebtedness permitted under paragraph (d) below, does not exceed €25,000,000.

 

70

 

(c)           No member of the Group may:

 

(i)            sell, transfer or otherwise dispose of any of its
assets on terms where it is or may be leased to or re-acquired or acquired by a
member of the Group or any of its related entities; or

 

(ii)           sell, transfer or otherwise dispose of any of its
receivables on recourse terms,

 

in circumstances where the transaction is
entered into primarily as a method of raising Financial Indebtedness or of
financing the acquisition of an asset.

 

(d)           Any member of the Group may enter into transactions
otherwise prohibited by sub-paragraphs (c)(i) and (ii) above so long as
the aggregate amount of outstanding indebtedness of the Group in respect of all
such transactions at any time, together with the aggregate amount of all
outstanding indebtedness secured by Security Interests permitted under Clause
25.5(b)(xv) (Negative Pledge) at that time, does not exceed €25,000,000.

 

22.6        Disposals

 

(a)           Except as provided below, no member of the Group may,
either in a single transaction or in a series of transactions and whether
related or not, dispose of all or any part of its assets.

 

(b)           Paragraph (a) does not apply to any disposal:

 

(i)            of stock in the ordinary course of business of the disposing
entity;

 

(ii)           of assets in exchange for other assets (not being cash
and Cash Equivalents) comparable or superior as to type, value and quality on
arm’s length terms;

 

(iii)          of obsolete or redundant property, plant and equipment
not required for the operation of its business, on arm’s length terms;

 

(iv)          arising from:

 

(A)          the sharing or lease, license or granting of other
right relating to a telecommunications network asset in the ordinary course of
business on arm’s length terms; or

 

(B)           entry into telecommunications infrastructure sharing
agreements in the ordinary course of business on arm’s length terms;

 

(v)           consisting of leases, sub-leases or licences on arm’s
length terms over real property in the ordinary course of business of the
disposing entity;

 

(vi)          to an Obligor or by a Non-Obligor to another
Non-Obligor;

 

(vii)         by way of sale, disposal or discounting of receivables
on arm’s length terms as part of the day-to-day collection activities of the
Group and not as a means of raising finance;

 

(viii)        of land which is surplus to requirements of the disposing entity on
arm’s length terms;

 

(ix)           pursuant to or in connection with an outsourcing of
the Group’s information technology function, provided that all such
outsourcings may not involve the transfer of ownership of assets with an
aggregate value in excess of €1,000,000 (or its equivalent) during the life of
the Facilities;

 

71

 

(x)            consisting of any initial public offering listing,
public offering or flotation of any member of the Group (subject to compliance
with the terms of Clause 10.6 (Mandatory prepayment - debt and equity issues));

 

(xi)           of Cash Equivalents:

 

(A)          for cash; or

 

(B)           in exchange for other Cash Equivalents;

 

(xii)          of any asset to a Joint Venture to the extent
permitted by Clause 22.11 (Mergers, Acquisitions and Joint Ventures);

 

(xiii)         of St. John’s Road (or any part thereof);

 

(xiv)        on arm’s length terms of real property held by a Joint Venture, where
the real property disposed of was transferred to or otherwise vested in the
Joint Venture in accordance with Clause 22.11(b)(B) or (C);

 

(xv)         on arm’s length terms of the shares in a Joint Venture
established for the principal purpose of the development of real property,
where the only material assets of that Joint Venture is real property
transferred or otherwise vested in that Joint Venture in accordance with Clause
22.11(b)(B) or (C);

 

(xvi)        where the higher of the market value or consideration receivable (when
aggregated with the higher of the market value or consideration for any other
disposal not allowed under the preceding sub-paragraphs) does not exceed
€20,000,000 (or its equivalent) in any financial year of the Company and does
not exceed €75,000,000 (or its equivalent) during the life of the Facilities;
or

 

(xvii)       with the prior consent of the Majority Lenders.

 

22.7        Liabilities

 

(a)           Borrowing and
refinancing:

 

No Obligor will, and each Obligor will
procure that none of its Subsidiaries will, incur or permit to remain outstanding
any Financial Indebtedness falling within paragraphs (a) to (i) of the
definition of Financial Indebtedness in Clause 1.1 (Definitions), other
than:

 

(i)            under and on the terms of the Finance Documents and,
until the first Utilisation Date, the Existing Facility; or

 

(ii)           any Financial Indebtedness permitted in writing by the
Majority Lenders; or

 

(iii)          any Financial Indebtedness as is permitted by Clause
22.14 (Loans out) or Clause 22.7(b) (Third party guarantees); or

 

(iv)          any such Financial Indebtedness to the extent covered
by a Documentary Credit made available under this Agreement; or

 

(v)           any such Financial Indebtedness falling within
paragraph (g) of the definition thereof under Permitted Treasury Transactions
(as defined in Clause 22.13); or

 

72

 

(vi)           any such Financial Indebtedness between two Obligors;
or

 

(vii)         Financial Indebtedness arising under the Indentures or
any other Indenture Document provided that (A) the aggregate principal amount
of all such Financial Indebtedness arising under the Senior High Yield
Indenture or any other Senior Indenture Document does not at any time exceed €550,000,000;
and (B) the aggregate principal amount of all such Financial Indebtedness
arising under the Junior High Yield Indenture or any other Junior Indenture
Document does not at any time exceed the aggregate of €285,000,000 and
US$250,000,000; or

 

(viii)        any Investor Debt; or

 

(ix)           any Financial Indebtedness under the ITI Loan Stock
and the EIB Loan (to the extent the principal amount of such Financial
Indebtedness is not more than the Refinancing Reserve); or

 

(x)            any Financial Indebtedness incurred in connection with
performance bonds granted in connection with repayable works orders which in
aggregate do not exceed €15,000,000 or its equivalent at any time; or

 

(xi)           any Financial Indebtedness incurred between a member
of the Group and a Joint Venture to the extent permitted by Clause 22.11
(Mergers, Acquisitions and Joint Ventures); or

 

(xii)          any Financial Indebtedness secured by a Security
Interest permitted by Clause 22.5(b)(xi), (xii) or (xiii), provided that the
relevant creditor’s recourse in respect of such Financial Indebtedness against
any member of the Group is limited to the assets the subject of that Security
Interest; or

 

(xiii)         any Financial Indebtedness outstanding on the date of
this Agreement and incurred between an Obligor and a Non-Obligor the
details of which are set out in Schedule 12 (Existing Group Indebtedness); or

 

(xiv)        any Financial Indebtedness under the documentation entered into or to
be entered into in relation to those finance leases, related transactions and
the financing thereof (including any letters of credit and reimbursement
agreements or their replacement (on terms which do not increase the Group’s
Financial Indebtedness) referred to in the Reports) identified in Schedule 6;
or

 

(xv)         any Financial Indebtedness under those existing
overdraft facilities of the Group and their replacement facilities in an
aggregate amount not exceeding €30,000,000; or

 

(xvi)        Financial Indebtedness which (when taken together with the aggregate
amount of Financial Indebtedness permitted under Clause 22.7(b)(x) below) in
aggregate does not exceed €20,000,000 or its equivalent at any time.

 

(b)           Third party guarantees:

 

No Obligor will, and each Obligor will
procure that none of its Subsidiaries will, incur or permit to be outstanding,
any Financial Indebtedness falling within paragraph (j) of the definition of Financial
Indebtedness in Clause 1.1 (Definitions), other than any such
Financial Indebtedness:

 

(i)            arising under the Finance Documents; or

 

73

 

(ii)           arising in the ordinary course of business of the
relevant member of the Group; or

 

(iii)          arising out of guarantees of Joint Ventures to the
extent permitted by Clause 22.11 (Mergers, Acquisitions and Joint Ventures); or

 

(iv)          arising out of guarantees and indemnities given by an
Obligor in respect of Financial Indebtedness of another Obligor where the
Financial Indebtedness guaranteed or indemnified is permitted under the terms
of this Agreement; or

 

(v)           Group Guarantees entered into or to be entered into in
future in respect of members of the Group whose liabilities and losses are
already guaranteed by a Group Guarantee as at the date of this Agreement; or

 

(vi)          arising out of the guarantees of the High Yield Notes,
provided that:

 

(A)          no member of the Group which is not a Guarantor may
guarantee any High Yield Notes or any other amount outstanding under an Indenture
Document; and

 

(B)           all guarantees given by the Company and its
Subsidiaries (including, for the avoidance of doubt, eircom) for the Junior
High Yield Notes must be subordinated on the terms set out in the Junior High
Yield Indenture, as approved by the Facility Agent under Clause 4.1 (Conditions
precedent documents); or

 

(vii)         arising out of the eircom Funding Guarantee; or

 

(viii)        arising under the documentation entered into in relation to those
finance leases, related transactions and the financing thereof (including any
letters of credit and reimbursement agreements or their replacements)
identified in Schedule 6; or

 

(ix)           arising under those guarantees granted by eircom in
respect of (a) the rent and other lease liabilities in respect of the William
Ritchie Building; and (b) the lease liabilities in respect of a US property
between Reckson Operating Partnership L.P. and Telecom Italia US Ireland; or

 

(x)            which (when taken together with the aggregate amount
of Financial Indebtedness permitted under Clause 22.7(a)(xvi) above) in
aggregate does not exceed €20,000,000 or its equivalent at any time,

 

and for the avoidance of doubt (and without
limitation) paragraphs (i) to (iv) above shall not permit any Financial
Indebtedness falling within paragraph (j) of the definition of Financial
Indebtedness in Clause 1.1 in respect of any Investor Debt or any
Financial Indebtedness in respect of which the creditor has used the proceeds
of any Investor Debt to make that Financial Indebtedness available.

 

22.8        Arm’s length terms

 

No member of the Group may enter into any
material transaction with any person otherwise than on arm’s length terms, save
for:

 

(a)           loans between members of the
Group; and

 

(b)           other transactions between
Obligors and Non-Obligors,

 

74

 

which are permitted by the terms of the Finance
Documents, provided that such transaction does not result in the transfer of
any asset from an Obligor to a Non-Obligor or the creation of any indebtedness
between an Obligor and a Non-Obligor, except as permitted by the Finance
Documents.

 

22.9        Change of business

 

The Company must ensure that no substantial
change is made to the general nature of the business of the Company or the
Group from that carried on at the date of this Agreement.

 

22.10      Ownership of the Obligors

 

The Company must ensure that:

 

(a)           it remains the Holding Company
of each other Obligor;

 

(b)           for as long as eircom Funding
is an unlimited company:

 

(i)            all the issued share capital
of eircom Funding is owned by eircom Funding Holdco and the Nominees; and

 

(ii)           eircom Funding Holdco is and
remains a limited liability company which is a direct, wholly owned Subsidiary
of the Company.

 

22.11      Mergers, Acquisitions and Joint Ventures

 

(a)           No Obligor will, and each Obligor will procure that
none of its Subsidiaries will enter into any amalgamation, demerger, merger,
reconstruction or consolidation, save for any internal reorganisation for tax
purposes approved by the Facility Agent acting on the instructions of the
Majority Lenders (such approval not to be unreasonably withheld).

 

(b)           No Obligor will, and each Obligor will procure that
none of its Subsidiaries will:

 

(i)            acquire any shares, stock, securities or other
interest in any other company or business or Joint Venture;

 

(ii)           transfer any assets to, or lend to or guarantee the
obligations of any Joint Venture; or

 

(iii)          commit to any third party to enter into any Joint
Venture or become party to any joint venture agreement or arrangement, where it
has any obligation (whether to such Joint Venture or to any other person, and
whether actual or contingent) to lend to or guarantee or transfer assets to or
otherwise fund or incur any liability in respect of such Joint Venture or any
other person or to acquire any shares in or assets of such Joint Venture,

 

in each
case other than:

 

(A)          any entry into, any acquisition of shares or other
interest in, investment in, transfer of assets to, lending to, guarantee of or
granting of an indemnity in respect of a Joint Venture established for the
principal purpose of effecting an outsourcing on arm’s length commercial terms
of the Group’s information technology function, provided that the aggregate
amount invested in or paid to acquire any shares or interest in, or value of
assets transferred to, or lent to or the actual or contingent liability under
any guarantee or indemnity of the

 

75

 

obligations
of such a Joint Venture may not exceed €10,000,000 (or its equivalent) in
aggregate during the life of the Facilities; and

 

(B)           any acquisition of shares or other interest in,
investment in, transfer of assets to (excluding, for the avoidance of doubt,
any transfers of real property permitted under sub-paragraph (C) below),
lending to, guarantee of or granting of an indemnity in respect of the
obligations of a Joint Venture (including any existing Joint Venture)
established for the principal purpose of the development of real property (or
properties), provided that the aggregate amount invested in or paid to acquire
any shares or interest in, or value of assets transferred to, or lent to or the
actual or contingent liability under any guarantee or indemnity of the
obligations of any Joint Venture (other than the Joint Venture established
under paragraph (A) above) does not exceed €20,000,000 in aggregate over the
life of the Facilities (net of any cash repayment of loans or the release of
any guarantee or indemnity made to any such Joint Venture to the extent the
making of such loans or, as the case may be, the grant of such guarantee or
indemnity has reduced the available amount under such €20,000,000 limit); and

 

(C)           any transfer of real property to a Joint Venture
permitted under Clause 22.6(b)(iii) (Disposals); and

 

(D)          any transaction the value of which, when aggregated
with the value of any other transactions under this sub-paragraph (D),
would not exceed €150,000,000 (or its equivalent in another currency or
currencies) until the Tranche C Final Maturity Date provided that no Event of
Default under Clause 23.3(a) (Breach of other obligations) is outstanding at
the time of such transaction or would arise
immediately following such transaction, were the financial covenants contained
in Clause 21 (Financial Covenants) to be tested immediately after entering into
such transaction and taking account of the effect of the transaction on the financial
covenants on a pro forma basis.

 

22.12      Environmental matters

 

(a)           Each Obligor must ensure that it and each Material
Subsidiary is, and has been, in compliance with all Environmental Law and
Environmental Approvals applicable to it, where failure to do so would have a
Material Adverse Effect.

 

(b)           Each Obligor must promptly upon becoming aware notify
the Facility Agent of:

 

(i)            any Environmental Claim current, or to its knowledge,
pending or threatened; or

 

(ii)           any circumstances reasonably likely to result in an
Environmental Claim,

 

which, if substantiated would have a
Material Adverse Effect or result in any material liability for a Finance
Party.

 

(c)           Each Obligor must indemnify each Finance Party against
any loss or liability incurred by that Finance Party as a result of any actual
or alleged breach of any Environmental Law by any person which relates to the
Group, any assets of the Group or the operation of all or part of the business
of the Group (or, in each case, any member of the Group), and which would not
have arisen if a Finance Document had not been entered into, unless it is
caused by that Finance Party’s gross negligence or wilful misconduct.

 

76

 

22.13      Treasury Transactions

 

(a)           No member of the Group may enter into any Treasury
Transaction, other than:

 

(i)            the hedging transactions contemplated by the Hedging
Letter and documented by the Hedging Documents;

 

(ii)           spot foreign exchange contracts entered into in the
ordinary course of business; and

 

(iii)          any Treasury Transaction entered into for the hedging
of actual or projected exposures arising in the ordinary course of trading
activities of a member of the Group,

 

(each a Permitted Treasury Transaction).

 

(b)           The Company must ensure that the interest rate and
currency hedging arrangements contemplated in the Hedging Letter are
implemented in accordance with the terms of the Hedging Letter.

 

22.14      Loans out

 

(a)           Except as provided below, no member of the Group may
be the creditor in respect of any Financial Indebtedness.

 

(b)           Paragraph (a) does not apply to:

 

(i)            trade credit extended by any member of the Group on
normal commercial terms and in the ordinary course of its trading activities;

 

(ii)           a loan made by one member of the Group (other than
eircom Funding or eircom Funding Holdco) to another member of the Group if the
recipient of the loan is an Obligor;

 

(iii)          a loan made from a member of the Group which is not an
Obligor to another member of the Group which is also not an Obligor;

 

(iv)          the eircom Funding Loan;

 

(v)           the ESOT Loan;

 

(vi)          a loan made from a member of the Group to a Joint
Venture to the extent permitted by Clause 22.11 (Mergers, Acquisitions and
Joint Ventures);

 

(vii)         a loan made by way of a Permitted Distribution;

 

(viii)        a loan comprising a cash-pooling arrangement entered into by a member
of a Group in the ordinary course of its banking arrangements for the purpose
of netting debt and credit balances or;

 

(ix)           loans from one member of the Group to another member
of the Group made prior to the date of this Agreement, the details of which are
set out in Schedule 12 (Existing Group Indebtedness).

 

77

 

22.15      Cash Balances of Group members

 

The Company will procure that no member of the Group
other than an Obligor holds in bank any cash balance which, when aggregated
with all other amounts so held by other members of the Group (excluding
Obligors), at any time exceeds €15,000,000.

 

22.16      Share capital

 

(a)           Except as provided below, no member of the Group may:

 

(i)            redeem, repurchase, defease, retire or repay any of
its share capital or resolve to do so; or

 

(ii)           issue any shares which by their terms are redeemable
(other than the ESOT Preference Shares or shares which are redeemable only
after the Tranche C Final Maturity Date).

 

(b)           Paragraph (a) does not apply to:

 

(i)            any transaction expressly allowed under the Finance
Documents; or

 

(ii)           any transaction in respect of which the relevant share
capital is held by an Obligor and is mortgaged or charged under a Security
Document; or

 

(iii)          the repurchase or redemption of shares in the Company
where such repurchase or redemption is funded entirely out of the proceeds for
the issue of shares of the same class and with the same nominal value in the
capital of the Company; or

 

(iv)          a Permitted Distribution and/or the cancellation for
no consideration of any share capital of the Company so as to facilitate a
Permitted Distribution.

 

22.17      Dividends

 

(a)           The Company may not:

 

(i)            declare, make or pay any dividend (or interest on any
unpaid dividend), charge, fee or other distribution (whether in cash or in
kind) on or in respect of its share capital (or any class of its share
capital);

 

(ii)           repay or distribute any dividend or share premium
reserve; or

 

(iii)          pay or allow any member of the Group to pay any
management, advisory or other fee to or to the order of the direct or indirect
shareholders of the Company or any person connected with such direct or
indirect shareholders.

 

(b)           Paragraph (a) does not apply to:

 

(i)            payments or distributions from a member of the Group
to another member of the Group other than to eircom Funding or eircom Funding
Holdco;

 

(ii)           a Permitted Distribution; or

 

(iii)          any transaction expressly permitted under the Finance
Documents.

 

78

 

22.18      Investor Debt

 

No member of the Group may:

 

(a)           pay any interest in respect of
any Investor Debt, but this shall not prevent the capitalisation of such
interest; or

 

(b)           repay or prepay any amount of
principal (or capitalised interest) of or in respect of any Investor Debt or
purchase or enter into any sub-participation arrangement in respect of any
Investor Debt,

 

except to the extent the same is a
Permitted Distribution or is allowed by the terms of the Intercreditor
Agreement.

 

22.19      Intellectual property rights

 

(a)           Except as provided below, each member of the Group
must:

 

(i)            make any registration and pay any fee or other amount
which is necessary to keep the Intellectual Property Rights which are material
to the business of a member of the Group in force;

 

(ii)           record its interest in those Intellectual Property
Rights;

 

(iii)          take such steps as are necessary and commercially
reasonable (including the institution of legal proceedings) to prevent third
parties infringing those Intellectual Property Rights; and

 

(iv)          not enter into licence arrangements in respect of
those rights, save where failure to comply would not have a Material Adverse
Effect.

 

(b)           Paragraph (a) does not apply to:

 

(i)            licence arrangements entered into with members of the
Group for so long as they remain members of the Group; or

 

(ii)           licence arrangements entered into on commercial terms
in the ordinary course of its business.

 

22.20      Insurance

 

(a)           In this Clause, prudent owner means an owner and operator
of any business, and of assets of a type and size, similar in all cases to
those owned and operated by the relevant member of the Group in a similar
location in each case in accordance with good industry practice.

 

(b)           Each member of the Group must maintain insurances
which insure it for its insurable interest in respect of all risks and to the
extent:

 

(i)            which are required to be insured against under any
applicable law or regulation; or

 

(ii)           which a prudent owner would insure against.

 

(c)           All insurance policies of the Group must be with
reputable independent insurance companies or underwriters.

 

79

 

(d)           Without prejudice to paragraph (a) above, each member
of the Group must maintain insurance against business interruption, loss of
profits, professional indemnity, accidental pollution and public liability:

 

(i)            at levels no lower than those (if any) in place prior
to the date of this Agreement; and

 

(ii)           taking into account the availability of such insurance
generally.

 

(e)           Each member of the Group must promptly pay any premium
and do anything necessary to keep in place the insurances required to be
maintained by it under this Subclause.

 

(f)            Each Obligor must promptly supply to the Facility
Agent on request copies of any insurance policy required to be maintained by it
or any member of the Group which is its Subsidiary under this Subclause.

 

22.21      Pension schemes

 

The Company will ensure that all pension
schemes operated by members of the Group are funded in all material respects
based on reasonable actuarial assumptions and are maintained and operated in
all respects in conformity with the requirements of applicable law, save where
failure to do so would not have a Material Adverse Effect.

 

22.22      Syndication

 

(a)           Each Obligor shall, and shall procure that each
Material Subsidiary shall:

 

(i)            provide all reasonable assistance to the Facility
Agent and the Original Lenders in the preparation of the Information Memorandum
for primary syndication of the Facilities, including but not limited to the
preparation of the Information Memorandum; and

 

(ii)           comply with all reasonable requests for information
from the Facility Agent made on behalf of potential syndicate members in
connection with primary syndication of the Facilities where such information is
reasonably obtainable and subject to any applicable duty of confidentiality or
non-disclosure binding on that Obligor or, as the case may be, Material
Subsidiary.

 

(b)           The Company will procure that its executive officers
give a presentation to potential syndicate members on the business and
financial performance of the Group at a time and venue agreed with the Facility
Agent (acting reasonably), such presentation to include comprehensive forecasts
and projections for all areas of the Group’s business covering the period from
the date of such presentation to the Tranche C Final Maturity Date.

 

22.23      Inter-company debt

 

No member of the Group which is the
creditor in respect of any Financial Indebtedness of any other member of the
Group may take any action to cause that Financial Indebtedness to become due or
to be paid unless the other member of the Group has sufficient readily
available cash to pay the sum which is due or demanded.

 

22.24      eircom Funding

 

Notwithstanding any other provision of this
Clause 22, the Company must ensure that, except as permitted by the
Intercreditor Agreement, no member of the Group:

 

80

 

(a)           makes any distribution;

 

(b)           declares, makes or pays any
dividend;

 

(c)           makes any payment on or in
respect of any Financial Indebtedness owed by that member of the Group to
eircom Funding or eircom Funding Holdco (including but not limited to, the
eircom Funding Loan);

 

(d)           transfers any asset; or

 

(e)           makes any other payment,

 

to eircom Funding or eircom Funding Holdco.

 

22.25      Certain Companies

 

(a)           The Company must not, and must ensure that eircom
Funding and eircom Funding Holdco do not carry on any business, own any assets
or, in the case of eircom Funding only, incur any material liability, other
than;

 

(i)            (in the case of the Company) the ownership
of shares in the capital of eircom and eircom Funding Holdco;

 

(ii)           (in the case of eircom Funding Holdco) the
ownership of shares in the capital of eircom Funding and the Nominees;

 

(iii)          (in the case of eircom Funding) the entry
into of any Indenture Document to which it is a party and all matters
contemplated therein;

 

(iv)          (in the case of the Company) the provision
of administration services to other members of the Group;

 

(v)           incurring Financial Indebtedness to the
extent expressly allowed by the Finance Documents;

 

(vi)          the entry into of those Finance Documents
to which it is a party and all matters contemplated therein;

 

(vii)         (in the case of eircom Funding and the
Company) the entry into the eircom Funding Loan and the eircom Funding Loan
Agreement and all matters contemplated therein; and

 

(viii)        (in the case of the Company) the making of
loans to ESOT as expressly provided for in the Finance Documents; and

 

(ix)           Permitted Distributions.

 

(b)           The Company must ensure that Lercie Limited shall not
carry on any business, own any assets or incur any material liability, save in
respect of those finance lease transactions to which it is a party referred to
in Schedule 6 (Existing Security).

 

81

 

22.26      Amendments to documents

 

(a)           No member of the Group may amend its memorandum or
articles of association or other constitutional document (save to the extent
necessary or desirable to facilitate and/or enable or as a consequence of the
payment of any Permitted Distribution and the funding arrangements of the Group
contemplated in this Agreement or under the terms of the Indentures or any
other Indenture Document) which in any such case is reasonably likely to affect
materially and adversely the interests of the Lenders under the Finance
Documents.

 

(b)           The Company must ensure that no member of the Group
may agree to any amendment of or in relationship to the High Yield Notes (or
any Indentures or any other Indenture Document) the effect of which would be
to:

 

(i)            bring forward the date for any principal payment in
respect of any of the High Yield Notes;

 

(ii)           increase the rate of interest payable on the Senior
High Yield Notes or the Junior High Yield Notes or (except as expressly
provided for in the existing provisions of the Indenture Documents as of the
date of this Agreement (including, for the avoidance of doubt, the accession of
any additional guarantors thereunder as permitted under Clause 22.7(b)(vi)))
introduce any additional payment obligations for any member of the Group in
respect of the High Yield Notes;

 

(iii)          change the terms of the guarantees for the Junior High
Yield Notes (including, without limitation, the terms of subordination of the
guarantees and the provisions for the release of the guarantees) in any way
which could reasonably be expected to adversely affect the interests of the
Finance Parties; or

 

(iv)          make the terms of the Senior High Yield Notes or the
Junior High Yield Notes materially more restrictive for the Group when compared
with the form of High Yield Notes approved by the Facility Agent under Clause
4.1 (Conditions Precedent Documents).

 

22.27      Access

 

(a)           Upon reasonable notice being given by the Facility
Agent, each member of the Group must allow any one or more representatives of
the Facility Agent and/or accountants or other professional advisers appointed
by the Facility Agent (at the Company’s risk and expense) to have access during
normal business hours to the assets, books and records of that member of the
Group.

 

(b)           The Facility Agent may not give notice under paragraph
(a) above unless a Default is outstanding.

 

22.28      Limitation on restrictions affecting
movement of cash Intra-Group

 

(a)           No member of the Group may agree to any restriction on
its ability to move cash to another member of the Group, whether by way of
dividend, inter-company loan or otherwise.

 

(b)           Paragraph (a) above does not apply to any restriction
contained in:

 

(i)            a Finance Document;

 

82

 

(ii)           the constitutional documents of a member of the Group
delivered to the Facility Agent as a documentary condition precedent under this
Agreement; or

 

(iii)          documentation relating to the High Yield Notes in the
form approved by the Facility Agent under Clause 4.1 (Conditions precedent
documents).

 

22.29      Repayment of ESOT Loan

 

The Company shall procure that the ESOT
Loan is repaid in full within one Business Day of (i) the redemption of any
ESOT Preference Shares as contemplated by paragraph (a) of the definition of
Permitted Distribution, or (ii) the payment of any accrued dividend on the
Preference Shares under paragraph (c) of the definition of Permitted
Distribution.

 

22.30      Redemption of High Yield Notes

 

(a)           No member of the Group may purchase any High Yield
Notes or redeem, defease or repay any principal amount in respect of any of the
High Yield Notes.

 

(b)           Neither the Company nor eircom will (and the Company
will procure that no other member of the Group which has acceded to the Junior
Indenture as an additional note guarantor) will make any payment on their
guarantees of the Junior Notes set out in the Junior Indenture if such payment
will result in a breach of the subordination terms set out in Article XI of the
Junior Indenture.

 

23.          DEFAULT

 

23.1        Events of Default

 

(a)           Each of the events set out in this Clause is an Event
of Default.

 

(b)           In this Clause:

 

Material Group Member means an Obligor or a
Material Subsidiary; and

 

Permitted Transaction means:

 

(i)            an intra-Group re-organisation of a
Material Subsidiary on a solvent basis; or

 

(ii)           any other transaction agreed by the
Majority Lenders.

 

23.2        Non-payment

 

An Obligor does not pay on the due date any
amount payable by it under the Finance Documents in the manner required under
the Finance Documents, unless the non-payment:

 

(a)           is caused by technical or
administrative error; and

 

(b)           is remedied within three
Business Days of the due date.

 

23.3        Breach of other obligations

 

(a)           An Obligor does not comply with any term of Clause 21
(Financial covenants); or

 

(b)           an Obligor does not comply with any other term of the
Finance Documents not already referred to in this Clause, unless the
non-compliance:

 

83

 

(i)            is capable of remedy; and

 

(ii)           is remedied within 20 Business Days of the earlier of
the Facility Agent giving notice and the Obligor becoming aware of the
non-compliance.

 

23.4        Misrepresentation

 

A representation made or repeated by an
Obligor in any Finance Document or in any document delivered by or on behalf of
any Obligor under any Finance Document is incorrect in any material respect
when made or deemed to be repeated, unless the circumstances giving rise to the
misrepresentation:

 

(a)           are capable of remedy; and

 

(b)           are remedied within 20
Business Days of the earlier of the Facility Agent giving notice and the
Obligor becoming aware of the misrepresentation.

 

23.5        Cross-default

 

Any of the following occurs in respect of a
Material Group Member or eircom Funding:

 

(a)           any of its Financial
Indebtedness is not paid when due (after the expiry of any applicable grace
period in effect at the time at which such payment was originally due but not
paid);

 

(b)           any of its Financial
Indebtedness:

 

(i)            becomes prematurely due and
payable before its stated maturity;

 

(ii)           is placed on demand; or

 

(iii)          is capable of being declared
by a creditor to be prematurely due and payable or being placed on demand (but
only to the extent it remains capable of being so declared or placed on
demand),

 

in each case, because an event of default
(howsoever described) has occurred,

 

unless the aggregate amount of Financial
Indebtedness falling within paragraphs (a) and (b) above is less than
€20,000,000 or its equivalent.

 

23.6        Insolvency

 

Any of the following occurs in respect of a
Material Group Member:

 

(a)           it is, or is deemed for the
purposes of any law to be, unable to pay its debts as they fall due or
insolvent, in each case within the meaning of s123(l)(e) of the Insolvency Act
1986 or s214(c) of the Companies Act 1963 of Ireland or any analogous provision
in any other relevant jurisdiction;

 

(b)           it admits its inability to pay
its debts as they fall due;

 

(c)           it suspends making payments on
any class of its debts or announces an intention to do so;

 

84

 

(d)           by reason of actual or
anticipated financial difficulties, it begins negotiations with all or any
class of creditor or creditors generally for the rescheduling of any of its
indebtedness; or

 

(e)           a moratorium is declared in
respect of any of its indebtedness.

 

If a moratorium occurs in respect of any
Material Group Member, the ending of the moratorium will not remedy any Event
of Default caused by the moratorium.

 

23.7        Insolvency proceedings

 

(a)           Except as provided below, any of the following occurs
in respect of a Material Group Member:

 

(i)            any formal or legal step is taken with a view to a composition,
assignment or similar arrangement with any of its creditors;

 

(ii)           a meeting of its shareholders is convened for the
purpose of considering any resolution for (or to petition for) its winding-up,
examination, administration or dissolution or any such resolution is passed;

 

(iii)          any person presents a petition for its winding-up,
examination, administration or dissolution;

 

(iv)          an order for its winding-up, examination,
administration or dissolution is made;

 

(v)           any liquidator, trustee in bankruptcy, judicial
custodian, compulsory manager, receiver, examiner, administrative receiver,
administrator or similar officer is appointed in respect of it or a material
part of its assets;

 

(vi)          its directors or other officers request the
appointment of a liquidator, trustee in bankruptcy, judicial custodian,
compulsory manager, receiver, examiner, administrative receiver, administrator
or similar officer; or

 

(vii)         any other analogous step or procedure is taken in any
jurisdiction.

 

(b)           Paragraph (a) does not apply to:

 

(i)            any step or procedure which is part of a Permitted
Transaction; or

 

(ii)           a petition or document referred to in paragraph
(a)(iii) above for winding-up, examination, administration or dissolution
presented by a person other than the directors, officers or shareholders of the
relevant company which is being contested in good faith and with due diligence
and which is discharged or struck out within twenty Business Days.

 

23.8        Creditors’ process

 

Any attachment, sequestration, distress,
execution or analogous event affects any asset(s) of a Material Group Member,
having an aggregate value of €1,000,000, and is not discharged within 21 days.

 

85

 

23.9        Cessation of business

 

A Material Group Member ceases, or
threatens to cease, to carry on business except:

 

(a)           as part of a Permitted
Transaction;

 

(b)           as a result of any disposal
allowed under this Agreement; or

 

(c)           where such cessation of
business would not have a Material Adverse Effect.

 

23.10      Effectiveness of Finance Documents

 

(a)           It is or becomes unlawful for any Obligor to perform
any of its material obligations under the Finance Documents.

 

(b)           Any Finance Document (other than a Hedging Security
Document) is not effective in a material respect or any Finance Document is
alleged by an Obligor to be ineffective for any reason.

 

(c)           A Security Document (other than a Hedging Security
Document) does not create the security it purports to create, except to the
extent that any purported fixed charge takes effect as a floating charge.

 

(d)           An Obligor repudiates a Finance Document or evidences
an intention to repudiate a Finance Document.

 

23.11      Ownership of the Obligors

 

(a)           Subject to (b) below, an Obligor (other than the
Company and other than as a result of a disposal permitted under Clause 22.6
(Disposals)) is not or ceases to be a Subsidiary of the Company.

 

(b)           eircom is not or ceases to be a direct wholly-owned
Subsidiary of the Company.

 

23.12      Intercreditor Agreement

 

(a)           (i)            Any member of the Group which is party to the
Intercreditor Agreement does not perform its obligations under the
Intercreditor Agreement; or

 

(ii)           a representation or warranty given by such a party in
the Intercreditor Agreement is incorrect in any material respect,

 

and, if the non-compliance or circumstances
giving rise to the misrepresentation are capable of remedy, it is not remedied
within 15 Business Days of the earlier of the Facility Agent giving notice to
that party becoming aware of the non-compliance or misrepresentation; or

 

(b)           the subordination created or purported to be created
by the Intercreditor Agreement is not effective or is alleged by a party to it
(other than a Finance Party) to be ineffective; or

 

(c)           any party to the Intercreditor Agreement (other than a
Finance Party) repudiates the Intercreditor Agreement or evidences an intention
to repudiate it.

 

23.13      Material adverse change

 

Any event or series of events occurs which
constitutes a Material Adverse Effect.

 

86

 

23.14      Audit qualification

 

The Auditors adversely qualify their report
on any audited consolidated statutory accounts of the Group in a manner which,
in the opinion of the Majority Lenders (acting reasonably), is materially
adverse to their interests in the context of the Finance Documents and
transactions contemplated by them.

 

23.15      Material proceedings

 

There is current or there shall occur any
litigation, arbitration, administrative, regulatory or other proceedings or
enquiry (including, but not limited to, any such by the Competition Authority
of Ireland, the Minister for Enterprise, Trade and Employment of Ireland, the
Director of Telecommunications Regulation in Ireland, the Office of Fair
Trading, the Competition Commission, the Department of Trade and Industry, the
European Commission or in each case any division thereof or authority deriving
power therefrom) concerning or arising in consequence of the Finance Documents
and/or the implementation of any matter or transaction provided for in the
Finance Documents or otherwise concerning or involving any member of the Group
or there is current or threatened any labour dispute in any way concerning or
involving any member of the Group and the same:

 

(a)           is reasonably likely to be
adversely determined; and

 

(b)           if adversely determined would
have a Material Adverse Effect.

 

23.16      Revocation of licence

 

Any telecommunications licence or
regulatory authorisation held by any Material Group Member is revoked (without
replacement by a licence or regulatory authorisation having substantially
similar effect) or is not renewed on expiry, save where the loss of such
licence or authorisation would not have a Material Adverse Effect.

 

23.17      Acceleration

 

If an Event of Default is outstanding, the
Facility Agent may, and must if so instructed by the Majority Lenders, by
notice to the Company:

 

(a)           declare that an Event of
Default has occurred; and/or

 

(b)           cancel the Total Commitments;
and/or

 

(c)           declare that all or part of
any amounts outstanding under the Finance Documents are:

 

(i)            immediately due and payable;
and/or

 

(ii)           payable on demand by the
Facility Agent acting on the instructions of the Majority Lenders, and/or

 

(d)           declare that full cash cover
in respect of each Documentary Credit is immediately due and payable.

 

Any notice given under this Subclause will
take effect in accordance with its terms.

 

87

 

24.          THE ADMINISTRATIVE PARTIES

 

24.1        Appointment and duties of the Facility
Agent

 

(a)           Each Finance Party (other than the Facility Agent)
irrevocably appoints the Facility Agent to act as its agent under the Finance
Documents.

 

(b)           Each Finance Party irrevocably authorises the Facility
Agent to:

 

(i)            perform the duties and to exercise the rights, powers
and discretions that are specifically given to it under the Finance Documents,
together with any other incidental rights, powers and discretions; and

 

(ii)           execute each Finance Document expressed to be executed
by the Facility Agent.

 

(c)           The Facility Agent has only those duties which are
expressly specified in the Finance Documents. 
Those duties are solely of a mechanical and administrative nature.

 

24.2        Role of the Arrangers

 

Except as specifically provided in the
Finance Documents, no Arranger has any obligations of any kind to any other
Party in connection with any Finance Document.

 

24.3        No fiduciary duties

 

Except as specifically provided in a
Finance Document, nothing in the Finance Documents makes an Administrative
Party a trustee or fiduciary for any other Party or any other person.  No Administrative Party need hold in trust
any moneys paid to it for a Party or be liable to account for interest on those
moneys.

 

24.4        Individual position of an Administrative
Party

 

(a)           If it is also a Lender, each Administrative Party has
the same rights and powers under the Finance Documents as any other Lender and
may exercise those rights and powers as though it were not an Administrative
Party.

 

(b)           Each Administrative Party may:

 

(i)            carry on any business with any Obligor or its related
entities (including acting as an agent or a trustee for any other financing);
and

 

(ii)           retain any profits or remuneration it receives under
the Finance Documents or in relation to any other business it carries on with
any Obligor or its related entities.

 

24.5        Reliance

 

The Facility Agent may:

 

(a)           rely on any notice or document
believed by it to be genuine and correct and to have been signed by, or with
the authority of, the proper person;

 

(b)           rely on any statement made by
any person regarding any matters which may reasonably be assumed to be within
his knowledge or within his power to verify;

 

88

 

(c)           engage, pay for and rely on
professional advisers selected by it (including those representing a Party
other than the Facility Agent); and

 

(d)           act under the Finance
Documents through its personnel and agents.

 

24.6        Majority Lenders’ instructions

 

(a)           The Facility Agent is fully protected if it acts on
the instructions of the Majority Lenders in the exercise of any right, power or
discretion or any matter not expressly provided for in the Finance
Documents.  Any such instructions given
by the Majority Lenders will be binding on all the Lenders.  In the absence of instructions, the Facility
Agent may act as it considers to be in the best interests of all the Lenders.

 

(b)           The Facility Agent is not authorised to act on behalf
of a Lender (without first obtaining that Lender’s consent) in any legal or
arbitration proceedings in connection with any Finance Document.

 

(c)           The Facility Agent may require the receipt of security
satisfactory to it, whether by way of payment in advance or otherwise, against
any liability or loss which it may incur in complying with the instructions of
the Majority Lenders.

 

24.7        Responsibility

 

(a)           No Administrative Party is responsible to any other
Finance Party for the adequacy, accuracy or completeness of:

 

(i)            any Finance Document or any other document; or

 

(ii)           any statement or information (whether written or oral)
made in or supplied in connection with any Finance Document.

 

(b)           Without affecting the responsibility of any Obligor
for information supplied by it or on its behalf in connection with any Finance
Document, each Lender confirms that it:

 

(i)            has made, and will continue to make, its own
independent appraisal of all risks arising under or in connection with the
Finance Documents (including the financial condition and affairs of each
Obligor and its related entities and the nature and extent of any recourse
against any Party or its assets); and

 

(ii)           has not relied exclusively on any information provided
to it by any Administrative Party in connection with any Finance Document.

 

24.8        Exclusion of liability

 

(a)           The Facility Agent is not liable or responsible to any
other Finance Party for any action taken or not taken by it in connection with
any Finance Document, unless directly caused by its gross negligence or wilful
misconduct.

 

(b)           No Party may take any proceedings against any officer,
employee or agent of the Facility Agent in respect of any claim it might have
against the Facility Agent or in respect of any act or omission of any kind by
that officer, employee or agent in connection with any Finance Document.  Any officer, employee or agent of the Facility
Agent may rely on this Subclause.

 

89

 

24.9        Default

 

(a)           The Facility Agent is not obliged to monitor or
enquire whether a Default has occurred. 
The Facility Agent is not deemed to have knowledge of the occurrence of
a Default.

 

(b)           If the Facility Agent:

 

(i)            receives notice from a Party referring to this
Agreement, describing a Default and stating that the event is a Default; or

 

(ii)           is aware of the non-payment of any principal or
interest or any fee payable to a Lender under this Agreement,

 

it must promptly notify the Lenders.

 

24.10      Information

 

(a)           The Facility Agent must promptly forward to the person
concerned the original or a copy of any document which is delivered to the
Facility Agent by a Party for that person.

 

(b)           Except where a Finance Document specifically provides
otherwise, the Facility Agent is not obliged to review or check the adequacy,
accuracy or completeness of any document it forwards to another Party.

 

(c)           Except as provided above, the Facility Agent has no
duty:

 

(i)            either initially or on a continuing basis to provide
any Lender with any credit or other information concerning the risks arising
under or in connection with the Finance Documents (including any information
relating to the financial condition or affairs of any Obligor or its related
entities or the nature or extent of recourse against any Party or its assets)
whether coming into its possession before, on or after the date of this
Agreement; or

 

(ii)           unless specifically requested to do so by a Lender in
accordance with a Finance Document, to request any certificate or other
document from any Obligor.

 

(d)           In acting as the Facility Agent, the agency division
of the Facility Agent is treated as a separate entity from its other divisions
and departments.  Any information
acquired by the Facility Agent which, in its opinion, is acquired by it
otherwise than in its capacity as the Facility Agent may be treated as
confidential by the Facility Agent and will not be treated as information
possessed by the Facility Agent in its capacity as such.

 

(e)           The Facility Agent is not obliged to disclose to any
person any confidential information supplied to it by a member of the Group
solely for the purpose of evaluating whether any waiver or amendment is
required to any term of the Finance Documents.

 

(f)            Each Obligor irrevocably authorises the Facility Agent
to disclose to the other Finance Parties any information which, in its opinion,
is received by it in its capacity as the Facility Agent.

 

24.11      Indemnities

 

(a)           Without limiting the liability of any Obligor under
the Finance Documents, each Lender must indemnify the Facility Agent for that
Lender’s Pro Rata Share of any loss or liability incurred 

 

90

 

by the
Facility Agent in acting as the Facility Agent, except to the extent that the
loss or liability is caused by the Facility Agent’s gross negligence or wilful
misconduct.

 

(b)           The Facility Agent may deduct from any amount received
by it for a Lender any amount due to the Facility Agent from that Lender under
a Finance Document but unpaid.

 

24.12      Compliance

 

The Facility Agent may refrain from doing
anything (including disclosing any information) which might, in its opinion,
constitute a breach of any law or regulation or be otherwise actionable at the
suit of any person, and may do anything which, in its opinion, is necessary or
desirable to comply with any law or regulation.

 

24.13      Resignation of the Facility Agent

 

(a)           The Facility Agent may resign and appoint any of its
Affiliates as successor Facility Agent by giving notice to the Lenders and the
Company.

 

(b)           Alternatively, the Facility Agent may resign by giving
notice to the Lenders and the Company, in which case the Majority Lenders may
appoint a successor Facility Agent.

 

(c)           If no successor Facility Agent has been appointed
under paragraph (b) above within 30 days after notice of resignation was given,
the Facility Agent may appoint a successor Facility Agent.

 

(d)           The person(s) appointing a successor Facility Agent
must, if practicable, consult with the Company prior to the appointment.

 

(e)           The resignation of the Facility Agent and the
appointment of any successor Facility Agent will both become effective only
when the successor Facility Agent notifies all the Parties that it accepts its
appointment.  On giving the
notification, the successor Facility Agent will succeed to the position of the
Facility Agent and the term Facility Agent will mean the successor
Facility Agent.

 

(f)            The retiring Facility Agent must, at its own cost,
make available to the successor Facility Agent such documents and records and
provide such assistance as the successor Facility Agent may reasonably request
for the purposes of performing its functions as the Facility Agent under the
Finance Documents.

 

(g)           Upon its resignation becoming effective, this Clause
will continue to benefit the retiring Facility Agent in respect of any action
taken or not taken by it in connection with the Finance Documents while it was
the Facility Agent, and, subject to paragraph (f) above, it will have no
further obligations under any Finance Document.

 

(h)           The Majority Lenders may, by notice to the Facility
Agent, require it to resign under paragraph (b) above.

 

24.14      Relationship with Lenders

 

(a)           The Facility Agent may treat each Lender as a Lender,
entitled to payments under this Agreement and as acting through its Facility
Office(s) until it has received not less than five Business Days’ prior notice
from that Lender to the contrary.

 

91

 

(b)           The Facility Agent may at any time, and must if
requested to do so by the Majority Lenders, convene a meeting of the Lenders.

 

(c)           The Facility Agent must keep a register of all the
Parties and supply any other Party with a copy of the register on request.  The register will include each Lender’s
Facility Office(s) and contact details for the purposes of this Agreement.

 

24.15      Notice period

 

Where this Agreement specifies a minimum period
of notice to be given to the Facility Agent, the Facility Agent may, at its
discretion, accept a shorter notice period.

 

25.          EVIDENCE AND CALCULATIONS

 

25.1        Accounts

 

Accounts maintained by a Finance Party in
connection with this Agreement are prima facie evidence of the matters to which
they relate for the purpose of any litigation or arbitration proceedings.

 

25.2        Certificates and determinations

 

Any certification or determination by a
Finance Party of a rate or amount under the Finance Documents (other than
amounts claimed pursuant to Clauses 15 (Increased Costs) and 16 (Mitigation) or
claims for reimbursement of expenses, each of which, subject to Clause 16.2
(Mitigation), must be accompanied by reasonable supporting evidence) will be,
in the absence of manifest error, conclusive evidence of the matters to which
it relates.

 

25.3        Calculations

 

Any interest or fee accruing under this
Agreement accrues from day to day and is calculated on the basis of the actual
number of days elapsed and a year of 360 or 365 days or otherwise, depending on
what the Facility Agent determines is market practice.

 

26.          FEES

 

26.1        Agent’s fees

 

The Company must pay (or procure that such
payment is made) to each of the Facility Agent and the Security Agent for their
respective accounts an agency fee and a security agency fee (respectively) in
the manner agreed in the Fee Letter between the Facility Agent and the Company.

 

26.2        Arrangement fee

 

The Company must pay (or procure that such
payment is made) to the Arrangers for their own account an arrangement fee in
the manner agreed in the Fee Letters between the Arrangers and the Company.

 

26.3        Commitment fee

 

(a)           The Company must pay (or procure that such payment is
made) a commitment fee computed at the rate of 0.75 per cent. per annum on the
undrawn, uncancelled amount of each Lender’s Tranche D Commitment and each
Lender’s Pro Rata Share of the Refinancing Reserve.

 

92

 

(b)           The accrued commitment fee under paragraph (a) above is
payable quarterly in arrear unless the Facilities are cancelled in full before
the first Utilisation Date.  Any accrued
commitment fee is also payable to the Facility Agent for a Lender on the date
its Commitments are cancelled in full.

 

26.4        Fronting fee

 

The Company must pay (or procure that such
payment is made) to the Facility Agent for the Fronting Bank such fronting fees
as are agreed between the Company and the Fronting Bank.

 

26.5        Documentary Credit fee

 

(a)           The Company must pay (or procure that such payment is
made) to the Facility Agent for the Lenders a documentary credit fee equal to
the Margin for the Tranche D Facility on the outstanding amount of each
Documentary Credit from the date it is issued, calculated on a daily basis.

 

(b)           Accrued documentary credit fee is payable quarterly in
arrear and on the date on which any Documentary Credit expires or is prepaid or
repaid.

 

27.          INDEMNITIES AND BREAK COSTS

 

27.1        Currency indemnity

 

(a)           The Company must, as an independent obligation,
indemnify each Finance Party against any loss or liability which that Finance
Party incurs as a consequence of:

 

(i)            that Finance Party receiving an amount in respect of
an Obligor’s liability under the Finance Documents; or

 

(ii)           that liability being converted into a claim, proof,
judgment or order,

 

in a currency other than the currency in
which the amount is expressed to be payable under the relevant Finance
Document.

 

(b)           Unless otherwise required by law, each Obligor waives
any right it may have in any jurisdiction to pay any amount under the Finance
Documents in a currency other than that in which it is expressed to be payable.

 

27.2        Other indemnities

 

(a)           The Company must indemnify each Finance Party against
any loss or liability which that Finance Party incurs as a consequence of:

 

(i)            the occurrence of any Event of Default;

 

(ii)           any failure by an Obligor to pay any amount due under
a Finance Document on its due date, including any resulting from any
distribution or redistribution of any amount among the Lenders under this
Agreement;

 

(iii)          (other than by reason of negligence or default by that
Finance Party) a Credit not being made after a Request has been delivered for
that Credit;

 

93

 

(iv)          a Credit (or part of a Credit) not being prepaid in
accordance with a notice of prepayment; or

 

(v)           (other than by reason of gross negligence or wilful
default by that Finance Party) any Environmental Claim.

 

The Company’s liability in each case
includes any loss or expense on account of funds borrowed, contracted for or
utilised to fund any amount payable under any Finance Document, any amount
repaid or prepaid or any Credit.

 

(b)           The Company must indemnify the Facility Agent against
any loss or liability incurred by the Facility Agent as a result of:

 

(i)            investigating any event which the Facility Agent
reasonably believes to be a Default (except where following such investigation
no Default is found to exist); or

 

(ii)           acting or relying on any notice purporting to come
from an Obligor which the Facility Agent reasonably believes to be genuine,
correct and appropriately authorised.

 

27.3        Break Costs

 

(a)           Each Borrower must pay to each Lender its Break Costs.

 

(b)           Break Costs are the amount (if any) determined by the
relevant Lender by which:

 

(i)            the interest without taking into account the Margin
which that Lender would have received for the period from the date of receipt
of any part of its share in a Loan or an overdue amount to the last day of the
applicable Term for that Loan or overdue amount if the principal or overdue
amount received had been paid on the last day of that Term;

 

exceeds

 

(ii)           the amount which that Lender would be able to obtain
by placing an amount equal to the amount received by it on deposit with a leading
bank in the appropriate interbank market for a period starting on the Business
Day following receipt and ending on the last day of the applicable Term.

 

(c)           Each Lender must supply to the Facility Agent for the
relevant Borrower details of the amount of any Break Costs claimed by it under
this Subclause.

 

28.          EXPENSES

 

28.1        Initial costs

 

The Company must pay or procure that such
payment is made to each Administrative Party the amount of all costs and
expenses (including legal fees) reasonably incurred by it in connection with
the negotiation, preparation, printing, execution and primary syndication of
the Finance Documents, subject to any limits agreed between the Company and
such Administrative Parties.

 

94

 

28.2        Subsequent costs

 

The Company must pay or procure that such
payment is made to the Facility Agent the amount of all costs and expenses
(including legal fees) reasonably incurred by it in connection with:

 

(a)           the negotiation, preparation,
printing and execution of any Finance Document (other than a Transfer
Certificate) executed after the date of this Agreement; and

 

(b)           any amendment, waiver or
consent requested by or on behalf of an Obligor or specifically allowed by this
Agreement.

 

28.3        Enforcement costs

 

The Company must pay or procure that such
payment is made to each Finance Party the amount of all costs and expenses
(including legal fees) incurred by it in connection with the enforcement of, or
the preservation of any rights under, any Finance Document.

 

29.          AMENDMENTS AND WAIVERS

 

29.1        Procedure

 

(a)           Except as provided in this Clause, any term of the
Finance Documents may be amended or waived with the agreement of the Company
and the Majority Lenders.  The Facility
Agent may effect, on behalf of any Finance Party, an amendment or waiver
allowed under this Clause.

 

(b)           The Facility Agent must promptly notify the other
Parties of any amendment or waiver effected by it under paragraph (a)
above.  Any such amendment or waiver is
binding on all the Parties.

 

29.2        Exceptions

 

(a)           An amendment or waiver which relates to:

 

(i)            the definition of Majority Lenders in Clause 1.1
(Definitions);

 

(ii)           an extension of the date of payment of any amount to a
Lender under the Finance Documents;

 

(iii)          a reduction in the Margin or a reduction in the amount
of any payment of principal, interest, fee or other amount payable to a Lender
under the Finance Documents;

 

(iv)          an increase in, or an extension of, a Commitment or
the Total Commitments;

 

(v)           a release of an Obligor save as otherwise expressly
permitted in any Finance Document;

 

(vi)          the release of any asset from the security created by
the Security Documents save as otherwise expressly permitted in any Finance
Document;

 

(vii)         a term of a Finance Document which expressly requires
the consent of each Lender;

 

95

 

(viii)        the right of a Lender to assign or transfer its rights or obligations
under the Finance Documents; or

 

(ix)           this Clause,

 

may only be made with the consent of all
the Lenders.

 

(b)           An amendment or waiver which relates to the rights or
obligations of an Administrative Party may only be made with the consent of
that Administrative Party.

 

(c)           An amendment or waiver which relates to the rights of
a Lender under the Tranche B Facility or the Tranche C Facility to refuse
partial prepayment under Clause 10.12(e) of this Agreement may only be made
with the consent of each Lender under the Tranche B Facility or, as the case
may be, each Lender under the Tranche C Facility.

 

29.3        Change of currency

 

If a change in any currency of a country
occurs (including where there is more than one currency or currency unit
recognised at the same time as the lawful currency of a country), the Finance
Documents will be amended to the extent the Facility Agent (acting reasonably
and after consultation with the Company) determines is necessary to reflect the
change.

 

29.4        Waivers and remedies cumulative

 

The rights of each Finance Party under the
Finance Documents:

 

(a)           may be exercised as often as
necessary;

 

(b)           are cumulative and not
exclusive of its rights under the general law; and

 

(c)           may be waived only in writing
and specifically.

 

Delay in exercising or non-exercise of any
right is not a waiver of that right.

 

30.          CHANGES TO THE PARTIES

 

30.1        Assignments and transfers by Obligors

 

No Obligor may assign or transfer any of
its rights and obligations under the Finance Documents without the prior
consent of all the Lenders.

 

30.2        Assignments and transfers by Lenders

 

(a)           A Lender (the Existing Lender) may, subject to the
following provisions of this Subclause, at any time assign or transfer
(including by way of novation) any of its rights and obligations under this
Agreement to any other person (the New Lender).

 

(b)           Unless the Company and the Facility Agent otherwise
agree, a transfer of part of a Commitment or the rights and obligations under
this Agreement by the Existing Lender must be in a minimum amount of
€2,500,000.

 

(c)           The consent of the Company is not required for any
assignment or transfer, provided that the Existing Lender shall consult with
the Company about any proposed transfer for not more than five Business
Days.

 

96

 

(d)           A transfer of obligations will be effective only if
either:

 

(i)            the obligations are novated in accordance with the
following provisions of this Clause; or

 

(ii)           the New Lender confirms to the Facility Agent and the
Company in form and substance satisfactory to the Facility Agent that it is bound
by the terms of this Agreement as a Lender. 
On the transfer becoming effective in this manner the Existing Lender
will be released from its obligations under this Agreement to the extent that
they are transferred to the New Lender.

 

(e)           Save in relation to any transfer or assignment to an
Affiliate of the Existing Lender, unless the Facility Agent otherwise agrees,
the New Lender must pay to the Facility Agent for its own account, on or before
the date any assignment or transfer occurs, a fee of €1,500.

 

(f)            Save in relation to any assignment or transfer by a
Lender to its Affiliate, the consent of the Fronting Bank is required for any
assignment or transfer of any Lender’s rights and obligations in relation to
the Tranche D Facility under this Agreement where the credit rating of the
assignee or transferee is less than A- by S&P or FitchIBCA or A3 by Moody’s
for its long-term debt obligations.  If
the credit rating of any Lender for its long-term debt obligations was A- by
S&P or FitchIBCA or A3 by Moody’s when it became a Lender, but subsequently
falls below that threshold, the Fronting Bank shall be entitled to require that
Lender promptly to transfer its Tranche D Commitment to a person with a credit
rating of at least A- by S&P or FitchIBCA or A3 by Moody’s for its
long-term debt obligations.

 

(g)           Any reference in this Agreement to a Lender includes a
New Lender but excludes a Lender if no amount is or may be owed to or by it
under this Agreement.

 

30.3        Procedure for transfer by way of novations

 

(a)           In this Subclause:

 

Transfer Date means, for a Transfer
Certificate, the later of:

 

(i)            the proposed Transfer Date specified in
that Transfer Certificate; and

 

(ii)           the date on which the Facility Agent
executes that Transfer Certificate.

 

(b)           A novation is effected if:

 

(i)            the Existing Lender and the New Lender deliver to the
Facility Agent a duly completed Transfer Certificate; and

 

(ii)           the Facility Agent executes it.

 

The Facility Agent must execute as soon as
reasonably practicable a Transfer Certificate delivered to it and which appears
on its face to be in order.

 

(c)           Each Party (other than the Existing Lender and the New
Lender) irrevocably authorises the Facility Agent to execute any duly completed
Transfer Certificate on its behalf.

 

(d)           On the Transfer Date:

 

97

 

(i)            the New Lender will assume the rights and obligations
of the Existing Lender expressed to be the subject of the novation in the
Transfer Certificate in substitution for the Existing Lender; and

 

(ii)           the Existing Lender will be released from those
obligations and cease to have those rights.

 

(e)           The Facility Agent shall promptly notify the Company,
with details of the New Lender and the relevant transfer, following execution
of a Transfer Certificate.

 

30.4        Limitation of responsibility of Existing
Lender

 

(a)           Unless expressly agreed to the contrary, an Existing
Lender is not responsible to a New Lender for the legality, validity, adequacy,
accuracy, completeness or performance of:

 

(i)            any Finance Document or any other document; or

 

(ii)           any statement or information (whether written or oral)
made in or supplied in connection with any Finance Document,

 

and any representations or warranties
implied by law are excluded.

 

(b)           Each New Lender confirms to the Existing Lender and
the other Finance Parties that it:

 

(i)            has made, and will continue to make, its own
independent appraisal of all risks arising under or in connection with the
Finance Documents (including the financial condition and affairs of each
Obligor and its related entities and the nature and extent of any recourse
against any Party or its assets) in connection with its participation in this
Agreement; and

 

(ii)           has not relied exclusively on any information supplied
to it by the Existing Lender in connection with any Finance Document.

 

(c)           Nothing in any Finance Document requires an Existing
Lender to:

 

(i)            accept a re-transfer from a New Lender of any of the
rights and obligations assigned or transferred under this Clause; or

 

(ii)           support any losses incurred by the New Lender by
reason of the non-performance by any Obligor of its obligations under any
Finance Document or otherwise.

 

30.5        Costs resulting from change of Lender or
Facility Office

 

If:

 

(a)           a Lender assigns or transfers
any of its rights and obligations under the Finance Documents or changes its
Facility Office; and

 

(b)           as a result of circumstances
existing at the date the assignment, transfer or change occurs, an Obligor
would be obliged to pay a Tax Payment or an Increased Cost,

 

then, unless the assignment, transfer or
change is made by a Lender to mitigate any circumstances giving rise to the Tax
Payment, Increased Cost or a right to be prepaid and/or cancelled by reason of
illegality, the Obligor need only pay that Tax Payment or Increased 

 

98

 

Cost to the same extent that it would have
been obliged to if no assignment, transfer or change had occurred.

 

30.6        Additional Obligors

 

(a)           If the Company wishes one of its wholly-owned
Subsidiaries to become an Additional Obligor, then it may (following
consultation with the Facility Agent) deliver to the Facility Agent the
relevant documents and evidence listed in Part 2 of Schedule 2 (Conditions
precedent documents).

 

(b)           Except as provided below, the Company must ensure that
each person who is a Material Subsidiary (other than any Excluded Company) or
which becomes a Material Subsidiary after the date of this Agreement becomes an
Additional Guarantor in the manner required by this Clause.

 

(c)           (i)            The Company need only perform its obligations under
paragraph (b) above if it is not unlawful for the relevant person to become a
Guarantor or it would not result in personal liability for that person’s
directors or other management.

 

(ii)           The Company must use reasonable endeavours to avoid
any unlawfulness or personal liability in the circumstances mentioned in
sub-paragraph (i) above.  This includes
agreeing to a limit on the amount secured or guaranteed.  The Facility Agent may agree to such a limit
if to do so might avoid the relevant unlawfulness or personal liability.

 

(d)           The Company must comply with its obligations under
paragraph (b):

 

(i)            within two months of the relevant person becoming a
Material Subsidiary or, if paragraph (c) applies, it ceasing to be unlawful or
have any risk of personal liability for the relevant persons directors or other
management; or

 

(ii)           if the relevant person is an Additional Borrower, but
not a Material Subsidiary, before the Additional Borrower may use any Facility.

 

(e)           The prior consent of all the Lenders (such consent not
to be unreasonably withheld or delayed) is required in respect of a proposed
Additional Borrower which is incorporated in a jurisdiction outside England,
Ireland or Northern Ireland.

 

(f)            The relevant Subsidiary will become an Additional
Obligor on the date of the Accession Agreement executed by it.

 

(g)           The Company must ensure that the Facility Agent
receives, within seven days of receipt of an Accession Agreement, the other
documents and evidence list in Part 2 of Schedule 2 (Conditions precedent
documents).  In the case of an
Additional Borrower, until the Facility Agent notifies the other Finance
Parties and the Company that those documents and evidence are in form and
substance satisfactory to it (acting reasonably), that Additional Borrower may
not use any Facility.  The Facility
Agent must give this notification as soon as reasonably practicable.

 

(h)           Delivery of an Accession Agreement, executed by the
relevant Subsidiary and the Company, to the Facility Agent constitutes
confirmation by that Subsidiary and the Company that the Repeating
Representations are then correct.

 

99

 

30.7        Resignation of an Obligor (other than the
Company or eircom)

 

(a)           In this Subclause, Resignation Request means a
letter in the form of Schedule 9 (Form of Resignation Request), with such
amendments as the Facility Agent may approve or reasonably require.

 

(b)           The Company may request that an Obligor (other than
the Company or eircom) ceases to be an Obligor by giving to the Facility Agent
a duly completed Resignation Request.

 

(c)           The Facility Agent must accept a Resignation Request
and notify the Company and the Lenders of its acceptance if:

 

(i)            in the case of a Guarantor, the Majority Lenders have
consented to the Resignation Request;

 

(ii)           it is not aware that a Default is outstanding or would
result from the acceptance of the Resignation Request; and

 

(iii)          no amount owed by that Obligor under this Agreement is
still outstanding.

 

(d)           If a Guarantor ceases to be a Guarantor under this
Subclause, the Facility Agent must execute (at the expense of the Company) any
document which is necessary to ensure that any assets of that Guarantee are released
from any security created by a Security Document.  The Facility Agent is authorised by the other Finance Parties to
execute any document required to achieve a release in these circumstances.

 

(e)           The Obligor will cease to be a Borrower and/or a Guarantor,
as appropriate, when the Facility Agent gives the notification referred to in
paragraph (c) above.

 

(f)            An Obligor (other than the Company or eircom) may also
cease to be an Obligor in any other manner approved by the Majority Lenders.

 

30.8        Changes to the Reference Banks

 

If a Reference Bank (or, if a Reference
Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a
Lender, the Facility Agent must (in consultation with the Company) appoint
another Lender or an Affiliate of a Lender to replace that Reference Bank.

 

30.9        Affiliates of Lenders

 

(a)           Each Lender may fulfil its obligations in respect of
any Credit through an Affiliate if:

 

(i)            the relevant Affiliate is specified in this Agreement
as a Lender or becomes a Lender by means of a Transfer Certificate in
accordance with this Agreement; and

 

(ii)           the Credits in which that Affiliate will participate
are specified in this Agreement or in a notice given by that Lender to the
Facility Agent and the Company.

 

In this event, the Lender and the Affiliate
will participate in Credits in the manner provided for in sub-paragraph (ii)
above.

 

(b)           If paragraph (a) applies, the Lender and its Affiliate
will be treated as having a single Commitment and a single vote, but, for all
other purposes, will be treated as separate Lenders.

 

100

 

31.          DISCLOSURE OF INFORMATION

 

(a)           Each Finance Party must keep confidential any
information supplied to it by or on behalf of any Obligor in connection with
the Finance Documents.  However, a
Finance Party is entitled to disclose information:

 

(i)            which is publicly available, other than as a result of
a breach by that Finance Party of this Clause;

 

(ii)           in connection with any legal or arbitration
proceedings;

 

(iii)          if required to do so under any law or regulation;

 

(iv)          to a governmental, banking, taxation or other
regulatory authority;

 

(v)           to its professional advisers;

 

(vi)          to the extent allowed under paragraph (b) below; or

 

(vii)         with the agreement of the relevant Obligor.

 

(b)           A Finance Party may disclose to an Affiliate or any
person with whom it may enter, or has entered into, any kind of transfer,
participation or other agreement in relation to this Agreement (a participant):

 

(i)            a copy of any Finance Document; and

 

(ii)           any information which that Finance Party has acquired
under or in connection with any Finance Document.

 

However, before a participant may receive
any confidential information, it must agree with the relevant Finance Party to
keep that information confidential on the terms of paragraph (a) above.

 

(c)           This Clause supersedes any previous confidentiality
undertaking given by a Finance Party in connection with this Agreement prior to
it becoming a Party.

 

32.          SET-OFF

 

While an Event of Default is outstanding a
Finance Party may set off any matured obligation owed to it by an Obligor under
the Finance Documents (to the extent beneficially owned by that Finance Party)
against any obligation (whether or not matured) owed by that Finance Party to that
Obligor, regardless of the place of payment, booking branch or currency of
either obligation.  If the obligations
are in different currencies, the Finance Party may convert either obligation at
a market rate of exchange in its usual course of business for the purpose of
the set-off.

 

33.          PRO RATA SHARING

 

33.1        Redistribution

 

If any amount owing by an Obligor under
this Agreement to a Lender (the recovering Lender) is discharged by
payment, set-off or any other manner other than through the Facility Agent
under this Agreement (a recovery), then:

 

101

 

(a)           the recovering Lender must,
within three Business Days, supply details of the recovery to the Facility
Agent;

 

(b)           the Facility Agent must
calculate whether the recovery is in excess of the amount which the recovering
Lender would have received if the recovery had been received by the Facility
Agent under this Agreement; and

 

(c)           the recovering Lender must pay
to the Facility Agent an amount equal to the excess (the redistribution).

 

33.2        Effect of redistribution

 

(a)           The Facility Agent must treat a redistribution as if
it were a payment by the relevant Obligor under this Agreement and distribute
it among the Lenders, other than the recovering Lender, accordingly.

 

(b)           When the Facility Agent makes a distribution under
paragraph (a) above, the recovering Lender will be subrogated to the rights of
the Finance Parties which have shared in that redistribution.

 

(c)           If and to the extent that the recovering Lender is not
able to rely on any rights of subrogation under paragraph (b) above, the
relevant Obligor will owe the recovering Lender a debt which is equal to the
redistribution, immediately payable and of the type originally discharged.

 

(d)           If:

 

(i)            a recovering Lender must subsequently return a
recovery, or an amount measured by reference to a recovery, to an Obligor; and

 

(ii)           the recovering Lender has paid a redistribution in
relation to that recovery,

 

each Finance Party must reimburse the
recovering Lender all or the appropriate portion of the redistribution paid to
that Finance Party, together with interest for the period while it held the
re-distribution.  In this event, the
subrogation in paragraph (b) above will operate in reverse to the extent of the
reimbursement.

 

33.3        Exceptions

 

Notwithstanding any other term of this
Clause, a recovering Lender need not pay a redistribution to the extent that:

 

(a)           it would not, after the
payment, have a valid claim against the relevant Obligor in the amount of the
redistribution; or

 

(b)           it would be sharing with
another Finance Party any amount which the recovering Lender has received or
recovered as a result of legal or arbitration proceedings, where:

 

(i)            the recovering Lender notified
the Facility Agent of those proceedings; and

 

(ii)           the other Finance Party had an
opportunity to participate in those proceedings but did not do so or did not
take separate legal or arbitration proceedings as soon as reasonably
practicable after receiving notice of them.

 

102

 

34.          SEVERABILITY

 

If a term of a Finance Document is or
becomes illegal, invalid or unenforceable in any jurisdiction, that shall not
affect:

 

(a)           the legality, validity or
enforceability in that jurisdiction of any other term of the Finance Documents;
or

 

(b)           the legality, validity or
enforceability in other jurisdictions of that or any other term of the Finance
Documents.

 

35.          COUNTERPARTS

 

Each Finance Document may be executed in
any number of counterparts.  This has
the same effect as if the signatures on the counterparts were on a single copy
of the Finance Document.

 

36.          NOTICES

 

36.1        In writing

 

(a)           Any communication in connection with a Finance
Document must be in writing and, unless otherwise stated, may be given in
person, by post or by fax.

 

(b)           Unless it is agreed to the contrary, any consent or
agreement required under a Finance Document must be given in writing.

 

36.2        Contact details

 

(a)           Except as provided below, the contact details of each
Party for all communications in connection with the Finance Documents are those
notified by that Party for this purpose to the Facility Agent on or before the
date it becomes a Party.

 

(b)           The contact details of the Company for this purpose
are:

 

	
  Address:

  	
   

  	
  St Stephen’s Green West, Dublin 2,
  Republic of Ireland

  
	
  Fax
  number:

  	
   

  	
  +353
  1 701 6171

  
	
  Attention:

  	
   

  	
  Peter
  E Lynch - CFO

  

 

(c)           The contact details of the Facility Agent for this
purpose are:

 

	
  Address:

  	
   

  	
  Winchester House,

  
	
   

  	
   

  	
  One Great Winchester Street,

  
	
   

  	
   

  	
  London EC2N 2DB,

  
	
   

  	
   

  	
  United Kingdom

  
	
  Fax
  number:

  	
   

  	
  +44
  20 7547 5703/6419

  
	
  Attention:

  	
   

  	
  Ron
  Lane-Smith/Chris Benham

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Winchester House

  
	
   

  	
   

  	
  1 Great Winchester Street,

  
	
   

  	
   

  	
  London EC2N 2DB

  
	
  Fax
  number:

  	
   

  	
  +44
  20 7545 4638

  
	
  Attention:

  	
   

  	
  Global
  Loan Operations

  

 

103

 

(d)           Any Party may change its contact details by giving
five Business Days’ notice to the Facility Agent or (in the case of the
Facility Agent) to the other Parties.

 

(e)           Where a Party nominates a particular department or
officer to receive a communication, a communication will not be effective if it
fails to specify that department or officer.

 

36.3        Effectiveness

 

(a)           Except as provided below, any communication in
connection with a Finance Document will be deemed to be given as follows:

 

(i)            if delivered in person, at the time of delivery;

 

(ii)           if posted, five days after being deposited in the
post, postage prepaid, in a correctly addressed envelope;

 

(iii)          if by fax, when received in legible form.

 

(b)           A communication given under paragraph (a) above but
received on a non-working day or after business hours in the place of receipt
will only be deemed to be given on the next working day in that place.

 

(c)           A communication to the Facility Agent will only be
effective on actual receipt by it.

 

36.4        Obligors

 

(a)           All communications under the Finance Documents to or
from an Obligor must be sent through the Facility Agent.

 

(b)           All communications under the Finance Documents to or
from an Obligor (other than the Company) must be sent through the Company.

 

(c)           Each Obligor (other than the Company) irrevocably
appoints the Company to act as its agent:

 

(i)            to give and receive all communications under the
Finance Documents;

 

(ii)           to supply all information concerning itself to any
Finance Party; and

 

(iii)          to sign all documents under or in connection with the
Finance Documents.

 

(d)           Any communication given to the Company in connection
with a Finance Document will be deemed to have been given also to the other Obligors.

 

(e)           The Facility Agent may assume that any communication
made by the Company is made with the consent of each other Obligor.

 

37.          LANGUAGE

 

(a)           Any notice given in connection with a Finance Document
must be in English.

 

(b)           Any other document provided in connection with a
Finance Document must be:

 

(i)            in English; or

 

104

 

(ii)           (unless the Facility Agent otherwise agrees)
accompanied by a certified English translation.  In this case, the English translation prevails unless the
document is a statutory or other official document.

 

38.          GOVERNING LAW

 

This Agreement is governed by English law.

 

39.          ENFORCEMENT

 

39.1        Jurisdiction

 

(a)           The English courts have exclusive jurisdiction to
settle any dispute in connection with any Finance Document.

 

(b)           The English courts are the most appropriate and
convenient courts to settle any such dispute and each Obligor waives objection
to those courts on the grounds of inconvenient forum or otherwise in relation
to proceedings in connection with any Finance Document.

 

(c)           The English courts are the most appropriate and
convenient courts to settle any such dispute.

 

(d)           This Clause is for the benefit of the Finance Parties
only.  To the extent allowed by law, a
Finance Party may take:

 

(i)            proceedings in any other court; and

 

(ii)           concurrent proceedings in any number of jurisdictions.

 

39.2        Service of process

 

(a)           Each Obligor not incorporated in England and Wales
irrevocably appoints A&L Goodbody of 4th
Floor, Augustine House, 6A Austin Friars, London EC2N 2HA as its agent
under the Finance Documents for service of process in any proceedings before
the English courts.

 

(b)           If any person appointed as process agent is unable for
any reason to act as agent for service of process, the Company (on behalf of
all the Obligors) must immediately appoint another agent on terms acceptable to
the Facility Agent.  Failing this, the
Facility Agent may appoint another agent for this purpose.

 

(c)           Each Obligor agrees that failure by a process agent to
notify it of any process will not invalidate the relevant proceedings.

 

(d)           This Clause does not affect any other method of
service allowed by law.

 

39.3        Waiver of immunity

 

Each Obligor irrevocably and
unconditionally:

 

(a)           agrees not to claim any
immunity from proceedings brought by a Finance Party against it in relation to
a Finance Document and to ensure that no such claim is made on its behalf;

 

(b)           consents generally to the
giving of any relief or the issue of any process in connection with those
proceedings; and

 

105

 

(c)           waives all rights of immunity
in respect of it or its assets.

 

THIS AGREEMENT has been entered into on the
date stated at the beginning of this Agreement.

 

106

 

SCHEDULE 1

 

ORIGINAL PARTIES

 

PART 1

 

 

	
  Name of Original Borrower

  
	
   

  
	
  Valentia Telecommunications, an Irish unlimited public company

  
	
   

  
	
  eircom Limited

  
	
   

  
	
  Irish Telecommunications Investments Limited

  

 

 

	
  Name of Original Guarantor

  
	
   

  
	
  Valentia Telecommunications, an Irish unlimited public company 

  
	
   

  
	
  eircom Limited

  
	
   

  
	
  Irish Telecommunications Investments Limited

  

 

107

 

PART 2

 

	
  Name of Original Lender

  	
   

  	
  Tranche
  A Commitments (€)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Deutsche
  Bank AG London

  	
   

  	
  195,535,714.28

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  91,250,000.00

  	
   

  
	
  Goldman
  Sachs International Bank

  	
   

  	
  91,250,000.00

  	
   

  
	
  The Royal
  Bank of Scotland plc

  	
   

  	
  45,625,000.00

  	
   

  
	
  Ulster Bank
  Ireland Limited

  	
   

  	
  45,625,000.00

  	
   

  
	
  Allied Irish
  Banks, p.l.c.

  	
   

  	
  78,214,285.71

  	
   

  
	
  The Governor
  and Company of the Bank of Ireland

  	
   

  	
  78,214,285.71

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  52,142,857.15

  	
   

  
	
  Citibank
  International plc, Ireland Branch

  	
   

  	
  52,142,857.15

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Tranche A
  Commitments

  	
   

  	
  730,000,000.00

  	
   

  

 

	
  Name of Original Lender

  	
   

  	
  Tranche
  B Commitments (€)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Deutsche
  Bank AG London

  	
   

  	
  69,642,857.14

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  32,500,000.00

  	
   

  
	
  Goldman
  Sachs International Bank

  	
   

  	
  32,500,000.00

  	
   

  
	
  The
  Royal Bank of Scotland plc

  	
   

  	
  16,250,000.00

  	
   

  
	
  Ulster
  Bank Ireland Limited

  	
   

  	
  16,250,000.00

  	
   

  
	
  Allied
  Irish Banks, p.l.c.

  	
   

  	
  27,857,142.86

  	
   

  
	
  The
  Governor and Company of the Bank of Ireland

  	
   

  	
  27,857,142.86

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  18,571,428.57

  	
   

  
	
  Citibank
  International plc, Ireland Branch

  	
   

  	
  18,571,428.57

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Tranche B
  Commitments

  	
   

  	
  260,000,000.00

  	
   

  

 

108

 

 

	
  Name of Original Lender

  	
   

  	
  Tranche
  C Commitments (€)

  	
   

  
	
  Deutsche
  Bank AG London

  	
   

  	
  69,642,857.14

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  32,500,000.00

  	
   

  
	
  Goldman
  Sachs International Bank

  	
   

  	
  32,500,000.00

  	
   

  
	
  The Royal
  Bank of Scotland plc

  	
   

  	
  16,250,000.00

  	
   

  
	
  Ulster Bank
  Ireland Limited

  	
   

  	
  16,250,000.00

  	
   

  
	
  Allied Irish
  Banks, p.l.c.

  	
   

  	
  27,857,142.86

  	
   

  
	
  The Governor
  and Company of the Bank of Ireland

  	
   

  	
  27,857,142.86

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  18,571,428.57

  	
   

  
	
  Citibank
  International plc, Ireland Branch

  	
   

  	
  18,571,428.57

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Tranche C
  Commitments

  	
   

  	
  260,000,000.00

  	
   

  

 

 

	
  Name of Original Lender

  	
   

  	
  Tranche
  D Commitments (€)

  	
   

  
	
  Deutsche
  Bank AG London

  	
   

  	
  40,178,571.44

  	
   

  
	
  Barclays
  Bank PLC

  	
   

  	
  18,750,000.00

  	
   

  
	
  Goldman
  Sachs International Bank

  	
   

  	
  18,750,000.00

  	
   

  
	
  The Royal
  Bank of Scotland plc

  	
   

  	
  9,375,000.00

  	
   

  
	
  Ulster Bank
  Ireland Limited

  	
   

  	
  9,375,000.00

  	
   

  
	
  Allied Irish
  Banks, p.l.c.

  	
   

  	
  16,071,428.57

  	
   

  
	
  The Governor
  and Company of the Bank of Ireland

  	
   

  	
  16,071,428.57

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  10,714,285.71

  	
   

  
	
  Citibank
  International plc, Ireland Branch

  	
   

  	
  10,714,285.71

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Tranche D
  Commitments

  	
   

  	
  150,000,000.00

  	
   

  

 

109

 

SCHEDULE 2

 

CONDITIONS PRECEDENT
DOCUMENTS

 

PART 1

 

TO BE DELIVERED BEFORE THE FIRST UTILISATION DATE

Original Obligors

 

1.             A copy of the constitutional documents of
each Original Obligor and each Investor (as defined in the Intercreditor
Agreement).

 

2.             A copy of a resolution of the board of
directors of each Original Obligor and each Investor (as defined in the
Intercreditor Agreement) approving the terms of, and the transactions
contemplated by, the Finance Documents to which it is a party.

 

3.             A specimen of the signature of each person
authorised on behalf of an Original Obligor and each Investor (as defined in
the Intercreditor Agreement) to execute or witness the execution of any Finance
Document or to sign or send any document to which it is a party or notice in
connection with any Finance Document to which it is a party.

 

4.             A copy of a resolution passed by all (or
any lower percentage agreed by the Facility Agent) of the holders of the issued
or allotted shares in each Original Guarantor approving the terms of, and the
transactions contemplated by, this Agreement.

 

5.             If applicable, a copy of a resolution of
the board of directors of each corporate shareholder in each Original Guarantor
approving the terms of the resolution referred to in paragraph 4 above.

 

6.             A certificate of an authorised signatory of
the Company:

 

(a)           confirming that utilising the Total
Commitments in full would not breach any limit binding on any Original Obligor;
and

 

(b)           certifying that each copy document
specified in Part 1 of this Schedule are correct, complete and in full force
and effect as at a date no earlier than the date of this Agreement.

 

7.             Evidence that the agent of the Original
Obligors under the Finance Documents for service of process in England and
Wales has accepted its appointment.

 

8.             Evidence that the procedure contemplated by
section 60 of the Irish Companies Act 1963 has been completed by all relevant
Obligors, namely copies of the directors’ statutory declaration for each Obligor
filed or to be filed, copies of the relevant shareholders’ special resolution
of each relevant Obligor and copies of an extract of the register of
shareholders of each Obligor.

 

9.             A copy of the Original Financial Statements
and the audited consolidated accounts of each of eircom and ITI, each prepared
in accordance with GAAP for the financial year ended 31st March, 2003.

 

110

 

Legal opinions

 

10.           A legal opinion of Allen & Overy,
English legal advisers to the Arrangers and the Facility Agent.

 

11.           A legal opinion of Arthur Cox, Irish legal
advisers to the Arrangers and the Facility Agent.

 

Other Transaction Documents

 

1.             The following Security Documents, each duly
executed by the parties to it:

 

(a)           each Debenture;

 

(b)           the Charge of Shares; and

 

(c)           each Security Assignment.

 

2.             A copy of the Intercreditor Agreement duly
executed by the parties to it.

 

3.             Satisfactory priority searches at the Irish
Land Registry and the Registry of Deeds in respect of the real estate assets
set out in the Schedules to the Debentures.

 

4.             Duly executed documents in the form of the
Second and Third Schedules to the Charge of Shares.

 

5.             The share certificates for all shares in
eircom and ITI subject to security under any Security Document.

 

6.             Duly acknowledged notices of assignment in
the forms required by the Security Assignment referred to in paragraph (a) of
the definition thereof.

 

7.             Duly executed blank stock transfer forms in
respect of the shares referred to in the previous paragraph.

 

8.             The Hedging Letter, each Fee Letter and the
Syndication Letter.

 

9.             Executed copies of the Indentures and the
other Indenture Documents.

 

10.           Evidence that on or before the advance of
the first Loan the Senior High Yield Notes have been issued or will be issued
on the first Utilisation Date in a principal amount, of €550,000,000 and the
Junior High Yield Notes  have been issued in principal amounts, of
€285,000,000 and US$250,000,000, the net proceeds of both issues being used,
together with proceeds of the Term Loans, to refinance existing Financial
Indebtedness of the Group and (if applicable) to finance the Distribution.

 

11.           A notice from the facility agent under the
Existing Facility, irrevocably confirming prepayment and cancellation in full
of the Existing Facility upon or before the first Utilisation.

 

12.           An executed copy of the eircom Funding Loan
Agreement, including the eircom Funding Guarantee.

 

13.           The Disclosure Letter.

 

111

 

Other documents and evidence

 

1.             A legal due diligence report by A&L
Goodbody and in respect of finance leases by Arthur Cox (together with
confirmation that they can be relied upon by the original Finance Parties and
any Finance Parties who become Finance Parties directly as a result of primary
syndication of the Facilities on or before 31st December, 2003).

 

2.             Copies of the Business Model and the
initial Business Plan (initialled for identification purposes by the Facility
Agent).

 

3.             Evidence that all fees and expenses then
due and payable from the Company under this Agreement have been or will be paid
by the first Utilisation Date.

 

112

 

PART 2

 

FOR AN ADDITIONAL OBLIGOR

Additional Obligors

 

1.             An Accession Agreement, duly executed by
the Company and the Additional Obligor.

 

2.             Evidence that the Additional Obligor has
become party to a Debentures over all its assets, duly executed by the
Additional Obligor, provided that no such Debentures may create security over
the assets of an Additional Obligor for any indebtedness under or in respect of
any ITI Loan Stock.

 

3.             A copy of the constitutional documents and
an extract of the share register of the Additional Obligor.

 

4.             A copy of a resolution of the board of
directors of the Additional Obligor approving the terms of, and the
transactions contemplated by, the Accession Agreement.

 

5.             A specimen of the signature of each person
authorised on behalf of the Additional Obligor to execute or witness the execution
of any Finance Document or to sign or send any document or notice in connection
with any Finance Document.

 

6.             In the case of an Additional Guarantor
incorporated in Ireland or the U.K., a copy of a resolution, signed by all (or
any lower percentage agreed by the Facility Agent) of the holders of its issued
or allotted shares, approving the terms of, and the transactions contemplated
by, the Accession Agreement.

 

7.             If applicable, a copy of a resolution of
the board of directors of each corporate shareholder in the Additional
Guarantor approving the resolution referred to in paragraph 6 above.

 

8.             A certificate of an authorised signatory of
the Additional Obligor:

 

(a)           confirming (in the case of an Additional
Borrower only) that utilising the Total Commitments in full would not breach
any limit binding on it; and

 

(b)           certifying that each copy document
specified in Part 2 of this Schedule is correct, complete and in full force and
effect as at a date no earlier than the date of the Accession Agreement.

 

9.             If available, a copy of the latest audited
accounts of the Additional Obligor.

 

10.           Evidence that the agent of the Additional
Obligor under the Finance Documents for service of process in England and Wales
has accepted its appointment.

 

Legal opinions

 

1.             A legal opinion of Allen & Overy, legal
advisers to the Facility Agent, addressed to the Finance Parties.

 

2.             If the Additional Obligor is incorporated
in a jurisdiction other than England and Wales, a legal opinion from legal
advisers in the jurisdiction of the Additional Obligor, addressed to the
Finance Parties.

 

113

 

Other documents and evidence

 

1.             Evidence that all expenses due and payable
from the Company under this Agreement in respect of the Accession Agreement
have been paid.

 

2.             A copy of any other authorisation or other
document, opinion or assurance which the Facility Agent has notified the
Company is necessary or desirable in connection with the entry into and
performance of, and the transactions contemplated by, the Accession Agreement
or for the validity and enforceability of any Finance Document.

 

3.             All whitewash documents and materials
required pursuant to section 60 of the Irish Companies Act 1963 (or, in
jurisdictions outside Ireland, all materials required to satisfy analogous and
any other legal or regulatory provisions) in connection with the giving of a
guarantee and entry into the Accession Agreement and execution of the
Debentures.

 

114

 

SCHEDULE 3

 

FORM OF REQUEST

 

To:          Deutsche Bank AG London as Facility Agent

 

From:      [                    ]

 

Date:       [           ]

 

Valentia Telecommunications, an Irish unlimited public
company and eircom Limited -

€1,400,000,000 Credit Agreement

dated 6th August, 2003 (the Agreement)

 

1.             We refer to the Agreement.  This is a Request.

 

2.             We wish to [borrow a Tranche [A][B][C][D]
Loan/arrange for a guarantee/Letter of Credit to be issued]* on the following
terms:

 

(a)           Utilisation Date:
[       ]

 

(b)           Amount: €[                  ]

 

(c)           Term:
[                      ].

 

3.             Our [payment/delivery]  * instructions are:
[                       ].

 

4.             We confirm that each condition precedent
under the Agreement which must be satisfied on the date of this Request is so satisfied.

 

5.             This Request is irrevocable.

 

6.             [We attach a copy of the proposed
guarantee/Letter of Credit.]*

 

By:

 

[                       ]

 

 

*               Delete as applicable.

 

 

115

 

SCHEDULE 4

 

CALCULATION OF THE
MANDATORY COST

1.             General

 

The Mandatory Cost is the weighted average
of the rates for each Lender calculated below by the Facility Agent on the
first day of a Term.  The Facility Agent
must distribute each amount of Mandatory Cost among the Lenders on the basis of
the rate for each Lender.

 

2.             For a Lender lending from a Facility Office
in the U.K.

 

(a)           The relevant rate for a Lender lending from
a Facility Office in the U.K. is calculated in accordance with the following
formulae:

 

for a Loan in Sterling:

 

AB + C(B-D) + E x 0.01 per cent. per annum
           100-(A + C)

 

for any other Loan:

 

E x 0.01 per cent. per annum
   300

 

where on the day of application of the
formula:

 

A             is the percentage of that Lender’s eligible
liabilities (in excess of any stated minimum) which the Bank of England
requires it to hold on a non-interest-bearing deposit account in accordance
with its cash ratio requirements;

 

B             is LIBOR for that Term;

 

C             is the percentage of that Lender’s eligible
liabilities which the Bank of England requires it to place as a special
deposit;

 

D             is the interest rate per annum allowed by
the Bank of England on a special deposit; and

 

E              is calculated by the Facility Agent as
being the average of the rates of charge supplied by the Reference Banks to the
Facility Agent under paragraph (d) below and expressed in pounds per £1
million.

 

(b)           For the purposes of this paragraph 2:

 

(i)            eligible
liabilities and special deposit have the meanings given to them at the time of
application of the formula by the Bank of England;

 

(ii)           fees
rules
means the then current rules on periodic fees in the Supervision Manual of the
FSA Handbook; and

 

(iii)          tariff
base
has the meaning given to it in the fees rules.

 

116

 

(c)           (i)            In the application of the formulae, A, B, C
and D are included as figures and not as percentages, e.g. if A = 0.5% and B =
15%, AB is calculated as 0.5 x 15.  A
negative result obtained by subtracting D from B is taken as zero.

 

(ii)           Each rate calculated in accordance with a
formula is, if necessary, rounded upward to four decimal places.

 

(d)           (i)            Each Reference Bank must supply to the
Facility Agent the rate of charge payable by that Reference Bank to the
Financial Services Authority under the fees rules (calculated by that Reference
Bank as being the average of the rates of charge within fee-block Category A1
(Deposit acceptors) applicable to that Reference Bank but, for this purpose,
applying any applicable discount and ignoring any minimum fee required under
the fees rules) and expressed in pounds per £1 million of the tariff base of
that Reference Bank.

 

(ii)           Each Reference Bank must promptly notify
the Facility Agent of any change to the rate of charge.

 

(e)           (i)            Each Lender and each Reference Bank must
supply to the Facility Agent the information required by it to make a
calculation of the rate for that Lender or Reference Bank.  The Facility Agent may assume that this
information is correct in all respects.

 

(ii)           If a Lender or a Reference Bank fails to do
so, the Facility Agent may assume that the Lender’s or that Reference Bank’s
obligations in respect of cash ratio deposits, special deposits and the fees
rules are the same as those of a typical bank from its jurisdiction of
incorporation with a Facility Office in the U.K.

 

(iii)          The Facility Agent has no liability to any
Party if its calculation over or under compensates any Lender.

 

3.             For a Lender lending from a Facility Office
in a Participating Member State

 

(a)           The relevant rate for a Lender lending from
a Facility Office in a Participating Member State is the percentage rate per
annum notified by that Lender to the Facility Agent as its cost of complying
with the minimum reserve requirements of the European Central Bank.

 

(b)           If a Lender fails to specify a rate under
paragraph (a) above, the Facility Agent will assume that the Lender has not
incurred any such cost.

 

4.             Changes

 

The Facility Agent may, after consultation
with the Company and the Lenders, notify all the Parties of any amendment to
this Schedule which is required to reflect:

 

(a)           any change in law or regulation; or

 

(b)           any requirement imposed by the Bank of
England, the Financial Services Authority or the European Central Bank (or, in
any case, any successor authority).

 

Any notification will be, in the absence of
manifest error, conclusive and binding on all the Parties.

 

117

 

SCHEDULE 5

 

FORM OF TRANSFER
CERTIFICATE

 

To:          Deutsche Bank AG London as Facility Agent

 

From:      [THE EXISTING LENDER] (the Existing
Lender) and [THE NEW LENDER] (the New Lender)

 

Date:       [          ]

 

Valentia Telecommunications, an Irish unlimited public
company and eircom Limited -

€1,400,000,000 Credit Agreement

dated 6th August, 2003 (the Agreement)

 

We refer to the Agreement.  This is a Transfer Certificate.

 

1.             The Existing Lender transfers by novation
to the New Lender the Existing Lender’s rights and obligations referred to in the
Schedule below in accordance with the terms of the Agreement.

 

2.             The proposed Transfer Date is
[      ].

 

3.             The administrative details of the New
Lender for the purposes of the Agreement are set out in the Schedule.

 

4.             This Transfer Certificate is governed by
English law.

 

THE SCHEDULE

 

Rights and obligations to be transferred by novation

[insert
relevant details, including applicable Commitment (or part)]

 

Administrative details of the New Lender

[insert
details of Facility Office, address for notices and payment details etc.]

 

	
  [EXISTING LENDER]

  	
   

  	
  [NEW LENDER]

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  The Transfer Date is confirmed by the
  Facility Agent as
  [                ].

  
	
   

  
	
  DEUTSCHE BANK AG LONDON

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  

 

118

 

SCHEDULE 6

 

EXISTING SECURITY

 

	
  Member
  of the Group

  creating security

  	
   

  	
  Details of security

  	
   

  	
  Maximum principal

  amount secured*

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 1 (Trust 1) between eircom as lessee and Wilmington
  Trust Company as lessor with Metlife Capital, LP as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 1 (Trust 2) between eircom as lessee and Wilmington
  Trust Company as lessor with Metlife Capital, LP and Nationsbank, NA as
  beneficial lessors.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 2 (Trust 3) between eircom as lessee and Wilmington
  Trust Company as lessor with Metlife Capital, LP as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 2 (Trust 4) between eircom as lessee and Wilmington
  Trust Company as lessor with Metlife Capital, LP as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 3 (Trust 1) between eircom as lessee and Wilmington
  Trust Company as lessor with Key Corporate Capital Inc. as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lercie Limited

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 3 (Trust 2) between Eircell Limited (now Lercie
  Limited) as lessee and Wilmington Trust Company as lessor with Key Corporate
  Capital Inc. as beneficial lessor.

  	
   

  	
  n/a

  

 

*               [To the extent that security
has been created on or before the date of this Agreement and this amount can
practicably be quantified]

 

119

 

	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 4 (Trust 1) between eircom as lessee and Wilmington
  Trust Company as lessor with Key Corporate Capital Inc. as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lercie Limited

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 4 (Trust 2) between Eircell Limited (now Lercie
  Limited) as lessee and Wilmington Trust Company as lessor with Key Corporate
  Capital Inc. as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 5 (Trust 1) between eircom as lessee and Wilmington
  Trust Company as lessor with Key Corporate Capital Inc. as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 5 (Trust 2) between eircom as lessee and Wilmington
  Trust Company as lessor with the Fifth Third Leasing Company as beneficial
  lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lercie Limited

  	
   

  	
  Lease Transaction Security in respect of
  US Lease transaction No. 5 (Trust 3) between Eircell Limited (now Lercie
  Limited) as lessee and Wilmington Trust Company as lessor with the Fifth
  Third Leasing Company as beneficial lessor.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ITI/eircom/Eircable Limited

  	
   

  	
  Lease Transaction Security in respect of
  the sale and lease back transactions and the finance arrangements entered
  into in relation thereto referred to at paragraph 1.361 to 1.365 and 2.22 of
  the Report by A&L Goodbody.

  	
   

  	
  n/a

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  eircom (UK) Limited

  	
   

  	
  Charge dated 12th August, 1999 over a
  deposit account in favour of South Quay Estates Limited

  	
   

  	
  £325,804 (and any interest thereon and
  the amount standing to the credit of the deposit account)

  

 

120

 

SCHEDULE 7

 

FORM OF COMPLIANCE
CERTIFICATE

 

To:          Deutsche Bank AG London as Facility Agent

 

From:      Valentia Telecommunications, an Irish
unlimited public company (the Company)

 

Date:       [              ]

 

 

Valentia Telecommunications, an Irish unlimited public
company and eircom Limited -

€1,400,000,000 Credit Agreement

dated 6th August, 2003 (the Agreement)

 

1.             We refer to the Agreement.  This is a Compliance Certificate.

 

2.             We confirm that as at [relevant testing
date]:

 

(a)          Consolidated
Adjusted EBITDA was [      ]; and
Consolidated Net Total Borrowings are [               ]; therefore, Consolidated Net Total Borrowings are
[     ] x Consolidated Adjusted EBITDA;

 

(b)           Consolidated Net Interest Payable was
[              ], therefore Consolidated
Adjusted EBITDA is [              ] x
Consolidated Net Interest Payable;

 

(c)           The Capital Expenditure of the Group for
the current financial year is [         
].  The limit on Capital
Expenditure in this financial year is [        
];

 

(d)           Consolidated Cashflow is
[              ],
and Consolidated Total Debt Service is [         ];
therefore Consolidated Cashflow is
[            ]
times Consolidated Total Debt Service;

 

(e)           the aggregate net assets, turnover and
Adjusted EBITDA of the Guarantor[s] constitute, respectively, [       ] per cent., [•] per cent. and [       ] per cent. of the net assets, turnover
and Consolidated Adjusted EBITDA of the Group.

 

3.             We set out below calculations establishing
the figures in paragraph 2 above:

 

[               ].

 

4.             We confirm that the following companies
were Material Subsidiaries at [relevant testing date]:

 

[               ].

 

5.             [We (but not [Auditors]) confirm that no
Default is outstanding as at [relevant testing date].*

 

*               If this statement cannot be made, the
certificate should identify any Default that is outstanding and the steps, if
any, being taken to remedy it.

 

121

 

6.             No liability shall attach to or be incurred
by the present or future Shareholders of the Company (the Shareholders) directly or
indirectly by reason of any obligations, agreements, covenants, or
representations contained in this Compliance Certificate and the Shareholders
may rely on this clause.

 

VALENTIA TELECOMMUNICATIONS, an Irish
unlimited public company

 

By:

 

[insert applicable certification language]

 

for                                    

 

[Auditors]

 

122

 

SCHEDULE 8

 

FORM OF ACCESSION
AGREEMENT

 

To:          Deutsche Bank AG London as Facility Agent

 

From:      Valentia Telecommunications, an Irish
unlimited public company and [Proposed Borrower/Proposed Guarantor]*

 

Date:       [        ]

 

 

Valentia Telecommunications, an Irish unlimited public
company
and
eircom Limited -

€1,400,000,000 Credit Agreement

dated 6th August, 2003 (the Agreement)

 

We refer to the Agreement.  This is an Accession Agreement.

 

[Name of company] of [address/registered
office] agrees to become an Additional Borrower/Guarantor* and to be bound by
the terms of the Agreement [and the Intercreditor Agreement] as an Additional
Borrower/Guarantor*.

 

This Accession Agreement [executed as a
deed and] is governed by English law.

 

	
  Given
  under the common seal of

  	
  )

  
	
  VALENTIA
  TELECOMMUNICATIONS,

  	
  )

  
	
  an Irish unlimited
  public company

  	
  )

  
	
  (for
  and on behalf of itself and

  	
  )

  
	
  the
  other Obligors) in the presence of:

  	
  )

  
	
   

  
	
  (Director)

  	
   

  
	
   

  	
   

  
	
  (Director/Secretary)

  	
   

  
			

 

*               Delete as applicable.

 

123

 

	
  EXECUTED as a Deed by

  	
  )

  
	
  [PROPOSED
  BORROWER/GUARANTOR]*

  	
  )

  
	
  acting
  by                                            
  (Director)

  	
  )

  
	
  and                                            (Director/Secretary)

  	
  )

  
	
  [acting
  under the authority of that company]

  	
  )

  
	
  in
  the presence of:

  	
  )

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  

 

*               Amend signature block as
appropriate for signature by the Additional Obligor as a deed.

 

124

 

SCHEDULE 9

 

FORM OF RESIGNATION
REQUEST

 

 

To:          Deutsche Bank AG London as Facility Agent

 

From:      Valentia Telecommunications, an Irish
unlimited public company and [relevant Obligor]

 

Date:       [        ]

 

 

Valentia Telecommunications, an Irish unlimited public
company and eircom Limited -

€1,400,000,000 Credit Agreement

dated 6th August, 2003 (the Agreement)

 

1.             We refer to the Agreement.  This is a Resignation Request.

 

2.             We request that [resigning Obligor] be
released from its obligations as [a/an](1) [Obligor/Borrower/Guarantor](1) under
the Agreement.

 

3.             We confirm that no Default is outstanding
or would result from the acceptance of this Resignation Request.

 

4.             We confirm that as at the date of this
Resignation Request no amount owed by [resigning Obligor] under the Agreement
is outstanding.

 

5.             This Resignation Request is governed by
English law.

 

6.             No liability shall attach to or be incurred
by the present or future shareholders of the Company (the Shareholders) directly or
indirectly by reason of any obligations, agreements, covenants, or
representations contained in this Resignation Request and the Shareholders may
rely on this clause.

 

	
  VALENTIA TELECOMMUNICATIONS,

  	
   

  	
  [Relevant Obligor]

  
	
  an Irish unlimited public company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  The Facility Agent confirms that this resignation
  takes effect on
  [                        ].

  
	
   

  
	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  
	
  By:

  

 

(1)           Delete as applicable.

 

125

 

SCHEDULE 10

 

FORMS OF LETTER OF
CREDIT

 

PART 1

 

FORM OF LETTER OF CREDIT

 

To:          [Beneficiary]

(the Beneficiary)

[DATE]

 

Irrevocable Standby Letter of Credit no.
[              ]

 

At the request of
[             ],
[FRONTING BANK] (the Fronting Bank) issues this irrevocable
standby letter of credit (Letter of Credit)(2) in your favour on the
following terms and conditions:

 

1.             Definitions

 

In this Letter of Credit:

 

Business Day means a day (other than a
Saturday or a Sunday) on which banks are open for general business in London
and on which the Trans-European Automated Real-time Gross Settlement Express
Payment Transfer System is open for the settlement of payments in euro.

 

Demand means a demand for a payment
under this Letter of Credit in the form of the schedule to this Letter of
Credit.

 

Expiry Date means
[                                        ].

 

Total L/C Amount means euro
[                                       ].

 

2.             Fronting Bank’s agreement

 

(a)           The Beneficiary may request a drawing [or
drawings] under this Letter of Credit by giving to the Fronting Bank a duly
completed Demand.  A Demand may not be
given after the Expiry Date.

 

(b)           Subject to the terms of this Letter of
Credit, the Fronting Bank unconditionally and irrevocably undertakes to the
Beneficiary that, within [ten] Business Days of receipt by it of a Demand
validly presented under this Letter of Credit, it must pay to the Beneficiary
the amount which is demanded for payment in that Demand.

 

 

(2)                   This L/C assumes:

•      issued by one Issuing Bank;

•      no right of Issuing Bank to novate obligations under
the L/C;

•      single currency payments; and

•      no
obligations on Issuing Bank to gross-up.

 

126

 

(c)           The Fronting Bank will not be obliged to
make a payment under this Letter of Credit if as a result the aggregate of all
payments made by it under this Letter of Credit would exceed the Total L/C
Amount.

 

3.             Expiry

 

(a)           On [     ] pm
([London] time) on the Expiry Date the obligations of the Fronting Bank under
this Letter of Credit will cease with no further liability on the part of the
Fronting Bank except for any Demand validly presented under the Letter of
Credit that remains unpaid.

 

(b)           The Fronting Bank will be released from its
obligations under this Letter of Credit on the date prior to the Expiry Date
(if any) notified by the Beneficiary to the Fronting Bank as the date upon
which the obligations of the Fronting Bank under this Letter of Credit are
released.

 

(c)           When the Fronting Bank is no longer under
any obligation under this Letter of Credit, the Beneficiary must return the
original of this Letter of Credit to the Fronting Bank.

 

4.             Payments

 

All payments under this Letter of Credit
must be made in euros and for value on the due date to the account of the
Beneficiary specified in the Demand.

 

5.             Delivery of Demand

 

Each Demand must be in writing, and may be
given in person, by post, telex, fax or any other electronic communication(3)
and must be received by the Fronting Bank at its address as follows:

 

[

 

 

]

 

For the purpose of this Letter of Credit,
electronic communication will be treated as being in writing.

 

6.             Assignment

 

The Beneficiary’s rights under this Letter
of Credit may not be assigned or transferred.

 

7.             UCP

 

Except to the extent it is inconsistent
with the express terms of this Letter of Credit, this Letter of Credit is
subject to the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce Publication No. 500.

 

8.             Governing Law

 

This Letter of Credit is governed by
English law.

 

 

(3)           Include with caution. 
E-mail may be considered an appropriate means of communication.  However, it is at present an inherently
unsafe method with problems associated with delivery and electronic signatures.

 

127

 

9.             Jurisdiction

 

The English courts have exclusive
jurisdiction to settle any dispute in connection with this Letter of Credit.

 

Yours faithfully,

 

 

[FRONTING BANK]

 

By:

 

128

 

SCHEDULE

 

FORM OF DEMAND

 

To:          [FRONTING BANK]

 

[DATE]

 

Dear Sirs

 

Irrevocable Standby Letter of Credit no.
[         ] issued in favour of
[BENEFICIARY] (the Letter of Credit)

 

We refer to the Letter of Credit.  Terms defined in the Letter of Credit have
the same meaning when used in this Demand.

 

1.             We certify that the sum of
[         ] is due [and has
remained unpaid for at least [   ] Business Days under [set out
underlying contract or agreement]].  We
therefore demand payment of the sum of
[               ].

 

2.             Payment should be made to the following account:

 

Name:

 

Account Number:

 

Bank:

 

3.             The date of this Demand is not later than
the Expiry Date.

 

	
  Yours faithfully

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Authorised Signatory)

  	
  (Authorised Signatory)

  
	
   

  	
   

  
	
   

  	
   

  
	
  For

  	
   

  
	
   

  	
   

  
	
  [BENEFICIARY]

  	
   

  
				

 

129

 

PART 2

 

FORM OF US LEASING LETTER OF CREDIT

 

[Date]

 

IRREVOCABLE LETTER OF CREDIT NO.
[          ]

 

[Trustee],
not in its individual capacity but solely as [Trustee] under [Agreement]

[Address]

Attention: [Name]

 

Ladies and Gentlemen:

 

At the request and on the instructions of our customer [Account
Party] (the Account Party, which expression and any
other reference to [Account Party] shall, for the purposes of
this Letter of Credit, include its permitted assigns), we, [Letter of
Credit Issuer] (the Letter of Credit Issuer), hereby establish
this Irrevocable Letter of Credit No.
[          ] in favour of [Trustee],
not in its individual capacity but solely as [Trustee] ([Trustee]), as required by the
[Agreement]
(such agreement, as amended from time to time, being referred to herein as the
[Agreement]).

 

This Letter of Credit is effective from [Date] and is valid from [Date]
through and including the close of business at the Presentation Office (as
defined below) on [Date] (the Expiry Date); provided,
however, that this Letter of Credit shall terminate prior to the
date provided upon presentation, at the office of [Name and address and fax number of
Letter of Credit Issuer] (or at such other office of the Letter of
Credit Issuer or if this Letter of Credit has been or will be confirmed, the
confirming bank (any such office being hereinafter referred to as the Presentation
Office) in New York City, New York, designated by the Letter of
Credit Issuer (or such confirming bank) by written notice to [Name, capacity,
address and fax number of Addressee], as [Trustee], of a duly
completed certificate in the form of Exhibit A attached hereto (the Termination
Certificate), purporting to be signed by an authorized signatory of
each of the Account Party and [Trustee], together with the original of this
Letter of Credit, either by physical delivery or by transmission to the
Presentation Office of a facsimile to be followed promptly by courier or
registered mail delivery of such Termination Certificate and the original of
this Letter of Credit.

 

This Letter of Credit is issued for the amount of €[          ]
([          ] euro).  The term Drawing Amount as used in
this Letter of Credit shall mean at any time the amount (in United States
Dollars) set forth in this paragraph above. 
The Letter of Credit Issuer will not be obliged to make a payment under
this Letter of Credit if as a result the aggregate of all payments made by it
under this Letter of Credit would exceed the Drawing Amount.

 

[Trustee] is hereby irrevocably authorized to make one demand (on one
occasion only; it being understood that a correction to a non-conforming demand
does not constitute a second demand) not in excess of the Drawing Amount at the
time of demand for payment hereunder by presentation at the Presentation Office
of a duly completed certificate in the form of Exhibit B attached hereto (the Demand
Certificate), purporting to be signed by an authorized signatory,
together with the original of this Letter of Credit, either by physical
delivery or by transmission to the Presentation Office of a facsimile to be
followed promptly by courier or registered mail delivery of such Demand
Certificate and the original of this Letter of Credit.

 

Payment under this Letter of Credit will be made, if a conforming Demand
Certificate is received by the Presentation Office on or prior to the Expiry
Date of this Letter of Credit at the Presentation Office (x) prior to 4.00 p.m.
(New York City time) on a Business Day, on the next succeeding

 

130

 

Business Day and (y) if received subsequent to 4.00 p.m. (New York City
time) on a Business Day, on the second succeeding Business Day (whether or not
such second succeeding Business Day is subsequent to the Expiry Date) by wire
transfer of immediately available funds (in euros) in the amount set forth in
the Demand Certificate (provided that such amount shall not exceed
the Drawing Amount) to an account in the United States of America specified by
[Trustee] in its Demand Certificate.  Business Day
means any day other than a Saturday, a Sunday or a day on which commercial
banking institutions in New York City, New York are authorized or required by
law to be closed or on which the Trans-European Automated Real-time Gross
Settlement Express Payment Transfer System is not open for the settlement of
payments in euro.

 

If any Demand Certificate presented to the Presentation Office does not,
in any instance, strictly conform to the terms and conditions of this Letter of
Credit, the Letter of Credit Issuer (or, if this Letter of Credit has been or
will be confirmed, the confirming bank) shall cause the Presentation Office to
give prompt notice to [Trustee] that such Demand Certificate is not in
conformity with this Letter of Credit, stating the reasons therefor and that
the Presentation Office is holding such Demand Certificate for [Trustee]’s
disposal or is returning it to [Trustee], as the Presentation Office may
elect.  Upon being notified that such
Demand Certificate is not in conformity with this Letter of Credit, [Trustee]
may attempt to correct such non-conforming Demand Certificate if, and to the
extent that, it is able to do so.

 

If the original of this Letter of Credit has been lost, stolen,
mutilated or destroyed, upon receipt of a certificate signed by an authorized
signatory of [Trustee] to such effect specifying the date and number of this
Letter of Credit and (i) in the case of loss, theft or destruction of this
Letter of Credit, an indemnity agreement in form and substance satisfactory to
the Letter of Credit Issuer and, if this Letter of Credit has been or will be
confirmed, the confirming bank from [Trustee], in its individual capacity, and
(ii) in the case of mutilation of this Letter of Credit, the mutilated Letter
of Credit, the Letter of Credit Issuer will issue a replacement letter of
credit in favour of [Trustee] dated the same date, bearing the same number, and
in the same Drawing Amount as, and with other provisions consistent with, the
Letter of Credit.

 

Upon the honour of a Demand Certificate duly presented hereunder and the
payment of any taxes due in accordance with clause (ii) of the fifth paragraph
hereof, the Letter of Credit Issuer shall be fully discharged from its
obligation under this Letter of Credit and shall not thereafter be obligated to
make any further payments under this Letter of Credit.  By paying to [Trustee] the full amount
demanded in accordance therewith, the Letter of Credit Issuer makes no
representation as to the correctness of the amount demanded.

 

If [Trustee] changes its address during the term of this Letter of Credit,
such party must inform the Letter of Credit Issuer and the Presentation Office
promptly and this Letter of Credit will be amended accordingly by the Letter of
Credit Issuer, but failure to so notify will not relieve the Letter of Credit
Issuer or the Presentation Office of its obligations hereunder.

 

[Trustee] may transfer its rights
under this Letter of Credit to any new beneficiary who succeeds [Trustee] under the transactions
contemplated by the [Participation Agreement], and any such new beneficiary (or
subsequent new beneficiary) may subsequently transfer its rights under this
Letter of Credit to any subsequent new beneficiary who succeeds the former new
beneficiary under the transactions contemplated by the Participation Agreement,
in each case in accordance with the terms of this Letter of Credit.  [Trustee] shall furnish written notice of such
intended transfer to the Presentation Office (with a copy to the Letter of
Credit Issuer), together with the original of this Letter of Credit.  In such notice [Trustee] shall designate the new beneficiary, shall
instruct the Letter of Credit Issuer to issue a new letter of credit (on the
same terms and with the same Drawing Amount) to such new beneficiary as the new
beneficiary and shall certify that upon issuance of such new letter of credit
properly advised to the new beneficiary [Trustee] shall discharge the Letter of credit
Issuer

 

131

 

from all
obligation under this Letter of Credit. 
Upon receipt of such notice (together with the original of this Letter
of Credit), the Letter of Credit Issuer will promptly issue such new letter of
credit to the new beneficiary through the Presentation Office.  The transferor shall pay to the Letter of
Credit Issuer a fee of $1,000 in connection with such transfer.

 

Communications with respect to this Letter of Credit (other than
presentation of a Termination Certificate or a Demand Certificate) shall be in
writing or by facsimile transmission, shall be effective when received and
shall be addressed to [Addressee], as [Trustee] at [fax number]
or at [address],
with a copy to [Name, address and fax number of counterparty under the Agreement]
and [Name,
address and fax number of Letter of Credit Issuer] (or such other
office or address designated by the Letter of Credit Issuer by written notice
to the [Trustee]), specifically referring therein to this Letter of Credit by
number.

 

If the Expiry Date of this Letter of Credit (including as so extended
pursuant to the preceding sentence) is not a Business Day, such Expiry Date
shall automatically be extended to the next succeeding Business Day.

 

This Letter of Credit (including the Exhibits hereto) sets forth in full
the Letter of Credit Issuer’s undertaking, and such undertaking shall not in
any way be modified, amended, amplified or limited by reference to any
document, instrument or agreement referred to herein, except to the Uniform
Customs and any such reference shall not be deemed to incorporate herein any
document instrument or agreement.

 

This Letter of Credit is subject to the Uniform Customs and Practice for
Documentary Credits, 1993 Revision, ICC Publication No. 500 (the Uniform
Customs) with the exclusion of Article 48.

 

This Letter of Credit shall be deemed to be made under the laws of the
State of New York and, as to matters not addressed by the Uniform Customs, is
governed by the laws of New York State, excluding, to the extent possible, its
choice of law provisions except for Section 5-1401 of the New York General Obligations
Law.  The Letter of Credit Issuer hereby
knowingly and willingly waives Article 13(b) and 14(d) of the Uniform Customs
and Section 5-112 of the New York Uniform Commercial
Code and will make payment hereunder in accordance with the terms provided herein.  Such waiver shall not affect or be construed
to affect the express time periods for payment set out in this Letter of
Credit.

 

By signing this
Letter of Credit or presenting a Termination Certificate or a Demand
Certificate, the Letter of Credit Issuer and [Trustee] each (i) irrevocably agree that any legal
action or proceeding with respect to this Letter of Credit may be brought in
any state or federal court sitting in New York City, (ii) irrevocably submit to
the nonexclusive jurisdiction of such courts for purposes of this Letter of
Credit, (iii) waive, to the fullest extent permitted by law, any objection such
party may now or hereafter have to the laying of venue in any such action or
proceeding in any such court and (iv) irrevocably waive any and all right to
trial by jury in any legal proceeding arising out of or relating to this Letter
of Credit.  The Letter of Credit Issuer
hereby agrees to receive and accept service of process sent by registered or
certified mail or overnight courier to the address to which notices hereunder
are to be given.

 

[Continues on
next page]

 

132

 

	
  Very truly yours,

  
	
   

  
	
  [Letter of Credit Issuer],

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  
	
   

  	
  [Title]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  
	
   

  	
  [Title]

  	
   

  

 

133

 

Exhibit A to Letter of Credit

 

FORM OF TERMINATION CERTIFICATE

 

[Name and
address of Letter of Credit Issuer]

 

Ladies and
Gentlemen:

 

Re: Irrevocable
Letter of Credit No. [        ] (the Letter of
Credit)  issued by [Letter of Credit Issuer]
(the Letter
of Credit Issuer) in favour of [Addressee], as [Trustee].

 

The undersigned,
[Account
Party] (the Lessee) and [Addressee], as [Trustee] ([Trustee]), hereby certify to the Letter of Credit Issuer
that:

 

1.             The undersigned
demand that the Letter of Credit be terminated in accordance with the terms
thereof, effective the date hereof.

 

2.             The undersigned
are hereby demanding termination of the Letter of Credit because: (a) the
long-term senior unsecured debt obligations of the Lessee are rated at least
“[A]” by Standard & Poors Rating Group, a division of McGraw Hill Inc.
(which for the purposes of this Letter of Credit shall include any successor
thereto) or at least “[A2]” by Moody’s Investor Service Inc. (which for the
purposes of this Letter of Credit shall include any successor thereto) or (b)
[Trustee] has received an [alternative Acceptable Equity Undertaking] as
defined in [Agreement]
(as the same may be amended form time to time).

 

IN WITNESS WHEREOF,
the undersigned have executed and delivered this Termination Certificate as of
the [        ] day of
[        ],
[        ].

 

 

[        ]

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Authorized Signatory

  
	
   

  
	
   

  
	
  [        ],
  not in its

  
	
  individual capacity, but solely as [Trustee]

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Authorized Signatory

  
				

 

134

 

Exhibit B to Letter of Credit

 

FORM OF DEMAND CERTIFICATE

 

[Name and
address of Letter of Credit Issuer]

 

Ladies and
Gentlemen:

 

Re: Irrevocable
Letter of Credit No. [         ]
(the Letter
of Credit) issued by [Letter of Credit Issuer] (the Letter of
Credit Issuer) in favour of [Addressee], as [Trustee].

 

The undersigned,
[Addressee],
as [Trustee]
([Trustee]), hereby certifies to the Letter of Credit Issuer
that:

 

1.             The undersigned
hereby demands payment of
euro[          ] under the
Letter of Credit.

 

2.             The amount
demanded hereby is not in excess of the Drawing Amount on the date hereof.

 

3.             The undersigned
is hereby making a demand under the Letter of Credit, because: (a) an Event of
Default (as such term is defined in [Agreement] (as the same may be amended
from time to time), has occurred and is continuing, (b) the Letter of Credit
will expire within five days and has not been renewed or replaced of (c) the
Letter of Credit Issuer’s long-term senior unsecured debt obligations are rated
below “[AA]” by Standard & Poors Rating Group, a division of McGraw Hill
Inc. (which for the purposes of this Letter of Credit shall include any
successor thereto) or “[Aa2]” by Moody’s Investor Service Inc. (which for the
purposes of this Letter of Credit shall include any successor thereto).

 

4.             The Letter of
Credit Issuer is hereby instructed to make all payments by wire transfer of
immediately available funds to [Trustee]’s account No.
[        ] at
[         ], A.B.A. No.
[         ].

 

IN WITNESS WHEREOF,
[          ] has executed and
delivered this Demand Certificate as of the
[        ] day of
[        ], [        ].

 

 

	
  [        ],
  not in its

  
	
  individual capacity, but solely as [Trustee]

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Authorized Signatory

  

 

135

 

SCHEDULE 11

 

STRUCTURE MEMORANDUM

 

 

136

 

SCHEDULE 12

 

EXISTING GROUP
INDEBTEDNESS

 

1.             Loan of €115,000,000 from eircom to
Eircable Limited.

 

2.             Loan of €13,040,000 from eircom to eircom
Holdings Limited.

 

3.             Loan of €45,000 from ITI to Gofree Limited.

 

4.             Loan of €383,000 from eircom to Lan
Communications Limited.

 

5.             Loan of €4,159,000 from eircom to Indigo
Services Limited.

 

6.             Loan of €8,104,000 from eircom to Eirtrade
Services Limited.

 

7.             Loan of €179,000 from eircom to eircom
International Networks Limited.

 

8.             Loan of €13,328,000 from eircom to eircom
Retail Limited.

 

9.             Loan of €3,437,000 from eircom to eircom
Holdings Limited.

 

10.           Loan of €1,454,000 from eircom to eircom
Investments BV.

 

11.           Loan of €75,233,000 from eircom to Eircable
Limited.

 

12.           Loan of €351,000 from eircom to Gofree
Limited.

 

13.           Loan of €87,000 from eircom to Topsource
Recruitment Limited.

 

14.           Loan of €4,816,000 from ITI to eircom
Holdings Limited.

 

137

 

SIGNATORIES

 

Company

	
   

  
	
  VALENTIA TELECOMMUNICATIONS, an Irish
  unlimited public company

  
	
   

  	
   

  
	
  By:

  	
  PHILIP NOLAN

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  eircom

  
	
   

  	
   

  
	
  EIRCOM LIMITED

  
	
   

  	
   

  
	
  By:

  	
  PETER LYNCH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ITI

  	
   

  
	
   

  	
   

  
	
  IRISH TELECOMMUNICATIONS INVESTMENTS
  LIMITED

  
	
   

  	
   

  
	
  By:

  	
  PETER LYNCH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Original Guarantors

  
	
   

  	
   

  
	
  VALENTIA TELECOMMUNICATIONS, an Irish
  unlimited public company

  
	
   

  	
   

  
	
  By:

  	
  PHILIP NOLAN

  	
   

  
	
   

  	
   

  
	
   

  
	
  EIRCOM LIMITED

  
	
   

  
	
  By:

  	
  PETER LYNCH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  IRISH TELECOMMUNICATIONS INVESTMENTS
  LIMITED

  
	
   

  	
   

  
	
  By:

  	
  PETER LYNCH

  	
   

  

 

138

 

	
  Mandated Lead Arrangers

  
	
   

  	
   

  
	
  ALLIED IRISH BANKS, p.l.c.

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BARCLAYS CAPITAL

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE and JAMES FENNER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDMAN SACHS INTERNATIONAL

  
	
   

  	
   

  
	
  By:

  	
  LITTLETON L. GLOVER III

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND plc

  
	
   

  	
   

  
	
  By:

  	
  ALASDAIR GARNHAM

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Lead Arrangers

  
	
   

  	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  
	
   

  	
   

  
	
  By:

  	
  MICHAEL LLEWELYN JONES

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  MORGAN STANLEY SENIOR FUNDING, INC.

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  

 

139

 

	
  Original Lenders

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE and JAMES FENNER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BARCLAYS BANK PLC

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDMAN SACHS INTERNATIONAL BANK

  
	
   

  	
   

  
	
  By:

  	
  LITTLETON L. GLOVER III

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND plc

  
	
   

  	
   

  
	
  By:

  	
  NEIL ARROWSMITH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ULSTER BANK IRELAND LIMITED

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ALLIED IRISH BANKS, p.l.c.

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CITIBANK INTERNATIONAL plc, IRELAND BRANCH

  
	
   

  	
   

  
	
  By:

  	
  MICHEAL LLEWELYN JONES

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  MORGAN STANLEY BANK

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE (BY POWER OF ATTORNEY)

  	
   

  

 

140

 

	
  Facility Agent

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE and JAMES FENNER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Security Agent

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
   

  
	
  By:

  	
  DAVID BUGGE and JAMES FENNER

  	
   

  

 

141Exhibit 4.1

 

Exhibit 4.1

EXECUTION COPY

 

 

 

INVITROGEN CORPORATION

2% CONVERTIBLE SENIOR NOTES DUE 2023

INDENTURE

DATED AS OF AUGUST 1, 2003

U.S. BANK NATIONAL ASSOCIATION

AS TRUSTEE

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	SECTION 1.1. 	 	DEFINITIONS	 	 	1	 
	SECTION 1.2. 	 	OTHER DEFINITIONS	 	 	7	 
	SECTION 1.3. 	 	TRUST INDENTURE ACT PROVISIONS	 	 	8	 
	SECTION 1.4. 	 	RULES OF CONSTRUCTION	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 2 THE SECURITIES
	 	 	9	 
	 	 	 	 	 
	 	 	 	 
	SECTION 2.1. 	 	FORM AND DATING	 	 	9	 
	SECTION 2.2. 	 	EXECUTION AND AUTHENTICATION	 	 	10	 
	SECTION 2.3. 	 	REGISTRAR, PAYING AGENT AND CONVERSION AGENT	 	 	11	 
	SECTION 2.4. 	 	PAYING AGENT TO HOLD MONEY IN TRUST	 	 	11	 
	SECTION 2.5. 	 	SECURITYHOLDER LISTS	 	 	12	 
	SECTION 2.6. 	 	TRANSFER AND EXCHANGE	 	 	12	 
	SECTION 2.7. 	 	REPLACEMENT SECURITIES	 	 	13	 
	SECTION 2.8. 	 	OUTSTANDING SECURITIES	 	 	13	 
	SECTION 2.9. 	 	TREASURY SECURITIES	 	 	14	 
	SECTION 2.10.	 	TEMPORARY SECURITIES	 	 	14	 
	SECTION 2.11.	 	CANCELLATION	 	 	14	 
	SECTION 2.12.	 	LEGEND; ADDITIONAL TRANSFER AND EXCHANGE
REQUIREMENTS	 	 	15	 
	SECTION 2.13.	 	CUSIP NUMBERS	 	 	17	 
	SECTION 2.14.	 	SENIOR UNSECURED OBLIGATIONS	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 3 REDEMPTION AND PURCHASES
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	SECTION 3.1.	 	RIGHT TO REDEEM; NOTICE TO TRUSTEE	 	 	17	 
	SECTION 3.2.	 	SELECTION OF SECURITIES TO BE REDEEMED	 	 	18	 
	SECTION 3.3.	 	NOTICE OF REDEMPTION	 	 	18	 
	SECTION 3.4.	 	EFFECT OF NOTICE OF REDEMPTION	 	 	19	 
	SECTION 3.5.	 	DEPOSIT OF REDEMPTION PRICE	 	 	19	 
	SECTION 3.6.	 	SECURITIES REDEEMED IN PART	 	 	19	 
	SECTION 3.7.	 	CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION	 	 	19	 
	SECTION 3.8.	 	REPURCHASE OF SECURITIES AT THE OPTION OF HOLDERS
ON SPECIFIC DATES	 	 	20	 
	SECTION 3.9.	 	REPURCHASE OF SECURITIES AT OPTION OF THE HOLDER
UPON REPURCHASE EVENT	 	 	27	 
	SECTION 3.10.	 	COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF
SECURITIES	 	 	35	 
	SECTION 3.11.	 	REPAYMENT TO THE COMPANY	 	 	35	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 4 CONVERSION
	 	 	35	 
	 	 	 	 	 
	 	 	 	 
	SECTION 4.1.	 	CONVERSION PRIVILEGE	 	 	35	 
	SECTION 4.2.	 	CONVERSION PROCEDURE; CONVERSION RATE; FRACTIONAL
SHARES	 	 	37	 
	SECTION 4.3.	 	ADJUSTMENT OF CONVERSION RATE FOR COMMON STOCK	 	 	39	 
	SECTION 4.4.	 	CONSOLIDATION OR MERGER OF THE COMPANY	 	 	47	 
	SECTION 4.5.	 	NOTICE OF ADJUSTMENT	 	 	48	 

i

 

TABLE OF CONTENTS.

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	

	SECTION 4.6. 	 	NOTICE IN CERTAIN EVENTS	 	 	48	 
	SECTION 4.7. 	 	COMPANY TO RESERVE STOCK: REGISTRATION; LISTING	 	 	49	 
	SECTION 4.8. 	 	TAXES ON CONVERSION	 	 	50	 
	SECTION 4.9. 	 	CONVERSION AFTER RECORD DATE	 	 	50	 
	SECTION 4.10.	 	COMPANY DETERMINATION FINAL	 	 	51	 
	SECTION 4.11.	 	RESPONSIBILITY OF TRUSTEE FOR CONVERSION PROVISIONS	 	 	51	 
	SECTION 4.12.	 	UNCONDITIONAL RIGHT OF HOLDERS TO CONVERT	 	 	51	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 5 [RESERVED]
	 	 	51	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 6 COVENANTS
	 	 	51	 
	 	 	 	 	 
	 	 	 	 
	SECTION 6.1. 	 	PAYMENT OF SECURITIES	 	 	51	 
	SECTION 6.2. 	 	SEC REPORTS	 	 	52	 
	SECTION 6.3. 	 	COMPLIANCE CERTIFICATES	 	 	52	 
	SECTION 6.4. 	 	FURTHER INSTRUMENTS AND ACTS	 	 	52	 
	SECTION 6.5. 	 	MAINTENANCE OF CORPORATE EXISTENCE	 	 	52	 
	SECTION 6.6. 	 	RULE 144A INFORMATION REQUIREMENT	 	 	52	 
	SECTION 6.7. 	 	STAY, EXTENSION AND USURY LAWS	 	 	53	 
	SECTION 6.8. 	 	PAYMENT OF SPECIAL INTEREST	 	 	53	 
	SECTION 6.9. 	 	PAYMENT OF CONTINGENT INTEREST	 	 	53	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 7 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR
LEASE
	 	 	54	 
	 	 	 	 	 
	 	 	 	 
	SECTION 7.1. 	 	COMPANY MAY CONSOLIDATE, ETC, ONLY ON CERTAIN TERMS	 	 	54	 
	SECTION 7.2. 	 	SUCCESSOR SUBSTITUTED	 	 	54	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 8 DEFAULT AND REMEDIES
	 	 	54	 
	 	 	 	 	 
	 	 	 	 
	SECTION 8.1. 	 	EVENTS OF DEFAULT	 	 	54	 
	SECTION 8.2. 	 	ACCELERATION	 	 	56	 
	SECTION 8.3. 	 	OTHER REMEDIES	 	 	56	 
	SECTION 8.4. 	 	WAIVER OF DEFAULTS AND EVENTS OF DEFAULT	 	 	57	 
	SECTION 8.5. 	 	CONTROL BY MAJORITY	 	 	57	 
	SECTION 8.6. 	 	LIMITATIONS ON SUITS	 	 	57	 
	SECTION 8.7. 	 	RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT	 	 	58	 
	SECTION 8.8. 	 	COLLECTION SUIT BY TRUSTEE	 	 	58	 
	SECTION 8.9. 	 	TRUSTEE MAY FILE PROOFS OF CLAIM	 	 	58	 
	SECTION 8.10.	 	PRIORITIES	 	 	58	 
	SECTION 8.11.	 	UNDERTAKING FOR COSTS	 	 	59	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 9 TRUSTEE
	 	 	59	 
	 	 	 	 	 
	 	 	 	 
	SECTION 9.1. 	 	DUTIES OF TRUSTEE	 	 	59	 
	SECTION 9.2. 	 	RIGHTS OF TRUSTEE	 	 	60	 
	SECTION 9.3. 	 	INDIVIDUAL RIGHTS OF TRUSTEE	 	 	61	 
	SECTION 9.4. 	 	TRUSTEE’S DISCLAIMER	 	 	61	 
	SECTION 9.5. 	 	NOTICE OF DEFAULT OR EVENTS OF DEFAULT	 	 	61	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	SECTION 9.6.  	 	REPORTS BY TRUSTEE TO HOLDERS	 	 	61	 
	SECTION 9.7.  	 	COMPENSATION AND INDEMNITY	 	 	62	 
	SECTION 9.8.  	 	REPLACEMENT OF TRUSTEE	 	 	62	 
	SECTION 9.9.  	 	SUCCESSOR TRUSTEE BY MERGER, ETC	 	 	63	 
	SECTION 9.10. 	 	ELIGIBILITY; DISQUALIFICATION	 	 	63	 
	SECTION 9.11. 	 	PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY	 	 	63	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	64	 
	 	 	 	 	 
	 	 	 	 
	SECTION 10.1. 	 	SATISFACTION AND DISCHARGE OF INDENTURE	 	 	64	 
	SECTION 10.2. 	 	APPLICATION OF TRUST MONEY	 	 	65	 
	SECTION 10.3. 	 	REPAYMENT TO COMPANY	 	 	65	 
	SECTION 10.4. 	 	REINSTATEMENT	 	 	65	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 11 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	65	 
	 	 	 	 	 
	 	 	 	 
	SECTION 11.1. 	 	WITHOUT CONSENT OF HOLDERS	 	 	65	 
	SECTION 11.2. 	 	WITH CONSENT OF HOLDERS	 	 	66	 
	SECTION 11.3. 	 	COMPLIANCE WITH TRUST INDENTURE ACT	 	 	67	 
	SECTION 11.4. 	 	REVOCATION AND EFFECT OF CONSENTS	 	 	68	 
	SECTION 11.5. 	 	NOTATION ON OR EXCHANGE OF SECURITIES	 	 	68	 
	SECTION 11.6. 	 	TRUSTEE TO SIGN AMENDMENTS, ETC	 	 	68	 
	SECTION 11.7. 	 	EFFECT OF SUPPLEMENTAL INDENTURES	 	 	68	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 12 TAX TREATMENT
	 	 	68	 
	 	 	 	 	 
	 	 	 	 
	SECTION 12.1.  	 	TAX TREATMENT	 	 	68	 
	SECTION 12.2.  	 	COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE	 	 	69	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE 13 MISCELLANEOUS
	 	 	70	 
	 	 	 	 	 
	 	 	 	 
	SECTION 13.1.  	 	TRUST INDENTURE ACT CONTROLS	 	 	70	 
	SECTION 13.2.  	 	NOTICES	 	 	70	 
	SECTION 13.3.  	 	COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS	 	 	71	 
	SECTION 13.4.  	 	CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT	 	 	71	 
	SECTION 13.5.  	 	RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS	 	 	71	 
	SECTION 13.6.  	 	RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION
AGENT	 	 	72	 
	SECTION 13.7.  	 	LEGAL HOLIDAYS	 	 	72	 
	SECTION 13.8.  	 	GOVERNING LAW	 	 	72	 
	SECTION 13.9.  	 	NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS	 	 	72	 
	SECTION 13.10.	 	NO RECOURSE AGAINST OTHERS	 	 	72	 
	SECTION 13.11.	 	SUCCESSORS	 	 	72	 
	SECTION 13.12.	 	MULTIPLE COUNTERPARTS	 	 	72	 
	SECTION 13.13.	 	SEPARABILITY	 	 	73	 
	SECTION 13.14.	 	TABLE OF CONTENTS, HEADINGS, ETC	 	 	73	 

iii

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	SECTION
	
	 	 	 	

	Section
	 	310(a)(1)	 	
9.10
	 	 	(a)(2)	 	
9.10
	 	 	(a)(3)	 	
N.A.**
	 	 	(a)(4)	 	
N.A.
	 	 	(a)(5)	 	
9.10
	 	 	(b)	 	
9.8; 9.10
	 	 	(c)	 	
N.A.
	Section
	 	311(a)	 	
9.11
	 	 	(b)	 	
9.11
	 	 	(c)	 	
N.A.
	Section
	 	312(a)	 	
2.5
	 	 	(b)	 	
13.3
	 	 	(c)	 	
13.3
	Section
	 	313(a)	 	
9.6
	 	 	(b)(1)	 	
N.A.
	 	 	(b)(2)	 	
9.6
	 	 	(c)	 	
9.6; 13.2
	 	 	(d)	 	
9.6
	Section
	 	314(a)	 	
6.2; 6.4; 13.2
	 	 	(b)	 	
N.A.
	 	 	(c)(1)	 	
13.4(a)
	 	 	(c)(2)	 	
13.4(a)
	 	 	(c)(3)	 	
N.A.
	 	 	(d)	 	
N.A.
	 	 	(e)	 	
13.4(b)
	 	 	(f)	 	
N.A.
	Section
	 	315(a)	 	
9.1(b)
	 	 	(b)	 	
9.5; 13.2
	 	 	(c)	 	
9.1(a)
	 	 	(d)	 	
9.1(c)
	 	 	(e)	 	
8.11
	Section
	 	316(a)(last sentence)	 	
2.9
	 	 	(a)(1)(A)	 	
8.5
	 	 	(a)(1)(B)	 	
8.4
	 	 	(a)(2)	 	
N.A.
	 	 	(b)	 	
8.7
	 	 	(c)	 	
13.5
	Section
	 	317(a)(1)	 	
8.8
	 	 	(a)(2)	 	
8.9
	 	 	(b)	 	
2.4

	*
	 	This Cross-Reference Table shall not, for any purpose, be deemed a part
of this Indenture.

	 
	**
	 	N.A. means Not Applicable.

 

 

     THIS INDENTURE dated as of August 1, 2003 is between Invitrogen
Corporation, a corporation duly organized under the laws of the State of
Delaware (the “Company”), and U.S. Bank National Association, a national
banking association organized and existing under the laws of the United States,
as Trustee (the “Trustee”).

     In consideration of the premises and the purchase of the Securities by the
Holders thereof, both parties agree as follows for the benefit of the other and
for the equal and ratable benefit of the registered Holders of the Company’s 2%
Convertible Senior Notes due 2023.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. DEFINITIONS.

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

     “Agent” means any Registrar, Paying Agent or Conversion Agent.

     “Applicable Procedures” means, with respect to any transfer or exchange of
beneficial ownership interests in a Global Security, the rules and procedures
of the Depositary, in each case to the extent applicable to such transfer or
exchange.

     “Applicable Stock” means the shares of Common Stock; provided, that, in
the event of a Repurchase Event occurring prior to August 1, 2010 in which the
Company is not the surviving Person, the term “Applicable Stock” shall mean the
common stock, ordinary shares or American Depositary Shares of such surviving
Person or its direct or indirect parent.

     “Bid Solicitation Agent” means, initially, the Trustee.

     “Board of Directors” means either the board of directors of the Company or
any committee of the Board of Directors authorized to act for it with respect
to this Indenture.

     “Business Day” means each day that is not a Legal Holiday.

     “Capital Stock” of any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, but excluding any debt
securities convertible into such equity.

     “Cash” or “cash” means such coin or currency of the United States as at
any time of payment is legal tender for the payment of public and private
debts.

1

 

     “Certificated Security” means a Security that is in substantially the form
attached hereto as Exhibit A and that does not include the information or the
schedule called for by footnotes 1, 3 and 4 thereof.

     “Common Stock” means the common stock of the Company, $0.01 par value, as
it exists on the date of this Indenture and any shares of any class or classes
of capital stock of the Company resulting from any reclassification or
reclassifications thereof and which have 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 Company and which are not subject to
redemption by the Company; provided, however, that if at any time there shall
be more than one such resulting class, the shares of each such class then so
issuable on conversion of Securities 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.

     “Company” means the party named as such in the first paragraph of this
Indenture until a successor replaces it pursuant to the applicable provisions
of this Indenture, and thereafter “Company” shall mean such successor Company.

     “Contingent Interest” has the meaning set forth in the Securities.

     “Contingent Interest Period” has the meaning set forth in the Securities.

     “Continuing Director” means, at any date of determination, any member of
the Company’s Board of Directors (i) who was a member of the Company’s Board of
Directors on the Issuance Date, or (ii) who was nominated for election or
elected to the Company’s Board of Directors by at least a majority of the
directors who were such Continuing Directors at the time of such nomination or
election or whose election to the Company’s Board of Directors was recommended
or endorsed by at least a majority of the directors who were such Continuing
Directors at the time of such nomination or election.

     “Conversion Agent” has the meaning set forth in Section 2.3.

     “Conversion Notice” has the meaning set forth in Section 4.2(b).

     “Conversion Price” means, at any time, $1,000 divided by the Conversion
Rate in effect at such time, rounded to two decimal places (rounded up if the
third decimal place thereof is 5 or more and otherwise rounded down).

     “Conversion Rate” means initially 14.6547 shares per $1,000 principal
amount of Securities, subject to adjustment as set forth herein.

     “Conversion Value” means, at any time, the amount equal to the product of
the Sales Price at such time multiplied by the then current Conversion Rate.

     “Corporate Trust Office” means the office of the Trustee at which at any
particular time the trust created by this Indenture shall be administered which
office at the date of the execution of this Indenture is located at 550 South
Hope Street, 5th Floor, Los Angeles, California 90071, Attention: Corporate
Trust Services (Invitrogen Corporation — 2% Convertible Senior Notes Due 2023)
or at any other time at such other address as the Trustee may designate from
time to time by notice to the Company.

2

 

     “Default” or “default” means, when used with respect to the Securities,
any event which is or, after notice or passage of time or both, would be an
Event of Default.

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

     “Final Maturity Date” means August 1, 2023.

     “GAAP” means generally accepted accounting principles in the United States
of America as in effect as of the date of this Indenture, including those set
forth in (1) the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants, (2) the statements
and pronouncements of the Financial Accounting Standards Board, (3) such other
statements by such other entity as approved by a significant segment of the
accounting profession and (4) the rules and regulations of the SEC governing
the inclusion of financial statements (including pro forma financial
statements) in registration statements filed under the Securities Act and
periodic reports required to be filed pursuant to Section 13 of the Exchange
Act, including opinions and pronouncements in staff accounting bulletins and
similar written statements from the accounting staff of the SEC.

     “Global Security” means a permanent Global Security that is in
substantially the form attached hereto as Exhibit A and that includes the
information and schedule called for by footnotes 1, 3 and 4 thereof and which
is deposited with the Depositary or its custodian and registered in the name of
the Depositary or its nominee.

     “Holder” or “Securityholder” means the person in whose name a Security is
registered on the Primary Registrar’s books.

     “Indebtedness” means, with respect to any Person, without duplication, (a)
all indebtedness, obligations and other liabilities (contingent or otherwise)
of such Person (i) for borrowed money (including obligations of such Person in
respect of overdrafts, foreign exchange contracts, currency exchange
agreements, interest rate protection agreements, and any loans or advances from
banks, whether or not evidenced by notes or similar instruments) or (ii)
evidenced by credit or loan agreements, bonds, debentures, notes or similar
instruments (whether or not the recourse of the lender is to the whole of the
assets of such Person or to only a portion thereof) (other than any accounts
payable or other accrued current liability or obligation incurred in the
ordinary course of business in connection with the obtaining of materials or
services), (b) all reimbursement obligations and other liabilities (contingent
or otherwise) of such Person with respect to letters of credit, bank guarantees
or bankers’ acceptances, (c) all obligations and liabilities (contingent or
otherwise) of such Person (i) in respect of leases of such Person required, in
conformity with GAAP, to be accounted for as capitalized lease obligations on
the balance sheet of such Person (as determined by the Company), or (ii) under
any lease or related document (including a purchase agreement, conditional sale
or other title retention agreement) in connection with the lease of real
property or improvement thereon (or any personal property included as part of
any such lease) which provides that such Person is contractually obligated to
purchase or cause a third party to purchase the leased property or pay an
agreed upon residual value of the leased property to the lessor (whether or not
such lease transaction is characterized as an operating lease or a capitalized
lease in accordance with GAAP), (d) all obligations (contingent or otherwise)
of such Person with respect to any interest rate or other swap, cap, floor or
collar agreement, hedge agreement, forward contract, or other similar
instrument or agreement or foreign currency hedge, exchange, purchase or
similar instrument or agreement; (e) all direct or indirect guaranties,
agreements to be jointly liable or similar agreements by such Person in respect
of, and obligations or liabilities of such Person to

3

 

purchase or otherwise acquire or otherwise assure a creditor against loss
in respect of, indebtedness, obligations or liabilities of another Person of
the kind described in clauses (a) through (d), and (f) any and all deferrals,
renewals, extensions, refinancings and refundings of, or amendments,
modifications or supplements to, any indebtedness, obligation or liability of
the kind described in clauses (a) through (e).

     “Indenture” means this Indenture as amended or supplemented from time to
time pursuant to the terms of this Indenture.

     “Initial Purchasers” means UBS Securities LLC and Credit Suisse First
Boston LLC.

     “Issuance Date” means the date on which the Securities are first
authenticated and issued.

     “Market Price” means:

     (a) with respect to Securities, as of any date of determination, the
average of the secondary market bid quotations per $1,000 principal amount of
Securities obtained by the Bid Solicitation Agent (which shall initially be the
Trustee) for $1,000,000 principal amount of Securities at approximately 4:00
p.m., New York City time, on such date of determination from three securities
dealers (none of which shall be an Affiliate of the Company) selected by the
Company, which may include any of the Initial Purchasers, provided, that if at
least three such bids cannot be reasonably obtained by the Bid Solicitation
Agent, but two bids are obtained, then the average of the two bids shall be
used, and if only one such bid can be reasonably obtained by the Bid
Solicitation Agent, this one bid will be used; provided, however, if (a) the
Bid Solicitation Agent, through the exercise of reasonable efforts, is unable
to obtain at least one bid from a securities dealer, or (b) in the Company’s
reasonable judgment, the bid quotations are not indicative of the secondary
market value of the Securities as of such date of determination, then the
Market Price of a Security for such date of determination shall equal (1) the
Conversion Rate in effect as of such date of determination multiplied by (2)
the average Sale Price of a share of Common Stock for the five Trading Days
ending on such date of determination, appropriately adjusted to take into
account the occurrence, during the period commencing on the first of such
Trading Days during such 20-Trading Day period and ending on the date of
determination, as the case may be, of any event described in Sections 4.3 or
4.4;

     (b) with respect to Common Stock, the average of the Sale Price of one
share of Common Stock for the 20-Trading Day period immediately preceding and
including the third Business Day immediately preceding the applicable
Repurchase Date (or if the third Business Day immediately preceding the
relevant date of determination is not a Trading Day, then on the last Trading
Day immediately preceding such third Business Day); and

     (c) with respect to Applicable Stock, the average of the Sale Price of one
share of Applicable Stock for the 20-Trading Day period immediately preceding
and including the third Business Day immediately preceding the Fundamental
Change Repurchase Date (or if the third Business Day immediately preceding the
relevant date of determination is not a Trading Day, then on the last Trading
Day immediately preceding such third Business Day).

     “Measurement Period” means the last 30 consecutive Trading Days in a
fiscal quarter, beginning with the third fiscal quarter of 2003.

4

 

     “Officer” means the Chairman or any Co-Chairman of the Board, any Vice
Chairman of the Board, the Chief Executive Officer, the President, any Vice
President, the Chief Financial Officer, the Controller, the Secretary or any
Assistant Controller or Assistant Secretary of the Company.

     “Officers’ Certificate” means a certificate signed by the principal
executive officer, principal financial officer or principal accounting officer
of the Company and by one other Officer.

     “Opinion of Counsel” means a written opinion from legal counsel. The
counsel may be an employee of or counsel to the Company or the Trustee.

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

     “Principal” or “principal” of a debt security, including the Securities,
means the principal of the security plus, when appropriate, the premium, if
any, on the security.

     “Redemption Date” when used with respect to any Security to be redeemed,
means the date fixed for such redemption pursuant to this Indenture.

     “Redemption Price” when used with respect to any Security to be redeemed,
means the price fixed for such redemption pursuant to this Indenture, as set
forth in the form of Security annexed as Exhibit A hereto.

     “Registration Rights Agreement” means the Registration Rights Agreement
dated, as of August 1, 2003, between the Company and the Initial Purchasers.

     “Rule 144” means Rule 144 under the Securities Act or any successor to
such Rule.

     “Rule 144A” means Rule 144A under the Securities Act or any successor to
such Rule.

     “Sale Price” of one share of Common Stock or one share of Applicable Stock
on any date means the closing per share sale price of such Common Stock or
Applicable Stock, as applicable (or, if no closing sale price is reported, the
average of the bid and ask prices or, if there is more than one bid or ask
price, the average of the average bid and the average ask prices) on such date
as reported in composite transactions on the Nasdaq National Market or, if the
shares of Applicable Stock are not quoted on the Nasdaq National Market, as
reported on a U.S. national or regional securities exchange, or if not listed
on a U.S. national or regional securities exchange, as reported by the National
Association of Securities Dealers Automated Quotation System or by the National
Quotation Bureau Incorporated. In the absence of such a quotation, the Board
of Directors of the Company shall be entitled to make a good faith
determination of the sale price on the basis it considers appropriate which
shall be conclusive.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the 2% Convertible Senior Notes due 2023 or any of them
(each, a “Security”), as amended or supplemented from time to time, that are
issued under this Indenture.

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

5

 

     “Securities Custodian” means the Trustee, as custodian with respect to the
Securities in global form, or any successor thereto.

     “Significant Subsidiary” means, in respect of any Person, a Subsidiary of
such Person that would constitute a “significant subsidiary” as such term is
defined under Rule 1-02 of Regulation S-X under the Securities Act and the
Exchange Act.

     “Special Interest” has the meaning specified in paragraph 2 of the
Security.

     “Subsidiary” means, in respect of any Person, any corporation,
association, partnership or other business entity of which more than 50% of the
total voting power of shares of Capital Stock or other interests (including
partnership interests) entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers, general partners
or trustees thereof is at the time owned or controlled, directly or indirectly,
by (i) such Person; (ii) such Person and one or more Subsidiaries of such
Person; or (iii) one or more Subsidiaries of such Person.

     “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and
regulations thereunder as in effect on the date of this Indenture, except as
provided in Section 11.3, and except to the extent any amendment to the Trust
Indenture Act expressly provides for application of the Trust Indenture Act as
in effect on another date.

     “Trading Day” means, with respect to any security, each Monday, Tuesday,
Wednesday, Thursday and Friday, other than any day on which securities are not
generally traded on the principal exchange or market in which such security is
traded.

     “Transfer Restricted Global Security” means a Global Security that is a
Transfer Restricted Security.

     “Transfer Restricted Security” means a Security required to bear the
restricted legend set forth in the form of Security set forth in Exhibit A of
this Indenture.

     “Trustee” means the party named as such in the first paragraph of this
Indenture until a successor replaces it in accordance with the provisions of
this Indenture, and thereafter means the successor.

     “Trust Officer” means, with respect to the Trustee, any officer assigned
to the Corporate Trust Office, and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject.

     “Unrestricted Certificated Security” means a Certificated Security that is
not a Transfer Restricted Security.

     “Unrestricted Global Security” means a Global Security that is not a
Transfer Restricted Security.

     “Vice President” when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title “vice president.”

     “Voting Stock” of a Person means all classes of Capital Stock or other
interests (including partnership interests) of such Person then outstanding and
normally entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof.

6

 

     SECTION 1.2. OTHER DEFINITIONS.

	 	 	 	 
	Term	 	Defined in Section
	
	 	

	97% Conversion Date	 	 	
4.2(e)
	“Agent Members”	 	 	
2.1(b)
	“Bankruptcy Law”	 	 	
8.1
	“Change in Control”	 	 	3.9(a)(1)
	“Closing Price”	 	 	4.6(d)
	“Commencement Date”	 	 	
3.8(c)
	“Company Order”	 	 	
2.2
	“Conversion Agent”	 	 	
2.3
	“Conversion Date”	 	 	
4.2
	“Conversion Price”	 	 	
4.6
	“Current Market Price”	 	 	
4.3(f)
	“Custodian”	 	 	
8.1
	“DTC”	 	 	
2.1
	“Depositary”	 	 	
2.1
	“Determination Date”	 	 	
4.6(c)
	“Event of Default”	 	 	
8.1
	"'ex’ date”	 	 	
4.3(h)
	“Excess Amount”	 	 	
4.3(e)
	“Expiration Date”	 	 	
4.6(c)
	“Expiration Time”	 	 	
4.6(c)
	“Fair Market Value”	 	 	
4.3(f)
	“Legal Holiday”	 	 	
12.7
	“Legend”	 	 	
2.12
	“NNM”	 	 	
4.6(d)
	“Non-Electing Share”	 	 	
4.4
	“Note Measurement Period”	 	 	
4.1(a)(ii)
	“Notice of Default”	 	 	
8.1
	“Offer Amount”	 	 	
3.8(c)
	“Paying Agent”	 	 	
2.3
	“Primary Registrar”	 	 	
2.3
	“Principal Value Conversion”	 	 	
4.2(e)
	“Purchase Agreement”	 	 	
2.1
	“Purchase Offer”	 	 	
3.8(a)
	“Purchased Shares”	 	 	
4.6(c)
	“QIB”	 	 	
2.1
	“Record Date”	 	 	
4.3(h)
	“Reference Period”	 	 	
4.3(d)(2)
	“Registrar”	 	 	
2.3
	“Regular Record Date”	 	 	
3.4
	“Repurchase Date”	 	 	
3.8(a)(1)
	“Repurchase Event”	 	 	
3.9(a)(1)
	“Repurchase Event Company Notice”	 	 	
3.9(a)(2)
	“Repurchase Event Repurchase Price”	 	 	
3.9(a)(3)
	“Repurchase Notice”	 	 	
3.8(a)(2)

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	Term	 	Defined in Section
	
	 	

	“Repurchase Price”	 	 	
3.8(a)(1)
	“Rights Plan”	 	 	
4.6(c)
	“Spin-Off”	 	 	
4.3(d)(3)
	“Tender Period”	 	 	
3.8(c)
	“Triggering Distribution”	 	 	
4.6(c)
	“Trigger Event”	 	 	
4.3(d)(4)

     SECTION
1.3. TRUST INDENTURE ACT PROVISIONS.

     Whenever this Indenture refers to a provision of the TIA, that provision
is incorporated by reference in and made a part of this Indenture. The
Indenture shall also include those provisions of the TIA required to be
included herein by the provisions of the Trust Indenture Reform Act of 1990.
The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities;

     “indenture security holder” means a Securityholder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and
“obligor” on the indenture securities means the Company or any other obligor on
the Securities.

     All other terms used in this Indenture that are defined in the TIA,
defined by TIA reference to another statute or defined by any SEC rule and not
otherwise defined herein have the meanings assigned to them therein.

     SECTION 1.4. RULES OF CONSTRUCTION.

     Unless the context otherwise requires:

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

               (B)     an accounting term not otherwise defined has the meaning assigned to
it in accordance with GAAP;

               (C)     words in the singular include the plural, and words in the plural
include the singular;

               (D)     provisions apply to successive events and transactions;

               (E)     the term “merger” includes a statutory share exchange and the term
“merged” has a correlative meaning;

               (F)     the masculine gender includes the feminine and the neuter;

8

 

               (G)     references to agreements and other instruments include subsequent
amendments thereto; and

               (H)     “herein,” “hereof” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other
subdivision.

ARTICLE 2

THE SECURITIES

     SECTION 2.1. FORM AND DATING.

     The Securities and the Trustee’s certificate of authentication shall be
substantially in the respective forms set forth in Exhibit A, which Exhibit is
incorporated in and made part of this Indenture. The Securities may have
notations, legends or endorsements required by law, stock exchange rule or
usage. The Company shall provide any such notations, legends or endorsements
to the Trustee in writing. Each Security shall be dated the date of its
authentication. The Securities are being offered and sold by the Company
pursuant to a Purchase Agreement, dated July 28, 2003 (the “Purchase
Agreement”), between the Company and the Initial Purchasers, in transactions
exempt from, or not subject to, the registration requirements of the Securities
Act.

     (a) Restricted Global Securities. All of the Securities are initially
being offered and sold to qualified institutional buyers as defined in Rule
144A (collectively, “QIBs” or individually, each a “QIB”) in reliance on Rule
144A under the Securities Act and shall be issued initially in the form of one
or more Restricted Global Securities, which shall be deposited on behalf of the
purchasers of the Securities represented thereby with the Trustee, at its
Corporate Trust Office, as custodian for the depositary, The Depository Trust
Company (“DTC”) (such depositary, or any successor thereto, being hereinafter
referred to as the “Depositary”), and registered in the name of its nominee,
Cede & Co., duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the Restricted Global
Securities may from time to time be increased or decreased by adjustments made
on the records of the Securities Custodian as hereinafter provided, subject in
each case to compliance with the Applicable Procedures.

     (b) Global Securities In General. Each Global Security shall represent
such of the outstanding Securities as shall be specified therein and each shall
provide that it shall represent the aggregate amount of outstanding Securities
from time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased,
as appropriate, to reflect exchanges, redemptions, purchases or conversions of
such Securities. Any adjustment of the aggregate principal amount of a Global
Security to reflect the amount of any increase or decrease in the amount of
outstanding Securities represented thereby shall be made by the Trustee in
accordance with instructions given by the Holder thereof as required by Section
2.12 hereof and shall be made on the records of the Trustee and the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depositary or under the Global Security, and the Depositary
(including, for this purpose, its nominee) 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 (A) 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 (B)
impair, as between the

9

 

Depositary and its Agent Members, the operation of customary practices
governing the exercise of the rights of a Holder of any Security.

     (c) Book Entry Provisions. The Company shall execute and the Trustee
shall, in accordance with this Section 2.1(c), authenticate and deliver
initially one or more Global Securities that (i) shall be registered in the
name of the Depositary, (ii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instructions and (iii) shall bear
legends substantially to the following effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

     SECTION 2.2. EXECUTION AND AUTHENTICATION.

     An Officer shall sign the Securities for the Company by manual or
facsimile signature attested by the manual or facsimile signature of the
Secretary or an Assistant Secretary of the Company. Typographic and other
minor errors or defects in any such facsimile signature shall not affect the
validity or enforceability of any Security which has been authenticated and
delivered by the Trustee.

     If an Officer whose signature is on a Security no longer holds that office
at the time the Trustee authenticates the Security, the Security shall be valid
nevertheless.

     A Security shall not be valid until an authorized signatory of the Trustee
manually signs the certificate of authentication on the Security. The
signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

     The Trustee shall authenticate and make available for delivery Securities
for original issue in the aggregate principal amount of up to $373,750,000 upon
receipt of a written order or orders of the Company signed by an Officer of the
Company (a “Company Order”). The Company Order shall specify the amount of
Securities to be authenticated, shall provide that all such Securities will be
represented by a Restricted Global Security and the date on which each original
issue of Securities is to be authenticated. The aggregate

10

 

principal amount of Securities outstanding at any time may not exceed
$373,750,000 except as provided in Section 2.7.

     The Trustee shall act as the initial authenticating agent. Thereafter,
the Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent shall have the same rights as an Agent to deal with the
Company or an Affiliate of the Company.

     The Securities shall be issuable only in registered form without coupons
and only in denominations of $1,000 principal amount and any integral multiple
thereof.

     SECTION 2.3. REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

     The Company shall maintain one or more offices or agencies where
Securities may be presented for registration of transfer or for exchange (each,
a “Registrar”), one or more offices or agencies where Securities may be
presented for payment (each, a “Paying Agent”), one or more offices or agencies
where Securities may be presented for conversion (each, a “Conversion Agent”)
and one or more offices or agencies where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The
Company will at all times maintain a Paying Agent, Conversion Agent, Registrar
and an office or agency where notices and demands to or upon the Company in
respect of the Securities and this Indenture may be served in the Borough of
Manhattan, The City of New York. One of the Registrars (the “Primary
Registrar”) shall keep a register of the Securities and of their transfer and
exchange.

     The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture. 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 Agent not a party to this
Indenture. If the Company fails to maintain a Registrar, Paying Agent,
Conversion Agent or agent for service of notices and demands in any place
required by this Indenture, or fails to give the foregoing notice, the Trustee
shall act as such. The Company or any Affiliate of the Company may act as
Paying Agent (except for the purposes of Section 6.1 and Article 10).

     The Company hereby initially designates the Trustee as Paying Agent,
Registrar, Custodian, Bid Solicitation Agent and Conversion Agent, and each of
the Corporate Trust Office of the Trustee and the office or agency of the
Trustee in the Borough of Manhattan, The City of New York (which shall
initially be U.S. Bank Trust National Association, an Affiliate of the Trustee,
as agent of the Trustee located at 100 Wall Street, Suite 1600, New York, New
York 10005, Attention: Corporate Trust Services (Invitrogen Corporation — 2%
Convertible Senior Notes due 2023), one such office or agency of the Company
for each of the aforesaid purposes.

     SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST.

     Prior to 11:00 a.m., New York City time, on each due date of the principal
of or interest, if any, on any Securities, the Company shall deposit with a
Paying Agent a sum sufficient to pay such principal or interest, if any, so
becoming due. Subject to Section 5.2, a Paying Agent shall hold in trust for
the benefit of Securityholders or the Trustee all money held by the Paying
Agent for the payment of principal of or interest, if any, on the Securities,
and shall notify the Trustee of any default by the Company (or any other
obligor on the Securities) in making any such payment. If the Company or an
Affiliate of the Company acts as Paying

11

 

Agent, it shall, before 11:00 a.m., New York City time, on each due date
of the principal of or interest on any Securities, segregate the money 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 the Trustee may at any
time during the continuance of any default, upon written request to a Paying
Agent, require such Paying Agent to pay forthwith to the Trustee all sums so
held in trust by such Paying Agent. Upon doing so, the Paying Agent (other
than the Company) shall have no further liability for the money.

     SECTION 2.5. SECURITYHOLDER 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
Securityholders. If the Trustee is not the Primary Registrar, the Company
shall furnish to the Trustee on or before each semiannual interest payment
date, 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 Securityholders.

     SECTION 2.6. TRANSFER AND EXCHANGE.

     (a) Subject to compliance with any applicable additional requirements
contained in Section 2.12, when a Security is presented to a Registrar with a
request to register a transfer thereof or to exchange such Security for an
equal principal amount of Securities of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested;
provided, however, that every Security presented or surrendered for
registration of transfer or exchange shall be duly endorsed or accompanied by
an assignment form and, if applicable, a transfer certificate each in the form
included in Exhibit A, and in form satisfactory to the Registrar duly executed
by the Holder thereof or its attorney duly authorized in writing. To permit
registration of transfers and exchanges, upon surrender of any Security for
registration of transfer or exchange at an office or agency maintained pursuant
to Section 2.3, the Company shall execute and the Trustee shall authenticate
Securities of a like aggregate principal amount at the Registrar’s request.
Any exchange or transfer shall be without charge, except that the Company or
the Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto, and provided, that
this sentence shall not apply to any exchange pursuant to Section 2.10,
2.12(a), 3.6, 3.11, 4.2 (last paragraph) or 11.5.

     Neither the Company, any Registrar nor the Trustee shall be required to
exchange or register a transfer of (i) any Securities for a period of 15 days
next preceding any mailing of a notice of Securities to be redeemed, (ii) any
Securities or portions thereof selected or called for redemption (except, in
the case of redemption of a Security in part, the portion thereof not to be
redeemed) or (iii) any Securities or portions thereof in respect of which a
Change in Control Purchase Notice has been delivered and not withdrawn by the
Holder thereof (except, in the case of the purchase of a Security in part, the
portion thereof not to be purchased).

     All Securities issued upon any transfer or exchange of Securities shall be
valid obligations of the Company, evidencing the same debt and entitled to the
same benefits under this Indenture, as the Securities surrendered upon such
transfer or exchange.

     (b) Any Registrar appointed pursuant to Section 2.3 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.

12

 

     (c) Each Holder of a Security agrees to indemnify the Company and the
Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder’s Security in violation of any provision of this
Indenture and/or applicable United States federal or state securities law.

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

     SECTION 2.7. REPLACEMENT SECURITIES.

     If any mutilated Security is surrendered to the Company, a Registrar or
the Trustee, or the Company, a Registrar and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of any Security, and there
is delivered to the Company, the applicable Registrar and the Trustee such
security or indemnity as will be required by them to save each of them
harmless, then, in the absence of notice to the Company, such Registrar or the
Trustee that such Security has been acquired by a bona fide 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 redeemed or purchased
by the Company pursuant to Article 3, the Company in its discretion may,
instead of issuing a new Security, pay, redeem or purchase such Security, as
the case may be.

     Upon the issuance of any new Securities under this Section 2.7, 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
reasonable expenses (including the reasonable fees and expenses of the Trustee
or the Registrar) in connection therewith.

     Every new Security issued pursuant to this Section 2.7 in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and 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 2.7 are (to the extent lawful) 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 2.8. OUTSTANDING SECURITIES.

     Securities outstanding at any time are all Securities authenticated by the
Trustee, except for those canceled by it, those converted pursuant to Article
4, those delivered to it for cancellation or surrendered for transfer or
exchange and those described in this Section 2.8 as not outstanding.

13

 

     If a Security is replaced pursuant to Section 2.7, it ceases to be
outstanding unless the Company receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

     If a Paying Agent (other than the Company or an Affiliate of the Company)
holds on a Redemption Date, a Repurchase Date, a Repurchase Event Purchase Date
or the Final Maturity Date money sufficient to pay the principal of (including
premium, if any) and accrued interest on Securities (or portions thereof)
payable on that date, then on and after such Redemption Date, Repurchase Date,
Repurchase Event Purchase Date or the final Maturity Date, as the case may be,
such Securities (or portions thereof, as the case may be) shall cease to be
outstanding and interest on them shall cease to accrue; provided, that if such
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefore satisfactory to the Trustee
has been made.

     Subject to the restrictions contained in Section 2.9, a Security does not
cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.

     SECTION 2.9. TREASURY SECURITIES.

     In determining whether the Holders of the required principal amount of
Securities have concurred in any notice, direction, waiver or consent,
Securities owned by the Company or any other obligor on the Securities or by
any Affiliate of the Company or of such other obligor shall be disregarded,
except that, for purposes of determining whether the Trustee shall be protected
in relying on any such notice, direction, waiver or consent, only Securities
which a Trust Officer of the Trustee actually knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith shall
not be disregarded if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to the Securities and that
the pledgee is not the Company or any other obligor on the Securities or any
Affiliate of the Company or of such other obligor.

     SECTION 2.10. TEMPORARY SECURITIES.

     Until definitive Securities are ready for delivery, the Company may
prepare and execute, and, upon receipt of a Company Order, the Trustee shall
authenticate and deliver, temporary Securities. Temporary Securities shall be
substantially in the form of definitive Securities but may have variations that
the Company with the consent of the Trustee considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate and deliver definitive Securities in exchange for
temporary Securities.

     SECTION 2.11. CANCELLATION.

     The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar, the Paying Agent and the Conversion Agent shall
forward to the Trustee or its agent any Securities surrendered to them for
transfer, exchange, redemption, payment or conversion. The Trustee and no one
else shall cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, redemption, payment, conversion or
cancellation and shall deliver the canceled Securities to the Company. All
Securities which are redeemed, purchased or otherwise acquired by the Company
or any of its Subsidiaries prior to the Final Maturity Date shall be delivered
to the Trustee for cancellation, and the Company may not hold or resell such
Securities or issue any new Securities to replace any such Securities or any
Securities that any Holder has converted pursuant to Article 4. Without
limitation to the foregoing, any Securities acquired by any

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investment bankers or other purchasers pursuant to Section 3.7 shall be
surrendered for conversion and thereafter cancelled, and may not be reoffered,
sold or otherwise transferred.

     SECTION 2.12. LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS.

     (a) If Securities are issued upon the transfer, exchange or replacement of
Securities subject to restrictions on transfer and bearing the legends set
forth on the forms of Securities attached hereto as Exhibit A (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 if
requested by the Company or such Registrar, 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; provided, that no such evidence need be supplied in connection
with the sale of such Security pursuant to a registration statement that is
effective at the time of such sale. Upon (i) provision of such satisfactory
evidence if requested, or (ii) notification by the Company to the Trustee and
Registrar of the sale of such Security pursuant to a registration statement
that is effective at the time of such sale, the Trustee, at the written
direction of the Company, shall authenticate and deliver a Security that does
not bear the Legend. If the Legend is removed from the face of a Security and
the Security is subsequently held by an Affiliate of the Company, the Legend
shall be reinstated.

     (b) A Global Security may not be transferred, in whole or in part, to any
Person other than the Depositary or a nominee or any successor thereof, and no
such transfer to any such other Person may be registered; provided, that the
foregoing shall not prohibit any transfer of a Security that is issued in
exchange for a Global Security but is not itself a Global Security. No
transfer of a Security to any Person shall be effective under this Indenture or
the Securities unless and until such Security has been registered in the name
of such Person. Notwithstanding any other provisions of this Indenture or the
Securities, transfers of a Global Security, in whole or in part, shall be made
only in accordance with this Section 2.12.

     (c) Subject to the succeeding paragraph, every Security shall be subject
to the restrictions on transfer provided in the Legend other than a Restricted
Global Security. Whenever any Transfer Restricted Security other than a
Restricted Global 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.

     (d) The restrictions imposed by the Legend upon the transferability of any
Security shall cease and terminate when such Security has been sold pursuant to
an effective registration statement under the Securities Act or transferred in
compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or, if earlier, upon the expiration of the holding period applicable
to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision). Any Security as to which such restrictions on transfer shall have
expired in accordance with their terms or shall have terminated may, upon a
surrender of such Security for exchange to the Registrar in accordance with the
provisions of this Section 2.12 (accompanied, in the event that such
restrictions on transfer have terminated by reason of a transfer in

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compliance with Rule 144 or any successor provision, by, if requested, 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 restrictive Legend. The Company
shall inform the Trustee of the effective date of any registration statement
registering the Securities under the Securities Act. The Trustee shall not be
liable for any action taken or omitted to be taken by it in good faith in
accordance with the aforementioned opinion of counsel or registration
statement.

     (e) As used in the preceding two paragraphs of this Section 2.12, the term
“transfer” encompasses any sale, pledge, transfer, hypothecation or other
disposition of any Security.

     (f) The provisions of clauses (i), (ii), (iii) and (iv) below shall apply
only to Global Securities:

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

          (ii) Securities issued in exchange for a Global Security or any
portion thereof shall be issued in definitive, fully-registered book
entry 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.

          (iii) Subject to the provisions of clause (v) below, the
registered Holder may grant proxies and otherwise authorize any
Person, including Agent Members 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.

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

          (v) Neither 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
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 2.13. CUSIP NUMBERS.

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

     SECTION 2.14. SENIOR UNSECURED OBLIGATIONS.

     The Securities are senior unsecured obligations of the Company and rank
equally in right of payment with all existing and future unsecured and
unsubordinated indebtedness of the Company senior to existing and future
subordinated indebtedness of the Company.

ARTICLE 3

REDEMPTION AND PURCHASES

     SECTION 3.1. RIGHT TO REDEEM; NOTICE TO TRUSTEE.

     The Securities may be redeemed at the election of the Company, as a whole
or from time to time in part, at any time on or after August 1, 2010, at the
Redemption Price specified in paragraph 6 of the form of Security attached
hereto as Exhibit A, together with accrued and unpaid interest (including
Contingent Interest, if any) and Special Interest, if any, up to, but not
including, the Redemption Date; provided, that if the Redemption Date falls
after an interest payment record date and on or before an interest payment
date, then the interest (including Contingent Interest, if any) and Special
Interest, if any, will be payable to the Holders in whose name the Securities
are registered at the close of business on the interest payment record date.

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     If the Company elects to redeem Securities pursuant to this Section 3.1
and paragraph 6 of the Securities, it shall notify the Trustee at least 45 days
prior to the Redemption Date as fixed by the Company (unless a shorter notice
shall be satisfactory to the Trustee) of the Redemption Date and the principal
amount of Securities to be redeemed. If fewer than all of the Securities are
to be redeemed, the record date relating to such redemption shall be selected
by the Company and given to the Trustee, which record date shall not be less
than ten days after the date of notice to the Trustee.

     SECTION 3.2. SELECTION OF SECURITIES TO BE REDEEMED.

     If less than all of the Securities are to be redeemed, unless the
procedures of the Depositary provide otherwise, the Trustee shall, at least 30
days but not more than 60 days prior to the Redemption Date, select the
Securities to be redeemed. The Trustee shall make the selection from the
Securities outstanding and not previously called for redemption, by lot, or in
its discretion, on a pro rata basis. Securities in denominations of $1,000 may
only be redeemed in whole. The Trustee may select for redemption portions
(equal to $1,000 or any integral multiple thereof) of the principal of
Securities that have denominations larger than $1,000. Provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

     If any Security selected for partial redemption is converted in part
before termination of the conversion right with respect to the portion of the
Security so selected, the converted portion of such Security shall be deemed to
be the portion selected for redemption. Securities which have been converted
during a selection of Securities to be redeemed shall be treated by the Trustee
as outstanding for the purpose of such selection.

     SECTION 3.3. NOTICE OF REDEMPTION.

     At least 30 days but not more than 60 days before a Redemption Date, the
Company shall mail or cause to be mailed a notice of redemption to each Holder
of Securities to be redeemed at such Holder’s address as it appears on the
Primary Registrar’s books.

     The notice shall identify the Securities (including CUSIP numbers) to be
redeemed and shall state:

               (1) the Redemption Date;

               (2) the Redemption Price;

               (3) the then current Conversion Price;

               (4) the name and address of each Paying Agent and Conversion Agent;

               (5) that Securities called for redemption must be presented and
surrendered to a Paying Agent to collect the Redemption Price;

               (6) that Holders who wish to convert Securities must surrender such
Securities for conversion no later than the close of business on the Business
Day immediately preceding the Redemption Date and must satisfy the other
requirements set forth in paragraph 9 of the Securities;

               (7) that, unless the Company defaults in making the payment of the
Redemption Price, interest on Securities called for redemption shall cease
accruing on and after the Redemption Date and the

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only remaining right of the Holder shall be to receive payment of the
Redemption Price plus accrued interest, if any upon presentation and surrender
to a Paying Agent of the Securities; and

               (8) if any Security is being redeemed in part, the portion of the
principal amount of such Security to be redeemed and that, after the Redemption
Date, upon presentation and surrender of such Security, a new Security or
Securities in aggregate principal amount equal to the unredeemed portion
thereof will be issued.

     If any of the Securities to be redeemed is in the form of a Global
Security, then the Company shall modify such notice to the extent necessary to
accord with the procedures of the Depositary applicable to redemptions. At the
Company’s written request, which request shall (i) be irrevocable once given
and (ii) set forth all relevant information required by clauses (1) through (8)
of the preceding paragraph, the Trustee shall give the notice of redemption in
the Company’s name and at the Company’s expense.

     SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION.

     Once notice of redemption is mailed, Securities called for redemption
become due and payable on the Redemption Date and at the Redemption Price
stated in the notice, together with accrued and unpaid interest (including
Contingent Interest, if any) and Special Interest, if any, except for
Securities that are converted in accordance with the provisions of Article 4.
Upon presentation and surrender to a Paying Agent, Securities called for
redemption shall be paid at the Redemption Price, plus accrued and unpaid
interest (including Contingent Interest, if any) and Special Interest, if any,
up to but not including the Redemption Date; provided, that if the Redemption
Date falls after an interest payment record date and on or before an interest
payment date, then the interest (including Contingent Interest, if any) and
Special Interest, if any, will be payable to the Holders in whose name the
Securities are registered at the close of business on the interest payment
record date (each, a “Regular Record Date”).

     SECTION 3.5. DEPOSIT OF REDEMPTION PRICE.

     Prior to 11:00 a.m. New York City time, on the Redemption Date, the
Company shall deposit with a Paying Agent (or, if the Company acts as Paying
Agent, shall segregate and hold in trust) an amount of money (in immediately
available funds if deposited on such Redemption Date) sufficient to pay the
Redemption Price of and accrued and unpaid interest (including Contingent
Interest, if any) and Special Interest, if any, on all Securities to be
redeemed on that date, other than Securities or portions thereof called for
redemption on that date which have been delivered by the Company to the Trustee
for cancellation or have been converted. The Paying Agent shall as promptly as
practicable return to the Company any money not required for that purpose
because of the conversion of Securities pursuant to Article 4 or, if such money
is then held by the Company in trust and is not required for such purpose, it
shall be discharged from the trust.

     SECTION 3.6. SECURITIES REDEEMED IN PART.

     Upon presentation and surrender of a Security that is redeemed in part,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder a new Security equal in principal amount to the unredeemed portion of
the Security surrendered.

     SECTION 3.7. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION.

     In connection with any redemption of Securities, the Company may arrange
for the purchase and conversion of any Securities called for redemption by an
agreement with one or more investment bankers or

19

 

other purchasers to purchase such Securities by paying to a Paying Agent
(other than the Company or any of its Affiliates) in trust for the Holders, on
or before 11:00 a.m. New York City time on the Redemption Date, an amount that,
together with any amounts deposited with such Paying Agent by the Company for
the redemption of such Securities, is not less than the Redemption Price,
together with interest (including Contingent Interest, if any) and Special
Interest, if any, accrued to, but not including, the Redemption Date, of such
Securities. Notwithstanding anything to the contrary contained in this Article
3, the obligation of the Company to pay the Redemption Price of such
Securities, including all accrued and unpaid interest, shall be deemed to be
satisfied and discharged to the extent such amount is so paid by such
purchasers; provided, however, that nothing in this Section 3.7 shall relieve
the Company of its obligation to pay the Redemption Price, plus accrued and
unpaid interest (including Contingent Interest, if any) and Special Interest,
if any, to but excluding the relevant Redemption Date, on Securities called for
redemption. If such an agreement with one or more investment banks or other
purchasers is entered into, any Securities called for redemption and not
surrendered for conversion by the Holders thereof prior to the relevant
Redemption Date may, at the option of the Company upon written notice to the
Trustee, be deemed, to the fullest extent permitted by law, acquired by such
purchasers from such Holders and (notwithstanding anything to the contrary
contained in Article 4) surrendered by such purchasers for conversion, all as
of 11:00 a.m. New York City time on the Redemption Date, subject to payment of
the above amount as aforesaid. The Paying Agent shall hold and pay to the
Holders whose Securities are selected for redemption any such amount paid to it
for purchase in the same manner as it would money deposited with it by the
Company for the redemption of Securities. Without the Paying Agent’s prior
written consent, no arrangement between the Company and such purchasers for the
purchase and conversion of any Securities shall increase or otherwise affect
any of the powers, duties, responsibilities or obligations of the Paying Agent
as set forth in this Indenture, and the Company agrees to indemnify the Paying
Agent from, and hold it harmless against, any loss, liability or expense
arising out of or in connection with any such arrangement for the purchase and
conversion of any Securities between the Company and such purchasers, including
the costs and expenses incurred by the Paying Agent in the defense of any claim
or liability arising out of or in connection with the exercise or performance
of any of its powers, duties, responsibilities or obligations under this
Indenture.

     SECTION 3.8. REPURCHASE OF SECURITIES AT THE OPTION OF HOLDERS ON SPECIFIC
DATES.

     (a) Optional Put.

               (1) Securities shall be repurchased by the Company, at the option of the
Holder thereof, on August 1, 2010, August 1, 2013 and August 1, 2018, (each, a
“Repurchase Date”), at a repurchase price equal to 100% of the principal amount
of those Securities plus accrued and unpaid interest (including Contingent
Interest, if any) and Special Interest, if any, to, but not including, such
Repurchase Date (the “Repurchase Price”), subject to satisfaction by or on
behalf of the Holder of the requirements set forth in Section 3.8(a)(3).

               (2) No later than 20 Business Days prior to each Repurchase Date, the
Company shall mail a written notice of the repurchase right by first class mail
to the Trustee and to each Holder (and to beneficial owners as required by
applicable law). The notice shall include a form of notice to be completed by
the Holder and returned to the Company in the event that the Holder elects such
right to so repurchase (the “Repurchase Notice”) and shall briefly state, as
applicable:

                         (i) the date by which the Repurchase Notice must be delivered to the
Paying Agent in order for a Holder to exercise the repurchase right;

20

 

                         (ii) the Repurchase Date;

                         (iii) the Repurchase Price;

                         (iv) whether the Repurchase Price will be paid in Cash or, if permitted
hereunder, in shares of Common Stock, or a combination thereof and, in the case
of a combination, the percentage of each;

                         (v) if the Company elects to pay the Repurchase Price in shares of Common
Stock or a combination of Cash and shares of Common Stock, that the number of
shares of Common Stock each Holder will receive will equal the portion of the
Repurchase Price to be paid in shares of Common Stock divided by the Market
Price of one share of Common Stock;

                         (vi) if the Company elects to pay the Repurchase Price in shares of Common
Stock or a combination of Cash and shares of Common Stock, the method of
calculating the Market Price of the shares of Common Stock;

                         (vii) that because the Market Price of one share of Common Stock will be
determined prior to the Repurchase Date, Holders of the Securities will bear
the market risk that the shares of Common Stock to be received will decline in
value between the date such Market Price is determined and the Repurchase Date;

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

                         (ix) the Conversion Rate and any adjustments thereto;

                         (x) that the Securities as to which a Repurchase Notice has been given may
be converted if they are otherwise convertible pursuant to Article 4 only if
the Repurchase Notice has been withdrawn in accordance with the terms of this
Indenture;

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

                         (xii) that the Repurchase Price for any Security as to which a Repurchase
Notice has been duly given and not withdrawn will be paid promptly following
the later of the Repurchase Date and the time of surrender of such Security;

                         (xiii) the procedures the Holder must follow to exercise its put right
under this Section 3.8(a);

                         (xiv) the conversion rights, if any, of the Securities;

                         (xv) the procedures for withdrawing a Repurchase Notice;

                         (xvi) that, unless the Company defaults in making payment of such
Repurchase Price, interest (including Contingent Interest, if any) and Special
Interest, if any, on Securities surrendered for repurchase by the Company will
cease to accrue on and after the Repurchase Date; and

                         (xvii) the CUSIP number(s) of the Securities.

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               At the Company’s request, the Trustee shall give the notice of repurchase
right in the Company’s name and at the Company’s expense; provided, however,
that the Company makes such request at least three Business Days (unless a
shorter period shall be satisfactory to the Trustee) prior to the date by which
such notice of repurchase right must be given to the Holder in accordance with
this Section 3.8(a)(2); provided, further, that the text of the notice of
repurchase right shall be prepared by the Company.

               (3) A Holder may exercise its right specified in Section 3.8(a)(1) upon
delivery of a properly completed Repurchase Notice to the Paying Agent at any
time during the period beginning at 9:00 a.m., New York City time, on the date
that is 20 Business Days immediately preceding the relevant Repurchase Date
until 5:00 p.m., New York City time, on the Business Day immediately preceding
such Repurchase Date, stating:

                         (i) the certificate number of the Security which the Holder will deliver
to be repurchased or the appropriate Depositary procedures if Certificated
Securities have not been issued;

                         (ii) the portion of the principal amount of the Security which the Holder
will deliver to be repurchased, which portion must be in principal amounts of
$1,000 or an integral multiple of $1,000;

                         (iii) that such Security shall be repurchased by the Company as of the
Repurchase Date pursuant to the terms and conditions specified in the
Securities and in this Indenture; and

                         (iv) in the event the Company elects, pursuant to Section 4.2(b), to pay
the Repurchase Price, in whole or in part, in shares of Common Stock but such
portion of the Repurchase Price shall ultimately be paid to such Holder
entirely in Cash because any of the conditions to payment of the Repurchase
Price in shares of Common Stock is not satisfied prior to 5:00 p.m., New York
City time, on the Business Day immediately preceding the relevant Repurchase
Date, as set forth in Section 4.2(b), whether such Holder elects to (A)
withdraw such Repurchase Notice as to some or all of the Securities to which
such Repurchase Notice relates (stating the principal amount and certificate
numbers, if any or the appropriate Depositary procedures, if applicable, of the
Securities as to which such withdrawal shall relate), or (B) receive Cash in
respect of the entire Repurchase Price for all Securities (or portions thereof)
to which such Repurchase Notice relates.

     The delivery of such Security to the Paying Agent with, or at any time
after delivery of, the Repurchase Notice (together with all necessary
endorsements) at the offices of the Paying Agent shall be a condition to the
receipt by the Holder of the Repurchase Price therefor; provided, however, that
such Repurchase Price shall be so paid pursuant to this Section 3.8(a) only if
the Security so delivered to the Paying Agent shall conform in all respects to
the description thereof in the related Repurchase Notice.

     If a Holder, in such Holder’s Repurchase Notice and in any written notice
of withdrawal delivered by such Holder pursuant to the terms of 3.8(c), fails
to indicate such Holder’s choice with respect to the election set forth in
Section 3.8(a)(3)(iv), such Holder shall be deemed to have elected to receive
Cash in respect of the entire Repurchase Price for all Securities subject to
such Repurchase Notice in the circumstances set forth in such Section
3.8(a)(3)(iv).

     The Company shall repurchase from the Holder thereof, pursuant to this
Section 3.8(a), a portion of a Security, so long as the principal amount of
such portion is $1,000 or an integral multiple of $1,000.

22

 

     Provisions of this Indenture that apply to the repurchase of all of a
Security also apply to the repurchase of such portion of such Security.

     Any repurchase by the Company contemplated pursuant to the provisions of
this Section 3.8(a) shall be consummated by the delivery of the consideration
to be received by the Holder promptly following the later of the Repurchase
Date and the time of delivery of the Security.

     Notwithstanding anything contained herein to the contrary, any Holder
delivering to the Paying Agent the Repurchase Notice contemplated by this
Section 3.8(a)(3) shall have the right to withdraw such Repurchase Notice at
any applicable time prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding the Repurchase Date by delivery of a written notice of
withdrawal to the Paying Agent in accordance with Section 3.8(c).

     The Paying Agent shall promptly notify the Company of the receipt by it of
any Repurchase Notice or written notice of withdrawal thereof.

     (b) The Company’s Right to Elect Manner of Payment of Repurchase Price.

               (1) If the Securities are to be repurchased on August 1, 2010, pursuant to
Section 3.8(a)(1), the Repurchase Price must be paid in Cash. If the
Securities to be repurchased on August 1, 2013 or August 1, 2018, pursuant to
Section 3.8(a)(1), the Repurchase Price may be paid for at the election of the
Company, in Cash or shares of Common Stock, or in any combination of Cash and
shares of Common Stock, subject to the conditions set forth in Section
3.8(b)(2). The Company shall designate, in the notice of repurchase right
delivered pursuant to Section 3.8(a)(2), whether the Company will repurchase
the Securities for Cash or, if permitted hereunder, shares of Common Stock, or,
if a combination thereof, the percentages of the Repurchase Price in respect of
which it will pay in Cash or shares of Common Stock; provided, however, that
the Company will pay Cash for fractional interests in a share of Common Stock.
For purposes of determining the existence of potential fractional interests,
all Securities subject to repurchase by the Company held by a Holder shall be
considered together (no matter how many separate certificates are to be
presented). Each Holder whose Securities are repurchased pursuant to Section
3.8(a) shall receive the same percentage of Cash or, if permitted hereunder,
shares of Common Stock in payment of the Repurchase Price for such Securities,
(i) except as provided in this Section 3.8(b)(1) with regard to the payment of
Cash in lieu of fractional shares of Common Stock and (ii) in the event that
the Company is unable to purchase the Securities of the Holder or Holders for
shares of Common Stock because any necessary qualifications or registration of
the shares of Common Stock under applicable securities laws cannot be obtained,
the Company may purchase the Securities of such Holder or Holders for Cash.
The Company may not change its election with respect to the consideration (or
components or percentages of components thereof) to be paid once the Company
has given its notice of repurchase right to Holders except in the event of a
failure to satisfy, prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding the Repurchase Date, any condition to the payment of the
Repurchase Price in whole or in part, in shares of Common Stock.

               (2) If the Company elects to pay all or a portion of the Repurchase Price
of Securities in respect of which a Repurchase Notice pursuant to Section
3.8(a)(3) has been given in shares of Common Stock, the number of shares of
Common Stock to be issued shall be equal to the portion of the Repurchase
Price to be paid in shares of Common Stock divided by the Market Price of one
share of Common Stock, subject to satisfaction of the conditions set forth in
the second succeeding paragraph.

23

 

     The Company will not issue any fraction of a share of Common Stock in
payment of the Repurchase Price. Instead, the Company will make a Cash payment
(calculated to the nearest cent) equal to such fraction multiplied by the
Market Price of one share of Common Stock. If a Holder elects to have more
than one Security purchased, the number of shares of Common Stock shall be
based on the aggregate amount of Securities to be purchased.

     The Company’s right to exercise its election to repurchase Securities
through the issuance of shares of Common Stock shall be conditioned upon:

                                        (i) the registration of such shares of Common Stock under the Securities
Act and the Exchange Act, in each case, if required;

                                        (ii) any qualification or registration of such shares of Common Stock
under applicable state securities laws, if necessary, or the availability of an
exemption from such qualification and registration;

                                        (iii) the listing of such shares of Common Stock on a United States
national securities exchange or the quotation of such shares of Common Stock in
an inter-dealer quotation system of any registered United States national
securities association; and

                                        (iv) the receipt by the Trustee of an Officers’ Certificate stating: (A)
that the terms of the issuance of the shares of Common Stock are in conformity
with this Indenture; (B) that the shares of Common Stock to be issued in
payment of the Repurchase Price in respect of Securities have been duly
authorized and, when issued and delivered pursuant to the terms of this
Indenture in payment of the Repurchase Price in respect of Securities, will be
validly issued, fully paid, nonassessable and free from preemptive rights; (C)
that the conditions immediately above, the conditions in clauses (i)-(iii)
above and the condition set forth in the second succeeding paragraph regarding
issuance of a press release have been satisfied in all material respects; and
(D) the number of shares of Common Stock to be issued for each $1,000 principal
amount of Securities and the Sale Price of a share of Common Stock on each
Trading Day during the period commencing on the first Trading Day of the period
during which the Market Price is calculated and ending on the Trading Day
immediately preceding the Repurchase Date; and

                                        (v) the receipt by the Trustee of an Opinion of Counsel stating that: (A)
the shares of Common Stock to be issued in payment of the Repurchase Price in
respect of Securities have been duly authorized, and when issued and delivered
pursuant to the terms of this Indenture in payment of the Repurchase Price in
respect of Securities, will be validly issued, fully paid and nonassessable
and, to the best of such counsel’s knowledge, free from preemptive rights; and
(B) the conditions in clauses (i) through (iii) above have been satisfied in
all material respects.

     If the foregoing conditions are not satisfied with respect to a Holder or
Holders prior to 5:00 p.m., New York City time, on the Business Day immediately
preceding the Repurchase Date, and the Company has elected to repurchase the
Securities pursuant to this Section 3.8(b) through the issuance of Common
Stock, the Company shall pay the entire Repurchase Price of the Securities of
such Holder or Holders in Cash.

     Upon determination of the actual number of shares of Common Stock to be
issued upon repurchase of Securities, the Company shall be required to
disseminate a press release through a public medium as is customary for such a
press release.

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               (3) Covenants of the Company. All shares of Common Stock delivered upon
repurchase of the Securities shall be newly issued shares, shall be duly
authorized, validly issued, fully paid and nonassessable, and shall be free
from preemptive rights and free of any lien or adverse claim.

               (4) Taxes. If a Holder of a repurchased Security is paid in shares of
Common Stock, the Company shall pay any documentary, stamp or similar issue or
transfer tax due on such issue of shares of Common Stock. However, the Holder
shall pay any such tax which is due because the Holder requests the shares of
Common Stock to be issued in a name other than the Holder’s name. The Paying
Agent may refuse to deliver the certificates representing the shares of Common
Stock being issued in a name other than the Holder’s name until the Paying
Agent receives a sum sufficient to pay any tax which will be due because the
shares of Common Stock are to be issued in a name other than the Holder’s name.
Nothing contained herein shall preclude any income tax withholding required by
law or regulations.

     (c) Effect of Repurchase Notice.

     Upon receipt by the Paying Agent of the Repurchase Notice specified in
Section 3.8(a)(3), the Holder of the Security in respect of which such
Repurchase Notice was given shall (unless such Repurchase Notice is withdrawn
as specified in the following paragraph) thereafter be entitled to receive
solely the Repurchase Price with respect to such Security. Such Repurchase
Price shall be paid to such Holder, subject to receipts of Cash and/or
securities by the Paying Agent, promptly following the later of (a) the
Repurchase Date with respect to such Security (provided the conditions in
Section 3.8(a)(3) have been satisfied) and (b) the time of delivery of such
Security to the Paying Agent by the Holder thereof in the manner required by
Section 3.8(a)(3). Securities in respect of which a Repurchase Notice has been
given by the Holder thereof may not be converted pursuant to Article IV on or
after the date of the delivery of such Repurchase Notice unless such Repurchase
Notice has first been validly withdrawn as specified in the following
paragraph.

     A Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the
Repurchase Notice at any time prior to 5:00 p.m., New York City time, on the
Business Day immediately preceding the Repurchase Date, specifying:

          (a) the certificate number, if any, or the appropriate Depositary
procedures, if applicable, of the Security in respect of which such notice
of withdrawal is being submitted;

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

          (c) the principal amount, if any, of such Security which remains
subject to the original Repurchase Notice and which has been or will be
delivered for repurchase by the Company.

     (d) Deposit of Repurchase Price.

     Prior to 10:00 a.m., New York City time, on the applicable Repurchase
Date, the Company shall deposit with the Paying Agent (or if the Company or a
Subsidiary or an Affiliate of any of them is acting as the Paying Agent, shall
segregate and hold in trust as provided in Section 2.4) an amount of Cash (in
immediately available funds if deposited on such Business Day) and/or shares of
Common Stock, if permitted hereunder, sufficient to pay the aggregate
Repurchase Price of all the Securities or portions thereof which are to be
repurchased on such Repurchase Date.

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     If the Paying Agent holds, in accordance with the terms hereof, at 10:00
a.m., New York City time, on the Business Day immediately following the
applicable Repurchase Date, Cash and/or shares of Common Stock, if permitted
hereunder, sufficient to pay the Repurchase Price of any Securities for which a
Repurchase Notice has been tendered and not withdrawn pursuant to Section
3.8(c), then, immediately after such Repurchase Date, such Securities will
cease to be outstanding and interest (including, Contingent Interest, if any)
and Special Interest, if any, on such Securities will cease to accrue, whether
or not such Securities are delivered to the Paying Agent, and the rights of the
Holders in respect thereof shall terminate (other than the right to receive the
Repurchase Price upon delivery of such Securities).

     As soon as practicable on and after the Repurchase Date, the Company shall
deliver to each Holder entitled to receive shares of Common Stock through the
Paying Agent, a certificate (other than in the case of Holders of Securities in
book-entry form with DTC, which shares shall be delivered in accordance with
DTC customary practices) for the number of full shares of Common Stock issuable
in payment of the Repurchase Price and Cash in lieu of any fractional
interests. The person in whose name the certificate for the shares of Common
Stock is registered shall be treated as a holder of record of shares of Common
Stock on the Repurchase Date. No payment or adjustment will be made for
dividends on the shares of Common Stock the record date for which occurred on
or prior to the Repurchase Date.

     (e) Securities Repurchased in Part.

     Any Certificated Security which is to be repurchased 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 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 repurchased.

     (f) Covenant to Comply With Securities Laws Upon Repurchase of Securities.

     When complying with the provisions of Section 3.8(a) 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), and
subject to any exemptions available under applicable law, the Company shall:

          (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor
provision) under the Exchange Act, as applicable;

          (b) file the related Schedule TO (or any successor schedule, form or
report) under the Exchange Act, as applicable; and

          (c) otherwise comply with all federal and state securities laws so as
to permit the rights and obligations under Section 3.8 to be exercised in
the time and in the manner specified therein.

     To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section 3.8, the Company’s compliance with
such laws and regulations shall not in and of itself cause a breach of its
obligations under this Section 3.8.

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     (g) Repayment to the Company.

     The Paying Agent shall return to the Company any Cash or shares of Common
Stock that remains unclaimed for two years, together with interest or
dividends, if any, thereon, held by it for the payment of the Repurchase Price;
provided, however, to the extent that the aggregate amount of Cash or shares of
Common `Stock deposited by the Company pursuant to Section 4.4 exceeds the
aggregate Repurchase Price of the Securities or portions thereof which the
Company is obligated to repurchase on the Repurchase Date, then, promptly after
the Repurchase Date, the Paying Agent shall return any such excess to the
Company.

     SECTION 3.9. REPURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON
REPURCHASE EVENT.

     (a) Repurchase Event Put.

               (1) General. If a Repurchase Event occurs at any time prior to August 1,
2010, each Holder will have the right to require the Company to repurchase all
of its Securities not previously called for redemption, or any portion of such
Securities, at a purchase price equal to 100% of the principal amount of all
such Securities, plus accrued and unpaid interest, including Contingent
Interest, if any, on such Securities to, but not including, the Repurchase
Event Repurchase Date (the “Repurchase Event Repurchase Price”), subject to
satisfaction by or on behalf of any Holder of the requirements set forth in
Section 3.9(b)(3). The date the Company shall repurchase the Securities
pursuant to this Section 3.9(a) (the “Repurchase Event Repurchase Date”) must
be within 30 days of the date of the mailing of the Repurchase Event Company
Notice under Section 3.9(a)(2). No Holder shall have the right to require the
Company to repurchase its Securities under this Section 3.9 if a Repurchase
Event occurs on or after August 1, 2010.

     A “Repurchase Event” shall be deemed to have occurred upon the occurrence
of either a “Change in Control” or a “Termination of Trading.”

     A “Change of Control” shall be deemed to have occurred if any of the
following occurs after the date hereof:

                                        (i) any “Person” or “group,” (as such terms are defined below) within the
meaning of Sections 13(d) and 14(d)(2) of the Exchange Act or any successor
provision to either of the foregoing, including any group acting for the
purpose of acquiring, holding 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, of more than 50% of the total
voting power of all classes of the Company’s voting stock and/or warrants or
options to acquire such voting stock, calculated on a fully diluted basis;

                                        (ii) the sale, lease, transfer, conveyance or other disposition, in one or
a series of related transactions, of all or substantially all of the properties
or assets of the Company to any “Person” or “group,” within the meaning of
Sections 13(d)(3) and 14(d)(2) of the Exchange Act or any successor provision
to either of the foregoing, including any group acting for the purpose of
acquiring, holding or disposing of securities within the meaning of Rule
13d-5(b)(1) under the Exchange Act;

                                        (iii) any consolidation or merger of the Company with or into another
Person (or vice versa) except pursuant to a transaction in which the persons
that “beneficially owned,” directly or indirectly, the shares of the Company’s
voting stock immediately prior to such transaction “beneficially own”
immediately after such transaction, directly or indirectly, shares of voting
stock representing not less than a

27

 

majority of the total voting power of all outstanding classes of voting
stock of the continuing or surviving corporation in substantially the same
proportion as such ownership prior to the transaction;

                                        (iv) the approval by the requisite stockholders of the Company of a plan
of liquidation or dissolution of the Company; or

                                        (v) the first day on which a majority of the members of the Company’s
Board of Directors are not Continuing Directors.

     A “Termination of Trading” shall be deemed to have occurred if, after the
date hereof, the Common Stock (or other common stock into which the Securities
are then convertible) is neither listed for trading on a United States national
securities exchange nor approved for trading on an established automated
over-the-counter trading market in the United States.

     A Repurchase Event will not be deemed to have occurred if either:

                        (i) the last sale price of our Common Stock for any five
trading days during the ten trading days immediately preceding the
change in control is at least equal to 105% of the conversion price
in effect on such trading day; or

                        (ii) in the case of a merger or consolidation, at least 95% of
the consideration (excluding cash payments for fractional shares and
cash payments pursuant to dissenters’ appraisal rights) in the
merger or consolidation constituting the change in control consists
of common stock traded on a United States national securities
exchange or quoted on the Nasdaq National Market (or which will be
so traded or quoted when issued or exchanged in connection with such
change in control) and as a result of such transaction or
transactions the Securities become convertible solely into such
common stock.

               (2) Notice of Repurchase Event. No later than 30 days after the
occurrence of a Repurchase Event that occurs prior to August 1, 2010, the
Company shall mail a written notice of Repurchase Event (the “Repurchase Event
Company Notice”) by first class mail to the Trustee and to each Holder (and to
beneficial owners as required by applicable law). The notice shall include a
form of notice to be completed by the Holder in the event the Holder elects
such right to repurchase pursuant to this Section 3.9 (the “Repurchase Event
Repurchase Notice”) and shall briefly state, as applicable:

                                        (i) the events causing a Repurchase Event and the date of such Repurchase
Event;

                                        (ii) that the Holder has a right to require the Company to repurchase the
Holder’s Securities;

                                        (iii) the date by which the Repurchase Event Repurchase Notice must be
delivered to the Paying Agent in order for a Holder to exercise the Repurchase
Event repurchase right;

                                        (iv) the Repurchase Event Repurchase Date;

                                        (v) the Repurchase Event Repurchase Price;

28

 

                                        (vi) whether the Repurchase Event Repurchase Price will be paid in Cash or
shares of Applicable Stock, or a combination thereof and, in the case of a
combination, the percentage of each;

                                        (vii) if the Company elects to pay the Repurchase Event Repurchase Price
in shares of Applicable Stock or a combination of Cash and shares of Applicable
Stock, that the number of shares of Applicable Stock each Holder will receive
will equal the portion of the Repurchase Event Repurchase Price to be paid in
shares of Applicable Stock divided by the Market Price of one share of
Applicable Stock;

                                        (viii) if the Company elects to pay the Repurchase Event Repurchase Price
in shares of Applicable Stock or a combination of Cash and shares of Applicable
Stock, the method of calculating the Market Price of the shares of Applicable
Stock;

                                        (ix) that because the Market Price of one share of Applicable Stock will
be determined prior to the Repurchase Event Repurchase Date, Holders of the
Securities will bear the market risk that the shares of Applicable Stock to be
received will decline in value between the date such Market Price is determined
and the Repurchase Event Repurchase Date;

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

                                        (xi) the Conversion Rate applicable on the Repurchase Event Company Notice
Date;

                                        (xii) that the Securities as to which a Repurchase Event Repurchase Notice
has been given may be converted if they are otherwise convertible pursuant to
Article 4 only if the Repurchase Event Repurchase Notice has been withdrawn in
accordance with the terms of this Indenture;

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

                                        (xiv) that the Repurchase Event Repurchase Price for any Security as to
which a Repurchase Event Repurchase Notice has been duly given and not
withdrawn will be paid promptly following the later of the Fundamental
Repurchase Date and the time of surrender of such Security;

                                        (xv) the procedures the Holder must follow to exercise its put right under
this Section 3.9(a);

                                        (xvi) the conversion rights, if any, of the Securities;

                                        (xvii) the procedures for withdrawing a Repurchase Event Repurchase
Notice;

                                        (xviii) that, unless the Company defaults in making payment of such
Repurchase Event Repurchase Price, interest and Additional Amounts, if any, on
Securities surrendered for repurchase by the Company will cease to accrue on
and after the Repurchase Event Repurchase Price; and

                                        (xix) the CUSIP number(s) of the Securities.

29

 

               At the Company’s request, the Trustee shall give the Repurchase Event
Company Notice in the Company’s name and at the Company’s expense; provided,
however, the Company makes such request at least three Business Days (unless a
shorter period shall be satisfactory to the Trustee) prior to the date by which
such Repurchase Event Company Notice must be given to the Holders in accordance
with this Section 3.9(a)(2); provided, further, that the text of the Repurchase
Event Company Notice shall be prepared by the Company.

               (3) Repurchase Event Repurchase Notice. A Holder may exercise its right
specified in Section 3.9(a)(1) upon delivery of a properly completed Repurchase
Event Repurchase Notice to the Paying Agent at any time from the opening of
business on the date of the Repurchase Event Company Notice until 5:00 p.m.,
New York City time, on the Business Day immediately preceding the Repurchase
Event Repurchase Date, stating:

                                        (i) the certificate number of the Security which the Holder will deliver
to be repurchased or the appropriate depositary procedures if Certificated
Securities have not been issued;

                                        (ii) the portion of the principal amount of the Security which the Holder
will deliver to be repurchased, which portion must be $1,000 or an integral
multiple of $1,000;

                                        (iii) that such Security shall be repurchased on the Repurchase Event
Repurchase Date pursuant to the terms and conditions specified in the
Securities and in this Indenture; and

                                        (iv) in the event the Company elects, pursuant to Section 3.9(b), to pay
the Repurchase Event Repurchase Price, in whole or in part, in shares of
Applicable Stock but such portion of the Repurchase Event Repurchase Price
shall ultimately be paid to such Holder entirely in Cash because any of the
conditions to payment of the Repurchase Event Repurchase Price in shares of
Applicable Stock is not satisfied prior to 5:00 p.m., New York City time, on
the Business Day immediately preceding the Repurchase Event Repurchase Date, as
set forth in Section 3.9(b)(2), whether such Holder elects to (A) withdraw such
Repurchase Event Repurchase Notice as to some or all of the Securities to which
such Repurchase Event Repurchase Notice relates (stating the principal amount
and certificate numbers, if any, or the appropriate Depositary procedures, if
applicable, of the Securities as to which such withdrawal shall relate), or (B)
receive Cash in respect of the entire Repurchase Event Repurchase Price for all
Securities (or portions thereof) to which such Repurchase Event Repurchase
Notice relates.

     The delivery of such Security to the Paying Agent with, or at any time
after delivery of, the Repurchase Event Repurchase Notice (together with all
necessary endorsements) at the offices of the Paying Agent shall be a condition
to the receipt by the Holder of the Repurchase Event Repurchase Price therefor;
provided, however, that such Repurchase Event Repurchase Price shall be so paid
pursuant to this Section 3.9(a) only if the Security so delivered to the Paying
Agent shall conform in all respects to the description thereof set forth in the
related Repurchase Event Repurchase Notice.

     If a Holder, in such Holder’s Repurchase Event Repurchase Notice and in
any written notice of withdrawal delivered by such Holder pursuant to the terms
of Section 3.9(c), fails to indicate such Holder’s choice with respect to the
election set forth in Section 3.9(a)(3)(iv), such Holder shall be deemed to
have elected to receive Cash in respect of the entire Repurchase Event
Repurchase Price for all Securities subject to such Repurchase Event Repurchase
Notice in the circumstances set forth in such Section 3.9(a)(3)(iv).

30

 

     The Company shall repurchase from the Holder thereof, pursuant to this
Section 3.9(a), a portion of a Security, so long as the principal amount of
such portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the repurchase of all of a Security also apply to the
repurchase of such portion of such Security.

     Any repurchase by the Company contemplated pursuant to the provisions of
this Section 3.9(a) shall be consummated by the delivery of the consideration
to be received by the Holder promptly following the later of the Repurchase
Event Repurchase Date and the time of delivery of the Security.

     Notwithstanding anything contained herein to the contrary, any Holder
delivering to the Paying Agent the Repurchase Event Repurchase Notice
contemplated by this Section 3.9(a)(3) shall have the right to withdraw such
Repurchase Event Repurchase Notice at any time prior to 5:00 p.m., New York
City time, on the Business Day immediately preceding the Repurchase Event
Repurchase Date by delivery of a written notice of withdrawal to the Paying
Agent in accordance with Section 3.9(c).

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

     (b) The Company’s Right to Elect Manner of Payment of Repurchase Event
Repurchase Price.

               (1) The Securities to be repurchased with respect to any Repurchase Event
Repurchase Date pursuant to Section 3.9(a)(1) may be paid for at the election
of the Company in Cash or shares of Applicable Stock, or in any combination of
Cash and shares of Applicable Stock, subject to the conditions set forth in
Section 3.9(b)(2). The Company shall designate, in the Repurchase Event
Company Notice delivered pursuant to Section 3.9(a)(2), whether the Company
will repurchase the Securities for Cash or shares of Applicable Stock, or, if a
combination thereof, the percentages of the Repurchase Event Repurchase Price
in respect of which it will pay in Cash or shares of Applicable Stock;
provided, however, that the Company will pay Cash for fractional interests in
shares of Applicable Stock. For purposes of determining the existence of
potential fractional interests, all Securities subject to repurchase by the
Company held by a Holder shall be considered together (no matter how many
separate certificates are to be presented). Each Holder whose Securities are
repurchased pursuant to Section 3.9(a) shall receive the same percentage of
Cash or shares of Applicable Stock in payment of the Repurchase Event
Repurchase Price for such Securities, except (i) as provided in this Section
3.9(b)(1) with regard to the payment of Cash in lieu of fractional shares of
Applicable Stock and (ii) in the event that the Company is unable to purchase
the Securities of a Holder or Holders for shares of Applicable Stock because
any necessary qualifications or registrations of the shares of Applicable Stock
under applicable securities laws cannot be obtained, the Company may purchase
the Securities of such Holder or Holders for Cash. The Company may not change
its election with respect to the consideration (or components or percentages of
components thereof) to be paid once the Company has given its Repurchase Event
Company Notice to Holders except in the event of a failure to satisfy, prior to
5:00 p.m., New York City time, on the Business Day immediately preceding the
Repurchase Event Repurchase Date, any condition to the payment of the
Repurchase Event Repurchase Price in whole or in part, in shares of Applicable
Stock.

               (2) If the Company elects to pay all or a portion of the Repurchase Event
Repurchase Price of Securities in respect of which a Repurchase Event
Repurchase Notice pursuant to Section 3.9(a)(3) has been given in Applicable
Stock, the number of shares of Applicable Stock to be issued shall be equal to
(i) the portion of the Repurchase Event Repurchase Price to be paid in
Applicable Stock divided by (ii) the Market Price of one share of Applicable
Stock, subject to satisfaction of the conditions set forth in the second
succeeding paragraph.

31

 

     The Company will not issue any fraction of a share of Applicable Stock in
payment of the Repurchase Event Repurchase Price. Instead, the Company will
make a Cash payment (calculated to the nearest cent) equal to such fraction
multiplied by the Market Price of one share of Applicable Stock. If a Holder
elects to have more than one Security purchased, the number of shares of
Applicable Stock shall be based on the aggregate amount of Securities to be
purchased.

     The Company’s right to exercise its election to repurchase Securities
through the issuance of shares of Applicable Stock shall be conditioned upon:

                                        (i) the registration of such shares of Applicable Stock under the
Securities Act and the Exchange Act, in each case, if required; and

                                        (ii) any qualification or registration of such shares of Applicable Stock
under applicable state securities laws, if necessary, or the availability of an
exemption from such qualification and registration;

                                        (iii) the receipt by the Trustee of an Officers’ Certificate stating (A):
that the terms of the issuance of the shares of Applicable Stock are in
conformity with this Indenture; (B) that the shares of Applicable Stock to be
issued in payment of the Repurchase Event Repurchase Price in respect of
Securities have been duly authorized and, when issued and delivered pursuant to
the terms of this Indenture in payment of the Repurchase Event Repurchase Price
in respect of Securities, will be validly issued, fully paid, nonassessable and
free from preemptive rights; (C) that the conditions immediately above, the
conditions in clauses (i)-(ii) above and the condition set forth in the second
succeeding paragraph regarding issuance of a press release have been satisfied
in all material respects; and (D) the number of shares of Applicable Stock to
be issued for each $1,000 principal amount of Securities and the Sale Price of
a share of Applicable Stock on each Trading Day during the period commencing on
the first Trading Day of the period during which the Market Price is calculated
and ending on the Trading Day immediately preceding the Repurchase Event
Repurchase Date; and

                                        (iv) the receipt by the Trustee of an Opinion of Counsel stating that: (A)
the shares of Applicable Stock to be issued by the Company in payment of the
Repurchase Event Repurchase Price in respect of Securities have been duly
authorized, and when issued and delivered pursuant to the terms of this
Indenture in payment of the Repurchase Event Repurchase Price in respect of
Securities, will be validly issued, fully paid and nonassessable and, to the
best of such counsel’s knowledge, free from preemptive rights; and (B) the
conditions in clauses (i) and (ii) above have been satisfied in all material
respects.

     If the foregoing conditions are not satisfied with respect to a Holder or
Holders prior to 5:00 p.m., New York City time, on the Business Day immediately
preceding the Repurchase Event Repurchase Date, and the Company has elected to
repurchase the Securities pursuant to this Section 3.9(b) through the issuance
of shares of Applicable Stock, the Company shall pay the entire Repurchase
Event Repurchase Price of the Securities of such Holder or Holders in Cash.
Upon determination of the actual number of shares of Applicable Stock to be
issued upon repurchase of Securities, the Company shall be required to
disseminate a press release through a public medium as is customary for such a
press release.

               (3) Covenants of the Company. All shares of Applicable Stock delivered
upon repurchase of the Securities shall be newly issued shares, shall be duly
authorized, validly issued, fully paid and nonassessable, and shall be free
from preemptive rights and free of any lien or adverse claim.

32

 

               (4) Taxes. If a Holder of a repurchased Security is paid in shares of
Applicable Stock, the Company shall pay any documentary, stamp or similar issue
or transfer tax due on such issue of Applicable Stock. However, the Holder
shall pay any such tax which is due because the Holder requests the Applicable
Stock to be issued in a name other than the Holder’s name. The Paying Agent
may refuse to deliver the certificates representing the shares of Applicable
Stock being issued in a name other than the Holder’s name until the Paying
Agent receives a sum sufficient to pay any tax which will be due because the
shares of Applicable Stock are to be issued in a name other than the Holder’s
name. Nothing contained herein shall preclude any income tax withholding
required by law or regulations.

     (c) Effect of Repurchase Event Repurchase Notice.

     Upon receipt by the Paying Agent of the Repurchase Event Repurchase Notice
specified in Section 3.9(a)(3), the Holder of the Security in respect of which
such Repurchase Event Repurchase Notice was given shall (unless such Repurchase
Event Repurchase Notice is withdrawn as specified in the following paragraph)
thereafter be entitled to receive solely the Repurchase Event Repurchase Price
with respect to such Security. Such Repurchase Event Repurchase Price shall
be paid to such Holder, subject to receipts of Cash and/or securities by the
Paying Agent, promptly following the later of (a) the Repurchase Event
Repurchase Date with respect to such Security (provided the conditions in
Section 3.9(a)(3) have been satisfied) and (b) the time of delivery of such
Security to the Paying Agent by the Holder thereof in the manner required by
Section 3.9(a)(3). Securities in respect of which a Repurchase Event
Repurchase Notice has been given by the Holder thereof may not be converted
pursuant to Article 4 on or after the date of the delivery of such Repurchase
Event Repurchase Notice unless such Repurchase Event Repurchase Notice has
first been validly withdrawn as specified in the following paragraph.

     A Repurchase Event Repurchase Notice may be withdrawn by means of a
written notice of withdrawal delivered to the office of the Paying Agent in
accordance with the Repurchase Event Repurchase Notice at any time prior to
5:00 p.m., New York City time, on the Business Day immediately preceding the
Repurchase Event Repurchase Date, specifying:

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

          (b) the certificate number, if any, or the appropriate Depository
procedures, if applicable, of the Security in respect of which such notice
of withdrawal is being submitted; and

          (c) the principal amount, if any, of such Security which remains
subject to the original Repurchase Event Repurchase Notice and which has
been or will be delivered for repurchase by the Company.

     (d) Deposit of Repurchase Event Repurchase Price.

     Prior to 10:00 a.m., New York City time, on the applicable Repurchase
Event Repurchase Date, the Company shall deposit with the Paying Agent (or if
the Company or a Subsidiary or an Affiliate of any of them is acting as the
Paying Agent, shall segregate and hold in trust as provided in Section 2.4) an
amount of Cash (in immediately available funds if deposited on such Business
Day) and/or Applicable Stock, if permitted hereunder, sufficient to pay the
aggregate Repurchase Event Repurchase Price of all the Securities or portions
thereof which are to be repurchased on such Repurchase Event Repurchase Date.

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     If the Paying Agent holds, in accordance with the terms hereof, at 10:00
a.m., New York City time, on the Business Day immediately following the
applicable Repurchase Event Repurchase Date, Cash and/or Applicable Stock, if
permitted hereunder, sufficient to pay the Repurchase Event Repurchase Price of
any Securities for which a Repurchase Event Repurchase Notice has been tendered
and not withdrawn pursuant to Section 3.9(c), then, immediately after such
Repurchase Event Repurchase Date, such Securities will cease to be outstanding
and interest and Special Interest, if any, on such Securities will cease to
accrue, whether or not such Securities are delivered to the Paying Agent, and
the rights of the Holders in respect thereof shall terminate (other than the
right to receive the Repurchase Event Repurchase Price upon delivery of such
Securities).

     As soon as practicable on and after the Repurchase Event Repurchase Date,
the Company shall deliver to each Holder entitled to receive shares of
Applicable Stock through the Paying Agent, a certificate (other than in the
case of Holders of Securities in book-entry form with the Depositary, which
shares shall be delivered in accordance with the Depositary customary
practices) for the number of full shares of Applicable Stock issuable in
payment of the Repurchase Event Repurchase Price and Cash in lieu of any
fractional interests. The person in whose name the certificate for the shares
of Applicable Stock is registered shall be treated as a holder of record of
Applicable Stock on the Repurchase Event Repurchase Date. No payment or
adjustment will be made for dividends on the shares of Applicable Stock the
record date for which occurred on or prior to the Repurchase Event Repurchase
Date.

     (e) Securities Repurchased in Part.

     Any Certificated Security which is to be repurchased 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 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 repurchased.

     (f) Covenant to Comply With Securities Laws Upon Repurchase of Securities.

     When complying with the provisions of Section 3.9(a) 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), and
subject to any exemptions available under applicable law, the Company shall:

          (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor
provision) under the Exchange Act, as applicable;

          (b) file the related Schedule TO (or any successor schedule, form or
report) under the Exchange Act, as applicable; and

          (c) otherwise comply with all federal and state securities laws so as
to permit the rights and obligations under this Section 3.9 to be
exercised in the time and in the manner specified therein.

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     To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section 3.9, the Company’s compliance with
such laws and regulations shall not in and of itself cause a breach of its
obligations under this Section 3.9.

     (g) Repayment to the Company.

     The Paying Agent shall return to the Company any cash or shares of
Applicable Stock that remain unclaimed for two years, together with interest or
dividends, if any, thereon, held by it for the payment of the Repurchase Event
Repurchase Price; provided, however, to the extent that the aggregate amount of
Cash or shares of Applicable Stock deposited by the Company pursuant to Section
3.9(d) exceeds the aggregate Repurchase Event Repurchase Price of the
Securities or portions thereof which the Company is obligated to repurchase as
of the Repurchase Event Repurchase Date then, promptly after the Repurchase
Event Repurchase Date, the Paying Agent shall return any such excess to the
Company.

     SECTION 3.10. COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES.

     In connection with any offer to purchase or purchase of Securities under
Section 3.9, the Company shall (a) comply with Rule 13e-4 and Rule 14e-1 (or
any successor to either such Rule), if applicable, under the Exchange Act, (b)
file the related Schedule TO (or any successor or similar schedule, form or
report) if required under the Exchange Act, and (c) otherwise comply with all
federal and state securities laws in connection with such offer to purchase or
purchase of Securities, all so as to permit the rights of the Holders and
obligations of the Company under Sections 3.9 to be exercised in the time and
in the manner specified therein.

     SECTION 3.11. REPAYMENT TO THE COMPANY.

     To the extent that the aggregate amount of cash deposited by the Company
pursuant to Section 3.9(g) exceeds the aggregate Change in Control Purchase
Price, thereon of the Securities or portions thereof that the Company is
obligated to purchase, then promptly after the Change in Control Purchase Date
the Trustee or a Paying Agent, as the case may be, shall return any such excess
cash to the Company.

ARTICLE 4

CONVERSION

     SECTION 4.1. CONVERSION PRIVILEGE.

     (a) Subject to and upon compliance with the provisions of this Article 4,
a Holder of a Security shall have the right, at such Holder’s option, to
convert all or any portion (if the portion to be converted is $1,000 or an
integral multiple of $1,000) of such Security into shares of Common Stock at
the Conversion Price in effect on the date of conversion only as follows:

                                        (i) during any fiscal quarter (beginning with the quarter ending December
31, 2003) if the Sale Price of the Common Stock for at least 20 consecutive
Trading Days in the Measurement Period of the immediately preceding fiscal
quarter exceeds 120% of the Conversion Price in effect on the last Trading Day
of such Measurement Period (in the event that the Conversion Price on such last
Trading Day of such Measurement Period is not the same as the Conversion Price
in effect for each of the Trading Days in

35

 

such Measurement Period, the Conversion Agent shall make such adjustments
as it, in its discretion, deems appropriate in determining whether the
foregoing condition has been met);

                                        (ii) during any five consecutive Trading Day period immediately following
any five consecutive Trading Day period (the “Note Measurement Period”) in
which the average Market Price per $1,000 principal amount of Securities during
such Note Measurement Period was less than 97% of the average Conversion Value
during such Note Measurement Period; or

                                        (iii) at any time prior to 5:00 p.m., New York City time, on the Business
Day immediately preceding the Redemption Date, if such Security has been called
for redemption pursuant to Article 3 hereof.

     The Conversion Agent shall, on behalf of the Company, determine at the end
of each applicable period whether the Securities shall be convertible as a
result of the occurrence of an event specified in clause (i) or (ii) above and,
if the Securities shall be so convertible, the Conversion Agent shall promptly
deliver to the Company and the Trustee written notice thereof. Whenever the
Securities shall become convertible pursuant to Section 4.1, the Company or, at
the Company’s request, the Trustee in the name and at the expense of the
Company, shall notify the Holders in writing of the event triggering such
convertibility in the manner provided in Section 4.2, and the Company shall
also publicly announce such information and publish it on the Company’s
website. Any notice so given shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice.

     (b) In addition, in the event that:

                                        (i)

                                      (A) the Company distributes to all holders of Common Stock
rights or warrants entitling them to purchase Common Stock at less
than the Sale Price of the Common Stock on the Business Day of such
distribution, other than pursuant to any Company shareholder’s
rights plan; or

                                      (B) the Company distributes to all holders of Common Stock cash
or other assets, debt securities or certain rights to purchase the
Company’s securities, which distribution has a per share value as
determined by the Board of Directors of the Company exceeding 15% of
the Sale Price of the Common Stock on the Business Day immediately
preceding the declaration for such distribution;

then, in each case, the Company must notify, in writing, Holders of
Securities of the occurrence of such an event at least 20 days prior
to the ex-Dividend Date for any such distribution. Once the Company
has given such notice, Holders may surrender their Securities for
conversion at any time until the earlier of the close of business on
the Business Day immediately preceding the ex-Dividend Date or the
date of announcement by the Company that the distribution will not
take place. No adjustment shall be made to the ability of a Holder
of Securities to convert if such Holder may participate in the
distribution without conversion.

                                        (ii) the Company becomes party to a consolidation, merger or binding share
exchange pursuant to which the Common Stock of the Company would be converted
into cash, securities or

36

 

other property, a Holder may surrender the Securities for conversion at
any time from and after the date which is 15 days prior to the anticipated
effective date of the transaction until 15 days after the actual date of the
transaction. If the Company becomes party to a consolidation, merger or
binding share exchange pursuant to which the Common Stock of the Company would
be converted into cash, securities or other property, then at the effective
time of the transaction, the right to convert the Securities into Common Stock
shall be changed into a right to convert such Securities into the kind and
amount of cash, securities or other property which the Holder would have
received if the Holder had converted such Securities immediately prior to the
transaction. If the transaction occurs prior to August 1, 2010 and also
constitutes a Repurchase Event, the Holder shall have the rights set forth in
Section 3.9 above.

     SECTION 4.2. CONVERSION PROCEDURE; CONVERSION RATE; FRACTIONAL SHARES.

     (a) Subject to Section 4.2(e), each Security shall be convertible at the
office of the Conversion Agent into fully paid and nonassessable shares
(calculated to the nearest 1/100th of a share) of Common Stock. Subject to
Section 4.2(e), the Security will be converted into shares of Common Stock at
the Conversion Rate therefor.

     No payment or adjustment shall be made in respect of dividends on the
Common Stock or accrued interest or accrued and unpaid Contingent Interest, if
any, on a converted Security, except as described in Section 4.9 hereof.

     The Company shall not issue any fraction of a share of Common Stock in
connection with any conversion of Securities, but instead shall, subject to
Section 4.3(g) hereof, make a Cash payment (calculated to the nearest cent)
equal to such fraction multiplied by the Sale Price of the Common Stock on the
last Trading Day prior to the date of conversion.

     Notwithstanding the foregoing, a Security in respect of which a Holder has
delivered a Repurchase Notice or Repurchase Event Purchase Notice exercising
such Holder’s option to require the Company to repurchase such Security may be
converted only if such notice of exercise is withdrawn in accordance with
Sections 3.8(c) or 3.9(c) hereof, as the case may be, prior to the close of
business on the Business Day immediately preceding the applicable Repurchase
Date or Repurchase Event Repurchase Date, as the case may be.

     (b) Before any Holder of a Security shall be entitled to convert the same
into Common Stock or be entitled to the payment of any consideration upon a
Principal Value Conversion as described in Section 4.2(e), such Holder shall,
in the case of Securities issued in global form, comply with the procedures of
the Depositary in effect at that time, and in the case of Certificated
Securities, surrender such Securities, duly endorsed to the Company or in
blank, at the office of the Conversion Agent, and shall give written notice to
the Company at said office or place in the form of the Conversion Notice
attached to the Security (the “Conversion Notice”) that such Holder elects to
convert the same and shall state in writing therein the principal amount of
Security to be converted and the name or names (with addresses) in which such
Holder wishes the certificate or certificates for Common Stock to be issued.

     Before any such conversion, a Holder also shall pay all funds required, if
any, relating to interest on the Securities, as provided in Section 4.9, and
all taxes or duties, if any, as provided in Section 4.8.

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     If more than one Security shall be surrendered for conversion at one time
by the same Holder, the number of full shares of Common Stock which shall be
deliverable upon conversion shall be computed on the basis of the aggregate
principal amount of the Security (or specified portions thereof to the extent
permitted thereby) so surrendered. Subject to the next succeeding sentence,
the Company will, as soon as practicable thereafter, issue and deliver at said
office or place to such Holder of a Security, or to such Holder’s nominee or
nominees, certificates (other than in the case of Holders of Securities in
book-entry form with the Depositary, which shares shall be delivered in
accordance with the Depositary customary practices) for the number of full
shares of Common Stock to which such Holder shall be entitled as aforesaid,
together with Cash in lieu of any fraction of a share to which such Holder
would otherwise be entitled. The Company shall not be required to deliver
certificates for shares of Common Stock while the stock transfer books for such
stock or the security register are duly closed for any purpose, but
certificates for shares of Common Stock shall be issued and delivered as soon
as practicable after the opening of such books or security register; provided,
that in the case of issuances of Common Stock described in Section 4.2(e), such
issuances shall be made in accordance with the provisions of such section.

     If shares of Common Stock to be issued upon conversion of a Restricted
Security are to be issued in the name of a Person other than the Holder of such
Restricted Security, such Holder must deliver to the Conversion Agent a
certification in substantially the form set forth in a Transfer Certificate
dated the date of surrender of such Restricted Security and signed by such
Holder, as to compliance with the restrictions on transfer applicable to such
Restricted Security. The Company shall not be required to issue Common Stock
upon conversion of any such Restricted Security to a Person other than the
Holder if such Restricted Security is not so accompanied by a properly
completed certification, and the Registrar shall not be required to register
Common Stock upon conversion of any such Restricted Security in the name of a
Person other than the Holder if such Restricted Security is not so accompanied
by a properly completed certification.

     (c) A Security shall be deemed to have been converted as of the close of
business on the date of the surrender of such Security for conversion as
provided above, and the person or persons entitled to receive the Common Stock
issuable upon such conversion shall be treated for all purposes as the record
Holder or Holders of such Common Stock as of the close of business on such
date. Upon conversion, all obligations under the Securities so converted will
be deemed satisfied, including with respect to any accrued and unpaid interest
(including Contingent Interest, if any) and Special Interest, if any.

     (d) In case any Certificated Security shall be surrendered for partial
conversion, the Company shall execute and the Trustee shall, upon the written
order of the Company, authenticate and deliver to the Holder of the Security so
surrendered, without charge to such Holder (subject to the provisions of
Section 4.8 hereof), a new Security or Securities in authorized denominations
in an aggregate principal amount equal to the unconverted portion of the
surrendered Certificated Securities.

     (e) Notwithstanding the foregoing, if on the conversion date of the
Holder’s conversion of a Security pursuant to Section 4.1(a)(ii) (such date,
the “97% Conversion Date”) the Sale Price of the Common Stock is greater than
the Conversion Price but no more than 120% of the Conversion Price, the Holder
converting a Security pursuant to Section 4.1(a)(ii) shall receive, in lieu of
a number of shares of Common Stock based on the Conversion Price, Cash or
Common Stock or a combination of Cash and Common Stock, at the Company’s sole
option, with a value equal to the principal amount of the Security so
surrendered for conversion (such conversion, a “Principal Value Conversion”).
Any Common Stock to be delivered to the Holder by the Company upon a Principal
Value Conversion shall be valued at the Sale Price of the Common Stock on the
97% Conversion Date. The Company shall notify the Trustee and any surrendering
Holder of Securities whose conversion is a Principal Value Conversion of such
Principal Value Conversion by the

38

 

second Trading Day following the 97% Conversion Date and in such notice,
state whether the Company shall pay to such Holder all or a portion of the
principal amount of such Securities in Cash, Common Stock or a combination of
Cash and Common Stock and, if a combination, the percentages of the principal
amount in respect of which it will pay in Cash or Common Stock. Subject to the
satisfaction of all requirements for conversion under Section 4.2, the Company
shall use reasonable efforts to (A) pay any portion of the principal amount of
Securities elected to be paid in Cash by the Company in a Principal Value
Conversion of the third Trading Day following the 97% Conversion Date and (B)
deliver any portion of the principal amount of Securities elected to be paid by
the Company in Common Stock in a Principal Value Conversion on the fourth
Trading Day following the 97% Conversion Date.

     SECTION 4.3. ADJUSTMENT OF CONVERSION RATE FOR COMMON STOCK.

     The Conversion Rate shall be adjusted from time to time as follows:

     (a) In case the Company shall, at any time or from time to time while any
of the Securities are outstanding, pay a dividend or make a distribution in
shares of Common Stock to all holders of its outstanding shares of Common
Stock, then the Conversion Rate in effect at the opening of business on the
date next following the Record Date fixed for the determination of stockholders
entitled to receive such dividend or other distribution shall be increased by
multiplying such Conversion Rate by a fraction:

               (1) the numerator of which shall be the sum of the number of shares of
Common Stock outstanding at the close of business on such Record Date fixed for
such determination and the total number of shares constituting such dividend or
other distribution; and

               (2) the denominator of which shall be the number of shares of Common Stock
outstanding at the close of business on such Record Date fixed for such
determination.

     Such increase shall become effective immediately after the opening of
business on the day following the Record Date fixed for such determination.

     If any dividend or distribution of the type described in this Section
4.3(a) is declared but not so paid or made, the Conversion Rate shall again be
adjusted to the Conversion Rate which would then be in effect if such dividend
or distribution had not been declared.

     (b) In case the Company shall, at any time or from time to time while any
of the Securities are outstanding, subdivide its outstanding shares of Common
Stock into a greater number of shares of Common Stock, then 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 the Company shall, at any time or from time to time while
any of the Securities are outstanding, combine its outstanding shares of Common
Stock into a smaller number of shares of Common Stock, then 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 decreased. In each
such case, the Conversion Rate shall be adjusted by multiplying such Conversion
Rate by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding immediately after giving effect to such subdivision or
combination and the denominator of which shall be the number of shares of
Common Stock outstanding immediately prior to such subdivision or combination.
Such increase or reduction, as the case may be, shall become effective
immediately after the opening of business on the day following the day upon
which such subdivision or combination becomes effective.

39

 

     (c) In case the Company shall, at any time or from time to time while any
of the Securities are outstanding, issue rights or warrants for a period
expiring within 60 days after the date of announcement of such issuance (other
than any rights or warrants referred to in Section 4.3(d)), to all holders of
its shares of Common Stock entitling them to subscribe for or purchase shares
of Common Stock (or securities convertible into or exchangeable or exercisable
for shares of Common Stock), at a price per share (or having a conversion,
exchange or exercise price per share) less than the Sale Price of the Common
Stock on the Trading Day immediately preceding the date of the announcement of
such issuance (treating the conversion, exchange or exercise price per share of
the securities convertible into or exchangeable or exercisable for Common Stock
as equal to the quotient of (x) the sum of (i) the price for a unit of the
security convertible into or exchangeable or exercisable for Common Stock and
(ii) any additional consideration initially payable upon the conversion,
exchange or exercise of such security into Common Stock divided by (y) the
number of shares of Common Stock initially underlying such convertible,
exchangeable or exercisable security), then the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect at the opening of business on the date after such
date of announcement by a fraction:

               (1) the numerator of which shall be the number of shares of Common Stock
outstanding at the close of business on the date of announcement, plus the
total number of additional shares of Common Stock so offered for subscription
or purchase (or into which the convertible, exchangeable or exercisable
securities so offered are convertible, exchangeable or exercisable); and

               (2) the denominator of which shall be the number of shares of Common Stock
outstanding on the close of business on the date of announcement, plus the
number of shares (or convertible, exchangeable or exercisable securities) which
the aggregate offering price of the total number of shares (or convertible,
exchangeable or exercisable securities) so offered for subscription or purchase
(or the aggregate conversion, exchange or exercise price of the convertible
securities so offered) would purchase at the Sale Price of the Common Stock on
the Business Day immediately preceding the date of the announcement of such
issuance (determined by multiplying such total number of shares so offered by
the exercise price of such rights or warrants and dividing the product so
obtained by such Sale Price).

     Such adjustment shall become effective immediately after the opening of
business on the day following the date of announcement of such issuance.

     To the extent that shares of Common Stock (or securities convertible into
or exchangeable or exercisable for shares of Common Stock) are not delivered
pursuant to such rights or warrants, upon the expiration or termination of such
rights or warrants, the Conversion Rate shall be readjusted to the Conversion
Rate which would then be in effect had the adjustments made upon the issuance
of such rights or warrants been made on the basis of the delivery of only the
number of shares of Common Stock (or securities convertible into or
exchangeable or exercisable for shares of Common Stock) actually delivered. In
the event that such rights or warrants are not so issued, the Conversion Rate
shall again be adjusted to be the Conversion Rate which would then be in effect
if the 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
Stock at less than such Sale Price, and in determining the aggregate offering
price of such shares of Common Stock, there shall be taken into account any
consideration received for such rights or warrants and the value of such
consideration if other than Cash, to be determined in good faith by the Board
of Directors of the Company.

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     (d) (1) In case the Company shall, at any time or from time to time while
any of the Securities are outstanding, by dividend or otherwise, distribute to
all holders of its shares of Common Stock (including any such distribution made
in connection with a consolidation or merger in which the Company is the
continuing corporation and the Common Stock is not changed or exchanged),
shares of its Capital Stock (other than any dividends or distributions to which
Section 4.3(a) applies), evidences of its Indebtedness or other non-Cash
assets, including securities, but excluding (x) any rights or warrants referred
to in Section 4.3(c), (y) dividends or distributions of stock referred to in
Section 4.3(a), and (z) dividends and distributions paid exclusively in Cash
(such capital stock, evidence of its indebtedness, other non-Cash assets or
securities being distributed hereinafter in this Section 4.3(d) called the
“distributed assets”), then, in each such case, subject to the other provisions
of this Section 4.3(d), the Conversion Rate shall be increased so that the same
shall be equal to the rate determined by multiplying the Conversion Rate in
effect immediately prior to the close of business on the Record Date with
respect to such distribution by a fraction:

                                        (i) the numerator of which shall be the Current Market Price of the Common
Stock; and

                                        (ii) the denominator of which shall be such Current Market Price of the
Common Stock, less the Fair Market Value on such date of the portion of the
distributed assets so distributed applicable to one share of Common Stock
(determined on the basis of the number of shares of Common Stock outstanding on
the Record Date) (determined as provided in Section 4.3(f)).

     Such increase shall become effective immediately prior to the opening of
business on the day following the Record Date for such distribution. In the
event that such dividend or distribution is not so paid or made, the Conversion
Rate shall again be adjusted to be the Conversion Rate which would then be in
effect if such dividend or distribution had not been declared.

               (2) If the Board of Directors determines the Fair Market Value of any
distribution for purposes of this Section 4.3(d) by reference to the actual or
when issued trading market for any distributed assets comprising all or part of
such distribution, it must in doing so consider the prices in such market over
the same period (the “Reference Period”) used in computing the Current Market
Price pursuant to Section 4.3(f) to the extent possible, unless the Board of
Directors determines in good faith that determining the Fair Market Value
during the Reference Period would not be in the best interest of the Holders.

               (3) In the event any such distribution consists of shares of capital stock
of, or similar equity interests in, one or more of the Company’s Subsidiaries
(a “Spin-Off”), the Fair Market Value of the securities to be distributed shall
equal the average of the closing sale prices of such securities on the
principal securities market on which such securities are traded for the five
consecutive Trading Days commencing on and including the sixth Trading Day of
those securities after the effectiveness of the Spin-Off, and the Current
Market Price shall be measured for the same period. In the event, however,
that an underwritten initial public offering of the securities in the Spin-Off
occurs simultaneously with the Spin-Off, Fair Market Value of the securities
distributed in the Spin-Off shall mean the initial public offering price of
such securities, and the Current Market Price shall mean the Sales Price for
the Common Stock on the same Trading Day.

               (4) Rights or warrants distributed by the Company to all holders of its
shares of Common Stock entitling them 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”), (x) are deemed to be transferred with such shares of Common
Stock, (y) are not exercisable and (z) are also issued in respect of future
issuances of shares of Common Stock shall be deemed

41

 

not to have been distributed for purposes of this Section 4.3(d) (and no
adjustment to the Conversion Rate under this Section 4.3(d) will be required)
until the occurrence of the earliest Trigger Event. If such right or warrant
is subject to subsequent events, upon the occurrence of which such right or
warrant shall become exercisable to purchase different distributed assets,
evidences of indebtedness or other assets, or entitle the holder to purchase a
different number or amount of the foregoing or to purchase any of the foregoing
at a different purchase price, then the occurrence of each such event shall be
deemed to be the date of issuance and record date with respect to a new right
or warrant (and a termination or expiration of the existing right or warrant
without exercise by the holder thereof). Pursuant to rights issued under any
Company shareholder rights plan, if holders of the Securities exercising the
right of conversion after the date the rights separate from the underlying
Common Stock are not entitled to receive the rights that would otherwise be
attributable to the shares of Common Stock received upon conversion, the
Conversion Rate will be adjusted as though the rights were being distributed to
holders of Common Stock on the date of such separation. If such an adjustment
is made and the rights are later redeemed, invalidated or terminated, then a
corresponding reversing adjustment will be made to the Conversion Rate on an
equitable basis.

     In addition, in the event of any distribution (or deemed distribution) of
rights or warrants, or any Trigger Event or other event (of the type described
in the preceding sentence) with respect thereto, that resulted in an adjustment
to the Conversion Rate under this Section 4.3(d):

                                        (i) in the case of any such rights or warrants which 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 of shares of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to
all holders of shares of Common Stock as of the date of such redemption or
repurchase; and

                                        (ii) in the case of such rights or warrants which shall have expired or
been terminated without exercise, the Conversion Rate shall be readjusted as if
such rights and warrants had never been issued.

               (5) For purposes of this Section 4.3(d) and Sections 4.3(a), 4.3(b) and
4.3(c), any dividend or distribution to which this Section 4.3(d) is applicable
that also includes (x) shares of Common Stock, (y) a subdivision or combination
of shares of Common Stock to which Section 4.3(b) applies or (z) rights or
warrants to subscribe for or purchase shares of Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock to which
Section 4.3(c) applies (or any combination thereof), shall be deemed instead to
be:

                                        (i) a dividend or distribution of the evidences of indebtedness, assets,
shares of capital stock, rights or warrants, other than such shares of Common
Stock, such subdivision or combination or such rights or warrants or securities
convertible into or exercisable or exchangeable for Common Stock to which
Sections 4.3(a), 4.3(b) and 4.3(c) apply, respectively (and any Conversion Rate
increase required by this Section 4.3(d) with respect to such dividend or
distribution shall then be made), immediately followed by

                                        (ii) a dividend or distribution of such shares of Common Stock, such
subdivision or combination or such rights or warrants or securities convertible
into or exercisable or exchangeable for Common Stock (and any further
Conversion Rate increase required by Sections 4.3(a), 4.3(b) and 4.3(c) with
respect to such dividend or distribution shall then be made), except:

42

 

                                                       1) the Record Date of such dividend or distribution shall be substituted
as (x) “the date fixed for the determination of stockholders entitled to
receive such dividend or other distribution,” “Record Date fixed for such
determinations” and “Record Date” within the meaning of Section 4.3(a), (y)
“the day upon which such subdivision becomes effective” and “the day upon which
such combination becomes effective” within the meaning of Section 4.3(b), and
(z) as “the date fixed for the determination of stockholders entitled to
receive such rights or warrants,” “the Record Date fixed for the determination
of the stockholders entitled to receive such rights or warrants” and such
“Record Date” within the meaning of Section 4.3(c); and

                                                       2) 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 4.3(a) and any reduction or
increase in the number of shares of Common Stock resulting from such
subdivision or combination shall be disregarded in connection with such
dividend or distribution.

     (e) In case the Company shall, at any time or from time to time while any
of the Securities are outstanding, by dividend or otherwise, distribute to all
or substantially all holders of its shares of Common Stock, Cash (excluding any
Cash that is distributed upon a reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance to
which Section 4.4 applies, Cash distributed as part of a distribution referred
to in Section 4.3(d), or any Cash that is distributed pursuant to a tender
offer , to which Section 4.3(f) applies), then, and in each case, immediately
after the close of business on such date, 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 close of business of such
Record Date for the determination of holders of Common Stock entitled to such
distribution by a fraction:

                                        (i) the numerator of which shall be equal to the Current Market Price per
share of Common Stock (as determined pursuant to Section 4.3(h) on the Record
Date; and

                                        (ii) the denominator of which shall be equal to (a) the Current Market
Price per share of Common Stock on such date, less (b) an amount equal to the
lesser of (i) the amount of the distribution per share of Common Stock and (ii)
the Current Market Price per share of Common Stock; provided,
however that if
such denominator shall be zero, the Conversion Rate shall be instead adjusted
so that the Conversion Price is equal to one cent ($0.01).

Notwithstanding the foregoing, if the Conversion Rate as adjusted pursuant to
this Section 4.3(e) would cause the Conversion Price to be less than one cent
($0.01), then the Conversion Price shall be one cent ($0.01).

     (f) In case the Company or any of its subsidiaries shall, at any time or
from time to time, while any of the Securities are outstanding, distribute Cash
or other consideration in respect of a tender offer or exchange offer made by
the Company or any subsidiary for all or any portion of the Common Stock
(excluding any Cash that is distributed upon a reclassification, change,
merger, consolidation, statutory share exchange, combination, sale or
conveyance to which Section 4.4 applies or as part of a distribution referred
to in Sections 4.3(d) or 4.3(e)), where the sum of the aggregate amount of such
Cash distributed and the aggregate fair market value (as determined in good
faith by the Board of Directors, whose determination shall be conclusive and
set forth in a Board Resolution), as of the Expiration Date (as defined below),
of such other consideration distributed (such sum, the “Aggregate Amount”)
expressed as an amount per share of Common Stock validly tendered or exchanged,
and not withdrawn, pursuant to such tender offer or exchange offer as of the
Expiration Time (as defined below) (such tendered or exchanged shares of Common
Stock, the

43

 

“Purchased Shares”) exceeds the Sale Price of the Common Stock on the
trading day next succeeding the last date (such last date, the “Expiration
Date”) on which tenders or exchanges could have been made pursuant to such
tender offer or exchange offer (as the same may be amended through the
Expiration Date), then, and in each case, immediately after the close of
business on such date, 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 close of business of such Expiration Date by a
fraction:

               (1) the numerator of which is equal to the sum of (I) the Aggregate Amount
and (II) the product of (a) the Sale Price of Common Stock on the Expiration
Date and (b) an amount equal to (i) the number of shares of Common Stock
outstanding as of last time (the “Expiration Time”) at which tenders or
exchanges could have been made pursuant to such tender offer or exchange offer
less (ii) the Purchased Shares; and

               (2) the denominator of which shall be equal to the product of (I) the
number of shares of Common Stock outstanding as of the Expiration Time
(including all Purchased Shares) and (II) the Sale Price of Common Stock on the
Expiration Date.

An adjustment, if any, to the Conversion Rate pursuant to this Section 4.3(f)
shall become effective immediately prior to the opening of business on the
Business Day following the Expiration Date. In the event that the Company or a
subsidiary is obligated to purchase shares of Common Stock pursuant to any such
tender offer or exchange offer, but the Company or such subsidiary is
permanently prevented by applicable law from effecting any such purchases, or
all such purchases are rescinded, then the Conversion Rate shall again be
adjusted to be the Conversion Rate which would then be in effect if such tender
offer or exchange offer had not been made. If the application of this Section
4.3(f) to any tender offer or exchange offer would result in a decrease in the
Conversion Rate, no adjustment shall be made for such tender offer or exchange
offer under this Section 4.3(f).

     (g) In case any Person other than the Company or any of its subsidiaries
(the “Offeror”) shall, at any time or from time to time, while any of the
Securities are outstanding, distribute Cash or other consideration in respect
of a tender offer or exchange offer made by the Company or any subsidiary for
all or any portion of the Common Stock, and where:

(i) as of the closing date of such offer, the Board of
Directors is not recommending rejection of such offer;

(ii) according to the terms of such offer, following the
completion of such offer the Offeror would hold at least 10%
of the Common Stock outstanding as of the Expiration Date; and

(iii) the sum of the aggregate amount of such Cash distributed
and the aggregate fair market value (as determined in good
faith by the Board of Directors, whose determination shall be
conclusive and set forth in a Board Resolution), as of the
Expiration Date (as defined below), of such other
consideration distributed (such sum, the “Aggregate Amount”)
expressed as an amount per share of Common Stock validly
tendered or exchanged, and not withdrawn, pursuant to such
tender offer or exchange offer as of the Expiration Time (as
defined below) (such tendered or exchanged shares of Common
Stock, the “Purchased Shares”) exceeds the Sale Price of the
Common Stock on the trading day next succeeding the last date
(such last date,

44

 

the “Expiration Date”) on which tenders or exchanges could
have been made pursuant to such tender offer or exchange offer
(as the same may be amended through the Expiration Date),

then, and in each case, immediately after the close of business on such date,
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 close of business of such Expiration Date by a fraction:

               (1) the numerator of which is equal to the sum of (I) the Aggregate Amount
and (II) the product of (a) the Sale Price of Common Stock on the Expiration
Date and (b) an amount equal to (i) the number of shares of Common Stock
outstanding as of last time (the “Expiration Time”) at which tenders or
exchanges could have been made pursuant to such tender offer or exchange offer
less (ii) the Purchased Shares; and

               (2) the denominator of which shall be equal to the product of (I) the
number of shares of Common Stock outstanding as of the Expiration Time
(including all Purchased Shares) and (II) the Sale Price of Common Stock on the
Expiration Date.

An adjustment, if any, to the Conversion Rate pursuant to this Section 4.3(g)
shall become effective immediately prior to the opening of business on the
Business Day following the Expiration Date. In the event that the Offeror is
obligated to purchase shares of Common Stock pursuant to any such tender offer
or exchange offer, but such Offeror is permanently prevented by applicable law
from effecting any such purchases, or all such purchases are rescinded, then
the Conversion Rate shall again be adjusted to be the Conversion Rate which
would then be in effect if such tender offer or exchange offer had not been
made. If the application of this Section 4.3(g) to any tender offer or
exchange offer would result in a decrease in the Conversion Rate, no adjustment
shall be made for such tender offer or exchange offer under this Section
4.3(g).

     (h) For purposes of this Article 4, the following terms shall have the
meanings indicated:

     “Current Market Price” on any date means the average of the daily Sale
Prices per share of Common Stock for the ten consecutive Trading Days
immediately prior to such date; provided, however,
that if the “ex” date (as
hereinafter defined) for any event (other than the issuance or distribution
requiring such computation) that requires an adjustment to the Conversion Rate
pursuant to Section 4.3(a), (b), (c), (d), (e), (f) or (g) occurs during such
ten consecutive Trading Days, “Current Market Price” shall be calculated for
such period in a manner determined in good faith by the Board of Directors to
reflect the impact of such event on the Closing Price of the Common Stock
during such period.

     For purposes of this paragraph, the term “ex” date, when used:

               (i) with respect to any issuance or distribution, means the first
date on which the shares of Common Stock trade regular way on the relevant
exchange or in the relevant market from which the Sale Price was obtained
without the right to receive such issuance or distribution;

               (ii) with respect to any subdivision or combination of shares of
Common Stock, means the first date on which the shares of Common Stock
trade regular way on such exchange or in such market after the time at
which such subdivision or combination becomes effective; and

45

 

               (iii) with respect to any tender or exchange offer, means the first
date on which the shares of Common Stock trade regular way on such
exchange or in such market after the expiration of such offer.

Notwithstanding the foregoing, whenever successive adjustments to the
Conversion Rate are called for pursuant to this Section 4.3, such adjustments
shall be made to the Current Market Price as may be necessary or appropriate to
effectuate the intent of this Section 4.3 and to avoid unjust or inequitable
results as determined in good faith by the Board of Directors.

     “Fair Market Value” shall mean the amount which a willing buyer would pay
a willing seller in an arm’s length transaction (as determined in good faith by
the Board of Directors, whose good faith determination shall be conclusive).

     “Record Date” shall mean, with respect to any dividend, distribution or
other transaction or event in which the holders of shares of Common Stock have
the right to receive any Cash, securities or other property or in which the
shares of 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).

     (i) The Company shall be entitled at its election to make such additional
increases in the Conversion Rate, in addition to those required by Sections
4.3(a), (b), (c), (d), (e), (f) and (g), as shall be necessary in order that
any dividend or distribution of Common Stock, any subdivision, reclassification
or combination of shares of Common Stock or any issuance of rights or warrants
referred to above shall not be taxable to the holders of Common Stock for
United States federal income tax purposes.

     (j) To the extent permitted by applicable law, the Company may, from time
to time, increase the Conversion Rate by any amount for any period of time, if
such period is at least 20 days, the Board of Directors determines that the
increase in the Conversion Rate is in the best interest of the Company, and the
increase is irrevocable during the period. Whenever the Conversion Rate is
increased pursuant to the preceding sentence, the Company shall mail to the
Trustee and each Holder at the address of such Holder as it appears in the
register of the Securities maintained by the Registrar, at least 15 days prior
to the date the increased Conversion Rate takes effect, a notice of the
increase stating the increased Conversion Rate and the period during which it
will be in effect.

     (k) In any case in which this Section 4.3 shall require that any
adjustment be made effective as of or retroactively immediately following a
Record Date, the Company may elect to defer (but only for five Trading Days
following the filing of the statement referred to in Section 4.5) issuing to
the Holder of any Securities converted after such Record Date the shares of
Common Stock issuable upon such conversion over and above the shares of Common
Stock issuable upon such conversion on the basis of the Conversion Rate prior
to adjustment; provided, however, that the Company shall deliver to such Holder
a due bill or other appropriate instrument evidencing such Holder’s right to
receive such additional shares upon the occurrence of the event requiring such
adjustment.

     (l) All calculations under this Section 4.3 shall be made to the nearest
cent or one-hundredth of a share, with one-half cent and 0.005 of a share,
respectively, being rounded upward. Notwithstanding any other provision of
this Section 4.3, the Company shall not be required to make any adjustment of
the Conversion Rate unless such adjustment would require an increase or
decrease of at least 1% of such rate.

46

 

Any lesser adjustment shall be carried forward and shall be made at the
time of and together with the next subsequent adjustment which, together with
any adjustment or adjustments so carried forward, shall amount to an increase
or decrease of at least 1% in such rate. Any adjustments under this Section
4.3 shall be made successively whenever an event requiring such an adjustment
occurs.

     (m) In the event that at any time, as a result of an adjustment made
pursuant to this Section 4.3, the Holder of any Securities thereafter
surrendered for conversion shall become entitled to receive any shares of stock
of the Company other than shares of Common Stock into which the Securities
originally were convertible, the Conversion Rate of such other shares so
receivable upon conversion of any such Security shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions with respect to Common Stock contained in subparagraphs (a)
through (j) of this Section 4.3, and the provision of Sections 4.1, 4.2 and 4.4
through 4.9 with respect to the Common Stock shall apply on like or similar
terms to any such other shares and the good faith determination of the Board of
Directors as to any such adjustment shall be conclusive.

     (n) No adjustment shall be made pursuant to this Section 4.3 if the
Holders of the Securities may participate in the transaction that would
otherwise give rise to an adjustment pursuant to this Section 4.3.

     SECTION 4.4. CONSOLIDATION OR MERGER OF THE COMPANY.

     If any of the following events occurs, namely:

     (a) any reclassification or change of the outstanding Common Stock into
another class of Capital 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);

     (b) any merger, consolidation, statutory share exchange or combination of
the Company with another corporation as a result of which all of the holders of
Common Stock shall be entitled to receive stock, securities or other property
or assets (including Cash or any combination thereof) with respect to or in
exchange for all of their Common Stock; or

     (c) any sale or conveyance of the properties and assets of the Company as,
or substantially as, an entirety to any other person as a result of which all
of the holders of Common Stock shall be entitled to receive stock, securities
or other property or assets (including Cash or any combination thereof) with
respect to or in exchange for all of their Common Stock;

the Company or the successor or purchasing person, as the case may be, shall
execute with the Trustee a supplemental indenture (which shall comply with the
Trust Indenture Act as in force at the date of execution of such supplemental
indenture, if such supplemental indenture is then required to so comply)
providing that the Holder’s right to convert a Security into Common Stock shall
be changed to a right to convert a Security into the kind and amount of shares
of stock and other securities or property or assets (including Cash) which such
Holder would have been entitled to receive upon such reclassification, change,
merger, consolidation, statutory share exchange, combination, sale or
conveyance had such Securities been converted into Common Stock immediately
prior to such reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance assuming such holder of Common Stock
did not exercise its rights of election, if any, as to the kind or amount of
securities, Cash or other property receivable upon such merger, consolidation,
statutory share exchange, sale or conveyance (provided, that if the kind or
amount of securities, Cash or other property receivable upon such merger,
consolidation, statutory share exchange, sale or

47

 

conveyance is not the same for each share of Common Stock in respect of which
such rights of election shall not have been exercised (“Non-Electing Share”),
then for the purposes of this Section 4.4, the kind and amount of securities,
Cash or other property receivable upon such merger, consolidation, statutory
share exchange, sale or conveyance for each Non-Electing Share shall be deemed
to be the kind and amount so receivable per share by a plurality of the
Non-Electing Shares). Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 4. If, in the case of any such
reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance, the stock or other securities and assets
receivable thereupon by a holder of Common Stock includes shares of stock or
other securities and assets of a corporation other than the successor or
purchasing corporation, as the case may be, in such reclassification, change,
merger, consolidation, statutory share exchange, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such
other corporation and shall contain such additional provisions to protect the
interests of the Holders of the Securities as the Board of Directors shall
reasonably consider necessary by reason of the foregoing.

     The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each Holder, at the address of such Holder as it
appears on the register of the Securities maintained by the Registrar, within
20 days after execution thereof. Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture.

     The above provisions of this Section 4.4 shall similarly apply to
successive reclassifications, changes, mergers, consolidations, statutory share
exchanges, combinations, sales and conveyances.

     If this Section 4.4 applies to any event or occurrence, Section 4.3 shall not apply.

     SECTION 4.5. NOTICE OF ADJUSTMENT.

     Whenever an adjustment in the Conversion Rate with respect to the
Securities is required:

     (a) the Company shall forthwith place on file with the Trustee and any
Conversion Agent for such securities a certificate of the Treasurer of the
Company, stating the adjusted Conversion Rate determined as provided herein and
setting forth in reasonable detail such facts as shall be necessary to show the
reason for and the manner of computing such adjustment; and

     (b) a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall forthwith be given by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company, to each Holder in the manner provided in Section 4.2
hereof. Any notice so given shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice.

     SECTION 4.6. NOTICE IN CERTAIN EVENTS.

     In case:

     (a) of a consolidation or merger to which the Company is a party and for
which approval of any stockholders of the Company is required, or of the sale
or conveyance to another Person or entity or group of Persons or entities
acting in concert as a partnership, limited partnership, syndicate or other
group (within the meaning of Rule 13d-3 under the Exchange Act) of all or
substantially all of the property and assets of the Company; or

48

 

     (b) of the voluntary or involuntary dissolution, liquidation or winding up
of the Company; or

     (c) of any action triggering an adjustment of the Conversion Rate referred
to in clauses (y) or (z) below;

then, in each case, the Company shall cause to be filed with the Trustee and
the Conversion Agent, and shall cause to be given, to the Holders of the
Securities in the manner provided in Section 4.2 hereof, at least 15 days prior
to the applicable date hereinafter specified, a notice stating:

          (y) the date on which a record is to be taken for the purpose of any
distribution or grant of rights or warrants or other securities triggering
an adjustment to the Conversion Rate pursuant to this Article 4, or, if a
record is not to be taken, the date as of which the holders of record of
Common Stock entitled to such distribution, rights or warrants or other
securities are to be determined, or

          (z) the date on which any reclassification, consolidation, merger,
sale, conveyance, dissolution, liquidation or winding up described under
clauses (a), (b) and (c) of Section 4.4 that changes a Holder’s right to
convert into Common Stock to a right to convert into another kind and
amount of securities or other property or assets is expected to become
effective, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their Common Stock for
securities or other property deliverable upon such reclassification,
consolidation, merger sale, conveyance, dissolution, liquidation or
winding up.

     Failure to give such notice or any defect therein shall not affect the
legality or validity of the proceedings described in clause (a), (b) or (c) of
this Section 4.6.

     SECTION 4.7. COMPANY TO RESERVE STOCK: REGISTRATION; LISTING.

     (a) The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued shares of Common Stock
for the purpose of effecting the conversion of the Securities, such number of
its duly authorized shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all Securities then outstanding into
such Common Stock at any time (assuming that, at the time of the computation of
such number of shares or securities, all such Securities would be held by a
single Holder). The Company covenants that all shares of Common Stock which
may be issued upon conversion of Securities will upon issue be fully paid and
nonassessable and free from all liens and charges and, except as provided in
Section 4.8, taxes with respect to the issue thereof.

     (b) If any shares of Common Stock which would be issuable upon conversion
of Securities hereunder require registration with or approval of any
governmental authority before such shares or securities may be issued upon such
conversion, the Company will use its commercially reasonable efforts to cause
such shares or securities to be duly registered or approved, as the case may
be. The Company further covenants that so long as the Common Stock shall be
quoted on the NASDAQ National Market System, the Company will use its
commercially reasonable efforts, if permitted by the rules of NASDAQ, to have
and keep approved for quoting on the NASDAQ National Market System (subject to
notice of official issuance) all Common Stock issuable upon conversion of the
Securities, and the Company will use its commercially reasonable efforts to
list the shares of Common Stock required to be delivered upon conversion of the
Securities prior to such delivery upon any other national securities exchange
upon which the outstanding Common Stock is listed at the time of such delivery.

49

 

     SECTION 4.8. TAXES ON CONVERSION.

     The issue of stock certificates on conversion of Securities shall be made
without charge to the converting Holder for any documentary, stamp or similar
issue or transfer taxes in respect of the issue thereof, and the Company shall
pay any and all documentary, stamp or similar issue or transfer taxes that may
be payable in respect of the issue or delivery of shares of Common Stock on
conversion of Securities pursuant hereto. The Company shall not, however, be
required to pay any such tax which may be payable in respect of any transfer
involved in the issue or delivery of shares of Common Stock or the portion, if
any, of the Securities which are not so converted in a name other than that in
which the Securities so converted were registered, and no such issue or
delivery shall be made unless and until the Person requesting such issue has
paid to the Company the amount of such tax or has established to the
satisfaction of the Company that such tax has been paid.

     The Company agrees, and each Holder is deemed to agree, that delivery to
such Holder of the full number of shares of Common Stock into which each
Security is convertible, together with any Cash payment of such Holder’s
fractional shares or otherwise in accordance with Section 4.13, will be treated
as a contingent payment (in an amount equal to the sum of the then Fair Market
Value of such Common Stock and such Cash payment, if any) on the Securities for
purposes of the Contingent Payment Debt Regulations governing contingent
payment debt obligations.

     Nothing contained herein shall preclude any income tax withholding
required by law or regulation upon conversion of the Securities, and at the
Company’s request, Holders shall be responsible for satisfying any such
withholding.

     SECTION 4.9. CONVERSION AFTER RECORD DATE.

     Except as provided in this Section 4.9, a converting Holder of Securities
shall not be entitled to receive any accrued and unpaid interest (including
Contingent Interest, if any) on any such Securities being converted. By
delivery to the Holder of the number of shares of Common Stock or other
consideration issuable or payable upon conversion in accordance with this
Article 4, any accrued and unpaid interest (including Contingent Interest, if
any) and Special Interest, if any, on such Securities will be deemed to have
been paid in full. If any Securities are surrendered for conversion subsequent
to the Record Date preceding an Interest Payment Date but prior to such
Interest Payment Date, the Holder of such Securities at the close of business
on such Record Date shall receive the interest payable on such Security on such
Interest Payment Date notwithstanding the conversion thereof. Securities
surrendered for conversion during the period from the close of business on any
Record Date preceding any Interest Payment Date to the opening of business on
such Interest Payment Date shall (except in the case of Securities which have
been called for redemption on a Redemption Date within such period) be
accompanied by payment from converting Holders, for the account of the Company,
in New York Clearing House funds, or other funds of an amount equal to the
interest payable on such Interest Payment Date (excluding any overdue interest,
if applicable) on the Securities being surrendered for conversion; provided,
however, if the Company elects to redeem Securities on a date that is after the
Regular Record Date but prior to the corresponding Interest Payment Date, and
such Holder elects to convert those Securities, the Holder will not be required
to pay the Company, at the time that Holder surrenders those Securities for
conversion, the amount of interest such Holder will have received on the
Interest Payment Date.

     Except as provided in this Section 4.9, no adjustments in respect of
payments of interest, including Contingent Interest, if any, and Special
Interest, if any, on Securities surrendered for conversion or any

50

 

dividends or distributions or interest on the Common Stock issued upon
conversion shall be made upon the conversion of any Securities.

     SECTION 4.10. COMPANY DETERMINATION FINAL.

     Any determination that the Company or the Board of Directors must make
pursuant to this Article 4 shall be conclusive if made in good faith and in
accordance with the provisions of this Article, absent manifest error, and set
forth in a Board Resolution.

     SECTION 4.11. RESPONSIBILITY OF TRUSTEE FOR CONVERSION PROVISIONS.

     The Trustee has no duty to determine when an adjustment under this Article
4 should be made, how it should be made or what it should be. Unless and until
a Trust Officer of the Trustee receives a certificate delivered pursuant to
Section 4.5 setting forth an adjustment of the Conversion Rate, the Trustee may
assume without inquiry that no such adjustment has been made and that the last
Conversion Rate of which the Trustee has knowledge remains in effect. The
Trustee makes no representation as to the validity or value of any securities
or assets issued upon conversion of Securities. The Trustee shall not be
responsible for any failure of the Company to comply with this Article 4. Each
Conversion Agent other than the Company shall have the same protection under
this Section 4.11 as the Trustee.

     The rights, privileges, protections, immunities and benefits given to the
Trustee under this Indenture including, without limitation, its rights to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and each Paying Agent or Conversion Agent acting
hereunder.

     SECTION 4.12. UNCONDITIONAL RIGHT OF HOLDERS TO CONVERT.

     Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to convert
its Security in accordance with this Article 4 and to bring an action for the
enforcement of any such right to convert, and such rights shall not be impaired
or affected without the consent of such Holder.

ARTICLE 5

[RESERVED]

ARTICLE 6

COVENANTS

     SECTION 6.1. PAYMENT OF SECURITIES.

     The Company shall promptly make all payments in respect of the Securities
on the dates and in the manner provided in the Securities and this Indenture.
An installment of principal or interest or Special Interest, if any, shall be
considered paid on the date it is due if the Paying Agent (other than the
Company) holds by 11:00 a.m., New York City time, on that date money, deposited
by the Company or an Affiliate thereof, sufficient to pay the installment. The
Company shall, (in immediately available funds) to the fullest extent permitted
by law, pay interest on overdue principal (including premium, if any) and
overdue installments of interest at the rate borne by the Securities per annum.

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     Payment of the principal of (and premium, if any) and any interest on the
Securities shall be made at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York (which shall
initially be U.S. Bank Trust National Association, an Affiliate of the Trustee,
as agent of the Trustee) or at the Corporate Trust Office of the Trustee in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address appears in
the Register; provided, further, that a Holder with an aggregate principal
amount in excess of $5,000,000 will be paid by wire transfer in immediately
available funds at the election of such Holder if such Holder has provided wire
transfer instructions to the Company at least 10 Business Days prior to the
payment date.

     SECTION 6.2. SEC REPORTS.

     The Company shall file all reports and other information and documents
which it is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act, and shall make such reports and other information and
documents available on its website to the extent required by law.

     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 6.3. COMPLIANCE CERTIFICATES.

     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 December
31, 2003), an Officers’ Certificate as to the signer’s knowledge of the
Company’s compliance with all conditions and covenants on its part contained in
this Indenture and stating whether or not the signer knows of any default or
Event of Default. If such signer knows of such a default or Event of Default,
the Officers’ Certificate shall describe the default or Event of Default and
the efforts to remedy the same. For the purposes of this Section 6.3,
compliance shall be determined without regard to any grace period or
requirement of notice provided pursuant to the terms of this Indenture.

     SECTION 6.4. FURTHER INSTRUMENTS AND ACTS.

     Upon request of the Trustee, the Company will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purposes of this Indenture.

     SECTION 6.5. MAINTENANCE OF CORPORATE EXISTENCE.

     Subject to Article 7, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate
existence.

     SECTION 6.6. RULE 144A INFORMATION REQUIREMENT.

     Within the period prior to the expiration of the holding period applicable
to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision), the Company covenants and agrees that it shall, during any period
in which it is not subject to Section 13 or 15(d) under the Exchange Act, upon
the

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request of any Holder or beneficial holder of the Securities make
available to such Holder or beneficial holder of Securities or any Common Stock
issued upon conversion thereof which continue to be Transfer Restricted
Securities in connection with any sale thereof and any prospective purchaser of
Securities or such Common Stock designated by such Holder or beneficial holder,
the information required pursuant to Rule 144A(d)(4) under the Securities Act
or such Common Stock and it will take such further action as any Holder or
beneficial holder of such Securities or such Common Stock may reasonably
request, all to the extent required from time to time to enable such Holder or
beneficial holder to sell its Securities or Common Stock without registration
under the Securities Act within the limitation of the exemption provided by
Rule 144A, as such Rule may be amended from time to time. Upon the request of
any Holder or any beneficial holder of the Securities or such Common Stock, the
Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

     SECTION 6.7. STAY, EXTENSION AND USURY LAWS.

     The Company covenants (to the extent that it may lawfully do so) that it
shall not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Company from paying all or any portion of
the principal of, premium, if any, or interest (including Special Interest, if
any) on the Securities as contemplated herein, wherever enacted, now or at any
time hereafter in force, or which may affect the covenants or the performance
of this Indenture, and the Company (to the extent it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it
will not, by resort to any such law, 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 6.8. PAYMENT OF SPECIAL INTEREST.

     If Special Interest is payable by the Company pursuant to the Registration
Rights Agreement, the Company shall deliver to the Trustee a certificate to
that effect stating (i) the amount of such Special Interest that is payable
(ii) the reason why such Special Interest is payable and (iii) the date on
which such Special Interest is payable. Unless and until a Trust Officer of
the Trustee receives such a certificate, the Trustee may assume without inquiry
that no such Special Interest is payable. If the Company has paid Special
Interest directly to the Persons entitled to it, the Company shall deliver to
the Trustee a certificate setting forth the particulars of such payment.

     SECTION 6.9. PAYMENT OF CONTINGENT INTEREST.

     If Contingent Interest is payable pursuant to the terms of the paragraph 1
of the Security, the Company shall furnish to the Trustee a certificate to that
effect stating (i) the amount of such Contingent Interest per $1,000 principal
amount of the Notes that is payable, (ii) the facts and calculations supporting
the determination of such amount and (iii) the date on which such interest is
payable and pay the Contingent Interest, required by that paragraph. Unless
and until a Trust Officer receives the notice required by such paragraph, the
Trustee may assume without inquiry that no Contingent Interest is payable.

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ARTICLE 7

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     SECTION 7.1. COMPANY MAY CONSOLIDATE, ETC, ONLY ON CERTAIN TERMS.

     The Company shall not consolidate with or merge into any other Person (in
a transaction in which the Company is not the surviving corporation) or convey,
transfer or lease its properties and assets substantially as an entirety to any
Person, unless:

     (a) either (i) the Company is the surviving entity or (ii) the successor
or transferee (the “successor corporation”) is a corporation organized and
existing under the laws of the United States, any State thereof, or the
District of Columbia and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, all of the obligation of the
Company under the Securities and the Indenture;

     (b) immediately after giving effect to such transaction, no Default shall
exist; and

     (c) the Company shall have delivered to the Trustee an Officers’
Certificate and, if requested by the Trustee, an Opinion of Counsel, each
stating that such consolidation, merger, conveyance, transfer, sale, lease or
other disposition and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture, comply with this Article 7
and that all conditions precedent herein provided for relating to such
transaction have been satisfied.

     SECTION 7.2. SUCCESSOR SUBSTITUTED.

     Upon any consolidation of the Company with, or merger of the Company into,
any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section
7.1, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter, except in the case
of a lease, the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Securities.

ARTICLE 8

DEFAULT AND REMEDIES

     SECTION 8.1. EVENTS OF DEFAULT.

     An “Event of Default” shall occur if:

               (1) the Company defaults in the payment of the principal amount (or
premium, if any), with respect to the Securities, when the same become due and
payable;

               (2) the Company defaults in the payment of any accrued and unpaid interest
(including Contingent Interest, if any) and Special Interest, if any, in each
case, when due and payable, and continuance of such default for a period of 30
days;

               (3) the Company fails to satisfy its conversion obligation with respect to
any portion of the principal amount of any Security following the exercise by
the Holder of the right to convert such Security

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into shares of Common Stock (or Cash or a combination of shares of Common
Stock and Cash, if the Company so elects) pursuant to and in accordance with
Article 4;

               (4) the Company defaults in its obligation to pay the Repurchase Price or
the Repurchase Event Repurchase Price, as applicable, with respect to any
Security, or any portion thereof, upon the exercise by the Holder of such
Holder’s right to require the Company to repurchase such Securities pursuant to
and in accordance with Section 3.8 or 3.9, as applicable;

               (5) the Company fails to comply with any of its agreements or covenants in
the Securities or this Indenture (other than those referred to in clauses (1)
through (4) above) and such failure continues for 60 days after receipt by the
Company of a Notice of Default (defined below);

               (6) the Company fails or any Significant Subsidiary fails to make any
payment at maturity on any indebtedness, including any applicable grace
periods, in an amount in excess of $35.0 million in the aggregate for all such
indebtedness and such amount has not been paid or discharged within 30 days
after receipt by the Company of a Notice of Default;

               (7) a default by the Company or any Significant Subsidiary that results in
the acceleration of maturity of any indebtedness of the Company or any
significant subsidiary, at any one time, in an amount in excess of $35.0
million unless the acceleration is rescinded, stayed or annulled within 30 days
after receipt by the Company of a Notice of Default;

               (8) the Company or any Significant Subsidiary, pursuant to or under or
within the meaning of any Bankruptcy Law:

                         (A) commences a voluntary case or proceeding;

                         (B) consents to the entry of any order for relief against it in an
involuntary case or proceeding or the commencement of any case against it;

                         (C) consents to the appointment of a Custodian of it or for any
substantial part of its property;

                         (D) makes a general assignment for the benefit of its creditors;

                         (E) files a petition in bankruptcy or answer or consent seeking
reorganization or relief; or

                         (F) consents to the filing of such petition or the appointment of or
taking possession by a Custodian; or

               (9) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:

                         (A) is for relief against the Company or any Significant Subsidiary, in an
involuntary case or proceeding;

                         (B) appoints a Custodian of the Company or any Significant Subsidiary, or
for any substantial part of its property; or

55

 

                         (C) orders the winding up or liquidation of the Company or any Significant
Subsidiary,

and in each case the order or decree remains unstayed and in effect for 60
consecutive days.

     The term “Bankruptcy Law” means Title 11 of the United States Code (or any
successor thereto) or any similar federal or state law for the relief of
debtors. The term “Custodian” means any receiver, trustee, assignee,
liquidator, sequestrator or similar official under any Bankruptcy Law.

     A default under clause (5) above is not an Event of Default until the
Trustee notifies the Company, or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding notify the Company and the
Trustee, in writing of the default, and the Company does not cure the default
within 60 days after receipt of such notice. The notice given pursuant to this
Section 8.1 must specify the default, demand that it be remedied and state that
the notice is a “Notice of Default.” When any default under this Section 8.1
is cured, it ceases.

     The Trustee shall not be charged with knowledge of any Event of Default
unless written notice thereof shall have been given to a Trust Officer at the
Corporate Trust Office of the Trustee by the Company, a Paying Agent, any
Holder or any agent of any Holder.

     SECTION 8.2. ACCELERATION.

     If an Event of Default (other than an Event of Default specified in clause
(8) or (9) of Section 8.1) occurs and is continuing, the Trustee may, by notice
to the Company, or the Holders of at least 25% in aggregate principal amount of
the Securities then outstanding may, by notice to the Company and the Trustee,
declare all unpaid principal to the date of acceleration on the Securities then
outstanding (if not then due and payable) to be due and payable upon any such
declaration, and the same shall become and be immediately due and payable. If
an Event of Default specified in clause (8) or (9) of Section 8.1 occurs, all
unpaid principal of the Securities then outstanding shall ipso facto become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Holder. The Holders of a majority in aggregate principal
amount of the Securities then outstanding by notice to the Trustee may rescind
an acceleration and its consequences if (a) all existing Events of Default,
other than the nonpayment of the principal of the Securities which has become
due solely by such declaration of acceleration, have been cured or waived; (b)
to the extent the payment of such interest is lawful, interest (calculated at
the rate per annum borne by the Securities) on overdue installments of interest
and overdue principal, which has become due otherwise than by such declaration
of acceleration, has been paid; (c) the rescission would not conflict with any
judgment or decree of a court of competent jurisdiction; and (d) all payments
due to the Trustee and any predecessor Trustee under Section 9.7 have been
made. No such rescission shall affect any subsequent default or impair any
right consequent thereto.

     SECTION 8.3. OTHER REMEDIES.

     If an Event of Default occurs and is continuing, the Trustee may, but
shall not be obligated to, pursue any available remedy by proceeding at law or
in equity to collect the payment of the 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 Securityholder in

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exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. No remedy is exclusive of any other remedy. All available
remedies are cumulative to the extent permitted by law.

     SECTION 8.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.

     Subject to Sections 8.7 and 11.2, the Holders of a majority in aggregate
principal amount of the Securities then outstanding by notice to the Trustee
may waive an existing default or Event of Default and its consequence, except a
default or Event of Default in the payment of the principal of, premium, if
any, or interest on any Security, or the payment of the Redemption Price, the
Repurchase Price or Repurchase Event Repurchase Price or any default or Event
of Default in respect of any provision of this Indenture or the Securities
which, under Section 11.2, cannot be modified or amended without the consent of
the Holder of each Security affected. When a default or Event of Default is
waived, it is cured and ceases.

     SECTION 8.5. CONTROL BY MAJORITY.

     The Holders of a majority in aggregate principal amount of the Securities
then outstanding 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 another Holder or the Trustee, or that may
involve the Trustee in personal liability unless the Trustee is offered
indemnity satisfactory to it; provided, however, that the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with such
direction.

     SECTION 8.6. LIMITATIONS ON SUITS.

     A Holder may not pursue any remedy with respect to this Indenture or the
Securities (except actions for payment of overdue principal or interest or for
the conversion of the Securities pursuant to Article 4) unless:

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

               (2) 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;

               (3) such Holder or Holders offer to the Trustee reasonable indemnity to
the Trustee against any loss, liability or expense;

               (4) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer of indemnity; and

               (5) no direction inconsistent with such written request has been given to
the Trustee during such 60-day period by the Holders of a majority in aggregate
principal amount of the Securities then outstanding.

     A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over such other
Securityholder.

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     SECTION 8.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT.

     Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security to receive payment of the principal of and interest on the
Security, on or after the respective due dates expressed in the Security and
this Indenture, to convert such Security in accordance with Article 4 and to
bring suit for the enforcement of any such payment on or after such respective
dates or the right to convert, is absolute and unconditional and shall not be
impaired or affected without the consent of the Holder.

     SECTION 8.8. COLLECTION SUIT BY TRUSTEE.

     If an Event of Default in the payment of principal or interest specified
in clause (1) or (2) of Section 8.1 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company or another obligor on the Securities for the whole amount of principal
and accrued interest remaining unpaid, together with, to the extent that
payment of such interest is lawful, interest on overdue principal and on
overdue installments of interest, in each case at the rate per annum borne by
the Securities and such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     SECTION 8.9. 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
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and the Holders allowed in
any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered
to collect and receive any money or other property payable or deliverable on
any such claims and to distribute the same, and any Custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due
to it for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 9.7, and to the extent that such payment of the reasonable
compensation, expenses, disbursements and advances in any such proceedings
shall be denied for any reason, payment of the same shall be secured by a lien
on, and shall be paid out of, any and all distributions, dividends, money,
securities and other property which the Holders may be entitled to receive in
such proceedings, whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to, or, on behalf of any Holder,
to authorize, accept or adopt any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

     SECTION 8.10. PRIORITIES.

     If the Trustee collects any money pursuant to this Article 8, it shall pay
out the money in the following order:

     First, to the Trustee for amounts due under Section 9.7;

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     Second, to Holders for amounts due and unpaid on the Securities for
principal and interest (including Special Interest, if any), ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Securities for principal and interest (including Special Interest, if any),
respectively; and

     Third, the balance, if any, to the Company.

     The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 8.10.

     SECTION 8.11. 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 Trustee, a court in its discretion may require the filing by any party
litigant in the suit 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 8.11 does not apply to a suit made by the
Trustee, a suit by a Holder pursuant to Section 8.7, or a suit by Holders of
more than 10% in aggregate principal amount of the Securities then outstanding.

ARTICLE 9

TRUSTEE

     SECTION 9.1. DUTIES OF TRUSTEE.

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

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

               (1) the Trustee need perform only those duties as are specifically set
forth in this Indenture and no others; and

               (2) 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. The Trustee, however, shall
examine any certificates and opinions which by any provision hereof are
specifically required to be delivered to the Trustee to determine whether or
not they conform to the requirements of this Indenture.

     (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:

               (1) this paragraph does not limit the effect of subsection (b) of this
Section 9.1;

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

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               (3) 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 8.5.

     (d) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers unless the Trustee shall have received adequate indemnity in
its opinion against potential costs and liabilities incurred by it relating
thereto.

     (e) Every provision of this Indenture that in any way relates to the
Trustee is subject to subsections (a), (b), (c) and (d) of this Section 9.1.

     (f) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

     SECTION 9.2. RIGHTS OF TRUSTEE.

     Subject to Section 9.1:

     (a) The Trustee may rely conclusively on any document believed by it to be
genuine and to have been signed or presented by the proper person. The Trustee
need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel, which shall conform to Section
13.4(b). The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on such Officers’ Certificate or Opinion.

     (c) The Trustee may act through its agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care.

     (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers.

     (e) The Trustee may consult with counsel of its selection, and the advice
or opinion of such counsel as to matters of law shall be full and complete
authorization and protection in respect of any such action taken, omitted or
suffered by it hereunder in good faith and in accordance with the 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 or direction of any of
the Holders pursuant to this Indenture, unless such Holders shall have offered
to the Trustee security or indemnity satisfactory to the Trustee against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

     (g) 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 to examine the
books, records

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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.

     (h) The Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Trust 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, and such notice
references the Securities and this Indenture.

     (i) The rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, 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.

     SECTION 9.3. 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 an
Affiliate of the Company with the same rights it would have if it were not
Trustee. Any Agent may do the same with like rights. However, the Trustee is
subject to Sections 9.10 and 9.11.

     SECTION 9.4. TRUSTEE’S DISCLAIMER.

     The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company’s use
of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its certificate of authentication.

     SECTION 9.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT.

     If a default or an Event of Default occurs and is continuing and if it is
known to the Trustee, the Trustee shall mail to each Securityholder notice of
the default or Event of Default within 90 days after it occurs. However, the
Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding notice is in the interests
of Securityholders, except in the case of a default or an Event of Default in
payment of the principal of or interest on any Security.

     SECTION 9.6. REPORTS BY TRUSTEE TO HOLDERS.

     If such report is required by TIA Section 313, 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). The Trustee also shall comply with
TIA Section 313(b)(2) and (c).

     A copy of each report at the time of its mailing to Securityholders shall
be mailed to the Company and filed with the SEC and each stock exchange, if
any, on which the Securities are listed. The Company shall notify the Trustee
whenever the Securities become listed on any stock exchange or listed or
admitted to trading on any quotation system and any changes in the stock
exchanges or quotation systems on which the Securities are listed or admitted
to trading and of any delisting thereof.

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     SECTION 9.7. COMPENSATION AND INDEMNITY.

     The Company shall pay to the Trustee from time to time such compensation
(as agreed to from time to time by the Company and the Trustee in writing) for
its services (which compensation shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust). The Company
shall reimburse the Trustee upon request for all reasonable disbursements,
expenses and advances incurred or made by it. Such expenses may include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and
counsel.

     The Company shall indemnify the Trustee or any predecessor Trustee (which
for purposes of this Section 9.7 shall include its officers, directors,
employees and agents) for, and hold it harmless against, any and all loss,
liability or expense including taxes (other than taxes based upon, measured by
or determined by the income of the Trustee), (including reasonable legal fees
and expenses) incurred by it in connection with the acceptance or
administration of its duties under this Indenture or any action or failure to
act as authorized or within the discretion or rights or powers conferred upon
the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder. The Trustee shall notify the Company promptly of any claim asserted
against the Trustee for which it may seek indemnity. The Company need not pay
for any settlement without its written consent, which shall not be unreasonably
withheld.

     The Company need not reimburse the Trustee for any expense or indemnify it
against any loss or liability incurred by it resulting from its gross
negligence or bad faith.

     To secure the Company’s payment obligations in this Section 9.7, the
Trustee shall have a senior claim to which the Securities are hereby made
subordinate on all money or property held or collected by the Trustee, except
such money or property held in trust to pay the principal of and interest on
the Securities. The obligations of the Company under this Section 9.7 shall
survive the satisfaction and discharge of this Indenture or the resignation or
removal of the Trustee.

     When the Trustee incurs expenses or renders services after an Event of
Default specified in clause (7) or (8) of Section 8.1 occurs, the expenses and
the compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law. The provisions of this Section shall
survive the termination of this Indenture.

     SECTION 9.8. REPLACEMENT OF TRUSTEE.

     The Trustee may resign by so notifying the Company. The Holders of a
majority in aggregate principal amount of the Securities then outstanding may
remove the Trustee by so notifying the Trustee and may, with the Company’s
written consent, appoint a successor Trustee. The Company may remove the
Trustee if:

               (1) the Trustee fails to comply with Section 9.10;

               (2) the Trustee is adjudged a bankrupt or an insolvent;

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

               (4) the Trustee becomes incapable of acting.

62

 

     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 a successor
Trustee. The resignation or removal of a Trustee shall not be effective until
a successor Trustee shall have delivered the written acceptance of its
appointment as described below.

     If a successor Trustee does not take office within 45 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or
the Holders of 10% in principal amount of the Securities then outstanding may
petition any court of competent jurisdiction for the appointment of a successor
Trustee at the expense of the Company.

     If the Trustee fails to comply with Section 9.10, any Holder may petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee and be released from its obligations (exclusive of any
liabilities that the retiring Trustee may have incurred while acting as
Trustee) hereunder, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the Trustee under this Indenture. A successor Trustee shall mail
notice of its succession to each Holder.

     A retiring Trustee shall not be liable for the acts or omissions of any
successor Trustee after its succession.

     Notwithstanding replacement of the Trustee pursuant to this Section 9.8,
the Company’s obligations under Section 9.7 shall continue for the benefit of
the retiring Trustee.

     SECTION 9.9. SUCCESSOR TRUSTEE BY MERGER, ETC.

     If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust assets (including the
administration of this Indenture) to, another corporation, the resulting,
surviving or transferee corporation, without any further act, shall be the
successor Trustee, provided such transferee corporation shall qualify and be
eligible under Section 9.10. Such successor Trustee shall promptly mail notice
of its succession to the Company and each Holder.

     SECTION 9.10. ELIGIBILITY; DISQUALIFICATION.

     The Trustee shall always satisfy the requirements of paragraphs (1), (2)
and (5) of TIA Section 310(a). The Trustee (or its parent holding company)
shall have a combined capital and surplus of at least $50,000,000. If at any
time the Trustee shall cease to satisfy any such requirements, it shall resign
immediately in the manner and with the effect specified in this Article 9. The
Trustee shall be subject to the provisions of TIA Section 310(b). Nothing
herein shall prevent the Trustee from filing with the SEC the application
referred to in the penultimate paragraph of TIA Section 310(b).

     SECTION 9.11. 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.

63

 

ARTICLE 10

SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 10.1. SATISFACTION AND DISCHARGE OF INDENTURE.

     This Indenture shall cease to be of further effect (except as to any
surviving rights of conversion, registration of transfer or exchange of
Securities herein expressly provided for and except as further provided below),
and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when

               (1) either

                         (A) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 2.7 and (ii) Securities for whose
payment money has theretofore been deposited in trust and thereafter repaid to
the Company as provided in Section 10.3) have been delivered to the Trustee for
cancellation; or

                         (B) all such Securities not theretofore delivered to the Trustee for
cancellation

                                        (i) have become due and payable, or

                                        (ii) will become due and payable at the Final Maturity Date within one
year, or

                                        (iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company,

and the Company, in the case of clause (i), (ii) or (iii) above, has
irrevocably deposited or caused to be irrevocably deposited with the Trustee or
a Paying Agent (other than the Company or any of its Affiliates) as trust funds
in trust for the purpose cash in an amount sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and interest (including Special Interest, if
any) to the date of such deposit (in the case of Securities which have become
due and payable) or to the Final Maturity Date or Redemption Date, as the case
may be;

               (2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and

               (3) the Company has delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 9.7 shall survive and,
if money shall have been deposited with the Trustee pursuant to subclause (B)
of clause (1) of this Section, the provisions of Sections 2.3, 2.4, 2.5, 2.6,
2.7, 2.12, 3.8, 3.9, 3.10, 3.11 and 12.5, Article 4, the last paragraph of
Section 6.2 and this Article 10, shall survive until the Securities have been
paid in full.

64

 

     SECTION 10.2. APPLICATION OF TRUST MONEY.

     Subject to the provisions of Section 10.3, the Trustee or a Paying Agent
shall hold in trust, for the benefit of the Holders, all money deposited with
it pursuant to Section 10.1 and shall apply the deposited money in accordance
with this Indenture and the Securities to the payment of the principal of and
interest on the Securities.

     SECTION 10.3. REPAYMENT TO COMPANY.

     The Trustee and each Paying Agent shall promptly pay to the Company upon
request any excess money (i) deposited with them pursuant to Section 10.1 and
(ii) held by them at any time.

     The Trustee and each Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal or interest that remains
unclaimed for two years after a right to such money has matured; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such payment, may at the expense of the Company cause to be mailed to each
Holder entitled to such money notice that such money remains unclaimed and that
after a date specified therein, which shall be at least 30 days from the date
of such mailing, any unclaimed balance of such money then remaining will be
repaid to the Company. After payment to the Company, Holders entitled to money
must look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person.

     SECTION 10.4. REINSTATEMENT.

     If the Trustee or any Paying Agent is unable to apply any money in
accordance with Section 10.2 by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s
obligations under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to Section 10.1 until
such time as the Trustee or such Paying Agent is permitted to apply all such
money in accordance with Section 10.2; provided, however, that if the Company
has made any payment of the principal of or interest on any Securities because
of the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive any such payment from the
money held by the Trustee or such Paying Agent.

ARTICLE 11

AMENDMENTS, SUPPLEMENTS AND WAIVERS

     SECTION 11.1. WITHOUT CONSENT OF HOLDERS.

     The Company and the Trustee may amend or supplement this Indenture or the
Securities without notice to or consent of any Securityholder:

     (a) add to the covenants of the Company for the benefit of the Holders of
Securities;

     (b) surrender any right or power herein conferred upon the Company by the
Indenture;

     (c) provide for the assumption of the Company’s obligations to the Holders
of Securities in the case of a merger, consolidation, conveyance, transfer,
sale, lease or other disposition pursuant to Article 7;

65

 

     (d) increase the Conversion Rate or reduce the Conversion Price; provided,
however, that such increase in the Conversion Rate or reduction in the
Conversion Price, as the case may be, is in accordance with the terms of this
Indenture or shall not adversely affect the interests of the Holders of
Securities in any material respect;

     (e) comply with the requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the TIA;

     (f) provide for a successor Trustee with respect to the Securities;

     (g) add any additional Events of Default with respect to all or any of the
Securities;

     (h) secure the Securities;

     (i) supplement any of the provisions of the Indenture to such extent as
shall be necessary to permit or facilitate the discharge of the Securities,
provided, that such change or modification does not adversely affect the
interests of the Holders of the Securities in any material respect;

     (j) make any changes or modifications necessary in connection with the
registration of the Securities under the Securities Act as contemplated in the
Registration Rights Agreement; provided, however,
that such action does not
adversely affect the interests of the Holders of Securities in any material
respect;

     (k) cure any ambiguity, correct or supplement any provision herein which
may be inconsistent with any other provision herein or which is otherwise
defective, or to make any other provisions with respect to matters or questions
arising under this Indenture which the Company may deem necessary or desirable
and which shall not be inconsistent with the provisions of this Indenture;
provided, however, that such action does not adversely affect the interests of
the Holders of Securities in any material respect; and

     (l) add or modify any other provisions herein with respect to matters or
questions arising hereunder which the Company and the Trustee may deem
necessary or desirable and which would not adversely affect the interests of
the Holders of Securities in any material respect.

     SECTION 11.2. WITH CONSENT OF HOLDERS.

     The Company and the Trustee may amend or supplement this Indenture or the
Securities with the written consent of the Holders of at least a majority in
aggregate principal amount of the Securities then outstanding. The Holders of
at least a majority in aggregate principal amount of the Securities then
outstanding may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Securities without notice to any
Securityholder. However, notwithstanding the foregoing but subject to Section
11.4, without the written consent of each Securityholder affected, an
amendment, supplement or waiver, including a waiver pursuant to Section 8.4,
may not:

     (a) change the stated maturity of the principal of, any premium due on or
interest on (including Contingent Interest) or Special Interest on, any
Security;

     (b) reduce the principal amount of, Redemption Price, Repurchase Price,
Repurchase Event Purchase Price or any premium or interest on (including
Contingent Interest) or Special Interest on, any Security;

66

 

     (c) alter the manner of calculation or rate of accrual of interest
(including Contingent Interest), Special Interest, Redemption Price, Repurchase
Price, Repurchase Event Repurchase Price on any Security or extend the time or
payment of any such amount;

     (d) change the place or currency of payment of principal of, or any
premium or interest on (including Contingent Interest), any Security;

     (e) impair the right of any Holder to institute suit for the enforcement
of any repurchase of, payment on or with respect to, or conversion of, any
Security on or after the stated maturity of the Securities, in the case of
redemption, on or after the Redemption Date, or in the case of repayment at the
option of the Holder, on or after the Repurchase Date or Repurchase Event
Repurchase Date;

     (f) modify the optional redemption provisions of Article 3 in a manner
materially adverse to the Holders of Securities;

     (g) adversely affect the right of Holders to convert Securities other than
as provided in or under Article 4 of this Indenture;

     (h) adversely affect the right of Holders to require the Company to
repurchase the Security as provided in Sections 3.8 and 3.9 of this Indenture;

     (i) reduce the percentage of the aggregate principal amount of the
outstanding Securities whose Holders must consent to a modification or
amendment;

     (j) reduce the percentage of the aggregate principal amount of the
outstanding Securities necessary for the waiver of compliance with certain
provisions of this Indenture or the waiver of certain defaults under this
Indenture; and

     (k) modify any of the provisions of this Section or Section 8.4, except to
increase any such percentage or to provide that certain provisions of this
Indenture cannot be modified or waived without the consent of the Holder of
each outstanding Security affected thereby.

     It shall not be necessary for the consent of the Holders under this
Section 11.2 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.

     After an amendment, supplement or waiver under this Section 11.2 becomes
effective, the Company shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amendment, supplement or waiver.

     To the extent that the Company or any of the Subsidiaries hold any
Securities, such Securities shall be disregarded for purposes of voting in
connection with any notice, waiver, consent or direction requiring the vote or
concurrence of Securityholders.

     SECTION 11.3. COMPLIANCE WITH TRUST INDENTURE ACT.

     Every amendment to or supplement of this Indenture or the Securities shall
comply with the TIA as in effect at the date of such amendment or supplement.

67

 

     SECTION 11.4. REVOCATION AND EFFECT OF CONSENTS.

     Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent is not made
on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to its Security or portion of a Security if the Trustee receives the
notice of revocation before the date the amendment, supplement or waiver
becomes effective.

     After an amendment, supplement or waiver becomes effective, it shall bind
every Securityholder, unless it makes a change described in any of clauses (a)
through (k) of Section 11.2. In that case the amendment, supplement or waiver
shall bind each Holder of a Security who has consented to it and every
subsequent Holder of a Security or portion of a Security that evidences the
same debt as the consenting Holder’s Security.

     SECTION 11.5. NOTATION ON OR EXCHANGE OF SECURITIES.

     If an amendment, supplement or waiver changes the terms of a Security, the
Trustee may require the Holder of the Security to deliver it to the Trustee.
The Trustee may place an appropriate notation on the Security about the changed
terms and return it to the Holder. Alternatively, if the Company or the
Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

     SECTION 11.6. TRUSTEE TO SIGN AMENDMENTS, ETC.

     The Trustee shall sign any amendment or supplemental indenture authorized
pursuant to this Article 11 if the amendment or supplemental indenture does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may, in its sole discretion, but need not sign it. In
signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and, subject to Section 9.1, shall be
fully protected in relying upon, an Opinion of Counsel stating that such
amendment or supplemental indenture is authorized or permitted by this
Indenture. The Company may not sign an amendment or supplement indenture until
the Board of Directors approves it.

     SECTION 11.7. EFFECT OF SUPPLEMENTAL INDENTURES.

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

ARTICLE 12
TAX TREATMENT

     SECTION 12.1. TAX TREATMENT

     (a) The parties hereto hereby agree, and each Holder and any beneficial
holder of a Security by its purchase of a Security hereby agrees (in the
absence of administrative pronouncement or judicial ruling to the contrary):

68

 

               (1) to treat the Securities as indebtedness of the Company for all United
States federal income tax purposes;

               (2) to treat the Securities as debt instruments that are subject to
Treasury Regulation section 1.1275-4(b); and

               (3) to treat the delivery of Common Stock or Cash (including Cash
delivered in lieu of a fractional share) to a Holder of a Security upon
conversion of such Security, or upon a purchase of such Security by the Company
at the option of the Holder of a Security where the Company makes a payment in
Cash (including Cash paid in lieu of a fractional share) or elects to pay in
Common Stock or Applicable Stock, as applicable, as a contingent payment (in an
amount equal to the sum of the Fair Market Value of such Common Stock and any
Cash received) under Treasury Regulation section 1.1275-4(b).

     SECTION
12.2. COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE.

     (a) Solely for purposes of applying Treasury Regulation section 1.1275-4
to the Securities:

               (1) for United States federal income tax purposes, the Company shall
accrue interest with respect to outstanding Securities as original issue
discount according to the “noncontingent bond method,” as set forth in Treasury
Regulation section 1.1275-4(b) using a comparable yield of 6.5%, compounded
semiannually, and the projected payment schedule attached as Annex 1 to
Indenture;

               (2) the Company shall file with the Trustee promptly at the end of each
calendar year (A) a written notice specifying the amount of original issue
discount for United States federal income tax purposes accrued on outstanding
Securities as of the end of such year and (B) such other specific information
relating to such original issue discount that the Company determines to be
relevant under the Internal Revenue Code of 1986, as amended from time to time,
including the amount of any adjustment made under the noncontingent bond method
to account for the amount of any difference between the amount of an actual
payment and the amount of a projected payment; and

               (3) the Company acknowledges and agrees, and each Holder and any
beneficial holder of a Security, by its purchase of a Security shall be deemed
to acknowledge and agree, that (A) the comparable yield and the projected
payment schedule are determined on the basis of an assumption of linear growth
of stock price and a constant growth in dividend yield, (B) the comparable
yield and the projected payment schedule are not determined for any purpose
other than for the purpose of applying Treasury Regulation section
1.1275-4(b)(4) to the Security, (C) the comparable yield and the projected
payment schedule do not constitute a projection or representation regarding the
actual amounts payable on the Securities, and (D) the Company’s application of
Treasury Regulation section 1.1275-4(b) shall be binding on each Holder and any
beneficial holder of a Security, including the Company’s determination of the
comparable yield and the projected payment schedule attached as Annex 1 to this
Indenture.

69

 

ARTICLE 13

MISCELLANEOUS

     SECTION 13.1. TRUST INDENTURE ACT CONTROLS.

     If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by any of Sections 310 to 317, inclusive, of the TIA through
operation of Section 318(c) thereof, such imposed duties shall control.

     SECTION 13.2. NOTICES.

     Any demand, authorization notice, request, consent or communication shall
be given in writing and delivered in person or mailed by first-class mail,
postage prepaid, addressed as follows or transmitted by facsimile transmission
(confirmed by delivery in person or mail by first-class mail, postage prepaid,
or by guaranteed overnight courier) to the following facsimile numbers:

	 
	If to the Company, to:
	Invitrogen Corporation
	1600 Faraday Avenue
	Carlsbad, CA 92008
	Attention: Chief Financial Officer
	Facsimile No.: (760) 602-6505
	 
	with a copy to:
	Invitrogen Corporation
	1600 Faraday Avenue
	Carlsbad, CA 92008
	Attention: General Counsel
	Facsimile No.: (760) 476-6326
	 
	if to the Trustee, to:
	U.S. Bank National Association
	550 South Hope Street, 5th Floor
	Los Angeles, CA 90071
	 
	Attn:    Corporate Trust Services
	    
        
(Invitrogen Corporation — 2% Convertible
	             Senior Notes due 2023)
	Facsimile No.: (213) 533-8729

     Such notices or communications shall be effective when received.

     The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.

     Any notice or communication mailed to a Securityholder shall be mailed by
first-class mail or delivered by an overnight delivery service to it at its
address shown on the register kept by the Primary Registrar.

70

 

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

     SECTION 13.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

     Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and any other person shall
have the protection of TIA Section 312(c).

     SECTION 13.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

     (a) 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 at
the request of the Trustee:

               (1) an Officers’ Certificate stating that, in the opinion of the signers,
all conditions precedent (including any covenants, compliance with which
constitutes a condition precedent), if any, provided for in this Indenture
relating to the proposed action have been complied with; and

               (2) an Opinion of Counsel stating that, in the opinion of such counsel,
all such conditions precedent (including any covenants, compliance with which
constitutes a condition precedent) have been complied with.

     (b) Each Officers’ Certificate and Opinion of Counsel with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

               (1) a statement that the person making such certificate or opinion 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
certificate or opinion are based;

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

               (4) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with;

provided, however, that with respect to matters of fact an Opinion of Counsel
may rely on an Officers’ Certificate or certificates of public officials.

     SECTION 13.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS.

     The Company (or, in the event deposits have been made pursuant to Section
10.1, the Trustee) may set a record date for purposes of determining the
identity of Holders entitled to vote or consent to any action by vote or
consent authorized or permitted under this Indenture, which record date shall
not be more than thirty (30) days prior to the date of the commencement of
solicitation of such action. Notwithstanding the provisions of Section 11.4,
if a record date is fixed, those persons who were Holders of Securities at the
close

71

 

of business on such record date (or their duly designated proxies), and
only those persons, shall be entitled to take such action by vote or consent or
to revoke any vote or consent previously given, whether or not such persons
continue to be Holders after such record date.

     SECTION 13.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION
AGENT.

     The Trustee may make reasonable rules (not inconsistent with the terms of
this Indenture) for action by or at a meeting of Holders. Any Registrar,
Paying Agent or Conversion Agent may make reasonable rules for its functions.

     SECTION 13.7. LEGAL HOLIDAYS.

     A “Legal Holiday” is a Saturday, Sunday or a day on which state or
federally chartered banking institutions in New York, New York and the state in
which the Corporate Trust Office is located are not required to be open. If a
payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the
intervening period. If a regular record date is a Legal Holiday, the record
date shall not be affected.

     SECTION 13.8. GOVERNING LAW.

     This Indenture and the Securities shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to
principles of conflicts of laws.

     SECTION 13.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

     This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary of the Company. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

     SECTION 13.10. NO RECOURSE AGAINST OTHERS.

     All liability described in paragraph 19 of the Securities of any director,
officer, employee or shareholder, as such, of the Company is waived and
released.

     SECTION 13.11. 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 13.12. MULTIPLE COUNTERPARTS.

     The parties may sign multiple counterparts of this Indenture. Each signed
counterpart shall be deemed an original, but all of them together represent the
same agreement.

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     SECTION 13.13. SEPARABILITY.

     In case any provisions 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 13.14. TABLE OF CONTENTS, HEADINGS, ETC.

     The table of contents, cross-reference sheet and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or
restrict any of the terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of
the date and year first above written.

	 	 	 	 	 
	 	 	
Invitrogen Corporation
	 	 	 	 	 
	 	 	
By:
	 	
	 	 	
 	 	

	 	 	
Name:
	 	JOHN A. COTTINGHAM
	 	 	
Title:
	 	VP. GEN’L COUNSEL & SECY

	 	 	 	 	 
	 	 	
U.S. Bank National Association, as Trustee
	 	 	 	 	 
	 	 	
By:
	 	
	 	 	
 	 	

	 	 	
Name:
	 	PAULA OSWALD
	 	 	
Title:
	 	VICE PRESIDENT

 

 

ANNEX 1

Projected Payment Schedule

Invitrogen Corporation

2% Convertible Senior Notes Due 2023

EIN: 33-0373077

Projected Payment Schedule

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Contingent	 	Total
	 	 	Coupon	 	Interest	 	Projected
	Date	 	Payments	 	Payment	 	Payments
	
	 	
	 	
	 	

	8/1/2003
	 	 	 	 	 	 	 	 	 	 	($1,000.00	)
	2/1/2004
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2004
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2005
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2005
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2006
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2006
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2007
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2007
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2008
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2008
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2009
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2009
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2010
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2010
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	2/1/2011
	 	 	10.00	 	 	$	0.00	 	 	$	10.00	 
	8/1/2011
	 	 	10.00	 	 	$	2.12	 	 	$	12.12	 
	2/1/2012
	 	 	10.00	 	 	$	2.19	 	 	$	12.19	 
	8/1/2012
	 	 	10.00	 	 	$	2.26	 	 	$	12.26	 
	2/1/2013
	 	 	10.00	 	 	$	2.34	 	 	$	12.34	 
	8/1/2013
	 	 	10.00	 	 	$	2.41	 	 	$	12.41	 
	2/1/2014
	 	 	10.00	 	 	$	2.49	 	 	$	12.49	 
	8/1/2014
	 	 	10.00	 	 	$	2.57	 	 	$	12.57	 
	2/1/2015
	 	 	10.00	 	 	$	2.65	 	 	$	12.65	 
	8/1/2015
	 	 	10.00	 	 	$	2.74	 	 	$	12.74	 
	2/1/2016
	 	 	10.00	 	 	$	2.83	 	 	$	12.83	 
	8/1/2016
	 	 	10.00	 	 	$	2.92	 	 	$	12.92	 
	2/1/2017
	 	 	10.00	 	 	$	3.01	 	 	$	13.01	 
	8/1/2017
	 	 	10.00	 	 	$	3.11	 	 	$	13.11	 
	2/1/2018
	 	 	10.00	 	 	$	3.21	 	 	$	13.21	 
	8/1/2018
	 	 	10.00	 	 	$	3.31	 	 	$	13.31	 
	2/1/2019
	 	 	10.00	 	 	$	3.42	 	 	$	13.42	 
	8/1/2019
	 	 	10.00	 	 	$	3.53	 	 	$	13.53	 
	2/1/2020
	 	 	10.00	 	 	$	3.64	 	 	$	13.64	 
	8/1/2020
	 	 	10.00	 	 	$	3.76	 	 	$	13.76	 
	2/1/2021
	 	 	10.00	 	 	$	3.88	 	 	$	13.88	 
	8/1/2021
	 	 	10.00	 	 	$	4.01	 	 	$	14.01	 
	2/1/2022
	 	 	10.00	 	 	$	4.13	 	 	$	14.13	 
	8/1/2022
	 	 	10.00	 	 	$	4.27	 	 	$	14.27	 
	2/1/2023
	 	 	10.00	 	 	$	4.41	 	 	$	14.41	 
	8/1/2023
	 	 	10.00	 	 	$	4.55	 	 	$	2,696.47	 
	 	 	 	 	 	 	Yield	 	 	6.50	%

Indenture

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF 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. THIS SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]1

     [THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”), AND THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE
UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.]2

     THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE
UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE

	 
	 	1 These paragraphs should be included only if the Security is a Global Security.

	 
	 
	 	2 These paragraphs to be included only if the Security is a Transfer Restricted Security.

A-1

 

     SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]2

     [THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION
RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF) AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO
COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.]2

	 
	 	2 These paragraphs to be included only if the Security is a Transfer Restricted Security.

A-2

 

INVITROGEN CORPORATION

     CUSIP No.: 46185R AE 0

2% CONVERTIBLE SENIOR NOTES DUE 2023

               Invitrogen Corporation, a Delaware corporation (the “Company,” which term
shall include any successor corporation under the Indenture referred to on the
reverse hereof), promises to pay to Cede & Co., or registered assigns, the
principal sum of Three Hundred Twenty-Five Million Dollars ($325,000,000.00) on
August 1, 2023, or such greater or lesser amount as is indicated on the
Schedule of Exchanges of Notes on the other side of this Note.

	 	 	 
	Interest Payment Dates:	 	
August 1 and February 1, commencing February 1, 2004
	 	 	 
	Record Dates:	 	
July 15 and January 15

               This Note is convertible as specified on the other side of this Note.
Additional provisions of this Note are set forth on the other side of this
Note.

SIGNATURE PAGE FOLLOWS

A-3

 

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

	 	 	 
	 	INVITROGEN CORPORATION
	 	 	 
	 	By:	 
	 	 	

	 	Name:	 
	 	Title:	 

	 
	Attest:
	 
	 
	

Name:
	Title:
	 
	Dated:

	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to

in the within-mentioned Indenture

	 
	U.S. Bank National Association, as Trustee

	 
	

Authorized Signatory

A-4

 

[FORM OF REVERSE SIDE OF SECURITY]

INVITROGEN CORPORATION

2% CONVERTIBLE SENIOR NOTES DUE 2023

	1.
	 	INTEREST

          Invitrogen Corporation, a Delaware corporation (the “Company,” which term
shall include any successor corporation under the Indenture hereinafter
referred to), promises to pay interest on the principal amount of this Note at
the rate of 2 % per annum. The Company shall pay interest semiannually on
August 1 and February 1 of each year (each, an “Interest Payment Date”),
commencing on February 1, 2004. Interest on the Notes shall accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from August 1, 2003; provided, however, that if there is not an existing
default in the payment of interest and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding interest
payment date, interest shall accrue from such interest payment date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

          In addition, the Company shall pay contingent interest (“Contingent
Interest”) to the Holders during any six-month period (a “Contingent Interest
Period”) from August 1 to January 31 and from February 1 to July 31, commencing
with the six-month period beginning August 1, 2010, if the average Market Price
of a Note for the five Trading Day period ending on the third Trading Day
immediately preceding the relevant Contingent Interest Period equals $1,200
(120% of the principal amount of a Note) or more.

          Upon a determination by the Company that Holders will be entitled to
receive Contingent Interest which will become payable during a Contingent
Interest Period, on or prior to the first day of such Contingent Interest
Period, the Company shall deliver an Officer’s Certificate to the Trustee
setting forth the amount of such Contingent Interest per $1,000 principal
amount of Notes and shall issue a press release through a public medium as is
customary for such a press release.

          The amount of Contingent Interest payable per $1,000 principal amount of
Notes in respect of any Contingent Interest Period shall equal 0.35% of the
average Market Price of such Note for the five Trading Day period ending on the
third Trading Day immediately preceding the first day of the relevant six-month
period. Contingent Interest, if any, will accrue and be payable to Holders in
the same manner as regular Cash interest. Regular Cash interest will continue
to accrue at the rate of 2% per year on the principal amount of the Notes
whether or not Contingent Interest is paid.

          If this Note is redeemed pursuant to Section 6 of this Note or the Holder
elects to require the Company to repurchase this Note pursuant to Section 8 of
this Note, on a date that is after the Regular Record Date and prior to the
corresponding Interest Payment Date, interest (including Contingent Interest,
if any) and Special Interest, if any, accrued and unpaid hereon to, but not
including, the applicable Redemption Date, Repurchase Date or Repurchase Event
Repurchase Date will be paid to the same Holder to whom the Company pays the
principal of such Note regardless of whether such Holder was the registered
Holder on the Regular Record Date immediately preceding the applicable
Redemption Date, Repurchase Date or Repurchase Event Repurchase Date.

          Interest (including Contingent Interest, if any) and Special Interest, if
any, on Notes converted after the close of business on a Regular Record Date
but prior to the opening of business on the corresponding Interest Payment Date
will be paid to the Holder of the Notes on the July 15 or January 15 (whether
or not a Business

A-5

 

Day), as the case may be, next preceding the corresponding Interest
Payment Date (a “Regular Record Date”) but, upon conversion, the Holder must
pay the Company the interest (including Contingent Interest, if any) and
Special Interest, if any, which has accrued and will be paid on such Interest
Payment Date. No such payment need be made with respect to Notes which will be
converted after a Regular Record Date and prior to the corresponding Interest
Payment Date after being called for redemption by the Company.

          Any reference herein to interest accrued or payable as of any date shall
include any Special Interest accrued or payable on such date as provided in
Section 2 hereof.

	2.
	 	REGISTRATION RIGHTS AGREEMENT

          The holder of this Note is entitled to the benefits of a Registration
Rights Agreement, dated as of August 1, 2003, among the Company and the Initial
Purchasers (the “Registration Rights Agreement”). Pursuant to the Registration
Rights Agreement the Company has agreed for the benefit of the Holders of the
Notes, that (i) it will, at its cost, within 90 days after the closing of the
sale of the Notes (the “Closing”), file a shelf registration statement (the
“Shelf Registration Statement”) with the Securities and Exchange Commission
(the “Commission”) with respect to resales of the Notes and the Common Stock
issuable upon conversion thereof, (ii) it will use its reasonable best efforts
to cause such Shelf Registration Statement to be declared effective within 180
days after the Closing, and (iii) it will use its best efforts to keep such
Shelf Registration Statement continuously effective under the Securities Act,
subject to certain exceptions specified in the Registration Rights Agreement
until the second anniversary of the date of the Closing. As set forth in the
Registration Rights Agreement, the Company will be permitted to suspend use of
the prospectus that is part of the Shelf Registration Statement during certain
periods of time and in certain circumstances relating to pending corporate
developments and public filings with the SEC and similar events. If (a) the
Company fails to file the Shelf Registration Statement required by the
Registration Rights Agreement on or before the date specified above for such
filing, (b) such Shelf Registration Statement is not declared effective by the
Commission on or prior to the date specified above for such effectiveness, or
(c) the Shelf Registration Statement is declared effective but thereafter
ceases to be effective or useable in connection with resales of Transfer
Restricted Securities (as defined in the Registration Rights Agreement) during
the periods specified in the Registration Rights Agreement (each such event
referred to in clauses (a) through (c) above a “Registration Default”), then
the Company will pay Special Interest to each Holder of Transfer Restricted
Securities, with respect to the first 90-day period immediately following the
occurrence of such Registration Default in an amount equal to an increase in
the annual interest rate on the Notes of 0.25% (“Special Interest”) and with
respect to each subsequent 90-day period, additional amounts equal to an
increase in the annual interest rate on the Notes of 0.25% until all
Registration Defaults have been cured, up to a maximum increase in the annual
interest rate on the Notes equal to 1.0%. All accrued Special Interest shall
be paid by the Company on each Interest Payment Date for which Special Interest
is owed to the holders of Global Notes by wire transfer of immediately
available funds or by federal funds check and to holders of certificated Notes
registered as such as of the preceding Record Date by mailing checks to their
registered addresses. Following the cure of all Registration Defaults, the
application of Special Interest will cease.

	3.
	 	METHOD OF PAYMENT

          The Company shall pay interest (including Contingent Interest, if any) on
this Note (except defaulted interest) and Special Interest, if any, to the
person who is the Holder of this Note at the close of business on July 15 or
January 15, as the case may be, next preceding the related interest payment
date. The Holder must surrender this Note to a Paying Agent to collect payment
of principal. The Company will pay principal and interest (including
Contingent Interest, if any) and Special Interest, if any, in money of the
United States that at

A-6

 

the time of payment is legal tender for payment of public and private
debts. The Company may, however, pay principal and interest (including
Contingent Interest, if any) and Special Interest, if any, in respect of any
Certificated Security by check or wire payable in such money;
provided,
however, that a Holder with an aggregate principal amount in excess of
$5,000,000 will be paid by wire transfer in immediately available funds at the
election of such Holder if such Holder has provided wire transfer instructions
to the Company at least 10 Business Days prior to the payment date.

	4.
	 	PAYING AGENT, REGISTRAR, BID SOLICITATION AGENT AND CONVERSION AGENT

          Initially, U.S. Bank National Association (the “Trustee,” which term shall
include any successor trustee under the Indenture hereinafter referred to) will
act as Paying Agent, Registrar, Bid Solicitation Agent and Conversion Agent.
The Company may change any Paying Agent, Registrar, Bid Solicitation Agent or
Conversion Agent without notice to the Holder. The Company or any of its
Subsidiaries may, subject to certain limitations set forth in the Indenture,
act as Paying Agent or Registrar.

	5.
	 	INDENTURE, LIMITATIONS

          This Note is one of a duly authorized issue of Securities of the Company
designated as its 2% Convertible Senior Notes due 2023 (the “Notes”), issued
under an Indenture dated as of August 1, 2003 (together with any supplemental
indentures thereto, the “Indenture”), between the Company and the Trustee.
The terms of this Note include those stated in the Indenture and those required
by or made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended, as in effect on the date of the Indenture. This Note is
subject to all such terms, and the Holder of this Note is referred to the
Indenture and said Act for a statement of them. The Notes are senior unsecured
obligations of the Company limited to $325,000,000 aggregate principal amount.
The Indenture does not limit other debt of the Company, secured or unsecured.

	6.
	 	OPTIONAL REDEMPTION

          The Notes are subject to redemption, at any time on or after August 1,
2010, as a whole or from time to time in part, at the election of the Company.
The Redemption Price is 100% of the principal amount together with accrued and
unpaid interest (including Contingent Interest, if any) and Special Interest,
if any, up to but not including the Redemption Date; provided,
that if the
Redemption Date falls after an interest payment record date and on or before an
interest payment date, then the interest (including Contingent Interest, if
any) and Special Interest, if any, will be payable to the Holders in whose
names the Notes are registered at the close of business on the relevant
interest payment record date.

          No sinking fund is provided for the Notes.

	7.
	 	NOTICE OF REDEMPTION

          Notice of redemption will be mailed by first-class mail at least 30 days
but not more than 60 days before the Redemption Date to each Holder of Notes to
be redeemed at its registered address. Notes in denominations larger than
$1,000 may be redeemed in part, but only in whole multiples of $1,000. On and
after the Redemption Date, subject to the deposit with the Paying Agent of
funds sufficient to pay the Redemption Price plus accrued interest (including
Contingent Interest, if any) and Special Interest, if any, accrued to, but
excluding, the Redemption Date, interest (including Contingent Interest, if
any) and Special Interest, if any, shall cease to accrue on Notes or portions
of them called for redemption.

A-7

 

	8.
	 	PURCHASE OF NOTES AT OPTION OF HOLDER OR UPON A REPURCHASE EVENT

          Subject to the terms and conditions of the Indenture, the Company shall
become obligated to repurchase, at the option of the Holder, all or any portion
of the Notes held by such Holder on August 1, 2010, August 1, 2013 and August
1, 2018 in integral multiples of $1,000 at a repurchase price equal to 100% of
the principal amount of those Notes plus accrued and unpaid interest (including
Contingent Interest, if any) and Special Interest, if any, to, but not
including, such Repurchase Date (the “Repurchase Price”). To exercise such
right, a Holder shall deliver to the Paying Agent a Repurchase Notice
containing the information set forth in the Indenture, at any time from 9:00
a.m., New York City time, on the date that is 20 Business Days immediately
preceding such Repurchase Date until 5:00 p.m., New York City time, on the
Business Day immediately preceding such Repurchase Date, and shall deliver the
Securities to the Paying Agent as set forth in the Indenture.

          If the Notes are to be repurchased on August 1, 2010, the Repurchase Price
must be paid in Cash. If the Notes are to be repurchased on August 1, 2013 or
August 1, 2018 Repurchase Date, the Repurchase Price may be paid, at the option
of the Company, in Cash or by the issuance and delivery of shares of Common
Stock, or in any combination thereof, subject to the terms and conditions of
the Indenture.

          Subject to the terms and conditions of the Indenture, the Company shall
become obligated to repurchase, at the option of the Holder, all or any portion
of the Notes held by such Holder upon a Repurchase Event that occurs prior to
August 1, 2010 in integral multiples of $1,000 at the Repurchase Event
Repurchase Price. To exercise such right, a Holder shall deliver to the Paying
Agent a Repurchase Event Repurchase Notice containing the information set forth
in the Indenture, at any time prior to 5:00 p.m., New York City time, on the
Business Day immediately preceding the Repurchase Event Repurchase Date, and
shall deliver the Notes to the Paying Agent as set forth in the Indenture.

          The Repurchase Event Repurchase Price may be paid, at the option of the
Company, in Cash or by the issuance and delivery of shares of Applicable Stock,
or in any combination thereof, subject to the terms and conditions of the
Indenture.

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

          If Cash and/or Applicable Stock, if permitted under the Indenture,
sufficient to pay the Repurchase Price or Repurchase Event Repurchase Price, as
the case may be, of all Notes or portions thereof to be repurchased with
respect to a Repurchase Date or Repurchase Event Repurchase Date, as the case
may be, has been deposited with the Paying Agent, at 10:00 a.m., New York City
time, on the Business Day immediately following the Repurchase Date or
Repurchase Event Repurchase Date, as the case may be, then, immediately after
the Repurchase Date or Repurchase Event Repurchase Date, as applicable, such
Notes will cease to be outstanding and interest (including Contingent Interest,
if any) and Special Interest, if any, on such Notes will cease to accrue and
the Holder thereof shall have no other rights as such other than the right to
receive the Repurchase Price or Repurchase Event Repurchase Price upon
surrender of such Note.

	9.
	 	CONVERSION

          Subject to and in compliance with the provisions of the Indenture
(including, without limitation, the conditions to conversion of this Security
set forth in Section 4.1 and Section 4.2 thereof), a Holder is entitled,

A-8

 

at such Holder’s option, to convert the Holder’s Note (or any portion of
the principal amount thereof that is $1,000 or an integral multiple $1,000),
into fully paid and nonassessable of shares of Common Stock at the Conversion
Rate in effect on the date of conversion.

          The Company will notify Holders of any event triggering the right to
convert the Notes as specified above in accordance with the Indenture.

          A Note in respect of which a Holder has delivered a Repurchase Notice or
Repurchase Event Repurchase Notice, as the case may be, exercising the right of
such Holder to require the Company to repurchase such Note may be converted
only if such Repurchase Notice or Repurchase Event Repurchase Notice is
withdrawn in accordance with the terms of the Indenture.

          The initial Conversion Rate is 14.6547 shares per $1,000 principal amount
of Notes, subject to adjustment in certain events described in the Indenture.

          To surrender a Note for conversion, a Holder must, in the case of Global
Notes, comply with the Applicable Procedures of the Depositary in effect at
that time, and in the case of Certificated Notes, (1) surrender the Security to
the Conversion Agent, (2) complete and manually sign the conversion notice
below (or complete and manually sign a facsimile of such notice) and deliver
such notice to the Conversion Agent, (3) furnish appropriate endorsements and
transfer documents and (4) pay all funds required, if any, relating to interest
(including Contingent Interest, if any) or Special Interest, if any, and any
withholding, transfer or similar tax, if required.

          No fractional share of Common Stock shall be issued upon conversion of any
Note. Instead, the Company shall pay a Cash adjustment as provided in the
Indenture.

          No payment or adjustment will be made for accrued and unpaid interest
(including Contingent Interest, if any) and Special Interest, if any, or
dividends on the shares of Common Stock, except as provided in the Indenture.

          If the Company (i) is a party to a consolidation, merger, statutory share
exchange or combination of the Company with another corporation and as a result
of which all the holders of the outstanding Common Stock shall be entitled to
receive stock, securities or other property or assets (including Cash or a
combination thereof) with respect to or in exchange for all of their Common
Stock, (ii) reclassifies or changes the shares of Common Stock or (iii)
conveys, transfers or leases its properties and assets as, or substantially as,
an entirety to any person, the right to convert a Note into shares of Common
Stock may be changed into a right to convert a Note into the kind and amount of
shares of stock and other securities or property or assets (including Cash)
which such Holder would have been entitled to receive upon such
reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance had such Holder converted its Note into Common
Stock immediately prior to such transaction, in each case, in accordance with
the Indenture.

	10.
	 	CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION

     Any Notes called for redemption, unless surrendered for conversion before
the close of business on the Business Day immediately preceding the Redemption
Date, may be deemed to be purchased from the Holders of such Notes at an amount
not less than the Redemption Price, together with accrued interest (including
Contingent Interest, if any) and Special Interest, if any, to, but not
including, the Redemption Date, by one or more investment bankers or other
purchasers who may agree with the Company to purchase such Notes from

A-9

 

the Holders, to convert them into Common Stock of the Company and to make
payment for such Notes to the Paying Agent in trust for such Holders.

	11.
	 	[RESERVED]

	12.
	 	DENOMINATIONS, TRANSFER, EXCHANGE

          The Notes are in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000. A Holder may register the transfer of
or exchange Notes 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 or other governmental charges that may be
imposed in relation thereto by law or permitted by the Indenture.

	13.
	 	PERSONS DEEMED OWNERS

          The Holder of a Note may be treated as the owner of it for all purposes.

	14.
	 	UNCLAIMED MONEY

          If money for the payment of principal or interest (including Contingent
Interest, if any) and Special Interest, if any, remains unclaimed for two
years, the Trustee or Paying Agent will pay the money back to the Company at
its written request, subject to applicable unclaimed property law. After that,
Holders entitled to money must look to the Company for payment as general
creditors unless an applicable abandoned property law designates another
person.

	15.
	 	AMENDMENT, SUPPLEMENT AND WAIVER

          Subject to certain exceptions, the Indenture or the Notes may be amended
or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the Notes then outstanding, and an existing
default or Event of Default and its consequence or compliance with any
provision of the Indenture or the Notes may be waived in a particular instance
with the consent of the Holders of a majority in aggregate principal amount of
the Notes then outstanding. Without the consent of or notice to any Holder,
the Company and the Trustee may amend or supplement the Indenture or the Notes
to, among other things, cure any ambiguity, defect or inconsistency or make any
other change that does not adversely affect the rights of any Holder.

	16.
	 	SUCCESSOR ENTITY

          When a successor corporation assumes all the obligations of its
predecessor under the Notes and the Indenture in accordance with the terms and
conditions of the Indenture, the predecessor corporation (except in certain
circumstances specified in the Indenture) shall be released from those
obligations.

	17.
	 	DEFAULTS AND REMEDIES

          Under the Indenture, an Event of Default includes: (i) default for 30
days in payment of any interest (including Contingent Interest, if any) or
Special Interest on any Notes; (ii) default in payment of any principal
(including, without limitation, any premium, if any) on the Notes when due;
(iii) failure by the Company for 60

A-10

 

days after notice to it to comply with any of its other agreements
contained in the Indenture or the Notes; (iv) default in the payment of certain
indebtedness of the Company or a Significant Subsidiary; (v) the Company fails
to provide a Purchase Offer within 30 days after notice of failure to timely
deliver the same; and (vi) certain events of bankruptcy, insolvency or
reorganization of the Company or any Significant Subsidiary. If an Event of
Default (other than as a result of certain events of bankruptcy, insolvency or
reorganization of the Company) occurs and is continuing, the Trustee or the
Holders of at least 25% in aggregate principal amount of the Notes then
outstanding may declare all unpaid principal to the date of acceleration on the
Notes then outstanding to be due and payable immediately, all as and to the
extent provided in the Indenture. If an Event of Default occurs as a result of
certain events of bankruptcy, insolvency or reorganization of the Company,
unpaid principal of the Notes then outstanding shall become due and payable
immediately without any declaration or other act on the part of the Trustee or
any Holder, all as and to the extent provided in the Indenture. Holders may
not enforce the Indenture or the Notes except as provided in the Indenture.
The Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Notes. Subject to certain limitations, Holders of a majority
in aggregate principal amount of the Notes then outstanding 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 or interest) if it determines that withholding notice is in their
interests. The Company is required to file periodic reports with the Trustee
as to the absence of default.

	18.
	 	TRUSTEE DEALINGS WITH THE COMPANY

          U.S. Bank National Association, the Trustee under the Indenture, in its
individual or any other capacity, may make loans to, accept deposits from and
perform services for the Company or an Affiliate of the Company, and may
otherwise deal with the Company or an Affiliate of the Company, as if it were
not the Trustee.

	19.
	 	NO RECOURSE AGAINST OTHERS

          A director, officer, employee or shareholder, as such, of the Company
shall not have any liability for any obligations of the Company under the Notes
or the Indenture nor for any claim based on, in respect of or by reason of such
obligations or their creation. The Holder of this Note by accepting this Note
waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of this Note.

	20.
	 	AUTHENTICATION

          This Note shall not be valid until the Trustee or an authenticating agent
manually signs the certificate of authentication on the other side of this
Note.

	21.
	 	ABBREVIATIONS AND DEFINITIONS

          Customary abbreviations may be used in the name of the 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 UGMA (= Uniform Gifts to Minors
Act).

          All terms defined in the Indenture and used in this Note but not
specifically defined herein are defined in the Indenture and are used herein as
so defined.

A-11

 

	22.
	 	INDENTURE TO CONTROL; GOVERNING LAW

          In the case of any conflict between the provisions of this Note and the
Indenture, the provisions of the Indenture shall control. This Note shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to principals of conflicts of law.

          The Company will furnish to any Holder, upon written request and without
charge, a copy of the Indenture. Requests may be made to: Invitrogen
Corporation, 1600 Faraday Avenue, Carlsbad, California 92008, Attention:
Investor Relations.

A-12

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     I or we assign and transfer this Note to

(Insert assignee’s soc. sec. or tax I.D. no.)

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

and irrevocably appoint

agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him or her.

	 	 	 	 
	 	 	 	
Your Signature:
	 	 	 	 
	Date:	 	 	 
	 	
	 	

	 	 	 	
(Sign exactly as your name appears on the
	 	 	 	
other side of this Note)
	 	 	 	 
	*Signature guaranteed by:	 	 
	 	 	 	 
	By:	 	 	 
	 	
	 	 

	 	*
	 	The signature must be guaranteed by an institution which is a
member of one of the following recognized signature guaranty
programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP);
(iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other
guaranty program acceptable to the Trustee.

A-13

 

CONVERSION NOTICE

          To convert this Note into Common Stock of the Company, check the box: o

          To convert only part of this Note, state the principal amount to be
converted (must be $1,000 or a integral multiple of $1,000): $            .

          If you want the stock certificate made out in another person’s name, fill
in the form below:

(Insert assignee’s soc. sec. or tax I.D. no.)

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

	 	 	 	 
	 	 	 	
Your Signature:
	 	 	 	 
	Date:	 	 	 
	 	
	 	

	 	 	 	
(Sign exactly as your name appears on the
	 	 	 	
other side of this Note)
	 	 	 	 
	*Signature guaranteed by:	 	 
	 	 	 	 
	By:	 	 	 
	 	
	 	 

	 	*
	 	The signature must be guaranteed by an institution which is a
member of one of the following recognized signature guaranty
programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP);
(iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other
guaranty program acceptable to the Trustee.

A-14

 

SCHEDULE OF EXCHANGES OF NOTES4

          The following exchanges, redemptions, repurchases or conversions of a part
of this global Note have been made:

	 	 	 	 	 	 	 	 	 
	Principal Amount	 	 	 	 	 	 	 	 
	of this Global Note	 	Authorized	 	 	 	 	 	Amount of
	Following Such	 	Signatory of	 	 	Amount of Decrease in	 	 	Increase in
	Decrease Date	 	Securities	 	 	Principal Amount	 	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	 	of this Global Note	 	 	of this Global Note
	
	 	
	 	 	
	 	 	

	 
	 	4 This schedule should be included only if the Security is a Global Security.

A-15

 

EXHIBIT B

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF TRANSFER RESTRICTED SECURITIES5

	 	
	 	Re: 2% Convertible Senior Notes due 2023 (the “Notes”) of Invitrogen Corporation

          This certificate relates to $            principal amount of Notes owned in
(check applicable box)

          o book-entry or       o definitive form by          (the “Transferor”).

          The Transferor has requested a Registrar or the Trustee to exchange or
register the transfer of such Notes.

          In connection with such request and in respect of each such Note, the
Transferor does hereby certify that the Transferor is familiar with transfer
restrictions relating to the Notes as provided in Section 2.12 of the Indenture
dated as of August 1, 2003 between Invitrogen Corporation and U.S. Bank
National Association, as trustee (the “Indenture”), and the transfer of such
Note is being made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”) (check applicable
box) or the transfer or exchange, as the case may be, of such Note does not
require registration under the Securities Act because (check applicable box):

	 	 	 
	o	 	
Such Note is being transferred pursuant to an effective registration
statement under the Securities Act.
	 	 	 
	o	 	
Such Note is being acquired for the Transferor’s own account,
without transfer.
	 	 	 
	o	 	
Such Note is being transferred to the Company or a Subsidiary (as
defined in the Indenture) of the Company.
	 	 	 
	o	 	
Such Note is being transferred to a person the Transferor reasonably
believes is a “qualified institutional buyer” (as defined in Rule
144A or any successor provision thereto (“Rule 144A”) under the
Securities Act) that is purchasing for its own account or for the
account of a “qualified institutional buyer,” in each case to whom
notice has been given that the transfer is being made in reliance on
such Rule 144A, and in each case in reliance on Rule 144A.
	 	 	 
	o	 	
Such Note is being transferred pursuant to and in compliance with an
exemption from the registration requirements under the Securities
Act in accordance with Rule 144 (or any successor thereto) (“Rule
144”) under the Securities Act.

          Such Note is being transferred pursuant to and in compliance with an
exemption from the registration requirements of the Securities Act (other than
an exemption referred to above) and as a result of which such

	 
	 	5 This certificate should only be included if this Security is a Transfer
Restricted Security.

B-1

 

Note will, upon such transfer, cease to be a “restricted security” within
the meaning of Rule 144 under the Securities Act.

          The Transferor acknowledges and agrees that, if the transferee will hold
any such Notes in the form of beneficial interests in a global Note which is a
“restricted security” within the meaning of Rule 144 under the Securities Act,
then such transfer can only be made pursuant to Rule 144A under the Securities
Act and such transferee must be a “qualified institutional buyer” (as defined
in Rule 144A).

	 	 	 	 	 
	Date:	 	 	 	 
	 	

	 	

	 	 	 	 	(Insert Name of Transferor)

B-2

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