Document:

EXHIBIT 4.1

 Exhibit 4.1 
  

PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED, 
 as Issuer 
  
 $
50,119,000 
  
 STEP UP CONVERTIBLE SUBORDINATED DEBENTURES
DUE 2009 
  

  
 INDENTURE 
  
 Dated as of February 27, 2006 
  

  
 U.S. BANK NATIONAL ASSOCIATION, 
  
 as Trustee 

  
 CROSS-REFERENCE TABLE*

  

			
	 Trust Indenture
     Act
Section

	  	 Indenture
Section

	 310 (a)(1)
	  	5.11
	        (a)(2)
	  	5.11
	        (a)(3)
	  	n/a
	        (a)(4)
	  	n/a
	        (a)(5)
	  	5.11
	        (b)
	  	5.3; 5.11
	        (c)
	  	n/a
		
	 311 (a)
	  	5.12
	        (b)
	  	5.12
	        (c)
	  	n/a
		
	 312 (a)
	  	2.10
	        (b)
	  	14.3
	        (c)
	  	14.3
		
	 313 (a)
	  	5.7
	        (b)(1)
	  	n/a
	        (b)(2)
	  	5.7
	        (c)
	  	5.7; 14.2
	        (d)
	  	5.7
		
	 314 (a)(1), (2), (3)
	  	9.6; 14.6
	        (a)(4)
	  	9.6; 9.7; 14.6
	        (b)
	  	n/a
	        (c)(1)
	  	14.5
	        (c)(2)
	  	14.5
	        (c)(3)
	  	n/a
	        (d)
	  	n/a
	        (e)
	  	14.6
	        (f)
	  	n/a
		
	 315 (a)
	  	5.1(a)
	        (b)
	  	5.6; 14.2
	        (c)
	  	5.1(b)
	        (d)
	  	5.1(c)
	        (e)
	  	4.14
		
	 3.16 (a)(last sentence)
	  	2.13
	        (a)(1)(A)
	  	4.5
	        (a)(1)(B)
	  	4.4
	        (a)(2)
	  	n/a

  

 i 

			
	        (b)
	  	4.7
	        (c)
	  	7.4
		
	 317 (a)(1)
	  	4.8
	        (a)(2)
	  	4.9
	        (b)
	  	2.5
		
	 318 (a)
	  	14.1
	        (b)
	  	n/a
	        (c)
	  	14.1

 “n/a” means
not applicable. 
  

	*	This Cross-Reference Table shall not, for any purpose, be deemed to be a part of the Indenture. 

  

 ii 

  
 TABLE OF CONTENTS 

 

					
	 	  	 	  	 Page

		
	 ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
			
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Incorporation by Reference of Trust Indenture Act
	  	12
	 Section 1.3
	  	 Rules of Construction
	  	13
		
	 ARTICLE 2 THE DEBENTURES
	  	13
			
	 Section 2.1
	  	 Title and Terms
	  	13
	 Section 2.2
	  	 Form of Debentures
	  	14
	 Section 2.3
	  	 Global Debenture Legend
	  	15
	 Section 2.4
	  	 Execution, Authentication, Delivery and Dating
	  	16
	 Section 2.5
	  	 Registrar and Paying Agent
	  	16
	 Section 2.6
	  	 Paying Agent to Hold Assets in Trust
	  	17
	 Section 2.7
	  	 General Provisions Relating to Transfer and Exchange
	  	17
	 Section 2.8
	  	 Book-Entry Provisions for the Global Debentures
	  	18
	 Section 2.9
	  	 [Intentionally Omitted]
	  	19
	 Section 2.10
	  	 Holder Lists
	  	19
	 Section 2.11
	  	 Persons Deemed Owners
	  	20
	 Section 2.12
	  	 Mutilated, Destroyed, Lost or Stolen Debentures
	  	20
	 Section 2.13
	  	 Treasury Debentures
	  	21
	 Section 2.14
	  	 Temporary Debentures
	  	21
	 Section 2.15
	  	 Cancellation
	  	21
	 Section 2.16
	  	 CUSIP Numbers
	  	22
	 Section 2.17
	  	 Defaulted Interest
	  	22
		
	 ARTICLE 3 SATISFACTION AND DISCHARGE
	  	22
			
	 Section 3.1
	  	 Satisfaction and Discharge of Indenture
	  	22
	 Section 3.2
	  	 Deposited Monies to be Held in Trust
	  	24
	 Section 3.3
	  	 Return of Unclaimed Monies
	  	24
		
	 ARTICLE 4 DEFAULTS AND REMEDIES
	  	24
			
	 Section 4.1
	  	 Events of Default
	  	24
	 Section 4.2
	  	 Acceleration of Maturity; Rescission and Annulment
	  	25
	 Section 4.3
	  	 Other Remedies
	  	26
	 Section 4.4
	  	 Waiver of Past Defaults
	  	27
	 Section 4.5
	  	 Control by Majority
	  	27
	 Section 4.6
	  	 Limitation on Suit
	  	27
	 Section 4.7
	  	 Unconditional Rights of Holders to Receive Payment and to Convert
	  	28
	 Section 4.8
	  	 Collection of Indebtedness and Suits for Enforcement by the Trustee
	  	28
	 Section 4.9
	  	 Trustee May File Proofs of Claim
	  	29
	 Section 4.10
	  	 Restoration of Rights and Remedies
	  	30
	 Section 4.11
	  	 Rights and Remedies Cumulative
	  	30

  

 iii 

					
	 Section 4.12
	  	 Delay or Omission Not Waiver
	  	30
	 Section 4.13
	  	 Application of Money Collected
	  	30
	 Section 4.14
	  	 Undertaking for Costs
	  	31
	 Section 4.15
	  	 Waiver of Stay or Extension Laws
	  	31
		
	 ARTICLE 5 THE TRUSTEE
	  	31
			
	 Section 5.1
	  	 Certain Duties and Responsibilities
	  	31
	 Section 5.2
	  	 Certain Rights of Trustee
	  	33
	 Section 5.3
	  	 Individual Rights of Trustee
	  	34
	 Section 5.4
	  	 Money Held in Trust
	  	34
	 Section 5.5
	  	 Trustee’s Disclaimer
	  	34
	 Section 5.6
	  	 Notice of Defaults
	  	34
	 Section 5.7
	  	 Reports by Trustee to Holders
	  	34
	 Section 5.8
	  	 Compensation and Indemnification
	  	35
	 Section 5.9
	  	 Replacement of Trustee
	  	35
	 Section 5.10
	  	 Successor Trustee by Merger, Etc.
	  	36
	 Section 5.11
	  	 Corporate Trustee Required; Eligibility
	  	36
	 Section 5.12
	  	 Collection of Claims Against the Company
	  	37
		
	 ARTICLE 6 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	37
			
	 Section 6.1
	  	 Company May Consolidate, Etc., Only on Certain Terms
	  	37
	 Section 6.2
	  	 Successor Corporation Substituted
	  	37
		
	 ARTICLE 7 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	  	38
			
	 Section 7.1
	  	 Without Consent of Holders of Debentures
	  	38
	 Section 7.2
	  	 With Consent of Holders of Debentures
	  	39
	 Section 7.3
	  	 Compliance with Trust Indenture Act
	  	40
	 Section 7.4
	  	 Revocation of Consents and Effect of Consents or Votes
	  	40
	 Section 7.5
	  	 Notation on or Exchange of Debentures
	  	40
	 Section 7.6
	  	 Trustee to Sign Amendment, Etc.
	  	41
		
	 ARTICLE 8 MEETING OF HOLDERS OF DEBENTURES
	  	41
			
	 Section 8.1
	  	 Purposes for Which Meetings May Be Called
	  	41
	 Section 8.2
	  	 Call Notice and Place of Meetings
	  	41
	 Section 8.3
	  	 Persons Entitled to Vote at Meetings
	  	41
	 Section 8.4
	  	 Quorum; Action
	  	42
	 Section 8.5
	  	 Determination of Voting Rights; Conduct and Adjournment of Meetings
	  	42
	 Section 8.6
	  	 Counting Votes and Recording Action of Meetings
	  	43
		
	 ARTICLE 9 COVENANTS
	  	43
			
	 Section 9.1
	  	 Payment of Principal, Premium and Interest
	  	43
	 Section 9.2
	  	 Maintenance of Offices or Agencies
	  	44
	 Section 9.3
	  	 Corporate Existence
	  	44
	 Section 9.4
	  	 Maintenance of Properties
	  	45

  

 iv 

					
	 Section 9.5
	  	 Payment of Taxes and Other Claims
	  	45
	 Section 9.6
	  	 Reports
	  	45
	 Section 9.7
	  	 Compliance Certificate
	  	45
	 Section 9.8
	  	 [Intentionally Omitted]
	  	46
	 Section 9.9
	  	 Insurance
	  	46
		
	 ARTICLE 10 [INTENTIONALLY OMITTED]
	  	46
		
	 ARTICLE 11 REPURCHASE AT THE OPTION OF A HOLDER UPON A CHANGE OF CONTROL
	  	46
			
	 Section 11.1
	  	 Repurchase Right
	  	46
	 Section 11.2
	  	 Conditions to the Company’s Election to Pay the Repurchase Price in Common Stock
	  	47
	 Section 11.3
	  	 Notices; Method of Exercising Repurchase Right, Etc.
	  	47
		
	 ARTICLE 12 CONVERSION OF DEBENTURES
	  	50
			
	 Section 12.1
	  	 Conversion Right and Conversion Price
	  	50
	 Section 12.2
	  	 Exercise of Conversion Right
	  	51
	 Section 12.3
	  	 Fractions of Shares
	  	51
	 Section 12.4
	  	 Adjustment of Conversion Price
	  	52
	 Section 12.5
	  	 Notice of Adjustments of Conversion Price
	  	62
	 Section 12.6
	  	 Notice Prior to Certain Actions
	  	62
	 Section 12.7
	  	 Company to Reserve Common Stock
	  	63
	 Section 12.8
	  	 Taxes on Conversions
	  	63
	 Section 12.9
	  	 Covenant as to Common Stock
	  	63
	 Section 12.10
	  	 Cancellation of Converted Debentures
	  	63
	 Section 12.11
	  	 Effect of Reclassification, Consolidation, Merger or Sale
	  	64
	 Section 12.12
	  	 Responsibility of Trustee for Conversion Provisions
	  	65
	 Section 12.13
	  	 Auto-Conversion by the Company
	  	65
		
	 ARTICLE 13 SUBORDINATION
	  	67
			
	 Section 13.1
	  	 Debentures Subordinated to Senior Debt
	  	67
	 Section 13.2
	  	 Subrogation
	  	69
	 Section 13.3
	  	 Obligation of the Company is Absolute and Unconditional
	  	69
	 Section 13.4
	  	 Maturity of or Default on Senior Debt
	  	70
	 Section 13.5
	  	 Payments on Debentures Permitted
	  	70
	 Section 13.6
	  	 Effectuation of Subordination by Trustee
	  	70
	 Section 13.7
	  	 Knowledge of Trustee
	  	70
	 Section 13.8
	  	 Trustee’s Relation to Senior Debt
	  	71
	 Section 13.9
	  	 Rights of Holders of Senior Debt Not Impaired
	  	71
	 Section 13.10
	  	 Modification of Terms of Senior Debt
	  	71
	 Section 13.11
	  	 Certain Conversions Not Deemed Payment
	  	72
		
	 ARTICLE 14 OTHER PROVISIONS OF GENERAL APPLICATION
	  	72
			
	 Section 14.1
	  	 Trust Indenture Act Controls
	  	72
	 Section 14.2
	  	 Notices
	  	72

  

 v 

					
	 Section 14.3
	  	 Communication by Holders with Other Holders
	  	73
	 Section 14.4
	  	 Acts of Holders of Debentures
	  	73
	 Section 14.5
	  	 Certificate and Opinion as to Conditions Precedent
	  	74
	 Section 14.6
	  	 Statements Required in Certificate or Opinion
	  	75
	 Section 14.7
	  	 Effect of Headings and Table of Contents
	  	75
	 Section 14.8
	  	 Successors and Assigns
	  	75
	 Section 14.9
	  	 Separability Clause
	  	75
	 Section 14.10
	  	 Benefits of Indenture
	  	76
	 Section 14.11
	  	 Governing Law
	  	76
	 Section 14.12
	  	 Counterparts
	  	76
	 Section 14.13
	  	 Legal Holidays
	  	76
	 Section 14.14
	  	 Recourse Against Others
	  	76

  
 EXHIBITS: 
  

			
	EXHIBIT A:	  	Form of Debenture

  

 vi 

 INDENTURE, dated as of February 27, 2006 between PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED, a
corporation duly organized and existing under the laws of the State of Delaware, having its principal office at 7901 Jones Branch Drive, Suite 900, McLean, VA 22102 (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, as Trustee (the
“Trustee”). 
  
 RECITALS OF THE COMPANY 
  
 The Company has duly authorized the creation of an issue of its Step Up
Convertible Subordinated Debentures due 2009 (the “Debentures”) of substantially the tenor and amount hereinafter set forth, and to provide therefor the Company has duly authorized the execution and delivery of this Indenture. 

 
 All things necessary to make the Debentures, when the Debentures are
executed by the Company and authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the Company, and to make this Indenture a valid agreement of the Company, in accordance with their and its terms, have been
done. 
  
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

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

ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section 1.1 Definitions. 
  
 For all purposes of this Indenture and the Debentures, the following terms are defined as follows: 
  
 “Act”, when used with respect to any Holder of a Debenture, has the
meaning specified in Section 14.4(a) hereof. 
  
 “Adjusted Interest Rate” means, with respect to any Reset Transaction, the rate per annum that is the arithmetic average of the rates quoted by two Reference Dealers selected by the Company or its successor as the rate at which
interest on the Debentures should accrue so that the fair market value, expressed in dollars, of a Debenture immediately after the later of: 
  
 (1) the public announcement of such Reset Transaction; or 
  
 (2) the public announcement of a change in dividend policy in connection with such Reset Transaction,

  
 will equal the average Trading Price of a Debenture for the 20 Trading Days
preceding the date of public announcement of such Reset Transaction; provided that the Adjusted Interest Rate shall 

  

 1 

 
not be less than 6.0% per annum during calendar year 2006, 7.0% per annum during calendar year 2007 and 8.0% per annum thereafter. 

 
 “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. 
  
 “Auto-Conversion” has the meaning
specified in Section 12.13(a) hereof. 
  
 “Auto-Conversion Date” means the date on which an Auto-Conversion is deemed effective under this Indenture. 
  
 “Auto-Conversion Notice” has the meaning specified in Section 12.13(b) hereof. 
  
 “Bankruptcy Law” means Title 11 of the U.S. Code, as amended, or
any similar federal or state law for the relief of debtors. 
  
 “Board of Directors” means either the board of directors of the Company or any 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 or Place of Conversion, means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in that Place of Payment or Place of Conversion, as the case may be, are authorized or obligated by law to close. 
  
 “Capitalized Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed)
of which the discounted present value of the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet of such Person. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other
equivalents (however designated, whether voting or non-voting) in equity of such Person, whether now outstanding or issued after the date of this Indenture, including, without limitation, all common stock and preferred stock. 
  
 “Change of Control” means the occurrence of any of the following
after the original issuance of the Debentures: 
  
 (1) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the ultimate “beneficial owner” (as defined in Rule 

  

 2 

 
13d-3 under the Exchange Act) of more than 50% of the total voting power of the then outstanding Voting Stock of the Company on a fully diluted basis;

  
 (2) individuals who at the beginning of any
period of two consecutive calendar years constituted the Board of Directors (together with any directors who are members of the Board of Directors on the date hereof and any new directors whose election by the Board of Directors or whose nomination
for election by the Company’s stockholders was approved by a vote of at least two- thirds of the members of the Board of Directors then still in office who either were members of the Board of Directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members of such board of directors then in office; 
  
 (3) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole to any such “person” or “group” (other than to the Company or a
Subsidiary); 
  
 (4) the merger or consolidation
of the Company with or into another corporation or the merger of another corporation with or into the Company with the effect that immediately after such transaction any such “person” or “group” of persons or entities shall have
become the beneficial owner of securities of the surviving corporation of such merger or consolidation representing a majority of the total voting power of the then outstanding Voting Stock of the surviving corporation; or 
  
 (5) the adoption of a plan relating to the liquidation or
dissolution of the Company. 
  
 provided, however, that a Change of
Control shall not be deemed to have occurred if the closing sales price per share of the Common Stock for any five Trading Days within the period of 10 consecutive Trading Days ending immediately after the later of the Change of Control or the
public announcement of the Change of Control, in the case of a Change of Control under clause (1) above, or the period of 10 consecutive Trading Days ending immediately before the Change of Control, in the case of a Change of Control under
clause (2), (3), (4) or (5) above, shall equal or exceed 110% of the Conversion Price of the Debentures in effect on each such Trading Day. 
  
 “Closing Date” means February 27, 2006. 
  
 “Closing Price” of any security on any date of determination means: 
  
 (1) the closing sale price (or, if no closing sale price is reported, the last reported sale price) of such
security on the New York Stock Exchange on such date; 
  
 (2) if such security is not listed for trading on the New York Stock Exchange on any such date, the closing sale price as reported in the composite transactions for the principal U.S. securities exchange on which such security is so listed;

  

 3 

 (3) if such security is not so listed on a U.S. national or regional securities exchange,
the closing sale price as reported by the Nasdaq National Market; 
  
 (4) if such security is not so reported, the last quoted bid price for such security in the over-the-counter market as reported by the National Quotation Bureau or similar organization; or 
  
 (5) if such bid price is not available, the average of the
mid-point of the last bid and ask prices of such security on such date from at least three nationally recognized independent investment banking firms retained for this purpose by the Company. 
  
 “Common Stock” means any stock of any class of the Company which
has no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. However, subject to the
provisions of Section 12.11 hereof, shares issuable on Conversion of Debentures shall include only shares of the class designated as Common Stock, par value $.01 per share, of the Company at the date of execution of this Indenture or shares of
any class or classes resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of
the Company and which are not subject to redemption by the Company; provided that, if at any time there shall be more than one such resulting class, the shares of each such class then so issuable shall be substantially in the proportion which
the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
  
 “Company” means the corporation named as the “Company” in the first paragraph of this instrument until a
successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor corporation. 
  
 “Company Notice” has the meaning specified in Section 11.3(a) hereof. 
  
 “Company Order” means a written request or order signed in the name
of the Company by its Chairman, its President, any Vice President, its Treasurer or an Assistant Treasurer, and delivered to the Trustee. 
  
 “Conversion”, when used with reference to the Debentures, shall mean and include each of a voluntary conversion or an Auto-Conversion.

  
 “Conversion Date” means the date on which a
Conversion is deemed effective under this Indenture. 
  
 “Conversion Agent” means any Person authorized by the Company to convert Debentures in accordance with Article 12 hereof. 
  
 “Conversion Price” has the meaning specified in Section 12.1 hereof. 
  

 4 

 “Corporate Trust Office” means for purposes of presentation or surrender of Debentures for
payment, registration, transfer, exchange or Conversion or for service of notices or demands upon the Company, the office of the Trustee located in The City of New York at which at any particular time its corporate trust business shall be
administered (which at the date of execution of this Indenture is located at 40 Broad Street, Fifth Floor, Suite 550, New York, New York 10004), and for all other purposes, the office of the Trustee located in the City of Richmond, Virginia (which
at the date of this Indenture is located at 800 East Main Street, Richmond, Virginia 23219, Attention: Corporate Trust). 
  
 “Corporation” means corporations, associations, limited liability companies, companies and business trusts. 
  
 “Currency Agreement” means any foreign exchange contract, currency
swap agreement and any other arrangement and agreement designed to provide protection against fluctuations in currency values. 
  
 “Current Market Price” has the meaning set forth in Section 12.4(g)(1). 
  
 “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any
Bankruptcy Law. 
  
 “Debentures” has the meaning
ascribed to it in the first paragraph under the caption “Recitals of the Company”. 
  
 “Default” means an event which is, or after notice or lapse of time or both would be, an Event of Default. 
  
 “Defaulted Interest” has the meaning specified in Section 2.17 hereof. 
  
 “Depositary” means The Depository Trust Company, its nominees and their respective successors. 
  
 “Designated Senior Debt” means Senior Debt of the Company which, at
the date of determination, has an aggregate amount outstanding of, or under which, at the date of determination, the holders thereof are committed to lend up to, at least $15 million and is specifically designated in the instrument, agreement or
other document evidencing or governing that Senior Debt as “Designated Senior Debt” for purposes of this Indenture (provided that such instrument, agreement or other document may place limitations and conditions on the right of such
Senior Debt to exercise the rights of Designated Senior Debt). 
  
 “Dividend Yield” on any security for any period means the dividends paid or proposed to be paid pursuant to an announced dividend policy on such security for such period divided by, if with respect to dividends paid on such
security, the average Closing Price of such security during such period and, if with respect to dividends proposed to be paid on such security, the Closing Price of such security on the effective date of the related Reset Transaction. 
  

 5 

 “Dollar”, “U.S. Dollar” or “U.S. $” means a dollar or other equivalent unit
in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debts. 
  
 “DTC Participants” has the meaning specified in Section 2.8(a) hereof. 
  
 “Effective Date” has the meaning specified in Section 12.4(m) hereof. 
  
 “Event of Default” has the meaning specified in Section 4.1
hereof. 
  
 “Exchange Act” means the Securities Exchange
Act of 1934, as amended. 
  
 “Expiration Time” has the
meaning specified in Section 12.4(f) hereof. 
  
 “fair
market value” has the meaning set forth in Section 12.4(g)(2) hereof. 
  
 “Global Debenture” has the meaning specified in Section 2.2 hereof. 
  
 “Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other
obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation of such other Person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in
part); provided, however, that the term “guarantee” 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”, when used with respect to any Debenture,
means the Person in whose name the Debenture is registered in the Register. 
  
 “Indebtedness” means, with respect to any Person at any date of determination (without duplication): 
  
 (1) all indebtedness of such Person for borrowed money; 
  
 (2) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

  
 (3) all obligations of such Person in respect
of letters of credit or other similar instruments (including reimbursement obligations with respect thereto); 
  
 (4) all obligations of such Person as lessee under Capitalized Leases; 
  

 6 

 (5) all Indebtedness of other Persons secured by a lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided that the amount of such Indebtedness shall be the lesser of (A) the fair market value of such asset at such date of determination and (B) the amount of such
Indebtedness, 
  
 (6) all Indebtedness of other
Persons guaranteed by such Person to the extent such Indebtedness is guaranteed by such Person; and 
  
 (7) to the extent not otherwise included in this definition, obligations under Currency Agreements and Interest Rate Protection
Agreements. 
  
 The amount of Indebtedness of any Person at any
date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving rise to the obligation;
provided (i) that the amount outstanding at any time of any Indebtedness issued with original issue discount is the face amount of such Indebtedness less the remaining unamortized portion of the original issue discount of such
Indebtedness at such time as determined in conformity with GAAP and (ii) that Indebtedness shall not include any liability for federal, state, local or other taxes. 
  
 “Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 
  
 “Interest Payment Date” means each of August 15 and February 15, beginning August 15, 2006. 
  
 “Interest Rate” means, (a) if a Reset Transaction has not
occurred, 6.0% per annum during calendar year 2006, 7.0% per annum during calendar year 2007 and 8.0% per annum thereafter, or (b) if a Reset Transaction occurs, the Adjusted Interest Rate related to such Reset Transaction from
the effective date of such Reset Transaction to, but not including, the effective date of any succeeding Reset Transaction. 
  
 “Interest Rate Protection Agreement” means interest rate swap agreements, interest rate cap agreements, interest rate insurance, and other
arrangements and agreements designed to provide protection against fluctuations in interest rates. 
  
 “Make-Whole Conversion Price” has the meaning specified in Section 12.4(m) hereof. 
  
 “Maturity” means the date on which the principal of such Debentures
becomes due and payable as therein or herein provided, whether at the Stated Maturity or by acceleration, Conversion, exercise of a Repurchase Right or otherwise. 
  
 “Nasdaq National Market” means the National Association of Securities Dealers Automated Quotation National Market
or any successor national securities exchange or automated over-the-counter trading market in the United States. 
  
 “Non-Electing Share” has the meaning specified in Section 12.11 hereof. 
  

 7 

 “Non-Stock Change of Control” has the meaning specified in Section 12.4(m) hereof.

  
 “Non-Stock Change of Control Notice” has the meaning
specified in Section 12.4(m) hereof. 
  
 “Officer”
of the Company means the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, the Treasurer, any Vice President or the Secretary of the Company. 
  
 “Officer’s Certificate” means a certificate signed by the Chairman, the President, a Vice President, the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. 
  
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company (and may include directors or employees of the
Company) and which opinion is acceptable to the Trustee. 
  
 “Outstanding”, when used with respect to Debentures, means, as of the date of determination, all Debentures theretofore authenticated and delivered under this Indenture, except Debentures: 
  
 (1) previously canceled by the Trustee or delivered to the
Trustee for cancellation; 
  
 (2) converted into
Common Stock in accordance with the provisions of this Indenture; 
  
 (3) for the payment of which money in the necessary amount has been previously 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 Debentures; or 
  
 (4) which have been paid, in exchange for or in lieu of which other Debentures have been authenticated and delivered pursuant to this
Indenture, other than any such Debentures in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Debentures are held by a bona fide purchaser in whose hands such Debentures are valid obligations of the
Company. 
  
 “Paying Agent” has the meaning specified in
Section 2.5 hereof. 
  
 “Payment Blockage Notice”
has the meaning specified in Section 13.1(d) hereof. 
  
 “Permitted Junior Securities” means securities that are subordinated to Senior Debt, and any securities issued in exchange for Senior Debt, at least to the same extent as the Debentures. 
  
 “Person” means any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust, estate, unincorporated organization or government or any agency or political subdivision thereof. 
  

 8 

 “Physical Debentures” has the meaning specified in Section 2.2 hereof. 
  
 “Place of Conversion” means any city in which any Conversion Agent
is located. 
  
 “Place of Payment” means any city in
which any Paying Agent is located. 
  
 “Predecessor
Debenture” of any particular Debenture means every previous Debenture evidencing all or a portion of the same debt as that evidenced by such particular Debenture; and, for the purposes of this definition, any Debenture authenticated and
delivered under Section 2.12 hereof in exchange for or in lieu of a mutilated, destroyed, lost or stolen Debenture shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Debenture. 
  
 “PTHI” means Primus Telecommunications Holding, Inc., a direct,
wholly-owned subsidiary of the Company. 
  
 “Record
Date” means either a Regular Record Date or a Special Record Date, as the case may be; provided that, for purposes of Section 12.4 hereof, Record Date has the meaning specified in Section 12.4(g)(3) hereof. 
  
 “Reference Dealer” means a dealer engaged in the trading of
convertible securities. 
  
 “Reference Period” has the
meaning set forth in Section 12.4(d) hereof. 
  
 “Register” has the meaning specified in Section 2.5 hereof. 
  
 “Registrar” has the meaning specified in Section 2.5 hereof. 
  
 “Regular Record Date” for the interest on the Debentures payable means the August 1 or February 1 (whether or not a Business Day), as
the case may be, next preceding an Interest Payment Date. 
  
 “Repurchase Date” has the meaning specified in Section 11.1 hereof. 
  
 “Repurchase Price” has the meaning specified in Section 11.1 hereof. 
  
 “Repurchase Right” has the meaning specified in Section 11.1 hereof. 
  
 “Reset Transaction” means a merger, consolidation or statutory share exchange to which the entity that is the
issuer of the shares of common stock into which the Debentures are then convertible into is a party, a sale of all or substantially all the assets of that entity, a recapitalization of those shares of common stock or a distribution described in
Section 12.4(d) hereof, after the effective date of which transaction or distribution the Debentures would be convertible into: 
  
 (1) shares of an entity the common stock of which had a Dividend Yield for the four fiscal quarters of such entity immediately preceding
the public announcement of such transaction or distribution that was more than 2.5% higher than the Dividend Yield on the Common Stock (or other common stock then issuable upon Conversion 

  

 9 

 
of the Debentures) for the four fiscal quarters preceding the public announcement of such transaction or distribution, or 
  
 (2) shares of an entity that announces a dividend policy
prior to the effective date of such transaction or distribution which policy, if implemented, would result in a Dividend Yield on such entity’s common stock for the next four fiscal quarters that would result in such a 2.5% basis point
increase. 
  
 “Responsible Officer”, when used with
respect to the Trustee, means any officer of the Trustee, including any vice president, assistant vice president, secretary, assistant secretary, the treasurer, any assistant treasurer, the managing director or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject. 
  
 “Restricted Subsidiary” means a Subsidiary of the Company that is a “Restricted Subsidiary” as defined in (i) the indenture governing the 12-3/4% Senior Notes due 2009 of the Company, (ii) the indenture
governing the 8% senior notes due 2014 of PTHI, or (iii) the $100,000,000 Term Loan Agreement among the Company, PTHI and various lenders named therein, dated February 18, 2005 , or any replacement thereof. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as amended.

  
 “Senior Debt” means the principal of, and the
premium, if any, interest (including all interest accruing subsequent to the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in any such proceeding) and all fees, costs,
expenses and other amounts accrued or due on or in connection with, Indebtedness of the Company, whether outstanding on the date of execution of this Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the
Company (including all deferrals, renewals, extensions or refundings of, or amendments, modifications or supplements to, the foregoing), unless, in the case of any particular Indebtedness, the instrument creating or evidencing the same or the
assumption or guarantee thereof expressly provides that such Indebtedness shall not be senior in right of payment to the Debentures or expressly provides that such Indebtedness is pari passu or junior to the Debentures. Notwithstanding the
foregoing, the term “Senior Debt” shall include, without limitation, all Designated Senior Debt and shall not include Indebtedness of the Company to any Subsidiary. 
  
 “Significant Subsidiary” means, at any date of determination, any Subsidiary of the Company that, together with
its Subsidiaries, (i) for the most recent fiscal year of the Company, accounted for more than 10% of the consolidated revenues of the Company or (ii) as of the end of such fiscal year, was the owner of more than 10% of the consolidated
assets of the Company, all as set forth on the most recently available consolidated financial statements of the Company for such fiscal year. 
  

 10 

 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 2.17 hereof. 
  
 “Stated
Maturity” means, (i) with respect to any debt security, the date specified in such debt security as the fixed date on which the final installment of principal of such debt security is due and payable and (ii) with respect to any
scheduled installment of principal of or interest on any debt security, the date specified in such debt security as the fixed date on which such installment is due and payable. 
  
 “Stock Price” has the meaning specified in Section 12.4(m) hereof. 
  
 “Subsidiary” means a corporation more than 50% of the outstanding
Voting Stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. 
  
 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Section 77aaa-77bbbb), as in effect on the date of
execution of this Indenture; provided, however, that in the event the TIA is amended after such date, “TIA” means, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended, or any successor
statute. 
  
 “Trading Day” means: 
  
 (1) if the applicable security is listed or admitted for
trading on the New York Stock Exchange or another national security exchange, a day on which the New York Stock Exchange or such other national security is open for business; 
  
 (2) if the applicable security is quoted on the Nasdaq National Market, a day on which trades may be made
thereon; or 
  
 (3) if the applicable security is
not so listed, admitted for trading or quoted, any day other than a Saturday or Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close. 
  
 “Trading Price” of a security on any date of determination means:

  
 (1) the closing sale price (or, if no closing
sale price is reported, the last reported sale price) of such security (regular way) on the New York Stock Exchange on such date; 
  
 (2) if such security is not listed for trading on the New York Stock Exchange on any such date, the closing sale price as reported in the
composite transactions for the principal U.S. securities exchange on which such security is so listed; 
  
 (3) if such security is not so listed on a U.S. national or regional securities exchange, the closing sale price as reported by the Nasdaq
National Market; 
  

 11 

 (4) if such security is not so reported, the last price quoted by Interactive Data
Corporation for such security or, if Interactive Data Corporation is not quoting such price, a similar quotation service selected by the Company; 
  
 (5) if such security is not so quoted, the average of the mid-point of the last bid and ask prices for such security from at least two
dealers recognized as market-makers for such security; or 
  
 (6) if such security is not so quoted, the average of the last bid and ask prices for such security from a Reference Dealer. 
  
 “Transfer Agent” means any Person, which may be the Company, authorized by the Company to exchange or register the transfer of Debentures.

  
 “Trigger Event” has the meaning specified in
Section 12.4(d) hereof. 
  
 “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 such successor
Trustee. 
  
 “U.S. Government Obligations” means:
(1) direct obligations of the United States of America for the payment of which the full faith and credit of the United States of America is pledged or (2) obligations 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 and which in either case, are non-callable at the option of the issuer thereof.

  
 “Vice President”, when used with respect to the
Company, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president”. 
  
 “Voting Stock” means with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote for the election of
directors, managers or other voting members of the governing body of such Person. 
  
 Section 1.2 Incorporation by Reference of Trust Indenture Act. 
  
 Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms, as applied to this Indenture, have the following
meanings: 
  
 “indenture securities” means the
Debentures; 
  
 “indenture security holder” means a
Holder; 
  
 “indenture to be qualified” means this
Indenture; 
  
 “indenture trustee” or
“institutional trustee” means the Trustee; and 
  

 12 

 “obligor” on the Debentures means the Company and any other obligor on the Debentures.

  
 All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions. 
  
 Section 1.3 Rules of Construction. 
  
 For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
  
 (1) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the singular; 
  
 (2) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with accounting principles
generally accepted in the United States prevailing at the time of any relevant computation hereunder; and 
  
 (3) 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. 
  
 ARTICLE 2 
  
 THE DEBENTURES

  
 Section 2.1 Title and Terms. 
  
 The Debentures shall be known and designated as the “Step Up Convertible
Subordinated Debentures due 2009” of the Company. The aggregate principal amount of Debentures which may be authenticated and delivered under this Indenture is limited to $50,119,000, except for Debentures authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of other Debentures pursuant to Section 2.7, 2.8, 2.12, 7.5, 11.1 or 12.2 hereof. The Debentures shall be issuable in denominations of $1,000 or integral multiples thereof.

  
 The Debentures shall mature on August 15, 2009.

  
 Interest shall accrue from the Closing Date at the Interest
Rate until the principal thereof is paid or made available for payment. Interest shall be payable semiannually in arrears on August 15 and February 15 of each year, commencing August 15, 2006. 
  
 Interest on the Debentures shall be computed (i) for any full semiannual
period for which a particular Interest Rate is applicable on the basis of a 360-day year of twelve 30-day months and (ii) for any period for which a particular Interest Rate is applicable that is shorter than a full semiannual period for which
interest is calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual number of days elapsed over a 30-day month. For purposes of determining the Interest Rate, the Trustee may assume that a Reset Transaction
has 

  

 13 

 
not occurred unless the Trustee has received an Officer’s Certificate stating that a Reset Transaction has occurred and specifying the Adjusted Interest
Rate then in effect. 
  
 A Holder of any Debenture at the close of
business on a Regular Record Date shall be entitled to receive interest on such Debenture on the corresponding Interest Payment Date. A Holder of any Debenture which is converted after the close of business on a Regular Record Date and prior to the
corresponding Interest Payment Date shall be entitled to receive interest on the principal amount of such Debenture, notwithstanding the Conversion of such Debenture prior to such Interest Payment Date. However, any such Holder which surrenders any
such Debenture for Conversion (other than any Debenture whose Maturity is prior to such Interest Payment Date) during the period between the close of business on such Regular Record Date and ending with the opening of business on the corresponding
Interest Payment Date shall be required to pay the Company an amount equal to the interest on the principal amount of such Debenture so converted, which is payable by the Company to such Holder on such Interest Payment Date, at the time such Holder
surrenders such Debenture for Conversion. 
  
 Principal of, and
premium, if any, and interest on, Global Debentures shall be payable to the Depositary in immediately available funds. 
  
 Principal and premium, if any, and interest on Maturity, on Physical Debentures shall be payable at the office or agency of the Company maintained for
such purpose, initially the Corporate Trust Office of the Trustee. Interest on Physical Debentures (other than at Maturity) will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the
Person entitled thereto as such address shall appear in the Register, or (ii) upon application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount in excess of $5,000,000, wire transfer of
immediately available funds. 
  
 The Debentures shall have a
Repurchase Right exercisable at the option of Holders as provided in Article 11 hereof. 
  
 The Debentures shall be convertible as provided in Article 12 hereof. 
  
 The Debentures shall be subordinated in right of payment to Senior Debt of the Company as provided in Article 13 hereof. 
  
 Section 2.2 Form of Debentures. 
  
 The Debentures and the Trustee’s certificate of authentication to be
borne by such Debentures shall be substantially in the form annexed hereto as Exhibit A, which is incorporated in and made a part of this Indenture. The terms and provisions contained in the form of Debenture shall constitute, and are hereby
expressly made, a part of this Indenture, and to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
  
 Any of the Debentures may have such letters, numbers or other marks of
identification and such notations, legends and endorsements as the officers executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with 

  

 14 

 
the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange or automated quotation system on which the Debentures may be listed or designated for issuance, or to conform to usage. 
  
 Debentures issued hereunder shall initially be issued only in the form of one or more permanent global Debentures (each, a “Global Debenture”)
in registered form without interest coupons, in substantially the form set forth in Exhibit A. Debentures issued pursuant to Section 2.8(d) in exchange for or upon transfer of beneficial interests in the Global Debenture shall be in the form of
permanent certificated Debentures substantially in the form set forth in Exhibit A (the “Physical Debentures”). 
  
 The Global Debentures shall be: 
  
 (1) duly executed by the Company and authenticated by the Trustee as hereinafter provided; 
  
 (2) registered in the name of the Depositary (or its
nominee) for credit to the respective accounts of the Holders at the Depositary; and 
  
 (3) deposited with the Trustee, as custodian for the Depositary. 
  
 The Global Debentures shall be substantially in the form of Debenture set forth in Exhibit A annexed hereto (including the
text and schedule called for by footnote and thereto). The aggregate principal amount of the Global Debentures may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary (or its
nominee), in accordance with the instructions given by the Holder thereof, as hereinafter provided. 
  
 The Debentures shall be typed, printed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner
permitted by the rules of any securities exchange on which the Debentures may be listed, all as determined by the Officers executing such Debentures, as evidenced by their execution of such Debentures. 
  
 Section 2.3 Global Debenture Legend. 
  
 Each Global Debenture shall also bear the following legend on the face
thereof: 
  
 Unless this certificate is presented by an
authorized representative of The Depository Trust Company (“DTC”) to Primus Telecommunications Group, Incorporated (or its successor) or its agent for registration of transfer, exchange, conversion or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other entity as is requested by an authorized representative of DTC (and any payment hereon is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), any transfer, pledge or other use hereof for 

  

 15 

 
value or otherwise by or to any person is wrongful since the registered owner hereof, Cede & Co., has an interest herein. 
  
 Section 2.4 Execution, Authentication, Delivery and Dating. 
  
 Two Officers shall execute the Debentures on behalf of the Company by manual
or facsimile signature. If an Officer whose signature is on a Debenture no longer holds that office at the time the Debenture is authenticated, the Debenture shall be valid nevertheless. 
  
 At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Debentures
executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Debentures, and the Trustee in accordance with such Company Order shall authenticate and deliver such Debentures as
provided in this Indenture and not otherwise. 
  
 Each Debenture
shall be dated the date of its authentication. 
  
 No Debenture
shall be entitled to any benefit under this Indenture, or be valid or obligatory for any purpose, unless there appears on such Debenture a certificate of authentication substantially in the form provided for herein executed by or on behalf of the
Trustee by manual signature, and such certificate upon any Debenture shall be conclusive evidence, and the only evidence, that such Debenture has been duly authenticated and delivered hereunder. 
  
 The Trustee may appoint an authenticating agent or agents reasonably
acceptable to the Company with respect to the Debentures. Unless limited by the terms of such appointment, an authenticating agent may authenticate Debentures whenever the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. 
  
 Section 2.5
Registrar and Paying Agent. 
  
 The Company shall maintain an
office or agency where Debentures may be presented for registration of transfer or for exchange (the “Registrar”) and an office or agency where Debentures may be presented for payment (the “Paying Agent”). The Registrar shall
keep a register of the Debentures (the “Register”) and of their transfer and exchange. The Company may appoint one or more co-Registrars and one or more additional Paying Agents for the Debentures. The term “Paying Agent”
includes any additional paying agent and the term “Registrar” includes any additional registrar. The Company may change any Paying Agent or Registrar without prior notice to any Holder. 
  
 The Company will cause each Paying Agent (other than the Trustee) to execute
and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 
  
 (1) hold all sums held by it for the payment of the principal of and premium, if any, or interest on
Debentures in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as provided in this Indenture; 
  

 16 

 (2) give the Trustee notice of any Default by the Company in the making of any payment of
principal and premium, if any, or interest; and 
  
 (3) at any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 
  
 The Company shall give prompt written notice to the Trustee of the name and address of any Agent who is not a party to this
Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any Affiliate of the Company may act as Paying Agent or Registrar; provided, however,
that none of the Company, its subsidiaries or the Affiliates of the foregoing shall act: 
  
 (i) as Paying Agent in connection with offers to purchase and discharges, as otherwise specified in this Indenture, and 
  
 (ii) as Paying Agent or Registrar if a Default or Event of
Default has occurred and is continuing. 
  
 The Company hereby
initially appoints the Trustee as Registrar and Paying Agent for the Debentures. 
  
 Section 2.6 Paying Agent to Hold Assets in Trust. 
  
 Not later than 11:00 a.m. (New York City time) on each due date of the principal, premium, if any, and interest on any Debentures, the Company shall deposit with one or more Paying Agents money in immediately
available funds sufficient to pay such principal, premium, if any, and interest so becoming due. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if
other than the Company) shall have no further liability for the money so paid over to the Trustee. 
  
 If the Company shall act as a Paying Agent, it shall, prior to or on each due date of the principal of and premium, if any, or interest on any of the
Debentures, segregate and hold in trust for the benefit of the Holders a sum sufficient with monies held by all other Paying Agents, to pay the principal and premium, if any, or interest so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as provided in this Indenture, and shall promptly notify the Trustee of its action or failure to act. 
  
 Section 2.7 General Provisions Relating to Transfer and Exchange. 
  

The Debentures are issuable only in registered form. A Holder may transfer a Debenture only by written application to the Registrar stating the name of
the proposed transferee and otherwise complying with the terms of this Indenture. No such transfer shall be effected until, and such transferee shall succeed to the rights of a Holder only upon, final acceptance and registration of the transfer by
the Registrar in the Register. Furthermore, any Holder of a Global Debenture shall, by acceptance of such Global Debenture, agree that transfers of beneficial interests in such Global Debenture may be effected only through a book-entry system
maintained 

  

 17 

 
by the Holder of such Global Debenture (or its agent) and that ownership of a beneficial interest in the Debenture shall be required to be reflected in a
book-entry. When Debentures are presented to the Registrar with a request to register the transfer or to exchange them for an equal aggregate principal amount of Debentures of other authorized denominations, the Registrar shall register the transfer
or make the exchange as requested if its requirements for such transactions are met (including that such Debentures are duly endorsed or accompanied by a written instrument of transfer duly executed by the Holder thereof or by an attorney who is
authorized in writing to act on behalf of the Holder). Subject to Section 2.4 hereof, to permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Debentures at the Registrar’s request.
No service charge shall be made for any registration of transfer or exchange of the Debentures, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other
than any such transfer taxes or other similar governmental charge payable upon exchanges pursuant to Section 2.14 or 7.5 hereof). 
  
 Neither the Company nor the Registrar shall be required to exchange or register a transfer of any Debentures surrendered for Conversion or, if a portion
of any Debenture is surrendered for Conversion, such portion thereof surrendered for Conversion. 
  
 Section 2.8 Book-Entry Provisions for the Global Debentures. 
  
 (a) The Global Debentures initially shall: 
  
 (i) be registered in the name of the Depositary (or a nominee thereof); and 
  
 (ii) be delivered to the Trustee as custodian for such Depositary. 
  
 Members of, or participants in, the Depositary (“DTC Participants”)
shall have no rights under this Indenture with respect to any Global Debenture held on their behalf by the Depositary, or the Trustee as its custodian, or under such Global Debenture, and the Depositary may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner of such Global Debenture for all purposes whatsoever. Notwithstanding the foregoing, nothing contained herein shall prevent the Company, the Trustee or any agent of the Company or Trustee
from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and the DTC Participants, the operation of customary practices governing the exercise of the rights of a
Holder of any Debenture. 
  
 (b) The registered
Holder of a Global Debenture may grant proxies and otherwise authorize any Person, including DTC Participants and Persons that may hold interests through DTC Participants, to take any action which a Holder is entitled to take under this Indenture or
the Debentures. 
  
 (c) A Global Debenture may
not be transferred, in whole or in part, to any Person other than the Depositary (or a nominee thereof), and no such transfer to any such other Person may be registered. Beneficial interests in a Global Debenture may be transferred in accordance
with the rules and procedures of the Depositary. 
  

 18 

 (d) If at any time: 
  
 (i) the Depositary notifies the Company in writing that it is no longer willing or able to continue to act
as Depositary for the Global Debentures, or the Depositary ceases to be a “clearing agency” registered under the Exchange Act and a successor depositary for the Global Debentures is not appointed by the Company within 90 days of such
notice or cessation; or 
  
 (ii) an Event of
Default has occurred and is continuing and the Registrar has received a request from the Depositary for the issuance of Physical Debentures in exchange for such Global Debenture or Global Debentures, 
  
 the Depositary shall surrender such Global Debenture or Global Debentures to the Trustee for
cancellation and the Company shall execute, and the Trustee, upon receipt of an Officer’s Certificate and Company Order for the authentication and delivery of Debentures, shall authenticate and deliver in exchange for such Global Debenture or
Global Debentures, Physical Debentures in an aggregate principal amount equal to the aggregate principal amount of such Global Debenture or Global Debentures. Such Physical Debentures shall be registered in such names as the Depositary (or any
nominee thereof) shall identify in writing as the beneficial owners of the Debentures represented by such Global Debenture or Global Debentures. 
  
 (e) Notwithstanding the foregoing, in connection with any transfer of beneficial interests in a Global Debenture to beneficial owners
pursuant to Section 2.8(d) hereof, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of such Global Debenture in an amount equal to the principal amount of the beneficial interest in such
Global Debenture to be transferred. 
  
 Section 2.9 [Intentionally
Omitted]. 
  
 Section 2.10 Holder Lists. 
  
 The Trustee shall preserve in as current a form as is reasonably practicable
the most recent list available to it of the names and addresses of Holders and shall otherwise comply with Section 312(a) of the TIA. If the Trustee is not the Registrar, the Company shall furnish to the Trustee prior to or on each Interest
Payment Date and at such other times as the Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders relating to such Interest Payment Date or request, as the
case may be. 
  

 19 

 Section 2.11 Persons Deemed Owners. 
  
 The Company, the Trustee and any agent of the Company or the Trustee may treat the registered Holder of a Global Debenture
as the absolute owner of such Global Debenture for the purpose of receiving payment thereof or on account thereof and for all other purposes whatsoever, whether or not such Debenture be overdue, and notwithstanding any notice of ownership or writing
thereon, or any notice of previous loss or theft or other interest therein. The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Debenture is registered as the owner of such Debenture for the
purpose of receiving payment of principal of and premium, if any, and interest on such Debenture and for all other purposes whatsoever, whether or not such Debenture be overdue, and notwithstanding any notice of ownership or writing thereon, or any
notice of previous loss or theft or other interest therein. 
  
 Section 2.12 Mutilated, Destroyed, Lost or Stolen Debentures. 
  
 If any mutilated Debenture is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Debenture of like tenor and principal amount and bearing a number not
contemporaneously outstanding. 
  
 If there is delivered to the
Company and the Trustee 
  
 (1) evidence to their
satisfaction of the destruction, loss or theft of any Debenture, and 
  
 (2) such Debenture or indemnity as may be required by them to save each of them and any agent of either of them harmless, 
  
 then, in the absence of notice to the Company or the Trustee that such Debenture has been acquired by a bona fide purchaser, the Company shall execute and, upon request,
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Debenture, a new Debenture of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
  
 In case any such mutilated, destroyed, lost or stolen Debenture has become or
is about to become due and payable, the Company in its discretion, but subject to any Conversion rights, may, instead of issuing a new Debenture, pay such Debenture, upon satisfaction of the condition set forth in the preceding paragraph.

  
 Upon the issuance of any new Debenture under this
Section 2.12, 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 Debenture issued pursuant to this
Section 2.12 in lieu of any destroyed, lost or stolen Debenture shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debenture shall be at any time enforceable by 

  

 20 

 
anyone, and such new Debenture shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Debentures duly
issued hereunder. 
  
 The provisions of this Section 2.12 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 Debentures. 
  
 Section 2.13 Treasury Debentures. 
  

In determining whether the Holders of the requisite principal amount of Outstanding Debentures are present at a meeting of Holders for quorum purposes
or have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Debentures owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such determination as to the presence of a quorum or upon any such request, demand, authorization, direction, notice, consent or waiver, only such Debentures of which the Trustee has
received written notice and are so owned shall be so disregarded. 
  
 Section 2.14 Temporary Debentures. 
  
 Pending the
preparation of Debentures in definitive form, the Company may execute and the Trustee shall, upon written request of the Company, authenticate and deliver temporary Debentures (printed or lithographed). Temporary Debentures shall be issuable in any
authorized denomination, and substantially in the form of the Debentures in definitive form but with such omissions, insertions and variations as may be appropriate for temporary Debentures, all as may be determined by the Company. Every such
temporary Debenture shall be executed by the Company and authenticated by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the Debentures in definitive form. Without unreasonable delay, the
Company will execute and deliver to the Trustee Debentures in definitive form (other than in the case of Debentures in global form) and thereupon any or all temporary Debentures (other than any such Debentures in global form) may be surrendered in
exchange therefor, at each office or agency maintained by the Company pursuant to Section 9.2 and the Trustee shall authenticate and deliver in exchange for such temporary Debentures an equal aggregate principal amount of Debentures in
definitive form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Debentures shall in all respects be entitled to the same benefits and subject to the same limitations
under this Indenture as Debentures in definitive form authenticated and delivered hereunder. 
  
 Section 2.15 Cancellation. 
  
 All
Debentures surrendered for payment, repurchase, Conversion, registration of transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee. All Debentures so delivered shall be canceled promptly by the
Trustee, and no Debentures shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. Upon written instructions from the Company, the Trustee shall destroy canceled Debentures and, after such
destruction, shall deliver a certificate of such destruction to 

  

 21 

 
the Company. If the Company shall acquire any of the Debentures, such acquisition shall not operate as a redemption or satisfaction of the Indebtedness
represented by such Debentures unless the same are delivered to the Trustee for cancellation. 
  
 Section 2.16 CUSIP Numbers. 
  
 The Company in issuing the Debentures may use “CUSIP” numbers (if then generally in use), and the Trustee shall use CUSIP numbers in notices of exchange as a convenience to Holders; provided that any such notice shall state
that no representation is made as to the correctness of such numbers either as printed on the Debentures or as contained in any such notice and that reliance may be placed only on the other identification numbers printed on the Debentures, and any
such exchange shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in the CUSIP numbers. 
  
 Section 2.17 Defaulted Interest. 
  
 If the Company fails to make a payment of interest on any Debenture when due and payable (“Defaulted Interest”), it shall pay such Defaulted
Interest plus (to the extent lawful) any interest payable on the Defaulted Interest (calculated using the Interest Rate), in any lawful manner. It may elect to pay such Defaulted Interest, plus any such interest payable on it, to the Persons who are
Holders of such Debentures on which the interest is due on a subsequent Special Record Date. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Debenture. The Company shall fix any
such Special Record Date and payment date for such payment. At least 15 days before any such Special Record Date, the Company shall mail to Holders affected thereby a notice that states the Special Record Date, the Interest Payment Date, and amount
of such interest to be paid. 
  
 ARTICLE 3 
  
 SATISFACTION AND DISCHARGE 
  
 Section 3.1 Satisfaction and Discharge of Indenture. When: 
  
 (1) the Company shall deliver to the Trustee for
cancellation all Debentures previously authenticated (other than any Debentures which have been destroyed, lost or stolen and in lieu of, or in substitution for which, other Debentures shall have been authenticated and delivered) and not previously
canceled, or 
  
 (2) (A) all the Debentures not
previously canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year, 
  
 (B) the Company shall deposit with the Trustee, in trust, cash in U.S. dollars and/or U.S. Government
Obligations which through the payment of interest and principal in respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before

  

 22 

 
the due date of any payment of money, an amount in cash, 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 principal of, premium, if any, or interest on all of the Debentures (other than any Debentures which shall have been mutilated, destroyed, lost or stolen and in lieu of or
in substitution for which other Debentures shall have been authenticated and delivered) not previously canceled or delivered to the Trustee for cancellation, on the dates such payments of principal, premium, if any, or interest are due to such date
of maturity, and 
  
 (C) the Company shall have
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (y) since the date of execution
of this Indenture, there has been a change in the applicable federal income tax law, in the case of either clause (x) or (y) to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize
income, gain or loss for federal income tax purposes as a result of such deposit and discharge and will be subject to federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and
discharge had not occurred, and 
  
 if, in the case of either clause (1) or
(2), the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect, except as to: 
  
 (i) remaining rights of registration of transfer, substitution and exchange and Conversion of Debentures,

  
 (ii) rights hereunder of Holders to receive
payments of principal of and premium, if any, and interest on, the Debentures and the other rights, duties and obligations of Holders, as beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee, and 
  
 (iii) the rights, obligations and immunities of the Trustee
hereunder, 
  
 and the Trustee, on demand of the Company accompanied by an
Officer’s Certificate and an Opinion of Counsel (each stating that all conditions precedent herein relating to the satisfaction and discharge of this Indenture have been complied with) and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this Indenture; provided, however, the Company shall reimburse the Trustee for all amounts due the Trustee under Section 5.8 hereof and for any costs or expenses
thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter 

  

 23 

 
reasonably and properly rendered by the Trustee in connection with this Indenture or the Debentures. 
  
 Section 3.2 Deposited Monies to be Held in Trust. 
  
 Subject to Section 3.3 hereof, all monies deposited with the Trustee
pursuant to Section 3.1 hereof shall be held in trust and applied by it to the payment, notwithstanding the provisions of Article 13 hereof, either directly or through any Paying Agent (including the Company if acting as its own Paying Agent),
to the Holders of the particular Debentures for the payment of which such monies have been deposited with the Trustee, of all sums due and to become due thereon for principal, premium, if any, and interest. All monies deposited with the Trustee
pursuant to Section 3.1 hereof (and held by it or any Paying Agent) for the payment of Debentures subsequently converted shall be returned to the Company upon request of the Company. 
  
 Section 3.3 Return of Unclaimed Monies. 
  
 The Trustee and the Paying Agent shall pay to the Company any money held by them for the payment of principal or premium, if
any, or interest that remains unclaimed for two years after the date upon which such payment shall have become due. After payment to the Company, Holders entitled to the money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease. 
  
 ARTICLE 4 
  
 DEFAULTS AND REMEDIES 
  
 Section 4.1 Events of Default. 
  
 An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to
any judgment, decree or order of any court or any order, rule or regulation of any or governmental body): 
  
 (a) default in the payment of interest on any Debenture when due and payable and continuance of such default for a period of 30 days;

  
 (b) default in the payment of principal of
(or premium, if any, on) any Debenture at its Stated Maturity, upon acceleration or otherwise; 
  
 (c) default in the payment of principal or interest on any Debenture required to be purchased pursuant to a Repurchase Right as set forth
in Section 11.1; 
  
 (d) default in the
performance or breach of any covenant or agreement of the Company in this Indenture or under the Debentures (other than a default in the performance, or breach, of a covenant or agreement specified in clause (a), (b) or (c) of this
Section 4.1), and continuance of such default or breach for a period of 30 consecutive days after there has been 

  

 24 

 
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 Debentures 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; 
  
 (e) there occurs with respect to any issue or issues of Indebtedness of the Company or any Restricted
Subsidiary having an outstanding principal amount of $25.0 million or more in the aggregate for all such issues of all such Persons, whether such Indebtedness now exists or shall hereafter be created, (I) an event of default that has caused the
holder thereof to declare such Indebtedness to be due and payable prior to its Stated Maturity and such Indebtedness has not been discharged in full or such acceleration has not been rescinded or annulled by the earlier of (x) the expiration of
any applicable grace period or (y) the thirtieth day after such default; and/or (II) the failure to make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall not have been made, waived or
extended by the earlier of (x) the expiration of any applicable grace period or (y) the thirtieth day after such default; 
  
 (f) any final judgment or order (not covered by insurance) for the payment of money in excess of $25.0 million in the aggregate for all
such final judgments or orders (treating any deductibles, self- insurance or retention as not so covered) shall be rendered against the Company or any Restricted Subsidiary and shall not be paid or discharged, and there shall be any period of 30
consecutive days following entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged against all such Persons to exceed $25.0 million during which a stay of
enforcement of such final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 
  
 (g) a court having jurisdiction in the premises enters a decree or order for (A) relief in respect of the Company or any Significant
Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (B) appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the
Company or any Significant Subsidiary or for all or substantially all of the property and assets of the Company or of any Significant Subsidiary or (C) the winding up or liquidation of the affairs of the Company or any Significant Subsidiary
and, in each case, such decree or order shall remain unstayed and in effect for a period of 30 consecutive days; or 
  
 (h) the Company or any Significant Subsidiary (A) commences a voluntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (B) consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Company or any Significant Subsidiary or for all or substantially all of the property and assets of the Company or any Significant Subsidiary or (C) effects any general assignment for the benefit of
creditors. 
  
 Section 4.2 Acceleration of Maturity; Rescission
and Annulment. 
  
 (a) If an Event of Default
with respect to Outstanding Debentures (other than an Event of Default specified in Section 4.1(g) or 4.1(h) hereof) occurs and is continuing, the 

  

 25 

 
Trustee or the Holders of at least 25% in aggregate principal amount of the Outstanding Debentures, by written notice to the Company, may declare due and
payable 100% of the principal amount of all Outstanding Debentures plus any accrued and unpaid interest to the date of payment. Upon a declaration of acceleration, such principal and accrued and unpaid interest to the date of payment shall be
immediately due and payable. 
  
 (b) If an Event
of Default specified in Section 4.1(g) or 4.1(h) hereof occurs, all unpaid principal and accrued and unpaid interest on the Outstanding Debentures shall become and be immediately due and payable, without any declaration or other act on the part
of the Trustee or any Holder. 
  
 (c) The Holders
of a majority in aggregate principal amount of the Outstanding Debentures by written notice to the Trustee may rescind and annul an acceleration and its consequences if: 
  
 (1) all existing Events of Default, other than the nonpayment of principal of or interest on the Debentures
which have become due solely because of the acceleration, have been remedied, cured or waived, and 
  
 (2) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction; 
  
 provided, however, that in the event of a declaration of acceleration in
respect of the Debentures because of an Event of Default specified in Section 4.1(e) shall have occurred and be continuing, such declaration of acceleration shall be automatically rescinded and annulled if the Indebtedness that is the subject
of such Event of Default has been discharged or the holders thereof have rescinded their declaration of acceleration in respect of such Indebtedness, and written notice of such discharge or rescission, as the case may be, shall have been given to
the Trustee by the Company and countersigned by the holders of such Indebtedness or a trustee, fiduciary or agent for such holders, within 60 days after such declaration of acceleration in respect of the Debentures and no other Event of Default has
occurred during such 60-day period which has not been cured or waived during such period. 
  
 Section 4.3 Other Remedies. 
  
 If
an Event of Default with respect to Outstanding Debentures occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of or interest on the Debentures or to enforce the
performance of any provision of the Debentures. 
  
 The Trustee
may maintain a proceeding in which it may prosecute and enforce all rights of action and claims under this Indenture or the Debentures, even if it does not possess any of the Debentures or does not produce any of them in the proceeding. 

 

 26 

 Section 4.4 Waiver of Past Defaults. 
  
 The Holders, either (a) through the written consent of not less than a majority in aggregate principal amount of the
Outstanding Debentures, or (b) by the adoption of a resolution, at a meeting of Holders of the Outstanding Debentures at which a quorum (as prescribed in Section 8.4) is present, by the Holders of at least a majority in aggregate principal
amount of the Outstanding Debentures represented at such meeting, may, on behalf of the Holders of all of the Debentures, waive an existing Default or Event of Default, except a Default or Event of Default: 
  
 (1) in the payment of the principal of or premium, if any,
or interest on any Debenture (provided, however, that subject to Section 4.7 hereof, the Holders of a majority in aggregate principal amount of the Outstanding Debentures may rescind an acceleration and its consequences, including any related
payment default that resulted from such acceleration); or 
  
 (2) in respect of a covenant or provision hereof which, under Section 7.2 hereof, cannot be modified or amended without the consent of the Holders of each Outstanding Debenture 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; provided, however, that no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon. 
  
 Section 4.5
Control by Majority. 
  
 The Holders of a majority in aggregate
principal amount of the Outstanding Debentures (or such lesser amount as shall have acted at a meeting pursuant to the provisions of this Indenture) 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. However, the Trustee may refuse to follow any direction that: 
  
 (1) conflicts with any law or with this Indenture; 
  
 (2) the Trustee determines may be unduly prejudicial to the rights of the Holders not joining therein, or

  
 (3) may expose the Trustee to personal
liability. The Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 
  
 Section 4.6 Limitation on Suit. 
  
 No Holder of any Debenture shall have any right to pursue any remedy with respect to this Indenture or the Debentures (including, instituting any
proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a receiver or trustee) unless: 
  
 (1) such Holder has previously given written notice to the Trustee of an Event of Default that is continuing; 
  

 27 

 (2) the Holders of at least 25% in aggregate principal amount of the Outstanding
Debentures shall have made a written request to the Trustee to pursue the remedy; 
  
 (3) such Holder or Holders have offered to the Trustee indemnity satisfactory to it against any costs, expenses and liabilities incurred
in complying with such request; 
  
 (4) the
Trustee has failed to comply with the request for 60 days after its receipt of such notice, request and offer of indemnity; and 
  
 (5) during such 60-day period, no direction inconsistent with such written request has been given to the Trustee by the Holders of a
majority in aggregate principal amount of the Outstanding Debentures (or such amount as shall have acted at a meeting pursuant to the provisions of this Indenture); 
  
 provided, however, that no one or more of such Holders may use this Indenture to prejudice the rights of another Holder or to
obtain preference or priority over another Holder. 
  
 Section 4.7
Unconditional Rights of Holders to Receive Payment and to Convert. 
  
 Notwithstanding any other provision in this Indenture, the Holder of any Debenture shall have the right, which is absolute and unconditional, to receive payment of the principal of and premium, if any, and interest on such Debenture on the
Stated Maturity expressed in such Debenture (or in the case of the exercise of a Repurchase Right, on the Repurchase Date) and to convert such Debenture in accordance with Article 12, and to bring suit for the enforcement of any such payment on or
after such respective dates and right to convert, and such rights shall not be impaired or affected without the consent of such Holder. 
  
 Section 4.8 Collection of Indebtedness and Suits for Enforcement by the Trustee. 
  
 The Company covenants that if: 
  
 (1) a Default or Event of Default is made in the payment of any interest on any Debenture when such interest becomes due and payable and
such Default or Event of Default continues for a period of 30 days, or 
  
 (2) a Default or Event of Default is made in the payment of the principal of or premium, if any, on any Debenture at the Maturity thereof, 
  
 the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Debentures, the whole amount then due and
payable (as expressed therein or as a result of any acceleration effected pursuant to Section 4.2 hereof) on such Debentures for principal and premium, if any, and interest and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal and premium, if any, and on any overdue interest, calculated using the Interest Rate, 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. 
  

 28 

 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the moneys adjudged
or decreed to be payable in the manner provided by law out of the property of the Company, wherever situated. 
  
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders
of Debentures 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 4.9 Trustee May File Proofs of Claim. 
  
 In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or the property of the Company or its creditors, the Trustee
(irrespective of whether the principal of the Debentures shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue
principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, 
  
 (1) to file and prove a claim for the whole amount of principal and premium, if any, and interest owing and unpaid in respect of the
Debentures and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the Holders of Debentures allowed in such judicial proceeding, and 
  
 (2) to collect and receive any moneys or other property payable or deliverable on any such claim and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceedings is hereby authorized by each Holder of Debentures 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 of Debentures, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any other
amounts due the Trustee under Section 5.8. 
  
 Nothing
contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept, or adopt on behalf of any Holder of a Debenture, any plan of reorganization, arrangement, adjustment or composition affecting the Debentures or the
rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder of a Debenture in any such proceeding. 
  

 29 

 Section 4.10 Restoration of Rights and Remedies. 
  
 If the Trustee or any Holder of a Debenture 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 of Debentures 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 4.11 Rights
and Remedies Cumulative. 
  
 Except as otherwise provided with
respect to the replacement or payment of mutilated, destroyed, lost or stolen Debentures in the last paragraph of Section 2.12, no right or remedy conferred in this Indenture upon or reserved to the Trustee or to the Holders of Debentures is
intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or 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 4.12 Delay or Omission Not Waiver. 
  
 No delay or omission of the Trustee or of any Holder of any Debenture 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 any acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders of Debentures may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders of Debentures, as the case may be. 
  
 Section 4.13 Application of Money Collected. 
  
 Subject to Article 13, 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 premium, if any, or interest, upon presentation of the Debentures 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; 
  
 SECOND: To the
payment of the amounts then due and unpaid for principal of and premium, if any, and interest on the Debentures 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 Debentures for principal and premium, if any, and interest, respectively; and 
  
 THIRD: Any remaining amounts shall be repaid to the Company. 
  

 30 

 Section 4.14 Undertaking for Costs. 
  
 All parties to this Indenture agree, and each Holder of any Debenture by such Holder’s acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, 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, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 4.14 shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in aggregate principal amount of the Outstanding Debentures, or to any suit instituted by any Holder of any Debenture for the enforcement of the payment of the
principal of or premium, if any, or interest on any Debenture on or after the Stated Maturity expressed in such Debenture or for the enforcement of the right to convert any Debenture in accordance with Article 12. 
  
 Section 4.15 Waiver of Stay or Extension Laws. 
  
 The Company covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead, or in any manner whatsoever claim to take the benefit or advantage of, any 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 5 
  
 THE TRUSTEE 
  
 Section 5.1 Certain Duties and
Responsibilities. 
  
 (a) Except during the
continuance of an Event of Default, 
  
 (1) The
Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture or the TIA, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (2) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; provided, however,
that in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates or opinions to determine whether or not, on their 

  

 31 

 
face, they conform to the requirements to this Indenture (but need not investigate or confirm the accuracy of any facts stated therein). 
  
 (b) In case an Event of Default actually known to a
Responsible Officer of the Trustee has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that: 
  
 (1) This paragraph (c) shall not be construed to limit the effect of paragraph (a) of this Section 5.1; 
  
 (2) The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (3) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with a direction received by it of the Holders of a majority in principal amount of the
Outstanding Debentures (or such lesser amount as shall have acted at a meeting pursuant to the provisions of this Indenture) relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture. 
  
 (d) Whether or not herein 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 5.1. 
  
 (e) No provision of
this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers. The Trustee may refuse to perform any
duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability, cost or expense (including, without limitation, reasonable fees of counsel). 
  
 (f) The Trustee shall not be obligated to pay interest on
any money or other assets received by it unless otherwise agreed in writing with the Company. Assets held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
  
 (g) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon, 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 

  

 32 

 
make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or
attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation. 
  
 (h) The Trustee shall not be deemed to have notice or actual knowledge of any Event of Default unless a Responsible Officer of the Trustee
has actual knowledge thereof or unless written notice of any event which is in fact a Default is received by the Trustee pursuant to Section 14.2 hereof and such notice references the Debentures and this Indenture. 
  
 (i) The rights, privileges, protections, immunities and
benefits given to the Trustee hereunder, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each Paying Agent, authenticating agent,
Conversion Agent or Registrar acting hereunder. 
  
 Section 5.2
Certain Rights of Trustee. 
  
 Subject to the provisions of
Section 5.1 hereof and subject to Sections 315(a) through (d) of the TIA: 
  
 (1) The Trustee may rely on any document believed by it to be genuine and to have been signed or presented by the proper person. The
Trustee need not investigate any fact or matter stated in the document. 
  
 (2) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel, or both. The Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on the Officer’s Certificate or Opinion of Counsel 
  
 (3) The Trustee may act through attorneys and agents and shall not be responsible for the misconduct or negligence of any attorney or agent appointed with due care. 
  
 (4) The Trustee shall not be liable for any action taken or
omitted to be taken by it in good faith which it believed to be authorized or within the discretion or rights or powers conferred upon it by this Indenture, unless the Trustee’s conduct constitutes negligence. 
  
 (5) The Trustee may consult with counsel of its selection
and the advice of such counsel as to matters of law shall be full and complete authorization and protection in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such
counsel. 
  
 (6) Unless otherwise specifically
provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the Company. 
  

 33 

 (7) The permissive rights of the Trustee to do things enumerated in this Indenture shall
not be construed as a duty unless so specified herein. 
  
 Section
5.3 Individual Rights of Trustee. 
  
 The Trustee in its
individual or any other capacity may become the owner or pledgee of Debentures and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee
acquires any conflicting interest (as such term is defined in Section 310(b) of the TIA), it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee (to the extent permitted under Section 310(b)
of the TIA) or resign. Any agent may do the same with like rights and duties. The Trustee is also subject to Sections 5.11 and 5.12 hereof. 
  
 Section 5.4 Money Held in Trust. 
  
 Money held by the Trustee in trust hereunder shall be segregated from other funds. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise expressly agreed with the Company. 
  
 Section 5.5 Trustee’s Disclaimer. 
  
 The recitals contained herein and in the Debentures (except for those in the certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes
no representations as to the validity, sufficiency or priority of this Indenture or of the Debentures. The Trustee shall not be accountable for the use or application by the Company of Debentures or the proceeds thereof. 
  
 Section 5.6 Notice of Defaults. 
  
 Within 90 days after the occurrence of any Default or Event of Default
hereunder of which the Trustee has received written notice, the Trustee shall give notice to Holders pursuant to Section 14.2 hereof, unless such Default or Event of Default shall have been cured or waived; provided, however,
that, except in the case of a Default or Event of Default in the payment of the principal of or premium, if any, or interest, or in the payment of any repurchase obligation on any Debenture, the Trustee shall be protected in withholding such notice
if and so long as Responsible Officers of the Trustee, in good faith, determine that the withholding of such notice is in the interest of the Holders. 
  
 Section 5.7 Reports by Trustee to Holders. 
  
 The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required by Section 313 of
the TIA at the times and in the manner provided by the TIA. A copy of each report at the time of its mailing to Holders shall be filed with the SEC, if required, and each stock exchange, if any, on which the Debentures are listed. The Company shall
promptly notify the Trustee when the Debentures become listed on any stock exchange. 
  

 34 

 Section 5.8 Compensation and Indemnification. 
  
 The Company covenants and agrees to pay to the Trustee from time to time, and
the Trustee shall be entitled to, reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) and the Company covenants and agrees to pay or reimburse the Trustee upon
its request for all reasonable expenses, disbursements and advances incurred or made by or on behalf of it in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its
counsel and of all agents and other persons not regularly in its employ), except to the extent that any such expense, disbursement or advance is due to its negligence or bad faith. When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 4.1 hereof, the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any
bankruptcy law. The Company also covenants to indemnify the Trustee and its officers, directors, employees and agents for, and to hold such Persons harmless against, any loss, liability or expense incurred by them, arising out of or in connection
with the acceptance or administration of this Indenture or the trusts hereunder or the performance of their duties hereunder, including the costs and expenses of defending themselves against or investigating any claim of liability in the premises,
except to the extent that any such loss, liability or expense was due to the negligence or willful misconduct of such Persons. The obligations of the Company under this Section 5.8 to compensate and indemnify the Trustee and its officers,
directors, employees and agents and to pay or reimburse such Persons for expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture or the earlier
resignation or removal of the Trustee. Such additional indebtedness shall be a senior claim to that of the Debentures upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of
particular Debentures, and the Debentures are hereby subordinated to such senior claim. “Trustee” for purposes of this Section 5.8 shall include any predecessor Trustee, but the negligence or willful misconduct of any Trustee shall
not affect the indemnification of any other Trustee. 
  
 Section
5.9 Replacement of Trustee. 
  
 A resignation or removal of the
Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 5.9. 
  
 The Trustee may resign and be discharged from the trust hereby created by so notifying the Company in writing. The Holders
of at least a majority in aggregate principal amount of Outstanding Debentures may remove the Trustee by so notifying the Trustee and the Company in writing. The Company must remove the Trustee if: 
  
 (i) the Trustee fails to comply with Section 5.11
hereof or Section 310 of the TIA; 
  
 (ii)
the Trustee becomes incapable of acting; 
  

 35 

 (iii) the Trustee is adjudged a bankrupt or insolvent or an order for relief is entered
with respect to the Trustee under any Bankruptcy Law; or 
  
 (iv) a Custodian or public officer takes charge of the Trustee or its property. 
  
 If the Trustee resigns or is removed or if a vacancy exists in the office of the Trustee for any reason, the Company shall promptly appoint a successor
Trustee. The Trustee shall be entitled to payment of its fees and reimbursement of its expenses while acting as Trustee. Within one year after the successor Trustee takes office, the Holders of at least a majority in aggregate principal amount of
Outstanding Debentures may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 
  
 Any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee if the Trustee fails
to comply with Section 5.11 hereof. 
  
 If an instrument of
acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation or removal, the resigning or removed Trustee, as the case may be, may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The Company shall mail a notice of the successor Trustee’s succession to the Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee. Notwithstanding replacement of the Trustee pursuant to this Section 5.9, the Company’s obligations under Section 5.8 hereof shall continue for the benefit of the retiring Trustee with
respect to expenses, losses and liabilities incurred by it prior to such replacement. 
  
 Section 5.10 Successor Trustee by Merger, Etc. 
  
 Subject to Section 5.11 hereof, if the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation or national banking
association, the successor entity without any further act shall be the successor Trustee as to the Debentures. 
  
 Section 5.11 Corporate Trustee Required; Eligibility. 
  
 The Trustee shall at all times satisfy the requirements of Sections 310(a)(1), (2) and (5) of the TIA. The Trustee shall at all times have (or,
in the case of a corporation included in a bank holding company system, the related bank holding company shall at all times have), a combined capital and surplus of at least $100 million as set forth in its (or its related bank holding
company’s) most recent published annual report of condition. The Trustee is subject to Section 310(b) of the TIA. 
  

 36 

 Section 5.12 Collection of Claims Against the Company. 
  
 The Trustee is subject to Section 311(a) of the TIA, excluding any
creditor relationship listed in Section 311(b) of the TIA. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the TIA to the extent indicated therein. 
  
 ARTICLE 6 
  
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
  
 Section 6.1 Company May Consolidate, Etc., Only on Certain Terms. 
  
 The Company shall not consolidate with, merge with or into, or sell, convey,
transfer, lease or otherwise dispose of all or substantially all of its property and assets (as an entirety or substantially an entirety in one transaction or a series of related transactions) to, any Person or permit any Person to merge with or
into the Company, unless: 
  
 (1) either
(A) the Company shall be the continuing Person, or (B) the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer, or which leases, the
properties and assets of the Company substantially as an entirety (i) shall be a corporation, and validly existing under the laws of the United States of America or any jurisdiction thereof and (ii) shall expressly assume, by a
supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all the Company’s obligation for the due and punctual payment of the principal of (and premium, if any) and interest on all Debentures and the
performance and observance of every covenant of the Indenture on the part of the Company to be performed or observed and shall have provided for conversion rights in accordance with Section 12.11 hereof; 
  
 (2) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing; and 
  
 (3) the Company or such Person shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, such supplemental indenture complies with this Article and that all conditions precedent provided for herein relating to such transaction have been complied with. 
  
 Section 6.2 Successor Corporation Substituted. 
  
 Upon any consolidation of the Company with or merger of the Company with or
into any other Corporation or any conveyance, transfer or lease of the properties and assets of the Company substantially as an entirety to any Person in accordance with Section 6.1, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such 

  

 37 

 
successor Person had been named as the Company herein, and in the event of any such conveyance or transfer, the Company (which term shall for this purpose
mean the Person named as the “Company” in the first paragraph of this Indenture or any successor Person which shall theretofore become such in the manner described in Section 6.1), except in the case of a lease to another Person,
shall be discharged of all obligations and covenants under this Indenture and the Debentures and may be dissolved and liquidated. 
  
 ARTICLE 7 
  
 AMENDMENTS, SUPPLEMENTS AND WAIVERS 
  
 Section 7.1 Without Consent of Holders of Debentures. 
  
 Without the consent of any Holders of Debentures, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may amend this Indenture and the Debentures to: 
  
 (a) add to the covenants of the Company for the benefit of
the Holders of Debentures; 
  
 (b) surrender any
right or power herein conferred upon the Company; 
  
 (c) make provision with respect to the Conversion rights of Holders of Debentures pursuant to Section 12.11 hereof; 
  
 (d) provide for the assumption of the Company’s obligations to the Holders of Debentures in the case of a merger, consolidation,
conveyance, transfer or lease pursuant to Article 6 hereof; 
  
 (e) reduce the Conversion Price; provided that such reduction in the Conversion Price shall not adversely affect the interest of the Holders of Debentures in any material respect; 
  
 (f) comply with the requirements of the SEC in order to
effect or maintain the qualification of this Indenture under the TIA; 
  
 (g) cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise defective, or to make any other provisions with respect to matters
or questions arising under this Indenture which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with the provisions of this Indenture; provided that such action pursuant to this clause
(g) does not, in the good faith opinion of the Board of Directors and the Trustee, adversely affect the interests of the Holders of Debentures in any material respect; or 
  
 (h) add or modify any other provisions with respect to matters or questions arising under this Indenture
which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with the provisions of this Indenture; provided that 

  

 38 

 
such action pursuant to this clause (h) does not adversely affect the interests of the Holders of Debentures in any material respect. 
  
 Section 7.2 With Consent of Holders of Debentures. 
  
 Except as provided below in this Section 7.2, this Indenture or the
Debentures may be amended, modified or supplemented, and noncompliance in any particular instance with any provision of this Indenture or the Debentures may be waived, in each case (i) with the written consent of the Holders of at least a
majority in aggregate principal amount of the Outstanding Debentures or (ii) by the adoption of a resolution, at a meeting of Holders of the Outstanding Debentures at which a quorum is present, by the Holders of a majority in aggregate
principal amount of the Outstanding Debentures represented at such meeting. 
  
 Without the written consent or the affirmative vote of each Holder of Debentures so affected, an amendment, modification or waiver under this Section 7.2 may not: 
  
 (a) change the Stated Maturity of the principal of, or any
installment of interest on, any Debenture; 
  
 (b) reduce the principal amount of, or premium, if any, on any Debenture; 
  
 (c) reduce the interest on any Debenture; 
  
 (d) change the currency of payment of principal of, premium, if any, or interest on any Debenture; 
  
 (e) impair the right of any Holder to institute suit for the
enforcement of any payment in or with respect to any Debenture; 
  
 (f) modify the obligation of the Company to maintain an office or agency in The City of New York pursuant to Section 9.2 hereof; 
  
 (g) except as permitted by Section 12.11 hereof, adversely affect the Repurchase Right or the right to
convert any Debenture as provided in Article 12 hereof; 
  
 (h) modify the subordination provisions of the Debentures in a manner adverse to the Holders of Debentures, 
  
 (i) modify the Auto-Conversion provisions of the Debentures in a manner adverse to the Holders of the Debentures; 
  
 (j) modify any of the provisions of this Section, or reduce
the percentage of voting interests required to waive a default, except to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Debenture affected thereby; or

  
 (k) reduce the requirements of
Section 8.4 hereof for quorum or voting, or reduce the percentage in aggregate principal amount of the Outstanding Debentures the consent 

  

 39 

 
of whose Holders is required for any such supplemental indenture or the consent of whose Holders is required for any waiver provided for in this Indenture.

  
 It shall not be necessary for any Act of Holders of Debentures
under this Section 7.2 to approve the particular form of any proposal supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 Section 7.3 Compliance with Trust Indenture Act. 
  
 Every amendment to this Indenture or the Debentures shall be set forth in a supplemental indenture that complies with the
TIA as then in effect. 
  
 Section 7.4 Revocation of Consents and
Effect of Consents or Votes. 
  
 Until an amendment, supplement or
waiver becomes effective, a written consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Debenture or portion of a Debenture that evidences the same debt as the consenting Holder’s Debenture, even if
notation of the consent is not made on any Debenture; provided, however, that unless a record date shall have been established, any such Holder or subsequent Holder may revoke the consent as to its Debenture or portion of a Debenture
if the Trustee receives written notice of revocation before the date the amendment, supplement or waiver becomes effective. 
  
 An amendment, supplement or waiver becomes effective on receipt by the Trustee of written consents from or affirmative votes by, as the case may be, the
Holders of the requisite percentage of aggregate principal amount of the Outstanding Debentures, and thereafter shall bind every Holder of Debentures; provided, however, if the amendment, supplement or waiver makes a change described
in any of the clauses (a) through (k) of Section 7.2 hereof, the amendment, supplement or waiver shall bind only each Holder of a Debenture which has consented to it or voted for it, as the case may be, and every subsequent Holder of
a Debenture or portion of a Debenture that evidences the same indebtedness as the Debenture of the consenting or affirmatively voting, as the case may be, Holder. 
  
 Section 7.5 Notation on or Exchange of Debentures. 
  
 If an amendment, supplement or waiver changes the terms of a Debenture: 
  
 (a) the Trustee may require the Holder of a Debenture to
deliver such Debentures to the Trustee, the Trustee may place an appropriate notation on the Debenture about the changed terms and return it to the Holder and the Trustee may place an appropriate notation on any Debenture thereafter authenticated;
or 
  
 (b) if the Company or the Trustee so
determines, the Company in exchange for the Debenture shall issue and the Trustee shall authenticate a new Debenture that reflects the changed terms. 
  
 Failure to make the appropriate notation or issue a new Debenture shall not affect the validity and effect of such amendment, supplement or waiver.

  

 40 

 Section 7.6 Trustee to Sign Amendment, Etc. 
  
 The Trustee shall sign any amendment authorized pursuant to this Article if the amendment does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. If the amendment does adversely affect the rights, duties, liabilities or immunities of the Trustee, the Trustee may, but need not, sign it. In signing or refusing to sign such amendment, the
Trustee shall be entitled to receive and shall be fully protected in relying upon an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that such amendment is authorized or permitted by this Indenture. 
  
 ARTICLE 8 
  
 MEETING OF HOLDERS OF DEBENTURES 
  
 Section 8.1 Purposes for Which Meetings May Be Called. 
  
 A meeting of Holders of Debentures may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by Holders of Debentures. 
  
 Section 8.2 Call Notice and Place of Meetings. 
  
 (a) The Trustee may at any time call a meeting of Holders of Debentures for any purpose specified in Section 8.1 hereof, to be held
at such time and at such place in The City of New York as the Trustee may determine. Notice of every meeting of Holders of Debentures, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such
meeting, shall be given, in the manner provided in Section 14.2 hereof, not less than 21 nor more than 180 days prior to the date fixed for the meeting. 
  

(b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at least 10% in principal amount of the
Outstanding Debentures shall have requested the Trustee to call a meeting of the Holders of Debentures for any purpose specified in Section 8.1 hereof, by written request setting forth in reasonable detail the action proposed to be taken at the
meeting, and the Trustee shall not have made the first publication of the notice of such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company or the
Holders of Debentures in the amount specified, as the case may be, may determine the time and the place in The City of New York for such meeting and may call such meeting for such purposes by giving notice thereof as provided in paragraph
(a) of this Section 8.2. 
  
 Section 8.3 Persons
Entitled to Vote at Meetings. 
  
 To be entitled to vote at any
meeting of Holders of Debentures, a Person shall be (a) a Holder of one or more Outstanding Debentures, or (b) a Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Debentures by such
Holder or Holders. The only Persons who shall be entitled to be present or to speak at any meeting of 

  

 41 

 
Holders shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives
of the Company and its counsel. 
  
 Section 8.4 Quorum; Action.

  
 The Persons entitled to vote a majority in principal amount of
the Outstanding Debentures shall constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Debentures, be dissolved. In any other case,
the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further
adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.2(a)
hereof, except that such notice need be given only once and not less than five days prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the percentage of the
principal amount of the Outstanding Debentures which shall constitute a quorum. 
  
 Subject to the foregoing, at the reconvening of any meeting adjourned for a lack of a quorum, the Persons entitled to vote 25% in principal amount of the Outstanding Debentures at the time shall constitute a quorum
for the taking of any action set forth in the notice of the original meeting. At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters (except as limited by the proviso to
Section 7.2 hereof) shall be effectively passed and decided if passed or decided by the Persons entitled to vote not less than a majority in principal amount of Outstanding Debentures represented and voting at such meeting. 
  
 Any resolution passed or decisions taken at any meeting of Holders of
Debentures duly held in accordance with this Section 8.4 shall, subject to Section 7.4, be binding on all the Holders of Debentures, whether or not present or represented at the meeting. 
  
 Section 8.5 Determination of Voting Rights; Conduct and Adjournment of
Meetings. 
  
 (a) Notwithstanding any other
provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders of Debentures in regard to proof of the holding of Debentures and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of Debentures shall be proved in the manner specified in Section 14.4 hereof and the appointment of any proxy shall be proved in the manner specified in Section 14.4
hereof. Such regulations may provide that written instruments appointing proxies, regular on their face, may be presumed valid and genuine without the proof specified in Section 14.4 hereof or other proof. 
  

 42 

 (b) The Trustee shall, by an instrument in writing, appoint a temporary chairman (which
may be the Trustee) of the meeting, unless the meeting shall have been called by the Company or by Holders of Debentures as provided in Section 8.2(b) hereof, in which case the Company or the Holders of Debentures calling the meeting, as the
case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Debentures
represented at the meeting. 
  
 (c) At any
meeting, each Holder of a Debenture or proxy shall be entitled to one vote for each $1,000 principal amount of Debentures held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of
any Debenture challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Debenture or proxy. 
  
 (d) Any meeting of Holders of Debentures duly called
pursuant to Section 8.2 hereof at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Debentures represented at the meeting, and the meeting may be held as
so adjourned without further notice. 
  
 Section 8.6 Counting
Votes and Recording Action of Meetings. 
  
 The vote upon any
resolution submitted to any meeting of Holders of Debentures shall be by written ballots on which shall be subscribed the signatures of the Holders of Debentures or of their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Debentures held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record, at least in duplicate, of the proceedings of each meeting of Holders of Debentures shall be prepared by the secretary of the meeting and
there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 8.2 hereof and, if applicable, Section 8.4 hereof. Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy
shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein
stated. 
  
 ARTICLE 9 
  
 COVENANTS 
  
 Section 9.1 Payment of Principal, Premium and Interest. 
  
 The Company will duly and punctually pay the principal of and premium, if any, and interest in respect of the Debentures in
accordance with the terms of the Debentures and this 

  

 43 

 
Indenture. The Company will deposit or cause to be deposited with the Trustee as directed by the Trustee, no later than the day prior to the Stated Maturity
of any Debenture or installment of interest, all payments so due. 
  
 Section 9.2 Maintenance of Offices or Agencies. 
  
 The
Company hereby appoints the Trustee’s Corporate Trust Office as its office in The City of New York, where Debentures may be: 
  
 (i) presented or surrendered for payment; 
  
 (ii) surrendered for registration of transfer or exchange; 
  
 (iii) surrendered for Conversion; 
  
 and where notices and demands to or upon the Company in respect of the Debentures and this Indenture maybe served. 
  
 The Company may at any time and from time to time vary or terminate the
appointment of any such office or appoint any additional offices for any or all of such purposes; provided, however, that, until all of the Debentures have been delivered to the Trustee for cancellation, or moneys sufficient to pay the
principal of and premium, if any, and interest on the Debentures have been made available for payment and either paid or returned to the Company pursuant to the provisions of Section 4.13 hereof, the Company will maintain in The City of New
York, an office or agency where Debentures may be presented or surrendered for payment, where Debentures may be surrendered for registration of transfer or exchange, where Debentures may be surrendered for Conversion and where notices and demands to
or upon the Company in respect of the Debentures and this Indenture may be served. The Company will give prompt written notice to the Trustee, and notice to the Holders in accordance with Section 14.2 hereof, of the appointment or termination
of any such agents and of the location and any change in the location of any such office or agency. 
  
 If at any time the Company shall fail to maintain any such required office or agency in The City of New York, or shall fail to furnish the Trustee with
the address thereof, presentations and surrenders may be made at, and notices and demands may be served on, the Corporate Trust Office of the Trustee. 
  
 Section 9.3 Corporate Existence. 
  
 Subject to Article 6 hereof, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate
existence, rights (charter and statutory) and franchises of the Company and each Subsidiary; provided, however, that the Company shall not be required to preserve any such right or franchise if the Board of Directors shall determine
that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries as a whole and that the loss thereof is not disadvantageous in any material respect to the Holders. 
  

 44 

 Section 9.4 Maintenance of Properties. 
  
 The Company will cause all properties owned by the Company or any Subsidiary or used or held for use in the conduct of its
business or the business of any Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this
Section 9.4 shall prevent the Company from discontinuing the maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the business of any Subsidiary and not
disadvantageous in any material respect to the Holders. 
  
 Section 9.5 Payment of Taxes and Other Claims. 
  
 The
Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (a) all taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary and (b) all lawful claims for labor, materials and supplies, which, if unpaid, might by law become a lien upon the property of the Company or any Subsidiary; provided, however, that the
Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings. 
  
 Section 9.6 Reports. 
  
 The Company shall deliver to the Trustee within 15 days after it files them
with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the SEC. The
Company also shall comply with the other provisions of Section 314(a) of the TIA. 
  
 Section 9.7 Compliance Certificate. 
  
 The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of the Company, an Officer’s Certificate signed by two Officers of the Company stating that in the course of the performance by the signers of
their duties as Officers of the Company, they would normally have knowledge of any failure by the Company to comply with all conditions, or Default by the Company with respect to any covenants, under this Indenture, and further stating whether or
not they have knowledge of any such failure or default and, if so, specifying each such failure or Default and the nature thereof. In the event an Officer of the Company comes to have actual knowledge of a Default, regardless of the date, the
Company shall deliver an Officer’s Certificate to the Trustee within five Business Days of obtaining such actual knowledge specifying such Default and the nature and status thereof. 
  

 45 

 Section 9.8 [Intentionally Omitted]. 
  
 Section 9.9 Insurance. 
  
 The Company will at all times keep all of its and its Subsidiaries properties which are of an insurable nature insured with insurers, believed by the
Company to be responsible, against loss or damage to the extent that property of similar character is usually so insured by corporations similarly situated and owning like properties. 
  
 ARTICLE 10 
  
 [INTENTIONALLY OMITTED] 
  
 ARTICLE 11 
  
 REPURCHASE AT THE OPTION OF A HOLDER UPON A CHANGE OF CONTROL 
  
 Section 11.1 Repurchase Right. 
  
 In the event that a Change of Control shall occur, each Holder shall have the right (the “Repurchase Right”), at the Holder’s option, but
subject to the provisions of Section 11.2 hereof, to require the Company to repurchase, and upon the exercise of such right the Company shall repurchase, all of such Holder’s Debentures, or any portion of the principal amount thereof that
is equal to $1,000 or an integral multiple thereof (provided that no single Debenture may be repurchased in part unless the portion of the principal amount of such Debenture to be Outstanding after such repurchase is equal to $1,000 or an integral
multiple thereof), on the date (the “Repurchase Date”) that is a Business Day no earlier than 30 days nor later than 60 days after the date of the Company Notice at a purchase price equal to 100% of the principal amount of the Debentures
to be repurchased (the “Repurchase Price”), plus interest accrued and unpaid to, but excluding, the Repurchase Date; provided, however, that (i) installments of interest on Debentures whose Stated Maturity is prior to or
on the Repurchase Date shall be payable to the Holders of such Debentures, or one or more Predecessor Debentures, registered as such on the relevant Record Date according to their terms and the provisions of Section 2.1 hereof and (ii) no
Holder shall have a Repurchase Right upon a Change of Control unless prior to any payment of the Repurchase Price on the Repurchase Date the Company has made any applicable change of control offers required by the Company’s Senior Debt and has
purchased all Senior Debt validly tendered for payment in connection with such change of control offers. 
  
 Subject to the fulfillment by the Company of the conditions set forth in Section 11.2 hereof, the Company may elect to pay the Repurchase Price by
delivering the number of shares of Common Stock equal to (i) the Repurchase Price divided by (ii) 95% of the average of the Closing Prices per share of Common Stock for the five consecutive Trading Days immediately preceding and including
the third Trading Day prior to the Repurchase Date. 
  

 46 

 Section 11.2 Conditions to the Company’s Election to Pay the Repurchase Price in Common Stock.

  
 (a) The shares of Common Stock to be issued
upon repurchase of Debentures hereunder: 
  
 (i)
shall not require registration under any federal securities law before such shares may be freely transferable without being subject to any transfer restrictions under the Securities Act upon repurchase or, if such registration is required, such
registration shall be completed and shall become effective prior to the Repurchase Date; and 
  
 (ii) shall not require registration with, or approval of, any governmental authority under any state law or any other federal law before
shares may be validly issued or delivered upon repurchase or if such registration is required or such approval must be obtained, such registration shall be completed or such approval shall be obtained prior to the Repurchase Date. 
  
 (b) The shares of Common Stock to be listed upon repurchase
of Debentures hereunder are, or shall have been, approved for listing on the Nasdaq National Market or the New York Stock Exchange or listed on another national securities exchange, in any case, prior to the Repurchase Date. 
  
 (c) All shares of Common Stock which may be issued upon
repurchase of Debentures will be issued out of the Company’s authorized but unissued Common Stock and will, upon issue, be duly and validly issued and fully paid and nonassessable and free of any preemptive or similar rights. 
  
 (d) If any of the conditions set forth in clauses
(a) through (c) of this Section 11.2 are not satisfied in accordance with the terms thereof, the Repurchase Price shall be paid by the Company only in cash. 
  
 Section 11.3 Notices; Method of Exercising Repurchase Right, Etc. 
  
 (a) Prior to or on the 30th day after the occurrence of a
Change of Control, the Company, or, at the written request and expense of the Company prior to or on the 30th day after such occurrence, the Trustee, shall give to all Holders of Debentures notice, in the manner provided in Section 14.2 hereof,
of the occurrence of the Change of Control and of the Repurchase Right set forth herein arising as a result thereof (the “Company Notice”). The Company shall also deliver a copy of such notice of a Repurchase Right to the Trustee. Each
notice of a Repurchase Right shall state: 
  
 (1)
the Repurchase Date; 
  
 (2) the date by which
the Repurchase Right must be exercised; 
  

 47 

 (3) the Repurchase Price and accrued and unpaid interest, if any, and whether the
Repurchase Price shall be paid by the Company in cash or by delivery of shares of Common Stock; 
  
 (4) a description of the procedure which a Holder must follow to exercise a Repurchase Right, and the place or places where such
Debentures are to be surrendered for payment of the Repurchase Price and accrued and unpaid interest; 
  
 (5) that on the Repurchase Date the Repurchase Price and accrued and unpaid interest will become due and payable upon each such Debenture
designated by the Holder to be repurchased, and that interest thereon shall cease to accrue on and after said date; 
  
 (6) the Conversion Price then in effect (and whether such Conversion Price is a Make-Whole Conversion Price resulting from the Change of
Control giving rise to such notice), the date on which the right to convert the principal amount of the Debentures to be repurchased will terminate and the place where such Debentures may be surrendered for Conversion; 
  
 (7) if applicable, that no Holder shall have a Repurchase
Right upon a Change of Control unless prior to any payment of the Repurchase Price on the Repurchase Date the Company has made any applicable change of control offers required by the Company’s Senior Debt and has purchased all Senior Debt
validly tendered for payment in connection with such change of control offers; 
  
 (8) the place or places where such Debentures, together with the Option to Elect Repayment Upon a Change of Control certificate included
in Exhibit A annexed hereto are to be delivered for payment of the Repurchase Price and accrued and unpaid interest, if any; and 
  
 (9) whether such notice constitutes a Non-Stock Change of Control Notice. 
  
 No failure of the Company to give the foregoing notices or defect therein shall limit any Holder’s right to exercise a
Repurchase Right or affect the validity of the proceedings for the repurchase of Debentures. 
  
 If any of the foregoing provisions or other provisions of this Article 11 are inconsistent with applicable law, such law shall govern. 
  
 (b) To exercise a Repurchase Right, a Holder shall deliver to the Trustee prior to the close of business on
the third Business Day immediately preceding the Repurchase Date: 
  
 (1) written notice of the Holder’s exercise of such right, which notice shall set forth the name of the Holder, the principal amount of the Debentures to be repurchased (and, if any Debenture is to be repurchased
in part, the serial number thereof, the portion of the principal amount thereof to be repurchased) and a statement that an election to exercise the Repurchase Right is being made thereby, and, in the event that the Repurchase Price shall be paid in
shares of Common Stock, the name or names (with addresses) in which the certificate or certificates for shares of Common Stock shall be issued, and 
  

 48 

 (2) the Debentures with respect to which the Repurchase Right is being exercised.

  
 Such written notice shall be irrevocable if not withdrawn prior to the close
of business on the third Business Day prior to the Repurchase Date by delivery to the Trustee of a notice of withdrawal, except that the right of the Holder to convert the Debentures with respect to which the Repurchase Right is being exercised
shall continue until the close of business on the Business Day immediately preceding the Repurchase Date. The Company shall not pay accrued and unpaid interest on any such Debentures so converted. 
  
 (c) In the event a Repurchase Right shall be exercised in
accordance with the terms hereof, the Company shall pay or cause to be paid to the Trustee the Repurchase Price in cash or shares of Common Stock, as provided above, for payment to the Holder on the Repurchase Date or, if shares of Common Stock are
to be paid, as promptly after the Repurchase Date as practicable and accrued and unpaid interest to the Repurchase Date payable in cash with respect to the Debentures as to which the Repurchase Right has been exercised; provided,
however, that installments of interest that mature prior to or on the Repurchase Date shall be payable in cash to the Holders of such Debentures, or one or more Predecessor Debentures, registered as such at the close of business on the
relevant Regular Record Date. 
  
 (d) If any
Debenture (or portion thereof) surrendered for repurchase shall not be so paid on the Repurchase Date, the principal amount of such Debenture (or portion thereof, as the case may be) shall, until paid, bear interest to the extent permitted by
applicable law from the Repurchase Date at the Interest Rate, and each Debenture shall remain convertible into Common Stock until the principal of such Debenture (or portion thereof, as the case may be) shall have been paid or duly provided for.

  
 (e) Any Debenture which is to be repurchased
only in part shall be surrendered to the Trustee (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and make available for delivery to the Holder of such Debenture without service charge, a new Debenture or Debentures, containing identical terms
and conditions, each in an authorized denomination in aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal of the Debenture so surrendered. 
  
 (f) Any issuance of shares of Common Stock in respect of the Repurchase Price shall be deemed to have been
effected immediately prior to the close of business on the Repurchase Date and the Person or Persons in whose name or names any certificate or certificates for shares of Common Stock shall be issuable upon such repurchase shall be deemed to have
become on the Repurchase Date the holder or holders of record of the shares represented thereby; provided, however, that any surrender for repurchase on a date when the stock transfer books of the Company shall be closed shall
constitute the Person or Persons in whose name or names the certificate or certificates for such shares are to be issued as the record holder or holders thereof for all purposes at the opening of business on the next succeeding day on which such
stock transfer books are open. No payment or adjustment shall be made for dividends or 

  

 49 

 
distributions on any Common Stock issued upon repurchase of any Debenture declared prior to the Repurchase Date. 
  
 (g) No fractions of shares of Common Stock shall be issued
upon repurchase of any Debenture or Debentures. If more than one Debenture shall be repurchased from the same Holder and the Repurchase Price shall be payable in shares of Common Stock, the number of full shares which shall be issued upon such
repurchase shall be computed on the basis of the aggregate principal amount of the Debentures (or specified portions thereof) to be so repurchased. Instead of any fractional share of Common Stock which would otherwise be issued on the repurchase of
any Debenture or Debentures (or specified portions thereof), the Company shall pay a cash adjustment in respect of such fraction (calculated to the nearest one-100th of a share) in an amount equal to the same fraction of the Quoted Price of the
Common Stock as of the Trading Day preceding the Repurchase Date. 
  
 (h) Any issuance and delivery of certificates for shares of Common Stock on repurchase of Debentures shall be made without charge to the Holder of Debentures being repurchased for such certificates or for any tax or
duty in respect of the issuance or delivery of such certificates or the Debentures represented thereby; provided, however, that the Company shall not be required to pay any tax or duty which may be payable in respect of (i) income
of the Holder or (ii) any transfer involved in the issuance or delivery of certificates for shares of Common Stock in a name other than that of the Holder of the Debentures being repurchased, and no such issuance or delivery shall be made
unless the Persons requesting such issuance or delivery has paid to the Company the amount of any such tax or duty or has established, to the satisfaction of the Company, that such tax or duty has been paid. 
  
 (i) All Debentures delivered for repurchase shall be
delivered to the Trustee to be canceled at the direction of the Trustee, which shall dispose of the same as provided in Section 2.15 hereof. 
  
 ARTICLE 12 
  
 CONVERSION OF DEBENTURES 
  
 Section 12.1 Conversion Right and Conversion Price. 
  
 Subject to and upon compliance with the provisions of this Article, at the option of the Holder thereof, any Outstanding Debenture or any portion of the principal amount thereof which is $1,000 or an integral multiple
of $1,000 may be converted into duly authorized, fully paid and nonassessable shares of Common Stock, at the Conversion Price, determined as hereinafter provided, in effect at the time of Conversion. Such Conversion right shall expire at the close
of business on August 15, 2009. 
  
 In the case of a Change
of Control for which the Holder exercises its Repurchase Right with respect to a Debenture or portion thereof, such Conversion right in respect of the Debenture or portion thereof shall expire at the close of business on the Business Day immediately
preceding the Repurchase Date. 
  

 50 

 The price at which shares of Common Stock shall be delivered upon Conversion (the “Conversion
Price”) shall be initially equal to $1.1870 per share of Common Stock. The Conversion Price shall be adjusted in certain instances as provided in Section 12.4 hereof. 
  
 Section 12.2 Exercise of Conversion Right. 
  
 To exercise the Conversion right, the Holder of any Debenture to be converted shall surrender such Debenture duly endorsed
or assigned to the Company or in blank, at the office of any Conversion Agent, accompanied by a duly signed Conversion notice substantially in the form attached to the Debenture to the Company stating that the Holder elects to convert such Debenture
or, if less than the entire principal amount thereof is to be converted, the portion thereof to be converted. 
  
 To the extent provided in Section 2.1, Debentures surrendered for Conversion during the period from the close of business on any Regular Record Date
to the opening of business on the next succeeding Interest Payment Date (except in the case of any Debenture whose Maturity is prior to such Interest Payment Date) shall be accompanied by payment in New York Clearing House funds or other funds
acceptable to the Company of an amount equal to the interest to be received on such Interest Payment Date on the principal amount of Debentures being surrendered for Conversion. 
  
 Debentures shall be deemed to have been converted immediately prior to the close of business on the day of surrender of such
Debentures for Conversion in accordance with the foregoing provision, and at such time the rights of the Holders of such Debentures as Holders shall cease, and the Person or Persons entitled to receive the Common Stock issuable upon Conversion shall
be treated for all purposes as the record holder or holders of such Common Stock at such time. As promptly as practicable on or after the Conversion Date, the Company shall cause to be issued and delivered to such Conversion Agent a certificate or
certificates for the number of full shares of Common Stock issuable upon Conversion, together with payment in lieu of any fraction of a share as provided in Section 12.3 hereof. 
  
 In the case of any Debenture which is converted in part only, upon such Conversion the Company shall execute and the Trustee
shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new Debenture or Debentures of authorized denominations in aggregate principal amount equal to the unconverted portion of the principal amount of such Debentures.

  
 The Company hereby initially appoints the Trustee as the
Conversion Agent. 
  
 Section 12.3 Fractions of Shares.

  
 No fractional shares of Common Stock shall be issued upon
Conversion of any Debenture or Debentures. If more than one Debenture shall be surrendered for Conversion at one time by the same Holder, the number of full shares which shall be issued upon Conversion 

  

 51 

 
thereof shall be computed on the basis of the aggregate principal amount of the Debentures (or specified portions thereof) so surrendered. Instead of any
fractional share of Common Stock which would otherwise be issued upon Conversion of any Debenture or Debentures (or specified portions thereof), the Company shall pay a cash adjustment in respect of such fraction (calculated to the nearest one-100th
of a share) in an amount equal to the same fraction of the Closing Price of the Common Stock as of the Trading Day preceding the Conversion Date. 
  
 Section 12.4 Adjustment of Conversion Price. 
  
 The Conversion Price shall be subject to adjustments, calculated by the Company, from time to time as follows: 
  
 (a) In case the Company shall hereafter 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: 
  
 (i) the numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the Record Date (as
defined in Section 12.4(g)) fixed for such determination, and 
  
 (ii) the denominator of which shall be the sum of such number of shares and the total number of shares constituting such dividend or other distribution. 
  
 Such reduction shall 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 12.4(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) In case the outstanding shares
of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Price in effect at the opening of business on the day following the day upon which such subdivision becomes effective 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 day following the day upon which such combination
becomes effective shall be proportionately increased, such reduction or increase, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes
effective. 
  
 (c) In case the Company shall
issue rights or warrants (other than any rights or warrants referred to in Section 12.4(d)) to all holders of its outstanding shares of Common Stock entitling them to subscribe for or purchase shares of Common Stock (or securities convertible
into Common Stock) at a price per share (or having a Conversion price per share) less than the Current Market Price (as defined in Section 12.4(g)) on the Record Date fixed for 

  

 52 

 
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: 
  
 (i) the numerator of which 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 for subscription or purchase (or the aggregate Conversion price of the convertible securities so offered) would purchase at such Current Market Price, and

  
 (ii) the denominator of which 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 (or into which the convertible securities so offered are
convertible). 
  
 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 (or securities convertible into 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 the delivery of only the number of shares of Common Stock (or securities convertible into 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 stockholders entitled to receive such rights or warrants had not been fixed. In determining whether any rights or
warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than such 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. 
  
 (d) In case the Company shall, 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 12.4(a) applies) or evidences of its indebtedness, cash or other assets, including securities, but excluding (1) any rights or warrants referred to in
Section 12.4(c), (2) any stock, securities or other property or assets (including cash) distributed as dividends or distributions in connection with a reclassification, change, merger, consolidation, statutory share exchange, combination,
sale or conveyance to which Section 12.11(i) hereof applies and (3) any dividends or distributions paid exclusively in cash (the securities described in foregoing are hereinafter in this Section 12.4(d) called the
“securities”), then, in each such case, subject to the second succeeding paragraph of this Section 12.4(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 (as defined in Section 12.4(g)) with respect to such distribution by a fraction: 
  
 (i) the numerator of which shall be the Current Market Price (determined as provided in
Section 12.4(g)) on such date less the fair market value (as determined by the Board of Directors, whose determination shall be conclusive and set forth in a Board Resolution) on such date of the portion of the securities so distributed
applicable to one share of Common Stock (determined on the basis of the number of shares of the Common Stock outstanding on the Record Date), and 
  

 53 

 (ii) the denominator of which shall be such Current Market Price. 
  
 Such reduction shall become effective immediately prior to the opening of business on the day
following the Record Date. However, in the event that 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 each Holder shall have the right to receive upon Conversion of a Debenture (or any portion thereof) the amount of securities such Holder would have received
had such Holder converted such Debenture (or portion thereof) immediately prior to such Record Date. In the event that such dividend or distribution is not so paid or made, 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 12.4(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 (the “Reference Period”) used in computing the Current Market Price pursuant to Section 12.4(g) to the extent possible, unless the
Board of Directors in a Board Resolution determines in good faith that determining the fair market value during the Reference Period would not be in the best interest of the Holder. 
  
 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 be deemed not to have been distributed for
purposes of this Section 12.4(d) (and no adjustment to the Conversion Price under this Section 12.4(d) will be required) until the occurrence of the earliest Trigger Event. If such right or warrant is subject to subsequent events, upon the
occurrence of which such right or warrant shall become exercisable to purchase different securities, evidences of indebtedness or other assets or entitle the holder to purchase a different number or amount of the foregoing or to purchase any of the
foregoing at a different purchase price, then the occurrence of each such event shall be deemed to be the date of issuance 

  

 54 

 
and record date with respect to a new right or warrant (and a termination or expiration of the existing right or warrant without exercise by the holder
thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto, that resulted in an adjustment to the
Conversion Price under this Section 12.4(d): 
  
 (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 of Common Stock with respect to such rights or warrant (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 all of which shall have expired or been terminated without exercise, the Conversion Price shall
be readjusted as if such rights and warrants had never been issued. 
  
 For purposes of this Section 12.4(d) and Sections 12.4(a), (b) and (c), any dividend or distribution to which this Section 12.4(d) is applicable that also includes shares of Common Stock, a subdivision or combination of
Common Stock to which Section 12.4(c) applies, or rights or warrants to subscribe for or purchase shares of Common Stock to which Section 12.4(c) applies (or any combination thereof), 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, such subdivision or combination or such rights or warrants to which Sections 12.4(a), (b) and (c) apply, respectively (and any
Conversion Price reduction required by this Section 12.4(d) with respect to such dividend or distribution shall then be made), immediately followed by 
  
 (2) a dividend or distribution of such shares of Common Stock, such subdivision or combination or such rights or warrants (and any further
Conversion Price reduction required by Sections 12.4(a), (b) and (c) 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 (x) “the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution”, “Record Date fixed for such determinations” and “Record Date” within the meaning of Section 12.4(a), (y) “the day upon which such
subdivision becomes effective” and “the day upon which such combination becomes effective” within the meaning of Section 12.4(b), and (z) as “the date fixed for the determination of stockholders entitled to receive such
rights or warrants”, “the Record Date fixed for the determination of the stockholders entitled to receive such rights or warrants” and such “Record Date” within the meaning of Section 12.4(c), and 
  

 55 

 (B) any shares of Common Stock included in such dividend or distribution shall not be
deemed “outstanding at the close of business on the date fixed for such determination” within the meaning of Section 12.4(a) and any reduction or increase in the number of shares of Common Stock resulting from such subdivision or
combination shall be disregarded in connection with such dividend or distribution. 
  
 (e) In case the Company shall, by dividend or otherwise, distribute to all or substantially all holders of its Common Stock cash
(excluding any dividend or distribution in connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary), then, in such case, the Conversion Price shall be reduced so that the same shall equal the price
determined by multiplying the Conversion Price in effect on the applicable Record Date by a fraction, 
  
 (1) the numerator of which shall be the Current Market Price on such Record Date less the full amount of cash distributed in respect of
each share of Common Stock in such distribution; and 
  
 (2) the denominator of which shall be the Current Market Price on such Record Date, 
  
 such adjustment to be effective immediately prior to the opening of business on the day following the Record Date; provided that if the portion of the cash 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 each Holder shall have the right to receive upon Conversion the amount of cash such Holder would have
received had such Holder converted each Debenture on the Record Date. If such dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price that would then be in effect if such dividend or
distribution had not been declared. 
  
 (f) In
case a tender offer made by the Company or any of its subsidiaries for all or any portion of the Common Stock shall expire and such tender offer (as amended upon the expiration thereof) shall require the payment to stockholders (based on the
acceptance (up to any maximum specified in the terms of the tender offer) of Purchased Shares (as defined below)) of an aggregate consideration having a fair market value (as determined by the Board of Directors, whose determination shall be
conclusive and set forth in a Board Resolution) that combined together with: 
  
 (1) the aggregate of the cash plus the fair market value (as determined by the Board of Directors, whose determination shall be conclusive and set forth in a Board Resolution), as of the expiration of such tender
offer, of consideration payable in respect of any other tender offers, by the Company or any of its subsidiaries for all or any portion of the Common Stock expiring within the 12 months preceding the expiration of such tender offer and in respect of
which no adjustment pursuant to this Section 12.4(f) has been made, and 
  

 56 

 (2) the aggregate amount of any distributions to all holders of the Company’s Common
Stock made exclusively in cash within 12 months preceding the expiration of such tender offer and in respect of which no adjustment pursuant to Section 12.4(e) has been made, 
  
 exceeds 10% of the product of the Current Market Price (determined as provided in Section 12.4(g)) as of the last time (the
“Expiration Time”) tenders could have been made pursuant to such tender offer (as it may be amended) times the number of shares of Common Stock outstanding (including any tendered shares) on the Expiration Time, then, and in each such
case, immediately prior to the opening of business on the day after the date of the Expiration Time, the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect immediately
prior to close of business on the date of the Expiration Time by a fraction: 
  
 (i) the numerator of which shall be the number of shares of Common Stock outstanding (including any tendered shares) at the Expiration Time multiplied by the Current Market Price of the Common Stock on the Trading Day
next succeeding the Expiration Time, and 
  
 (ii) the denominator shall be the sum of (x) the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified in the terms of the tender offer)
of all shares validly tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”) and (y) the product of the number of shares of Common
Stock outstanding (less any Purchased Shares) on the Expiration Time and the Current Market Price of the Common Stock on the Trading Day next succeeding the Expiration Time. 
  
 Such reduction (if any) shall become effective immediately prior to the opening of business on the day following the Expiration Time. In the
event that the Company is obligated to purchase shares pursuant to any such tender offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Price shall
again be adjusted to be the Conversion Price which would then be in effect if such tender offer had not been made. If the application of this Section 12.4(f) to any tender offer would result in an increase in the Conversion Price, no adjustment
shall be made for such tender offer under this Section 12.4(f). 
  
 (g) For purposes of this Section 12.4, the following terms shall have the meanings indicated: 
  
 (1) “Current Market Price” shall mean the average of the daily Closing Prices per share of Common Stock for the ten consecutive
Trading Days immediately prior to the date in question; provided, however, that if: 
  
 (i) 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 12.4(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading Days, the Closing Price for each Trading Day prior to the “ex” date for
such other event shall be adjusted by multiplying such Closing Price by the same fraction by which the Conversion Price is so required to be adjusted as a result of such other event; 
  

 57 

 (ii) 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 12.4(a), (b), (c), (d), (e) or (f) occurs on or after the “ex” date for the issuance or distribution requiring such
computation and prior to the day in question, the Closing Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by multiplying such Closing 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 
  
 (iii) 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 (i) or (ii) of this proviso, the Closing 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 12.4(d) or (f), whose determination shall be conclusive and set forth 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 12.4(f), the Current Market Price of the Common Stock on any date shall be deemed to be
the average of the daily Closing 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 12.4(a), (b), (c), (d), (e) or (f) occurs on or after the Expiration Time for the tender or exchange offer requiring such computation and prior to
the day in question, the Closing Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by multiplying such Closing 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, when used: 
  
 (A) 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 Closing Price was obtained without the right to receive such issuance or distribution; 
  
 (B) 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 
  

 58 

 (C) with respect to any tender or exchange 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 offer. 
  
 Notwithstanding the foregoing, whenever successive adjustments to the Conversion Price are called for pursuant to this Section 12.4, such adjustments shall be made to the Current Market Price as may be necessary
or appropriate to effectuate the intent of this Section 12.4 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
  
 (2) “fair market value” shall mean the amount which a willing buyer would pay a willing seller in
an arm’s length transaction. 
  
 (3)
“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). 
  
 (h) The Company may make such reductions in the Conversion Price, in addition to those required by Sections 12.4(a), (b), (c), (d), (e) or (f), 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. 
  
 To the extent permitted by applicable law, the Company from time to time may
reduce the Conversion Price by any amount for any period of time if the period is at least 20 days and the reduction is irrevocable during the period and the Board of Directors determines in good faith that such reduction would be in the best
interests of the Company, which determination shall be conclusive and set forth in a Board Resolution. Whenever the Conversion Price is reduced pursuant to the preceding sentence, the Company shall mail to the Trustee and each Holder at the address
of such Holder as it appears in the Register a notice of the reduction at least 15 days prior to the date the reduced Conversion Price takes effect, and such notice shall state the reduced Conversion Price and the period during which it will be in
effect. Notwithstanding the foregoing, in no event will the Conversion Price be less than $0.8600 except to give effect to the equitable adjustments to the Conversion Price as set forth in the provisions of this Section 12.4 (other than
Section 12.4(m) and this Section 12.4(h)). 
  
 (i) 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 12.4(i) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article 12 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 or no par value of the Common Stock. 
  

 59 

 (j) In any case in which this Section 12.4 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 Holder of any Debenture converted 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 12.3 hereof. 
  
 (k) For purposes of this Section 12.4, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of
scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
  
 (l) If the distribution date for the rights provided in the
Company’s rights agreement, if any, occurs prior to the date a Debenture is converted, the Holder of the Debenture who converts such Debenture after the distribution date is not entitled to receive the rights that would otherwise be attached
(but for the Conversion Date) to the shares of Common Stock received upon such Conversion; provided, however, that an adjustment shall be made to the Conversion Price pursuant to Section 12.4(b) as if the rights were being
distributed to the common stockholders of the Company immediately prior to such Conversion. If such an adjustment is made and the rights are later redeemed, invalidated or terminated, then a corresponding reversing adjustment shall be made to the
Conversion Price, on an equitable basis, to take account of such event. 
  
 (m) Subject to Section 6.1, if a Holder elects to convert a Debenture within 30 days after the date of the Non-Stock Change of Control Notice in connection with a Change of Control (or in connection with a
transaction that would have been a Change of Control but for the proviso contained in the definition of Change of Control in Section 1.1), except for a Change of Control resulting solely from an event described in clause 2 of the definition of
Change of Control, pursuant to which 10% or more of the consideration for the Common Stock (other than cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights) in such transaction consists of cash
or securities (or other property) that are not traded or scheduled to be traded immediately following such transaction on a U.S. national securities exchange or the Nasdaq National Market (a “Non-Stock Change of Control”), the Company will
reduce the Conversion Price for the Debentures converted during such 30-day period to equal the new Conversion Price (the “Make-Whole Conversion Price”) determined by reference to the table below, based on the date on which the Non-Stock
Change of Control becomes effective (the “Effective Date”) and the price (the “Stock Price”) paid per share for the Common Stock in the Non-Stock Change of Control. If Holders of Common Stock receive only cash in the Non-Stock
Change of Control, the Stock Price shall be the cash amount paid per share of Common Stock. Otherwise, the Stock Price shall be the volume-weighted average of the Closing Prices of the Common Stock on the five Trading Days prior to but not including
the Effective Date. 
  

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 The Stock Prices and the Make-Whole Conversion Prices set forth in the table below will be adjusted as of
any date on which the Conversion Price is adjusted. On such date, the Stock Prices shall be adjusted by multiplying: 
  
 (1) the Stock Prices applicable immediately prior to such adjustment, by 
  
 (2) a fraction, the numerator of which shall be the Conversion Price as adjusted and the denominator of
which shall be the Conversion Price immediately prior to the adjustment giving rise to the Stock Price adjustment. 
  
 The following table sets forth the Make-Whole Conversion Prices for the Debentures converted during the 30-day period after the date of the Non-Stock
Change of Control Notice: 
  
 MAKE-WHOLE CONVERSION PRICES

  
 Stock Price 
  

																															
	 Effective Date

	  	$0.9131

	  	$1.1870

	  	$1.3000

	  	$1.4000

	  	$1.5000

	  	$1.6000

	  	$1.7000

	  	$1.8000

	  	$1.9000

	  	$2.0000

	 02/27/2006
	  	$	0.9131	  	$	1.0383	  	$	1.0777	  	$	1.1077	  	$	1.1336	  	$	1.1557	  	$	1.1743	  	$	1.1870	  	$	1.1870	  	$	1.1870
	 08/15/2006
	  	$	0.9062	  	$	1.0347	  	$	1.0751	  	$	1.1059	  	$	1.1324	  	$	1.1550	  	$	1.1741	  	$	1.1870	  	$	1.1870	  	$	1.1870
	 08/15/2007
	  	$	0.8950	  	$	1.0296	  	$	1.0716	  	$	1.1034	  	$	1.1308	  	$	1.1540	  	$	1.1736	  	$	1.1870	  	$	1.1870	  	$	1.1870
	 08/15/2008
	  	$	0.9014	  	$	1.0451	  	$	1.0860	  	$	1.1154	  	$	1.1397	  	$	1.1597	  	$	1.1760	  	$	1.1870	  	$	1.1870	  	$	1.1870
	 08/15/2009
	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870	  	$	1.1870

  
 The
exact Stock Price and Effective Date may not be set forth on the table; in which case, if the Stock Price is: 
  

	 	1.	between two Stock Prices on the table or the Effective Date is between two dates on the table, the Make-Whole Conversion Price will be determined by straight-line interpolation
between the number of shares of Additional Common Stock set forth for the higher and lower Stock Prices and the two Effective Dates, as applicable, based on a 360-day year. 

  

	 	2.	in excess of $2.00 per share (subject to adjustment), no decrease in the Conversion Price will be made; 

  

	 	3.	less than $0.9131 per share (subject to adjustment), no decrease in the Conversion Price will be made. 

  
 Notwithstanding the foregoing, in no event will the Conversion Price be less than $0.8600 except to give effect to the equitable adjustments
to the Conversion Price as set forth in the provisions of this Section 12.4 (other than this Section 12.4(m) and Section 12.4(h)). In no event will the Conversion Price be adjusted pursuant to this Section 12.4(m) in connection with a
Non-Stock Change of Control occurring on or after August 15, 2009. 
  
 The Company
shall give notice (the “Non-Stock Change of Control Notice”) to all Holders of such Non-Stock Change of Control as part of the Company Change of Control Notice in accordance with Section 11.3(d). Holders that convert Debentures in
accordance with the requirements of Section 12.2 at any time after the Company gives the Non-Stock Change of Control Notice until the Repurchase Date with respect to such Change of Control will receive the benefit of the Conversion Price
adjustment with respect to the securities so converted pursuant to this Section 12.4(m). 
  

 61 

 Section 12.5 Notice of Adjustments of Conversion Price. 
  
 Whenever the Conversion Price is adjusted as herein provided (other than in
the case of an adjustment pursuant to the second paragraph of Section 12.4(h) for which the notice required by such paragraph has been provided), the Company shall promptly file with the Trustee and any Conversion Agent other than the Trustee
an Officer’s Certificate setting forth the adjusted Conversion Price and showing in reasonable detail the facts upon which such adjustment is based. Promptly after delivery of such Officer’s Certificate, the Company shall prepare a notice
stating that the Conversion Price has been adjusted and setting forth the adjusted Conversion Price and the date on which each adjustment becomes effective, and shall mail such notice to each Holder at the address of such Holder as it appears in the
Register within 20 days of the effective date of such adjustment. Failure to deliver such notice shall not effect the legality or validity of any such adjustment. 
  
 Section 12.6 Notice Prior to Certain Actions. 
  
 In case at any time after the date hereof: 
  
 (1) the Company shall declare a dividend (or any other distribution) on its Common Stock payable otherwise
than in cash out of its capital surplus or its consolidated retained earnings; 
  
 (2) the Company shall authorize the granting to the holders of its Common Stock of rights or warrants to subscribe for or purchase any
shares of capital stock of any class (or of securities convertible into shares of capital stock of any class) or of any other rights; 
  
 (3) there shall occur any reclassification of the Common Stock of the Company (other than a subdivision or combination of its outstanding
Common Stock, a change in par value, a change from par value to no par value or a change from no par value to par value), or any merger, consolidation, statutory share exchange or combination to which the Company is a party and for which approval of
any shareholders of the Company is required, or the sale, transfer or conveyance of all or substantially all of the assets of the Company; or 
  
 (4) there shall occur the voluntary or involuntary dissolution, liquidation or winding up of the Company; 
  
 the Company shall cause to be filed at each office or agency maintained for the purpose of
Conversion of securities pursuant to Section 9.2 hereof, and shall cause to be provided to the Trustee and all Holders in accordance with Section 14.2 hereof, at least 20 days (or 10 days in any case specified in clause (1) or
(2) above) prior to the applicable record or effective date hereinafter specified, a notice stating: 
  
 (A) the date on which a record is to be taken for the purpose of such dividend, distribution, 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, rights or warrants are to be determined, or 
  

 62 

 (B) the date on which such reclassification, merger, consolidation, statutory share
exchange, combination, sale, transfer, conveyance, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of
Common Stock for securities, cash or other property deliverable upon such reclassification, merger, consolidation, statutory share exchange, sale, transfer, dissolution, liquidation or winding up. 
  
 Neither the failure to give such notice nor any defect therein shall affect
the legality or validity of the proceedings or actions described in clauses (1) through (4) of this Section 12.6. 
  
 Section 12.7 Company to Reserve Common Stock. 
  
 The Company shall at all times use its best efforts to reserve and keep available, free from preemptive rights, out of its authorized but unissued Common
Stock, for the purpose of effecting the Conversion of Debentures, the full number of shares of fully paid and nonassessable Common Stock then issuable upon the Conversion of all Outstanding Debentures. 
  
 Section 12.8 Taxes on Conversions. 
  
 Except as provided in the next sentence, the Company will pay any and all
taxes (other than taxes on income) and duties that may be payable in respect of the issue or delivery of shares of Common Stock on Conversion of Debentures pursuant hereto. A Holder delivering a Debenture for Conversion shall be liable for and will
be required to pay any tax or duty which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in a name other than that of the Holder of the Debenture or Debentures to be converted, and no such issue
or delivery shall be made unless the Person requesting such issue has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been paid. 
  
 Section 12.9 Covenant as to Common Stock. 
  
 The Company covenants that all shares of Common Stock which may be issued
upon Conversion of Debentures will upon issue be fully paid and nonassessable and, except as provided in Section 12.8, the Company will pay all taxes, liens and charges with respect to the issue thereof. 
  
 Section 12.10 Cancellation of Converted Debentures. 
  
 All Debentures delivered for Conversion shall be delivered to the Trustee to
be canceled by or at the direction of the Trustee, which shall dispose of the same as provided in Section 2.15. 
  

 63 

 Section 12.11 Effect of Reclassification, Consolidation, Merger or Sale. 
  
 If any of 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), 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, 
  
 (ii) any merger, consolidation, statutory share exchange or combination of the Company with another corporation 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 corporation 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, 
  
 the Company or the successor or purchasing corporation, as the case may be, shall execute
with the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of execution of such supplemental indenture if such supplemental indenture is then required to so comply) providing that such Debenture shall be
convertible into the kind and amount of shares of stock and other securities or property or assets (including cash) which such Holder would have been entitled to receive upon such reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance had such Debentures been converted into Common Stock immediately prior to such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance assuming such holder
of Common Stock did not exercise its rights of election, if any, as to the kind or amount of securities, cash or other property receivable upon such merger, consolidation, statutory share exchange, sale or conveyance (provided that, if the kind or
amount of securities, cash or other property receivable upon such merger, consolidation, statutory share exchange, sale or 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 12.11 the kind and amount of securities, cash or other property receivable upon such merger, consolidation, statutory share exchange, sale or conveyance for each
Non-Electing Share shall be deemed to be the kind and amount so receivable per share by a plurality of the Non-Electing Shares). Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Article 12. If, in the case of any such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock or other securities and assets receivable thereupon by
a holder of shares of Common Stock includes shares of stock or other securities and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such reclassification, change, merger, 

  

 64 

 
consolidation, statutory share exchange, combination, sale or conveyance, then such supplemental indenture shall also be executed by such other corporation
and shall contain such additional provisions to protect the interests of the Holders of the Debentures 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 11 hereof. 
  
 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears on the Register, within 20 days after execution thereof. Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture. 
  
 The above provisions of this Section shall similarly apply to successive reclassifications, mergers, consolidations, statutory share exchanges, combinations, sales and conveyances. 
  
 If this Section 12.11 applies to any event or occurrence,
Section 12.4 hereof shall not apply. 
  
 Section 12.12
Responsibility of Trustee for Conversion Provisions. 
  
 The
Trustee, subject to the provisions of Section 5.1 hereof, and any Conversion Agent shall not at any time be under any duty or responsibility to any Holder of Debentures to determine whether any facts exist which may require any adjustment of
the Conversion Price, or with respect to the nature or intent of any such adjustments when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. Neither the Trustee,
subject to the provisions of Section 5.1 hereof, nor any Conversion Agent shall be accountable with respect to the validity or value (of the kind or amount) of any Common Stock, or of any other securities or property, which may at any time be
issued or delivered upon the Conversion of any Debenture; and it or they do not make any representation with respect thereto. Neither the Trustee, subject to the provisions of Section 5.1 hereof, nor any Conversion Agent shall be responsible
for any failure of the Company to make any cash payment or to issue, transfer or deliver any shares of stock or share certificates or other securities or property upon the surrender of any Debenture for the purpose of Conversion; and the Trustee,
subject to the provisions of Section 5.1 hereof, and any Conversion Agent shall not be responsible or liable for any failure of the Company to comply with any of the covenants of the Company contained in this Article. 
  
 Section 12.13 Auto-Conversion by the Company. 
  
 (a) Subject to the terms and conditions of this
Section 12.13, if the daily volume-weighted average price of the Common Stock has exceeded 150% of the Conversion Price then in effect for at least 20 Trading Days during any 30 Trading Day period, ending within five Trading Days prior to the
date of the Auto-Conversion Notice, the Company may elect, at its sole option, at any time after the original issuance of the Debentures through the close of business on the final maturity date of the Debentures, to convert automatically (an
“Auto-Conversion”) all of the Debentures or any portion of the principal amount thereof that is $1,000 or an integral multiple of $1,000 into that number of fully paid and non-assessable shares of Common Stock (as such shares shall then be
constituted) obtained by dividing the principal 

  

 65 

 
amount of the Debentures or portion thereof to be converted by the Conversion Price in effect at the time of such election, and in no event shall the Company
be entitled to effect any Auto-Conversion of greater than twenty-five percent (25%) of the aggregate principal amount of the Debentures issued under this Indenture; provided that no Auto-Conversion may be effected unless at least 30
Trading Days shall have elapsed since the previous Auto-Conversion. Any Auto-Conversion of less than all of the Debentures will be made on a pro rata basis with reference to the aggregate principal amount held by all Holders of the Debentures on the
Auto-Conversion Date, rounded up to the amount of $1,000 in principal amount on a Holder-by-Holder basis. 
  
 (b) If the Company elects to effect an Auto-Conversion of all or a portion of the Debentures pursuant to this Section 12.13, the
Company, or at its request (which must be received by the Trustee at least five (5) Business Days prior to the date the Trustee is requested to give notice as described below unless a shorter period is agreed to by the Trustee), the Trustee in
the name of and at the expense of the Company, shall mail or cause to be mailed a notice (the “Auto-Conversion Notice”) of the Auto-Conversion not more than thirty (30) days but not less than five (5) days before the
Auto-Conversion Date to such Holders at their last addresses as they shall appear upon the Register. Such notice shall be irrevocable and shall be mailed by first class mail. Any notice that is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not the registered Holder receives the notice. In any case, failure to duly give such notice to the Holder of any Debentures designated for Auto-Conversion in whole or in part, or any defect
in the notice, shall not affect the validity of the Auto-Conversion of any other Debentures. 
  
 Each Auto-Conversion Notice shall state: 
  
 (1) the Auto-Conversion Date; 
  
 (2) the CUSIP number(s) of the Debenture(s) to be automatically converted; 
  
 (3) the place or places where such Debentures are to be surrendered for Conversion; and 
  
 (4) the Conversion Price then in effect. 
  
 In case less than all of the Debentures are to be Auto-Converted, the Auto-Conversion Notice
shall state the portion of the principal amount thereof to be converted and shall state that on and after the Auto-Conversion Date, upon surrender of such Debenture, a new Debenture or Debentures in principal amount equal to the unconverted portion
thereof will be issued. 
  
 (c) The Company shall
pay any interest accrued but not paid to, but excluding, the Auto-Conversion Date on any Debentures Auto-Converted pursuant to this Section 12.13. Such interest shall be paid to the Holders of the Debentures called for Auto-Conversion;
provided, however, that, if the Auto-Conversion Date is an Interest Payment Date, the Company shall pay such interest to the Holders at the close of business on the corresponding Regular Record Date. 
  

 66 

 (d) In the event of any Auto-Conversion, the Company shall issue and deliver a
certificate or certificates for the number of shares of Common Stock issuable upon Auto-Conversion of the Debentures along with any cash or stock due in respect of any fractional shares of Common Stock otherwise issuable upon Auto-Conversion as
provided in Section 12.3 hereof for issuance and payment to the Holder as promptly after the Auto-Conversion Date as practicable in accordance with the provisions of this Article Twelve. 
  
 (e) All Debentures subject to any Auto-Conversion shall be
delivered to the Trustee to be canceled at the direction of the Trustee, which shall dispose of the same as provided in Section 2.15 hereof. Failure to deliver such Debentures shall not affect their automatic cancellation. 
  
 ARTICLE 13 
  
 SUBORDINATION 
  
 Section 13.1 Debentures Subordinated to Senior Debt. 
  
 The Company covenants and agrees, and each Holder of Debentures, by such Holder’s acceptance thereof, likewise covenants and agrees, that the
Indebtedness represented by the Debentures and the payment of the principal of and premium, if any, and interest on each and all of the Debentures is hereby expressly subordinated and junior, to the extent and in the manner set forth and as set
forth in this Section 13.1, in right of payment to the prior payment in full of all Senior Debt. 
  
 (a) In the event of any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the
Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise, the holders of all Senior
Debt shall first be entitled to receive payment of the full amount due thereon in respect of all such Senior Debt and all other amounts due or provision shall be made for such amount in cash, or other payments satisfactory to the holders of Senior
Debt, before the Holders of any of the Debentures are entitled to receive any payment or distribution of any character, whether in cash, securities or other property, on account of the principal of or premium, if any, or interest on the Indebtedness
evidenced by the Debentures, except that the Company may make payments on the Debentures in Permitted Junior Securities. 
  
 (b) In the event of any acceleration of Maturity of the Debentures because of an Event of Default, unless the full amount due in respect
of all Senior Debt is paid in cash or other form of payment satisfactory to the holders of Senior Debt, no payment shall be made by the Company with respect to the principal of, premium, if any, or interest on the Debentures or to acquire any of the
Debentures (including any Conversion or cash repurchase pursuant to the exercise of the Repurchase Right), except that the Company may make payments on the Debentures in Permitted Junior Securities, and the Company shall give prompt written notice
of such acceleration to such holders of Senior Debt. 
  

 67 

 (c) In the event of and during the continuance of any default in payment of the principal
of or premium, if any, or interest on, or other payment obligation in respect of, any Senior Debt, unless all such payments due in respect of such Senior Debt have been paid in full in cash or other payments satisfactory to the holders of Senior
Debt, no payment shall be made by the Company with respect to the principal of, premium, if any, or interest on the Debentures or to acquire any of the Debentures (including any Conversion or cash repurchase pursuant to the exercise of the
Repurchase Right), except that the Company may make payments on the Debentures in Permitted Junior Securities. The Company shall give prompt written notice to the Trustee of any default under any Senior Debt or under any agreement pursuant to which
Senior Debt may have been issued. 
  
 (d) During
the continuance of any event of default with respect to any Designated Senior Debt, as such event of default is defined under any such Designated Senior Debt or in any agreement pursuant to which any Designated Senior Debt has been issued (other
than a default in payment of the principal of or premium, if any, or interest on, or other payment obligation in respect of any Designated Senior Debt), permitting the holder or holders of such Designated Senior Debt to accelerate the maturity
thereof, no payment shall be made by the Company, directly or indirectly, with respect to principal of, premium, if any, or interest on the Debentures, other than payments in Permitted Junior Securities, for 179 days following notice in writing (a
“Payment Blockage Notice”) to the Company, from any holder or holders of such Designated Senior Debt or their representative or representatives or the trustee or trustees under any indenture or under which any instrument evidencing any
such Designated Senior Debt may have been issued, that such an event of default has occurred and is continuing, unless such event of default has been cured or waived or such Designated Senior Debt has been paid in full; provided,
however, if the maturity of such Designated Senior Debt is accelerated, no payment may be made on the Debentures, other than payments in Permitted Junior Securities, until such Designated Senior Debt has been paid in full in cash or other
payment satisfactory to the holders of such Designated Senior Debt or such acceleration has been cured or waived. 
  
 For purposes of this Section 13.1(d), such Payment Blockage Notice shall be deemed to include notice of all other events of default under such
indenture or instrument which are continuing at the time of the event of default specified in such Payment Blockage Notice. The provisions of this Section 13.1(d) shall apply only to one such Payment Blockage Notice given in any period of 365
days with respect to any issue of Designated Senior Debt, and no such continuing event of default that existed or was continuing on the date of delivery of any Payment Blockage Notice shall be, or shall be made, the basis for a subsequent Payment
Blockage Notice. 
  
 (e) In the event that,
notwithstanding the foregoing provisions of Sections 13.1(a), (b), (c) and (d), any payment on account of principal, premium, if any, or interest on the Debentures shall be made by or on behalf of the Company and received by the Trustee, by any
Holder or by any Paying Agent (or, if the Company is acting as its own Paying Agent, money for any such payment shall be segregated and held in trust): 
  
 (i) after the occurrence of an event specified in Section 13.1(a) or (b), then, unless all Senior Debt is paid in full in cash, or
provision shall be made therefor, 
  

 68 

 (ii) after the happening of an event of default of the type specified in
Section 13.1(c), then, unless the amount of such Senior Debt then due shall have been paid in full, or provision made therefor or such event of default shall have been cured or waived, or 
  
 (iii) after the happening of an event of default of the type
specified in Section 13.1(d) and delivery of a Payment Blockage Notice, then, unless such event of default shall have been cured or waived or the 179-day period specified in Section 13.1(d) shall have expired, 
  
 such payment (subject, in each case, to the provisions of Section 13.7 hereof) shall be
held in trust for the benefit of, and shall be immediately paid over to, the holders of Designated Senior Debt (unless an event described in Section 13.1(a), (b) or (c) has occurred, in which case the payment shall be held in trust
for the benefit of, and shall be immediately paid over to all holders of Senior Debt) or their representative or representatives or the trustee or trustees under any indenture under which any instruments evidencing any of the Designated Senior Debt
or Senior Debt, as the case may be, may have been issued, as their interests may appear. 
  
 Section 13.2 Subrogation. 
  
 Subject to the payment in full of all Senior Debt to which the Indebtedness evidenced by the Debentures is in the circumstances subordinated as provided in Section 13.1 hereof, the Holders of the Debentures shall be subrogated to the
rights of the holders of such Senior Debt to receive payments or distributions of cash, property or securities of the Company applicable to such Senior Debt until all amounts owing on the Debentures shall be paid in full, and, as between the
Company, its creditors other than holders of such Senior Debt, and the Holders of the Debentures, no such payment or distribution made to the holders of Senior Debt by virtue of this Article which otherwise would have been made to the holders of the
Debentures shall be deemed to be a payment by the Company on account of such Senior Debt; provided that the provisions of this Article are and are intended solely for the purpose of defining the relative rights of the Holders of the
Debentures, on the one hand, and the holders of Senior Debt, on the other hand. 
  
 Section 13.3 Obligation of the Company is Absolute and Unconditional. 
  
 Nothing contained in this Article or elsewhere in this Indenture or in the Debentures is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Debt, and the Holders of the Debentures, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Debentures the principal of and premium, if any, and interest on the
Debentures as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of the Debentures and creditors of the Company other than the holders of Senior Debt,
nor shall anything contained herein or therein prevent the Trustee or the Holder of any Debenture from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article
of the holders of Senior Debt in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
  

 69 

 Section 13.4 Maturity of or Default on Senior Debt. 
  
 Upon the maturity of any Senior Debt by lapse of time, acceleration or
otherwise, all principal of or premium, if any, or interest on, or other payment obligations in respect of all such matured Senior Debt shall first be paid in full, or such payment shall have been duly provided for, before any payment on account of
principal, or premium, if any, or interest is made upon the Debentures, except that the Company may make payments on the Debentures in Permitted Junior Securities. 
  
 Section 13.5 Payments on Debentures Permitted. 
  
 Except as expressly provided in this Article, nothing contained in this Article shall affect the obligation of the Company
to make, or prevent the Company from making, payments of the principal of, or premium, if any, or interest on the Debentures in accordance with the provisions hereof and thereof, or shall prevent the Trustee or any Paying Agent from applying any
moneys deposited with it hereunder to the payment of the principal of, or premium, if any, or interest on the Debentures. 
  
 Section 13.6 Effectuation of Subordination by Trustee. 
  
 Each Holder of Debentures, by such Holder’s acceptance thereof, authorizes and directs the Trustee on such Holder’s behalf to take such action
as may be necessary or appropriate to effectuate the subordination provided in this Article and appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes. 
  
 Upon any payment or distribution of assets of the Company referred to in this Article, the Trustee and the Holders of the
Debentures shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which any such dissolution, winding up, liquidation or reorganization proceeding affecting the affairs of the Company is pending or upon a
certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors, liquidating trustee or agent or other Person making any payment or distribution, delivered to the Trustee or to the Holders of the Debentures, for the purpose
of ascertaining the Persons entitled to participate in such payment or distribution, and as to other facts pertinent to the right of such Persons under this Article, and if such evidence is not furnished, the Trustee may defer any payment to such
Persons pending judicial determination as to the right of such Persons to receive such payment. 
  
 Section 13.7 Knowledge of Trustee. 
  
 Notwithstanding the provision of this Article or any other provisions of this Indenture, the Trustee shall not be charged with knowledge of the existence
of any Senior Debt, of any default in payment of principal of, premium, if any, or interest on, or other payment obligation in respect of any Senior Debt, or of any facts which would prohibit the making of any payment of moneys to or by the Trustee,
or the taking of any other action by the Trustee, unless a Responsible Officer of the Trustee having responsibility for the administration of the trust established by this Indenture shall have received written notice thereof from the Company, any
Holder of Debentures, any Paying or Conversion Agent of the Company or the holder or 

  

 70 

 
representative of any class of Senior Debt, and, prior to the receipt of any such written notice, the Trustee shall be entitled in all respects to assume
that no such default or facts exist; provided, however, that unless on the third Business Day prior to the date upon which by the terms hereof any such moneys may become payable for any purpose the Trustee shall have received the notice
provided for in this Section 13.7, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys and apply the same to the purpose for which they were received, and shall
not be affected by any notice to the contrary which may be received by it on or after such date. 
  
 Section 13.8 Trustee’s Relation to Senior Debt. 
  
 The Trustee shall be entitled to all the rights set forth in this Article with respect to any Senior Debt at the time held by it, to the same extent as
any other holder of Senior Debt and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder. 
  
 Nothing contained in this Article shall apply to claims of or payments to the Trustee under or pursuant to Section 5.8 hereof. 
  
 With respect to the holders of Senior Debt, the Trustee undertakes to perform
or to observe only such of its covenants and obligations as are specifically set forth in this Article, and no implied covenants or obligations with respect to the holders of Senior Debt shall be read into this Indenture against the Trustee. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt and the Trustee shall not be liable to any holder of Senior Debt if it shall pay over or deliver to Holders, the Company or any other Person moneys or assets to
which any holder of Senior Debt shall be entitled by virtue of this Article or otherwise. 
  
 Section 13.9 Rights of Holders of Senior Debt Not Impaired. 
  
 No right of any present or future holder of any Senior Debt to enforce the subordination herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by
any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof any such holder may have or be otherwise charged with. 
  
 Section 13.10 Modification of Terms of Senior Debt. 
  
 Any renewal or extension of the time of payment of any Senior Debt or the exercise by the holders of Senior Debt of any of
their rights under any instrument creating or evidencing Senior Debt, including without limitation the waiver of default thereunder, may be made or done all without notice to or assent from the Holders of the Debentures or the Trustee. 

 
 No compromise, alteration, amendment, modification, extension, renewal or
other change of, or waiver, consent or other action in respect of, any liability or obligation under or in respect of, or of any of the terms, covenants or conditions of any indenture or other instrument under which any Senior Debt is outstanding or
of such Senior Debt, whether or not such release is in accordance with the provisions or any applicable document, shall in any way alter or affect any of the provisions of this Article or of the Debentures relating to the subordination thereof.

  

 71 

 Section 13.11 Certain Conversions Not Deemed Payment. 
  
 For the purposes of this Article 13 only: 
  
 (1) the issuance and delivery of junior securities upon
Conversion of Debentures in accordance with Article 12 hereof shall not be deemed to constitute a payment or distribution on account of the principal of, premium, if any, or interest on Debentures or on account of the purchase or other acquisition
of Debentures, and 
  
 (2) the payment, issuance
or delivery of cash (except in satisfaction of fractional shares pursuant to Section 12.3 hereof), property or securities (other than junior securities) upon Conversion of a Debenture shall be deemed to constitute payment on account of the
principal of, premium, if any, or interest on such Debenture. 
  
 For the purposes of this Section 13.11, the term “junior securities” means: 
  
 (a) shares of any common stock of the Company or 
  

(b) other securities of the Company that are subordinated in right of payment to all Senior Debt that may be outstanding at the time of
issuance or delivery of such securities to substantially the same extent as, or to a greater extent that, the Debentures are so subordinated as provided in this Article. 
  
 Nothing contained in this Article 13 or elsewhere in this Indenture or in the Debentures is intended to or shall impair, as among the
Company, its creditors (other than holders of Senior Debt) and the Holders of Debentures, the right, which is absolute and unconditional, of the Holder of any Debenture to convert such Debenture in accordance with Article 12 hereof. 
  
 ARTICLE 14 
  
 OTHER PROVISIONS OF GENERAL APPLICATION 
  
 Section 14.1 Trust Indenture Act Controls. 
  
 This Indenture is subject to the provisions of the TIA which are required to be part of this Indenture, and shall, to the
extent applicable, be governed by such provisions. 
  
 Section
14.2 Notices. 
  
 Any notice or communication to the Company or
the Trustee is duly given if in writing and delivered in person or mailed by first-class mail to the address set forth below: 
  

	 	(a)	if to the Company: 

  
 Primus Telecommunications Group, Incorporated 
 7901 Jones Branch Drive, Suite 900 
 McLean, VA 22102 
 Attention: Thomas R. Kloster 
  

 72 

 with a copy to: 
  
 Wilmer Cutler Pickering Hale and Dorr LLP 
 2445 M Street, NW 
 Washington, D.C. 20037 
 Attention: Thomas W. White 
  

	 	(b)	if to the Trustee: 

  
 U.S. Bank National Association 
 Corporate
Trust Services – VA9646 
 1021 East Cary Street 
 3rd Floor 
 Richmond, Virginia 23219 
  
 The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

  
 Any notice or communication to a Holder shall be mailed by
first-class mail to his address shown on the Register kept by the Registrar. Failure to mail a notice or communication to a Holder or any defect in such notice or communication shall not affect its sufficiency with respect to other Holders.

  
 If a notice or communication is mailed or sent in the manner
provided above within the time prescribed, it is duly given as of the date it is mailed, whether or not the addressee receives it, except that notice to the Trustee shall only be effective upon receipt thereof by the Trustee. 
  
 If the Company mails a notice or communication to Holders, it shall mail a
copy to the Trustee at the same time. 
  
 Section 14.3
Communication by Holders with Other Holders. 
  
 Holders may
communicate pursuant to Section 312(b) of the TIA with other Holders with respect to their rights under the Debentures or this Indenture. The Company, the Trustee, the Registrar and anyone else shall have the protection of Section 312(c)
of the TIA. 
  
 Section 14.4 Acts of Holders of Debentures.

  
 (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of Debentures may be embodied in and evidenced by: 
  
 (1) one or more instruments of substantially similar tenor signed by such Holders in person or by agent or
proxy duly appointed in writing; 
  
 (2) the
record of Holders of Debentures voting in favor thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders of Debentures duly called and held in accordance with the provisions of Article 8; or 
  
 (3) a combination of such instruments and any such record.

  

 73 

 Except as herein otherwise expressly provided, such action shall become effective when such instrument or
instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments and record (and the action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the Holders of Debentures signing such instrument or instruments and so voting at such meeting. Proof of execution of any such instrument or of a writing appointing any such agent or proxy, or of the holding by any Person
of a Debenture, shall be sufficient for any purpose of this Indenture and (subject to Section 5.1 hereof) conclusive in favor of the Trustee and the Company if made in the manner provided in this Section 14.4. The record of any meeting of
Holders of Debentures shall be proved in the manner provided in Section 8.6 hereof. 
  
 (b) The fact and date of the execution by any Person of any such instrument or writing may be provided in any manner which the Trustee
reasonably deems sufficient. 
  
 (c) The
principal amount and serial numbers of Debentures held by any Person, and the date of such Person holding the same, shall be proved by the Register. 
  
 (d) Any request, demand, authorization, direction, notice, consent, election, waiver or other Act of the Holders of any Debenture shall
bind every future Holder of the same Debenture and the Holder of every Debenture 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 Debenture. 
  
 Section 14.5 Certificate and Opinion as to Conditions Precedent. 
  

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the Opinion of Counsel with respect to the matters upon which such certificate or opinion is based is erroneous. Any such Opinion of Counsel may be based, insofar as it relates
to factual matters, upon a certificate 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 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. 
  

 74 

 Upon any application or request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel
stating that in the opinion of such Counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished. 
  
 Section 14.6 Statements Required in Certificate or Opinion. 
  
 Each 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 on behalf of the Company has read such covenant or condition and the definitions herein relating thereto; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (3) a
statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

  
 (4) a statement as to whether, in the opinion
of each such individual, such condition or covenant has been complied with. 
  
 Section 14.7 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 14.8 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 14.9 Separability Clause. 
  
 In case any provision in this Indenture or the Debentures 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. 
  

 75 

 Section 14.10 Benefits of Indenture. 
  
 Nothing contained in this Indenture or in the Debentures, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, the holders of Senior Debt and the Holders of Debentures, any benefit or legal or equitable right, remedy or claim under this Indenture. 
  
 Section 14.11 Governing Law. 
  
 THIS INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 Section 14.12 Counterparts. 
  
 This instrument may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original but all such counterparts shall together constitute but one and the same instrument. 
  
 Section 14.13 Legal Holidays. 
  
 In any case where any Interest Payment Date or Stated Maturity of any Debenture or the last day on which a Holder of a Debenture has a right to convert
such Debenture shall not be a Business Day at any Place of Payment or Place of Conversion, then (notwithstanding any other provision of this Indenture or of the Debentures) payment of interest or principal or premium, if any, or Conversion of the
Debentures, need not be made at such Place of Payment or Place of Conversion on such day, but may be made on the next succeeding Business Day at such Place of Payment or Place of Conversion with the same force and effect as if made on the Interest
Payment Date or at the Stated Maturity or on such last day for Conversion; provided that in the case that payment is made on such succeeding Business Day, no interest shall accrue on the amount so payable for the period from and after such
Interest Payment Date or Stated Maturity, as the case may be. 
  
 Section 14.14 Recourse Against Others. 
  
 No recourse
for the payment of the principal of or premium, if any, or interest on any Debenture, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, shareholder, officer or director, as such, past, present or
future, of the Company or of 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, all such liability being, by the acceptance thereof and as part of
the consideration for the issue thereof, expressly waived and released. 
  

 76 

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

			
	PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
		
	By:	 	/s/ John F. DePodesta
	 	 	Name: John F. DePodesta
	 	 	Title: Executive Vice President

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	/s/ Sarah McMahon
	 	 	Name: Sarah McMahon
	 	 	Title: Authorized Signatory

  

 77 

 EXHIBIT A 
  
 FORM OF DEBENTURE 
  
 [FACE OF SECURITY] 
  
 UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED (OR ITS SUCCESSOR) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, CONVERSION OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.1 
  

	1	This legend should be included only if the Security is issued in global form. 

  

 A-1 

 PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED 
 Step Up Convertible Subordinated Debenture due 2009 
  
 CUSIP NO. 741929 AP 8 
  

					
	No.                     	 	 	 	$                                  

  
 PRIMUS
TELECOMMUNICATIONS GROUP, INCORPORATED, a Delaware corporation (the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                        , or its registered assigns, the principal sum of
             U.S. Dollars ($                     ) on August 15, 2009.

  
 Interest Payment Dates: February 15 and August 15,
commencing August 15, 2006 
  
 Regular Record Dates:
February 1 and August 1 
  
 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. 
  

 A-2 

 IN WITNESS WHEREOF, the Company has caused this Security to be duly executed manually or by facsimile by
its duly authorized officers. 
  
 Dated:
                             , 2006 
  

			
	PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	This is one of the Step Up Convertible Subordinated Debentures due 2009 described in the within-named Indenture.
	
	 U.S. Bank National Association,
 as Trustee

		
	By:	 	 
	 Title:
	 	Authorized Signatory

  
 Dated:                              , 2006 
  

 A-3 

 [REVERSE OF SECURITY] 
  
 PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED 
 Step Up Convertible Subordinated Debenture due 2009 
  
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 1. Principal and Interest. 
  
 Primus Telecommunications Group, Incorporated, a Delaware corporation (the “Company”), promises to pay interest on the principal amount of this
Security at the Interest Rate from the date of issuance until repayment at Maturity or repurchase. The Company will pay interest on this Security semiannually in arrears on February 15 and August 15 of each year (each an “Interest
Payment Date”), commencing August 15, 2006. 
  
 Interest
on the Step Up Convertible Subordinated Debentures due 2009 (the “Securities”) shall be computed (i) for any full semiannual period for which a particular Interest Rate is applicable on the basis of a 360-day year of twelve 30-day
months and (ii) for any period for which a particular Interest Rate is applicable shorter than a full semiannual period for which interest is calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual
number of days elapsed over a 30-day month. A Holder of any Security at the close of business on a Regular Record Date shall be entitled to receive interest on such Security on the corresponding Interest Payment Date. 
  
 A Holder of any Security which is converted after the close of business on a
Regular Record Date and prior to the corresponding Interest Payment Date (other than any Security whose Maturity is prior to such Interest Payment Date) shall be entitled to receive interest on the principal amount of such Security, notwithstanding
the Conversion of such Security prior to such Interest Payment Date. However, any such Holder which surrenders any such Security for Conversion during the period between the close of business on such Regular Record Date and ending with the opening
of business on the corresponding Interest Payment Date shall be required to pay the Company an amount equal to the interest on the principal amount of such Security so converted, which is payable by the Company to such Holder on such Interest
Payment Date, at the time such Holder surrenders such Security for Conversion. 
  
 2. Method of Payment. 
  
 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. 
  
 Principal of, and premium, if any, and
interest on, Global Securities will be payable to the Depositary in immediately available funds. 
  

 A-4 

 Principal and premium, if any, on Physical Securities will be payable at the office or agency of the
Company maintained for such purpose, initially the Corporate Trust Office of the Trustee. Interest on Physical Securities will be payable by (i) U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Person
entitled thereto as such address shall appear in the Register, or (ii) upon application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount in excess of $5,000,000, wire transfer in immediately
available funds. 
  
 3. Paying Agent and Registrar. 
  
 Initially, U.S. Bank National Association, the Trustee under the Indenture,
will act as Paying Agent and Registrar. The Company may change the Paying Agent or Registrar without notice to any Holder. 
  
 4. Indenture. 
  
 The Company issued this Security under an Indenture, dated as of _________, 2006 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The terms of
the Security include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”). This Security is subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture shall control.

  
 5. Repurchase Right Upon a Change of Control. 
  
 If a Change of Control occurs, the Holder of Securities, at the
Holder’s option, shall have the right, subject to the conditions and in accordance with the provisions of the Indenture, to require the Company to repurchase the Securities (or any portion of the principal amount hereof that is at least $1,000
or an integral multiple thereof; provided that the portion of the principal amount of this Security to be Outstanding after such repurchase is at least equal to $1,000) at the Repurchase Price in cash, plus any interest accrued and unpaid to
the Repurchase Date. 
  
 Subject to the conditions provided in the
Indenture, the Company may elect to pay the Repurchase Price by delivering a number of shares of Common Stock equal to (i) the Repurchase Price divided by (ii) 95% of the average of the Closing Prices per share for the five consecutive
Trading Days immediately preceding and including the third Trading Day prior to the Repurchase Date. 
  
 No fractional shares of Common Stock will be issued upon repurchase of any Securities. Instead of any fractional share of Common Stock which would
otherwise be issued upon Conversion of such Securities, the Company shall pay a cash adjustment as provided in the Indenture. 
  

 A-5 

 A Company Notice will be given by the Company to the Holders as provided in the Indenture. To exercise a
Repurchase Right, a Holder must deliver to the Trustee a written notice as provided in the Indenture. 
  
 6. Conversion Rights. 
  
 Subject
to and upon compliance with the provisions of the Indenture, the Holder of Securities is entitled, at such Holder’s option, at any time before the close of business on August 15, 2009, to convert the Holder’s Securities (or any
portion of the principal amount hereof which is $1,000 or an integral multiple thereof), at the principal amount thereof or of such portion, into duly authorized, fully paid and nonassessable shares of Common Stock of the Company at the Conversion
Price in effect at the time of Conversion. 
  
 In the case of a
Change of Control for which the Holder exercises its Repurchase Right with respect to a Security (or a portion thereof), such Conversion right in respect of the Security (or portion thereof) shall expire at the close of business on the Business Day
preceding the Repurchase Date. 
  
 The Conversion Price shall be
initially equal to $1.1870 per share of Common Stock. 
  
 The
Conversion Price shall be adjusted under certain circumstances as provided in the Indenture. 
  
 To exercise the Conversion right, the Holder must surrender the Security (or portion thereof) duly endorsed or assigned to the Company or in blank, at the office of the Conversion Agent, accompanied by a duly signed
Conversion notice to the Company. Any Security surrendered for Conversion during the period from the close of business on any Regular Record Date to the opening of business on the corresponding Interest Payment Date (other than any Security whose
Maturity is prior to such Interest Payment Date), shall also be accompanied by payment in New York Clearing House funds or other funds acceptable to the Company of an amount equal to the interest payable on such Interest Payment Date on the
principal amount of the Securities being surrendered for Conversion. 
  
 No fractional shares of Common Stock will be issued upon Conversion of any Securities. Instead of any fractional share of Common Stock which would otherwise be issued upon Conversion of such Securities, the Company shall pay a cash
adjustment as provided in the Indenture. 
  
 Subject to the
provisions of the Indenture, if the daily volume-weighted average price of the Common Stock has exceeded 150% of the Conversion Price then in effect for at least 20 Trading Days during any 30 Trading Day period, ending within five Trading Days prior
to the date of the Auto-Conversion Notice, the Company may elect, at its sole option, at any time after the original issuance of the Debentures through the close of business on the final maturity date of the Debentures, to convert automatically all
of the Debentures or any portion of the principal 

  

 A-6 

 
amount thereof that is $1,000 or an integral multiple of $1,000, into that number of fully paid and non-assessable shares of Common Stock (as such shares
shall then be constituted) obtained by dividing the principal amount of the Debentures or portion thereof to be converted by the Conversion Price in effect at the time of such election, and in no event shall the Company be entitled to effect any
Auto-Conversion of greater than twenty-five percent (25%) of the aggregate principal amount of the Debentures issued under this Indenture; provided that no Auto-Conversion may be effected unless at least 30 Trading Days shall have
elapsed since the previous Auto-Conversion . Any Auto-Conversion of less than all of the Debentures will be made on a pro rata basis with reference to the aggregate principal amount held by all holders of the Debentures on the Auto-Conversion Date,
rounded up to the amount of $1,000 in principal amount on a holder-by-holder basis. 
  
 The Company shall pay any interest accrued but not paid to, but excluding, the Auto-Conversion Date on any Debentures Auto-Converted. Such interest shall be paid to the Holders of the Debentures called for
Auto-Conversion; provided, however, that, if the Auto-Conversion Date is an Interest Payment Date, the Company shall pay such interest to the Holders at the close of business on the corresponding Regular Record Date. 
  
 The Company shall mail or cause to be mailed an Auto-Conversion Notice not
more than thirty (30) days but not less than five (5) days before the Auto-Conversion Date to such holders at their last addresses as they shall appear upon the Register. Such Auto-Conversion Notice shall be irrevocable. 
  
 7. Subordination. 
  
 The Indebtedness evidenced by this Security is, to the extent and in the manner provided in the Indenture, subordinated and
subject in right of payment to the prior payment in full of all amounts then due on all Senior Debt of the Company, and this Security is issued subject to such provisions of the Indenture with respect thereto. Each Holder of this Security, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination so provided
and (c) appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes. 
  
 8. Denominations; Transfer; Exchange. 
  
 The Securities are issuable in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer or exchange of Securities in accordance with the Indenture.
The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. 
  
 In the event of Conversion or repurchase of the Securities in part only, a
new Security or Securities for the unconverted or unrepurchased portion thereof will be issued in the name of the Holder hereof. 
  

 A-7 

 9. Persons Deemed Owners. 
  
 The registered Holder of this Security shall be treated as its owner for all purposes. 
  
 10. Unclaimed Money. 
  
 The Trustee and the Paying Agent shall pay to the Company any money held by them for the payment of principal, premium, if any, or interest that remains
unclaimed for two years after the date upon which such payment shall have become due. After payment to the Company, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law
designates another Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease. 
  
 11. Discharge Prior to Maturity. 
  
 Subject to certain conditions contained in the Indenture, the Company may discharge its obligations under the Securities and the Indenture if (1) all
of the Outstanding Securities shall become due and payable at their scheduled Maturity within one year, and (2) the Company shall have deposited with the Trustee money and/or U.S. Government Obligations sufficient to pay the principal of, and
premium, if any, and interest on, all of the Outstanding Securities on the date of Maturity. 
  
 12. Amendment; Supplement; Waiver. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Outstanding Securities (or such lesser amount as shall have acted at a meeting pursuant to the provisions of the Indenture). The Indenture
also contains provisions permitting the Holders of specified percentages in principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the 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 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 or such other Security. 
  
 No reference herein to the Indenture and no provision of this Security or of
the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Security at the times, places and rate, and in the coin or currency, herein
prescribed or to convert this Security (or pay cash in lieu of Conversion) as provided in the Indenture. 
  

 A-8 

 13. Defaults and Remedies. 
  
 The Indenture provides that an Event of Default with respect to the Securities occurs when any of the following occurs: 
  
 (a) default in the payment of interest on any of the Securities when due and
payable and continuance of such default for a period of 30 days; or 
  
 (b) default in the payment of principal of (or premium, if any, on) any of the Securities at its Stated Maturity, upon acceleration or otherwise; or 
  
 (c) default in the payment of principal or interest on any of the Securities required to be purchased pursuant to a Repurchase Right; 
  
 (d) default in the performance or breach of any covenant or agreement of the
Company in this Indenture or under the Securities (other than a default in the performance, or breach, of a covenant or agreement specified in the preceding clause (a), (b) or (c)), and continuance of such default or breach for a period of 30
consecutive 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 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; 
  
 (e) there occurs with respect to any issue or issues of Indebtedness of the Company or any Restricted Subsidiary having an outstanding principal amount of
$25.0 million or more in the aggregate for all such issues of all such Persons, whether such Indebtedness now exists or shall hereafter be created, (I) an event of default that has caused the holder thereof to declare such Indebtedness to be
due and payable prior to its Stated Maturity and such Indebtedness has not been discharged in full or such acceleration has not been rescinded or annulled by the earlier of (x) the expiration of any applicable grace period or (y) the
thirtieth day after such default; and/or (II) the failure to make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall not have been made, waived or extended by the earlier of (x) the expiration
of any applicable grace period or (y) the thirtieth day after such default; 
  
 (f) any final judgment or order (not covered by insurance) for the payment of money in excess of $25.0 million in the aggregate for all such final judgments or orders (treating any deductibles, self-insurance or
retention as not so covered) shall be rendered against the Company or any Restricted Subsidiary and shall not be paid or discharged, and there shall be any period of 30 consecutive days following entry of the final judgment or order that causes the
aggregate amount for all such final judgments or orders outstanding and not paid or discharged against all such Persons to exceed $25.0 million during which a stay of enforcement of such final judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; 
  
 (g) there are certain
events of bankruptcy, insolvency or reorganization of the Company or any Significant Subsidiary. If an Event of Default shall occur and be continuing, the 

  

 A-9 

 
principal of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
  
 14. Authentication. 
  
 This Security shall not be valid until the Trustee (or authenticating agent) executes the certificate of authentication on
the other side of this Security. 
  
 15. Abbreviations. 
  
 Customary abbreviations may be used in the name of a Holder or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 16. CUSIP Numbers. 
  
 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on this Security and the Trustee may use CUSIP numbers in notices of Conversion as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on this Security or as
contained in any notice of Conversion and reliance may be placed only on the other identification numbers placed thereon. 
  
 17. Governing Law. 
  
 The Indenture and this Security shall be governed by, and construed in accordance with, the law of the State of New York. 
  
 18. Successor Corporation. 
  
 In the event a successor corporation assumes all the obligations of the Company under this Security, pursuant to the terms
hereof and of the Indenture, the Company will be released from all such obligations. 
  

 A-10 

 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this Security to: 
  
 ___________________________________________________________________________________________________________ 
  
 (Insert assignee’s soc. sec. or tax I.D. no.) 
  
 ____________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________ 
  
 ____________________________________________________________________________________________________________ 
 (Print or type
assignee’s name, address and zip code) 
  
 and irrevocably
appoint________________________________________________________ to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

									
			
	 Dated:
                                
	 	 	 	 Your Name:
                                        
                                    

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

				
	 	 	 	 	 	 	 Your Signature:
                                        
                                

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

				
	 	 	 	 	 	 	 Signature Guarantee*:
                                        
                

			
	 Dated:
                                
	 	 	 	 ________________________________________________

	 	 	 	 	 	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any
change whatsoever.
				
	 	 	 	 	 	 	 Signature Guarantee:

				
	 	 	 	 	 	 	 ________________________________________________

				
	 	 	 	 	 	 	 Signature must be guaranteed by a participant in a recognized
 signature guaranty medallion program or other signature
 guarantor acceptable to the Trustee.

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-11 

 CONVERSION NOTICE 
  

	TO:	PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED 

 7901 Jones
Branch Drive, Suite 900 
 McLean, Virginia 22102 
  
 The undersigned registered owner of this Security hereby irrevocably exercises the option to convert this Security, or the portion hereof (which is $1,000
principal amount or an integral multiple thereof) below designated, into shares of Common Stock in accordance with the terms of the Indenture referred to in this Security, and directs that the shares issuable and deliverable upon such conversion,
together with any check in payment for fractional shares and any Securities representing any unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless a different name has been indicated below. If shares or
any portion of this Security not converted are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. To the extent provided in the Indenture, any amount required to
be paid to the undersigned on account of interest, accompanies this Security. 
  

									
			
	 Dated:
                    
	 	 	 	 Your Name:
                                        
                                    

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

				
	 	 	 	 	 	 	 Your Signature:
                                        
                                

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

				
	 	 	 	 	 	 	 Signature Guarantee*:
                                        
                

				
	 	 	 	 	 	 	 Social Security or other Taxpayer Identification

	 	 	 	 	 	 	 Number:
                                        
                                       
 

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

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-12 

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

 (Name) 
  
 ______________________________________________________ 
 (Street Address) 
  
 ______________________________________________________ 
 (City, State and Zip Code) 
  

 A-13 

 NOTICE OF EXERCISE OF REPURCHASE RIGHT 
  

	TO:	PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED 

 7901 Jones
Branch Drive, Suite 900 
 McLean, Virginia 22102 
  
 The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from Primus Telecommunications Group, Inc. (the
“Company”) as to the occurrence of a Change of Control with respect to the Company and requests and instructs the Company to repay the entire principal amount of this Security, or the portion thereof (which is $1,000 principal amount or an
integral multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Security, together with interest accrued and unpaid to, but excluding, such date, to the registered holder hereof. 
  

									
			
	 Dated:
                    
	 	 	 	 Your Name:
                                        
                                    

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

				
	 	 	 	 	 	 	 Your Signature:
                                        
                                

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

				
	 	 	 	 	 	 	 Signature Guarantee*:
                                        
                

				
	 	 	 	 	 	 	 Social Security or other Taxpayer Identification

	 	 	 	 	 	 	 Number:
                                        
                                       
 

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

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-14 

 SCHEDULE OF EXCHANGES FOR PHYSICAL SECURITIES2  
  
 The following exchanges of a part of this Global Security for Physical Securities have been made: 
  

									
	 Date of Exchange

	 	 Amount of decrease in
Principal Amount of this
Global Security

	 	 Amount of increase in
Principal Amount of this
Global Security

	 	 Principal Amount of this
Global Security following
such decrease (or increase)

	 	 Signature of authorized
officer of Trustee

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

	2	This schedule should be included only if the Security is issued in global form. 

  

 A-15EXHIBIT 4.3

 Exhibit 4.3 
  

Primus Telecommunications Group, 
 Incorporated 
 7901 Jones Branch Drive 
 Suite 900 
 McLean, VA 22102 
 (703) 902-2800 
  
 February
            , 2006 
  
 __________________________ 
 __________________________ 
 __________________________ 
 Attention: __________________ 
  

	 	Re:	Exchange of 5 3/4% Convertible
Subordinated Debentures due 2007 of Primus Telecommunications Group, Incorporated 

  
 Dear Ladies and Gentlemen: 
  
 The purpose of this letter agreement (this “Agreement”) is to confirm the agreement of Primus Telecommunications Group, Incorporated
(“Primus”),                                     ,
                            ,
                            ,
                             and
                             (individually, each “Holder” and, collectively,
“Holders”), the terms and conditions of which agreement are as follows: 
  
 1. Exchange of Debentures. 
  
 (a) At the Closing (as defined below), each Holder shall exchange, or cause to be exchanged (“the Exchange”), the principal amount of Primus’s 5 3/4% Convertible Subordinated Debentures due 2007 (the “Old Debentures”) set forth next to such Holder’s name on Schedule 1(a)(x) for an
equal principal amount of Primus’s Step Up Convertible Subordinated Debentures due 2009 (the “New Debentures”) which shall be issued under that certain Indenture dated as of February
            , 2006 by and between Primus and U.S. Bank National Association, and Primus shall issue, or cause to be issued, to each Holder the principal amount of New Debentures set
forth next to such Holder’s name accordance with the allocation set forth on Schedule 1(a)(x). 
  
 (b) The New Debentures shall not be “restricted securities,” as defined in Rule 144 under the Securities Act of 1933, as amended
(the “Securities Act”), shall be unrestricted and freely transferable, and shall bear no legend indicating otherwise. 

 2. Representations and Warranties. 
  
 (a) Holder hereby represents and warrants to Primus as follows: 
  
 (i) Holders approached Primus and initiated negotiations
with Primus regarding the Exchange. Prior to Holders’ initiation of such negotiations, neither Primus nor anyone acting on Primus’s behalf approached any Holder regarding the Exchange. 
  
 (ii) No Holder knows of any reason why the New Debentures
cannot be issued under the exemption from registration provided by Section 3(a)(9) of the Securities Act. 
  
 (iii) Each Holder has had such opportunity as it has deemed adequate to obtain from representatives of Primus such information as is
necessary to permit Holder to evaluate the merits and risks of the exchange contemplated hereby. 
  
 (iv) Each Holder has sufficient experience and ability in business, financial and investment matters to evaluate the risks associated with
the Exchange and the New Debentures and to make an informed investment decision with respect to the Exchange and the New Debentures and has, in fact, evaluated such risks and made such an informed decision. 
  
 (v) Each Holder has obtained all approvals or consents
necessary or advisable, if any, in connection with such Holder’s consummation of the Exchange. 
  
 (vi) No Holder is, nor has any Holder been within the past three months, an “affiliate” of Primus, as that term is defined in
paragraph (a)(1) of Rule 144 promulgated under the Securities Act. 
  
 (vii) Each Holder has full legal right and all requisite power, and has been duly authorized, to execute, deliver and perform this Agreement and the transactions contemplated hereby. This Agreement constitutes a valid
and binding obligation of Holder enforceable in accordance with its terms. 
  
 (viii) No Holder or any affiliate of a Holder is a “beneficial owner” (as defined in Rule 13d-3(a) promulgated under the Securities Exchange Act of 1934, as amended) of shares of Primus’s common stock
or securities that are convertible into Primus’s common stock, other than the Old Debentures identified on Schedule 1(a)(x). As of the date of this Agreement, no Holder has any intention of acquiring any shares of Primus’s common
stock, or securities convertible into shares of Primus’s common stock, other than the New Debentures issuable to such Holder under the terms of this Agreement. 
  
 (b) Primus hereby represents and warrants to Holders as follows: 
  
 (i) Primus did not approach any Holder and did not initiate
negotiations with any Holder regarding the Exchange. Prior to Holders’ initiation of negotiations with Primus, neither Primus nor anyone acting on Primus’s behalf approached any Holder regarding the Exchange. 
  

 2 

 (ii) Primus knows of no reason why the New Debentures cannot be issued under the
exemption from registration provided by Section 3(a)(9) of the Securities Act. 
  
 (iii) Primus has obtained all approvals or consents necessary or advisable, if any, in connection with Primus’s consummation of the
Exchange. 
  
 (iv) Primus has full legal right
and all requisite power, and has been duly authorized, to execute, deliver and perform this Agreement and the transactions contemplated hereby. This Agreement constitutes a valid and binding obligation of Primus enforceable in accordance with its
terms. 
  
 3. Closing. The closing of the Exchange will
occur on February             , 2006 at 3:00 p.m. New York City time at the offices of Wilmer Cutler Pickering Hale and Dorr LLP, 1899 Pennsylvania Avenue, N.W., Washington, D.C.
20006. 
  
 4. Entire Agreement. This Agreement represents
the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior oral and written, and all contemporaneous oral, negotiations, commitments and understandings between such parties.
The parties may amend or modify this Agreement, in such manner as may be agreed upon, only by a written instrument executed by the parties hereto. 
  
 5. Expenses. Each party shall pay its own expenses in connection with this Agreement and the transactions contemplated hereby. 
  
 6. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York. 
  
 7.
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
  
 8. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an
original, but all of which shall be one and the same document. Any signature delivered by facsimile machine or email transmission shall be binding and enforceable to the same extent as original signature. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 3 

 Please confirm your agreement by signing in the space indicated below. 
  

			
	 Very truly yours,

	
	 PRIMUS TELECOMMUNICATIONS GROUP,
 INCORPORATED

		
	By:	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  

 4 

									
	 ACCEPTED AND AGREED:
	 	 	 	 
			
	 	 	 	 	 
					
	By:	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
					
	 Date:
	 	 	 	 	 	 Date:
	 	 
				
	 	 	 	 	 	 	 
			
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 By:
	 	 	 	 	 	 By:
	 	 
					
	 Name:
	 	 	 	 	 	 Name:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
					
	 Date:
	 	 	 	 	 	 Date:
	 	 
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
					
	 By:
	 	 	 	 	 	 	 	 
					
	 Name:
	 	 	 	 	 	 	 	 
					
	 Title:
	 	 	 	 	 	 	 	 
					
	 Date:
	 	 	 	 	 	 	 	 

  

 5 

 Schedule 1(a)(x) 
  
 Ownership of Old Debentures and New Debentures to be Issued 
  

					
	 Holder

	  	 Ownership of Old
 Debentures

	  	 New Debentures
 to be Issued

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]