Document:

Indenture of the Company to U.S. Bank Trust National Association, as Trustee

 EXHIBIT 10.44 
  

  
 Acclaim Entertainment, Inc. 
  
 To

  
 U.S. Bank Trust National Association, 
  
 as Trustee 
  

  
 Indenture 
  
 Dated February 17, 2004 
  
 Debt Securities

  

 CROSS-REFERENCE SHEET 
  
 Certain Sections of this Indenture relating to Sections 310 through 318, inclusive, of the
Trust Indenture Act of 1939: 
  

			
	 Trust Indenture
 Act
Section

	  	 Indenture
 Section

	 ss.310 (a)(1)
	  	609
	            (a)(2)
	  	609
	            (a)(3)
	  	Not Applicable
	            (a)(4)
	  	Not Applicable
	            (b)
	  	608, 610
	 ss.311 (a)
	  	613
	            (b)
	  	613
	 ss.312 (a)
	  	701, 702
	            (b)
	  	702
	            (c)
	  	702
	 ss.313 (a)
	  	703
	            (b)
	  	703
	            (c)
	  	703
	            (d)
	  	703
	 ss.314 (a)
	  	704
	            (a)(4)
	  	101, 1004
	            (b)
	  	1006
	            (c)(1)
	  	102
	            (c)(2)
	  	102
	            (c)(3)
	  	Not Applicable
	            (d)
	  	1501
	            (e)
	  	102
	 ss.315 (a)
	  	601
	            (b)
	  	602
	            (c)
	  	601
	            (d)
	  	601
	            (e)
	  	514
	 ss.316 (a)
	  	101
	            (a)(1)(A)
	  	502, 512
	            (a)(1)(B)
	  	513
	            (a)(2)
	  	Not Applicable
	            (b)
	  	508
	            (c)
	  	104
	 ss.317 (a)(1)
	  	503
	            (a)(2)
	  	504
	            (b)
	  	1003
	 ss.318 (a)
	  	107

  
 NOTE: This cross-reference sheet shall
not, for any purpose, be deemed to be a part of the Indenture. 
  

 -i- 

 Acclaim Entertainment, Inc. 
 To 
 U.S. Bank Trust National Association, 
 as Trustee 
  
 Indenture 
 Debt Securities 
  
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Article One
	  	Definitions and Other Provisions of General Application	  	1
	 Section 101.
	  	Definitions	  	1
	 Section 102.
	  	Compliance Certificates and Opinions	  	8
	 Section 103.
	  	Form of Documents Delivered to Trustee	  	8
	 Section 104.
	  	Acts of Holders	  	9
	 Section 105.
	  	Notices, Etc. to Trustee and Company	  	11
	 Section 106.
	  	Notice to Holders; Waiver	  	11
	 Section 107.
	  	Conflict with Trust Indenture Act	  	12
	 Section 108.
	  	Effect of Headings and Table of Contents	  	12
	 Section 109.
	  	Successors and Assigns	  	12
	 Section 110.
	  	Separability Clause	  	12
	 Section 111.
	  	Benefits of Indenture	  	12
	 Section 112.
	  	Governing Law	  	12
	 Section 113.
	  	Legal Holidays	  	12
	 Section 114.
	  	Indenture and Securities Solely Corporate Obligations	  	12
			
	 Article Two
	  	Security Forms	  	13
	 Section 201.
	  	Forms Generally	  	13
	 Section 202.
	  	Form of Legend for Global Securities	  	13
	 Section 203.
	  	Form of Trustee’s Certificate of Authentication	  	14
	 Section 204.
	  	Form of Conversion Notice	  	14
			
	 Article Three
	  	The Securities	  	14
	 Section 301.
	  	Amount Unlimited; Issuable in Series	  	14
	 Section 302.
	  	Denominations	  	17
	 Section 303.
	  	Execution, Authentication, Delivery and Dating	  	17
	 Section 304.
	  	Temporary Securities	  	18
	 Section 305.
	  	Registration; Registration of Transfer and Exchange	  	19
	 Section 306.
	  	Mutilated, Destroyed, Lost and Stolen Securities	  	20
	 Section 307.
	  	Payment of Interest; Interest Rights Preserved	  	21
	 Section 308.
	  	Persons Deemed Owners	  	22
	 Section 309.
	  	Cancellation	  	23
	 Section 310.
	  	Computation of Interest	  	23

  

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	 Article Four
	  	Satisfaction and Discharge	  	23
	 Section 401.
	  	Satisfaction and Discharge of Indenture	  	23
	 Section 402.
	  	Application of Trust Money	  	24
			
	 Article Five
	  	Remedies	  	24
	 Section 501.
	  	Events of Default	  	24
	 Section 502.
	  	Acceleration of Maturity; Rescission and Annulment	  	25
	 Section 503.
	  	Collection of Indebtedness and Suits for Enforcement by Trustee	  	26
	 Section 504.
	  	Trustee May File Proofs of Claim	  	26
	 Section 505.
	  	Trustee May Enforce Claims without Possession of Securities	  	27
	 Section 506.
	  	Application of Money Collected	  	27
	 Section 507.
	  	Limitation on Suits	  	27
	 Section 508.
	  	Unconditional Right of Holders to Receive Principal, Premium and Interest and to Convert	  	28
	 Section 509.
	  	Restoration of Rights and Remedies	  	28
	 Section 510.
	  	Rights and Remedies Cumulative	  	28
	 Section 511.
	  	Delay or Omission not Waiver	  	29
	 Section 512.
	  	Control by Holders	  	29
	 Section 513.
	  	Waiver of Past Defaults	  	29
	 Section 514.
	  	Undertaking for Costs	  	30
	 Section 515.
	  	Waiver of Usury, Stay or Extension Laws	  	30
			
	 Article Six
	  	The Trustee	  	30
	 Section 601.
	  	Certain Duties and Responsibilities	  	30
	 Section 602.
	  	Notice of Defaults	  	30
	 Section 603.
	  	Certain Rights of Trustee	  	31
	 Section 604.
	  	Not Responsible for Recitals or Issuance of Securities	  	31
	 Section 605.
	  	May Hold Securities and Act as Trustee Under Other Indentures	  	32
	 Section 606.
	  	Money Held in Trust	  	32
	 Section 607.
	  	Compensation and Reimbursement	  	32
	 Section 608.
	  	Conflicting Interests	  	32
	 Section 609.
	  	Corporate Trustee Required; Eligibility	  	33
	 Section 610.
	  	Resignation and Removal; Appointment of Successor	  	33
	 Section 611.
	  	Acceptance of Appointment by Successor	  	34
	 Section 612.
	  	Merger, Conversion, Consolidation or Succession to Business	  	35
	 Section 613.
	  	Preferential Collection of Claims Against Company	  	35
	 Section 614.
	  	Appointment of Authenticating Agent	  	36

  

 -ii- 

					
	 Article Seven
	  	Holders’ Lists and Reports by Trustee and Company	  	38
	 Section 701.
	  	Company to Furnish Trustee Names and Addresses of Holders	  	38
	 Section 702.
	  	Preservation of Information; Communications to Holders	  	38
	 Section 703.
	  	Reports by Trustee	  	38
	 Section 704.
	  	Reports by Company	  	39
			
	 Article Eight
	  	Consolidation, Merger, Conveyance, Transfer or Lease	  	39
			
	 Article Nine
	  	Supplemental Indentures	  	39
	 Section 901.
	  	Supplemental Indentures without Consent of Holders	  	39
	 Section 902.
	  	Supplemental Indentures with Consent of Holders	  	40
	 Section 903.
	  	Execution of Supplemental Indentures	  	41
	 Section 904.
	  	Effect of Supplemental Indentures	  	42
	 Section 905.
	  	Conformity with Trust Indenture Act	  	42
	 Section 906.
	  	Reference in Securities to Supplemental Indentures	  	42
			
	 Article Ten
	  	Covenants	  	42
	 Section 1001.
	  	Payment of Principal, Premium and Interest	  	42
	 Section 1002.
	  	Maintenance of Office or Agency	  	42
	 Section 1003.
	  	Money For Securities Payments to Be Held in Trust	  	43
	 Section 1004.
	  	Statement by Officers as to Default	  	44
	 Section 1005.
	  	Existence	  	44
	 Section 1006.
	  	Opinions as to Pledged Property	  	44
	 Section 1007.
	  	Waiver of Certain Covenants	  	45
			
	 Article Eleven
	  	Redemption of Securities	  	45
	 Section 1101.
	  	Applicability of Article	  	45
	 Section 1102.
	  	Election to Redeem; Notice to Trustee	  	45
	 Section 1103.
	  	Selection by Trustee of Securities to Be Redeemed	  	45
	 Section 1104.
	  	Notice of Redemption	  	46
	 Section 1105.
	  	Payment of Redemption Price	  	46
	 Section 1106.
	  	Securities Payable on Redemption Date	  	46
	 Section 1107.
	  	Securities Redeemed in Part	  	47
			
	 Article Twelve
	  	Sinking Funds	  	47
	 Section 1201.
	  	Applicability of Article	  	47
	 Section 1202.
	  	Satisfaction of Sinking Fund Payments with Securities	  	47
	 Section 1203.
	  	Redemption of Securities for Sinking Fund	  	48
			
	 Article Thirteen
	  	Defeasance and Covenant Defeasance	  	48
	 Section 1301.
	  	Company’s Option to Effect Defeasance or Covenant Defeasance	  	48
	 Section 1302.
	  	Defeasance and Discharge	  	48
	 Section 1303.
	  	Covenant Defeasance	  	49

  

 -iii- 

					
	 Section 1304.
	  	Conditions to Defeasance or Covenant Defeasance	  	49
	 Section 1305.
	  	Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions	  	51
	 Section 1306.
	  	Reinstatement	  	51
			
	 Article Fourteen
	  	Conversion of Securities	  	52
	 Section 1401.
	  	Applicability of Article	  	52
	 Section 1402.
	  	Notice of Certain Corporate Actions	  	52
	 Section 1403.
	  	Reservation of Shares of Common Stock	  	52
	 Section 1404.
	  	Payment of Certain Taxes upon Conversion	  	52
	 Section 1405.
	  	Nonassessability	  	52
	 Section 1406.
	  	Duties of Trustee Regarding Conversion	  	52
	 Section 1407.
	  	Repayment of Certain Funds upon Conversion	  	53
			
	 Article Fifteen
	  	Collateral	  	53
	 Section 1501.
	  	Releases of Collateral	  	53

  

 -iv- 

 INDENTURE, dated February 17, 2004, between ACCLAIM
ENTERTAINMENT, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”), having its principal executive office at One Acclaim Plaza, Glen Cove,
New York 11542, and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association duly organized and existing under the laws of the United States of America, as
Trustee (herein called the “Trustee”). 
  
 RECITALS OF
THE COMPANY 
  
 The Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance from time to time of its secured and unsecured debentures, notes or other evidences of indebtedness (herein called the “Securities”), to be issued in one or more series as provided
in this Indenture. 
  
 All things necessary to make this Indenture
a valid agreement of the Company, in accordance with its terms, have been done. 
  
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
  
 For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities or of
series thereof appertaining, as follows: 
  
 ARTICLE ONE  
  
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
  
 Section 101. Definitions. For all purposes of this Indenture, except as otherwise expressly provided herein or in a
Supplemental Indenture, or unless the context otherwise requires: 
  
 (1) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 
  
 (2) all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them
therein; 
  
 (3) all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with generally accepted accounting principles, and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles as are generally accepted at the date of such computation; 
  
 (4) unless the context otherwise requires, any reference to an “Article” or a “Section” refers to an Article or a Section, as the case
may be, of this Indenture; and 
  

 (5) the words “herein,” “hereof” and “hereunder” and other words of similar
import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 
  
 “Act” when used with respect to any Holder, has the meaning specified in Section 104. 
  
 “Affiliate” of any specified Person means any other Person directly
or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the
foregoing. 
  
 “Appraiser” means a Person engaged in the
business of appraising property who (except as otherwise expressly provided in this Indenture) may be employed by or affiliated with the Company. 
  
 “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series. 
  
 “Board of
Directors” means either the board of directors of the Company or any duly authorized committee of that board empowered to act for it with respect to this Indenture. 
  
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the
Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 
  

“Business Day” when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in that Place of Payment are authorized or obligated by law or executive order to close. 
  
 “Commission” means the Securities and Exchange Commission, from time to time constituted, created under the Exchange Act, or, if at any time
after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
  
 “Company” means the corporation named as the “Company” in
the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person. 
  
 “Company Request” or “Company Order” means a written
request or order signed in the name of the Company by its Chairman of the Board, its Vice Chairman of the Board, its 

  

 -2- 

 
President or a Vice President, and by its principal financial officer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 
  
 “Corporate Trust Office” means the corporate trust office of the
Trustee at which at any particular time the trust created by this Indenture shall be administered, which office on the date hereof is located at 100 Wall Street, 16th Floor, New York, New York, 10005. 
  
 “corporation” means a corporation, association, company, joint-stock company or business trust. 
  
 “Covenant Defeasance” has the meaning specified in Section 1303.

  
 “Defaulted Interest” has the meaning specified in
Section 307. 
  
 “Defeasance” has the meaning specified
in Section 1302. 
  
 “Depositary” means, with respect to
Securities of any series issuable in whole or in part in the form of one or more Global Securities, a clearing agency registered under the Exchange Act that is designated to act as Depositary for such Securities as contemplated by Section 301.

  
 “Event of Default” has the meaning specified in
Section 501. 
  
 “Exchange Act” means the Securities
Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time. 
  
 “Expiration Date” has the meaning specified in Section 104. 
  
 “Fair Market Value” means, at any time with respect to any property, the sale value of such property which could
be realized in an arm’s length sale at such time between an informed and willing vendee, and an informed and willing vendor, under no compulsion to buy or sell, respectively, all as determined in good faith (a) in the case of any Officers’
Certificate or other certificate delivered pursuant to Section 1501, by the signer or signers thereof and (b) in all other cases, (i) by the vendor’s board of directors or (ii) in the case of any such property of the Company or any Restricted
Subsidiary, by the Chief Executive Officer or the President of the Company, except as otherwise specifically provided in this Indenture or any Indenture supplemental hereto. 
  
 “Financial Advisor” shall mean an investment banking firm of national reputation which (except as otherwise
expressly provided in this Indenture) may be employed by or affiliated with the Company. 
  
 “Global Security” means a Security that evidences all or part of the Securities of any series and bears the legend set forth in Section 204 (or such legend as may be specified as contemplated by Section 301
for such Securities). 
  

 -3- 

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

  
 “Indenture” means this instrument as originally
executed and as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively. The term “Indenture” shall also include the terms of particular series of
Securities established as contemplated by Section 301; provided, however, that if at any time more than one Person is acting as Trustee under this Indenture due to the appointment of one or more separate Trustees for any one or more separate
series of Securities, “Indenture” shall mean, with respect to such series of Securities for which any such Person is Trustee, this instrument as originally executed or as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms of particular series of Securities for which such Person is Trustee established as contemplated by Section 301, exclusive, however,
of any provisions or terms which relate solely to other series of Securities for which such Person is not Trustee, regardless of when such terms or provisions were adopted, and exclusive of any provisions or terms adopted by means of one or more
indentures supplemental hereto executed and delivered after such Person had become such Trustee, but to which such Person, as such Trustee, was not a party; provided, further, that in the event that this Indenture is supplemented or amended
by one or more indentures supplemental hereto which are only applicable to certain series of Securities, the term “Indenture” for a particular series of Securities shall include only the supplemental indentures applicable thereto.

  
 “Independent” when used with respect to any
specified Person means such a Person who (a) is independent within the meaning of the Trust Indenture Act, (b) does not have any direct financial interest or any material indirect financial interest in the Company or in any other obligor under the
Securities or in any Affiliate of the Company or of such other obligor and (c) is not connected with the Company or such other obligor as an officer, employee, promoter, underwriter, trustee, partner, director or Person performing similar functions.
Whenever it is herein provided that any Independent Person’s opinion or certificate shall be furnished to the Trustee, such Person shall be appointed by a Company Order and such opinion or certificate shall state that the signer has read this
definition and that the signer is Independent within the meaning thereof. 
  
 “interest” when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 
  
 “Interest Payment Date” when used with respect to any Security,
means the Stated Maturity of an installment of interest on such Security. 
  
 “Investment Company Act” means the Investment Company Act of 1940 and any statute successor thereto, in each case as amended from time to time. 
  

 -4- 

 “Lien” shall mean any lien, mortgage, security interest, chattel mortgage, pledge, equity or
other encumbrance (statutory or otherwise) of any kind, including, without limitation, any agreement to give any of the foregoing, any conditional sales or other title retention agreement, any lease in the nature thereof, and the filing of or the
agreement to give any financing statement under the Uniform Commercial Code of New York or similar evidence of any encumbrance, whether within or outside the United States. 
  
 “Maturity” when used with respect to any Security, means the date on which the principal of such Security or an
installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
  
 “Notice of Default” means a written notice of the kind specified in a Board Resolution or Supplemental Indenture
with respect to any series of Securities. 
  
 “Officers’
Certificate” means a certificate signed by the Chairman of the Board, a Vice Chairman of the Board, the President or a Vice President, and by the principal financial officer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant to Section 1004 shall be the principal executive, financial or accounting officer of the Company. 
  
 “Opinion of Counsel” means a written opinion of counsel, who may be
counsel for, or an employee of, the Company, and who shall be reasonably acceptable to the Trustee. 
  
 “Original Issue Discount Security” means any Security which provides for an amount less than the principal amount thereof to be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section 502. 
  
 “Outstanding” when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except: 
  
 (1) Securities theretofore canceled by the Trustee or delivered to the
Trustee for cancellation; 
  
 (2) Securities for whose payment or
redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for
the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 
  
 (3) Securities as to which Defeasance has been effected pursuant to Section
1302; and 
  
 (4) Securities which have been paid pursuant to
Section 306 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this 

  

 -5- 

 
Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities
are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Company; provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given, made
or taken any request, demand, authorization, direction, notice, consent, waiver or other action hereunder as of any date, (A) the principal amount of an Original Issue Discount Security which shall be deemed to be Outstanding shall be the amount of
the principal thereof which would be due and payable as of such date upon acceleration of the Maturity thereof to such date pursuant to Section 502, (B) if, as of such date, the principal amount payable at the Stated Maturity of a Security is not
determinable, the principal amount of such Security which shall be deemed to be Outstanding shall be the amount as specified or determined as contemplated by Section 301, (C) the principal amount of a Security denominated in one or more foreign
currencies or currency units which shall be deemed to be Outstanding shall be the U.S. dollar equivalent, determined as of such date in the manner provided as contemplated by Section 301, of the principal amount of such Security (or, in the case of
a Security described in Clause (A) or (B) above, of the amount determined as provided in such Clause), and (D) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, waiver or other action, only Securities which the
Trustee knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with
respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor. 
  
 “Paying Agent” means any Person authorized by the Company to pay the principal of or any premium or interest on
any Securities on behalf of the Company. 
  
 “Person”
means any individual, corporation, partnership, limited liability company, joint venture, trust, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Place of Payment” when used with respect to the Securities of any series, means the place or places where the
principal of and any premium and interest on the Securities of that series are payable as specified as contemplated by Section 301. 
  
 “Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt
as the mutilated, destroyed, lost or stolen Security. 
  
 “Prior Lien” means any Lien on any of the collateral securing the Company’s obligations with respect to Securities issued under this Indenture ranking prior to or upon parity with the Lien of this Indenture. 
  

 -6- 

 “Property” means any interest in any kind of property or asset, whether real, personal or
mixed, and whether tangible or intangible. 
  
 “Redemption
Date” when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 
  
 “Redemption Price” when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture. 
  
 “Regular Record Date” for the interest
payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by Section 301. 
  
 “Responsible Officer” means an officer in the Corporate Trust Office of the Trustee. 
  
 “Securities” has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered under this Indenture. 
  
 “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each case as amended from time to time. 
  
 “Security Register” and “Security Registrar” have the
respective meanings specified in Section 305. 
  
 “Special
Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 307. 
  
 “Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 
  
 “Subsidiary” means a corporation or other entity of which a majority of the outstanding voting stock or similar voting securities having the
power to elect a majority of the board of directors of such corporation or similar body or Person of such entity is at the time owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more
other Subsidiaries and the accounts of which are consolidated with those of the Company in its then most recent consolidated financial statements in accordance with generally accepted accounting principles. For the purposes of this definition,
“voting stock” means stock which ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939 as in
force at the date as of which this instrument was executed; provided, however, that in the event the Trust 

  

 -7- 

 
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture
Act of 1939 as so amended. 
  
 “Trustee” means the
Person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each
Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series. 
  
 “U.S. Government Obligation” has the meaning specified in Section
1304. 
  
 “Vice President,” when used with respect to
the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president.” 
  
 Section 102. Compliance Certificates and Opinions. Upon any application or request by the Company to the Trustee to
take any action under any provision of this Indenture, the Company shall furnish to the Trustee such certificates and opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall be given in the form of an
Officers’ Certificate, if to be given by an officer of the Company, or an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the Trust Indenture Act and any other requirements set forth in this Indenture.

  
 Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include, 
  
 (1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; 
  
 (3) a
statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with;
and 
  
 (4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with. 
  
 Section 103. Form of Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons 

  

 -8- 

 
as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an officer of the Company may be based, insofar
as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the
matters upon which his or her certificate or opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one
instrument. 
  
 Section 104. Acts of Holders. Any request,
demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed
by such Holders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. The Trustee shall promptly deliver to the Company copies of all such instrument or instruments delivered to the Trustee. Such instrument or instruments (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 
  
 The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him or her the execution thereof. Where such execution is by a
signer acting in a capacity other than his or her individual capacity, such certificate or affidavit shall also constitute sufficient proof of his or her authority. The fact and date of the execution of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
  
 The ownership of Securities shall be proved by the Security Register. 
  
 Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind
every future Holder of the same Security and the 

  

 -9- 

 
Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
  
 The Company may set any day as a record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to give, make or
take any request, demand, authorization, direction, vote, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders of Securities of such series, provided that the Company may not set a
record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice, declaration, request or direction referred to in the next paragraph. If any record date is set pursuant to this paragraph, the
Holders of Outstanding Securities of the relevant series on such record date, and no other Holders, shall be entitled to take the relevant action, whether or not such Holders remain Holders after such record date; provided that no such action
shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such series on such record date. Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be canceled
and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the date such action is taken. Promptly after
any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106. 
  
 The Trustee may set any day as a record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration referred to in Section 502, (iii) any request to institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section 512, in each case with respect to Securities of such series. If any record
date is set pursuant to this paragraph, the Holders of Outstanding Securities of such series on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain
Holders after such record date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such series on such
record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be canceled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the
relevant series on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of Securities of the relevant series in the manner set forth in Section 106. 
  

 -10- 

 With respect to any record date set pursuant to this Section, the party hereto which sets such record
date may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day; provided that no such change shall be effective unless notice of the proposed new Expiration Date
is given to the other party hereto in writing, and to each Holder of Securities of the relevant series in the manner set forth in Section 106, on or prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto which set such record date shall be deemed to have initially designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date. 
  
 Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular
Security may do so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount.

  
 Section 105. Notices, Etc. to Trustee and Company. Any
request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, 
  
 (1) the Trustee by any Holder or by the Company shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing (or by facsimile transmissions ((212) 509-3384), provided that oral confirmation of receipt shall have been received) to or with the Trustee at its Corporate Trust Office, Attention:
Corporate Trust Department (Acclaim Entertainment, Inc. Debt Securities), or 
  
 (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company
addressed to it at the address of its principal office specified in the first paragraph of this instrument or at any other address previously furnished in writing to the Trustee by the Company, Attention: Chief Financial Officer. 
  
 Section 106. Notice to Holders; Waiver. Where this Indenture provides
for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at its address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest date (if any), prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver. 
  

 -11- 

 In case by reason of the suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 
  
 Section 107. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act which is required under such Act to be a part of and govern this Indenture, the latter provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act
which may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be. 
  
 Section 108. Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof. 
  
 Section 109.
Successors and Assigns. All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 
  
 Section 110. Separability Clause. In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 111. Benefits of Indenture. Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
  
 Section 112. Governing Law. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW
YORK. 
  
 Section 113. Legal Holidays. In any case where
any Interest Payment Date, Redemption Date or Stated Maturity of any Security or the last date on which a Holder has the right to convert a Security at a particular conversion price shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Securities (other than a provision of any Security which specifically states that such provision shall apply in lieu of this Section)) payment of interest or principal (and premium, if
any) or, if applicable to a particular series of Securities, conversion need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on
the Interest Payment Date or Redemption Date, at the Stated Maturity or on such last day for conversion, as the case may be. 
  
 Section 114. Indenture and Securities Solely Corporate Obligations. No recourse for the payment of the principal of or premium, if any, or interest
on any Security, or 

  

 -12- 

 
for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this
Indenture or in any supplemental indenture or in any Security, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, or director or subsidiary, as such,
past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, 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 consideration for, the execution of this Indenture and the issue of the Securities. 
  
 ARTICLE TWO 
  
 SECURITY FORMS 
  
 Section 201. Forms Generally. The Securities of each series shall be
in substantially the form as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or Depositary therefor or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution thereof. If the form of Securities of any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate
record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 303 for the authentication and delivery of such
Securities. Any such Board Resolution or record of such action shall have attached thereto a true and correct copy of the form of Security referred to therein approved by or pursuant to such Board Resolution. 
  
 The definitive Securities shall be printed, lithographed or engraved on steel
engraved borders or may be produced in any other manner, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities. 
  
 Section 202. Form of Legend for Global Securities. Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered hereunder shall bear a legend in substantially the following form: 
  
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS
SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE 

  

 -13- 

 
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
  
 Section 203. Form of Trustee’s Certificate of Authentication. The Trustee’s certificates of authentication
shall be in substantially the following form: 
  
 This is one of the Securities of
the series designated herein referred to in the within-mentioned Indenture. 
  

			
	 U.S. BANK TRUST NATIONAL
         ASSOCIATION, as Trustee

		
	By:	 	 
	 	 	

	 	 	 Authorized Officer

  
 Section 204.
Form of Conversion Notice. 
  
 The Securities of any series
may provide, in a Board Resolution or in one or more indentures supplemental hereto, for a Form of Conversion Notice. 
  
 ARTICLE THREE 
  
 THE SECURITIES 
  
 Section 301. Amount Unlimited; Issuable in Series. The aggregate principal amount of Securities which may be authenticated and delivered under this
Indenture is unlimited. 
  
 The Securities may be issued in one or
more series. There shall be established in or pursuant to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided, in an Officers’ Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series, 
  
 (1)
the title of the Securities of the series (which shall distinguish the Securities of the series from Securities of any other series); 
  
 (2) any limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to Section
303, are deemed never to have been authenticated and delivered hereunder); 
  

 -14- 

 (3) the Person to whom any interest on a Security of the series shall be payable, if other than the
Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest; 
  

(4) the date or dates on which the principal of any Securities of the series is payable; 
  
 (5) the rate or rates at which any Securities of the series shall bear interest, if any, the date or dates from which any
such interest shall accrue, the Interest Payment Dates on which any such interest shall be payable, whether and under what circumstances interest shall be payable in cash or another form of consideration and the Regular Record Date for any such
interest payable on any Interest Payment Date; 
  
 (6) the place
or places where the principal of and any premium and interest on any Securities of the series shall be payable; 
  
 (7) the period or periods within which, the price or prices at which and the terms and conditions upon which any Securities of the series may be redeemed,
in whole or in part, at the option of the Company and, if other than by a Board Resolution, the manner in which any election by the Company to redeem the Securities shall be evidenced; 
  
 (8) the obligation, if any, of the Company to redeem or purchase any Securities of the series pursuant to any sinking fund
or analogous provisions or at the option of the Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which any Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation; 
  
 (9) if other than
denominations of $1,000 and any integral multiple thereof, the denominations in which any Securities of the series shall be issuable; 
  
 (10) if the amount of principal of or any premium or interest on any Securities of the series may be determined with reference to an index or pursuant to
a formula, the manner in which such amounts shall be determined; 
  
 (11) if other than the currency of the United States of America, the currency, currencies or currency units in which the principal of or any premium or interest on any Securities of the series shall be payable and the manner of determining
the equivalent thereof in the currency of the United States of America for any purpose, including for purposes of the definition of “Outstanding” in Section 101; provided, however, that prior to the issuance of any such Securities,
the Company shall have obtained the written consent of the Trustee, which consent may be withheld in the sole discretion of the Trustee, to the currency, currencies or currency units so established; 
  
 (12) if the principal of or premium, if any, or interest on any Securities of
the series is to be payable, at the election of the Company or the Holder thereof, in one or more currencies or currency units other than that or those in which such Securities are stated to be 

  

 -15- 

 
payable, the currency, currencies or currency units in which the principal of or any premium or interest on such Securities as to which such election is made
shall be payable, the periods within which and the terms and conditions upon which such election is to be made and the amount so payable (or the manner in which such amount shall be determined); provided, however, that prior to the issuance of any
such Securities, the Company shall have obtained the written consent of the Trustee, which consent may be withheld in the sole discretion of the Trustee, to the currency, currencies or currency units so established; 
  
 (13) if other than the entire principal amount thereof, the portion of the
principal amount of any Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 502; 
  
 (14) if the principal amount payable at the Stated Maturity of any Securities of the series will not be determinable as of any one or more dates prior to
the Stated Maturity, the amount which shall be deemed to be the principal amount of such Securities as of any such date for any purpose thereunder or hereunder, including the principal amount thereof which shall be due and payable upon any Maturity
other than the Stated Maturity or which shall be deemed to be Outstanding as of any date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to be the principal amount shall be determined); 
  
 (15) if applicable, that the Securities of the series, in whole or any
specified part, shall be defeasible pursuant to Section 1302 or Section 1303 or both such Sections and, if other than by a Board Resolution, the manner in which any election by the Company to defease such Securities shall be evidenced; 

 
 (16) if applicable, the terms of any right to convert Securities of the
series into shares of Common Stock of the Company or other securities or property; 
  
 (17) if applicable, that any Securities of the series shall be issuable in whole or in part in the form of one or more Global Securities and, in such case, the respective Depositaries for such Global Securities, the
form of any legend or legends which shall be borne by any such Global Security in addition to or in lieu of that set forth in Section 202 and any circumstances in addition to or in lieu of those set forth in Clause (2) of the last paragraph of
Section 305 in which any such Global Security may be exchanged in whole or in part for Securities registered, and any transfer of such Global Security in whole or in part may be registered, in the name or names of Persons other than the Depositary
for such Global Security or a nominee thereof; 
  
 (18) any
addition to or change in the Events of Default which applies to any Securities of the series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to
Section 502; 
  
 (19) any addition to or change in the covenants
set forth in Article Ten which applies to Securities of the series; and 
  
 (20) any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 901(5)). 
  

 -16- 

 All Securities of any one series shall be substantially identical except as to denomination, certificate
number and except as may otherwise be provided in or pursuant to the Board Resolution referred to above and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’ Certificate referred to above or in any such
indenture supplemental hereto. 
  
 If any of the terms of the
series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate setting forth the terms of the series. 
  
 Section 302. Denominations. The Securities of each series shall be issuable only in registered form without coupons and only in such denominations as shall be specified as contemplated by Section 301. In the
absence of any such specified denomination with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof. 
  
 Section 303. Execution, Authentication, Delivery and Dating. The
Securities shall be executed on behalf of the Company by its Chairman of the Board, its Vice Chairman of the Board, its principal financial officer, its President or one of its Vice Presidents, under its corporate seal reproduced thereon attested by
its Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Securities may be manual or facsimile. 
  
 Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities. 
  
 At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the
Company Order shall authenticate and deliver such Securities. If the form or terms of the Securities of the series have been established by or pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel
stating, 
  
 (1) if the form of such Securities has been
established by or pursuant to Board Resolution as permitted by Section 201, that such form has been established in conformity with the provisions of this Indenture; 
  
 (2) if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 301,
that such terms have been established in conformity with the provisions of this Indenture; and 
  

 -17- 

 (3) that such Securities, when authenticated and delivered by the Trustee and issued by the Company in
the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. 
  
 If such form or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant
to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee. 
  
 Notwithstanding the provisions of Section 301 and of the preceding paragraph,
if all Securities of a series are not to be originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order and Opinion of Counsel otherwise required
pursuant to such preceding paragraph at or prior to the authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued.

  
 Each Security shall be dated the date of its authentication.

  
 No Security shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never
issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 309, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture. 
  
 Section 304. Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. 
  
 If temporary Securities of any series are issued, the Company will cause definitive Securities of that series to be prepared
without unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company in a Place of Payment for that series, without charge to 

  

 -18- 

 
the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more definitive Securities of the same series, of any authorized denominations and of like tenor and aggregate principal amount. Until so exchanged, the temporary Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive Securities of such series and tenor. 
  
 Section 305. Registration; Registration of Transfer and Exchange. The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the “Security Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. The Trustee is hereby appointed “Security Registrar” for the purpose of registering Securities and
transfers of Securities as herein provided. 
  
 Subject to any
limitations or requirements of any indenture supplemental hereto relating to the Securities of a particular series, upon surrender for registration of transfer of any Security of a series at the office or agency of the Company in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of like tenor and
aggregate principal amount. 
  
 At the option of the Holder,
Securities of any series may be exchanged for other Securities of the same series, of any authorized denominations and of like tenor and aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency. Whenever
any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 
  
 All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange. 
  
 Every Security presented or surrendered for registration of transfer or for
exchange shall (if so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed, by the Holder thereof or its attorney
duly authorized in writing. 
  
 No service charge shall be made
for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer. 
  

 -19- 

 If the Securities of any series (or of any series and specified tenor) are to be redeemed in part, the
Company shall not be required (A) to issue, register the transfer of or exchange any Securities of that series (or of that series and specified tenor, as the case may be) during a period beginning at the opening of business 15 days before the day of
the mailing of a notice of redemption of any such Securities selected for redemption under Section 1103 and ending at the close of business on the day of such mailing, or (B) to register the transfer of or exchange any Security so selected for
redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part. 
  
 The provisions of Clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 
  
 (1) Each Global Security authenticated under this Indenture shall be registered in the name of the Depositary designated for
such Global Security or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and each such Global Security shall constitute a single Security for all purposes of this Indenture. 
  
 (2) Notwithstanding any other provision in this Indenture, no Global Security
may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any Person other than the Depositary for such Global Security or a nominee thereof unless (A)
such Depositary (i) has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be a clearing agency registered under the Exchange Act, (B) there shall have occurred and be
continuing an Event of Default with respect to such Global Security or (C) there shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 301. 

 
 (3) Subject to Clause (2) above, any exchange of a Global Security for
other Securities may be made in whole or in part, and all Securities issued in exchange for a Global Security or any portion thereof shall be registered in such names as the Depositary for such Global Security shall direct. 
  
 (4) Every Security authenticated and delivered upon registration of transfer
of, or in exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to this Section, Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global Security,
unless such Security is registered in the name of a Person other than the Depositary for such Global Security or a nominee thereof. 
  
 Section 306. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
  
 If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in 

  

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the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
  
 In case any such mutilated, destroyed, lost or stolen Security has become or
is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security at its Maturity; provided that the Holder of such Security may exercise any and all of its rights prior to such
payment. 
  
 Upon the issuance of any new Security under this
Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

  
 Every new Security of any series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities except as otherwise provided as contemplated by Section 301 with respect to any Series of Securities. 
  

Section 307. Payment of Interest; Interest Rights Preserved. Except as otherwise provided as contemplated by Section 301 with respect to any
series of Securities, interest on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest. 
  
 Any interest on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on
the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or (2) below: 
  
 (1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid 

  

 -21- 

 
in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be given to each Holder of Securities of such series in the manner set
forth in Section 106, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons
in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2). 
  
 (2) The Company may make payment of any Defaulted Interest on the Securities
of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange. 
  
 Subject to the foregoing provisions of this Section, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 
  
 In the case of any Security (or any part thereof) which is converted after
any Regular Record Date and on or prior to the next succeeding Interest Payment Date (other than any Security the principal of (or premium, if any, on) which shall become due and payable, whether at Stated Maturity or by declaration of acceleration
prior to such Interest Payment Date), interest whose Stated Maturity is on such Interest Payment Date shall be payable on such Interest Payment Date notwithstanding such conversion and such interest (whether or not punctually paid or duly provided
for) shall be paid to the Person in whose name that Security (or any one or more Predecessor Securities) is registered at the close of business on such Regular Record Date, provided that such person shall surrender to the Company upon conversion an
amount equal to the interest payable on such Interest Payment Date on the principal amount of the Security then being converted. Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Security (or any part
thereof) which is converted, interest whose Stated Maturity is after the date of conversion of such Security (or such part thereof) shall not be payable. 
  
 Section 308. Persons Deemed Owners. Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of
the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of and any premium and (subject to Section 307) any interest on such Security
and for all other 

  

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purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary. 
  
 Section 309.
Cancellation. All Securities surrendered for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and
shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to
the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly canceled by the Trustee.
No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of as directed by
a Company Order. 
  
 Section 310. Computation of Interest.
Except as otherwise specified as contemplated by Section 301 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months. 
  
 ARTICLE FOUR 
  
 SATISFACTION AND DISCHARGE

  
 Section 401. Satisfaction and Discharge of
Indenture. This Indenture shall upon Company Request cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Securities herein expressly provided for), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when 
  
 (1) either 
  
 (A) all Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 1003) have been delivered to the Trustee for cancellation; or 
  
 (B) all such Securities not theretofore delivered to the Trustee for cancellation 
  
 (i) have become due and payable, or 
  
 (ii) will become due and payable at their Stated Maturity within one year, or 
  

 -23- 

 (iii) are to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, and the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose money in an amount sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and any premium and interest to the date of such deposit (in
the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; 
  
 (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 
  
 (3) the Company has delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. 
  
 Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under
Section 607, the obligations of the Trustee to any Authenticating Agent under Section 614 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations of the Trustee under Section
402 and the last paragraph of Section 1003 shall survive. 
  
 Section 402. Application of Trust Money. Subject to the provisions of the last paragraph of Section 1003, all money deposited with the Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal and
any premium and interest for whose payment such money has been deposited with the Trustee. 
  
 ARTICLE FIVE 
  
 REMEDIES 
  
 Section 501. Events of Default. “Event of Default,” wherever used herein with respect to Securities of any series, means any of the events specified in a Board Resolution or Supplemental Indenture with respect to such
series, as well as: 
  
 (1) the entry by a court having
jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or
order adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable Federal or State law, or appointing a
custodian, receiver, 

  

 -24- 

 
liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding up
or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; or 
  
 (2) the commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for relief in respect of the Company in an involuntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or
other similar official of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or
the taking of corporate action by the Company in furtherance of any such action. 
  
 Section 502. Acceleration of Maturity; Rescission and Annulment. If an Event of Default (other than an Event of Default specified in Section 501(1) or 501(2)) with respect to Securities of any series at the
time Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal amount of all the Securities of that series
(or, if any Securities of that series are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be specified by the terms thereof) to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due and payable. If an Event of Default specified in Section 501(1) or 501(2) with respect to Securities of
any series at the time Outstanding occurs, the principal amount of all the Securities of that series (or, if any Securities of that series are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be
specified by the terms thereof) shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 
  
 At any time after such a declaration of acceleration with respect to Securities of any series has been made and before a
judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Securities of that series, by written notice to the Company
and the Trustee, may rescind and annul such declaration and its consequences if 
  
 (1) the Company has paid or deposited with the Trustee a sum sufficient to pay 
  
 (A) all overdue interest on all Securities of that series, 
  

 -25- 

 (B) the principal (or other specified amount in the case of Original Issue Discount Securities) of (and
premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and any interest thereon at the rate or rates prescribed therefor in such Securities, 
  
 (C) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate or rates prescribed therefor in such Securities, and 
  
 (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 
  
 (2) all Events of Default with respect to Securities of that series, other
than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 513. 
  
 No such rescission shall affect any subsequent default or impair any right consequent thereon. 
  
 Section 503. Collection of Indebtedness and Suits for Enforcement by
Trustee. The Company covenants that if 
  
 (1) default is made
in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or 
  
 (2) default is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof, the Company will, upon demand of the
Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and any premium and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  
 If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
  
 Section 504. Trustee May File Proofs of Claim. In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and
the Trustee allowed in any such proceeding. In particular, the Trustee 

  

 -26- 

 
shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to
the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607. 
  
 No provision of this Indenture shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee
to vote in respect of the claim of any Holder in any such proceeding; provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’
or other similar committee. 
  
 Section 505. Trustee May
Enforce Claims without Possession of Securities. All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered. 
  
 Section 506. Application of Money Collected. Any money collected by
the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or any premium or interest, upon presentation of the
Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
  
 FIRST: To the payment of all amounts due the Trustee under Section 607; and 
  
 SECOND: To the payment of the amounts then due and unpaid for principal of and any premium, if any, and interest on the
Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and premium, if any, and
interest, respectively. 
  
 Section 507. Limitation on
Suits. No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

  

 -27- 

 (1) such Holder has previously given written notice to the Trustee of a continuing Event of Default with
respect to the Securities of that series; 
  
 (2) the Holders of
not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
  
 (3) such Holder or Holders have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with such request; 
  
 (4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and 
  
 (5) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of the Outstanding Securities of that series; 
  
 it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all of such Holders.

  
 Section 508. Unconditional Right of Holders to Receive
Principal, Premium and Interest and to Convert. Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and any premium
and (subject to Section 307) interest on such Security on the respective Stated Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date), to convert such Securities in accordance with Article Fourteen and the
terms of any indenture supplemental hereto relating to the Securities of a particular series and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
  
 Section 509. Restoration of Rights and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted. 
  
 Section 510. Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, 

  

 -28- 

 
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 Section 511. Delay or Omission not Waiver. No delay or omission of the
Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee (subject to the limitations contained in this Indenture) or by the Holders, as the
case may be. 
  
 Section 512. Control by Holders. The
Holders of a majority in principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee, with respect to the Securities of such series, provided that 
  
 (1) such direction shall not be in conflict with any rule of law or with this Indenture and the Trustee shall not have determined that the action so directed would be unjustly prejudicial to Holders of Securities of
that series, or any other series, not taking part in such direction, and 
  
 (2) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction or this Indenture. 
  
 Section 513. Waiver of Past Defaults. The Holders of not less than a majority in principal amount of the Outstanding
Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to such series and its consequences, except a default 
  
 (1) in the payment of the principal of or any premium or interest on any
Security of such series, or 
  
 (2) in respect of a covenant or
provision hereof which under Article Nine or the terms of any indenture supplemental hereto relating to Securities of such series cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected.

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

 -29- 

 Section 514. Undertaking for Costs. In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess costs against any
such party litigant, in the manner and to the extent provided in the Trust Indenture Act; provided that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to make such an
assessment in any suit instituted by the Company or in any suit for the enforcement of the right to convert any Security in accordance with Article Fourteen or the terms of any indenture supplemental hereto relating to Securities of a particular
series. 
  
 Section 515. Waiver of Usury, Stay or Extension
Laws. The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  
 ARTICLE SIX 
  
 THE TRUSTEE 
  
 Section 601. Certain Duties and Responsibilities. The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it. Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.

  
 Section 602. Notice of Defaults. If a default occurs
hereunder with respect to Securities of any series which default is known to the Trustee, the Trustee shall give the Holders of Securities of such series notice of such default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any default in the performance, or breach, of any covenant or warranty contained in a Board Resolution or Supplemental Indenture for any series of Securities with respect to Securities of such series, no such notice
to Holders shall be given until at least 30 days after the occurrence thereof. For the purpose of this Section, the term “default” means any event which is, or after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series. 
  

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 Section 603. Certain Rights of Trustee. Subject to the provisions of Section 601: 
  
 (1) the Trustee may rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties; 
  
 (2)
any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order, and any resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution; 
  
 (3) whenever in the administration of this Indenture the Trustee shall deem
it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an
Officers’ Certificate; 
  
 (4) the Trustee may consult with
counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

 
 (5) the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction; 
  
 (6) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company upon reasonable advance notice during normal business hours, personally or by agent or attorney; and 
  
 (7) the Trustee may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 
  
 Section 604. Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating 

  

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Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Securities. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof. 
  
 Section 605. May Hold Securities and Act as Trustee Under Other Indentures. The Trustee, any Authenticating Agent,
any Paying Agent, any Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent. 
  
 Subject to the limitations imposed by the Trust Indenture Act, nothing in this Indenture shall prohibit the Trustee from becoming and acting as trustee
under other indentures under which other securities, or certificates of interest of participation in other securities, of the Company are outstanding in the same manner as if it were not Trustee hereunder. 
  
 Section 606. Money Held in Trust. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company. 
  
 Section 607. Compensation and Reimbursement. The Company agrees

  
 (1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
  
 (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or bad faith; and 
  
 (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
  
 Section 608. Conflicting Interests. If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture. To the extent permitted by such Act, the Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Securities of more than one series. 
  

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 Section 609. Corporate Trustee Required; Eligibility. There shall at all times be one (and only
one) Trustee hereunder with respect to the Securities of each series, which may be Trustee hereunder for Securities of one or more other series. Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and
has (or if the Trustee is a subsidiary of a bank holding company its parent shall have) a combined capital and surplus of at least $100,000,000. If any such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of its supervising or examining authority, then for the purposes of this Section and to the extent permitted by the Trust Indenture Act, the combined capital and surplus of such Person shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time the Trustee with respect to the Securities of any series shall cease to be eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this Article. 
  
 Section 610. Resignation and Removal; Appointment of Successor. No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 611. 
  
 The Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument
of acceptance by a successor Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such series. 
  
 The Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to
the Company. 
  
 If at any time: 
  
 (1) the Trustee shall fail to comply with Section 608 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or 
  
 (2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign after written request therefor by the Company or by any such Holder,
or 
  
 (3) the Trustee shall become incapable of acting or shall
be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (A) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (B) subject to Section 514, any Holder who has been a bona fide Holder of a Security for at least six months 

  

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may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees. 
  
 If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular series) and shall comply with the applicable requirements of Section 611. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 611, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner
required by Section 611, the retiring Trustee may petition, or any Holder who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition, any court of
competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 
  
 The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders of Securities of such series in the manner provided in Section 106. Each notice shall include the name of the successor Trustee with respect to the Securities of such
series and the address of its Corporate Trust Office. 
  
 Section 611. Acceptance of Appointment by Successor. In case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 
  
 In case of the appointment hereunder of a successor Trustee with respect to
the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an 

  

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indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each
such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. 
  
 Upon request of any such successor Trustee, the Company shall execute any and
all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in the first or second preceding paragraph, as the case may be. 
  
 No successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this Article. 
  
 Section 612. Merger, Conversion, Consolidation or Succession to Business. Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee (including the trust created by this Indenture), shall be the
successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated
with the same effect as if such successor Trustee had itself authenticated such Securities. 
  
 Section 613. Preferential Collection of Claims Against Company. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the 

  

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Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or any such
other obligor). 
  
 Section 614. Appointment of Authenticating
Agent. The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon original issue and
upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall
at all times be a corporation organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having (or if the Authenticating
Agent is a subsidiary of a bank holding company its parent shall have) a combined capital and surplus of not less than $100,000,000 and subject to supervision or examination by Federal or State authority. If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section. 
  
 Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent (including the authenticating agency contemplated by this Indenture), shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 
  
 An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or
upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company
and shall give notice of such appointment in the manner provided in Section 106 to all Holders of Securities of the series with respect to which such Authenticating Agent will serve. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and duties of its predecessor 

  

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hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section. 
  
 The Trustee agrees to pay to each
Authenticating Agent from time to time reasonable compensation for its services under this Section, and the Trustee shall be entitled to be reimbursed for such payments, subject to the provisions of Section 607. 
  
 If an appointment with respect to one or more series is made pursuant to this
Section 614, the Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of authentication in the following form: 
  
 This is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture. 
  

			
	 U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee

		
	By:	 	 
	 	 	

	 	 	 As Authenticating Agent

  

			
		
	By:	 	 
	 	 	

	 	 	 Authorized Officer

  

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 ARTICLE SEVEN 
  
 HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY 
  
 Section 701. Company to Furnish Trustee Names and Addresses of Holders. The Company will furnish or cause to be furnished to the Trustee

  
 (1) semi-annually, not later than 15 days after the Regular
Record Date, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders of Securities of each series as of such Regular Record Date, as the case may be, and 
  
 (2) at such other times as the Trustee may request in writing, within 30 days
after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; 
  
 provided that no such list need be furnished by the Company to the Trustee so long as the Trustee is acting as Security Registrar.

  
 Section 702. Preservation of Information; Communications to
Holders. The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 701, if any, and the names and addresses
of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701 upon receipt of a new list so furnished. 
  
 The rights of Holders to communicate with other Holders with respect to their
rights under this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act. 
  
 Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the Trust Indenture Act. 
  
 Section 703. Reports by Trustee. The Trustee shall transmit to Holders
such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. 
  
 Reports so required to be transmitted at stated intervals of not more than 12 months shall be transmitted no later than July
1 in each calendar year, commencing with the first July 1 after the first issuance of Securities pursuant to this Indenture. 
  
 A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities
are listed, with the Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange. 
  

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 Section 704. Reports by Company. The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to the Trust Indenture Act; provided that any
such information, documents or reports required to be filed by the Company with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the same is so required to be filed with the
Commission. 
  
 ARTICLE EIGHT

  
 CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE 
  
 [Reserved] 
  
 ARTICLE NINE 
  
 SUPPLEMENTAL INDENTURES 
  
 Section 901. Supplemental Indentures without Consent of Holders. Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
  
 (1) to evidence the succession of another Person to the Company, or successive successions, and the assumption by any such successor of the covenants of
the Company herein and in the Securities in accordance with the requirements of this Indenture; or 
  
 (2) to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the
benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; or 
  
 (3) to add any additional Events of Default for the benefit of the Holders of
all or any series of Securities (and if such additional Events of Default are to be for the benefit of less than all series of Securities, stating that such additional Events of Default are expressly being included solely for the benefit of such
series); or 
  
 (4) to add to or change any of the provisions of
this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons, or to permit or facilitate the issuance of
Securities in uncertificated form; or 
  
 (5) to add to, change or
eliminate any of the provisions of this Indenture in respect of one or more series of Securities, provided that any such addition, change or 

  

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elimination (A) shall neither (i) apply to any Security of any series created prior to the execution of such supplemental indenture and entitled to the
benefit of such provision nor (ii) modify the rights of the Holder of any such Security with respect to such provision or (B) shall become effective only when there is no such Security Outstanding; or 
  
 (6) to secure the Securities of any one or more series; or 
  
 (7) to establish the form or terms of Securities of any series as permitted
by Sections 201 and 301; or 
  
 (8) to evidence and provide for
the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 611; or 
  
 (9) to make provision with respect to the conversion rights of Holders or Holders of Securities of one or more series, pursuant to the requirements of
Article Fourteen, including providing for the conversion of the Securities into any security (other than the Common Stock of the Company) or Property of the Company; or 
  
 (10) to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any
other provision herein, or to make any other provisions with respect to matters or questions arising under this Indenture, provided that such action pursuant to this Clause (10) shall not adversely affect the interests of the Holders of Securities
of any series in any material respect; or 
  
 (11) to supplement
any of the provisions of the Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant to Articles Four and Thirteen, provided that any such action shall not adversely
affect the interests of the Holders of Securities of such series or any other series of Securities in any material respect. 
  
 Section 902. Supplemental Indentures with Consent of Holders. With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this
Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby, 
  

(1) change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the redemption thereof, or reduce the amount of 

  

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the principal of an Original Issue Discount Security or any other Security which would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 502, or change any Place of Payment where, or the coin or currency in which, any Security or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or modify the provisions of this Indenture with respect to the subordination of such series of Securities in a manner adverse to the Holders of
Securities of such series, or 
  
 (2) reduce the percentage in
principal amount of the Outstanding Securities of any series, the consent of the Holders of which is required for any such supplemental indenture, or the consent of the Holders of which is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture, or 
  
 (3) modify any of the provisions of this Section, Section 513 or Section 1007, except to increase any percentage provided for herein or therein or to
provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; provided, however, that this clause shall not be deemed to require the
consent of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this Section and Section 1007, or the deletion of this proviso, in accordance with the requirements of Sections 611 and 901(8), or

  
 (4) if applicable, make any change that adversely affects the
right to convert any security as provided in Article Fourteen or pursuant to Section 301 (except as permitted by Section 901(9)) or decrease the conversion rate or increase the conversion price of any such security. 
  
 A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other
provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series. 
  
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof. 
  
 Section 903. Execution of Supplemental Indentures. In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Sections 601 and 603) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
  

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 Section 904. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby. 
  
 Section 905.
Conformity with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act. 
  
 Section 906. Reference in Securities to Supplemental Indentures. Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series. 
  
 ARTICLE TEN 
  
 COVENANTS 
  
 Section 1001.
Payment of Principal, Premium and Interest. The Company covenants and agrees for the benefit of each series of Securities that it will duly and punctually pay the principal of and any premium and interest on the Securities of that series in
accordance with the terms of the Securities and this Indenture. 
  
 Section 1002. Maintenance of Office or Agency. The Company will maintain in each Place of Payment for any series of Securities an office or agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange, where Securities of that series may be surrendered for conversion and where notices and demands to or upon the Company in respect of the Securities of that series
and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands. 
  
 The Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that 

  

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no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 
  
 Section 1003. Money For Securities Payments to Be Held in Trust. If
the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of or any premium or interest on any of the Securities of that series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of its action or failure so to act. 
  
 Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, on or prior to each due date of the principal of or any premium or interest on any Securities of that series, deposit with a Paying Agent a sum
sufficient to pay such amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 
  
 The Company will cause each Paying Agent for any series of Securities other
than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent and (2) during the continuance of any default by the Company (or any other obligor upon the Securities of that series) in the making of any payment in respect of the Securities of that series, upon
the written request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of the Securities of that series. 
  
 The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the
Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
  
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the
principal of or any premium or interest on any Security of any series and remaining unclaimed for a period ending on the earlier of the date that is ten Business Days prior to the date such money would escheat to the State or two years after such
principal, premium or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make any 

  

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such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in each Place of Payment, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be repaid to the Company. 
  
 Section 1004. Statement by Officers as to Default. The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an Officers’ Certificate, stating whether
or not to the best knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided
hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. 
  
 Section 1005. Existence. Subject to Article Eight, the Company will do or cause to be done all things necessary to preserve and keep in full force
and effect its existence. 
  
 Section 1006. Opinions as to
Pledged Property. In the case of any series of Securities in respect of which the Company’s obligations are secured pursuant to an indenture supplemental hereto, promptly after the execution and delivery of the supplemental indenture
establishing such series of Securities, the Company shall furnish to the Trustee an Opinion of Counsel stating that, in the opinion of such counsel, such actions have been taken with respect to the recording and filing of this Indenture and such
supplemental indenture relating to such series of Securities and with respect to the execution and filing of any financing statements and continuation statements as are necessary to make effective and perfect the Lien and security interest intended
to be created by this Indenture and such indenture supplemental hereto in favor of the Trustee for the benefit of the Holders of Securities of such series, and reciting the details of such action, or stating that, in the opinion of such counsel, no
such action is necessary to make such Lien and security interest effective. 
  
 If after the first issuance of Securities of a particular series in respect of which the Company’s obligations are secured pursuant to an indenture supplemental hereto the Company shall execute any other
supplemental indenture or other requisite document relating to such series of Securities, promptly after such execution the Company shall furnish to the Trustee an Opinion of Counsel stating that, in the opinion of such counsel, such actions have
been taken with respect to the recording, filing, re-recording and refiling of this Indenture and any such supplemental indentures other requisite documents relating to such series of Securities and with respect to the execution and filing of any
financing statements and continuation statements as are necessary to make effective and perfect the Lien and security interest intended to be created by this Indenture, such indentures supplemental hereto and such other requisite documents in favor
of the Trustee for the benefit of Holders of Securities of such series and reciting the details of such action or referring to prior Opinions of Counsel in which such details are given, or stating that, in the opinion of such counsel, no such action
is necessary to make such Lien and security interest effective. 
  

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 On or before May 1, in each calendar year, beginning with the first calendar year commencing more than
three months after the date of authentication and delivery of any Securities of any series that are secured by any Lien on property, the Company shall furnish to the Trustee an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording, filing, re-recording and re-filing of this Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the execution and filing of any financing
statements and continuation statements as is necessary to maintain the Lien and security interest created by this Indenture and any such indentures supplemental hereto with respect to the property pledged to secure such Securities and reciting the
details of such action or stating that in the opinion of such counsel no such action is necessary to maintain such Lien and security interest. Such Opinion of Counsel shall also describe the recording, filing, re-recording and re-filing of this
Indenture, any indentures supplemental hereto and any other requisite documents and the execution and filing of any financing statements and any other requisite documents and the execution and filing of any financing statements and continuation
statements that will, in the opinion of such counsel, be required to maintain the Lien and security interest of this Indenture and any such indentures supplemental hereto with respect to such property until May 1 in the following calendar year.

  
 Section 1007. Waiver of Certain Covenants. Except as
otherwise specified as contemplated by Section 301 for Securities of such series, the Company may, with respect to the Securities of any series, omit in any particular instance to comply with any term, provision or condition set forth in any
covenant provided pursuant to Section 301(19), 901(2) or 901(7) for the benefit of the Holders of such series if before the time for such compliance the Holders of at least 50% in principal amount of the Outstanding Securities of such series shall,
by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain in full force and effect. 
  
 ARTICLE ELEVEN 
  
 REDEMPTION OF SECURITIES

  
 Section 1101. Applicability of Article. Securities
of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 301 for such Securities) in accordance with this Article. 
  
 Section 1102. Election to Redeem; Notice to Trustee. The election of
the Company to redeem any Securities shall be evidenced by a Board Resolution or in another manner specified as contemplated by Section 301 for such Securities. 
  

Section 1103. Selection by Trustee of Securities to Be Redeemed. If less than all the Securities of any series are to be redeemed (unless all
the Securities of such series 

  

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and of a specified tenor are to be redeemed or unless such redemption affects only a single Security), the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for
the selection for redemption of a portion of the principal amount of any Security of such series, provided that the unredeemed portion of the principal amount of any Security shall be in an authorized denomination (which shall not be less than the
minimum authorized denomination) for such Security. If less than all the Securities of such series and of a specified tenor are to be redeemed (unless such redemption affects only a single Security), the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series and specified tenor not previously called for redemption in accordance with the preceding sentence. 
  
 If any Security selected for partial redemption is converted in part before
termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security shall be deemed (so far as may be) to be the portion selected for redemption. Securities which have been converted
during a selection of Securities to be redeemed shall be treated by the Trustee as Outstanding for the purpose of such selection. 
  
 The Trustee shall promptly notify the Company in writing of the Securities selected for redemption as aforesaid and, in case of any Securities selected
for partial redemption as aforesaid, the principal amount thereof to be redeemed. 
  
 The provisions of the two preceding paragraphs shall not apply with respect to any redemption affecting only a single Security, whether such Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the principal amount of the Security shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Security. 
  
 For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed. 

 
 Section 1104. Notice of Redemption. Notice of redemption shall be
given by first-class mail, postage prepaid, and shall be in the form as specified in a Board Resolution or Supplemental Indenture for any series of Securities hereunder. 
  
 Section 1105. Payment of Redemption Price. Payment of the Redemption Price shall be made as provided in a Board
Resolution or Supplemental Indenture for any series of Securities hereunder. 
  
 Section 1106. Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption
Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) 

  

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such Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid
by the Company at the Redemption Price, together with accrued interest to the Redemption Date; provided, however, that, unless otherwise specified as contemplated by Section 301, installments of interest whose Stated Maturity is on or prior
to the Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 307.

  
 If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security. 
  
 Section 1107. Securities Redeemed in Part. Any Security which is to be redeemed only in part shall be surrendered at
a Place of Payment therefor (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 its attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
  
 ARTICLE TWELVE 
  
 SINKING FUNDS 
  
 Section 1201. Applicability of Article. The provisions of this Article shall be applicable to any sinking fund for
the retirement of Securities of any series except as otherwise specified as contemplated by Section 301 for such Securities. 
  
 The minimum amount of any sinking fund payment provided for by the terms of any Securities is herein referred to as a “mandatory sinking fund
payment,” and any payment in excess of such minimum amount provided for by the terms of such Securities is herein referred to as an “optional sinking fund payment.” If provided for by the terms of any Securities, the cash amount of
any sinking fund payment may be subject to reduction as provided in Section 1202. Each sinking fund payment shall be applied to the redemption of Securities as provided for by the terms of such Securities. 
  
 Section 1202. Satisfaction of Sinking Fund Payments with Securities.
The Company (1) may deliver Outstanding Securities of a series (other than any previously called for redemption) and (2) may apply as a credit Securities of a series which have been redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to any Securities of
such series required to be made pursuant to the terms of such Securities as and to the extent 

  

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provided for by the terms of such Securities; provided that the Securities to be so credited have not been previously so credited. The Securities to
be so credited shall be received and credited for such purpose by the Trustee at the Redemption Price, as specified in the Securities so to be redeemed, for redemption through operation of the sinking fund and the amount of such sinking fund payment
shall be reduced accordingly. 
  
 Section 1203. Redemption of
Securities for Sinking Fund. Not less than 60 days prior to each sinking fund payment date for any Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment
for such Securities pursuant to the terms of such Securities, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities pursuant to
Section 1202 and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days prior to each such sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in
the manner specified in Section 1103 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections 1106 and 1107. 
  
 ARTICLE THIRTEEN 
  
 DEFEASANCE AND COVENANT DEFEASANCE 
  
 Section 1301. Company’s Option to Effect Defeasance or Covenant Defeasance. The Company may elect, at its option at any time, to have Section
1302 or Section 1303 applied to any Securities or any series of Securities, as the case may be, designated pursuant to Section 301 as being defeasible pursuant to such Section 1302 or 1303, in accordance with any applicable requirements provided
pursuant to Section 301 and upon compliance with the conditions set forth below in this Article. Any such election shall be evidenced by a Board Resolution or in another manner specified as contemplated by Section 301 for such Securities.

  
 Section 1302. Defeasance and Discharge. Upon the
Company’s exercise of its option (if any) to have this Section applied to any Securities or any series of Securities, as the case may be, the Company shall be deemed to have been discharged from its obligations with respect to such Securities
as provided in this Section on and after the date the conditions set forth in Section 1304 are satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by such Securities and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), subject to the following which shall survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of such Securities to receive, solely from the trust fund described
in Section 1304 and as more fully set forth in such Section, payments in respect of the principal of and any premium and interest on such Securities when payments are due, (2) the Company’s obligations with respect to such Securities under
Sections 304, 305, 306, 1002 and 1003, and, if applicable, 

  

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Article Fourteen and the provisions of any indenture supplemental hereto relating to conversion of such Securities, (3) the rights, powers, trusts, duties
and immunities of the Trustee hereunder and (4) this Article. Subject to compliance with this Article, the Company may exercise its option (if any) to have this Section applied to any Securities notwithstanding the prior exercise of its option (if
any) to have Section 1303 applied to such Securities. 
  
 Section 1303. Covenant Defeasance. Upon the Company’s exercise of its option (if any) to have this Section applied to any Securities or any series of Securities, as the case may be, (1) the Company shall be released from its
obligations under any covenants provided pursuant to Section 301(19), 901(2) or 901(7) for the benefit of the Holders of such Securities and (2) the occurrence of any event with respect to any such covenants provided pursuant to Section 301(19),
901(2) or 901(7), shall be deemed not to be or result in an Event of Default, in each case with respect to such Securities as provided in this Section on and after the date the conditions set forth in Section 1304 are satisfied (hereinafter called
“Covenant Defeasance”). For this purpose, such Covenant Defeasance means that, with respect to such Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in
any such specified Section, whether directly or indirectly by reason of any reference elsewhere herein to any such Section or Article or by reason of any reference in any such Section or Article to any other provision herein or in any other
document, but the remainder of this Indenture and such Securities shall be unaffected thereby. 
  
 Section 1304. Conditions to Defeasance or Covenant Defeasance. The following shall be the conditions to the application of Section 1302 or Section 1303 to any Securities or any series of Securities, as the case
may be: 
  
 (1) The Company shall irrevocably have deposited or
caused to be deposited with the Trustee (or another trustee which satisfies the requirements contemplated by Section 609 and agrees to comply with the provisions of this Article applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely to, the benefits of the Holders of such Securities, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (C) a combination thereof, in each case sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or any such other qualifying trustee) to pay and discharge, the principal
of and any premium and interest on such Securities on the respective Stated Maturities, in accordance with the terms of this Indenture and such Securities. As used herein, “U.S. Government Obligation” means (x) any security which is (i) a
direct obligation of the United States of America for the payment of which the full faith and credit of the United States of America is pledged or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case (i) or (ii), is not callable or redeemable at the option of the issuer
thereof, and (y) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any U.S. Government Obligation which is specified in Clause 

  

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(x) above and held by such bank for the account of the holder of such depositary receipt, or with respect to any specific payment of principal of or interest
on any U.S. Government Obligation which is so specified and held, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal or interest evidenced by such depositary receipt. 
  
 (2) In the event of an election to have Section 1302 apply to any Securities or any series of Securities, as the case may be, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date of this instrument, there has been a change in the applicable
Federal income tax law, in either case (A) or (B) to the effect that, and based thereon such opinion shall confirm that, the Holders of such Securities will not recognize gain or loss for Federal income tax purposes as a result of the deposit,
Defeasance and discharge to be effected with respect to such Securities and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit, Defeasance and discharge were not to
occur. 
  
 (3) In the event of an election to have Section 1303
apply to any Securities or any series of Securities, as the case may be, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of such Securities will not recognize gain or loss for Federal income tax
purposes as a result of the deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit
and Covenant Defeasance were not to occur. 
  
 (4) The Company
shall have delivered to the Trustee an Officers’ Certificate to the effect that neither such Securities nor any other Securities of the same series, if then listed on any securities exchange, will be delisted as a result of such deposit.

  
 (5) No event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to such Securities or any other Securities shall have occurred and be continuing at the time of such deposit or, with regard to any such event specified in Sections 501(5) and (6), at any time on
or prior to the 90th day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until after such 90th day). 
  
 (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the Trust Indenture Act
(assuming all Securities are in default within the meaning of such Act). 
  
 (7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which the Company is a party or by which it is bound.

  
 (8) Such Defeasance or Covenant Defeasance shall not result in
the trust arising from such deposit constituting an investment company within the meaning of the 

  

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Investment Company Act unless such trust shall be registered under such Act or exempt from registration thereunder. 
  
 (9) The Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant Defeasance have been complied with. 
  
 Section 1305. Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions. Subject
to the provisions of the last paragraph of Section 1003, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee (solely for purposes of this Section and Section 1306, the
Trustee and any such other trustee are referred to collectively as the “Trustee”) pursuant to Section 1304 in respect of any Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities
and this Indenture, to the payment, either directly or through any such Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon in
respect of principal and any premium and interest, but money so held in trust need not be segregated from other funds except to the extent required by law. 
  
 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1304 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of Outstanding Securities. 
  
 Anything in this Article to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money or U.S. Government Obligations held by it as provided in Section 1304 with respect to any Securities which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with
respect to such Securities. 
  
 Section 1306.
Reinstatement. If the Trustee or the Paying Agent is unable to apply any money in accordance with this Article with respect to any Securities by reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations under this Indenture and such Securities from which the Company has been discharged or released pursuant to Section 1302 or 1303 shall be revived and reinstated as though no deposit had
occurred pursuant to this Article with respect to such Securities, until such time as the Trustee or Paying Agent is permitted to apply all money held in trust pursuant to Section 1305 with respect to such Securities in accordance with this Article;
provided, however, that if the Company makes any payment of principal of or any premium or interest on any such Security following such reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the Holders of
such Securities to receive such payment from the money so held in trust. 
  

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 ARTICLE FOURTEEN 
  
 CONVERSION OF SECURITIES

  
 Section 1401. Applicability of Article. The
provisions of this Article shall be applicable to the Securities of any series which are convertible into shares of Common Stock of the Company, and the issuance of such shares of Common Stock upon the conversion of such Securities, except as
otherwise specified as contemplated by Section 301 for the Securities of such series. 
  
 Section 1402. Notice of Certain Corporate Actions. The Company shall give such notice to Holders as shall be specified in a Board Resolution or Supplemental Indenture for any series of Securities hereunder.

  
 Section 1403. Reservation of Shares of Common Stock.
The Company shall at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock, for the purpose of effecting the conversion of Securities, the full number of shares of Common Stock of the
Company then issuable upon the conversion of all outstanding Securities of any series that has conversion rights. 
  
 Section 1404. Payment of Certain Taxes upon Conversion. Except as provided in the next sentence, the Company will pay any and all taxes that may be
payable in respect of the issue or delivery of shares of its Common Stock on conversion of Securities pursuant hereto. The Company shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issue
and delivery of shares of its Common Stock in a name other than that of the Holder of the Security or Securities to be converted, and no such issue or delivery shall be made unless and until the Person requesting such issue has paid to the Company
the amount of any such tax, or has established, to the satisfaction of the Company, that such tax has been paid. 
  
 Section 1405. Nonassessability. The Company covenants that all shares of its Common Stock which may be issued upon conversion of Securities will
upon issue in accordance with the terms hereof be duly and validly issued and fully paid and nonassessable. 
  
 Section 1406. Duties of Trustee Regarding Conversion. Neither the Trustee nor any conversion agent shall at any time be under any duty or
responsibility to any Holder of Securities of any series that is convertible into Common Stock of the Company to determine whether any facts exist which may require any adjustment of the conversion price, or with respect to the nature or extent of
any such adjustment when made, or with respect to the method employed, whether herein or in any supplemental indenture, any resolutions of the Board of Directors or written instrument executed by one or more officers of the Company provided to be
employed in making the same. Neither the Trustee nor any conversion agent shall be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock of the Company, or of any securities or property, which may at
any time be issued or delivered upon the conversion of any Securities and neither the Trustee nor any conversion agent makes any representation with respect thereto. Subject to the provisions of Section 601, neither the 

  

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Trustee nor any conversion agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of its Common Stock or stock
certificates or other securities or property upon the surrender of any Security for the purpose of conversion or to comply with any of the covenants of the Company contained in this Article Fourteen or in the applicable supplemental indenture,
resolutions of the Board of Directors or written instrument executed by one or more duly authorized officers of the Company. 
  
 Section 1407. Repayment of Certain Funds upon Conversion. Any funds which at any time shall have been deposited by the Company or on its behalf
with the Trustee or any other paying agent for the purpose of paying the principal of, and premium, if any, and interest, if any, on any of the Securities (including, but not limited to, funds deposited for the sinking fund referred to in Article
Twelve hereof and funds deposited pursuant to Article Thirteen hereof) and which shall not be required for such purposes because of the conversion of such Securities as provided in this Article Fourteen shall after such conversion be repaid to the
Company by the Trustee upon the Company’s written request. 
  
 ARTICLE FIFTEEN 
  
 COLLATERAL 
  
 Section 1501.
Releases of Collateral. In case this Indenture or any indenture supplemental hereto shall provide for the release of any collateral from the Lien hereof or thereof in favor of the Holders of Securities of any series the Trustee shall
release the same from the Lien of this Indenture or such indenture supplemental hereto upon receipt by the Trustee of an application of the Company requesting such release and describing the Property to be so released, together with: 
  
 (a) an Officers’ Certificate, dated not more than 30 days prior to the
date of the application for such release, stating in substance as follows: 
  
 (i) the Company has sold or disposed of or has contracted to sell or dispose of the Property so requested to be released or the Company is otherwise entitled to the release of such Property, and in any such case
identifying the section or sections of this Indenture or any indenture supplemental hereto under which the Company is entitled to the release of such Property; 
  

(ii) that, in the opinion of the signer, the security afforded by this Indenture and such indenture supplemental hereto will not be
impaired by such release in contravention of the provisions hereof and thereof, and, in the case of Property to be disposed of by the Company, unless the Property (or comparable Property) is to be leased or rented by the Company, the Property to be
released is not necessary for the efficient operation of its remaining Property that is used or useful in connection with its business; 
  
 (iii) in case it shall be stated pursuant to clause (b)(i) that such Property is to be sold or disposed of, either (1) that the Company
has disposed of or will dispose of, the 

  

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Property so to be released for a consideration representing, in the opinion of the signers, its Fair Market Value, which consideration may consist of any one
or more of the following: (A) cash, (B) obligations secured by a purchase money Lien upon the Property so to be released, and (C) any other Property that, upon acquisition thereof by the Company, would be subject to the Lien of this Indenture, and
such indenture supplemental hereto subject to no Lien other than Liens permitted hereby and thereby, all of such consideration to be briefly described in the certificate, or (2) that the Property so to be released has been or is to be disposed of
without consideration (or for consideration less than Fair Market Value), in which event such certificate shall state the reason for its disposition at less than Fair Market Value; 
  
 (iv) that no Default or Event of Default exists; 
  
 (v) the Fair Market Value, in the opinion of the signers, of
the Property to be released; provided, however, that it shall not be necessary under this clause (v) to state the Fair Market Value of any Property whose Fair Market Value is certified in a certificate of an Independent Appraiser or
Independent Financial Advisor under subdivision (b) of this Section; 
  
 (vi) that all conditions precedent provided in this Indenture and any indenture supplemental hereto relating to the release of the Property in question have been complied with; and 
  
 (vii) whether the aggregate of the Fair Market Value of the
Property to be released and the Fair Market Value of all other Property released since the commencement of the then current calendar year (as previously certified to the Trustee in connection with releases) is 10% or more of the aggregate principal
amount of all Securities of such series then outstanding and whether the Fair Market Value of the Property to be released is at least $25,000 and at least 1% of the aggregate principal amount of all Securities of such series at the time outstanding
and if all the facts specified in this clause (vii) are present, that a certificate of an Independent Appraiser or Independent Financial Advisor as to the Fair Market Value of the Property to be released will be furnished under subdivision (c) of
this Section; 
  
 (b) in case it shall be stated pursuant to
clause (a)(vii) that the same shall be furnished, a certificate of an Independent Appraiser, or if such Property consists of securities being pledged as collateral, a certificate of an Independent Financial Advisor, dated not more that 30 days prior
to the application for such release, stating: 
  
 (1) the Fair Market Value, in the opinion of the signer, of the Property to be released; and 
  
 (2) that such release, in the opinion of the signer, will not impair the security under this Indenture and any indenture supplemental
hereto in contravention of the terms hereof and thereof; 
  

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 (c) any Property other than cash or obligations received or to be received as consideration for any
Property so to be released or, if the Property so to be released is subject to a Prior Lien, a certificate of the trustee, mortgagee or other holder of such Prior Lien that it has received such money or obligations received and has been irrevocably
authorized by the Company to pay over to the Trustee any balance of such money or obligations, remaining after the discharge of such Prior Lien; and, if any Property other than cash or obligations is included in the consideration for any Property so
to be released, such instruments of conveyance, assignment and transfer, if any, as may be necessary, in the Opinion of Counsel hereinafter referred to, to subject to the Lien of this Indenture and any such indenture supplemental hereto all the
right, title and interest of the Company in and to such Property; 
  
 (d) an Opinion of Counsel substantially to the effect (i) either (1) that such instruments of conveyance, assignment and transfer as have been or are then delivered to the Trustee are sufficient to subject to the Lien of this Indenture and
any such indenture supplemental hereto all the right, title and interest of the Company in and to any Property, other than cash and obligations, that is included in the consideration for the Property so to be released, or (2) that no instruments of
conveyance, assignment or transfer are necessary for such purpose, (ii) that the Company has corporate power to own all Property included in the consideration for such release, and (iii) that all conditions precedent herein provided and provided in
any indenture supplemental hereto relating to the release of the Property in question have been complied with. 
  

 -55- 

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

			
	 ACCLAIM ENTERTAINMENT, INC.

		
	By:	 	/S/    GERARD F. AGOGLIA
	 	 	

	 	 	 Title:   Chief Financial Officer

  

			
	 U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee 

		
	By:	 	/S/    PATRICK J. CROWLEY
	 	 	

	 	 	 Title:   Vice President

  

 -56-First Supplemental Indenture of the Company to U.S. Bank Trust National

 EXHIBIT 10.45 
  
 ACCLAIM ENTERTAINMENT, INC. 
  

TO 
  
 U.S. BANK TRUST NATIONAL ASSOCIATION, 
  
 AS TRUSTEE 
  

  
 FIRST SUPPLEMENTAL INDENTURE 
  
 Dated February 17, 2004 
  
 $25,000,000 
  
 9% Senior Subordinated Convertible Notes due 2007 
  

  
 Supplemental to Indenture Dated February 17, 2004 
  
  

 ACCLAIM ENTERTAINMENT, INC. 
 to 
 U.S. BANK TRUST NATIONAL ASSOCIATION, 
 AS TRUSTEE 
  
 FIRST SUPPLEMENTAL INDENTURE 
  
 9% Senior Subordinated Convertible Notes due 2007 
  
 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

	 ARTICLE ONE DEFINITIONS
	  	2
	 	 	 Section 1.01.
	  	 Definitions
	  	2
	 ARTICLE TWO FORM OF NOTES
	  	17
	 	 	 Section 2.01.
	  	 Form of Notes
	  	17
	 	 	 Section 2.02.
	  	 Form of Face of Notes
	  	17
	 	 	 Section 2.03.
	  	 Form of Reverse of Notes
	  	20
	 	 	 Section 2.04.
	  	 Form of Conversion Notice
	  	23
	 ARTICLE THREE THE NOTES
	  	24
	 	 	 Section 3.01.
	  	 Establishment of Series; Amount
	  	24
	 	 	 Section 3.02.
	  	 Defeasance
	  	24
	 ARTICLE FOUR REMEDIES
	  	25
	 	 	 Section 4.01.
	  	 Events of Default
	  	25
	 ARTICLE FIVE COVENANTS
	  	26
	 	 	 Section 5.01.
	  	 Limitations on Certain Indebtedness
	  	26
	 	 	 Section 5.02.
	  	 Investment Company Act
	  	26
	 	 	 Section 5.03.
	  	 Limitations on Asset Sales, Liquidations, Etc.; Certain Matters
	  	26
	 	 	 Section 5.04.
	  	 Limitations on Liens
	  	27
	 	 	 Section 5.05.
	  	 Certain Obligations
	  	27
	 	 	 Section 5.06.
	  	 Notice of Defaults
	  	27
	 	 	 Section 5.07.
	  	 Further Documentation; Pledge of Instruments and Chattel Paper
	  	27
	 	 	 Section 5.08.
	  	 Indemnification
	  	28
	 	 	 Section 5.09.
	  	 Maintenance of Records
	  	28
	 	 	 Section 5.10.
	  	 Limitation on Liens on Collateral
	  	28
	 	 	 Section 5.11.
	  	 Limitations on Dispositions of Collateral
	  	29
	 	 	 Section 5.12.
	  	 Performance of Contracts and Agreements Giving Rise to Accounts
	  	29
	 	 	 Section 5.13.
	  	 Further Identification of Collateral
	  	29
	 	 	 Section 5.14.
	  	 Notices
	  	29
	 	 	 Section 5.15.
	  	 Changes in Locations, Name, Etc.
	  	29
	 	 	 Section 5.16.
	  	 Additional Collateral in Respect of Pledged Securities
	  	29

  

 -i- 

							
	 	 	 Section 5.17.
	  	 Limitations on Dividends and Other Share Payments
	  	30
	 	 	 Section 5.18.
	  	 Limitation on Certain Issuances of Securities
	  	31
	 ARTICLE SIX PLEDGE, SECURITY INTEREST AND MORTGAGE; COLLATERAL AND MORTGAGED PROPERTY
	  	31
	 ARTICLE SEVEN REPURCHASE UPON A REPURCHASE EVENT
	  	31
	 	 	 Section 7.01.
	  	 Repurchase Right
	  	31
	 	 	 Section 7.02.
	  	 Notices; Method of Exercising Repurchase Rights, Etc.
	  	32
	 	 	 Section 7.03.
	  	 Other
	  	33
	 	 	 Section 7.04.
	  	 Form of Company Notice
	  	33
	 	 	 Section 7.05.
	  	 Form of Holder Notice
	  	34
	 ARTICLE EIGHT CONVERSION
	  	35
	 	 	 Section 8.01.
	  	 Right to Convert
	  	35
	 	 	 Section 8.02.
	  	 Exercise of Conversion Right; Issuance of Common Stock on Conversion
	  	36
	 	 	 Section 8.03.
	  	 Adjustment of Conversion Price
	  	39
	 (k)
	 	 Additional Reductions in Conversion Price
	  	45
	 	 	 Section 8.04.
	  	 Effect of Reclassification, Consolidation, Merger or Sale
	  	45
	 	 	 Section 8.05.
	  	 Reservation of Shares; Shares to Be Fully Paid; Listing of Common Stock
	  	47
	 	 	 Section 8.06.
	  	 Notice to Holders Prior to Certain Actions
	  	47
	 	 	 Section 8.07.
	  	 Limitation on Conversions
	  	48
	 ARTICLE NINE OPTIONAL REDEMPTION
	  	49
	 	 	 Section 9.01.
	  	 Optional Redemption Right
	  	49
	 	 	 Section 9.02.
	  	 Optional Redemption Notice
	  	50
	 	 	 Section 9.03.
	  	 Payment of Optional Redemption Price
	  	52
	 	 	 Section 9.04.
	  	 Redemption to Be Pro Rata; Minimum Amount
	  	52
	 	 	 Section 9.05.
	  	 Effect of Conversions; Limitation on Redemptions
	  	52
	 	 	 Section 9.06.
	  	 No Prepayment
	  	53
	 ARTICLE TEN SUBORDINATION
	  	53
	 	 	 Section 10.01.
	  	 Agreement to Subordinate
	  	53
	 	 	 Section 10.02
	  	 Liquidation, Dissolution, Bankruptcy
	  	53
	 	 	 Section 10.03
	  	 Senior Indebtedness
	  	54
	 	 	 Section 10.04.
	  	 Acceleration of Payment of Notes and Exercise of Remedies
	  	54
	 	 	 Section 10.05.
	  	 When Distribution Must Be Paid Over
	  	54
	 	 	 Section 10.06.
	  	 Subrogation
	  	54
	 	 	 Section 10.07.
	  	 Relative Rights
	  	55
	 	 	 Section 10.08.
	  	 Subordination May Not Be Impaired by Company
	  	55
	 	 	 Section 10.09.
	  	 Reinstatement
	  	55
	 	 	 Section 10.10.
	  	 Proofs of Claim
	  	55
	 	 	 Section 10.11.
	  	 Non-Impairment
	  	56
	 	 	 Section 10.12.
	  	 No Modification
	  	56
	 	 	 Section 10.13.
	  	 Waivers; Reliance by Holders of Senior Indebtedness
	  	57
	 	 	 Section 10.14.
	  	 Enforcement of Rights
	  	57
	 	 	 Section 10.15.
	  	 Prohibition of Payment of Notes
	  	57

  

 -ii- 

							
	 	 	 Section 10.16
	  	 Trustee Not Charged with Knowledge of Prohibition
	  	57
	 	 	 Section 10.17
	  	 Rights of Trustee as Holder of Senior Indebtedness
	  	57
	 	 	 Section 10.18
	  	 Trustee Not Fiduciary for Holders of Senior Indebtedness
	  	58
	 ARTICLE ELEVEN SUNDRY PROVISIONS
	  	58
	 	 	 Section 11.01.
	  	 Trustee Not Responsible for Recitals
	  	58
	 	 	 Section 11.02.
	  	 Effect of Headings and Table of Contents
	  	58
	 	 	 Section 11.03.
	  	 Successors and Assigns
	  	58
	 	 	 Section 11.04.
	  	 Separability Clause
	  	58
	 	 	 Section 11.05.
	  	 Benefits of Supplemental Indenture
	  	58
	 	 	 Section 11.06.
	  	 Governing Law
	  	58
	 	 	 Section 11.07.
	  	 Counterparts
	  	58
	 	 	 Section 11.08.
	  	 Enforceable Obligation
	  	58
	 	 	 Section 11.09.
	  	 Certain Performance
	  	59
	 	 	 Section 11.10.
	  	 Amendments and Waivers
	  	59
	 	 	 Section 11.11.
	  	 Reference to and Effect on Original Indenture
	  	59
	 	 	 Section 11.12.
	  	 Notices
	  	59
	 	 	 Section 11.13.
	  	 Payment of Notes on Repurchase; Deposit of Repurchase Price, Etc.
	  	60
	 	 	 Section 11.14
	  	 Certain Determinations
	  	61

  

			
	 SCHEDULE I
	  	 Certain Permitted Indebtedness

		
	 SCHEDULE II
	  	 Certain Pledged Securities

		
	 SCHEDULE III
	  	 Subordination Of Indebtedness

  

 -iii- 

 ACCLAIM ENTERTAINMENT, INC. 
 TO 
 U.S. BANK TRUST NATIONAL ASSOCIATION, AS TRUSTEE 
  
 FIRST SUPPLEMENTAL INDENTURE 
  
 9% Senior Subordinated Convertible Notes due 2007 
  
 FIRST SUPPLEMENTAL INDENTURE, dated February 17, 2004, between
ACCLAIM ENTERTAINMENT, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”), having its principal executive office at One Acclaim Plaza, Glen Cove, New York, 11542,
and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association duly organized and existing under the laws of the United States of America, as Trustee under the Original Indenture mentioned below (herein called the
“Trustee”). 
  
 RECITALS OF THE COMPANY

  
 The Company and the Trustee have heretofore entered into
an Indenture, dated February 17, 2004 (hereinafter called the “Original Indenture”), to provide, among other things, for the issuance from time to time of Securities, unlimited as to principal amount, all as provided in the Original
Indenture. 
  
 The Securities authorized hereby are the first
series of Securities to be authorized under the Original Indenture. 
  
 Section 901 of the Original Indenture provides that, without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time or from time to time, may enter into one or more indentures
supplemental to the Original Indenture, in form satisfactory to the Trustee, for the purpose of, among other things, establishing the form or terms of Securities of any series as permitted by Sections 201 and 301 of the Original Indenture, to add
to, change or eliminate any provisions of the Original Indenture in respect of any one or more series of Securities, to secure the Securities of one or more series or to make provision with respect to the conversion rights of Holders of Securities
of one or more series. 
  
 The Company desires to issue from time
to time its 9% Senior Subordinated Convertible Notes due 2007, and to add to the provisions of the Original Indenture certain provisions with respect to such Notes. 
  
 The entry into this Supplemental Indenture by the parties hereto is in all respects authorized by the provisions of the
Original Indenture. 
  
 All things necessary to make this
Supplemental Indenture a valid agreement of the Company in accordance with its terms have been done. 
  

 NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 
  
 For and in consideration of the premises and the purchase of the Notes by the
Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Notes, without preference, priority or distinction of any of the Notes over any of the others by reason of priority in time of
issuance or otherwise, except as otherwise provided in the Original Indenture or this Supplemental Indenture, as follows: 
  
 ARTICLE ONE 
  
 DEFINITIONS 
  
 Section 1.01. Definitions. (a) For all purposes of this Supplemental Indenture, except as otherwise herein expressly provided or unless the context
otherwise requires: 
  
 (1) The terms defined in this Article have
the meanings assigned to them in this Article, and include the plural as well as the singular; 
  
 (2) terms used herein in capitalized form and defined in the Original Indenture and not otherwise defined herein shall have the respective meanings specified in the Original Indenture; 
  
 (3) the words “herein”, “hereof” and
“hereunder” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision of this Supplemental Indenture; 

 
 (4) the terms defined in the introductory paragraph hereof and in the
first paragraph of the Recitals of the Company herein shall have the respective meanings specified therein; 
  
 (5) The following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms
defined): 
  
 “Accounts” means all rights to payment for
goods sold or leased or for services rendered, whether or not such rights have been earned by performance. 
  
 “Aggregation Persons” shall have the meaning provided in Section 8.07(a). 
  
 “AMEX” means the American Stock Exchange, Inc. 
  
 “Applicable Rate” means 9 percent per annum; provided, however, that if an Event of Default shall
have occurred, then the Applicable Rate shall be increased to the Default Rate during the period from the date of such Event of Default until the date no Event of Default 

  

 -2- 

 
is continuing (or in either such case such lesser rate as shall be the highest rate permitted by applicable law). 
  
 “Business Day” means any day other than a Saturday, Sunday or a day
on which commercial banks in The City of New York are authorized or required by law or executive order to remain closed. 
  
 “Chattel Paper” shall have the meaning assigned to such term under the Code. 
  
 “Code” means the Uniform Commercial Code as in effect from time to time in the State of New York.

  
 “Collateral” shall have the meaning assigned to such
term in the security agreement or supplemental indenture hereto to be executed and delivered as contemplated by Section 5(h) of the Note Purchase Agreement, the form and contents of which are set forth on Annex VII attached thereto subject to the
consent and final approval of GMAC. 
  
 “Common Stock”
includes the Company’s Common Stock, $.02 par value, and the related Preferred Share Purchase Rights (and any similar rights issued with respect to the Common Stock), as authorized on the date hereof, and any other securities into which or for
which the Common Stock or the related Preferred Share Purchase Rights (and any similar rights issued with respect to the Common Stock) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or
otherwise and any stock (other than Common Stock) and other securities of the Company or any other Person which the Holders at any time shall be entitled to receive, or shall have received, on the conversion of the Notes, in lieu of or in addition
to Common Stock. 
  
 “Common Stock Equivalent” means any
warrant, option, subscription or purchase right with respect to shares of Common Stock, any security convertible into, exchangeable for, or otherwise entitling the holder thereof to acquire, shares of Common Stock or any warrant, option,
subscription or purchase right with respect to any such convertible, exchangeable or other security. 
  
 “Company” shall have the meaning provided in the first paragraph of this Supplemental Indenture. 
  
 “Company Certificate” means a certificate of the Company signed by
an Officer. 
  
 “Company Notice” means a Company Notice
in the form set forth in Section 7.04. 
  
 “Contracts”
shall have the meaning assigned to such term under the Code. 
  
 “Conversion Date” means the date on which a Conversion Notice is given in accordance with Section 8.02(a). 
  

 -3- 

 “Conversion Notice” means a duly executed Notice of Conversion of 9% Senior Subordinated
Convertible Note due 2007 substantially in the form set forth in Section 2.04. 
  
 “Conversion Price” means $0.65, subject to adjustment as provided in Section 8.03. 
  
 “Current Market Price” shall mean the arithmetic average of the daily Market Prices per share of Common Stock for the ten consecutive Trading
Days immediately prior to the date in question; provided, however, that (1) if the “ex” date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to
the Conversion Price pursuant to Section 8.03(a), (b), (c), (d), or (e) occurs during such ten consecutive Trading Days, the Market Price for each Trading Day prior to the “ex” date for such other event shall be adjusted by multiplying
such Market Price by the same fraction by which the Conversion Price is so required to be adjusted as a result of such other event, (2) if the “ex” date for any event (other than the issuance or distribution requiring such computation)
that requires an adjustment to the Conversion Price pursuant to Section 8.03(a), (b), (c), (d), or (e) occurs on or after the “ex” date for the issuance or distribution requiring such computation and prior to the day in question, the
Market Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by multiplying such Market Price by the reciprocal of the fraction by which the Conversion Price is so required to be adjusted as a result
of such other event, and (3) if the “ex” date for the issuance or distribution requiring such computation is prior to the day in question, after taking into account any adjustment required pursuant to clause (1) or (2) of this proviso, the
Market Price for each Trading Day on or after such “ex” date shall be adjusted by adding thereto the amount of any cash and the Fair Market Value (as determined by the Board of Directors in a manner consistent with any determination of
such value for purposes of Section 8.03(d), whose determination shall be conclusive and described in a Board Resolution) of the evidences of indebtedness, shares of capital stock or assets being distributed applicable to one share of Common Stock as
of the close of business on the day before such “ex” date. For purposes of any computation under Section 8.03(d), the Current Market Price of the Common Stock on any date shall be deemed to be the arithmetic average of the daily Market
Prices per share of Common Stock for such day and the next two succeeding Trading Days; provided, however, that if the “ex” date for any event (other than the Tender Offer requiring such computation) that requires an adjustment to
the Conversion Price pursuant to Section 8.03(a), (b), (c), (d), or (e), occurs on or after the Expiration Time for the Tender Offer requiring such computation and prior to the day in question, the Market Price for each Trading Day on and after the
“ex” date for such other event shall be adjusted by multiplying such Market Price by the reciprocal of the fraction by which the Conversion Price is so required to be adjusted as a result of such other event. For purposes of this
paragraph, the term “ex” date, (1) when used with respect to any issuance or distribution, means the first date on which the Common Stock trades, regular way, on the relevant exchange or in the relevant market from which the Market Price
was obtained without the right to receive such issuance or distribution, (2) when used with respect to any subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange or
in such market after the time at which such subdivision or combination becomes effective, and (3) when used with respect to any Tender Offer means the first date on which the Common Stock trades, regular way, on such exchange or in such market after
the Expiration Time of such Tender Offer. Notwithstanding the 

  

 -4- 

 
foregoing, whenever successive adjustments to the Conversion Price are called for pursuant to Section 8.03, such adjustments shall be made to the Current
Market Price as may be necessary or appropriate to effectuate the intent of Section 8.03 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
  
 “Default” means any event that is, or with the passage of time or the giving of notice or both would become, an
Event of Default. 
  
 “Default Rate” means 14 percent
per annum (or such lesser rate equal to the highest rate permitted by applicable law). 
  
 “Depositary” means The Depository Trust Company. 
  
 “Documents” shall have the meaning assigned to such term under the Code. 
  
 “Equipment” shall have the meaning provided in Annex VI to the Note Purchase Agreement. 
  
 “Event of Default” shall have the meaning provided in Section 4.01.

  
 “Excluded Shares” shall have the meaning provided in
Section 8.07. 
  
 “Expiration Time” shall have the
meaning provided in Section 8.03(f). 
  
 “Extended Redemption
Date” means with respect to any Note or portion thereof that is an Inconvertible Note, the date that is 20 Trading Days after the latest date on which such Note or portion thereof no longer is an Inconvertible Note. 
  
 “Fundamental Change” means 
  
 (a) Any consolidation or merger of the Company with or into
another entity where the stockholders of the Company immediately prior to such transaction do not collectively own at least 51% of the outstanding voting securities of the surviving entity of such consolidation or merger immediately following such
transaction; or the sale of all or substantially all of the assets of the Company and the Subsidiaries in a single transaction or a series of related transactions; or 
  
 (b) The occurrence of any transaction or event in connection with which all or substantially all the Common
Stock shall be exchanged for, converted into, acquired for or constitute the right to receive consideration (whether by means of an exchange offer, liquidation, tender offer, consolidation, merger, combination, reclassification, recapitalization or
otherwise) which is not all or substantially all common stock which is (or will, upon consummation of or immediately following such transaction or event, will be) listed on the NYSE or the AMEX or approved for quotation on Nasdaq or any similar
United States system of automated dissemination of transaction reporting of securities prices; or 
  

 -5- 

 (c) The acquisition by a Person or entity or group of Persons or entities acting in
concert as a partnership, limited partnership, syndicate or group, as a result of a tender or exchange offer, open market purchases, privately negotiated purchases or otherwise, of beneficial ownership of securities of the Company representing 50%
or more of the combined voting power of the outstanding voting securities of the Company ordinarily (and apart from rights accruing in special circumstances) having the right to vote in the election of directors. 
  
 “General Intangibles” shall have the meaning assigned to such term
under the Code. 
  
 “Generally Accepted Accounting
Principles” for any Person means the generally accepted accounting principles and practices applied by such Person from time to time in the preparation of its audited financial statements. 
  
 “GMAC” means GMAC Commercial Finance LLC, as successor in interest
by merger to GMAC Commercial Credit LLC, formally known as BNY Factoring LLC, as successor by merger to BNY Financial Corporation. 
  
 “GMAC Credit Agreement” means the Revolving Credit and Security Agreement, dated as of January 1, 1993, between the Company, Acclaim
Distribution Inc., LJN Toys, Ltd., Acclaim Entertainment Canada, Ltd. and Arena Entertainment Inc., as borrowers, and GMAC, as lender, as amended and restated on February 28, 1995, and as amended thereafter. 
  
 “GMAC Intercreditor Agreement” means such intercreditor agreement
or agreements as GMAC shall present to the Trustee and the Trustee shall execute and deliver on terms satisfactory to GMAC relating to their respective rights and remedies with respect to the Collateral and the Mortgaged Property, unless such
intercreditor agreement contains terms relating to the Trustee that are unsatisfactory as they relate to the Trustee. 
  
 “Government Obligations” means direct obligations of, or obligations the timely payment of the principal of and the interest on which are
unconditionally guaranteed by, the United States of America and which are not, by their terms, callable. 
  
 “Guaranty” means any obligation, contingent or otherwise, of any Person, directly or indirectly guaranteeing any Indebtedness of any other
Person and any obligation, direct or indirect, contingent or otherwise, of such Person: 
  
 (1) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising
by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or maintain financial statement conditions or otherwise); or 
  

 -6- 

 (2) entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); 
  
 provided, however, that the term “Guaranty” will not include endorsements for collection or deposit in the ordinary course of business. The term
“guarantee” used as a verb has a corresponding meaning. 
  
 “Holder Notice” means a Holder Notice in the form set forth in Section 7.05. 
  
 “Improvements” shall have the meaning provided in Annex VI to the Note Purchase Agreement. 
  
 “Inconvertible Notes” shall have the meaning provided in Section
9.05(b). 
  
 “Indebtedness,” when used with respect to
any Person, and without duplication means: 
  
 (1) all indebtedness, obligations and other liabilities (contingent or otherwise) of such Person for borrowed money (including obligations of the Company in respect of overdrafts, foreign exchange contracts, currency exchange agreements,
Interest Rate Protection Agreements, and any loans or advances from banks, whether or not evidenced by notes or similar instruments) or evidenced by bonds, debentures, notes or other instruments for the payment of money, or incurred in connection
with the acquisition of any property, services or assets (whether or not the recourse of the lender is to the whole of the assets of such Person or to only a portion thereof), other than any account payable or other accrued current liability or
obligation to trade creditors incurred in the ordinary course of business in connection with the obtaining of materials or services; 
  
 (2) all reimbursement obligations and other liabilities (contingent or otherwise) of such Person with respect to letters of credit, bank
guarantees, bankers’ acceptances, surety bonds, performance bonds or other guaranty of contractual performance; 
  
 (3) all obligations and liabilities (contingent or otherwise) in respect of (a) leases of such Person required, in conformity with
generally accepted accounting principles, to be accounted for as capitalized lease obligations on the balance sheet of such Person and (b) any lease or related documents (including a purchase agreement) in connection with the lease of real property
which provides that such Person is contractually obligated to purchase or cause a third party to purchase the leased property and thereby guarantee a minimum residual value of the leased property to the landlord and the obligations of such Person
under such lease or related document to purchase or to cause a third party to purchase the leased property; 
  
 (4) all obligations of such Person (contingent or otherwise) with respect to an interest rate or other swap, cap or collar agreement or
other similar instrument or 

  

 -7- 

 
agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement; 
  
 (5) all direct or indirect Guaranties or similar agreements by such Person in respect of, and obligations or
liabilities (contingent or otherwise) of such Person to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of another Person of the kind described in clauses (1) through
(4) of this definition; 
  
 (6) any indebtedness
or other obligations described in clauses (1) through (5) of this definition secured by any Lien existing on property which is owned or held by such Person, regardless of whether the indebtedness or other obligation secured thereby shall have been
assumed by such Person; and 
  
 (7) any and all
deferrals, renewals, extensions and refundings of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of the kind described in clauses (1) through (6) of this definition; 
  
 provided, however, that “Indebtedness” shall not include trade debt incurred
in the ordinary course of business to trade creditors that is payable on customary trade terms. 
  
 “Interest Payment Dates” shall mean each April 1 and October 1, commencing October 1, 2004, and the Stated Maturity. Accrued and unpaid interest
shall also be paid to the Conversion Date as provided in Section 8.01. 
  
 “Instrument” shall have the meaning assigned to such term under the Code. 
  
 “Interest Rate Protection Agreement” means, with respect to any Person, any interest rate swap agreement, interest rate cap or collar agreement or other financial agreement or arrangement designed to protect
such person against fluctuations in interest rates, as in effect from time to time. 
  
 “Inventory” shall have the meaning assigned to such term under the Code, and in any event, including all inventory, merchandise, goods and other personal property that are held by or on behalf of a Person
for sale or lease or to be furnished under a contract of service or which give rise to any Account, including returned goods. 
  
 “Issuance Date” means the date any Note was first issued to an original Holder of such Notes. 
  
 “Issuing Agent” means the Company, its successor or such other
person who shall be serving as transfer agent and registrar for the Common Stock and who shall have been authorized by the Company to act as conversion agent for the Notes in accordance with the Issuing Agent Instruction and the name, address and
telephone number of whom shall have been given to the Trustee and the Holders by notice from the Company. 
  

 -8- 

 “Issuing Agent Instruction” means the Issuing Agent Instruction, dated February 17, 2004, from
the Company to the Issuing Agent for the benefit of the Holders and the holders from time to time of the Warrants. 
  
 “Land” shall have the meaning provided in Annex VI to the Note Purchase Agreement. 
  
 “Majority Holders” means at any time Holders who hold Notes that are Outstanding which, based on the Outstanding
principal amount thereof, represent a majority of the aggregate Outstanding principal amount of all the Notes. 
  
 “Market Price” with respect to any security on any day shall mean the closing bid price of such security on such day on the Nasdaq or the NYSE
or the AMEX, as applicable, or, if such security is not listed or admitted to trading on the Nasdaq, the NYSE or the AMEX, on the principal national securities exchange or quotation system on which such security is quoted or listed or admitted to
trading, in any such case as reported by Bloomberg, L.P. or, if not quoted or listed or admitted to trading on any national securities exchange or quotation system, the average of the closing bid and asked prices of such security on the
over-the-counter market on the day in question, as reported by the National Quotation Bureau Incorporated, or a similar generally accepted reporting service, or if not so available, in such manner as furnished by any New York Stock Exchange member
firm selected from time to time by the Board of Directors for that purpose, or a price determined in good faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution. 
  
 “Mortgage” means the second mortgage on the Mortgaged Property as
contemplated in Section 5(h), Article 10 and Annex VI to the Note Purchase Agreement. 
  
 “Mortgaged Property” shall have the meaning contemplated in Section 5(h), Article 10 and Annex VI to the Note Purchase Agreement. 
  
 “Nasdaq” means the Nasdaq National Market or the Nasdaq SmallCap Market. 
  
 “New York UCC” means the Uniform Commercial Code as in effect from
time to time in the State of New York. 
  
 “Newly Issued
Shares” shall have the meaning provided in Section 8.03(g). 
  
 “1934 Act” means the Securities Exchange Act of 1934, as amended. 
  
 “1933 Act” means the Securities Act of 1933, as amended. 
  
 “Note Purchase Agreement” means the Note Purchase Agreement, dated February 17, 2004, by and between the Company and the original Holder of the
Notes. 
  
 “Notes” means the Company’s 9% Senior
Subordinated Convertible Notes due 2007 issued pursuant to the Original Indenture and this Supplemental Indenture. 
  

 -9- 

 “NYSE” means the New York Stock Exchange, Inc. 
  
 “Obligations” means: 
  
 (1) the full and prompt payment when due of all obligations
and liabilities to the Holders, whether now existing or hereafter arising, under the Notes, this Supplemental Indenture or the other Transaction Documents and the due performance and compliance with the terms of the Notes and the other Transaction
Documents; 
  
 (2) any and all sums advanced in
accordance with the terms of the Notes, this Supplemental Indenture or applicable law by the Trustee or any Holder in order to preserve the Collateral or to preserve the Trustee’s security interest in the Collateral; 
  
 (3) in the event of any proceeding for the collection or
enforcement of any obligations or liabilities of the Company referred to in the immediately preceding clauses (1) and (2) in accordance with the terms of the Notes and this Supplemental Indenture, the reasonable expenses of re-taking, holding,
preparing for sale, selling or otherwise disposing of or realizing on the Collateral, or of any other exercise by the Trustee of its rights hereunder, together with reasonable attorneys’ fees and court costs; and 
  
 (4) any amounts for which any Holder is entitled to
indemnification under Section 5.11. 
  
 “Officer” means
the Chairman of the Board, the Chief Executive Officer, the President or the Chief Financial Officer of the Company. 
  
 “Optional Redemption Date” means each Business Day on which Notes are to be redeemed in whole or in part pursuant to Article Nine. 

 
 “Optional Redemption Notice” means an Optional Redemption Notice
in the form specified in Section 9.02(b). 
  
 “Optional
Redemption Period” means the period which commences on August 18, 2004 and ends on the Maturity Date. 
  
 “Optional Redemption Price” means an amount in cash equal to the sum of (1) 100% of the outstanding principal amount of the Note or portion
thereof specified in an Optional Redemption Notice as being redeemed by the Company plus (2) accrued and unpaid interest on such principal amount to the applicable Optional Redemption Date plus (3) accrued and unpaid Default Interest,
if any, on the amount referred to in the immediately preceding clause (2) at the Default Rate to the Optional Redemption Date, subject to reduction pursuant to Section 9.05(a). 
  

 -10- 

 “Optional Redemption Threshold Price” means for any Trading Day in each period specified below
the product obtained by multiplying (x) the Conversion Price in effect on such date times (y) the applicable Threshold Redemption Percentage for such Trading Day: 
  

			
	 Period

	  	Threshold
Redemption Percentage

	 August 19, 2004 to February 18, 2005
	  	250%
	 February 19, 2005 to August 19, 2005
	  	200%
	 August 20, 2005 to February 18, 2006
	  	175%
	 February 19, 2006 and thereafter
	  	150%

  
 “Permitted
Encumbrances” shall have the meaning provided in Annex VI to the Note Purchase Agreement. 
  
 “Permitted Indebtedness” means 
  
 (1) the total aggregate maximum amount of all borrowing availability (including the availability for the Company and/or any of its Subsidiaries to open letters of credit) of the Company, its Subsidiaries and
Affiliates under the GMAC Credit Agreement, and an additional amount of Indebtedness of the Company, its Subsidiaries and Affiliates to GMAC not to exceed $5,000,000.00; 
  
 (2) Indebtedness represented by the Notes; 
  
 (3) Indebtedness between or among the Company and any of its Subsidiaries; 
  
 (4) Indebtedness incurred by the Company or any of its
Subsidiaries for the purpose of purchasing or otherwise acquiring goods, assets, materials or services in the ordinary course of business so long as the amount of such indebtedness does not exceed the purchase or acquisition price thereof or
Indebtedness representing amounts recorded as accounts payable, trade payables, royalties, advances or Guaranties of minimum royalties in respect of agreements entered into by the Company and any of its Subsidiaries for the acquisition, development
or distribution of intellectual properties, games or other products in the ordinary course of business and which is recorded on the books and records of the Company and its Subsidiaries as deferred expenses; 
  
 (5) Indebtedness representing deposits held by the Company
or any Subsidiary (which are unsecured); 
  
 (6)
Indebtedness constituting reimbursement obligations with respect to letters of credit issued in the ordinary course of business in respect of workers’ compensation claims or self-insurance, or other Indebtedness with respect to reimbursement
type obligations regarding workers’ compensation claims or self-insurance, and obligations in respect of performance and surety bonds and completion guarantees incurred in the ordinary course of business; provided, however, that upon the
drawing of such letters of credit or the incurrence of such Indebtedness, such obligations are reimbursed within 30 days following such drawing or incurrence; 
  

 -11- 

 (7) Guaranties by the Company or any of its Subsidiaries of Indebtedness of the Company
or any of its Subsidiaries which Indebtedness is Permitted Indebtedness that is of the type or character specified in clauses (1), (2), (4), (6) or (9) of this definition; 
  
 (8) the Company’s 16% Convertible Subordinated Notes due 2010 in the aggregate principal amount of
$11,800,000.00; and 
  
 (9) Permitted Refinancing
Indebtedness issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund, in whole or in part, the Permitted Indebtedness identified in clauses (1), (2), (4) or (8) of this definition.

  
 “Permitted Liens” means any of the following Liens,
so long as (except in the case of clause (2) of this definition) such Lien does not relate to any of the Collateral: 
  
 (1) Liens securing Permitted Indebtedness specified in clause (1) of the definition thereof; 
  
 (2) Liens upon any property of any Subsidiary or
Subsidiaries of the Company as security for indebtedness owing to the Company; 
  
 (3) Liens securing the Notes ratably and not securing any other Indebtedness or obligation of the Company or any Subsidiary; 

 
 (4) Liens for taxes or assessments or governmental
charges or levies on the property of the Company if such taxes or assessments or charges or levies shall not at the time be due and payable or if the amount, applicability, or validity of any such tax, assessment, charge or levy shall currently be
contested in good faith by appropriate proceedings or necessary preliminary steps are being taken to contest, compromise or settle the amount thereof or to determine the applicability or validity thereof and if the Company shall have set aside on
its books reserves (segregated to the extent required by sound accounting practice) deemed by it adequate with respect thereto; deposits or pledges to secure payment of worker’s compensation, unemployment insurance, old age pensions or other
social security; deposits or pledges to secure performance of bids, tenders, contracts (other than contracts for the payment of money borrowed or credit extended), leases, public or statutory obligations, surety or appeal bonds, or other deposits or
pledges for purposes of like general nature in the ordinary course of business; mechanics’, carriers’, workers’, repairmen’s or other like Liens arising in the ordinary course of business securing obligations which are not
overdue for a period of 60 days, or which are in good faith being contested or litigated, or deposits to obtain the release of such Liens; Liens created by or resulting from any litigation or legal proceedings or proceedings being contested in good
faith by appropriate proceedings, provided any execution levied thereon shall be stayed; leases made, or existing on property acquired, in the ordinary course of business; landlords’ Liens under leases to which the Company is a 

  

 -12- 

 
party; and zoning restrictions, easements, licenses or restrictions on the use of real property or minor irregularities in title thereto; provided that all
such Liens described in this subsection (3) do not, in the aggregate, materially impair the use of such property in the operations of the business of the Company or the value of such property for the purpose of such business; 
  
 (5) Liens upon specific items of inventory or other goods of
any Person and on proceeds thereof securing such Person’s obligations in respect of banker’s acceptances issued or created for the account of such Person to facilitate the purchase, shipment, or storage of such inventory or other goods;

  
 (6) Liens securing reimbursement obligations
with respect to commercial letters of credit which encumber documents and other property relating to such letters of credit and products and proceeds thereof; and 
  
 (7) Liens securing Permitted Indebtedness described in clause (4) of the definition of “Permitted
Indebtedness” which relate only to the goods, assets, materials or services purchased or acquired with such Permitted Indebtedness and do not extend to any other assets or property of the Company or any of its Subsidiaries; 
  
 “Permitted Refinancing Indebtedness” means any Indebtedness of the
Company or any of its Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund other Indebtedness of the Company or any of its Subsidiaries (other than intercompany
Indebtedness); provided that all of the following requirements are met: 
  
 (1) the principal amount (or accreted value, if applicable, determined in accordance with Generally Accepted Accounting Principles) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or
accreted value, if applicable, determined in accordance with Generally Accepted Accounting Principles) of the Indebtedness extended, refinanced, renewed, replaced, defeased or refunded (plus all accrued interest on the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded and the amount of all expenses and premiums incurred in connection therewith); 
  
 (2) such Permitted Refinancing Indebtedness has a final maturity date no earlier than the final maturity date of, and has a Weighted
Average Life to Maturity not less than the Weighted Average Life to Maturity of the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; 
  
 (3) if the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded is subordinated
in right of payment to the Notes, such Permitted Refinancing Indebtedness is subordinated in right of payment to the Notes on terms at least as favorable to the Holders of Notes as those contained in the documentation governing the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded; 
  

 -13- 

 (4) such Indebtedness is incurred by such of the Company or its Subsidiary that is the
obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; 
  
 (5) the Indebtedness that is being extended, refinanced, renewed, replaced, defeased or refunded will not remain outstanding after the
incurrence of such Permitted Refinancing Indebtedness; provided, however, that in the case of any extension, refinancing, renewal, replacement, defeasance or refunding of Indebtedness referred to in the definition of Permitted Indebtedness,
if prior notice to the holder or holders of the Indebtedness to be extended, refinanced, renewed, replaced, defeased or refunded is required in order to repay such Indebtedness, then such Indebtedness may remain outstanding for up to 60 days after
the incurrence of such Permitted Refinancing Indebtedness so long as on or before the date of incurrence of such Permitted Refinancing Indebtedness the Company or the applicable Subsidiary shall have (a) given such notice to the holder or holders of
such Indebtedness and (b) irrevocably deposited in trust with a trustee (other than the Company or any of its Subsidiaries), for the exclusive benefit of the holder or holders of the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded, an amount at least equal to the aggregate amount that the Company or such Subsidiary will be obligated to pay in respect of such Indebtedness from such date to the date of payment in full of such Indebtedness; and 

 
 “Pledged Securities” means: 
  
 (1) the outstanding shares of capital stock of the
Company’ Subsidiaries described on Schedule II hereto as “Pledged Securities”; and 
  
 (2) any and all other shares of capital stock or other securities of any Subsidiary and any and all rights to acquire capital stock or
other securities of any Subsidiary hereafter acquired by the Company and required to be delivered to the Trustee in accordance with Section 5.16. 
  
 “Preferred Share Purchase Rights” means the Preferred Share Purchase Rights issued or issuable pursuant to the Rights Agreement (or any similar
right hereafter issued by the Company with respect to the Common Stock). 
  
 “Proceeds” shall have the meaning assigned to such term under the Code. 
  
 “Record Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of
stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise). 
  

 -14- 

 “Registration Event” shall have the meaning provided in the Note Purchase Agreement.

  
 “Registration Statement” shall have the meaning
provided in the Note Purchase Agreement. 
  
 “Repurchase
Date” means with respect to any Repurchase Event the date that is five Business Days a Holder exercises the repurchase right pursuant to Article Seven with respect to such Repurchase Event. 
  
 “Repurchase Event” means the occurrence of any one or more of the
following events: 
  
 (a) Any Fundamental Change;
or 
  
 (b) The inability of any Holder for 135
days (whether or not consecutive) after the date the Registration Statement is declared effective, as provided in the Note Purchase Agreement, in any period of 365 consecutive days to sell such Holder’s Notes or the shares of Common Stock
issued or issuable to such Holder upon conversion of Notes or exercise of Warrants pursuant to the Registration Statement by reason of the failure of the Registration Statement to meet the requirements of the 1933 Act, the 1934 Act or any of the
rules or regulations under either thereof. 
  
 “Repurchase
Percentage” means 100%. 
  
 “Repurchase Price”
means with respect to any repurchase of a Note pursuant to Sections 7.01 and 7.02 an amount in cash equal to the sum of (1) the outstanding principal amount of such Note to be repurchased in accordance with Article Seven, plus (B) accrued and
unpaid interest on such principal amount to the date the Repurchase Price is required to be paid, plus (C) accrued and unpaid Default Interest, if any, thereon at the Default Rate from the date the Repurchase Price is required to be paid to
the date of payment of the Repurchase Price or deposit thereof in accordance with Section 11.12. 
  
 “Restricted Ownership Percentage” shall have the meaning provided in Section 8.07(b). 
  
 “Rights Agreement” means the Rights Agreement, dated as of June 5,
2000 between the Company and American Securities Transfer & Trust, Inc. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “SEC Effective Date” shall have the meaning provided in Section 8.03(f). 
  
 “Securities” shall have the meaning provided in Section 8.03(d). 
  
 “Security Interest” means the security interest granted in, and collateral assignment of, the Collateral pursuant
to this Supplemental Indenture. 
  

 -15- 

 “Senior Indebtedness” shall mean the principal of and unpaid accrued interest on, and all other
obligations now outstanding or hereafter arising from time to time under: 
  
 (a) the GMAC Credit Agreement; and 
  
 (b) any Indebtedness issued in exchange for the Senior Indebtedness identified in the immediately preceding clause (a), or any indebtedness arising from the satisfaction of the Senior Indebtedness identified in the
immediately preceding clause (a) by a guarantor, any additional loans or advances hereafter made in respect of the Senior Indebtedness identified in the immediately preceding clause (a) and any amendment, modification, or change in the Senior
Indebtedness identified in the immediately preceding clause (a) and the documents evidencing the same. 
  
 “Share Payments” shall have the meaning provided in Section 5.09. 
  
 “Specified Market Value” when used with respect to the Common Stock as of a specified date means with respect to
each share of Common Stock the average of the closing prices of the Common Stock sold on all securities exchanges (including the Nasdaq and the Nasdaq SmallCap Market) on which the Common Stock may at the time be listed, or, if there have been no
sales on any such exchange on such day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on such day the Common Stock is not so listed, the average of the representative bid and asked prices
quoted in the NASDAQ System as of 4:00 p.m., New York City time, or, if on such day the Common Stock is not quoted in the NASDAQ System, the average of the highest bid and lowest asked price on such day in the domestic over-the-counter market as
reported by the National Quotation Bureau, Incorporated, or any similar successor organization, in each such case averaged over a period of five Trading Days consisting of the day as of which the Specified Market Value of Common Stock is being
determined (or if such day is not a Trading Day, the Trading Day next preceding such day) and the four consecutive Trading Days prior to such day. If on the date for which Specified Market Value is to be determined the Common Stock is not listed on
any securities exchange or quoted in the NASDAQ System or the over-the-counter market, the Specified Market Value of Common Stock shall be the highest price per share which the Company could then obtain from a willing buyer (not an employee or
director of the Company at the time of determination) for shares of Common Stock sold by the Company, from authorized but unissued shares, as determined in good faith by the Board of Directors. 
  
 “Stated Maturity” means for the Notes February 17, 2007.

  
 “Subordination Terms” means the terms set forth in
Schedule III to this Supplemental Indenture. 
  
 “Tender Offer” means a tender offer or exchange offer. 
  

 -16- 

 “Trading Day” means a day on which any of the national securities exchange or Nasdaq which then
constitutes the principal securities market for the Common Stock is open for general trading of securities. 
  
 “Transaction Documents” means the Original Indenture, this Supplemental Indenture, the Notes, the Note Purchase Agreement, the Warrants and the
other agreements, instruments and documents contemplated hereby and thereby. 
  
 “Trigger Event” shall have the meaning provided in Section 8.03(d). 
  
 “Warrants” means the Common Stock Purchase Warrants of the Company issued or issuable to the original Holders of the Notes pursuant to the Note
Purchase Agreement. 
  
 “Weighted Average Life to
Maturity” means, when applied to any Indebtedness at any date, the number of years (rounded to the nearest one-twelfth) obtained by dividing: 
  
 (1) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in respect of such Indebtedness, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment;
by 
  
 (2) the outstanding principal amount of
such Indebtedness at such date. 
  
 ARTICLE
TWO 
  
 FORM OF
NOTES 
  
 Section 2.01. Form of Notes.
The Notes shall be in substantially the form set forth in this Article, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Original Indenture and this Supplemental Indenture, and may
have such other letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing the Notes, as evidenced by their execution thereof. 
  
 Section 2.02. Form of Face of Notes. 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THE ISSUANCE TO THE HOLDER OF THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE ARE NOT COVERED BY A REGISTRATION
STATEMENT UNDER THE 1933 ACT. PURSUANT TO THE NOTE PURCHASE AGREEMENT, THIS NOTE HAS BEEN ACQUIRED, AND SUCH SHARES MUST BE ACQUIRED, FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE
THEREOF UNDER THE 1933 ACT OR AN 

  

 -17- 

 
OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 ACCLAIM ENTERTAINMENT, INC. 
  
 9% Senior Subordinated Convertible Note due 2007 
  
 No.
                    
                            $           
                  
  
 Acclaim Entertainment, Inc., a corporation duly organized and existing under the laws of Delaware (herein called the “Company,” which term
includes any successor Person under the Original Indenture hereinafter referred to), for value received, hereby promises to pay to
                                 , or registered assigns, the principal sum
of                      Dollars (or such lesser principal amount of this Note as is outstanding on the date of payment) on February 17,
2007, and to pay interest thereon from the Issuance Date or from the most recent Interest Payment Date to which interest has been paid or duly provided for, on each Interest Payment Date in each year, commencing October 1, 2004, and at the Maturity
of this Note, at the Applicable Rate, until the principal hereof is paid or made available for payment, provided that any principal or amount of interest which is overdue shall bear interest at a rate per annum equal to the Default Rate (to the
extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest (“Default Interest”) shall be payable on demand. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Supplemental 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 fifth Business Day preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Default Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this series not less than ten days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Original Indenture and the Supplemental Indenture. 
  
 Payment of the principal of and any such interest on this Security and any
other amounts payable in respect of this Security will be made at the office or agency of the Company maintained for that purpose in the city in which the Corporate Trust Office is located, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts or, at the option of the Company and subject to the provisions of this Note; provided, however, that at the option of the Company payment of interest may be made
by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided further, however, that cash payments shall 

  

 -18- 

 
be made by wire transfer of immediately available funds to such account within the United States of America as the Holder may from time to time designate by
notice to the Company in accordance with the Original Indenture and the Supplemental Indenture. Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place. 
  
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Original Indenture or the Supplemental Indenture or be valid or
obligatory for any purpose. 
  
 Additional provisions of this
Security are set forth on the other side of this Security. 
  
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 
  

									
	 Dated:
	 	ACCLAIM ENTERTAINMENT, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Title:

  
 Attest:  
  

			
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee, certifies that this is one of the Securities of the series designated herein referred to in the within-mentioned
Indenture.

  

			
		
	By:	 	 
	 	 	

	 	 	Authorized Officer

  
 Date of Authentication: 
  

 -19- 

 Section 2.03. Form of Reverse of Notes. This Security is one of a duly authorized issue of
securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Original Indenture, dated as of February 17, 2004 (herein called the “Original Indenture,” which term shall have
the meaning assigned to it in such instrument), between the Company and U.S. Bank Trust National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Original Indenture), and the
Supplemental Indenture, dated as of February 17, 2004, between the Company and the Trustee (herein called the “Supplemental Indenture,” which term shall have the meaning assigned to it in such instrument), and reference is hereby made to
the Original Indenture, the Supplemental Indenture and all indentures supplemental thereto 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 one of the series designated on the face hereof, limited in aggregate principal amount to $25,000,000 (except as otherwise
provided in the Original Indenture and the Supplemental Indenture). 
  
 The Original Indenture and the Supplemental Indenture contain provisions for defeasance at any time of certain restrictive covenants, Events of Default or other circumstances with respect to this Security upon compliance with certain
conditions set forth in the Original Indenture and the Supplemental Indenture. Certain of the Company’s obligations with respect to this Security are defeasible in accordance with Sections 1302 and 1303 of the Original Indenture and related
provisions of the Supplemental Indenture. 
  
 Subject to the
provisions of the Supplemental Indenture, the Holder of this Security is entitled, at its option, at any time prior to the close of business on February 17, 2007 (except that, if the Holder shall have exercised repurchase rights under Article Seven
of the Supplemental Indenture, such conversion right shall terminate with respect to the portion of this Security to be repurchased on the last Trading Day prior to the later of (x) the date of such repurchase and (y) the date the Company pays or
deposits in accordance with the Supplemental Indenture the applicable Repurchase Price, unless in any such case the Company shall default in payment due upon repurchase hereof) to convert the principal amount of this Security, or any portion of such
principal amount which is at least $1,000 (or such lesser principal amount hereof as shall be outstanding at such time), into fully paid and non-assessable shares of Common Stock (as such shares shall then be constituted) obtained by dividing the
principal amount of this Security or portion hereof being converted by the Conversion Price in effect on the applicable Conversion Date, by giving a Conversion Notice in the manner provided in the Supplemental Indenture; provided, however,
that, if at any time this Security is converted in whole or in part, the Company does not have available for issuance upon such conversion as authorized and unissued shares or in its treasury at least the number of shares of Common Stock
required to be issued pursuant hereto, then, at the election of the Holder made by notice from the Holder to the Company, this Security (or portion hereof as to which conversion has been requested), to the extent that sufficient shares of Common
Stock are not then available for issuance upon conversion, shall be converted into the right to receive from the Company, in lieu of the shares of Common Stock into which this Security or such portion hereof would otherwise be converted and which
the Company is unable to issue, payment in an amount equal to the product obtained by multiplying (x) the number of shares of Common Stock which the Company is unable to issue times (y) the arithmetic average of the Market Price for the
Common Stock during the five 

  

 -20- 

 
consecutive Trading Days immediately prior to the applicable Conversion Date. Any such payment shall, for all purposes of this Security, be deemed to be a
payment of principal in the principal amount of the Security converted, plus a premium equal to the total amount payable less the principal portion of this Security converted as to which such payment is required to be made because shares of Common
Stock are not then available for issuance upon such conversion. In connection with conversion of a Note or portion thereof, the Holder shall be entitled to payment in respect of accrued and unpaid interest and accrued and unpaid Default Interest, if
any, on such Note or portion thereof converted to the Conversion Date, provided, however, that in accordance with Section 307 of the Original Indenture where Notes are surrendered during a period between the close of business on a Regular Record
Date and the opening of business on the next succeeding Interest Payment Date, funds equal to the interest to be paid on the next succeeding Interest Payment Date with respect to such Notes shall be paid by the Holder to the Company upon conversion.
The Holder is not entitled to any rights of a holder of Common Stock until the Holder has converted this Security to Common Stock, and only to the extent this Security is deemed to have been converted to Common Stock under the Supplemental
Indenture. The Conversion Rate is subject to adjustment as provided in the Supplemental Indenture. 
  
 If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the Original Indenture and the Supplemental Indenture. 
  
 The Original 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 of each series to be affected under the Original Indenture at any time by the Company and the Trustee with the consent of the Holders of more than 50% in principal amount of the Securities
at the time Outstanding of each series to be affected. The Original Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Original Indenture and the Supplemental Indenture and certain past defaults under the Original Indenture and the Supplemental 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, whether or not notation of such consent or waiver is made upon this Security. 
  
 As provided in and subject to the provisions of the Original Indenture, the Holder of this Security shall not have the right to institute any proceeding
with respect to the Original Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a 

  

 -21- 

 
direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer
of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

  
 No reference herein to the Original Indenture or the
Supplemental Indenture and no provision of this Security or of the Original Indenture or the Supplemental Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 As provided in the Original Indenture and the Supplemental Indenture and subject to certain limitations therein set forth, the transfer of this Security
is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
  

The Securities of this series are issuable only in registered form without coupons. As provided in the Original Indenture and the Supplemental
Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by
the Holder surrendering the same. 
  
 No service charge shall be
made to a Holder for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary. 
  
 All terms used in this Security which are defined in the Supplemental Indenture shall have the meanings assigned to them in the Supplemental Indenture. 
  

 -22- 

 Section 2.04. Form of Conversion Notice. The Conversion Notice shall be in substantially the
following form or, in the case of any particular conversion of a Note, in such other form as agreed by the Company and the converting Holder: 
  
 NOTICE OF CONVERSION OF 
 9% SENIOR
SUBORDINATED CONVERTIBLE NOTE DUE 2007 
 OF ACCLAIM ENTERTAINMENT, INC. 
  

							
	 To:
	  	Acclaim Entertainment, Inc.	  	 
	 	  	 One Acclaim Plaza
	  	 
	 	  	 Glen Cove, New York 11542
	  	 
			
	 	  	 Attention: Chief Financial Officer
	  	 
			
	 	  	 Facsimile No.: (516) 656-2045
	  	 
			
	 	  	 [Name and Address of Issuing Agent]
	  	 
				
	 	  	 Attention:
	  	 	  	 
	 	 	 	 	
	 	 
	 	  	 	  	Special Issuances	  	 
			
	 	  	 Facsimile No.:
	  	 

  
 1. Pursuant to
the terms of the 9% Senior Subordinated Convertible Note due 2007 (the “Note”), the undersigned hereby elects to convert
$                         of the Note into shares of Common Stock of Acclaim Entertainment, Inc., a Delaware corporation,
at a Conversion Price per share equal to $                    . Capitalized terms used herein and not otherwise defined herein have the
respective meanings provided in the Note. 
  
 2. The number
of shares of Common Stock issuable upon the conversion of the Note to which this Notice relates is                     . 
  
 3. Please issue a certificate or certificates for
                     shares of Common Stock in the name(s) specified immediately below or, if additional space is necessary, on an
attachment hereto: 
  

	
	
	  
	

	 Name

	
	  
	

	 Address

	
	  
	

	 SS or Tax ID Number

	
	 Delivery Instructions for Common Stock:

	
	  
	

	
	  
	

	
	  
	

  

 -23- 

 Date:
                         
  

	
	         Name

	
	 
	

	 Signature of Registered Holder
 (Must be signed exactly as name appears in the Note.)

  
 ARTICLE THREE 
  
 THE NOTES 
  
 Section 3.01. Establishment of Series; Amount. There is hereby established a series of Securities entitled “9% Senior Subordinated Convertible Notes due 2007,” which shall be limited in aggregate principal amount to
$25,000,000 (except as otherwise provided in the Original Indenture or this Supplemental Indenture). The Notes shall bear interest at the rate provided in the form of Notes and interest on the Notes shall be payable semi-annually on the Interest
Payment Dates specified in the form of Notes to the Persons who are Holders of the Notes at the close of business on the fifth Business Day preceding each Interest Payment Date. The Notes shall not be Original Issue Discount Securities. 

 
 Section 3.02. Defeasance. Certain of the Company’s
obligations with respect to the Notes shall be defeasible in accordance with Sections 1302 and 1303 of the Original Indenture. For purposes of any Defeasance of the Notes pursuant to Section 1302 of the Original Indenture, in addition to any
obligations of the Company which shall survive as provided in Section 1302 of the Original Indenture until otherwise terminated or discharged, the Company’s obligations under Article Eight of this Supplemental Indenture shall survive until
otherwise terminated or discharged as provided in this Supplemental Indenture. Any cash or property deposited by the Company with the Trustee pursuant to Section 1302 or 1303 of the Original Indenture in respect of the Notes shall constitute
Collateral for purposes of this Supplemental Indenture. 
  

 -24- 

 ARTICLE FOUR 
  
 REMEDIES 
  
 Section 4.01. Events of Default. “Event of Default,”
whenever used in the Original Indenture or this Supplemental Indenture with respect to the Notes, means any of the following events: 
  
 (a) Failure to Pay Interest or Principal. 
  
 The Company fails (i) to pay any installment of interest on any Note when due and such failure continues for a period of five Business Days after the due date thereof or
(ii) to pay principal on any Note upon Maturity; or 
  
 (b)
Conversion and the Shares. 
  
 The Company fails to issue or cause to
be issued shares of Common Stock to any Holder upon exercise by such Holder of such Holder’s conversion rights in accordance with this Supplemental Indenture and the Notes within ten Trading Days after the due date therefor in accordance with
the terms of any Note or this Supplemental Indenture, as the case may be; or 
  
 (c) Breach of Certain Covenants or Warranties. 
  
 Default in the performance, or breach, of any covenant or warranty of the Company in Sections 5.01, 5.03, 5.04, 5.13, or 5.14 of this Supplemental Indenture; or 
  
 (d) Breach of Other Covenants or Warranties. 
  
 Default in the performance, or breach, of any covenant or warranty of the Company in this Supplemental Indenture (other than a
covenant or warranty a default in the performance or breach of which is elsewhere in this Section specifically dealt with, and continuance of such default or breach for a period of 15 Business Days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of this series a written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder; or 
  
 (e) Breach of Representation or Warranty. 
  
 If any representation or warranty of the Company made herein or in any agreement or certificate given in writing pursuant hereto or in connection herewith shall be false or misleading in any material respect when made and there has been
given, by facsimile transmission or registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of this series a written notice
specifying such default or breach and stating that such notice is a “Notice of Default” hereunder; or 
  
 (f) Judgments. 
  
 Any court of competent jurisdiction shall enter one or more final judgments against the Company or any Subsidiary or any of their respective properties or other assets in
an aggregate amount in excess of $2,000,000, which is not vacated, bonded, stayed, discharged, satisfied or waived for a period of 45 consecutive days; or 
  
 (g) Default Under Other Agreements and Instruments. 
  
 Any Indebtedness of the Company or any Subsidiary which has an outstanding principal amount in excess of $5,000,000 individually, or $10,000,000 in the aggregate, shall,
in accordance with its terms, be declared to be due and payable, or required to be prepaid other than by a regularly scheduled or required payment prior to the stated maturity thereof; or 
  

 -25- 

 (h) Original Indenture Events of Default. 
  
 Any Event of Default specified in Section 501(1) or 501(2) of the Original Indenture;
or 
  
 (i) Security Interest; Pledged Securities; Mortgage.

  
 All actions necessary (1) to create and perfect the Security Interest in
the Collateral as a second priority perfected Security Interest, subject only to the Security Interest in favor of GMAC and (2) to grant to the Trustee for the benefit of the Holders of the Second Mortgage shall not have occurred on or before March
15, 2004; at any time after the perfection of the Security Interest in the Collateral the Trustee shall cease to have a second priority perfected Security Interest for the benefit of the Holders in any of the Collateral, second only to the Security
Interest in favor of GMAC, other than Collateral that has been released from the Lien of this Supplemental Indenture in accordance with the terms of the Original Indenture and this Supplemental Indenture; at any time after the Mortgage is duly
recorded, the Trustee shall cease to have pursuant to the Mortgage a valid and duly recorded mortgage on the Mortgaged Property that is junior to GMAC only; or any of the Pledged Securities shall not be duly and validly authorized, fully paid and
non-assessable shares of capital stock of the issuer thereof. 
  
 ARTICLE FIVE 
  
 COVENANTS 
  
 So long as the
Company shall have any obligation for any amount outstanding under any Note, unless otherwise consented to in advance by the Majority Holders: 
  
 Section 5.01. Limitations on Certain Indebtedness. The Company will not itself, and will not permit any Subsidiary to, create, assume, incur or in
any manner become liable in respect of, including, without limitation, by reason of any business combination transaction (all of which are referred to herein as “incurring”), any Indebtedness other than Permitted Indebtedness. 

 
 Section 5.02. Investment Company Act. The Company will not be or
become an open-end investment trust, unit investment trust or face-amount certificate company that is or is required to be registered under Section 8 of the Investment Company Act of 1940, as amended. 
  
 Section 5.03. Limitations on Asset Sales, Liquidations, Etc.; Certain
Matters. The Company shall not, and shall not permit any of its Subsidiaries to, 
  
 (a) sell, convey or otherwise dispose of (including, without limitation, by way of lease or license) any assets which are material to the business or operations of the Company and its Subsidiaries, taken as a whole;
or 
  
 (b) sell, convey, pledge, transfer or otherwise dispose of
any of the Pledged Securities; or 
  

 -26- 

 (c) liquidate, dissolve or otherwise wind up its affairs. 
  
 Section 5.04. Limitations on Liens. The Company will not itself, and
will not permit any of its Subsidiaries to, create, assume or suffer to exist any Lien upon all or any part of its property of any character, whether owned at the date hereof or thereafter acquired, except Permitted Liens. 
  
 Section 5.05. Certain Obligations. The Company shall not enter
into any agreement, arrangement or understanding, other than agreements with GMAC, with respect to (1) the Pledged Securities and (2) which would materially impair the rights and remedies of the Trustee with respect to the Collateral or the
Mortgaged Property. 
  
 (b) The Company shall perform and comply
in all material respects with the GMAC loan and security documents. 
  
 Section 5.06. Notice of Defaults. The Company shall notify the Trustee and the Holders promptly, but in any event not later than five Business Days after the Company becomes aware of the fact, of any failure by the Company to comply
with this Article Five. If the Company fails to give a notice required by this Section 5.08 but nonetheless cures the failure to comply with this Article Five that gave rise to the Company’s obligation to give such notice within the cure
period, if any, applicable to such failure to comply with this Article Five, from and after the time of such cure such failure to give such notice shall cease to be a default under this Section 5.08. 
  
 Section 5.07. Further Documentation; Pledge of Instruments and Chattel
Paper. At any time and from time to time, upon the written request of the Trustee or Holders of at least 25% in principal amount of Notes that are at the time Outstanding, and at the sole expense of the Company, the Company will promptly and
duly execute and deliver such further instruments and documents and take such further action as the Trustee or such Holders may reasonably request for the purpose of obtaining or preserving the full benefits of this Supplemental Indenture and of the
rights and powers herein granted, including, without limitation, (i) the filing of any financing or continuation statements under the Code or similar laws in effect in any such jurisdiction with respect to the Liens created hereby and (ii) providing
to the Trustee such documents or instruments as shall be necessary or desirable for the exercise by the Trustee on behalf of the Company of any and all rights relating to the Collateral or the Mortgaged Property. The Company also hereby authorizes
the Trustee to file any such financing or continuation statement without the signature of the Company to the extent permitted by applicable law. The Company agrees that a carbon, photographic or other reproduction of this Supplemental Indenture may
be filed as a financing statement or a mortgage or attached to a financing statement or a mortgage in any jurisdiction where permitted by applicable law for purposes of any filing to perfect or record the Lien in favor of the Trustee for the benefit
of the Holders. If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument or Chattel Paper, such Instrument or Chattel Paper shall be immediately delivered to the Trustee, duly endorsed in
a manner satisfactory to the Trustee, to be held as Collateral pursuant to this Supplemental Indenture. 
  

 -27- 

 Section 5.08. Indemnification. The Company agrees to indemnify and hold harmless the
Trustee and each Holder from and against any and all claims, demands, losses, judgments and liabilities (including liabilities for penalties) of whatsoever kind or nature, and to reimburse the Trustee and each Holder for all costs and expenses,
including reasonable attorneys’ fees and expenses, arising out of or resulting from this Supplemental Indenture, including, without limitation, any breach hereof or Event of Default hereunder, or the exercise by the Trustee or any Holder, as
the case may be, of any right or remedy granted to it hereunder or under the other Transaction Documents under applicable law; provided, however, that the Company shall not be required to indemnify the Trustee or any Holder to the extent any
claim, demand, loss, judgment, liability, cost or expense is determined by final judgment (not subject to further appeal) of a court of competent jurisdiction to have arisen primarily from the gross negligence or willful misconduct of the Trustee or
such Holder, as the case may be. In no event shall the Trustee or any Holder be liable, in the absence of a determination of gross negligence or willful misconduct on its part by final judgment (not subject to further appeal) of a court of competent
jurisdiction, for any matter or thing in connection with this Supplemental Indenture other than to account for moneys actually received by it in accordance with the terms hereof. If and to the extent that the obligations of the Company under this
Section 5.11 are unenforceable for any reason, the Company hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. In any suit, proceeding or action brought by the
Trustee or any Holder under any Account or Contract that constitutes part of the Collateral for any sum owing thereunder, or to enforce any provisions of any such Account or Contract, the Company will save, indemnify and keep the Trustee and each
Holder harmless from and against all expense, loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction or liability whatsoever of the account debtor or obligor thereunder, arising out of a breach by the Company
of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such account debtor or obligor or its successors from the Company. 
  
 Section 5.09. Maintenance of Records. The Company will keep and
maintain at its own cost and expense satisfactory and complete records of the Collateral, including, without limitation, a record of all payments received and all credits granted with respect to the Accounts that constitute part of the Collateral.
For the further security of the Trustee for the ratable benefit of the Holders, the Company hereby grants to the Trustee, for the ratable benefit of the Holders, a security interest in all of the Company’s books and records pertaining to the
Collateral, and the Company shall turn over any such books and records for inspection at the office of the Company to the Trustee or any Holder or to their respective representatives during normal business hours at the request of the Trustee upon
reasonable prior notice from the Trustee or such Holder to the Company. 
  
 Section 5.10. Limitation on Liens on Collateral. The Company (x) will not create, incur or permit to exist, will defend the Collateral and the Mortgaged Property against, and will take such other action as is necessary to remove, any
Lien or claim on or to the Collateral or the Mortgaged Property, other than the Liens created hereby and Permitted Liens, and (y) will defend the right, title and interest of the Trustee in and to any of the Collateral and the Mortgaged Property
against the claims and demands of all persons whomsoever other than Permitted Liens. 
  

 -28- 

 Section 5.11. Limitations on Dispositions of Collateral. (a) Without the consent of the holders of
a majority in principal amount of the Securities, the Company will not sell, transfer, lease, assign or otherwise dispose of any of the Collateral or the Mortgaged Property to any Person, including, without limitation, any Subsidiary, or attempt,
offer or contract to do so, unless, by Board Resolution, it is determined that such Collateral or Mortgaged Property is no longer used or useful in the conduct of the business of the Company and its disposal is not materially disadvantageous to the
Holders. 
  
 Section 5.12. Performance of Contracts and
Agreements Giving Rise to Accounts. The Company will (i) exercise promptly and diligently each and every material right and perform each material obligation which it may have under each Contract that constitutes part of the Collateral and each
agreement giving rise to an Account that constitutes part of the Collateral (other than any right of termination) except where the Company determines in its reasonable business judgment that the failure to exercise such right or perform such
obligation is in the best interest of the Company. 
  
 Section
5.13. Further Identification of Collateral. The Company will furnish to the Trustee or any Holder from time to time, but no more than once within each six month period absent an Event of Default, upon the request of the Trustee or such Holder,
statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Trustee or such Holder may reasonably request, all in reasonable detail. 
  
 Section 5.14. Notices. The Company will advise the Trustee promptly,
in reasonable detail, at its address in accordance with Section 11.11 (i) of any Lien (other than Liens permitted hereunder) on any of the Collateral or Mortgaged Property of which the Company has actual notice, and (ii) of any Event of Default or
any event which, with notice or the lapse of time, or both, would become an Event of Default. 
  
 Section 5.15. Changes in Locations, Name, Etc. The Company will not (i) change the location of its chief executive office/chief place of business from One Acclaim Plaza, Glen Cove, New York, 11542 or remove its
books and records from such location or (ii) change its name, identity or corporate structure to such an extent that any financing statement filed in connection with this Supplemental Indenture would become misleading, unless in the case of the
preceding clauses (i) and (ii) it shall have given the Trustee at least 10 days prior written notice thereof and, prior to such action or event, shall have taken appropriate action to preserve and protect the Trustee’s security interest under
this Supplemental Indenture. 
  
 Section 5.16. Additional
Collateral in Respect of Pledged Securities. (1) In case any stock dividend shall be declared on any of the Pledged Securities, or any shares of stock or fractions thereof shall be issued pursuant to any stock split involving any of the Pledged
Securities, or any distribution of capital shall be made on any of the Pledged Securities or from the issuer of any Pledged Securities, or any property shall be distributed upon or with respect to the Pledged Securities or from the issuer of any
Pledged Securities pursuant to any 

  

 -29- 

 
recapitalization or reclassification of the capital of the issuer of any Pledged Securities, or pursuant to a reorganization thereof, the shares or other
property so distributed shall be delivered to the Trustee as additional collateral security for the Obligations. The Company will forthwith deliver to the Trustee certificates therefor, accompanied by three undated stock powers duly executed in
blank by the Company for each such certificate, with appropriate signature guarantees, in the case of capital stock or such other instruments of transfer as are acceptable to the Trustee, and will promptly thereafter deliver to the Trustee an
Officers’ Certificate describing such stock and certifying that the same has been duly pledged to the Trustee and deposited with the Trustee hereunder. The delivery of such stock powers and such Officers’ Certificate shall not be deemed
for any purpose to be acts required for creation of the Security Interest in such securities in favor of the Trustee for the benefit of the Holders. 
  
 (2) If an Event of Default occurs, then during any period in which an Event of Default is continuing, all cash dividends payable in respect of the Pledged
Securities shall be paid to the Trustee and retained by it as part of the Collateral. The Trustee shall also be entitled to retain as part of the Collateral the following, all of which shall be received directly by the Trustee: 
  
 (A) all other or additional stock or securities or property (other than cash)
paid or distributed by way of dividend or otherwise, as the case may be, in respect of the Pledged Securities; 
  
 (B) all other or additional stock or other securities or property (including cash) paid or distributed in respect of the Pledged Securities by way of
stock-split, spin-off, split-up, reclassification, combination of shares or similar rearrangement; and 
  
 (C) all other or additional stock or other securities or property (including cash) which may be paid in respect of the Collateral by reason of any
consolidation, merger, exchange of stock, conveyance of assets, liquidation, dissolution, or similar corporate reorganization. 
  
 (3) All dividends, distributions or other payments which are received by the Company contrary to the provisions of this Section 5.16 shall be received in
trust for the benefit of the Trustee, shall be segregated from other property or funds of the Company and shall be forthwith paid over to the Trustee by delivery to the Trustee as Collateral in the same form as so received (with any necessary
endorsement). If, upon the dissolution or liquidation (in whole or in part) of any issuer of Pledged Securities, any sum shall be paid upon or with respect to any of the Pledged Securities, such sum shall be paid over to the Trustee to be held by
the Trustee as additional collateral security for the Obligations. 
  
 Section 5.17. Limitations on Dividends and Other Share Payments. 
  
 The Company covenants and agrees that it will not declare or pay any dividends (other than dividends payable solely in shares of the Company on any shares of any class of its capital stock or make any payment on
account of the purchase, redemption or other retirement or acquisition of any shares of such stock or make or declare any distribution in respect thereof, either directly or indirectly (such dividend payments, purchases, redemptions, retirements,
acquisitions or distributions being herein called “Share Payments”). 
  

 -30- 

 The Company shall not enter into any agreement or become bound by any obligation to make any Share
Payment that would be prohibited by this Section 5.17. 
  
 The
Company will not permit any of its Subsidiaries to purchase any shares of any class of the Company other than a purchase of newly issued shares from the Company for cash at a price per share equal to the Current Market Price on the date of purchase.

  
 Section 5.18. Limitation on Certain Issuances of
Securities. The Company shall not, and shall not permit any Subsidiary to (a) issue any Common Stock Equivalent that directly or indirectly is convertible into, exchangeable for, or otherwise entitles the holder to acquire, shares of
Common Stock at a price that varies based on changes in the market price of the Common Stock, (b) directly or indirectly issue any Common Stock or Common Stock Equivalent under any agreement or arrangement that provides for re-pricing or adjusting
the price at which Common Stock is issued in connection therewith or which adjusts the number of shares of Common Stock issued in connection therewith (other than customary anti-dilution provisions contained in the governing instrument) or (c) enter
into any agreement for the issuance of shares of Common Stock under an arrangement for the Company to draw down from a commitment by any Person to issue shares of Common Stock or which allows the Company or such Subsidiary to exercise any put right
with respect to shares of Common Stock or any similar transaction. 
  
 Section 5.19. Delisting of the Common Stock. If the Common Stock shall cease to be listed on any of the Nasdaq, the NYSE and AMEX, then from the effective date of such delisting until the Common Stock shall be relisted on any of the
Nasdaq, the NYSE and AMEX, the Applicable Rate shall be 13 percent per annum. 
  
 ARTICLE SIX 
  
 PLEDGE, SECURITY INTEREST AND MORTGAGE; COLLATERAL 
 AND MORTGAGED PROPERTY 
  
 Subject to the execution of the GMAC Intercreditor Agreement, and to the rights of GMAC under the GMAC Credit Agreement, the Company and the Trustee shall
enter into a Supplemental Indenture or other amendment to the Indenture to incorporate herein the provisions of Annex VI and Annex VII to the Note Purchase Agreement. 
  
 ARTICLE SEVEN 
  
 REPURCHASE UPON A REPURCHASE EVENT

  
 Section 7.01. Repurchase Right. If a Repurchase
Event occurs at any time when any Note is outstanding, in addition to any other right of the Holders, each Holder shall 

  

 -31- 

 
have the right, at such Holder’s option, to require the Company to repurchase at the Repurchase Price such Holder’s Notes, or any portion thereof
specified by such Holder, by depositing an amount in cash with the Trustee equal to the applicable Repurchase Price payable to such Holder on or before the applicable Repurchase Date for such Repurchase Event. 
  
 Section 7.02. Notices; Method of Exercising Repurchase Rights, Etc.
(a) On or before the fifth Business Day after the occurrence of a Repurchase Event, the Company shall give to the Trustee and each Holder a Company Notice of the occurrence of the Repurchase Event and of the repurchase right set forth herein arising
as a result thereof. Such Company Notice shall set forth: 
  
 (i) the date by which the repurchase right must be exercised, and 
  
 (ii) a description of the procedure (set forth in this Section 7.02) which a Holder must follow to exercise the repurchase right.

  
 No failure of the Company to give a Company Notice or defect
therein shall limit any Holder’s right to exercise the repurchase right or affect the validity of the proceedings for the repurchase of any Note or portion thereof pursuant to this Article Seven. 
  
 (b) To exercise the repurchase right, a Holder shall deliver to the Company,
with a copy to the Trustee, on or before the 20th day after a Company Notice (or if no such Company Notice has been given, within 40 days after such Holder first learns of the Repurchase Event) a Holder Notice setting forth the name of such Holder
and the principal amount of Notes to be repurchased from such Holder. A Holder Notice may be revoked by the Holder giving such notice at any time prior to the applicable Repurchase Date or, if later, the time the Company deposits the applicable
Repurchase Price with the Trustee for payment to such Holder. 
  
 (c) If a Holder shall have given a Holder Notice with respect to a Repurchase Event, then on or before the applicable Repurchase Date for such Repurchase Event the Company shall deposit with the Trustee in immediately available funds an
amount equal to the aggregate Repurchase Price payable to the Holders, which amount shall be held in trust by the Trustee and applied by the Trustee as provided in this Section 7.02. On the applicable Repurchase Date, (or such later date as a
particular Holder surrenders the Note or Notes to be repurchased to the Trustee duly endorsed for transfer to the Trustee of the portion of the outstanding principal amount thereof to be repurchased), the Trustee shall pay the applicable Repurchase
Prices to the respective Holders who have so exercised repurchase rights (x) for amounts of $1,000,000.00 or greater, by wire transfer of immediately available funds to such accounts as specified by such Holder in writing to the Trustee at least one
Business Day prior to the applicable payment date and (y) in all other cases, by check mailed to such Holder on the applicable payment date at its registered address; provided, however, that if the aggregate amount deposited by the Company
with the Trustee to pay the Repurchase Prices in connection with a particular Repurchase Event shall be less than the aggregate amount of the Repurchase Prices payable to all such Holders, then the amount paid to each such Holder shall be an amount
equal to the product obtained by multiplying (x) the total amount so deposited by the Company with the Trustee in respect of the exercise of repurchase rights by the Holders by reason of such 

  

 -32- 

 
Repurchase Event times (y) a fraction of which the numerator is the amount of the Repurchase Price so payable to such Holder and the denominator is
the aggregate amount of Repurchase Prices so payable to all such Holders who have exercised repurchase rights. 
  
 Section 7.03. Other. (a) If the Company fails to deposit with the Trustee on or before the applicable Repurchase Date the Repurchase Price
of any Note (or portion thereof) as to which the repurchase right has been properly exercised pursuant to this Article Seven, then the Repurchase Price for such Note (or the portion thereof) which is required to have been so repurchased shall bear
interest to the extent not prohibited by applicable law from the applicable date the Company was required to make such deposit with the Trustee until so deposited at the Default Rate. 
  
 (b) A Holder Notice given by a Holder shall be deemed for all purposes to be in proper form unless the Company notifies such
Holder within one Business Day after such Holder Notice has been given (which notice from the Company shall specify all defects in such Holder Notice) and any Holder Notice containing any such defect shall nonetheless be effective on the date given
if such Holder promptly undertakes in writing to correct all such defects. No such claim of error shall limit or delay performance of the Company’s obligation to repurchase such portion of the Notes which is not in dispute 
  
 Section 7.04. Form of Company Notice. A Company Notice shall be in the
following form: 
  
 ACCLAIM ENTERTAINMENT, INC. 

 
 COMPANY NOTICE 
 (9% Senior Subordinated Convertible Note due 2007 
  

			
		
	 TO:
	 	 
	 	 	

	 	 	(Name of Holder)

  
 (1) A Repurchase Event
described in clause _____ of the definition of that term for the 9% Senior Subordinated Convertible Notes due 2007 (the “Notes”) of Acclaim Entertainment, Inc., a Delaware corporation (the “Company”), occurred on
________. As a result of such Repurchase Event, the Holders are entitled to exercise repurchase rights pursuant to Article Seven of the Supplemental Indenture, dated February 17, 2004, relating to the Notes (the “Supplemental
Indenture”). 
  
 (2) Each Holder’s repurchase right must
be exercised on or before ________. 
  
 (3) At or before
the date set forth in the preceding paragraph (2), a Holder must deliver to the Company a Holder Notice, in the form set forth in Section 7.05 of the Supplemental Indenture. 
  
 (4) In order to receive payment of the Repurchase Price, such Holder must also surrender to the Trustee the Note or Notes to
be repurchased, duly endorsed for transfer to the Trustee of the portion of the principal amount to be repurchased. 
  

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 (5) Capitalized terms used herein and not otherwise defined herein have the respective meanings provided
in the Note, the Original Indenture and the Supplemental Indenture. 
  

									
	 	 	 	 	 ACCLAIM ENTERTAINMENT, INC.

					
	 Date
	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Title:

  

	cc:	U.S. BANK TRUST NATIONAL ASSOCIATION, 

     as Trustee 
 100 Wall Street 
 16th Floor 
 New York, New York 10005 
  
 Attention: Ms. Beverly Freeney, Vice President 
  
 Section 7.05. Form of Holder Notice. A Holder Notice shall be in substantially the following form or such other form as the Company may agree with
a particular Holder giving such Holder Notice: 
  
 ACCLAIM
ENTERTAINMENT, INC. 
  
 HOLDER NOTICE 
  
 9% Senior Subordinated Convertible Note due 2007 
  

	TO:	ACCLAIM ENTERTAINMENT, INC. 

  
 (1) Pursuant to the terms of the 9% Senior Subordinated Convertible Note due 2007 (the “Note”), the undersigned Holder hereby elects to exercise
its right to require repurchase by the Company pursuant to Article Seven of the Supplemental Indenture of $______ principal amount of the Note, accrued and unpaid interest on such principal amount and, if applicable, Default Interest thereon,
at the Repurchase Price provided in the Supplemental Indenture. 
  
 (2) Capitalized terms used herein and not otherwise defined herein have the respective meanings provided in the Note, the Original Indenture and the Supplemental Indenture. 
  

 -34- 

									
				
	Date:	 	 	 	 	 	 NAME OF HOLDER:

	 	 	
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 By
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Signature of Registered Holder
 (Must be signed exactly as name
 appears in the Note.)

  

	cc:	U.S. BANK TRUST NATIONAL ASSOCIATION, 

     as Trustee 
 100 Wall Street 
 16th Floor 
 New York, New York 10005 
  
 Attention: Ms. Beverly Freeney, Vice President 
  
 ARTICLE EIGHT 
  
 CONVERSION 
  
 Section 8.01. Right to Convert. Subject to and upon compliance with the provisions of this Supplemental Indenture, the Holders shall have the
right, at the Holders’ option, at any time prior to the close of business on the Maturity Date (except that, if a Holder shall have exercised repurchase rights under Article Seven of this Supplemental Indenture, such conversion right shall
terminate with respect to the portion of such Holder’s Note or Notes to be repurchased on the last Trading Day prior to the later of (x) the date of such repurchase and (y) the date the Company pays or deposits in accordance with Section 11.14
the applicable Repurchase Price, unless in any such case the Company shall default in payment due upon repurchase thereof) to convert the principal amount of such Holder’s Note, or any portion of such principal amount which is at least $1,000
(or such lesser principal amount thereof as shall be outstanding at such time) into that number of fully paid and non-assessable shares of Common Stock (as such shares shall then be constituted) obtained by dividing (1) the principal amount of such
Note or portion thereof being converted by (2) the Conversion Price in effect on the applicable Conversion Date, by giving a Conversion Notice in the manner provided in Section 8.02 of this Supplemental Indenture; provided, however,
that, if at any time any Note is converted in whole or in part pursuant to this Section 8.01, the Company does not have available for issuance upon such conversion as authorized and unissued shares or in its treasury at least the number of
shares of Common Stock required to be issued pursuant hereto, then, at the election of the converting Holder made by notice from such Holder to the Company, such Note (or portion thereof as to which conversion has been requested), to the extent that
sufficient shares of Common Stock are not then available for issuance upon conversion, shall be converted into the 

  

 -35- 

 
right to receive from the Company, in lieu of the shares of Common Stock into which such Note or such portion thereof would otherwise be converted and which
the Company is unable to issue, payment in an amount equal to the product obtained by multiplying (x) the number of shares of Common Stock which the Company is unable to issue times (y) the arithmetic average of the Market Price for the
Common Stock during the five consecutive Trading Days immediately prior to the applicable Conversion Date. Any such payment shall, for all purposes of such Note, be deemed to be a payment of principal in the principal amount of the Security
converted, plus a premium equal to the total amount payable less the principal portion of this Security converted as to which such payment is required to be made because shares of Common Stock are not then available for issuance upon such
conversion. In connection with conversion of a Note or portion thereof, the Holder shall be entitled to payment in respect of accrued and unpaid interest and accrued and unpaid Default Interest, if any, on such Note or portion thereof converted to
the Conversion Date, provided, however, that in accordance with Section 307 of the Original Indenture where Notes are surrendered during a period between the close of business on a Regular Record Date and the opening of business on the next
succeeding Interest Payment Date, funds equal to the interest to be paid on the next succeeding Interest Payment Date with respect to such Notes shall be paid by the Holder to the Company upon conversion. A Holder is not entitled to any rights of a
holder of Common Stock until such Holder has converted a Note to Common Stock, and only to the extent such Note is deemed to have been converted to Common Stock under this Article Eight. For purposes of Sections 8.05 and 8.06, whenever a provision
references the shares of Common Stock into which a Note (or a portion thereof) is convertible or the shares of Common Stock issuable upon conversion of a Note (or a portion thereof) or words of similar import, any determination required by such
provision shall be made as if a sufficient number of shares of Common Stock were then available for issuance upon conversion in full of the Notes. 
  
 Section 8.02. Exercise of Conversion Right; Issuance of Common Stock on Conversion. (a) In order to exercise the conversion right with respect to a
Note, the Holder shall give a Conversion Notice (or such other notice which is acceptable to the Company) to the Company and the Trustee or to the office or agency designated by the Company for such purpose by notice to the Holders. A Conversion
Notice may be given by telephone line facsimile transmission to the numbers set forth on the form of Conversion Notice. In case of any conversion of Notes by a Holder for which the Conversion Notice is given on or after the date the Company gives an
Optional Redemption Notice and on or prior to the Optional Redemption Date for such redemption, such Holder shall have the right, exercisable by notice to the Company, to condition the conversion of Notes to which such Conversion Notice relates on
the Company satisfying all of the requirements for such redemption, in which case the Conversion Date shall be deemed to occur immediately prior to redemption of such Note on the applicable Optional Redemption Date. 
  
 (b) As promptly as practicable, but in no event later than three Trading Days
(if the converting Holder has requested delivery through the facilities of The Depository Trust Company), after a Conversion Notice in proper form is given as provided in Section 8.02(a) by a Holder, the Company shall issue and shall deliver to such
Holder or such Holder’s designee the number of full shares of Common Stock issuable upon such conversion of such Holder’s Note or portion thereof in accordance with the provisions of this Article and deliver a check or cash in 

  

 -36- 

 
respect of any fractional interest in respect of a share of Common Stock arising upon such conversion, as provided in Section 8.02(f) and, if applicable,
accrued and unpaid interest and Default Interest, if any, to the Conversion Date and any cash payment required pursuant to the proviso to the first sentence of Section 8.01 (which payment, if any, shall be paid no later than three Trading Days after
the applicable Conversion Date). 
  
 (c) Each conversion of a Note
(or portion thereof) shall be deemed to have been effected on the applicable Conversion Date, and the person in whose name any certificate or certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed to have
become on such Conversion Date the holder of record of the shares represented thereby; provided, however, that if a Conversion Date is a date on which the stock transfer books of the Company shall be closed such conversion shall constitute
the person in whose name the certificates are to be issued as the record holder thereof for all purposes on the next succeeding day on which such stock transfer books are open, but such conversion shall be at the Conversion Price in effect on the
applicable Conversion Date. 
  
 (d) A Conversion Notice shall be
deemed for all purposes to be in proper form unless the Company notifies the Holder giving such Conversion Notice by telephone line facsimile transmission within two Trading Days after such Conversion Notice has been given (which notice from the
Company shall specify all defects in such Conversion Notice) and any Conversion Notice containing any such defect shall nonetheless be effective on the date given if such Holder promptly undertakes to correct all such defects. No such claim of error
shall limit or delay performance of the Company’s obligation to issue upon such conversion the number of shares of Common Stock which are not in dispute. The Company shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of shares of Common Stock or other securities or property on conversion of any Note in a name other than that of the Holder converting such Note, and the Company shall not be required to issue or
deliver any such shares or other securities or property unless and until the person or persons requesting the issuance thereof shall have paid to the Company the amount of any such tax or shall have established to the reasonable satisfaction of the
Company that such tax has been paid. A Holder shall be responsible for the amount of any withholding tax payable in connection with any conversion of such Holder’s Note. 
  
 (e) (1) If a Holder shall have given a Conversion Notice in accordance with the terms of this Supplemental Indenture, the
Company’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of any action or inaction by the Trustee or such Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company to the Trustee or the Holders, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Trustee, any Holder or any other person of any obligation to the Company or any violation or alleged violation of law by the Trustee, any Holder or any other person, and
irrespective of any other circumstance which might otherwise limit such obligation of the Company to such Holder in connection with such conversion; provided, however, that nothing herein shall limit or prejudice the right of the Company to
pursue any such claim in any other manner permitted by applicable law. The occurrence of an event which requires an 

  

 -37- 

 
adjustment of the Conversion Price as contemplated by Section 8.03 shall in no way restrict or delay the right of the Holders to receive certificates for
Common Stock upon conversion of Notes and the Company shall use its best efforts to implement such adjustment on terms reasonably acceptable to the Holders within three Trading Days of such occurrence. 
  
 (2) If the Company fails to issue and deliver the shares of Common Stock to a
converting Holder in connection with a particular conversion of a Note promptly, but in no event later than three Trading Days (if the converting Holder has requested delivery through the facilities of The Depository Trust Company), after such
Holder gives (as provided in Section 8.02(a)) the Conversion Notice in proper form for such conversion, in addition to any other liabilities the Company may have hereunder and under applicable law (A) the Company shall pay or reimburse such Holder
on demand for all out-of-pocket expenses, including, without limitation, reasonable fees and expenses of legal counsel, incurred by such Holder as a result of such failure, (B) if as a result of such failure such Holder shall suffer any direct
damages or liabilities from such failure (including, without limitation, margin interest and the cost of purchasing securities to cover a sale (whether by such Holder or such Holder’s securities broker) or borrowing of shares of Common Stock by
such Holder for purposes of settling any trade involving a sale of shares of Common Stock made by such Holder during the period beginning on the Issuance Date and ending on the date the Company delivers or causes to be delivered to such Holder such
shares of Common Stock, then the Company shall upon demand of such Holder pay to such Holder an amount equal to the actual direct, out-of-pocket damages and liabilities suffered by such Holder by reason thereof which such Holder documents to the
reasonable satisfaction of the Company, and (C) such Holder may by written notice (which may be given by mail, courier, personal service or telephone line facsimile transmission) or oral notice (promptly confirmed in writing) to the Company, with a
copy to the Trustee, given at any time prior to delivery to such Holder of the shares of Common Stock issuable in connection with such exercise of such Holder’s conversion right, rescind such exercise and the Conversion Notice relating thereto,
in which case such Holder shall thereafter be entitled to convert that portion of such Note as to which such exercise is so rescinded and to exercise its other rights and remedies with respect to such failure by the Company. Notwithstanding the
foregoing the Company shall not be liable to any Holder under clause (B) of the immediately preceding sentence to the extent the failure of the Company to deliver or to cause to be delivered such shares of Common Stock results from fire, flood,
storm, earthquake, shipwreck, strike, war, acts of terrorism, crash involving facilities of a common carrier, acts of God, or any similar event outside the control of the Company. A converting Holder shall notify the Company in writing (or by
telephone conversation, confirmed in writing) as promptly as practicable following the third Trading Day after such Holder gives a Conversion Notice if such Holder becomes aware that such shares of Common Stock so issuable have not been received as
provided herein, but any failure so to give such notice shall not affect such Holder’s rights under the Original Indenture, this Supplemental Indenture, the Notes or otherwise. 
  
 (f) No fractional shares of Common Stock shall be issued upon conversion of any Note but, in lieu of any fraction of a share
of Common Stock which would otherwise be issuable in respect of such conversion, the Company may round the number of shares of Common Stock issued on such conversion up to the next highest whole share or may pay lawful money of the United States of
America for such fractional share, based on a value of one share of 

  

 -38- 

 
Common Stock being equal to the Market Price of the Common Stock on the applicable Conversion Date. 
  
 Section 8.03. Adjustment of Conversion Price. The Conversion
Price shall be adjusted from time to time by the Company as follows: 
  
 (a) Adjustments for Certain Dividends or Distributions in Common Stock. 
  
 In case the Company shall on or after the Issuance Date pay a dividend or make a distribution to all holders of the outstanding Common Stock in shares of Common Stock, the Conversion Price in effect at the opening of
business on the date following the date fixed for the determination of stockholders entitled to receive such dividend or other distribution shall be reduced by multiplying such Conversion Price by a fraction of which the numerator shall be the
number of shares of Common Stock outstanding at the close of business on the Record Date fixed for such determination and the denominator shall be the sum of such number of shares and the total number of shares constituting such dividend or other
distribution, such reduction to become effective immediately after the opening of business on the day following the Record Date. If any dividend or distribution of the type described in this Section 8.03(a) is declared but not so paid or made, the
Conversion Price shall again be adjusted to the Conversion Price which would then be in effect if such dividend or distribution had not been declared. 
  
 (b) Weighted Adjustments for Issuance of Certain Rights or Warrants. 
  
 In case the Company shall on or after the Issuance Date issue rights or warrants (other than any rights or warrants
(including the Preferred Share Purchase Rights) referred to in Section 8.03(d)) to all holders of its outstanding shares of Common Stock entitling them (for a period expiring within 45 days after the date fixed for the determination of stockholders
entitled to receive such rights or warrants) to subscribe for or purchase shares of Common Stock at a price per share less than the Current Market Price on the Record Date fixed for the determination of stockholders entitled to receive such rights
or warrants, the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect at the opening of business on the date after such Record Date by a fraction of which the numerator
shall be the number of shares of Common Stock outstanding at the close of business on the Record Date plus the number of shares which the aggregate offering price of the total number of shares so offered would purchase at such Current Market Price,
and the denominator shall be the number of shares of Common Stock outstanding on the close of business on the Record Date plus the total number of additional shares of Common Stock so offered for subscription or purchase. Such adjustment shall
become effective immediately after the opening of business on the day following the Record Date fixed for determination of stockholders entitled to receive such rights or warrants. To the extent that shares of Common Stock are not delivered pursuant
to such rights or warrants, upon the expiration or termination of such rights or warrants, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect had the adjustments made upon the issuance of such rights or
warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. In the event that such rights or warrants are not so issued, the Conversion Price shall again be adjusted to be the Conversion Price which
would then be in effect if such date fixed for the determination of 

  

 -39- 

 
stockholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holder to subscribe
for or purchase shares of Common Stock at less than such Current Market Price, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received for such rights or warrants,
the value of such consideration, if other than cash, to be determined by the Board of Directors. 
  
 (c) Adjustments for Certain Subdivisions of the Common Stock. 
  
 In case the outstanding shares of Common Stock shall on or after the Issuance Date be subdivided into a greater number of
shares of Common Stock, the Conversion Price in effect at the opening of business on the earlier of the day following the day upon which such subdivision becomes effective and the day on which “ex-” trading of the Common Stock begins with
respect to such subdivision shall be proportionately reduced, and conversely, in case outstanding shares of Common Stock shall be combined into a smaller number of shares of Common Stock, the Conversion Price in effect at the opening of business on
the earlier of the day following the day upon which such combination becomes effective and the day on which “ex-” trading of the Common Stock with respect to such combination begins shall be proportionately increased, such reduction or
increase, as the case may be, to become effective immediately after the opening of business on the earlier of the day following the day upon which such subdivision or combination becomes effective and the day on which “ex-” trading of the
Common Stock begins with respect to such subdivision or combination. 
  
 (d) Adjustments for Certain Dividends and Distributions. 
  
 In case the Company shall on or after the Issuance Date, by dividend or otherwise, distribute to all holders of its Common Stock shares of any class of capital stock of the Company (other than any dividends or
distributions to which Section 8.03(a) applies) or evidences of its indebtedness, cash or other assets (including securities, but excluding any rights or warrants referred to in Section 8.03(b) and dividends and distributions paid exclusively in
cash and excluding any capital stock, evidences of indebtedness, cash or assets distributed upon a merger or consolidation to which Section 8.04 applies) (the foregoing hereinafter in this Section 8.03(d) called the “Securities”)), then,
in each such case, subject to the second paragraph of this Section 8.03(d), the Conversion Price shall be reduced so that the same shall be equal to the price determined by multiplying the Conversion Price in effect immediately prior to the close of
business on the Record Date with respect to such distribution by a fraction of which the numerator shall be the Current Market Price on such date less the Fair Market Value (as determined by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution) on such date of the portion of the Securities so distributed applicable to one share of Common Stock and the denominator shall be such Current Market Price, such reduction to become effective
immediately prior to the opening of business on the day following the Record Date; provided, however, that in the event the then Fair Market Value (as so determined) of the portion of the Securities so distributed applicable to one share of
Common Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that the Holders shall have the right to receive upon conversion of the Notes (or any
portion thereof) the amount of Securities each Holder would have received had the Holder converted the Notes (or such portion thereof) immediately prior to such Record Date. In the event that such dividend or distribution is not so paid or made,

  

 -40- 

 
the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such dividend or distribution had not been declared.
If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 8.03(d) by reference to the actual or when issued trading market for any Securities comprising all or part of such distribution, it must in
doing so consider the prices in such market over the same period used in computing the Current Market Price, to the extent possible. 
  
 Rights or warrants distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the
Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (a “Trigger Event”): (i) are deemed to be transferred with such shares of Common
Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of Common Stock, shall not be deemed to have been distributed for purposes of this Section 8.03 (and no adjustment to the Conversion Price under this Section
8.03 will be required) until the occurrence of the earliest Trigger Event. If any such rights or warrants, including any such existing rights or warrants distributed prior to the Issuance Date (including the Preferred Share Purchase Rights), are
subject to Trigger Events, upon the satisfaction of each of which such rights or warrants shall become exercisable to purchase different securities, evidences of indebtedness or other assets, then the occurrence of each such Trigger Event shall be
deemed to be such date of issuance and Record Date with respect to new rights or warrants (and a termination or expiration of the existing rights or warrants without exercise by the holder thereof) (so that, by way of illustration and not
limitation, the dates of issuance of any such rights shall be deemed to be the dates on which such rights become exercisable to purchase capital stock of the Company, and not the date on which such rights may be issued, or may become evidenced by
separate certificates, if such rights are not then so exercisable). In addition, in the event of any distribution of rights or warrants, or any Trigger Event with respect thereto (including the Preferred Share Purchase Rights), that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Price under this Section 8.03 was made (1) in the case of any such rights or warrants which shall all have been redeemed or repurchased without exercise by any
holders thereof, the Conversion Price shall be readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or
repurchase price received by a holder or holders of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or
repurchase, and (2) in the case of such rights or warrants (including the Preferred Share Purchase Rights) which shall have expired or been terminated without exercise by any holders thereof, the Conversion Price shall be readjusted as if such
rights and warrants had not been issued. 
  
 For purposes of this
Section 8.03(d) and Sections 8.03(a) and (b), any dividend or distribution to which this Section 8.03(d) is applicable that also includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock to which
Section 8.03(b) applies (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets, shares of capital stock, rights or warrants other than such shares of Common Stock or rights or warrants to
which Section 8.03(b) applies (and any Conversion Price reduction required by this Section 8.03(d) with respect to such dividend or 

  

 -41- 

 
distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (and any
further Conversion Price reduction required by Sections 8.03(a) and (b) with respect to such dividend or distribution shall then be made), except (A) the Record Date of such dividend or distribution shall be substituted as “the date fixed for
the determination of stockholders entitled to receive such dividend or other distribution”, “Record Date fixed for such determination” and “Record Date” within the meaning of Section 8.03(a) and as “the date fixed for
the determination of stockholders entitled to receive such rights or warrants”, “the Record Date fixed for the determination of the stockholders entitled to receive such rights or warrants” and “such Record Date” within the
meaning of Section 8.03(b) and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding at the close of business on the Record Date fixed for such determination” within the meaning of
Section 8.03(a). 
  
 (e) Adjustments for Certain Issuances of
Newly Issued Shares. 
  
 (1) In case at any time on or after
the Issuance Date the Company shall issue shares of its Common Stock or Common Stock Equivalents (collectively, the “Newly Issued Shares”), other than an issuance pro rata to all holders of its outstanding Common Stock, at a price below
the greater of (x) the Specified Market Value of the Common Stock at the time of such issuance and (y) the Conversion Price in effect at the time of such issuance, then following such issuance of Newly Issued Shares the Conversion Price shall be
adjusted as provided in this Section 8.03(e). The Conversion Price following any such adjustment shall be determined by multiplying the Conversion Price immediately prior to such adjustment by a fraction, of which the numerator shall be the sum of
(a) the number of shares of Common Stock outstanding immediately prior to the issuance of the Newly Issued Shares (calculated on a fully-diluted basis assuming the conversion of all options, warrants, purchase rights or convertible securities which
are exercisable at the time of the issuance of the Newly Issued Shares) plus (b) the number of shares of Common Stock which the aggregate consideration, if any, received by the Company for the number of Newly Issued Shares would purchase at a
price equal to the greater of (x) the Specified Market Value of the Common Stock at the time of such issuance and (y) the Conversion Price in effect at the time of such issuance, and the denominator shall be the sum of (X) the number of shares of
Common Stock outstanding immediately prior to the issuance of the Newly Issued Shares (calculated on a fully-diluted basis assuming the exercise or conversion of all options, warrants, purchase rights or convertible securities which are exercisable
or convertible at the time of the issuance of the Newly Issued Shares) plus (Y) the number of Newly Issued Shares. The adjustment provided for in this Section 8.03(e) may be expressed as the following mathematical formula: 
  

													
	 	 	 	 	 	  	( O +(C /	 	 	  	x	  	 
	 	 	 	 	P))	  	 	 	CP	  	 	  	 
	 	 	NCP	 	 	  	( O + N	 	 	  	 	  	 
	 	 	 	 	)	  	 	 	 	  	 	  	 

  
 where: 
  

							
	 	 	 C
	 	=	  	aggregate consideration received by the Company for the Newly Issued Shares

  
  

 -42- 

							
				
	 	 	 N
	  	=	  	number of Newly Issued Shares
				
	 	 	 O
	  	=	  	number of shares of Common Stock outstanding (on a fully diluted basis, as described above) immediately prior to the issuance of the Newly Issued Shares
				
	 	 	 P
	  	=	  	the greater of (x) the Specified Market Value of the Common Stock at the time of issuance of the Newly Issued Shares and (y) the Conversion Price in effect at the time of issuance of the
Newly Issued Shares
				
	 	 	 CP
	  	=	  	Conversion Price immediately prior to the issuance of the Newly Issued Shares
				
	 	 	 NCP
	  	=	  	Conversion Price immediately after the issuance of the Newly Issued Shares

  
 (2) Notwithstanding
the foregoing, no adjustment shall be made under this Section 8.03(g) by reason of: 
  
 (A) the issuance by the Company of shares of Common Stock pro rata to all holders of the Common Stock so long as (i) any adjustment to the
Conversion Price that is required by Section 8.03(a) is made and (ii) the Company shall have given notice of such issuance thereof to the Holders pursuant to Section 8.06; 
  
 (B) the issuance by the Company of the Notes and the Warrants pursuant to the Note Purchase Agreement and
the issuance by the Company of shares of Common Stock upon conversion of the Notes or upon exercise of the Warrants in accordance with the terms hereof and thereof; and 
  
 (C) the issuance by the Company of shares of Common Stock or options to purchase Common Stock to employees,
directors and consultants under a stock compensation plan duly adopted by the Board of Directors. 
  
 (3) In case at any time on or after the Issuance Date the Company shall issue shares of Common Stock or Common Stock Equivalents to any Subsidiary, the
Conversion Price shall be subject to adjustment as and to the extent provided in this Section 8.03(e) by reason of such issuance. In case at any time on or after the Issuance Date any Subsidiary shall sell any shares of Common Stock or Common Stock
Equivalents, such sale shall be deemed for purposes of this Section 8.03(e) to be the issuance of such shares of Common Stock or Common Stock Equivalents by the Company, and the Conversion Price shall also be subject to further adjustment as and to
the extent provided in this Section 8.03(e) by reason of such sale of shares of Common Stock or Common Stock Equivalents by such Subsidiary. 
  
 (f) Adjustment for Failure to Obtain Registration. 
  
 If the effective date (the “SEC Effective Date”) for the Registration Statement relating to the 

  

 -43- 

 
resale of all of the Notes issued or issuable pursuant to the Note Purchase Agreement and the resale of all shares of Common Stock issued or issuable upon
conversion of all such Notes and exercise of all Warrants issued or issuable pursuant to the Note Purchase Agreement, which Registration Statement shall meet the requirements of the Note Purchase Agreement, shall not have occurred on or before the
date that is 182 days after the Issuance Date, then immediately after the close of business on the date that is 182 days after the Issuance Date the Conversion Price shall be reduced to the Conversion Price that would be in effect at that time if
the Conversion Price had been $.60 on the Issuance Date and thereafter adjusted in accordance with Sections 8.03(a), (b), (c), (d), and (e) to such date that is 182 days after the Issuance Date. 
  
 (g) De Minimus Adjustments. 
  
 No adjustment in the Conversion Price shall be required unless such
adjustment would require an increase or decrease of at least 1% in such price; provided, however, that any adjustments which by reason of this Section 8.03(g) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Article Eight shall be made by the Company and shall be made to the nearest cent or to the nearest one hundredth of a share, as the case may be. 
  
 No adjustment need be made for a change in the par value of the Common Stock
or from par value to no par value or from no par value to par value. 
  
 (h) Company Notice of Adjustments. 
  
 Whenever
the Conversion Price is adjusted as herein provided, the Company shall promptly, but in no event later than five Business Days thereafter, give a notice to the Holders, with a copy to the Trustee, setting forth the Conversion Price after such
adjustment and setting forth a brief statement of the facts requiring such adjustment, but which statement shall not include any information which would be material non-public information for purposes of the 1934 Act. Failure to deliver such notice
shall not affect the effectiveness, legality or validity of any such adjustment. Notwithstanding the immediately preceding sentence, unless and until the Trustee has received the notice setting forth an adjustment of the Conversion Price, the
Trustee may assume that no such adjustment has been made and that the last Conversion Price of which it has knowledge remains in effect. 
  
 (i) Effectiveness of Certain Adjustments. 
  
 In any case in which this Section 8.03 provides that an adjustment shall become effective immediately after a Record Date for an event, the Company may
defer until the occurrence of such event (i) issuing to the Holders in connection with any conversion of Notes after such Record Date and before the occurrence of such event the additional shares of Common Stock issuable upon such conversion by
reason of the adjustment required by such event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment and (ii) paying to such Holder any amount in cash in lieu of any fraction pursuant to Section
8.02(f). 
  
 (j) Outstanding Shares. 
  
 For purposes of this Section 8.03, 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 

  

 -44- 

 
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any
distribution on shares of Common Stock held in the treasury of the Company other than dividends or distributions payable only in shares of Common Stock. 
  
 (k) Additional Reductions in Conversion Price. 
  
 The Company may make such reductions in the Conversion Price, in addition to those required by Sections 8.03(a), (b), (c), (d), and (e) as the Board of
Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock) or from any event treated as such
for income tax purposes. 
  
 Section 8.04. Effect of
Reclassification, Consolidation, Merger or Sale. (a) If any of the following events occur, namely (i) any reclassification or change of the outstanding shares of Common Stock (other than a change in par value, or from par value to no par value,
or from no par value to par value, or as a result of a subdivision or combination), (ii) any consolidation, merger or combination of the Company with another Person as a result of which holders of Common Stock shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, or (iii) any sale or conveyance of the properties and assets of the Company as, or substantially as, an entirety to any other Person as a
result of or in connection with which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, then prior to such reclassification,
change, consolidation, merger, combination or sale the Company or the successor, surviving or purchasing Person, as the case may be, in such transaction shall execute 
  
 (A) with the Trustee an indenture supplemental to the Indenture and this Supplemental Indenture providing that: 

 
 (x) the Notes shall be convertible into the kind and
amount of shares of stock and other securities or property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance by the holder of a number of shares of Common Stock issuable
upon conversion of the Notes immediately prior to such reclassification, change, consolidation, merger, combination, sale or conveyance assuming such holder of Common Stock did not exercise such holder’s rights of election, if any, as to the
kind or amount of securities, cash or other property receivable upon such consolidation, merger, statutory exchange, sale or conveyance (provided that, if the kind or amount of securities, cash or other property receivable upon such
consolidation, merger, statutory exchange, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election shall not have been exercised (“non-electing share”), then for the purposes of this
Section 8.04 the kind and amount of securities, cash or other property receivable upon such consolidation, merger, statutory exchange, sale or conveyance for each non-electing share shall be deemed to be the kind and amount so receivable per share
by a plurality of the non-electing shares), and 
  

 -45- 

 (y) in the case of any such successor, surviving or purchasing Person, upon such
consolidation, merger, combination, sale or conveyance such successor, surviving or purchasing Person shall be jointly and severally liable with the Company for the payment and performance of all of the Company’s obligations under the Original
Indenture, this Supplemental Indenture, the Notes and the other Transaction Documents including, without limitation, the registration provisions of Section 8 of the Note Purchase Agreement, and 
  
 (B) if registration or qualification is required under the
1933 Act or applicable state law for (i) the modification of the Notes as contemplated by the indenture supplemental to the Indenture and this Supplemental Indenture provided for in the immediately preceding clause (A), (ii) the modification of the
Warrants as provided therein, (iii) the issuance to the Holders or the holders of the Warrants of such shares of stock and other securities so issuable upon conversion of the Notes or exercise of the Warrants following such transaction, or (iv) the
public resale by the Holders of the Notes or such shares of stock or other securities so issuable upon conversion of the Notes or exercise of the Warrants following such transaction, 
  
 then in any such case in the immediately preceding clause (i), (ii), (iii) or (iv) such registration or qualification shall be completed
prior to such reclassification, change, consolidation, merger, combination or sale. Such indenture supplemental to the Indenture and this Supplemental Indenture shall provide for adjustments in the Conversion Price which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article. If, in the case of any such reclassification, change, consolidation, merger, combination, sale or conveyance, 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 corporation, as the case may be, in such reclassification, change, consolidation, merger,
combination, sale or conveyance, then such indenture supplemental to the Indenture and this Supplemental Indenture shall also be executed by such other Person and shall contain such additional provisions to protect the interests of the Holders as
the Board of Directors shall reasonably consider necessary by reason of the foregoing, including, to the extent practicable, the provisions providing for the repurchase rights set forth in Article Seven herein. 
  
 (b) The above provisions of this Section shall similarly apply to successive
reclassifications, changes, consolidations, mergers, combinations, sales and conveyances. 
  
 (c) If this Section 8.04 applies to any event or occurrence, Section 8.03 shall not apply to such event or occurrence. 
  
 (d) The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any such supplemental indenture to the
Indenture and this Supplemental Indenture relating either to the kind or amount of shares of stock or other securities or property or cash receivable by the Holders upon the conversion of the Notes or exercise of the Warrants after any such
consolidation, merger, conveyance, transfer, sale or lease or to any such adjustment, but may accept as conclusive evidence of the correctness of any such 

  

 -46- 

 
provisions, and shall be protected in relying upon, an Opinion of Counsel with respect thereto, which the Company shall cause to be furnished to the Trustee
upon request. 
  
 Section 8.05. Reservation of Shares; Shares to Be Fully Paid;
Listing of Common Stock. 
  
 (a) The Company shall reserve
and keep available, free from preemptive rights, out of its authorized but unissued shares of Common Stock or shares of Common Stock held in treasury, solely for issuance upon conversion of the Notes, and in addition to the shares of Common Stock
required to be reserved by the terms of the Warrants, sufficient shares to provide for the conversion of the Notes from time to time as the Notes are converted. 
  

(b) Before taking any action which would cause an adjustment reducing the Conversion Price below the then par value, if any, of the shares of Common
Stock issuable upon conversion of the Notes, 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
Conversion Price. 
  
 (c) The Company covenants that all shares of
Common Stock issued upon conversion of the Notes will be fully paid and non-assessable by the Company and free from all taxes, Liens and charges with respect to the issue thereof. 
  
 (d) The Company covenants that if any shares of Common Stock to be provided for the purpose of conversion of the Notes
hereunder require registration with or approval of any governmental authority under any federal or state law before such shares may be validly issued upon conversion, the Company will in good faith and as expeditiously as possible endeavor to secure
such registration or approval, as the case may be. 
  
 (e) The
Company covenants that, so long as the Common Stock shall be listed on the Nasdaq, the NYSE, the AMEX or any other national securities exchange, the Company shall seek to obtain and, so long as the Common Stock shall be so listed on such market or
exchange, shall seek to maintain approval for listing thereon of all Common Stock issuable upon conversion of or in payment of interest on the Notes. 
  
 Section 8.06. Notice to Holders Prior to Certain Actions. In case on or after the Issuance Date: 
  
 (a) the Company shall declare a dividend (or any other distribution) on its
Common Stock (other than in cash out of retained earnings); or 
  
 (b) the Company shall authorize the granting to the holders of its Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other rights or warrants; or 
  
 (c) the Board of Directors shall authorize any reclassification of the Common
Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par value, or from par value to no par value, or from no par value to par 

  

 -47- 

 
value), or any consolidation or merger or other business combination transaction to which the Company is a party and for which approval of any stockholders
of the Company is required, or the sale or transfer of all or substantially all of the assets of the Company; or 
  
 (d) there shall be pending the voluntary or involuntary dissolution, liquidation or winding-up of the Company; 
  
 the Company shall give the Holders, as promptly as possible but in any event at least ten
Trading Days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is not to be taken, the date as of
which the holders of Common Stock of record to be entitled to such dividend, distribution or rights are to be determined, or (y) the date on which such reclassification, consolidation, merger, other business combination transaction, sale, transfer,
dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of which it is expected that holders of Common Stock of record who shall be entitled to exchange their Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, other business combination transaction, sale, transfer, dissolution, liquidation or winding-up shall be determined. Such notice shall not include any information which would be material
non-public information for purposes of the 1934 Act. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up. In the case of any such action of which the Company gives such notice to the Holders or is required to give such notice to the Holders, the Holders shall be entitled to give Conversion Notices which are contingent on the
completion of such action. 
  
 Section 8.07. Limitation on
Conversions. (a) Notwithstanding anything to the contrary contained in the Indenture or this Supplemental Indenture, the number of shares of Common Stock that may be acquired at any time by a Holder upon conversion of any Note shall not exceed a
number that, when added to the total number of shares of Common Stock deemed beneficially owned by such Holder (other than by virtue of the ownership of securities or rights to acquire securities (including, without limitation, other Notes and the
Warrants) that have limitations on the right of the holder thereof to convert, exercise or purchase similar to the limitation set forth herein (the “Excluded Shares”)), together with all shares of Common Stock beneficially owned at such
time (other than by virtue of the ownership of Excluded Shares) by Persons whose beneficial ownership of Common Stock would be aggregated with the beneficial ownership by such Holder for purposes of determining such Holder’s beneficial
ownership or determining whether a group exists or for purposes of determining the Holder’s beneficial ownership (the “Aggregation Persons”), in either such case for purposes of Section 13(d) of the 1934 Act and Regulation 13D-G
thereunder (including, without limitation, as the same is made applicable to Section 16 of the 1934 Act and the rules promulgated thereunder), would result in beneficial ownership by such Holder or such group of more than 9.9% of the shares of
Common Stock for purposes of Section 13(d) or Section 16 of the 1934 Act and the rules promulgated thereunder (as the same may be modified as provided herein, the “Restricted Ownership Percentage”). The Restricted Ownership Percentage
shall be reduced from time to time immediately upon, and only to the extent that, Section 16 of the 1934 Act or the rules promulgated thereunder (or any successor statute or rules) is changed to reduce the beneficial 

  

 -48- 

 
ownership percentage threshold thereunder to a percentage less than 10%, in which case the Restricted Ownership Percentage shall be reduced to a percentage
that is 0.1% below such threshold. If at any time the limits in this Section 8.07 make any Note held by any Holder inconvertible in whole or in part, the Corporation shall not by reason thereof be relieved of its obligation to issue shares of Common
Stock at any time or from time to time thereafter upon conversion of such Note as and when shares of Common Stock may be issued in compliance with such restrictions. 
  
 (b) For purposes of this Section 8.07, in determining the number of outstanding shares of Common Stock at any time a Holder
may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s then most recent Form 10-Q, Form 10-K or other public filing with the SEC, as the case may be, (2) a public announcement by the Company that is later
than any such filing referred to in the preceding clause (1), (3) any other notice by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding and (4) knowledge the Holder may have about the number of shares
of Common Stock issued upon conversions or exercises of Notes, Warrants or other Common Stock Equivalents by any Person, including the such Holder, which are not reflected in the information referred to in the preceding clauses (1) through (3). Upon
the written request of any Holder, the Company shall within three Business Days confirm in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of Common Stock Equivalents, including, without limitation, the Notes and the Warrants, by the Holder or its affiliates, in each such case subsequent to, the date as of which such number
of outstanding shares of Common Stock was reported. 
  
 ARTICLE NINE 
  
 OPTIONAL REDEMPTION 
  
 Section 9.01. Optional Redemption Right. At any time during the Optional Redemption Period, the Company shall have the right to redeem at any one time all or from time to time any part of the principal amount of the Notes Outstanding
at the Optional Redemption Price pursuant to this Article Nine on any Optional Redemption Date, so long as the following conditions are met: 
  
 (1) during a period of 20 consecutive Trading Days ending on or after the commencement of the Optional Redemption Period and ending not
more than five Trading Days prior to the date the Company gives a particular Optional Redemption Notice, on each such Trading Day the Market Price of the Common Stock shall be at least equal to the applicable Optional Redemption Threshold Price for
such Trading Day; 
  
 (2) on the date such
Optional Redemption Notice is given and at all times thereafter to and including the applicable Optional Redemption Date, no Event of Default shall have occurred or be continuing; 
  

 -49- 

 (3) on the date such Optional Redemption Notice is given and at all times thereafter to
and including the applicable Optional Redemption Date, no Repurchase Event shall have occurred with respect to which any Holder has the right to exercise repurchase rights pursuant to Article Seven or with respect to which any Holder has exercised
such repurchase rights and the Repurchase Price has not been paid to such Holder; 
  
 (4) on the first day in such period of 20 consecutive Trading Days and at all times thereafter to and including the applicable Optional
Redemption Date, (x) the Registration Statement shall be effective and available for use by the Holders and the holders of the Warrants for the resale of the Notes and the shares of Common Stock issued and issuable upon conversion of the Notes and
upon exercise of the Warrants, as the case may be, and is reasonably expected to remain effective and available for such use for at least 30 days after the applicable Optional Redemption Date; and 
  
 (5) during such period of 20 consecutive Trading Days during
which the Market Price is at least equal to the Optional Redemption Price and at all times thereafter to and including the applicable Optional Redemption Date, the Common Stock shall be listed and traded on Nasdaq, the NYSE or AMEX and no suspension
of trading in the Common Stock shall be in effect. 
  
 Section
9.02. Optional Redemption Notice. (a) In order to exercise its right of redemption under this Article Nine, the Company shall give an Optional Redemption Notice to the Holders not less than 15 Trading Days or more than 20 Trading Days prior to
the Optional Redemption Date stating that: (1) the Company is exercising its right to redeem a specified portion (which may be all, if so specified by the Company) of the Note(s) Outstanding in accordance with this Article Nine, (2) the principal
amount of each Holder’s Note to be redeemed, (3) the Optional Redemption Price, (4) the Optional Redemption Date and (5) that all of the conditions of the Indenture and this Supplemental Indenture entitling the Company to call the Notes for
redemption have been met. 
  
 (b) An Optional Redemption Notice
shall be in the following form: 
  
 ACCLAIM ENTERTAINMENT, INC.

  
 OPTIONAL REDEMPTION NOTICE 
 (Article Nine of 9% Senior Subordinated Convertible Note due 2007) 
  

			
	TO:	 	 
	 	 	

	 	 	(Name of Holder)

  
 (1) Pursuant to the
terms of the 9% Senior Subordinated Convertible Note due 2007 (the “Note”), Acclaim Entertainment, Inc., a Delaware corporation (the “Company”), hereby notifies the above-named Holder that the Company is exercising its right to
redeem the Note identified below in accordance with Article Nine of the Supplemental Indenture as set forth below: 
  
 (i) The principal amount of the Note to be redeemed is
$                    . 
  

 -50- 

 (ii) The Optional Redemption Price is
$                    . 
  
 (iii) The Optional Redemption Date is
                    . 
  
 (2) All of the conditions specified in the Supplemental Indenture and the Indenture entitling the Company to call the Note (or a portion thereof) for
redemption have been satisfied. 
  
 (3) The 20 consecutive Trading
Days on which the Market Price exceeded the Optional Redemption Threshold Price by reason of which the Company is entitled to give this Notice of Redemption are as follows: 
  

							
	 	  	 Trading Day

	  	 Optional Redemption Threshold Price

	  	 Market
Price

	1.	  	 	  	 	  	 
	2.	  	 	  	 	  	 
	3.	  	 	  	 	  	 
	4.	  	 	  	 	  	 
	5.	  	 	  	 	  	 
	6.	  	 	  	 	  	 
	7.	  	 	  	 	  	 
	8.	  	 	  	 	  	 
	9.	  	 	  	 	  	 
	10.	  	 	  	 	  	 
	11.	  	 	  	 	  	 
	12.	  	 	  	 	  	 
	13.	  	 	  	 	  	 
	14.	  	 	  	 	  	 
	15.	  	 	  	 	  	 
	16.	  	 	  	 	  	 
	17.	  	 	  	 	  	 
	18.	  	 	  	 	  	 
	19.	  	 	  	 	  	 
	20.	  	 	  	 	  	 

  
 (4) Capitalized terms
used herein and not otherwise defined herein have the respective meanings provided in the Note, the Indenture and the Supplemental Indenture. 
  

 -51- 

									
	 Date _________________________________________
	 	 	 	ACCLAIM ENTERTAINMENT, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
					
	 cc:
	 	 U.S. Bank Trust National Association,
   as Trustee
 100 Wall Street
 16th Floor
 New York, New York
10005
  
 Attention: Ms. Beverly Freeney,
Vice President
	 	 	 	 	 	 

  
 Section 9.03.
Payment of Optional Redemption Price. On the applicable Optional Redemption Date (or such later date as a particular Holder surrenders such Holder’s Note to the Company) the Company shall pay to or upon the order of each Holder, by wire
transfer of immediately available funds to such account as shall be specified for such purpose by such Holder at least one Business Day prior to the Optional Redemption Date, an amount equal to the Optional Redemption Price of the portion (which may
be all) of such Holder’s Note to be redeemed. 
  
 Section
9.04. Redemption to Be Pro Rata; Minimum Amount. Any redemption of Notes pursuant to this Article Nine shall be made at the same time as a redemption by the Company of a pro rata portion (based on the Outstanding principal amounts) of all Notes
and in the case of each such redemption the aggregate principal amount of Notes to be so redeemed shall be at least $1,000,000.00 or such lesser aggregate principal amount of the Notes as shall remain Outstanding at the time an Optional Redemption
Notice is given. 
  
 Section 9.05. Effect of Conversions;
Limitation on Redemptions. (a) Any conversion of a Note by a Holder pursuant to Article Eight for which the Conversion Date is on or after the date the Company gives an applicable Optional Redemption Notice shall reduce the principal amount of
such Note to be redeemed on such Optional Redemption Date by the principal amount of such Note so converted. 
  
 (b) Notwithstanding any other provision of the Indenture, this Supplemental Indenture, the Notes or applicable law to the contrary, in case the Company
shall give an Optional Redemption Notice to the Holders, and on the date the Company gives such an Optional Redemption Notice or at any time thereafter to and including the applicable Optional Redemption Date, any Holder shall be restricted in
converting any Note held by such Holder by reason of such Holder’s Restricted Ownership Percentage (the “Inconvertible Notes”), then the Optional Redemption Date for all Inconvertible Notes (or the portion thereof that is so
restricted) held by such Holder, so called for redemption by the Company and with respect to which such Holder is restricted in exercising such Holder’s conversion right at any time during such period 

  

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from the date the Company gives such Optional Redemption Notice to the applicable Optional Redemption Date shall be extended to be the Extended Redemption
Date. On the applicable Optional Redemption Date, the Company shall deposit in accordance with Section 11.12 the Optional Redemption Price of all Notes or portions thereof that are redeemable on any Extended Redemption Date, to be held and paid to
the respective Holders whose Notes are to be redeemed on Extended Redemption Dates upon redemption of the Note or Notes redeemed on each such Extended Redemption Date. Any Note or portion thereof for which there is an Extended Redemption Date shall
remain convertible by the Holder in accordance with Section 10 at any time to and including 5:00 p.m., New York City time, on the applicable Extended Redemption Date. 
  
 (c) Notwithstanding anything to the contrary contained in Section 8.07, solely for the purposes of calculating a
Holder’s Restricted Ownership Percentage for purposes of this Section 9.05, the shares of Common Stock issuable upon exercise of the Warrants held by such Holder shall not be deemed to be Excluded Shares and shall be taken into account in
calculating such Holder’s Restricted Ownership Percentage to determine the amount of such Holder’s Inconvertible Notes. 
  
 Section 9.06. No Prepayment. Except as specifically provided in Article Seven or this Article Nine, the Notes may not be prepaid or redeemed at the
option of the Company prior to the Maturity Date. 
  
 ARTICLE TEN 
  
 SUBORDINATION 
  
 Section 10.01.
Agreement to Subordinate. The Company agrees, and each Holder by accepting a Note agrees, that the indebtedness and other payment obligations of the Company to the Holders under this Supplemental Indenture or the Notes, including, without
limitation, all indemnification obligations of the Company under Section 5.11, are subordinated in right of payment, to the extent and in the manner provided in this Article Ten, to the prior indefeasible payment in full in cash of the Senior
Indebtedness, and that this subordination is for the benefit of the holders of Senior Indebtedness, and the Senior Indebtedness shall rank senior to the Notes (and in such case only to the extent and on the terms and conditions set forth herein).

  
 Section 10.02 Liquidation, Dissolution, Bankruptcy.
Upon any distribution to creditors of the Company in a liquidation or a total or partial dissolution of the Company or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to the Company or its property:

  
 (1) holders of Senior Indebtedness shall be
entitled to receive payment in full in cash of the Senior Indebtedness or provision satisfactory to the holders of Senior Indebtedness shall be made for such payment before the Holders shall be entitled to receive any payment of principal of or
interest on the Notes or in respect of any other obligation arising under this Supplemental Indenture; and 
  

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 (2) until the Senior Indebtedness is paid in full, in cash, any distribution to which the
Holders would be entitled but for this Article Ten shall be made to holders of Senior Indebtedness as their interests may appear. 
  
 Section 10.03 Senior Indebtedness. If any Senior Indebtedness is outstanding and the holder of such Senior Indebtedness has not waived in writing
the benefits of this sentence, the Company may not pay principal of or interest on the Notes or make any payment in respect of any other obligation arising under this Supplemental Indenture or acquire or redeem any Notes for cash or property unless
and until such Senior Indebtedness shall have been discharged in accordance with its terms or the holders of such Senior Indebtedness shall have waived in writing the benefit of this sentence, after which the Company shall resume making any and all
required payments in respect of the Notes, including any missed payments; provided, however, that, so long as the Company is not in default under the Senior Indebtedness on the Maturity of the Notes, the Company shall pay the Holders the
principal of and the interest accrued on the Notes in full satisfaction thereof. The restrictions of this Section 10.03 are subject to the exemptions stated in Section 10.15. Nothing in this Article Ten shall restrict or limit the conversion rights
of the Holders or the obligation of the Company to issue shares of Common Stock upon conversion of Notes in accordance with this Supplemental Indenture. 
  
 Section 10.04. Acceleration of Payment of Notes and Exercise of Remedies. Until the Senior Indebtedness shall have been paid in full in cash, if,
and during the continuance of any Event of Default described in Section 4.01 hereof or any Event of Default described in the Indenture that is applicable to the Notes, all or any portion of the unpaid principal amount of the Notes shall have been
declared due and payable pursuant to the provisions of the Indenture or this Supplemental Indenture hereof, the Company shall not make payment of the principal of or interest on the Notes so accelerated until the date on which the Senior
Indebtedness has been paid in full in cash. 
  
 Section 10.05.
When Distribution Must Be Paid Over. Without limiting the other provisions of this Article Ten, if any Note is declared due and payable before its Maturity, then no payment or distribution of any kind or character shall be made in respect of
such Note and the holders of the Senior Indebtedness outstanding at the time of such declaration shall be entitled to receive payment in full in cash of all amounts due (including by reason of acceleration), or appropriate provision satisfactory to
the holders of such Senior Indebtedness shall be made for such payment, before the Holders shall be entitled to receive any payment or distribution of any kind or character. Notwithstanding the foregoing, if a distribution is made to any Holder that
pursuant to this Article Ten should not have been made pursuant to this Article Ten to such Holder, the Holder who receives such distribution shall upon request of the holders of the Senior Indebtedness hold such distribution in trust and pay it to
such holders of Senior Indebtedness as their interests may appear. 
  
 Section 10.06. Subrogation. After all Senior Indebtedness is paid in full in cash and until the Notes are paid in full, the Holders shall be subrogated to the rights of holders of Senior Indebtedness to receive the payments or
distributions applicable to the Senior 

  

 -54- 

 
Indebtedness, to the extent payments with respect to the Notes have been applied to the payment of the Senior Indebtedness. Any payment or distribution made
under this Article Ten to holders of Senior Indebtedness which otherwise would have been made to the Holders except for the provisions of this Article Ten shall not, as between the Company, its creditors (other than the holders of the Senior
Indebtedness) and the Holders, be deemed to be a payment by the Company to or on account of the Senior Indebtedness, and no payments or distributions to the Holders of cash, property or securities by virtue of the subrogation herein provided shall,
as between the Company, its creditors (other than the holders of the Senior Indebtedness) and the Holders, be deemed to be a payment to or on account of the Notes, it being understood that the provisions of this Article Ten are and are intended
solely for the purpose of defining the relative rights of the holders of the Notes on the one hand and the holders of Senior Indebtedness on the other. 
  
 Section 10.07. Relative Rights. This Article Ten defines the relative rights of the Holders and holders of Senior Indebtedness. Nothing in this
Supplemental Indenture shall: 
  
 (1) impair, as
between the Company and the Holders, the obligations of the Company, which are absolute and unconditional, to pay principal of and interest on the Notes in accordance with their terms; provided, however, that this clause (1) is not intended
to limit the restrictions on payments on the Notes set forth in Section 10.03 hereof; or 
  
 (2) prevent any Holder from exercising its available remedies upon a Default or an Event of Default, subject to the rights of holders of
Senior Indebtedness to receive distributions otherwise payable to the Holders; provided, however, that this clause (2) is not intended to limit the provisions of Section 10.04. 
  
 Section 10.08. Subordination May Not Be Impaired by Company. No right of a holder of Senior Indebtedness to enforce
the subordination of the indebtedness evidenced by the Notes provided herein shall be impaired by any act or failure to act by the Company or by its failure to comply with this Supplemental Indenture. 
  
 Section 10.09. Reinstatement. If, at any time, all or part of any
payment with respect to Senior Indebtedness previously made by the Company or any other person is rescinded for any reason whatsoever (including, without limitation, the insolvency, bankruptcy or reorganization of the Company or such other person),
the subordination provisions set forth herein shall continue to be effective or be reinstated (including with respect to payments on the Notes prior to such reinstatement), as the case may be, all as though such payment had not been made.

  
 Section 10.10. Proofs of Claim. If, while any Senior
Indebtedness is outstanding, any Event of Default under Section 4.01, with respect to the Company only, occurs the Trustee, on behalf of the Holders, shall, to the extent permitted by applicable law, duly and promptly take such action as the holders
of a majority of the outstanding principal amount of the Senior Indebtedness may reasonably request to collect any payment hereunder to which the holders of Senior Indebtedness may be entitled hereunder or under the Notes, and to file 

  

 -55- 

 
appropriate claims or proofs of claim in respect of the Indenture, this Supplemental Indenture and the Notes. Upon the failure of the Trustee timely to take
any such action after due notice thereof and request therefor by the holders of Senior Indebtedness, the holders of the Senior Indebtedness are hereby irrevocably authorized and empowered (in their own name or otherwise and to the extent permitted
by applicable law), but shall have no obligation, to demand, use, collect and receive every payment or distribution referred to hereunder and under any Note and to file claims and proofs of claim with respect to the Indenture, this Supplemental
Indenture and the Notes and the Trustee hereby appoints the holder of the Senior Indebtedness as attorney-in-fact for the Trustee to take any and all actions permitted by this paragraph to be taken by the Trustee; provided, however, that the
holders of the Senior Indebtedness shall only be permitted to file such proofs of claim upon prior notice to the Trustee and to the extent that the Trustee has failed to make such filings by the date which is ten (10) days prior to the last date on
which the Trustee is permitted to make such filings as a matter of applicable Bankruptcy Law. 
  
 Section 10.11. Non-Impairment. The Holders agree and consent that, without notice to or assent by them, and without affecting the liabilities and obligations of the Company and the rights and benefits of the
holders of the Senior Indebtedness set forth in this Article Ten: 
  
 (1) the obligations and liabilities of the Company and any other party or parties for or upon the Senior Indebtedness may, from time to time, be increased (but in no event to a principal amount at any time outstanding
in excess of $20,000,000), renewed, refinanced, extended, modified, amended, restated, compromised, supplemented, terminated, waived or released; 
  
 (2) the holders of Senior Indebtedness, and any representative or representatives acting on behalf thereof, may exercise or refrain from
exercising any right, remedy or power granted by or in connection with any agreements relating to the Senior Indebtedness; and 
  
 (3) any balance or balances of funds with any holder of Senior Indebtedness at any time outstanding to the credit of the Company may, from
time to time, in whole or in part, be surrendered or released, 
  
 all as the
holders of any Senior Indebtedness, or any representative or representatives acting on behalf thereof, may deem advisable, and all without impairing, abridging, diminishing, releasing or affecting the subordination of the Notes to the Senior
Indebtedness. 
  
 Section 10.12. No Modification. The
provisions of this Article Ten and the terms “GMAC,” “GMAC Credit Agreement” and “Senior Indebtedness” used in this Article Ten are for the benefit of the holders from time to time of Senior Indebtedness and, so long as
any Senior Indebtedness or any commitments with respect thereto remain outstanding, such provisions and defined terms may not be modified, rescinded or canceled in whole or in part except upon obtaining the prior written consent of the holders of
the Senior Indebtedness. 
  

 -56- 

 Section 10.13. Waivers; Reliance by Holders of Senior Indebtedness. To the extent permitted by
applicable law, the Holders and the Company hereby waive (1) notice of acceptance hereof by the holders of the Senior Indebtedness and (2) all diligence in the collection or protection of or realization upon the Senior Indebtedness. Each Holder, by
accepting any Note, acknowledges and agrees that the subordination provisions in this Article Ten are, and are intended to be, an inducement and a consideration to each holder of any Senior Indebtedness, whether such Senior Indebtedness was created
or acquired before or after the issuance of the Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. 
  
 Section 10.14. Enforcement of Rights. The Company and the Holders hereby expressly agree that the holders of Senior Indebtedness may enforce any
and all rights derived herein by suit, either in equity or at law, for specific performance of any agreement contained in this Article Ten or for judgment at law and any other relief whatsoever appropriate to such action or procedure. 
  
 Section 10.15. Prohibition of Payment of Notes. The Holder and the
Company hereby acknowledge that, pursuant to the terms of the GMAC Credit Agreement, the Company may not, directly or indirectly, make any payments of principal or interest in respect of the Notes; except that the Company may make (i) regularly
scheduled, semi-annual payments of interest in respect of the Notes and (ii) payment of accrued interest upon conversion of the Notes, provided that, in either case, immediately prior to and after giving effect to any such interest payments, no
Default, Event of Default or Overadvance (as such terms are defined in the GMAC Credit Agreement) exists or would exist under the GMAC Credit Agreement. 
  
 Section 10.16 Trustee Not Charged with Knowledge of Prohibition. Notwithstanding the provisions of this Article Ten or any other provision of this
Indenture, the Trustee and any paying agent shall not be charged with knowledge of the existence of any Senior Indebtedness, or of any default in the payment of the principal of or premium, if any, or interest on any Senior Indebtedness, or of any
facts which would prohibit the making of any payment of moneys to or by the Trustee or any such paying agent, unless and until the Trustee or such paying agent shall have received at its Corporate Trust Office written notice thereof, five Business
Days prior to the making of any such payment, from the Company or from a holder of Senior Indebtedness who shall have been certified by the Company or otherwise established to the reasonable satisfaction of the Trustee or such paying agent to be
such a holder, nor shall the Trustee or such paying agent be charged with knowledge of the curing of any such default or of the elimination of the fact or condition preventing any such payment unless and until the Trustee or such paying agent shall
have received an Officers’ Certificate to such effect. 
  
 Section 10.17 Rights of Trustee as Holder of Senior Indebtedness. The Trustee shall be entitled to all the rights set forth in this Article Ten with respect to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder. Nothing in this Article Ten shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 5.11 hereof or Section 607 of the Original Indenture. 
  

 -57- 

 Section 10.18 Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness and shall not be liable to any such holders if it shall mistakenly pay over or distribute to Holders or the Company or any other person moneys or assets to which any holders of
Senior Indebtedness shall be entitled by virtue of this Article Ten or otherwise. 
  
 ARTICLE ELEVEN 
  
 SUNDRY PROVISIONS 
  
 Section 11.01. Trustee Not Responsible for Recitals. The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representation as to the validity of this Supplemental Indenture. 
  
 Section 11.02. Effect of Headings and Table of Contents. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. 
  
 Section 11.03. Successors and Assigns. All covenants and agreements in
this Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 
  
 Section 11.04. Separability Clause. In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 11.05. Benefits of Supplemental Indenture. Nothing in this Supplemental Indenture, express or implied, shall give to any Person, other than
the parties hereto, any Paying Agent, any Note Registrar and their successors under the Original Indenture and the Holders of Notes, any benefit or any legal or equitable right, remedy or claim under the Original Indenture. 
  
 Section 11.06. Governing Law. This Supplemental Indenture shall be
governed by and construed in accordance with the laws of the State of New York. 
  
 Section 11.07. Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument. 
  
 Section 11.08.
Enforceable Obligation. The Company represents and warrants that at the time of the original issuance of each Note it received the full purchase price payable pursuant to the Note Purchase Agreements pursuant to which such Note is being issued
in an amount at least equal to the original principal amount of such Note, and that each Note is an enforceable obligation of the Company which is not subject to any offset, reduction, counterclaim or disallowance of any sort. 
  

 -58- 

 Section 11.09. Certain Performance. The Company acknowledges and agrees that, by reason of, among
other things, the conversion rights of the Holders, there shall be no adequate remedy at law for the Company’s willful failure to comply with the Original Indenture, this Supplemental Indenture or the Notes, and that the repayment of principal
of and interest on the Notes, and payment by the Company of the other amounts payable by the Company, in connection with an Event of Default will not adequately compensate the Holders for any loss or impairment of the conversion rights. The Company
agrees that, in addition to any other rights or remedies, the Trustee and the Holders shall be entitled to specific performance by the Company of its obligations under, and an injunction against any action that would constitute a failure by the
Company to comply with, the Original Indenture, this Supplemental Indenture and the Notes. 
  
 Section 11.10. Amendments and Waivers. In addition to the requirements of Section 902 of the Original Indenture, (1) no supplemental indenture shall, without the consent of the Holder of each Outstanding Note
affected thereby, change the obligations of the Company to redeem or repurchase Notes pursuant to Article Seven of this Supplemental Indenture or (2) no supplemental indenture or waiver shall increase or eliminate the Restricted Ownership
Percentage, whether permanently or temporarily, unless, in addition to complying with the other requirements of the Indenture and this Supplemental Indenture, such supplemental indenture or waiver shall have been approved in accordance with the
General Corporation Law of the State of Delaware and the Company’s By-laws by holders of the outstanding shares of Common Stock entitled to vote at a meeting or by written consent in lieu of such meeting. 
  
 Section 11.11. Reference to and Effect on Original Indenture. This
Supplemental Indenture shall be construed as supplemental to the Original Indenture and all the terms and conditions of this Supplemental Indenture shall be deemed to be part of the terms and conditions of the Original Indenture. Except as set forth
herein, the Original Indenture heretofore executed and delivered is hereby ratified, approved and confirmed. The provisions of this Supplemental Indenture shall for the purposes of this series of Securities supersede the provisions of the Original
Indenture heretofore executed and delivered to the extent such Original Indenture heretofore executed and delivered is inconsistent herewith. This Supplemental Indenture is subject to the provisions of the Trust Indenture Act, and shall, to the
extent applicable, be governed by such provisions. 
  
 Section
11.12. Notices. Notwithstanding Sections 105 and 106 of the Original Indenture, whenever under the provisions of the Original Indenture, this Supplemental Indenture or the Notes any notice is required or permitted to be given, such notice shall
be in writing (except as otherwise specifically provided in the Original Indenture, this Supplemental Indenture or the Notes) and shall be sent by telephone line facsimile transmission to such telephone line facsimile transmission number as shall be
set forth below or shall have been provided for purposes hereof by the Person entitled to such notice or, if no such telephone line facsimile transmission number shall have been so provided, may be sent by first class mail (postage prepaid),
personal delivery or courier (charges prepaid) addressed as follows: 
  
 If to the Company: 
  
 Acclaim Entertainment, Inc.

 One Acclaim Plaza 
 Glen Cove,
New York 11542 
  
 Attention: Chief Financial Officer 

 
 Facsimile No.: (516) 656-2045 
  

 -59- 

 If to the Trustee: 
  
 U.S. Bank Trust National Association, 
     as Trustee 
 100 Wall Street 
 16th Floor

 New York, New York 10005 
  
 Attention: Ms. Beverly Freeney, Vice President 
  
 Facsimile No.: (212) 509-3384 
  
 and if to any Holder, at such Holder’s telephone line facsimile transmission number or address set forth in the Security Register for the Notes. Any notice so sent
by telephone line facsimile transmission, personal delivery or courier shall be effective upon receipt, and any such notice sent by mail shall be effective three Business Days after being deposited with the facilities of the United States Postal
Service. The Company or the Trustee may change its telephone line facsimile transmission number or address for purposes of notices under the Original Indenture and hereunder by giving three Business Days’ notice to the other, in each case with
similar notice to all of the Holders. Any Holder may change its telephone line facsimile transmission or address for purposes of notices under the Original Indenture or hereunder by giving three Business Days’ notice to the Trustee. Whenever
under the provisions of this Supplemental Indenture a Holder is required or permitted to give any notice to the Company and such provision also calls for giving a copy of such notice to the Trustee, if such Holder gives such notice to the Company
but fails to give such notice to the Trustee, such failure shall not affect the validity of such notice. 
  
 Section 11.13. Payment of Notes on Repurchase; Deposit of Repurchase Price, Etc. If any Note or any portion of any Note is to be repurchased as
provided in Article Seven and any notice required in connection therewith shall have been given as provided therein and the Company shall have otherwise complied with the requirements of this Supplemental Indenture with respect thereto, then the
Note or Notes or the portion or portions thereof to be so repurchased and with respect to which any such notice has been given shall become due and payable on the date stated in such notice at the applicable Repurchase Price. On and after the
repurchase date so stated in such notice, provided that the Company shall have deposited with 

  

 -60- 

 
the Trustee on or prior to such repurchase date, an amount sufficient to pay the applicable Repurchase Price interest on such Note or Notes or the portion or
portions thereof to be so redeemed or repurchased shall cease to accrue, and such Note or Notes or such portion thereof shall be deemed not to be Outstanding and shall not be entitled to any benefit with respect to principal of or interest on the
portion to be so repurchased except to receive payment of the applicable Repurchase Price. On presentation and surrender of such Note or Notes or such portion or portions thereof, such Note or Notes or the specified portion or portions thereof shall
be paid and repurchased at the applicable Repurchase Price. If a portion of any Note is to be repurchased, upon surrender of such Note to the Trustee in accordance with the terms hereof, the Company shall execute and deliver to the Holder of such
note without service charge, a new Note or Notes, having the same date as the Note so surrendered and containing identical terms and conditions, in such denomination or denominations as requested by such Holder in aggregate principal amount equal
to, and in exchange for, the unrepurchased portion of the principal amount of the Note so surrendered. 
  
 Section 11.14 Certain Determinations. The Trustee shall be under no obligation to ascertain the occurrence of a Fundamental Change, a Repurchase
Event or a Trigger Event or to give notice with respect thereto. The Trustee may conclusively assume, in the absence of written notice to the contrary from the Company or the Holders, that no Fundamental Change, Repurchase Event or Trigger Event has
occurred. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  

 -61- 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, and their respective corporate seals to be hereunto affixed and attested, all as of the day and year first above written. 
  

			
	ACCLAIM ENTERTAINMENT, INC.
		
	By:	 	/S/    GERARD F. AGOGLIA        
	 	 	

	 	 	 Name:    Gerard F. Agoglia
 Title:      Chief Financial Officer

  

			
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee
		
	By:	 	/S/    PATRICK J. CROWLEY        
	 	 	

	 	 	 Name:    Patrick J. Crowley
 Title:      Vice President

  

 -62- 

 SCHEDULE I 
  
 Indebtedness Referred to in Clause (1) 
 of the Definition of “Permitted Indebtedness” 
  

			
	 Description

	  	Amount

	 GMAC Debt Facility limit, plus
	  	$5,000,000

  

 I-1 

 SCHEDULE II 
  
 Certain Pledged Securities* 
  

Capital Stock of Acclaim Distribution, Inc. 
  
 Class of Stock: Common Stock 
  
 Par value per share: $.02 
  
 Total No. of
authorized shares of class or series: 200 shares of common stock 
  
 Total No. of
outstanding shares of class or series: 200 shares of common stock 
  
 Stock
certificate No. 1 for 200 shares registered in the name of Acclaim Entertainment, Inc. 
  
 Restrictive Legend: 1933 Act legend for unregistered securities. Legend stating that the securities are subject to a pledge to the Company’s lender. 
  
 Capital Stock of LJN Toys, Ltd. 
  
 Class of Stock: Common Stock 
  
 Par value per share: $.02 
  
 Total No. of
authorized shares of class or series: 200 shares of common stock 
  
 Total No. of
outstanding shares of class or series: 200 shares of common stock 
  
 Stock
certificate No. 1 for 200 shares registered in the name of Acclaim Entertainment, Inc. 
  
 Restrictive Legend: 1933 Act legend for unregistered securities. Legend stating that the securities are subject to a pledge to the Company’s lender. 
  
 Capital Stock of Acclaim Entertainment Canada, Ltd. 
  
 Class of Stock: Common Stock 
  
 Par value per share: $.02 
  

 II-1 

	*	Based upon information and belief on the date hereof and without independent verification. 

  
 Total No. of authorized shares of class or series: 200 shares of common stock 
  
 Total No. of outstanding shares of class or series: 200 shares of common stock 
  
 Stock certificate No. 1 for 200 shares registered in the name of Acclaim Entertainment, Inc. 
  
 Restrictive Legend: 1933 Act legend for unregistered securities. Legend stating that the
securities are subject to a pledge to the Company’s lender. 
  
 Capital
Stock of Arena Entertainment, Inc. 
  
 Class of Stock: Common Stock

  
 Par value per share: $.02 
  
 Total No. of authorized shares of class or series: 200 shares of common stock 
  
 Total No. of outstanding shares of class or series: 200 shares of common stock 
  
 Stock certificate No. 1 for 200 shares registered in the name of Acclaim Entertainment, Inc.

  
 Restrictive Legend: 1933 Act legend for unregistered securities. Legend
stating that the securities are subject to a pledge to the Company’s lender. 
  

	*	Based upon information and belief on the date hereof and without independent verification. 

  

 II-2 

 SCHEDULE III 
  
 Subordination of Indebtedness 
  
 Any Indebtedness to be issued as permitted by clause (viii) of the definition of Permitted Indebtedness in the Supplemental
Indenture shall contain the following provisions and no provision inconsistent with the following provisions: 
  
 ARTICLE          
  
 SUBORDINATION 
  
 Section __.1. Agreement of Subordination. The Company covenants and agrees, and each holder of the indebtedness created by this instrument (this
“Indebtedness”) by its acceptance hereof or thereof covenants and agrees, expressly for the benefit of holders of Senior Indebtedness, that this Indebtedness shall be issued subject to the provisions of this Article; and each person
holding this Indebtedness, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and agrees to be bound by such provisions. 
  
 The payment of the principal of, premium, if any, and interest on this Indebtedness (including, without limitation, upon any redemption or repurchase of
this Indebtedness) shall, to the extent and in the manner hereinafter set forth, be subordinated and subject in right of payment to the prior payment in full of all Senior Indebtedness in cash or other payment satisfactory to the holders of such
Senior Indebtedness. 
  
 No provision of this Article shall
prevent the occurrence of any default or event of default with respect to this Indebtedness. 
  
 Section __.2. Payments to Holders of this Indebtedness. (a)(1) No payment shall be made with respect to the principal of, premium, if any, or interest on this Indebtedness (including, without limitation, the
redemption price with respect to any of this Indebtedness to be called for redemption in accordance with its terms or any repurchase of this Indebtedness or any payment or deposit for defeasance, or in the nature of defeasance, of this Indebtedness)
if: 
  
 (i) a default in the payment of
principal, premium, if any, interest or other obligations in respect of the Senior Indebtedness occurs and is continuing beyond any applicable grace period (a “Payment Default”), unless and until such Payment Default shall have been cured
or waived or shall have ceased to exist; or 
  
 (ii) a default, other than a Payment Default, on any Senior Indebtedness occurs and is continuing that then permit holders of such Senior Indebtedness to accelerate its maturity and the holder of this Indebtedness (or indenture trustee or
other representative thereof) receives a notice of the default (a “Payment Blockage Notice”) from a holder of Senior Indebtedness, a representative of the holder of such Senior 

  

 III-1 

 
Indebtedness or the Company (a “Non-Payment Default”). 
  
 If the holder of this Indebtedness (or indenture trustee or representative thereof) receives any Payment Blockage Notice pursuant to the immediately
preceding clause (ii), no subsequent Payment Blockage Notice shall be effective for purposes of this Section __.2 unless and until (A) at least 365 days shall have elapsed since the initial effectiveness of the immediately prior Payment Blockage
Notice and (B) all scheduled payments of principal, premium, if any, and interest on this Indebtedness that have become due and are required by the terms of this Indebtedness to be paid in cash have been paid in full in cash. No Non-Payment Default
that existed or was continuing on the date of delivery of any Payment Blockage Notice to the holder of this Indebtedness (or indenture trustee or other representative thereof) shall be, or be made, the basis for a subsequent Payment Blockage Notice,
unless such Non-Payment Default is based upon facts or events arising after the date of delivery of such Payment Blockage Notice. 
  
 (2) The Company may and shall resume payments on and distributions in respect of this Indebtedness upon: 
  
 (i) in the case of a Payment Default, the date upon which
any such Payment Default is cured or waived or ceases to exist, or 
  
 (ii) in the case of a Non-Payment Default, the earlier of (a) the date upon which such default is cured or waived or ceases to exist or (b) 179 days after the applicable Payment Blockage Notice is received by the
holder of this Indebtedness (or indenture trustee or other representative thereof) if the maturity of such Senior Indebtedness has not been accelerated and no Payment Default with respect to any Senior Indebtedness has occurred which has not been
cured or waived (in which case clause (A) shall be applicable), 
  
 unless this
Article          otherwise prohibits the payment or distribution at the time of such payment or distribution. 
  
 (b) A “Reorganization” shall include and mean any dissolution, winding up, total or partial liquidation or reorganization of the Company,
or any similar transaction resulting in any payment or distribution of cash, securities or other property (“Distributions”) to creditors, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or similar proceedings.

  
 (c) Upon any Reorganization, all amounts due or to
become due upon all Senior Indebtedness shall first be paid in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, or payment thereof provided for in cash or other payment satisfactory to the holders of such Senior
Indebtedness, before any Distribution is made to, for, or on account of this Indebtedness or any portion thereof (including, without limitation, any Distribution in connection with a payment of principal, interest or premium or the redemption or
repurchase of all or any portion of this Indebtedness or any payment or deposit for defeasance, or in the nature of defeasance, of this Indebtedness). 
  

 III-2 

 (d) Upon any Reorganization, all Distributions on account of this Indebtedness shall be made by
the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent, assignee for the benefit of creditors or other person making such Distribution directly to the holders of Senior Indebtedness (pro rata to such holders on the basis
of the respective amounts of Senior Indebtedness held by such holders, or as otherwise required by law or a court order or the terms of any subordination as between or among such Senior Indebtedness) or their respective representative or
representatives, as their respective interests may appear, to the extent necessary to pay all Senior Indebtedness in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any concurrent payment
or distribution to or for the holders of Senior Indebtedness, before any Distribution is made on account of this Indebtedness. 
  
 (e) In the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities (including, without limitation, by way of set-off or otherwise), prohibited by the foregoing, shall be received by any holder of this Indebtedness (or indenture trustee or other representative thereof), whether from the
Company or from the holder (or indenture trustee or other representative thereof) of any indebtedness subordinated to this Indebtedness or otherwise, before all Senior Indebtedness is paid in full in cash or other payment satisfactory to the holders
of such Senior Indebtedness, or provision is made for such payment in accordance with its terms in cash or other payment satisfactory to the holders of such Senior Indebtedness, such payment or distribution shall be held by the recipient or
recipients thereof in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Indebtedness or their respective representative or representatives, as their respective interests may appear, as calculated by the Company,
for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any
concurrent payment or distribution (or provision therefor) to or for the holders of such Senior Indebtedness. 
  
 (f) In the event of the acceleration of this Indebtedness because of an event of default or any amount of principal of or premium on this
Indebtedness becomes due prior to the maturity date of this Indebtedness, no payment or distribution shall be made to any holder of this Indebtedness (or indenture trustee or other representative thereof) in respect of the principal of, premium, if
any, or interest on this Indebtedness (including, without limitation, any redemption or repurchase price of any of this Indebtedness called for redemption in accordance with its terms or submitted for redemption or repurchase at the option of the
holder of this Indebtedness in accordance with its terms, as the case may be, or any payment or deposit for defeasance, or in the nature of defeasance, of this Indebtedness), until all Senior Indebtedness has been paid in full in cash or other
payment satisfactory to the holders of such Senior Indebtedness or such acceleration is rescinded in accordance with the terms of this Indebtedness. If payment of this Indebtedness is accelerated because of an event of default, the Company, the
holder of this Indebtedness (or indenture trustee or other representative thereof) shall promptly notify holders of the Senior Indebtedness of such acceleration. 
  
 (g) Except as shall be specifically prohibited by this Section _.2, nothing contained in this Article shall prevent
the Company from making any scheduled payment of principal of or premium, if any, or interest on this Indebtedness. 
  

 III-3 

 Section __.3. Subrogation of this Indebtedness. Subject to the payment in full of all
Senior Indebtedness in cash or other payment satisfactory to the holders of such Senior Indebtedness, the rights of the holders of this Indebtedness shall be subrogated to the extent of the payments or distributions made to the holders of such
Senior Indebtedness pursuant to the provisions of this Article (equally and ratably with the holders of all indebtedness of the Company which by its express terms is subordinated to Senior Indebtedness to substantially the same extent as this
Indebtedness is subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness
until the principal of (and premium, if any) and interest on this Indebtedness shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash, property or
securities to which the holders of this Indebtedness would be entitled except for the provisions of this Article, and no payment over pursuant to the provisions of this Article, to or for the benefit of the holders of Senior Indebtedness by holders
of this Indebtedness (or indenture trustee or other representative thereof), shall, as among the Company, its creditors other than holders of Senior Indebtedness, and the holders of this Indebtedness, be deemed to be a payment by the Company to or
on account of the Senior Indebtedness; and no payments or distributions of cash, property or securities to or for the benefit of the holders of this Indebtedness pursuant to the subrogation provisions of this Article, which would otherwise have been
paid to the holders of Senior Indebtedness, shall be deemed to be a payment by the Company to or for the account of this Indebtedness. 
  
 Section __.4. Provisions Solely to Define Relative Rights. It is understood that the provisions of this Article are and are intended solely
for the purposes of defining the relative rights of the holders of this Indebtedness, on the one hand, and the holders of the Senior Indebtedness, on the other hand. Nothing contained in this Article or in the terms of this Indebtedness is intended
to or shall impair, as among the Company, its creditors other than the holders of Senior Indebtedness, and the holders of this Indebtedness, the obligation of the Company, which is absolute and unconditional, to pay to the holders of this
Indebtedness the principal of (and premium, if any) and interest on this Indebtedness as and when the same shall become due and payable in accordance with its terms, or is intended to or shall affect the relative rights of the holders of this
Indebtedness and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent any holder of this Indebtedness from exercising all remedies otherwise permitted by applicable law upon default
under this Indebtedness, subject to the rights, if any, under this Article of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
  
 Section __.5. Reliance on Judicial Order or Certificate of Liquidating
Agent. Upon any payment or distribution of assets of the Company referred to in this Article, the holders of this Indebtedness shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, dissolution, winding-up, liquidation, reorganization or similar case or proceeding is pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, custodian, agent, assignee for the

  

 III-4 

 
benefit of creditors, or other person making such payment or distribution, delivered to the holders of this Indebtedness (or indenture trustee or other
representative thereof), for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to this Article. 
  
 Section __.6. No Impairment of Subordination. No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of the Notes or the documents,
agreements and instruments relating thereto or to this Indebtedness, regardless of any knowledge thereof which any such holder may have or otherwise be charged with. 
  
 Section __.7. Certain Conversions Deemed Payment. If this Indebtedness is convertible into securities of the
Company, for the purposes of this Article only, (1) the issuance and delivery of junior securities upon conversion of this Indebtedness in accordance with such conversion rights shall not be deemed to constitute a payment or distribution on account
of the principal of (or premium, if any) or interest on this Indebtedness or on account of the purchase or other acquisition of this Indebtedness, and (2) the payment, issuance or delivery of cash, property or securities (other than junior
securities) upon conversion of this Indebtedness shall be deemed to constitute payment on account of the principal of (and premium, if any) and interest on this Indebtedness. For the purposes of this Section, the term “junior securities”
means (a) shares of any stock of any class of the Company, (b) securities of the Company that are subordinated in right of payment to all Senior Indebtedness to substantially the same extent as, or to a greater extent than, this Indebtedness is so
subordinated as provided in this Article and (c) securities, if any, into which this Indebtedness becomes convertible in connection with any business combination transaction if so provided in the terms of this Indebtedness. Nothing contained in this
Article or elsewhere in the terms of this Indebtedness is intended to or shall impair, as among the Company, its creditors other than holders of Senior Indebtedness and the holders of this Indebtedness, the right, if any, which is absolute and
unconditional, of the holder of this Indebtedness, if by the terms of this Indebtedness this Indebtedness is convertible into securities of the Company, to convert this Indebtedness in accordance with the terms of this Indebtedness. 
  
 Section __.8 Senior Indebtedness Entitled to Rely. The holders of
Senior Indebtedness shall have the right to rely upon this Article, and no amendment or modification of the provisions contained herein shall diminish the rights of such holders unless such holders shall have agreed in writing thereto. 

 
 Section __.9 Definitions. As used in this Article, the following
terms shall have the following meanings: 
  
 “Company”
means Acclaim Entertainment, Inc., a Delaware corporation, and shall include its successors and assigns. 
  

 III-5 

 “Indenture” shall have the meaning provided in the Notes. 
  
 “Note Purchase Agreement” means the Note Purchase Agreement, dated
February 17, 2004, by and between the Company and the buyer named therein, as amended from time to time. 
  
 “Notes” means the 9% Senior Subordinated Convertible Notes due 2007 at any one time outstanding not in excess of the original aggregate
authorized amount of $25,000,000, issued by the Company pursuant to the Note Purchase Agreement, including any such notes issued upon transfer thereof or in lieu of any such notes that are mutilated, destroyed, lost or stolen. 
  
 “Senior Indebtedness” means the principal of, premium, if any, and
interest on (including any interest accruing after the filing of a petition by or against the Company under any bankruptcy law, whether or not allowed as a claim after such filing in any proceeding under such bankruptcy law), and any other payment
(including, without limitation, the Repurchase Price (as defined in the Indenture)) due pursuant to, any of the following, whether outstanding at the time of issuance of this Indebtedness or thereafter incurred or created: 
  
 (a) the Notes; and 
  
 (b) all renewals, extensions, refundings, deferrals, amendments or
modifications of the Notes; 
  
 unless in the case of any such renewal, extension,
refunding, amendment, modification or supplement, the instrument or other document creating or evidencing the same or the assumption or guarantee of the same expressly provides that such renewal, extension, refunding, amendment, modification or
supplement is not superior in right of payment to, or is pari passu with, this Indebtedness. 
  

 III-6

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