Document:

Exhibit 4.2

 

FIRST SUPPLEMENTAL INDENTURE

by and among

 

GLOBALSTAR, INC.

AS ISSUER,

 

AND

 

U.S. BANK, NATIONAL ASSOCIATION

AS TRUSTEE

 

 

 5.75% Convertible Senior Notes due 2028

 

 

Dated as of April 15, 2008

 

Supplemental To Indenture For Senior Debt Securities

 

Dated as of April 15, 2008

 

 

TABLE OF CONTENTS

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  
	
  Section 1.01.

  	
  Scope of First Supplemental Indenture

  	
  2

  
	
  Section 1.02. 

  	
  Definitions

  	
  2

  
	
  Section 1.03. 

  	
  Other Definitions

  	
  9

  
	
  Section 1.04. 

  	
  Rules of Construction

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
  THE SECURITIES

  
	
   

  
	
  Section 2.01. 

  	
  Title; Amount and Issue of Securities; Principal and Interest

  	
  10

  
	
  Section 2.02. 

  	
  Form of Securities

  	
  11

  
	
  Section 2.03. 

  	
  Legends

  	
  12

  
	
  Section 2.04. 

  	
  Registrar and Paying Agent

  	
  13

  
	
  Section 2.05. 

  	
  General Provisions Relating to Transfer and Exchange

  	
  13

  
	
  Section 2.06. 

  	
  Book-Entry Provisions for the Global Securities

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 3.01. 

  	
  Payment of Securities

  	
  14

  
	
  Section 3.02. 

  	
  Further Instruments and Acts

  	
  15

  
	
  Section 3.03. 

  	
  Statement by Officer as to Default

  	
  15

  
	
  Section 3.04. 

  	
  Special Interest

  	
  15

  
	
  Section 3.05. 

  	
  Pledge and Escrow Agreement Deposit

  	
  15

  
	
  Section 3.06. 

  	
  Reports by Company

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  
	
  REDEMPTION OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  Section 4.01. 

  	
  Optional Redemption

  	
  16

  
	
  Section 4.02. 

  	
  Selection by Trustee of Securities to Be Redeemed

  	
  16

  
	
  Section 4.03.

  	
  Notice of Redemption

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 5.01. 

  	
  Additional Events of Default

  	
  18

  
	
  Section 5.02. 

  	
  Sole Remedy for Failure to Report

  	
  19

  

 

ii

 

	
  ARTICLE 6

  
	
  DISCHARGE OF INDENTURE

  
	
   

  
	
  Section 6.01. 

  	
  Discharge of Liability on Securities

  	
  20

  
	
  Section 6.02. 

  	
  Reinstatement

  	
  21

  
	
  Section 6.03. 

  	
  Officer’s Certificate; Opinion of Counsel

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  
	
  AMENDMENTS

  
	
  Section 7.01. 

  	
  With Consent of Holders

  	
  21

  
	
  Section 7.02. 

  	
  Without Consent of Holders

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  
	
  PURCHASE AT THE OPTION OF HOLDERS UPON A
  FUNDAMENTAL

  
	
  CHANGE; PURCHASE AT THE OPTION OF HOLDERS

  
	
   

  
	
  Section 8.01. 

  	
  Purchase at the Option of the Holder Upon a Fundamental Change

  	
  22

  
	
  Section 8.02. 

  	
  Purchase of Securities at the Option of the Holder

  	
  25

  
	
  Section 8.03.     

  	
  Further Conditions and Procedures for Purchase at the Option of the
  Holder Upon a Fundamental Change and Purchase of Securities at the Option of
  the Holder

  	
  27

  
	
  Section 8.04. 

  	
  Purchase of Securities in Open Market

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  
	
  CONVERSION

  
	
   

  
	
  Section 9.01. 

  	
  Conversion of Securities

  	
  31

  
	
  Section 9.02. 

  	
  Conversion Procedures

  	
  31

  
	
  Section 9.03. 

  	
  Settlement Upon Conversion

  	
  32

  
	
  Section 9.04. 

  	
  Adjustments to Base Conversion Rate

  	
  34

  
	
  Section 9.05. 

  	
  Adjustment to Common Stock Delivered Upon Make Whole Fundamental
  Change

  	
  42

  
	
  Section 9.06. 

  	
  Interest Make Whole Upon Conversion

  	
  43

  
	
  Section 9.07. 

  	
  Fractional Shares

  	
  44

  
	
  Section 9.08. 

  	
  Notice of Adjustment

  	
  44

  
	
  Section 9.09. 

  	
  Notice of Certain Transactions

  	
  44

  
	
  Section 9.10. 

  	
  Effect of Recapitalizations, Reclassifications, and Changes of Common
  Stock

  	
  45

  
	
  Section 9.11. 

  	
  Responsibility of Trustee

  	
  46

  
	
  Section 9.12. 

  	
  Stockholder Rights Plan

  	
  47

  
	
  Section 9.13. 

  	
  Taxes on Conversion

  	
  47

  
	
  Section 9.14. 

  	
  Certain Covenants of the Company

  	
  47

  

 

iii

 

	
  ARTICLE 10

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 10.01. 

  	
  No Defeasance

  	
  48

  
	
  Section 10.02. 

  	
  Notices, Etc., to Trustee and Company

  	
  48

  
	
  Section 10.03. 

  	
  Communication by Holders with other Holders

  	
  49

  
	
  Section 10.04. 

  	
  Rules by Trustee, Paying Agent and Registrar

  	
  49

  
	
  Section 10.05. 

  	
  Legal Holidays

  	
  49

  
	
  Section 10.06. 

  	
  Governing Law

  	
  50

  
	
  Section 10.07. 

  	
  Incorporators, Shareholders, Officers and Directors of the Company
  Exempt from Individual Liability

  	
  50

  
	
  Section 10.08. 

  	
  Successors and Assigns

  	
  50

  
	
  Section 10.09. 

  	
  Multiple Originals

  	
  50

  
	
  Section 10.10. 

  	
  Conflict with Trust Indenture Act

  	
  50

  
	
  Section 10.11. 

  	
  Effect of Headings and Table of Contents

  	
  50

  
	
  Section 10.12. 

  	
  Separability Clause

  	
  51

  
	
  Section 10.13. 

  	
  Benefits of the First Supplemental Indenture

  	
  51

  
	
  Section 10.14. 

  	
  Calculations

  	
  51

  
	
  Section 10.15. 

  	
  Ratification and Incorporation of Original Indenture

  	
  51

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of the Security

  
				

 

iv

 

FIRST SUPPLEMENTAL INDENTURE dated as of
April 15, 2008, between Globalstar, Inc., a Delaware corporation (the
“Company”) and U.S. Bank, National
Association, as Trustee (the “Trustee”).

 

Each party agrees as follows for the benefit
of the other parties and for the equal and ratable benefit of the Holders of
the Company’s 5.75% Convertible Senior Notes due 2028 (the “Securities”) on the date hereof.

 

W I T N E S S E T H:

 

WHEREAS, this First Supplemental Indenture is
supplemental to the Original Indenture; and

 

WHEREAS, for its lawful corporate purposes,
the Company has duly authorized the issue of the Securities, initially in an
aggregate principal amount not to exceed $135,000,000 (or $150,000,000 if the
Underwriters exercise their overallotment option, as described in
Section 2(b) of the Underwriting Agreement, in full), and in order to
provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the
execution and delivery of this First Supplemental Indenture; and

 

WHEREAS, pursuant to Section 3.1 of the
Original Indenture, the Company may establish one or more series of Securities
(as such term is defined in the Original Indenture) from time to time as
authorized by a supplemental indenture, of which the Securities shall be one
such series; and

 

WHEREAS, the Form of Security, the
certificate of authentication to be borne by each Security, the Assignment
Form, the Form of Conversion Notice, the Form of Fundamental Change
Purchase Notice and the Form of Purchase Notice to be borne by the
Securities are to be substantially in the forms hereinafter provided for; and

 

WHEREAS, all acts and things necessary to
make the Securities, when executed by the Company and authenticated and
delivered by the Trustee or a duly authorized authenticating agent, as in the
Indenture provided, the valid, binding and legal obligations of the Company,
and to constitute these presents a valid agreement according to its terms, have
been done and performed, and the execution of this First Supplemental Indenture
and the issue hereunder of the Securities have in all respects been duly
authorized.

 

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL
INDENTURE WITNESSETH:

 

That in order to declare the terms and
conditions upon which the Securities are, and are to be, authenticated, issued
and delivered, and in consideration of the premises and of the purchase and
acceptance of the Securities by the holders thereof, the Company covenants and
agrees with the Trustee for the 

 

 

equal and proportionate benefit of the
respective holders from time to time of the Securities (except as otherwise
provided below), as follows:

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.  Scope of First Supplemental Indenture. 
The changes, modifications and supplements to the Original
Indenture affected by this First Supplemental Indenture shall be applicable
only with respect to, and shall only govern the terms of, the Securities, which
shall initially be limited to $135,000,000 (or $150,000,000 if the Underwriters
exercise their overallotment option, as described in Section 2(b) of
the Underwriting Agreement, in full) aggregate principal amount Outstanding and
which may be issued from time to time, and shall not apply to any other
Securities that may be issued under the Original Indenture unless a
supplemental indenture with respect to such other Securities specifically
incorporates such changes, modifications and supplements.  The provisions of the First Supplemental
Indenture shall supersede any corresponding or inconsistent provisions in the
Original Indenture.

 

Section 1.02.  Definitions.  The
terms defined in this Section 1.02 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
First Supplemental Indenture and for purposes of the Original Indenture as it
relates to the Securities shall have the respective meanings specified in this
Section 1.02.  Except as otherwise
provided in this First Supplemental Indenture, all words, terms and phrases
defined in the Original Indenture (but not otherwise defined herein) shall have
the same meaning herein as in the Original Indenture. All other terms used in
this First Supplemental Indenture that are defined in the Trust Indenture Act
or that are by reference therein defined in the Securities Act (except as
herein otherwise expressly provided or unless the context otherwise requires)
shall have the meanings assigned to such terms in said Trust Indenture Act and
in said Securities Act as in force at the date of the execution of this First
Supplemental Indenture.  The words
“herein,” “hereof,” “hereunder,” and words of similar import refer to this
First Supplemental Indenture as a whole and not to any particular Article,
Section or other subdivision.

 

“Allocable Collateral”
has the meaning specified in the Pledge and Escrow Agreement.

 

“Base Conversion Price”
at any time means a dollar amount equal to $1,000 divided by
the Base Conversion Rate at such time, rounded to the nearest cent.

 

2

 

“Base Conversion Rate”
shall initially be 166.1820 shares of Common Stock per $1,000 principal amount
of Securities, subject to adjustment as provided in Article 9.

 

“Beneficial Owner”
shall mean, with respect to any security, any Person who is considered a
beneficial owner of such security in accordance with Rule 13d-3
promulgated by the SEC under the Exchange Act.

 

“Business Day”
means any day other than a Saturday, a Sunday or a day on which banking
institutions in The City of New York are authorized or required by law,
regulation or executive order to close.

 

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

 

“Change of Control”
means the occurrence of any of the following events:

 

(1)           any
“person” or “group” (as such terms are used in Sections 13(d) and
14(d) of the Exchange Act) is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
Person shall be deemed to have beneficial ownership of all shares that such
Person has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of Voting Stock
representing 50% or more (or, if such person is Thermo Capital Partners LLC,
70% or more) of the total voting power of all outstanding Voting Stock of the
Company; or

 

(2)           the
Company consolidates with, or merges with or into, another Person or the
Company sells, assigns, conveys, transfers, leases or otherwise disposes of all
or substantially all of its assets to any Person; provided,
however, that any such transaction will
not be a Change of Control if immediately after such transaction the Person or
Persons that “beneficially owned” (as defined in Rules 13d-3 and 13d-5
under the Exchange Act) immediately prior to the transaction, directly or
indirectly, Voting Stock representing a majority of the total voting power of
all outstanding Voting Stock of the Company, “beneficially own or owns” (as so
determined), directly or indirectly, Voting Stock representing a majority of
the total voting power of the outstanding Voting Stock of the surviving or
transferee person; or

 

(3)           the
first day on which the Continuing Directors cease for any reason to constitute
a majority of the Board of Directors (defined without regard to the words “or
any duly authorized committee of that board to which the powers of that board
have been lawfully delegated” in such definition); or

 

3

 

(4)           the
adoption of a plan of liquidation or dissolution of the Company.

 

The number of shares of “outstanding Voting
Stock of the Company” for purposes of clause (1) of the definition of
Change of Control, shall include (without duplication) all shares of Common Stock
that any Person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time.

 

Notwithstanding the foregoing, an event or
transaction described in clause (2) above will not constitute a Change of
Control if at least 90% of the consideration for the Common Stock (excluding
cash payments for fractional shares and cash payments made in respect of
dissenters’ appraisal rights) in the transaction or transactions constituting
the Change of Control consists of common stock and any associated rights listed
on a United States national securities exchange or approved for quotation and
trading on a national automated dealer quotation system or established
automated over-the-counter trading market in the United States, or that will be
so traded or quoted when issued or exchanged in connection with the
transaction, and as a result of such transaction the Securities become
convertible solely into such common stock, subject to the settlement provisions
of Section 9.03 (including, but not limited to, the Company’s right to
deliver cash in respect of all or a portion of the Conversion Shares).

 

“Close of Business”
means 5:00 p.m. New York City time.

 

“Closing Sale Price”
of the Common Stock (or any other securities on any date) means the last
reported sale price per share (or if no last reported 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 that date as reported
in composite transactions for the principal United States national or regional
securities exchange on which the Common Stock or such securities, as
applicable, are listed for trading. If the Common Stock or the other security,
as applicable, is not listed for trading on a United States national or
regional securities exchange on the relevant date, the Closing Sale Price will
be the last quoted bid price for Common Stock or the other security, as
applicable, in the over-the-counter market on the relevant date as reported by
Pink Sheets LLC or similar organization. If Common Stock or the other security,
as applicable, is not so quoted the Closing Sale Price will be the average of
the mid-point of the last bid and ask prices for Common Stock or the other
security, as applicable, on the relevant date from each of three nationally
recognized independent investment banking firms selected by the Company for
this purpose (which determination shall be conclusive and shall be evidenced by
an Officer’s Certificate delivered to the Trustee).

 

“Common Stock”
means the Company’s common stock, par value $0.0001 per share at the date of
this First Supplemental Indenture or, subject to 

 

4

 

Section 9.10, shares of any class or
classes resulting from any reclassification or reclassifications thereof and
that have no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of
the Company and that are not subject to redemption by the Company; provided that if at any time there shall be more than one
such resulting class, the shares of each such class then so issuable shall be
substantially in the proportion which the total number of shares of such class
resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications.

 

“Continuing Directors”
means, as of any date of determination, any member of the Board of Directors
who was (a) a member of the Board of Directors on the date of this First
Supplemental Indenture or (b) nominated for election or elected to the
Board of Directors with the approval of a majority of the Continuing Directors
who were members of the Board of Directors at the time of such nomination or
election.  Solely for purposes of this
definition, the term “Board of Directors” shall be defined without regard to
the words “or any duly authorized committee of that board to which the powers
of that board have been lawfully delegated” in such definition.

 

“Conversion Agent”
means the office or agency appointed by the Company where Securities may be
presented for conversion.  The Conversion
Agent appointed by the Company shall initially be the Trustee.

 

“Conversion Reference Period”
means:

 

(1)           for
Securities that are converted during the period beginning on, and including,
March 1, 2028, and ending on the Close of Business on the Business Day
immediately preceding the Stated Maturity for the payment of principal of the
Securities, the 40 consecutive Trading Days beginning on, and including, the
third Trading Day immediately following the Stated Maturity for the payment of
principal of the Securities;

 

(2)           for
Securities that are converted after the Company has specified a Redemption
Date, the 40 consecutive Trading Days beginning on, and including, the third
Trading Day immediately following the Redemption Date; and

 

(3)           in
all other instances, the 40 consecutive Trading Days beginning on, and
including, the third Trading Day immediately following the Conversion Date.

 

“Daily Conversion Rate”
for any Trading Day means (a) if the Volume Weighted Average Price of the
Common Stock on such Trading Day is less than or equal to the Base Conversion
Price, then the Daily Conversion Rate will mean the Base Conversion Rate, or
(b) if the Volume Weighted Average Price of the Common Stock on such
Trading Day is greater than the Base Conversion Price, 

 

5

 

then the Daily Conversion Rate will be determined
in accordance with the following formula:

 

 

where

 

BCR = the Base Conversion Rate;

 

VWAP = the Volume Weighted Average Price per
share of the Common Stock on such Trading Day;

 

BCP = the Base Conversion Price; and

 

ISF = the Incremental Share Factor.

 

Notwithstanding the foregoing, in no event
will the Daily Conversion Rate exceed the Maximum Conversion Rate.

 

“Daily Share Amount”
means, for each Trading Day of the applicable Conversion Reference Period, a
number of shares of Common Stock (but in no event less than zero) equal to
one-fortieth (1/40th) of the applicable Daily Conversion Rate.

 

“DTC” means The
Depository Trust Company, its nominees and their respective successors and
assigns, or such other depository institution hereinafter appointed by the
Company pursuant to the terms of this First Supplemental Indenture.

 

“Escrow Account”
means the escrow account provided for under the Pledge and Escrow Agreement.

 

“Escrow Agent”
means U.S. Bank, National Association, in its capacity as escrow agent under
the Pledge and Escrow Agreement, and any permitted successors thereto.

 

“Ex-Dividend Date”
means the first date upon which a sale of the Common Stock does not
automatically transfer the right to receive the relevant distribution from the
seller of the Common Stock to its buyer.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

“Fair Market Value”
means the amount that a willing buyer would pay a willing seller in an arm’s
length transaction.

 

6

 

 

A “Fundamental Change”
means the occurrence of a Change of Control or a Termination of Trading.

 

“Government Securities”
has the meaning specified in the Pledge and Escrow Agreement.

 

“Incremental Share Factor”
means 74.7818 shares of Common Stock per $1,000 principal amount of Securities,
subject to the same proportional adjustment as the Base Conversion Rate in
accordance with Section 9.04 and Section 9.05.

 

“Indenture”
means the Original Indenture, as amended and supplemented by this First
Supplemental Indenture and, if further amended or supplemented as herein
provided, as so amended or supplemented.

 

“Interest Payment Date”
means April 1 and October 1 of each calendar year, beginning with,
and including, October 1, 2008.

 

“Issue Date”
means April 15, 2008.

 

“Market Disruption Event”
means the occurrence or existence for more than one half hour period in the
aggregate on any Scheduled Trading Day for the Common Stock of any suspension
or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by NASDAQ or otherwise) in the Common Stock or in any options,
contracts or futures contracts relating to the Common Stock, and the suspension
or limitation occurs or exists at any time before 1:00 p.m. (New York City
time) on such Scheduled Trading Day.

 

“Maximum Conversion Rate”
means 240.9638 shares of Common Stock for each $1,000 principal amount of
Securities, subject to the same proportional adjustment as the Base Conversion
Rate as set forth in subsections (a) through (e) of Section 9.04.

 

“NASDAQ” means
The NASDAQ Global Select Market.

 

“Officer” means,
with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial
Officer or any Vice President of such Person.

 

“Opening of Business”
means 9:00 a.m. New York City time.

 

“Original Indenture”
means the indenture for Senior Debt Securities dated as of April 15, 2008
by and between the Company and the Trustee.

 

“Pledge and Escrow
Agreement” means the Pledge and Escrow Agreement, dated as of
April 15, 2008, between the Company and the Escrow Agent.

 

7

 

“Prospectus Supplement”
means the final prospectus supplement, dated April 10, 2008, relating to
the offering by the Company of the Securities.

 

“Regular Record Date”
for the payment of interest on the Securities, means the March 15 (whether
or not a Business Day) immediately preceding an Interest Payment Date on
April 1 and September 15 (whether or not a Business Day) immediately
preceding an Interest Payment Date on October 1.

 

“Scheduled Trading Day”
means a day that is scheduled to be a Trading Day.

 

“Securities” has
the meaning ascribed to it in the second introductory paragraph of this First
Supplemental Indenture.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

“Securities Custodian”
means the custodian with respect to the Global Security (as appointed by DTC),
or any successor Person thereto and shall initially be the Trustee.

 

“Special Interest”
has the meaning specified in Section 5.02.

 

“Stated Maturity”
means, with respect to the payment of principal of the Securities,
April 1, 2028.

 

“Termination of Trading”
will be deemed to have occurred if the Common Stock (or other common stock into
which the Securities are then convertible) is not listed on a United States
national securities exchange or approved for quotation and trading on a
national automated dealer quotation system or established automated
over-the-counter trading market in the United States.

 

“Trading Day”
means any day on which (i) there is no Market Disruption Event and
(ii) NASDAQ is open for trading, or, if the Common Stock is not listed on
NASDAQ, any day on which the principal national securities exchange on which
the Common Stock is listed is open for trading, or, if the Common Stock is not
listed on a national securities exchange, any Business Day.  A “Trading Day”
only includes those days that have a scheduled closing time of 4:00 p.m.
(New York City time) or the then standard closing time for regular trading on
the relevant exchange or trading system.

 

“UCC” means the
Uniform Commercial Code as in effect in the State of New York.

 

“Underwriters”
means Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Deutsche Bank Securities Inc.

 

8

 

“Underwriting Agreement”
means the Underwriting Agreement dated as of April 10, 2008 among the Company
and the Underwriters relating to the initial purchase and sale of the
Securities.

 

“Volume Weighted Average
Price” of the Common Stock on any Trading Day means such price per
share as displayed on Bloomberg (or any successor service)
page “GSAT<equity>VAP” (or any equivalent successor page) in respect
of the period from 9:30 a.m. to 4:00 p.m., New York City time, on
such Trading Day; or, if such price is not available, the “Volume
Weighted Average Price” means the market value per share of Common
Stock on that day as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company.

 

“Voting Stock”
of any Person means all classes of the Capital Stock of such Person entitled to
vote generally in the election of the board of directors, managers or trustees
of such Person.

 

Section 1.03.  Other Definitions.

 

	
  Term

  	
   

  	
  Defined in 

  Section

  
	
   

  	
   

  	
   

  	
   

  
	
  “Additional Shares”

  	
   

  	
   

  	
  9.05(a)

  
	
  “Agent Members”

  	
   

  	
   

  	
  2.06(a)

  
	
  “Business Combination”

  	
   

  	
   

  	
  9.10(a)

  
	
  “Cash Percentage”

  	
   

  	
   

  	
  9.03(b)

  
	
  “Company Notice”

  	
   

  	
   

  	
  8.03

  
	
  “Company Notice Date”

  	
   

  	
   

  	
  8.03

  
	
  “Conversion Date”

  	
   

  	
   

  	
  9.02(a)

  
	
  “Conversion Obligation”

  	
   

  	
   

  	
  9.03(a)

  
	
  “Conversion Shares”

  	
   

  	
   

  	
  9.03(a)

  
	
  “Early Conversion Make Whole Amount”

  	
   

  	
   

  	
  9.06

  
	
  “Effective Date”

  	
   

  	
   

  	
  9.05(a)

  
	
  “Fundamental Change Purchase Date”

  	
   

  	
   

  	
  8.01(a)

  
	
  “Fundamental Change Purchase Notice”

  	
   

  	
   

  	
  8.01(c)

  
	
  “Fundamental Change Purchase Price”

  	
   

  	
   

  	
  8.01(a)

  
	
  “Global Security Legend”

  	
   

  	
   

  	
  2.03

  
	
  “Make Whole Fundamental Change”

  	
   

  	
   

  	
  9.05(a)

  
	
  “Make Whole Fundamental Change Notice”

  	
   

  	
   

  	
  9.05(a)

  
	
  “Make Whole Premium”

  	
   

  	
   

  	
  9.05(a)

  
	
  “Paying Agent”

  	
   

  	
   

  	
  2.04

  
	
  “Purchase Date”

  	
   

  	
   

  	
  8.02(a)

  
	
  “Purchase Notice”

  	
   

  	
   

  	
  8.02(a)

  
	
  “Purchase Price”

  	
   

  	
   

  	
  8.02(a)

  
	
  “Redemption Price”

  	
   

  	
   

  	
  4.01(b)

  
	
  “Registrar”

  	
   

  	
   

  	
  2.04

  

 

9

 

	
  Term

  	
   

  	
   

  	
  Defined in 

  Section

  
	
  “Settlement Date”

  	
   

  	
   

  	
  9.03(c)

  
	
  “Spin-Off”

  	
   

  	
   

  	
  9.04(c)

  
	
  “Stock Price”

  	
   

  	
   

  	
  9.05(b)

  
	
  “Valuation Period”

  	
   

  	
   

  	
  9.04(c)

  

 

Section 1.04.  Rules of Construction.  In addition to the rules of
construction set forth in Section 1.1 of the Original Indenture, unless
the context otherwise requires:

 

(a)        “or” is not exclusive;
and

 

(b)        the principal amount of
any non-interest bearing or other discount security at any date shall be the
principal amount thereof that would be shown on a balance sheet of the issuer
dated such date prepared in accordance with GAAP.

 

ARTICLE 2

THE SECURITIES

 

Section 2.01.  Title; Amount and Issue of Securities;
Principal and Interest.  (a) The
Securities shall be known and designated as the “5.75% Convertible Senior Notes
due 2028” of the Company.  The aggregate
principal amount of Securities which may be authenticated and delivered under
this First Supplemental Indenture is initially limited to $135,000,000 (or
$150,000,000 if the Underwriters exercise their overallotment option, as
described in Section 2(b) of the Underwriting Agreement, in full),
except for Securities authenticated and delivered upon registration of,
transfer of, or in exchange for, or in lieu of other Securities pursuant to
Section 2.03, 2.05, 2.06, 8.03, 9.01 hereof, or Sections 3.4, 3.5, 3.6,
6.14 or 11.7 of the Original Indenture.

 

(b)        Subject to
Section 5.2 of the Original Indenture, the Securities shall mature on
April 1, 2028 unless earlier converted, redeemed or purchased in
accordance with the provisions hereof.

 

(c)        Interest on the
Securities shall accrue from and including the date specified on the face of
such Securities until the principal thereof is paid or made available for
payment.  Interest shall be payable
semiannually in arrears on April 1 and October 1 in each year, commencing
October 1, 2008.  For purposes of
this First Supplemental Indenture and the Securities, unless the context
clearly requires otherwise, references to “interest” shall include Special
Interest.

 

(d)        A Holder of any
Security at the Close of Business on a Regular Record Date shall be entitled to
receive interest on such Security on the 

 

10

 

corresponding
Interest Payment Date, notwithstanding the conversion of such Securities at any
time after the Close of Business on such Regular Record Date.  Securities surrendered for conversion during
the period from the Close of Business, on any Regular Record Date to
9:00 a.m., New York City time, on the corresponding Interest Payment Date
must be accompanied by payment of an amount equal to the interest payable on
such Securities.  Notwithstanding the
foregoing, no such payment of interest need be made by any converting Holder
(i) if the relevant Conversion Date is prior to April 1, 2011,
(ii) if the Company has specified a Redemption Date that is after a
Regular Record Date and on or prior to the corresponding Interest Payment Date,
(iii) in connection with a conversion following the Regular Record Date
preceding the Stated Maturity for the payment of principal of the Securities,
(iv) if the Company has specified a Fundamental Change Purchase Date that
is after a Regular Record Date and on or prior to the corresponding Interest
Payment Date, or (iv) to the extent of any overdue interest existing at
the time of conversion of the Security. 
Except as described above, no interest on converted Securities will be
payable by the Company on any Interest Payment Date subsequent to the date of
conversion, and delivery of shares of Common Stock, cash or the combination of
cash and shares of Common Stock as the case may be, pursuant to Article 9
hereunder, together with any cash payment for any fractional share, upon
conversion will be deemed to satisfy in full the Company’s obligation to pay
the principal amount of the Securities and accrued and unpaid interest to, but
excluding, the related Conversion Date.

 

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

 

(f)         Principal of
Definitive Securities shall be payable at the office of the Paying Agent, which
initially will be an office or agency of the Trustee, or an office or agency
maintained for such purpose, in the Borough of Manhattan, The City of New
York.  Interest on Definitive Securities
will be payable (i) to Holders having an aggregate principal amount of
$5.0 million or less, by check mailed to the Holders of these Securities and
(ii) to Holders having an aggregate principal amount of more than $5.0
million, either by check mailed to each Holder or, upon application by a Holder
to the Registrar not later than the relevant Regular Record Date, by wire
transfer in immediately available funds to such Holder’s account within the
United States, which application shall remain in effect until the Holder
notifies, in writing, the Registrar to the contrary.

 

Section 2.02.  Form of Securities. (a) Except
as otherwise provided pursuant to this Section 2.02, the Securities are
issuable in fully registered form without coupons in substantially the form of
Exhibit A hereto, with such applicable legends as are provided for in
Section 2.03.  The Securities are
not issuable in bearer form.  The terms
and provisions contained in the form of Security shall constitute, and are
hereby expressly made, a part of this First Supplemental Indenture and to the
extent applicable, the Company and the 

 

11

 

Trustee, by
their execution and delivery of this First Supplemental Indenture, expressly
agree to such terms and provisions and to be bound thereby.

 

(b)        The Securities shall be
issued initially in the form of one or more permanent Global Securities, with
the applicable legends as provided in Section 2.03.  Each Global Security shall be duly executed
by the Company and authenticated and delivered by the Trustee, and shall be
registered in the name of DTC or its nominee and retained by the Trustee, as
Securities Custodian, at its corporate trust office, for credit to the accounts
of the Agent Members holding the Securities evidenced thereby.  The aggregate principal amount of the Global
Securities may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as Securities Custodian, and of DTC or its
nominee, as hereinafter provided.

 

Section 2.03.  Legends. 
(a) Global Security Legend. 
Notwithstanding anything to the contrary provided in Article Two
the Original Indenture each Global Security shall bear the following
legend (the “Global Security Legend”) on the
face thereof:

 

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
NEW YORK, NEW YORK, 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 DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO IN THE TERMS OF SECURITIES
ATTACHED HERETO.”

 

(b)        Legend for
Definitive Securities.  Notwithstanding anything to the contrary
provided in Article Two the Original Indenture each Definitive
Security shall bear a legend substantially in the following form:

 

12

 

“THIS SECURITY WILL NOT BE ACCEPTED IN
EXCHANGE FOR A BENEFICIAL INTEREST IN A GLOBAL SECURITY UNLESS THE HOLDER OF
THIS SECURITY, SUBSEQUENT TO SUCH EXCHANGE, WILL HOLD NO SECURITIES.”

 

Section 2.04.  Registrar and Paying Agent.  The Company shall maintain an
office or agency where Securities may be presented for registration of transfer
or for exchange (the “Registrar”),
which Registrar shall constitute a Security Register (as such term is defined
in the Original Indenture) and an office or agency where Securities may be presented
for payment (the “Paying Agent”).  The Company may have one or more
co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent and the term “Registrar” includes any co-registrar.

 

The Company shall enter into an appropriate
agency agreement with any Registrar or Paying Agent not a party to this First
Supplemental Indenture, which shall incorporate the terms of the Trust
Indenture Act.  The agreement shall
implement the provisions of this First Supplemental Indenture that relate to
such agent.  The Company shall notify the
Trustee of the name and address of each such agent.  If the Company fails to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 6.7 of the Original
Indenture.  The Company or any of its
domestically organized, wholly owned Subsidiaries may act as Paying Agent,
Registrar or transfer agent.

 

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

 

Section 2.05.  General Provisions Relating to Transfer and
Exchange.  A Holder may
transfer a Security only by written application to the Registrar stating the
name of the proposed transferee and otherwise complying with the terms of the
Indenture.  No such transfer shall be
effected until, and such transferee shall succeed to the rights of a Holder
only upon, final acceptance and registration of the transfer by the Registrar
in the Securities Register.

 

In addition to the matters described in the 7th
paragraph of Section 3.5 of the Original Indenture, neither the Company
nor the Registrar shall be required to 

 

13

 

exchange or register a transfer of any
Securities surrendered for conversion or, if a portion of any Security is
surrendered for conversion, the portion thereof surrendered for conversion.

 

Section 2.06.  Book-Entry Provisions for the Global
Securities.  (a) The
Global Securities initially shall:

 

(i)                    be
registered in the name of DTC (or a nominee thereof);

 

(ii)                   be delivered
to the Trustee as Securities Custodian; and

 

(iii)                  bear the
Global Security Legend set forth in Section 2.03(a).

 

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

 

(b)        The Holder of a Global
Security may grant proxies and otherwise authorize any Person, including Agent Members
and Persons that may hold interests through Agent Members, to take any action
which a Holder is entitled to take under this First Supplemental Indenture or
the Securities.

 

ARTICLE 3

COVENANTS

 

Section 3.01.  Payment of Securities.  The Company shall promptly pay the
principal of and interest on the Securities on the dates and in the manner
provided in the Securities and in this First Supplemental Indenture.  Principal and interest shall be considered
paid on the date due if by 11:00 a.m., New York City time, on such date
the Trustee or the Paying Agent holds in accordance with this First
Supplemental Indenture immediately available funds sufficient to pay all
principal and interest then due.

 

The Company shall pay interest on overdue
principal at the rate specified therefor in the Securities, and it shall pay
interest on overdue installments of interest at the same rate to the extent
lawful.

 

14

 

Section 3.02.  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
purpose of this First Supplemental Indenture.

 

Section 3.03.  Statement by Officer as to Default.  The Company shall deliver to the
Trustee, within 30 days after the Company becomes aware of the occurrence of
any Event of Default or Default, an Officer’s Certificate setting forth the
details of such events which would constitute an Event of Default or Default,
its status and the action which the Company proposes to take with respect
thereto.

 

Section 3.04.  Special Interest.  If Special Interest is payable by
the Company pursuant to Section 5.02 the Company shall deliver to the Trustee
an Officer’s Certificate to that effect stating (i) the amount of such
Special Interest that is payable and (ii) the date on which such Special
Interest is payable.  Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may
assume without inquiry that no Special Interest is payable.  If the Company has paid Special Interest
directly to the persons entitled to it, the Company shall deliver to the
Trustee an Officer’s Certificate setting forth the particulars of such payment.

 

Section 3.05.  Pledge and Escrow Agreement Deposit.  On the Issue Date, the Company
shall deposit $22,985,625.00 (and proportionately up to $25,539,583.33 if the
Underwriters exercise their option solely to cover overallotments, if any, set
forth in Section 2(b) of the Underwriting Agreement) of the net
proceeds from the initial sale of the Securities in the Escrow Account with the
Escrow Agent.

 

Section 3.06.  Reports by Company.  (a) In addition to and
notwithstanding the Company’s reporting obligations set forth in
Section 7.4 of the Original Indenture, the Company shall deliver to the
Trustee electronically (or otherwise in conformity with Section 1.6 of the
Original Indenture), within 15 days after it is required to file the same with
the SEC, copies of all annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the SEC
may by rules and regulations prescribe) that the Company is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange
Act. In the event the Company at any time is no longer subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, the Company
shall file with the Trustee all reports, if any, as may be required by the provisions
of Section 314(a) of the Trust Indenture Act.

 

(b)        Delivery of such
reports and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the compliance by the Company with 

 

15

 

any of its
covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officer’s Certificates).

 

ARTICLE 4

REDEMPTION OF SECURITIES

 

Section 4.01.  Optional Redemption.

 

(a)        Prior to April 1,
2013, the Securities shall not be redeemable at the Company’s option.

 

(b)        On and after
April 1, 2013, subject to the terms and conditions of this Article 4
and Article Eleven of the Original Indenture, the Company may, at its
option, redeem for cash at any time as a whole, or from time to time in part,
the Securities, at a price (the “Redemption Price”)
equal to 100% of the principal amount of Securities to be redeemed, plus
accrued and unpaid interest to, but excluding, the Redemption Date; provided that if the Redemption Date falls after a Regular
Record Date and on or prior to the corresponding Interest Payment Date, the
Redemption Price shall be 100% of the principal amount of the Securities
redeemed but shall not include accrued and unpaid interest, if any. Instead,
the Company shall pay such accrued and unpaid interest, if any, on the Interest
Payment Date to the Holder of record at the Close of Business on the
corresponding Regular Record Date. If the Company elects to redeem Securities
pursuant to this Section 4.01, it shall notify the Trustee in writing of
such election together with the Redemption Date, the Base Conversion Rate, the
principal amount of Securities to be redeemed and the Redemption Price.

 

(c)        Notwithstanding the
foregoing the Company must make at least 10 semi-annual interest payments
(including the interest payments on October 1, 2008 and April 1,
2013) in the full amount required by the Indenture before redeeming any
Securities at its option.

 

(d)        The Company shall not
redeem any of the Securities on any date if the principal amount of the
Securities has been accelerated, and the acceleration has not been rescinded on
or prior to such date.

 

(e)        The Securities are not
subject to redemption through the operation of any sinking fund.

 

Section 4.02.  Selection by Trustee of Securities to Be
Redeemed. If any Securities selected for partial redemption are
thereafter surrendered for conversion in part before termination of the
conversion right with respect to the portion of the Securities so selected, the
converted portion of such Securities shall be deemed (so far as may be), solely
for purposes of determining the aggregate principal amount of Securities to be
redeemed by the Company, to be the portion 

 

16

 

selected for
redemption. Securities which have been converted during a selection of
Securities to be redeemed may be treated by the Trustee as outstanding for the
purpose of such selection. Nothing in this Section 4.02 or
Section 11.3 of the Original Indenture shall affect the right of any
Holder to convert any Securities pursuant to Article 9 before the
termination of the conversion right with respect thereto.

 

Section 4.03.  Notice of Redemption.  The Company shall notify each
Holder of Securities to be redeemed in the manner provided in Section 11.4
of the Original Indenture.  In addition
to those matters set forth in Section 11.4 of the Original Indenture, a
notice of redemption sent to the Holder shall state:

 

(a)        the then current Base
Conversion Rate and provide a statement that the Securities called for
redemption may be converted at any time before the Close of Business on the
Business Day immediately prior to the Redemption Date, and that Holders who
wish to convert Securities must comply with the relevant procedures;

 

(b)        in case any Security is
to be redeemed in part only, the notice which relates to such Security shall state
that on and after the Redemption Date, upon surrender of such Security, the
Holder will receive, without charge, a new Security or Securities of authorized
denominations for the principal amount thereof remaining unredeemed;

 

(c)        that Securities called
for redemption and not converted shall be redeemed on the Redemption Date;

 

(d)        the Cash Percentage, if
any, of the Daily Share Amount, with respect to any Security to be redeemed
that is converted at any time before the Close of Business on the Business Day
immediately prior to the Redemption Date;

 

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

 

(f)         that Securities called
for redemption must be surrendered to the Paying Agent to collect the
Redemption Price; and

 

(g)        the CUSIP or ISIN
number of the Securities.

 

17

 

 

 

ARTICLE 5

DEFAULTS AND REMEDIES

 

Section 5.01.  Additional Events of Default.  In addition to those Events of
Default set forth in Section 5.1 of the Original Indenture, the following
events shall also be Events of Default
with respect to the Securities:

 

(a)                    failure
by the Company to pay interest on the Securities within five Business Days of
an Interest Payment Date through, and including, April 1, 2011;

 

(b)                   failure
by the Company to comply with its obligation to convert the Securities into
shares of Common Stock and/or cash in accordance with Article 9, upon
exercise of a Holder’s conversion right and, if applicable, failure by the
Company to deliver any Early Conversion Make Whole Amount pursuant to
Section 9.06;

 

(c)                    failure
by the Company to provide to the Holders (i) a Company Notice upon the
occurrence of a Fundamental Change pursuant to Section 8.01 or (ii) a
Make Whole Fundamental Change Notice pursuant to Section 9.05(a), as
applicable, in each case within the time required to provide such notice;

 

(d)                   default
by the Company or any Subsidiary in the payment of principal or interest on any
mortgage, agreement or other instrument under which there may be outstanding,
or by which there may be secured or evidenced, any indebtedness of the Company
or indebtedness of any Subsidiary for money borrowed in excess of $10.0 million
in the aggregate, whether the indebtedness exists or shall hereafter be
created, resulting in the indebtedness becoming or being declared due and
payable, and the acceleration shall not have been rescinded or annulled within
30 days after written notice of the acceleration has been received by the
Company or the Subsidiary from the Trustee (or has been received by the Company
or the Subsidiary, as the case may be, and the Trustee from Holders of at least
25% in principal amount of Outstanding Securities);

 

(e)                    failure
by the Company or any Subsidiary to pay final and non-appealable judgments, the
aggregate uninsured portion of which is at least $10.0 million, if the
judgments are not paid, discharged or fully bonded against within 60 days; and

 

(f)                      the
Pledge and Escrow Agreement ceases to be in full force and effect or
enforceable prior to its expiration in accordance with its terms.

 

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

 

18

 

Prior to the declaration of the acceleration
of the Securities, the Holders of a majority in the aggregate principal amount
of the Outstanding Securities may waive, on behalf of all of the Holders of the
Securities, any Event of Default set forth in this Section 5.01 and its
consequences except an Event of Default under clauses (a) and (b) of
this Section 5.01.

 

The Company will deliver to the Trustee,
within 30 days after becoming aware of the occurrence of an Event of Default,
written notice thereof.

 

Section 5.02.  Sole Remedy for Failure to Report.  Notwithstanding any other
provision of the Indenture, to the extent elected by the Company, the sole
remedy for an Event of Default relating to the failure to comply with the
reporting obligations under Section 3.06(a) and for any failure to
comply with the requirements of Section 314(a)(1) of the Trust
Indenture Act, will for the first 60 days after the occurrence of the Event of
Default consist exclusively of the right to receive special interest on the
Securities at a rate equal to 0.50% per annum of the principal amount of the
Securities (the “Special Interest”).  The Special Interest shall be paid
semi-annually in arrears, with the first semi-annual payment due on the first
regular Interest Payment Date following the date on which the Special Interest
began to accrue on any Securities. The Special Interest shall accrue on all
Outstanding Securities from and including the date on which an Event of Default
relating to a failure to comply with the provisions of
Section 3.06(a) or a failure to comply with
Section 314(a)(1) of the Trust Indenture Act shall first occur to,
but not including, the 60th day thereafter (or any earlier date on which the
Event of Default shall have been cured or waived). On such 60th day (or
earlier, if the Event of Default relating to the failure to comply with
Section 3.06(a) and failure to comply with
Section 314(a)(1) of the Trust Indenture Act is cured or waived prior
to such 60th day), the Special Interest shall cease to accrue and, if the Event
of Default relating to the failure to comply with Section 3.06(a) and
failure to comply with Section 314(a)(1) of the Trust Indenture Act
shall not have been cured or waived prior to the 60th day, the Securities shall
be subject to acceleration as provided in Section 5.2 of the Original
Indenture. The provisions of this paragraph shall not affect the rights of
Holders in the event of the occurrence of any other Event of Default. If the
Company shall not elect to pay Special Interest upon an Event of Default
resulting from the failure of the Company to comply with the provisions of
Section 3.06(a) and for any failure by it to comply with
Section 314(a)(1) of the Trust Indenture Act, the Securities shall be
subject to acceleration as provided in Section 5.2 of the Original
Indenture.

 

If the Company shall elect to pay Special
Interest in connection with an Event of Default relating to its failure to
comply with the requirements of Section 3.06(a) and for any failure
by it to comply with Section 314(a)(1) of the Trust Indenture Act,
(1) the Company shall notify all Holders and the Trustee and Paying Agent
of the election on or before the Close of Business on the date on which the
Event of Default shall first occur, and (2) all references herein to 

 

19

 

interest accrued or payable as of any date
shall include any Special Interest accrued or payable as of such date as
provided in this Section 5.02.

 

ARTICLE 6

DISCHARGE OF INDENTURE

 

Section 6.01.  Discharge of Liability on Securities.  Article 4 of the Original
Indenture shall not apply to the Securities. 
When (1) the Company shall deliver to the Registrar for
cancellation all Securities theretofore authenticated (other than any
Securities which have been mutilated, destroyed, lost or wrongfully taken and
in lieu of or in substitution for which other Securities shall have been
authenticated and delivered) and not theretofore canceled, or (2) all the
Securities not theretofore canceled or delivered to the Registrar for
cancellation shall have (a) been deposited for conversion (after all
related Conversion Reference Periods have elapsed) and the Company shall
deliver to the Holders shares of Common Stock or a combination of cash and
shares of Common Stock, as applicable, sufficient to pay all amounts owing in
respect of all Securities (other than any Securities which shall have been
mutilated, destroyed, lost or wrongfully taken and in lieu of or in
substitution for which other Securities shall have been authenticated and
delivered) not theretofore canceled or delivered to the Registrar for
cancellation or (b) become due and payable on the Stated Maturity for the
payment of principal of the Securities, Purchase Date, Fundamental Change
Purchase Date or Redemption Date, as applicable, and the Company shall deposit
with the Trustee cash and shares of Common Stock, if any, as applicable,
sufficient to pay all amounts owing in respect of all Securities (other than
any Securities which shall have been mutilated, destroyed, lost or wrongfully
taken and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) not theretofore canceled or delivered to the
Registrar for cancellation, including the principal amount and interest accrued
and unpaid to such Stated Maturity for the payment of principal of the
Securities, Purchase Date, Fundamental Change Purchase Date or Redemption Date,
as the case may be, and if in either case (1) or (2) the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company, then this First Supplemental Indenture with respect to the Securities
shall cease to be of further effect (except as to (i) remaining rights of
registration of transfer, substitution and exchange and conversion of
Securities; (ii) rights hereunder of Holders to receive from the Trustee
payments of the amounts then due, including interest with respect to the
Securities and the other rights, duties and obligations of Holders, as
beneficiaries hereof solely with respect to the amounts, if any, so deposited
with the Trustee; and (iii) the rights, obligations and immunities of the
Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar
under this First Supplemental Indenture with respect to the Securities), and
the Trustee, on demand of the Company accompanied by an Officer’s Certificate
and an Opinion of Counsel as required by Section 6.03 and at the cost and
expense of the 

 

20

 

Company, shall
execute proper instruments acknowledging satisfaction of and discharging this
First Supplemental Indenture with respect to the Securities; however, the
Company hereby agrees to reimburse the Trustee, Authenticating Agent, Paying
Agent, Conversion Agent and Registrar for any costs or expenses thereafter
reasonably and properly incurred by the Trustee, Authenticating Agent, Paying
Agent, Conversion Agent and Registrar and to compensate the Trustee,
Authenticating Agent, Paying Agent, Conversion Agent and Registrar for any
services thereafter reasonably and properly rendered by the Trustee,
Authenticating Agent, Paying Agent, Conversion Agent and Registrar in
connection with this First Supplemental Indenture with respect to the
Securities.

 

Section 6.02.  Reinstatement.  If the Trustee or the Paying Agent
is unable to apply any money to the Holders entitled thereto by reason of any
order or judgment of any court of governmental authority enjoining, restraining
or otherwise prohibiting such application, the Company’s obligations under the
Indenture with respect to the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 6.01 until such time as
the Trustee or the Paying Agent is permitted to apply all such money in
accordance with the Indenture and the Securities to the Holders entitled
thereto; provided, however, that
if the Company make any payment of principal amount of or interest on any
Security following 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 held by the Trustee or Paying Agent.

 

Section 6.03.  Officer’s Certificate; Opinion of
Counsel.  Upon any application
or demand by the Company to the Trustee to take any action under
Section 6.01, the Company shall furnish to the Trustee an Officer’s
Certificate or Opinion of Counsel stating that all conditions precedent, if
any, provided for in this First Supplemental Indenture relating to the proposed
action have been complied with.

 

ARTICLE 7

AMENDMENTS

 

Section 7.01.  With Consent of Holders.  In addition to the matters
described in Section 9.2 of the Original Indenture, the Company and the
Trustee may not, without the consent of each Holder of Outstanding Securities
affected, amend or waive any portion of the Indenture or the Securities for one
or more of the following purposes:

 

(a)                                  to reduce the
Redemption Price, Purchase Price or Fundamental Change Purchase Price payable
with respect to any of the Securities;

 

(b)                                 to change the
Company’s obligation to redeem any Security on a Redemption Date in a manner
adverse to the Holder;

 

21

 

(c)                                  to change the Company’s
obligation to purchase any Security at the option of a Holder pursuant to
Section 8.02 in a manner adverse to the Holder;

 

(d)                                 to change the
Company’s obligation to purchase any Security upon a Fundamental Change
pursuant to Section 8.01 in a manner adverse to the Holder;

 

(e)                                  to reduce the Early
Conversion Make Whole Amount or otherwise modify the provisions of
Section 9.06 in a manner adverse to the Holder; and

 

(f)                                    to impair the right
of a Holder to convert any Security or reduce the amount of cash or the number
of shares of Common Stock (or any other property) receivable upon conversion.

 

Section 7.02.  Without Consent of Holders.  In addition to the matters
described in Section 9.1 of the Original Indenture, the Company and the
Trustee may amend or supplement the Indenture or the Securities without notice
to or consent of any Holder of an Outstanding Security for one or more of the
following purposes:

 

(a)                                  to cure any
ambiguity, omission, defect or inconsistency in the Indenture, to correct or supplement
any provision in the Indenture, or to make any other provisions with respect to
matters or questions arising under the Indenture, so long as the interests of
Holders of Securities are not adversely affected in any respect under the
Indenture; provided that such amendment made solely
to conform the provisions of the Indenture to the corresponding description of
the Securities contained in the Prospectus Supplement shall not be deemed to
adversely affect the interests of the Holders of Securities; and

 

(b)                                 to provide for
conversion rights of Holders if any reclassification or change of Common Stock
or any consolidation, merger or sale of all or substantially all of the
Company’s property and assets occurs or otherwise comply with the provisions of
the Indenture in the event of a merger, consolidation or transfer, sale,
conveyance, lease or other disposition of all or substantially all of the
Company’s property and assets (including the provisions of Section 9.10
hereof and Article 8 of the Original Indenture).

 

ARTICLE 8

PURCHASE AT THE OPTION OF HOLDERS UPON A FUNDAMENTAL

CHANGE; PURCHASE AT THE OPTION OF HOLDERS

 

Section 8.01.  Purchase at the Option of the Holder Upon a
Fundamental Change.  (a) If
a Fundamental Change occurs, each Holder shall have the right, at such Holder’s
option, to require the Company to purchase any or all of such Holder’s
Securities on a date specified by the Company that is no later than 35 days,
and no earlier than 20 days, after the date of the Company Notice of the 

 

22

 

occurrence of
such Fundamental Change (the “Fundamental Change
Purchase Date”). The Company shall purchase such Securities at a
price (the “Fundamental Change Purchase Price”),
which shall be paid in cash, equal to 100% of the principal amount of the
Securities to be purchased plus any accrued and unpaid interest to, but
excluding, the Fundamental Change Purchase Date, unless the Fundamental Change
Purchase Date is between a Regular Record Date and the Interest Payment Date to
which it relates, in which case the Fundamental Change Purchase Price shall
equal 100% of the principal amount of Securities to be purchased, and accrued
and unpaid interest shall be paid to the Holder of record on the Regular Record
Date.

 

(b)                                 The Company shall mail
to all Holders a Company Notice upon the occurrence of a Fundamental Change and
of the purchase right arising as a result thereof, including the information
required by Section 8.03 hereof, on or before the 10th Business Day after
the occurrence of such Fundamental Change.

 

(c)                                  For a Security to be
so purchased at the option of the Holder pursuant to this Section 8.01,
such Holder must (i) deliver to the Paying Agent a written notice of
purchase (a “Fundamental Change Purchase Notice”)
in the form entitled “Form of Fundamental Change Purchase Notice” attached
to the Security duly completed, on or before the Close of Business on the
Business Day immediately preceding the Fundamental Change Purchase Date,
stating:

 

(A)                if the Securities
are in the form of Definitive Securities, the certificate numbers of the
Securities which the Holder shall deliver to be purchased;

 

(B)                  the portion of
the principal amount of the Securities that the Holder shall deliver to be
purchased, which portion must be $1,000 in principal amount or an integral
multiple thereof; and

 

(C)                  that such
Securities shall be purchased as of the Fundamental Change Purchase Date
pursuant to the terms and conditions specified in Section 8.01 of this
First Supplemental Indenture, and

 

(ii)                                  deliver or book-entry
transfer such Securities to the Paying Agent (together with all necessary
endorsements) at the offices of the Paying Agent after delivery of the Purchase
Notice, such delivery or transfer being a condition to receipt by the Holder of
the Fundamental Change Purchase Price therefor; provided, however, that such Fundamental Change Purchase
Price shall be so paid pursuant to this Section 8.01 only if the
Securities so delivered or transferred to the Paying Agent shall conform in all
respects to the description thereof in the related Fundamental Change Purchase
Notice.

 

23

 

If the Securities are in the form of Global
Securities, the Fundamental Change Purchase Notice must comply with the
appropriate Depositary procedures.

 

The Paying Agent shall promptly return to the
respective Holders thereof any Securities (x) with respect to which a
Fundamental Change Purchase Notice has been withdrawn in compliance with this
First Supplemental Indenture, or (y) held by it during the continuance of
an acceleration of the principal amount of the Securities (other than an
acceleration in connection with an Event of Default resulting from a failure by
the Company to pay the Fundamental Change Purchase Price with respect to such
Securities) in which case, upon such return, the Fundamental Change Purchase
Notice with respect thereto shall be deemed to have been withdrawn.

 

(d)                                 The Company shall
purchase from a Holder, pursuant to this Section 8.01, Securities if the
principal amount of such Securities is $1,000 or an integral multiple of $1,000
if so requested by such Holder.

 

Notwithstanding anything herein to the
contrary, any Holder delivering to the Paying Agent the Fundamental Change
Purchase Notice contemplated by this Section 8.01 shall have the right at
any time prior to the Close of Business on the Business Day immediately prior
to the Fundamental Change Purchase Date to withdraw such Fundamental Change
Purchase Notice (in whole or in part) by delivery of a written notice of
withdrawal to the Paying Agent in accordance with Section 8.03(b).

 

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

 

At or before 11:00 a.m. (New York City
time) on the Fundamental Change Purchase Date, the Company shall deposit with
the Paying Agent (or if the Company or an affiliate of the Company is acting as
the Paying Agent, shall segregate and hold in trust as provided in
Section 10.3 of the Original Indenture) cash sufficient to pay the
aggregate Fundamental Change Purchase Price of the Securities to be purchased
pursuant to this Section 8.01. 
Payment by the Paying Agent of the Fundamental Change Purchase Price for
such Securities shall be made promptly following the later of the Fundamental
Change Purchase Date or the time of book-entry transfer or delivery of such
Securities, together with necessary endorsements.  If the Paying Agent holds, in accordance with
the terms of this First Supplemental Indenture, cash sufficient to pay the
Fundamental Change Purchase Price of such Securities on the Fundamental Change
Purchase Date, then, on and after such date, such Securities shall cease to be
outstanding and interest on such Securities shall cease to accrue, whether or
not book-entry transfer of such Securities is made or such Securities are
delivered to the Paying Agent, and all other rights of the Holder shall
terminate (other than the right to 

 

24

 

receive the Fundamental Change Purchase Price
upon delivery or transfer of the Securities).

 

The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold
in trust for the benefit of Holders or the Trustee all cash held by the Paying
Agent for the payment of the Fundamental Change Purchase Price and shall notify
the Trustee of any Default by the Company in making any such payment.  If the Company or an affiliate of the Company
acts as Paying Agent, it shall segregate the cash held by it as Paying Agent
and hold it as a separate trust fund. 
The Company at any time may require a Paying Agent to deliver all cash
held by it to the Trustee and to account for any funds disbursed by the Paying
Agent. Upon doing so, the Paying Agent shall have no further liability for the
cash delivered to the Trustee.

 

Notwithstanding anything to the contrary no
Securities may be purchased by the Company pursuant to this Section 8.01
if the principal amount of the Securities has been accelerated (except in the
case of an acceleration in connection with an Event of Default resulting from a
failure by the Company to pay the Fundamental Change Purchase Price with
respect to such Securities), and the acceleration has not been rescinded, on or
prior to the relevant Fundamental Change Purchase Date.

 

Section 8.02.  Purchase of Securities at the Option of the
Holder.  (a) A Holder
shall have the right to require the Company to purchase all or any portion of
its Securities on each of April 1, 2013, April 1, 2018 and
April 1, 2023 (each, a “Purchase Date”),
at a price (the “Purchase Price”) which shall be
paid in cash, equal to 100% of the principal amount of the Securities to be
purchased plus any accrued and unpaid interest, if any, to, but excluding, the
Purchase Date, unless the Purchase Date is between a Regular Record Date and
the Interest Payment Date to which it relates, in which case the Purchase Price
shall equal 100% of the principal amount of Securities to be purchased, and
accrued and unpaid interest, if any, shall be paid to the Holder of record on
the Regular Record Date, upon:

 

(i)             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 relevant Purchase Date until
the Close of Business on the Business Day immediately preceding such Purchase
Date, stating:

 

(A)                         if the
Securities are in the form of Definitive Securities, the certificate numbers of
the Securities which the Holder will deliver to be purchased;

 

(B)                           the
portion of the principal amount of the Securities which the Holder will deliver
to be purchased, which 

 

25

 

portion must
be $1,000 in principal amount or an integral multiple thereof;

 

(C)                           that
such Securities shall be purchased by the Company as of the Purchase Date
pursuant to the terms and conditions specified in Section 8.02 of this
First Supplemental Indenture; and

 

(ii)                                    delivery
or book-entry transfer of such Securities to the Paying Agent (together with
all necessary endorsements) at the offices of the Paying Agent after delivery
of the Purchase Notice, such delivery or transfer being a condition to receipt
by the Holder of the Purchase Price therefor; provided,
however, that such Purchase Price shall be so paid pursuant to this
Section 8.02 only if the Securities so delivered or transferred to the
Paying Agent shall conform in all respects to the description thereof in the
related Purchase Notice.

 

If the Securities are in the form of Global
Securities, the Purchase Notice must comply with the appropriate Depositary
procedures.

 

The Paying Agent shall promptly return to the
respective Holders thereof any Securities (x) with respect to which a
Purchase Notice has been withdrawn in compliance with this First Supplemental
Indenture, or (y) held by it during the continuance of an acceleration of
the principal amount of the Securities (other than an acceleration in
connection with an Event of Default resulting from a failure by the Company to
pay the Fundamental Change 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.

 

(b)                                 The Company shall
purchase from a Holder, pursuant to this Section 8.02, Securities if the
principal amount of such Securities is $1,000 or an integral multiple of $1,000
if so requested by such Holder.

 

(c)                                  Notwithstanding anything
herein to the contrary, any Holder delivering to the Paying Agent the Purchase
Notice contemplated by this Section 8.02 shall have the right at any time
prior to the Close of Business on the Business Day immediately prior to the
Purchase Date to withdraw such Purchase Notice (in whole or in part) by
delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 8.03(b).

 

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

 

(e)                                  At or before
11:00 a.m. (New York City time) on the Purchase Date, the Company shall
deposit with the Paying Agent (or if the Company or an affiliate of the Company
is acting as the Paying Agent, shall segregate and hold in trust as provided in
Section 10.3 of the Original Indenture) cash sufficient to pay 

 

26

 

the aggregate
Purchase Price of the Securities to be purchased pursuant to this
Section 8.02.  Payment by the Paying
Agent of the Purchase Price for such Securities shall be made on the later of
the Purchase Date or the time of book-entry transfer or delivery of such
Securities, together with necessary endorsements.  If the Paying Agent holds, in accordance with
the terms of this First Supplemental Indenture, cash sufficient to pay the
Purchase Price of such Securities on the Business Day following the Purchase
Date, then, on and after such date, such Securities shall cease to be
outstanding and interest on such Securities shall cease to accrue, whether or
not book-entry transfer of such Securities is made or such Securities are
delivered to the Paying Agent, and all other rights of the Holder shall
terminate (other than the right to receive the Purchase Price upon delivery or
transfer of the Securities).

 

(f)                                    The Company shall
require each Paying Agent (other than the Trustee) to agree in writing that the
Paying Agent shall hold in trust for the benefit of Holders or the Trustee all
cash held by the Paying Agent for the payment of the Purchase Price and shall
notify the Trustee of any default by the Company in making any such payment. If
the Company or an affiliate of the Company acts as Paying Agent, it shall
segregate the cash held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent to deliver all cash
held by it to the Trustee and to account for any funds disbursed by the Paying
Agent. Upon doing so, the Paying Agent shall have no further liability for the
cash delivered to the Trustee.

 

(g)                                 Notwithstanding
anything to the contrary the Securities may not be purchased by the Company
pursuant to this Section 8.02 if the principal amount of the Securities
has been accelerated (except in the case of an acceleration in connection with
an Event of Default resulting from a failure by the Company to pay the Purchase
Price with respect to such Securities), and the acceleration has not been
rescinded, on or prior to the relevant Purchase Date.

 

Section 8.03.  Further Conditions and Procedures for Purchase at the Option of the
Holder Upon a Fundamental Change and Purchase of Securities at the Option of
the Holder.  (a) Notice of Purchase Date or Fundamental
Change. The Company shall send notices (each, a “Company
Notice”) to the Holders, beneficial owners of the Securities as
required by applicable law, the Trustee and the Paying Agent, not less than 20
Business Days prior to each Purchase Date, or on or before the 10th Business
Day after the occurrence of the Fundamental Change, as the case may be (each
such date of delivery, a “Company Notice Date”).
Each Company Notice shall include a form of Purchase Notice or Fundamental
Change Purchase Notice, as the case may be, to be completed by a Holder and
shall state:

 

(i)                       the
applicable Purchase Price or Fundamental Change Purchase Price, as the case may
be;

 

27

 

(ii)                    the Base
Conversion Rate at the time of such notice and any expected adjustments to the
Base Conversion Rate;

 

(iii)                 the applicable
Purchase Date or Fundamental Change Purchase Date, as the case may be, and the
last date on which a Holder may exercise its repurchase rights under
Section 8.01 or Section 8.02, as applicable;

 

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

 

(v)                   that Securities
must be surrendered to the Paying Agent to collect payment of the Purchase
Price or the Fundamental Change Purchase Price, as the case may be;

 

(vi)                that Securities as
to which a Purchase Notice or a Fundamental Change Purchase Notice has been
delivered may be surrendered for conversion only if the applicable Purchase
Notice or Fundamental Change Purchase Notice, as the case may be, has been
withdrawn in accordance with the terms of this First Supplemental Indenture;

 

(vii)             that the Purchase
Price or the Fundamental Change Purchase Price for any Securities as to which a
Purchase Notice or a Fundamental Change Purchase Notice, as applicable, has
been given and not withdrawn shall be paid by the Paying Agent (A) in the
case of the Purchase Price, on the later of (1) the Purchase Date and
(2) the time of book-entry transfer or delivery of such Securities and
(B) in the case of the Fundamental Change Purchase Price, promptly
following the later of (1) the Fundamental Change Purchase Date and
(2) the time of book-entry transfer or delivery of such Securities;

 

(viii)          the procedures the
Holder must follow under Section 8.01 or 8.02, as applicable, and
Section 8.03;

 

(ix)                  that, unless the
Company defaults in making payment of such Purchase Price or Fundamental Change
Purchase Price on Securities for which any Purchase Notice or Fundamental
Change Purchase Notice, as applicable, has been submitted, interest will cease
to accrue on and after the Purchase Date or Fundamental Change Purchase Date,
as applicable;

 

(x)                     the CUSIP or
ISIN number of the Securities;

 

(xi)                  the procedures
for withdrawing a Purchase Notice or a Fundamental Change Purchase Notice, as
the case may be; and

 

28

 

(xii)               in the case of a
Company Notice pursuant to Section 8.01, the events causing a Fundamental
Change and the effective date of the Fundamental Change.

 

Simultaneously with providing such Company
Notice, the Company will publish a notice containing the information in such
Company Notice in a newspaper of general circulation in The City of New York or
publish such information on its then existing website or through such other
public medium as it may use at the time.

 

At the Company’s request, made at least five
Business Days prior to the date upon which such notice is to be mailed, and at
the Company’s expense, the Paying Agent shall give the Company Notice in the
Company’s name; provided, however,
that, in all cases, the text of the Company Notice shall be prepared by the
Company.

 

(b)                                  Upon
receipt by the Company of the Purchase Notice or Fundamental Change Purchase
Notice specified in Section 8.02 or Section 8.01(c), as applicable,
the Holder of the Securities in respect of which such Purchase Notice or
Fundamental Change Purchase Notice, as the case may be, was given shall (unless
such Purchase Notice or Fundamental Change Purchase Notice is withdrawn as
specified in the following two paragraphs) thereafter be entitled to receive
solely the Purchase Price or Fundamental Change Purchase Price with respect to
such Securities. Such Purchase Price or Fundamental Change Purchase Price shall
be paid by the Paying Agent to such Holder (x) in the case of the Purchase
Price, on the later of  (1) the
Purchase Date with respect to such Securities (provided
the conditions in this Article 8 have been satisfied) and (2) the
time of delivery or book-entry transfer of such Securities to the Paying Agent
by the Holder thereof in the manner required by Section 8.02 and
(y) in the case of the Fundamental Change Purchase Price, promptly
following the later of (1) the Fundamental Change Purchase Date with
respect to such Securities (provided
the conditions in this Article 8 have been satisfied) and (2) the
time of delivery or book-entry transfer of such Securities to the Paying Agent
by the Holder thereof in the manner required by Section 8.01. Securities
in respect of which a Purchase Notice or Fundamental Change Purchase Notice, as
the case may be, has been given by the Holder thereof may not be converted on
or after the date of the delivery of such Purchase Notice or Fundamental Change
Purchase Notice, as the case may be, unless such Purchase Notice or Fundamental
Change Purchase Notice, as the case may be, has first been validly withdrawn as
specified in the following two paragraphs.

 

A Purchase Notice or Fundamental Change
Purchase Notice, as the case may be, may be withdrawn by means of a written
notice of withdrawal delivered to the office of the Paying Agent at any time
prior to the Close of Business on the Business Day immediately prior to the
Purchase Date or the Fundamental Change Purchase Date, as the case may be, to
which it relates, specifying:

 

29

 

(i)                       the
principal amount of the Securities with respect to which such notice of
withdrawal is being submitted, which must be $1,000 or an integral multiple
thereof;

 

(ii)                    if the
Securities are in the form of Definitive Securities, the certificate numbers of
the Securities in respect of which such notice of withdrawal is being
submitted; and

 

(iii)                 the principal
amount, if any, of any Securities that remain subject to the original Purchase
Notice or Fundamental Change Purchase Notice, as the case may be, and which has
been or shall be delivered for purchase by the Company.

 

If the Securities are in the form of Global
Securities, the Purchase Notice or Fundamental Change Purchase Notice, as the
case may be, must comply with the appropriate Depositary procedures.

 

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

 

(d)                                  In
connection with any offer to purchase Securities under Section 8.02 or
Section 8.01, the Company shall, to the extent applicable, (a) comply
with Rules 13e-4 and 14e-1 (and any successor provisions thereto) under
the Exchange Act, if applicable; (b) file the related Schedule TO (or any
successor schedule, form or report) under the Exchange Act, if applicable; and
(c) otherwise comply with all applicable federal and state securities laws
so as to permit the rights and obligations under Section 8.02 or
Section 8.01 to be exercised in the time and in the manner specified in
Section 8.02 or Section 8.01. 
To the extent any other provision of this First Supplemental Indenture
conflicts with any of the foregoing, the foregoing shall govern.

 

(e)                                   At
least five Business Days before the Company Notice Date, the Company shall
deliver an Officer’s Certificate to the Trustee specifying whether the Company
desires the Trustee to give the Company Notice required by Section 8.03
herein.

 

Section 8.04.  Purchase of Securities in Open Market.  The Company may purchase any or
all of the Securities in the open market or by tender at any price 

 

30

 

or pursuant to private agreements. The Company shall surrender any
Security purchased by the Company pursuant to this Article 8 to the
Trustee for cancellation. Any Securities surrendered to the Trustee for
cancellation may not be reissued or resold by the Company and will be canceled
promptly in accordance with Section 3.9 of the Original Indenture.

 

ARTICLE 9

CONVERSION

 

Section 9.01.  Conversion of Securities.  (a) Subject to the procedures for conversion set forth in
this Article 9, a Holder may convert its Securities, in whole or in part
(provided that the total principal amount of Securities converted is an
integral multiple of $1,000), during the period beginning on, and including,
the date of this First Supplemental Indenture and ending at the Close of
Business on the Business Day immediately preceding the Stated Maturity for the
payment of principal of the Securities into the consideration described in
Section 9.03.

 

(b)                                  Securities
in respect of which a Fundamental Change Purchase Notice or Purchase Notice has
been delivered may not be surrendered for conversion pursuant to this
Article 9 prior to a valid withdrawal of such Fundamental Change Purchase
Notice or Purchase Notice, in accordance with the provisions of Article 8.

 

(c)                                   Provisions
of this First Supplemental Indenture that apply to conversion of all of a
Security also apply to conversion of a portion of a Security.

 

(d)                                  The
Base Conversion Rate shall be adjusted in certain instances as described in
Section 9.04 and Section 9.05.

 

Section 9.02.  Conversion Procedures.  (a) To convert a Security, a
Holder must (i) complete and manually sign the conversion notice on the
back of the Security (which shall be substantially in the form set forth in the
form of Security attached as Exhibit A under the heading “Conversion Notice”) and deliver such notice to the
Conversion Agent, (ii) surrender the Security to the Conversion Agent,
(iii) if required by the Conversion Agent, furnish appropriate
endorsements and transfer documents, (iv) if and as required by
Section 9.03(e), pay an amount equal to the interest payable on the next
Interest Payment Date and (v) if required pursuant to Section 9.14,
pay any applicable transfer or similar taxes. The “Conversion
Date” with respect to a Security means the date on which the Holder
of the Security has complied with all of the foregoing requirements to convert
such Security. Anything herein to the contrary notwithstanding, in the case of
Global Securities, Securities may be surrendered in accordance with the
rules and procedures of the Depositary, to the extent applicable, as in
effect from time to time.

 

31

 

The Conversion Agent will, on the Holder’s
behalf, convert the Securities into the consideration described in
Section 9.03. The Holder may obtain additional copies of the required form
of the Conversion Notice from the Conversion Agent.

 

(b)                                  In
the case of any Security which is converted in part only, upon such conversion
the Company shall execute and the Trustee shall upon receipt of a Company Order
(which the Company agrees to deliver promptly) authenticate and deliver to the
Holder thereof, without service charge, a new Security or Securities of
authorized denominations in an aggregate principal amount equal to, and in
exchange for, the unconverted portion of the principal amount of such Security.

 

Section 9.03.  Settlement Upon Conversion.  (a) Holders surrendering
Securities for conversion shall be entitled to receive, for each $1,000
principal amount of Securities surrendered for conversion a number of shares of
Common Stock (the “Conversion Shares”)
equal to the sum of the Daily Share Amounts for each of the 40 consecutive
Trading Days in the applicable Conversion Reference Period, subject to the
Company’s right to deliver cash in lieu of all or a portion of such Conversion
Shares as set forth in Section 9.03(b) (the amount so deliverable
upon conversion of the Securities, the “Conversion Obligation”).

 

(b)                                  The
Company may elect to pay cash to the Holders of Securities surrendered for
conversion in lieu of all or a portion of the Conversion Shares otherwise
issuable pursuant to Section 9.03. In such event, on any day prior to the
first Trading Day of the applicable Conversion Reference Period, the Company
may specify a percentage of the Daily Share Amount that will be settled in cash
(the “Cash Percentage”). If the Company
elects to specify a Cash Percentage, the amount of cash that the Company will
deliver in respect of the Daily Share Amount for each Trading Day in the
applicable Conversion Reference Period will equal the product of: (1) the
Cash Percentage, (2) the Daily Share Amount for the Trading Day and
(3) the Volume Weighted Average Price of the Common Stock on the Trading
Day. The number of shares of Common Stock that the Company shall deliver in
respect of the Daily Share Amount for each Trading Day in the applicable
Conversion Reference Period will be the Daily Share Amount multiplied
by a percentage calculated as 100% minus the Cash Percentage. If the
Company does not specify a Cash Percentage by the start of the applicable
Conversion Reference Period, the Company shall settle 100% of the Daily Share
Amount for each Trading Day in the applicable Conversion Reference Period with
shares of Common Stock; provided, however, that the Company shall pay cash in lieu of
fractional shares otherwise issuable upon conversion of the Securities in
accordance with Section 9.07.

 

(c)                                   Upon
the conversion of a Security, the Company shall deliver the Daily Share Amount
(or cash in lieu of all or a portion thereof) for each Trading Day in the
relevant Conversion Reference Period determined in accordance with 

 

32

 

Section 9.03(a) and
Section 9.03(b) which shall be owed by the Company in connection with
such conversion on the third Trading Day immediately following such Trading
Day, and the Company shall deliver the cash with respect to any Early
Conversion Make Whole Amount pursuant to Section 9.06 on the third
Business Day following the last Trading Day of the relevant Conversion
Reference Period (each such delivery date, a “Settlement
Date”). Notwithstanding the foregoing, in the event that a Holder
converts Securities “in connection with” a Make Whole Fundamental Change in
which the consideration for the Common Stock is comprised entirely of cash, the
Conversion Obligation and Daily Share Amount for each Trading Day in the
relevant Conversion Reference Period will be calculated based solely on the
Stock Price with respect to the transaction and will be deemed to be an amount
equal to the Daily Conversion Rate (determined as described in the definition
thereof and taking into account any adjustment thereto pursuant to
Section 9.05 and substituting that Stock Price for the Volume Weighted
Average Price) multiplied by the Stock
Price.  In that event, the relevant Daily
Share Amount for each Trading Day in the relevant Conversion Reference Period
and shall be determined and paid to Holders in cash as promptly as practicable
but in any event no later than the third Trading Day following the relevant
Conversion Date.

 

(d)                   A
Holder shall not be entitled to any rights of a holder of Common Stock until
such Holder has converted its Securities. 
The Person in whose name any certificate or certificates evidencing
shares of Common Stock, if any, issuable upon conversion and comprising, in
whole or in part, the Daily Share Amount in respect of any Trading Day in the
relevant Conversion Reference Period shall become, at the Close of Business on
such Trading Day, the holder of record of the shares of Common Stock
represented thereby.  Except as set forth
in this First Supplemental Indenture, no payment or adjustment will be made for
dividends or distributions declared or made on shares of Common Stock issued
upon conversion of a Security prior to the issuance of such shares of Common
Stock.

 

(e)                    Upon
conversion of a Security, a Holder will not receive any cash payment
representing any accrued and unpaid interest through the Conversion Date,
subject to the obligations of the Company pursuant to Section 9.06.  Instead, accrued and unpaid interest will be
deemed paid by the consideration paid upon conversion. The payment and delivery
to the Holder of Common Stock (if any) into which the Holder’s Securities are
convertible or cash in lieu of all or a portion thereof, together with any cash
payment for fractional shares, will be deemed to satisfy, subject to the
obligations of the Company pursuant to Section 9.06, the Company’s
obligation to pay the principal amount of the Securities and the Company’s
obligation to pay accrued but unpaid interest attributable to the period from
the most recent Interest Payment Date through the Conversion Date. Accrued and
unpaid interest through the Conversion Date shall be deemed to be paid in full
rather than cancelled, extinguished or forfeited.

 

33

 

Notwithstanding the foregoing, Holders of
Securities surrendered for conversion (in whole or in part) during the period
from the Close of Business on any Regular Record Date to the Opening of
Business on the next succeeding Interest Payment Date will receive the
semiannual interest payable on such Securities on the corresponding Interest
Payment Date notwithstanding the conversion, and such interest shall be payable
on the corresponding Interest Payment Date to the Holder of the Security as of
the Close of Business on the Regular Record Date. Upon surrender of any
Securities for conversion after the Close of Business on the Regular Record
Date, the Securities must also be accompanied by payment by the Holders of the
Securities in funds to the Conversion Agent acceptable to the Company of an
amount equal to the interest payable on such corresponding Interest Payment
Date; provided that no payment need be made:
(1) if the Conversion Date is prior to April 1, 2011; (2) if the
Company has called the Securities for redemption on a Redemption Date that
falls after a Regular Record Date for an Interest Payment Date and on or prior
to the related Interest Payment Date; (3) in connection with a conversion
following the Regular Record Date preceding the Stated Maturity for the payment
of principal of the Securities; (4) if the Company has specified a
Fundamental Change Purchase Date that is after a Regular Record Date and on or
prior to the corresponding Interest Payment Date; or (5) to the extent of
any overdue interest if any such overdue interest exists at the time of
conversion with respect to the Securities. Except as otherwise provided in this
Section 9.03(e), no payment or adjustment will be made for any accrued and
unpaid interest on a converted Security. 
The Company shall not be required to convert any Securities which are
surrendered for conversion without payment of interest as required by this
Section 9.03(e).

 

(f)                                     The
Base Conversion Rate will not be adjusted for accrued and unpaid interest.

 

Section 9.04.  Adjustments to Base Conversion Rate.  The Base Conversion Rate shall be
adjusted from time to time as follows:

 

(a)                                   If
the Company issues shares of Common Stock as a dividend or distribution on
shares of the Common Stock to all or substantially all holders of the Common
Stock, or if the Company effects a share split or share combination, the Base
Conversion Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 × 

  	
  OS1

  	
   

  
	
  OS0

  	
   

  

 

	
  where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CR0

  	
  =

  	
  the Base Conversion Rate in effect immediately prior to the Opening
  of Business on such Ex-Dividend Date of the

  

 

34

 

	
   

  	
   

  	
  dividend or distribution, or the Opening of Business on the effective
  date of such share split or share combination, as applicable;

  
	
   

  	
   

  	
   

  
	
  CR1

  	
  =

  	
  the new Base Conversion Rate in effect immediately after the Opening
  of Business on such Ex-Dividend Date or such effective date, as applicable;

  
	
   

  	
   

  	
   

  
	
  OS0

  	
  =

  	
  the number of shares of Common Stock outstanding immediately prior to
  Opening of Business on such Ex-Dividend Date or such effective date, as
  applicable; and

  
	
   

  	
   

  	
   

  
	
  OS1

  	
  =

  	
  the number of shares of Common Stock that would be outstanding
  immediately after, and solely as a result of, such dividend, distribution,
  share split or combination, as applicable.

  

 

Such
adjustment shall become effective immediately following the Opening of Business
on (i) the Ex-Dividend Date for the dividend or distribution or
(ii) the effective date of the share split or combination, as the case may
be.  If any dividend or distribution of
the type described in this Section 9.04(a) is declared but not so
paid or made, the new Base Conversion Rate shall be readjusted to the Base
Conversion Rate that would then be in effect if such dividend or distribution
had not been declared. Except in the case of a share combination or a reverse
split, in no event shall the Base Conversion Rate be decreased pursuant to this
Section 9.04(a).

 

(b)                   If
the Company distributes to all or substantially all holders of its Common Stock
any rights, options or warrants entitling them to purchase, for a period
expiring within 45 days of distribution, shares of Common Stock at a price per
share less than the Closing Sale Prices of the Common Stock on the Business Day
immediately preceding the declaration date for such distribution, the Base
Conversion Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 × 

  	
  OS1
  + X

  	
   

  
	
  OS0 +
  Y

  	
   

  

 

	
  where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CR0

  	
  =

  	
  the Base Conversion Rate in effect immediately prior to the Opening
  of Business on the Ex-Dividend Date for such distribution;

  
	
   

  	
   

  	
   

  
	
  CR1

  	
  =

  	
  the new Base Conversion Rate in effect immediately after the Opening
  of Business on the Ex-Dividend Date for such distribution;

  
	
   

  	
   

  	
   

  
	
  OS0

  	
  =

  	
  the number of shares of Common Stock outstanding immediately prior to
  the Opening of Business on the

  

 

35

 

	
   

  	
   

  	
  Ex-Dividend Date for such distribution;

  
	
   

  	
   

  	
   

  
	
  X

  	
  =

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

  
	
   

  	
   

  	
   

  
	
  Y

  	
  =

  	
  the number of shares of Common Stock equal to the quotient of
  (A) the aggregate price payable to exercise such rights, options or
  warrants and (B) the average of the Closing Sale Prices of the Common
  Stock for the 10 consecutive Trading Days ending on the Trading Day
  immediately preceding the date of announcement for the issuance of the
  rights, options or warrants.

  

 

For purposes
of this Section 9.04(b), in determining whether any rights, options or
warrants entitle the Holders to purchase shares of Common Stock at less than
the applicable Closing Sale Price immediately preceding the declaration date
for such distribution, and in determining the aggregate exercise or conversion
price payable for the shares of Common Stock, there shall be taken into account
any consideration received by the Company for such rights, options or warrants
and any amount payable on exercise thereof, with the value of such
consideration, if other than cash, to be determined by the Board of Directors.
If any right, option or warrant described in this Section 9.04(b) is
not exercised or converted prior to the expiration of the exercisability or
convertibility thereof, the new Base Conversion Rate shall be readjusted to the
Base Conversion Rate that would then be in effect if the right, option or
warrant had not been so issued.  Any
adjustment made pursuant to this Section 9.04(b) shall become
effective immediately following the Opening of Business on the Ex-Dividend Date
for the distribution of rights, options or warrants, as applicable. In no event
shall the Base Conversion Rate be decreased pursuant to this
Section 9.04(b).

 

(c)                                   If
the Company distributes shares of Capital Stock, evidences of its indebtedness
or other assets or property of the Company or rights or warrants to acquire
Capital Stock of the Company to all or substantially all holders of the Common
Stock, excluding:

 

(i)                           dividends,
distributions, share splits or share combinations as to which an adjustment
applies under Section 9.04(a) or Section 9.04(b) above;

 

(ii)                        dividends
or distributions paid exclusively in cash; and

 

(iii)                     Spin-Offs
to which the provisions set forth below in this Section 9.04(c) shall
apply;

 

then the Base
Conversion Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 × 

  	
  SP0

  	
   

  
	
  SP0 – FMV

  	
   

  

 

36

 

	
  where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CR0

  	
  =

  	
  the Base Conversion Rate in effect immediately prior to the Opening
  of Business on the Ex-Dividend Date for such distribution;

  
	
   

  	
   

  	
   

  
	
  CR1

  	
  =

  	
  the new Base Conversion Rate in effect immediately after the Opening
  of Business on the Ex-Dividend Date for such distribution;

  
	
   

  	
   

  	
   

  
	
  SP0

  	
  =

  	
  the average of the Closing Sale Prices of the Common Stock over the
  10 consecutive Trading Days ending on the Business Day immediately preceding
  the Ex-Dividend Date for such distribution; and

  
	
   

  	
   

  	
   

  
	
  FMV

  	
  =

  	
  the Fair Market Value (as determined in good faith by the Board of
  Directors) of the shares of Capital Stock, evidences of indebtedness, assets,
  property, rights or warrants distributed with respect to each outstanding
  share of Common Stock at the Opening of Business on the Ex-Dividend Date for
  such distribution.

  

 

Such
adjustment shall become effective immediately following the Opening of Business
on the Ex-Dividend Date for such distribution of the Capital Stock, evidences
of indebtedness or other assets or property of the Company or rights or
warrants to acquire Capital Stock of the Company.

 

With respect
to an adjustment pursuant to this Section 9.04(c) where there has
been a payment of a dividend or other distribution on the Common Stock of
shares of Capital Stock of any class or series, or similar equity interest, of
or relating to a Subsidiary or other business unit of the Company (a “Spin-Off”), the Base Conversion Rate will be adjusted based
on the following formula:

 

	
  CR1 = CR0 × 

  	
  FMV0 + MP0

  	
   

  
	
  MP0

  	
   

  

 

	
  where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CR0

  	
  =

  	
  the Base Conversion Rate in effect immediately prior to Close of
  Business on the last Trading Day of the Valuation Period;

  
	
   

  	
   

  	
   

  
	
  CR1

  	
  =

  	
  the new Base Conversion Rate in effect immediately after the Close of
  Business on the last Trading Day of the Valuation Period;

  
	
   

  	
   

  	
   

  
	
  FMV0

  	
  =

  	
  the average of the Closing Sale Prices of the Capital Stock or
  similar equity interest distributed to holders of Common Stock applicable to
  one share of Common Stock (determined for the purposes of the definition of
  Closing Sale Price as if the Capital Stock or similar equity interest were Common
  Stock) over the 10 consecutive Trading-Day period beginning on, and
  including, the effective date of 

  

 

37

 

	
   

  	
   

  	
  the Spin-Off (the “Valuation Period”);
  and

  
	
  MP0

  	
  =

  	
  the average of the Closing Sale Prices of Common Stock over the
  Valuation Period.

  

 

Such
adjustment shall occur immediately after the Close of Business on the last
Trading Day of the Valuation Period; provided that
in respect of any Conversion Date occurring during the Valuation Period,
references to 10 Trading Days within the portion of this
Section 9.04(c) related to “Spin-Offs” shall be deemed replaced with
the lesser number of Trading Days as have elapsed between the effective date of
such Spin-Off and the relevant Conversion Date in determining the adjustment to
the applicable Base Conversion Rate.

 

If any such
dividend or distribution described in this Section 9.04(c) is
declared but not paid or made, the new Base Conversion Rate shall be readjusted
to be the Base Conversion Rate that would be in effect if the dividend or
distribution had not been declared. In no event shall the Base Conversion Rate
be decreased pursuant to this Section 9.04(c).

 

(d)                   If
the Company pays or makes any dividend or distribution consisting exclusively
of cash to all or substantially all holders of Common Stock, the Base
Conversion Rate will be adjusted based on the following formula:

 

	
  CR1 = CR0 × 

  	
  SP0

  	
   

  
	
  SP0 – C

  	
   

  

 

	
  where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CR0

  	
  =

  	
  the Base Conversion Rate in effect immediately prior to the Opening
  of Business on the Ex-Dividend Date for such dividend or distribution, as
  applicable;

  
	
  CR1

  	
  =

  	
  the new Base Conversion Rate in effect immediately after the Opening
  of Business on the Ex-Dividend Date for such dividend or distribution, as
  applicable;

  
	
  SP0

  	
  =

  	
  the average of the Closing Sale Prices of the Common Stock over the
  10 consecutive Trading Days ending on the Business Day immediately preceding
  the Ex-Dividend Date for such dividend or distribution, as applicable; and

  
	
  C

  	
  =

  	
  the amount in cash per share of Common Stock that the Company
  distributes to holders of Common Stock.

  

 

Any adjustment
to the Base Conversion Rate made pursuant to this
Section 9.04(d) shall become effective immediately following the
Opening of Business on the Ex-Dividend Date for the dividend or distribution.
If any dividend or distribution described in this Section 9.04(d) is
declared but not so paid or made, 

 

38

 

the new Base
Conversion Rate shall be readjusted to the Base Conversion Rate that would then
be in effect if the dividend or distribution had not been declared. In no event
shall the Base Conversion Rate be decreased pursuant to this
Section 9.04(d).

 

(e)                    If
the Company or any of its Subsidiaries makes a payment in respect of a tender
offer or exchange offer for Common Stock, to the extent that the cash and value
of any other consideration included in the payment per share of Common Stock
exceeds the average of the Closing Sale Prices of the Common Stock over the 10
consecutive Trading-Day period commencing on, and including, the Trading Day
next succeeding the last date on which tenders or exchanges may be made
pursuant to such tender or exchange offer, the Base Conversion Rate will be
adjusted based on the following formula:

 

	
  CR1 = CR0 × 

  	
  AC + (SP1 × OS1)

  	
   

  
	
  OS0 × SP1

  	
   

  

 

	
  where

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CR0

  	
  =

  	
  the Base Conversion Rate in effect at the Close of Business on the
  last Trading Day of the 10 consecutive Trading-Day period commencing on, and
  including, the Trading Day next succeeding the date such tender or exchange
  offer expires;

  
	
   

  	
   

  	
   

  
	
  CR1

  	
  =

  	
  the new Base Conversion Rate in effect at the Opening of Business on
  the first day following the last Trading Day of the 10 consecutive
  Trading-Day period commencing on, and including, the Trading Day next
  succeeding the date such tender or exchange offer expires;

  
	
   

  	
   

  	
   

  
	
  AC

  	
  =

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

  
	
   

  	
   

  	
   

  
	
  OS0

  	
  =

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

  
	
   

  	
   

  	
   

  
	
  OS1

  	
  =

  	
  the number of shares of Common Stock outstanding immediately after
  the date such tender or exchange offer expires (after giving effect to the
  purchase or exchange of all shares accepted for purchase or exchange in the
  offer); and

  
	
   

  	
   

  	
   

  
	
  SP1

  	
  =

  	
  the average of the Closing Sale Prices of Common Stock for the 10
  consecutive Trading-Day period commencing on, and including, the Trading Day
  next succeeding the date such tender or exchange offer expires.

  

 

39

 

The adjustment to the Base Conversion Rate
under this Section 9.04(e) shall become effective immediately
following the Opening of Business on first day following the last Trading Day
of the 10 consecutive Trading-Day period commencing on, and including, the
Trading Day next succeeding the date the tender or exchange offer expires; provided that, in respect of any Conversion Date occurring
during the 10 Trading Days following the date that any tender or exchange offer
expires, references within this Section 9.04(e) to 10 Trading Days
shall be deemed replaced with such lesser number of Trading Days as have
elapsed between the date such tender or exchange offer expires and the relevant
Conversion Date in determining the adjustment to the applicable Base Conversion
Rate.  If the Company or one of its
Subsidiaries is obligated to purchase Common Stock pursuant to any tender or
exchange offer but are permanently prevented by applicable law from effecting a
purchase or all purchases are rescinded, the new Base Conversion Rate shall be
readjusted to be the Base Conversion Rate that would be in effect if the tender
or exchange offer had not been made. In no event shall the Base Conversion Rate
be decreased pursuant to this Section 9.04(e).

 

(f)            Notwithstanding the foregoing
provisions of this Section 9.04, no adjustment will be made thereunder,
nor shall an adjustment be made to the ability of a Holder to convert, for any
distribution described therein if each Holder will otherwise participate in the
distribution on the same terms and at the same time as holders of Common Stock,
without having to convert its Securities, as if such Holder held a number of
shares of Common Stock equal to the Base Conversion Rate in effect on the
Ex-Dividend Date or effective date, as the case may be, for such transaction multiplied  by the
principal amount (expressed in thousands) of the Securities held by such
Holder.

 

(g)         No adjustment to the Base
Conversion Rate will be made unless as specifically set forth in this Section 9.04
and Section 9.05.

 

(h)         Without limiting the
foregoing, the applicable Base Conversion Rate will not be adjusted upon
certain events, including but not limited to:

 

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

 

(ii)        the issuance of any shares of Common Stock or
options or rights to purchase shares of Common Stock pursuant to any present or
future employee, director or consultant benefit plan, employee agreement or
arrangement or program of the Company;

 

(iii)     the issuance of any shares of Common Stock pursuant
to any option, warrant, right, or exercisable, exchangeable or convertible
security outstanding as of the Issue Date;

 

40

 

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

 

(v)       accumulated and unpaid dividends or distributions;
or

 

(vi)    as a result of a tender offer solely to holders of
fewer than 100 shares of Common Stock.

 

(i)             No adjustment to the Base
Conversion Rate will be required unless the adjustment would require an
increase or decrease of at least 1% of the Base Conversion Rate. If the
adjustment is not made because the adjustment does not change the Base
Conversion Rate by at least 1%, then the adjustment that is not made will be
carried forward and taken into account in any future adjustment. All required
calculations will be made to the nearest cent or 1/1000th of a share, as the
case may be.  Notwithstanding the
foregoing, (i) upon any conversion of Securities (solely with respect to
Securities to be converted), (ii) on every one year anniversary from the
Issue Date of the Securities and (iii) on the Stated Maturity for the
payment of principal of the Securities, the Company will give effect to all
adjustments that have been otherwise deferred, and those adjustments will no
longer be carried forward and taken into account in any future adjustment.

 

(j)             Whenever the Base Conversion
Rate is adjusted as herein provided, the Company shall promptly file with the
Trustee and any Conversion Agent other than the Trustee an Officer’s
Certificate setting forth the Base Conversion Rate after such adjustment and
setting forth a brief statement of the facts requiring such adjustment.  Unless and until a Responsible Officer of the
Trustee shall have received such Officer’s Certificate, the Trustee shall not
be deemed to have knowledge of any adjustment of the Base Conversion Rate and
may assume that the last Base Conversion Rate of which it has knowledge is
still in effect.  Promptly after delivery
of such certificate, the Company shall prepare a notice of such adjustment of
the Base Conversion Rate setting forth the adjusted Base Conversion Rate and
the date on which each adjustment becomes effective and shall mail such notice
of such adjustment of the Base Conversion Rate to the Holder of each Security
at such Holder’s last address appearing on the Securities Register provided for
in Section 2.04 of this First Supplemental Indenture within 20 days after
execution thereof.  Failure to deliver
such notice shall not affect the legality or validity of any such adjustment.

 

(k)          For purposes of this Section 9.04,
the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common
Stock.  If the Company pays any dividend
or makes any distribution on, or issues any rights, options or warrants in
respect of, shares of Common Stock held in treasury by the Company, the Company
shall not issue, transfer or convey such shares of Common Stock in a manner
that would have the effect of circumventing the provisions of this Section 9.04.

 

41

 

(l)             In addition to the
adjustments described in this Section 9.04, the Company may increase the
Base Conversion Rate as the Board of Directors deems advisable to avoid or
diminish any income tax to Holders of the Company’s Capital Stock resulting
from any dividend or distribution of Capital Stock (or rights to acquire
Capital Stock) or from any event treated as a dividend or distribution of
Capital Stock or rights to acquire Capital Stock for income tax purposes. The
Company may also, from time to time, to the extent permitted by applicable law,
increase the Base Conversion Rate by any amount for any period of at least 20
Business Days if the Board of Directors has determined that an increase would
be in the Company’s best interests. Any increase in the Base Conversion Rate by
the Board of Directors shall be subject to the Maximum Conversion Rate. If the
Board of Directors makes a determination to increase the Base Conversion Rate,
it will be conclusive. The Company shall give Holders of Securities at least 15
days’ notice of an increase in the Base Conversion Rate.

 

(m)       If any adjustment is made to
the Base Conversion Rate pursuant to Section 9.04(a) through (e), the
same proportional adjustment will be made to the Maximum Conversion Rate and
the Incremental Share Factor.

 

Section 9.05.  Adjustment to Common Stock
Delivered Upon Make Whole Fundamental Change. 
(a) If,
on or prior to April 1, 2013, a transaction described in clauses (1), (2) or
(4) of the definition of Change of Control or a Termination of Trading (in
each case determined after giving effect to any exceptions or exclusions to
that definition, but without regard to the proviso in
clause (2) of the definition of Change of Control, a “Make Whole
Fundamental Change”) occurs and a Holder elects to convert its
Securities “in connection with” the Make Whole Fundamental Change, the Company
shall pay a “Make Whole Premium” by increasing
the applicable Base Conversion Rate for the Securities surrendered for
conversion by a number of additional shares of Common Stock as provided in Section 9.05(b) (the
“Additional Shares”). If a Make Whole
Fundamental Change occurs, the Company shall provide a notice (a “Make Whole Fundamental Change Notice”) of the date on which
the Make Whole Fundamental Change becomes effective (the “Effective
Date”) to the Holders of Securities in the manner specified in Section 1.7
of the Original Indenture and the Trustee as promptly as practicable following
the Effective Date (but in any event, within three Business Days after the
Effective Date of any Make Whole Fundamental Change). A conversion of
Securities shall be deemed for these purposes to be “in connection with” the
Make Whole Fundamental Change if the notice of conversion is received by the
Conversion Agent from, and including, the Effective Date and prior to the Close
of Business on the Business Day prior to the related Fundamental Change
Purchase Date (or, in the case of an event that would have been a Fundamental
Change but for the proviso in
clause (2) of the definition of Change of Control, the 30th calendar day
immediately following the Effective Date).

 

42

 

(b)         The number of Additional
Shares per $1,000 principal amount of Securities constituting the Make Whole
Premium shall be determined by reference to the table attached as Schedule A
hereto and shall be based on the Effective Date and the price (the “Stock Price”) paid, or deemed paid, per share of Common
Stock in the Make Whole Fundamental Change (subject to adjustment as set forth
in clause (c) below). If the holders of Common Stock receive only
cash in a Make Whole Fundamental Change, the Stock Price shall be the cash
amount paid per share of Common Stock. Otherwise, the Stock Price shall be the
average of the Closing Sale Prices of Common Stock for each of the 10
consecutive Trading Days prior to, but excluding, the relevant Effective Date.
The actual Stock Price and Effective Date may not be set forth on the table
attached as Schedule A hereto, in which case:

 

	
  (i)

  	
   

  	
  if the actual Stock Price is between two Stock
  Prices in such table or the actual Effective Date is between two Effective
  Dates in the table, the number of Additional Shares will be determined by
  straight-line interpolation between the number of Additional Shares set forth
  for the higher and lower Stock Price amounts and the earlier and later
  Effective Dates, as applicable, based on a 365-day year;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  if the actual Stock Price on the Effective Date
  exceeds $100.00 per share of Common Stock (subject to adjustment as set forth
  in clause (c) below), no Additional Shares will be added to the
  Base Conversion Rate; and

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  if the actual Stock Price on the Effective Date is
  less than $4.15 per share of Common Stock (subject to adjustment as set forth
  in clause (c) below), no Additional Shares will be added to the Base
  Conversion Rate.

  

 

Notwithstanding the foregoing, the Base
Conversion Rate shall not exceed 240.9638 shares of Common Stock per $1,000
principal amount of Securities on account of adjustments pursuant to this Section 9.05,
subject to adjustment in the same manner as the Base Conversion Rate set forth
in Section 9.04.

 

(c)          The Stock Prices set forth
in the first column of the table in Schedule A hereto will be adjusted as of
any date on which the Base Conversion Rate of the Securities is adjusted
pursuant to Section 9.04.  The
adjusted Stock Prices will equal the Stock Prices applicable immediately prior
to the adjustment multiplied by a fraction, the
numerator of which is the Base Conversion Rate immediately prior to the
adjustment giving rise to the Stock Price adjustment and the denominator of
which is the Base Conversion Rate as so adjusted.  The number of Additional Shares set forth in
such table will be adjusted in the same manner as the Base Conversion Rate as
set forth in Section 9.04.

 

Section 9.06.  Interest Make Whole Upon
Conversion.  Holders
who convert Securities prior to April 1, 2011 shall receive for each
$1,000 principal amount of Securities converted, in addition to a number of
shares of Common

 

43

 

Stock determined pursuant to
Section 9.03(a), or cash in lieu of all or a portion thereof pursuant to Section 9.03(b),
the cash proceeds, subject to the limitation described below, from sale by the
Escrow Agent pursuant to Section 4(b) of the Pledge and Escrow
Agreement of the Allocable Collateral for each $1,000 principal amount of
Securities being converted (such cash proceeds, the “Early
Conversion Make Whole Amount”); provided that,
as set forth in the Pledge and Escrow Agreement, if a Holder converts
Securities after the Close of Business on any Regular Record Date but prior to
the next Interest Payment Date, the Government Securities with respect to the
Securities being converted and relating to the pro rata amount of interest
payable on such Interest Payment Date that will mature immediately prior to the
applicable Interest Payment Date shall be excluded from such sale and from the
Early Conversion Make Whole Amount and proceeds from the sale of such pro rata
portion of the Government Securities shall be paid to the Holder of such Securities
on the Regular Record Date corresponding to such Interest Payment Date.

 

Section 9.07.  Fractional Shares.  The Company will not issue
fractional shares of Common Stock upon conversion of Securities. If more than
one Security shall be surrendered for conversion at one time by the same
Holder, the number of full shares of Common Stock that shall be issuable upon
conversion shall be computed on the basis of the aggregate principal amount of
the Securities (or specified portions thereof to the extent permitted hereby)
so surrendered. In lieu of any fractional shares of Common Stock, the Company
shall pay an amount in cash equal to the applicable fraction of a share multiplied by the Volume Weighted Average Price of the
Common Stock on the relevant Trading Day of the applicable Conversion Reference
Period corresponding to the Daily Share Amount for such Trading Day, rounded to
the nearest whole cent.

 

Section 9.08.  Notice of Adjustment.  Whenever the Base Conversion Rate
is adjusted as herein provided, the Company shall promptly file with the
Trustee and any Conversion Agent other than the Trustee, an Officer’s
Certificate setting forth the Base Conversion Rate after such adjustment and
setting forth a brief statement of the facts requiring such adjustment. Unless
and until a Trust Officer of the Trustee shall have received such Officer’s
Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Base Conversion Rate and may assume that the last Base
Conversion Rate of which it has knowledge is still in effect. Promptly after
delivery of such Officer’s Certificate, the Company shall prepare a notice of
such adjustment of the Base Conversion Rate setting forth the adjusted Base
Conversion Rate and the date on which each adjustment becomes effective and
shall mail such notice of such adjustment of the Base Conversion Rate to
Holders within 20 Business Days of the effective date of such adjustment.
Failure to deliver such notice shall not affect the legality or validity of any
such adjustment.

 

Section 9.09.  Notice of Certain
Transactions.  In the event
that the Company takes any action which would require an adjustment to the Base

 

44

 

Conversion Rate, the Company
takes any action that requires the execution of a supplemental indenture in
accordance with the provisions of Section 9.10 or if there is a
dissolution or liquidation of the Company, the Company shall mail to Holders
and file with the Trustee a notice stating the proposed record or effective
date, as the case may be. The Company shall mail such notice at least 20 days
before such proposed effective date. Failure to mail such notice or any defect
therein shall not affect the validity of any transaction referred to in this Section 9.10.

 

Section 9.10.  Effect of Recapitalizations,
Reclassifications, and Changes of Common Stock. 
(a) In
the case of the following events (each, a “Business Combination”):

 

(i)             any recapitalization, reclassification or change of
the Common Stock, other than (A) a change in par value, or from par value
to no par value, or from no par value to par value, or (B) as a result of
a subdivision or a combination of the Common Stock;

 

(ii)          any consolidation, merger or combination to which
the Company is a party;

 

(iii)       any sale, lease or other transfer to a third party
of all or substantially all of the consolidated assets of the Company and its
Subsidiaries; or

 

(iv)     any statutory share exchange;

 

in
each case as a result of which holders of Common Stock are entitled to receive
stock, other securities, other property or assets (including cash or any
combination thereof) with respect to or in exchange for Common Stock, the
Company or the successor or purchasing corporation, as the case may be, shall
execute with the Trustee a supplemental indenture (which shall comply with the
Trust Indenture Act as in force at the date of execution of such supplemental
indenture if such supplemental indenture is then required to so comply)
providing that from and after the effective date of the Business Combination,
the settlement of the Conversion Obligation in accordance with the provisions
of Section 9.03 shall be based on, and each Conversion Share deliverable
in respect of any such settlement shall consist of, the kind and amount of
shares of stock, other securities or other property or assets (including cash
or any combination thereof) which holders of Common Stock are entitled to
receive in respect of each share of Common Stock upon the Business Combination.
For purposes of the foregoing, where a Business Combination involves a
transaction that causes the Common Stock to be converted into the right to receive
more than a single type of consideration based upon any form of stockholder
election, the consideration will be deemed to be the weighted 

 

45

 

average
of the types and amounts of consideration received by the holders of Common
Stock that affirmatively make such an election. If, in the case of any such
Business Combination, the stock or other securities and assets receivable
thereupon by a holder of shares of Common Stock includes shares of stock or
other securities and assets of a Person other than the successor or purchasing
Person, as the case may be, in the Business Combination, then such supplemental
indenture shall also be executed by such other Person and shall contain such
additional provisions to protect the interests of the Holders of the Securities
as the Board of Directors shall reasonably consider necessary by reason of the
foregoing, including to the extent practicable the provisions providing for the
purchase rights set forth in Article 8 hereof. The Company shall not
become a party to any Business Combination unless its terms are materially
consistent with the provisions of this Section 9.10. The above provisions
of this Section 9.10 shall similarly apply to successive Business
Combinations. None of the provisions of this Section 9.10 shall affect the
right of a Holder of Securities to convert its Securities in accordance with
the provisions of this Article 9 prior to the effective date of a Business
Combination.

 

If this Section 9.10 applies to any event or
occurrence, Section 9.04 hereof shall not apply.

 

(b)                       In the event
the Company shall execute a supplemental indenture pursuant to this Section 9.10,
the Company shall promptly file with the Trustee (i) an Officer’s
Certificate briefly stating the reasons therefor and that all conditions
precedent have been complied with and (ii) an Opinion of Counsel to the
effect that all conditions precedent thereto and hereunder have been complied
with, and shall promptly mail notice of the execution of such supplemental
indenture to all Holders. Failure to mail such notice or any defect therein
shall not affect the validity of such transaction and such supplemental
indenture.

 

Section 9.11.  Responsibility of
Trustee.  (a) The Trustee shall have no
duty to calculate the Base Conversion Rate or to make any computation or
determination in connection therewith or to determine when an adjustment under
this Article 9 should be made, how it should be made or what such
adjustment should be, but may accept as conclusive evidence of the same or the
correctness of any such adjustment, and shall be protected in relying upon, an
Officer’s Certificate and Opinion of Counsel, including the Officer’s
Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 9.08. The Trustee makes no representation
as to the validity or value of any securities or assets issued upon conversion
of Securities, and the Trustee shall not be responsible for the Company’s
failure to comply with any provisions of this Article 9, including,
without limitation, whether or not a supplemental indenture is required to be
executed.

 

46

 

(b)         The Trustee shall not be
under any responsibility to determine the correctness of any provisions
contained in any supplemental indenture executed pursuant to Section 9.10,
but may accept as conclusive evidence of the correctness thereof, and shall be
fully protected in relying upon, the Officer’s Certificate and Opinion of
Counsel, with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 9.10.

 

(c)          Neither the Trustee nor any
Conversion Agent or any other Agent shall be responsible for determining
whether any event contemplated by this Article 9 has occurred which makes
the Securities eligible for conversion until the Company has delivered to the
Trustee and any Conversion Agent and each other Agent an Officer’s Certificate
stating that such event has occurred, on which Officer’s Certificate the
Trustee and any such Conversion Agent and other Agent may conclusively rely,
and the Company agrees to deliver such Officer’s Certificate to the Trustee and
any such Conversion Agent and each other Agent promptly after the occurrence of
any such event.

 

Section 9.12.  Stockholder Rights Plan.  To the extent that the Company has
a rights plan in effect upon conversion of the Securities into Common Stock,
the Holder will receive upon conversion of the Securities in respect of which
the Company has elected to deliver, in whole or in part, Common Stock, if
applicable, the rights under the rights plan unless, prior to the conversion,
the rights have expired, terminated or been redeemed or unless the rights have
separated from the Common Stock, in which case, and only in such case, the Base
Conversion Rate will be adjusted at the time of separation as if the Company
distributed to all holders of Common Stock shares of the Company’s Capital
Stock, evidences of indebtedness, other assets or property or rights or
warrants to acquire Common Stock as described in Section 9.04(c), subject
to readjustment upon the subsequent expiration, termination or redemption of
the rights.

 

Section 9.13.  Taxes on Conversion.  The issue of stock certificates,
if any, in respect of shares of Common Stock deliverable on conversion of
Securities shall be made without charge to the converting Holder for any
documentary, stamp or similar issue or transfer tax in respect of the issue
thereof. The Company shall not, however, be required to pay any such tax which
may be payable in respect of any transfer involved in the issue and delivery of
Common Stock in any name other than that of the Holder of any Security
converted, and the Company shall not be required to issue or deliver any such
stock certificate unless and until the Person or Persons requesting the issue
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

 

Section 9.14.  Certain Covenants of the
Company.  (a) The Company shall, prior to
issuance of any Securities hereunder, and from time to time as may be
necessary, reserve out of its authorized but unissued Common Stock or shares of
Common Stock held in treasury, a sufficient number of shares of Common

 

47

 

Stock, free of preemptive
rights, to permit the conversion of all Outstanding Securities in accordance
with the provisions of this First Supplemental Indenture (such number
calculated, solely for purposes of this Section 9.14(a), assuming the
Company has elected or will elect to deliver solely shares of Common Stock in
respect of the Conversion Obligation).

 

(b)         All shares of Common Stock
delivered upon conversion of the Securities shall be newly issued shares or
treasury shares, shall be duly authorized, validly issued and fully paid and
nonassessable and shall be free from preemptive or similar rights and free of
any lien or adverse claim.

 

(c)          The Company shall endeavor
promptly to comply with all federal and state securities laws regulating the
issuance and delivery of shares of Common Stock upon the conversion of
Securities, if any, and shall cause to have listed or quoted all such shares of
Common Stock on NASDAQ, or each United States national securities exchange or
over-the-counter or other domestic market on which the Common Stock is then
listed or quoted.

 

(d)         Before taking any action
which would cause an adjustment increasing the Base Conversion Rate to an
amount that would cause the Base Conversion Price to be reduced below the then
par value per share of the Common Stock, if any, of the shares of Common Stock
issuable upon conversion of the Securities, the Company will take all corporate
action which may, in the opinion of its counsel, be necessary in order that the
Company may validly and legally issue shares of such Common Stock at such adjusted
Base Conversion Rate.

 

ARTICLE 10

MISCELLANEOUS

 

Section 10.01.  No Defeasance.  The provisions of Article Thirteen of
the Original Indenture shall not apply to any Securities issued under this
First Supplemental Indenture.

 

Section 10.02.  Notices, Etc., to Trustee and
Company.  (a) Any notice or communication
by the Company or the Trustee to the others is duly given if in writing and
delivered in Person or mailed by first class mail (registered or certified,
return receipt requested), telecopier or overnight air courier guaranteeing
next day delivery, to the others’ address:

 

If
to the Company:

 

c/o
Globalstar, Inc.

461 So. Milpitas Blvd

Milpitas, CA 95035

 

48

 

Facsimile:  408-933-4949

Attention:  Chief Financial Officer

 

If
to the Trustee:

 

U.S.
Bank National Association, as Trustee 

Corporate Trust Dept. CN-OH-W6CT

425 Walnut Street

Cincinnati, OH 45202

Facsimile:  513-632-5511

 

(b)         The Company or the Trustee,
by notice to the others, may designate additional or different addresses for
subsequent notices or communications.

 

(c)          All notices and
communications (other than those sent to Holders) 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 acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

 

Section 10.03.  Communication by Holders with
other Holders.  Holders may
communicate pursuant to Section 312(b) of the Trust Indenture Act
with other Holders with respect to their rights under this First Supplemental
Indenture or the Securities.  The
Company, the Trustee, the Registrar and anyone else shall have the protection
of Section 312(c) of the Trust Indenture Act.

 

Section 10.04.  Rules by Trustee, Paying
Agent and Registrar.  The
Trustee may make reasonable rules for action by, or a meeting of,
Holders.  The Registrar and the Paying
Agent may make reasonable rules for their functions.

 

Section 10.05.  Legal Holidays.  In addition to and notwithstanding
Section 1.14 of the Original Indenture if Interest Payment Date (other
than an Interest Payment Date coinciding with the Stated Maturity for the
payment of principal of the Securities or earlier Redemption Date, Fundamental
Change Purchase Date or Purchase Date) of any Security falls on a day that is
not a Business Day, then (notwithstanding any other provision of the Indenture
or of the Securities) such Interest Payment Date shall be postponed to the next
succeeding Business Day; provided that,
if such Business Day falls in the next succeeding calendar month, the Interest
Payment Date will be brought back to the immediately preceding Business Day. If
the Stated Maturity for the payment of principal of the Securities, Redemption
Date, Fundamental Change Purchase Date or Purchase Date of a Security would
fall on a day that is not a Business Day, the required payment of interest, if
any, and principal shall be made on the next succeeding Business Day and no
interest on such payment shall accrue for the

 

49

 

period from and after the
Stated Maturity for the payment of principal of the Securities, Redemption
Date, Fundamental Change Purchase Date or Purchase Date, as the case may be, to
the next succeeding Business Day.

 

Section 10.06.  Governing Law.  THIS FIRST SUPPLEMENTAL INDENTURE
AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

 

Section 10.07.  Incorporators, Shareholders,
Officers and Directors of the Company Exempt from Individual Liability.  No recourse under or upon any
obligation, covenant or agreement of or contained in this First Supplemental
Indenture or of or contained in the Securities or for any claim based thereon
or otherwise in respect thereof, or in the Securities or because of the
creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, member, officer, manager or director, as such, past,
present or future, of the Company or any successor Person, either directly or
through the Company or any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
part of the consideration for, the execution of this First Supplemental
Indenture and the issue of the Securities.

 

Section 10.08.  Successors and Assigns.  All covenants and agreements of
the Company in this First Supplemental Indenture and the Securities shall bind
its successors and assigns, whether so expressed or not.  All covenants and agreements of the Trustee
in this First Supplemental Indenture shall bind its successors and assigns,
whether so expressed or not.

 

Section 10.09.  Multiple Originals.  The parties may sign any number of
copies of this First Supplemental Indenture. 
Each signed copy shall be an original, but all of them together
represent the same agreement.  One signed
copy is enough to prove this First Supplemental Indenture.

 

Section 10.10.  Conflict with Trust Indenture
Act.  If any provision hereof
limits, qualifies or conflicts with a provision of the Trust Indenture Act that
is required under the Trust Indenture Act to be a part of and govern this First
Supplemental Indenture, the latter provision shall control.  If any provision of this First Supplemental
Indenture modifies or excludes any provision of the Trust Indenture Act that
may be so modified or excluded, the latter provision shall be deemed to apply
to this First Supplemental Indenture as so modified or excluded, as the case may
be.

 

Section 10.11.  Effect of Headings and Table
of Contents.  The Article and
Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

 

50

 

Section 10.12.
Separability Clause. In case any provision in this First
Supplemental Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

Section 10.13. Benefits
of the First Supplemental Indenture. Nothing in this First
Supplemental Indenture or in the Securities express or implied, shall give to
any Person, other than the parties hereto and their successors hereunder and
the Holders, any benefit or any legal or equitable right, remedy or claim under
this First Supplemental Indenture.

 

Section 10.14. Calculations.
Except as otherwise provided herein, the Company will be responsible
for making all calculations called for under the Indenture and the Securities.
The Company will make all such calculations in good faith and, absent manifest
error, its calculations will be final and binding on Holders. The Company will
provide a schedule of its calculations to each of the Trustee and the
Conversion Agent, and each of the Trustee and Conversion Agent is entitled to
rely conclusively upon the accuracy of the Company’s calculations without
independent verification. The Trustee will deliver a copy of such schedule to
any Holder upon the request of such Holder.

 

Section 10.15. Ratification
and Incorporation of Original Indenture. As supplemented hereby, the
Original Indenture is in all respects ratified and confirmed, and the Original
Indenture and this First Supplemental Indenture shall be read, taken and
construed as one and the same instrument.

 

[Remainder of the page intentionally
left blank]

 

51

 

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

 

	
   

  	
  GLOBALSTAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Fuad Ahmad

  
	
   

  	
   

  	
  Name:

  	
  Fuad Ahmad

  
	
   

  	
  Title:

  	
  Vice President & Chief 

  Financial Officer

  

 

 

	
   

  	
  U.S.
  BANK, NATIONAL ASSOCIATION, 
    as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Jack C. Hannah

  
	
   

  	
  Name:

  	
  Jack C. Hannah

  
	
   

  	
  Title:

  	
  Assistant Vice President & Trust 

  Officer

  

 

 

SCHEDULE A

 

The following
table sets forth the number of Additional Shares, if any, to be added to the
Base Conversion Rate per $1,000 principal amount of Securities for each Stock
Price and Effective Date pursuant to Section 9.05 of this First
Supplemental Indenture:

 

	
   

  	
   

  	
  Effective Date

  Make Whole Premium (Increase in Applicable Base Conversion Rate)

  	
   

  
	
  Stock Price on Effective Date

  	
   

  	
  April 15, 2008

  	
   

  	
  April 1, 2009

  	
   

  	
  April 1, 2010

  	
   

  	
  April 1, 2011

  	
   

  	
  April 1, 2012

  	
   

  	
  April 1, 2013

  	
   

  
	
  $

  	
  4.15

  	
   

  	
  74.7818

  	
   

  	
  74.7818

  	
   

  	
  74.7818

  	
   

  	
  74.7818

  	
   

  	
  74.7818

  	
   

  	
  74.7818

  	
   

  
	
  $

  	
  5.00

  	
   

  	
  74.7818

  	
   

  	
  64.8342

  	
   

  	
  51.4077

  	
   

  	
  38.9804

  	
   

  	
  29.2910

  	
   

  	
  33.8180

  	
   

  
	
  $

  	
  6.00

  	
   

  	
  74.7818

  	
   

  	
  63.9801

  	
   

  	
  51.4158

  	
   

  	
  38.2260

  	
   

  	
  24.0003

  	
   

  	
  0.4847

  	
   

  
	
  $

  	
  7.00

  	
   

  	
  63.9283

  	
   

  	
  53.8295

  	
   

  	
  42.6844

  	
   

  	
  30.6779

  	
   

  	
  17.2388

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  8.00

  	
   

  	
  55.1934

  	
   

  	
  46.3816

  	
   

  	
  36.6610

  	
   

  	
  26.0029

  	
   

  	
  14.2808

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  10.00

  	
   

  	
  42.8698

  	
   

  	
  36.0342

  	
   

  	
  28.5164

  	
   

  	
  20.1806

  	
   

  	
  11.0823

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  20.00

  	
   

  	
  18.5313

  	
   

  	
  15.7624

  	
   

  	
  12.4774

  	
   

  	
  8.8928

  	
   

  	
  4.9445

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  30.00

  	
   

  	
  10.5642

  	
   

  	
  8.8990

  	
   

  	
  7.1438

  	
   

  	
  5.1356

  	
   

  	
  2.8997

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  40.00

  	
   

  	
  6.6227

  	
   

  	
  5.5262

  	
   

  	
  4.4811

  	
   

  	
  3.2576

  	
   

  	
  1.8772

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  50.00

  	
   

  	
  4.1965

  	
   

  	
  3.5475

  	
   

  	
  2.8790

  	
   

  	
  2.1317

  	
   

  	
  1.2635

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  75.00

  	
   

  	
  1.4038

  	
   

  	
  1.1810

  	
   

  	
  0.9358

  	
   

  	
  0.6740

  	
   

  	
  0.4466

  	
   

  	
  0.0000

  	
   

  
	
  $

  	
  100.00

  	
   

  	
  0.4174

  	
   

  	
  0.2992

  	
   

  	
  0.1899

  	
   

  	
  0.0985

  	
   

  	
  0.0663

  	
   

  	
  0.0000

  	
   

  

 

 

EXHIBIT A

 

[FORM OF FACE OF SECURITY]

 

[Global Security Legend, if
applicable]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), NEW YORK, NEW YORK, 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 DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO IN THE TERMS OF SECURITIES
ATTACHED HERETO.

 

A-1

 

GLOBALSTAR, INC.

 

5.75% Convertible Senior Notes due 2028

 

	
  No. [      ]

  	
   

  	
  $[                 ]

  

 

CUSIP NO.:

ISIN:

 

GLOBALSTAR,
INC., a company duly incorporated under the laws of the State of Delaware
(herein called the “Company,” which
term includes any successor or resulting Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to [Cede &
Co. or registered assigns](1), or registered assigns, the principal sum of
[                                        ]
United States Dollars [, as revised by the Schedule of Increases and Decreases
in Global Security attached hereto](2), on April 1, 2028, and to pay
interest thereon from April 15, 2008 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for,
semi-annually on April 1 and October 1 in each year, commencing October 1,
at the rate of 5.75% per annum, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the March 15 or September 15
(regardless of whether a Business Day), as the case may be, next preceding such
Interest Payment Date.

 

Reference is
made to the further provisions of this Security set forth on the reverse
hereof, including, without limitation, provisions giving the Holder of this
Security the right to convert this Security into shares of Common Stock and/or
cash, on the terms and subject to the limitations referred to on the reverse
hereof and as more fully specified in the Indenture. Such further provisions
shall for all purposes have the same effect as though fully set forth at this
place.

 

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

 

(1) Use
bracketed language for a Global Security

 

(2) Use
bracketed language for a Global Security

 

A-2

 

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

 

Dated:

 

	
   

  	
  GLOBALSTAR, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

	
  TRUSTEE’S CERTIFICATE OF

    AUTHENTICATION 

  
	
   

  
	
  U.S. BANK, NATIONAL ASSOCIATION .

  
	
  as Trustee, certifies that this is one of
  the 

  
	
  Securities referred to in the Indenture

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  

 

A-4

 

TERMS OF SECURITIES

 

5.75% Convertible Senior Notes due 2028

 

This Security is one of a duly authorized
issue of senior securities of the Company (herein called the “Securities”), issued under an Indenture dated as of April 15,
2008 (the “Original  Indenture”),
between the Company and the Trustee as supplemented by the First Supplemental
Indenture dated as of April 15, 2008 (the “First
Supplemental Indenture”), between the Company and the Trustee (the
Original Indenture, as supplemented by the First Supplemental Indenture, the “Indenture”), to which reference is hereby made for a
statement, of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

 

This security is the general, unsecured,
senior obligation of the Company.

 

1.                                 Interest.  Globalstar, Inc., a Delaware
corporation (such corporation, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount
of this Security at the rate of 5.75% per annum until (but excluding) April 1,
2028. In addition to interest at the rate per annum set
forth in the immediately preceding sentence, the Company shall pay Special
Interest, if applicable, as provided in Section 5.02 of the First
Supplemental Indenture.

 

The Company will pay interest semiannually in
arrears on April 1 and October 1 of each year (each, an “Interest Payment Date”), commencing October 1, 2008, to
Holders of record on the immediately preceding March 15 and September 15
(each, a “Regular  Record Date”).  Interest on the Securities will accrue from
the most recent date to which interest has been paid on the Securities or, if
no interest has been paid, from April 15, 2008.  Interest will be computed on the basis of a
360-day year of twelve 

30-day months.

 

2.                                 Method
of Payment.  By no later than 11:00 a.m.
(New York City time) on the date on which any principal of or interest on any
Security is due and payable, the Company shall deposit with the Paying Agent
money sufficient to pay such amount.  The
Company will pay principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  Payments in respect of Securities
represented by a Global Security (including principal and interest) will be
made by wire transfer of immediately available funds to the accounts specified
by The Depository Trust Company.  The
Company will pay principal of Definitive Securities at the office or agency
designated by the Company for such purpose. 
Interest on Definitive Securities will be payable (i) to Holders
having an aggregate principal amount of $5.0 million or less, by check mailed
to the Holders of these Securities and (ii) to Holders having an aggregate
principal amount of more than $5.0 million, either by check mailed to each
Holder or, upon application by a Holder to the Registrar not later than the
relevant record 

 

A-5

 

date, by wire
transfer in immediately available funds to that Holder’s account within the
United States, which application shall remain in effect until the Holder notifies,
in writing, the Registrar to the contrary.

 

3.                                 Redemption.  Subject to certain conditions specified
in the Indenture, the Securities will be redeemable upon notice of redemption
given by first-class, postage prepaid, mailed not less than 30 nor more than 60
days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at the Holder’s address appearing in the Securities Register, at the option of
the Company, in whole at any time or in part from time to time, at any time on
or after April 1, 2013 and at a price equal to 100% of the principal
amount of Securities to be redeemed, plus accrued and unpaid interest to but
excluding the Redemption Date (unless the Redemption Date is between a Regular
Record Date and the Interest Payment Date to which it relates, in which case
the Company will pay accrued and unpaid interest to the Holder of record on
such Regular Record Date, and the Redemption Price shall be 100% of the
principal amount of the Securities redeemed). In the event of redemption of
this Security in part only, a new Security or Securities of this series and of
like tenor for the unredeemed portion hereof will be issued in the name of the
Holder hereof upon the cancellation hereof.

 

4.                                 Sinking
Fund.  The Securities are not subject
to any sinking fund.

 

5.                                 Purchase
by the Company at the Option of the Holder; Purchase at the Option of the
Holder Upon a Fundamental Change. (a)    Subject to the
terms and conditions of the Indenture, a Holder shall have the option to
require the Company to purchase all or a portion of its Securities held by such
Holder on each of April 1, 2013, April 1, 2018 and April 1, 2023
at the Purchase Price specified in the Indenture.

 

(b)                            If a
Fundamental Change shall occur at any time, each Holder shall have the right,
at such Holder’s option during a specified period and subject to the terms and
conditions of the Indenture, to require the Company to purchase all or a
portion of its Securities at the Fundamental Change Purchase Price specified in
the Indenture.

 

6.                                 Conversion.  Subject to the procedures for conversion
set forth in the Indenture, a Holder may convert its Securities at its option
at any time prior to the Close of Business on the Business Day immediately
preceding the Stated Maturity for the payment of principal of the Securities.

 

The initial Base Conversion Rate is 166.1820
shares of Common Stock per $1,000 principal amount of Securities, subject to
increase and adjustment upon certain events described in the Indenture.  Upon conversion, the Holder shall be entitled
to receive shares of Common Stock, cash or a combination thereof, as specified
in the Indenture.  The Company shall
deliver cash in lieu of any fractional share of Common Stock as specified in
the Indenture.

 

A-6

 

A Holder may convert a portion of the
Securities only if the principal amount of such portion is $1,000 or an
integral multiple of $1,000. No payment or adjustment shall be made for
dividends on the Common Stock except as provided in the Indenture.

 

7.                                 Denominations;
Transfer; Exchange.  The Securities
are in registered form without coupons in denominations of principal amount of
$1,000 and integral multiples of $1,000. 
A Holder may transfer or exchange Securities in accordance with the
Indenture.  This Global Security or
portion hereof may not be exchanged for Definitive Securities of this series
except in the limited circumstances provided in the Indenture.  The holders of beneficial interests in this
Global Security will not be entitled to receive physical delivery of Definitive
Securities except as described in the Indenture and will not be considered the
Holders thereof for any purpose under the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.  The Registrar need not
register the transfer of or exchange of Securities (i) so selected for
redemption or, if a portion of any Security is selected for redemption, the
portion thereof selected for redemption; (ii) surrendered for conversion
or, if a portion of any Security is surrendered for conversion, the portion
thereof surrendered for conversion; or (iii) in certificated form for a period
of 15 days prior to mailing a notice of redemption under Article 4 of the
First Supplemental Indenture and Article 11 of the Original Indenture.

 

No service charge shall be made for any such registration of transfer
or exchange.

 

Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, regardless of whether this Security be overdue, and none of the
Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

 

8.                                 Persons
Deemed Owners.  The registered Holder
of this Security may be treated as the owner of it for all purposes.

 

9.                                 Unclaimed
Money.  If money for the payment of
principal or interest remains unclaimed for one year, the Trustee or Paying
Agent shall pay the money back to the Company, subject to applicable abandoned
property laws.  After any such payment,
Holders entitled to the money must look only to the Company and not to the
Trustee for payment.

 

10.                          Amendment,
Waiver.  The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding.  The 

 

A-7

 

Indenture also
contains provisions permitting the Holders of specified percentages in
principal amount of the Securities at the time Outstanding, on behalf of the
Holders of all Securities, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences.  Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, regardless of whether notation of such consent or waiver is made upon
this Security.

 

In addition, the Indenture permits an
amendment of the Indenture or the Securities without the consent of any Holder
under certain circumstances specified in the Indenture.

 

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

 

11.                          Defaults
and Remedies.  Subject to the
following paragraph, if certain Events of Default specified in the Indenture
occur and are continuing, the Trustee or the Holders of at least 25% in
principal amount of the Securities may declare all the Securities by notice to
the Company to be due and payable immediately. 
In addition, certain specified Events of Default will cause the
Securities to become immediately due and payable without further action by the
Holders.

 

If the Company so elects, the sole remedy for
an Event of Default relating to the Company’s failure to comply with the
reporting obligations under Section 3.06(a) of the Supplemental
Indenture and for any failure to comply with the requirements of Section 314(a)(1) of
the Trust Indenture Act, will for the 60 days after the occurrence of such an
Event of Default consist exclusively of the right to receive Special Interest
on the principal amount of the Securities at an annual rate equal to 0.50% of
the principal amount of the Securities.

 

Holders may not enforce the Indenture or the
Securities except as provided in the Indenture. 
The Trustee may refuse to enforce the Indenture or the Securities unless
it receives reasonable indemnity or security. 
Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders notice of certain continuing Defaults or Events of Default if it
determines that withholding notice is in their interest.

 

12.                          Trustee
Dealings with the Company.  Subject
to certain limitations set forth in the Indenture, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its affiliates and may 

 

A-8

 

otherwise deal
with the Company or its affiliates with the same rights it would have if it
were not Trustee.

 

13.                          No
Recourse Against Others.  No recourse
under or upon any obligation, covenant or agreement of or contained in the Indenture
or of or contained in this Security, or for any claim based thereon or
otherwise in respect thereof, or in this Security, or because of the creation
of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, member, officer, manager or director, as such, past, present or
future, of the Company or of any successor Person, either directly or through
the Company or any successor Person, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment, penalty
or otherwise; it being expressly understood that all such liability is hereby
expressly waived and released by the acceptance hereof and as a condition of,
and as part of the consideration for, the Securities and the execution of the
Indenture.

 

14.                          Authentication.  This Security shall not be valid until an
authorized signatory of the Trustee manually authenticates this Security.

 

15.                          Abbreviations.  Customary abbreviations may be used in
the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN
ENT (=tenants by the entirety), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A
(=Uniform Gift 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 Holders.  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, and reliance may be
placed only on the other identification numbers placed thereon.

 

17.                          Governing
Law.  This Security and the Indenture
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

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

 

Globalstar, Inc.

461 So. Milpitas Blvd

Milpitas, CA 95035

Attention:  Chief Financial Officer

Facsimile: 408-933-4949

 

A-9

 

ASSIGNMENT FORM

 

	
  To assign this Security, fill in the form
  below:

  
	
  I or we assign and transfer this Security
  to

  
	
   

  
	
   

  	
   

  	
   

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

  
	
   

  
	
   

  	
   

  	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D. No.)

  
	
  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:

  	
   

  
	
   

  
	
  Signature

  Guarantee:

  	
   

  
	
  (Signature must be guaranteed)

  
	
   

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

  
											

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions) with membership in an approved signature guarantee medallion program,
pursuant to SEC Rule 17Ad-15.

 

 

	
   

  	
   

  
	
   

  	
  Signature:

  

 

Signature Guarantee:

 

	
   

  	
   

  	
   

  
	
  (Signature must be guaranteed)

  	
  Signature:

  

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions) with membership in an approved signature guarantee medallion program,
pursuant to SEC Rule 17Ad-15.

 

 

FORM OF CONVERSION NOTICE

 

To:                              Globalstar, Inc.

 

The undersigned registered Holder of this
Security hereby exercises the option to convert this Security, or portion
hereof (which is $1,000 principal amount or a multiple thereof) designated
below in accordance with the terms of the Indenture referred to in this
Security, and directs that cash, if applicable, and the shares of Common Stock
of Globalstar, Inc., if applicable, payable or issuable and deliverable,
as the case may be, upon such conversion, and any Securities representing any
unconverted principal amount hereof, be issued and delivered to the registered
Holder hereof unless a different name has been indicated below. If the shares
of Common Stock, if any, due upon conversion or any portion of this Security
not converted are to be issued in the name of a Person other than the
undersigned, the undersigned shall pay all transfer taxes payable with respect
thereto.

 

This notice shall be deemed to be an
irrevocable exercise of the option to convert this Security.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
  The signature(s) should be guaranteed by an eligible guarantor
  institution (banks, stockbrokers, savings and loan associations and credit
  unions) with membership in an approved signature guarantee medallion program,
  pursuant to SEC Rule 17Ad-15.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

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

  $                    ,000

  
	
   

  	
   

  	
   

  
	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City state and zip code)

  	
   

  	
  Social Security or Other Taxpayer Number

  
	
  Please print name and address

  	
   

  	
   

  

 

 

FORM OF FUNDAMENTAL CHANGE PURCHASE
NOTICE

 

To:                              Globalstar, Inc.

 

The undersigned registered Holder of this
Security hereby acknowledges receipt of a notice from Globalstar, Inc.
(the “Company”) as to the occurrence of a
Fundamental Change with respect to the Company and requests and instructs the
Company to repurchase this Security, or the portion hereof (which is $1,000
principal amount or a multiple thereof) designated below, in accordance with
the terms of the Indenture referred to in this Security and directs that the
check in payment for this Security or the portion thereof and any Securities
representing any unrepurchased principal amount hereof, be issued and delivered
to the registered Holder hereof unless a different name has been indicated
below.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
  The signature(s) should be guaranteed by an eligible guarantor
  institution (banks, stockbrokers, savings and loan associations and credit
  unions) with membership in an approved signature guarantee medallion program,
  pursuant to SEC Rule 17Ad-15.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee

  

 

Fill in if a check is to be issued, or Securities are to be issued,
other than to and in the name of registered Holder:

 

	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
  Principal amount to be purchased

  (if less than all):  
  $                      ,000

  
	
   

  	
   

  	
   

  
	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City state and zip code)

  	
   

  	
  Social Security or Other Taxpayer Number

  
	
  Please print name and address

  	
   

  	
   

  

 

 

FORM OF PURCHASE NOTICE

 

To:                              Globalstar, Inc.

 

The undersigned registered Holder of this
Security hereby acknowledges receipt of a notice from Globalstar, Inc.
(the “Company”) as to the Holder’s option to
require the Company to repurchase this Security on a Purchase Date and requests
and instructs the Company to repurchase this Security, or the portion hereof
(which is $1,000 principal amount or a multiple thereof) designated below, in
accordance with the terms of the Indenture referred to in this Security and
directs that the check in payment for this Security or the portion thereof and
any Securities representing any unrepurchased principal amount hereof, be
issued and delivered to the registered Holder hereof unless a different name
has been indicated below.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
  The signature(s) should be guaranteed by an eligible guarantor
  institution (banks, stockbrokers, savings and loan associations and credit
  unions) with membership in an approved signature guarantee medallion program,
  pursuant to SEC Rule 17Ad-15.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee

  

 

Fill in if a check is to be issued, or Securities are to be issued,
other than to and in the name of registered Holder:

 

	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
  Principal amount to be purchased

  (if less than all):  
  $                      ,000

  
	
   

  	
   

  	
   

  
	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City state and zip code)

  	
   

  	
  Social Security or Other Taxpayer Number

  
	
  Please print name and address

  	
   

  	
   

  

 

 

[TO BE
ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

 

The initial
principal amount of this Global Security is $135,000,000.  The

following increases or decreases in this Global Security have been made:

 

	
  Date

  	
   

  	
  Amount
  of decrease

  in Principal Amount

  of this Global

  Security

  	
   

  	
  Amount
  of increase

  in Principal Amount

  of this Global

  Security

  	
   

  	
  Principal
  Amount of 

  his Global Security

  following such

  decrease or increase

  	
   

  	
  Signature
  of

  authorized signatory

  of Trustee or

  Securities CustodianExhibit 10.1

 

PLEDGE AND ESCROW AGREEMENT

 

by and among

 

GLOBALSTAR, INC., as Pledgor,

 

U.S. BANK, NATIONAL ASSOCIATION, as Trustee,

 

and

 

U.S. BANK, NATIONAL ASSOCIATION, as Escrow Agent

 

Dated as of April 15, 2008

 

 

PLEDGE AND ESCROW AGREEMENT

 

THIS PLEDGE AND ESCROW AGREEMENT (this “Agreement”), dated as of April [15], 2008, is by and
among Globalstar, Inc. (the “Company”), as
pledgor, U.S. Bank, National
Association, as trustee under the Indenture referred to below (the “Trustee”), and U.S.
Bank, National Association, in its capacity as escrow agent (the “Escrow Agent”).

 

RECITALS

 

The Company and the Trustee have entered into an
Indenture, dated as of April 15, 2008 (the “Original Indenture”)
between the Company and the Trustee, as supplemented by the First Supplemental
Indenture dated as of April [15], 2008 (the “First Supplemental Indenture”) between the Company and the
Trustee (the Original Indenture, as supplemented by the First Supplemental
Indenture, the “Indenture”)
pursuant to which the Company will issue up to $135,000,000 (or $150,000,000 if
the Underwriters exercise their overallotment option, as described in Section 2(b) of
the Underwriting Agreement, in full) in aggregate principal amount of its 5.75%
Convertible Senior Notes due 2028 (the “Notes”).

 

The Company desires to establish an escrow account
with the Escrow Agent into which certain sums as fully described in Section
2(a) below will be, simultaneously with the original issuance of the Notes (or
simultaneously with the issuance of the Notes issuable under the overallotment
option as described in Section 2(b) of the Underwriting Agreement of such over
allotment option is exercised by the Underwriters), deposited by the Company to
be held and distributed in accordance with the terms and conditions set forth
herein, and the Escrow Agent is willing to establish such an account and to
accept such funds in accordance with the terms hereinafter set forth.

 

Capitalized terms used but not defined herein shall
have the meanings assigned to such terms in the Indenture.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

SECTION 1.  Establishment of Escrow
Account.  The Escrow Agent
shall establish on the date hereof and maintain in the Trustee’s name a
“securities account” (within the meaning of Article 8 of the Uniform
Commercial Code of the State of New York as in effect from time to time (the “New York UCC”)) (the “Escrow
Account”) to which there shall be immediately credited and held
amounts received by the Escrow Agent from the Company in accordance with Section 3
hereof. The funds credited to the Escrow Account shall be applied and disbursed
only as provided herein. The Escrow Agent shall segregate the funds credited to
the Escrow Account from its other funds held as an agent or in trust. The
Escrow Agent shall treat all property held by it in the Escrow Account as
“financial assets” (as defined in Section 8-l02(a)(9) of the New York
UCC) in accordance with Section 8-501 (or successor section) of the New
York UCC.

 

1

 

SECTION 2. 
Deposit To The Escrow Account; Investments.

 

(i)            Simultaneously with the
original issuance of the Notes, the Company shall deliver to the Escrow Agent
for deposit in the Escrow Account an amount equal to $22,985,625.00 (the “Initial Escrow Funds”),

(ii)           If the overallotment option, as
described in Section 2(b) of the Underwriting Agreement, is exercised by the Underwriter,
whether in full or in part, the Company shall, simultaneously with the issuance
of the Notes, pursuant to such overallotment option, deliver to the Escrow
Agent for deposit in the Escrow Account on additional amount equal to $2,553,958.33
of such overallotment option has been exercised in (x) full or (y)
$2,553,958.33 multiplied by the percentage of such overallotment option which
has been partially exercised if such overallotment option has been exercised in
part (in either case, together with the Initial Escrow Funds, the (“Escrow Funds”).

(iii)          All amounts to be deposited with the
Escrow Agent shall be transferred by wire transfer of immediately available
funds to the following account:

 

U.S. Bank, National Association

ABA
No.: 

Account
No.: 

Account
Name: 

Attention:

 

(b)        Promptly
following the deposit of any funds into the Escrow Account, the Escrow Agent
shall invest such funds in the name of the Trustee in Government Securities as
instructed by the Company. For purposes of this Agreement, “Government Securities” shall mean (i) noncallable
direct obligations of, or noncallable obligations the payment of principal of
and interest on which are unconditionally guaranteed by, the United States of
America; and (ii) holdings in any mutual fund or similar investment
vehicle that holds only cash and securities of the types set forth in (i) above.
Promptly following the deposit of any funds into the Escrow Account, the
Company shall provide written instructions to the Escrow Agent as to the
specific Government Securities in which funds are to be invested and until such
instructions are given by the Company, the Escrow Agent shall not invest such
funds. All such amounts shall remain so invested until the close of business on
the Business Day prior to any withdrawal by the Escrow Agent pursuant to Section 4
hereof.  The Escrow Agent shall not be
liable for any losses resulting from any depreciation in the market value of
such investments.  All Government
Securities from time to time credited to the Escrow Account constituting a
“security entitlement” as defined in Section 8-102(a)(17) of the New York
LCC shall be held in the name of the Trustee and in no event shall the Company
be or be deemed to be the “entitlement holder” (as such term is defined in Section 8-102(a)(7) of
the New York UCC) with respect thereto.

 

SECTION 3.  Security Interest.

 

(a)        Pledge
and Assignment. As security for the Secured Obligations (as defined
below), the Company hereby irrevocably pledges, assigns and grants to the
Trustee, for the equal and ratable benefit of the Holders of the Notes, a first
priority continuing security interest in, and control of, all of the Company’s
right, title and interest in and to all of the following whether now owned or
existing or hereafter acquired or created (collectively, the “Collateral”):

 

(i)    the
Escrow Account, all security entitlements from time to time carried in the
Escrow Account, all funds from time to time held in the 

 

 

2

 

Escrow Account, including, without limitation, the Escrow Funds and all
certificates and instruments, if any, from time to time, representing or
evidencing the Escrow Account or the Escrow Funds;

 

(ii)   all
investments of funds in the Escrow Account, all of which shall constitute
Government Securities, and whether held by or registered in the name of the
Escrow Agent, all certificates and instruments, if any, from time to time
representing or evidencing any such Government Securities and all security
entitlements to such Government Securities;

 

(iii)  all
promissory notes, certificates of deposit, deposit accounts, checks and other
instruments evidencing Government Securities from time to time hereafter
delivered to or otherwise possessed by the Escrow Agent, for or on behalf of
the Company, in substitution for or in addition to any or all of the then
existing Collateral;

 

(iv)  all
interest, dividends, cash, instruments, securities and other properties from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the then existing Collateral; and

 

(v)   all
proceeds of the foregoing.

 

The
Trustee hereby appoints the Escrow Agent to act as the Trustee’s agent, on
behalf of the Holders of the Notes, for purposes of perfecting the foregoing
pledge, assignment and security interest in the Collateral, and the Escrow
Agent hereby accepts such appointment. For so long as the foregoing pledge,
assignment and security interest remains in effect, the Escrow Agent hereby
waives any right of set off or banker’s lien that it, in its individual
capacity or in its capacity as an agent for Persons other than the Trustee and
the Holders of the Notes, may have with respect to any or all of the
Collateral.

 

(b)        Secured
Obligations. This Agreement secures the due and punctual payment
and performance of all obligations of the Company, whether now or hereafter
existing, under the Notes, the Indenture and this Agreement, including, without
limitation, interest and premium, if any, accrued on the Notes after the
commencement of a bankruptcy, reorganization or similar proceeding involving
the Company to the extent permitted by applicable law (collectively, the “Secured Obligations”).

 

(c)        Delivery
of Collateral. All certificates or instruments, if any, representing
or evidencing all or any portion of the Collateral shall be held by the Escrow
Agent on behalf of the Trustee pursuant hereto and shall be in suitable form
for transfer by delivery, or shall be accompanied by duly executed instruments
of transfer or assignments in blank, all in form and substance 

 

3

 

reasonably satisfactory to
the Trustee, and all in form and substance sufficient to convey a valid
security interest in such Collateral to the Trustee. All securities in
uncertificated or book-entry form and all security entitlements, if any, in
each case representing or evidencing the Collateral shall be registered in the
name of the Trustee (or any of its nominees) as the registered owner thereof,
by book-entry or as otherwise appropriate so as to properly identify the
interest of the Trustee therein. In addition, the Trustee shall have the right,
at any time following the occurrence of an Event of Default, to transfer to or
to register in the name of the Trustee or any of its nominees any or all other
Collateral. Except as otherwise provided herein, all Collateral shall be
deposited and held in the Escrow Account. The Escrow Agent shall have the right
at any time to exchange certificates or instruments representing or evidencing
all or any portion of the Collateral for certificates or instruments of smaller
or larger denominations in the same aggregate amount.

 

(d)        Maintaining
the Escrow Account. So long as this Agreement is in full force and
effect:

 

(i)    subject
to the other terms and conditions of this Agreement, all Collateral held by the
Escrow Agent pursuant to this Agreement shall be held in the Escrow Account,
which shall be subject to the exclusive dominion and control of the Trustee for
the benefit of the Trustee and the equal and ratable benefit of the Holders of
the Notes;

 

(ii)   the
Escrow Account and all Collateral from time to time therein shall remain
segregated from all other funds or other property otherwise held by the Trustee
or the Escrow Agent, as applicable;

 

(iii)  all
amounts (including, without limitation, any Escrow Funds or interest on or
other proceeds of the Escrow Funds or any Government Securities held in the
Escrow Account) shall remain on deposit in the Escrow Account until withdrawn
in accordance with this Agreement; and

 

(iv)  the
Escrow Agent shall take all steps necessary to ensure that the Trustee is the
holder or entitlement holder (as the case may be) of all of the Collateral and
that either the Trustee for the equal and ratable benefit of the Holders of the
Notes or, to the extent required by applicable law, the Escrow Agent, for the
benefit of the Trustee and the equal and ratable benefit of the Holders of the
Notes, is the holder or entitlement holder of all Government Securities and
other uncertificated securities on the books of the applicable Federal Reserve
Bank or other applicable securities intermediary.

 

(e)        Further
Assurances. Prior to, contemporaneously herewith, and at any
time and from time to time hereafter, the Company shall, at the Company’s
expense, execute and deliver to the Trustee or its designee such other
instruments 

 

4

 

and documents, and take all
further action as the Trustee deems reasonably necessary or advisable or may
reasonably request to confirm or perfect the security interest of the Trustee
granted or purported to be granted hereby or to enable the Trustee to exercise
and enforce its rights and remedies hereunder with respect to any Collateral,
and the Company shall take all necessary action to preserve and protect the
security interest created hereby as a first priority, perfected lien and
encumbrance upon the Collateral.

 

SECTION 4.  Distributions from Escrow
Account.  Funds
(or Government Securities that are scheduled to mature or that can be
liquidated on or before the date of the applicable Scheduled Interest Payment)
on deposit in the Escrow Account shall be withdrawn by the Escrow Agent and
transferred only in accordance with this Section 4:

 

(a)        Event
of Default.

 

(i)    For
so long as an Event of Default has occurred and is continuing under the
Indenture, no amounts shall be disbursed from the Escrow Account, except as
provided in Section 4(a)(ii) below.

 

(ii)   If
(A) any Event of Default has occurred and is continuing under Section 5.1
of the Original Indenture or Section 5.01 of the First Supplemental
Indenture, (B) any other Event of Default has occurred and is continuing
that results in the acceleration of the payment of principal, interest, premium,
if any, pursuant to the terms of the Indenture, or (C) any material breach
or violation of any representation, warranty or agreement contained in this
Agreement has occurred:

 

(1)   The
Trustee may, without notice to the Company except as required by applicable law
and at any time or from time to time, direct the Escrow Agent to liquidate all
Collateral and transfer all proceeds thereof to the Paying Agent to apply such
funds in accordance with Sections 5.2 and 5.6 of the Original Indenture.

 

(2)   The
Trustee (and/or the Escrow Agent at its direction and on its behalf) may also,
in addition to the other rights and remedies provided for herein, exercise in
respect of the Collateral all the rights and remedies of a secured party upon
default under the New York UCC, and may also, without notice except as
specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sales, at any of the Trustee’s or the Escrow Agent’s
offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as the Trustee may deem commercially reasonable. The Company agrees
that, to the extent notice of sale shall be 

 

5

 

required by law, at least ten (10) days’ notice to the Company of
the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification. The Trustee and the
Escrow Agent shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. The Trustee (or the Escrow Agent on its
behalf) may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.

 

(3)   Any
cash held by the Escrow Agent as Collateral and all net cash proceeds received
by the Trustee or the Escrow Agent in respect of any sale or liquidation of,
collection from, or other realization upon all or any part of the Collateral
may, in the discretion of the Trustee, be held by the Trustee or the Escrow
Agent as collateral for, and then or at any time thereafter be applied (after
payment of any costs and expenses incurred in connection with any sale,
liquidation or disposition of or realization upon the Collateral and the
payment of any amounts payable to the Trustee or the Escrow Agent) in whole or
in part by the Trustee for the equal and ratable benefit of the Holders of the
Notes against all or any part of the Secured Obligations in such order as
described in Section 5.6 of the Original Indenture.

 

(b)        Scheduled
Interest Payments. Pursuant to the Notes and Section 2.01(c) of
the First Supplemental Indenture, the Company is obligated to make payments of
interest on the Notes on each of October 1, 2008, April 1, 2009, October 1,
2009, April 1, 2010, October 1, 2010 and April 1, 2011 (each, a
“Scheduled Interest Payment”).  The Scheduled Interest Payments due on the
Notes may be made, at the election of the Company, from (1) amounts held
in the Escrow Account in accordance with the procedures set forth in Section 4(b)(i) below
or (2) other sources of funds available to the Company, as anticipated in Section 4(b)(ii) below,
or from any combination of (1) and (2) above; provided,
however, that nothing herein shall be
construed as limiting the Company’s obligation to make all interest payments
due on the Notes at the times and in the amounts required by the Notes, which
obligation shall be absolute and unconditional.

 

(i)    Payment
of Interest. If the Company elects to cause a Scheduled Interest Payment to
be made using funds held in the Escrow Account, then, not later than five (5) Business
Days prior to the date of the applicable Scheduled Interest Payment, the
Company shall direct the Escrow Agent in writing to transfer from the Escrow
Account to the 

 

6

 

Trustee funds (or Government Securities that are scheduled to mature or
that can be liquidated on or before the date of the applicable Scheduled
Interest Payment) necessary to provide for payment in full (or, if the
Company intends to make a portion of such interest payment with funds or
Government Securities in the Escrow Account and the remainder of such interest
payment with funds other than those in the Escrow Account, such portion) of the
next Scheduled Interest Payment on the Notes. At or prior to 1:00 p.m.,
New York City time, on the day that is no later than one (1) Business Day
following receipt of such notice, the Escrow Agent shall transfer such funds
(or such Government Securities, as applicable) to the Paying Agent as set forth
in Section 4(e)(ii) hereof, and shall notify the Company in writing
that it has made such transfer to the Paying Agent. If the Company does not
intend to utilize the funds (or Government Securities) in the Escrow
Account to make any such Scheduled Interest Payment in full, or does not direct
the Escrow Agent in writing to make any such Scheduled Interest Payment, then
the Company shall make the Scheduled Interest Payment from Company Funds
(as defined in Section 4(b)(ii) below).

 

(ii)   Release
of Funds to the Company Due to Direct Payment of Interest by the Company.
If the Company makes any Scheduled Interest Payment or a portion of any Scheduled
Interest Payment from a source of funds other than the Escrow Account (“Company Funds”), the Company may, after payment in full of
such Scheduled Interest Payment and upon at least five (5) Business Days’
prior notice, direct the Escrow Agent, so long as no Event of Default has
occurred and is continuing, to release to the Company (or at the direction of
the Company, to release to a designated third party) an amount of funds or
Government Securities from the Escrow Account, the sum of the cumulative interest
payments on and aggregate principal amount of which is less than or equal to
the amount of Company Funds so expended in making the Scheduled Interest
Payment. Upon receipt of such notice, the Escrow Agent shall pay over or
transfer to the Company the requested amount.

 

(c)        Early
Conversion Make Whole Amount.

 

(i)    Upon
notice from the Trustee that any Notes have been submitted for conversion
pursuant to the terms of the Indenture prior to April 1, 2011, the Escrow
Agent shall liquidate a portion of the Collateral equal to the Allocable
Collateral multiplied by the number of Notes in principal amount of $1,000
submitted for conversion as calculated by the Company; provided that if any Notes are converted
between the close of business on a Record Date but prior to the next Interest
Payment Date, any portion of the applicable Allocable Collateral maturing on
such Interest Payment Date shall not be liquidated and instead shall be
released in accordance with Section 4(b) above. For purposes hereof,
“Allocable Collateral” means the
percentage of the Collateral applicable to one Note, 

 

7

 

which shall be determined by the Company, as of any date, by dividing
$1,000 by the aggregate original principal amount of Notes outstanding as of
such date and multiplying such fraction by 100.

 

(ii)   The
Escrow Agent shall release the proceeds of the liquidation of the Collateral
described in Section 4(c)(i) above to the Trustee to the extent
necessary to pay to the converting Holders as the Early Conversion Make Whole
Amount.

 

(d)        Excess
Escrow Funds. If, (x) in the course of funding the Escrow
Account pursuant to Section 2(a) hereof, the Company either elects or
is required to deposit in the Escrow Account funds in an amount greater than
that which is required to fund the payment of the Scheduled Interest Payments
(in order to permit the Escrow Agent to purchase an amount of Government
Securities equal to or greater than that which is required to fund the payment
of the Scheduled Interest Payments or otherwise) or (y) the balance of the
Escrow Account exceeds the Scheduled Interest Payments as a result of
cumulative interest payments on the Government Securities held in the Escrow
Account (any such excess amounts under clauses (x) and (y) being
hereinafter referred to as “Excess Escrow Funds”),
the Company may, upon at least five (5) Business Days’ prior written
notice (accompanied by a calculation of such excess amounts), direct the Escrow
Agent, so long as no Event of Default has occurred and is continuing, to
release to the Company (or at the direction of the Company, to release to a
designated third party) an amount of funds or Government Securities from the
Escrow Account, the sum of which (including aggregate principal amount of such
Government Securities) is less than or equal to the amount of the Excess Escrow
Funds. Upon receipt of such notice, the Escrow Agent shall pay over or transfer
to the Company (or its designated third party, as the case may be) the
requested amount or Government Securities.

 

(e)        Wire Transfer.

 

(i)    All
funds distributed from the Escrow Account to the Company shall be transferred
by wire transfer of immediately available funds to the following account:

 

(ii)   All
funds (or Government Securities that are scheduled to mature or that can be
liquidated on or before the date of the applicable Scheduled Interest Payment)
distributed from the Escrow Account to the Trustee for payment on the Notes
shall be transferred by an account-to-account transfer of immediately available
funds to the following account:

 

8

 

U.S. Bank, National Association

ABA No.: 

Account No.: 

Account Name: 

Attention: 

 

(f)         Written
Instructions; Certificates. The Company shall, upon
request by the Escrow Agent, execute and deliver to the Escrow Agent such
additional written instructions and certificates hereunder as may be reasonably
required by the Escrow Agent to give effect to this Section 4.

 

SECTION 5.  Termination of Security
Interest.  Upon payment in
full of the Scheduled Interest Payments, the security interest evidenced by
this Agreement in any Collateral remaining in the Escrow Account shall
automatically terminate and be of no further force and effect. Furthermore,
upon the release of any Collateral from the Escrow Account in accordance with
the terms of this Agreement, whether upon release of such Collateral to Holders
of Notes as payment of interest on the Notes, to the Company pursuant to
Sections 4(b)(ii), 4(c) or 4(d) or otherwise, the security interest
evidenced by this Agreement in such Collateral so released shall automatically
terminate and be of no further force and effect. The Trustee and the Escrow
Agent shall, upon request by the Company, execute and deliver to the Company
such additional written instructions and certificates hereunder as may be
reasonably required by the Company to give effect to this Section 5.

 

SECTION 6.  Attorneys-in-Fact.  The Company hereby irrevocably appoints each
of the Trustee and the Escrow Agent as the Company’s attorney-in-fact, coupled
with an interest, with full authority in the place and stead of the Company and
in the name of the Company or otherwise, from time to time in the Trustee’s or
the Escrow Agent’s discretion to take any action and to execute any instrument
that the Trustee or the Escrow Agent may deem necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation, to
receive, endorse and collect all instruments made payable to the Company representing
any interest payment, dividend or other distribution in respect of the
Collateral or any part thereof and to give full discharge for the same, and the
expenses of the Trustee and the Escrow Agent incurred in connection therewith
shall be payable by the Company.

 

SECTION 7.  Trustee or Escrow Agent May Perform.  Without limiting the authority granted under Section 6
hereof, if the Company fails to perform any agreement contained herein, the
Trustee or the Escrow Agent may, but shall not be obligated to, itself perform,
or cause performance of, such agreement, and the expenses of the Trustee or the
Escrow Agent incurred in connection therewith shall be payable by the Company
and shall be secured by the Collateral.

 

9

 

SECTION 8.  Representations,
Warranties and Agreements.

 

(a)        The Company
represents and warrants that:

 

(i)    The execution, delivery and performance by the Company of this
Agreement are within its corporate power, have been duly authorized by all
necessary corporate action of the Company, and do not contravene, or constitute
a default under, any provision of applicable law or regulation or of any
judgment, injunction, order or of any material agreement or other material
instrument binding upon the Company or of the certificate of incorporation or
by-laws of the Company or result in the creation or imposition of any Lien on
any assets of the Company other than the Lien contemplated hereby.

 

(ii)   The Company is (A) duly organized, validly existing and in
good standing under the laws of the State of Delaware, (B) has full
corporate power and authority to enter into this Agreement and (C) has the
right to pledge and grant a security interest in the Collateral as provided by
this Agreement.

 

(iii)  This Agreement has been duly executed and delivered by the Company
and constitutes a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other similar laws affecting creditors’ rights
generally and by general principles of equity.

 

(iv)  Upon the execution and delivery of this Agreement by the parties
hereto and the delivery to the Escrow Agent of the Collateral, the pledge of
the Collateral pursuant to this Agreement creates a valid and perfected first
priority security interest in the Collateral, securing the payment of the
Secured Obligations for the benefit of the Trustee, the Escrow Agent and the
Holders of the Notes, enforceable as such against all creditors of the Company
and any persons purporting to purchase any of the Collateral from each of them.

 

(v)   Other than the consent of Thermo Funding Company LLC which was
obtained on March 26, 2008 and the filing of a UCC financing statement in
respect of the security interest granted hereunder, no consent of any other
person and no consent, authorization, approval, or other action by, and no
notice to or filing with, any governmental authority or regulatory body is
required either (A) for the pledge by the Company of the Collateral
pursuant to this Agreement or for the execution, delivery or performance of
this Agreement by each of them or (B) for the exercise by the Trustee or
the Escrow Agent of the remedies in respect of the Collateral pursuant to this
Agreement.

 

10

 

(vi)  No litigation, investigation or proceeding of or before any
arbitrator or governmental authority is pending or, to the best knowledge of
the Company, threatened by or against the Company or against any of its
properties or revenues with respect to this Agreement or any of the
transactions contemplated hereby.

 

(vii) The pledge of the Collateral pursuant to this Agreement is not prohibited
by any applicable law or governmental regulation, release, interpretation or
opinion of the Board of Governors of the Federal Reserve System or other
regulatory agency (including, without limitation, Regulations T, U and X of the
Board of Governors of the Federal Reserve System).

 

(viii) All information set forth herein relating to the Collateral is
accurate and complete in all material respects.

 

(b)        The Company
covenants and agrees that:

 

(i)    it will not (and will not purport to) (A) sell, assign (by
operation of law or otherwise) or otherwise dispose of, or grant any option or
warrant with respect to, any of the Collateral nor (B) create or permit to
exist any Lien upon or with respect to any of the Collateral (except for the
liens and security interests granted under this Agreement) and at all times
will have the right to pledge the Collateral, free and clear of any Lien or
adverse claims (except for the liens and security interests granted under this
Agreement);

 

(ii)   it will not (A) enter into any agreement or understanding
(other than the Indenture) that restricts or inhibits or purports to restrict
or inhibit the Trustee’s or the Escrow Agent’s rights or remedies hereunder,
including, without limitation, their right to sell or otherwise dispose of the
Collateral or (B) fail to pay or discharge any tax, assessment or levy of
any nature with respect to the Collateral not later than three Business Days
prior to the date of any proposed sale under any judgment, writ or warrant of
attachment with respect to the Collateral; and

 

(iii)  it will not change its jurisdiction of incorporation without 30
days’ prior written notice to the Trustee.

 

(c)   The
Escrow Agent represents, warrants and agrees that it is a “securities
intermediary” within the meaning of Section 8-102(a)(14) of the New York
UCC.

 

11

 

(d)        The Trustee
represents, warrants and agrees that it is an “entitlement holder” within the
meaning of Section 8-102(a)(7) of the New York UCC.

 

(e)        For purposes of
this Section, “Lien” means, with
respect to any asset, any mortgage, deed of trust, lien, pledge, hypothecation,
encumbrance, charge or security interest in, on or of such asset.

 

SECTION 9. 
Fees and Expenses of Escrow Agent.

 

(a)        The Company
agrees to pay the Escrow Agent its agreed-upon compensation for its services as
Escrow Agent hereunder promptly upon request therefor, and to reimburse the
Escrow Agent for all reasonable and documented expenses of or disbursements
incurred by the Escrow Agent in the performance of its duties hereunder,
including the reasonable fees, expenses and disbursements of legal counsel to
the Escrow Agent.

 

(b)        The Escrow
Agent shall have a lien upon any investment income on deposit in the Escrow
Account solely for any costs, expenses and fees that may arise hereunder and
may retain that portion of the investment income in the Escrow Account equal to
such unpaid amounts, until all such costs, expenses and fees have been paid.

 

SECTION 10.  Rights, Duties and
Immunities of Escrow Agent.  Acceptance by the Escrow Agent of its duties
under this Agreement is subject to the following terms and conditions, which
all parties to this Agreement hereby agree shall govern and control the rights,
duties and immunities of the Escrow Agent:

 

(a)        The duties and
obligations of the Escrow Agent shall be determined solely by the express
provisions of this Agreement and the Escrow Agent shall not be liable except
for the performance of such duties and obligations as are specifically set out in
this Agreement. The Escrow Agent shall not be required to inquire as to the
performance or observation of any obligation, term or condition under any
agreement or arrangement between the Company and the Trustee. The Escrow Agent
is not a party to, and is not bound by, any agreement or other document out of
which this Agreement may arise. The Escrow Agent shall be under no liability to
any party hereto by reason of any failure on the part of any party hereto
(other than the Escrow Agent) or any maker, guarantor, endorser or other
signatory of any document or any other person to perform such person’s
obligations under any such document. The Escrow Agent shall not be bound by any
waiver, modification, termination or rescission of this Agreement or any of the
terms hereof, unless evidenced by a writing delivered to the Escrow Agent
signed by the proper party or parties and, if the duties or rights of the
Escrow Agent are affected, unless it shall give its prior written consent
thereto. This Agreement shall not be deemed to create a fiduciary relationship
between the parties hereto under state or federal law.

 

12

 

(b)        The Escrow
Agent shall not be responsible in any manner for the validity or sufficiency of
this Agreement or of any property delivered hereunder, or for the value or
collectibility of any note, check or other instrument, if any, so delivered, or
for any representations made or obligations assumed by any party other than the
Escrow Agent. Nothing herein contained shall be deemed to obligate the Escrow
Agent to deliver any cash, instruments, documents or any other property
referred to herein, unless the same shall have first been received by the
Escrow Agent pursuant to this Agreement.

 

(c)        The Company shall
reimburse and indemnify the Escrow Agent for, and hold it harmless against, any
loss, liability or expense, including but not limited to reasonable legal
counsel fees, incurred without bad faith, gross negligence or willful
misconduct on the part of the Escrow Agent, arising out of or in conjunction
with its acceptance of, or the performance of its duties and obligations under,
this Agreement, as well as the costs and expenses of defending against any
claim or liability arising out of or relating to this Agreement.

 

(d)        The Escrow
Agent shall be fully protected in acting on and relying upon any written
notice, direction, request, waiver, consent, receipt or other paper or document
which the Escrow Agent in good faith believes to have been signed and presented
by the Company.

 

(e)        The Escrow
Agent shall not be liable for any error of judgment, or for any act done or
step taken or omitted by it in good faith or for any mistake in act or law, or
for anything which it may do or refrain from doing in connection herewith,
except its own gross negligence or willful misconduct.

 

(f)         The Escrow
Agent may seek the advice of legal counsel in the event of any dispute or
question as to the construction of any of the provisions of this Agreement or
its duties hereunder, and except for its own bad faith, gross negligence or
willful misconduct it shall incur no liability and shall be fully protected in
respect of any action taken, omitted or suffered by it in good faith in
accordance with the advice or opinion of such counsel.

 

(g)        The parties
hereto agree that if the Escrow Agent is notified by the Trustee, the Company
or the Holders of the Notes of any dispute with respect to the payment,
ownership or right of possession of the Escrow Account, the Escrow Agent is
authorized and directed to retain in its possession, without liability to
anyone, except for its bad faith, willful misconduct or gross negligence, all
or any part of the Escrow Account until such dispute shall have been settled
either by mutual agreement by the parties concerned or by the final order,
decree or judgment of a court or other tribunal of competent jurisdiction in
the United States of America, and, in the case of a mutual agreement, a notice
executed by the parties to the dispute or their authorized representatives
shall have been delivered to the Escrow Agent setting forth the resolution of
the dispute. The Escrow Agent shall be under no duty whatsoever to institute,
defend or partake in such proceedings.

 

13

 

(h)        The agreements
set forth in this Section 10 shall survive the resignation or removal of
the Escrow Agent, the termination of this Agreement and the payment of all
amounts hereunder.

 

SECTION 11.  Miscellaneous.

 

(a)        Waiver. No waiver of
any provision of this Agreement nor consent to any departure by any party
therefrom shall in any event be effective unless the same shall be in writing
and signed by each of the non-breaching parties and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

 

(b)        Severability. If, for any
reason whatsoever, any one or more of the provisions of this Agreement shall be
held or deemed to be inoperative, unenforceable or invalid in a particular case
or in all cases, such circumstances shall not have the effect of rendering any
of the other provisions of this Agreement inoperative, unenforceable or
invalid, and the inoperative, unenforceable or invalid provision shall be
construed as if it were written so as to effectuate, to the maximum extent
possible, the parties’ intent.

 

(c)        Binding
Effect. This Agreement shall inure to and be binding upon the parties and
their respective successors and permitted assigns; provided,
however, that the Company may not assign its rights or obligations
hereunder without the express prior written consent of the Trustee.

 

(d)        Choice
of Law. The existence, validity, construction, operation and effect of any
and all terms and provisions of this Agreement shall be determined in
accordance with and governed by the internal laws of the State of New York,
including without limitation the New York UCC, without giving effect to the
conflicts of law principles of such State. The securities intermediary’s
jurisdiction for purposes of Section 8-110 of the New York UCC shall be
the State of New York.

 

(e)        Entire
Agreement. This Agreement, the Purchase Agreement, the Notes
and the Indenture contain the entire agreement among the parties with respect
to the subject matter hereof and supersede any and all prior agreements,
understandings and commitments with respect thereto, whether oral or written; provided, however, that
this Agreement is executed and accepted by the Trustee and the Escrow Agent
subject to all terms and conditions of its acceptance of the trust under the
Indenture, as fully as if said terms and conditions were set forth at length
herein.

 

(f)         Amendments. This Agreement
may be amended only by a writing signed by duly authorized representatives of
all parties. The Trustee and the Escrow Agent may execute an amendment to this
Agreement only if the requisite consent of each of the Holders of the Notes
required by Article Nine of the 

 

14

 

Indenture has been obtained,
unless no such consent is required by such Section 9.1 of the Original
Indenture.

 

(g)        Notices. All notices,
requests, instructions, orders and other communications required or permitted
to be given or made under this Agreement to any party hereto shall be delivered
in writing by hand delivery or overnight delivery, or shall be delivered by
facsimile with machine confirmation of full delivery not more than 24 hours
following such facsimile notice. A notice given in accordance with the
preceding sentence shall be deemed to have been duly given upon the sending
thereof Notices should be addressed as follows:

 

To the Company:

 

Globalstar, Inc.

461 South Milpitas Blvd.

Milpitas CA 95035

Attention: Chief  Financial
Officer

Facsimile number: 408-933-4949

 

With a copy (which shall not constitute notice) to:

 

Taft Stettinius & Hollister LLP

425 Walnut Street

Suite 1800

Cincinnati OH 45202

Attention: Gerald S. Greenberg

Facsimile number: 513-381-0205

 

To the Trustee or the Escrow Agent:

 

U.S. Bank, National Association

425 Walnut Street

CN-WN-06CT

Cincinnati OH 45202

Attention: Daniel Boyers

Facsimile number: 513-632-5511

 

or at such other address or facsimile number as the
specified entity most recently may have designated in writing in accordance
with this paragraph to the other parties.

 

(h)        Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to
this Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

15

 

(i)         Interpretation. The headings
of the sections contained in this Agreement are solely for convenience or
reference and shall not affect the meaning or interpretation of this Agreement.

 

[Signature
pages follow]

 

16

 

IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Agreement as of the day first written above.

 

 

	
   

  	
  GLOBALSTAR,
  INC., as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fuad Ahmad

  
	
   

  	
   

  	
  Name: Fuad Ahmad

  
	
   

  	
   

  	
  Title:   Vice
  President & Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK, NATIONAL ASSOCIATION,

  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jack C. Hannah

  
	
   

  	
   

  	
  Name: Jack C. Hannah

  
	
   

  	
   

  	
  Title:   Assistant
  Vice President & Trust Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK, NATIONAL ASSOCIATION,

  as Escrow Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jack C. Hannah

  
	
   

  	
   

  	
  Name: Jack C. Hannah

  
	
   

  	
   

  	
  Title:   Assistant
  Vice President & Trust Officer

  

 

17

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