Document:

Exhibit 4.2

 

Exhibit 4.2

EXECUTION COPY

SINA CORPORATION

and

THE BANK OF NEW YORK,

as Trustee

________________________

INDENTURE

Dated as of July 7, 2003

________________________

Zero Coupon Convertible Subordinated Notes Due July 15, 2023

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 
	Trust Indenture	 	Indenture
	Act Section	 	Section
	
	 	

	310 (a)(1)
	 	 	8.10	 
	 	(a)(2)
	 	 	8.10	 
	 	(a)(3)
	 	 	N.A.	 
	 	(a)(4)
	 	 	N.A.	 
	 	(a)(5)
	 	 	N.A.	 
	 	(b)
	 	 	8.08; 8.10	 
	 	(c)
	 	 	N.A.	 
	311 (a)
	 	 	8.11	 
	 	(b)
	 	 	8.11	 
	 	(c)
	 	 	N.A.	 
	312 (a)
	 	 	2.05	 
	 	(b)
	 	 	13.03	 
	 	(c)
	 	 	13.03	 
	313 (a)
	 	 	8.06	 
	 	(b)(1)
	 	 	N.A.	 
	 	(b)(2)
	 	 	8.06	 
	 	(c)
	 	 	8.06	 
	 	(d)
	 	 	8.06	 
	314 (a)
	 	 	5.02; 5.03	 
	 	(b)
	 	 	N.A.	 
	 	(c)(1)
	 	 	13.04	 
	 	(c)(2)
	 	 	13.04	 
	 	(c)(3)
	 	 	N.A.	 
	 	(d)
	 	 	N.A.	 
	 	(e)
	 	 	13.05	 
	 	(f)
	 	 	N.A.	 

 

 

	 	 	 	 	 	 
	Trust Indenture	 	Indenture
	Act Section	 	Section
	
	 	

	315 (a)
	 	 	8.01(b)	 
	 	(b)
	 	 	8.05	 
	 	(c)
	 	 	8.01(a)	 
	 	(d)
	 	 	8.01(c)	 
	 	(e)
	 	 	7.11	 
	316 (a) (last sentence)
	 	 	2.09	 
	 	(a) (1)(A)
	 	 	7.05	 
	 	(a) (1)(B)
	 	 	7.04	 
	 	(a) (2)
	 	 	N.A.	 
	 	(b)
	 	 	7.07	 
	 	(c)
	 	 	N.A.	 
	317 (a)(1)
	 	 	7.08	 
	 	(a)(2)
	 	 	7.09	 
	 	(b)
	 	 	2.04	 
	318 (a)
	 	 	13.01	 

	N.	 	A. means Not Applicable.
	 
	NOTE: This Cross-Reference Table shall not, for any purpose, be deemed to be
a part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitions
	 	 	4	 
	Section 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	5	 
	Section 1.04. Rules of Construction
	 	 	6	 
	ARTICLE 2 THE SECURITIES
	 	 	6	 
	Section 2.01. Form and Dating
	 	 	6	 
	Section 2.02. Execution and Authentication
	 	 	7	 
	Section 2.03. Registrar, Paying Agent, Conversion Agent and New York Presenting Agent
	 	 	8	 
	Section 2.04. Payment on Securities; Paying Agent to Hold Money In Trust
	 	 	9	 
	Section 2.05. Securityholder Lists
	 	 	10	 
	Section 2.06. Transfer and Exchange
	 	 	10	 
	Section 2.07. Replacement Securities
	 	 	11	 
	Section 2.08. Outstanding Securities
	 	 	11	 
	Section 2.09. Treasury Securities
	 	 	12	 
	Section 2.10. Temporary Securities
	 	 	12	 
	Section 2.11. Cancellation
	 	 	12	 
	Section 2.12. Defaulted Interest
	 	 	13	 
	Section 2.13. CUSIP Numbers
	 	 	13	 
	Section 2.14. Additional Transfer and Exchange Requirements
	 	 	13	 
	ARTICLE 3 REDEMPTION
	 	 	20	 
	Section 3.01. Optional Redemption by the Company; Notice to Trustee
	 	 	20	 
	Section 3.02. Selection of Securities to be Redeemed
	 	 	20	 
	Section 3.03. Notice of Redemption
	 	 	21	 
	Section 3.04. Effect of Notice of Redemption
	 	 	22	 
	Section 3.05. Deposit of Redemption Price
	 	 	22	 
	Section 3.06. Securities Redeemed in Part
	 	 	22	 
	ARTICLE 4 REPURCHASES
	 	 	23	 
	Section 4.01. Purchase of Securities at Option of the Holder
	 	 	23	 
	Section 4.02. Repurchase upon Change of Control
	 	 	27	 
	Section 4.03. Notice Upon Change of Control, etc.
	 	 	27	 
	Section 4.04. Exercising Change of Control Repurchase Right
	 	 	28	 
	Section 4.05. Certain Definitions
	 	 	29	 
	Section 4.06. Compliance with Securities Laws
	 	 	29	 
	ARTICLE 5 COVENANTS
	 	 	30	 

 

 

	 	 	 	 	 
	Section 5.01. Payment of Securities
	 	 	30	 
	Section 5.02. Commission Reports
	 	 	30	 
	Section 5.03. Compliance Certificate
	 	 	30	 
	Section 5.04. Corporate Existence
	 	 	31	 
	Section 5.05. Notice of Defaults
	 	 	31	 
	Section 5.06. Further Instruments and Acts
	 	 	31	 
	Section 5.07. Registration Rights
	 	 	31	 
	Section 5.08. Additional Amounts
	 	 	31	 
	ARTICLE 6 SUCCESSORS
	 	 	32	 
	Section 6.01. When the Company may merge, etc.
	 	 	32	 
	ARTICLE 7 DEFAULTS AND REMEDIES
	 	 	33	 
	Section 7.01. Events of Default
	 	 	33	 
	Section 7.02. Acceleration
	 	 	35	 
	Section 7.03. Other Remedies
	 	 	35	 
	Section 7.04. Waiver of Past Defaults
	 	 	35	 
	Section 7.05. Control by Majority
	 	 	36	 
	Section 7.06. Limitation on Suits
	 	 	36	 
	Section 7.07. Rights of Holders to receive Payment
	 	 	36	 
	Section 7.08. Collection suit by Trustee
	 	 	37	 
	Section 7.09. Trustee may file Proofs of Claim
	 	 	37	 
	Section 7.10. Priorities
	 	 	37	 
	Section 7.11. Undertaking for Costs
	 	 	38	 
	ARTICLE 8 TRUSTEE
	 	 	38	 
	Section 8.01. Duties of Trustee
	 	 	38	 
	Section 8.02. Rights of Trustee
	 	 	39	 
	Section 8.03. Individual Rights of Trustee
	 	 	40	 
	Section 8.04. Trustee’s Disclaimer
	 	 	40	 
	Section 8.05. Notice of Defaults
	 	 	40	 
	Section 8.06. Reports by Trustee to Holders
	 	 	41	 
	Section 8.07. Compensation and Indemnity
	 	 	41	 
	Section 8.08. Replacement of Trustee
	 	 	42	 
	Section 8.09. Successor Trustee, Agents by Merger, etc.
	 	 	43	 
	Section 8.10. Eligibility; Disqualification
	 	 	43	 
	Section 8.11. Preferential Collection of Claims Against Company
	 	 	43	 
	ARTICLE 9 DISCHARGE OF INDENTURE
	 	 	43	 
	Section 9.01. Termination of Company’s Obligations
	 	 	43	 
	Section 9.02. Application of Trust Money
	 	 	44	 
	Section 9.03. Repayment to Company
	 	 	44	 
	Section 9.04. Indemnity for Government Obligations
	 	 	45	 
	Section 9.05. Reinstatement
	 	 	45	 
	ARTICLE 10 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	45	 

ii

 

	 	 	 	 	 
	Section 10.01. Without Consent of Holders
	 	 	45	 
	Section 10.02. With Consent of Holders
	 	 	46	 
	Section 10.03. Compliance with Trust Indenture Act
	 	 	47	 
	Section 10.04. Revocation and Effect of Consents
	 	 	47	 
	Section 10.05. Notation on or Exchange of Securities
	 	 	47	 
	Section 10.06. Trustee to Sign Amendments, etc.
	 	 	47	 
	ARTICLE 11 CONVERSION
	 	 	48	 
	Section 11.01. Conversion Privilege
	 	 	48	 
	Section 11.02. Conversion Procedure
	 	 	51	 
	Section 11.03. Fractional Shares
	 	 	53	 
	Section 11.04. Taxes on Conversion
	 	 	54	 
	Section 11.05. Company to Provide Stock
	 	 	54	 
	Section 11.06. Adjustment for Change in Capital Stock
	 	 	54	 
	Section 11.07. Adjustment for Rights Issue
	 	 	55	 
	Section 11.08. Adjustment for Certain Distributions
	 	 	56	 
	Section 11.09. Adjustment for all cash distribution
	 	 	57	 
	Section 11.10. Adjustment for Tender or Exchange Offer
	 	 	58	 
	Section 11.11. Current Market Price
	 	 	59	 
	Section 11.12. When adjustment may be deferred
	 	 	59	 
	Section 11.13. When no adjustment required
	 	 	60	 
	Section 11.14. Notice of Adjustment
	 	 	60	 
	Section 11.15. Voluntary Reduction
	 	 	60	 
	Section 11.16. Notice of Certain Transactions
	 	 	61	 
	Section 11.17. Provisions in case of Consolidation, Merger of the Company or Transfer
or Lease
	 	 	61	 
	Section 11.18. Company determination final
	 	 	62	 
	Section 11.19. Trustee’s Disclaimer
	 	 	62	 
	ARTICLE 12 SUBORDINATION
	 	 	62	 
	Section 12.01. Agreement to Subordinate
	 	 	62	 
	Section 12.02. Certain Definitions
	 	 	63	 
	Section 12.03. Liquidation; Dissolution; Bankruptcy
	 	 	64	 
	Section 12.04. Company not to make Payments with respect to Securities in certain
circumstances
	 	 	64	 
	Section 12.05. Acceleration of Securities
	 	 	65	 
	Section 12.06. Notice by Company
	 	 	65	 
	Section 12.07. Subrogation
	 	 	65	 
	Section 12.08. Relative Rights
	 	 	65	 
	Section 12.09. Subordination may not be impaired by Company
	 	 	66	 
	Section 12.10. Distribution or Notice to Representative
	 	 	66	 
	Section 12.11. Rights of Trustee and Paying Agent
	 	 	66	 
	Section 12.12. Effectuation of Subordination by Trustee
	 	 	67	 
	Section 12.13. Permitted Payments
	 	 	67	 

iii

 

	 	 	 	 	 
	ARTICLE 13 MISCELLANEOUS
	 	 	68	 
	Section 13.01. Trust Indenture Act Controls
	 	 	68	 
	Section 13.02. Notices
	 	 	68	 
	Section 13.03. Communications by Holders with Other Holders
	 	 	69	 
	Section 13.04. Certificate and Opinion as to Conditions Precedent
	 	 	69	 
	Section 13.05. Statements required in Certificate or Opinion
	 	 	69	 
	Section 13.06. Rules by Trustee and Agents
	 	 	70	 
	Section 13.07. Legal Holidays
	 	 	70	 
	Section 13.08. Governing Law; Consent To Jurisdiction and Service Of Process
	 	 	70	 
	Section 13.09. No recourse against others
	 	 	71	 
	Section 13.10. Successors
	 	 	71	 
	Section 13.11. Counterpart Originals
	 	 	71	 
	Section 13.12. Severability
	 	 	72	 
	Section 13.13. No Security Interest Created
	 	 	72	 
	Section 13.14. Benefits of Indenture
	 	 	72	 
	Exhibit A - Form of Security
	 	 	 	 

     NOTE: This Table of Contents shall not, for any purpose, be deemed to be a part of the Indenture.

iv

 

     INDENTURE dated July 7, 2003, between SINA CORPORATION, an exempted
company with limited liability incorporated under the laws of the Cayman
Islands (the “Company”), The Bank of New York, as trustee (in such capacity,
together with any co-trustee, agent or successor, as the case may be, the
“Trustee”), registrar and principal paying, transfer and conversion agent.

     Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Company’s Zero Coupon
Convertible Subordinated Notes Due July 15, 2023.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. Definitions

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

     “Agent” means any Registrar, Paying Agent, Conversion Agent, New York
Presenting Agent or Co-Registrar.

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

     “Associated Operating Companies” means Beijing SINA Internet Info. Service
Co. Ltd., Beijing Star-Village.com Cultural Development Co. Ltd., Guagzhou
Media Message Technologies, Inc., and Guangdong SINA Internet Info. Service Co.
Ltd.

     “Board of Directors” or “Board” means the Board of Directors of the
Company or any duly authorized committee of the Board.

     “Business Day” means any day that is not a Legal Holiday.

     “Certificated Security” means a Security that is in substantially the form
attached hereto as EXHIBIT A and that does not include the information or the
schedule called for by footnotes 1, 3 and 4 thereof.

     “Company” means the party named as such above until a successor replaces
it pursuant to the applicable provisions hereof and thereafter means the
successor.

1

 

     “Corporate Trust Office” means the principal office of the Trustee at 101
Barclay Street, 21 West, New York, NY 10286, Attention: Corporate Trust
Department (SINA Corporation, Zero Coupon Convertible Subordinated Notes due
July 15, 2023), or such other office, designated by the Trustee by written
notice to the Company and approved by the Company, at which at any particular
time its corporate trust business shall be administered.

     “Default” means any event that is, or after notice or passage of time
would be, an Event of Default.

     “Global Security” means a one or more notes in global form that are in
substantially the form attached hereto as EXHIBIT A and that include the
information and schedule called for by footnotes 1, 3 and 4 thereof and which
is deposited with the Depositary or its custodian and registered in the name of
the Depositary or its nominee or in the custody of the Trustee pursuant to the
FAST Balance Certificate Agreement between DTC and the Trustee.

     “Holder” or “Securityholder” means the person in whose name a Security is
registered on the Registrar’s books.

     “Indenture” means this Indenture, as amended or supplemented from time to
time.

     “Initial Purchasers’ Option” means the option granted by the Company to
the Initial Purchasers to purchase up to $20,000,000 aggregate principal amount
of additional Securities pursuant to the Purchase Agreement.

     “Officer” means the Chairman, the President, Vice President, Secretary,
General Counsel or the Chief Financial Officer of the Company.

     “Officers’ Certificate” means a certificate signed by two Officers. See
Sections 13.04 and 13.05.

     “Opinion of Counsel” means a written opinion from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or other counsel reasonably acceptable to the Trustee.
See Sections 13.04 and 13.05.

     “Ordinary Shares” shall mean the Company’s ordinary shares, $0.133 par
value per share, as they exist on the date of this Indenture or any other
capital stock of the Company into which such Ordinary Shares shall be
reclassified or changed.

     “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 and, for purposes of Article 4, shall have the additional
meaning set forth in Section 4.04(c).

     “Purchase Agreement” means the Purchase Agreement, dated June 30, 2003,
among the Company, Credit Suisse First Boston LLC and CITIC Capital Markets
Ltd. (the “Initial Purchasers”).

2

 

     “Record Date,” has the meaning set forth in the applicable Section.

     “Restricted Certificated Security” means a Certificated Security which is
a Transfer Restricted Security.

     “Restricted Global Security” means a Global Security that is a Transfer
Restricted Security.

     “Rule 144” means Rule 144 under the Securities Act or any successor to
such Rule.

     “SEC” means the Securities and Exchange Commission.

     “Security” or “Securities” means the Company’s Zero Coupon Convertible
subordinated Notes Due July 15, 2003.

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

     “Securities Custodian” means The Bank of New York, as custodian with
respect to the Securities in global form, or any successor entity thereto.

     “Subsidiary” means a corporation, a majority of the voting stock of which
is owned, directly or indirectly, by the Company or by one or more
Subsidiaries, or by the Company and one or more other Subsidiaries.

     “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and
regulations thereunder as in effect on the date of this Indenture, except to
the extent any amendment to the Trust Indenture Act expressly provides for
application of the Trust Indenture Act as in effect on another date.

     “Trading Day” means any day during which trading in securities generally
occurs on The NASDAQ National Market (or, if the Ordinary Shares are not quoted
on The NASDAQ National Market, on the principal other market on which the
Ordinary Shares are then traded), other than a day on which a material
suspension of or limitation on trading is imposed that affects either The
NASDAQ National Market (or, if applicable, such other market) in its entirety
or only the Ordinary Shares (by reason of movements in price exceeding limits
permitted by the relevant market on which the shares are traded or otherwise)
or on which The NASDAQ National Market (or, if applicable, such other market)
cannot clear the transfer of the Company’s shares due to an event beyond the
Company’s control.

     “Trust Officer” means any officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.

     “Trustee” means the party named as such above until a successor replaces
it pursuant to the applicable provisions hereof and thereafter means the
successor.

3

 

     “Unrestricted Global Security” means a Global Security that is not a
Transfer Restricted Security.

     Section 1.02. Other Definitions

	 	 	 	 	 
	Term	 	Defined in Section
	
	 	

	“Additional Amounts”	 	 	
5.08	 
	“Agent Members”	 	 	
2.01	 
	“Bankruptcy Law”	 	 	
7.01	 
	“Capital Stock”	 	 	
4.05	(a)
	“Company Notice”	 	 	
4.01	(c)
	“Conversion Agent”	 	 	
2.03	 
	“Conversion Date”	 	 	
11.01	 
	“Conversion Notice”	 	 	
11.02	 
	“Conversion Obligation”	 	 	
11.02	 
	“Conversion Price”	 	 	
11.01	 
	“Conversion Rate”	 	 	
11.01	(c)
	“Conversion Retraction Period”	 	 	
11.02	 
	“Conversion Value	 	 	
11.01	(c)
	“Current Market Price”	 	 	
11.11	 
	“Custodian”	 	 	
7.01	 
	“Depositary”	 	 	
2.01	(a)
	“DTC”	 	 	
2.01	(a)
	“Event of Default”	 	 	
7.01	 
	“Exchange Act”	 	 	
4.05	(b)
	“Expiration Time”	 	 	
11.10	 
	“Final Surrender Date”	 	 	
4.04	 
	“Change of Control”	 	 	
4.05	(b)
	“Change of Control Company Notice”	 	 	
4.03	 
	“Change of Control Purchase Date”	 	 	
4.04	(a)
	“Change of Control Purchase Price”	 	 	
4.02	 
	“Legal Holiday”	 	 	
13.07	 

4

 

	 	 	 	 	 
	Term	 	Defined in Section
	
	 	

	“New York Presenting Agent”	 	 	
2.03	 
	“Partial Cash Amount”	 	 	
11.02	(3)
	“Paying Agent”	 	 	
2.03	 
	“Purchase Date”	 	 	
4.01	(a)
	“Purchase Notice”	 	 	
4.01	 
	“Purchase Price”	 	 	
4.01	 
	“Purchased Shares”	 	 	
11.10	 
	“QIB”	 	 	
2.01	(a)
	“Registrar”	 	 	
2.03	 
	“Registration Default”	 	 	
5.08	 
	“Registration Default Interest”	 	 	
5.01	 
	“Registration Rights Agreement”	 	 	
2.06	 
	“Representative”	 	 	
12.02	 
	“Sale Price”	 	 	
11.01	(a)
	“Senior Indebtedness”	 	 	
12.02	 
	“Settlement Notice Period”	 	 	
11.02	 
	“Shelf Registration Statement”	 	 	
5.08	 
	“Trading Price”	 	 	
11.01	 
	“Transfer Certificate”	 	 	
2.14	(f)
	“Transfer Restricted Securities”	 	 	
2.14	(f)
	“U.S. Government Obligations”	 	 	
9.01	 
	“Volume Weighted Average Price”	 	 	
11.02	 
	“Voting Shares”	 	 	
4.05	(d)

     Whenever the definition contained in such section limits its application
to the term as used in specific sections, the foregoing shall not be deemed to
expand the application of such definition to the term as used in any section
other than such specific sections.

     Section 1.03. Incorporation by Reference of Trust Indenture Act.

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

     “Commission” means the SEC.

5

 

     “Indenture Securities” means the Securities.

     “Indenture Security Holder” means a Securityholder.

     “Indenture to be Qualified” means this Indenture.

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

     “Obligor” on the indenture securities means the Company or any other
obligor on the Securities.

     All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule and
not otherwise defined herein have the meanings assigned to them therein.

     Section 1.04. Rules of Construction

     Unless the context otherwise requires:

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

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

     (c)  “or” is not exclusive;

     (d)  words in the singular include the plural, and words in the plural
include the singular; and

     (e)  provisions apply to successive events and transactions.

ARTICLE 2

THE SECURITIES

     Section 2.01. Form and Dating.

     The Securities and the Trustee’s certificate of authentication to be borne
by such Securities shall be substantially in the form set forth in EXHIBIT A,
which Exhibit is incorporated in and made part of this Indenture. The
Securities may have notations, legends or endorsements required by law, stock
exchange rule or usage (provided that any such notations, legend or endorsement
is in a form acceptable to the Company). Each Security shall be dated the date
of its authentication. The Securities are being offered and sold by the
Company pursuant to the Purchase Agreement in a transaction exempt from, or not
subject to, the registration requirements of the Securities Act.

6

 

     (a)  Restricted Global Securities. Securities offered and sold to
qualified institutional buyers as defined in Rule 144A (collectively, “QIBs” or
individually, each a “QIB”) in reliance on Rule 144A under the Securities Act
or outside the United States in an offshore transaction in accordance with
Regulation S under the Securities Act shall be issued initially in the form of
one or more Restricted Global Securities, which shall be deposited on behalf of
the purchasers of the Securities represented thereby with the Trustee, at its
Corporate Trust Office, as custodian for the depositary, The Depository Trust
Company (“DTC”) (such depositary, or any successor thereto, being hereinafter
referred to as the “Depositary”), and registered in the name of its nominee,
Cede & Co. or shall remain in the custody of the Trustee pursuant to the Fast
Balance Certificate Agreement between DTC and the Trustee, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The
aggregate principal amount of the Restricted Global Security may from time to
time be increased or decreased by adjustments made on the records of the
Securities Custodian as hereinafter provided, subject in each case to
compliance with the Applicable Procedures.

     (b)  Global Securities in General. Each Global Security shall represent
such of the outstanding Securities as shall be specified therein and each shall
provide that it shall represent the aggregate amount of outstanding Securities
from time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased,
as appropriate, to reflect exchanges, redemptions, purchases or conversions of
such Securities. Any endorsement of a Global Security to reflect the amount of
any increase or decrease in the amount of outstanding Securities represented
thereby shall be made by the Securities Custodian in accordance with the
standing instructions and procedures existing between the Depositary and the
Securities Custodian.

     Members of, or participants in, the Depositary (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depositary or under any Global Security, and the Depositary
(including, for this purpose, its nominee) may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner and
Holder of such Global Security for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall (A) prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or (B)
impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any
Security.

     (c)  Certificated Securities. Certificated Securities shall be issued only
under the limited circumstances provided in Section 2.14(a)(1) hereof.

     Section 2.02. Execution and Authentication.

     An Officer shall sign the Securities on behalf of the Company by manual or
facsimile signature.

7

 

     If the Officer whose signature is on a Security no longer holds that
office at the time the Security is authenticated, the Security shall
nevertheless be valid.

     A Security shall not be valid until authenticated by the manual signature
of the Trustee. The Trustee’s signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

     The Trustee shall authenticate and make available for delivery Securities
for original issue in an aggregate principal amount of up to $80,000,000 upon a
written request or order signed in the name of the Company by its Chairman,
President, or Vice President and Secretary, General Counsel or Chief Financial
Officer (a “Company Order”) without any further action by the Company;
provided, however, that in the event that the Company sells any Securities
pursuant to the Initial Purchasers’ Option, then the Trustee shall authenticate
and deliver Securities for original issue in an aggregate principal amount of
up to $80,000,000 plus up to an additional $20,000,000 aggregate principal
amount of the Securities sold pursuant to the Initial Purchasers’ Option upon a
Company Order without any further action by the Company. The aggregate
principal amount of the Securities outstanding at any time may not exceed the
amount set forth in the foregoing sentence, subject to the proviso set forth
therein, except as provided in Section 2.07.

     The Trustee shall act as the initial authenticating agent. Thereafter,
the Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities. An authenticating agent may authenticate Securities
whenever the Trustee may do so, other than upon original issuance or pursuant
to Section 2.07. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with the Company or an Affiliate.

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

     Section 2.03. Registrar, Paying Agent, Conversion Agent and New York
Presenting Agent.

     The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or exchange (the “Registrar”), an office
or agency where Securities may be presented for payment (the “Paying Agent”)
and an office or agency where Securities may be presented for conversion (the
“Conversion Agent”). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may appoint one or more
Co-Registrars, one or more additional Paying Agents and one or more additional
Conversion Agents. The Company may act as Registrar, Paying Agent, Conversion
Agent or Co-Registrar. The term “Paying Agent” includes any additional paying
agent; the term “Conversion Agent” includes any additional conversion agent.
The Company shall notify the Trustee of the name and address of any Agent not a
party to this Indenture and shall give the Trustee at least thirty days’ notice
prior to changing the Registrar, Paying Agent or Conversion Agent. If the
Company fails to maintain a Registrar, Paying Agent or

8

 

 Conversion Agent, the Trustee shall act as such. The Company initially
appoints the Trustee as Paying Agent, Registrar and Conversion Agent.

     If there is not at least one of each such Registrar or Co-Registrar,
Paying Agent and Conversion Agent located in the Borough of Manhattan, The City
of New York, the Company shall also maintain an office in the Borough of
Manhattan, The City of New York where the Securities may be presented for
purposes of transfer and exchange, payment and conversion (the “New York
Presenting Agent”). The Company initially appoints The Bank of New York,
having an office at 101 Barclay Street, 21 West, New York, NY 10286, to serve
as New York Presenting Agent.

     Section 2.04. Payment on Securities; Paying Agent to Hold Money In Trust.

     (a)  Subject to the following provisions, no later than 11:00 a.m., The
City of New York time, one Business Day prior to the due date of principal of,
and interest, if any, on the Securities, the Company will pay to the Paying
Agent in immediately available funds the amounts, in money of the United States
that at the time of payment is legal tender for payment of public or private
debts, in the manner, at the times and for the purposes set forth herein and in
the text of the Securities, and the Company hereby authorizes and directs the
Paying Agent from funds so paid to it to make or cause to be made payment of
the principal of, and interest, if any, on the Securities set forth herein and
in the text of the Securities. The Paying Agent will make payment, from the
funds furnished by the Company, of the principal of, and interest, if any, on
the Securities by check drawn upon a bank in the city in which the Paying
Agent’s principal office is located, or make payment by wire transfer upon
terms acceptable to the Paying Agent.

     (b)  Principal of, and interest, if any, on Securities shall be payable
only against presentation and surrender thereof at the principal office of the
Paying Agent, unless the Company shall have otherwise instructed the Trustee in
writing.

     (c)  The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of, or interest, if any, on the Securities, and will
notify the Trustee of any default by the Company in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay
all money held by it to the Trustee. If the Company acts as Paying Agent, it
shall segregate the money held by it for the payment of principal of, and
interest, if any, on the Securities and hold it as a separate trust fund. The
Company shall provide ten days prior written notice to the Trustee that it is
to act as Paying Agent with respect to such payment and the Trustee may rely on
such notice. The Company at any time may require a Paying Agent to pay all
money held by the Paying Agent to the Trustee. Upon doing so the Paying Agent
shall have no further liability for the money so paid.

9

 

     Section 2.05. Securityholder Lists.

     The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least semiannually on June 1 and December 1 a list of
Securityholders dated within 15 days prior to the date on which the list is
furnished and at such other times as the Trustee may request in writing a list
in such form and as of such date as the Trustee may reasonably require of the
names and addresses of Securityholders.

     Section 2.06. Transfer and Exchange.

     (a)  Subject to compliance with any applicable additional requirements
contained in Section 2.14, when a Security is presented to a Registrar with a
request to register a transfer thereof or to exchange such Security for an
equal principal amount of Securities of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested;
provided, however, that every Security presented or surrendered for
registration of transfer or exchange shall be duly endorsed or accompanied by
an assignment form and, if applicable, a transfer certificate each in the form
included in EXHIBIT A, and in form satisfactory to the Registrar duly executed
by the Holder thereof or its attorney duly authorized in writing. To permit
registration of transfers and exchanges, upon surrender of any Security for
registration of transfer or exchange at an office or agency maintained pursuant
to Section 2.03, the Company shall execute and the Trustee shall authenticate
Securities of a like aggregate principal amount at the Registrar’s request.
Any exchange or transfer shall be without charge, except that the Company or
the Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto, and provided, that
this sentence shall not apply to any exchange pursuant to Section 2.14(a)(1),
3.06, 4.01(g), 4.04(d), 10.05 or 11.02.

     Neither the Company, any Registrar nor the Trustee shall be required to
exchange or register a transfer of (a) any Securities for a period of 15 days
next preceding any mailing of a notice of Securities to be redeemed, (b) any
Securities or portions thereof selected or called for redemption (except, in
the case of redemption of a Security in part, the portion not to be redeemed)
or (c) any Securities or portions thereof in respect of which a Purchase Notice
has been delivered and not withdrawn by the Holder thereof (except, in the case
of the purchase of a Security in part, the portion not to be purchased).

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

     (b)  Any Registrar appointed pursuant to Section 2.03 hereof shall provide
to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities.

10

 

     (c)  Each Holder of a Security agrees to indemnify the Company and the
Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder’s Security in violation of any provision of this
Indenture and/or applicable United States federal or state securities law.

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

     Section 2.07. Replacement Securities.

     If the Holder of a Security claims that the Security has been lost,
destroyed or stolen, or if a mutilated Security is surrendered to the Trustee,
the Company in its discretion may execute, and upon delivery of a Company
Order, the Trustee or an authenticating agent appointed by the Trustee shall
authenticate and make available for delivery, a new Security, bearing a number
not contemporaneously outstanding, in lieu of and in substitution for the
Security so lost, destroyed or stolen or in exchange and substitution for the
mutilated Security or stolen, provided that the Trustee’s requirements are met.
In every case an indemnity bond shall be required by the Trustee and the
Company, and such bond must be sufficient, in the judgment of both the Trustee
and the Company, to protect the Company, the Trustee, any Agent or any
authenticating agent from any loss which any of them may suffer if a Security
is replaced. The Company may charge for its expenses incurred in replacing a
Security.

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

     Section 2.08. Outstanding Securities.

     The Securities outstanding at any time are all Securities authenticated by
the Trustee (or an authenticating agent appointed pursuant to Section 2.02)
except for those cancelled by the Trustee, those converted pursuant to Article
11, those delivered to the Trustee for cancellation, those reductions in the
interests in a global Security effected by the Trustee hereunder, and those
described in this Section as not outstanding.

     A Security ceases to be outstanding if the Company or an Affiliate holds
the Security.

11

 

     If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

     If Securities are considered paid under Section 5.01, they cease to be
outstanding and interest on them, if any, ceases to accrue.

     If a Security is converted in accordance with Article 11, then from and
after such conversion, such Security shall cease to be outstanding.

     Section 2.09. Treasury Securities.

     In determining whether the Holders of the required principal amount of
Securities have concurred in any notice, direction, waiver or consent,
Securities owned by the Company, any Subsidiary, any other obligor on the
Securities or an Affiliate of the Company or such other obligor shall be
disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such notice, direction, waiver or consent,
only Securities which the Trustee knows are so owned shall be so disregarded.

     Section 2.10. Temporary Securities.

     Until definitive Securities are ready for delivery, the Company may
prepare and execute and, upon a Company Order, the Trustee shall authenticate
temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company, with the
consent of the Trustee, considers appropriate for temporary Securities. Every
temporary Security shall be executed by the Company, authenticated by the
Trustee, and registered by the Registrar, upon the conditions, and with like
effect, as a definitive Security. If temporary Securities are issued, the
Company shall prepare and the Trustee shall authenticate definitive Securities
in exchange for temporary Securities without unreasonable delay.

     Section 2.11. Cancellation.

     The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar, Paying Agent and Conversion Agent shall promptly
forward to the Trustee any Securities surrendered to them for registration of
transfer, exchange, payment or conversion. The Trustee shall promptly cancel
all Securities surrendered for registration of transfer, exchange, payment,
conversion or cancellation and may destroy cancelled Securities and deliver a
certificate of such destruction to the Company, unless the Company directs the
Trustee to deliver cancelled Securities to the Company. The Company may not
issue new Securities to replace Securities that it has paid or delivered to the
Trustee for cancellation or that any Securityholder has converted pursuant to
Article 11.

12

 

     Section 2.12. Defaulted Interest.

     If the Company defaults in any payment on the Securities, it shall, to the
fullest extent permitted by law, pay the defaulted interest in the amount of 4%
per annum (“Default Interest”) in any lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities are listed. It
may pay the Default Interest, plus any interest payable on overdue Default
Interest at the same rate compounded annually (to the extent that the payment
of such interest shall be legally enforceable), which interest on overdue
Default Interest shall accrue from the date such amount became overdue to the
Persons who are Securityholders on a subsequent special record date. The
Company shall fix the record date and payment date for the payment of any
Default Interest. At least 15 days before the record date, the Company shall
mail to each Securityholder and the Trustee a notice that states the record
date, payment date and amount of interest to be paid.

     Section 2.13. 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 notices
of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP numbers.

     Section 2.14. Additional Transfer and Exchange Requirements.

     (a)  Transfer and Exchange of Global Securities.

		
	 	     (1) Certificated Securities shall be issued in exchange for
interests in the Global Securities only if (x) the Depositary notifies
the Company that it is unwilling or unable to continue as depositary for
the Global Securities or if it at any time ceases to be a “clearing
agency” registered under the Exchange Act, if so required by applicable
law or regulation and a successor depositary is not appointed by the
Company within 90 days, or (y) an Event of Default has occurred and is
continuing. In either case, the Company shall execute, and the Trustee
shall, upon receipt of a Company order (which the Company agrees to
delivery promptly), authenticate and deliver Certificated Securities in
an aggregate principal amount equal to the principal amount of such
Global Securities in exchange therefor. Only Restricted Certificated
Securities shall be issued in exchange for beneficial interests in
Restricted Global Securities, and only Unrestricted Certificated
Securities shall be issued in exchange for beneficial interests in
Unrestricted Global Securities. Certificated Securities issued in
exchange for beneficial interests in Global Securities shall be
registered in such names and shall be in such authorized denominations as
the Depositary,

13

 

		
	 	pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. The Trustee shall deliver or
cause to be delivered such Certificated Securities to the persons in
whose names such Securities are so registered. Such exchange shall be
effected in accordance with the Applicable Procedures.

		
	 	     (2) Notwithstanding any other provisions of this Indenture other
than the provisions set forth in Section 2.14(a)(1), a Global Security
may not be transferred as a whole except by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such successor
Depositary.

     (b)  Transfer and Exchange of Certificated Securities.

     In the event that Certificated Securities are issued in exchange for
beneficial interests in Global Securities in accordance with Section 2.14(a)(1)
of this Indenture, on or after such event when Certificated Securities are
presented by a Holder to a Registrar with a request:

		
	 	     (x) to register the transfer of the Certificated Securities to a
person who will take delivery thereof in the form of Certificated
Securities only; or

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

such Registrar shall register the transfer or make the exchange as requested;
provided, however, that the Certificated Securities presented or surrendered
for register of transfer or exchange:

		
	 	     (1) shall be duly endorsed or accompanied by a written instrument of
transfer in accordance with the proviso to the first paragraph of Section
2.06(a); and

		
	 	     (2) in the case of a Restricted Certificated Security, such request
shall be accompanied by the following additional information and
documents, as applicable:

		
	 	     (i) if such Restricted Certificated Security is being
delivered to the Registrar by a Holder for registration in the name
of such Holder, without transfer, or such Restricted Certificated
Security is being transferred to the Company or a Subsidiary, a
certification to that effect from such Holder (in substantially the
form set forth in the Transfer Certificate);

		
	 	     (ii) (x) if such Restricted Certificated Security is being
transferred to a person who the Holder reasonably believes is a QIB
in accordance with

14

 

		
	 	Rule 144A or pursuant to an effective registration statement
or (y) if such Restricted Certificated Security is being
transferred to a non-U.S. person in an offshore transaction in
accordance with Rule 903 or Rule 904, under the Securities Act, a
certification to that effect from such Holder (in substantially the
form set forth in the Transfer Certificate); or

		
	 	     (iii) if such Restricted Certificated Security is being
transferred (i) pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144 or
(ii) pursuant to an exemption from the registration requirements of
the Securities Act (other than pursuant to Rule 144A or Rule 144)
and as a result of which, in the case of a Security transferred
pursuant to this clause (ii), such Security shall cease to be a
“restricted security” within the meaning of Rule 144, a
certification to that effect from the Holder (in substantially the
form set forth in the Transfer Certificate) and, if the Company or
such Registrar so requests, a customary opinion of counsel,
certificates and other information reasonably acceptable to the
Company and such Registrar to the effect that such transfer is in
compliance with the registration requirements of the Securities
Act.

	 	(c)	 	Transfer of a Beneficial Interest in a Restricted Global
Security for a Beneficial Interest in an Unrestricted Global
Security.

     Any person having a beneficial interest in a Restricted Global Security
may upon request, subject to the Applicable Procedures, transfer such
beneficial interest to a person who is required or permitted to take delivery
thereof in the form of an Unrestricted Global Security. Upon receipt by the
Trustee of written instructions, or such other form of instructions as is
customary for the Depositary, from the Depositary or its nominee on behalf of
any person having a beneficial interest in a Restricted Global Security and the
following additional information and documents in such form as is customary for
the Depositary from the Depositary or its nominee on behalf of the person
having such beneficial interest in the Restricted Global Security (all of which
may be submitted by facsimile or electronically):

		
	 	     (1) if such beneficial interest is being transferred pursuant to an
effective registration statement under the Securities Act, a
certification to that effect from the transferor (in substantially the
form set forth in the Transfer Certificate); or

		
	 	     (2) if such beneficial interest is being transferred (i) pursuant to
an exemption from the registration requirements of the Securities Act in
accordance with Rule 144 or (ii) pursuant to an exemption from the
registration requirements of the Securities Act (other than pursuant to
Rule 144A or Rule 144) and as a result of which, in the case of a
Security transferred pursuant to this clause (ii), such Security shall
cease to be a “restricted security” within the meaning of Rule 144, a
certification to that effect from the transferor (in substantially the
form set forth in the Transfer Certificate) and, if the Company or the
Trustee so requests, a customary opinion of

15

 

		
	 	counsel, certificates and other information reasonably acceptable to
the Company and the Trustee to the effect that such transfer is in
compliance with the registration requirements of the Securities Act,

the Trustee, as a Registrar and Securities Custodian, shall reduce or cause to
be reduced the aggregate principal amount of the Restricted Global Security by
the appropriate principal amount and shall increase or cause to be increased
the aggregate principal amount of the Unrestricted Global Security by a like
principal amount. Such transfer shall otherwise be effected in accordance with
the Applicable Procedures. If no Unrestricted Global Security is then
outstanding, the Company shall execute and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and
deliver an Unrestricted Global Security.

	 	(d)	 	Transfer of a Beneficial Interest in an Unrestricted Global
Security for a Beneficial Interest in a Restricted Global Security.

     Any person having a beneficial interest in an Unrestricted Global Security
may upon request, subject to the Applicable Procedures, transfer such
beneficial interest to a person who is required or permitted to take delivery
thereof in the form of a Restricted Global Security (it being understood that
only QIBs or a person acquiring Securities pursuant to the exemption provided
under Regulation S under the Securities Act may own beneficial interests in
Restricted Global Securities). Upon receipt by the Trustee of written
instructions or such other form of instructions as is customary for the
Depositary, from the Depositary or its nominee, on behalf of any person having
a beneficial interest in an Unrestricted Global Security and, in such form as
is customary for the Depositary, from the Depositary or its nominee on behalf
of the person having such beneficial interest in the Unrestricted Global
Security (all of which may be submitted by facsimile or electronically) a
certification from the transferor (in substantially the form set forth in the
Transfer Certificate) to the effect that such beneficial interest is being
transferred to a person that the transferor reasonably believes is a QIB in
accordance with Rule 144A or is being transferred to a non U.S. person in an
offshore transaction in accordance with Rule 903 or 904, under the Securities
Act, the Trustee, as a Registrar and Securities Custodian, shall reduce or
cause to be reduced the aggregate principal amount of the Unrestricted Global
Security by the appropriate principal amount and shall increase or cause to be
increased the aggregate principal amount of the Restricted Global Security by a
like principal amount. Such transfer shall otherwise be effected in accordance
with the Applicable Procedures. If no Restricted Global Security is then
outstanding, the Company shall execute and the Trustee shall, upon receipt of a
Company Order (which the Company agrees to deliver promptly), authenticate and
deliver a Restricted Global Security.

	 	(e)	 	Transfers of Certificated Securities for Beneficial Interest
in Global Securities.

     In the event that Certificated Securities are issued in exchange for
beneficial interests in Global Securities and, thereafter, the events or
conditions specified in Section 2.14(a)(1)

16

 

which required such exchange shall cease to exist, the Company shall mail
notice to the Trustee and to the Holders stating that Holders may exchange
Certificated Securities for interests in Global Securities by complying with
the procedures set forth in this Indenture and briefly describing such
procedures and the events or circumstances requiring that such notice be given.
Thereafter, if Certificated Securities are presented by a Holder to a
Registrar with a request:

		
	 	     (x) to register the transfer of such Certificated Securities
to a person who will take delivery thereof in the form of a
beneficial interest in a Global Security, which request shall
specify whether such Global Security will be a Restricted Global
Security or an Unrestricted Global Security; or

		
	 	     (y) to exchange such Certificated Securities for an equal
principal amount of beneficial interests in a Global Security,
which beneficial interests will be owned by the Holder transferring
such Certificated Securities (provided that in the case of such an
exchange, Restricted Certificated Securities may be exchanged only
for Restricted Global Securities and Unrestricted Certificated
Securities may be exchanged only for Unrestricted Global
Securities),

the Registrar shall register the transfer or make the exchange as requested by
canceling such Certificated Security and causing, or directing the Securities
Custodian to cause, the aggregate principal amount of the applicable Global
Security to be increased accordingly and, if no such Global Security is then
outstanding, the Company shall issue and the Trustee shall authenticate and
deliver a new Global Security; provided, however, that the Certificated
Securities presented or surrendered for registration of transfer or exchange:

		
	 	     (1) shall be duly endorsed or accompanied by a written instrument of
transfer in accordance with the proviso to the first paragraph of Section
2.06(a);

		
	 	     (2) in the case of a Restricted Certificated Security to be
transferred for a beneficial interest in an Unrestricted Global Security,
such request shall be accompanied by the following additional information
and documents, as applicable:

		
	 	     (i) if such Restricted Certificated Security is being
transferred pursuant to an effective registration statement under
the Securities Act, a certification to that effect from such Holder
(in substantially the form set forth in the Transfer Certificate);
or

		
	 	     (ii) if such Restricted Certificated Security is being
transferred pursuant to (i) an exemption from the registration
requirements of the Securities Act in accordance with Rule 144 or
(ii) pursuant to an exemption from the registration requirements of
the Securities Act (other than pursuant to

17

 

		
	 	Rule 144A or Rule 144) and as a result of which, in the case
of a Security transferred pursuant to this clause (ii), such
Security shall cease to be a “restricted security” within the
meaning of Rule 144, a certification to that effect from such
Holder (in substantially the form set forth in the Transfer
Certificate), and, if the Company or the Registrar so requests, a
customary opinion of counsel, certificates and other information
reasonably acceptable to the Company and the Trustee to the effect
that such transfer is in compliance with the registration
requirements of the Securities Act;

		
	 	     (3) in the case of a Restricted Certificated Security to be
transferred or exchanged for a beneficial interest in a Restricted Global
Security, such request shall be accompanied by a certification from such
Holder (in substantially the form set forth in the Transfer Certificate)
to the effect that such Restricted Certificated Security is being
transferred to a person the Holder reasonably believes is a QIB (which,
in the case of an exchange, shall be such Holder) in accordance with Rule
144A or is being transferred to a non U.S. person in an offshore
transaction in accordance with Rule 903 or 904, under the Securities Act;

		
	 	     (4) in the case of an Unrestricted Certificated Security to be
transferred or exchanged for a beneficial interest in an Unrestricted
Global Security, such request need not be accompanied by any additional
information or documents; and

		
	 	     (5) in the case of an Unrestricted Certificated Security to be
transferred or exchanged for a beneficial interest in a Restricted Global
Security, such request shall be accompanied by a certification from such
Holder (in substantially the form set forth in the Transfer Certificate)
to the effect that such Unrestricted Certificated Security is being
transferred to a person the Holder reasonably believes is a QIB (which,
in the case of an exchange, shall be such Holder) in accordance with Rule
144A or is being transferred to a non U.S. person in an offshore
transaction in accordance with Rule 903 or 904, under the Securities Act.

	 	(f)	 	Legends

		
	 	     (1) Except as permitted by the following paragraphs (2) and (3),
each Global Security and Certificated Security (and all Securities issued
in exchange therefor or upon registration of transfer or replacement
thereof) shall bear a legend in substantially the form called for by
footnote 2 to EXHIBIT A hereto (each a “Transfer Restricted Security” for
so long as it is required by this Indenture to bear such legend). Each
Transfer Restricted Security shall have attached thereto a certificate (a
“Transfer Certificate”) in substantially the form called for by footnote
5 to EXHIBIT A hereto.

18

 

		
	 	     (2) Upon any sale or transfer of a Transfer Restricted Security (w)
after the expiration of the holding period applicable to sales of the
Securities under Rule 144(k) of the Securities Act, (x) pursuant to Rule
144, (y) pursuant to an effective registration statement under the
Securities Act or (z) pursuant to any other available exemption (other
than Rule 144A) from the registration requirements of the Securities Act
and as a result of which, in the case of a Security transferred pursuant
to this clause (z), such Security shall cease to be a “restricted
security” within the meaning of Rule 144:

		
	 	     (i) in the case of any Restricted Certificated Security, any
Registrar shall permit the Holder thereof to exchange such
Restricted Certificated Security for an Unrestricted Certificated
Security, or (under the circumstances described in Section 2.14(e))
to transfer such Restricted Certificated Security to a transferee
who shall take such Security in the form of a beneficial interest
in an Unrestricted Global Security, and in each case shall rescind
any restriction on the transfer of such Security; provided,
however, that the Holder of such Restricted Certificated Security
shall, in connection with such exchange or transfer, comply with
the other applicable provisions of this Section 2.14; and

		
	 	     (ii) in the case of any beneficial interest in a Restricted
Global Security, the Trustee shall permit the beneficial owner
thereof to transfer such beneficial interest to a transferee who
shall take such interest in the form of a beneficial interest in an
Unrestricted Global Security and shall rescind any restriction on
transfer of such beneficial interest; provided, that such
Unrestricted Global Security shall continue to be subject to the
provisions of Section 2.14(a)(2); and provided, further, that the
owner of such beneficial interest shall, in connection with such
transfer, comply with the other applicable provisions of this
Section 2.14.

		
	 	     (3) Upon the exchange, registration of transfer or replacement of
Securities not bearing the legend described in paragraph (1) above, the
Company shall execute, and the Trustee shall authenticate and deliver
Securities that do not bear such legend and that do not have a Transfer
Certificate attached thereto.

		
	 	     (4) After the expiration of the holding period pursuant to Rule
144(k) of the Securities Act, the Company may with the consent of the
Holder of a Restricted Global Security or Restricted Certificated
Security, remove any restriction of transfer on such Security, and the
Company shall execute, and the Trustee shall authenticate and deliver
Securities that do not bear such legend and that do not have a Transfer
Certificate attached thereto.

19

 

		
	 	     (5) Any certificate representing Ordinary Shares issued upon
conversion of any Security shall also bear a legend in substantially the
form indicated in Section 2.14(f)(1) above for so long as any such
predecessor Security shall have been required pursuant to such Section
2.14(f) above to bear such legend.

		
	 	     (6) Any Securities or Ordinary Shares issued upon the conversion of
a Security that is purchased or owned by the Company or any Affiliate
thereof prior to the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor
provision), may not be resold by the Company or such Affiliate unless
registered under the Securities Act or resold pursuant to an exemption
from the registration requirements of the Securities Act in a transaction
which results in such Security or Ordinary Share, as the case may be, no
longer being “Restricted Securities” as defined under Rule 144; provided,
however, that this section shall not apply to any Securities or Ordinary
Shares that have previously been sold pursuant to an effective
Registration Statement or under Rule 144.

ARTICLE 3

REDEMPTION

     Section 3.01. Optional Redemption by the Company; Notice to Trustee

     The Securities may not be redeemed prior to July 15, 2012 and are
redeemable on such date and thereafter for cash at the option of the Company,
in accordance with this Article 3 and paragraph 5 of the Securities, as a whole
or in part, at any time and from time to time, at 100% of the principal amount
of the Securities being redeemed. Subject to Section 3.03, in case of any
redemption at the election of the Company of any of the Securities, the Company
shall, at least 45 days prior to the redemption date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee in writing of such redemption date and the principal amount of
Securities to be redeemed.

     If the Company elects to redeem any Securities pursuant to this Section
3.01, then Holders may convert Securities or portions thereof in accordance
with the terms and conditions set forth in Section 11.01(b), until the close of
business on the day that is two Business Days prior to the redemption date

     Section 3.02. Selection of Securities to be Redeemed

     If less than all the Securities are to be redeemed, the Trustee shall
select the Securities to be redeemed on a pro rata basis from Securities
outstanding and not previously called for redemption (unless the Company
specifically directs the Trustee otherwise), in such manner as the Trustee
shall deem fair and appropriate. The Trustee shall make the selection (and
provide the Company with written notice of such selection) at least 30 days
before the

20

 

redemption date. Securities and portions of them the Trustee selects for
redemption shall be in amounts of $1,000 or integral multiples of $1,000. In
the event that the Trustee is not the Registrar, the Registrar shall provide to
the Trustee such information as the Trustee may reasonably request to implement
the selection. Provisions of this Indenture that apply to Securities called
for redemption also apply to portions of Securities called for redemption. If
a portion of a Holder’s Securities is selected for partial redemption and the
Holder converts a portion of the Securities, the converted portion shall be
deemed to be the portion selected for redemption.

     Section 3.03. Notice of Redemption.

     At least 20 days but not more than 60 days before a redemption date, the
Company shall mail a notice of redemption to each Holder whose Securities are
to be redeemed at such Holder’s address as shown on the register kept by the
Registrar, and to beneficial owners as required by applicable law. The notice
shall identify the Securities to be redeemed and shall state:

     (1)  the redemption date;

     (2)  the redemption price;

     (3)  the then current Conversion Price;

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

     (5)  that Securities called for redemption may be converted at any time
before the close of business on the date that is two Business Days immediately
preceding the redemption date;

     (6)  that Holders who want to convert Securities must satisfy the
requirements set forth in paragraph 8 of the Securities;

     (7)  that Securities called for redemption must be surrendered to the
Paying Agent in order to collect the redemption price;

     (8)  that interest, if any, on Securities called for redemption ceases to
accrue on and after the redemption date (unless funds in the requisite amount
are not paid or made available for payment on that date), and the amount of
interest accrued on the Securities called for redemption up to but not
including the redemption date;

     (9)  if less than all of the outstanding Securities are to be redeemed, the
certificate number and principal amount of the Securities to be redeemed and
the principal amount of such Security to be redeemed;

21

 

     (10)  that, after the redemption date, upon presentation and surrender of
such Security, a new Security or Securities in aggregate principal amount equal
to the unredeemed portion thereof will be issued if less than all of the
outstanding Securities are to be redeemed;

     (11)  the CUSIP number, if any, printed on the Securities being redeemed;
and

     (12)  that no representation is made as to the correctness or accuracy of
the CUSIP number, if any, listed in such notice or printed on the Securities.

     If any of the Securities to be redeemed is in the form of a Global
Security, then the Company shall modify such notice to the extent necessary to
accord with the Applicable Procedures. Upon ten days prior notice to the
Trustee, the Company may request that the Trustee mail the notice of redemption
(prepared by the Company) in the Company’s name and at the Company’s expense.

     Section 3.04. Effect of Notice of Redemption.

     Once notice of redemption is mailed, Securities called for redemption,
unless previously converted into Ordinary Shares pursuant to the terms of this
Indenture, shall become due and payable on the redemption date at the
redemption price stated in the notice delivered pursuant to Section 3.03. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice plus Default Interest, if any.

     Section 3.05. Deposit of Redemption Price.

     No later than 11:00 a.m., The City of New York time, one Business Day
prior to the redemption date, the Company shall deposit in immediately
available funds with the Paying Agent (or, if the Company acts as Paying Agent,
shall segregate and hold in trust) money sufficient to pay the redemption price
of and Default Interest, if any, on all Securities to be redeemed on that date
other than Securities or portions thereof called for redemption on that date
which have been delivered by the Company to the Trustee for cancellation or
have been converted pursuant to Article 11. The Paying Agent shall return to
the Company any money not required for that purpose because of conversion of
Securities or if such money is then held by the Company in trust and is not
required for such purpose, it shall be discharged from the trust.

     Section 3.06. Securities Redeemed in Part.

     Upon surrender to the Trustee of a Security that is redeemed in part, the
Company shall execute and the Trustee shall authenticate for the Holder a new
Security equal in principal amount to the unredeemed portion of the Security
surrendered.

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ARTICLE 4

REPURCHASES

     Section 4.01. Purchase of Securities at Option of the Holder.

     (a)  Subject to the terms and conditions of this Article 4, the Company
shall purchase, at the option of the Holder thereof, all or any portion of the
Securities held by such Holder for cash on July 15 annually from 2007 to 2013
and on July 15, 2018 (and if such day is not a business day, on the following
business day) (each, a “Purchase Date”) at a purchase price per Security equal
to 100% of the aggregate principal amount of the Security (the “Purchase
Price”), together with accrued and unpaid interest, if any, up to but not
including the Purchase Date. The Company may not repurchase any Security
pursuant to this Section 4.01 at any time when the subordination provisions of
this Indenture otherwise would prohibit the Company from making payments in
respect of Securities.

     Purchases of Securities pursuant to this Article 4
shall be made, at the option of the Holder thereof, upon delivery to the
Paying Agent by the Holder of a written notice of purchase (a “Purchase
Notice”) at any time from the opening of business on the date that is 20
Business Days prior to the Purchase Date until the close of business on the
fifth Business Day prior to such Purchase Date stating:

		
	 	     (A) the certificate number of the Security which the Holder
will deliver to be purchased, in the case of certificated
securities,
	 
	 	     (B) the portion of the principal amount of the Security which
the Holder will deliver to be purchased, which portion must be in
principal amounts at maturity of $1,000 or an integral multiple
thereof,
	 
	 	     (C) that such Security shall be purchased as of the Purchase
Date pursuant to the terms and conditions specified in paragraph 6
of the Securities and in this Indenture, and
	 
	 	     (D) delivery of such Security to the Paying Agent prior to, on
or after the Purchase Date (together with all necessary
endorsements) at the offices of the Paying Agent, such delivery
being a condition to receipt by the Holder of the Purchase Price
therefor, together with all accrued interest, if any, shall be so
paid pursuant to this Section 4.01 only if the Security so
delivered to the Paying Agent shall conform in all respects to the
description thereof in the related Purchase Notice, as determined
by the Company.

     The Company shall purchase from the Holder thereof, pursuant to this
Section 4.01, a portion of a Security if the principal amount of such portion
is $1,000 or an integral multiple

23

 

of $1,000. Provisions of this Indenture that apply to the purchase of all
of a Security also apply to the purchase of any portion of such Security.

     Any purchase by the Company contemplated pursuant to the provisions of
this Section 4.01 shall be consummated by the delivery of the consideration to
be received by the Holder promptly following the later of the Purchase Date and
the time of delivery of the Security.

     Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent the Purchase Notice contemplated by this Section 4.01 shall
have the right to withdraw such Purchase Notice at any time prior to the close
of business on the second Business Day prior to the Purchase Date by delivery
of a written notice of withdrawal to the Paying Agent in accordance with
Section 4.01(e).

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

     (b)  The Purchase Price of Securities in respect of which a Purchase Notice
pursuant to Section 4.01(a) has been given shall be paid in U.S. legal tender
(cash).

     (c)  In connection with any purchase of Securities pursuant to this Section
4.01, the Company shall give written notice of the Purchase Date to the Holders
(the “Holder Option Notice”). The Holder Option Notice shall be sent by
first-class mail to the Trustee and to each Holder (and to each beneficial
owner as required by applicable law) not less than 20 Business Days prior to
any Purchase Date (the “ Holder Option Notice Date”). Each Holder Option
Notice shall include a form of Purchase Notice to be completed by a
Securityholder and shall state:

		
	 	     (i) the Purchase Price and the Conversion Price;

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

		
	 	     (iii) that Securities as to which a Purchase Notice has been given
may be converted if they are otherwise convertible only in accordance
with Article 11 hereof and paragraph 8 of the Securities if the
applicable Purchase Notice has been withdrawn in accordance with the
terms of this Indenture;

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

		
	 	     (v) that the Purchase Price for any Security as to which a Purchase
Notice has been given and not withdrawn will be paid promptly following
the later of the Purchase Date and the time of surrender of such Security
as described in subclause (iv) above;

24

 

		
	 	     (vi) the procedures the Holder must follow to exercise rights under
this Section and a brief description of those rights;

		
	 	     (vii) briefly, the conversion rights of the Securities;
	 
	 	     (viii) the procedures for withdrawing a Purchase Notice (including
pursuant to the terms of Section 4.01(e);
	 
	 	     (ix) that, unless the Company defaults in making payment on
Securities for which a Purchase Notice has been submitted, interest on
such Securities will cease to accrue on the Purchase Date, and
	 
	 	     (x) the CUSIP number of the Securities.

     If any of the Securities are to be redeemed in the form of a Global
Security, the Company shall modify such notice to the extent necessary to
accord with the Applicable Procedures.

     At the Company’s request, the Trustee shall give such Holder Option Notice
in the Company’s name and at the Company’s expense; provided, however, that, in
all cases, the text of such Holder Option Notice shall be prepared by the
Company.

     (d)  The Company shall deposit cash, in respect of purchases under this
Section 4.01, at the time and in the manner as provided in Section 4.01(f),
sufficient to pay the aggregate Purchase Price of all Securities, together with
all accrued interest, if any, to but not including, the Purchase Date, to be
purchased pursuant to this Section 4.01.

     (e)  Upon receipt by the Paying Agent of the Purchase Notice specified in
Section 4.01(a), the Holder of the Security in respect of which such Purchase
Notice was given shall (unless such Purchase Notice is withdrawn as specified
in the following two paragraphs) thereafter be entitled to receive solely the
Purchase Price, together with all accrued interest, if any, to but not
including, the Purchase Date thereon, with respect to such Security. Such
Purchase Price, together with all accrued interest, if any, to but not
including, the Purchase Date thereon, shall be paid to such Holder, subject to
receipt of funds by the Paying Agent, promptly following the later of (x) the
Purchase Date with respect to such Security (provided the conditions in Section
4.01(a) have been satisfied) and (y) the time of delivery of such Security to
the Paying Agent by the Holder thereof in the manner required by Section
4.01(a). Securities in respect of which a Purchase Notice has been given by
the Holder thereof may not be converted pursuant to Article 11 hereof on or
after the date of the delivery of such Purchase Notice, unless such Purchase
Notice has first been validly withdrawn as specified in the following two
paragraphs.

     A Purchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the
Purchase Notice at any

25

 

time prior to the close of business on the second Business Day prior to
the Purchase Date specifying:

		
	 	     (1) the certificate number, if any, of the Security in respect of
which such notice of withdrawal is being submitted (or if the Securities
are represented by Global Securities, the withdrawal notice must comply
with Applicable Procedures),

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

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

     A written notice of withdrawal of a Purchase Notice shall be in the form
set forth in the preceding paragraph.

     There shall be no purchase of any Securities pursuant to this Section 4.01
if there has occurred (prior to, on or after as the case may be, the giving, by
the Holders of such Securities, of the required Purchase Notice) and is
continuing an Event of Default (other than a default in the payment of the
Purchase Price with respect to such Securities). The Paying Agent will
promptly return to the respective Holders thereof any Securities (x) with
respect to which a Purchase Notice has been withdrawn in compliance with this
Indenture, or (y) delivered to it in accordance with Section 4.01 and held by
it during the continuance of an Event of Default (other than a default in the
payment of the Purchase Price with respect to such Securities) in which case,
upon such return, the Purchase Notice with respect thereto shall be deemed to
have been withdrawn.

     (f)  Prior to 10:00 a.m. (local time in The City of New York) on the
Business Day following the Purchase Date, the Company shall deposit with the
Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an
Affiliate of either of them is acting as the Paying Agent, shall segregate and
hold in trust as provided in Section 2.04(c)) an amount of money (in
immediately available funds if deposited on such Business Day) sufficient to
pay the aggregate Purchase Price of, together with all accrued interest to, if
any, but not including, the Purchase Date on, all the Securities or portions
thereof which are to be purchased as of the Purchase Date; provided, however,
that the Trustee or Paying Agent shall have no obligation to pay to the Holders
the Purchase Price until the Company has deposited with the Trustee and Paying
Agent such amounts of money described in this Section 4.01(f).

     (g)  Any Security which 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 deliver to the Holder without service

26

 

charge, a new Security or Securities, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange
for the unrepurchased portion of the principal of the Security so surrendered.

     Section 4.02. Repurchase upon Change of Control.

     Subject to the terms and conditions of this Article 4, in the event that
there occurs a Change of Control (as defined in Section 4.05(b) hereof), the
Company shall purchase, at the option of the Holder, all or any portion that is
an integral multiple of $1,000 of such Holder’s Securities on the Change of
Control Purchase Date (as defined in Section 4.04 below) selected by the
Company as provided below at a repurchase price (the “Change of Control
Purchase Price”) which is equal to 100% of the principal amount of such
Securities plus accrued and unpaid interest, if any, to the Change of Control
Purchase Date (defined below). The Company may not purchase any Security
pursuant to this Article 4 at any time when the subordination provisions of
this Indenture otherwise would prohibit the Company from making payments in
respect of the Securities.

     Section 4.03. Notice Upon Change of Control, etc.

     Unless the Company shall have theretofore called for redemption all the
outstanding Securities, on or before the 30th day after the occurrence of a
Change of Control, the Company shall deliver to the Trustee, and the Company
shall, or, if so requested by the Company upon ten days’ prior written notice,
the Trustee shall, in the name of the Company and at its expense, mail to each
Holder at such Holder’s address appearing in the Securities Register a written
notice (the “Change of Control Company Notice”) describing the occurrence of
the Change of Control and of the repurchase right set forth herein arising as a
result thereof, as well as stating the final date by which the Securities must
be surrendered for repurchase, the Conversion Price then in effect, the Change
of Control Purchase Date, the Change of Control Purchase Price and the
procedure which the Holder must follow to elect repurchase. The Company shall
also cause a copy of such notice of the repurchase right to be published in a
newspaper of general circulation in the Borough of Manhattan, The City of New
York which newspaper shall be The Wall Street Journal.

     No failure of the Company to give the foregoing notices or defect therein
shall limit any Holder’s right to exercise a repurchase right or affect the
validity of the proceedings for the repurchase of Securities.

     If any of the Securities is in the form of a Global Security, then the
Company shall modify such notice to the extent necessary to accord with the
Applicable Procedures.

27

 

     Section 4.04. Exercising Change of Control Repurchase Right.

     (a)  To elect repurchase of any Securities or portion thereof upon a Change
of Control, the Holder will be required to surrender, on or before the Final
Surrender Date (as defined below), (i) in the case of Global Securities, to the
Conversion Agent by book-entry delivery of the interest in the Security in
global form to be repurchased, or (ii) in the case of definitive Securities, at
any place where principal is payable, such Security duly endorsed or assigned
to the Company or in blank, in any event together with written notice of the
Holder’s election to have the Company repurchase all or any $1,000 portion of
such Security specified in such notice. Election of repurchase by a Holder
shall be irrevocable (unless the Company defaults in payment of the Change of
Control Purchase Price for the Securities on the Change of Control Purchase
Date) and the right to convert the Securities as to which such Holder has made
such election shall expire at 5:00 p.m. The City of New York on the Business
Day prior to the Change of Control Purchase Date (unless the Company defaults
in payment of the Change of Control Purchase Price for the Securities on the
Change of Control Purchase Date and such election is revoked). “Final
Surrender Date” shall mean the date, which is subject to any contrary
requirements of applicable law, 60 days after the date of mailing of the
Company Notice. “Change of Control Purchase Date” shall mean the date selected
by the Company for the repurchase of the Securities that is not less than 10
and not more than 30 days after the Final Surrender Date.

     (b)  In the event a repurchase right shall be exercised in accordance with
the terms hereof, the Company shall pay or cause to be paid the Change of
Control Purchase Price in cash to the Holder on the Change of Control Purchase
Date; provided, however, that interest, if any, due, shall be payable in cash
to the Holders of such Securities, registered as such at the close of business
on the relevant record date specified in the Securities according to the terms
and provisions of Article 2.

     (c)  If any Security surrendered for repurchase shall not be so repaid on
the Change of Control Purchase Date, the principal amount which is payable at
maturity shall, until the Change of Control Purchase Price (as calculated at
the date of payment) is paid, continue to bear interest, if any, from the
Change of Control Purchase Date as provided in Section 2.12 and in the
Registration Rights Agreement and each such Security shall continue to remain
convertible into Ordinary Shares until said Change of Control Purchase Price
shall have been paid to the Holder or duly provided for by deposit with the
Paying Agent in immediately available funds without restriction.

     (d)  Any Security which 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 deliver to the Holder without service charge, a
new Security or Securities, of any authorized denomination as requested by such
Holder in aggregate principal amount equal to and in exchange for the
unrepurchased portion of the principal of the Security so surrendered.

28

 

     Section 4.05. Certain Definitions.

     For purposes of this Article:

     (a)  The term “Capital Stock” shall mean capital stock of the Company;

     (b)  The term “Change of Control” shall mean a “person” or “group” (within
the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)), becoming the “beneficial owner” (as
defined in Rule l3d-3 under the Exchange Act) of Voting Shares (as defined
below) of the Company entitled to exercise more than 50% of the total voting
power of all outstanding Voting Shares of the Company (including any right to
acquire Voting Shares that are not then outstanding of which such person or
group is deemed the beneficial owner).

     (c)  The term “Person” shall include any syndicate or group which would be
deemed to be a “person” under Section 13(d)(3) of the Exchange Act as in effect
on the date of the original execution of this Indenture; and

     (d)  The term “Voting Shares” shall mean all outstanding shares of any
class or series (however designated) of Capital Stock entitled to vote
generally in the election of members of the Board of Directors.

     Section 4.06. Compliance with Securities Laws.

     In connection with any purchase or repurchase offer or redemption of
Securities under Sections 4.01, or 4.02 or Article 3 hereof, the Company shall,
as applicable:

     (a)  comply in all material respects with the provisions of Rule 13e-4,
rule 14e-1 and any other tender offer rules under the Exchange Act that may
then apply;

     (b)  file a Schedule TO, if required, or any other required schedule under
the Exchange Act; and

     (c)  otherwise comply with all federal and state securities laws so as to
permit the rights and obligations under Sections 4.01, and 4.02 and Article 3
to be exercised in the time and in the manner specified in Section 4.01, and
4.02 and Article 3.

29

 

ARTICLE 5

COVENANTS

     Section 5.01. Payment of Securities.

     The Company shall pay the principal of interest, if any, and the Purchase
Price and Change of Control Purchase Price, if any, of the Securities on the
dates and in the manner provided in the Securities and this Indenture.
Principal, interest, if any, and the Purchase Price and Change of Control
Purchase Price shall be considered paid on the date due if the Paying Agent
(other than the Company) holds, on one Business Day prior to such date, money
sufficient to pay all principal, interest, if any, then due and that is
immediately available on such date for payment to the Holders and that is not
subject to restriction including, but not limited to, the restrictions set
forth in Article 12 hereof.

     The Company, to the fullest extent permitted by law shall pay Default
Interest to the Holders (in immediately available funds) on overdue principal,
at the rate set forth in Section 2.12 and “Registration Default Interest” as
defined in, and pursuant to, the Registration Rights Agreement. All references
to interest herein shall refer to Default Interest or Registration Default
Interest, as applicable.

     Payment of the principal and interest, if any, on the Securities shall be
made at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York (which shall initially be The Bank
of New York, 101 Barclay Street — Lobby Level, Debt Processing Window, New
York, New York 10286) or at the Corporate Trust Office of the Trustee in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that
at the option of the Company, payment of interest amounts may be made by check
mailed to the address of the Person entitled thereto as such address appears in
the Register; provided further that a Holder with an aggregate principal amount
in excess of $2,000,000 will be paid by wire transfer in immediately available
funds at the election of such Holder if such Holder has provided wire transfer
instructions to the Company and to the Paying Agent at least 10 Business Days
prior to the payment date. The Trustee or Paying Agent shall not be obliged to
pay any Holders until the Company has deposited such amounts of money provided
in this Section 5.01 with the Trustee or the Paying Agent.

     Section 5.02. Commission Reports.

     The Company shall comply with the provisions of TIA Section 314(a).

     Section 5.03. Compliance Certificate.

     The Company shall deliver to the Trustee within 120 days after the end of
each fiscal year of the Company a brief certificate signed by the principal
executive officer, principal financial officer or principal accounting officer
and another officer as to his or her knowledge

30

 

of the Company’s compliance with all conditions and covenants under this
Indenture, specifying any known Events of Default. For purposes of this
Section 5.03, such compliance shall be determined without regard to any period
of grace or requirement of notice provided under this Indenture. The first
certificate pursuant to this Section shall be for the year ending on December
31, 2003.

     Section 5.04. Corporate Existence.

     Subject to Article 6, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate
existence, rights (charter and statutory) and franchise; 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 and that the
loss thereof is not disadvantageous in any material respect to the Holders.

     Section 5.05. Notice of Defaults.

     In the event that the Company becomes aware of an Event of Default
described in Section 7.01(4), the Company will promptly give written notice to
the Trustee of such occurrence, or of the occurrence of an event which, with
the giving of notice or the passage of time, or both, would entitle the holder
or holders of such indebtedness to declare such indebtedness due and payable
before its maturity.

     Section 5.06. Further Instruments and Acts.

     Upon request of the Trustee, the Company will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purposes of this Indenture.

     Section 5.07. Registration Rights.

     The Holders shall have the benefit of the Registration Rights Agreement,
dated July 7, 2003, between the Company and the Initial Purchasers and, in the
event of Registration Default (as defined therein), the Company shall pay to
the Holders the Default Interest, as defined and set forth therein.

     Section 5.08. Additional Amounts.

     All payments of Registration Default Interest due pursuant to the
Registration Rights Agreement, if any, in respect of the Securities shall be
made free and clear of, and without withholding or deduction for, any taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or within the Cayman Islands, Hong Kong or
the PRC or any authority therein or thereof having power to tax, unless such
withholding or deduction is required by law. If any such withholding is
required

31

 

by law, the Company shall pay such additional amounts (“Additional
Amounts”) as will result in receipt by the Holders of the Securities of such
amounts as would have been payable to the Holders had no such withholding or
deduction been required, except that no such Additional Amounts shall be
payable in respect of any tax or other governmental charge that would not have
been imposed but for a connection between the Holder or beneficial owner of a
note and the Cayman Islands, Hong Kong or the PRC or any political subdivision
or any authority thereof or therein, as the case may be, otherwise than merely
holding such note.

     The Company shall furnish to the Trustee, within 30 days after the date
the payment of any such taxes is due pursuant to applicable law, certified
copies of tax receipts evidencing that such payment has been made. The Company
shall indemnify and hold harmless each such Holder of Securities and upon
written request reimburse each such Holder for the amount of:

		
	 	     (i) any such taxes so levied or imposed and paid by such Holder as a
result of payments made under or with respect to the Securities in
respect of a Registration Default,
	 
	 	     (ii) any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, and
	 
	 	     (iii) any such taxes levied or imposed and paid by such Holder with
respect to any reimbursement under (i) and (ii) above, but excluding any
such taxes on such Holder’s net income or capital. The obligation to
indemnify shall survive redemption or conversion of the Securities.

     Unless the context otherwise requires, any reference in the Securities to
payments shall be deemed to include any Additional Amounts which may be payable
as described above.

ARTICLE 6

SUCCESSORS

     Section 6.01. When the Company may merge, etc.

     The Company shall not consolidate or merge with or into, or sell, lease,
convey or otherwise dispose of all or substantially all of its assets to, any
Person unless:

     (1)  the Company is the surviving person or that Person is a corporation
organized under the laws of the Cayman Islands or the United States, any state
thereof or the District of Columbia or organized under the laws of a foreign
jurisdiction and whose equity securities are listed on a national securities
exchange in the United States or authorized for quotation on

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The NASDAQ National Market or any similar United States system of
automated dissemination of quotations of securities;

     (2)  that Person assumes by supplemental indenture executed and delivered
to the Trustee, in form satisfactory to the Trustee, all the obligations of the
Company under the Securities and this Indenture, except that it need not assume
the obligations of the Company as to conversion of Securities if, pursuant to
Section 11.17, the Company or another Person enters into a supplemental
indenture obligating it to deliver securities, cash or other assets upon
conversion of Securities;

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

     (4)  the Company has delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, transfer
or lease and such supplemental indenture comply with this Article and that all
conditions precedent herein provided for related to such transaction have been
complied with.

     In any event falling under this Article 6, the surviving, transferee or
lessee corporation shall be the successor Company, but the predecessor Company
in the case of a transfer or lease shall not be released from the obligation to
pay the principal amount or Purchase Price or Change of Control Purchase Price
of and interest, if any, on the Securities.

ARTICLE 7

DEFAULTS AND REMEDIES

     Section 7.01. Events of Default.

     An “Event of Default” occurs if:

     (1)  the Company defaults in the payment of (A) principal of any Security
when the same becomes due and payable, whether at maturity, upon redemption or
otherwise, or (B) the Purchase Price or Change of Control Purchase Price in
respect of any Security when due, whether or not such payment is prohibited by
the subordination provisions of the Indenture;

     (2)  the Company defaults in the payment of interest, if any, on any
Security which continues for 30 days or more after such payment is due, whether
or not such payment is prohibited by the subordination provisions of the
Indenture.

     (3)  the Company defaults in the performance of any other covenants or
agreements in this Indenture and such default continues for the period and
after the notice specified below;

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     (4)  the Company, any Subsidiary or Associated Operating Company defaults
in the payment when due, including any applicable grace period, in respect of
indebtedness for borrowed money, which payment is in an amount in excess of
$15,000,000, or the Company, any Subsidiary or any Associated Operating Company
defaults with respect to any indebtedness for borrowed money, which default
results in acceleration of any such indebtedness which is in an amount of in
excess of $15,000,000;

     (5)  the Company pursuant to or within the meaning of any Bankruptcy Law
(as defined below):

		
	 	     (A) commences a voluntary case;
	 
	 	     (B) consents to the entry of an order for relief against it in an
involuntary case;
	 
	 	     (C) consents to the appointment of a Custodian (as defined below) of
it or for all or substantially all of its property; or
	 
	 	     (D) makes a general assignment for the benefit of its creditors; or

     (6)  a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:

		
	 	     (A) is for relief against the Company in an involuntary case;
	 
	 	     (B) appoints a Custodian of the Company or for all or substantially
all of its property, and the order or decree remains unstayed and in
effect for 90 consecutive days; or
	 
	 	     (C) orders the liquidation of the Company, and the order or decree
remains unstayed and in effect for 90 consecutive days.

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

     A Default under clause (3) above is not an Event of Default until the
Trustee or, subject to Section 2.09, the Holders of at least 25% in aggregate
principal amount of the Securities at the time outstanding notify the Company
in writing of the Default and the Company does not cure the Default within 60
days after receipt of the notice. The notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default”. When a
Default is cured, it ceases to exist.

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     Section 7.02. Acceleration.

     If any Event of Default described in Section 7.01(1) through (3) occurs
and is continuing, the Trustee, by written notice to the Company, or, subject
to Section 2.09, the Holders of at least 25% in aggregate principal amount of
the outstanding Securities (subject to the Trustee’s right under this Indenture
to be indemnified to its satisfaction) at the time outstanding, by written
notice to the Company and the Trustee, may declare the principal of and accrued
and unpaid interest, if any, on all Securities to be immediately due and
payable. Upon such declaration such principal and interest shall be due and
payable immediately. If any Event of Default described in Section 7.01(5) or
(6) occurs and is continuing for the respective periods set forth in such
Section 7.01(5) or (6) the principal of, and interest, if any, on all
Securities shall automatically become due and payable, without any action
required of the Trustee or the Holders. The Holders of a majority in principal
amount of the Securities by notice to the Trustee (and without notice to any
other Securityholder) may rescind and annul an acceleration and its
consequences if all existing Events of Default have been cured or waived except
nonpayment of principal or interest that has become due solely because of the
acceleration, if the rescission would not conflict with any judgment or decree
of a court of competent jurisdiction, and if all payments (including fees and
expenses) due to the Trustee have been paid.

     Section 7.03. Other Remedies.

     If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal or the Purchase Price
or Change of Control Purchase Price of or interest, if any, on the Securities
or to enforce the performance of any provision of the Securities or this
Indenture.

     The Trustee may maintain a proceeding even if the Trustee does not possess
any of the Securities or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Securityholder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No
remedy is exclusive of any other remedy and all remedies are cumulative.

     Section 7.04. Waiver of Past Defaults.

     Subject to Section 2.09, the Holders of a majority in aggregate principal
amount of the Securities at the time outstanding, by written notice to the
Trustee, may waive an existing Default and its consequences except a Default in
the payment of the principal of or premium, if any, or interest on any Security
or a Default under Article 11. When a Default is waived, it is cured and
ceases to exist. This Section 7.04 shall be in lieu of TIA ss. 316(a)(1)(B),
and TIA ss. 316(a)(1)(B) is hereby expressly excluded from this Indenture and
Section, as permitted by the TIA.

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     Section 7.05. Control by Majority.

     Subject to Section 2.09, the Holders of a majority in aggregate principal
amount of the Securities may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, is unduly prejudicial to
the rights of another Securityholder, or would expose the Trustee to liability
or expense for which it has not been offered indemnity or security satisfactory
to it. This Section 7.05 shall be in lieu of TIA ss. 316(a)(1)(A), and TIA ss.
316(a)(1)(A) is hereby expressly excluded from this Indenture and Section, as
permitted by the TIA.

     Section 7.06. Limitation on Suits.

     A Securityholder may pursue any remedy with respect to this Indenture or
the Securities only if:

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

     (2)  the Holders of at least 25% in principal amount of the Securities at
the time outstanding make a written request to the Trustee to pursue the
remedy;

     (3)  such Holder or Holders offer to the Trustee indemnity or security
satisfactory to the Trustee against any loss, liability or expense to be, or
which may be, incurred by the Trustee in pursuing the remedy;

     (4)  the Trustee does not comply with the request within 60 days after
receipt of the request and the offer of indemnity; and

     (5)  during such 60-day period the Holders of a majority in principal
amount of the Securities do not give the Trustee a direction inconsistent with
the request.

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

     Section 7.07. Rights of Holders to receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of the principal of and interest, if any, on the
Security on or after the respective due dates expressed in the Security, and to
convert such Security in accordance with Article 11, or to bring suit for the
enforcement of any such payment on or after such respective due dates and such
right to convert, is absolute and unconditional and shall not be impaired or
affected without the consent of the Holder.

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     Section 7.08. Collection suit by Trustee.

     If an Event of Default specified in Section 7.01(1) or (2) occurs and is
continuing, the Trustee may recover judgment in its own name and as Trustee of
an express trust against the Company for the whole amount of principal,
premium, if any, Purchase Price or Change of Control Purchase Price, if any,
and any interest remaining unpaid together with interest on overdue principal
and premium, if any, and on the principal amount of any Security for which the
Purchase Price or Change of Control Purchase Price is overdue, and, to the
extent that payment of such interest is lawful, interest on overdue
installments of interest in at the rates per annum set forth herein and in the
Registration Rights Agreement, as the case may be.

     Section 7.09. Trustee may file Proofs of Claim.

     The Trustee may file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the Trustee and
the Securityholders allowed in any judicial proceeding relative to the Company,
its creditors or its property.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder 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 Securityholder in any such proceedings.

     Section 7.10. Priorities.

     If the Trustee collects any money or property pursuant to this Article 7,
it shall pay out the money or property in the following order:

	 	 	 	First: to the Trustee for amounts due under Section 8.07 or
any other provision of this Indenture;
	 
	 	 	 	Second: to holders of Senior Indebtedness to the extent
required by Article 12;
	 
	 	 	 	Third: to Securityholders for amounts due and unpaid on the
Securities for principal, premium, if any, Purchase Price or
Change of Control Purchase Price, if any, and interest, if
any, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Securities
for principal, premium, if any, Purchase Price or Change of
Control Purchase Price, if any, and interest, if any,
respectively; and

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	 	 	 	Fourth: to the Company.

     The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 7.10.

     Section 7.11. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 7.07, or a suit by a Holder or Holders of more than 10% in
aggregate principal amount of the Securities then outstanding.

ARTICLE 8

TRUSTEE

     Section 8.01. Duties of Trustee.

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

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

		
	 	     (1) the Trustee need perform only those duties that are specifically
set forth in this Indenture and no others; and
	 
	 	     (2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of
this Indenture, but need not verify the accuracy of the contents thereof.

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

		
	 	     (1) this paragraph does not limit the effect of paragraph (b) of
this Section;

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	 	     (2) the Trustee shall not be liable for any error of judgment made
in good faith by a Trust Officer, unless it is proved that the Trustee
was grossly negligent in ascertaining the pertinent facts;
	 
	 	     (3) the Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 7.05; and
	 
	 	     (4) 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.

     (d)  Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section.

     (e)  The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree with the Company. Money held in trust by
the Trustee need not be segregated from other funds except to the extent
required by law and need not be invested except as agreed to by the Trustee.

     Section 8.02. Rights of Trustee.

     Subject to Section 8.01:

     (a)  the Trustee may rely on any document believed by it to be genuine and
to have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document;

     (b)  before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate or Opinion of Counsel;

     (c)  the Trustee may act through agents and shall not be responsible for
the misconduct or negligence of any agent appointed with due care;

     (d)  the Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers;

     (e)  the Trustee may consult with counsel reasonably acceptable to the
Trustee, which may be counsel to the Company, and the advice of such counsel as
to matters of law shall be full and complete authorization and protection in
respect of any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such

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counsel, and the Company shall reimburse the Trustee for any expenses,
including attorneys fees, incurred in connection with the actions contemplated
by this Section 8.01(e);

     (f)  the Trustee shall not be bound to ascertain or inquire as to the
performance or observance of any covenants, conditions or agreements on the
part of the Company under this Indenture; but the Trustee may require of the
Company full information and advice as to the performance of the covenants,
conditions and agreements aforesaid; and

     (g)  the Trustee shall not be required to give any bond or surety in
respect of the execution of its trusts and powers or in respect of this
Indenture.

     Section 8.03. Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner
or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights the Trustee would have if it were not Trustee.
Any Agent may do the same with like rights.

     Section 8.04. Trustee’s Disclaimer.

     The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, shall not be accountable for the Company’s use of
the proceeds from the sale of the Securities or the use or application of any
money received by any Paying Agent other than the Trustee, and shall not be
responsible for any statement in the Securities other than the Trustee’s
certificate of authentication.

     Section 8.05. Notice of Defaults.

     If a Default occurs and is continuing and if it is known to the Trustee,
the Trustee shall mail to each Securityholder, at the name and address that
appear in the Securities Register, a notice of the Default within 90 days after
the Default occurs. Except in the case of a Default in payment of the
principal of or premium or interest, if any, on any Security, the Trustee may
withhold the notice if and so long as its board of directors, the executive
committee, or a trust committee of its directors and/or responsible officers in
good faith determines that withholding the notice is in the interests of
Securityholders. The Trustee shall not be deemed to have notice of any Default
or Event of Default other than as described in clauses (1) or (2) of Section
7.01 unless it shall have received written notice thereof from the Company or
any Securityholder, or a Trust Officer has actual knowledge thereof. The
foregoing sentence of this Section 8.05 shall be in lieu of the proviso to TIA
Section 315(b), and such proviso to TIA Section 315(b) is hereby expressly
excluded from this Indenture and Section, as permitted by the TIA.

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     Section 8.06. Reports by Trustee to Holders.

     If required by TIA Section 313(a), within 60 days after each June 1
beginning with the June 1 following the date of this Indenture, the Trustee
shall mail to each Securityholder a report dated as of such April 1 that
complies with TIA Section 313(a). The Trustee also shall comply with TIA
Section 313(b), (c) and (d).

     A copy of each such report at the time of its mailing to Securityholders
shall also be mailed to the Company and shall be filed with the SEC and each
stock exchange, if any, on which the Securities are listed.

     The Company shall promptly notify the Trustee in writing if the Securities
become listed on any stock exchange or of any delisting thereof.

     Section 8.07. Compensation and Indemnity.

     The Company shall from time to time pay to the Trustee compensation for
its services. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee, within 45 days after receiving request therefor, for all out-of-pocket
disbursements, fees and expenses incurred by the Trustee in connection with the
performance of its duties under this Indenture, including without limitation
those incurred in connection with the enforcement of any remedy hereunder or
the interpretation of any provision hereunder. Such expenses may include the
compensation and out-of-pocket expenses of the Trustee’s agents and counsel.
All rights, protections and benefits of the Trustee shall extend to the Trustee
acting as Conversion Agent, Paying Agent, Registrar or other Agent with respect
hereto.

     The Company shall indemnify the Trustee for, and hold it harmless against,
any loss or liability incurred by it in connection with this Indenture. The
Trustee shall promptly notify the Company of any claim for which the Trustee
may seek indemnity, including costs and expenses of defending itself against
any claim for liability arising from the exercise or performance of any of its
powers or duties hereunder.

     The Company need not reimburse any expense incurred by the Trustee through
its negligence or indemnify against any loss or liability incurred by the
Trustee through its gross negligence or bad faith.

     To secure the Company’s payment obligations in this Section, the Trustee
shall have a lien prior to the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay principal of, and
interest, if any, on particular Securities.

     When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 7.01(5) or (6) occurs, the expenses and the
compensation for such services are intended to constitute expenses of
administration under any Bankruptcy Law.

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     Notwithstanding any provision hereof to the contrary, the Trustee’s lien
shall not be subordinated to that of Senior Indebtedness.

     Section 8.08. Replacement of Trustee.

     A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

     The Trustee may resign by so notifying the Company. The Holders of a
majority in principal amount of the Securities may remove the Trustee by so
notifying the Trustee and the Company. The Company may remove the Trustee if:

     (1)  the Trustee fails to comply with Section 8.10;

     (2)  the Trustee is adjudged a bankrupt or an insolvent;

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

     (4)  the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the Securities may appoint a successor
Trustee to replace the successor Trustee appointed by the Company.

     If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or
the Holders of at least 10% in principal amount of the Securities may petition
any court of competent jurisdiction for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 8.10, any Securityholder or
beneficial owner may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon the retiring Trustee
shall transfer all property held by it as Trustee to the successor Trustee
(subject to the lien provided for in Section 8.07), the resignation or removal
of the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture.
The successor Trustee shall mail a notice of its succession to Securityholders.

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     Section 8.09. Successor Trustee, Agents by Merger, etc.

     If the Trustee or any Agent consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee or Agent, as the case may be.

     Section 8.10. Eligibility; Disqualification.

     This Indenture shall always have a Trustee who satisfies the requirement
of TIA Sections 310(a)(1) and 310(a)(5). The Trustee (or in the case of a
corporation included in a bank holding company system, the related bank holding
company) shall have a combined capital and surplus of at least $100,000,000 as
set forth in its most recent published annual report of condition. In
addition, if the Trustee is a corporation included in a bank holding company
system, the Trustee, independently of such bank holding company, shall meet the
capital requirements of TIA Section 310(a)(2). The Trustee shall comply with
TIA Section 310(b).

     Section 8.11. Preferential Collection of Claims Against Company.

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

ARTICLE 9

DISCHARGE OF INDENTURE

     Section 9.01. Termination of Company’s Obligations.

     The Company may terminate all of its obligations under this Indenture if:

		
	 	(a) (1) the Securities mature within one year or all of them are to be
called for redemption (and the Securities are redeemable) within one year
and arrangements satisfactory to the Trustee are made with respect to the
giving of the notice of redemption; and

		
	 	     (2) the Company irrevocably deposits in trust with the Trustee money
or U.S. Government Obligations sufficient to pay, when due, the principal
of and premium and interest, if any, on the Securities to maturity or
redemption, as the case may be. The Company may make such deposit only
during the one-year period referred to in paragraph (1) above and only if
Article 12 permits it; or

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     (b)  all Securities previously authenticated and delivered (other than
destroyed, lost or stolen Securities which have been replaced or paid or
Securities for whose payment money or securities have theretofore been held in
trust and thereafter repaid to the Company, as provided in Section 9.03) have
been delivered to the Trustee for cancellation and the Company has paid all
sums payable by it hereunder.

     However, the obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.14,
Article 4, 5.01, the last paragraph of Section 6.01, 8.07, 8.08, 9.02, 9.03,
9.04 and 9.05 and in Article 11 shall survive until the Securities are no
longer outstanding. Thereafter the obligations in Sections 8.07, 9.03 and 9.04
shall survive.

     After a termination of the Company’s obligations in accordance with this
Section, the Trustee upon request shall acknowledge in writing the discharge of
the Company’s obligations under this Indenture except for those surviving
obligations specified above.

     In order to have money available on a payment date to pay principal of and
interest, if any, on the Securities, the U.S. Government Obligations shall be
payable as to principal or interest on or before such payment date in such
amounts as will provide the necessary money.

     “U.S. Government Obligations” means direct obligations of the United
States of America for the payment of which the full faith and credit of the
United States of America is pledged and which are not callable at the issuer’s
option.

     Section 9.02. Application of Trust Money.

     The Trustee shall hold in trust money or U.S. Government Obligations
deposited with it pursuant to Section 9.01. It shall apply the deposited money
and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and premium and
interest, if any, on the Securities. Money and securities so held in trust are
not subject to Article 12.

     Section 9.03. Repayment to Company.

     The Trustee and the Paying Agent shall promptly pay to the Company upon
request any excess money or securities held by them at any time.

     Subject to the requirements of applicable law, the Trustee and the Paying
Agent shall pay to the Company upon request any money held by them for the
payment of principal or premium, if any, or interest that remains unclaimed for
two years; provided, however, that, before being required to make any such
repayment, the Trustee or such Paying Agent shall, if the Company so requests
and at the expense of the Company, cause to be published once a week for two
successive weeks, in each case on any day of the week, in an authorized
newspaper in the Borough of Manhattan, The City of New York, or mail to each
such Holder, a notice (in such form as may be deemed appropriate by such
Trustee or Paying

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Agent) that said monies remain unclaimed and that, after a date named
therein, which shall not be less than 30 days from the date of such publication
or mailing, any unclaimed balance of said monies then remaining will be
returned to the Company. After payment to the Company, Securityholders
entitled to the money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another Person.

     Section 9.04. Indemnity for Government Obligations.

     The Company shall pay and shall indemnify the Trustee and each
Securityholder against any tax, fee or other charge imposed on or assessed
against deposited U.S. Government Obligations or the principal and interest
received on such obligations.

     Section 9.05. Reinstatement.

     If the Trustee is unable to apply any money or United States Government
Obligations in accordance with Section 9.01 by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to Section 9.01 until
such time as the Trustee is permitted to apply all such money or United States
Government Obligations in accordance with Section 9.01; provided, however, that
if the Company has made any payment of interest on or principal of any
Securities because of the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Securities to receive such
payment from the money or United States Government Obligations held by the
Trustee.

ARTICLE 10

AMENDMENTS, SUPPLEMENTS AND WAIVERS

     Section 10.01. Without Consent of Holders.

     The Company and the Trustee may amend or supplement this Indenture or the
Securities without the consent of any Securityholder:

     (1)  to cure any ambiguity, defect or inconsistency herein or in the
Securities;

     (2)  to comply with Section 6.01;

     (3)  to make any change that does not materially adversely affect the
rights of any Securityholder; or

     (4)  to make provision with respect to the conversion rights of Holders
pursuant to the requirements of Section 11.17.

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     Section 10.02. With Consent of Holders.

     The Company and the Trustee may amend or supplement this Indenture or the
Securities with the written consent of the Holders of at least a majority in
aggregate principal amount of the Securities at the time outstanding, and the
Holders of a majority in aggregate principal amount of the Securities at the
time outstanding may waive compliance by the Company with any provision of this
Indenture or the Securities. However, without the consent of each
Securityholder affected, an amendment, supplement or waiver under this Section
may not:

     (1)  change the stated maturity date of the principal of any Security or
adversely affect the right of a Holder to convert any Security;

     (2)  reduce the principal amount, Purchase Price or Change of Control
Purchase Price of, or premium, if any, or interest, if any, on any Security;

     (3)  change the currency for payment of principal of, and interest, if any,
on any Security;

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

     (5)  reduce the principal amount of Securities at the time outstanding
whose Holders must consent to an amendment or supplement of this Indenture or
the waiver of defaults or compliance with conditions hereunder;

     (6)  make any change in Section 7.04, 7.07 or this 10.02 (second
sentence); or

     (7)  modify the subordination provisions set forth in Article 12
in a manner that adversely affects the rights of a Holder

     An amendment under this Section may not make any change that adversely
affects the rights under Article 12 of any holder of an issue of Senior
Indebtedness unless the holders of the issue pursuant to its terms consent to
the change.

     It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed amendment, supplement or
waiver, but it shall be sufficient if such consent approves the substance
thereof. The Company may establish, by delivery of an Officers’ Certificate to
the Trustee, a record date for determining Securityholders of record entitled
to give any consent or waiver.

     After an amendment or supplement under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing the amendment
or supplement. Any failure of the Company to mail any such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any supplemental indenture.

46

 

     Section 10.03. Compliance with Trust Indenture Act.

     Every amendment to or supplement of this Indenture or the Securities shall
comply with the TIA as then in effect.

     Section 10.04. Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder of a Security is a continuing consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the
same debt as the consenting Holder’s Security, even if notation of the consent
is not made on any Security. However, any such Holder or subsequent Holder may
revoke the consent as to such Security or portion of a Security if a Trust
Officer of the Trustee receives the notice of revocation before the date the
amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds
every Securityholder. Notwithstanding the foregoing, if a record date has been
established for the purpose of determining Securityholders entitled to consent,
such written notice of revocation must be signed by the Securityholder of
record as of the record date or his duly appointed proxy.

     Section 10.05. Notation on or Exchange of Securities.

     The Trustee may place an appropriate notation relating to an amendment,
supplement or waiver on any Security thereafter authenticated. The Company in
exchange for all Securities may issue, and the Trustee shall authenticate, new
Securities that reflect the amendment, supplement or waiver.

     Section 10.06. Trustee to Sign Amendments, etc.

     In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or Section 11.17 or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 8.01) shall be fully
protected in relying upon, an Opinion of Counsel and an Officers’ Certificate
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture.

     The Trustee shall sign any amendment or supplement authorized pursuant to
this Article if the amendment or supplement does not adversely affect the
rights of the Trustee. If the amendment or supplement does adversely affect
the Trustee’s rights, the Trustee may, but need not, sign it.

47

 

ARTICLE 11

CONVERSION

     Section 11.01. Conversion Privilege.

     Subject to and upon compliance with the provisions of this Article 11 and
in paragraph 8 of the Securities, at the option of the Holder thereof, any
Security may be converted into fully paid and non-assessable Ordinary Shares at
a Conversion Price (the “Conversion Price”) initially of $25.79 per Ordinary
Share at any time on or prior to July 15, 2023, subject in the case of
conversion of any Global Security to any Applicable Procedures. The initial
Conversion Price is equivalent to a conversion rate of approximately 38.7692
Ordinary Shares per $1,000 principal amount of Securities (the “Conversion
Rate”), and is subject to adjustment as described below. The conversion right
with respect to a Security or the portion thereof that the Company has elected
to redeem or the Holder has elected to have repurchased by the Company in
accordance with Article 4 hereof will terminate (i) on the date that is two
Business Days immediately preceding the redemption date or the Purchase Date
(provided, that the Holder has not withdrawn the Purchase Notice in accordance
with Section 4.01), as the case may be, or (ii) if the Holder has elected to
participate in a repurchase upon a Change of Control, at 5:00 p.m. New York
time on the business day before the Change of Control Purchase Date unless, in
any case, the Company defaults in making the payment due upon such redemption
or repurchase date (in which case the conversion right will terminate at the
close of business on the date such default is cured). The number of Ordinary
Shares issuable upon conversion of a Security is determined by dividing the
principal amount to be converted by the Conversion Price in effect on the
Conversion Date, and rounding the result to the nearest 1/100th of a share,
with 500/1,000 of a share to be rounded up. The number of Ordinary Shares that
shall be issuable to a Holder upon conversion shall be computed on the basis of
the aggregate principal amount of the Securities (or specified portions thereof
to the extent permitted hereby) surrendered by such Holder.

     Holders may only surrender their Securities for conversion if any of the
following conditions is satisfied:

     (a)  Conversion Upon Satisfaction of Market Price Condition. Holders may
surrender Securities for conversion into Ordinary Shares if the Sale Price of
the Ordinary Shares for each of any five Consecutive Trading Days in the
immediately preceding fiscal quarter, exceeds 115% of the Conversion Price per
share of the Ordinary Shares on each such trading day.

     For each fiscal quarter, the Company will determine if the Securities are
convertible as the result of the satisfaction of this condition in the
preceding fiscal quarter and will promptly, but in no event later than five
Business Days after the beginning of the fiscal quarter, notify the Trustee
accordingly. The Trustee will, in turn, notify the Holders in each

48

 

 quarter but in no event later than seven Business Days after receiving
notification from the Company, as to the satisfaction of this condition.

     The “Sale Price” of the Company’s Ordinary Shares on any date means the
closing per share sale price (or if no closing sale price is reported, the
average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on such date as reported
in composite transactions for the principal United States securities exchange
on which the Company’s Ordinary Shares are traded or, if the Ordinary Shares
are not listed on a United States national or regional securities exchange, as
reported by the NASDAQ System or by the National Quotation Bureau Incorporated,
however if Nasdaq is no longer reporting such information, or if our Ordinary
Shares are not reported on Nasdaq, as available in any other over-the-counter
market or, if not available in any over-the counter market, as determined in
good faith by our board of directors.

     (b)  Conversion Upon Notice of Redemption. Holders may surrender for
conversion Securities called for redemption at any time prior to the close of
business on the day that is two Business Days prior to the redemption date,
even if it is not otherwise convertible at such time. If a Holder has already
delivered a purchase notice or notice of its exercise of its option to require
the Company to repurchase its Securities with respect to Securities, however, a
Holder may not surrender its Securities for conversion until such Holder has
withdrawn the notice in accordance with this Indenture.

     (c)  Conversion Upon Trading Price of Notes Falling Below a Percentage of
the Trading Value of the Notes. If, after any five consecutive trading-day
period in which the average of the Trading Prices (defined below) for the
Securities for such five trading-day period is less than 100% of the average of
the Conversion Values (defined below) for the Securities during that period, a
Holder may surrender Securities for conversion at any time during the following
10 trading days; provided, however, that no Securities may be converted based
on the satisfaction of this condition during the six month period immediately
preceding each specified date on which a Holder may require the Company to
repurchase its Securities (for example, with respect to the July 15, 2007 put
date for the Securities, the Securities may not be converted from January 15,
2007 to July 15, 2007), if on any day during such five consecutive trading day
period, the closing sale price of the Ordinary Shares is between the Conversion
Price and 115% of the Conversion Price.

     The Trustee and the Conversion Agent shall have no obligation to determine
the applicability of this condition, or to obtain secondary bid quotations with
respect to any determination of Trading Price except following the receipt of a
Conversion Notice indicating that the Holder’s Securities are being converted
based upon the satisfaction of this Condition. Following receipt of such a
Conversion Notice, the Conversion Agent shall notify the Company which in turn
shall select the three independent nationally recognized securities dealers as
described in the definition of “Trading Price” below from which the Conversion
Agent shall receive bid quotations. The Conversion Agent shall provide prompt
notice to the Company upon obtaining such bid quotations.

49

 

     “Trading Price” means, on any date of determination, the average of the
secondary bid quotations per Security obtained by the Conversion Agent for
$5,000,000 principal amount of the Securities at approximately 3:30 p.m., New
York City time, on such determination date from three independent nationally
recognized securities dealers the Company selects; provided, that if at least
three such bids cannot reasonably be obtained, but two such bids can reasonably
be obtained, then the average of these two bids shall be used; provided,
further, that if at least two such bids cannot reasonably be obtained, but one
such bid can reasonably be obtained, this one bid shall be used. If the
Conversion Agent cannot reasonably obtain at least one bid for $5,000,000
principal amount of the Securities from an independent nationally recognized
securities dealer or, in the Company’s reasonable judgment, the bid quotations
are not indicative of the secondary market value of the Securities, then the
Trading Price of the Securities will equal (a) the applicable Conversion Rate
of the Securities multiplied by (b) the Sale Price of the Ordinary Shares.

     “Conversion Value” means the product of the last reported bid price of the
Ordinary Shares on any date of determination multiplied by the Conversion Rate
of the Securities in effect on that date.

     (d)  Conversion Upon Specified Corporate Transactions.

		
	 	     (i) If the Company elects to distribute to all holders of Ordinary
Shares:

		
	 	     (A) rights or warrants entitling them to subscribe for or
purchase Ordinary Shares at less than the current market price on
the record date for such issuance (excluding purchase rights
governed by a shareholder rights plan, if any); or
	 
	 	     (B) cash, debt securities (or other evidence of indebtedness)
or other assets (excluding dividends or distributions described in
Section 11.06(i) or (ii)), which distribution, together with all
other such distributions within the preceding twelve months, has a
per share value exceeding 10% of the current market price of the
Ordinary Shares as of the Trading Day immediately preceding the
declaration date for such distribution,
	 
	 	the Company must notify the Holders at least 20 days prior to the
ex-dividend date for such distribution. Once the Company has given
such notice, a Holder may surrender its Securities for conversion
at any time until the earlier of the close of business on the
Business Day prior to the ex-dividend date or the Company’s
announcement that such distribution will not take place.

		
	 	     (ii) If the Company is a party to a consolidation, merger, sale or
transfer, lease or other disposition of all or substantially all of the
Company’s assets pursuant to which the Ordinary Shares would be converted
into, or into the right to receive, cash, securities or other assets, the
Company must notify the Holders at least 20 days prior to the anticipated
effective date of the Transaction. A Holder may surrender Securities for
conversion at any time beginning 20 days before the anticipated

50

 

		
	 	effective date of the transaction and until 20 days after the actual
effective date of the transaction. If the Company is a party to such a
transaction, then at the effective time of the transaction, each note
surrendered for conversion will be converted into, or into the right to
receive, as applicable, the kind and amount of cash, securities or other
property which a Holder would have received if it had converted its
Securities immediately before the transaction.

     The initial Conversion Price is stated in paragraph 8 of the Securities.
The Conversion Price is subject to adjustment as provided in this Article 11.

     Section 11.02. Conversion Procedure.

     To convert a Security, a Holder must:

     (1)  complete and sign the conversion notice (the “Conversion Notice”) on
the reverse of the Security indicating, inter alia, the condition upon which
the conversion is based,

     (2)  surrender the Security to the Conversion Agent,

     (3)  furnish the appropriate endorsements and transfer documents if
required by the Registrar or Conversion Agent, and

     (4)  pay any tax or duty which may be payable in respect of any transfer
involving the issue or delivery of Ordinary Shares in the name of a Person
other than the Holder thereof.

     The first date on which the Holder satisfies all those requirements in
respect of a Security is the “Conversion Date”. As soon as practical on or
after the Conversion Date, the Company shall deliver through the Conversion
Agent a certificate for the number of Ordinary Shares issuable upon the
conversion of that Security and a check for any fractional shares. The person
in whose name the certificate is registered shall be treated as a stockholder
of record on and after the Conversion Date. Anything herein to the contrary
notwithstanding, in the case of Global Securities, conversion notices may be
delivered and such Securities may be surrendered for conversion in accordance
with the Applicable Procedures.

     Upon conversion, the Company will satisfy all of its obligations (the
“Conversion Obligation”) by delivering to converting Holders (1) Ordinary
Shares, (2) cash, or (3) a combination of cash and Ordinary Shares, as follows:

     (1)  Share Settlement. If the Company elects to satisfy the entire
Conversion Obligation in Ordinary Shares, then it will deliver to converting
Holders a number of

51

 

 Ordinary Shares equal to the aggregate principal amount of the Securities
to be converted divided by the then applicable Conversion Price.

     (2)  Cash Settlement. If the Company elects to satisfy the entire
Conversion Obligation in cash, then it will deliver to converting Holders cash
in an amount equal to the product of (i) a number equal to the aggregate
principal amount of Securities to be converted by any such Holder divided by
the then applicable Conversion Price, and (ii) the arithmetic mean of the
Volume Weighted Average Prices of the Ordinary Shares on each trading day
during the applicable cash settlement averaging period described below.

     (3)  Combined Settlement. If the Company elects to satisfy a portion of
the Conversion Obligation in Cash (the “Partial Cash Amount”) and a portion in
Ordinary Shares, then it will deliver to converting Holders such Partial Cash
Amount plus a number of shares equal to (a) the cash settlement amount as set
forth in clause (2) above minus such Partial Cash Amount divided by (b) the
arithmetic mean of the Volume Weighted Average Prices of its Ordinary Shares on
each Trading Day during the applicable cash settlement averaging period
described below.

     If the Company chooses to satisfy the Conversion Obligation by share
settlement, then settlement in shares will be made on or prior to the fifth
Trading Day following its receipt of a notice of conversion.

     If the Company chooses to satisfy the Conversion Obligation by cash
settlement or combined settlement, then it will notify Holders, through the
Trustee, of the dollar amount to be satisfied in cash at any time on or before
the date that is two Business Days following its receipt of a converting
Holder’s notice of conversion (the “Settlement Notice Period”). Share
settlement will apply automatically if the Company does not notify Holders that
the Company has chosen another settlement method.

     If the Company timely elects cash settlement or combined settlement, then
Holders may retract their conversion notice at any time during the two business
day period beginning on the day after the Settlement Notice Period (the
“Conversion Retraction Period”). Holders cannot retract conversion notices
(and conversions notice therefore will be irrevocable) if the Company elects
share settlement. If a Holder has not retracted its conversion notice, then
cash settlement or combined settlement will occur on the first trading day
following the applicable “cash settlement averaging period”. The applicable
cash settlement averaging period will be the five trading day period beginning
on the first trading day after the Conversion Retraction Period.

     The “Volume Weighted Average Price” of one Ordinary Share on any trading
day will be the Volume Weighted Average Prices as displayed under the heading
“Bloomberg VWAP” on Bloomberg Page SINA <equity> AQR in respect of the
period from 9:30 a.m. to 4:00 p.m. (New York City time) on that trading day (or
if such Volume Weighted Average Price is not available, the market value of one
Ordinary Share on such trading day as the Company determines in good faith
using a volume weighted method).

52

 

     No payment or adjustment will be made for interest, if any, on a converted
Security (other than the payment of interest to the Holder of a Security at the
close of business on a record date pursuant to Section 2.04(b) hereof), or for
dividends or distributions on any Ordinary Shares issued upon conversion of any
Security.

     If a Holder converts more than one Security at the same time, the number
of full shares issuable upon the conversion shall be based on the total
principal amount of the Securities converted.

     If Ordinary Shares are to be issued in the name of a Person other than the
Holder thereof, and the restrictions on transfer of such Security set forth in
the first paragraph of the face of the Security remain in effect, the Holder
must provide certification regarding compliance with the restrictions on
transfer, by executing an assignment in the form attached to the Security.

     Upon surrender of a Security that is converted in part, the Company shall
execute and the Trustee shall authenticate for the Holder a new Security equal
in principal amount to the unconverted portion of the Security surrendered.

     If the last day on which a Security may be converted is a Legal Holiday,
the Security may be surrendered to that Conversion Agent on the next succeeding
Business Day with the same force and effect as if surrendered on such last day.

     To convert a Security, a Holder must (1) complete and sign the conversion
notice on the reverse of the Security, (2) surrender the Security to the
Conversion Agent, (3) furnish the appropriate endorsements and transfer
documents if required by the Registrar or Conversion Agent, and (4) pay any tax
or duty which may be payable in respect of any transfer involving the issue or
delivery of Ordinary Shares in the name of a Person other than the Holder
thereof. In the case of Global Securities, conversion notices may be delivered
and such Securities may be surrendered for conversion in accordance with the
Applicable Procedures. A Holder may convert a portion of a Security if the
portion is $1,000 or an integral multiple of $1,000.

     Section 11.03. Fractional Shares.

     The Company will not issue a fractional Ordinary Share upon conversion of
a Security. The number of full Ordinary Shares that shall be issuable to a
Holder upon conversion shall be computed on the basis of the aggregate
principal amount of the Securities (or specified portions thereof to the extent
permitted hereby) so surrendered by such Holder. If any fractional Ordinary
Share would be issuable upon the conversion of any Security or Securities, the
Company shall make an adjustment and payment therefor of cash to the Holder of
Securities (rounded to the nearest cent, with 0.5 cents to be rounded up) in an
amount equal to such fraction multiplied by the current market price thereof.

53

 

     For purposes of this Section, the current market price of an Ordinary
Share is the Sale Price of the Ordinary Shares on the last Trading Day prior to
the Conversion Date.

     Section 11.04. Taxes on Conversion.

     If a Holder converts a Security, the Company shall pay any documentary,
stamp or similar issue or transfer tax due on the issue of Ordinary Shares upon
the conversion, except that a Holder shall reimburse the Company any such tax
that is payable by the Company on such Holder’s behalf as a result of the
shares being issued in a name other than such Holder’s and the Company shall
not be required to issue or deliver any certificate representing Ordinary
Shares upon the conversion of a Security unless and until the Holder or Holders
requesting the issue thereof shall have reimbursed to the Company for such
amount.

     Section 11.05. Company to Provide Stock.

     The Company shall, prior to the issuance of any securities hereunder, and
from time to time as may be necessary, reserve at all times and keep available,
free from preemptive rights, out of its authorized but unissued Ordinary
Shares, enough shares of Ordinary Shares to permit the conversion of all of the
Securities.

     All shares of Ordinary Shares that may be issued upon conversion of the
Securities shall be newly issued share, shall be duly authorized, validly
issued, fully paid and nonassessable and shall be free of any preemptive rights
and free of any lien or adverse claim.

     The Company shall endeavor to comply with all applicable securities laws
regulating the offer and delivery of Ordinary Shares upon conversion of
Securities and shall use its best efforts to list such shares on each national
securities exchange on which the Ordinary Shares are listed, or to have such
shares approved for quotation on The NASDAQ National Market or other
over-the-counter market on which the Ordinary Shares are traded; provided
however, that if the rules of such automated quotation system or exchange
permit the Company to defer the listing of such Ordinary Shares until the first
conversion of the Securities into Ordinary Shares in accordance with the
provisions of this Indenture, the Company covenants to list such Ordinary
Shares issuable upon conversion of the Securities in accordance with the
requirements of such automated quotation system or exchange at such time. Any
Ordinary Shares issued upon conversion of a Security hereunder which at the
time of conversion was a Restricted Security will also be a Restricted
Security.

     Section 11.06. Adjustment for Change in Capital Stock.

     If the Company:

     (1)  issues any shares of its capital stock as a dividend (or other
distribution) on the Ordinary Shares;

54

 

     (2)  subdivides its outstanding shares of Ordinary Shares into a greater
number of shares of Ordinary Shares;

     (3)  combines its outstanding shares of Ordinary Shares into a smaller
number of shares of Ordinary Shares; or

     (4)  issues by reclassification of its Ordinary Shares any shares of its
capital stock,

then the conversion privilege and the Conversion Price in effect immediately
prior to such action shall be adjusted so that the Holder of a Security
thereafter converted will receive the number of shares of capital stock of the
Company that would have been received (and if there is more than one class or
series of such capital stock, then shares of each class or series in the same
proportions that would have been received) upon consummation of such action by
a Holder of the number of shares of Ordinary Shares into which such Security
might have been converted immediately prior to such action, with the aggregate
Conversion Price to be divided evenly among the shares to be issued upon
conversion thereof.

     The adjustment described in the preceding paragraph shall become effective
immediately after the record date in the case of a dividend or distribution and
immediately after the effective date in the case of a subdivision, combination
or reclassification.

     If, after an adjustment, a Holder of a Security may receive shares of two
or more classes or series of capital stock of the Company upon conversion of
such Security, the Company shall determine the allocation of the adjusted
Conversion Price between or among such classes or series of capital stock.
After such allocation, the conversion privilege and the Conversion Price of
each class of capital stock shall thereafter be subject to adjustment on terms
comparable to those applicable to Ordinary Shares in this Article.

     Section 11.07. Adjustment for Rights Issue.

     If the Company distributes any rights or warrants to all holders of its
Ordinary Shares entitling them to subscribe for or purchase shares of Ordinary
Shares at a price per share less than the current market price per share (as
defined in Section 11.11), then, on the Record Date (as defined in this Section
11.07), the Conversion Price shall be adjusted in accordance with the formula:

	 	 	 
	 	 	
O + (N x P)
	AC = CC x	 	  
          M      
	 	 	   
O + N
	 	 	 
	     where:	 	 

55

 

	 	 	 	 	 
	 	AC	
=
	 	the adjusted Conversion Price.
	 	 	 	 	 
	 	CC	
=
	 	the Conversion Price in effect immediately prior to the close
of business on the Record Date.
	 	 	 	 	 
	 	O	
=
	 	the number of shares of Ordinary Shares outstanding at the
close of business on the Record Date.
	 	 	 	 	 
	 	N	
=
	 	the number of additional shares of Ordinary Shares offered.
	 	 	 	 	 
	 	P	
=
	 	the offering price per share of the additional shares.
	 	 	 	 	 
	 	M	
=
	 	the current market price per share of Ordinary Shares on the
Record Date (as defined in this Section 11.07).

     The adjustment shall become effective immediately after the record date
for the determination of stockholders entitled to receive such rights or
warrants (for purposes of this Section 11.07 only, the “Record Date”).

     Section 11.08. Adjustment for Certain Distributions

     Subject to the last paragraph of this Section 11.08, if the Company
distributes to all holders of its Ordinary Shares any cash, debt securities (or
other evidences of indebtedness) or other assets (excluding dividends or
distributions for which adjustment is required to be made under Sections 11.06,
11.07 or 11.09), the Conversion Price shall be reduced in accordance with the
following formula:

	 	 	 
	AC = CC x	 	
  M – P  
	 	 	
     M
	 	 	 
	          
where:	 	 

	 	 	 	 	 
	 	AC	
=
	 	the adjusted Conversion Price.
	 	 	 	 	 
	 	CC	
=
	 	the Conversion Price in effect immediately prior to the close
of business on the Record Date.
	 	 	 	 	 
	 	M	
=
	 	the current market price per share of Ordinary Shares on the
Record Date (as defined in this Section 11.08).

56

 

	 	 	 	 	 
	 	P	
=
	 	the aggregate fair market value on the Record Date (as
defined in this Section 11.08) (as determined in good faith
by the Board of Directors and set forth in a certified
resolution filed with the Trustee) of the cash, debt
securities (or other evidences of indebtedness) or other
assets distributed applicable to one share of Ordinary
Shares.

     The adjustment shall become effective immediately after the record date
for the determination of stockholders entitled to receive such distribution
(for purposes of this Section 11.08 only, the “Record Date”).

     No adjustment will be made with respect to this Section 11.08 if, in lieu
of such adjustment, the Securityholders, upon conversion, will be entitled to
receive, in addition to the shares of Ordinary Shares into which such
Securities are convertible, the kind and amount of cash, debt securities (or
other evidences of indebtedness) or other assets comprising the distribution
that such Holders would have received had they converted their Securities
immediately prior to the Record Date (as defined in this Section 11.08). In
addition, no adjustment will be made in the event that the then fair market
value (as so determined) of the cash, debt securities (or other evidences of
indebtedness) or other assets so distributed applicable to one share of
Ordinary Shares is equal to or greater than the current market price per share
of the Ordinary Shares, in which case, in lieu of such adjustment, adequate
provision shall be made so that each Securityholder shall have the right to
receive upon conversion the amount of cash, debt securities (or other evidences
of indebtedness) or other assets such Holder would have received had such
Holder converted each Security on the Record Date (as defined in this Section
11.08).

     Section 11.09. Adjustment for all cash distribution.

     Subject to the last two paragraphs of this Section 11.09, if the Company
shall pay or make a dividend or other distribution consisting exclusively of
cash to all holders of its Ordinary Shares, the Conversion Price shall be
reduced in accordance with the following formula:

	 	 	 
	AC = CC x	 	  M – C  
	 	 	
     M
	 	 	 
	          
where:	 	 

	 	 	 	 	 
	 	AC	
=
	 	the adjusted Conversion Price.
	 	 	 	 	 
	 	 	 	 	the Conversion Price in effect
immediately prior to the

57

 

	 	 	 	 	 
	 	CC	
=
	 	close of
business on the Record Date (as
defined in this Section 11.09).
	 	 	 	 	 
	 	 M	
=
	 	the current market price per share of
Ordinary Shares on the Record Date (as
defined in this Section 11.09).
	 	 	 	 	 
	 	C	
=
	 	the amount of cash so distributed and
not excluded applicable to one share
of Ordinary Shares.

     The adjustment shall become effective immediately after the record date
for the determination of stockholders entitled to receive such distribution
(for purposes of this Section 11.09 only, the “Record Date”).

     No adjustment will be made in the event that the amount of cash so
distributed applicable to one f Ordinary Shares is equal to or greater than the
current market price per share of the Ordinary Shares, in which case, in lieu
of such adjustment, adequate provision shall be made so that each
Securityholder shall have the right to receive upon conversion the amount of
cash such Holder would have received had such Holder converted each Security
immediately prior to the record date for the distribution of the cash.

     Section 11.10. Adjustment for Tender or Exchange Offer.

     Subject to the last paragraph of this Section 11.10, in the event that a
tender or exchange offer (other than an odd-lot offer) made by the Company or
any Subsidiary for all or a portion of the Ordinary Shares shall expire and
such tender or exchange offer (including any amendment in effect immediately
prior to the expiration thereof) shall require the payment to stockholders of
consideration per share of Ordinary Shares having a fair market value (as
determined in good faith by the Board of Directors and set forth in a certified
resolution filed with the Trustee) that, as of the last time (the “Expiration
Time”) tenders or exchanges may be made pursuant to such tender or exchange
offer, exceeds 110% of the current market price per share of Ordinary Shares at
the Expiration Time, the Conversion Price shall be reduced in accordance with
the following formula:

	 	 	 
	AC = CC x	 	
        O x M        
	 	 	
      P + (T x M)
	 	 	 
	          
where:	 	 

	 	 	 	 	 
	 	AC	
=
	 	the adjusted Conversion Price.
	 	 	 	 	 
	 	CC	
=
	 	the Conversion Price in effect immediately prior to the close
of business on the date of the Expiration Time.
	 	 	 	 	 
	 	O	
=
	 	the number of shares of Ordinary Shares outstanding

58

 

	 	 	 	 	 
	 	 	 	 	(including any tendered or exchanged shares) at the
Expiration Time.
	 	 	 	 	 
	 	P	
=
	 	the fair market value of the aggregate consideration payable
to holders of Ordinary Shares based on the acceptance (up to
any maximum specified in the terms of the tender or exchange
offer) of all shares of Ordinary Shares validly tendered or
exchanged and not withdrawn as of the Expiration Time (the
shares of Ordinary Shares so accepted, up to any such
maximum, being referred to as the “Purchased Shares”).
	 	 	 	 	 
	 	T	
=
	 	the number of shares of Ordinary Shares outstanding (less any
Purchased Shares) on the Expiration Time.
	 	 	 	 	 
	 	M	
=
	 	the current market price per share of Ordinary Shares at the
Expiration Time.

     The adjustment shall become effective immediately prior to the opening of
business on the day following the Expiration Time.

     In the event that the Company or any Subsidiary, if applicable, is
permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the Conversion Price shall again be adjusted
to be the Conversion Price which would then be in effect if such tender or
exchange offer had not been made.

     Section 11.11. Current Market Price.

     For purposes of Sections 11.07, 11.08, 11.09 and 11.10, the current market
price per share of Ordinary Shares on any date is the volume weighted average
of the Sale Prices of the Ordinary Shares for five consecutive Trading Days
selected by the Company commencing not more than 10 Trading Days before, and
ending not later than, the earlier of the date in question and the Trading Day
before the “ex” date, if any, with respect to the issuance or distribution
requiring such computation. The term “ex” date, when used with respect to any
issuance or distribution, means the first Trading Day on which the Ordinary
Shares trades regular way in the market from which the Sale Price is then to be
determined without the right to receive such issuance or distribution.

     Section 11.12. When adjustment may be deferred.

     No adjustment in the Conversion Price need be made unless the adjustment
would require an increase or decrease of at least 1% in the Conversion Price
then in effect. Any adjustments which are not made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under
this Article shall be made to the nearest cent

59

 

 or to the nearest 1/100th of a share, as the case may be, with 0.005 cents
and 500/1,000 of a share to be rounded up.

     Section 11.13. When no adjustment required.

     No adjustment need be made for rights to purchase Ordinary Shares pursuant
to a Company plan for reinvestment of dividends or interest.

     No adjustment need be made for a change in the par value (including a
change to no par value) of the Ordinary Shares.

     To the extent the Securities become convertible into cash, no adjustment
need be made thereafter as to the cash. Interest will not accrue on the cash.

     Notwithstanding any provision to the contrary in this Indenture, no
adjustment shall be made in the Conversion Price, which would have the effect
of reducing the Conversion Price below the par value of the Ordinary Shares.

     Section 11.14. Notice of Adjustment.

     Whenever the Conversion Price is adjusted, the Company shall promptly mail
to Securityholders a notice of the adjustment and file a copy of such notice
with the Trustee. In the absence of manifest error, such certificate shall be
presumptive evidence that the adjustment is correct.

     Section 11.15. Voluntary Reduction.

     The Company from time to time may reduce the Conversion Price by any
amount for any period of time if the period is at least 20 days and if the
reduction is irrevocable during the period; provided, however, that no such
reduction shall be taken into account for purposes of determining whether the
last sale price of the Ordinary Shares equals or exceeds 105% of the Conversion
Price in connection with an event that would otherwise be a Change of Control
pursuant to Section 4.05. Notwithstanding any provision to the contrary in
this Indenture, the reduction of the Conversion Price pursuant to this Section
11.15 shall not require the consent of the Trustee or any Securityholder.

     Whenever the Conversion Price is reduced, the Company shall mail to
Securityholders and the Trustee a notice of the reduction. The Company shall
mail the notice at least 15 days before the date the reduced Conversion Price
takes effect. The notice shall state the reduced Conversion Price and the
period during which it will be in effect.

     A reduction of the Conversion Price is deemed not to be in effect for
purposes of calculating adjustments pursuant to Sections 11.06 through 11.10.

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     Subject to the first paragraph of this Section 11.15, the Company may
reduce the Conversion Price, for the remaining term of the Securities or any
shorter term, in addition to those adjustments required by Sections 11.06,
11.07, 11.08, 11.09 and 11.10, as it considers to be advisable in order to
avoid or diminish any income tax to any holders of shares of Ordinary Shares
resulting from any dividend or distribution of stock or issuance of rights or
warrants to purchase or subscribe for stock or from any event treated as such
for income tax purposes.

     Section 11.16. Notice of Certain Transactions.

     If:

     (1)  the Company takes any action which would require an adjustment in the
Conversion Price pursuant to Section 11.08 but, in lieu of such adjustment, the
Securityholders are entitled to participate therein (as described in the last
paragraph of Section 11.08);

     (2)  the Company takes any action that would require a supplemental
indenture pursuant to Section 11.17; or

     (3)  there is a dissolution or liquidation of the Company,

     the Company shall mail to Securityholders and the Trustee a notice stating
the record date for any such distribution or the effective date of any such
subdivision, combination, reclassification, consolidation, merger, transfer,
lease, liquidation or dissolution. The Company shall mail the notice at least
15 days before such record date. Failure to mail the notice or any defect in
it shall not affect the validity of any transaction referred to in clause (1),
(2) or (3) of this Section.

     Section 11.17. Provisions in case of Consolidation, Merger of the Company
or Transfer or Lease.

     If the Company is a party to a consolidation or merger or a transfer or
lease of all or substantially all of its assets not prohibited by Section 6.01
or a merger which reclassifies or changes its outstanding Ordinary Shares, the
Person formed by such consolidation or resulting from such merger or which
assumes or leases such assets shall enter into a supplemental indenture.

     The supplemental indenture shall provide that the Holder of a Security may
convert it into the kind and amount of securities, cash or other assets
receivable upon the consolidation, merger, transfer or lease by a Holder (other
than any party to such transaction or any of its affiliates) of the number of
shares of Ordinary Shares into which such Security might have been converted
immediately before the effective date of such transaction, assuming such holder
of Ordinary Shares failed to exercise his rights of election, if any, as to the
kind or amount of securities, cash or other property receivable upon such
consolidation, merger,

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 transfer or lease (provided that, if the kind or amount of securities,
cash or other property receivable upon such consolidation, merger, transfer or
lease is not the same for each share of Ordinary Shares held immediately prior
to such consolidation, merger, transfer or lease by others than the parties to
such transaction or their affiliates and in respect of which such rights of
election shall not have been exercised (“non-electing share”), then for the
purposes of this Section the kind and amount of securities, cash and other
property receivable upon such consolidation, merger, transfer or lease by each
non-electing share shall be deemed to be the kind and amount so receivable per
share by a plurality of the non-electing shares). The supplemental indenture
shall provide for adjustments, which shall be as nearly equivalent as may be
practical to the adjustments provided for in this Article. If the issuer of
securities deliverable upon conversion of Securities is an affiliate of the
surviving, transferee or lessee corporation, that issuer shall join in the
supplemental indenture. The successor Company shall mail to each
Securityholder a notice briefly describing the supplemental indenture.

     If this Section applies to a particular event, Section 11.06 shall not
apply to such event.

     Section 11.18. Company determination final.

     Subject to compliance with the terms of this Indenture (including, without
limitation, Section 11.14) and of the Securities, any determination which the
Company or its Board of Directors must make pursuant to Section 11.03, 11.06,
11.08, 11.10, 11.11 or 11.12 shall be conclusive.

     Section 11.19. Trustee’s Disclaimer.

     The Trustee has no duty to determine when an adjustment under this Article
should be made, how it should be made or what it should be. The Trustee has no
duty to determine the market price or market value of any fractional or other
share. The Trustee has no duty to determine whether any provisions of a
supplemental indenture under Section 11.17 are correct. The Trustee makes no
representation as to the validity or value of any securities or assets issued
upon conversion of the Securities. The Trustee shall not be responsible for
the Company’s failure to comply with this Article. Each Conversion Agent other
than the Company shall have the same protection under this Section as the
Trustee.

ARTICLE 12

SUBORDINATION

     Section 12.01. Agreement to Subordinate.

     The Company agrees, and each Securityholder by accepting a Security
agrees, that the indebtedness evidenced by the Securities is subordinated in
right of payment, to the extent and in the manner provided in this Article, to
the prior payment in full of all Senior

62

 

 Indebtedness, and that the subordination is for the benefit of the holders
of Senior Indebtedness.

     Section 12.02. Certain Definitions.

     “Senior Indebtedness” means:

     (a)  the principal of, interest (including, to the extent permitted by
applicable law, interest on or after the commencement of a proceeding referred
to in clauses (5) or (6) of Section 7.01 whether or not representing an allowed
claim in such proceeding) on and any other amounts owing with respect to:

		
	 	     (i) any indebtedness of the Company, now or hereafter outstanding,
in respect of borrowed money (other than the Securities),
	 
	 	     (ii) any indebtedness of the Company, now or hereafter outstanding,
evidenced by a bond, note, debenture, capitalized lease, reimbursement
obligation with respect to any letter of credit or other similar
instrument,
	 
	 	     (iii) any other written obligation of the Company, now or hereafter
outstanding, to pay money issued or assumed as all or part of the
consideration for the acquisition of property, assets or securities,
	 
	 	     (iv) any guaranty or endorsement (other than for collection or
deposit in the ordinary course of business) or discount with recourse of,
or other agreement (contingent or otherwise) to purchase, repurchase or
otherwise acquire, to supply or advance funds or to become liable with
respect to (directly or indirectly), any indebtedness or obligation of
any person of the type referred to in the preceding subclauses (i), (ii)
and (iii) now or hereafter outstanding,
	 
	 	     (v) the Company’s obligations under currency exchange or purchase
agreements and interest rate protection agreements or similar
arrangements, and
	 
	 	     (vi) obligations of the Company secured by a mortgage, pledge or
other liens on the assets or property of the Company.

     (b)  any refundings, renewals or extensions of any indebtedness or other
obligation described in clause (a) of this Section 12.02.

     Notwithstanding the foregoing, if, by the terms of the instrument creating
or evidencing any indebtedness or obligation referred to in clauses (a) and (b)
above, it is expressly provided that such indebtedness or obligation is not
senior in right of payment to the Securities, such indebtedness or obligation
shall not be included as Senior Indebtedness.

     “Representative” means the indenture trustee or other trustee, agent or
representative for an issue of Senior Indebtedness.

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     Section 12.03. Liquidation; Dissolution; Bankruptcy.

     Upon any distribution to creditors of the Company in a liquidation,
dissolution or winding up of the Company or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company or its
property:

     (1)  holders of Senior Indebtedness shall be entitled to receive payment in
full, in cash or in a manner satisfactory to the holders of such Senior
Indebtedness, of all Senior Indebtedness before Securityholders shall be
entitled to receive any payments of principal of, or interest, if any, on
Securities; and

     (2)  until the Senior Indebtedness is paid in full in cash or in a manner
satisfactory to the holders of such Senior Indebtedness, any distribution to
which Securityholders would be entitled but for this Article shall be made to
holders of Senior Indebtedness as their interests may appear, except that
Securityholders may receive securities that are subordinated to Senior
Indebtedness to at least the same extent as the Securities.

     A distribution may consist of cash, securities or other property.

     Section 12.04. Company not to make Payments with respect to Securities in
certain circumstances.

     (a)  Upon the maturity of any Senior Indebtedness by lapse of time,
acceleration or otherwise, all principal thereof, premium, if any, and interest
thereon and any other amounts owing in respect thereof shall first be paid in
full, or such payment duly provided for in cash or in a manner satisfactory to
the holders of such Senior Indebtedness, before any payment is made on account
of the principal or interest, if any, on the Securities or to acquire any of
the Securities.

     (b)  Upon the happening of a default or event of default in the payment of
the principal, premium, if any, or interest on the Senior Indebtedness, then,
unless such default or event of default has been cured or waived or shall have
ceased to exist, no payment shall be made by the Company with respect to the
principal or interest, if any, on (or otherwise in respect of) the Securities
or to acquire any of the Securities.

     (c)  Upon the happening of a default or event of default in respect of the
Senior Indebtedness (other than a default or event of default in payment of the
principal, premium, if any, or interest on the Senior Indebtedness) and if the
Trustee and the Company receive a notice of such default or event of default
from the holders of the Senior Indebtedness or their Representative (a “Payment
Blockage Notice”), then no payment shall be made by the Company with respect to
the principal, premium, if any, or interest on (or otherwise in respect of) the
Securities until the earlier of (i) the date on which such default or event of
default shall have been cured or waived or shall have ceased to exist or (ii)
the 179th day after the date of such receipt of such Payment Blockage Notice.
No more than one Payment Blockage Notice shall be effective for purposes of
this section during any 365 consecutive

64

 

 day period. For purposes of this paragraph, no such default or event of
default that existed upon first delivery of any Payment Blockage Notice shall
be, or be made, the basis for a subsequent Payment Blockage Notice.

     Section 12.05. Acceleration of Securities.

     If payment of the Securities is accelerated because of an Event of Default
under Section 7.02, the Company shall promptly notify holders of Senior
Indebtedness of the acceleration.

     Section 12.06. Notice by Company.

     The Company shall promptly notify the Trustee and the Paying Agent of any
facts known to the Company that would cause a payment of principal of or
premium or Default Interest, if any, on the Securities to violate this Article.

     Section 12.07. Subrogation.

     After all Senior Indebtedness is paid in full and until the Securities are
paid in full, Securityholders shall be subrogated to the rights of holders of
Senior Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to Senior Indebtedness to the extent that
distributions of cash, property or securities otherwise payable to the
Securityholders have been applied to the payment of Senior Indebtedness. A
distribution made under this Article to holders of Senior Indebtedness which
otherwise would have been made to Securityholders is not, as between the
Company and Securityholders, a payment by the Company on Senior Indebtedness.

     Notwithstanding anything in this Indenture to the contrary, neither the
issuance and delivery of Ordinary Shares upon the conversion of the Securities
in accordance with Article 11 nor the payment of cash in lieu of fractional
Ordinary Shares in accordance with Article 11 shall be deemed to constitute a
payment or distribution on account of the principal or interest, if any, in
respect of the Securities.

     Section 12.08. Relative Rights.

     This Article defines the relative rights of Securityholders and holders of
Senior Indebtedness. Nothing in this Indenture shall:

     (1)  impair, as between the Company and Securityholders, the obligation of
the Company, which is absolute and unconditional, to pay principal of or
interest, if any, on the Securities in accordance with their terms;

     (2)  affect the relative rights of Securityholders and creditors of the
Company, other than holders of Senior Indebtedness; or

65

 

     (3)  prevent the Trustee or any Securityholder from exercising its
available remedies upon a Default, subject to the rights of holders of Senior
Indebtedness to receive distributions otherwise payable to Securityholders.

     If the Company fails because of this Article to pay principal of or
interest, if any, on a Security on the due date, such failure shall
nevertheless be deemed a Default.

     Section 12.09. Subordination may not be impaired by Company.

     No right of any holder of Senior Indebtedness to enforce the subordination
of the indebtedness evidenced by the Securities shall at any time or in any way
be impaired by any act or failure to act on the part of the Company or by the
act of, or failure to act, on the part of any Holder, or by any noncompliance
by the Company with the terms of this Indenture.

     Section 12.10. Distribution or Notice to Representative.

     Whenever a distribution is to be made or a notice given to holders of
Senior Indebtedness, the distribution may be made and the notice given to their
Representative.

     Section 12.11. Rights of Trustee and Paying Agent.

     Notwithstanding any provisions of this Indenture to the contrary, the
Trustee and any Paying Agent may continue to make payments on the Securities
and shall not at any time be charged with knowledge of the existence of any
facts which would prohibit the making of such payments until it receives
written notice (received by a Trust Officer, in the case of the Trustee)
reasonably satisfactory to it that payments may not be made under this Article
and, prior to the receipt of any such notice, the Trustee, subject to the
provisions of Section 8.01, and any Agent shall be entitled to assume
conclusively that no such facts exist. The Company, an Agent, a Representative
or a holder of Senior Indebtedness may give the notice. If an issue of Senior
Indebtedness has a Representative, only the Representative (or any
Representative, if more than one) may give the notice with respect to such
Senior Indebtedness.

     The Trustee shall be entitled to conclusively rely on the delivery to it
of a written notice by a Person representing himself to be a holder of Senior
Indebtedness (or a Representative) to establish that such notice has been given
by a holder of Senior Indebtedness (or a Representative), and shall be entitled
to rely on any written notice by a Person representing himself to be a holder
of Senior Indebtedness to the effect that such issue of Senior Indebtedness has
no Representative without any obligation on the Trustee’s part to verify the
identity of the Person giving such written notice.

     Except as provided in Section 9.02, any deposit of monies by the Company
with the Trustee or any Paying Agent (whether or not in trust) for the payment
of the principal of or premium or Default Interest, if any, on, or Purchase
Price or Change of Control Purchase Price, if any, of any Securities shall be
subject to the provisions of this Article 12, except that

66

 

 if, at least three Business Days prior to the date on which by the terms
of this Indenture any such monies may become payable for any purpose
(including, without limitation, the payment of, principal of, or interest, if
any, on any Security), the Trustee shall not have received with respect to such
monies the notice provided for in this Section 12.12, then the Trustee shall
have full power and authority to receive such monies and to apply the same to
the purpose for which they were received and shall not be affected by any
notice to the contrary which may be received by it within three Business Days
prior to or on or after such date. This Section shall be construed solely for
the benefit of the Trustee and Paying Agent and shall not otherwise affect the
rights of holders of Senior Indebtedness. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this Article 12, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of the Senior Indebtedness held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this Article
12, and, if such evidence is not furnished, the Trustee may defer any payment
to such Person pending judicial determination as to the right of such Person to
receive payment.

     The Trustee shall not be deemed to owe any fiduciary duty to holders of
Senior Indebtedness by virtue of the provisions of this Article 12. The
Trustee’s responsibilities to the holders of Senior Indebtedness are limited to
those set forth in this Article and no implied covenants or obligations shall
be read into this Indenture. The Trustee shall not become liable to the
holders of Senior Indebtedness if it makes a payment prohibited by this Article
in good faith.

     The Trustee in its individual or any other capacity may hold Senior
Indebtedness with the same rights it would have if it were not Trustee. Any
Agent may do the same with like rights.

     Section 12.12. Effectuation of Subordination by Trustee.

     Each Holder of Securities, by acceptance thereof, authorizes and directs
the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes.

     Section 12.13. Permitted Payments.

     Nothing contained in this Article 12 or elsewhere in this Indenture, or in
the Securities, shall prevent the Company at any time, except under the
conditions described in Sections 12.03 and 12.04, from making payments at any
time of principal of, or interest, if any, on the Securities or from depositing
with the Trustee or any Paying Agent money for such payments.

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ARTICLE 13

MISCELLANEOUS

     Section 13.01. Trust Indenture Act Controls.

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

     Section 13.02. Notices.

     Any notice or communication to the Company or the Trustee by the other
shall be duly given if in writing and delivered in person or by overnight
courier or mailed by first class mail or transmitted by telephone facsimile
transmission (and receipt confirmed) addressed as follows:

	 	 	 
	If to the Company:	 	
SINA Corporation
	 	 	
2988 Campus Drive, Suite 100
	 	 	
San Mateo
	 	 	
California
	 	 	
94403
	 	 	
USA
	 	 	
Attention: Edward Wu
	 	 	
Tel: (1-650) 638-9228
	 	 	
Fax No. (1-650) 638-9268
	 	 	 
	With a copy to:	 	
Venture Law Group
	 	 	
2775 Sand Hill Road
	 	 	
Menlo Park, CA 94025
	 	 	
Attention: David Lee
	 	 	
Tel: (1-650) 245-3251
	 	 	
Facsimile: (1-650) 233-8386
	 	 	 
	If to the Trustee:	 	
The Bank of New York
	 	 	
101 Barclay Street, 21 West
	 	 	
New York, NY 10286
	 	 	
Attention: Global Trust Services
	 	 	
Facsimile: (1-212) 815-5802/03
	 	 	 
	 	 	
and to
	 	 	 
	 	 	The Bank of New York

	 	 	
One Temasek Avenue

68

 

	 	 	 
	 	 	
#02-01 Millenia Tower

Singapore 039192

Attention: Global Trust Services

Facsimile: (65) 6883-0338

     The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.

     Any notice or communication to a Securityholder shall be mailed by
first-class mail to his address as shown on the register kept by the Registrar.
Failure to mail a notice or communication to a Securityholder or any defect in
it shall not affect its sufficiency with respect to other Securityholders. If
the Company mails a notice or communication to Securityholders, it shall mail a
copy to the Trustee and each Agent at the same time.

     If a notice or communication is delivered, mailed or transmitted in the
manner provided above within the time prescribed, it is duly given, whether or
not the addressee receives it.

     Section 13.03. Communications by Holders with Other Holders.

     Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and any other person shall
have the protection of TIA Section 312(c).

     Section 13.04. Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

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

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

     Section 13.05. Statements required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than pursuant to Section 5.03)
shall include:

     (1)  a statement that the Person making such certificate or opinion has
read such covenant or condition;

69

 

     (2)  a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;

     (3)  a statement that, in the opinion of such Person, 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)  statement as to whether or not, in the opinion of such Person, such
condition or covenant has been complied with.

     Section 13.06. Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar, Paying Agent, New York Presenting Agent and
Conversion Agent may each make reasonable rules and set reasonable requirements
for its respective functions.

     Section 13.07. Legal Holidays.

     A “Legal Holiday” is a Saturday, Sunday or a day on which banking
institutions in New York, New York not required to be open. If a payment date
is a Legal Holiday at a place of payment, payment may be made at such place on
the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period. If a regular record date is a Legal
Holiday, the record date shall not be affected.

     Section 13.08. Governing Law; Consent To Jurisdiction and Service Of
Process.

     (a)  The laws of the State of New York shall govern this Indenture and the
Securities without regard to principles of conflicts of law.

     (b)  The Company hereby irrevocably and unconditionally submits to the
non-exclusive jurisdiction of any New York State or United States Federal court
sitting in the Borough of Manhattan in The City of New York over any suit,
action or proceeding arising out of or relating to this Indenture or the
Securities. The Company irrevocably and unconditionally waives, to the fullest
extent permitted by law, any objection which it may now or hereafter have to
the laying of the venue of any such suit, action or proceeding brought in such
a court and any claim that any such suit, action or proceeding brought in such
a court has been brought in an inconvenient forum. To the extent that the
Company has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process with respect to itself or its property, the
Company irrevocably waives such immunity in respect of its respective
obligations hereunder. The Company agrees that final judgment in any such
suit, action or proceeding brought in such a court shall be conclusive and
binding upon it and may be enforced in any court to the jurisdiction of which
the Company is subject by a suit upon such judgment or in any manner provided
by law.

70

 

     (c)  The Company irrevocably appoints Corporation Service Company as its
authorized agent for service of process and agrees that service of process in
any suit, action or proceeding may be made upon it at the office of such agent
at 1172 Avenue of the Americas, 17th Floor New York, NY 10036, United States of
America. Service of process upon such agent and written notice of such service
mailed or delivered to the Company shall to the extent permitted by law be
deemed in every respect effective service of process upon the Company in any
such legal action or proceeding. If for any reason such agent shall cease to
be such agent for services of process, the Company shall, with prior written
notice to the Trustee, appoint a new agent for service of process in the United
States. Nothing in this Indenture or the Securities shall affect the rights to
serve process in any other manner permitted by law.

     (d)  The Company hereby irrevocably waives, to the fullest extent permitted
by law, any requirement or other provision of law, rule, regulation or practice
which requires or otherwise establishes as a condition to the institution,
prosecution or completion of any suit, action or proceeding (including appeals)
arising out of or relating to this Indenture or the Securities, the posting of
any bond or the furnishing, directly or indirectly, of any other security. The
Company hereby irrevocably waives to the extent permitted by law any immunity
to jurisdiction to which it may otherwise be entitled (including, without
limitation, immunity to pre-judgment attachment, post-judgment attachment and
execution) in any legal suit, action or proceeding against it arising out of,
or based on, this Indenture, the Securities or the transactions contemplated
hereby.

     Section 13.09. No recourse against others.

     A director, officer, employee or stockholder, as such, of the Company
shall not have any liability for any obligations of the Company under the
Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Securityholder by accepting
a Security waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Securities.

     Section 13.10. Successors.

     All agreements of the Company in this Indenture and the Securities shall
bind its successors. All agreements of the Trustee in this Indenture shall
bind its successors.

     Section 13.11. Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.

71

 

     Section 13.12. Severability.

     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 a Holder shall have no claim therefor against any party hereto.

     Section 13.13. No Security Interest Created.

     Nothing in this Indenture or in the Securities, expressed or implied,
shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in
effect, in any jurisdiction in which property of the Company or its
Subsidiaries is located.

     Section 13.14. Benefits of Indenture.

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

72

 

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

	 	 	 	 	 
	 	 	SINA CORPORATION
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name:

	 	 	 	 	Title:
	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name:

	 	 	 	 	Title:

73

 

EXHIBIT A

FORM OF SECURITY

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.](1)

[THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY AND THE ORDINARY SHARES (AND
ANY OTHER SECURITIES) ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT
THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS
OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.](2)

	(1)	 	These paragraphs should be included only if the Security is a Global
Security.

A - 1 

 

[THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY AND THE ORDINARY SHARES (AND ANY OTHER SECURITIES) ISSUABLE UPON
CONVERSION THEREOF MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) TO
A NON U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR 904
UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. IN ANY CASE, THE HOLDER
HEREOF WILL NOT DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTIONS WITH
REGARD TO THE SECURITIES EXCEPT AS PERMITTED UNDER THE SECURITIES ACT.](2)

[THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION
RIGHTS AGREEMENT TO WHICH THE COMPANY IS A PARTY DATED AS OF JULY 7, 2003
RELATING TO THE SECURITY AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY
AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.](2)

	(2)	 	These paragraphs to be included only if the Security is a Transfer
Restricted Security.

A - 2 

 

	 	 	 	 	 
	
No.
	 	 	 	$[100,000,000]
	 	 	 	 	 
	
CUSIP No.
	 	 	 	Issue Date:

SINA CORPORATION

Zero Coupon Convertible Subordinated Notes Due July 15, 2023

     SINA Corporation, an exempted company with limited liability incorporated
under the laws of the Cayman Islands, for value received, promises to pay to
[                    ], or registered assigns, the principal sum of [                    (U.S. $                     ) [or such greater or lesser amount as is indicated on
the Schedule of Exchanges of Securities on the reverse of this Security] (3) on
July 15, 2023.

	(3)	 	This phrase should be included only if the Security is a Global Security.

A - 3 

 

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.

	 	 	 	 	 	 	 
	 	 	 	 	SINA CORPORATION
	 	 	 	 	 	 	 
	Dated:	 	 	 	By:	 	 
	 	

	 	 	 	

	 	 	 	 	 	 	Name:
	 	 	 	 	 	 	Title:
	 	 	 	 	 	 	 
	Authenticated:	 	 	 	 
	 	 	 	 	 	 	 
	THE BANK OF NEW
YORK, as Trustee	 	 	 	 
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	By:	 	 	 	 	 	 
	 	

	 	 	 	 
	 	 	 	 	 	 	 
	Authorized Signer	 	 	 

A - 4 

 

(Reverse of Security)

SINA CORPORATION

Zero Coupon Convertible Subordinated Notes Due July 15, 2023

SINA CORPORATION (the “Company”), an exempted company with limited liability
incorporated under the laws of the Cayman Islands.

	1.	 	METHOD OF PAYMENT

SINA CORPORATION, (the “Company”), an exempted company with limited liability
incorporated under the laws of the Cayman Islands will pay principal and
interest, if any, in money of the United States that at the time of payment is
legal tender for payment of public and private debts. Holders must surrender
Securities to a Paying Agent to collect principal payments.

	2.	 	RANKING

This Security is a subordinated unsecured obligation of SINA and ranks pari
passu in right of payment with all existing and future subordinated
indebtedness of SINA.

	3.	 	PAYING AGENT, REGISTRAR, CONVERSION AGENT

Initially, The Bank of New York (the “Trustee”) will act as Paying Agent,
Registrar, Transfer Agent and Conversion Agent. The Company may change any
Paying Agent, Registrar, Transfer Agent, Conversion Agent or Co-Registrar by
giving notice to the Trustee. The Company may act as Paying Agent, Registrar,
Transfer Agent, Conversion Agent or Co-Registrar.

	4.	 	INDENTURE

The Company issued this Security as one of a duly authorized issue of Notes of
the Company designated as its Zero Coupon Convertible Subordinated Notes Due
July 15, 2023 (the “Securities”) under an Indenture dated as of July 7, 2003
(the “Indenture”), between the Company and the Trustee. The terms of the
Securities are qualified in their entirety by those stated in the Indenture.
The Securities are subject to all such terms, and Securityholders are referred
to the Indenture for a statement of such terms. Terms used herein that are
defined in the Indenture shall have the respective meanings assigned thereto in
the Indenture. The Securities are general subordinated unsecured obligations
of the Company limited to $100,000,000 in aggregate principal amount.

A - 5 

 

	5.	 	OPTIONAL REDEMPTION

The Securities may not be redeemed prior to July 15, 2012, and are redeemable,
subject to the subordination provisions described below, on such date and
thereafter at the option of the Company, as a whole at any time, or in part
from time to time, at 100% of the principal amount plus accrued and unpaid
interest, if any, up to, but not including, the redemption date.

	6.	 	PURCHASE AT OPTION OF HOLDER

Subject to the terms and conditions of the Indenture, the Company shall
purchase, at the option of the Holder, all or any portion of the Securities
held by such Holder, in any integral multiple of $1,000, on July 15 annually
from 2007 to 2013 and on July 15, 2018 (each, a “Purchase Date”) at a purchase
price per Security equal to 100% of the aggregate principal amount of the
Security (the “Purchase Price”), together with accrued and unpaid interest, if
any, up to but not including the Purchase Date upon delivery of a Purchase
Notice containing the information set forth in the Indenture, at any time from
the opening of business on the date that is 20 Business Days prior to such
Purchase Date until the close of business on the fifth Business Day prior to
such Purchase Date, and upon delivery of the Securities to the Paying Agent by
the Holder as set forth in the Indenture.

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

If a Change of Control (as defined below) occurs, each Holder of Securities
shall have the right, at the Holder’s option, to require the Company to
repurchase all of such Holder’s Securities, or any portion thereof that is an
integral multiple of $1,000, on the date (the “Change of Control Purchase
Date”) selected by the Company that is not less than 10 nor more than 30 days
after the Final Surrender Date (as defined below), at a price equal to 100% of
the principal amount thereof, plus accrued and unpaid interest, if any, to the
Change of Control Purchase Date (the “Change of Control Purchase Price”).

Unless the Company shall have theretofore called for redemption all the
outstanding Securities, on or before the 30th day after the occurrence of a
Change of Control, the Company shall mail or cause the Trustee to mail to all
Holders of record of the Securities a notice (the “Company Notice”) describing,
among other things, the occurrence of such Change of Control and of the
repurchase right arising as a result thereof as well as the Final Surrender
Date and the Repurchase Date. The Company must deliver a copy of the Company
Notice to the Trustee and cause a copy of such notice to be published in a
newspaper of general circulation in the Borough of Manhattan, The City of New
York which newspaper shall be The Wall Street Journal. To exercise the
repurchase right, a Holder of Securities must surrender, on or before the date
which, subject to any contrary requirements of applicable law, is 60 days after
the date of mailing of the Company Notice (the “Final Surrender Date”) the
Securities with respect to which the right is being exercised, which, in the
case of definitive Securities, must be duly endorsed for transfer to the
Company.

A - 6 

 

The term “Change of Control” shall mean a “person” or “group” (within the
meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)), becoming the “beneficial owner” (as defined
in Rule l3d-3 under the Exchange Act) of Voting Shares (as defined below) of
the Company entitled to exercise more than 50% of the total voting power of all
outstanding Voting Shares of the Company (including any right to acquire Voting
Shares that are not then outstanding of which such person or group is deemed
the beneficial owner).

The term “Voting Shares” shall mean all outstanding shares of any class or
series (however designated) of Capital Stock entitled to vote generally in the
election of members of the Board of Directors.

	7.	 	NOTICE OF REDEMPTION

Notice of redemption pursuant to paragraph 5 must be mailed at least 20 days,
but not more than 60 days, before the redemption date to each Holder of
Securities to be redeemed at his address as shown on the register kept by the
Registrar, and to beneficial owners as required by applicable law. Securities
in denominations larger than $1,000 may be redeemed in part, but only in
integral multiples of $1,000. On and after the redemption date, interest shall
cease to accrue on Securities or any portion of them called for redemption;
provided that funds in the requisite amount are paid or made available for
payment on that date.

	8.	 	CONVERSION

Subject to the terms of the Indenture, Holders may surrender Securities for
conversion into shares of Ordinary Shares at any time on or prior to July 15,
2023 at the Conversion Price then in effect. The conversion right with respect
to the Security or the portion of the Security being redeemed will expire: (i)
on the date that is two Business Days immediately preceding the redemption date
or the Purchase Date (provided, that the Holder has not withdrawn the Purchase
Notice), as the case may be, or (ii) if the Holder has elected to participate
in a repurchase upon a Change of Control, at 5:00 p.m. New York time on the
business day before the Change of Control Purchase Date unless, in any case,
the Company defaults in making the payment due upon such redemption or
repurchase date (in which case the conversion right will terminate at the close
of business on the date such default is cured). The number of shares issuable
upon conversion of a Security is determined by dividing the principal amount to
be converted by the Conversion Price in effect on the Conversion Date, and
rounding the result to the nearest 1/l00th of a share, with 500/1,000 of a
share to be rounded up. Upon conversion, no payment or adjustment for accrued
interest on a converted Security (other than the payment of accrued interest to
the Holder of a Security pursuant to paragraph 1 hereof) or for dividends or
distributions on the Ordinary Shares will be made. The Company will deliver
cash for the value of such fractional shares rounded to the nearest cent with
0.5 cents to be rounded up based on the current market price of the Ordinary
Shares.

A - 7 

 

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

The initial Conversion Price is $25.79 per share of Ordinary Shares, subject to
adjustment in certain events described in the Indenture. The initial
Conversion Price is equivalent to a conversion rate of approximately 38.7692
Ordinary Shares per $1,000 principal amount of Securities, and is subject to
adjustment as described in the Indenture.

Holders may only surrender their Securities for conversion if any of the
following conditions is satisfied:

	•	 	During the period from issuance to July 15, 2022, if the Sale Price of
the Ordinary Shares for each of any five consecutive Trading Days in
the immediately preceding fiscal quarter is more than 115% of the
Conversion Price per Ordinary Share;
	 
	•	 	During the period from July 15, 2022 to July 15, 2023, if the Sale
Price of the Ordinary Shares on the previous Trading Day is more than
115% of the Conversion Price per Ordinary Share;
	 
	•	 	If the Company has called the Securities for redemption;
	 
	•	 	If the average of the Trading Prices of the Securities for any five
consecutive Trading Day period is less than 100% of the average of the
Conversion Values of the Securities during that period; provided,
however, that no Securities may be converted based on the satisfaction
of this condition during the six month period immediately preceding
each specified date on which Holders may require the Company to
repurchase their Securities (for example, with respect to the July 15,
2007 put date, the Securities may not be converted from January 15,
2007 to July 15, 2007) if on any day during such five consecutive
Trading Day period, the Sale Price of the Ordinary Shares is between
the Conversion Price and 115% of the Conversion Price; or
	 
	•	 	If the Company makes certain significant distributions to the Holders
of the Company’s Ordinary Shares or the Company enters into specified
corporate transactions.

No adjustment in the Conversion Price will be required unless such adjustment
would require a change of at least 1% in the Conversion Price then in effect;
provided that any adjustment that would otherwise be required to be made shall
be carried forward and taken into account in any subsequent adjustment. The
Company from time to time may voluntarily reduce the Conversion Price for a
period of at least 20 days.

To convert a Security, a Holder must:

	(1)	 	complete and sign the conversion notice (the “Conversion Notice”) on the
reverse of the Security indicating, inter alia, the condition upon which
the conversion is based,

A - 8 

 

	(2)	 	surrender the Security to the Conversion Agent,
	 
	(3)	 	furnish the appropriate endorsements and transfer documents if required
by the Registrar or Conversion Agent, and
	 
	(4)	 	pay any tax or duty which may be payable in respect of any transfer
involving the issue or delivery of Ordinary Shares in the name of a Person
other than the Holder thereof.

In the case of Global Securities, conversion notices may be delivered and such
Securities may be surrendered for conversion in accordance with the Applicable
Procedures. A Holder may convert a portion of a Security if the portion is
$1,000 or an integral multiple of $1,000.

If the Company is a party to a consolidation or merger, or a transfer or a
lease of all or substantially all of its assets or a merger which reclassifies
or changes its outstanding Ordinary Shares, the right to convert a Security
into Ordinary Shares may be changed into a right to convert it into securities,
cash or other assets of the Company or another person.

	9.	 	DENOMINATIONS, TRANSFER, EXCHANGE

The Securities are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. A Holder may register the transfer of
or exchange Securities in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes or other governmental charges that may
be imposed in relation thereto by law or permitted by the Indenture.

	10.	 	AMENDMENT, SUPPLEMENT, WAIVER

Subject to certain exceptions, the Indenture or the Securities may be amended
or supplemented, with the consent of the Company and the Holders of a majority
in aggregate principal amount of the Securities at the time outstanding, and
any existing default may be waived with the consent of the Holders of a
majority in aggregate principal amount of the Securities at the time
outstanding. Without the consent of any Securityholder, the Indenture or the
Securities may be amended, inter alia, to cure any ambiguity, defect or
inconsistency, to provide for assumption of Company obligations to
Securityholders in the case of a merger or acquisition, or to make any change
that does not materially adversely affect the rights of any Securityholder.

	11.	 	DEFAULTS AND REMEDIES

The following are Events of Default under the Indenture:

	(1)	 	a default in the payment of principal of any Security or of the
Redemption Price, Purchase Price or Repurchase Price in respect of any
Security when due, whether or not such payment is prohibited by the
subordination provisions of the Indenture,

A - 9 

 

	(2)	 	a default in the payment of interest, if any, on any Security which
continues for 30 days or more after such payment is due, whether or not
such payment is prohibited by the subordination provisions of the
Indenture,
	 
	(3)	 	a default in the performance of any other of the Company’s covenants or
agreements in the Indenture that continues for 60 days after written
notice to the Company by the Trustee or to the Company and the Trustee by
the holders of at least 25% in principal amount of outstanding Securities,
	 
	(4)	 	failure by the Company to make any payment when due, including any
applicable grace period, in respect of its indebtedness for borrowed
money, which payment is in an amount in excess of $15 million,
	 
	(5)	 	default by the Company, its subsidiaries or its Associated Operating
Companies with respect to an of its indebtedness for borrowed money, which
default results in acceleration of any such indebtedness that is an amount
in excess of $15 million, and
	 
	(6)	 	certain events relating to bankruptcy, insolvency or reorganization.

If an Event of Default occurs and is continuing, the Trustee or the Holders of
at least 25% in aggregate principal amount of the Securities at the time
outstanding may declare the principal of, and accrued interest, if any, on all
the Securities to be due and payable immediately. If the Event of Default
relates to bankruptcy, insolvency, or reorganization, the Securities shall
become due and payable immediately upon the occurrence of such Events of
Default, subject to applicable law.

Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may require indemnity and security
satisfactory to it before it enforces the Indenture or the Securities. Subject
to certain limitations, Holders of a majority in aggregate principal amount of
the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Securityholders notice of any continuing default
(except a default in payment of principal or premium, if any, or interest) if
it determines that withholding notice is in their interests. The Company must
furnish an annual compliance certificate to the Trustee.

	12.	 	TRUSTEE DEALINGS WITH COMPANY

The Trustee and any agent under the Indenture, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not Trustee or agent.

	13.	 	NO RECOURSE AGAINST OTHERS

A - 10 

 

A director, officer, employee or stockholder, as such, of the Company shall
have no liability for any obligations of the Company under the Securities or
the Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation. Each Holder by accepting a Security waives and
releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

	14.	 	AUTHENTICATION

This Security shall not be valid until authenticated by the manual signature of
the Trustee or an authenticating agent on the face hereof.

	15.	 	ABBREVIATIONS

Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as but not limited to: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

	16.	 	CUSIP NUMBERS

Pursuant to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures the Company has caused CUSIP numbers to be printed on
the Securities and has directed the Trustee to use CUSIP numbers in notices of
redemption as a convenience to Securityholders. No representation is made as
to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption.

	17.	 	GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

The laws of the State of New York shall govern the Indenture and the Securities
without giving effect to such state’s conflicts of law principles. The Company
has irrevocably and unconditionally submited to the non-exclusive jurisdiction
of any New York State or United States Federal court sitting in the Borough of
Manhattan in The City of New York over any suit, action or proceeding arising
out of or relating to the Indenture or the Securities. The Company has
irrevocably appointed Corporation Service Company as its authorized agent for
service of process and agrees that service of process in any suit, action or
proceeding may be made upon it at the office of such agent at 1172 Avenue of
the Americas, 17th Floor New York, NY 10036, United States of America.

THE COMPANY WILL FURNISH TO ANY SECURITYHOLDER UPON WRITTEN REQUEST AND WITHOUT
CHARGE A COPY OF THE INDENTURE. IT ALSO WILL FURNISH THE TEXT OF THIS SECURITY
IN LARGER TYPE. REQUESTS MAY BE MADE TO: SINA CORPORATION, 2988 CAMPUS DRIVE,
SUITE 100, SAN MATEO, CALIFORNIA, 94403, USA, ATTENTION: EDWARD WU, TEL:
(1-650) 638-9228, FAX NO: (1-650) 638-9268

A - 11 

 

CONVERSION NOTICE

To: SINA Corporation

     The undersigned owner of this Security hereby irrevocably exercises the
option to convert this Security, or the portion hereof (which is $1,000 or an
integral multiple thereof) below designated, into shares of SINA Corporation
Ordinary Shares in accordance with the terms of the Indenture referred to in
this Security, and directs that the Ordinary Shares issuable and/or deliverable
upon conversion, together with any payment for fractional shares and any
Securities representing any unconverted principal amount hereof, be issued
and/or delivered to the registered Holder hereof unless a different name has
been indicated below. If Ordinary Shares are to be issued in the name of a
Person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto.

     To convert this Security into SINA Corporation Ordinary Shares of the
Company, check the box: o.

     Indicate the condition on which your conversion is based:

	 	 	 
	o	 	
Conversion Upon Satisfaction of Market Price Condition: Section
11.01(a) of the Indenture
	 	 	 
	o	 	
Conversion Upon Notice of Redemption: Section 11.01(b) of the
Indenture
	 	 	 
	o	 	
Conversion Upon Trading Price of Notes Falling Below a Percentage of
the Trading Value of the Notes: Section 11.01(c) of the Indenture
	 	 	 
	o	 	
Conversion Upon Specified Corporation Transactions: Section 11.01(d)
of the Indenture

     To convert only part of this Security, state the amount (must be $1,000 or
any whole multiple thereof): $          .

A - 12 

 

     If you want the stock certificate made out in another Person’s name, fill
in the form below:

(Insert other Person’s social security or tax identification number)

(Print or type other Person’s name, address and zip code)

	 	 	 	 	 	 	 
	Date:	 	 	 	Your signature:
	 	 	

	 	

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

	 	 	 	 	 	 	 
	 	 	 	 	Signature Guaranteed:	 	 
	 	 	 	 	 	 	

A - 13 

 

ASSIGNMENT FORM

     To assign this Security or, in the event of conversion, shares of SINA
Corporation Ordinary Shares, fill in the form below:

     I or we assign and transfer this Security or,           shares of SINA
Corporation Ordinary Shares, to

     

(Insert assignee’s social security or tax identification number)

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

	and irrevocably appoint 	 	 agent to transfer
	 	
	 

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

	 	 	 	 	 	 	 
	Date:	 	 	 	Your signature:
	 	 	

	 	

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

	 	 	 	 	 	 	 
	 	 	 	 	Signature Guaranteed:	 	 
	 	 	 	 	 	 	

A - 14 

 

SCHEDULE OF EXCHANGES OF SECURITIES(4)

     The following exchanges, redemptions, repurchases or conversions of a part
of this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	Principal Amount of
	this Global Security
	Following Such	 	 	 	 	Amount of Decrease
	Decrease Date of	 	Authorized Signatory	 	 	in Principal Amount	 	 	Amount of Increase in
	Exchange (or	 	of Securities	 	 	of this Global	 	 	Principal Amount of
	Increase)	 	Custodian	 	 	Security	 	 	this Global Security
	
	 	
	 	 	
	 	 	

	(4)	 	This schedule should be included only if the Security is a Global Security.

A - 15 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OR

TRANSFER OF TRANSFER RESTRICTED SECURITIES(5)

	 	 	 
	Re:	 	
Zero Coupon Convertible Subordinated Notes due July 15, 2023 (the
“Securities”) of SINA Corporation.

     This certificate relates to $                principal amount of Securities
owned in (check applicable box)

     o book-entry or o
definitive form by                 (the
“Transferor”).

     The Transferor has requested a Registrar or the Trustee to exchange or
register the transfer of such Securities.

     In connection with such request and in respect of each such Security, the
Transferor does hereby certify that the Transferor is familiar with transfer
restrictions relating to the Securities as provided in Section 2 of the
Indenture dated as of July 7, 2003 between SINA Corporation and The Bank of New
York (the “Indenture”), and the transfer of such Security is being made
pursuant to an effective registration statement under the Securities Act of
1933, as amended (the “Securities Act”) (check applicable box) or the transfer
or exchange, as the case may be, of such Security does not require registration
under the Securities Act because (check applicable box):

	 	 	 
	o	 	
Such Security is being transferred pursuant to an effective
registration statement under the Securities Act.
	 	 	 
	o	 	
Such Security is being acquired for the Transferor’s own account,
without transfer.
	 	 	 
	o	 	
Such Security is being transferred to the Company or a Subsidiary
(as defined in the Indenture)
	 	 	 
	o	 	
Such Security is being transferred to a person the Transferor
reasonably believes is a “qualified institutional buyer” (as
defined in Rule 144A or any successor provision thereto (“Rule
144A”) under the Securities Act) that is purchasing for its own
account or for the account of a “qualified institutional buyer”, in
each case to whom notice has been given that the transfer is being
made in reliance on such Rule 144A, and in each case in reliance on
Rule 144A.
	 	 	 
	o	 	
Such Security is being transferred to a non-U.S. person in an
offshore transaction in accordance with Rule 903 and Rule 904 under
the Securities Act.
	 	 	 

A - 16 

 

	 	 	 
	o	 	
Such Security is being transferred pursuant to and in compliance
with an exemption from the registration requirements under the
Securities Act in accordance with Rule 144 (or any successor
thereto) (“Rule 144”) under the Securities Act.
	 	 	 
	o	 	
Such Security is being transferred pursuant to and in compliance
with an exemption from the registration requirements of the
Securities Act (other than an exemption referred to above) and as a
result of which such Security will, upon such transfer, cease to be
a “restricted security” within the meaning of Rule 144 under the
Securities Act.

     The Transferor acknowledges and agrees that, if the transferee will hold
any such Securities in the form of beneficial interests in a global Security
which is a “restricted security” within the meaning of Rule 144 under the
Securities Act, then such transfer can only be made (a) pursuant to Rule 144A
under the Securities Act and such transferee must be a “qualified institutional
buyer” (as defined in Rule 144A) or (b) to a non-U.S. person in an offshore
transaction in accordance with Rule 903 and Rule 904 under the Securities Act.

	 	 	 	 	 
	Date:	 	 	 	 
	 	

	 	

	 	
 	 	 
	 	 	 	 	(Insert Name of Transferor)

	(5)	 	This certificate should only be included if this Security is a Transfer
Restricted Security.

A - 17Exhibit 4.3

 

EXHIBIT 4.3

EXECUTION COPY

US$100,000,000

SINA CORPORATION

Zero Coupon Subordinated Convertible Notes Due 2023

REGISTRATION RIGHTS AGREEMENT

July 7, 2003

Credit Suisse First Boston LLC

c/o Credit Suisse First Boston LLC

     Eleven Madison Avenue

     New York, New York 10010-3629

Dear Sirs:

     SINA Corporation, a Cayman Islands corporation (the “Company”), proposes
to issue and sell to Credit Suisse First Boston LLC (the “Initial Purchaser”),
upon the terms set forth in a purchase agreement dated as of June 30, 2003 (the
“Purchase Agreement”), US$100,000,000 aggregate principal amount of its Zero
Coupon Subordinated Convertible Notes due 2023 (the “Initial Securities”). The
Initial Securities will be convertible into ordinary shares, par value $0.133
per share, of the Company (the “Ordinary Shares”) at the conversion price set
forth in the Offering Circular dated June 30, 2003 (the “Offering Circular”).
The Initial Securities will be issued pursuant to an Indenture, dated as of
July 7, 2003 (the “Indenture”), between the Company and The Bank of New York,
as trustee (the “Trustee”). The description of the registration rights
described in the Offering Circular Dated June 30, 2003 with respect to the
offering of the Initial Securities shall be qualified in its entirety by the
terms of this agreement. As an inducement to the Initial Purchasers to enter
into the Purchase Agreement, the Company agrees with the Initial Purchasers,
for the benefit of (i) the Initial Purchasers and (ii) the holders of the
Initial Securities and the Ordinary Shares issuable upon conversion of the
Initial Securities (collectively, the “Securities”) from time to time until
such time as such Securities have been sold pursuant to a Shelf Registration
Statement (as defined below) (each of the forgoing a “Holder” and collectively
the “Holders”), as follows:

     1.     Shelf Registration. (a) The Company shall, at its cost, prepare and,
as promptly as practicable (but in no event more than 90 days after so required
or requested pursuant to this Section 1) file with the Securities and Exchange
Commission (the “Commission”) and thereafter use its best efforts to cause to
be declared effective no later than 180 days a registration statement on Form
S-3 or any other appropriate form (the “Shelf Registration Statement” relating
to the offer and sale of the Transfer Restricted Securities (as defined in
Section 5 hereof) by the Holders thereof from time to time in accordance with
the methods of distribution set forth in the Shelf Registration Statement and
Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”)
(hereinafter, the “Shelf Registration”); provided, however, that no Holder
(other than an Initial Purchaser) shall be entitled to have the Securities held
by it covered by such Shelf
Registration Statement unless such Holder agrees in writing to be bound by all
the provisions of this Agreement applicable to such Holder.

 

 

     (b)  The Company shall use its best efforts to keep the Shelf Registration
Statement continuously effective in order to permit the prospectus included
therein (the “Prospectus”) to be lawfully delivered by the Holders of the
relevant Securities, for a period of two years (or for such longer period if
extended pursuant to Section 2(h) below) from the date of its effectiveness or
such shorter period that will terminate when all the Securities covered by the
Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no
longer restricted securities (as defined in Rule 144(k) under the Securities
Act, or any successor rule thereof), assuming for this purpose that the Holders
thereof are not affiliates of the Company (in any such case, such period being
called the “Shelf Registration Period”). The Company shall be deemed not to
have used its best efforts to keep the Shelf Registration Statement effective
during the requisite period if it voluntarily takes any action that would
result in Holders of Securities covered thereby not being able to offer and
sell such Securities during that period, unless such action is (i) required by
applicable law or (ii) taken by the Company in good faith and contemplated by
Sections 2(b)(v) and 2(b)(vi) below, and the Company thereafter complies with
the requirements of Section 2(h).

     (c)  Notwithstanding any other provisions of this Agreement to the
contrary, the Company shall cause the Shelf Registration Statement and the
Prospectus and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement, amendment or supplement, (i) to comply in all
material respects with the applicable requirements of the Securities Act and
the rules and regulations of the Commission and (ii) not to contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.

     2.     Registration Procedures. In connection with the Shelf Registration
contemplated by Section 1 hereof, the following provisions shall apply:

     (a)  The Company shall (i) furnish to each Initial Purchaser, prior to the
filing thereof with the Commission, a copy of the Shelf Registration Statement
and each amendment thereof and each supplement, if any, to the prospectus
included therein and, in the event that an Initial Purchaser (with respect to
any portion of an unsold allotment from the original offering) is participating
in the Shelf Registration Statement, shall use its best efforts to reflect in
each such document, when so filed with the Commission, such comments as such
Initial Purchaser reasonably may propose; and (ii) include the names of the
Holders who have timely delivered a Selling Securityholder Notice and
Questionnaire attached as Annex A to the Offering Circular (the “Notice and
Questionnaire”) to the Company in accordance with Section 2(l) hereof (each
such Holder a “Notice Holder”) .

     (b)  The Company shall give written notice to the Initial Purchasers and
the Notice Holders(which notice pursuant to clauses (ii) - (vi) hereof shall be
accompanied by an instruction to suspend the use of the Prospectus until the
requisite changes have been made) (a “Deferral Notice”):

		
	 	     (i) when the Shelf Registration Statement or any amendment thereto
has been filed with the Commission and when the Shelf Registration
Statement or any post-effective amendment thereto has become effective;

		
	 	     (ii) of any request by the Commission for amendments or supplements
to the Shelf Registration Statement or the prospectus included therein or
for additional information;
	 
	 	     (iii) of the issuance by the Commission of any stop order suspending
the effectiveness of the Shelf Registration Statement or the initiation of
any proceedings for that purpose;

2

 

		
	 	     (iv) of the receipt by the Company or its legal counsel of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or threatening
of any proceeding for such purpose;

		
	 	     (v) of the happening of any event that requires the Company to make
changes in the Shelf Registration Statement or the Prospectus in order
that the Shelf Registration Statement or the Prospectus does not contain
an untrue statement of a material fact nor omit to state a material fact
required to be stated therein or necessary to make the statements therein
(in the case of the Prospectus, in light of the circumstances under which
they were made) not misleading; and

		
	 	     (vi) of the occurrence of, but not the nature or details concerning,
certain pending corporate developments that, in the good faith judgment of
the Company, after consultation with independent outside counsel to the
Company, (A) would be required to be made in any registration statement
filed by the Company with the Commission so that such registration
statement would not be false or misleading in any material respect; (B)
would not be required to be made at such time but for the filing or
publication of such registration statement; and (C) would serve a bona
fide business purpose of the Company for not disclosing publicly.

     (c)  The Company shall make every reasonable effort to obtain the
withdrawal at the earliest possible time, of any order suspending the
effectiveness of the Shelf Registration Statement.

     (d)  The Company shall furnish to each Holder of Securities included within
the coverage of the Shelf Registration, without charge, at least one copy of
the Shelf Registration Statement and any post-effective amendment thereto,
including financial statements and schedules, and, if the Holder so requests in
writing, all exhibits thereto (including those, if any, incorporated by
reference).

     (e)  The Company shall, during the Shelf Registration Period, deliver to
each Holder of Securities included within the coverage of the Shelf
Registration, without charge, as many copies of the Prospectus (including each
preliminary prospectus) included in the Shelf Registration Statement and any
amendment or supplement thereto as such person may reasonably request. The
Company consents, subject to the provisions of this Agreement, to the use of
the Prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the
Securities covered by the Prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

     (f)  Prior to any public offering of the Securities pursuant to the Shelf
Registration Statement, the Company shall register or qualify or cooperate with
the Holders of the Securities included therein and their respective counsel in
connection with the registration or qualification of the Securities for offer
and sale under the securities or “blue sky” laws of such states of the United
States as any Holder of the Securities reasonably requests in writing and do
any and all other acts or things necessary or advisable to enable the offer and
sale in such jurisdictions of the Securities covered by such Registration
Statement; provided, however, that the Company shall not be required to (i)
qualify generally to do business in any jurisdiction where it is not then so
qualified or (ii) take any action which would subject it to general service of
process or to taxation in any jurisdiction where it is not then so subject.

     (g)  The Company shall cooperate with the Holders of the Securities to
facilitate the timely preparation and delivery of certificates representing the
Securities to be sold pursuant to any Registration
Statement free of any restrictive legends and in such denominations and
registered in such names as the

3

 

Holders may request a reasonable period of time
prior to sales of the Securities pursuant to the Shelf Registration Statement.

     (h)  Upon the occurrence of any event contemplated by paragraphs (ii)
through (v) of Section 2(b) above during the period for which the Company is
required to maintain an effective Shelf Registration Statement, the Company
shall as promptly as practicable prepare and file a post-effective amendment to
the Shelf Registration Statement or an amendment or supplement to the
Prospectus and any other required document so that, as thereafter delivered to
Notice Holders or purchasers of the Securities, the Prospectus will not contain
an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. If the
Company notifies the Initial Purchasers and the Notice Holders in accordance
with paragraphs (ii) through (v) of Section 2(b) above to suspend the use of
the Prospectus until the requisite changes to the Prospectus have been made,
then the Initial Purchasers and the Notice Holders shall suspend use of such
prospectus, and the period of effectiveness of the Shelf Registration Statement
provided for in Section 1(b) above shall be extended by the number of days from
and including the date of the giving of such notice to and including the date
when the Initial Purchasers and the Notice Holders shall have received such
amended or supplemented prospectus pursuant to this Section 2(h).

     (i)  If the Company notifies (such notice, “Suspension Notice”) the Initial
Purchasers and the Holders in accordance with paragraph (vi) of Section 2(b)
above to suspend the use of the Prospectus, then the Initial Purchasers and the
Holders shall suspend use of such Prospectus for the period set forth in the
Suspension Notice or until otherwise notified (such notice, “Resumption
Notice”) by the Company that such suspension is no longer applicable and use of
the Prospectus may be resumed (the period between the dates for such suspension
and resumption set forth on the Suspension Notice, or the date for such
resumption set forth on the Resumption Notice, as applicable, being the
“Deferral Period”), and the period of effectiveness of the Shelf Registration
Statement provided for in Section 1(b) above shall be extended by the number of
days from and including the date of the giving of the Suspension Notice to and
including the date when the Initial Purchasers and the Notice Holders shall
have received the Resumption Notice; provided, however, that the Company may
not request suspension of the use of the Prospectus pursuant to this paragraph
for longer than an aggregate of 45 days in any 90 day period or an aggregate of
90 days in any 12 month period.

     (j)  Not later than the effective date of the Shelf Registration Statement,
the Company will provide CUSIP numbers for the Initial Securities and the
Common Stock registered under the Shelf Registration Statement, and provide the
Trustee with printed certificates for the Initial Securities, in a form
eligible for deposit with The Depository Trust Company.

     (k)  The Company will comply with all rules and regulations of the
Commission to the extent and so long as they are applicable to the Shelf
Registration and will make generally available to its security holders (or
otherwise provide in accordance with Section 11(a) of the Securities Act) an
earnings statement satisfying the provisions of Section 11(a) of the Securities
Act, no later than 45 days after the end of a 12-month period (or 90 days, if
such period is a fiscal year) beginning with the first month of the Company’s
first fiscal quarter commencing after the effective date of the Shelf
Registration Statement, which statement shall cover such 12-month period.

     (l)  The Company shall cause the Indenture to be qualified under the Trust
Indenture Act of 1939, as amended, (the “Trust Indenture Act”) in a timely
manner and containing such changes, if any, as shall be necessary for such
qualification. In the event that such qualification would require the
appointment of a new
trustee under the Indenture, the Company shall appoint a new trustee
thereunder pursuant to the applicable provisions of the Indenture.

4

 

     (m)  If any Holder wishes to sell Securities pursuant to a Shelf
Registration Statement and related Prospectus, it may do so only in accordance
with this Section 2(m) and Section 2(b) of this Agreement. Following the date
that the initial Shelf Registration Statement is declared effective, each
Holder that has not previously delivered a Notice and Questionnaire who wishes
to sell Securities pursuant to a Shelf Registration Statement and related
Prospectus must to deliver a Notice and Questionnaire to the Company at least
ten (10) Business Days prior to such Holder’s intended distribution of
Securities under the Shelf Registration Statement. From and after the date the
initial Shelf Registration Statement is declared effective, the Company shall,
as promptly as practicable after the date that a Notice and Questionnaire is
delivered, and in any event upon the later of (x) five (5) business days after
such date or (y) five (5) business days after the expiration of any Deferral
Period in effect when the Notice and Questionnaire is delivered or put into
effect:

		
	 	     (i) file with the Commission a post-effective amendment to the Shelf
Registration Statement or prepare and file a supplement to the related
Prospectus or a supplement or amendment to any document incorporated
therein by reference or file any other required document so that the
Holder delivering such Notice and Questionnaire is named as a selling
securityholder in the Shelf Registration Statement and the related
Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of the Securities in accordance with applicable
law and, if the Company shall file a post-effective amendment to the Shelf
Registration Statement, use its best efforts to cause such post-effective
amendment to be declared effective under the Securities Act as promptly as
is practicable;

		
	 	     (ii) provide such Holder copies of any documents filed pursuant to
Section 2(m)(i); and

		
	 	     (iii)  notify such Holder as promptly as practicable after the
effectiveness under the Securities Act of any post-effective amendment
filed pursuant to Section 2(m)(i);

provided, that if such Notice and Questionnaire is delivered during a Deferral
Period, the Company shall so inform the Holder delivering such Notice and
Questionnaire and shall take the actions set forth in clauses (i), (ii) and
(iii) above upon expiration of the Deferral Period. Notwithstanding anything
contained herein to the contrary, the Company shall be under no obligation to
name any Holder who has not delivered a Notice and Questionnaire to the Company
in accordance with the terms hereof as a selling securityholder in any
Registration Statement or related Prospectus.

     (n)  The Company shall enter into such customary agreements (including, if
requested, an underwriting agreement in customary form) and take all such other
actions, if any, as any Holder shall reasonably request in order to facilitate
the disposition of the Securities pursuant to the Shelf Registration.

     (o)  The Company shall (i) make reasonably available for inspection by the
Holders, any underwriter participating in any disposition pursuant to the Shelf
Registration Statement and any attorney, accountant or other agent retained by
the Holders or any such underwriter, all relevant financial and other records,
pertinent corporate documents and properties of the Company and (ii) cause the
Company’s officers, directors, employees, accountants and auditors to supply
all relevant information reasonably requested by the Holders or any such
underwriter, attorney, accountant or agent in connection with the Shelf
Registration Statement, in each case, as shall be reasonably necessary to
enable such persons, to conduct a reasonable investigation within the meaning
of Section 11 of the Securities Act; provided, however, that the foregoing
inspection and information gathering shall be coordinated on behalf of the
Initial Purchasers by you and on
behalf of the other parties, by one counsel designated by and on behalf of
such other parties as described in Section 3 hereof.

5

 

     (p)  The Company, if requested by any Holder of Securities covered by the
Shelf Registration Statement, shall cause (i) its counsel to deliver an opinion
and updates thereof relating to the Securities in customary form addressed to
such Holders and the managing underwriters, if any, thereof, and dated, in the
case of the initial opinion, the effective date of such Shelf Registration
Statement (it being agreed that the matters to be covered by such opinion shall
include, without limitation, the due incorporation and good standing of the
Company and its subsidiaries; the qualification of the Company and its
subsidiaries to transact business as foreign corporations; the due
authorization, execution and delivery of the relevant agreement of the type
referred to in Section 2(m) hereof; the due authorization, execution,
authentication and issuance, and the validity and enforceability, of the
Securities; the absence of material legal or governmental proceedings involving
the Company and its subsidiaries; the absence of governmental approvals
required to be obtained in connection with the Shelf Registration Statement,
the offering and sale of the Securities, or any agreement of the type referred
to in Section 2(m) hereof; the compliance as to form of the Shelf Registration
Statement and any documents incorporated by reference therein and of the
Indenture with the requirements of the Securities Act and the Trust Indenture
Act, respectively; and, as of the date of the opinion and as of the effective
date of the Shelf Registration Statement or most recent post-effective
amendment thereto, as the case may be, the absence from the Shelf Registration
Statement and the prospectus included therein, as then amended or supplemented,
and from any documents incorporated by reference therein of an untrue statement
of a material fact or the omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading
(in the case of any such documents, in the light of the circumstances existing
at the time that such documents were filed with the Commission under the
Exchange Act of 1934, as amended (the “Exchange Act”)); (ii) its officers to
execute and deliver all customary documents and certificates and updates
thereof requested by any underwriters of the Securities and (iii) its
independent public accountants to provide to the selling Holders of the
applicable Securities and any underwriter therefor a comfort letter in
customary form and covering matters of the type customarily covered in comfort
letters in connection with primary underwritten offerings, subject to receipt
of appropriate documentation as contemplated, and only if permitted, by
Statement of Auditing Standards No. 72.

     (q)  The Company will use its commercially reasonable efforts to (a) if the
Initial Securities have been rated prior to the initial sale of such Initial
Securities, confirm such ratings will apply to the Securities covered by a
Registration Statement, or (b) if the Initial Securities were not previously
rated, cause the Securities covered by a Registration Statement to be rated
with the appropriate rating agencies, if so requested by holders of a majority
in aggregate principal amount of Securities covered by the Shelf Registration
Statement, or by the managing underwriters, if any.

     (r)  In the event that any broker-dealer registered under the Exchange Act
shall underwrite any Securities or participate as a member of an underwriting
syndicate or selling group or “assist in the distribution” (within the meaning
of the Conduct Rules (the “Rules”) of the National Association of Securities
Dealers, Inc. (“NASD”)) thereof, whether as a Holder of such Securities or as
an underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, the Company will assist such broker-dealer in complying
with the requirements of such Rules, including, without limitation, by (i) if
such Rules, including Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Shelf Registration Statement relating to such Securities, to
exercise usual standards of due diligence in respect thereto and, if any
portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities, (ii) indemnifying any such qualified
independent underwriter to the extent of the indemnification of underwriters
provided in Section 5 hereof and (iii) providing such information
to such broker-dealer as may be required in order for such broker-dealer
to comply with the requirements of the Rules.

6

 

     (s)  The Company shall use its best efforts to take all other steps
necessary to effect the registration of the Securities covered by a
Registration Statement contemplated hereby.

     (t)  Each Notice Holder agrees promptly to furnish to the Company all
information required under the Securities Act to be disclosed in order to make
the information previously furnished to the Company by such Notice Holder not
misleading and any other information regarding such Notice Holder and the
distribution such Securities as the Company may, from time to time reasonably
request. The Company shall provide each Notice Holder with a draft of the
proposed Prospectus and allow such Notice Holder adequate time and opportunity
to review and correct, if necessary, the information with respect thereto set
forth in the Prospectus. If each such Notice Holder has been provided such
opportunity to review such Prospectus, any sale of any Securities by any Holder
by way of a Prospectus shall constitute a representation and warranty by such
Holder that the information relating to such Holder and its plan of
distribution is as set forth in the Prospectus delivered by such Holder in
connection with such disposition, that such Prospectus does not as of the time
of such sale contain any untrue statement of a material fact relating to or
provided by such Holder or its plan of distribution and that such Prospectus
does not as of the time of such sale omit to state any material fact relating
to or provided by such Holder or its plan of distribution necessary to make the
statements in such Prospectus, in the light of the circumstances under which
they were made, not misleading.

     3.     Registration Expenses. (a) All expenses incident to the Company’s
performance of and compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement is ever filed or becomes
effective, including without limitation;

		
	 	     (i) all registration and filing fees and expenses;

		
	 	     (ii) all fees and expenses of compliance with federal securities and
state “blue sky” or securities laws;

		
	 	     (iii) all expenses of printing (including printing certificates for
the Securities to be issued and printing of Prospectuses), messenger and
delivery services and telephone;

		
	 	     (iv) all fees and disbursements of counsel for the Company;

		
	 	     (v) all application and filing fees in connection with listing the
Securities on a national securities exchange or automated quotation system
pursuant to the requirements hereof; and

		
	 	     (vi) all fees and disbursements of independent certified public
accountants of the Company (including the expenses of any special audit
and comfort letters required by or incident to such performance).

The Company will bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses
of any person, including special experts, retained by the Company.
Notwithstanding the provisions of this Section 3, each seller of Securities
shall pay any applicable underwriting discount and commissions.

     (b)  In connection with the Shelf Registration Statement required by this
Agreement, the Company will reimburse the Initial Purchasers and the Holders of
Securities covered by the Shelf Registration Statement, for the reasonable fees
and disbursements of not more than one counsel, designated by the Holders of a
majority in principal amount of the Securities covered by the Shelf
Registration

7

 

Statement (provided that Holders of Common Stock issued upon the
conversion of the Initial Securities shall be deemed to be Holders of the
aggregate principal amount of Initial Securities from which such Common Stock
was converted) to act as counsel for the Holders in connection therewith.

     4.     Indemnification. (a) The Company agrees to indemnify and hold
harmless each Holder and each person, if any, who controls such Holder within
the meaning of the Securities Act or the Exchange Act (each Holder, and such
controlling persons are referred to collectively as the “Indemnified Parties”)
from and against any losses, claims, damages or liabilities, joint or several,
or any actions in respect thereof (including, but not limited to, any losses,
claims, damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Shelf
Registration Statement or prospectus including any document incorporated by
reference therein, or in any amendment or supplement thereto or in any
preliminary prospectus relating to the Shelf Registration, or arise out of, or
are based upon, the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, and shall reimburse, as incurred, the Indemnified Parties for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action in
respect thereof; provided, however, that (i) the Company shall not be liable in
any such case to the extent that such loss, claim, damage or liability arises
out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in the Shelf Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to the Shelf Registration in reliance upon and in
conformity with written information pertaining to such Holder and furnished to
the Company by or on behalf of such Holder specifically for inclusion therein
and (ii) with respect to any untrue statement or omission or alleged untrue
statement or omission made in any preliminary prospectus relating to the Shelf
Registration Statement, the indemnity agreement contained in this subsection
(a) shall not inure to the benefit of any Holder from whom the person asserting
any such losses, claims, damages or liabilities purchased the Securities
concerned, to the extent that a prospectus relating to such Securities was
required to be delivered by such Holder under the Securities Act in connection
with such purchase and any such loss, claim, damage or liability of such Holder
results from the fact that there was not sent or given to such person, at or
prior to the written confirmation of the sale of such Securities to such
person, a copy of the final prospectus if the Company had previously furnished
copies thereof to such Holder; provided further, however, that this indemnity
agreement will be in addition to any liability which the Company may otherwise
have to such Indemnified Party. The Company shall also indemnify underwriters,
their officers and directors and each person who controls such underwriters
within the meaning of the Securities Act or the Exchange Act to the same extent
as provided above with respect to the indemnification of the Holders of the
Securities if requested by such Holders.

     (b)  Each Holder, severally and not jointly, will indemnify and hold
harmless the Company, its officers and directors and each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act from and against any losses, claims, damages or liabilities or any actions
in respect thereof, to which the Company or any such controlling person may
become subject under the Securities Act, the Exchange Act or otherwise, insofar
as such losses, claims, damages, liabilities or actions arise out of or are
based upon any untrue statement or alleged untrue statement of a material fact
contained in the Shelf Registration Statement or prospectus or in any amendment
or supplement thereto or in any preliminary prospectus relating to the Shelf
Registration, or arise out of or are based upon the omission or alleged
omission
to state therein a material fact necessary to make the statements therein not
misleading, but in each case only to the extent that the untrue statement or
omission or alleged untrue statement or omission was made in reliance upon and
in conformity with written information pertaining to such Holder and

8

 

furnished
to the Company by or on behalf of such Holder specifically for inclusion
therein; and, subject to the limitation set forth immediately preceding this
clause, shall reimburse, as incurred, the Company for any legal or other
expenses reasonably incurred by the Company or any such controlling person in
connection with investigating or defending any loss, claim, damage, liability
or action in respect thereof. This indemnity agreement will be in addition to
any liability which such Holder may otherwise have to the Company or any of its
controlling persons.

     (c)  Promptly after receipt by an indemnified party under this Section 4 of
notice of the commencement of any action or proceeding (including a
governmental investigation), such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 4,
notify the indemnifying party of the commencement thereof; but the failure to
notify the indemnifying party shall not relieve it from any liability that it
may have under subsection (a) or (b) above except to the extent that it has
been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided further that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under subsection (a) or (b) above. In case
any such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 4 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement of any pending
or threatened action in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified
party unless such settlement (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter
of such action, and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified
party.

     (d)  If the indemnification provided for in this Section 4 is unavailable
or insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to in subsection (a) or
(b) above in such proportion as is appropriate to reflect the relative fault of
the indemnifying party or parties on the one hand and the indemnified party on
the other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities (or actions in respect thereof) as well
as any other relevant equitable considerations. The relative fault of the
parties shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company on the one hand or such Holder or such other indemnified party, as
the case may be, on the other, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this subsection (d).
Notwithstanding any other provision of this Section 4(d), the Holders shall not
be required to contribute any amount in excess of the
amount by which the net proceeds received by such Holders from the sale of the
Securities pursuant to the Shelf Registration Statement exceeds the amount of
damages which such Holders have otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the

9

 

meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. For purposes of this
paragraph (d), each person, if any, who controls such indemnified party within
the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act shall have the same rights to contribution as the Company.

     (e)  The agreements contained in this Section 4 shall survive the sale of
the Securities pursuant to the Shelf Registration Statement and shall remain in
full force and effect, regardless of any termination or cancellation of this
Agreement or any investigation made by or on behalf of any indemnified party.

     5.     Default Interest Under Certain Circumstances. (a) Default interest
(the “Default Interest”) with respect to the Initial Securities shall be
assessed as follows if any of the following events occur (each such event in
clauses (i) through (iv) below being herein called a “Registration Default”):

		
	 	     (i) the Shelf Registration Statement has not been filed with the
Commission by the 90th day after the first date of original issuance of
the Initial Securities;

		
	 	     (ii) the Shelf Registration Statement has not been declared effective
by the Commission by the 180th day after the first date of original issue
of the Initial Securities;

		
	 	     (iii) the Shelf Registration Statement is declared effective by the
Commission but (A) the Shelf Registration Statement thereafter ceases to
be effective or (B) the Shelf Registration Statement or the Prospectus
ceases to be usable in connection with resales of Transfer Restricted
Securities (as defined below) during the periods specified herein because
either (1) any event occurs as a result of which the Prospectus forming
part of such Shelf Registration Statement would include any untrue
statement of a material fact or omit to state any material fact necessary
to make the statements therein in the light of the circumstances under
which they were made not misleading, or (2) it shall be necessary to amend
such Shelf Registration Statement or supplement the related prospectus, to
comply with the Securities Act or the Exchange Act or the respective rules
thereunder; or

		
	 	     (iv) the aggregate duration of Deferral Periods in any period exceeds
the number of days permitted in respect of such period pursuant to Section
2(i) hereof.

Each of the foregoing will constitute a Registration Default.

     Default Interest shall accrue on the Initial Securities over and above the
interest set forth in the title of the Initial Securities and any other
interest which may accrue on the Securities under the Indenture, from and
including the date on which any such Registration Default shall begin, to but
excluding the date on which all such Registration Defaults have been cured, (i)
in respect of any Note, at a rate per annum equal to 0.50% of the aggregate
principal amount of such Note and (ii) in respect of each Underlying Ordinary
Share that has been issued upon conversion of a Note, at a rate per annum equal
to 0.50% on the Conversion Price (as defined in the Indenture) at which the
Note applicable to such Underlying Ordinary Share was converted, as the case
may, be determined on the basis of a 360 day year (the “Default Interest
Rate”); provided that in the case of a Default Interest accrual period that is
in effect solely as a result of the Company’s failure to perform its
obligations set forth in Section 2(m) with respect to Holders delivering
Notices and Questionnaires
requesting registration following the date on which the initial Shelf
Registration Statement is declared effective, such Default Interest shall be
paid only to the Holders (as set forth in the succeeding

10

 

paragraph) that have
delivered such Notices and Questionnaires that caused the Company to incur the
obligations set forth in Section 2(m)(i). Notwithstanding the foregoing, no
Default Interest shall accrue as to any Security from and after the earlier of
(x) the date such Security is eligible for sale under rule 144(k) of the
Securities Act and (y) expiration of the Shelf Registration Period. The rate
of accrual of Default Interest with respect to any period shall not exceed the
rate provided for in this paragraph notwithstanding the occurrence of multiple
current Registration Defaults.

     (b)  A Registration Default referred to in Section 5(a)(iii) hereof shall
be deemed not to have occurred and be continuing in relation to the Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to the Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with
respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause
(y), the Company is proceeding promptly and in good faith to amend or
supplement the Shelf Registration Statement and related prospectus to describe
such events as required by paragraph 2(h) hereof; provided, however, that in
any case if such Registration Default occurs for a continuous period in excess
of 30 days, Default Interest shall be payable in accordance with the above
paragraph from the 31st continuous day such Registration Default occurs until
such Registration Default is cured.

     (c)  Any amounts of Default Interest due pursuant to Section 5(a) will be
payable in cash semi-annually on the April 15th and October 15th during the
continuation of a Registration Default and which next succeeds the end of a
period of Registration Default.

     (d)  “Transfer Restricted Securities” means each Security until (i) the
date on which such Security has been effectively registered under the
Securities Act and disposed of in accordance with the Shelf Registration
Statement or (iv) the date on which such Security is distributed to the public
pursuant to Rule 144 under the Securities Act or is saleable pursuant to Rule
144(k) under the Securities Act.

     6.     Rules 144 and 144A. The Company shall use its best efforts to file the
reports required to be filed by it under the Securities Act and the Exchange
Act in a timely manner and, if at any time the Company is not required to file
such reports, it will, upon the request of any Holder, make publicly available
other information so long as necessary to permit sales of their securities
pursuant to Rules 144 and 144A. The Company covenants that it will take such
further action as any Holder may reasonably request, all to the extent required
from time to time to enable such Holder to sell Transfer Restricted Securities
without registration under the Securities Act within the limitation of the
exemptions provided by Rules 144 and 144A (including the requirements of Rule
144A(d)(4)). The Company will provide a copy of this Agreement to prospective
purchasers of Securities identified to the Company by the Initial Purchasers
upon request. Upon the request of any Holder, the Company shall deliver to
such Holder a written statement as to whether it has complied with such
requirements. Notwithstanding the foregoing, nothing in this Section 6 shall
be deemed to require the Company to register any of its securities pursuant to
the Exchange Act.

     7.     Underwritten Registrations. If any of the Transfer Restricted
Securities covered by the Shelf Registration are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers
that will administer the offering (“Managing Underwriters”) will be selected by
the holders of 33% in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering (provided that holders of Ordinary
Shares issued upon conversion of the Initial Securities shall not be
deemed holders of Ordinary Shares, but shall be deemed to be holders of the
aggregate principal amount of Initial Securities from which such Ordinary
Shares was converted.

11

 

     No person may participate in any underwritten registration hereunder
unless such person (i) agrees to sell such person’s Transfer Restricted
Securities on the basis reasonably provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and
(ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required
under the terms of such underwriting arrangements.

     8.     Miscellaneous.

     (a)  Remedies. The Company acknowledges and agrees that any failure by the
Company to comply with its obligations under Section 1 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required
to specifically enforce the Company’s obligations under Sections 1 hereof. The
Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b)  No Inconsistent Agreements. The Company will not on or after the date
of this Agreement enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company’s securities under any
agreement in effect on the date hereof.

     (c)  Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, except by the Company and the written
consent of the holders of a majority in principal amount of the Securities
affected by such amendment, modification, supplement, waiver or consents
(provided that holders of Ordinary Shares issued upon conversion of Initial
Securities shall not be deemed holders of Ordinary Shares, but shall be deemed
to be holders of the aggregate principal amount of Initial Securities from
which such Ordinary Shares was converted). Without the consent of the Holder
of each Initial Security, however, no modification may change the provisions
relating to the payment of Default Interest.

     (d)  Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first-class
mail, facsimile transmission, or air courier which guarantees overnight
delivery:

		
	 	(1) if to a Holder of the Securities, at the most current address
given by such Holder to the Company.

	 	 	 	 	 	 	 
	 	 	 	 	 	(2)	 if to the Initial Purchasers;
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Credit Suisse First Boston LLC

Eleven Madison Avenue

New York, NY 10010-3629

Tel: (212) 325-2000

Fax No.: (212) 325-8278

Attention: Transactions Advisory Group
	 	 	 	 	 	 	 
	with a copy to:

12

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Shearman & Sterling LLP

12/F Gloucester Tower

The Landmark

11 Pedder Street

Central

Hong Kong

Tel: (852) 2978-8056

Fax No.: (852) 2978-8099

Attention: Hsiao-chiung Li

	 	 	 	 	 	 	 
	 	 	 	 	(3)	 	if to the Company, at its address as follows:
	 	 	 	 	 	 	 
	 	 	 	 	 	 	SINA Corporation

2988 Campus Drive, Suite 100

San Mateo

California

94403

USA

Attention: Edward Wu

Tel: (1-650) 638-9228

Fax No.: (1-650) 638-9268
	 	 	 	 	 	 	 
	with a copy to:
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Venture Law Group

2775 Sand Hill Road

Menlo Park, CA 94025

Attention: David Lee

Tel: 1-650-233-8316

Fax No.: 1-650-233-8386

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three business
days after being deposited in the mail, postage prepaid, if mailed; when
receipt is acknowledged by recipient’s facsimile machine operator, if sent by
facsimile transmission; and on the day delivered, if sent by overnight air
courier guaranteeing next day delivery.

     (e)  Third Party Beneficiaries. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right
to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder.

     (f)  Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns.

     (g)  Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

13

 

     (h)  Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (i)  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.

     By the execution and delivery of this Agreement, the Company submits to
the nonexclusive jurisdiction of any federal or state court in the State of New
York.

     (j)  Severability. If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

     (k)  Securities Held by the Company. Whenever the consent or approval of
Holders of a specified percentage of principal amount of Securities is required
hereunder, Securities held by the Company or its affiliates (other than
subsequent Holders of Securities if such subsequent Holders are deemed to be
affiliates solely by reason of their holdings of such Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

     (l)  Agent for Service; Submission to Jurisdiction; Waiver of Immunities.
By the execution and delivery of this Agreement, the Company (i) acknowledges
that it has, by separate written instrument, irrevocably designated and
appointed Corporation Service Company (and any successor entity), as its
authorized agent upon which process may be served in any suit or proceeding
arising out of or relating to this Agreement that may be instituted in any
federal or state court in the State of New York or brought under federal or
state securities laws, and acknowledges that Corporation Service Company has
accepted such designation, (ii) submits to the nonexclusive jurisdiction of any
such court in any such suit or proceeding, and (iii) agrees that service of
process upon Corporation Service Company and written notice of said service to
the Company shall be deemed in every respect effective service of process upon
it in any such suit or proceeding. The Company further agrees to take any and
all action, including the execution and filing of any and all such documents
and instruments, as may be necessary to continue such designation and
appointment of Corporation Service Company in full force and effect so long as
any of the Securities shall be outstanding. To the extent that the Company may
acquire any immunity from jurisdiction of any court or from any legal process
(whether through service of notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise) with respect to itself or its
property, it hereby irrevocably waives such immunity in respect of this
Agreement, to the fullest extent permitted by law.

14

 

     If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof,
whereupon this instrument, along with all counterparts, will become a binding
agreement among the Initial Purchasers and the Company in accordance with its
terms.

	 	 	 
	 	Very truly yours,
	 
	 	SINA Corporation
	 
	 	by	 
	 	 	

Name:
	 	 	
Title:

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

Credit Suisse First Boston LLC

By: Credit Suisse First Boston LLC

	 	 	 
	by	 	 
	 	 	

Name:
	 	 	
Title:

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