Document:

Exhibit 10.2

 

SHARE LENDING AGREEMENT

 

Dated as of April 10, 2008

 

Among

 

GLOBALSTAR, INC. (“Lender”),

 

and

 

MERRILL LYNCH INTERNATIONAL (“Borrower”), through MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED, as agent for Borrower (“Borrowing
Agent”).

 

This Agreement sets forth the terms and conditions
under which Borrower may borrow from Lender shares of its Common Stock.

 

The parties hereto agree as follows:

 

SECTION 1.  Certain Definitions.  The following capitalized
terms shall have the following meanings:

 

“Business Day”
means a day, other than a Saturday or Sunday, on which (i) regular trading
occurs in the principal trading market for the Common Stock and (ii) the
Clearing Organization is open.

 

“Cash” means any
coin or currency of the United States as at the time shall be legal tender for
payment of public and private debts.

 

“Clearing Organization”
means The Depository Trust Company, or, if agreed to by Borrower and Lender, a
Securities Intermediary at which Borrower (or Borrowing Agent) and Lender both
maintain accounts.

 

“Closing Price”
on any day means, with respect to the Common Stock (i) if the Common Stock
is listed or admitted to trading on a U.S. securities exchange registered under
the Exchange Act or is included in the OTC Bulletin Board Service (operated by
the Financial Industry Regulatory Authority, Inc.), the last reported sale
price, regular way, in the principal trading session on such day on such market
on which the Common Stock is then listed, admitted to trading or included (or,
if the day of determination is not a Business Day, the last preceding Business
Day) and (ii) if the Common Stock is not so listed or admitted to trading
or if the last reported sale price is not obtainable (even if the Common Stock
is listed, admitted to trading or included on such market), the average of the
bid prices for the Common Stock obtained from as many dealers in the Common
Stock (which may include Borrower or its affiliates), but not exceeding three,
as shall furnish bid prices to Borrower.

 

 

“Common Stock”
means shares of Common Stock, par value $0.0001 per share, of Lender, or any
other security into which the Common Stock shall be exchanged or converted as
the result of any merger, consolidation, other business combination,
reorganization, reclassification, recapitalization or other corporate action
(including, without limitation, a reorganization in bankruptcy).

 

“Convertible Notes”
means the $135,000,000 aggregate principal amount of 5.75% Convertible Senior
Notes due 2028 issued by Lender, or up to $150,000,000 aggregate principal
amount to the extent the option to purchase additional Convertible Notes (the “Option”) is exercised in full as set forth in the
underwriting agreement relating to the Convertible Notes.

 

“Convertible Notes
Settlement Date” means April 15, 2008.

 

“Cutoff Time”
means 10:00 a.m. in the jurisdiction of the Clearing Organization, or such
other time on a Business Day by which a transfer of Loaned Shares must be made
by Borrower or Lender to the other, as shall be determined in accordance with
market practice.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Guarantor”
means Merrill Lynch & Co., Inc.

 

“Indenture”
means the Indenture dated April 15, 2008, between Lender and U.S. Bank,
National Association, as trustee, as supplemented by a First Supplemental
Indenture dated April 15, 2008 pursuant to which the Convertible Notes are
to be issued, as such Indenture and supplement are in effect as of the
Convertible Notes Settlement Date.

 

“Lender’s Designated
Account” means the securities account of Lender maintained on the
books of Borrower, as Securities Intermediary, and designated “[                  ]”
(account number
[                  ]),
established simultaneously with the execution of this Agreement.

 

“Loan Availability Period”
means the period beginning on the date hereof and ending on the earlier of (i) the
date as of which the entire principal amount of Convertible Notes ceases to be
outstanding, whether at maturity or as a result of conversion, redemption,
repurchase, cancellation or otherwise and (ii) the date on which this
Agreement shall terminate in accordance with the terms of this Agreement.

 

“Loaned Shares”
means shares of Common Stock initially transferred to Borrower in a Loan
hereunder until such Loan or portion thereof is terminated and a corresponding
number of Loaned Shares is transferred to Lender pursuant to this Agreement; provided that in respect of any such share of Common Stock
initially transferred to Borrower by Lender and subsequently transferred by
Borrower to another transferee, “Loaned Shares” means an equivalent number of 

 

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shares of identical Common Stock. If, as the
result of a stock dividend, stock split or reverse stock split, the number of
outstanding shares of Common Stock is increased or decreased, then the number
of Loaned Shares under outstanding Loans shall, effective as of the payment or
delivery date of any such event, be proportionately increased or decreased, as
the case may be.  If any new or different
security (or two or more securities) or other property shall be exchanged for
the outstanding shares of Common Stock as the result of any reorganization,
merger, consolidation, reclassification, recapitalization or other corporate
action (including, without limitation, a reorganization in bankruptcy), such
new or different security (or such two or more securities collectively) or
other property shall, effective upon such exchange, be deemed to become a Loaned
Share in substitution for the former Loaned Share for which such exchange is
made, and in the same proportion for which such exchange is made.  For purposes of return of Loaned Shares by
Borrower or purchase or sale of securities pursuant to Section 4 or Section 10,
such term shall mean securities of the same issuer, class and quantity as the
Loaned Shares as adjusted pursuant to the two preceding sentences.

 

“Maximum Number of Shares”
means 36,144,570 shares of Common Stock, subject to the following adjustments:

 

(a)           If,
as the result of a stock dividend, stock split or reverse stock split, the
number of outstanding shares of Common Stock is increased or decreased, the
Maximum Number of Shares shall, effective as of the payment or delivery date of
any such event, be proportionally increased or decreased, as the case may be.

 

(b)           If,
pursuant to a merger, consolidation, other business combination,
reorganization, reclassification, recapitalization or other corporate action
(including, without limitation, a reorganization in bankruptcy), the Common
Stock is exchanged for, or converted into, cash, securities or other property
(the “Reference Property”):

 

(i)            if
such Reference Property consists entirely of securities or property other than
cash (but including two or more securities or different types of property),
then, on the exchange or conversion date for any such event, the Maximum Number
of Shares shall be proportionally increased or decreased to reflect the amount
of securities or other property per share of Common Stock for which an exchange
or conversion was made (or, in the case of more than one type of security or
item of property, the Maximum Number of Shares shall be apportioned and
proportionally divided among each such type of security or property); and

 

(ii)           if
such Reference Property consists of a combination of cash and securities or
other property, then, on the exchange or conversion date for any such event,
the Maximum Number of Shares shall be adjusted as set forth under clause (i) above
as if such Reference Property did not include any cash, and Borrower shall pay
the cash amount as set forth in Section 4(d) hereof.

 

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(c)           If
any Convertible Notes are tendered to Lender for conversion in accordance with
the terms of such Convertible Notes, the Maximum Number of Shares shall, upon
delivery to Borrower, within two Business Days of receipt by Lender of a
conversion notice, a notice setting forth the conversion settlement date of
such Convertible Notes, effective as of the final date Lender delivers cash
and/or shares of Common Stock in satisfaction of the related conversion
obligation, be reduced by a number of shares of Common Stock (rounded down to
the nearest whole share) equal to the product of the Maximum Number of Shares
immediately prior to such conversion and a fraction, the numerator of which is
the principal amount of Convertible Notes tendered for conversion and the
denominator of which is the principal amount of Convertible Notes outstanding as
of initial issuance (plus any amount of Convertible Notes issued pursuant to
the Option).

 

(d)           Notwithstanding
the foregoing, if, at any time after the Convertible Notes Settlement Date, the
Maximum Number of Shares exceeds the product of (i) the aggregate
principal amount of Convertible Notes issued on such Convertible Notes
Settlement Date plus, as of any time prior to the expiration of the Option,
Convertible Notes issuable upon exercise of the Option, divided by $1,000, and (ii) the
Conversion Rate (as such term is used in the Indenture), then, effective at
such time, the Maximum Number of Shares shall be reduced by such excess.

 

“Reference Property”
has the meaning set forth in the definition of “Maximum Number of Shares”
above.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Securities Intermediary”
means a “securities intermediary” as defined by Section 8-102(a)(14) of
the UCC.

 

“UCC” means the
Uniform Commercial Code, as in effect in the State of New York, as in effect
from time to time.  Any reference to
particular sections of the UCC shall be deemed to embrace successor renumbered
provisions thereof.

 

SECTION 2.  Loans of Shares; Transfers of Loaned Shares.

 

(a)           Subject
to the terms and conditions of this Agreement, Lender hereby agrees to make
available for borrowing by Borrower, at any time and from time to time, during
the Loan Availability Period, shares of Common Stock up to, in the aggregate,
the Maximum Number of Shares.

 

(b)           Subject
to the terms and conditions of this Agreement, Borrower may by written notice
to Lender during the Loan Availability Period (a “Borrowing
Notice”), seek to initiate a transaction in which Lender will lend
Loaned Shares to Borrower through the issuance by Lender of such Loaned Shares
to Borrower upon the terms, and subject to the conditions, set forth in this
Agreement (each such issuance and loan, a “Loan”).  Each Loan shall be 

 

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confirmed by a schedule and
receipt listing the Loaned Shares provided by Lender to Borrower (the “Confirmation”).  Such
Confirmation shall constitute conclusive evidence with respect to the Loan,
including the number of shares of Common Stock that are the subject of the Loan
to which the Confirmation relates, unless a written objection to the
Confirmation specifying the reasons for the objection is received by Lender
from Borrower within five Business Days after the receipt of the Confirmation
to Borrower; provided that in no event shall the
delivery of the Confirmation or any such objection thereto delay the transfer
of Loaned Shares to which a Borrowing Notice relates pursuant to clause (d) below.

 

(c)           Notwithstanding
anything to the contrary in this Agreement, Borrower shall not be permitted to
borrow or have any right to take delivery of, or otherwise receive or be deemed
to have received, any shares of Common Stock hereunder to the extent (but only
to the extent) that after such receipt of such Common Stock (i) the “beneficial
ownership” (within the meaning of Section 13 (d) of the Exchange Act and
the rules and regulations promulgated thereunder) of Common Stock by
Borrower or any affiliate of Borrower subject to aggregation with Borrower
under such Section 13(d) and such rules would exceed 9.9%, as
determined by Borrower in its sole discretion, or (ii) Borrower would be
subject to Section 16(b) of the Exchange Act, as determined by
Borrower in its sole discretion, and any Loan hereunder shall be void and have
no effect to the extent (but only to the extent) that such “beneficial
ownership” would be in excess of 9.9% or Borrower would become subject to Section 16(b) of
the Exchange Act.  If any delivery owed
to Borrower hereunder is not made, in whole or in part, as a result of this
provision, Lender’s obligation to make such delivery shall not be extinguished
and Lender shall make such delivery as promptly as practicable after, but in no
event later than one Business Day after, Borrower gives notice to Lender that
such delivery would not result in such “beneficial ownership” being in excess
of 9.9% or Borrower’s becoming subject to Section 16(b) of the
Exchange Act.  If, notwithstanding the
foregoing, any delivery of Common Stock is erroneously made to Borrower or
Borrower otherwise receives or is deemed to have received Common Stock in
excess of the foregoing limitation contrary to the first sentence of this
clause (c), such Common Stock shall remain the property of Lender and Borrower
shall be deemed to hold the same as bailee of Lender and shall have no voting,
dispositive control or pecuniary interest with respect thereto.

 

(d)           Lender
shall transfer Loaned Shares to Borrower on or before the Cutoff Time on the
date specified in the Borrowing Notice for the commencement of a Loan, which
date shall not be earlier than the third Business Day following receipt by
Lender of the Borrowing Notice.  Delivery
of the Loaned Shares to Borrower shall be made in the manner set forth under Section 11
below.

 

SECTION 3.  Loan Fee. 
Borrower agrees to pay Lender a single loan fee per Loan (a “Loan Fee”) equal to $0.0001 per Loaned Share.  The Loan Fee shall be paid by Borrower on or
before the time of transfer of the Loaned Shares pursuant to Section 2 (d) on a
delivery-versus-payment basis through the facilities 

 

5

 

of the Clearing Organization. Lender agrees that the
Loan Fee will constitute consideration for the issuance of the Loaned Shares to
be issued by Lender.

 

SECTION 4.  Loan Terminations.

 

(a)           Borrower
may terminate all or any portion of a Loan on any Business Day by giving
written notice thereof to Lender and transferring the corresponding number of
Loaned Shares to Lender, without any consideration being payable in respect
thereof by Lender to Borrower.

 

(b)           All
outstanding Loans, if any, shall terminate on the date this Agreement
terminates pursuant to Section 13 (the “Facility
Termination Date”) and all Loaned Shares under outstanding Loans
shall be delivered by Borrower to Lender, without any consideration being
payable in respect thereof by Lender to Borrower, no later than the fifth
Business Day following the Facility Termination Date.

 

(c)           Subject
to Section 4(d), if on any date, the aggregate number of Loaned Shares
under outstanding Loans exceeds the Maximum Number of Shares, the number of
Loaned Shares in excess of the Maximum Number of Shares shall be delivered by
Borrower to Lender, without any consideration being payable in respect thereof
by Lender to Borrower.

 

(d)           If,
pursuant to a merger, consolidation, other business combination,
reorganization, reclassification, recapitalization or other corporate action
(including, without limitation, a reorganization in bankruptcy), the Common
Stock is exchanged for, or converted into, Reference Property, then:

 

(i)    if
such Reference Property consists entirely of cash, all outstanding Loans shall
terminate on the date of effectiveness of any such exchange or conversion and
Borrower shall, on or prior to the fifth Business Day following such effective
date, pay, in full satisfaction of any obligation to return Loaned Shares
hereunder, cash in an amount equal to the product of (A) the number of
Loaned Shares outstanding immediately prior to such effective date and (B) the
amount of cash per share of Common Stock received by holders of Common Stock in
such event; and

 

(ii)   if
such Reference Property consists of cash and securities or other property, (A) no
outstanding Loans shall terminate as a result of any such event, (B) the
amount of Loaned Shares and Maximum Number of Shares shall be adjusted as set
forth in their respective definitions, and (C) Borrower shall, on the
fifth Business Day following the effective date of any such exchange or
conversion, pay cash in an amount equal to the product of (1) the number
of Loaned Shares outstanding immediately prior to such effective date (without,
for the avoidance of doubt, giving effect to any adjustment) and (2) the
amount of cash per share of Common Stock received by holders of Common Stock in
such event.

 

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(e)           If,
as a result of complying with this Section 4 as promptly as reasonably
practicable (but subject to applicable law, regulation or policy), (i) the
“beneficial ownership” (within the meaning of Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder) of
Common Stock by Borrower or any affiliate of Borrower subject to aggregation
with Borrower under such Section 13(d) and such rules would
exceed 9.9%, as determined by Borrower in its sole discretion, or (ii) Borrower
would be subject to Section 16(b) of the Exchange Act, as determined
by Borrower in its sole discretion, then Borrower shall be permitted to extend
the date on which Loaned Shares are due under this Section 4 for all or a
portion of the corresponding delivery obligation but in no event longer than
such time to allow Borrower to return such Loaned Shares, through one
transaction or a series of transactions, without causing such “beneficial
ownership” to be in excess of 9.9% or Borrower to become subject to Section 16(b) of
the Exchange Act, as determined by Borrower in its sole discretion.  In addition, if Borrower is unable to satisfy
its obligations to deliver any Common Stock under this Section 4 due to
illiquidity in the market for Common Stock, Borrower shall, upon prior written
notice to Lender, deliver such Common Stock as promptly as reasonably
practicable thereafter.

 

SECTION 5.  Distributions.

 

(a)           If
Lender pays a cash dividend or makes a cash distribution in respect of all of
its outstanding Common Stock, Borrower shall pay to Lender, within one Business
Day after the payment of such dividend or distribution, an amount in cash equal
to the product of (i) the amount per share of such dividend or
distribution and (ii) the aggregate number of Loaned Shares under
outstanding Loans as of the record date of such dividend or distribution.

 

(b)           If
Lender makes a distribution in respect of all of its outstanding Common Stock
in property or securities, including any options, warrants, rights or
privileges in respect of securities (other than a distribution of Common Stock
as to which the number of Loaned Shares shall be adjusted pursuant to the
definition of “Loaned Shares,” but including any options, warrants, rights or
privileges exercisable for, convertible into or exchangeable for Common Stock)
(a “Non-Cash Distribution”), then (i) Non-Cash
Distributions shall be treated as additional Loans of such Non-Cash
Distribution in an amount equal to the product of (x) the amount per share
of Common Stock of such Non-Cash Distribution and (y) the aggregate number
of Loaned Shares under outstanding Loans as of the record date of such dividend
or distribution, and (ii) the definition of “Loaned Share” shall be deemed
to be modified to include the per share of Common Stock kind and amount of such
Non-Cash Distribution.

 

SECTION 6.  Rights in Respect of Loaned Shares.

 

Subject to the terms of this Agreement, and except
as otherwise agreed by Borrower and Lender, Borrower, insofar as it is the
record owner of Loaned Shares, shall have all of the incidents of ownership in
respect of any such Loaned 

 

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Shares until such Loaned Shares are required
to be delivered to Lender in accordance with the terms of this Agreement,
including the right to transfer the Loaned Shares to others. Borrower agrees
that it or any of its affiliates that are the record owner of any Loaned Shares
initially transferred to Borrower from Lender as a Loan hereunder, prior to any
sale thereof under a registration statement by Borrower, will not vote or
provide any consent or take any similar action with respect to such Loaned
Shares on any matter submitted to a vote of Lender’s stockholders during the
term of the Loan; provided, however that, for the
avoidance of doubt, this sentence shall only apply to Loaned Shares transferred
to Borrower that have not been offered and sold in a registered public offering
in accordance with the terms of the Underwriting Agreement dated as of the date
hereof among Borrower, Lender and Borrowing Agent or returned to Lender in
accordance with the terms of this Agreement.

 

SECTION 7.  Representations and Warranties.

 

(a)           Each
of Borrower and Lender represents and warrants to the other that:

 

(i)    it
has full power to execute and deliver this Agreement, to enter into the Loans
contemplated hereby and to perform its obligations hereunder;

 

(ii)   it
has taken all necessary action to authorize such execution, delivery and
performance;

 

(iii)  this
Agreement constitutes its legal, valid and binding obligation enforceable
against it in accordance with its terms;

 

(iv)  the
execution, delivery and performance of this Agreement does not and will not
violate, contravene, or constitute a default under, (A) its certificate of
incorporation, bylaws or other governing documents, (B) any laws, rules or
regulations of any governmental authority to which it is subject, (C) any
contracts, agreements or instrument to which it is a party or (D) any
judgment, injunction, order or decree by which it is bound, except, in the case
of each of clauses (C) and (D), for any such violation, contravention or
default that would not reasonably be expected to have a material adverse effect
on the financial condition, business, properties or results of operations of
Lender and its subsidiaries, or Borrower and its affiliates, as applicable,
taken as a whole; provided that any violation,
contravention or default that would impact the performance of any party’s
obligations under this Agreement shall be deemed to have a material adverse
effect on the financial condition, business, properties or results of
operations of such party and not qualify for the exception to clauses (C) and
(D) described above; and

 

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(v)   this
Agreement is not unsuitable for it in the light of such party’s financial
situation, investment objectives and needs and 
it is entering into this Agreement in reliance upon such tax,
accounting, regulatory, legal and financial advice as it deems necessary and
not upon any view expressed by the other or the Borrowing Agent.

 

(b)           Lender
represents and warrants to Borrower, as of the date hereof, and as of the date
any Loaned Shares are transferred to Borrower in respect of any Loan hereunder,
that the Loaned Shares and all other outstanding shares of Common Stock of
Lender have been duly authorized and, upon the issuance and delivery of the
Loaned Shares to Borrower in accordance with the terms and conditions hereof,
and subject to the contemporaneous or prior receipt of the applicable Loan Fee
by Lender, the Loaned Shares will be duly authorized, validly issued, fully
paid non-assessable shares of Common Stock; and the stockholders of Lender have
no preemptive rights with respect to the Loaned Shares.

 

(c)           Lender
represents and warrants to Borrower, as of the date hereof, and as of the date
any Loaned Shares are transferred to Borrower in respect of any Loan hereunder,
that the outstanding shares of Common Stock are listed on The NASDAQ Global
Select Market (the “NASDAQ”) and
the Loaned Shares have been approved for listing on the NASDAQ, subject to
official notice of issuance.

 

(d)           Lender
represents and warrants to Borrower, as of the date hereof, and as of the date
any Loaned Shares are transferred to Borrower in respect of any Loan hereunder,
that Lender is not “insolvent” (as such term is defined under Section 101 (32) of Title 11 of the
United States Code (the “Bankruptcy Code”)
and any applicable state law) and Lender would be able to purchase the Maximum
Number of Shares in compliance with the laws of Lender’s jurisdiction of
organization.

 

(e)           The
representations and warranties of Borrower and Lender under this Section 7
shall remain in full force and effect at all times during the term of this Agreement
and shall survive the termination of this Agreement for any reason.

 

SECTION 8.  Covenants.

 

(a)           Borrower
covenants and agrees with Lender that it will not transfer or dispose of any
Loaned Shares transferred to Borrower by Lender as a Loan hereunder of which it
is the record owner except pursuant to a registration statement that is
effective under the Securities Act; provided that
Borrower may transfer any such Loaned Shares to any of its affiliates without a
registration statement so long as such affiliate transferee does not transfer
or dispose of such Loaned Shares to any non-affiliated transferee except
pursuant to a registration statement that is effective under the Securities
Act.

 

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(b)           Lender
agrees and acknowledges that Borrower has represented to Lender that Borrower
is a “financial institution” within the meaning of Section 101(22) of the
Bankruptcy Code.  The parties hereto
further agree and acknowledge (A) that this Agreement is intended to
be  a “securities contract,” as such term
is defined in Section 741(7) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder is a “settlement payment,” or “margin
payment,” as such terms are defined in Section 741 (8) and Section 741(5) of
the Bankruptcy Code, and  a “swap
agreement,” as such term is defined in Section 101 (53B) of the Bankruptcy
Code, with respect to which each payment and delivery hereunder is a “transfer,”
as such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that
Borrower is intended to be entitled to the protections afforded by, among other
sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the
Bankruptcy Code.

 

(c)           Lender
covenants and agrees that, on any day on which Lender effects any repurchase of
shares of Common Stock, Lender shall give Borrower a written notice of the
number of its outstanding shares of Common Stock (a “Repurchase
Notice”) if, following such repurchase, the number of outstanding
shares of Common Stock shall have decreased by more than 1.0% since the
immediately preceding Repurchase Notice (or, in the case of the first such
Repurchase Notice, the number of outstanding shares of Common Stock as of the
date hereof); provided that, as of any date,
for purposes of calculating the number of outstanding shares of Common Stock as
of the date of the immediately preceding Repurchase Notice, such number shall
be adjusted as set forth in clauses (a) and (b) of the definition of “Maximum
Number of Shares” above, to the same extent the number of shares of Common
Stock are adjusted therein, and only to the extent that any of the events
listed in such clauses (a) and (b) have occurred between the date of
the immediately preceding Repurchase Notice and such date.

 

(d)           Lender
covenants and agrees that, unless otherwise agreed to by Borrower in writing,
Lender shall not, nor shall cause any other person to, directly or indirectly,
purchase shares of Common Stock such that, after giving effect to such
purchase, the aggregate number of Loaned Shares under outstanding Loans shall
be in excess of 25% of the number of outstanding shares of Common Stock at such
time.

 

(e)           Lender
covenants and agrees that, on the date hereof, Lender shall provide to Borrower
a properly executed Internal Revenue Service Form W-9.

 

SECTION 9.  Events of Default.

 

(a)           All
Loans, and any further obligation to make Loans under this Agreement, may, at
the option of Lender by a written notice to Borrower (which option shall be
deemed exercised, even if no notice is given, immediately upon the occurrence
of an event specified in either Section 9(a)(iii) or Section 9(a)(iv) below),
be terminated (i) immediately upon the occurrence of any of the events 

 

10

 

set forth in Section 9(a)(iii) or
Section 9(a)(iv) below and (ii) two Business Days following such
notice upon the occurrence of any of the other events set forth below, (each, a
“Borrower Default”):

 

(i)       Borrower
fails to deliver Loaned Shares to Lender as required by Section 4;

 

(ii)      Borrower
fails to deliver or pay to Lender when due any cash, securities or other
property as required by Section 5;

 

(iii)     the
filing by or on behalf of Borrower of a voluntary petition or an answer seeking
reorganization, arrangement, readjustment of its debts or for any other relief
under any bankruptcy, reorganization, compromise, arrangement, insolvency,
readjustment of debt, dissolution, winding-up or liquidation or similar act or
law, of any state, federal or other applicable foreign jurisdictions, now or
hereafter existing (“Bankruptcy Law”),
or any action by Borrower for, or consent or acquiescence to, the appointment
of a receiver trustee, custodian or similar official of Borrower, or of all or
a substantial part of its property; or the making by Borrower of a general
assignment for the benefit of creditors; or the admission by Borrower in
writing of its inability to pay its debts as they become due;

 

(iv)     the
filing of any involuntary petition against Borrower in bankruptcy or seeking
reorganization, arrangement, readjustment of its debts or for any other relief
under any Bankruptcy Law and an order for relief by a court having jurisdiction
in the premises shall have been issued or entered therein; or any other similar
relief shall be granted under any applicable federal or state law or law of any
other applicable foreign jurisdictions; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver, liquidator,
sequestrator, trustee or other officer having similar powers over Borrower or
over all or a part of its property shall have been entered; or the involuntary
appointment of an interim receiver, trustee or other custodian of Borrower or
of all or a substantial part of its property; or the issuance of a warrant of
attachment, execution or similar process against any substantial part of the
property of Borrower; and continuance of any such event for 15 consecutive
calendar days unless dismissed, bonded to the satisfaction of the court having
jurisdiction in the premises or discharged;

 

(v)      Borrower
fails to provide any indemnity as required by Section 12;

 

(vi)     Borrower
notifies Lender of its inability to or intention not to perform Borrower’s
obligations hereunder or otherwise disaffirms, rejects or repudiates any of its
obligations hereunder; or

 

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(vii)    any
representation made by Borrower under this Agreement in connection with any
Loan or Loans hereunder shall be incorrect or untrue in any material respect
during the term of any Loan hereunder or Borrower fails to comply in any
material respect with any of its covenants under this Agreement.

 

(b)        All Loans, and any further obligation to make Loans under
this Agreement, may, at the option of Borrower by a written notice to Lender,
be terminated two Business Days following such notice by Borrower upon the
occurrence of any of the events set forth below (each, a “Lender
Default,” and any Lender Default or Borrower Default, a “Default”):

 

(i)    the filing by or on behalf
of Lender of a voluntary petition or an answer seeking reorganization,
arrangement, readjustment of its debts or for any other relief under any
Bankruptcy Law, or any action by Lender for, or consent or acquiescence to, the
appointment of a receiver, trustee, custodian or similar official of Lender, or
of all or a substantial part of its property; or the making by Lender of a
general assignment for the benefit of creditors; or the admission by Lender in
writing of its inability to pay its debts as they become due; or

 

(ii)    the
filing of any involuntary petition against Lender in bankruptcy or seeking
reorganization, arrangement, readjustment of its debts or for any other relief
under any Bankruptcy Law and an order for relief by a court having jurisdiction
in the premises shall have been issued or entered therein; or any other similar
relief shall be granted under any applicable federal or state law or law of any
other applicable foreign jurisdictions; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver, liquidator,
sequestrator, trustee or other officer having similar powers over Lender or
over all or a part of its property shall have been entered; or the involuntary
appointment of an interim receiver, trustee or other custodian of Lender or of
all or a substantial part of its property; or the issuance of a warrant of
attachment, execution or similar process against any substantial part of the
property of Lender; and continuance of any such event for 45 consecutive
calendar days unless dismissed, bonded to the satisfaction of the court having
jurisdiction in the premises or discharged.

 

SECTION 10.  Lender’s Remedies.

 

(a)        Notwithstanding anything to the contrary herein, if Borrower
is required to return Loaned Shares pursuant to Section 4 and, on the date
on which Borrower is required to return Loaned Shares pursuant to Section 4,
the purchase of Common Stock by Borrower in an amount equal to all or any
portion of the number of Loaned Shares to be delivered to Lender shall (1) be
prohibited by any law, rules or regulation of any governmental authority
to which it is or would be subject, (2) violate, or would upon such
purchase likely violate, any order or 

 

12

 

prohibition of any court, tribunal or other governmental authority, (3)
require the prior consent of any court, tribunal or governmental authority
prior to any such repurchase or (4) subject Borrower, in the commercially
reasonable judgment of Borrower, to any liability or potential liability under
any applicable federal securities laws (other than Section 11 and Section 16(b)
of the Exchange Act or illiquidity in the market for Common Stock, in which
events Section 4(e) hereof shall govern) (each of (i), (ii), (iii) and (iv), a
“Legal Obstacle”), then, in each case,
Borrower shall immediately notify Lender of the Legal Obstacle and the basis
therefor, whereupon Borrower’s obligation to deliver Loaned Shares to Lender
shall be suspended until such time as no Legal Obstacle with respect to such
obligations shall exist (a “Repayment Suspension”).  Following the occurrence of and during the
continuation of any Repayment Suspension, Borrower shall use its reasonable
best efforts to remove or cure the Legal Obstacle as soon as practicable; provided that, Lender shall promptly reimburse all costs and
expenses (including legal counsel to Borrower) incurred or, at Borrower’s
election, provide reasonably adequate surety or guarantee for any such costs
and expenses that may be incurred by Borrower, in each case in removing or
curing such Legal Obstacle.  If Borrower
is unable to remove or cure the Legal Obstacle within a reasonable period of
time under the circumstances, Borrower shall pay to Lender, in lieu of the
delivery of Loaned Shares otherwise required to be delivered, an amount in
immediately available funds (the “Replacement Cash”)
equal to the product of the Closing Price as of the Business Day immediately
preceding the date Borrower makes such payment and the number of Loaned Shares
otherwise required to be delivered.

 

(b)        If Borrower shall fail to deliver Loaned Shares to Lender on
the due date when any Loan is terminated under Section 4 or Borrower shall
fail to pay the Replacement Cash to Lender in accordance with Section 10(a) above
(to the extent Borrower is permitted and elects to pay Replacement Cash), then,
in either case, in addition to any other remedies available to Lender under
this Agreement or under applicable law, Lender shall have the right (without
further notice to Borrower) to purchase a like number of shares of Common Stock
(and, Non-Cash Distributions, if applicable pursuant to Section 5(b)) (“Replacement Shares”) in the principal market for such
securities in a commercially reasonable manner (and Lender shall promptly
notify Borrower of the aggregate purchase price of the Replacement Shares upon
the exercise of such right); provided that
Lender shall not be permitted to exercise its right to purchase Replacement
Shares if Borrower is delivering Loaned Shares to Lender in accordance with Section 4(e),
and provided further that if any Repayment
Suspension or failure to deliver shall exist and be continuing, Lender shall
not be permitted to exercise its right to purchase Replacement Shares unless
Borrower shall fail to deliver the Loaned Shares or pay the Replacement Cash to
Lender in accordance with Section 10(a) above.  To the extent Lender shall exercise such
right, Borrower’s obligation to return a like amount of Loaned Shares or to pay
the Replacement Cash, as applicable, shall terminate and Borrower shall be
liable to Lender for the purchase price of such Replacement Shares (plus all
other amounts, if any, due to Lender hereunder).  

 

13

 

The purchase price of
Replacement Shares purchased under this Section 10 shall include broker’s
fees and commissions and all other reasonable costs, fees and expenses related
to such purchase and sale.  If Lender
exercises its rights under this Section 10, Lender may elect in its sole
discretion, in lieu of purchasing all or a portion of the Replacement Shares,
to be deemed to have made such purchase of Replacement Shares for an amount
equal to the Closing Price of the Common Stock on the date Lender elects to
exercise this remedy.  The parties hereby
agree that repurchase of the Replacement Shares in a manner intended to allow
Lender to avail itself of the safe harbor provided by Rule 10b-18 under
the Exchange Act shall be considered commercially reasonable.

 

SECTION 11.  Transfers.

 

(a)        All transfers of Loaned Shares to Borrower hereunder shall be
made by the crediting by a Clearing Organization of such financial assets to
Borrower’s “securities account” (within the meaning of Section 8-501 of
the UCC) maintained with such Clearing Organization.  All transfers of Loaned Shares to Lender
hereunder shall be made by the crediting of such Loaned Shares to Lender’s
Designated Account (whereupon, for the avoidance of doubt, such Loaned Shares
credited to Lender’s Designated Account shall become the property of Lender,
and Borrower shall have no voting, dispositive control or pecuniary interest
with respect thereto).  In every transfer
of “financial assets” (within the meaning of Section 8-102(a)(9) of
the UCC) hereunder, the transferor shall take all steps necessary (i) to
effect a delivery of such financial assets to the transferee under Section 8-301
of the UCC, or to cause the creation of a security entitlement in favor of the
transferee in such financial assets under Section 8-501 of the UCC, (ii) to
enable the transferee to obtain “control” (within the meaning of Section 8-106
of the UCC), and (iii) to provide the transferee with comparable rights
under any similar law or regulation of any other jurisdiction that is
applicable to such transfer.

 

(b)        Except as otherwise provided herein, all transfers of cash
hereunder to Borrower or Lender shall be by wire transfer in immediately
available, freely transferable funds.

 

(c)        A transfer of securities or cash may be effected under this Section 11
on any Business Day except (i) a Business Day on which the transferee is
closed for business at its address set forth in Section 16 or (ii) a
Business Day on which a Clearing Organization or wire transfer system is
closed, if the facilities of such Clearing Organization or wire transfer system
are required to effect such transfer. 
Any transfer not effected because of this clause (c) shall be made
on the next following Business Day on which such transfer may be made.

 

SECTION 12.  Indemnities.

 

(a)        Lender hereby agrees to indemnify and hold harmless Borrower
and its affiliates and its former, present and future directors, officers,
employees and 

 

14

 

other agents and
representatives from and against any and all liabilities, judgments, claims,
settlements, losses, damages, fees, liens, taxes, penalties, obligations and
expenses (including, without limitation, any losses relating to Borrower’s
market activities as a consequence of becoming, or of the risk of becoming,
subject to Section 16(b) of the Exchange Act, including, without
limitation, any forbearance from market activities or cessation of market
activities and any losses in connection therewith) incurred or suffered by any
such person or entity directly or indirectly arising from, by reason of, or in
connection with, (i) any breach by Lender of any of its representations or
warranties contained in Section 7 or (ii) any breach by Lender of any
of its covenants or agreements in this Agreement.

 

(b)        Borrower hereby agrees to indemnify and hold harmless Lender
and its affiliates and its former, present and future directors, officers,
employees and other agents and representatives from and against any and all
liabilities, judgments, claims, settlements, losses, damages, fees, liens,
taxes, penalties, obligations and expenses incurred or suffered by any such
person or entity directly or indirectly arising from, by reason of, or in
connection with (i) any breach by Borrower of any of its representations
or warranties contained in Section 7 or (ii) any breach by Borrower
of any of its covenants or agreements in this Agreement.

 

(c)        In case any claim or litigation which might give rise to any
obligation of a party under this Section 12 (each an “Indemnifying
Party”) shall come to the attention of the party seeking
indemnification hereunder (the “Indemnified Party”),
the Indemnified Party shall promptly notify the Indemnifying Party in writing
of the existence and amount thereof; provided that
the failure of the Indemnified Party to give such notice shall not adversely
affect the right of the Indemnified Party to indemnification under this
Agreement, except to the extent the Indemnifying Party is materially prejudiced
thereby.  The Indemnifying Party shall
promptly notify the Indemnified Party in writing if it accepts such claim or litigation
as being within its indemnification obligations under this Section 12.  Such response shall be delivered no later
than 30 days after the initial notification from the Indemnified Party; provided that, if the Indemnifying Party reasonably cannot respond
to such notice within 30 days, the Indemnifying Party shall respond to the
Indemnified Party as soon thereafter as reasonably possible.

 

(d)        An Indemnifying Party shall be entitled to participate in
and, if (i) in the judgment of the Indemnified Party such claim can
properly be resolved by money damages alone and the Indemnifying Party has the
financial resources to pay such damages and (ii) the Indemnifying Party
admits that this indemnity fully covers the claim or litigation, the
Indemnifying Party shall be entitled to direct the defense of any claim at its
expense, but such defense shall be conducted by legal counsel reasonably
satisfactory to the Indemnified Party. 
An Indemnified Party shall not make any settlement of any claim or
litigation under this Section 12 without the written consent of the
Indemnifying Party.

 

15

 

SECTION 13.  Termination of Agreement.

 

(a)        This Agreement shall terminate upon the earliest of (i) the
date as of which Lender has notified Borrower in writing of its intention to
terminate this Agreement at any time after the entire principal amount of
Convertible Notes ceases to be outstanding and Lender has settled all payments
or deliveries in respect of such Convertible Notes (as such settlement may be
extended pursuant to market disruption events or otherwise pursuant to the
Indenture), whether as a result of conversion, redemption, repurchase, cancellation,
at maturity or otherwise, (ii) the written agreement of Lender and Borrower
to so terminate, (iii) the termination of the underwriting agreement
relating to the Convertible Notes without issuance of the Convertible Notes or
the failure of the initial offering of the Convertible Notes to close, in each
case pursuant to the terms of such underwriting agreement and the Indenture, (iv) the
occurrence of a Borrower Default, at the option of Lender, as set forth in Section 9(a) and
(v) the occurrence of a Lender Default, at the option of Borrower, as set
forth in Section 9(b).

 

(b)        Unless otherwise agreed in writing by Borrower and Lender,
the provisions of Section 12 shall survive the termination of this
Agreement.

 

SECTION 14.  Delegation.

 

Neither party shall delegate its obligations under this Agreement
without the prior written consent of the other party, and any attempt to
delegate obligations arising under this Agreement without such consent shall be
void; provided that notwithstanding the
foregoing and anything to the contrary herein, Borrower may designate any
person to deliver Loaned Shares to Lender when due in accordance with this
Agreement and to otherwise perform Borrower’s obligations in respect of this
Agreement and any such designee may assume such obligations.  Borrower shall only be discharged of its
obligations to Lender to the extent of any such delivery or performance.

 

SECTION 15.  Transfer and Assignment.

 

Neither party shall transfer or assign its rights or
obligations under this Agreement without the prior written consent of the other
party, and any attempt to transfer or assign any rights or obligations arising
under this Agreement without such consent shall be void; provided
that notwithstanding the foregoing and anything to the contrary herein,
Borrower shall have the right to assign its rights and obligations under this
Agreement to any of its affiliates and be released from all of its obligations
under this Agreement so long as the guarantee executed and delivered by
Guarantor in accordance with Section 19 (or a replacement guarantee in
substantially the same form) shall remain in full force and effect.

 

16

 

SECTION 16.  Notices.

 

(a)        All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given when received.

 

(b)        All such notices and other communications shall be directed
to the following address:

 

(i)                                   If to Borrower
or Borrowing Agent to:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

4 World Financial Center

New York, NY 10080

 

(ii)                                If to
Securities Intermediary to:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

4 World Financial Center

New York, NY 10080

 

(iii)                            Globalstar, Inc.

461 South Milpitas Blvd.

Milpitas, California 95035

Attention:  Chief Financial Officer

Facsimile:  408-933-4949

 

(c)        In the case of any party, at such other address as may be
designated by written notice to the other parties.

 

SECTION 17.  Governing Law; Submission To Jurisdiction;
Severability.

 

(a)        This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, but excluding any choice of
law provisions that would require the application of the laws of a jurisdiction
other than New York.

 

(b)        EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS
TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK
STATE COURT SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY SUCH
COURT, SOLELY FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT TO
ENFORCE ITS OBLIGATIONS HEREUNDER OR RELATING IN ANY WAY TO THIS AGREEMENT OR
ANY LOAN HEREUNDER AND (B) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO, ANY DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT AND ANY RIGHT OF JURISDICTION ON ACCOUNT OF ITS
PLACE OF RESIDENCE OR DOMICILE.

 

17

 

(c)        EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT IT
MAY HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

(d)        To the extent permitted by law, the unenforceability or
invalidity of any provision or provisions of this Agreement shall not render
any other provision or provisions herein contained unenforceable or invalid.

 

SECTION 18.  Counterparts. 
This Agreement may be executed in any number of counterparts, and all
such counterparts taken together shall be deemed to constitute one and the same
agreement.

 

SECTION 19.  Parent Guarantee.

 

On or prior to the date of the transfer of Loaned
Shares to Borrower in a Loan pursuant to this Agreement, Merrill Lynch &
Co., Inc., a Delaware corporation, will execute a parent guarantee in
favor of Lender substantially in the form of Annex A hereto.

 

SECTION 20.  Amendments.

 

No amendment or modification in respect of this
Agreement shall be effective unless it shall be in writing and signed by the
parties hereto.

 

SECTION 21.  Capacity of Borrowing Agent.

 

Borrowing Agent is acting in connection with this
Agreement solely in its capacity as Borrowing Agent for Lender and Borrower
pursuant to instructions from Borrower and Lender.  Borrowing Agent shall have no responsibility
or personal liability to Lender or Borrower arising from any failure by Lender
or Borrower to pay or perform any obligations hereunder, or to monitor or
enforce compliance by Lender or Borrower with any obligation hereunder.  Each of Lender and Borrower agrees to proceed
solely against the other to collect or recover any securities or monies owing
to it in connection with or as a result of this Agreement.  Borrowing Agent shall otherwise have no
liability in respect of this Agreement, except for its gross negligence or
willful misconduct in performing its duties as Borrowing Agent.

 

18

 

IN WITNESS WHEREOF, the parties hereto have executed
this Share Lending Agreement as of the date and year first above written.

 

 

	
  GLOBALSTAR, INC.

   

  as Lender

  	
   

  	
  MERRILL LYNCH

  INTERNATIONAL

  as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ FUAD AHMAD

  	
   

  	
  By:

  	
  /s/ RAJEEV PATEL

  
	
   

  	
  Name:

  	
  Fuad Ahmad

  	
   

  	
   

  	
  Name:

  	
  Rajeev Patel

  
	
   

  	
  Title:

  	
  Vice President and 

  	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
  Chief Financial

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Officer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  MERRILL LYNCH, PIERCE,

  
	
   

  	
   

  	
   

  	
   

  	
  FENNER & SMITH 

  
	
   

  	
   

  	
   

  	
   

  	
  INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  	
  as Borrowing Agent

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ ROBERT GENKINGER

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Robert Genkinger

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Director

  
								

 

19

 

ANNEX A

 

Form of Parent’s Guarantee

 

GUARANTEE OF MERRILL LYNCH & CO., INC.

 

FOR VALUE RECEIVED, receipt of which is hereby
acknowledged, MERRILL LYNCH & CO., INC., a corporation duly organized
and existing under the laws of the State of Delaware (“ML & Co.”),
hereby unconditionally guarantees to Globalstar, Inc. (the “Company”), the
due and punctual payment of any and all amounts payable by Merrill Lynch
International, a company organized under the laws of England and Wales  (“ML”), under the terms of the Share Lending
Agreement between the Company, as Lender, ML, as Borrower, and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, as Borrowing Agent, dated as of April 15,
2008 (the “Share Lending Agreement”), including, in case of default, interest
on any amount due, when and as the same shall become due and payable, whether
on the scheduled payment dates, at maturity, upon declaration of termination or
otherwise, according to the terms thereof. 
In case of the failure of ML punctually to make any such payment, ML  &
Co. hereby agrees to make such payment, or cause such payment to be made,
promptly upon demand made by the Company to ML & Co.; provided,
however that delay by the Company in giving such demand shall in no event
affect ML & Co.’s obligations under this Guarantee.  This Guarantee shall remain in full force and
effect or shall be reinstated (as the case may be) if at any time any payment
guaranteed hereunder, in whole or in part, is rescinded or must otherwise be
returned by the Company upon the insolvency, bankruptcy or reorganization of ML
or otherwise, all as though such payment had not been made.

 

ML & Co. hereby agrees that its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Share Lending Agreement; the absence of any action to
enforce the same; any waiver or consent by the Company concerning any provisions
thereof; the rendering of any judgment against ML or any action to enforce the
same; or any other circumstances that might otherwise constitute a legal or
equitable discharge of a guarantor or a defense of a guarantor.  ML & Co. covenants that this guarantee
will not be discharged except by complete payment of the amounts payable under
the Share Lending Agreement.  This
Guarantee shall continue to be effective if ML merges or consolidates with or
into another entity, loses its separate legal identity or ceases to exist.

 

ML & Co. hereby waives diligence;
presentment; protest; notice of protest, acceleration, and dishonor; filing of
claims with a court in the event of insolvency or bankruptcy of ML; all demands
whatsoever, except as noted in the first paragraph hereof; and any right to
require a proceeding first against ML.

 

ML & Co. hereby certifies and warrants that
this Guarantee constitutes the valid obligation of ML & Co.  and complies with all applicable laws.

 

20

 

This Guarantee shall be governed by, and construed
in accordance with, the laws of the State of New York.

 

This Guarantee becomes effective concurrent with the
effectiveness of the Share Lending Agreement, according to its terms.

 

21

 

IN
WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in
its corporate name by its duly authorized representative.

 

	
   

  	
  MERRILL
  LYNCH & CO., INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

22Exhibit 4.1

 

Execution
Copy

 

VIRGIN MEDIA INC.

 

and

 

THE BANK OF NEW YORK,

 

as
Trustee

 

 

Indenture

 

Dated
as of April 16, 2008

 

 

6.50% Convertible Senior Notes due 2016

 

 

Certain Sections of this Indenture relating to Sections 310
through 318

 

of the Trust Indenture Act of 1939:

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  
	
  § 310(a)(1)

  	
   

  	
  6.09

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
  6.08

  
	
  § 311(a)

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
  6.13

  
	
  § 312(a)

  	
   

  	
  7.01

  
	
   

  	
   

  	
  7.02(a)

  
	
  (b)

  	
   

  	
  7.02(b)

  
	
  (c)

  	
   

  	
  7.02(c)

  
	
  § 313(a)

  	
   

  	
  7.03(a)

  
	
  (a)(4)

  	
   

  	
  7.03(a)

  
	
  (b)

  	
   

  	
  7.03(a)

  
	
  (c)

  	
   

  	
  7.03(a)

  
	
  (d)

  	
   

  	
  7.03(a)

  
	
  § 314(a)

  	
   

  	
  7.04

  
	
  (b)

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
  1.02

  
	
  (c)(2)

  	
   

  	
  1.02

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
  1.02

  
	
  § 315(a)

  	
   

  	
  6.01

  
	
  (b)

  	
   

  	
  6.02

  
	
  (c)

  	
   

  	
  6.01

  
	
  (d)

  	
   

  	
  6.01

  
	
   

  	
   

  	
  6.03

  
	
  (e)

  	
   

  	
  5.14

  
	
  § 316(a)

  	
   

  	
  5.12

  
	
  (a)(1)(A)

  	
   

  	
  5.02

  
	
   

  	
   

  	
  5.12

  
	
  (a)(1)(B)

  	
   

  	
  5.13

  
	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
  (b)

  	
   

  	
  5.08

  
	
  (c)

  	
   

  	
  1.04(c)

  
	
  § 317(a)(1)

  	
   

  	
  5.03

  
	
  (a)(2)

  	
   

  	
  5.04

  
	
  (b)

  	
   

  	
  10.03

  
	
  § 318(a)

  	
   

  	
  1.07

  

 

Note: This reconciliation
and tie shall not, for any purpose, be deemed to be a part of the Indenture.

 

 

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

	
  Section 1.01 . Definitions

  	
   

  	
  5

  
	
  Section 1.02 . Compliance Certificates and Opinions

  	
   

  	
  22

  
	
  Section 1.03 . Form of Documents Delivered to Trustee

  	
   

  	
  22

  
	
  Section 1.04 . Acts of Holders; Record Dates

  	
   

  	
  23

  
	
  Section 1.05 . Notices, Etc., to Trustee and Company

  	
   

  	
  24

  
	
  Section 1.06 . Notice to Holders; Waiver

  	
   

  	
  24

  
	
  Section 1.07 . Conflict With Trust Indenture Act

  	
   

  	
  25

  
	
  Section 1.08 . Effect of Headings and Table of Contents

  	
   

  	
  25

  
	
  Section 1.09 . Successors and Assigns

  	
   

  	
  25

  
	
  Section 1.10 . Separability Clause

  	
   

  	
  25

  
	
  Section 1.11 . Benefits of Indenture

  	
   

  	
  26

  
	
  Section 1.12 . Governing Law

  	
   

  	
  26

  
	
  Section 1.13 . Legal Holidays

  	
   

  	
  26

  
	
  Section 1.14 . Indenture and Securities Solely Corporate Obligations

  	
   

  	
  26

  
	
  Section 1.15 . Indenture May Be Executed in Counterparts

  	
   

  	
  26

  
	
  Section 1.16 . Acceptance of Trust

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
  SECURITY
  FORMS

  
	
   

  	
   

  	
   

  
	
  Section 2.01 . Forms Generally

  	
   

  	
  27

  
	
  Section 2.02 . Form of Face of Security

  	
   

  	
  27

  
	
  Section 2.03 . Form of Reverse of Security

  	
   

  	
  30

  
	
  Section 2.04 . Form of Legend for Global Securities

  	
   

  	
  34

  
	
  Section 2.05 . Form of Notice of Conversion

  	
   

  	
  34

  
	
  Section 2.06 . Form of Assignment

  	
   

  	
  35

  
	
  Section 2.07 . Form of Trustee’s Certificate of
  Authentication

  	
   

  	
  38

  
	
  Section 2.08 . Form of Fundamental Change Repurchase
  Notice

  	
   

  	
  38

  
	
  Section 2.09 . Legend on Restricted Securities

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
  THE
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 3.01 . Title and Terms; Principal and Interest

  	
   

  	
  39

  
	
  Section 3.02 . Denominations

  	
   

  	
  41

  
	
  Section 3.03 . Global Securities; Non-global Securities;
  Book-entry Provisions

  	
   

  	
  41

  
	
  Section 3.04 . Execution, Authentication, Delivery and Dating

  	
   

  	
  43

  
	
  Section 3.05 . Temporary Securities

  	
   

  	
  44

  
	
  Section 3.06 . Registrar, Registration of Transfer and
  Exchange; Paying Agent

  	
   

  	
  44

  

 

i

 

	
  Section 3.07 . Mutilated, Destroyed, Lost and Stolen Securities

  	
   

  	
  48

  
	
  Section 3.08 . Payment of Interest; Interest Rights Preserved

  	
   

  	
  49

  
	
  Section 3.09 . Persons Deemed Owners

  	
   

  	
  49

  
	
  Section 3.10 . Cancellation and Transfer Provisions

  	
   

  	
  50

  
	
  Section 3.11 . CUSIP Numbers

  	
   

  	
  52

  
	
  Section 3.12 . Computation of Interest

  	
   

  	
  52

  
	
  Section 3.13 . Special Record Date

  	
   

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  
	
  SATISFACTION
  AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 4.01 . Satisfaction and Discharge of Indenture

  	
   

  	
  53

  
	
  Section 4.02 . Application of Trust Money

  	
   

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 5.01
  . Events of Default

  	
   

  	
  55

  
	
  Section 5.02 . Acceleration of Maturity; Rescission and
  Annulmen.

  	
   

  	
  56

  
	
  Section 5.03 . Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
   

  	
  58

  
	
  Section 5.04 . Trustee May File Proofs of Claim

  	
   

  	
  59

  
	
  Section 5.05 . Trustee May Enforce Claims Without
  Possession of Securities

  	
   

  	
  59

  
	
  Section 5.06 . Application of Money Collected

  	
   

  	
  59

  
	
  Section 5.07 . Limitation on Suits

  	
   

  	
  60

  
	
  Section 5.08 . Unconditional Right of Holders to Receive Principal
  and Interest and to Convert

  	
   

  	
  61

  
	
  Section 5.09 . Restoration of Rights and Remedies

  	
   

  	
  61

  
	
  Section 5.10 . Rights and Remedies Cumulative

  	
   

  	
  61

  
	
  Section 5.11 . Delay or Omission Not Waiver

  	
   

  	
  61

  
	
  Section 5.12 . Control by Holders.

  	
   

  	
  62

  
	
  Section 5.13 . Waiver of Past Defaults

  	
   

  	
  62

  
	
  Section 5.14 . Undertaking for Costs

  	
   

  	
  63

  
	
  Section 5.15 . Waiver of Stay or Extension Laws

  	
   

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  
	
  THE
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 6.01 . Certain Duties and Responsibilities

  	
   

  	
  63

  
	
  Section 6.02 . Notice of Defaults

  	
   

  	
  64

  
	
  Section 6.03 . Certain Rights of Trustee

  	
   

  	
  64

  
	
  Section 6.04 . Not Responsible for Recitals or Issuance of
  Securities

  	
   

  	
  66

  
	
  Section 6.05 . May Hold Securities

  	
   

  	
  66

  
	
  Section 6.06 . Money Held in Trust

  	
   

  	
  66

  
	
  Section 6.07 . Compensation and Reimbursement

  	
   

  	
  66

  

 

ii

 

	
  Section 6.08 . Disqualification; Conflicting Interests

  	
   

  	
  67

  
	
  Section 6.09 . Corporate Trustee Required; Eligibility

  	
   

  	
  67

  
	
  Section 6.10 . Resignation and Removal; Appointment of
  Successor

  	
   

  	
  67

  
	
  Section 6.11 . Acceptance of Appointment by Successor

  	
   

  	
  69

  
	
  Section 6.12 . Merger, Conversion, Consolidation or Succession
  to Business

  	
   

  	
  69

  
	
  Section 6.13 . Preferential Collection of Claims Against
  Company

  	
   

  	
  69

  
	
  Section 6.14 . Appointment of Authenticating Agent

  	
   

  	
  70

  
	
  Section 6.15 . USA Patriot Act

  	
   

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  
	
  HOLDERS’
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  
	
   

  	
   

  	
   

  
	
  Section 7.01 . Company to Furnish Trustee Names and Addresses
  of Holders

  	
   

  	
  72

  
	
  Section 7.02 . Preservation of Information; Communications to
  Holders

  	
   

  	
  72

  
	
  Section 7.03 . Reports by Trustee

  	
   

  	
  72

  
	
  Section 7.04 . Reports by Company

  	
   

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  
	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  	
   

  
	
  Section 8.01 . Company May Consolidate, Etc., Only on
  Certain Terms

  	
   

  	
  73

  
	
  Section 8.02 . Successor Substituted

  	
   

  	
  74

  
	
  Section 8.03 . Additional Amounts Following a Transaction Involving
  a Non-U.S. Jurisdiction

  	
   

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  
	
  MODIFICATION
  AND AMENDMENT

  
	
   

  	
   

  	
   

  
	
  Section 9.01 . Supplemental Indentures Without Consent of
  Holders

  	
   

  	
  78

  
	
  Section 9.02 . Supplemental Indentures with Consent of Holders

  	
   

  	
  79

  
	
  Section 9.03 . Execution of Supplemental Indentures

  	
   

  	
  80

  
	
  Section 9.04 . Effect of Supplemental Indentures

  	
   

  	
  80

  
	
  Section 9.05 . Conformity with Trust Indenture Act

  	
   

  	
  81

  
	
  Section 9.06 . Reference in Securities to Supplemental
  Indentures

  	
   

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 10.01 . Payment of Principal and Interest

  	
   

  	
  81

  
	
  Section 10.02 . Maintenance of Office or Agency

  	
   

  	
  81

  
	
  Section 10.03 . Money for Security Payments to Be Held in Trust

  	
   

  	
  82

  
	
  Section 10.04 . Statement by Officers as to Default

  	
   

  	
  83

  
	
  Section 10.05 . Existence

  	
   

  	
  83

  
	
  Section 10.06 . Payment of Taxes

  	
   

  	
  83

  

 

iii

 

	
  Section 10.07 . Additional Interest Under the Registration
  Rights Agreement

  	
   

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  
	
  REPURCHASE
  AT OPTION OF THE HOLDER

  
	
   

  	
   

  	
   

  
	
  Section 11.01 . Repurchase at the Option of the Holder Upon a
  Fundamental Change

  	
   

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  
	
  CONVERSION
  OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 12.01 . Conversion Privilege and Conversion Rate

  	
   

  	
  88

  
	
  Section 12.02 . Exercise of Conversion Privilege; Settlement

  	
   

  	
  92

  
	
  Section 12.03 . Fractions of Shares

  	
   

  	
  96

  
	
  Section 12.04 . Adjustment of Conversion Rate

  	
   

  	
  97

  
	
  Section 12.05 . Notice of Adjustments of Conversion Rate

  	
   

  	
  104

  
	
  Section 12.06 . Company to Reserve Common Stock

  	
   

  	
  105

  
	
  Section 12.07 . Certain Covenants

  	
   

  	
  105

  
	
  Section 12.08 . 
  Cancellation of Converted Securities

  	
   

  	
  105

  
	
  Section 12.09 .  Provision
  in Case of Effect of Reclassification, Consolidation, Merger or Sale

  	
   

  	
  106

  
	
  Section 12.10 . 
  Responsibility of Trustee for Conversion Provisions

  	
   

  	
  108

  

 

Signatures

Schedule A

 

iv

 

INDENTURE, dated as of April 16,
2008, between Virgin Media Inc., a Delaware corporation (the “Company”), having its principal office at
909 Third Avenue, Suite 2863, New York, New York 10022 and The Bank of New
York, a New York banking corporation, as Trustee (herein called the “Trustee”).

 

Recitals of the Company

 

The Company has duly
authorized the creation of an issue of its 6.50% Convertible Senior Notes due
2016 (herein called the “Initial Securities”
and together with any Additional Securities, the “Securities”) of substantially the tenor and amount hereinafter
set forth, and to provide the terms and conditions upon which the Securities
are to be authenticated, issued and delivered, the Company has duly authorized
the execution and delivery of this Indenture.

 

All things necessary to make
the Securities, when executed by the Company and authenticated and delivered as
provided herein and duly issued by the Company, the valid obligations of the
Company, and to make this Indenture a valid agreement of the Company, in
accordance with their and its terms, have been done.

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

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

 

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Definitions.

 

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

 

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

 

(2) all other terms
used herein which are defined in the Trust Indenture Act, either directly or by
reference therein, have the meanings assigned to them therein;

 

(3) all accounting
terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and, except as
otherwise herein expressly provided, the term “generally accepted accounting
principles” in the United States with respect to any computation

 

 

required or permitted
hereunder shall mean such accounting principles as are generally accepted at
the date of this Indenture; and

 

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

 

“Act”, when used with respect to any Holder, has the meaning
specified in Section 1.04.

 

“Additional Amounts” has the meaning specified in Section 8.03.

 

“Additional Interest” means Additional Interest as defined in
the Registration Rights Agreement.

 

“Additional Securities” means an unlimited maximum aggregate
principal amount of Securities (other than the Initial Securities) issued under
this Indenture.

 

“Additional Shares” has the meaning specified in Section 12.01.

 

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

 

“Agent Member” means any member of, or participant in, the
Depositary.

 

“Applicable Law” has the meaning specified in Section 6.15.

 

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

 

“Attributable Debt” in respect of a Sale/Leaseback Transaction
means, as at the time of determination, the present value (discounted at the
interest rate reasonably determined in good faith by a responsible financial or
accounting officer of the Issuer to be the interest rate implicit in such
Sale/Leaseback Transaction in accordance with GAAP) of the total obligations of
the lessee for rental payments during the remaining term of the lease included
in such Sale/Leaseback Transaction (including any period for which such lease
has been extended).

 

6

 

“Authenticating Agent” means any Person authorized by the
Trustee pursuant to Section 6.14 to act on behalf of the Trustee to
authenticate Securities.

 

“Bankruptcy Law” means the United States Bankruptcy Code of
1978 or any similar U.S. federal or state law for the relief of debtors.

 

“Board of Directors” means either the board of directors of the
Company or any duly authorized committee of that board of directors.

 

“Board Resolution” means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company to have been duly
adopted by the Board of Directors (or by a committee of the Board of Directors
to the extent that any such committee has been authorized by the Board of
Directors to establish or approve the matters contemplated) and to be in full
force and effect on the date of such certification, and delivered to the
Trustee.

 

 “Business
Day” means any day, other than a Saturday or a Sunday, that is
neither a legal holiday nor a day on which banking institutions are authorized
or required by law, regulation or executive order to close in The City of New
York.

 

“Capitalized Lease Obligation” means an obligation that is
required to be classified and accounted for as a capitalized lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with GAAP; and the stated maturity thereof
shall be the date of the last payment of rent or any other amount due under
such lease.

 

“Capital Stock” means, for any Person, any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity issued by such
Person including any Preferred Stock but excluding debt securities convertible
into such equity.

 

 “Commission”
or “SEC” means the Securities and
Exchange Commission, as from time to time constituted, created under the
Exchange Act, or, if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

 

“Common Stock” includes any stock of any class of the Company
which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding-up of
the Company and which is not subject to redemption by the Company.  However, subject to the provisions of Section 12.09,
shares issuable on conversion of Securities shall include only shares of the
class designated as Common Stock of the Company at the date of this Indenture
or shares of any class or classes 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

 

7

 

voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject
to redemption by the Company; provided
that if at any time there shall be more than one such resulting class, the
shares of each such class then so issuable shall be substantially in the
proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

 

“Company” means the Person named as the “Company” in the first paragraph of this
Indenture until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the
Company by the principal executive, financial or accounting officer of the
Company.

 

“Consideration Notice” has the meaning specified in Section 12.02(b).

 

“Conversion Agent” means the person authorized by the Company
to convert Securities in accordance with Article 12.

 

“Conversion Date” means the date on which a holder complies
with the conversion requirements in Section 12.02(c).

 

“Conversion Price” means at any time the amount equal to $1,000
divided by the then applicable Conversion Rate.

 

“Conversion Rate” has the meaning specified in Section 12.01.

 

“Corporate Trust Office” means the principal office of the
Trustee currently located at 101 Barclay Street, New York, New York  10286, Attention: Corporate Trust Services
Re: Virgin Media Inc., or such other address in New York, New York as the
Trustee may designate from time to time by notice to the Noteholders, the
Initial Purchasers and the Company or the principal corporate trust office of
any successor Trustee.

 

“corporation” means a corporation, association, company,
joint-stock company or business trust.

 

“Currency
Agreement” means with
respect to any Person any foreign exchange contract, currency swap agreements
or other similar agreement or arrangement to which such Person is a party or of
which it is a beneficiary.

 

8

 

“Daily Cash Amount” has the meaning specified in the definition
of Daily Settlement Amount.

 

“Daily Conversion Value” means, for each of the 30 consecutive
VWAP Trading Days during the Observation Period, one-thirtieth (1/30) of the
product of (a) the applicable Conversion Rate and (b) the Daily VWAP
of the Common Stock (or the Reference Property pursuant to Section 12.09)
on such VWAP Trading Day, as determined by the Company. Any such determination
shall be conclusive absent manifest error.

 

“Daily Settlement Amount” means, for each of the 30 VWAP
Trading Days during the Observation Period,

 

(a) 
an amount of cash equal to the lesser of (i) the quotient of the Specified
Dollar Amount and 30 and (ii) the Daily Conversion Value relating to such
VWAP Trading Day (in either case, the “Daily
Cash Amount”); and

 

(b) 
if such Daily Conversion Value exceeds the Daily Cash Amount, a number of
shares of Common Stock (the “Deliverable
Shares”) equal to (i) the difference between such Daily
Conversion Value and the Daily Cash Amount divided by (ii) the Daily VWAP
of the Common Stock for such VWAP Trading Day.

 

“Daily VWAP” of the Common Stock means, for each of the 30
consecutive VWAP Trading Days during the Observation Period, the per share
volume-weighted average price as displayed under the heading “Bloomberg VWAP”
on Bloomberg page VMED.Q <equity> AQR (or any equivalent successor page)
in respect of the period from the scheduled open of trading on the principal
trading market for Common Stock to the scheduled close of trading on such
market on such VWAP Trading Day, or if such volume-weighted average price is
unavailable, the market value of one share of Common Stock on such VWAP Trading
Day using a volume-weighted method as determined by a nationally recognized
independent investment banking firm retained for this purpose by the Company

 

“default” has the meaning specified in Section 6.02.

 

“Defaulted Interest” has the meaning specified in Section 3.13.

 

“Deliverable Shares” has the meaning specified in the
definition of Daily Settlement Amount.

 

“Depositary” has the meaning specified in Section 3.03.

 

“Directive” has the meaning specified in Section 8.03.

 

“Disqualified Stock” means, with respect to any Person, any
Capital Stock which by its terms (or by the terms of any security into which it
is

 

9

 

convertible or for which it
is exchangeable or exercisable) or upon the happening of any event:

 

(i)            matures or is mandatorily redeemable
(other than redeemable only for Capital Stock of such Person that is not itself
Disqualified Stock) pursuant to a sinking fund obligation or otherwise;

 

(ii)           is convertible or exchangeable for
Indebtedness or Disqualified Stock (excluding Capital Stock convertible or
exchangeable solely at the option of the Company or a majority owned
Subsidiary; provided, however, that any such conversion or exchange shall be
deemed an Incurrence of Indebtedness or Disqualified Stock, as is applicable);
or

 

(iii)          is redeemable or may become (in
accordance with is terms) upon the occurrence of certain events or otherwise
redeemable or repurchasable at the option of the holder thereof, in whole or in
part,

 

in the case of each of
clause (i), (ii) and (iii), on or prior to 180-days following the  Stated Maturity of the Securities; provided,
however, that any Capital Stock that would not constitute Disqualified Stock
but for provisions thereof giving holders thereof the right to require such Person
to repurchase or redeem such Capital Stock upon the occurrence of an “asset
sale” or “change of control” occurring prior to 180-days following the Stated
Maturity of the Securities shall not constitute Disqualified Stock.

 

“Dividend Threshold Amount” has the meaning specified in Section 12.04(d).

 

“DTC” means The Depository Trust Company, a New York
corporation, or any successor.

 

“Effective Date” means the date on which a Fundamental Change
occurs or becomes effective.

 

“Event of Default” has the meaning specified in Section 5.01.

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934,
as amended.

 

“Ex date” means the first date on which the shares of the
Common Stock trade on the relevant exchange or in the relevant market, regular
way, without the right to receive the issuance or distribution in question.

 

“Extension Fee” has the meaning specified in Section 5.02.

 

“Extension Right” has the meaning specified in Section 5.02.

 

10

 

“Fair
Market Value” means,
with respect to any asset or Property, the price which could be negotiated in
an arm’s-length transaction between a willing seller and a willing buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction.

 

“Fundamental Change” will be deemed to have occurred if any of
the following occurs after the Securities are originally issued:

 

(1) 
any “person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), 
is or becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act, except that for purposes of this clause (1) such
person or group shall be deemed to have “beneficial ownership” of all shares
that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total voting power of the Company’s Voting
Stock (for the purposes of this clause (1), such person shall be deemed to
beneficially own any Voting Stock of an entity held by any other entity (the “parent
entity”), if such other person is the beneficial owner (as defined in this
clause (1)), directly or indirectly, of more than 50% of the voting power
of the Voting Stock of such parent entity); or

 

(2) the
merger or consolidation of the Company with or into another Person or the
merger of another Person with or into the Company or the sale of all or
substantially all of the Company’s assets to another Person, and, in the case
of any such merger or consolidation, the Common Stock that is outstanding
immediately prior to such transaction is changed into or exchanged for cash,
securities or property, unless pursuant to such transaction such securities are
changed into or exchanged for, in addition to any other consideration,
securities of the surviving person or transferee that represent immediately
after such transaction, at least a majority of the aggregate voting power of
the Voting Stock of the surviving Person or transferee; or

 

(3) 
during any period of two consecutive years, individuals who at the beginning of
such period constituted the Company’s board of directors (together with any new
directors whose election to the Company’s board of directors or whose
nomination for election by the Company’s shareholders was approved by a vote of
a majority of the directors then still in office who were either directors at
the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Company’s board of directors, then in office; or

 

(4) 
the adoption of a plan relating to the Company’s liquidation or dissolution; or

 

(5) 
if shares of the Common Stock or American Depositary Receipts in respect of
shares of Common Stock into which the Securities are exchangeable or
convertible pursuant to the terms of this Indenture, are not listed for trading
on any of the New York Stock Exchange, the NASDAQ

 

11

 

Global Market or the NASDAQ
Global Select Market (or any of their respective successors),

 

provided, that the
definition of Fundamental Change (and the definition of Make-Whole Fundamental
Change) shall not include any event under clause (1) or any event specified
under clause (2), including, without limitation, the creation of a holding
company, in each case, if at least 90% of the consideration paid for the Common
Stock (excluding cash payments for fractional shares and cash payments made
pursuant to dissenters’ appraisal rights and cash dividends) in connection with
such event consists of shares of Capital Stock traded on any of the New York
Stock Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market (or
any of their respective successors) (or will be so traded or quoted immediately
following the completion of the merger or consolidation or such other
transaction or creation of a holding company) and, as a result of such
transaction or transactions the Securities become exchangeable or convertible
into such shares of such Capital Stock pursuant to Section 12.09.

 

“Fundamental Change Expiration Time” has the meaning specified
in Section 11.01.

 

“Fundamental Change Repurchase Date” has the meaning specified
in Section 11.01.

 

“Fundamental Change Repurchase Notice” has the meaning
specified in Section 11.01.

 

“Fundamental Change Repurchase Price” has the meaning specified
in Section 11.01.

 

“Fundamental Change Repurchase Right Notice” has the meaning
specified in Section 11.01.

 

“GAAP” means generally accepted accounting principles in the
United States of America as in effect as of the initial Issue Date.

 

“Global Security” means a Security that is registered in the
Security Register in the name of a Depositary or a nominee thereof.

 

“Hedging Obligations” of any Person means the obligations of
such Person pursuant to any Interest Rate Agreement or any Currency Rate
Agreement.

 

 “Holder”
means a Person in whose name a Security is registered in the Security Register.

 

“Incur” means issue, assume, guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such Person becomes a Subsidiary (whether by
merger,

 

12

 

consolidation, acquisition
or otherwise) shall be deemed to be Incurred by such Person at the time it
becomes a Subsidiary. The term “Incurrence” when used as a noun shall have a
correlative meaning.

 

“Indebtedness” means, with respect to any Person on any date of
determination, without duplication:

 

(1)           the principal of and premium (if any)
in respect of  indebtedness of such
Person for borrowed money;

 

(2)           the principal of and premium (if any)
in respect of obligations of such Person evidenced by bonds, debentures, notes
or other similar instruments (other than loan notes or similar instruments
issued solely by way of consideration for the acquisition of assets in order to
defer capital gains or equivalent taxes where such loan notes or similar
instruments are not issued for the purpose of financing but are issued for tax
purposes);

 

(3)           all obligations of such Person in
respect of letters of credit, bankers’ acceptances or other similar instruments
(including reimbursement obligations with respect thereto), other than reimbursement
obligations with respect to letters of credit securing obligations (other than
obligations described in (1), (2) and (5) of this definition) entered
into in the ordinary course of business of such Person to the extent such
letters of credit are not drawn upon or, if and to the extent drawn upon such
drawing is reimbursed no later than the fifth Business Day following receipt by
such Person of a demand for reimbursement following payment of the letter of
credit;

 

(4)           all obligations of such Person to pay
the deferred and unpaid purchase price of Property or services (except Trade
Payables), which purchase price is due more than six months after the date of
placing such Property in service or taking delivery and title thereto or the
completion of such services and whose primary purpose is for financing;

 

(5)           all Capitalized Lease Obligations and
all Attributable Debt of such Person;

 

(6)           the amount of all obligations of such
Person with respect to the redemption, repayment or other repurchase of any
Disqualified Stock or, with respect to any Subsidiary of such Person, any
Preferred Stock (but excluding, in each case, any accrued dividends);

 

(7)           all obligations referred to in other
clauses of this definition of other Persons secured by a Lien on any asset of
such Person, whether or not such Indebtedness is assumed by such Person;
provided, however, that the amount of Indebtedness of such Person shall be the
lesser of: (A) the Fair Market Value of such asset at such date of
determination and (B) the amount of such Indebtedness of such other
Persons;

 

(8)           Hedging Obligations of such Person;
and

 

13

 

(9)           all obligations of the type referred
to in clauses (1) through (8) of other Persons and all dividends of other
Persons for the payment of which, in either case, such Person is responsible or
liable, directly or indirectly, as obligor, guarantor or otherwise, including
by means of any Guarantee.

 

The amount of Indebtedness
of any Person at any date shall be the outstanding balance at such date of all
unconditional obligations as described above and the maximum liability, upon
the occurrence of the contingency giving rise to the obligation, of any
contingent obligations at such date as determined in accordance with GAAP. The
amount of Indebtedness under Hedging Obligations of a Person will be calculated
by reference to the net liability of such Person thereunder (as determined in
accordance with GAAP as of the date of the most recent financial statements
distributed under Section 7.04).

 

“Indenture” means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively.

 

“Initial Purchasers” means Goldman, Sachs & Co.,
Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.

 

“Initial Securities” has the meaning specified in the Recitals
and includes any Securities issued upon the exercise of the Initial Purchasers’
option to purchase additional Securities.

 

“Interest
Rate Agreement” means
with respect to any Person any interest rate protection agreement, interest
rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement,
interest rate hedge agreement or other similar agreement or arrangement to
which such Person is party or of which it is a beneficiary.

 

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

 

“Issue Date” with respect to the Initial Securities means April 16,
2008, and with respect to any Additional Securities, the date of original
issuance of such Additional Securities.

 

“Last Reported Sale Price” means, with respect to the Common
Stock or any other security for which a Last Reported Sale Price must be
determined, on any date, the closing sale price per share of the Common Stock
or unit of such other security (or, if no closing sale price is reported, the
average of the last bid and last ask prices or, if more than one in either
case, the average of the average

 

14

 

last bid and the average
last ask prices) on such date as reported in composite transactions for the
principal United States national or regional securities exchange on which it is
then traded, if any. If the Common Stock or such other security is not listed
for trading on a United States national or regional securities exchange on the
relevant date, the Last Reported Sale Price shall be the average of the last
quoted bid and ask prices per share of Common Stock or such other security in
the over-the-counter market on the relevant date, as reported by the Pink
Sheets LLC or similar organization. In the absence of such quotation, the Last
Reported Sale Price shall be the average of the mid-point of the last bid and
ask prices for the Common Stock or such other security on the relevant date
from each of at least two nationally recognized independent investment banking
firms, which may include any of the Initial Purchasers, selected from time to
time by the Company for that purpose. The Last Reported Sale Price shall be
determined without reference to extended or after hours trading. Any such
determination shall be conclusive absent manifest error.

 

“Lien”  means any
mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any conditional sale or other title retention agreement or lease in
the nature thereof).

 

“Make-Whole Fundamental Change” means any transaction or event that
constitutes a Fundamental Change under clauses (1), (2), (4) or (5) of
the definition of such term, provided
that no increase in the Conversion Rate shall be required in the case of any
event specified under clauses (1) or (2) of such definition if at
least 90% of the consideration paid for the Common Stock (excluding cash
payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights and cash dividends) in connection with such event consists of
shares of Capital Stock traded on any of the New York Stock Exchange, the
NASDAQ Global Market or the NASDAQ Global Select Market (or any of their
respective successors) (or will be so traded or quoted immediately following
the completion of the merger, consolidation or transfer or such other
transaction) and, as a result of such transaction or transactions the
Securities become exchangeable or convertible into such shares of such Capital
Stock pursuant to Section 12.09.

 

“Make-Whole Reference Date” means with respect to any Make-Whole
Fundamental Change, the earliest of the date on which such Make-Whole
Fundamental Change is publicly announced, occurs or becomes effective.

 

“Market Disruption Event” means the occurrence or existence on
any Scheduled Trading Day for the Common Stock of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted
by the stock exchange or otherwise) in the Common Stock or in any options
contracts or futures contracts relating to the Common Stock, and such suspension
or limitation occurs or exists at any time within the 30 minutes prior to the
closing time of the relevant exchange on such day.

 

15

 

“Maturity”, when used with respect to any Security, means the date
on which the principal of such Security becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of
acceleration, required repurchase or otherwise.

 

“Maturity Date” means November 15, 2016.

 

“Measurement Period” has the meaning specified in Section 12.01.

 

“Member State” has the meaning specified in Section 8.03.

 

“Net Share Settlement Election” has the meaning specified in Section 12.02(b).

 

“Notice of Conversion” has the meaning specified in Section 12.02(c).

 

“Non-U.S. Jurisdiction” has the meaning specified in Section 8.01.

 

“Non-U.S. Holder” means a Holder or beneficial owner of the
Securities who is not a “United States person” within the meaning of Section 7701(a)(30)
of the United States Internal Revenue Code of 1986, as amended.

 

“Observation Period” means, with respect to any Securities,

 

(a) 
with respect to any Conversion Date occurring on or after the 35th Scheduled
Trading Day prior to November 15, 2016, the 30 consecutive VWAP Trading
Day period beginning on, and including, the 32nd Scheduled Trading Day prior to
such maturity date (or if such day is not a VWAP Trading Day, the next
succeeding VWAP Trading Day); and

 

(b) 
in all other instances, the 30 consecutive VWAP Trading Day period beginning on
and including the third VWAP Trading Day after the related Conversion Date in
respect of such Securities.

 

“Officer” of a Person means the Chairman of the Board, a Vice
Chairman of the Board, the Chief Executive Officer, the President, any Vice
President, the Chief Financial Officer, the Deputy Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Secretary, the Assistant Secretary or
any Director.

 

“Officer’s Certificate” means a certificate signed by an
Officer.

 

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

 

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

 

16

 

(i)            Securities theretofore cancelled by
the Trustee or delivered to the Trustee for cancellation;

 

(ii)           Securities for whose payment or
redemption money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities; and

 

(iii)          Securities which have been paid
pursuant to Section 3.06 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held
by a bona fide purchaser in whose hands such Securities are valid obligations
of the Company;

 

provided,
however, that in
determining whether the Holders of the requisite principal amount of the Outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities which the Trustee knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor.

 

“Paying Agent” means any Person authorized by the Company to
pay the principal of or interest on any Securities on behalf of the Company,
and shall initially be the Trustee.

 

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

 

 “Predecessor
Security” of any particular Security means every previous Security
evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.07 in exchange for or in lieu
of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Security.

 

17

 

“Preferred Stock” as applied to the Capital Stock of any
Person, means Capital Stock of any class or classes (however designated) that
is preferred as to the payment of dividends, or as to the distribution of
assets upon voluntary or involuntary liquidation or dissolution of such Person,
over the shares of Capital Stock of any other class of such Person.

 

“Property” means, with respect to any Person, any interest of
such Person in any kind of property or asset, whether real, personal or mixed, or
tangible or intangible, including Capital Stock in, and other securities of,
any other Person.

 

“Reference Property” has the meaning specified in Section 12.09.

 

“Registration Rights Agreement” means the Registration Rights
Agreement, dated as of April 16, 2008, among the Company and the Initial
Purchasers, for the benefit of themselves and the Holders, as the same may be
amended or modified from time to time in accordance with the terms thereof.

 

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

 

“Relevant Taxing Jurisdiction” has the meaning specified in Section 8.03.

 

“Reporting Default” has the meaning specified in Section 5.02.

 

“Responsible Officer”, when used with respect to the Trustee,
means the chairman or any vice-chairman of the board of directors, the chairman
or any vice-chairman of the executive committee of the board of directors, the
chairman of the trust committee, the president, any vice president, the
secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer,
the controller or any assistant controller or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject and having direct
responsibility for the administration of the Indenture.

 

“Restricted Security” or “Restricted
Securities” has the meaning specified in Section 2.09.

 

“Sale/Leaseback Transaction” means an arrangement relating to
Property now owned or hereafter acquired by the Company or any Subsidiary
whereby the Company or any Subsidiary transfers such Property to a Person and
the Company or such Subsidiary leases it from such Person, other than leases
between the Company and any Subsidiary or between Subsidiaries.

 

18

 

“Scheduled Trading
Day” means a day that is scheduled to be a trading day on the
principal U.S. national or regional securities exchange or market on which the
Common Stock is listed or admitted for trading or, if the Common Stock is not
listed or admitted for trading on any exchange or market, a Business Day.

 

“Security”
and “Securities” have the meaning
specified in the Recitals and include the Initial Securities and any Additional
Securities. The Initial Securities and Additional Securities shall be treated
as a single class for all purposes under this Indenture.

 

“Securities Act”
means the U.S. Securities Act of 1933, as amended,

 

“Security Register”
and “Security Registrar” have the
respective meanings specified in Section 3.06.

 

“Shelf Registration
Statement” means a shelf registration statement under the Securities
Act registering the Securities for resale pursuant to the terms of the
Registration Rights Agreement.

 

“Significant
Subsidiaries” means any direct or indirect Subsidiary of the Company
within the meaning of Section 1-02(w) of Regulation S-X as
promulgated by the Commission.

 

“Special Record Date”
for the payment of any Defaulted Interest means a date fixed by the Trustee
pursuant to Section 3.13.

 

“Specified Dollar
Amount” means a dollar amount of cash to be delivered per $1,000
principal amount of Securities, which shall be deemed to be $1,000 if the
Company has made an irrevocable Net Share Settlement Election, specified in a
notice pursuant to Section 12.02.

 

“Spin-Off”
has the meaning specified in Section 12.04(c).

 

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

 

“Stock Price”
means the price paid per share of Common Stock in connection with a Make-Whole
Fundamental Change pursuant to which Additional Shares shall be added to the
Conversion Rate as set forth in Article 12, which shall be equal to (i) if
holders of Common Stock receive only cash in such Make-Whole Fundamental
Change, the cash amount paid per share of Common Stock and (ii) in all
other cases, the average of the Last Reported Sale Prices of the Common Stock
over the ten consecutive Trading Day period ending on the

 

19

 

Trading Day preceding the date on which such
Make-Whole Fundamental Change occurs or becomes effective.

 

“Subsidiary”
means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries. For the
purposes of this definition, “voting stock” means stock which ordinarily has
voting power for the election of directors, whether at all times or only so
long as no senior class of stock has such voting power by reason of any
contingency.

 

“Taxes”
has the meaning specified in Section 8.03.

 

“Trade Payables”
means, with respect to any Person, any accounts payable or any indebtedness or
monetary obligation to trade creditors created, assumed or guaranteed by such
Person arising in the ordinary course of business in connection with the
acquisition of goods or services.

 

“Trading Day”
means a day during which (i) trading in the Common Stock generally occurs
and (ii) there is no Market Disruption Event.

 

“Trading Price”
with respect to any Securities, on any date of determination, means the average
of the secondary market bid quotations obtained by the Conversion Agent for
$2.0 million in principal amount of such Securities at approximately 3:30 p.m.,
New York City time, on such determination date from two independent nationally
recognized securities dealers selected by the Company, which may include any of
the Initial Purchasers; provided
that if two such bids cannot reasonably be provided (in the reasonable judgment
of the Company) to the Conversion Agent, but only one such bid is obtained,
that one bid shall be used. If at least one bid for $2.0 million in principal
amount of the Securities cannot reasonably be obtained, then the Trading Price
per $1,000 in principal amount of Securities shall be deemed to be less than
98% of the product of the Last Reported Sale Price of the Common Stock and the
applicable Conversion Rate. Any such determination shall be conclusive absent
manifest error.

 

“Trading Price
Condition” has the meaning specified in Section 12.01.

 

“Trustee”
means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Trustee” shall mean such
successor Trustee.

 

“Trust Indenture Act”
means the U.S. Trust Indenture Act of 1939 as in force at the date as of which
this Indenture was executed; provided,
however, that in the event the Trust Indenture Act of 1939 is
amended after such date, “Trust Indenture Act” means, to the extent required by
any such amendment, the Trust Indenture Act of 1939 as so amended.

 

20

 

“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.

 

“VWAP Market
Disruption Event” means (i) a failure by the principal U.S.
national or regional securities exchange or market on which the Common Stock is
listed or admitted to trading to open for trading during its regular trading
session or (ii) the occurrence or existence prior to 1:00 p.m. on any
Scheduled Trading Day for the Common Stock for an aggregate one half-hour
period of any suspension or limitation imposed on trading, by reason of
movements in price exceeding limits permitted by the stock exchange or
otherwise, in the Common Stock or in any options contracts or futures contracts
relating to the Common Stock.

 

“VWAP Trading Day”
means a day during which (i) trading in the Common Stock generally occurs
on the principal U.S. national or regional securities exchange or market on
which the Common Stock is listed or admitted for trading and (ii) there is
no VWAP Market Disruption Event. If the Common Stock is not so listed or
traded, then VWAP Trading Day means a Business Day.

 

This Indenture is subject to the mandatory provisions
of the Trust Indenture Act, which are incorporated by reference in and made a
part of this Indenture. The following Trust Indenture Act terms have the
following meanings:

 

“Indenture
Securities” means the Securities.

 

“Indenture Security
Holder” means a Holder.

 

“Indenture to be
Qualified” means this Indenture.

 

“Indenture Trustee”
or “Institutional Trustee” means
the Trustee.

 

All other terms in this Indenture that are defined by
the Trust Indenture Act, defined by it by reference to another statute or
defined by SEC rule have the meanings assigned to them by such
definitions. If any provision hereof limits, qualifies or conflicts with
another provision hereof which is required to be included in this Indenture by
the Trust Indenture Act, such required provision shall control.

 

21

 

Section 1.02.  Compliance Certificates and Opinions.

 

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officer’s Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent have been complied
with.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

 

(1) a statement that each individual signing such
certificate or opinion has read such covenant or condition and the definitions
herein relating thereto;

 

(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 each such
individual, he has made such examination or investigation as is necessary to
enable him 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, in the opinion of
each such individual, such condition or covenant has been complied with.

 

Section 1.03.  Form of Documents Delivered to Trustee.

 

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

 

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

 

22

 

that the information with respect to such factual
matters is in the possession of the Company, unless such counsel knows, or in
the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous. Any such
certificate or opinion of counsel may be based, insofar as it relates to
accounting matters, upon a certificate or opinion of, or representations by, an
accountant (who may be an employee of the Company) or firm of accountants,
unless such counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters
are erroneous.

 

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

 

Section 1.04.  Acts of Holders; Record Dates.

 

(a)        Any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Holders in person or by an agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. The Trustee shall promptly deliver
to the Company copies of all such instruments or instruments and records
delivered to the Trustee. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 6.01)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

 

(b)        The fact and date of the execution by
any Person of any such instrument or writing may be proved by the affidavit of
a witness of such execution or by a certificate of a notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than
his individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee deems sufficient.

 

(c)        The Company may, in the circumstances
permitted by the Trust Indenture Act, fix any day as the record date for the
purpose of determining the

 

23

 

Holders entitled to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action, or to vote
on any action, authorized or permitted to be given or taken by Holders. If not
set by the Company prior to the first solicitation of a Holder made by any
Person in respect of any such action, or, in the case of any such vote, prior
to such vote, the record date for any such action or vote shall be the 30th day
(or, if later, the date of the most recent list of Holders required to be
provided pursuant to Section 7.01) prior to such first solicitation or vote,
as the case may be. With regard to any record date, only the Holders on such
date (or their duly designated proxies) shall be entitled to give or take, or
vote on, the relevant action.

 

(d)        The ownership of Securities shall be
proved by the Security Register.

 

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

 

Section 1.05.  Notices,
Etc., to Trustee and Company.

 

Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

 

(1) the Trustee by any Holder or by the Company
shall be sufficient for every purpose hereunder if made, given, furnished or
filed in writing (or by facsimile transmission to (212) 815-5704 (or such other
facsimile number specified by the Trustee), provided that oral confirmation of
receipt shall have been received) to or with the Trustee at its Corporate Trust
Office, or such other means reasonably acceptable to the Trustee, or

 

(2) the Company by the Trustee or by any Holder
shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
the Company addressed to it at the address of its principal office specified in
the first paragraph of this Indenture or at any other address previously
furnished in writing to the Trustee by the Company, Attention: Chief Financial
Officer, with a copy to the Secretary or such other means reasonably acceptable
to the Company.

 

Section 1.06.  Notice to Holders; Waiver.

 

Where this Indenture provides for notice to Holders of
any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder affected by such event, at his address as it appears in the
Security Register, or by such other means

 

24

 

reasonably acceptable to the Holder, in each case not
later than the latest date (if any), and not earlier than the earliest date (if
any), prescribed for the giving of such notice. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. In any case where notice
to Holders is given by publication, any defect in any notice so published as to
any particular Holder shall not affect the sufficiency of such notice with
respect to other Holders, and any notice that is published in the manner herein
provided shall be conclusively presumed to have been duly given. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

 

In case by reason of the suspension of regular mail service
or by reason of any other cause it shall be impracticable to give such notice
by mail, then such notification as shall be made with the approval of the
Trustee shall constitute a sufficient notification for every purpose hereunder.

 

Section 1.07.  Conflict With Trust Indenture Act.

 

If any provision hereof limits, qualifies or conflicts
with a provision of the Trust Indenture Act that is required under such Act to
be a part of and govern this Indenture, the latter provision shall control. If
any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or to be excluded, as the
case may be.

 

Section 1.08.  Effect of Headings and Table of Contents.

 

The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the
construction hereof.

 

Section 1.09.  Successors and Assigns.

 

All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns and all agreements of the Trustee
in this Indenture shall bind its successors and assigns, whether so expressed
or not.

 

Section 1.10.  Separability Clause.

 

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

 

25

 

provision shall be effective only to the extent of
such invalidity, illegality or unenforceability.

 

Section 1.11.  Benefits of Indenture.

 

Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder and the Holders of Securities, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

 

Section 1.12.  Governing Law.

 

This Indenture and the Securities shall be governed by
and construed in accordance with the laws of the State of New York.

 

Section 1.13.  Legal Holidays.

 

In any case where any Interest Payment Date,
Fundamental Change Repurchase Date, Stated Maturity, or the last date on which
a Holder has the right to convert his Securities, shall not be a Business Day,
then (notwithstanding any other provision of this Indenture or of the
Securities) payment of interest or principal or conversion of the Securities
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the Interest Payment Date,
Fundamental Change Repurchase Date, the Stated Maturity, or on such last day
for conversion, provided that no
interest shall accrue for the period from and after such Interest Payment Date,
Fundamental Change Repurchase Date or Stated Maturity, as the case may be.

 

Section 1.14.  Indenture and Securities Solely Corporate
Obligations.

 

None of the Company’s or its Subsidiaries’ past,
present or future directors, officers, employees, incorporators or
stockholders, as such, shall have any liability for any of the Company’s
obligations under this Indenture or the Securities or for any claim based on,
or in respect or by reason of, such obligations or their creation. By accepting
a Security, each Holder waives and releases all such liability.   The waiver and release are part of the
consideration for the issuance of the Securities.

 

This waiver and release is part of the consideration
for the issuance of the Securities.

 

Section 1.15.  Indenture May Be Executed in
Counterparts.

 

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

 

26

 

Section 1.16.  Acceptance of Trust.

 

The Bank of New York, the Trustee named herein, hereby
accepts the trusts in this Indenture declared and provided, upon the terms and
conditions set forth herein.

 

ARTICLE 2

SECURITY FORMS

 

Section 2.01.  Forms Generally.

 

The Securities and the Trustee’s certificates of
authentication shall be in substantially the forms set forth in this Article,
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any
securities exchange or any depositary therefore or as may, consistently
herewith, be determined by the officers executing such Securities, as evidenced
by their execution of the Securities.

 

Notices of Conversion shall be in substantially the
form set forth in Section 2.05.

 

The definitive Securities shall be printed, lithographed
or engraved or produced by any combination of these methods on steel engraved
borders or may be produced in any other manner permitted by the rules of
any securities exchange on which the Securities may be listed, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.

 

Section 2.02.  Form of Face of Security.

 

[INCLUDE IF SECURITY IS A RESTRICTED
SECURITY –

 

THE SALE OF THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE ‘‘SECURITIES ACT’’), AND
ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED 
OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL NOT WITHIN THE
LATER OF (X) ONE YEAR AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES
(INCLUDING THROUGH THE EXERCISE OF THE OPTION TO   PURCHASE ADDITIONAL NOTES) AND (Y) 90
DAYS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER
THE SECURITIES ACT) OF THE ISSUER,

 

27

 

OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE NOTES
EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH NOTES,
EXCEPT (A) TO THE ISSUER; (B) UNDER A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN
COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2) THAT
IT WILL, PRIOR TO ANY TRANSFER OF THIS NOTE WITHIN THE LATER OF (X) SIX
MONTHS (OR, IF THE ISSUER HAS NOT SATISFIED THE CURRENT PUBLIC INFORMATION
REQUIREMENTS OF RULE 144, ONE YEAR) AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF
NOTES (INCLUDING THROUGH THE EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL
NOTES) AND (Y) 90 DAYS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE
MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE ISSUER, FURNISH TO
THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THEY MAY REQUIRE PURSUANT TO THE INDENTURE AND MAY RELY
UPON TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE 
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. IN ANY EVENT, NO
AFFILIATE OF THE ISSUER MAY RESELL THIS NOTE OTHER THAN IN CONFORMITY WITH
RULE 144 BEFORE ONE YEAR AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES
(INCLUDING THROUGH THE EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL NOTES).
THE RESTRICTIONS SET FORTH IN THIS LEGEND SHALL CEASE TO HAVE EFFECT ONE YEAR
AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH THE
EXERCISE OF THE OPTION TO PURCHASE ADDITIONAL NOTES) PROVIDED THAT ALL HOLDERS
AFTER SUCH DATE SHALL CONTINUE TO BE REQUIRED TO TRANSFER NOTES IN CONFORMITY
WITH THE REQUIREMENTS OF APPLICABLE SECURITIES LAWS.]

 

28

 

VIRGIN MEDIA INC.

 

6.50% Convertible
Senior Note due 2016

 

No.       $

 

CUSIP No. 

ISIN No.

 

Virgin Media Inc., a corporation duly organized and
existing under the laws of the State of Delaware (herein called the “Company”, which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to                         ,
or registered assigns, the principal sum [of                         Dollars]
[IF THIS NOTE IS A GLOBAL SECURITY, THEN INSERT — set forth on the Principal
Schedule attached to this Security] on November 15, 2016, and to pay
interest thereon from April 16, 2008 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for to but
excluding the next Interest Payment Date, semi-annually on May 15 and November 15
in each year, commencing November 15, 2008, at the rate of 6.50% per
annum, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at 5:00 p.m., New York City time, on the Regular Record Date for such
interest, which shall be the May 1 or November 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at 5:00 p.m., New York City time, on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than
10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture. Payment of the
principal of and interest on this Security will be made at the office or agency
of the Company maintained for that purpose, which shall initially be the
corporate trust operations office of The Bank of New York in New York, New
York, 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 shall appear in the Security
Register.

 

29

 

Reference is hereby made to the further provisions of
this Security set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed

 

Dated:

 

	
   

  	
  VIRGIN MEDIA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Section 2.03.  Form of Reverse of Security.

 

This Security is one of a duly authorized issue of
Securities of the Company designated as its 6.50% Convertible Senior Notes due
2016 (herein called the “Initial Securities”),
initially limited in aggregate principal amount to $1,150,000,000, issued and
to be issued under an Indenture, dated as of April 16, 2008 (herein called
the “Indenture”), between the
Company and The Bank of New York, as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. The Company may
from time to time, without notice to or the consent of the Holders of the
Securities, create and issue further Securities (the “Additional Securities”, and together with
the Initial Securities, the “Securities”)
having the same terms and ranking equally and ratably with the Initial
Securities, as part of one series, in all respects and with the same CUSIP
number as the Initial Securities, or in all respects except for payment of
interest accruing prior to the Issue Date of such Initial Securities. Any
Additional Securities shall be consolidated and form a single series with the
Initial Securities and shall have the same terms as to status, redemption, and
otherwise as the Initial Securities. Any Additional Securities may be issued
pursuant to authorization provided by a resolution of the Board of Directors of
the Company, a supplement to the Indenture, or under an Officer’s Certificate
pursuant to the

 

30

 

Indenture. No Additional Securities may be issued if
an Event of Default has occurred and is continuing with respect to the Initial
Securities.

 

In any case where the due date for the payment of the
principal of or interest on any Security or the last day on which a Holder of a
Security has a right to convert his Security shall be, at any Place of Payment
or Place of Conversion, as the case may be, a day on which banking institutions
at such Place of Payment or Place of Conversion are authorized or obligated by
law or executive order to close, then payment of principal, interest or
delivery for conversion of such Security need not be made on or by such date at
such place but may be made on or by the next succeeding day at such place which
is not a day on which banking institutions are authorized or obligated by law,
regulation or executive order to close, with the same force and effect as if
made on the date for such payment or the date fixed for repayment or repurchase,
or by such last day for conversion, and no interest shall accrue on the amount
so payable for the period after such date.

 

Subject to the provisions of the Indenture, upon the
occurrence of a Fundamental Change, the Holder has the right, at such Holder’s
option, to require the Company to repurchase all of such Holder’s Securities or
any portion thereof (in principal amounts of $1,000 or integral multiples
thereof) on the Fundamental Change Repurchase Date at a price equal to 100% of
the principal amount of the Securities such Holder elects to require the
Company to repurchase, together with accrued and unpaid interest to but
excluding the Fundamental Change Repurchase Date, unless the relevant
Fundamental Change Repurchase Date falls after a Regular Record Date and on or
prior to the corresponding Interest Payment Date, in which case the Company
will pay the full amount of accrued and unpaid interest payable on such
Interest Payment Date to the Holder of record at 5:00 p.m., New York City
time, on the corresponding Regular Record Date. The Company or, at the written
request of the Company, the Trustee shall mail to all Holders of record of the
Securities a notice of the occurrence of a Fundamental Change and of the
repurchase right arising as a result thereof after the occurrence of any
Fundamental Change, but on or before the 10th calendar day following such
occurrence.

 

The Holder hereof has the right, at its option, (i) upon
the occurrence of certain conditions specified in the Indenture, at any time
prior to 5:00 p.m., New York City time, on the Scheduled Trading Day
immediately preceding August 15, 2016, or (ii) on or after August 15,
2016, at any time prior to 5:00 p.m., New York City time, on the second
Scheduled Trading Day immediately preceding the Maturity Date, to convert such
Holder’s Securities or portion thereof which is $1,000 in principal amount or
an integral multiple thereof, into shares of Common Stock (or cash or
combination of cash and shares of Common Stock, at the election of the Company,
as set forth in Section 12.02 of the Indenture) or Reference Property, in
each case at the Conversion Rate specified in the Indenture, as adjusted from
time to time as provided in the Indenture, upon satisfaction of certain
requirements set forth in the Indenture, including, if applicable, the

 

31

 

surrender of this Security, together with a Notice of
Conversion, a form of which is contained under Section 2.05 of the
Indenture, as provided in the Indenture and this Security, to the Conversion
Agent at the office or agency of the Company maintained for that purpose, or at
the option of such Holder, the Corporate Trust Office, and, unless the shares
of Common Stock or Reference Property, as the case may be, issuable on
conversion are to be issued in the same name as this Security, duly endorsed
by, or accompanied by instruments of transfer in form satisfactory to the
Company duly executed by, the Holder or by his duly authorized attorney. The
initial Conversion Rate shall be 52.0291 shares of Common Stock for each $1,000
in principal amount of Securities. The Conversion Rate is subject to adjustment
as provided in the Indenture. In addition, the Indenture provides that in case
of certain consolidations or mergers to which the Company is a party or the
transfer of substantially all of the assets of the Company, the Indenture shall
be amended, without the consent of any Holders of Securities, so that this
Security, if then outstanding, will be convertible thereafter into Reference
Property. No fractional shares of Common Stock or Reference Property, as the
case may be, shall be issued upon any conversion, but an adjustment in cash
shall be paid to the Holder, as provided in the Indenture, in respect of any fraction
of such share which would otherwise be issuable upon the surrender of any
Security or Securities for conversion. No adjustment shall be made for
dividends or any such shares issued upon conversion of such Securities except
as provided in the Indenture.  The
Company shall elect to settle conversions of the Securities in Common Stock,
cash or a combination of cash and Common Stock, if any (or Reference Property),
as provided in the Indenture.

 

No sinking fund is provided for the Securities and the
Securities are not subject to redemption at the option of the Company.

 

In the event of conversion of this Security in part
only, a new Security or Securities for the unconverted portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.

 

If an Event of Default shall occur and be continuing,
the principal of all the Securities may be declared due and payable in the
manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of at least a majority in aggregate principal amount of the
Securities at the time Outstanding. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Securities at the time Outstanding, on behalf of the Holders of all the
Securities, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the

 

32

 

Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

 

No reference herein to the Indenture and no provision
of this Security or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed or to convert this Security as provided in the
Indenture.

 

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any interest on this Security are payable, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

 

The Securities are issuable only in registered form
without coupons and in denominations of $1,000 and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities are exchangeable for a like aggregate principal
amount of Securities of a different authorized denomination, provided that such denomination is a
minimum of $1,000 or an integral multiple thereof, as requested by the Holder
surrendering the same.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Trustee or Security Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered
as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

 

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

 

All terms used in this Security which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

 

33

 

[INCLUDE IN GLOBAL
SECURITIES ONLY]

 

PRINCIPAL SCHEDULE

 

VIRGIN MEDIA INC.

 

6.50% Convertible
Senior Notes due 2016

 

No.         

 

The initial principal amount of this Global Security
is $1,000,000,000. The following decreases or increases in this Global Security
have been made:

 

	
  Date of decrease

  or increase

  	
   

  	
  Amount of

  decrease in

  principal amount

  of this Global

  Security

  	
   

  	
  Amount of

  increase in

  principal amount

  of this Global

  Security

  	
   

  	
  Principal amount

  of this Global

  Security following

  such increase or

  decrease

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Section 2.04.  Form of Legend for Global Securities.

 

Unless otherwise specified as contemplated by Section 3.01
for the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:

 

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 MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

Section 2.05.  Form of Notice of Conversion.

 

Conversion notices
shall be in substantially the following form:

 

NOTICE OF
CONVERSION

 

The undersigned Holder of this Security hereby
irrevocably exercises the option to convert this Security, or any portion of
the principal amount hereof (which is U.S. $1,000 or an integral multiple of
U.S. $1,000 in excess thereof, provided that the unconverted portion of such
principal amount is U.S. $1,000 or any integral multiple of U.S. $1,000 in
excess thereof) below designated, into

 

34

 

cash, shares of Common Stock, a combination of cash
and Shares or Common Stock or Reference Property, as applicable in accordance
with the terms of the Indenture referred to in this Security, and directs that
such shares, if any, together with a check in payment for any fractional share
and any Securities representing any unconverted principal amount hereof, be
delivered to and be registered in the name of the undersigned unless a
different name has been indicated below. If shares of Common Stock, Reference
Property or Securities are to be registered in the name of a Person other than
the undersigned, the undersigned shall pay all transfer taxes payable with
respect thereto.

 

	
  Dated:

  	
   

  	
   

  	
  Signature(s):

  	
   

  	
   

  	
   

  

 

If shares or Securities are to be registered in the
name of a Person other than the Holder, please print such Person’s name and
address:

 

(Name)

 

(Address)

 

Social Security or other

 

Identification Number, if any

 

If only a portion of the Securities are to be
converted, please indicate:

 

1. Principal amount to be converted: U.S. $                     

 

2. Principal amount and denomination of Securities
representing unconverted principal amount to be issued:

 

Amount: U.S. $                     
Denominations: U.S. $                      

 

(U.S. $1,000 or any integral multiple of U.S. $1,000
in excess thereof, provided that the unconverted portion of such principal
amount is U.S. $1,000 or any integral multiple of U.S. $1,000 in excess
thereof)

 

Section 2.06.  Form of Assignment.

 

ASSIGNMENT

 

For value received,                                   
hereby sell(s), assign(s) and transfer(s) unto                                    
(Please insert Social Security or other identifying number of assignee) the
within Security, and hereby irrevocably constitutes and appoints                                    
as attorney to transfer the said Security on the books of the Company, with
full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
  Signature(s):

  	
   

  	
   

  	
   

  

 

35

 

Signature(s) must be guaranteed by an Eligible
Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934.

 

Signature Guaranteed

 

In connection with any transfer of this Security
occurring prior to the date which is the earlier of (i) the date of the
declaration by the Commission of the effectiveness of a registration statement
under the U.S. Securities Act of 1933, as amended (the “Securities Act”), covering resales of this
Security (which effectiveness shall not have been suspended or terminated at
the date of the transfer) and (ii) the one year after the last date of
original issuance of Securities (including through the exercise of the Initial
Purchasers’ option to purchase additional Securities), the undersigned confirms
that it has not utilized any general solicitation or general advertising in
connection with the transfer and that this Security is being transferred:

 

[Check One]

 

(1)                                  o                                   to the Company or a subsidiary thereof;
or

 

(2)                                  o                                   under a registration statement that has
been declared effective under the Securities Act; or

 

(3)                                  o                                   to a “Qualified Institutional Buyer”
pursuant to and in compliance with Rule 144A under the Securities Act; or

 

(4)                                  o                                   pursuant to the exemption from
registration provided by Rule 144 under the Securities Act.

 

Unless one of the above boxes is checked, the Trustee
will refuse to register any of the Securities evidenced by this certificate in
the name of any Person other than the registered Holder thereof, provided that if box (3) is checked,
with respect to any transfer within six months (or, if the Company has not
satisfied the current public information requirements of Rule 144, one
year) after the last date of original issuance of the Securities (including
through the exercise of the Initial Purchasers’ option to purchase additional
Securities) or if the Holder is an “affiliate” (within the meaning of Rule 144
under the Securities Act) of the Company during the 90 days preceding the date
of such transfer, the Holder will deliver to the Company and the Trustee such
certificates, legal opinions and other information as the Company or the
Trustee may reasonably require to confirm that the transfer by the Holder
complies with the restrictions applicable to this Security.

 

If none of the foregoing boxes is checked, the Trustee
or Security Registrar shall not be obligated to register this Security in the
name of any Person other than the

 

36

 

Holder hereof unless and until the conditions to any
such transfer of registration set forth herein and in Section 3.10 of the
Indenture shall have been satisfied.

 

In connection with any transfer prior to the first
anniversary of the Issue Date set forth on the face of this Security (other
than transfers pursuant to an effective registration statement or in compliance
with Rule 144), the undersigned represents and warrants that to its
knowledge the transferee is not an affiliate (within the meaning of Rule 144
under the Securities Act) of the Company.

 

	
  Dated:

  	
   

  	
   

  	
  Signature(s):

  	
   

  	
   

  	
   

  

 

Signature(s) must be guaranteed by an Eligible
Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934, as amended.

 

Signature Guaranteed

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS
CHECKED

 

The undersigned represents and warrants that it is
purchasing this Security for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

TO BE COMPLETED BY ALL PURCHASERS

 

In connection with any purchase (except if pursuant to
an effective registration statement) of this Security occurring prior the first
anniversary of the Issue Date set forth on the face of this Security, the
undersigned represents and warrants that it is not an affiliate (within the
meaning for Rule 144 under the Securities Act) of the Company.

 

	
  Dated:

  	
   

  	
   

  	
  Signature(s):

  	
   

  	
   

  	
   

  

 

NOTICE:  To be
executed by an executive officer.

 

37

 

Section 2.07.  Form of
Trustee’s Certificate of Authentication.

 

This is one of the
Securities referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK,
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

Section 2.08.  Form of
Fundamental Change Repurchase Notice.

 

To:  VIRGIN MEDIA INC.

 

The undersigned
registered owner of this Security hereby acknowledges receipt of a notice from
Virgin Media Inc. (the “Company”) as to the occurrence of a Fundamental Change
with respect to the Company and hereby directs the Company to pay, or cause the
Trustee to pay,                                  
an amount in cash equal to 100% of the entire principal amount, or the portion
thereof (which is $1,000 principal amount or an integral multiple thereof)
below designated, to be repurchased plus interest accrued and unpaid to, but
excluding, the Fundamental Change Repurchase Date, except as provided in the
Indenture.

 

	
  Dated:

  	
   

  	
   

  

 

	
  Signature

  	
   

  	
   

  

 

Principal amount to be
repurchased (at least $1,000 or an integral multiple of $1,000 in excess
thereof):                    

 

Remaining principal
amount following such repurchase:                      

 

	
  By:

  	
   

  	
   

  

 

Authorized signatory

 

Section 2.09.  Legend on
Restricted Securities.

 

During the period
beginning on the Issue Date and ending on the date the one year after the last
date of original issuance of Securities (including through the exercise of the
Initial Purchasers’ option to purchase additional Securities), any Security,
including any Security issued in exchange therefor or in lieu thereof, shall be
deemed a “Restricted Security” and shall be subject to the restrictions on

 

38

 

transfer provided in the
legends set forth on the face of the form of Security in Section 2.02; provided, however, that the term “Restricted
Security” shall not include any Securities as to which restrictions have been
terminated in accordance with Section 3.10.  All Securities shall bear the applicable
legends set forth on the face of the form of Security in Section 2.02.  Except as provided in Section 3.06 and Section 3.10,
the Trustee shall not issue any unlegended Security until it has received an
Officer’s Certificate from the Company directing it to do so.

 

ARTICLE 3

THE SECURITIES

 

Section 3.01.  Title and Terms; Principal and
Interest.

 

The
aggregate principal amount of Initial Securities which may be authenticated and
delivered under this Indenture is limited to $1,150,000,000 and the aggregate
amount of Additional Securities is unlimited, except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Section 3.03, Section 3.04,
Section 3.05, Section 3.06, Section 3.07, Section 9.06 or Section 12.02.

 

The
Initial Securities and the Additional Securities, if any, shall be known and
designated as the “6.50% Convertible Senior Notes due 2016” of the Company.

 

The
Securities shall mature on November 15, 2016.

 

The
Securities shall bear interest at the rate of 6.50% per annum, from April 16,
2008 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, as the case may be, payable semi-annually in arrears
on May 15 and November 15, commencing November 15, 2008, until
the principal thereof is paid or made available for payment.

 

If
any Interest Payment Date falls on a day that is not a Business Day, the
interest payment due on such Interest Payment Date shall be paid on the next
succeeding Business Day and no interest on such payment will accrue for the
period from the Interest Payment Date to such next succeeding Business Day. If
the Stated Maturity date falls on a day that is not a Business Day, the
required payment of interest, if any, and principal (and Additional Interest,
if any), shall be postponed to the next succeeding Business Day and no interest
on such payment will accrue for the period from and after the Stated Maturity
date to such next succeeding Business Day. If a Fundamental Change Repurchase
Date would fall on a day that is not a Business Day, the Company will purchase
the Securities tendered for purchase on the next succeeding Business Day and no
interest or Additional Interest on such Securities will accrue for the period
from and after the earlier Fundamental Change Repurchase Date to such next
succeeding Business

 

39

 

Day.
The Company will pay the Fundamental Change Repurchase Price promptly following
the later of (i) such next succeeding Business Day or (ii) the time
of book entry transfer or the delivery of the Securities as set forth in Section 11.01
hereof.

 

A
Holder of any Security at 5:00 p.m., New York City time, on a Regular
Record Date shall be entitled to receive interest (including any Additional
Interest), on such Security on the corresponding Interest Payment Date. Holders
of Securities at 5:00 p.m., New York City time, on a Regular Record Date
will receive payment of interest (including any Additional Interest) payable on
the corresponding Interest Payment Date notwithstanding the conversion of such
Securities at any time after 5:00 p.m., New York City time on such Regular
Record Date. Securities surrendered for conversion during the period after 5:00 p.m.,
New York City time, on any Regular Record Date to 9:00 a.m., New York City
time, on the corresponding Interest Payment Date must be accompanied by payment
of an amount equal to the interest (including any Additional Interest) that the
Holder is to receive on the Securities. Notwithstanding the foregoing, no such
payment of interest (including any Additional Interest) need be made by any
converting Holder (i) if the Company has specified a Fundamental Change
Repurchase Date that is after a Regular Record Date and on or prior to the
corresponding Interest Payment Date, (ii) to the extent of any overdue
interest (including any overdue Additional Interest) existing at the time of
conversion of such Security or (iii) for conversions with a Conversion
Date after November 1, 2016.  Except
where Securities surrendered for conversion must be accompanied by payment as
described above, no interest or Additional Interest on converted Securities
will be payable by the Company on any Interest Payment Date subsequent to the
Conversion Date and delivery of the cash and shares of Common Stock (or
Reference Property), if applicable, pursuant to Article 12 hereunder,
together with any cash payment for any fractional share, upon conversion will
be deemed to satisfy the Company’s obligation to pay the principal amount of the
Securities and accrued and unpaid interest and Additional Interest, if any, to,
but not including, the related Conversion Date.

 

Principal
of and interest on, Global Securities shall be payable to DTC in immediately
available funds.

 

Principal
on definitive Securities shall be payable at the office or agency of the
Company maintained for such purpose, initially the agency of the Trustee at New
York, New York (such office and city in which the Paying Agent is located being
herein after called the “Place of Payment”). Interest, on definitive Securities
will be payable (i) to each Holder of Securities having an aggregate
principal amount of $5,000,000 or less, by check mailed to such Holder and (ii) to
each Holder of Securities having an aggregate principal amount of more than
$5,000,000, either by check mailed to such Holder or, upon application by such
Holder to the Securities Registrar, not later than the relevant Regular Record
Date, by wire transfer in immediately available funds to that Holder’s account within

 

40

 

the
United States, which application shall remain in effect until the Holder
notifies, in writing, the Securities Registrar to the contrary.

 

The
Securities shall be convertible as provided in Article 12 (any city in
which the Conversion Agent is located being herein after called the “Place of
Conversion”).

 

Section 3.02.  Denominations.

 

The
Securities shall be issuable only in registered form without coupons and only
in denominations of $1,000 and any integral multiple thereof.

 

Section 3.03.  Global Securities; Non-global
Securities; Book-entry Provisions.

 

The
Securities may be issued in Global or Non-Global (Definitive) Form as
provided in this Indenture.

 

(a)                        Global
Securities

 

(i)                       Each Global Security
authenticated under this Indenture shall be registered in the name of Cede &
Co., as nominee of DTC (the “Depositary”)
and shall be delivered to the Trustee, as custodian for the Depositary. Each
such Global Security shall constitute a single Security for all purposes of
this Indenture.

 

(ii)                    Except for exchanges of Global
Securities for definitive, non-Global Securities at the sole discretion of the
Company, no Global Securities may be exchanged in whole or in part for
Securities registered, and no transfer of a Securities in whole or in part may
be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (A) such Depositary (1) has
notified the Company that it is unwilling or unable to continue as Depositary
for such Global Security or (2) has ceased to be a clearing agency
registered as such under the Exchange Act or announces an intention permanently
to cease business or does in fact do so or (B) there shall have occurred
and be continuing an Event of Default with respect to such Global Security. In
the case of an event described in clause (A), if a successor Depositary for
such Global Security is not appointed by the Company within 90 calendar days
after the Company receives such notice or becomes aware of such ineligibility,
the Company shall execute, and the Trustee, upon receipt of an Officer’s
Certificate directing the authentication and delivery of non-Global Securities,
shall authenticate and deliver, non-Global Securities, in any authorized
denominations in an aggregate principal amount equal to the principal amount of
such Global Security in exchange for such Global Security.  In the case of an event described in clause
(B), the Company shall promptly upon the request of the Depositary execute, and
the Trustee,

 

41

 

upon receipt of an Officer’s Certificate directing the authentication and
delivery of non-Global Securities, shall authenticate and deliver, non-Global
Securities, in any authorized denominations in an aggregate principal amount
equal to the principal amount of such Global Security that the Depositary
requests be exchanged for such interests in such Global Security.

 

(iii)                 If any Global Security is to be
exchanged for other Securities or cancelled in whole, it shall be surrendered
by or on behalf of the Depositary or its nominee to the Trustee, as Securities
Registrar, for exchange or cancellation, as provided in this Article. If any
Global Security is to be exchanged for other Securities or cancelled in part,
or if another Security is to be exchanged in whole or in part for a beneficial
interest in any Global Security, in each case, as provided in Article 2 of
this Indenture, then either (A) such Global Security shall be so surrendered
for exchange or cancellation, as provided in this Article, or (B) the
principal amount thereof shall be reduced or increased by an amount equal to
the portion thereof to be so exchanged or cancelled, or equal to the principal
amount of such other Security to be so exchanged for a beneficial interest
therein, as the case may be, by means of an appropriate adjustment made on the
records of the Trustee, as Securities Registrar, whereupon the Trustee, in
accordance with the Applicable Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security, the Trustee shall,
subject to this Article, authenticate and deliver any Securities issuable in
exchange for such Global Security (or any portion thereof) to or upon the order
of, and registered in such names as may be directed by, the Depositary or its
authorized representative. The Trustee shall be entitled to receive from the
Depositary the names, addresses and tax identification numbers of the Persons
in whose name the Securities are to be registered prior to such authentication
and delivery. Upon the request of the Trustee in connection with the occurrence
of any of the events specified in the preceding paragraph, the Company shall
promptly make available to the Trustee a reasonable supply of Securities that
are not in the form of Global Securities. The Trustee shall be entitled to rely
upon any order, direction or request of the Depositary or its authorized
representative which is given or made pursuant to this Article if such
order, direction or request is given or made in accordance with the Applicable
Procedures (to the extent such procedures are applicable to such direction or
request).

 

(iv)                Every Security authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Security or any portion thereof, whether pursuant to this Article or
otherwise, shall be authenticated and delivered in the form of, and shall be, a
registered Global Security, unless such Security is registered in the name 

 

42

 

of a Person other than the
Depositary for such Global Security or a nominee thereof, in which case such
Security shall be authenticated and delivered in accordance with clause (b) of
this Section 3.03.

 

(v)                   The Depositary or its nominee, as
registered owner of a Global Security, shall be the Holder of such Global
Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant
to the Applicable Procedures. Accordingly, any such owner’s beneficial interest
in a Global Security shall be shown only on, and the transfer of such interest
shall be effected only through, records maintained by the Depositary or its
nominee or its Agent Members and such owners of beneficial interests in a
Global Security shall not be considered the owners or holders thereof.

 

(b)                       Non-Global Securities. Securities issued
upon the events described in Section 3.03(a)(ii) shall be in
definitive, fully registered form, without interest coupons.

 

Section 3.04.  Execution, Authentication,
Delivery and Dating.

 

The
Securities shall be executed on behalf of the Company by its Chairman of the
Board, Vice Chairman of the Board, Chief Executive Officer, Chief Financial
Officer, President or one of its Vice Presidents, Treasurer or Assistant
Treasurer. The signature of any of these officers on the Securities may be
manual or facsimile.

 

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

 

At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities executed by the Company to the
Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities as in
this Indenture provided and not otherwise.

 

Each
Security shall be dated the date of its authentication.

 

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

 

43

 

authenticated
and delivered hereunder. Notwithstanding the foregoing, if any Security shall
have been authenticated and delivered hereunder but never issued and sold by
the Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 3.10, for all purposes of this
Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

The
Company may, subject to Article 10 of this Indenture and applicable law,
issue Additional Securities under this Indenture; provided,
however, that the Company may not issue
Additional Securities if an Event of Default with respect to any Outstanding
Securities shall have occurred and be continuing at the time of such issuance
and provided, further, that no Additional Securities shall be issued under, or
represented by, the same CUSIP as the Initial Securities unless and until such
Additional Securities are fungible with the Initial Securities for U.S. federal
income tax and U.S. federal securities law purposes. All Securities issued
under this Indenture shall be treated as a single class for all purposes under
this Indenture.

 

Section 3.05.  Temporary Securities.

 

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

 

If
temporary Securities are issued, the Company will cause definitive Securities
to be prepared without unreasonable delay. After the preparation of definitive
Securities, the temporary Securities shall be exchangeable for definitive
Securities upon surrender of the temporary Securities at any office or agency
of the Company designated pursuant to Section 10.02, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of
authorized denominations. Until so exchanged the temporary Securities shall in
all respects be entitled to the same benefits under this Indenture as
definitive Securities.

 

Section 3.06.  Registrar, Registration of
Transfer and Exchange; Paying Agent.

 

(a)                        Registrar.  The Company shall cause to be kept at the
Corporate Trust Office of the Trustee a register (the register maintained in
such office and in any other office or agency designated pursuant to Section 10.02
being herein

 

44

 

sometimes
collectively referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and for the transfers
or exchange of Securities. Such Security Register shall distinguish between
Initial Securities and Additional Securities to the extent that such Securities
are not fungible in all respects. The Trustee is hereby appointed “Security
Registrar” for the purpose of registering Securities and transfers and
exchanges of Securities as herein provided. The Company may change the Security
Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act as Security Registrar.

 

Upon
surrender for registration of transfer of any Security at an office or agency
of the Company designated pursuant to Section 10.02 for such purpose, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
any authorized denomination, provided that such denomination is a minimum of
$1,000 or an integral multiple thereof, and of a like aggregate principal
amount, each such Security bearing such restrictive legends as may be required
by this Indenture.

 

At
the option of the Holder and subject to the other provisions of this Section 3.06
and to Section 3.10, Securities may be exchanged for other Securities of
any authorized denominations and of a like tenor and aggregate principal
amount, upon surrender of the Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.

 

All
Securities issued upon any registration of transfer or exchange of Securities
shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

 

Every
Security presented or surrendered for registration of transfer or for exchange
shall (if so required by the Company or the Trustee) be duly endorsed, or be
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed, by the Holder thereof or his
attorney duly authorized in writing.  As
a condition to the registration of transfer of any Restricted Securities, the
Company or the Trustee may require evidence satisfactory to them as to the
compliance with the restrictions set forth in the legend of such Securities.

 

Except
as provided in the following sentence and in Section 3.10, all Securities
originally issued hereunder and all Securities issued upon registration of
transfer or exchange or replacement thereof shall be Restricted Securities and
shall bear the legend required by Section 2.02, unless the Company shall
have delivered to the Trustee (and the Security Registrar, if other than the
Trustee) a

 

45

 

Company
Order stating that the Security is not a Restricted Security and may be issued
without such legend thereon.  The Company
agrees for the benefit of the Holders that upon any request in writing as
promptly as practicable but in any event within three Business Days of receipt
of such written request and, in any event, on the day that is one year
following the last date of original issuance of the Securities (including
through the exercise of the Initial Purchasers’ option to purchase additional
Securities), to deliver a Company Order stating that the Security is not a
Restricted Security and may be issued without a legend thereon and thereafter
cause the Securities to be represented by a certificate bearing a CUSIP number
that represents that a person who is not an affiliate of the Company pursuant
to Rule 144 (or any successor provision thereto) can resell such
Securities without any volume or manner of sale restrictions thereunder.  Securities that are issued upon registration
of transfer of, or in exchange for, Securities that are not Restricted
Securities shall not be Restricted Securities and shall not bear such legend.

 

No
service charge shall be made for any registration of transfer or exchange of
Securities, but the Trustee or the Security Registrar may require payment of a
sum sufficient to cover any transfer tax or other similar governmental charge
payable in connection therewith, other than exchanges pursuant to Section 3.04,
Section 9.06 or Section 12.02 not involving any transfer.

 

(b)                       Restrictions
on Transfer.  Beneficial
ownership of every Restricted Security shall be subject to the restrictions on
transfer provided in the legend required to be set forth on the face of each
Restricted Security pursuant to Section 2.02, unless such restrictions on
transfer shall be terminated in accordance with this Section 3.06(b) or
Section 3.10.  The Holder of each
Restricted Security, by such Holder’s acceptance thereof, agrees to be bound by
such restrictions on transfer.

 

The
restrictions imposed by this Section 3.06 and by Section 2.02 and Section 3.10
upon the transferability of any particular Restricted Security shall cease and
terminate upon such Restricted Security having been sold pursuant to an
effective Resale Registration Statement under the Securities Act or transferred
in compliance with Rule 144 under the Securities Act (or any successor
provision thereto).  Any Restricted
Security as to which the restrictions on transfer shall have expired in
accordance with their terms or shall have terminated may, upon surrender of
such Restricted Security for exchange to the Security Registrar in accordance
with the provisions of this Section 3.06, be exchanged for a new Security,
of like tenor and aggregate principal amount, which shall not bear the
restrictive legend required by Section 2.02.  The Company shall inform the Trustee in
writing of the effective date of any Resale 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 resale
registration statement.

 

46

 

Prior
to the first anniversary of the last date of original issuance of the
Securities (including through the exercise of the Initial Purchasers’ option to
purchase additional Securities), the Securities may not be sold by any
affiliate (within the meaning of Rule 144 under the Securities Act) of the
Company, except pursuant to an effective registration statement or in compliance
with Rule 144.

 

As
used in the preceding three paragraphs of this Section 3.06, the term “transfer” encompasses any sale, pledge, transfer or other
disposition of any Restricted Security.

 

(c)                        Paying
Agent.  The Company shall maintain an
office or agency in New York, New York where Securities may be presented for
payment (the “Paying Agent”). The Company
initially appoints the Trustee as Paying Agent for the Securities. The Company
may have one or more additional paying agents and the term “Paying Agent” shall
include any such additional paying agent.

 

The
Company shall enter into an appropriate agency agreement with any Paying Agent
not a party to this Indenture, which shall incorporate the terms of the Trust
Indenture Act, except in the case of a Paying Agent that acts as Paying Agent
solely in connection with an offer to purchase the Securities pursuant to Article 10
of 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 each such agent. If the Company fails to maintain a
Paying Agent, the Trustee shall act as such and shall be entitled to
compensation therefor pursuant to Section 6.07. The Company or any
Subsidiaries may act as Paying Agent.

 

The
Company may remove any Paying Agent upon written notice to such Paying Agent
and to the Trustee; provided, however, that no such removal shall become effective until (i) acceptance
of any appointment by a successor as evidenced by an appropriate agreement
entered into by the Company and such successor Paying Agent, as the case may
be, and delivered to the Trustee or (ii) notification to the Trustee that
the Trustee or the Company shall serve as Paying Agent until the appointment of
a successor in accordance with clause (i) above. The Paying Agent may
resign at any time upon written notice to the Company and the Trustee.

 

(d)                       Paying
Agent to Hold Money in Trust.  By no later than 10:00 a.m., New York
City time, on the date on which any principal of or interest and Additional
Interest, if any, on any Security is due and payable, the Company shall deposit
with the Paying Agent a sum sufficient in immediately available funds to pay
such principal or interest (including any Additional Interest), when due. The
Company shall require each Paying Agent (other than the Trustee) to agree in
writing that such Paying Agent shall hold in trust for the benefit of Security
holders or the Trustee all money held by such Paying Agent for the payment of

 

47

 

principal
of or interest (including any Additional Interest), on the Securities and shall
notify the Trustee in writing of any default by the Company in making any such
payment. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent (other than the
Trustee) to pay all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent. Upon complying with this Section 3.06, the
Paying Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money delivered to the Trustee. Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Securities.

 

(e)                        Custodian.  The Company hereby appoints the Trustee as
Custodian with respect to any Global Securities.

 

Section 3.07.  Mutilated, Destroyed, Lost and
Stolen Securities.

 

If
any mutilated Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

If
there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and the Trustee shall authenticate and deliver, in
lieu of any such destroyed, lost or stolen Security, a new Security of like
tenor and principal amount and 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, the Company in its discretion may, instead of
issuing a new Security, pay such Security.

 

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

 

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

 

48

 

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

 

Section 3.08.  Payment of Interest; Interest
Rights Preserved.

 

Interest
on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at 5:00 p.m.,
New York City time, on the Regular Record Date for such interest.

 

In
the case of Securities represented by a Global Security registered in the name
of or held by a Depositary or its nominee, payment of principal and interest
(including Additional Interest), if any, will be made to the Depositary or its
nominee, as the case may be, as the registered owner or Holder of such Global
Security.  None of the Company, the
Trustee and the Paying Agent, any Authenticating Agent or the Security
Registrar for such Securities will have any responsibility or liability for any
aspect of the records relating to or payments made on account of a beneficial
ownership interest in a Global Security or maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

 

Subject
to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any
other Security shall carry the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Security.

 

Subject
to the provisions of Article 12 hereof, in the case of any Security which
is converted after 5:00 p.m., New York City time, on any Regular Record
Date and on or prior to the next succeeding Interest Payment Date, interest
whose Stated Maturity is on such Interest Payment Date shall be payable on such
Interest Payment Date notwithstanding such conversion, and such interest
(whether or not punctually paid or duly provided for) shall be paid to the
Person in whose name that Security (or one or more Predecessor Securities) is
registered at 5:00 p.m., New York City time, on such Regular Record Date.
Except as otherwise expressly provided in the immediately preceding sentence or
in Article 12 hereof, in the case of any Security (or any part thereof)
which is converted, interest whose Stated Maturity is after the Conversion Date
of such Security (or any part thereof) shall not be payable (except with
respect to that part of the Security that is not converted).

 

Section 3.09.  Persons Deemed Owners.

 

Prior
to due presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of principal of and (subject to Section 3.08)

 

49

 

interest
on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

 

In
the case of a Global Security, so long as the Depositary for such Global
Security, or its nominee, is the registered owner of such Global Security, such
Depositary or such nominee, as the case may be, will be considered the sole
owner or Holder of the Securities represented by such Global Security for all
purposes under this Indenture. Except as provided in Section 3.06, owners
of beneficial interests in a Global Security will not be entitled to have
Securities that are represented by such Global Security registered in their
names, will not receive or be entitled to receive physical delivery of such
Securities in definitive form and will not be considered the owners or Holders
thereof under this Indenture.

 

Notwithstanding
the foregoing, with respect to any Global Security, 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 a Depositary or (b) impair, as between a Depositary and
holders of beneficial interest in any Global Security, the operation of
customary practices governing the exercise of the rights of the Depositary as
Holder of such Global Security.

 

Section 3.10.  Cancellation and Transfer
Provisions.

 

(a)                        All Securities
surrendered for payment, repurchase, registration of transfer or exchange or
conversion shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it.  The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture. All cancelled Securities held
by the Trustee shall be disposed of in accordance with its customary
procedures. Copies of all cancelled Securities shall be provided to the Company
by the Trustee, promptly following cancellation of such Securities.

 

(b)                       Transfers
to QIBs.  The following provisions shall
apply with respect to the registration of any proposed transfer of a Security
constituting a Restricted Security to a QIB:

 

(i)                                     the Security Registrar shall
register the transfer if such transfer is being made by a proposed transferor
who has checked the box provided for on the form of Security stating, or has
otherwise advised the

 

50

 

Company and the Security Registrar in writing, that the sale has been
made in compliance with the provisions of Rule 144A to a transferee who
has signed the certification provided for on the form of Security stating, or
has otherwise advised the Company and the Security Registrar in writing, that
it is purchasing the Security for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a QIB within the meaning of Rule 144A, and is aware that the sale to it
is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as it has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon its foregoing representations in
order to claim the exemption from registration provided by Rule 144A; and

 

(ii)                                  if the proposed transferee
is an Agent Member, and the Securities to be transferred consist of non-Global
Securities which after transfer are to be evidenced by an interest in the
Global Security, upon receipt by the Security Registrar of instructions given
in accordance with the Depositary’s and the Security Registrar’s procedures,
the Security Registrar shall reflect on its books and records the date and an
increase in the principal amount of the Global Security in an amount equal to
the principal amount of the non-Global Securities to be transferred, and the Trustee
shall cancel the non-Global Securities so transferred.

 

(c)                                  Private
Placement Legend.  Upon the
registration of transfer, exchange or replacement of Securities not bearing the
legend required by Section 2.02, the Security Registrar shall deliver Securities
that do not bear such legends.  Upon
registration of transfer, exchange or replacement pursuant to an effective
Resale Registration Statement as contemplated by the Registration Rights
Agreement or upon the Securities becoming, and during the period the Securities
remain, eligible for resale by non-affiliates pursuant to Rule 144 without
any volume or manner of sale restrictions, upon the registration of transfer,
exchange or replacement of Securities bearing the legend required by Section 2.02,
the Security Registrar shall deliver Securities that do not bear such legends
and, in any event, on the day that is one year following the last date of
original issuance of the Securities (including through the exercise of the
Initial Purchasers’ option to purchase additional Securities), to deliver a
Company Order stating that the Security is not a Restricted Security and may be
issued without a legend thereon and thereafter cause the Securities to be
represented by a certificate bearing a CUSIP number that represents that a
person who is not an affiliate of the Company pursuant to Rule 144 (or any
successor provision thereto) can resell such Securities without any volume or
manner of sale restrictions thereunder.

 

(d)                                 General.  By its acceptance of any Security bearing the
legend required by Section 2.02, each Holder of such a Security
acknowledges the restrictions on transfer of such Security set forth in this
Indenture and in such

 

51

 

legends
and agrees that it will transfer such Security only as provided in this
Indenture.  None of the Company or any
Subsidiary of the Company shall purchase or sell any Security after the date
hereof, except as required under the terms of this Indenture.

 

The
Security Registrar shall retain, in accordance with its customary procedures,
copies of all letters, notices and other written communications received
pursuant to this Section 3.10.  The
Company shall have the right to inspect and make copies of all such letters,
notices or other written communications at any reasonable time upon the giving
of reasonable written notice to the Security Registrar.

 

Section 3.11.  CUSIP Numbers.

 

The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use CUSIP numbers in all notices to Holders
as a convenience to Holders of the Securities; 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 on such
notice and that reliance may be placed only on the other identification numbers
printed on the Securities. The Company will promptly notify the Trustee in
writing of any change in the CUSIP numbers.

 

Section 3.12.  Computation of Interest.

 

Interest
on the Securities shall be computed on the basis of a 360-day year of twelve
30-day months.

 

Section 3.13.  Special Record Date.

 

Any
interest on any Security that is payable but not punctually paid or duly
provided for on any Interest Payment Date (“Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of his, her or its having been such a
Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in clause (a) or (b) below:

 

(a)                        The Company may
elect to make payment of any Defaulted Interest to Holders in whose names the
Securities are registered at 5:00 p.m., New York City time, on a special
record date for the payment of such Defaulted Interest (a “Special
Record Date”), which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the Defaulted Interest proposed
to be paid on each Security and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for

 

52

 

the
benefit of the Holders entitled to such Defaulted Interest as in this clause
provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 calendar days and
not less than 10 calendar days prior to the date of the proposed payment and
not less than 10 calendar days after the receipt by the Trustee of the notice
of the proposed payment. The Trustee shall promptly notify the Company of such
Special Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to the Holders
of the Securities at their addresses as they appear in the Security Register,
or by such other means reasonably acceptable to such Holders, not less than 10
calendar days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor having been
mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in
whose names the Securities (or their predecessor Securities) are registered at
5:00 p.m., New York City time, on such Special Record Date and shall no
longer be payable pursuant to the following clause (b).

 

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

 

ARTICLE 4

SATISFACTION AND
DISCHARGE

 

Section 4.01.  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 the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(a)                        either

 

(i)                       all Securities
theretofore authenticated and delivered (other than (A) Securities which
have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 3.07 and (B) Securities for whose payment money
has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 10.03) have been delivered to the Trustee for
cancellation; or

 

53

 

(ii)                             all such
Securities not theretofore delivered to the Trustee for cancellation

 

(A)                     have become due and payable,
and

 

(B)                       the Company has
deposited or caused to be deposited with the Trustee as trust funds in trust
for the purpose, lawful money of the United States, shares of Common Stock (or
Reference Property) or the appropriate combination of lawful money of the
United States and shares of Common Stock (or Reference Property) in amounts
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, sufficient to pay all
amounts which have become due and payable at Stated Maturity or Fundamental
Change Repurchase Date or following conversion, as the case may be;

 

(b)                       the Company has
paid or caused to be paid all other sums payable hereunder by the Company; and

 

(c)                        the Company has
delivered to the Trustee an Officer’s 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 6.07, the obligations of the Trustee
to any Authenticating Agent under Section 6.14 and, if money or Common
Stock (or Reference Property) shall have been deposited with the Trustee
pursuant to subclause (ii) of Clause (a) of this Section, the
obligations of the Trustee under Section 4.02 and the last paragraph of Section 10.03
shall survive.

 

Section 4.02.  Application of Trust Money.

 

Subject
to the provisions of the last paragraph of Section 10.03, all funds and/or
Common Stock (or Reference Property) deposited with the Trustee pursuant to Section 4.01
shall be held in trust and applied by it, in accordance with the provisions of
the Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal and
interest or in settlement of the Company’s conversion obligations, as the case
may be.

 

54

 

ARTICLE 5

REMEDIES

 

Section 5.01.  Events of
Default.

 

Each of the following is an “Event of Default”:

 

(a)                                  default in any
payment of interest (including Additional Interest), with respect to, any
Security when due and payable and such default continues for a period of 30 days;

 

(b)                                 default in the
payment of principal of any Security when due and payable at its Stated
Maturity, upon required repurchase, upon acceleration or otherwise;

 

(c)                                  failure by the
Company to comply with its obligations under Article 12 hereof to convert
Securities into Common Stock and/or cash or Reference Property, as applicable;

 

(d)                                 failure by the
Company to comply with its notice obligations under Article 11;

 

(e)                                  failure by the
Company to comply for 60 days after written notice the Trustee or the Holders
of at least 25% principal amount of the Securities then outstanding has been
received by the Company to comply with any of the Company’s other agreements
contained in the Securities or this Indenture; provided, however, that the Company shall have 90 days after receipt of such
notice to remedy, or receive a waiver for, any failure to comply with its
obligations to file its annual, quarterly and current reports in accordance
with the covenant described under Section 7.04 or to comply with Section 314(a)(1) of
the Trust Indenture Act so long as the Company is attempting to cure such
failure as promptly as reasonably practicable;

 

(f)                                    failure by the
Company or any majority-owned Subsidiary to pay any Indebtedness within any
applicable grace period after final maturity, or the acceleration of any such
Indebtedness by the holders thereof because of a default, if, in each case, the
total amount of such Indebtedness unpaid or accelerated exceeds £50 million or
its equivalent in another currency;

 

(g)                                 the rendering
of any judgment or decree for the payment of money in excess of £50 million or
its equivalent in another currency against the Company or any majority-owned
Subsidiary if such judgment or decree remains outstanding for a period of 60
days following such judgment or decree and is not discharged, waived or stayed
before the end of such period; or

 

(h)                                 (A) a
proceeding is commenced seeking a decree or order for (i) relief in
respect of the Company or a Significant Subsidiary in an involuntary case under
any applicable Bankruptcy Law, (ii) appointment of a receiver, liquidator,

 

55

 

assignee,
custodian, trustee, examiner, administrator, sequestration or similar official
of the Company or a Significant Subsidiary or for all or substantially all of
the property and assets of the Company or a Significant Subsidiary or (iii) the
winding up or liquidation of the affairs of the Company or a Significant
Subsidiary (other than, except in the case of the Company, a solvent winding up
or liquidation in connection with a transfer of assets among the Company and
its Subsidiaries) and, in each case, such proceeding shall remain unstayed and
in effect for a period of 30 consecutive days; or (B) the Company or a
Significant Subsidiary (i) commences a voluntary case (including taking
any action for the purpose of winding up) under any applicable Bankruptcy Law,
or consents to the entry of an order for relief in an involuntary case under
any such law, (ii) consents to the appointment of or taking possession by
a receiver, liquidator, assignee, custodian, trustee, examiner, administrator,
sequestration or similar official of the Company or a Significant Subsidiary or
for all or substantially all of the property and assets of the Company or a
Significant Subsidiary or (iii) effects any general assignment for the
benefit of creditors.

 

The
foregoing will constitute Events of Default whatever the reason for any such
Event of Default and whether it is voluntary or involuntary or is effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body.

 

Section 5.02.  Acceleration of Maturity;
Rescission and Annulment.

 

Upon
obtaining knowledge of the occurrence of an Event of Default, the Company shall
promptly notify the Trustee in writing. 
If an Event of Default occurs and is continuing, then and in every such
case except as provided below, the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Securities may declare 100% of the
principal of and accrued and unpaid interest (including Additional Interest) on
all the Securities to be due and payable immediately, by a notice in writing to
the Company (and to the Trustee if given by Holders), and upon any such
declaration such principal shall become immediately due and payable. However,
upon an Event of Default arising out of Section 5.01(h) with respect
to the Company the principal of all the Securities, plus accrued and unpaid
interest (including Additional Interest, if any) to the acceleration date,
shall be due and payable immediately without notice from the Trustee or
Holders.

 

Notwithstanding
the foregoing, at the election of the Company, the sole remedy for the failure
by the Company to comply with its obligations under Section 314(a)(1) of
the Trust Indenture Act relating to the Company’s failure to file any documents
or reports that the Company is required to file with the SEC pursuant to Section 13
or 15(d) of the Exchange Act or of its covenants set forth in Section 7.04
(any such default, a “Reporting Default”),
shall for the first 120 calendar days after the occurrence of such a default
consist exclusively of the right (the “Extension Right”)
to receive an extension fee on the Securities equal 

 

56

 

to
0.25% of the principal amount of the Securities (the “Extension
Fee”). If the Company so elects, the Extension Fee shall be payable
on all Outstanding Securities from the date on which the Reporting Default
first occurs in accordance with this Section 5.02.  On the 121st day after such
Reporting Default (if such violation is not cured or waived prior to such 121st
calendar day), then the principal of and accrued and unpaid interest (including
Additional Interest, if any) on all such Securities shall become due and
payable immediately provided that the Trustee or the Holders of n ot less than
25% in principal amount of the Outstanding Securities shall have previously provided
a notice of default.  The applicable
grace period set forth in Section 5.01(e) shall be tolled until such
121st day provided that the Company is otherwise in compliance with
the terms of the Extension Right set forth in this Section 5.02.  In the event the Company does not elect to
pay the Extension Fee upon any such default in accordance with this  Section 5.02, the Securities will be
subject to acceleration as provided in the first paragraph of this Section 5.02.

 

If
the Company elects to pay the Extension Fee as the sole remedy for the
Reporting Default, the Company shall (i) notify in writing, by a
certificate, the Holders, the Paying Agent and the Trustee of such election at
any time on or before 5:00 p.m., New York City time, on the first Business
Day following the date on which a Reporting Default first occurs and (ii) thereafter
pay the Extension Fee or Fees on the next succeeding Interest Payment Date or
Dates.  Unless and until a Responsible
Officer of the Trustee receives at the Corporate Trust Office such a
certificate, the Trustee may assume without inquiry that the Extension Fee is
not payable. If the Extension Fee has been paid by the Company directly to the
Persons entitled to it, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment.

 

Notwithstanding
the foregoing, if an event of default occurs under any series of the Company’s
debt securities (other than the Securities ) issued subsequent to the Issue
Date resulting from the Company’s failure to comply with its obligations under Section 314(a)(1) of
the Trust Indenture Act relating to the Company’s failure to file any documents
or reports that the Company is required to file with the SEC pursuant to Section 13
or 15(d) of the Exchange Act, and such event of default is not subject to
extension on terms similar to those set forth in the foregoing paragraph and
results in the principal amount of such debt securities becoming due and
payable, then the Extension Right shall no longer apply and the Securities
shall be subject to acceleration as provided in the first paragraph of this Section 5.02.

 

This
Section 5.02, however, is subject to the conditions that if, at any time
after the principal of the Securities shall have been so declared due and payable,
and before any judgment or decree for the payment of the monies due shall have
been obtained or entered as hereinafter provided, the Company shall pay or
shall deposit with the Trustee a sum sufficient to pay installments of accrued
and unpaid interest upon all Securities and the principal of any and all
Securities that 

 

57

 

shall
have become due otherwise than by acceleration (with interest on overdue
installments of accrued and unpaid interest (including Additional Interest, if
any) to the extent that payment of such interest is enforceable under
applicable law) at the rate borne by the Securities during the period of such
default), and if (a) rescission would not conflict with any judgment or
decree of a court of competent jurisdiction and (b) any and all Events of
Default under this Indenture with respect to such Securities, other than the
nonpayment of principal of and accrued and unpaid interest (including
Additional Interest, if any) on such Securities or failure to deliver amounts
due upon conversion that shall have become due solely by such acceleration,
shall have been cured or waived pursuant to Section 5.13, then and in
every such case the Holders of a majority in aggregate principal amount of the
Outstanding Securities, by written notice to the Company and to the Trustee,
may waive all defaults or Events of Default with respect to the Securities
(other than with respect to the nonpayment of principal of and accrued and
unpaid interest (including Additional Interest, if any, or failure to deliver
amounts due upon conversion) on such Securities) and rescind and annul such
declaration and its consequences and such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver or rescission and annulment shall
extend to or shall affect any subsequent default or Event of Default, or shall
impair any right consequent thereon.

 

Section 5.03.  Collection of Indebtedness and
Suits for Enforcement by Trustee.

 

The
Company covenants that if

 

(a)                        default is made
in the payment of any interest (including Additional Interest, if any) on any
Security when such interest becomes due and payable and such default continues
for a period of 30 days, or

 

(b)                       default is made
in the payment of the principal of any Security at the Maturity thereof,

 

the
Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and interest (including Additional Interest, if any),
and, to the extent that payment of such interest shall be legally permissible,
interest on any overdue principal and on any overdue interest, at the rate
borne by the Securities, and, in addition thereto, 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.

 

If
an Event of Default occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders by such
appropriate judicial proceedings as the Trustee shall deem most effectual to 

 

58

 

protect
and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.

 

Section 5.04.  Trustee May File Proofs
of Claim.

 

In
case of any judicial proceeding relative to the Company (or any other obligor
upon the Securities), its property or its creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, to
take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official 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 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 6.07.

 

No
provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

Section 5.05.  Trustee May Enforce Claims
Without Possession of Securities.

 

All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

Section 5.06.  Application of Money
Collected.

 

Subject
to Article 12, any money or property money collected by the Trustee
pursuant to this Article shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal or interest, upon presentation of the Securities
and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:

 

59

 

FIRST: To the payment of all
amounts due the Trustee under Section 6.07;

 

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

 

THIRD: The balance, if any,
to the Company or an other Person or Persons entitled thereto.

 

Section 5.07.  Limitation
on Suits.

 

Subject to Section 5.08,
no Holder of any Security shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment
of a receiver or trustee, or for any other remedy hereunder, unless

 

(a)                       such Holder has previously given written
notice to the Trustee of a continuing Event of Default;

 

(b)                      the Holders of not less than 25% in principal
amount of the Outstanding Securities shall have made written request to the
Trustee to institute proceedings or to pursue any other remedy in respect of
such Event of Default in its own name as Trustee hereunder;

 

(c)                       such Holder or Holders have offered to the
Trustee security or indemnity satisfactory to it against the losses, liabilities
and expenses to be incurred in compliance with such request;

 

(d)                      the Trustee has not complied with such
written request within 60 days of such request and offer of security or
indemnity has failed to institute any such proceeding; and

 

(e)                       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 principal amount of the Outstanding Securities;

 

it being understood and
intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other Holders, or to obtain or
to seek to obtain priority or preference over any other Holders or to enforce
any right under this Indenture, except in the manner herein provided and for
the equal and ratable benefit of all the Holders.

 

60

 

Section 5.08. 
Unconditional Right of Holders to Receive Principal and Interest and to
Convert.

 

Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of and
(subject to Section 3.08) interest (including Additional Interest, if any)
on such Security on the respective Stated Maturities expressed in such Security
and to convert such Security in accordance with Article 12 and to
institute suit for the enforcement of any such payment and right to convert,
and such rights shall not be impaired without the consent of such Holder.

 

Section 5.09.  Restoration
of Rights and Remedies.

 

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

 

Section 5.10.  Rights and
Remedies Cumulative.

 

Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities in the last paragraph of Section 3.07, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

Section 5.11.  Delay or
Omission Not Waiver.

 

No delay or omission of the
Trustee or of any Holder of any Security to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or
to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee (subject to the limitations contained in this
Indenture) or by the Holders, as the case may be.

 

61

 

Section 5.12.  Control by
Holders.

 

The Holders of a majority in
principal amount of the Outstanding Securities shall have the right to 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 the
Trustee, provided that

 

(a)                       such direction shall not be in conflict with
any rule of law or with this Indenture,

 

(b)                      the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction or this
Indenture, and

 

(c)                       the Trustee shall have been provided with
indemnity satisfactory to it in its sole discretion.

 

Section 5.13.  Waiver of
Past Defaults.

 

The Holders of not less than
a majority in principal amount of the Outstanding Securities may on behalf of
the Holders of all the Securities waive any past default hereunder and its
consequences, except a default

 

(a)                       in the payment of the principal of or
interest (including Additional Interest, if any) on any Security or in the
performance of the Company’s obligation to convert Securities and deliver cash,
Common Stock and/or Reference Property due upon conversion, or

 

(b)                      in respect of a covenant or provision hereof
which under Article 9 cannot be modified or amended without the consent of
the Holder of each Outstanding Security affected.

 

Upon any waiver, such
default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right
consequent thereon.

 

The Holders of not less than
a majority in principal amount of the Outstanding Securities may on behalf of
the Holders of all the Securities rescind any acceleration with respect to the
Securities and its consequences if (1) rescission would not conflict with
any judgment or decree of a court of competent jurisdiction and (2) all
existing Events of Default, other than the uncured nonpayment of the principal
of and interest (including Additional Interest, if any) on the Securities or
failure to deliver amounts due upon conversion that have become due solely by
such declaration of acceleration, have been cured or waived.

 

62

 

Section 5.14.  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, suffered or omitted by it as Trustee, a court
may require any party litigant in such suit to file an undertaking to pay the
costs of such suit, and may assess costs against any such party litigant, in
the manner and to the extent provided in the Trust Indenture Act; provided, that neither this Section nor
the Trust Indenture Act shall be deemed to authorize any court to require such
an undertaking or to make such an assessment in any suit instituted by the
Company or in any suit for the enforcement of the right to convert any Security
in accordance with Article 12.

 

Section 5.15.  Waiver of
Stay or Extension Laws.

 

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

 

ARTICLE 6

THE TRUSTEE

 

Section 6.01.  Certain
Duties and Responsibilities.

 

The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture
Act. Notwithstanding the foregoing, 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, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it. Whether or not
therein expressly so provided, every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section. No provision of
this Indenture shall be construed to relieve the Trustee from liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct, subject to the succeeding paragraph and Section 6.03; provided
that (a) the Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer unless it is proved that the Trustee was
negligent in ascertaining the pertinent facts and (b) the Trustee shall
not be 

 

63

 

liable with respect to any
action it takes or omits to take in good faith with a direction received by it
pursuant to Section 5.12.

 

In case an Event of Default
has occurred (which has not been cured or waived), 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 their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of its own affairs.  The Trustee, however, may refuse to follow
any direction that conflicts with law or this Indenture, or that would require
it to expend its own funds or involve the Trustee in personal liability if it
shall in its sole discretion believe that repayment of such funds or adequate indemnity
against such risk is not assured to it. 
Prior to taking any action under this Indenture, the Trustee will be
entitled to indemnification or security satisfactory to it in its sole
discretion against all losses, liabilities and expenses caused by taking or not
taking such action.

 

Section 6.02.  Notice of
Defaults.

 

The Trustee shall give the
Holders notice of any default known to the Trustee that has occurred and is
continuing hereunder within 90 days after such default has occurred. Except in
the case of the default in the payment of principal of or interest (including
Additional Interest, if any) on any Security or conversion default, the Trustee
need not deliver the notice if and so long as a committee of trust officers of
the Trustee in good faith determines that withholding the notice is in the
interests of Holders. In addition, the Trustee shall give the Holders of
Securities notice of any default actually known to it as and to the extent
provided by the Trust Indenture Act. The term “default” means any event which
is, or after notice or lapse of time or both would become, an Event of Default.

 

Section 6.03.  Certain
Rights of Trustee.

 

Subject to the provisions of
Section 6.01:

 

(a)                    the Trustee may rely and shall be protected
in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

 

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

 

(c)                    whenever in the administration of this
Indenture the Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein

 

64

 

specifically prescribed)
may, for any action it takes or omits to take in good faith, rely upon an
Officer’s Certificate;

 

(d)                   the Trustee may consult with counsel on any
matter relating to the Indenture or the Securities and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;

 

(e)                    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 reasonable security or indemnity
against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

 

(f)                      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 (acting reasonably), may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall reasonably determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney at the sole expense of the
Company upon giving reasonable prior written notice to the Company, and the
Trustee shall incur no liability of any kind by reason of such investigation;

 

(g)                   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

 

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

 

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

 

(j)                       in no event shall the Trustee be responsible
or liable for special, indirect or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of
whether the Trustee has been advised of the likelihood of such loss or damage
and regardless of the form of action.

 

65

 

Section 6.04.  Not
Responsible for Recitals or Issuance of Securities.

 

The recitals contained
herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by
the Company of Securities or the proceeds thereof.

 

Section 6.05.  May Hold
Securities.

 

The Trustee, any
Authenticating Agent, any Paying Agent, any Conversion Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Section 6.08
and Section 6.13, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Conversion Agent, Security Registrar or such other agent.

 

Section 6.06.  Money Held
in Trust.

 

Money held by the Trustee in
trust hereunder need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no liability for interest on any
money received by it hereunder except as may be otherwise agreed in writing
between the Company and the Trustee.

 

Section 6.07.  Compensation
and Reimbursement.

 

The Company agrees

 

(a)                    to pay to the Trustee from time to time
reasonable compensation as shall be agreed in writing between the Company and
the Trustee for all services, including any Agent capacity in which it acts
under this Indenture, rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of
an express trust);

 

(b)                   except as otherwise expressly provided
herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee (including with
respect to any other capacity in which it acts under this Indenture) and their
officers, directors and agents in accordance with any provision of this Indenture
(including the reasonable compensation and the reasonable expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence, bad faith or willful
misconduct; and

 

66

 

(c)                                  to indemnify the Trustee (including with
respect to any other capacity in which it acts under this Indenture and their
officers, directors and agents for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of this
trust, including the costs and expenses of defending itself against any claim
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 such claim for which the Trustee may
seek indemnity. The Trustee may have separate counsel and the Company shall pay
the reasonable fees and expenses of such counsel.

 

The Company further agrees,
to secure the Company’s payment obligations in this Section 6.07, that the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee.

 

Section 6.08.  Disqualification; Conflicting Interests.

 

If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Trustee shall either eliminate such interest or resign, to the extent and
in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture.

 

Section 6.09.  Corporate
Trustee Required; Eligibility.

 

The Trustee shall at all
times satisfy the requirement of Section 310(a) of the Trust
Indenture Act. There shall at all times be a Trustee hereunder which shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and
has a combined capital and surplus of at least $50,000,000. If such Person
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

Section 6.10.  Resignation
and Removal; Appointment of Successor.

 

(a)                    No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee
under Section 6.11.

 

(b)                   The Trustee may resign at any time by giving
written notice thereof to the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days
after the giving of such notice of resignation, the resigning Trustee may, at
the expense of the Company, petition any court of competent jurisdiction for
the appointment of a successor Trustee.

 

67

 

(c)                    The Trustee may be removed at any time by Act
of the Holders of a majority in principal amount of the Outstanding Securities,
delivered to the Trustee and to the Company.

 

(d)                   If at any time:

 

(i)                     the Trustee shall fail to comply with Section 6.08
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

 

(ii)                  the Trustee shall cease to be eligible under Section 6.09
and shall fail to resign after written request therefor by the Company or by
any such Holder, or

 

(iii)               the Trustee shall become incapable of acting
or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,

 

then, in any such case, (A) the
Company by a Board Resolution may remove the Trustee, or (B) subject to Section 5.14,
any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

(e)                    If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Securities delivered to the Company and the retiring Trustee,
the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed
by the Company or the Holders and accepted appointment in the manner
hereinafter provided, any Holder who has been a bona fide Holder of a Security
for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee. Notwithstanding replacement of the Trustee pursuant to this Section 6.10,
the Company’s obligations under Section 6.07 hereof shall continue for the
benefit of the retiring Trustee.

 

(f)                      The Company shall give notice of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee to all Holders

 

68

 

in the manner provided in Section 1.06.
Each notice shall include the name of the successor Trustee and the address of
its Corporate Trust Office.

 

Section 6.11.  Acceptance
of Appointment by Successor.

 

In case of the appointment
hereunder of a successor Trustee, such successor Trustee shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder. Upon the reasonable written
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts.

 

No successor Trustee shall
accept its appointment unless at the time of such acceptance such successor
Trustee shall be qualified and eligible under this Article.

 

Section 6.12.  Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or
substantially all the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

 

Section 6.13.  Preferential
Collection of Claims Against Company.

 

If and when the Trustee
shall be or become a creditor of the Company (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Company (or any
such other obligor).

 

69

 

Section 6.14.  Appointment
of Authenticating Agent.

 

The Trustee may appoint an
Authenticating Agent or Agents, reasonably acceptable to the Company, which shall
be authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer, partial
conversion or pursuant to Section 3.06, and Securities so authenticated
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee’s certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating
Agent shall be acceptable to the Company and shall at all times be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State authority. If such Authenticating Agent publishes reports of condition
at least annually, pursuant to law or to the requirements of said supervising
or examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

 

Any corporation into which
an Authenticating Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation
succeeding to all or substantially all the corporate agency or corporate trust
business of an Authenticating Agent, shall continue to be an Authenticating
Agent, provided such corporation shall be otherwise eligible under this
Section, without the execution or filing of any paper or any further act on the
part of the Trustee or the Authenticating Agent. 

 

An Authenticating Agent may
resign at any time by giving written notice thereof to the Trustee and to the
Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the
Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time such Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the
Company and shall deliver written notice of such appointment by first-class
mail, postage prepaid, to all Holders as their names and addresses appear in
the Security Register, or by such other means reasonably acceptable to 

 

70

 

such Holders. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions
of this Section.

 

The Trustee agrees to pay to
each Authenticating Agent from time to time reasonable compensation for its
services under this Section, and the Trustee shall be entitled to be reimbursed
for such payments by the Company, subject to the provisions of Section 6.07.

 

If an appointment is made
pursuant to this Section, the Securities may have endorsed thereon, in addition
to the Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:

 

	
   

  	
  This is one of the
  Securities described in the    

  
	
   

  	
  within-mentioned
  Indenture.

  
	
   

  	
   

  
	
   

  	
  The Bank of New York, 

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:    Authenticating
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:    Authorized
  Officer

  
				

 

Section 6.15.  USA Patriot
Act.

 

In order to comply with
laws, rules, regulations and executive orders in effect from time to time
applicable to banking institutions, including those relating to the funding of
terrorist activities and money laundering (“Applicable
Law”), The Bank of New York is required to obtain, verify and record
certain information relating to individuals and entities which maintain a
business relationship with The Bank of New York.  Accordingly, each of the parties agrees to
provide The Bank of New York upon its reasonable request from time to time such
identifying information and documentation as is in the possession of such
party, or is obtainable by such party with unreasonable burden or expense, in
order to enable The Bank of New York to comply with Applicable Law.

 

71

 

ARTICLE 7

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND
COMPANY

 

Section 7.01.  Company to
Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish or
cause to be furnished to the Trustee

 

(a)                   semi-annually, not more than 15 days after
each Regular Record Date, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of such Regular Record
Date, and

 

(b)                  at such other times as the Trustee may
request in writing, within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished;

 

excluding from any such list
names and addresses received by the Trustee in its capacity as Security
Registrar.

 

Section 7.02.  Preservation
of Information; Communications to Holders.

 

(a)                   The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 7.01
and the names and addresses of Holders received by the Trustee in its capacity
as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 7.01 upon receipt of a new list so furnished.

 

(b)                  The rights of Holders to communicate with
other Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and duties of the Trustee, shall be as
provided by the Trust Indenture Act.

 

(c)                   Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and
addresses of Holders made pursuant to the Trust Indenture Act.

 

Section 7.03.  Reports by
Trustee.

 

(a)                   The Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto.

 

72

 

(b)                  A copy of each such report shall, at the time
of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which the Securities are listed, with the Commission and with the
Company. The Company will notify the Trustee when the Securities are listed on
any stock exchange.

 

Section 7.04.  Reports by
Company.

 

The
Company shall file with the Trustee within 15 days after the same is so
required to be filed with the Commission any documents or reports required to
be filed with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act and shall otherwise comply with the requirements of Trust
Indenture Act Section 314(a); provided that any such information,
documents or reports filed or furnished with the Commission pursuant to its
Electronic Data Gathering, Analysis and Retrieval (or EDGAR) system shall be
deemed to be filed with the Trustee as of the time such information, documents
or reports are filed or furnished via EDGAR.

 

If at any time the Company
is not subject to Sections 13 or 15(d) of the Exchange Act, the Company
shall, so long as any of the Securities shall, at such time, constitute “Restricted
Securities” within the meaning of Rule 144(a)(3) under the Securities
Act, promptly furnish to the Trustee, each Holder, beneficial owner or
prospective purchaser of such Securities or the Common Stock issuable upon
conversion thereof, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act to facilitate the resale of such Securities pursuant to Rule 144A
under the Securities Act and to take such other actions as any such Person may
reasonably request, all to the extent required from time to time to enable such
Person to sell its Securities or Common Stock issuable upon conversion thereof
in accordance with Rule 144A under the Securities Act, as such rule may
be amended from time to time.

 

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 conclusively rely exclusively on an
Officer’s Certificate).

 

ARTICLE 8

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR
LEASE

 

Section 8.01.  Company May Consolidate,
Etc., Only on Certain Terms.

 

The Company shall not
consolidate with or merge with or into any other Person or convey, transfer or
lease all or substantially all of its properties and assets (excluding a pledge
of securities issued by any of the Company’s

 

73

 

Subsidiaries but including,
to the extent appropriate, any foreclosure on such pledged securities) to
another Person, unless:

 

(a)                   the resulting, surviving or transferee
Person, if not the Company, is a Person organized and validly existing under
the laws of the United States of America, any State thereof or the District of
Columbia or the laws of England and Wales, Scotland, the Netherlands,
Luxembourg, the Cayman Islands or Bermuda (each a “Non-U.S. Jurisdiction”) and such Person (if not the Company)
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, the due and punctual payment of the principal of and
interest (including Additional Interest, if any) on all the Securities and the
performance or observance of every covenant of this Indenture on the part of
the Company to be performed or observed and shall have provided for conversion
rights in accordance with Article 12 and, to the extent that the Company
has ongoing obligations pursuant to the Registration Rights Agreement, any
obligations of the Company set forth in the Registration Rights Agreement;

 

(b)                  immediately after giving effect to such
transaction, no Event of Default, and no event which, after notice or lapse of
time or both, would become an Event of Default, shall have occurred and be
continuing; and

 

(c)                   the Company has delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture complies with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

 

Section 8.02.  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 8.01, 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. If the Company is still in existence after the
transaction, it will be released from its obligations and covenants hereunder
and the under the Securities, except in the case of a lease of all or
substantially all the properties or assets of the Company.

 

Section 8.03.  Additional
Amounts Following a Transaction Involving a Non-U.S. Jurisdiction.

 

All payments made under or
with respect to the Securities following any consolidation, merger or transfer
where the resulting, surviving or transferee

 

74

 

Person, if not the Company,
is a Person organized and existing under the laws of a Non-U.S. Jurisdiction
shall be made free and clear of, and without withholding or deduction for or on
account of, any present or future tax, duty, levy, impost, assessment or other
governmental charge (including any penalties or interest with respect thereto)
(hereinafter, “Taxes”) imposed or
levied by or on behalf of (1) the government of the Non-U.S. Jurisdiction,
(2) any other jurisdiction in which the Company is organized or otherwise
resident for tax purposes, (3) any jurisdiction from or through which
payment is made and (4) any political subdivision or governmental
authority or agency of or in any of the foregoing having the power to tax
(each, a “Relevant Taxing Jurisdiction”),
unless the Company is required to withhold or deduct such Taxes by law or by
the interpretation or administration thereof.

 

If the Company is so
required to withhold or deduct any amount for or on account of such Taxes
imposed by a Relevant Taxing Jurisdiction from any payment made under or with
respect to the Securities, the Company shall pay such additional amounts (“Additional Amounts”) as may be necessary so
that the net amount received by the Holders and beneficial owners of the
Securities (including any Additional Interest) after such withholding or
deduction will not be less than the amount the Holders and beneficial owners of
the Securities would have received if such Taxes had not been withheld or
deducted; provided, however, that
the foregoing obligation to pay Additional Amounts will not apply to:

 

(1) any such Taxes that
would not have been so imposed, withheld or deducted but for the existence of
any present or former connection between the relevant Holder or beneficial
owner of a Security (or between a fiduciary, settlor, beneficiary, member or
shareholder of, or possessor of power over, the relevant Holder or beneficial
owner, if the relevant Holder or beneficial owner is an estate, nominee, trust,
partnership or corporation) and the Relevant Taxing Jurisdiction (other than the
mere receipt of such payment or the ownership or holding of such Security);

 

(2) any estate,
inheritance, gift, sales, excise, transfer, personal property Tax or similar
Tax;

 

(3) any such Taxes
which are payable otherwise than by withholding from payments of (or in respect
of) principal of, or any premium or interest on, the Securities;

 

(4) any such Taxes that
are so imposed, withheld or deducted by reason of the failure to comply by the
Holder or the beneficial owner of a Security with a request by the Company
addressed to the Holder or such beneficial owner (A) to provide
information concerning the nationality, residence, identity or present or
former 

 

75

 

connection with a Relevant
Taxing Jurisdiction of such Holder or such beneficial owner or (B) to make
any declaration or other similar claim or satisfy any certification,
information or reporting requirement relating to such matters described in (A),
which, in the case of (A) or (B), is required or imposed by a statute,
treaty, regulation or administrative practice of the Relevant Taxing
Jurisdiction as a precondition to exemption from all or part of such Taxes at
source or otherwise;

 

(5) any withholding or
deduction imposed on a payment to an individual required to be made pursuant to
the European Council Directive 2003/48/EC (the “Directive”) or any law
implementing, or introduced in order to conform to, such Directive;

 

(6) in the case of a
Non-U.S. Holder, any deduction or withholding which could have been avoided had
such Non-U.S. Holder presented a Security to another Paying Agent in a member
state of the European Union as of the date of the relevant transaction (a “Member
State”); or

 

(7) any combination of
items (1), (2), (3), (4), (5) and (6) above.

 

The Company will not be
required to pay Additional Amounts:

 

(a) to a Holder or
beneficial owner of the Securities in respect of any payment to the extent of
an amount equal to the amount of any such Taxes that were being imposed on, or
deducted or withheld from, the last payment made to such Holder or beneficial
owner under the Securities prior to the relevant consolidation, merger or
transfer;

 

(b) if the payment
could have been made without deduction or withholding if the beneficiary of the
payment had presented the Security for payment within 30 days after the date on
which such payment or such Security became due and payable or the date on which
payment thereof is duly provided for, whichever is later (except to the extent
that such beneficiary would have been entitled to Additional Amounts had the
Security been presented on the last day of the 30-day period); or

 

(c) with respect to any
payment of principal of or interest (including Additional Interest, if any) on
such Security to any Holder or beneficial owner that is a fiduciary or
partnership or any Person other than the sole beneficial owner of such payment,
to the extent that a beneficiary or settlor with respect to such fiduciary, a
member of such a partnership or the beneficial owner of such payment would not
have been entitled to the Additional Amounts

 

76

 

had such beneficiary,
settlor, member or beneficial owner been the sole Holder or beneficial owner of
such Security.

 

If the Company will be obligated
to pay Additional Amounts with respect to any payment under or with respect to
the Securities, the Company will deliver to the Trustee at least 30 days prior
to the date of that payment (unless the obligation to pay Additional Amounts
arises after the 30th day prior to that payment date, in which case the Company
shall notify the Trustee promptly thereafter but in no event later than two
business days prior to the date of payment) notice of payment in the form of an
Officer’s Certificate. In either circumstance, the Officer’s Certificate must
state that Additional Amounts will be payable and the amount so payable. The
Officer’s Certificate must also set forth any other information necessary to
enable the Paying Agent to pay Additional Amounts to Holders and beneficial
owners on the relevant payment date.

 

The Company will (i) make
such withholding or deduction and (ii) remit the full amount deducted or
withheld to the Relevant Taxing Jurisdiction in accordance with applicable
law.  The Company will provide the
Trustee with official receipts or other documentation reasonably satisfactory
to the Trustee evidencing the payment of the Taxes with respect to which
Additional Amounts are paid. Certificated copies of such receipts and such
other documentation shall be made available to Holders upon request.  The Company will attach to such copies an
Officer’s Certificate stating (x) that the amount of withholding Taxes
evidenced by such copies was paid in connection with any payment made under or
with respect to the Securities and (y) the amount of such withholding
Taxes paid per $1,000 of Securities.

 

Upon the occurrence of any
of the events described in the first paragraph of Section 8.01, the
Company will pay any present or future stamp, court or documentary taxes or any
other excise or property taxes, charges or similar levies that arise in any
jurisdiction from the execution, delivery, enforcement or registration of the
Securities, the Indenture or any other related document or instrument, or the
receipt of any payments with respect to the Securities, excluding taxes,
charges or similar levies imposed by any jurisdiction that is not a Relevant
Taxing Jurisdiction, and the Company will agree to indemnify the Holders or the
Trustee for any such taxes paid by the Holders or the Trustee.  Notwithstanding the foregoing sentence, the
Trustee shall have no duty or obligation to pay any such Taxes.

 

In the event that the
resulting, surviving or transferee Person is organized under the laws of a
Non-U.S. Jurisdiction, the Company covenants to maintain a Paying Agent in a
country that was a Member State at the time of the
relevant consolidation, merger or transfer that will not be obliged to withhold or deduct Tax pursuant to the
Directive.

 

77

 

In the event that the
resulting, surviving or transferee Person is organized under the laws of a
Non-U.S. Jurisdiction, the preceding provisions will survive any termination or
discharge of this Indenture and shall apply mutatis
mutandis to any jurisdiction (other than the United States) in which
any successor Person to such resulting, surviving or transferee Person is
organized or any political subdivision or taxing authority or agency thereof or
therein.

 

ARTICLE 9

MODIFICATION AND AMENDMENT

 

Section 9.01.  Supplemental
Indentures Without Consent of Holders.

 

Without the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, for any of the following purposes:

 

(a)                   to cure any ambiguity, manifest error, defect
or omission or inconsistency; provided
that in the case of any omission or inconsistency the rights of the Holders are
not adversely affected in any material respect; or

 

(b)                  to provide for the assumption by a successor
corporation of the Company’s obligations under this Indenture; or

 

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

 

(d)                  to provide for a successor Trustee,
Conversion Agent, Paying Agent or Security Registrar in accordance with the
terms of this Indenture or to otherwise comply with any requirement of this
Indenture; or

 

(e)                   to provide for the issuance of Additional
Securities; provided that no such
amendment or supplement may impair the rights or interests of any Holder of
Outstanding Securities; or

 

(f)                     to increase the Conversion Rate; or

 

(g)                  to secure the Securities; or

 

(h)                  to add to the Company’s covenants for the
benefit of the Holders or to surrender any right or power conferred upon the
Company; or

 

(i)                      to make provision with respect to the
conversion rights of Holders pursuant to the requirements of Article 12;
or

 

(j)                      to make any change that does not adversely
affect the rights of any Holder in any material respect; provided that any amendment to conform the
terms of this Indenture or the Securities to the “Description of the Notes”
section 

 

78

 

of the Company’s final
offering memorandum dated April 10, 2008 relating to the offering of the
Securities will not be deemed to be adverse to any Holder; or

 

(k)                      to comply with any requirement of the SEC in
connection with the qualification of this Indenture under the Trust Indenture
Act.

 

With respect to any
amendment or supplement made in reliance upon clause (j) above, the
Trustee may conclusively rely on the written advice of counsel that is
nationally recognized in its determination as to whether or not the Holders of
the Securities would be materially and adversely affected by such change.  Such determination shall be conclusive and
binding on all present and future Holders.

 

Section 9.02.  Supplemental
Indentures with Consent of Holders.

 

With the consent of the
Holders of not less than a majority in principal amount of the Outstanding
Securities (including consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Securities), by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

 

(a)                      reduce the percentage in principal amount of
the Outstanding Securities, the consent of whose Holders is required for any
such supplemental indenture, or the consent of whose Holders is required for
any waiver (of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences) provided for in this Indenture; or

 

(b)                     reduce the rate, or extend the stated time
for payment, of interest (including Additional Interest or Extension Fees) on
any Security or reduce the amount, or extend the stated time for payment, of
the Extension Fee; or

 

(c)                      reduce the principal, or extend the Stated
Maturity, of any Security; or

 

(d)                     adversely affect the right to convert any
Security as provided in Article 12; or

 

(e)                      reduce the Fundamental Change Repurchase
Price of any Security or amend or modify in any manner adverse to Holder the
Company’s obligation to make such payment, whether through amendment or waiver
of provisions of the covenants, definitions or otherwise; or

 

79

 

(f)                          change the place of payment where, or the
coin or currency in which, any the principal of, interest on, or Additional
Interest or the Extension Fee, in respect of any Security is payable; or

 

(g)                       impair the right of any Holder to receive
payment of principal of and interest (including Additional Interest, if any) on
such Holder’s Securities on or after the due dates therefor or to institute
suit for the enforcement of any payment on or with respect to such Holder’s
Securities; or

 

(h)                       adversely affect the ranking of the
Securities as the Company’s unsubordinated unsecured indebtedness; or

 

(i)                           modify any of the provisions of this Section or
Section 5.13, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby; provided, however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section, or the deletion of this proviso, in accordance with the
requirements of Section 6.11 and Section 9.02(a).

 

It shall not be necessary for any Act of Holders under
this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

 

Section 9.03.  Execution of Supplemental Indentures.

 

In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 6.01) shall be fully
protected in relying upon, an Opinion of Counsel and an Officer’s Certificate
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

Section 9.04.  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.

 

After any supplemental indenture under this Article becomes
effective, the Company shall promptly issue a notice to the Holders briefly
describing such

 

80

 

supplemental indenture.  However, the failure to give such notice to
all the Holders, or any defect in the notice, will not impair or affect the
validity of the supplemental indenture.

 

Section 9.05.  Conformity with Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this
Article shall conform to the requirements of the Trust Indenture Act.

 

Section 9.06.  Reference in Securities to Supplemental
Indentures.

 

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

 

ARTICLE 10

COVENANTS

 

Section 10.01.  Payment of Principal and Interest.

 

The Company will duly and punctually pay the principal
of and interest (including Additional Interest, if any) on the Securities in
accordance with the terms of the Securities and this Indenture.

 

Section 10.02.  Maintenance of Office or Agency.

 

The Company will maintain an office or agency in the
United States (which shall be initially the Trustee’s Corporate Trust Office)
where Securities may be presented or surrendered for payment, where Securities
may be surrendered for registration of transfer or exchange, where Securities
may be surrendered for conversion and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The
Company will give prompt written notice to the Trustee of any change in the
location of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

81

 

The Company may also from time to time designate one
or more other offices or agencies where the Securities may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency for such purposes as provided above. The Company
will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or
agency.

 

Section 10.03.  Money for Security Payments to Be Held in
Trust.

 

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

 

Whenever the Company shall have one or more Paying
Agents, it will, prior to each due date of the principal of or interest on any
Securities, deposit with a Paying Agent a sum sufficient to pay such amount so
becoming due, such sum to be held as provided by the Trust Indenture Act, and (unless
such Paying Agent is the Trustee) the Company will promptly notify the Trustee
of its action or failure so to act.

 

The Company will cause each Paying Agent other than
the Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will (i) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
continuance of any default by the Company (or any other obligor upon the
Securities) in the making of any payment in respect of the Securities and upon
written request of the Trustee, forthwith pay to the Trustee all sums held in
trust by such Paying Agent for payment in respect  of the Securities and to account for any
monies already paid.

 

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

 

Subject to any applicable abandoned property law, any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for

 

82

 

the payment of the principal of or interest on any
Security and remaining unclaimed for two years after such principal or interest
has become due and payable shall be paid to the Company on Company Request, or
(if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor,
look only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in New York, New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

 

Section 10.04.  Statement by Officers as to Default.

 

The Company will deliver to the Trustee, within 120
days after the end of each fiscal year of the Company ending after the date
hereof, an Officer’s Certificate, confirming that, to the knowledge of the
signer thereof, the Company is not in default (without regard to any period of
grace or requirement of notice provided hereunder) in the performance and
observance of any of the terms, provisions and conditions of this Indenture or
in an Event of Default and, if the Company shall be in default or Event of
Default, specifying all such defaults or Events of Default and the nature and
status thereof of which they may have knowledge.

 

In addition, the Company will deliver to the Trustee,
within 30 days after the occurrence thereof, written notice of any events that
would constitute a a default, the status of those events and what action the
Company is taking or propose to take in respect thereof.

 

Section 10.05.  Existence.

 

Subject to Article 8, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its existence, material rights (charter and statutory) and material
franchises; provided, however, that the Company shall not be
required to preserve any such right or franchise if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company.

 

Section 10.06.  Payment of Taxes.

 

The Company shall pay, and shall cause each Subsidiary
to pay, prior to delinquency, all Taxes except such as are contested in good
faith and by

 

83

 

appropriate proceedings or where the failure to effect
such payment is not adverse in any material respect to the Holders.

 

Section 10.07.  Additional Interest Under the Registration
Rights Agreement.

 

If at any time Additional Interest becomes payable by
the Company pursuant to the Registration Rights Agreement, the Company shall
promptly deliver to the Trustee a certificate executed by an officer of the
Company who may execute a Company Order to that effect and stating (i) the
amount of such Additional Interest that is payable and (ii) the date on
which such Additional Interest is payable pursuant to the terms of the
Registration Rights Agreement.  Unless
and until a Responsible Officer of the Trustee receives such a certificate, the
Trustee may assume without inquiry that no Additional Interest is payable.  If the Company has paid Additional Interest
directly to the Persons entitled to such Additional Interest, the Company shall
promptly deliver to the Trustee such a certificate setting forth the
particulars of such payment.

 

ARTICLE 11

REPURCHASE AT OPTION OF THE HOLDER

 

Section 11.01.  Repurchase at the Option of the Holder Upon a
Fundamental Change.

 

(a)                        If a Fundamental Change occurs at any
time, then each Holder shall have the right, at such Holder’s option, to
require the Company to repurchase all of such Holder’s Securities or any
portion thereof that is a multiple of $1,000 principal amount, for cash on the
date (the “Fundamental Change Repurchase Date”)
specified by the Company that is not less than 20 calendar days and not more
than 35 calendar days after the date of the Fundamental Change Repurchase Right
Notice at a repurchase price equal to 100% of the principal amount thereof,
together with accrued and unpaid interest thereon to, but excluding, the
Fundamental Change Repurchase Date (the “Fundamental
Change Repurchase Price”) unless such Fundamental Change Repurchase
Date falls after a Regular Record Date and on or prior to the corresponding
Interest Payment Date, in which case the Company will pay the full amount of
accrued and unpaid interest payable on such Interest Payment Date to the Holder
of record at 5:00 p.m., New York City time, on the corresponding Regular
Record Date.

 

Repurchases of Securities under this Section 11.01
shall be made, at the option of the Holder thereof, upon:

 

(i)             if the Securities are held in certificated form,
delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder of a duly completed notice (the “Fundamental
Change Repurchase Notice”) in the form set forth on the reverse of
the Security or, if the

 

84

 

Securities are held in
global form, a notice that complies with the Applicable Procedures, prior to
5:00 p.m., New York City time, on the Business Day immediately preceding
the Fundamental Change Repurchase Date; and

 

(ii)                                  delivery or book-entry transfer of the
Securities to the Trustee (or other Paying Agent appointed by the Company) at
any time after delivery of the Fundamental Change Repurchase Notice (together
with all necessary endorsements) at the Corporate Trust Office of the Trustee
(or other Paying Agent appointed by the Company), such delivery being a
condition to receipt by the Holder of the Fundamental Change Repurchase Price
therefor; provided that such
Fundamental Change Repurchase Price shall be so paid pursuant to this Section 11.01
only if the Security so delivered to the Trustee (or other Paying Agent
appointed by the Company) shall conform in all respects to the description
thereof in the related Fundamental Change Repurchase Notice.

 

The Fundamental Change Repurchase Notice shall state:

 

	
  (A)

  	
   

  	
  if certificated, the certificate numbers of
  Securities to be delivered for repurchase;

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   

  	
  the portion of the principal amount of Securities to
  be repurchased, which must be $1,000 or an 

  
	
  integral multiple thereof; and

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   

  	
  that the Securities are to be repurchased by the
  Company pursuant to the applicable provisions of 

  
	
  the Securities and this Indenture.

  

 

Any purchase by the Company contemplated pursuant to
the provisions of this Section 11.01 shall be consummated by the delivery
of the consideration to be received by the Holder promptly following the later
of the Fundamental Change Repurchase Date and the time of the book-entry
transfer or delivery of the Security.

 

The Trustee (or other Paying Agent appointed by the
Company) shall promptly notify the Company of the receipt by it of any
Fundamental Change Repurchase Notice or written notice of withdrawal thereof in
accordance with the provisions of subsection (c) of this Section 11.01.

 

Any Security that is to be repurchased only in part
shall be surrendered to the Trustee (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 his attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and make available for delivery to the Holder of
such Security without service charge,

 

85

 

a new Security or Securities, containing identical
terms and conditions, each in an authorized denomination in aggregate principal
amount equal to and in exchange for the unrepurchased portion of the principal
of the Security so surrendered.

 

(b)                       After the occurrence of a Fundamental
Change, but on or before the 10th calendar day after the Effective Date of such
Fundamental Change, the Company shall provide to all Holders of record of the
Securities and the Trustee and Paying Agent a notice (the “Fundamental Change Repurchase Right Notice”)
of the occurrence of such Fundamental Change and of the repurchase right, if
any, at the option of the Holders arising as a result thereof. Such mailing
shall be by first class mail.

 

Each Fundamental Change Repurchase Right Notice shall
specify (if applicable):

 

	
  (i)

  	
   

  	
  the events causing the Fundamental Change;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  the date of the Fundamental Change;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  the last date on which a Holder may exercise its
  repurchase rights under Section 11.01, if applicable;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  the Fundamental Change Repurchase Price, if
  applicable;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  the Fundamental Change Repurchase Date, if
  applicable;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  the name and address of the Paying Agent and the
  Conversion Agent, if applicable;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  the applicable Conversion Rate and any adjustments
  to the applicable Conversion Rate;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  that the Securities with respect to which a
  Fundamental Change Purchase Notice has been delivered by a 

  
	
  Holder may be converted only if the Holder withdraws
  the Fundamental Change Repurchase Notice in accordance with the terms of this
  Indenture; and

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  the procedures the Holder must follow to require the
  Company to purchase its Securities under 

  
	
  Section 11.01, if applicable.

  

 

(c)                        A Fundamental Change Repurchase Notice
may be withdrawn in whole or in part by means of a written notice of withdrawal
delivered to the Paying Agent and the Trustee in accordance with the
Fundamental Change Repurchase Right Notice at any time prior to 5:00 p.m.,
New York City time, on the Business Day prior to the Fundamental Change
Repurchase Date (the “Fundamental Change
Expiration Time”), specifying:

 

86

 

(i)             the principal amount of the withdrawn Securities,

 

(ii)          if certificated Securities have been issued, the
certificate numbers of the withdrawn Securities or, if the Securities are not
in certificated form, the notice must comply with the Applicable Procedures,
and

 

(iii)       the principal amount, if any, of such Security that
remains subject to the original Fundamental Change Repurchase Notice, which
portion must be in principal amounts of $1,000 or an integral multiple of
$1,000.

 

(d)                       On or prior to 10:00 a.m., New York
City time, on the Fundamental Change Repurchase Date, the Company shall deposit
with the Trustee (or other Paying Agent appointed by the Company or if the
Company is acting as its own Paying Agent, set aside, segregate and hold in
trust as provided in Section 6.06) an amount of money sufficient to
repurchase on the Fundamental Change Repurchase Date all of the Securities to
be repurchased on such date at the Fundamental Change Repurchase Price. Subject
to receipt of funds and/or Securities by the Trustee (or other Paying Agent
appointed by the Company), payment for Securities surrendered for repurchase
(and not withdrawn) prior to the Fundamental Change Expiration Time shall be
made promptly after the later of (x) the Fundamental Change Repurchase
Date with respect to such Security (provided the Holder has satisfied the
conditions to the payment of the Fundamental Change Repurchase Price in this Section 11.01),
and (y) the time of book-entry transfer or the delivery of such Security
to the Trustee (or other Paying Agent appointed by the Company) by the Holder
thereof in the manner required by this Section 11.01 and in accordance
with the procedures set forth in Section 3.01 with respect to the payment
of principal on definitive Securities; provided,
however, that all payments shall
be subject to Section 11.01(a) and payments to the Depositary shall
be made by wire transfer of immediately available funds to the account of the
Depositary or its nominee.  The Trustee
(or other Paying Agent appointed by the Company) shall, promptly upon written
demand by the Company, promptly return to the Company any funds in excess of
the Fundamental Change Repurchase Price.

 

(e)                        If the Trustee (or other Paying Agent
appointed by the Company) holds money sufficient to repurchase on the
Fundamental Change Repurchase Date all the Securities or portions thereof that
are to be purchased as of the Business Day following the Fundamental Change
Repurchase Date, then on and after the Fundamental Change Repurchase Date (i) such
Securities shall cease to be outstanding, ((ii) interest (including
Additional Interest), if any, shall cease to accrue on such Securities, and ((iii) all
other rights of the Holders of such Securities shall terminate, whether or not
book-entry transfer of the Securities has been made or the Securities have been
delivered to the Trustee or Paying Agent, other than the right to receive the
Fundamental Change Repurchase Price upon

 

87

 

delivery or transfer of the Securities and previously
accrued and unpaid interest (including Additional Interest), if any, upon
delivery or transfer of the Securities.

 

(f)                          No Securities may be repurchased at the
option of Holders upon a Fundamental Change if the principal amount of the
Securities has been accelerated, and such acceleration has not been rescinded
on or prior to such date.

 

(g)                       In connection with any repurchase of the
Securities pursuant to this Article 11, the Company shall comply with the
provisions of Rule 13e-4, Rule 14e-1 and any other tender offer rules under
the Exchange Act that may then be applicable and otherwise comply with all
applicable federal and state securities laws.

 

ARTICLE 12

CONVERSION OF SECURITIES

 

Section 12.01.  Conversion Privilege and Conversion Rate.

 

(a)                                  Subject to the conditions described in
clauses (i), (ii) and (iii) below, and upon compliance with the
provisions of this Article 12, a Holder shall have the right, at such
Holder’s option, to tender for conversion all or any portion (if the portion to
be converted is $1,000 in principal amount or an integral multiple thereof) of
any Securities at any time prior to 5:00 p.m., New York City time, on the
second Scheduled Trading Day immediately preceding November 15, 2016, into
shares of Common Stock (or, at the election of the Company, cash or a
combination of cash and shares of Common Stock as described herein) at a rate
of 52.0291 shares of Common Stock (subject to adjustment by the Company as
provided in Section 12.01(e) and Section 12.04 hereof) per
$1,000 in principal amount of the Securities (the “Conversion Rate”) under the circumstances and during the
periods set forth below. On and after August 15, 2016 regardless of the
conditions described in clauses (i), (ii) and (iii) below, and upon
compliance with the provisions of this Article 12, a Holder shall have the
right, at such Holder’s option, to tender for conversion all or any portion (if
the portion to be converted is $1,000 in principal amount or an integral
multiple thereof) of any Securities at the applicable Conversion Rate at any
time prior to 5:00 p.m., New York City time, on the second Scheduled
Trading Day immediately preceding November 15, 2016.

 

(i)  The Securities shall be convertible prior to
August 15, 2016, during the five Business Day period after any five
consecutive Trading Day period (as used in this Section 12.01(a)(i), the “Measurement Period”) in which the Trading
Price per $1,000 in principal amount of the Securities for each Trading Day of
such Measurement Period was less than 98% of the product of the Last Reported
Sale Price of the Common Stock on such Trading Day and the applicable
Conversion Rate in effect on such Trading Day, as determined by the Conversion
Agent and subject to compliance with the procedures and conditions described below
concerning the Conversion Agent’s obligation to make such determination

 

88

 

(the “Trading Price
Condition”). If a Holder provides the Company with written notice
which includes reasonable evidence that the Trading Price per $1,000 in
principal amount of the Securities would be less than 98% of the product of (a) the
applicable Conversion Rate of the Securities and (b) the Last Reported
Sale Price at such time, then the Company shall instruct the Conversion Agent
to determine the Trading Price beginning on the next Trading Day and on each
successive Trading Day until the date on which the Trading Price per $1,000 in
principal amount of the Securities is greater than or equal to 98% of the
product of (a) the applicable Conversion Rate of the Securities and (b) the
Last Reported Sale Price. Furthermore, if the Company does not, when obligated
to do so pursuant to this clause (i), make a written request to the Conversion
Agent to determine the Trading Price of the Securities, or if the Company makes
such request to the Conversion Agent and the Conversion Agent does not make
such determination, then the Trading Price per $1,000 in principal amount of
the Securities shall be deemed to be less than 98% of the product of (a) the
applicable Conversion Rate of the Securities and (b) the Last Reported
Sale Price on such date.

 

If the Trading Price Condition has been met in
accordance with the foregoing, the Company shall so notify the Holders of the
Securities and the Trustee. If, at any time after the Trading Price Condition
has been met in accordance with the foregoing, the Trading Price per $1,000 in
principal amount of the Securities is greater than or equal to 98% of the
product of (a) the applicable Conversion Rate of the Securities and (b) the
Last Reported Sale Price on such date, the Company shall so notify the Holders
of the Securities and the Trustee, and the Company shall have no further
obligation to determine the Trading Price of the Securities unless requested to
do so again in writing pursuant to this Section 12.01(a)(i).

 

(ii)                                  The Securities shall be convertible prior
to August 15, 2016, during any calendar quarter after the calendar quarter
ending June 30, 2008 (and only during such calendar quarter), if the Last
Reported Sale Price of the Common Stock for 20 or more Trading Days in a period
of 30 consecutive Trading Days ending on the last Trading Day of the
immediately preceding calendar quarter exceeds 120% of the applicable
Conversion Price in effect on the last Trading Day of the immediately preceding
calendar quarter. For each calendar quarter, the Company, or at the written
request of the Company, the Conversion Agent, will determine if the Securities
are convertible as the result of the satisfaction of the condition in this Section 12.01(a)(ii) in
the preceding calendar quarter and the Company will promptly notify the Holders
and the Trustee and, if the Company makes the determination, the Conversion
Agent, if this condition was satisfied.

 

(iii)                               The Securities shall be convertible prior to August 15,
2016, as provided in subsections (b), (c) and (d) of this Section 12.01.

 

89

 

(b)                                 In the event that the Company elects to:

 

(i)                                     distribute to all or substantially all
holders of Common Stock any rights or warrants entitling them, for a period of
not more than 45 calendar days after the date of the distribution, to subscribe
for or purchase Common Stock at a price per share less than the Last Reported
Sale Price of the Common Stock for the Trading Day immediately preceding the
declaration date of such distribution; or

 

(ii)                                  distribute to all or substantially all
holders of Common Stock assets (including cash) or debt securities of the
Company or certain rights to purchase the Company’s securities (other than
pursuant to a stockholders’ rights plan), which distribution has a per share
value (as determined by the Company’s Board of Directors) exceeding 10% of the
Last Reported Sale Price of the Common Stock on the Trading Day immediately
preceding the date of declaration of such distribution, 

 

the Company shall notify Holders and the Trustee in
writing with respect to any distribution referred to in either clause (i) or
clause (ii) above and of the resulting conversion right no later than the
35th Scheduled Trading Day prior to the Ex Date for such distribution. Once the
Company has given such notice, Holders may surrender the Securities for
conversion at any time until the earlier of (A) 5:00 p.m., New York
City time, on the Business Day immediately preceding the Ex Date for such
distribution or (B) the date the Company announces that such distribution
will not take place even if the Securities are not otherwise convertible at
such time. A Holder may not exercise this right if such Holder is permitted to
participate (as a result of holding the Securities, and at the same time as
holders of the Common Stock participate) in any distribution referred to in
clause (i) or clause (ii) above as if such Holder held a number of
shares of Common Stock equal to the applicable Conversion Rate, multiplied by
the principal amount (expressed in thousands) of Securities held by such
Holder, without having to convert its Securities.

 

(c)                                  If the Company is a party to any
transaction or event described in the definition of Fundamental Change, a
Holder may surrender Securities for conversion at any time, after the Company
gives the notice referred to in the last sentence of this Section 12.01(c),
from the effective date of such event until (i) the Fundamental Change
Repurchase Date corresponding to such events or (ii) if there is no such
Fundamental Change Repurchase Date, 35 Scheduled Trading Days following the
effective date of such transaction or event. After the occurrence of a
Fundamental Change, the Company shall notify in writing, in the manner provided
for in this Indenture, each of the Holders and the Trustee of the Fundamental
Change no later than the effective date of such Fundamental Change.

 

(d)                                 If the Company is a party to a
combination, merger, recapitalization, reclassification, binding-share exchange
or other similar

 

90

 

transaction or sale or conveyance of all or
substantially all of its properties and assets (excluding a pledge of
securities issued by any of the Company’s Subsidiaries but including, to the
extent appropriate, any foreclosure on such pledged securities), in each case
pursuant to which the Common Stock would be converted into cash, securities
and/or other property and that does not also constitute a Fundamental Change,
then the Holders shall have the right to convert Securities at any time
beginning on the date on which the Company gives notice or makes a public
announcement of such transaction and ending on the 35th Scheduled Trading Day
following the effective date of such transaction. The Company shall notify
Holders and the Trustee in writing as soon as practicable, and in any event no
later than the actual effective date of any such transaction.

 

(e)                                  If a Holder elects to convert Securities
in connection with a Make-Whole Fundamental Change, the Conversion Rate
applicable to each $1,000 in principal amount of Securities so converted shall
be increased by an additional number of shares of Common Stock (the “Additional Shares”) as described below.

 

Settlement of Securities tendered for conversion to
which Additional Shares shall be added to the Conversion Rate as provided in
this subsection (e) shall be settled pursuant to Section 12.02(e).
For purposes of this subsection (e), a conversion shall be deemed to be “in connection with” such Make-Whole
Fundamental Change if such conversion occurs on or after the effective date of
such Make-Whole Fundamental Change and prior to 5:00 p.m., New York City
time, on the Business Day immediately prior to the related Fundamental Change
Repurchase Date for such Make-Whole Fundamental Change. The Company will notify
Holders and the Trustee in writing of the effective date of any Make-Whole Fundamental
Change applicable to this subsection (e) and issue a press release on the
effective date of such transaction.

 

(i)                                     The number of Additional Shares by which
the applicable Conversion Rate will be increased in the event of a Make-Whole
Fundamental Change shall be determined by the Company by reference to the table
attached as Schedule A hereto, based on the Make-Whole Reference Date
and the Stock Price; provided,
that if the actual Stock Price is between two Stock Price amounts in the table
or the Make-Whole Reference Date is between two Make-Whole Reference Dates in
the table, the number of Additional Shares by which the Conversion Rate will be
increased shall be determined by a straight-line interpolation between the
number of Additional Shares set forth for the next higher and next lower Stock
Price amounts and the two nearest Make-Whole Reference Dates, as applicable,
based on a 365-day year; provided, further,
that if (1) the Stock Price is greater than $100.00 per share of Common
Stock (subject to adjustment in accordance with clause (ii) below), no
adjustments will be made in the Conversion Rate, and (2) the Stock Price
is less than $12.37 per share (subject to adjustment in accordance with clause (ii) below),
no adjustments will be made in the Conversion Rate. Notwithstanding the
foregoing, in no event shall the Conversion

 

91

 

Rate exceed 80.8407 shares per $1,000 in principal
amount of Securities (subject to adjustment in the same manner as set forth in Section 12.04).
In addition, if Holders convert their Securities prior to any effective date of
any Make Whole Fundamental Change and the Make Whole Fundamental Change does
not occur, Holders will not be entitled to an increased Conversion Rate in connection
with such conversion.

 

(ii)                                  The Stock Prices set forth in the first
column of the table in Schedule A hereto shall be adjusted by the
Company as of any date on which the Conversion Rate of the Securities is
adjusted (except pursuant to this Section 12.01(e)). The adjusted Stock
Prices shall equal the Stock Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the applicable
Conversion Rate in effect immediately prior to the adjustment giving rise to
the Stock Price adjustment and the denominator of which is the Conversion Rate
as so adjusted. The number of Additional Shares within the table shall be
adjusted in the same manner as the Conversion Rate as set forth in Section 12.04.

 

Section 12.02.
 Exercise of Conversion Privilege;
Settlement.

 

(a)                                  The Company shall settle Securities
tendered for conversion by delivering, as applicable:

 

(i)                                     if the Company elects to settle a
Conversion in shares of Common Stock, on the third Business Day immediately
following the Conversion Date, a number of shares of Common Stock obtained by
dividing the aggregate principal amount of Securities to be converted by 1,000,
and multiplying that quotient by the applicable Conversion Rate on the relevant
Conversion Date;

 

(ii)                                  if the Company elects to settle a
Conversion in cash, on the third Business Day immediately following the last
day of the related Observation Period, for each $1,000 in principal amount of
Securities tendered for conversion, cash in an amount equal to the sum of the
Daily Conversion Values for each of the 30 VWAP Trading Days during the related
Observation Period; or

 

(iii)                               if the Company elects to settle a Conversion in a
combination of cash and shares of Common Stock, on the third Business Day immediately
following the last day of the related Observation Period, for each $1,000 in
principal amount of Securities tendered for conversion, cash and shares of
Common Stock, if any, equal to the sum of the Daily Settlement Amounts for each
of the 30 VWAP Trading Days during the related Observation Period,

 

in each case subject, if applicable, to Section 12.02(c),
Section 12.03 and Section 12.09 hereof. The applicable settlement
method for any particular conversion of Securities (pursuant to clause (i), (ii) or
(iii) above) shall be determined pursuant to Section 12.02(b).

 

92

 

(b)                                 Prior to the 35th Scheduled Trading Day
prior to the Maturity Date, the Company may elect to repay Securities tendered
for conversion pursuant to clause (i), (ii) or (iii) of Section 12.02(a) (or,
if the Company has made the Net Share Settlement Election on or prior to the
applicable Conversion Date, clause (iii) of Section 12.02(a)) by
providing notice (a “Consideration Notice”)
to the converting Holders through the Trustee (by requesting in writing that
the Trustee provide the Consideration Notice) of the applicable settlement
method no later than the second Scheduled Trading Day immediately following the
related Conversion Date or by making the Net Share Settlement Election. If the
Consideration Notice designates settlement pursuant to clause (iii) of Section 12.02(a),
it will state the Specified Dollar Amount. If the Company does not provide a
Consideration Notice in respect of a conversion and has not made the Net
Settlement Election, conversion of the applicable Securities will be settled
pursuant to clause (i) of Section 12.02(a).

 

Prior to the 35th Scheduled Trading Day prior to the
Maturity Date, if the Company has not made the Net Share Settlement Election,
the Company may deliver a one-time Consideration Notice to the Holders
designating the settlement method (clause (i), (ii) or (iii) of Section 12.02(a) or,
if the Company has made the Net Share Settlement Election, clause (iii) of
Section 12.02(a)) for all conversions that occur on or after the 35th
Scheduled Trading Day prior to such Maturity Date. For conversions that occur
on or after the 35th Scheduled Trading Day prior to the Maturity Date, if the
Company has not delivered the one-time Consideration Notice referred to in this
Section 12.02(b) and has not made an irrevocable Net Share Settlement
Election, conversion of the Securities will be settled in accordance with
clause (i) of Section 12.02(a).

 

At any time on or prior to the 35th Scheduled Trading
Day prior to the Maturity Date, the Company may deliver a one-time irrevocable
notice to the Holders electing to settle all conversions of the Securities from
the date of such notice pursuant to clause (iii) of Section 12.02(a) (the
“Net Share Settlement Election”).  If the Company has made the Net Share
Settlement Election, the notice of such Net Share Settlement Election shall
state the Specified Dollar Amount applicable to all conversions of such
Securities, which shall be equal to the principal amount of such Securities as
of the Conversion Date. Upon making the Net Share Settlement Election, the
Company will issue a press release or post such information on its website, or
otherwise publicly disclose such information, and will provide written notice
to the Holders in the manner contemplated by this Indenture, including through
the facilities of the DTC.

 

The Company may irrevocably renounce the right to the
Net Share Settlement Election at any time prior to the earlier of (i) the
35th Scheduled Trading Day preceding the Maturity Date and (ii) the
Company’s exercise of such right to the Net Share Settlement Election. Upon
such renunciation, the Company shall no longer have the right to the Net Share
Settlement Election with respect to the Securities, and any such attempted
election shall have no effect.

 

93

 

The Company will settle all conversions by Holders
converting on the same Trading Day in the same manner. Except for all conversions
that occur on or after the 35th Scheduled Trading Day prior to the Maturity
Date, the Company will have no obligation to repay any Securities tendered for
conversion on different Trading Days in the same manner.

 

(c)                                  Before any Holder of a Note shall be
entitled to convert the same as set forth above, such Holder shall (1) in
the case of a Global Note, comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on
the next Interest Payment Date to which such Holder is not entitled pursuant to
Section 12.02(i) and, if required, pay all Taxes or duties, if any,
in connection therewith and (2) in the case of a Note issued in
certificated form, (A) complete and manually sign and deliver an irrevocable
written notice to the Conversion Agent in the form set forth under Section 2.05
(or a facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and shall state
in writing therein the principal amount of Securities to be converted and the
name or names (with addresses) in which such Holder wishes the certificate or
certificates for any shares of Common Stock, if any, to be delivered upon
repayment of Securities tendered for conversion to be registered, (B) surrender
such Securities, duly endorsed to the Company or in blank (and accompanied by
appropriate endorsement and transfer documents), at the office of the
Conversion Agent, and (C) if required, pay all taxes or duties, if any, in
connection therewith and (D) if required, pay funds equal to interest
payable on the next Interest Payment Date to which such Holder is not entitled
as set forth in Section 12.02(i).

 

No Notice of Conversion with respect to any Securities
may be tendered by a Holder thereof if such Holder has also tendered a
Fundamental Change Repurchase Notice and not validly withdrawn such Fundamental
Change Repurchase Notice in accordance with the applicable provisions of Section 11.01.

 

If more than one Note shall be surrendered for
conversion at one time by the same Holder, the repayment of such Securities
tendered for conversion, if any, that shall be payable upon conversion shall be
computed on the basis of the aggregate principal amount of the Securities (or
specified portions thereof to the extent permitted thereby) so surrendered.

 

(d)                                 Delivery of the amounts owing in
satisfaction of the conversion obligation set forth in this Article 12
shall be made by the Company in no event later than the date specified in
subsections (a) or (b), as applicable, of this Section 12.02. The
Company shall make such delivery by paying the cash amount owed, if any, to the
Holder of the Security surrendered for conversion, or such Holder’s nominee or
nominees, and/or by issuing, or causing to be issued, and delivering to such
Holder, or such Holder’s nominee or nominees, certificates or a book-entry
transfer through the Depositary for the number of full shares of Common Stock,
if

 

94

 

any, to which such Holder
shall be entitled as part of such conversion obligation (together with any cash
in lieu of fractional shares).

 

(e)                                  In case any Note shall be surrendered for
partial conversion, the Company shall execute and the Trustee shall, as
provided in a Company Order, authenticate and deliver to or upon the written
order of the Holder of the Note so surrendered, without charge to such Holder,
a new Note or Securities in authorized denominations in an aggregate principal
amount equal to the unconverted portion of the surrendered Securities.

 

(f)                                    If a Holder submits a Security for
conversion, the Company shall pay all documentary, stamp or similar issue or
transfer Tax, if any, which may be imposed by the United States or any
political subdivision thereof or taxing authority thereof or therein with
respect to the issuance of shares of Common Stock, if any, upon the conversion.
In addition, if a Holder submits a Security for conversion following any
merger, consolidation, combination, share exchange or similar transaction or
transfer of all or substantially all of the Company’s properties or assets with
the successor Person being organized in a Non-U.S. jurisdiction, the Company
shall pay all documentary, stamp or similar issue or transfer Tax, if any,
which may be imposed by the such Non-U.S. Jurisdiction or other Relevant Taxing
Jurisdiction or any political subdivision thereof or taxing authority thereof
or therein with respect to the issuance of shares of Common Stock, if any, upon
the conversion.  However, in either case,
the Holder and not the Company shall pay any such tax which is due because the
Holder requests any shares of Common Stock to be issued in a name other than
the Holder’s name. The Company 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 Company receives a sum sufficient to pay any tax which
will be due because the shares are to be issued in a name other than the Holder’s
name. Nothing herein shall preclude any tax withholding required by law or
regulations.   Subject to Section 8.03,
the Company will not be required to make any payment with respect to any other
Tax, assessment or governmental charge imposed by any other government or any
political subdivision or taxing authority thereof.

 

(g)                                 Except as provided in Section 12.04,
no adjustment shall be made for dividends on any shares issued upon the
conversion of any Note as provided in this Article 12.

 

(h)                                 Upon the conversion of an interest in a
Global Note, the Trustee, or the Custodian at the direction of the Trustee,
shall make a notation on such Global Note as to the reduction in the principal
amount represented thereby. The Company shall notify the Trustee in writing of
any conversion of Securities effected through any Conversion Agent other than
the Trustee.

 

(i)                                     Upon conversion, a Holder shall not
receive any separate cash payment for accrued and unpaid interest except as set
forth below. The

 

95

 

Company’s repayment of Securities tendered for
conversion as described above shall be deemed to satisfy its obligation to pay
the principal amount of the Securities and accrued and unpaid Interest to, but
not including, the Conversion Date.  As a
result, accrued and unpaid Interest on the Securities to, but not including,
the Conversion Date shall be deemed to be paid in full rather than cancelled,
extinguished or forfeited. Notwithstanding the preceding sentence, if
Securities are converted after 5:00 p.m., New York City time, on a Regular
Record Date, Holders of such Securities as of 5:00 p.m., New York City
time, on such Regular Record Date shall receive the interest payable on such
Securities on the corresponding Interest Payment Date notwithstanding the
conversion. Securities surrendered for conversion during the period from 5:00 p.m.,
New York City time, on any Regular Record Date to 9:00 a.m., New York City
time, on the corresponding Interest Payment Date must be accompanied by payment
of an amount in cash equal to the interest payable, on such Interest Payment
Date, on the Securities so converted; provided, however, that no such payment
need be made (i) if the Company has specified a Fundamental Change
Repurchase Date that is after a Regular Record Date and prior to the
corresponding Interest Payment Date; (ii) to the extent of any overdue
interest remains unpaid at the time of conversion with respect to such Note; or
(iii) in respect of any conversions that occur on or after the Record Date
immediately preceding the Maturity Date. 
Except as described above, no payment or adjustment shall be made for
accrued interest on converted Securities.

 

(j)                                     Notwithstanding anything to the contrary
contained herein, if and to the extent that shareholder approval would be
required under the listing standards of The NASDAQ Stock Market to issue
additional shares of Common Stock following adjustments set forth in this
Indenture, the Company will either obtain shareholder approval or elect to
settle for such additional shares by paying in cash.

 

Section 12.03.  Fractions of Shares.

 

No fractional shares of Common Stock shall be issued
upon conversion of any Security or Securities. If more than one Security shall
be surrendered for conversion at one time by the same Holder, the number of
full shares which shall be issuable upon conversion thereof shall be computed
on the basis of the aggregate principal amount of the Securities (or specified
portions thereof) so surrendered. Instead of any fractional share of Common
Stock that would otherwise be issuable upon conversion of any Security or
Securities (or specified portions thereof), the Company shall calculate and pay
a cash adjustment in respect of such fraction (calculated to the nearest
1/100th of a share) based on the Daily VWAP on (x) the last VWAP Trading
Day of the applicable Observation Period in the case of conversions settled in
accordance with clause (iii) of Section 12.02(a) above and (y) the
Conversion Date (or, if the Conversion Date is not a Trading Day, the next
following Trading Day) if the Company elects to settle in accordance with
clause (i) of Section 12.02(a) above.

 

96

 

Section 12.04.  Adjustment of Conversion Rate.

 

The Conversion Rate shall be adjusted from time to
time by the Company as follows; provided that the Company shall not make any
adjustments to the Conversion Rate if Holders (as a result of holding the
Securities, and at the same time as common stockholders) participate in any of
the transactions described below as if such Holders held a number of shares of
Common Stock equal to the then-applicable Conversion Rate, multiplied by the
principal amount (expressed in thousands) of Securities held by such Holders,
without having to convert their Securities:

 

(a)                        In case the Company issues shares of
Common Stock as a dividend or distribution on shares of the Common Stock, or
the Company shall effect a share split or share combination, the Conversion
Rate shall be adjusted based on the following formula:

 

	
   

  	
  CR'
  = CR0

  	
  x

  	
  OS'

  	
   

  	
   

  
	
   

  	
  OS0

  	
   

  	
   

  

 

where,

 

CR0 = the
Conversion Rate in effect immediately prior to 5:00 p.m., New York City
time, on the Trading Day immediately preceding the Ex Date for such dividend or
distribution or the effective date of such share split or combination, as the
case may be;

 

CR' = the Conversion Rate
in effect immediately after 5:00 p.m., New York City time, on the Trading
Day immediately preceding the Ex Date for such dividend or distribution or the
effective date of such share split or combination, as the case may be;

 

OS0 = the
number of shares of Common Stock outstanding immediately prior to 5:00 p.m.,
New York City time, on the Trading Day immediately preceding the Ex Date for
such dividend or distribution or on the effective date of such share split or
combination, as the case may be; and

 

OS' = the number of
shares of Common Stock that would be outstanding as of 5:00 p.m., New York
City time, on the Trading Day immediately preceding the Ex Date for such
dividend or distribution after giving effect to such dividend or distribution
or immediately after the effective date of such share split or combination
after giving effect to such share split or combination, as the case may be.

 

Any adjustment made pursuant to this subsection (a) shall
become effective on the date that is immediately after (x) the Ex Date for
such dividend or

 

97

 

distribution, or (y) the date on which such split
or combination becomes effective, as applicable. If any dividend or
distribution of the type described in this Section 12.04(a) is
declared but not paid or made or the outstanding shares of Common Stock are not
split or combined, as the case may be, the Conversion Rate shall be readjusted,
effective as of the date the Board of Directors determines not to pay such
dividend or distribution, or split or combine the outstanding shares of Common
Stock, as the case may be, to the Conversion Rate that would then be in effect
if such dividend, distribution, share split or share combination had not been declared.

 

(b)                       In case the Company distributes to all or
substantially all holders of Common Stock any rights or warrants (other than,
as described below, rights distributed pursuant to a stockholders’ rights plan)
entitling them for a period of not more than 45 calendar days after the date of
such distribution to subscribe for or purchase shares of Common Stock at a
price per share less than the average of Last Reported Sale Prices of the
Common Stock on the ten Trading Days immediately preceding the date of public
announcement of such distribution, the Conversion Rate shall be adjusted based
on the following formula:

 

	
   

  	
  CR'
  = CR0

  	
  x

  	
  OS0
  + X

  	
   

  	
   

  
	
   

  	
  OS0
  + Y

  	
   

  	
   

  

 

where,

 

CR0 = the
Conversion Rate in effect immediately prior to 5:00 p.m., New York City
time, on the Trading Day immediately preceding the Ex Date for such
distribution;

 

CR' = the Conversion Rate
in effect immediately after 5:00 p.m., New York City time, on the Trading
Day immediately preceding the Ex Date for such distribution;

 

OS0 = the
number of shares of Common Stock outstanding immediately prior to 5:00 p.m.,
New York City time, on the Trading Day immediately preceding the Ex Date for
such distribution;

 

X = the total number of
shares of Common Stock issuable pursuant to such rights or warrants; and

 

Y = the number of shares
of Common Stock equal to the aggregate price payable to exercise such rights or
warrants divided by the average of the Last Reported Sale Prices of the Common
Stock over the 10 consecutive Trading Day period ending on the Trading Day
immediately preceding the date of public announcement of such distribution.

 

98

 

For purposes of this subsection (b), in determining
whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Prices over the ten
consecutive Trading Days immediately preceding the date of public announcement
of such distribution, and in determining the aggregate exercise or conversion
price payable for such shares of Common Stock, there shall be taken into
account any consideration received by the Company for such rights or warrants
and any amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of
Directors.  If any right or warrant
described in this paragraph (b) is not exercised or converted prior to the
expiration of the exercisability or convertibility thereof, the new Conversion
Rate shall be readjusted to the Conversion Rate that would have been in effect
if such unexercised or unconverted right or warrant had not been issued.

 

(c)       In case the Company distributes to shares
of any class of Capital Stock of the Company, evidences of its indebtedness or
other assets or property of the Company to all or substantially all holders of
Common Stock (but excluding dividends or distributions referred to in
subsection (a) or (b) of this Section 12.04, dividends or
distributions paid exclusively in cash referred to in subsection (d) of
this Section 12.04, and distributions described below in this subsection (c) with
respect to Spin-Offs), then, in each such case the Conversion Rate shall be
adjusted based on the following formula:

 

	
   

  	
  CR'
  = CR0

  	
  x

  	
  SP0

  	
   

  	
   

  
	
   

  	
  SP0
  – FMV

  	
   

  	
   

  

 

where,

 

CR0 = the
Conversion Rate in effect immediately prior to 5:00 p.m., New York City
time, on the Trading Day immediately preceding the Ex Date for such
distribution;

 

CR' = the Conversion Rate in effect
immediately after 5:00 p.m., New York City time, on the Trading Day
immediately preceding the Ex Date for such distribution;

 

SP0 = the
average of the Last Reported Sale Prices of Common Stock over the 10
consecutive Trading Day period ending on the Trading Day immediately preceding
the Ex Date for such distribution; and

 

FMV = the fair market
value of the shares of Capital Stock, evidences of indebtedness, assets or
property distributed with respect to each outstanding share of Common Stock on
the Ex Date for such distribution, as determined by the Board of Directors.

 

99

 

With respect to an adjustment pursuant to this
subsection (c) where there has been a payment of a dividend or other
distribution on the Common Stock in shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other
Company business unit (a “Spin-Off”), the
Conversion Rate in effect immediately before 5:00 p.m., New York City
time, on the 10th Trading Day immediately following, and including, the
effective date of the Spin-Off shall be increased based on the following
formula:

 

	
   

  	
  CR'
  = CR0

  	
  x

  	
  FMV0
  + MP0

  	
   

  	
   

  
	
   

  	
  MP0

  	
   

  	
   

  

 

where,

 

CR0 = the
Conversion Rate in effect immediately prior to the 10th Trading Day immediately
following the effective date of the Spin-Off;

 

CR' = the Conversion Rate in effect
immediately after the 10th Trading Day immediately following the effective date
of the Spin-Off;

 

FMV0 = the
average of the Last Reported Sale Prices of the Capital Stock or similar equity
interest distributed to holders of Common Stock applicable to one share of
Common Stock over the first 10 consecutive Trading Day period immediately following
(and excluding) the effective date of the Spin-Off or, if the Capital Stock or
similar equity interest distributed to holders of Common Stock is not traded on
a national or regional securities exchange or over-the-counter market, the fair
market value of such Capital Stock or equity interests representing the portion
of the distribution applicable to one share of Common Stock on such date as
determined by the Board of Directors; and

 

MP0 = the
average of the Last Reported Sale Prices per share of the Common Stock over the
first 10 consecutive Trading Day period immediately following (and excluding)
the effective date of the Spin-Off.

 

Such adjustment shall occur on the 10th Trading Day
from (and excluding) the effective date of the Spin-Off; provided that in
respect of any conversion within the 10 Trading Days immediately following, and
excluding, the effective date of any Spin-Off, references in this subsection (c) with
respect to the Spin-Off to 10 Trading Days shall be deemed replaced with such
lesser number of Trading Days as have elapsed between the effective date of
such Spin-Off and the Conversion Date in determining the applicable Conversion
Rate.

 

If any such dividend or distribution described in this
subsection (c) is declared but not paid or made, the Conversion Rate shall
be readjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared.

 

100

 

(d)           In
case the Company shall pay any cash dividends or distributions to all or
substantially all holders of its Common Stock, excluding (x) any dividend
or distribution in connection with the liquidation, dissolution or winding up
of the Company, whether voluntary or involuntary, or upon a merger or
consolidation of the Company and (y) the first dividend or distribution
with an Ex Date in any calendar quarter if such dividend or distribution does
not exceed $0.04 per share (the “Dividend Threshold Amount”),
the Conversion Rate shall be adjusted based on the following formula:

 

	
   

  	
  CR'
  = CR0

  	
  x

  	
  SP0  – T

  	
   

  	
   

  
	
   

  	
  SP0
  – C

  	
   

  	
   

  

 

where,

 

CR0 = the
Conversion Rate in effect immediately prior to 5:00 p.m., New York City
time, on the Trading Day immediately preceding the Ex Date for such
distribution;

 

CR' = the Conversion Rate in effect
immediately after 5:00 p.m., New York City time, on the Trading Day
immediately preceding the Ex Date for such distribution;

 

SP0 = the Last
Reported Sale Price of the Common Stock on the Trading Day immediately
preceding the Ex Date for such distribution;

 

T = (i) the Dividend
Threshold Amount, in the case of the first dividend or distribution with an Ex
Date in any calendar quarter or (ii) zero, in the case of any dividend or
distribution in a calendar quarter that is not the first such dividend or
distribution in such calendar quarter. 
The Dividend Threshold Amount shall be subject to adjustment on an
inversely proportional basis whenever the Conversion Rate is adjusted; provided
that no adjustment will be made to the Dividend Threshold Amount for any
adjustment made to the Conversion Rate as described under this clause (d); and

 

C = the cash amount per
share of Common Stock of the dividend or distribution.

 

Such adjustment shall become effective immediately
after 5:00 p.m., New York City time, on the Trading Day immediately
preceding the Ex Date for such distribution. If any such dividend or
distribution is declared but not so paid or made, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if
such dividend or distribution had not been declared.

 

 (e)          In case the Company or any of its
Subsidiaries make a payment in respect of a tender offer or exchange offer for
Common Stock, to the extent that the cash and value of any other consideration
included in the payment per share of Common Stock exceeds the Last Reported
Sale Price of the Common Stock on

 

101

 

the Trading Day next succeeding the last date on which
tenders or exchanges may be made pursuant to such tender or exchange offer, the
Conversion Rate shall be increased based on the following formula:

 

	
   

  	
  CR'
  = CR0

  	
  x

  	
  AC
  + (SP' x OS')

  	
   

  	
   

  
	
   

  	
  OS0
  x SP'

  	
   

  	
   

  

 

where,

 

CR0 = the
Conversion Rate in effect on the date such tender or exchange offer expires;

 

CR' = the Conversion Rate in effect on the
date next succeeding the date such tender or exchange offer expires;

 

AC = the aggregate value
of all cash and any other consideration as determined by the Board of Directors
paid or payable for shares purchased in such tender or exchange offer;

 

OS0 = the
number of shares of Common Stock outstanding immediately prior to the date such
tender or exchange offer expires;

 

OS' = the number of shares of Common Stock
outstanding immediately after the date such tender or exchange offer expires
(after giving effect to such tender offer or exchange offer); and

 

SP' = the Last Reported Sale Price of Common
Stock on the Trading Day next succeeding the date such tender or exchange offer
expires.

 

Such adjustment shall become effective immediately
after 5:00 p.m., New York City time, on the Trading Day next succeeding
the date such tender or exchange offer expires.

 

(f)            No
adjustment to the Conversion Rate shall be made if the application of any of
the formulas set forth in this Section 12.04 (other than in connection
with a share combination) would result in a decrease in the Conversion Rate.

 

In addition to any increases to the Conversion Rate
required by subsections (a), (b), (c), (d), and (e) of this Section 12.04,
and to the extent permitted by applicable law and the rules of the NASDAQ
Global Select Stock Market or any other securities exchange on which the Common
Stock is then listed, the Company from time to time may increase the Conversion
Rate by any amount for a period of at least 20 Business Days if the Board of
Directors determines that such increase would be in the Company’s best
interest, which determination shall be conclusive.  Whenever the Company decides to increase

 

102

 

the Conversion Rate pursuant to the preceding
sentence, the Company shall mail to the Holder of each Security at his last
address appearing on the register provided for in Section 7.01 and the
Trustee a notice of the increase at least 15 calendar days prior to the date
the increased Conversion Rate takes effect, and such notice shall state the
increased Conversion Rate and the period during which it will be in effect and
otherwise comply with applicable law. In addition, the Company may also (but is
not required to) increase the Conversion Rate to avoid or diminish any income
tax to holders of Common Stock or rights to purchase Common Stock in connection
with any dividend or distribution of shares (or rights to acquire shares) or similar
event.

 

(g)           Without
limiting the foregoing, except as otherwise provided in this Section 12.04
or in Section 12.01(e), no adjustment to the Conversion Rate will be made:

 

(i)            upon the issuance of any shares of
Common Stock pursuant to any plan providing for the reinvestment of dividends
or interest payable on securities of the Company and the investment of
additional optional amounts in shares of Common Stock under any plan;

 

(ii)           upon the issuance of any shares of
Common Stock or options or rights to purchase or acquire shares of Common Stock
pursuant to any present or future employee, director or consultant benefit plan
or program or stock purchase plan of or assumed by the Company or any of its
Subsidiaries;

 

(iii)          upon the issuance of any shares of Common
Stock pursuant to any option, warrant, right, or exercisable, exchangeable or
convertible security not described in clause (ii) above and outstanding
prior to the date of this Indenture;

 

(iv)          for a change in the par value of the
Common Stock; or

 

(v)           for accrued and unpaid interest.

 

(h)           All
calculations and other determinations under this Article shall be made by
the Company and shall be made to the nearest one-ten thousandth (1/10,000) of a
share. No adjustment to the Conversion Rate will be required unless the
adjustment would require an increase or decrease of at least 1% of the
Conversion Rate.  However, the Company
will carry forward any adjustments that are less than 1% of the Conversion Rate
that the Company elects not to make and take them into account upon the earlier
of (1) any conversion of Securities or (2) such time as all
adjustments that have not been made prior thereto would have the effect of
adjusting the Conversion Rate by at least 1%.

 

(i)            For
purposes of this Section 12.04, the number of shares of Common Stock at
any time outstanding shall not include shares held in the

 

103

 

treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares
of Common Stock.

 

(j)            With
respect to a conversion of Securities pursuant to this Article 12, at and
after 5:00 p.m., New York City time, on the Conversion Date (each such day
the  “Relevant Date”),
the Person in whose name any certificate representing any shares of Common
Stock issuable upon such conversion is registered shall be treated as a
stockholder of record of the Company on such Relevant Date.  On and after the Conversion Date with respect
to a conversion of Securities pursuant hereto, all rights of the Holders of
such Securities shall terminate, other than the right to receive the
consideration deliverable upon conversion of such Securities as provided
herein. A Holder of a Security is not entitled, as such, to any rights of a
holder of Common Stock until, if such Holder converts such Security and is
entitled pursuant hereto to receive shares of Common Stock in respect of such
conversion, 5:00 p.m., New York City time, on the Relevant Date or
respective Relevant Dates, as the case may be, with respect to such conversion.

 

(k)  To the extent that the Company has a
stockholders’ rights plan in effect upon conversion of the Securities into
Common Stock, you will receive, in addition to any Common Stock deliverable and
in lieu of any adjustment to the Conversion Rate, the rights under the
stockholders’ rights plan, unless prior to any conversion, the rights have
separated from Common Stock, in which case the Conversion Rate will be adjusted
at the time of separation as if the Company distributed to all holders of
Common Stock, shares of the Company’s Capital Stock, evidences of indebtedness
or assets as described in Section 12.04(c), subject to readjustment in the
event of expiration, termination or redemption of such rights.  A further adjustment will occur as described
in Section 12.04(d), if such rights become exercisable to purchase
different securities, evidences of indebtedness or assets, subject to
readjustment in the event of the expiration, termination or redemption of such rights.

 

(l)            If
during a period applicable for calculating the Last Reported Sale Price of
Common Stock or any other security, an event occurs that requires an adjustment
to the Conversion Rate, the Last Reported Sale Price of such security shall be
calculated for such period in a manner determined by the Company to
appropriately reflect the impact of such event on the price of such security
during such period.  Whenever any
provision of this Indenture requires a calculation of an average of Last
Reported Sale Prices of Common Stock or any other security over multiple days,
appropriate adjustments shall be made to account for any adjustment to the
Conversion Rate that becomes effective, or any event requiring an adjustment to
the Conversion Rate where the Ex Date of the event occurs, at any time during
the period during which the average is to be calculated.

 

Section 12.05. 
Notice of Adjustments of Conversion Rate.

 

Whenever the Conversion Rate is adjusted as herein
provided:

 

104

 

(a)           the
Company shall compute the adjusted Conversion Rate in accordance with Section 12.04
and shall prepare a certificate signed by an Officer of the Company setting
forth the adjusted Conversion Rate and showing in reasonable detail the facts
upon which such adjustment is based, and such certificate shall promptly be
filed with the Trustee and with each Conversion Agent (if other than the
Trustee); and

 

(b)           upon
each such adjustment, a notice stating that the Conversion Rate has been
adjusted and setting forth the adjusted Conversion Rate shall be required, and
such notice shall be provided by the Company to all Holders in accordance with Section 1.06.

 

Neither the Trustee nor any Conversion Agent shall be
under any duty or responsibility with respect to any such certificate or the
information and calculations contained therein, except to exhibit the same to
any Holder of Securities desiring inspection thereof at its office during
normal business hours.

 

Section 12.06. 
Company to Reserve Common Stock.

 

The Company shall at all times reserve and keep
available, free from preemptive rights, out of its authorized but unissued
Common Stock, for the purpose of effecting the conversion of Securities, the
full number of shares of Common Stock then issuable upon the conversion of all
Outstanding Securities.

 

Section 12.07. 
Certain Covenants.

 

Before taking any action which would cause an
adjustment reducing the Conversion Rate below the then par value, if any, of
the shares of Common Stock issuable upon conversion of the Securities, the
Company shall take all corporate action which it reasonably determines may be
necessary in order that the Company may validly and legally issue shares of
such Common Stock at such adjusted Conversion Rate.

 

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

 

The Company further covenants that if at any time the
Common Stock shall be listed for trading on any other national securities
exchange the Company shall, if permitted and required by the rules of such
exchange, list and keep listed, so long as the Common Stock shall be so listed
on such exchange, all Common Stock issuable upon conversion of the Securities.

 

Section 12.08. 
Cancellation of Converted Securities.

 

All Securities surrendered for the purpose of payment,
repurchase, conversion or registration of transfer, shall, if surrendered to
the Company or any

 

105

 

Paying Agent or any Security Registrar, be surrendered
to the Trustee and promptly cancelled by it, or, if surrendered to the Trustee,
shall be promptly cancelled by it, and no Securities shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this
Indenture. The Trustee shall dispose of cancelled Securities in accordance with
its customary procedures and shall promptly provide copies of all cancelled
certificates to the Company. If the Company shall acquire any of the
Securities, such acquisition shall not operate as satisfaction of the debt
represented by such Securities unless and until the same are delivered to the
Trustee for cancellation.

 

Section 12.09. 
Provision in Case of Effect of Reclassification,
Consolidation, Merger or Sale.

 

If there shall occur (i) any Fundamental Change
described in clause (2) of the definition of Fundamental Change, (ii) any
reclassification of Common Stock (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of a
split, subdivision or combination), (iii) any consolidation, binding share
exchange, recapitalization, reclassification, merger, combination or other
similar event, or (iv) any sale or conveyance of all or substantially all
of the property and assets of the Company to any other Person (excluding a
pledge of securities issued by any Subsidiary but including, to the extent
appropriate, any foreclosure on such pledged securities), in each case as a
result of which holders of Common Stock shall be entitled to receive cash,
securities or other property or assets with respect to or in exchange for their
shares of Common Stock (any such event described in clauses (i) through (iv) a
“Merger Event”), then the Company or the successor or purchasing Person, as the
case may be, shall execute with the Trustee (subject to the Trustee’s rights as
provided herein) 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 for the conversion and settlement of the Securities as set forth in
this Indenture. 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 12 and the Trustee may conclusively rely on the
determination by the Company of the equivalency of such adjustments. If, in the
case of any Merger Event, the Reference Property includes shares of stock or
other securities and assets of a company other than the successor or purchasing
company, as the case may be, in such change of control, consolidation, binding
share exchange, recapitalization, reclassification, merger, combination, sale
or conveyance or Fundamental Change described in clause (2) of the
definition of Fundamental Change, then such supplemental indenture shall also
be executed by such other company and shall contain such additional provisions
to protect the interests of the Holders of the Securities as the Board of
Directors shall reasonably consider necessary by reason of the foregoing,
including to the extent required by the Board of Directors and practicable the
provisions providing for the repurchase rights set forth in Article 11.

 

106

 

In the event a supplemental indenture is executed
pursuant to this Section 12.09, the Company shall promptly file with the
Trustee an Officer’s Certificate briefly stating the reasons therefor, the kind
or amount of cash, securities, property or assets that will constitute the
Reference Property after any such Merger Event, any adjustment to be made with
respect thereto and that all conditions precedent have been complied with, and
shall promptly mail notice thereof to all Holders, and the Trustee shall be
protected in relying on such Officer’s Certificate; it being understood that
the Trustee shall have no responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to this Section 12.09.

 

If any securities to be provided for the purpose of
conversion of Securities hereunder require registration with or approval of any
governmental authority under any federal or state law before such securities
may be validly issued upon conversion, each supplemental indenture executed
pursuant to this Section 12.09 shall provide that the Company or the
successor or the purchasing Person, as the case may be, or if the Reference
Property includes shares of stock or other securities and assets of a company
other than the successor or purchasing company, as the case may be, then such
company, shall use commercially reasonable efforts, to the extent then
permitted by the rules and interpretations of the Commission (or any
successor thereto), to secure such registration or approval in connection with
the conversion of Securities.

 

Notwithstanding the provisions of Section 12.02
and Section 12.03, and subject to the provisions of Section 12.01, at
the effective time of such Merger Event, the right to convert each $1,000 in
principal amount of Securities shall be changed to a right to convert such
Securities by reference to the kind and amount of cash, securities, or other
property that a holder of a number of shares of Common Stock equal to the
Conversion Rate immediately prior to such transaction would have owned or been
entitled to receive (the “Reference Property”)
such that from and after the effective time of such transaction, a Holder shall
be entitled thereafter to convert its Securities into the same type (and in the
same proportion) of Reference Property, subject to the Company’s right to elect
to settle conversions, in whole or in part, in shares of Common Stock, cash or
a combination of cash and shares of Common Stock, provided
that if the Company makes an irrevocable Net Share Settlement Election, upon
conversion, or if the Company elects to settle all or a portion of Securities
tendered for conversion in cash, Holders will receive Reference Property as
follows: (x) cash up to the aggregate principal portion or sum of the
Daily Cash Amounts upon any conversion (or, in the case of settlement solely in
cash, cash for the sum of the Daily Conversion Values in respect of such
conversion), and (y) in lieu of the shares of Common Stock otherwise
deliverable, Reference Property. The amount of consideration, and,
consequently, Reference Property, Holders receive upon conversion will be based
on the Daily Conversion Values of Reference Property and the applicable
Conversion Rate, as described in Section 12.02.  For purposes

 

107

 

of determining the constitution of Reference Property,
the type and amount of consideration that a holder of Common Stock would have
been entitled to in the case of any Merger Event that causes the Common Stock
to be converted into the right to receive more than a single type of consideration
determined, based in part upon any form of stockholder election, such
consideration will be deemed to be, (i) if holders of a majority of Common
Stock affirmatively make such an election, the weighted average of the types
and amounts of consideration received by holders of a plurality of Common Stock
that affirmatively make such an election, or (ii) if no (or a minority of)
holders of Common Stock affirmatively make such an election, the weighted
average of the types and amount of consideration actually received by all
holders of Common Stock. The Company shall not become a party to any such
transaction unless its terms are consistent with the preceding. None of the
foregoing provisions shall affect the right of a Holder to convert its
Securities in accordance with the provisions of this Article 12 prior to
the effective date of any such Merger Event. 
Notwithstanding the foregoing, if the Reference Property is all cash,
Holders will be entitled upon conversion to the consideration that they would
have been entitled to receive if they had held a number of shares of Common
Stock equal to the applicable Conversion Rate in effect immediately prior to
these events and payment upon conversion shall occur on the third business day
after the Conversion Date.

 

The Company shall cause notice of the execution of
such supplemental indenture to be mailed to each Holder, at its address
appearing on the Securities Register provided for in this Indenture, within 30
calendar 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 12.09 shall
similarly apply to successive Merger Events.

 

Section 12.10. 
Responsibility of Trustee for Conversion
Provisions.

 

The Trustee and any Conversion Agent shall not at any
time be under any duty or responsibility to any Holder of Securities to
determine whether any facts exist which may require any adjustment of the
Conversion Rate, or with respect to the nature or extent of any such adjustment
when made, or with respect to the method employed, herein or in any
supplemental indenture provided to be employed, in making the same, or whether
a supplemental indenture need be entered into. Neither the Trustee nor any
Conversion Agent shall be accountable with respect to the validity or value (or
the kind or amount) of any Common Stock, or of any other securities or property
or cash, which may at any time be issued or delivered upon the conversion of
any Securities; and it or they do not make any representation with respect
thereto. Neither the Trustee nor any Conversion Agent shall be responsible for
any failure of the Company to make or calculate any cash payment or to issue,
transfer or deliver any shares of Common Stock or share certificates or other
securities or property or cash upon the

 

108

 

surrender of any Security for the purpose of
conversion; and the Trustee and any Conversion Agent shall not be responsible
for any failure of the Company to comply with any of the covenants of the
Company contained in this Article.

 

[Signature pages follow]

 

109

 

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

 

	
   

  	
  VIRGIN MEDIA INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James F. Mooney

  
	
   

  	
   

  	
  Name: James F. Mooney

  
	
   

  	
   

  	
  Title: Chairman of the Board

  

 

 

[Trustee
Signature Follows]

 

 

[Signature Page to the
Indenture]

 

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Lee

  
	
   

  	
   

  	
  Name: Michael Lee

  
	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 

[Signature Page to the
Indenture]

 

 

Schedule A

 

	
  Stock

  Price

  	
   

  	
  April 16,

  2008

  	
   

  	
  November

  15, 2008

  	
   

  	
  November

  15, 2009

  	
   

  	
  November

  15, 2010

  	
   

  	
  November

  15, 2011

  	
   

  	
  November

  15, 2012

  	
   

  	
  November

  15, 2013

  	
   

  	
  November

  15, 2014

  	
   

  	
  November

  15, 2015

  	
   

  	
  November

  15, 2016

  	
   

  
	
  $

  	
  12.37

  	
   

  	
  28.8116

  	
   

  	
  28.8116

  	
   

  	
  28.1112

  	
   

  	
  27.4822

  	
   

  	
  27.0022

  	
   

  	
  26.6055

  	
   

  	
  26.2577

  	
   

  	
  26.0326

  	
   

  	
  26.2505

  	
   

  	
  28.8116

  	
   

  
	
  $

  	
  13.00

  	
   

  	
  26.8705

  	
   

  	
  26.8768

  	
   

  	
  26.1025

  	
   

  	
  25.4502

  	
   

  	
  24.9137

  	
   

  	
  24.4188

  	
   

  	
  23.9126

  	
   

  	
  23.4227

  	
   

  	
  23.1470

  	
   

  	
  24.8819

  	
   

  
	
  $

  	
  14.00

  	
   

  	
  24.1298

  	
   

  	
  24.1064

  	
   

  	
  23.3421

  	
   

  	
  22.6678

  	
   

  	
  22.0668

  	
   

  	
  21.4544

  	
   

  	
  20.7539

  	
   

  	
  19.9311

  	
   

  	
  19.0062

  	
   

  	
  19.3874

  	
   

  
	
  $

  	
  15.00

  	
   

  	
  21.8002

  	
   

  	
  21.7550

  	
   

  	
  21.0074

  	
   

  	
  20.3250

  	
   

  	
  19.6833

  	
   

  	
  18.9902

  	
   

  	
  18.1516

  	
   

  	
  17.0850

  	
   

  	
  15.6624

  	
   

  	
  14.6255

  	
   

  
	
  $

  	
  17.00

  	
   

  	
  18.0652

  	
   

  	
  17.9931

  	
   

  	
  17.2903

  	
   

  	
  16.6189

  	
   

  	
  15.9440

  	
   

  	
  15.1667

  	
   

  	
  14.1721

  	
   

  	
  12.8171

  	
   

  	
  10.7785

  	
   

  	
  6.7824

  	
   

  
	
  $

  	
  20.00

  	
   

  	
  14.0365

  	
   

  	
  13.9481

  	
   

  	
  13.3237

  	
   

  	
  12.7036

  	
   

  	
  12.0472

  	
   

  	
  11.2566

  	
   

  	
  10.2098

  	
   

  	
  8.7358

  	
   

  	
  6.4296

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  25.00

  	
   

  	
  9.7370

  	
   

  	
  9.6493

  	
   

  	
  9.1507

  	
   

  	
  8.6413

  	
   

  	
  8.0822

  	
   

  	
  7.3901

  	
   

  	
  6.4596

  	
   

  	
  5.1473

  	
   

  	
  3.1707

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  30.00

  	
   

  	
  7.0642

  	
   

  	
  6.9890

  	
   

  	
  6.5946

  	
   

  	
  6.1886

  	
   

  	
  5.7379

  	
   

  	
  5.1764

  	
   

  	
  4.4230

  	
   

  	
  3.3790

  	
   

  	
  1.9094

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  40.00

  	
   

  	
  4.0033

  	
   

  	
  3.9629

  	
   

  	
  3.7152

  	
   

  	
  3.4629

  	
   

  	
  3.1844

  	
   

  	
  2.8399

  	
   

  	
  2.3862

  	
   

  	
  1.7809

  	
   

  	
  1.0110

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  50.00

  	
   

  	
  2.3563

  	
   

  	
  2.3632

  	
   

  	
  2.2054

  	
   

  	
  2.0492

  	
   

  	
  1.8806

  	
   

  	
  1.6754

  	
   

  	
  1.4110

  	
   

  	
  1.0681

  	
   

  	
  0.6447

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  60.00

  	
   

  	
  1.3568

  	
   

  	
  1.4263

  	
   

  	
  1.3250

  	
   

  	
  1.2285

  	
   

  	
  1.1281

  	
   

  	
  1.0083

  	
   

  	
  0.8560

  	
   

  	
  0.6664

  	
   

  	
  0.4247

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  80.00

  	
   

  	
  0.3026

  	
   

  	
  0.4771

  	
   

  	
  0.4367

  	
   

  	
  0.4014

  	
   

  	
  0.3696

  	
   

  	
  0.3338

  	
   

  	
  0.2855

  	
   

  	
  0.2437

  	
   

  	
  0.1639

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  100.00

  	
   

  	
  0.0000

  	
   

  	
  0.0931

  	
   

  	
  0.0787

  	
   

  	
  0.0653

  	
   

  	
  0.0606

  	
   

  	
  0.0556

  	
   

  	
  0.0419

  	
   

  	
  0.0480

  	
   

  	
  0.0236

  	
   

  	
  0.0000

  	
   

  

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]