Document:

DOLLAR GENERAL CORPORATION

DOLLAR GENERAL CORPORATION

1998 STOCK INCENTIVE PLAN

(As Amended and Restated Effective as of June 2, 2003)

SECTION 1.  Purpose; Definitions.  The purpose of the Dollar General Corporation 1998 Stock Incentive Plan (the “Plan”) is to enable Dollar General Corporation (the “Corporation”) to attract, retain and reward key employees of and consultants to the Corporation and its Subsidiaries and Affiliates, and directors who are not also employees of the Corporation, and to strengthen the mutuality of interests between such key employees, consultants, and directors by awarding such key employees, consultants, and directors performance-based stock incentives and/or other equity interests or equity-based incentives in the Corporation, as well as performance-based incentives payable in cash.  The provisions of the Plan are intended to satisfy the requirements of Section 16(b) of the Exchange Act, and shall be interpreted in a manner consistent with the requirements thereof, as now or hereafter construed, interpreted, and applied by regulations, rulings, and cases.  The Plan is also designed so that awards granted hereunder intended to comply with the requirements for “performance-based” compensation under Section 162(m) of the Code may comply with such requirements.  The creation and implementation of the Plan will not diminish or prejudice other compensation plans or programs approved from time to time by the Board.

For purposes of the Plan, the following terms shall be defined as set forth below:

A.

“Affiliate” means any entity other than the Corporation and its Subsidiaries that is designated by the Board as a participating employer under the Plan, provided that the Corporation directly or indirectly owns at least 20% of the combined voting power of all classes of stock of such entity or at least 20% of the ownership interests in such entity.

B.

“Board” means the Board of Directors of the Corporation.

C.

“Cause” has the meaning provided in Section 5(j) of the Plan.

D.

“Change in Control” has the meaning provided in Section 9(b) of the Plan.

E.

“Change in Control Price” has the meaning provided in Section 9(d) of the Plan.

F.

“Common Stock” means the Corporation’s Common Stock, $.50 par value per share.

G.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

H.

“Committee” means the Committee referred to in Section 2 of the Plan.

I.

“Corporation” means Dollar General Corporation, a corporation organized under the laws of the State of Tennessee, or any successor corporation.

J.

“Disability” means disability as determined under the Corporation’s Group Long Term Disability Insurance Plan.

K.

“Dividend Equivalents” means an amount equal to the cash dividends paid by the Corporation upon one share of Common Stock for each Restricted Unit or property distributions awarded to a Participant in accordance with Section 7 or 8 of the Plan.

L.

“Early Retirement” means retirement, for purposes of this Plan with the express consent of the Corporation at or before the time of such retirement, from active employment with the Corporation and any Subsidiary or Affiliate prior to age 65, in accordance with any applicable early retirement policy of the Corporation then in effect or as may be approved by the Committee.

M.

“Effective Date” has the meaning provided in Section 13 of the Plan.

N.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.

O.

“Fair Market Value” means with respect to the Common Stock, as of any given date or dates, unless otherwise determined by the Committee in good faith, the reported closing price of a share of Common Stock on the NYSE or such other market or exchange as is the principal trading market for the Common Stock, or, if no such sale of a share of Common Stock is reported on NYSE or other exchange or principal trading market on such date, the fair market value of a share of Common Stock as determined by the Committee in good faith.

P.

“Incentive Stock Option” means any Stock Option intended to be and designated as an “Incentive Stock Option” within the meaning of Section 422 of the Code.

Q.

“Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive relationships.

R.

“Non-Employee Director” means a member of the Board who is a Non-Employee Director within the meaning of Rule 16b-3(b)(3) promulgated under the Exchange Act and an outside director within the meaning of Treasury Regulation Sec. 162-27(e)(3) promulgated under the Code.

S.

“Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

T.

“Normal Retirement” means retirement from active employment with the Corporation and any Subsidiary or Affiliate on or after age 65.

U.

“NYSE” means the New York Stock Exchange.

V.

“Outside Director” means a member of the Board who is not an officer or employee of the Corporation or any Subsidiary or Affiliate of the Corporation.

W.

“Outside Director Option” means an award to an Outside Director under Section 8(b) below.

X.

“Outside Director Restricted Unit Award” means an award to an Outside Director under Section 8(c) below.

Y.

“Performance Goals” means performance goals based on one or more of the following criteria: (i) pre-tax income or after-tax income; (ii) operating cash flow; (iii) operating profit; (iv) return on equity, assets, capital, or investment; (v) earnings or book value per share; (vi) sales or revenues; (vii) operating expenses; (viii) Common Stock price appreciation; and (ix) implementation, management, or completion of critical projects or processes.  Where applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Corporation or any Subsidiary, or a division or strategic business unit of the Corporation, or may be applied to the performance of the Corporation relative to a market index, a group of other companies, or a combination thereof, all as determined by the Committee.  The Performance Goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur).  Each of the foregoing Performance Goals shall be determined, to the extent applicable, in accordance with generally accepted accounting principles and shall be subject to certification by the Committee.

Z.

“Plan” means this Dollar General Corporation 1998 Stock Incentive Plan, as amended from time to time.

AA.

“Restricted Stock” means an award of shares of Common Stock that is subject to restrictions under Section 7 of the Plan.

BB.

“Restricted Unit” means the right to receive, pursuant to the Plan, one share of Common Stock at the end of a specified period of time, which right is subject to forfeiture in accordance with Section 7 or 8 of the Plan.

CC.

“Restriction Period” has the meaning provided in Section 7 of the Plan.

DD.

“Retirement” means Normal or Early Retirement.

EE.

“Section 162(m) Maximum” has the meaning provided in Section 3(a) hereof.

FF.

“Stock Appreciation Right” means the right pursuant to an award granted under Section 6 below to surrender to the Corporation all (or a portion) of a Stock Option in exchange for an amount equal to the difference between (i) the Fair Market Value, as of the date such Stock Option (or such portion thereof) is surrendered, of the shares of Common Stock covered by such Stock Option (or such portion thereof), subject, where applicable, to the pricing provisions in Section 6(b)(ii), and (ii) the aggregate exercise price of such Stock Option (or such portion thereof).

GG.

“Stock Option” or “Option” means any option to purchase shares of Common Stock (including Restricted Stock, if the Committee so determines) granted pursuant to Section 5 below.

HH.

“Subsidiary” means any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.

SECTION 2.  Administration.  Except as provided below, the Plan shall be administered by a Committee of not less than two Non-Employee Directors, who shall be appointed by the Board and who shall serve at the pleasure of the Board.  The functions of the Committee specified in the Plan may be exercised by an existing Committee of the Board composed exclusively of Non-Employee Directors.  The initial Committee shall be the Corporate Governance and Compensation Committee of the Board.  In the event there are not at least two Non-Employee Directors on the Board, the Plan shall be administered by the Board and all references herein to the Committee shall refer to the Board.

The Committee shall have the power to delegate authority to the Corporation’s Chief Executive Officer, or to a committee composed of executive officers of the Corporation, to grant, on behalf of the Committee, Non-Qualified Stock Options exercisable at Fair Market Value on the date of grant, subject to such guidelines as the Committee may determine from time to time; provided, however that (i) options may only be granted pursuant to such delegated authority for the purposes specified by the Committee, which may include attracting new employees, awarding outstanding performance, or retaining employees, (ii) the Committee shall specify the maximum number of shares that may be granted for purposes of attracting any single new employee at any specified level and the maximum number that may be granted to any other employee for any other purpose, and (iii) a report of each grant of an option pursuant to such delegated authority shall be presented to the Committee at the first meeting of the Committee following such grant.  Options granted pursuant to such delegated authority in accordance herewith shall be deemed, to the extent permitted under applicable law, to have been granted by the Committee for all purposes under the Plan.

The Committee shall have authority to grant, pursuant to the terms of the Plan, to officers, other key employees and consultants eligible under Section 4: (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock, and/or (iv) Restricted Units.

In particular, the Committee, or the Board, as the case may be, shall have the authority, consistent with the terms of the Plan:

(a)

to select the officers, key employees of and consultants to the Corporation and its Subsidiaries and Affiliates to whom Stock Options, Stock Appreciation Rights, Restricted Stock, and/or Restricted Units may from time to time be granted hereunder;

(b)

to determine whether and to what extent Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock, and/or Restricted Units or any combination thereof, are to be granted hereunder to one or more eligible persons;

(c)

to determine the number of shares to be covered by each such award granted hereunder;

(d)

to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder (including, but not limited to, the share price and any restriction or limitation, or any vesting acceleration or waiver of forfeiture restrictions regarding any Stock Option or other award and/or the shares of Common Stock relating thereto, based in each case on such factors as the Committee shall determine, in its sole discretion); and to amend or waive any such terms and conditions to the extent permitted by Section 10 hereof;

(e)

to determine whether and under what circumstances a Stock Option may be settled in cash or Restricted Stock under Section 5(l) or (m), as applicable, instead of Common Stock;

(f)

to determine whether, to what extent, and under what circumstances Option grants and/or other awards under the Plan are to be made, and operate, on a tandem basis vis-à-vis other awards under the Plan and/or cash awards made outside of the Plan;

(g)

to determine whether, to what extent, and under what circumstances shares of Common Stock and other amounts payable with respect to an award under this Plan shall be deferred either automatically or at the election of the participant (including providing for and determining the amount (if any) of any deemed earnings on any deferred amount during any deferral period);

(h)

to determine the terms, conditions, and restrictions of any Performance Goals and the number of Options, Stock Appreciation Rights, shares of Restricted Stock, or Restricted Units subject thereto;

(i)

to determine whether to require payment of tax withholding requirements in shares of Common Stock subject to the award; and

(j)

to impose any holding period required to satisfy Section 16 under the Exchange Act.

The Committee shall have the authority to adopt, alter, and repeal such rules, guidelines, and practices governing the Plan as it shall, from time to time, deem advisable; to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan; and, except as expressly set forth herein or otherwise required by law, all decisions made by the Committee pursuant to the provisions of the Plan shall be made in the Committee’s sole discretion and shall be final and binding on all persons, including the Corporation and Plan participants.

SECTION 3.

Shares of Common Stock Subject to Plan.  (a) As of the Effective Date, the aggregate number of shares of Common Stock that may be issued under the Plan shall be 29,375,000 shares.  The shares of Common Stock issuable under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.  No officer of the Corporation or other person whose compensation may be subject to the limitations on deductibility under Section 162(m) of the Code shall be eligible to receive awards pursuant to this Plan relating to in excess of 500,000 shares of Common Stock in any fiscal year (the “Section 162(m) Maximum”).

(b)

If any shares of Common Stock that have been optioned cease to be subject to a Stock Option, or if any shares of Common Stock that are subject to any Restricted Stock granted hereunder are forfeited prior to the payment of any dividends, if applicable, with respect to such shares of Common Stock, or if any shares of Common Stock that are subject to any Restricted Units granted hereunder are forfeited, or any such award otherwise terminates without a payment being made to the participant in the form of Common Stock, such shares shall again be available for distribution in connection with future awards under the Plan.

(c)

In the event of any merger, reorganization, consolidation, recapitalization, extraordinary cash dividend, stock dividend, stock split or other change in corporate structure affecting the Common Stock, an appropriate substitution or adjustment shall be made in the maximum number of shares that may be awarded under the Plan, in the number and option price of shares subject to outstanding Options granted under the Plan, in the Performance Goals, in the number of shares underlying Outside Director Options and Outside Director Restricted Units to be granted under Section 8 hereof and in the number of Restricted Units outstanding, in the Section 162(m) Maximum, and in the number of shares subject to other outstanding awards granted under the Plan as may be determined to be appropriate by the Committee, in its sole discretion, provided that the number of shares subject to any award shall always be a whole number.  An adjusted option price shall also be used to determine the amount payable by the Corporation upon the exercise of any Stock Appreciation Right associated with any Stock Option.

SECTION 4.

Eligibility.  Officers, other key employees and Outside Directors of and consultants to the Corporation and its Subsidiaries and Affiliates who are responsible for or contribute to the management, growth and/or profitability of the business of the Corporation and/or its Subsidiaries and Affiliates are eligible to be granted awards under the Plan.  Outside Directors are eligible to receive awards pursuant to Section 8 and not pursuant to any other provisions of the Plan.

SECTION 5.

Stock Options.  Stock Options may be granted alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan.  Any Stock Option granted under the Plan shall be in such form as the Committee may from time to time approve.

Stock Options granted under the Plan may be of two types:  (i) Incentive Stock Options and (ii) Non-Qualified Stock Options.  Incentive Stock Options may be granted only to individuals who are employees of the Corporation or any Subsidiary of the Corporation.  No Incentive Stock Option shall be granted on or following the tenth anniversary of the earlier of (i) the effectiveness of the Plan or (ii) the date of shareholder approval of the Plan.

The Committee shall have the authority to grant to any optionee Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options (in each case with or without Stock Appreciation Rights).

Options granted to officers, key employees, Outside Directors and consultants under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable:

(a)

Option Price.  The option price per share of Common Stock purchasable under a Stock Option shall be determined by the Committee at the time of grant but shall be not less than 100% (or, in the case of any employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Corporation or of any of its Subsidiaries, not less than 110%) of the Fair Market Value of the Common Stock at grant.  Except as provided in Section 3(c), the Committee shall not have the power or authority to reduce, whether through amendment or otherwise, the exercise price of any outstanding Stock Option without prior shareholder approval.

(b)

Option Term.  The term of each Stock Option shall be fixed by the Committee, but no Stock Option (Incentive or Non-Qualified) shall be exercisable more than ten years (or, in the case of an employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Corporation or any of its Subsidiaries or parent corporations, no Incentive Stock Option shall be exercisable more than five years) after the date the Option is granted.

(c)

Exercisability.  Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee at or after grant; provided however, that Stock Options shall have a minimum vesting period of six months from the date of grant.  The Committee may provide that a Stock Option shall vest over a period of future service at a rate specified at the time of grant, or that the Stock Option is exercisable only in installments.  If the Committee provides, in its sole discretion, that any Stock Option is exercisable only in installments, the Committee may waive such installment exercise provisions at any time at or after grant, in whole or in part, based on such factors as the Committee shall determine in its sole discretion.

(d)

Method of Exercise.  Subject to whatever installment exercise restrictions apply under Section 5(c), Stock Options may be exercised in whole or in part at any time during the option period, by giving written notice of exercise to the Corporation specifying the number of shares to be purchased.  As determined by the Committee, in its sole discretion, at or (except in the case of an Incentive Stock Option) after grant, payment in full or in part may also be made in the form of shares of Common Stock already owned by the optionee or, in the case of a Non-Qualified Stock Option, shares of Restricted Stock or (to the extent approved by the Committee prior to April 9, 2003) shares subject to such Option or another award hereunder (in each case valued at the Fair Market Value of the Common Stock on the date the Option is exercised).  If payment of the exercise price is made in part or in full with Common Stock, the Committee may award to the employee a new Stock Option to replace the Common Stock which was surrendered.  If payment of the option exercise price of a Non-Qualified Stock Option is made in whole or in part in the form of Restricted Stock, such Restricted Stock (and any replacement shares relating thereto) shall remain (or be) restricted in accordance with the original terms of the Restricted Stock award in question, and any additional Common Stock received upon the exercise shall be subject to the same forfeiture restrictions, unless otherwise determined by the Committee, in its sole discretion, at or after grant.  No shares of Common Stock shall be issued until full payment therefor (either by check, note, or such other instrument as the Committee may accept) has been made.  An optionee shall generally have the rights to dividends or other rights of a shareholder with respect to shares subject to the Option when the optionee has given written notice of exercise, has paid in full for such shares, and, if requested, has given the representation described in Section 12(a).

(e)

Transferability of Options.  No Non-Qualified Stock Option shall be transferable by the optionee without the prior written consent of the Committee other than (i) transfers by the Optionee to a member of his or her Immediate Family or a trust for the benefit of the optionee or a member of his or her Immediate Family, or (ii) transfers by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order.  No Incentive Stock Option shall be transferable by the optionee otherwise than by will or by the laws of descent and distribution and all Incentive Stock Options shall be exercisable, during the optionee’s lifetime, only by the optionee.

(f)

Bonus for Taxes.  In the case of a Non-Qualified Stock Option or an optionee who elects to make a disqualifying disposition (as defined in Section 422(a)(1) of the Code) of Common Stock acquired pursuant to the exercise of an Incentive Stock Option, the Committee in its discretion may award at the time of grant or thereafter the right to receive upon exercise of such Stock Option a cash bonus calculated to pay part or all of the federal and state, if any, income tax incurred by the optionee upon such exercise.

(g)

Termination by Death.  Subject to Section 5(k), if an optionee’s employment by the Corporation and any Subsidiary or (except in the case of an Incentive Stock Option) Affiliate terminates by reason of death, any Stock Option held by such optionee may thereafter be exercised, to the extent such option was exercisable at the time of death or on such accelerated basis as the Committee may determine at or after grant (or as may be determined in accordance with procedures established by the Committee) by the legal representative of the estate or by the legatee of the optionee under the will of the optionee, for a period of three years (or such other period as the Committee may specify at or after grant) from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is the shorter.

(h)

Termination by Reason of Disability.  Subject to Section 5(k), if an optionee’s employment by the Corporation and any Subsidiary or (except in the case of an Incentive Stock Option) Affiliate terminates by reason of Disability, any Stock Option held by such optionee may thereafter be exercised by the optionee, to the extent it was exercisable at the time of termination or (except in the case of an Incentive Stock Option) on such accelerated basis as the Committee may determine at or after grant (or, except in the case of an incentive Stock Option, as may be determined in accordance with procedures established by the Committee), for a period of (i) three years (or such other period as the Committee may specify at or after grant) from the date of such termination of employment or until the expiration of the stated term of such Stock Option, whichever period is the shorter, in the case of a Non-Qualified Stock Option and (ii) one year from the date of termination of employment or until the expiration of the stated term of such Stock Option, whichever period is shorter, in the case of an Incentive Stock Option; provided however, that, if the optionee dies within the period specified in (i) above (or other such period as the Committee shall specify at or after grant), any unexercised Non-Qualified Stock Option held by such optionee shall thereafter be exercisable to the extent to which it was exercisable at the time of death for a period of twelve months from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is shorter.  In the event of termination of employment by reason of Disability, if an Incentive Stock Option is exercised after the expiration of the exercise period applicable to Incentive Stock Options, but before the expiration of any period that would apply if such Stock Option were a Non-Qualified Stock Option, such Stock Option will thereafter be treated as a Non-Qualified Stock Option.

(i)

Termination by Reason of Retirement.  Subject to Section 5(k), if an optionee’s employment by the Corporation and any Subsidiary or (except in the case of an Incentive Stock Option) Affiliate terminates by reason of Normal or Early Retirement, any Stock Option held by such optionee may thereafter be exercised by the optionee, to the extent it was exercisable at the time of such Retirement or (except in the case of an Incentive Stock Option) on such accelerated basis as the Committee may determine at or after grant (or, except in the case of an Incentive Stock Option, as may be determined in accordance with procedures established by the Committee), for a period of (i) three years (or such other period as the Committee may specify at or after grant) from the date of such termination of employment or the expiration of the stated term of such Stock Option, whichever period is the shorter, in the case of a Non-Qualified Stock Option and (ii) three months from the date of such termination of employment or the expiration of the stated term of such Stock Option, whichever period is the shorter, in the event of an Incentive Stock Option; provided however, that, if the optionee dies within the period specified in (i) above (or other such period as the Committee shall specify at or after grant), any unexercised Non-Qualified Stock Option held by such optionee shall thereafter be exercisable to the extent to which it was exercisable at the time of death for a period of twelve months from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is shorter.  In the event of termination of employment by reason of Retirement, if an Incentive Stock Option is exercised after the expiration of the exercise period applicable to Incentive Stock Options, but before the expiration of the period that would apply if such Stock Option were a Non-Qualified Stock Option, the option will thereafter be treated as a Non-Qualified Stock Option.

(j)

Other Termination.  Subject to Section 5(k), unless otherwise determined by the Committee (or pursuant to procedures established by the Committee) at or (except in the case of an Incentive Stock Option) after grant, if an optionee’s employment by the Corporation and any Subsidiary or (except in the case of an Incentive Stock Option) Affiliate is involuntarily terminated for any reason other than death, Disability or Normal or Early Retirement, the Stock Option shall thereupon terminate, except that such Stock Option may be exercised, to the extent otherwise then exercisable, for the lesser of three months or the balance of such Stock Option’s term if the involuntary termination is without Cause.  For purposes of this Plan, “Cause” means (i) a felony conviction of a participant or the failure of a participant to contest prosecution for a felony, or (ii) a participant’s willful misconduct or dishonesty, which is directly and materially harmful to the business or reputation of the Corporation or any Subsidiary or Affiliate, in each case as determined by the Committee, in its sole direction.  Unless otherwise determined by the Committee, if an optionee voluntarily terminates employment with the Corporation and any Subsidiary or (except in the case of an Incentive Stock Option) Affiliate (except for Disability, Normal or Early Retirement), the Stock Option shall thereupon terminate; provided, however, that the Committee at grant or (except in the case of an Incentive Stock Option) thereafter may extend the exercise period in this situation for the lesser of three months or the balance of such Stock Option’s term.

(k)

Incentive Stock Options.  Anything in the Plan to the contrary notwithstanding, no term of this Plan relating to Incentive Stock Options shall be interpreted, amended, or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the Plan under Section 422 of the Code, or, without the consent of the optionee(s) affected, to disqualify any Incentive Stock Option under such Section 422.  No Incentive Stock Option shall be granted to any participant under the Plan if such grant would cause the aggregate Fair Market Value (as of the date the Incentive Stock Option is granted) of the Common Stock with respect to which all Incentive Stock Options are exercisable for the first time by such participant during any calendar year (under all such plans of the Corporation and any Subsidiary) to exceed $100,000.  To the extent permitted under Section 422 of the Code or the applicable regulations thereunder or any applicable Internal Revenue Service pronouncement:

(i)

if (x) a participant’s employment is terminated by reason of death, Disability, or Retirement and (y) the portion of any Incentive Stock Option that is otherwise exercisable during the post-termination period specified under Section 5(g), (h) or (i), applied without regard to the $100,000 limitation contained in Section 422(d) of the Code, is greater than the portion of such Option that is immediately exercisable as an “Incentive Stock Option” during such post-termination period under Section 422, such excess shall be treated as a Non-Qualified Stock Option; and

(ii)

if the exercise of an Incentive Stock Option is accelerated by reason of a Change in Control, any portion of such Option that is not exercisable as an Incentive Stock Option by reason of the $100,000 limitation contained in Section 422(d) of the Code shall be treated as a Non-Qualified Stock Option.

(l)

Buyout Provisions.  The Committee may at any time offer to buy out for a payment in cash, Common Stock, or Restricted Stock an Option previously granted, based on such terms and conditions as the Committee shall establish and communicate to the optionee at the time that such offer is made.

(m)

Settlement Provisions.  If the option agreement so provides at grant or (except in the case of an Incentive Stock Option) is amended after grant and prior to exercise to so provide (with the optionee’s consent), the Committee may require that all or part of the shares to be issued with respect to the spread value of an exercised Option take the form of Restricted Stock, which shall be valued on the date of exercise on the basis of the Fair Market Value (as determined by the Committee) of such Restricted Stock determined without regard to the forfeiture restrictions involved.

(n)

Performance and Other Conditions.  The Committee may condition the exercise of any Option upon the attainment of specified Performance Goals or other factors as the Committee may determine, in its sole discretion.  Unless specifically provided in the option agreement, any such conditional Option shall vest six months prior to its expiration if the conditions to exercise have not theretofore been satisfied.

SECTION 6.  Stock Appreciation Rights.  

(a)

Grant and Exercise.  Stock Appreciation Rights may be granted in conjunction with all or part of any Stock Option granted under the Plan.  In the case of a Non-Qualified Stock Option, such rights may be granted either at or after the time of the grant of such Stock Option.  In the case of an Incentive Stock Option, such rights may be granted only at the time of the grant of such Stock Option.  A Stock Appreciation Right or applicable portion thereof granted with respect to a given Stock Option shall terminate and no longer be exercisable upon the termination or exercise of the related Stock Option, subject to such provisions as the Committee may specify at grant where a Stock Appreciation Right is granted with respect to less than the full number of shares covered by a related Stock Option.  A Stock Appreciation Right may be exercised by an optionee, subject to Section 6(b), in accordance with the procedures established by the Committee for such purpose.  Upon such exercise, the optionee shall be entitled to receive an amount determined in the manner prescribed in Section 6(b).  Stock Options relating to exercised Stock Appreciation Rights shall no longer be exercisable to the extent that the related Stock Appreciation Rights have been exercised.

(b)

Terms and Conditions.  Stock Appreciation Rights shall be subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following:

(i)

Stock Appreciation Rights shall be exercisable only at such time or times and to the extent that the Stock Options to which they relate shall be exercisable in accordance with the provisions of Section 5 and this Section 6 of the Plan.

(ii)

Upon the exercise of a Stock Appreciation Right, an optionee shall be entitled to receive an amount in cash and/or shares of Common Stock equal in value to the excess of the Fair Market Value of one share of Common Stock over the option price per share specified in the related Stock Option multiplied by the number of shares in respect of which the Stock Appreciation Right shall have been exercised, with the Committee having the right to determine the form of payment.  When payment is to be made in shares, the number of shares to be paid shall be calculated on the basis of the Fair Market Value of the shares on the date of exercise.  When payment is to be made in cash, such amount shall be calculated on the basis of the Fair Market Value of the Common Stock on the date of exercise.

(iii)

Stock Appreciation Rights shall be transferable only when and to the extent that the underlying Stock Option would be transferable under Section 5(e) of the Plan.

(iv)

Upon the exercise of a Stock Appreciation Right, the Stock Option or part thereof to which such Stock Appreciation Right is related shall be deemed to have been exercised for the purpose of the limitation set forth in Section 3 of the Plan on the number of shares of Common Stock to be issued under the Plan.

(v)

The Committee, in its sole discretion, may also provide that, in the event of a Change in Control and/or a Potential Change in Control, the amount to be paid upon the exercise of a Stock Appreciation Right shall be based on the Change in Control Price, subject to such terms and conditions as the Committee may specify at grant.

(vi)

The Committee may condition the exercise of any Stock Appreciation Right upon the attainment of specified Performance Goals or other factors as the Committee may determine, in its sole discretion.

SECTION 7.

Restricted Stock and Restricted Units.

(a)

Administration.  Shares of Restricted Stock or Restricted Units may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside the Plan.  The Committee shall determine the eligible persons to whom, and the time or times at which, grants of Restricted Stock or Restricted Units will be made, the number of shares of Restricted Stock or Restricted Units to be awarded to any person, the price (if any) to be paid by the recipient of Restricted Stock (subject to Section 7(b)), the time or times within which such awards may be subject to forfeiture, and the other terms, restrictions and conditions of the awards in addition to those set forth in Section 7(c).  The Committee may condition the grant of Restricted Stock or Restricted Units upon the attainment of specified Performance Goals or such other factors as the Committee may determine, in its sole discretion.  The provisions of Restricted Stock or Restricted Unit awards need not be the same with respect to each recipient.

(b)

Awards and Certificates for Restricted Stock and Restricted Units.  The prospective recipient of a Restricted Stock or Restricted Unit award shall not have any rights with respect to such award, unless and until such recipient has executed an agreement evidencing the award and has delivered a fully executed copy thereof to the Corporation, and has otherwise complied with the applicable terms and conditions of such award.

(i)

The purchase price for shares of Restricted Stock shall be established by the Committee and may be zero.

(ii)

Awards of Restricted Stock or Restricted Units must be accepted within a period of 60 days (or such shorter period as the Committee may specify at grant) after the award date, by executing a Restricted Stock Award Agreement or Restricted Stock Unit Award Agreement, as applicable, and paying whatever price (if any) is required under Section 7(b)(i).

(iii)

Each participant receiving a Restricted Stock award shall be issued a stock certificate in respect of such shares of Restricted Stock or shall have such shares of Restricted Stock evidenced electronically through a book entry transfer.  Any such certificate shall be registered in the name of such participant (or a transferee permitted by Section 12(h) hereof), and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such award.  In the event that certificates evidencing shares of Restricted Stock are not issued and such awards are held electronically, such shares shall be registered in the name of such participant (or a transferee permitted by Section 12(h) hereof) and shall be subject to account restrictions reflecting the terms, conditions, and restrictions applicable to such award.

(iv)

The Committee shall require that the stock certificates evidencing shares of Restricted Stock be held in custody by the Corporation until the restrictions thereon shall have lapsed, and that, as a condition of any Restricted Stock award, the participant shall have delivered a stock power, endorsed in blank, relating to the shares of Common Stock covered by such award.

(v)

In the case of an award of Restricted Units, no shares of Common Stock shall be issued at the time an award is made, and the Corporation shall not be required to set aside a fund for the payment of such award.

(vi)

The maximum number of shares eligible for issuance pursuant to this Section 7 and Section 8 below shall be 4,000,000.

(c)

Restrictions and Conditions.  Restricted Stock and Restricted Units awarded pursuant to this Section 7 shall be subject to the following restrictions and conditions:

(i)

In accordance with the provisions of this Plan and the award agreement, during a period set by the Committee commencing with the date of such award (the "Restriction Period"), the participant shall not be permitted to sell, transfer, pledge, assign, or otherwise encumber shares of Restricted Stock or Restricted Units awarded under the Plan; provided however, that such Restriction Period shall lapse no less than six months from the date of such award.  Within these limits, the Committee, in its sole discretion, may provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on service, the attainment of Performance Goals, or such other factors or criteria as the Committee may determine in its sole discretion.

(ii)

Except as provided in this paragraph (ii) and Section 7(c)(i), the participant shall have, with respect to the shares of Restricted Stock, all of the rights of a shareholder of the Corporation, including the right to vote the shares, and the right to receive any cash dividends.  The Committee, in its sole discretion, as determined at the time of award, may permit or require the payment of cash dividends to be deferred and, if the Committee so determines, reinvested, subject to Section 12(e), in additional Restricted Stock to the extent shares are available under Section 3, or otherwise reinvested.  Pursuant to Section 3 above, stock dividends issued with respect to Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same restrictions and other terms and conditions that apply to the shares with respect to which such dividends are issued.  If the Committee so determines, the award agreement may also impose restrictions on the right to vote and the right to receive dividends.  The recipient of an award of Restricted Units shall not have any right, in respect of Restricted Units awarded pursuant to the Plan, to vote on any matter submitted to the shareholders of the Corporation until such time as the shares of Common Stock attributable to such Restricted Units have been issued.  At the discretion of the Committee, the recipient’s Restricted Unit account may be credited with Dividend Equivalents during the Restriction Period.  At the discretion of the Committee, Dividend Equivalents may be credited in the form of cash or additional Restricted Units.

(iii)

Subject to the applicable provisions of the award agreement and this Section 7, upon termination of a participant's employment with the Corporation and any Subsidiary or Affiliate for any reason during the Restriction Period, all shares of Restricted Stock and all Restricted Units still subject to restriction will vest, or be forfeited, in accordance with the terms and conditions established by the Committee at or after grant.

(iv)

If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period, certificates for an appropriate number of unrestricted shares shall be delivered to the participant (or a transferee permitted by Section 12(h) hereof) promptly.  Upon the lapse of the Restriction Period with respect to any Restricted Units without a prior forfeiture of such Restricted Units, the Corporation shall deliver to the participant, or the participant’s beneficiary or estate, as the case may be, one share of Common Stock for each Restricted Unit as to which restrictions have lapsed and any Dividend Equivalents credited with respect to such Restricted Units; provided, that any fractional shares of Common Stock to be delivered in respect of a Restricted Unit or related Dividend Equivalent shall be settled in cash based on the Fair Market Value on the date the Restriction Period lapsed with respect to the related Restricted Unit or Dividend Equivalent.  The Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering only Common Stock.  The amount of such cash payment for each share of Common Stock to which a participant is entitled shall be equal to the Fair Market Value of the Common Stock on the date on which the Restriction Period lapsed with respect to the related Restricted Unit.

(d)

Minimum Value Provisions.  In order to better ensure that award payments actually reflect the performance of the Corporation and service of the participant, the Committee may provide, in its sole discretion, for a tandem performance-based or other award designed to guarantee a minimum value, payable in cash or Common Stock to the recipient of a Restricted Stock or Restricted Unit award, subject to such performance, future service, deferral, and other terms and conditions as may be specified by the Committee.

SECTION 8.

Awards to Outside Directors.  (a) The provisions of this Section 8 shall apply only to awards to Outside Directors in accordance with this Section 8.  The Committee shall have no authority to determine the timing of or the terms or conditions of any award under this Section 8.  No awards shall be made hereunder until awards are no longer made pursuant to the 1995 Outside Directors Stock Option Plan.  Following approval of this Amended and Restated 1998 Stock Incentive Plan by a majority of the votes cast by the holders of the Corporation’s Common Stock, no additional awards of Non-Qualified Stock Options shall be made to Outside Directors pursuant to Section 8(b).

(b)

Outside Director Stock Options

(i)

A Non-Qualified Stock Option will be awarded hereunder pursuant to the following formula:  Each Outside Director shall receive an annual Non-Qualified Stock Option for the purchase of shares of Common Stock determined by dividing (i) the annual retainer for an Outside Director (determined with reference to the rate of annual retainer in effect on the date the Non-Qualified Stock Option is granted) by (ii) the Fair Market Value of a share of Common Stock on the date of the grant, multiplying the result (the quotient) by three, rounding the resulting number of shares up to the nearest whole share.  In the event an Outside Director serves as Chairman of the Board, the multiplier in the preceding sentence shall be four in lieu of three.  The exercise price of each Non-Qualified Stock Option granted hereunder shall be the Fair Market Value on the date of grant.

(ii)

Each Outside Director Option shall vest and become exercisable on the first anniversary of the date of grant if the grantee is still a member of the Board on such date, but shall not be exercisable before such date except as provided in Section 9.

(iii)

No Outside Director Option shall be exercisable prior to vesting.  Each Outside Director Option shall expire, if unexercised, on the tenth anniversary of the date of grant.  The exercise price may be paid in cash or in shares of Common Stock, including shares of Common Stock subject to the Outside Director Option.

(iv)

Outside Director Options shall not be transferable without the prior written consent of the Board other than (i) transfers by the optionee to a member of his or her Immediate Family or a trust for the benefit of optionee or a member of his or her Immediate Family, or (ii) transfers by will or by the laws of descent and distribution.

(v)

Recipients of Outside Director Options shall enter into a stock option agreement with the Corporation setting forth the exercise price and other terms as provided herein.

(vi)

Upon termination of an Outside Director's service as a director of the Corporation, (i) all Outside Director Options shall be governed by the provisions of Sections 5(g), 5(i), and 5(j) hereof as if Outside Directors were employees of the Corporation, except that there shall be no discretion to accelerate the vesting of any Outside Director Options in connection with the termination of service of any individual Outside Director.

(vii)

Outside Director Options shall be subject to Section 9.  The number of shares and the exercise price per share of each Outside Director Option theretofore awarded shall be adjusted automatically in the same manner as the number of shares and the exercise price for Stock Options under Section 3(c) hereof at any time that Stock Options are adjusted as provided in Section 3(c).  The number of shares underlying Outside Director Options to be awarded in the future shall be adjusted automatically in the same manner as the number of shares underlying outstanding Stock Options are adjusted under Section 3(c) hereof at any time that Stock Options are adjusted under Section 3(c) hereof.

(c)

Outside Director Restricted Unit Awards

(i)

Each Outside Director shall receive an annual Outside Director Restricted Unit Award of 4,600 Restricted Units.  In the event an Outside Director serves as Chairman of the Board, the annual Outside Director Restricted Unit Award shall be 6,000 Restricted Units.

(ii)

Subject to earlier vesting as provided in Section 9, each Outside Director Restricted Unit Award shall vest on the first anniversary of the date of grant if the grantee is still a member of the Board on such date.

(iii)

An Outside Director shall not have any right, in respect of Restricted Units awarded pursuant to the Plan, to vote on any matter submitted to the Corporation’s shareholders until such time as the shares of Common Stock attributable to such Restricted Units have been issued.  

(iv)

Dividend Equivalents.  Whenever a dividend, other than a dividend payable in the form of shares of Common Stock, is declared with respect to the shares of Common Stock, the number of Restricted Units credited to an Outside Director shall be increased by the number of Restricted Units determined by dividing:

(A)

the product of:

(1)

the number of Restricted Units credited to such Outside Director on the related dividend record date and

(2)

the amount of any cash dividend declared by the Corporation on a share of Common Stock (or, in the case of any dividend distributable in property other than shares of Common Stock, the per share value of such dividend, as determined by the Corporation for purposes of Federal income tax reporting) by

(B)

the Fair Market Value on the related dividend payment date.

(v)

Subject to Section 9, no shares of Common Stock shall be distributed, or amount paid, to any Outside Director in respect of any Restricted Units until such time as such Outside Director has ceased to be a member of the Board.

(vi)

An Outside Director may elect, at any time and from time to time, but in no event later than one full year prior to the date as of which his or her service as an Outside Director terminates (the “Service Termination Date”):

(A)

to receive a distribution of shares of Common Stock in respect of the Outside Director’s Restricted Units in a single lump sum payment or in such number of annual installments, not to exceed ten, as the Outside Director shall elect; and

(B)

whether the lump sum distribution or first installment shall be made:

(1)

as soon as practicable after the Service Termination Date;

(2)

on the first day of the calendar month beginning more than six months after the Service Termination Date; or

(3)

on the first anniversary of the Service Termination Date.

Any election shall be filed in writing with the Secretary of the Corporation and shall be effective when received by the Secretary; provided that, if an Outside Director’s Service Termination Date occurs within one full year of the date an election is received it shall be deemed to be ineffective and the last election filed more than twelve months before the Service Termination Date shall be deemed to be effective.

(vii)

Any payment to be made to an Outside Director shall be made in shares of Common Stock; provided, that any fractional shares of Common Stock to be delivered in respect of Restricted Units shall be settled in cash based upon the Fair Market Value on the last business day immediately prior to the date such shares would otherwise have been delivered to the Outside Director or the Outside Director’s beneficiary; provided, further, that the Committee may, in its sole discretion, elect to pay cash, or part cash and part Common Stock in lieu of delivering only Common Stock for Restricted Units.  If a cash payment is made in lieu of delivering Common Stock, the amount of such cash payment for each share of Common Stock to which a Participant is entitled shall be equal to the Fair Market Value of the Common Stock as of on the last business day immediately prior to the date on which the distribution is required to be made.  

(viii)

If an Outside Director fails to specify a commencement date for a distribution in accordance with Section 8(c)(vi), such distribution shall commence on the first anniversary of the Outside Director’s Service Termination Date.  If an Outside Director fails to specify whether a distribution shall be made in a lump-sum payment or a number of installments, such distribution shall be made in a lump-sum payment.  

(ix)

In the case of any distribution being made in annual installments, each installment after the first installment shall be paid on the first business day of each subsequent calendar year until the entire amount shall have been paid.  The value of any installment payment payable in cash shall be an amount equal to the product of:

(A)

the number Restricted Units then standing to the credit of an Outside Director (which shall be net of the number of Restricted Units with respect to which a prior installment payment has been made);

(B)

the Fair Market Value of a share of Common Stock on the last business day immediately prior to the date as of which such installment is payable; and

(C)

a fraction, the numerator of which is one and the denominator of which is the number of installments (including the then current installment) remaining to be paid.

(x)

Outside Director Restricted Unit Awards shall not be transferable without the prior written consent of the Board other than (i) transfers by the holder to a member of his or her Immediate Family or a trust for the benefit of the holder or a member of his or her Immediate Family, or (ii) transfers by will or by the laws of descent and distribution or a qualified domestic relations order.

(xi)

Recipients of Outside Director Restricted Unit Awards shall enter into a restricted unit agreement with the Corporation setting forth the terms of such grant as provided herein.

(xii)

Termination of Service

(A)

If an Outside Director’s service as a director of the Corporation terminates by reason of death, Disability or Normal Retirement, all Outside Director Restricted Unit Awards held by such Outside Director shall immediately vest. 

(B)

If an Outside Director’s service as a director of the Corporation terminates for any reason other than death, Disability or Normal Retirement, all Unvested Outside Director Restricted Unit Awards held by such Outside Director shall thereupon terminate, except that if an Outside Director’s service as a director is terminated for Cause (as such term is defined in Section 5(j) of this Plan) all Restricted Units shall terminate and be forfeited.

(C)

In the event of the death of an Outside Director, any payment due in respect of the Outside Director’s Restricted Units shall be made to the beneficiary designated in writing by such Outside Director and filed with the Secretary of the Corporation, or, in the absence of such designation, to the Outside Director’s estate.  Any such payment shall be made at the same time and subject to the same conditions as would have applied had the Outside Director survived and the date of his or her death been treated as the termination date of the Outside Director’s service, unless the Outside Director shall have specified that an alternative form of payment permitted under the Plan should apply in the event of his or her death.

(xiii)

Outside Director Restricted Unit Awards shall be subject to Section 9.  The number of Outside Director Restricted Units theretofore awarded shall be adjusted automatically in the manner prescribed by Section 3(c).

(d)

Any applicable withholding taxes shall be paid in shares of Common Stock subject to the Outside Director Option or Outside Director Restricted Unit Award valued as the Fair Market Value of such shares unless the Corporation agrees to accept payment in cash in the amount of such withholding taxes.

(e)

The Board, in its sole discretion, may determine to reduce the size of any Outside Director Option or Outside Director Restricted Unit Award prior to grant or to postpone the vesting or distribution of any Outside Director Restricted Unit Award prior to grant.

SECTION 9.

Change in Control Provisions.

(a)

Impact of Event.  In the event of:

(1)

a “Change in Control” as defined in Section 9(b); or

(2)

a “Potential Change in Control” as defined in Section 9(c), but only if and to the extent so determined by the Committee or the Board at or after grant (subject to any right of approval expressly reserved by the Committee or the Board at the time of such determination);

(i)

subject to the limitations set forth below in this Section 9(a), the following acceleration provisions shall apply:

(A)

Any Stock Appreciation Right, Stock Option or Outside Director Option awarded under the Plan not previously exercisable and vested shall become fully exercisable and vested.

(B)

The restrictions applicable to any Restricted Stock or Restricted Units in each case to the extent not already vested under the Plan, shall lapse and such shares and awards shall be deemed fully vested.

(ii)

subject to the limitations set forth below in this Section 9(a), the value of all outstanding Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Units and Outside Director Options in each case to the extent vested, shall, unless otherwise determined by the Board or by the Committee in its sole discretion prior to any Change in Control, be cashed out on the basis of the “Change in Control Price” as defined in Section 9(d) as of the date such Change in Control or such Potential Change in Control is determined to have occurred or such other date as the Board or Committee may determine prior to the Change in Control.

(iii)

The Board or the Committee may impose additional conditions on the acceleration or valuation of any award in the award agreement.

(b)

Definition of Change in Control.  For purposes of Section 9(a), a “Change in Control” means the happening of any of the following:

(i)

any person or entity, including a “group” as defined in Section 13(d)(3) of the Exchange Act, other than the Corporation or a wholly-owned subsidiary thereof or any employee benefit plan of the Corporation or any of its Subsidiaries, becomes the beneficial owner of the Corporation’s securities having 35% or more of the combined voting power of the then outstanding securities of the Corporation that may be cast for the election of directors of the Corporation (other than as a result of an issuance of securities initiated by the Corporation in the ordinary course of business); or

(ii)

as the result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sales of assets or contested election, or any combination of the foregoing transactions, less than a majority of the combined voting power of the then outstanding securities of the Corporation or any successor corporation or entity entitled to vote generally in the election of the directors of the Corporation or such other corporation or entity after such transaction are held in the aggregate by the holders of the Corporation’s securities entitled to vote generally in the election of directors of the Corporation immediately prior to such transaction; or

(iii)

during any period of two consecutive years, individuals who at the beginning of any such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Corporation’s shareholders, of each director of the Corporation first elected during such period was approved by a vote of at least two-thirds of the directors of the Corporation then still in office who were directors of the Corporation at the beginning of any such period.

(c)

Definition of Potential Change in Control.  For purposes of Section 9(a), a “Potential Change in Control” means the happening of any one of the following:

(i)

The approval by shareholders of an agreement by the Corporation, the consummation of which would result in a Change in Control of the Corporation as defined in Section 9(b); or

(ii)

The acquisition of beneficial ownership, directly or indirectly, by any entity, person or group (other than the Corporation or a Subsidiary or any Corporation employee benefit plan (including any trustee of such plan acting as such trustee)) of securities of the Corporation representing 5% or more of the combined voting power of the Corporation’s outstanding securities and the adoption by the Committee of a resolution to the effect that a Potential Change in Control of the Corporation has occurred for purposes of this Plan.

(d)

Change in Control Price.  For purposes of this Section 9, “Change in Control Price” means the highest price per share paid in any transaction reported on the New York Stock Exchange or such other exchange or market as is the principal trading market for the Common Stock, or paid or offered in any bona fide transaction related to a Potential or actual Change in Control of the Corporation at any time during the 60 day period immediately preceding the occurrence of the Change in Control (or, where applicable, the occurrence of the Potential Change in Control event), in each case as determined by the Committee except that, in the case of Incentive Stock Options and Stock Appreciation Rights relating to Incentive Stock Options, such price shall be based only on transactions reported for the date on which the optionee exercises such Stock Appreciation Rights or, where applicable, the date on which a cash out occurs under Section 9(a)(ii).

SECTION 10.

Amendments and Termination.  The Board may at any time amend, alter or discontinue the Plan without shareholder approval to the fullest extent permitted by the Exchange Act and the Code; provided, however, that no amendment, alteration, or discontinuation shall be made which would impair the rights of an optionee or participant under a Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Unit or Outside Director Option theretofore granted, without the participant’s consent.

Subject to Section 5(b) above, the Committee may amend the terms of any Stock Option or other award theretofore granted, prospectively or retroactively, but, subject to Section 3 above, no such amendment shall impair the rights of any holder without the holder’s consent.  The Committee may also substitute new Stock Options for previously granted Stock Options (on a one for one or other basis), including previously granted Stock Options having higher option exercise prices.  Solely for purposes of computing the Section 162(m) Maximum, if any Stock Options or other awards previously granted to a participant are canceled and new Stock Options or other awards having a lower exercise price or other more favorable terms for the participant are substituted in their place, both the initial Stock Options or other awards and the replacement Stock Options or other awards will be deemed to be outstanding (although the canceled Stock Options or other awards will not be exercisable or deemed outstanding for any other purposes).

SECTION 11.

Unfunded Status of Plan.  The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.  With respect to any payments not yet made to a participant or optionee by the Corporation, nothing contained herein shall give any such participant or optionee any rights that are greater than those of a general creditor of the Corporation.  In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Stock or payments in lieu of or with respect to awards hereunder; provided, however, that, unless the Committee otherwise determines with the consent of the affected participant, the existence of such trusts or other arrangements is consistent with the “unfunded” status of the Plan.

SECTION 12.

General Provisions.  (a)  The Committee may require each person purchasing shares pursuant to a Stock Option or other award under the Plan to represent to and agree with the Corporation in writing that the optionee or participant is acquiring the shares without a view to distribution thereof.  The certificates for such shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.  All certificates for shares of Common Stock or other securities delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Commission, any stock exchange upon which the Common Stock is then listed, and any applicable Federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

(b)

Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

(c)

The adoption of the Plan shall not confer upon any employee of the Corporation or any Subsidiary or Affiliate any right to continued employment with the Corporation or a Subsidiary or Affiliate, as the case may be, nor shall it interfere in any way with the right of the Corporation or a Subsidiary or Affiliate to terminate the employment of any of its employees at any time.

(d)

No later than the date as of which an amount first becomes includable in the gross income of the participant for Federal income tax purposes with respect to any award under the Plan, the participant shall pay to the Corporation, or make arrangements satisfactory to the Committee regarding the payment of, any Federal, state, or local taxes of any kind required by law to be withheld with respect to such amount.  The Committee may require withholding obligations to be settled with Common Stock, including Common Stock that is part of the award that gives rise to the withholding requirement.  The obligations of the Corporation under the Plan shall be conditional on such payment or arrangements and the Corporation and its Subsidiaries or Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant.

(e)

The actual or deemed reinvestment of dividends or Dividend Equivalents in additional Restricted Stock (or other types of Plan awards) at the time of any dividend payment shall only be permissible if sufficient shares of Common Stock are available under Section 3 for such reinvestment (taking into account then outstanding Stock Options and other Plan awards).

(f)

The Plan and all awards made and actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Tennessee.

(g)

The members of the Committee and the Board shall not be liable to any employee or other person with respect to any determination made hereunder in a manner that is not inconsistent with their legal obligations as members of the Board.  In addition to such other rights of indemnification as they may have as directors or as members of the Committee, the members of the Committee shall be indemnified by the Corporation against the reasonable expenses, including attorneys’ fees actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any option granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Corporation) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee member is liable for negligence or misconduct in the performance of his duties; provided that within 60 days after institution of any such action, suit or proceeding, the Committee member shall in writing offer the Corporation the opportunity, at its own expense, to handle and defend the same.

(h)

In addition to any other restrictions on transfer that may be applicable under the terms of this Plan or the applicable award agreement, no Stock Option, Stock Appreciation Right, Restricted Stock Award, Restrict Unit Award or other right issued under this Plan is transferable by the participant without the prior written consent of the Committee, or, in the case of an Outside Director, the Board, other than (i) transfers by an optionee to a member of his or her Immediate Family or a trust for the benefit of the optionee or a member of his or her Immediate Family or (ii) transfers by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order.  The designation of a beneficiary will not constitute a transfer.

(i)

The Committee may, at or after grant, condition the receipt of any payment in respect of any award or the transfer of any shares subject to an award on the satisfaction of a six-month holding period, if such holding period is required for compliance with Section 16 under the Exchange Act.

SECTION 13.

Effective Date of Amended and Restated Plan.  This Amended and Restated Plan shall be effective as of the date of approval by a majority of the votes cast by the holders of the Corporation’s Common Stock (the “Effective Date”).Flextronics International Ltd. Exhibit 4.04

 

EXHIBIT 4.04

FLEXTRONICS INTERNATIONAL LTD.

$400,000,000

6 1/2% SENIOR SUBORDINATED NOTES DUE 2013

INDENTURE

Dated as of May 8, 2003

J.P. Morgan Trust Company, National Association,

as Trustee

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 	 	 
	TIA	 	Indenture
	Section	 	Section
	
	 	

	310	 	
(a)(1)
	 	 	7.10	 
	 	 	
(a)(2)
	 	 	7.10	 
	 	 	
(a)(3)
	 	 	N.A.	 
	 	 	
(a)(4)
	 	 	N.A	 
	 	 	
(a)(5)
	 	 	7.08; 7.10	 
	 	 	
(b)
	 	 	7.08; 7.10; 12.02	 
	 	 	
(c)
	 	 	N.A.	 
	311	 	
(a)
	 	 	7.11	 
	 	 	
(b)
	 	 	7.11	 
	 	 	
(c)
	 	 	12.03	 
	312	 	
(a)
	 	 	N.A.	 
	 	 	
(b)
	 	 	12.03	 
	 	 	
(c)
	 	 	12.03	 
	313	 	
(a)
	 	 	7.06	 
	 	 	
(b)(2)
	 	 	7.06	 
	 	 	
(c)
	 	 	7.06; 12.02	 
	 	 	
(d)
	 	 	7.06	 
	314	 	
(a)
	 	 	4.03; 4.14; 12.02	 
	 	 	
(b)
	 	 	11.01	 
	 	 	
(c)(1)
	 	 	7.02; 12.04; 12.05	 
	 	 	
(c)(2)
	 	 	7.02; 12.04; 12.05	 
	 	 	
(c)(3)
	 	 	N.A.	 
	 	 	
(d)
	 	 	11.01	 
	 	 	
(e)
	 	 	12.05	 
	 	 	
(f)
	 	 	N.A.	 
	315	 	
(a)
	 	 	7.01(b)	 
	 	 	
(b)
	 	 	7.05	 
	 	 	
(c)
	 	 	7.01	 
	 	 	
(d)
	 	 	6.05; 7.01(c)	 
	 	 	
(e)
	 	 	6.11	 
	316	 	
(a)(last sentence)
	 	 	2.09	 
	 	 	
(a)(1)(A)
	 	 	6.02	 
	 	 	
(a)(1)(B)
	 	 	6.04	 
	 	 	
(a)(2)
	 	 	9.02	 
	 	 	
(b)
	 	 	6.07	 
	 	 	
(c)
	 	 	9.04	 
	317	 	
(a)(1)
	 	 	6.08	 
	 	 	
(a)(2)
	 	 	6.09	 
	 	 	
(b)
	 	 	2.04	 
	318	 	
(a)
	 	 	12.01	 
	 	 	
(c)
	 	 	12.01	 

N.A. means Not Applicable

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
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	ARTICLE 1
DEFINITIONS AND INCORPORATION BY REFERENCE
	SECTION 1.01.
	 	Definitions	 	 	1	 
	SECTION 1.02.
	 	Other Definitions	 	 	17	 
	SECTION 1.03.
	 	Trust Indenture Act Definitions	 	 	18	 
	SECTION 1.04.
	 	Rules of Construction	 	 	18	 
	ARTICLE 2
THE NOTES
	SECTION 2.01.
	 	Form and Dating	 	 	19	 
	SECTION 2.02.
	 	Execution and Authentication	 	 	20	 
	SECTION 2.03.
	 	Registrar and Paying Agent	 	 	21	 
	SECTION 2.04.
	 	Paying Agent to Hold Money in Trust	 	 	21	 
	SECTION 2.05.
	 	Holder Lists	 	 	21	 
	SECTION 2.06.
	 	Transfer and Exchange	 	 	22	 
	SECTION 2.07.
	 	Replacement Notes	 	 	35	 
	SECTION 2.08.
	 	Outstanding Notes	 	 	35	 
	SECTION 2.09.
	 	Treasury Notes	 	 	36	 
	SECTION 2.10.
	 	Temporary Notes	 	 	36	 
	SECTION 2.11.
	 	Cancellation	 	 	36	 
	SECTION 2.12.
	 	Defaulted Interest	 	 	36	 
	SECTION 2.13.
	 	Cusip Numbers	 	 	37	 
	ARTICLE 3
REDEMPTION AND PREPAYMENT
	SECTION 3.01.
	 	Notices to Trustee	 	 	37	 
	SECTION 3.02.
	 	Selection of Notes to Be Redeemed	 	 	37	 
	SECTION 3.03.
	 	Notice of Redemption	 	 	38	 
	SECTION 3.04.
	 	Effect of Notice of Redemption	 	 	39	 
	SECTION 3.05.
	 	Deposit of Redemption Price	 	 	39	 
	SECTION 3.06.
	 	Notes Redeemed in Part	 	 	39	 
	SECTION 3.07.
	 	Optional Redemption	 	 	39	 
	SECTION 3.08.
	 	Mandatory Redemption	 	 	40	 
	SECTION 3.09.
	 	Offer to Purchase by Application of Excess Proceeds	 	 	40	 

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	ARTICLE 4
COVENANTS
	SECTION 4.01.
	 	Payment of Notes	 	 	42	 
	SECTION 4.02.
	 	Maintenance of Office or Agency	 	 	43	 
	SECTION 4.03.
	 	Reports	 	 	43	 
	SECTION 4.04.
	 	Compliance Certificate	 	 	44	 
	SECTION 4.05.
	 	Taxes	 	 	45	 
	SECTION 4.06.
	 	Stay, Extension and Usury Laws	 	 	45	 
	SECTION 4.07.
	 	Restricted Payments	 	 	45	 
	SECTION 4.08.
	 	Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries	 	 	47	 
	SECTION 4.09.
	 	Incurrence of Debt and Issuance of Preferred Stock	 	 	49	 
	SECTION 4.10.
	 	Asset Sales	 	 	51	 
	SECTION 4.11.
	 	Transactions with Affiliates	 	 	52	 
	SECTION 4.12.
	 	Liens	 	 	53	 
	SECTION 4.13.
	 	Corporate Existence	 	 	53	 
	SECTION 4.14.
	 	Change of Control	 	 	53	 
	SECTION 4.15.
	 	Designation of Unrestricted Subsidiaries	 	 	54	 
	SECTION 4.16.
	 	Payments for Consent	 	 	55	 
	SECTION 4.17.
	 	Money for Payments to Be Held in Trust	 	 	55	 
	SECTION 4.18.
	 	Status as Investment Company	 	 	57	 
	SECTION 4.19.
	 	Incurrence of Senior Subordinated Debt	 	 	57	 
	SECTION 4.20.
	 	Guarantees of Debt	 	 	57	 
	SECTION 4.21.
	 	Payment of Additional Amounts	 	 	57	 
	ARTICLE 5
SUCCESSORS
	SECTION 5.01.
	 	Merger, Consolidation or Sale of Assets	 	 	59	 
	SECTION 5.02.
	 	Successor Corporation Substituted	 	 	60	 
	SECTION 5.03.
	 	Restrictions upon Reincorporating, Merging or Consolidating into a Subject Country	 	 	60	 
	ARTICLE 6
DEFAULTS AND REMEDIES
	SECTION 6.01.
	 	Events of Default	 	 	61	 
	SECTION 6.02.
	 	Acceleration	 	 	63	 
	SECTION 6.03.
	 	Other Remedies	 	 	63	 
	SECTION 6.04.
	 	Waiver of Past Defaults	 	 	63	 
	SECTION 6.05.
	 	Control by Majority	 	 	64	 
	SECTION 6.06.
	 	Limitation on Suits	 	 	64	 
	SECTION 6.07.
	 	Rights of Holders of Notes to Receive Payment	 	 	64	 

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	SECTION 6.08.
	 	Collection Suit by Trustee	 	 	64	 
	SECTION 6.09.
	 	Trustee May File Proofs of Claim	 	 	65	 
	SECTION 6.10.
	 	Priorities	 	 	65	 
	SECTION 6.11.
	 	Undertaking for Costs	 	 	66	 
	ARTICLE 7
TRUSTEE
	SECTION 7.01.
	 	Duties of Trustee	 	 	66	 
	SECTION 7.02.
	 	Rights of Trustee	 	 	67	 
	SECTION 7.03.
	 	Individual Rights of Trustee	 	 	68	 
	SECTION 7.04.
	 	Trustee’s Disclaimer	 	 	68	 
	SECTION 7.05.
	 	Notice of Defaults	 	 	68	 
	SECTION 7.06.
	 	Reports by Trustee to Holders of the Notes	 	 	69	 
	SECTION 7.07.
	 	Compensation and Indemnity	 	 	69	 
	SECTION 7.08.
	 	Replacement of Trustee	 	 	70	 
	SECTION 7.09.
	 	Successor Trustee by Merger, Etc	 	 	71	 
	SECTION 7.10.
	 	Eligibility; Disqualification	 	 	71	 
	SECTION 7.11.
	 	Preferential Collection of Claims Against Company	 	 	71	 
	ARTICLE 8
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	SECTION 8.01.
	 	Option to Effect Legal Defeasance or Covenant Defeasance	 	 	72	 
	SECTION 8.02.
	 	Legal Defeasance and Discharge	 	 	72	 
	SECTION 8.03.
	 	Covenant Defeasance	 	 	72	 
	SECTION 8.04.
	 	Conditions to Legal or Covenant Defeasance	 	 	73	 
	SECTION 8.05.
	 	Deposited Money and Government Securities to	 	 	 	 
	 .
	 	Be Held in Trust; Other Miscellaneous Provisions	 	 	74	 
	SECTION 8.06.
	 	Repayment to Company	 	 	75	 
	SECTION 8.07.
	 	Reinstatement	 	 	75	 
	SECTION 8.08.
	 	Survival	 	 	75	 
	ARTICLE 9
AMENDMENT, SUPPLEMENT AND WAIVER
	SECTION 9.01.
	 	Without Consent of Holders	 	 	75	 
	SECTION 9.02.
	 	With Consent of Holders	 	 	76	 
	SECTION 9.03.
	 	Compliance with Trust Indenture Act	 	 	78	 
	SECTION 9.04.
	 	Revocation and Effect of Consents	 	 	78	 
	SECTION 9.05.
	 	Notation on or Exchange of Notes	 	 	78	 
	SECTION 9.06.
	 	Trustee to Sign Amendments, Etc	 	 	78	 

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	ARTICLE 10
	SATISFACTION AND DISCHARGE
	SECTION 10.01.
	 	Satisfaction and Discharge of Indenture	 	 	79	 
	SECTION 10.02.
	 	Application of Trust Money	 	 	79	 
	ARTICLE 11
	MISCELLANEOUS
	SECTION 11.01.
	 	Trust Indenture Act Controls	 	 	80	 
	SECTION 11.02.
	 	Notices	 	 	80	 
	SECTION 11.03.
	 	Communication by Holders with Other Holders	 	 	82	 
	SECTION 11.04.
	 	Certificate and Opinion as to Conditions Precedent	 	 	82	 
	SECTION 11.05.
	 	Statements Required in Certificate or Opinion	 	 	82	 
	SECTION 11.06.
	 	Rules by Trustee and Agents	 	 	82	 
	SECTION 11.07.
	 	No Personal Liability of Directors, Officers, Employees and Stockholders	 	 	83	 
	SECTION 11.08.
	 	GOVERNING LAW	 	 	83	 
	SECTION 11.09.
	 	Consent to Jurisdiction and Service	 	 	83	 
	SECTION 11.10.
	 	No Adverse Interpretation of Other Agreements	 	 	83	 
	SECTION 11.11.
	 	Successors	 	 	84	 
	SECTION 11.12.
	 	Severability	 	 	84	 
	SECTION 11.13.
	 	Counterpart Originals	 	 	84	 
	SECTION 11.14.
	 	Table of Contents, Headings, Etc	 	 	84	 
	SECTION 11.15.
	 	Bermuda Branch; Full Recourse Obligations	 	 	84	 
	ARTICLE 12
	SUBORDINATION
	SECTION 12.01.
	 	Notes Subordinated to Senior Debt	 	 	84	 
	SECTION 12.02.
	 	No Payment on Notes in Certain Circumstances	 	 	85	 
	SECTION 12.03.
	 	Payment Over of Proceeds upon Dissolution, Etc	 	 	86	 
	SECTION 12.04.
	 	Payments May Be Paid Prior to Dissolution	 	 	87	 
	SECTION 12.05.
	 	Subrogation	 	 	87	 
	SECTION 12.06.
	 	Obligations of the Company Unconditional	 	 	87	 
	SECTION 12.07.
	 	Notice to Trustee	 	 	88	 
	SECTION 12.08.
	 	Reliance on Judicial Order or Certificate of Liquidating Agent	 	 	88	 
	SECTION 12.09.
	 	Trustee’s Relation to Senior Debt or Guarantor Senior Debt	 	 	88	 
	SECTION 12.10.
	 	Subordination Rights Not Impaired by Acts or Omissions of the Company or a	 	 	 	 
	 .
	 	Guarantor or Holders of Senior Debt	 	 	89	 
	SECTION 12.11.
	 	Holders Authorize Trustee to Effectuate Subordination of Securities	 	 	89	 
	SECTION 12.12.
	 	This Article 12 Not to Prevent Events of Default	 	 	90	 
	SECTION 12.13.
	 	Trustee's Compensation Not Prejudiced	 	 	90	 

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	EXHIBIT A-1
	 	FORM OF NOTE	 	 	A-1-1	 
	EXHIBIT A-2
	 	FORM OF REGULATION S TEMPORARY GLOBAL NOTE	 	 	A-2-1	 
	EXHIBIT B
	 	FORM OF CERTIFICATE OF TRANSFER	 	 	B-1	 
	EXHIBIT C
	 	FORM OF CERTIFICATE OF EXCHANGE	 	 	C-1	 

-v-

 

          INDENTURE, dated as of May 8, 2003 by and between Flextronics
International Ltd., a Singapore corporation (the “Company”), and J.P. Morgan
Trust Company, National Association, as trustee (the “Trustee”).

RECITALS

          The Company has duly authorized the creation of an issue of 6 1/2% Senior
Subordinated Notes due 2013 (the “Notes”; such term to include the Exchange
Notes, the Private Exchange Notes, if any, and the Unrestricted Definitive and
Global Notes, if any, treated as a single class of securities under this
Indenture), 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 have been done to make the Notes, when 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 each of the Company and the Trustee in accordance with the
terms hereof.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01. Definitions.

          “144A Global Note” means a global note in the form of Exhibit A-1 hereto
bearing the Global Note Legend and the Private Placement Legend and deposited
with or on behalf of, and registered in the name of, the Depositary or its
nominee that will be issued in a denomination equal to the outstanding
aggregate principal amount of the Notes sold in reliance on Rule 144A.

          “Acquired Debt” means, with respect to any specified Person, (i) Debt of
any other Person existing at the time such other Person is merged with or into
or became a Restricted Subsidiary of such specified Person, including, without
limitation, Debt incurred in connection with, or in contemplation of, such
other Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and (ii) Debt secured by a Lien encumbering any asset
acquired by such specified Person which, in each case, is not repaid at or
within five days following the date of such acquisition.

          “Additional Amounts” shall have the definition set forth in Section 4.21.
All references herein to payments of principal of, premium, if any, and
interest on the Notes shall be deemed to include any applicable Additional
Amounts that may become payable in respect of the Notes.

 

 

          “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 purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling,” “controlled by”
and “under common control with”), as used with respect to any Person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.

          “Agent” means any Registrar, Paying Agent or co-registrar.

          “Applicable Procedures” means, with respect to any transfer or exchange of
or for beneficial interests in any Global Note, the rules and procedures of the
Depositary, Euroclear or Clearstream, Luxembourg that apply to such transfer or
exchange.

          “Asset Sale” means (i) the sale, lease, transfer, conveyance or other
disposition of any assets or rights (including, without limitation, by way of a
sale and leaseback) other than in the ordinary course of business (provided
that the sale, lease, transfer, conveyance or other disposition of all or
substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole will be governed pursuant to Section 4.14 and/or Section 5.01
and not pursuant to Section 4.10), and (ii) the issue or sale by the Company or
any of its Restricted Subsidiaries of Equity Interests of any of the Company’s
Restricted Subsidiaries, in the case of either clause (i) or (ii), whether in a
single transaction or a series of related transactions (a) that have a fair
market value in excess of $10.0 million or (b) for net proceeds in excess of
$10.0 million. Notwithstanding the foregoing: (v) a transfer of assets by the
Company to a Restricted Subsidiary or by a Restricted Subsidiary to the Company
or to another Restricted Subsidiary, (w) a disposition of goods held for sale
in the ordinary course of business or obsolete equipment in the ordinary course
of business consistent with past practices of the Company and its Restricted
Subsidiaries, (x) assets transferred or disposed of in connection with a
Receivables Program, (y) an issuance of Equity Interests by a Restricted
Subsidiary to the Company or to another Restricted Subsidiary, and (z) a
Restricted Payment or Permitted Investment that is permitted in Section 4.07
will not be deemed to be Asset Sales.

          “Asset Sale Offer” shall have the definition set forth in Section 4.10.

          “Asset Sale Offer Date” shall have the definition set forth in Section
4.10.

          “Asset Sale Offered Price” shall have the definition set forth in Section
4.10.

          “Asset Sale Pari Passu Offer” shall have the definition set forth in
Section 4.10.

          “Attributable Debt” in respect of a sale and leaseback transaction means,
at the time of determination, the present value (discounted at the rate of
interest implicit in such transaction, determined in accordance with GAAP) of
the obligation of the lessee for net rental payments during the remaining term
of the lease included in such sale and leaseback transaction (including any
period for which such lease has been extended or may, at the option of the
lessor, be extended).

-2-

 

          “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state
law for the relief of debtors.

          “Board of Directors” means, as to any Person, the board of directors of
such Person or any duly authorized committee thereof or any other similar duly
authorized governing body of such Person.

          “Board Resolution” means, with respect to any Person, a copy of a
resolution certified by the Secretary or an Assistant Secretary or any office
or director of such Person to have been duly adopted by the Board of Directors
of such Person and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

          “Borrowing Base” means an amount equal to the sum of (i) 85% of the value
of accounts receivable (before giving effect to any related reserves) shown on
the Company’s most recent consolidated balance sheet that are not more than 90
days past due in accordance with GAAP and (ii) 60% of the value of the
inventory shown on the Company’s consolidated balance sheet in accordance with
GAAP.

          “Business Day” means any day other than a Legal Holiday.

          “Capital Lease Obligation” means, at the time any determination thereof is
to be made, the amount of the liability in respect of a capital lease that
would at such time be required to be capitalized on a balance sheet in
accordance with GAAP.

          “Capital Stock” means (i) in the case of a corporation, corporate stock,
(ii) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock, (iii) in the case of a partnership or limited liability
company, partnership or membership interests (whether general or limited) and
(iv) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of,
the issuing Person.

          “Cash Equivalents” means (i) United States dollars, (ii) securities issued
or directly and fully guaranteed or insured by the United States government or
any agency or instrumentality thereof having maturities of not more than six
months from the date of acquisition, (iii) certificates of deposit and
eurodollar time deposits with maturities of six months or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding six months and
overnight bank deposits, in each case with any lender party to the Credit
Facility or with any domestic commercial bank having capital and surplus in
excess of $500 million and a Keefe Bank Watch Rating of “B” or better, (iv)
repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (ii) and (iii) above entered into
with any financial institution meeting the qualifications specified in clause
(iii) above and (v) commercial paper having the highest rating obtainable from
Moody’s Investors Service, Inc. or Standard & Poor’s Corporation and in each
case maturing within six months after the date of acquisition.

          “Change of Control” means the occurrence of any of the following: (i) the
sale, lease, transfer, conveyance or other disposition, in one or a series of
related transactions, of all or substan-

-3-

 

tially all of the assets of the Company and its Subsidiaries taken as a
whole to any “person” (as such term is used in Section 13(d)(3) of the Exchange
Act); (ii) the adoption by the Company of a plan relating to the liquidation or
dissolution of the Company; (iii) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of
which is that any “person” (as defined above) becomes the “beneficial owner”
(as such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act),
directly or indirectly, of more than 50% of the Voting Stock of the Company
(measured by voting power rather than number of shares); or (iv) the first day
on which a majority of the members of the Board of Directors of the Company are
not Continuing Directors.

          “Clearstream, Luxembourg” means Clearstream Banking S.A., formerly
Cedelbank, S.A.

          “Commission” means the Securities and Exchange Commission.

          “Company” means Flextronics International Ltd., a Singapore corporation,
and all successors thereto.

          “Consolidated Cash Flow” means, with respect to any Person for any period,
the Consolidated Net Income of such Person for such period plus (i) an amount
equal to any extraordinary loss plus any net loss realized in connection with
an Asset Sale (to the extent such losses were deducted in computing such
Consolidated Net Income), plus (ii) provision for taxes based on income or
profits of such Person and its Restricted Subsidiaries for such period, to the
extent that such provision for taxes was included in computing such
Consolidated Net Income, plus (iii) consolidated interest expense of such
Person and its Restricted Subsidiaries for such period, whether paid or accrued
and whether or not capitalized (including, without limitation, amortization of
debt issuance costs and original issue discount, non-cash interest payments,
the interest component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease Obligations, imputed
interest with respect to Attributable Debt, commissions, discounts and other
fees and charges incurred in respect of letter of credit or bankers’ acceptance
financings, and net payments (if any) pursuant to Hedging Obligations), to the
extent that any such expense was deducted in computing such Consolidated Net
Income, plus (iv) depreciation, amortization (including amortization of
goodwill and other intangibles but excluding amortization of prepaid cash
expenses that were paid in a prior period) and other non-cash expenses
(excluding any such non-cash expense to the extent that it represents an
accrual of or reserve for cash expenses in any future period or amortization of
a prepaid cash expense that was paid in a prior period) of such Person and its
Restricted Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash expenses were deducted in computing such
Consolidated Net Income, minus (v) other non-recurring non-cash items
increasing such Consolidated Net Income for such period (which will be added
back to Consolidated Cash Flow in any subsequent period to the extent cash is
received in respect of such item in such subsequent period), in each case, on a
consolidated basis and determined in accordance with GAAP. Notwithstanding the
foregoing, the provision for taxes on the income or profits of, and the
depreciation and amortization and other non-cash charges of, a Restricted
Subsidiary of the referent Person shall be added to Consolidated Net Income to
compute Consolidated Cash Flow only to the extent that a corresponding amount
would be permitted at the date of determination to be dividended or similarly
distributed to such Person by such Restricted Subsidiary without prior

governmental approval (that has not been obtained), and without direct or
indirect restriction pursuant to the terms of its charter and all agreements,
instruments, judg-

-4-

 

ments, decrees, orders, statutes, rules and governmental regulations
applicable to that Restricted Subsidiary or its stockholders.

          “Consolidated Net Income” means, with respect to any Person for any
period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that (i) the Net Income (but not loss) of any Person that
is not a Restricted Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of dividends or
distributions paid in cash to the referent Person or a Wholly Owned Restricted
Subsidiary thereof, (ii) the Net Income of any Unrestricted Subsidiary shall be
excluded to the extent that the declaration or payment of dividends or similar
distributions by that Restricted Subsidiary of that Net Income is not at the
date of determination permitted without any prior governmental approval (that
has not been obtained) or, directly or indirectly, by operation of the terms of
its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Subsidiary or its
stockholders, (iii) the Net Income of any Person acquired in a pooling of
interests transaction for any period prior to the date of such acquisition
shall be excluded and (iv) the cumulative effect of a change in accounting
principles shall be excluded.

          “Consolidated Net Worth” means, with respect to any Person as of any date,
the sum of (i) the consolidated equity of the ordinary shareholders of such
Person and its consolidated Restricted Subsidiaries as of such date plus (ii)
the respective amounts reported on such Person’s balance sheet as of such date
with respect to any series of preferred stock (other than Disqualified Stock)
that by its terms is not entitled to the payment of dividends unless such
dividends may be declared and paid only out of net earnings in respect of the
year of such declaration and payment, but only to the extent of any cash
received by such Person upon issuance of such preferred stock, less (x) all
write-ups (other than write-ups resulting from foreign currency translations
and write-ups of tangible assets of a going concern business made within 12
months after the acquisition of such business) subsequent to the date of this
Indenture in the book value of any asset owned by such Person or a consolidated
Restricted Subsidiary of such Person, (y) all investments as of such date in
unconsolidated Restricted Subsidiaries and in Persons that are not Restricted
Subsidiaries (except, in each case, Permitted Investments), and (z) all
unamortized debt discount and expense and unamortized deferred charges as of
such date, all of the foregoing determined in accordance with GAAP.

          “Continuing Director” means, as of any date of determination, any member
of the Board of Directors of the Company who (i) was a member of such Board of
Directors on the date of this Indenture or (ii) was nominated for election or
elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board at a time of such
nomination or election and who voted with respect to such nomination or
election; provided that a majority of the members of the Board voting with
respect thereto shall at the time have been Continuing Directors.

          “Corporate Trust Office of the Trustee” shall be at the address of the
Trustee specified in Section 11.02 hereof or such other address as to which the
Trustee may give notice to the Company.

          “Credit Agreements” means, with respect to the Company or any Restricted
Subsidiary, one or more debt facilities (including, without limitation, the
Credit Facility) or commercial paper

-5-

 

facilities with banks or other institutional lenders providing for
revolving credit loans, term loans, receivables financing (including through
the sale of receivables to such lenders or to special purpose entities formed
to borrow from such lenders against such receivables) or letters of credit, in
each case, as amended, restated, modified, renewed, refunded, replaced or
refinanced in whole or in part from time to time. Debt under Credit Agreements
outstanding on the date on which Notes are first issued and authenticated under
this Indenture shall be deemed to have been incurred on such date in reliance
on the exception provided by clause (i) of the definition of Permitted Debt.

          “Credit Facility” means, collectively, the Revolving Credit and Term Loan
Agreement dated as of March 8, 2002, as amended by Amendment No. 1 thereto
dated March 7, 2003 by and among the Company, certain agents and certain
lending institutions party thereto and the Revolving Credit and Term Loan
Agreement dated as of March 8, 2002, as amended by Amendment No. 1 thereto
dated March 7, 2003 by and among Flextronics International U.S.A. Inc., and
certain agents and certain lending institutions party thereto and in each case,
as amended, modified, renewed, restated, refunded, replaced or refinanced from
time to time.

          “Debt” means, with respect to any Person, any indebtedness of such Person,
whether or not contingent, in respect of borrowed money or evidenced by bonds,
notes, debentures or similar instruments or letters of credit (or reimbursement
agreements in respect thereof) or banker’s acceptances or representing Capital
Lease Obligations or the balance deferred and unpaid of the purchase price of
any property or representing any Hedging Obligations, except any such balance
that constitutes an accrued expense or trade payable, if and to the extent any
of the foregoing indebtedness (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of such Person
prepared in accordance with GAAP, as well as all Debt of others secured by a
Lien on any asset of such Person (whether or not such Debt is assumed by such
Person) and, to the extent not otherwise included, the Guarantee by such Person
of any Debt of any other Person. The amount of any Debt outstanding as of any
date shall be (i) the accreted value thereof, in the case of any Debt that does
not require current payments of interest, and (ii) the principal amount
thereof, together with any interest thereon that is more than 30 days past due,
in the case of any other Debt.

          “Default” means any event that is or with the passage of time or the
giving of notice or both would be an Event of Default.

          “Definitive Note” means a certificated Note registered in the name of the
Holder thereof and issued in accordance with Section 2.06 hereof, in the form
of Exhibit A-1 hereto except that such Note shall not bear the Global Note
Legend and shall not have the “Schedule of Exchanges of Interests in the Global
Note” attached thereto, but may bear the Private Placement Legend, if
applicable.

          “Depositary” means, with respect to the Notes issuable or issued in whole
or in part in global form, the Person specified in Section 2.03 hereof as the
Depositary with respect to the Notes, and all successors thereto appointed as
depositary hereunder and having become such pursuant to the applicable
provision of this Indenture.

          “Designated Senior Debt” means (i) any Debt under the Credit Facility (and
any guarantees thereof) and (ii) any other Senior Debt otherwise designated by
the Company (which designa-

-6-

 

tion shall have been approved in writing by the Representative under the
Credit Facility, and such approval shall have been delivered to the Trustee, so
long as (A) the Credit Facility is in effect and (B) the Company shall not then
be a party to a credit facility or similar arrangement (other than the Credit
Facility) that provides for loans in an aggregate principal amount that is
greater than the aggregate principal amount of loans to the Company that may be
made under the Credit Facility and that are not entered into in violation of
the Credit Facility), and the Representative thereunder, as “Designated Senior
Debt” and, in the case of the designation by the Company, certified in an
Officers’ Certificate delivered to the Trustee; provided that not less than
$5.0 million aggregate principal amount is outstanding under Designated Senior
Debt at the date of the designation and at the date of determination.

          “Disqualified Stock” means any Capital Stock that, by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
date that is 91 days after the date on which the Notes mature.

          “Equity Interests” means Capital Stock and all warrants, options or other
rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

          “Equity Sale” shall have the definition set forth in Section 3.07.

          “Euroclear” means Morgan Guaranty Trust Company of New York, Brussels
office, as operator of the Euroclear system.

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

          “Exchange Notes” means the Notes issued in the Exchange Offer pursuant to
Section 2.06(f) hereof.

          “Exchange Offer” has the meaning set forth in the Registration Rights
Agreement.

          “Exchange Offer Registration Statement” has the meaning set forth in the
Registration Rights Agreement.

          “Existing Debt” means Debt of the Company and its Restricted Subsidiaries
(other than Debt under the Credit Facility) in existence on the date of this
Indenture, until such amounts are repaid.

          “Fair Market Value” means, with respect to any asset or property, the
price which could be negotiated in an arm’s-length, free market transaction,
for cash, between a willing seller and a willing and able buyer, neither of
whom is under undue pressure or compulsion to complete the transaction. Fair
Market Value shall be determined by the Board of Directors of the Company
acting reasonably and in good faith and shall be evidenced by a Board
Resolution of the Board of Directors of the Company.

-7-

 

          “Fixed Charge Coverage Ratio” means with respect to any Person for any
period, the ratio of the Consolidated Cash Flow of such Person for such period
to the Fixed Charges of such Person for such period. In the event that the
Company or any of its Restricted Subsidiaries incurs, assumes, Guarantees or
redeems any Debt (other than revolving credit borrowings) or issues preferred
stock subsequent to the commencement of the period for which the Fixed Charge
Coverage Ratio is being calculated but prior to the date on which the event for
which the calculation of the Fixed Charge Coverage Ratio is made (the
“Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated
giving pro forma effect to such incurrence, assumption, Guarantee or redemption
of Debt, or such issuance or redemption of preferred stock, as if the same had
occurred at the beginning of the applicable four-quarter reference period. In
addition, for purposes of making the computation referred to above, (i)
acquisitions that have been made by the Company or any of its Restricted
Subsidiaries, including through mergers or consolidations and including any
related financing transactions, during the four-quarter reference period or
subsequent to such reference period and on or prior to the Calculation Date
shall be deemed to have occurred on the first day of the four-quarter reference
period and Consolidated Cash Flow for such reference period shall be calculated
without giving effect to clause (iii) of the proviso set forth in the
definition of Consolidated Net Income, (ii) the Consolidated Cash Flow
attributable to discontinued operations, as determined in accordance with GAAP,
and operations or businesses disposed of prior to the Calculation Date, shall
be excluded, and (iii) the Fixed Charges attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, shall be excluded, but only to the
extent that the obligations giving rise to such Fixed Charges will not be
obligations of the referent Person or any of its Subsidiaries following the
Calculation Date.

          “Fixed Charges” means, with respect to any Person for any period, the sum,
without duplication, of (i) the consolidated interest expense of such Person
and its Restricted Subsidiaries for such period, whether paid or accrued
(including, without limitation, amortization of debt issuance costs and
original issue discount, non-cash interest payments, the interest component of
any deferred payment obligations, the interest component of all payments
associated with Capital Lease Obligations, imputed interest with respect to
Attributable Debt, commissions, discounts and other fees and charges incurred
in respect of letter of credit or bankers’ acceptance financings, and net
payments (if any) pursuant to Hedging Obligations), (ii) the consolidated
interest expense of such Person and its Restricted Subsidiaries that was
capitalized during such period, (iii) any interest expense on Debt of another
Person that is Guaranteed by such Person or one of its Restricted Subsidiaries
or secured by a Lien on assets of such Person or one of its Restricted
Subsidiaries (whether or not such Guarantee or Lien is called upon) and (iv)
the product of (a) all dividend payments, whether or not in cash, on any series
of preferred stock of such Person or any of its Restricted Subsidiaries, other
than dividend payments on Equity Interests payable solely in Equity Interests
of the Company, times (b) a fraction, the numerator of which is one and the
denominator of which is one minus the then current combined federal, state and
local statutory tax rate of such Person expressed as a decimal, in each case,
on a consolidated basis and in accordance with GAAP.

          “GAAP” means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect.

-8-

 

          “Global Note Legend” means the legend set forth in Section 2.06(g)(ii),
which is required to be placed on all Global Notes issued under this Indenture.

          “Global Notes” means, individually and collectively, each of the
Restricted Global Notes and the unrestricted Global Notes, in the form of
Exhibit A-1 or A-2 hereto issued in accordance with Section 2.01, 2.06(b)(iv),
2.06(d)(ii) or 2.06(f) hereof and bearing the Global Note Legend.

          “Government Securities” means securities that are (a) direct obligations
(or certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentally thereof) the
payment of which the full faith and credit of the United States of America is
pledged, (b) 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 or (c) obligations of a Person the payment of
which is unconditionally guaranteed as a full faith and credit obligation by
the United States of America.

          “Guarantee” means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, letters of credit and
reimbursement agreements in respect thereof), of all or any part of any Debt.

          “Hedging Obligations” means, with respect to any Person, the obligations
of such Person under (i) currency exchange or interest rate swap agreements,
interest rate cap agreements and interest rate collar agreements and (ii) other
agreements or arrangements designed to protect such Person against fluctuations
in interest rates or currency exchange rates.

          “Holder” means a Person in whose name a Note is registered on the
Registrar’s or any co-registrar’s books.

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

          “Indirect Participant” means a Person who holds a beneficial interest in a
Global Note through a Participant.

          “Initial Purchaser” shall have the meaning assigned to such term in the
Offering Memorandum.

          “interest,” when used with respect to any Note, means the amount of all
interest accruing on such Note, including Liquidated Damages payable on the
Notes pursuant to the Registration Rights Agreement, any applicable Additional
Amounts that may become payable in respect of the Notes and all interest
accruing subsequent to the occurrence of any events specified in Sections
6.01(vii) and (viii) hereof or which would have accrued but for any such event,
whether or not such claims are allowable under applicable law.

          “Interest Payment Date” shall have the meaning assigned to such term in
the Notes.

-9-

 

          “Investments” means, with respect to any Person, all investments by such
Person in other Persons (including Affiliates) in the forms of direct or
indirect loans (including guarantees of Debt or other obligations), advances or
capital contributions (excluding commission, travel and other advances to
officers and employees made in the ordinary course of business), purchases or
other acquisitions for consideration of Debt, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. If the
Company or any Restricted Subsidiary of the Company sells or otherwise disposes
of any Equity Interests of any direct or indirect Restricted Subsidiary of the
Company such that, after giving effect to any such sale or disposition, such
Person is no longer a Subsidiary of the Company, the Company shall be deemed to
have made an Investment on the date of any such sale or disposition equal to
the fair market value of the Equity Interests of such Subsidiary not sold or
disposed of in an amount determined as provided in the final paragraph of
Section 4.07.

          “Issue Date” means the date of first issuance of the Notes under the
Indenture.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
on such payment for the intervening period.

          “Letter of Transmittal” means the letter of transmittal to be prepared by
the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

          “Lien” means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement, any lease
in the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement
under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction).

          “Liquidated Damages” shall have the meaning specified in the Notes.

          “Net Income” means, with respect to any Person, the net income (loss) of
such Person, determined in accordance with GAAP and before any reduction in
respect of preferred stock dividends, excluding, however, (i) any gain (but not
loss), together with any related provision for taxes on such gain (but not
loss), realized in connection with (a) any Asset Sale (including, without
limitation, dispositions pursuant to sale and leaseback transactions) or (b)
the disposition of any securities by such Person or any of its Subsidiaries or
the extinguishment of any Debt of such Person or any of its Subsidiaries and
(ii) any extraordinary or non-recurring gain (but not loss), together with any
related provision for taxes on such extraordinary or non-recurring gain (but
not loss).

          “Net Proceeds” means the aggregate cash proceeds received by the Company
or any of its Restricted Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of (i) the direct costs
relating to such Asset Sale (including, without limitation, legal, accounting

-10-

 

and investment banking fees, and sales commissions) and any relocation
expenses incurred as a result thereof, (ii) taxes paid or payable as a result
thereof (after taking into account any available tax credits or deductions and
any tax sharing arrangements), (iii) any reserve for adjustment in respect of
the sale price of such asset or assets established in accordance with GAAP, or
against any liabilities associated with the Asset Sale, or the assets subject
thereto, and retained by the Company or any Restricted Subsidiary, and (iv)
amounts required to be applied to the repayment of Debt secured by a Lien on
the asset or assets that were the subject of such Asset Sale, or to the
satisfaction of contractual obligations either existing at the date of this
Indenture, or entered into after the date of this Indenture in connection with
the payment of deferred purchase price of the properties or assets that were
the subject of such Asset Sale.

          “Non-U.S. Person” means a Person who is not a U.S. Person.

          “Note Custodian” means the Person specified in Section 2.03 hereof as the
Note Custodian with respect to the Global Notes or any successor entity thereto
appointed as Note Custodian hereunder and having become such pursuant to the
applicable provision of this Indenture.

          “Notes” has the meaning assigned to it in the preamble to this Indenture.

          “Obligations” means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Debt.

          “Offering Memorandum” means the offering memorandum of the Company, dated
May 5, 2003, relating to the Notes.

          “Officer” means the Chief Executive Officer, any president, the Chief
Financial Officer and any vice president of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers.

          “Opinion of Counsel” means an opinion from legal counsel who is reasonably
acceptable to the Trustee and that meets the requirements of Section 12.05
hereof. The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company, any Affiliate of the Company or the Trustee.

          “Pari Passu Debt” shall mean (i) any Debt of the Company that is pari
passu in right of payment to the Notes and (ii) with respect to any Guarantee
of the Notes, Debt which ranks pari passu in right of payment to such
Guarantee.

          “Pari Passu Debt Amount” shall have the definition set forth in Section
4.10.

          “Participant” means members of, or participants in, the Depositary.

          “Participating Broker-Dealer” has the meaning set forth in the
Registration Rights Agreement.

          “Permitted Debt” shall have the meaning set forth in Section 4.09.

-11-

 

          “Permitted Investments” means (a) any Investment in the Company or in a
Restricted Subsidiary of the Company that is engaged in the same or a similar
line of business as the Company and its Restricted Subsidiaries (or reasonable
extensions or expansions thereof); (b) any Investment in Cash Equivalents; (c)
any Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment (i) such Person becomes a Restricted
Subsidiary of the Company that is engaged in the same or a similar line of
business as the Company and its Restricted Subsidiaries (or reasonable
extensions or expansions thereof) or (ii) such Person is merged, consolidated
or amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Company or a Restricted Subsidiary of the
Company that is engaged in the same or a similar line of business as the
Company and its Restricted Subsidiaries (or reasonable extensions or expansions
thereof); (d) any Restricted Investment made as a result of the receipt of
non-cash consideration from an Asset Sale that was made pursuant to and in
compliance with Section 4.10; (e) any acquisition of assets solely in exchange
for the issuance of Equity Interests (other than Disqualified Stock) of the
Company; (f) Investments made in exchange for accounts receivable arising in
the ordinary course of business which have not been collected for 120 days and
which are, in the good faith judgment of the Company, substantially impaired,
provided that any such Investments in excess of $5.0 million shall be approved
by the Board of Directors (evidenced by a resolution of the Board of Directors
set forth in an Officers’ Certificate delivered to the Trustee); (g)
Investments in Permitted Joint Ventures, and Investments in suppliers to the
Company and its Restricted Subsidiaries, in an aggregate amount which when
taken together with all other investments pursuant to this clause (g) does not
exceed the greater of $10.0 million or 10% of Total Assets at any one time
outstanding; (h) other Investments in any Person having an aggregate fair
market value (measured on the date each such Investment was made and without
giving effect to subsequent changes in value), when taken together with all
other Investments made pursuant to this clause (h) that are at the time
outstanding, not to exceed $25.0 million; (i) loans to employees of the Company
not to exceed $10.0 million at any one time outstanding; (j) Investments
received in connection with any bankruptcy or reorganization proceeding, or as
a result of foreclosure, perfection or enforcement of any Lien or any judgment
or settlement of any Person in exchange for or satisfaction of Debt or other
obligations or other property received from such Person, or for other
liabilities or obligations of such Person created, in accordance with the terms
of this Indenture; and (k) Investments in Hedging Obligations as permitted by
Section 4.09. For purposes of calculating the aggregate amount of Permitted
Investments permitted to be outstanding at any one time pursuant to clauses (g)
and (h) of the preceding sentence and for calculating the amount of Restricted
Investments made pursuant to and in compliance with Section 4.07, (i) to the
extent the consideration for any such Investment consists of Equity Interests
(other than Disqualified Stock) of the Company, the value of the Equity
Interests so issued will be ignored in determining the amount of such
Investment and (ii) the aggregate amount of such Investments made by the
Company and its Restricted Subsidiaries on or after the date of this Indenture
will be decreased (but not below zero) by an amount equal to the lesser of (y)
the cash return of capital to the Company or a Restricted Subsidiary w
ith
respect to such Investment that is sold for cash or otherwise liquidated or
repaid for cash (less the cost of disposition, including applicable taxes, if
any) and (z) the initial amount of such Investment.

          “Permitted Joint Venture” means any Person which is, directly or
indirectly through its subsidiaries or otherwise, engaged principally in the
principal business of the Company, or a reasonably related or complementary
business, and the Capital Stock (or securities convertible into Capital Stock)
of which is owned by the Company and one or more Persons other than the Company
or any affiliate of the Company.

-12-

 

          “Permitted Junior Securities” means Equity Interests in the Company or
debt securities that are subordinated to all Senior Debt (and any debt
securities issued in exchange for Senior Debt) to substantially the same extent
as, or to a greater extent than, the Notes are subordinated to Senior Debt
pursuant to this Indenture.

          “Permitted Refinancing Debt” means any Debt of the Company or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which
are used to extend, refinance, renew, replace, defease or refund, other Debt of
the Company or any of its Restricted Subsidiaries, provided that: (i) the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Debt does not exceed the principal amount of (or accreted value, if
applicable), plus accrued interest on, the Debt so extended, refinanced,
renewed, replaced, defeased or refunded (plus the amount of reasonable expenses
incurred in connection therewith); (ii) such Permitted Refinancing Debt has a
final maturity date later than the final maturity date of, and has a Weighted
Average Life to Maturity equal to or greater than the Weighted Average Life to
Maturity of, the Debt being extended, refinanced, renewed, replaced, defeased
or refunded; (iii) if the Debt being extended, refinanced, renewed, replaced,
defeased or refunded is subordinated in right of payment to the Notes, such
Permitted Refinancing Debt has a final maturity date later than the final
maturity date of, and is subordinated in right of payment to, the Notes on
terms at least as favorable to the Holders of Notes as those contained in the
documentation governing the Debt being extended, refinanced, renewed, replaced,
defeased or refunded; and (iv) such Debt is incurred either by the Company or
by the Subsidiary which is the obligor on the Debt being extended, refinanced,
renewed, replaced, defeased or refunded.

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

          “Private Exchange Notes” shall have the meaning specified in the
Registration Rights Agreement.

          “Private Placement Legend” means the legend set forth in Section
2.06(g)(i) to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

          “Purchase Money Obligations” of a Person means Debt of such Person
incurred in connection with the purchase, construction or improvement of
property, plant or equipment used in the business of such Person.

          “QIB” means a “qualified institutional buyer,” as defined in Rule 144A.

          “Receivables Program” means, with respect to any Person, an agreement or
other arrangement or program providing for the advance of funds to such Person
against the pledge, contribution, sale or other transfer of encumbrances of
Receivables Program Assets of such Person or such Person and/or one or more of
its Restricted Subsidiaries.

          “Receivables Program Assets” means all of the following property and
interests in property, whether now existing or existing in the future or
hereafter arising or acquired: (i) accounts,

-13-

 

(ii)  accounts receivable, general intangibles, instruments, contract
rights, documents and chattel paper (including, without limitation, all rights
to payment created by or arising from sales of goods, leases of goods, or the
rendition of services, no matter how evidenced, whether or not earned by
performance), (iii) all unpaid seller’s or lessor’s rights (including, without
limitation, rescission, replevin, reclamation and stoppage in transit) relating
to any of the foregoing or arising therefrom, (iv) all rights to any goods or
merchandise represented by any of the foregoing (including, without limitation,
returned or repossessed goods), (v) all reserves and credit balances with
respect to any such accounts receivable or account debtors, (vi) all letters of
credit, security or guarantees of any of the foregoing, (vii) all insurance
policies or reports relating to any of the foregoing, (viii) all collection or
deposit accounts relating to any of the foregoing, (ix) all books and records
relating to any of the foregoing, (x) all instruments, contract rights, chattel
paper, documents and general intangibles related to any of the foregoing and
(xi) all proceeds of any of the foregoing.

          “Receivables Program Debt” means, with respect to any Person, the
unreturned portion of the amount funded by the investors under a Receivables
Program of such Person.

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

          “Registration Rights Agreement” means the Registration Rights Agreement,
dated as of the date hereof, by and among the Company and the other parties
named on the signature pages thereof, as such agreement may be amended,
modified or supplemented from time to time.

          “Registration Statement” means either the Exchange Offer Registration
Statement or the Shelf Registration Statement.

          “Regulation S” means Regulation S promulgated under the Securities Act.

          “Regulation S Global Note” means a Regulation S Temporary Global Note or
Regulation S Permanent Global Note, as appropriate.

          “Regulation S Permanent Global Note” means a permanent Global Note in the
form of Exhibit A-1 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding aggregate principal amount of the Regulation S Temporary Global
Note upon expiration of the Restricted Period.

          “Regulation S Temporary Global Note” means a temporary Global Note in the
form of Exhibit A-2 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding aggregate principal amount of the Notes initially sold in reliance
on Rule 903 of Regulation S.

          “Responsible Officer,” when used with respect to the Trustee, means any
officer within the Corporate Trust Department of the Trustee (or any successor
group of the Trustee) or any

-14-

 

other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

          “Restricted Definitive Note” means a Definitive Note bearing the Private
Placement Legend.

          “Restricted Global Note” means a Global Note bearing the Private Placement
Legend and includes 144A Global Notes and Regulation S Global Notes.

          “Restricted Investment” means an Investment other than a Permitted
Investment.

          “Restricted Note” means either a Restricted Definitive Note or a
Restricted Global Note.

          “Restricted Period” means the 40-day distribution compliance period as
defined in Regulation S.

          “Restricted Subsidiary” of a Person means any Subsidiary of the referent
Person that is not an Unrestricted Subsidiary. On the date the Notes are
issued, all Subsidiaries will be Restricted Subsidiaries.

          “Rule 144” means Rule 144 promulgated under the Securities Act.

          “Rule 144A” means Rule 144A promulgated under the Securities Act.

          “Rule 903” means Rule 903 promulgated under the Securities Act.

          “Rule 904” means Rule 904 promulgated under the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended (or any
successor Act), and the rules and regulations promulgated thereunder (or
respective successor thereto).

          “Senior Debt” means (i) all Debt of the Company outstanding under Credit
Facilities and all Hedging Obligations with respect thereto, (ii) any other
Debt permitted to be incurred by the Company under the terms of this Indenture,
unless the instrument under which such Debt is incurred expressly provides that
it is on a parity with or subordinated in right of payment to the Notes, and
(iii) all Obligations with respect to the foregoing. Notwithstanding anything
to the contrary in the foregoing, Senior Debt will not include (w) any
liability for federal, state, local or other taxes owed or owing by the
Company, (x) any Debt of the Company to any of its Restricted Subsidiaries or
other Affiliates, (y) any trade payables or (z) any Debt that is incurred in
violation of this Indenture.

          “Shelf Registration Statement” means the Shelf Registration Statement as
defined in the Registration Rights Agreement.

-15-

 

          “Significant Subsidiary” means any Restricted Subsidiary that would be a
“significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof.

          “Special Record Date” for the payment of any defaulted interest means a
date fixed by the Trustee pursuant to Section 2.12 hereof.

          “Stated Maturity” means, with respect to any installment of interest or
principal on any series of Debt, the date on which such payment of interest or
principal was scheduled to be paid in the original documentation governing such
Debt, and shall not include any contingent obligations to repay, redeem or
repurchase any such interest or principal prior to the date originally
scheduled for the payment thereof.

          “Subject Country” shall mean any jurisdiction other than the country of
Singapore and the United States of America, or any state thereof or the
District of Columbia.

          “Subordinated Debt” means any Debt of the Company which is by its terms
subordinated in right of payment to the Notes.

          “Subsidiary” means, with respect to any Person, (i) any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of that Person (or a
combination thereof) and (ii) any partnership (a) the sole general partner or
the managing general partner of which is such Person or a Subsidiary of such
Person or (b) the only general partners of which are such Person or one or more
Subsidiaries of such Person (or any combination thereof).

          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) as in effect on the date on which this Indenture is qualified
under the TIA, except as set forth in Section 9.03.

          “Total Assets” means, with respect to any date of determination, the total
assets of the Company shown on the Company’s consolidated balance sheet in
accordance with GAAP on the last day of the fiscal quarter prior to the date of
determination.

          “Trustee” means the party named as such above until a successor replaces
it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

          “Unrestricted Definitive Note” means one or more Definitive Notes that do
not bear and are not required to bear the Private Placement Legend.

          “Unrestricted Global Note” means a permanent Global Note in the form of
Exhibit A-1 attached hereto that bears the Global Note Legend and that has the
“Schedule of Exchanges of Inter-

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ests in the Global Note” attached thereto, and that is deposited with or
on behalf of and registered in the name of the Depositary, representing Notes
that do not bear the Private Placement Legend.

          “Unrestricted Subsidiary” means any Subsidiary of the Company that is
designated by the Board of Directors as an Unrestricted Subsidiary in
accordance with Section 4.15.

          “U.S. Person” means a U.S. person as defined in Rule 902(o) under the
Securities Act.

          “Voting Stock” of any Person means Capital Stock of such Person which
ordinarily has voting power for the election of directors (or persons
performing similar functions) of such Person, whether at all times or only so
long as no senior class of securities has such voting power by reason of any
contingency.

          “Weighted Average Life to Maturity” means, when applied to any Debt at any
date, the number of years obtained by dividing (i) the sum of the products
obtained by multiplying (a) the amount of each then remaining installment,
sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect thereof, by (b) the number of
years (calculated to the nearest one-twelfth) that will elapse between such
date and the making of such payment, by (ii) the then outstanding principal
amount of such Debt.

          “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person
all of the outstanding Equity Interests or other ownership interests of which
(other than directors’ qualifying shares) shall at the time be owned by such
Person or by one or more Wholly Owned Subsidiaries of such Person or by such
Person and one or more Wholly Owned Subsidiaries of such Person.

SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined
	Term 
             	 	in Section
	
	 	

	“Affiliate Transaction”	 	 	
4.11	 
	“Asset Sale Offer”	 	 	
4.10	 
	“Authentication Order”	 	 	
2.02	 
	“Change of Control Offer”	 	 	
4.14	 
	“Change of Control Payment”	 	 	
4.14	 
	“Change of Control Payment Date”	 	 	
4.14	 
	“Covenant Defeasance”	 	 	
8.03	 
	“Events of Default”	 	 	
6.01	 
	“Excess Proceeds”	 	 	
4.10	 
	“incur”	 	 	
4.09	 
	“Investment Company Act”	 	 	
4.18	 
	“Legal Defeasance”	 	 	
8.02	 
	“Offer Amount”	 	 	
3.09	 
	“Offer Period”	 	 	
3.09	 
	“Paying Agent”	 	 	
2.03	 
	“Permitted Debt”	 	 	
4.09	 

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	 	 	Defined
	Term 
             	 	in Section
	
	 	

	“Purchase Date”	 	 	
3.09	 
	“Registrar”	 	 	
2.03	 
	“Registration”	 	 	
4.03	 
	“Restricted Payments”	 	 	
4.07	 

SECTION 1.03. Trust Indenture Act Definitions.

          Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

          The following TIA terms used in this Indenture have the following
meanings:

          “indenture securities” means the Notes;

          “indenture security holder” means a Holder;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee; and

          “obligor” on the Notes means the Company and any successor obligor upon
the Notes.

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

SECTION 1.04. Rules of Construction.

          Unless the context otherwise requires:

		
	 	     (1)     a term has the meaning assigned to it;
	 
	 	     (2)     an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
	 
	 	     (3)     “or” is not exclusive;
	 
	 	     (4)     words in the singular include the plural, and in the plural
include the singular;
	 
	 	     (5)     provisions apply to successive events and transactions;
	 
	 	     (6)     references to sections of or rules under the Securities Act
shall be deemed to include substitute, replacement or successor sections
or rules adopted by the Commission from time to time;
	 
	 	     (7)     “herein,” “hereof” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or
other subdivision; and

-18-

 

		
	 	     (8)     the words “including,” “includes” and similar words shall be
deemed to be followed by “without limitation.”

ARTICLE 2

THE NOTES

SECTION 2.01. Form and Dating.

          (a)     General.

          The Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibits A-1 and A-2 hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage or agreements to which the Company is subject. Each Note shall be dated
the date of its authentication. The Notes shall be in denominations of $1,000
and integral multiples thereof.

          The terms and provisions contained in the Notes shall constitute, and are
hereby expressly made, a part of this Indenture and 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. However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.

          (b)     Global Notes.

          Notes issued in global form shall be substantially in the form of Exhibits
A-1 or A-2 attached hereto (including the Global Note Legend thereon and the
“Schedule of Exchanges of Interests in the Global Note” attached thereto).
Notes issued in definitive form shall be substantially in the form of Exhibit
A-1 attached hereto (but without the Global Note Legend thereon and without the
“Schedule of Exchanges of Interests in the Global Note” attached thereto).
Each Global Note shall represent such of the aggregate principal amount of the
outstanding Notes as shall be specified therein and each shall provide that it
shall represent the aggregate principal amount of outstanding Notes from time
to time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, repurchases and redemptions. Any
endorsement of a Global Note to reflect the amount of any increase or decrease
in the aggregate principal amount of outstanding Notes represented thereby
shall be made by the Trustee or the Note Custodian, at the direction of the
Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.06 hereof.

          (c)     Temporary Global Notes.

          Notes offered and sold in reliance on Regulation S shall be issued
initially in the form of the Regulation S Temporary Global Notes, which shall
be deposited on behalf of the purchasers of the Notes represented thereby with
the Trustee, the Note Custodian, as custodian for the Depositary,

-19-

 

registered in the name of the Depositary or the nominee of the Depositary
for the accounts of designated agents holding on behalf of Euroclear or
Clearstream, Luxembourg, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. Upon termination of the Restricted Period and
the receipt by the Trustee of (i) a written certificate from the Depositary,
together with copies of certificates from Euroclear and Clearstream, Luxembourg
certifying that they have received certification of non-United States
beneficial ownership of 100% of the aggregate principal amount of the
Regulation S Temporary Global Note (except to the extent of any beneficial
owners thereof who acquired an interest therein during the Restricted Period
pursuant to another exemption from registration under the Securities Act and
who will take delivery of a beneficial ownership interest in a 144A Global Note
bearing a Private Placement Legend, all as contemplated by Section 2.06(b)(iii)
hereof), and (ii) an Officers’ Certificate from the Company, beneficial
interests in the Regulation S Temporary Global Note shall be exchanged for
beneficial interests in Regulation S Permanent Global Notes pursuant to the
Applicable Procedures. Simultaneously with the authentication of Regulation S
Permanent Global Notes, the Trustee shall, upon direction of the Company,
cancel the Regulation S Temporary Global Note. The aggregate principal amount
of the Regulation S Temporary Global Note and the Regulation S Permanent Global
Notes may from time to time be increased or decreased by adjustments made on
the records of the Trustee and the Depositary or its nominee, as the case may
be, in connection with transfers of interest as hereinafter provided.

          (d)     Euroclear and Clearstream, Luxembourg Procedures Applicable.

          The provisions of the “Operating Procedures of the Euroclear System” and
“Terms and Conditions Governing Use of Euroclear” and the “General Terms and
Conditions of Clearstream, Luxembourg” and “Customer Handbook” of Clearstream,
Luxembourg shall be applicable to transfers of beneficial interests in the
Regulation S Temporary Global Note and the Regulation S Permanent Global Notes
that are held by Participants through Euroclear or Clearstream, Luxembourg.

SECTION 2.02. Execution and Authentication.

          Two Officers or one Officer and the Secretary or an Assistant Secretary of
the Company shall sign the Notes for the Company by manual or facsimile
signature.

          If an Officer, Secretary or Assistant Secretary whose signature is on a
Note no longer holds that office at the time a Note is authenticated, the Note
shall nevertheless be valid.

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

          The Trustee shall, upon a written order of the Company signed by two
Officers or one Officer and the Secretary or an Assistant Secretary of the
Company (an “Authentication Order”), authenticate Notes for original issue up
to the aggregate principal amount stated in paragraph 4 of the Notes. The
aggregate principal amount of Notes outstanding at any time may not exceed
$1,000,000 except as provided in Section 2.07 hereof.

          The Trustee may appoint an authenticating agent acceptable to the Company
to authenticate Notes. An authenticating agent may authenticate Notes whenever
the Trustee may do so.

-20-

 

Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as
an Agent to deal with Holders or an Affiliate of the Company.

SECTION 2.03.  Registrar and Paying Agent.

          The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange (“Registrar,” which term
shall also include any co-registrar) and an office or agency where Notes may be
presented for payment (“Paying Agent”). As long as the Notes are listed on the
Luxembourg Stock Exchange and as long as the rules of this exchange require,
the Company will also maintain a Paying Agent and a transfer agent in
Luxembourg. The Registrar shall keep a register of the Notes and of their
transfer and exchange. The Company may appoint one or more co-registrars and
one or more additional paying agents. The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying agent.
The Company may change any Paying Agent or Registrar without notice to any
Holder. The Company shall notify the Trustee in writing of the name and
address of any Paying Agent 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 of its Subsidiaries may act as
Paying Agent or Registrar.

          The Company initially appoints The Depository Trust Company (“DTC”) to act
as Depositary with respect to the Global Notes.

          The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Note Custodian with respect to the Global Notes.

          The Trustee is authorized and directed to enter into a letter of
representations with DTC in the form provided to the Trustee by the Company and
to act in accordance with such letter.

SECTION 2.04.  Paying Agent to Hold Money in Trust.

          The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or Liquidated Damages, if any, or interest on the Notes, and
shall notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all such money held by it to the Trustee. The Company at any time
may require a Paying Agent to pay all such money held by it to the Trustee.
Upon payment over to the Trustee, the Paying Agent (if other than the Company
or a Subsidiary) shall have no further liability for the money. If the Company
or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying Agent.
Upon any bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Notes.

SECTION 2.05.  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
all Holders and shall otherwise comply with

-21-

 

TIA Section 312(a). If the Trustee is not the Registrar, the Company
shall furnish to the Trustee at least seven Business Days before 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 the Holders and the Company shall otherwise comply
with TIA Section 312(a).

SECTION 2.06.  Transfer and Exchange.

          (a)     Transfer and Exchange of Global Notes.

          A Global Note may not be transferred as a whole except by the Depositary
to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary. All Global Notes will be exchanged by the Company for Definitive
Notes if (i) the Company delivers to the Trustee a notice from the Depositary
that it is unwilling or unable to continue to act as Depositary or that it is
no longer a clearing agency registered under the Exchange Act and, in either
case, a successor Depositary is not appointed by the Company within 120 days
after the date of such notice from the Depositary or (ii) the Company in its
sole discretion determines that the Global Notes (in whole but not in part)
should be exchanged for Definitive Notes and delivers a written notice to such
effect to the Trustee; provided that in no event shall the Regulation S
Temporary Global Note be exchanged by the Company for Definitive Notes prior to
(x) the expiration of the Restricted Period and (y) the receipt by the
Registrar of any certificates determined by the Company to be required pursuant
to Rule 903(c)(3)(ii)(B) under the Securities Act. Upon the occurrence of
either of the preceding events in (i) or (ii) above, Definitive Notes shall be
issued in such names as the Depositary shall instruct the Trustee. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.07 and 2.10 hereof. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof pursuant to
this Section 2.06 or Section 2.07 or 2.10 hereof, shall be authenticated and
delivered in the form of, and shall be, a Global Note. A Global Note may not
be exchanged for another Note other than as provided in this Section 2.06(a);
however, beneficial interests in a Global Note may be transferred and exchanged
as provided in Section 2.06(b), (c) or (f) hereof.

          (b)     Transfer and Exchange of Beneficial Interests in the Global Notes.

          The transfer and exchange of beneficial interests in the Global Notes
shall be effected through the Depositary, in accordance with the provisions of
this Indenture and the Applicable Procedures. Beneficial interests in the
Restricted Global Notes shall be subject to restrictions on transfer comparable
to those set forth herein and therein to the extent required by the Securities
Act. Transfers of beneficial interests in the Global Notes also shall require
compliance with either subparagraph (i) or (ii) below, as applicable, as well
as one or more of the other following subparagraphs, as applicable:

		
	 	     (i)     Transfer of Beneficial Interests in the Same Global Note.
Beneficial interests in any Restricted Global Note may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in
the same Restricted Global Note in accordance with the transfer
restrictions set forth in the Private Placement Legend; provided,
however, that prior to the expiration of the Restricted Period transfers
of beneficial interests in the Temporary Regulation

-22-

 

		
	 	S Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser or to a
transferee who will take delivery of a beneficial ownership interest in a
144A Global Note bearing a Private Placement Legend in accordance with
Section 2.06(b)(iii) hereof). Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in
the form of a beneficial interest in an Unrestricted Global Note. No
written orders or instructions shall be required to be delivered to the
Registrar to effect the transfers described in this Section 2.06(b)(i).

		
	 	     (ii)     All Other Transfers and Exchanges of Beneficial Interests in
Global Notes. In connection with all transfers and exchanges of
beneficial interests that are not subject to Section 2.06(b)(i) above,
the transferor of such beneficial interest must deliver to the Depositary
either (A) (1) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a
beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase or
(B) (1) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to cause to be issued a Definitive Note in an
amount equal to the beneficial interest to be transferred or exchanged
and (2) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note shall
be registered to effect the transfer or exchange referred to in (1)
above, provided that in no event shall Definitive Notes be issued upon
the transfer or exchange of beneficial interests in the Regulation S
Temporary Global Note prior to (x) the expiration of the Restricted
Period and (y) the receipt by the Registrar of any certificates
determined by the Company to be required pursuant to Rule 903 under the
Securities Act. Upon consummation of an Exchange Offer by the Company in
accordance with Section 2.06(f) hereof, the requirements of this Section
2.06(b)(ii) shall be deemed to have been satisfied upon receipt by the
Registrar of the instructions contained in the Letter of Transmittal
delivered by the Holder of such beneficial interests in the Restricted
Global Notes. Upon satisfaction of all of the requirements for transfer
or exchange of beneficial interests in Global Notes contained in this
Indenture and the Notes or otherwise applicable under the Securities Act,
the Trustee shall adjust the principal amount of the relevant Global
Note(s) pursuant to Section 2.06(h) hereof.
	 
	 	     (iii)     Transfer of Beneficial Interests to Another Restricted Global
Note. A beneficial interest in any Restricted Global Note may be
transferred to a Person who takes delivery thereof in the form of a
beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.06(b)(ii) above and the
Registrar receives the following:

		
	 	     (A)     if the transferee will take delivery in the form of a
beneficial interest in the 144A Global Note, then the transferor
must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof; and
	 
	 	     (B)     if the transferee will take delivery in the form of a
beneficial interest in the Regulation S Temporary Global Note or
the Regulation S Global Note, then the

-23-

 

		
	 	transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (2) thereof.

		
	 	     (iv)     Transfer and Exchange of Beneficial Interests in a Restricted
Global Note for Beneficial Interests in the Unrestricted Global Note. A
beneficial interest in any Restricted Global Note may be exchanged by any
holder thereof for a beneficial interest in an Unrestricted Global Note
transferred to a Person who takes delivery thereof in the form of a
beneficial interest in a Unrestricted Global Note if the exchange or
transfer complies with the requirements of Section 2.06(b)(ii) above and:

		
	 	     (A)     such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the holder of the beneficial interest to be transferred, in the
case of an exchange, or the transferee, in the case of a transfer,
makes the certification required by Section 5 of the Registration
Rights Agreement in the applicable Letter of Transmittal or via the
Depositary’s book-entry system;
	 
	 	     (B)     such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights
Agreement;
	 
	 	     (C)     such transfer is effected by a Participating Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance
with the Registration Rights Agreement; or
	 
	 	     (D)     the Registrar receives the following:

		
	 	     (1)     if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial
interest for a beneficial interest in an Unrestricted Global
Note, a certificate from such holder in the form of Exhibit
C hereto, including the certifications in item (1)(a)
thereof; or
	 
	 	     (2)     if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the
form of a beneficial interest in an Unrestricted Global
Note, a certificate from such holder in the form of Exhibit
B hereto, including the certifications in item (3)(c) or (4)
thereof; and, in each such case set forth in this
subparagraph (D), if the Company or the Registrar so
requests or if the Applicable Procedures so require, an
Opinion of Counsel in form reasonably acceptable to the
Company or the Registrar, as applicable, to the effect that
such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no
longer required in order to maintain compliance with the
Securities Act.

          If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt

-24-

 

of an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate one or more Unrestricted Global Notes in an
aggregate principal amount equal to the aggregate principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (D) above.

          Beneficial interests in an Unrestricted Global Note cannot be exchanged
for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note.

          (c)     Transfer or Exchange of Beneficial Interests for Definitive Notes.

		
	 	     (i)     Beneficial Interests in Restricted Global Notes to Restricted
Definitive Notes. If any holder of a beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a
Person who takes delivery thereof in the form of a Restricted Definitive
Note, then, upon receipt by the Registrar of the following documentation:

		
	 	     (A)     if the holder of such beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note, a certificate from such holder in the
form of Exhibit C hereto, including the certifications in item
(2)(a) thereof;
	 
	 	     (B)     if such beneficial interest is being transferred to a QIB
in accordance with Rule 144A, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (1)
thereof;
	 
	 	     (C)     if such beneficial interest is being transferred to a
Non-U.S. Person in an offshore transaction in accordance with Rule
903 or Rule 904, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;
	 
	 	     (D)     if such beneficial interest is being transferred pursuant
to an exemption from the registration requirements of the
Securities Act in accordance with Rule 144, a certificate to the
effect set forth in Exhibit B hereto, including the certifications
in item (3)(a) thereof; or
	 
	 	     (E)     if such beneficial interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item
(3)(b) thereof,

		
	 	
the Trustee shall cause the aggregate principal amount of the applicable
Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof,
and the Company shall execute and the Trustee shall authenticate and
deliver to the Person designated in the instructions a Definitive Note in
the appropriate principal amount. Any Definitive Note issued in exchange
for a beneficial interest in a Restricted Global Note pursuant to this
Section 2.06(c) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest shall instruct the Registrar through instructions from the
Depositary and the Participant or Indirect Participant. The Trustee
shall make available for delivery such

-25-

 

		
	 	Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(c)(i)
shall bear the Private Placement Legend and shall be subject to all
restrictions on transfer contained therein.

		
	 	     (ii)     Notwithstanding Sections 2.06(c)(i)(A) and (C) hereof, a
beneficial interest in the Regulation S Temporary Global Note may not be
exchanged for a Definitive Note or transferred to a Person who takes
delivery thereof in the form of a Definitive Note prior to (x) the
expiration of the Restricted Period and (y) the receipt by the Registrar
of any certificates determined by the Company to be required pursuant to
Rule 903(c)(3)(ii)(B) under the Securities Act, except in the case of a
transfer pursuant to an exemption from the registration requirements of
the Securities Act other than Rule 903 or Rule 904.
	 
	 	     (iii)     Beneficial Interests in Restricted Global Notes to
Unrestricted Definitive Notes. A holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial interest for an
Unrestricted Definitive Note or may transfer such beneficial interest to
a Person who takes delivery thereof in the form of an Unrestricted
Definitive Note only if:

		
	 	     (A)     such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the holder of such beneficial interest, in the case of an
exchange, or the transferee, in the case of a transfer, makes the
certifications required by Section 5 of the Registration Rights
Agreement in the applicable Letter of Transmittal;
	 
	 	     (B)     such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights
Agreement;
	 
	 	     (C)     such transfer is effected by a Participating Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance
with the Registration Rights Agreement; or
	 
	 	     (D)     the Registrar receives the following:

		
	 	     (1)     if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial
interest for an Unrestricted Definitive Note that does not
bear the Private Placement Legend, a certificate from such
holder in the form of Exhibit C hereto, including the
certifications in item (1)(b) thereof; or
	 
	 	     (2)     if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the
form of an Unrestricted Definitive Note that does not bear
the Private Placement Legend, a certificate from such holder
in the form of Exhibit B hereto, including the
certifications in item (3)(c) or (4) thereof;

-26-

 

		
	 	and, in each such case set forth in this subparagraph (D), if the Company
or the Registrar so requests or if the Applicable Procedures so require,
an opinion of counsel in form reasonably acceptable to the Company or the
Registrar, as applicable, to the effect that such exchange or transfer is
in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no
longer required in order to maintain compliance with the Securities Act.
	 
	 	     (iv)     Beneficial Interests in Unrestricted Global Notes to
Unrestricted Definitive Notes. If any holder of a beneficial interest in
an Unrestricted Global Note proposes to exchange such beneficial interest
for a Definitive Note or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of a Definitive Note, then, upon
satisfaction of the conditions set forth in Section 2.06(b)(ii) hereof,
the Trustee shall cause the aggregate principal amount of the applicable
Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof,
and the Company shall execute and the Trustee shall authenticate and make
available for delivery to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section
2.06(c)(iv) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest shall instruct the Registrar through instructions from the
Depositary and the Participant or Indirect Participant. The Trustee
shall make available for delivery such Definitive Notes to the Persons in
whose names such Notes are so registered. Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(iv)
shall not bear the Private Placement Legend.
	 
	 	     (d)     Transfer and Exchange of Definitive Notes for Beneficial Interests.
	 
	 	     (i)     Restricted Definitive Notes to Beneficial Interests in
Restricted Global Notes. If any Holder of a Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted
Global Note or to transfer such Restricted Definitive Notes to a Person
who takes delivery thereof in the form of a beneficial interest in a
Restricted Global Note, then, upon receipt by the Registrar of the
following documentation:

		
	 	     (A)     if the Holder of such Restricted Definitive Note proposes
to exchange such Note for a beneficial interest in a Restricted
Global Note, a certificate from such Holder in the form of Exhibit
C hereto, including the certifications in item (2)(b) thereof;

		
	 	     (B)     if such Restricted Definitive Note is being transferred to
a QIB in accordance with Rule 144A, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (1)
thereof; or
	 
	 	     (C)     if such Restricted Definitive Note is being transferred to
a Non-U.S. Person in an offshore transaction in accordance with
Rule 903 or Rule 904, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (2) thereof,
upon confirmation of such receipt, the Trustee shall cancel the
Restricted Definitive Note, increase or cause to be increased the
aggregate principal amount of, in

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	 	the case of clause (A) above, the appropriate Restricted
Global Note, in the case of clause (B) above, the 144A Global Note,
and in the case of clause (C) above, the Regulation S Global Note,
in each case, bearing the Private Placement Legend.

		
	 	     (ii)     Restricted Definitive Notes to Beneficial Interests in
Unrestricted Global Notes. A Holder of a Restricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global
Note or transfer such Restricted Definitive Note to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note only if:

		
	 	     (A)     such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the Holder, in the case of an exchange, or the transferee, in
the case of a transfer, makes the certification required under
Section 5 of the Registration Rights Agreement in the applicable
Letter of Transmittal;
	 
	 	     (B)     such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights
Agreement;
	 
	 	     (C)     such transfer is effected by a Participating Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance
with the Registration Rights Agreement; or
	 
	 	     (D)     the Registrar receives the following:

		
	 	     (1)     if the Holder of such Definitive Notes proposes to
exchange such Notes for a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder in
the form of Exhibit C hereto, including the certifications
in item (1)(c) thereof; or
	 
	 	     (2)     if the Holder of such Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery
thereof in the form of a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder in
the form of Exhibit B hereto, including the certifications
in item (3)(c) or (4) thereof;

		
	 	and, in each such case set forth in this subparagraph (D), if the Company
or Registrar so requests or if the Applicable Procedures so require, an
opinion of counsel in form reasonably acceptable to the Company or
Registrar, as applicable, to the effect that such exchange or transfer is
in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no
longer required in order to maintain compliance with the Securities Act.

		
	 	                    Upon confirmation by the Registrar of satisfaction of the conditions
of any of the subparagraphs in this Section 2.06(d)(ii), the Trustee
shall cancel the Definitive Notes and

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	 	increase or cause to be increased the aggregate principal amount of
the Unrestricted Global Note.

		
	 	     (iii)     Unrestricted Definitive Notes to Beneficial Interests in
Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note
may exchange such Note for a beneficial interest in an Unrestricted
Global Note or transfer such Definitive Notes to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note at any time. Upon receipt of a request for such an exchange
or transfer, the Trustee shall cancel the applicable Unrestricted
Definitive Note and increase or cause to be increased the aggregate
principal amount of one of the Unrestricted Global Notes.
	 
	 	             If any such exchange or transfer from a Definitive Note to a
beneficial interest in a Global Note is effected pursuant to subparagraph
(ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global
Note has not yet been issued, the Company shall issue and, upon receipt
of an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate one or more Unrestricted Global Notes in an
aggregate principal amount equal to the aggregate principal amount of
Definitive Notes so transferred.

          (e)     Transfer and Exchange of Definitive Notes for Definitive Notes.

          Upon request by a Holder of Definitive Notes and such Holder’s compliance
with the provisions of this Section 2.06(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of
transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Definitive Notes duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Registrar duly executed by
such Holder or by his attorney, duly authorized in writing. In addition, the
requesting Holder shall provide any additional certifications, documents and
information, as applicable, required pursuant to the following provisions of
this Section 2.06(e).

		
	 	     (i)     Restricted Definitive Notes to Restricted Definitive Notes. Any
Restricted Definitive Note may be transferred to and registered in the
name of Persons who take delivery thereof in the form of a Restricted
Definitive Note if the Registrar receives the following:

		
	 	     (A)     if the transfer will be made pursuant to Rule 144A, then
the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof;
	 
	 	     (B)     if the transfer will be made pursuant to Rule 903 or Rule
904, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (2) thereof;
	 
	 	     (C)     if such beneficial interest is being transferred pursuant
to an exemption from the registration requirements of the
Securities Act in accordance with Rule 144, a certificate to the
effect set forth in Exhibit B hereto, including the certifications
in item (3)(a) thereof; or

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	 	     (D)     if such beneficial interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item
(3)(b) thereof.

		
	 	     (ii)     Restricted Definitive Notes to Unrestricted Definitive Notes.
Any Restricted Definitive Note may be exchanged by the Holder thereof for
an Unrestricted Definitive Note or transferred to a Person or Persons who
take delivery thereof in the form of an Unrestricted Definitive Note if:

		
	 	     (A)     such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement
and the Holder, in the case of an exchange, or the transferee, in
the case of a transfer, makes the certification required by Section
5 of the Registration Rights Agreement in the applicable Letter of
Transmittal;
	 
	 	     (B)     any such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights
Agreement;
	 
	 	     (C)     any such transfer is effected by a Participating
Broker-Dealer pursuant to the Exchange Offer Registration Statement
in accordance with the Registration Rights Agreement; or
	 
	 	     (D)     the Registrar receives the following:

		
	 	     (1)     if the Holder of such Restricted Definitive Notes
proposes to exchange such Notes for an Unrestricted
Definitive Note, a certificate from such Holder in the form
of Exhibit C hereto, including the certifications in item
(1)(d) thereof; or
	 
	 	     (2)     if the Holder of such Restricted Definitive Notes
proposes to transfer such Notes to a Person who shall take
delivery thereof in the form of an Unrestricted Definitive
Note, a certificate from such Holder in the form of Exhibit
B hereto, including the certifications in item (3)(c) or (4)
thereof;

		
	 	and, in each such case set forth in this subparagraph (D), if the
Company or Registrar so requests, an opinion of counsel in form
reasonably acceptable to the Company or Registrar, as applicable,
to the effect that such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained
herein and in the Private Placement Legend are no longer required
in order to maintain compliance with the Securities Act.

		
	 	     (iii)     Unrestricted Definitive Notes to Unrestricted Definitive
Notes. A Holder of Unrestricted Definitive Notes may transfer such Notes
to a Person who takes delivery thereof in the form of an Unrestricted
Definitive Note. Upon receipt of a request to register such a transfer,
the Registrar shall register the Unrestricted Definitive Notes pursuant
to the instructions from the Holder thereof.

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          (f)     Exchange Offer.

          Upon the consummation of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee shall
authenticate (i) one or more Unrestricted Global Notes in an aggregate
principal amount equal to the aggregate principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons
that make the certifications required by Section 5 of the Registration Rights
Agreement in the applicable Letters of Transmittal or via the Depositary’s
book-entry system, and accepted for exchange in the Exchange Offer and (ii)
Definitive Notes in an aggregate principal amount equal to the aggregate
principal amount of the Restricted Definitive Notes tendered for acceptance by
Persons that make the certifications required by Section 5 of the Registration
Rights Agreement in the applicable Letters of Transmittal, and accepted for
exchange in the Exchange Offer. Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the Persons designated by the Holders of Definitive Notes so accepted
Definitive Notes in the appropriate principal amount.

          (g)     Legends.

          The following legends shall appear on the face of all Global Notes and
Definitive Notes issued under this Indenture unless specifically stated
otherwise in the applicable provisions of this Indenture.

		
	 	     (i)     Private Placement Legend.

		
	 	     (A)     Except as permitted by subparagraph (B) below, each Global
Note and each Definitive Note (and all Notes issued in exchange
therefor or substitution thereof) shall bear the legend in
substantially the following form:
	 
	 	“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE ‘SECURITIES ACT’), AND NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN (OR THEREIN) MAY BE
OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR ANY APPLICABLE
STATE SECURITIES LAWS. THE HOLDER HEREOF, BY ITS ACCEPTANCE OF
THIS SECURITY, AGREES FOR THE BENEFIT OF THE ISSUER THAT THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE THERETO
UNDER RULE 144(k) UNDER THE SECURITIES ACT WHICH IS APPLICABLE TO
THIS SECURITY (THE ‘RESALE RESTRICTION TERMINATION DATE’) OTHER
THAN (1) TO THE ISSUER OR ITS SUBSIDIARIES, (2) SO LONG AS THIS
SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE

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	 	SECURITIES ACT (‘RULE 144A’), TO A PERSON WHO THE SELLER REASONABLY
BELIEVES IS A ‘QUALIFIED INSTITUTIONAL BUYER’ WITHIN THE MEANING OF
RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER, IN EACH CASE TO WHOM NOTICE IS GIVEN
THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE
ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON
THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY IF THIS
SECURITY IS NOT IN BOOK-ENTRY FORM), (3) TO A NON-’U.S. PERSON’ IN
AN ‘OFFSHORE TRANSACTION’ (AS SUCH TERMS ARE DEFINED IN REGULATION
S UNDER THE SECURITIES ACT) IN ACCORDANCE WITH REGULATION S UNDER
THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY IF THIS SECURITY IS NOT IN BOOK-ENTRY FORM), (4) PURSUANT
TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, INCLUDING THE EXEMPTION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, IF AVAILABLE, OR (5) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, SUBJECT
IN EACH OF THE FOREGOING CASES TO ANY REQUIREMENT OF LAW THAT THE
DISPOSITION OF ITS PROPERTY OR THE PROPERTY OF SUCH INVESTOR
ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL,
AND SUBJECT TO THE RIGHT OF THE ISSUER OR THE TRUSTEE FOR THE
SECURITIES PRIOR TO ANY SUCH SALE, PLEDGE OR OTHER TRANSFER
PURSUANT TO CLAUSE (4) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO
EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON REQUEST OF THE
HOLDER ON OR AFTER THE RESALE RESTRICTION TERMINATION DATE.”

		
	 	     (B)     Notwithstanding the foregoing, any Global Note or
Definitive Note issued pursuant to subparagraphs (b)(iv), (c)(iii),
(d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) of this Section 2.06
(and all Notes issued in exchange therefor or substitution thereof)
shall not bear the Private Placement Legend.

		
	 	     (ii)     Global Note Legend. Each Global Note shall bear a legend in
substantially the following form:

		
	 	“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO
ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY
MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION
2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE

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	 	MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.”

		
	 	     (iii)     Regulation S Temporary Global Note Legend. The Regulation S
Temporary Global Note shall bear a legend in substantially the following
form:

		
	 	“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE ‘SECURITIES ACT’), AND,
PRIOR TO THE EXPIRATION OF A DISTRIBUTION COMPLIANCE PERIOD
(DEFINED AS 40 DAYS AFTER THE ISSUE DATE WITH RESPECT TO THE
NOTES), MAY NOT BE: OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (A)(1) IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 903 OR RULE 904 OF REGULATION S, AS DEFINED IN THE
SECURITIES ACT, OR (2) TO A PERSON WHO THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A UNDER THE SECURITIES ACT (‘RULE 144A’) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144, AND (B) IN ACCORDANCE WITH
ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES.
	 
	 	THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE,
AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR
CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED
HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS
REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE
PAYMENT OF INTEREST HEREON.”

          (h)     Cancellation and/or Adjustment of Global Notes.

          At such time as all beneficial interests in a particular Global Note have
been exchanged for Definitive Notes or a particular Global Note has been
redeemed, repurchased or canceled in whole and not in part, each such Global
Note shall be returned to or retained and canceled by the Trustee in accordance
with Section 2.11 hereof. At any time prior to such cancellation, if any
beneficial interest in a Global Note is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction, and if the beneficial
interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall
be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such increase.

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          (i)     General Provisions Relating to Transfers and Exchanges.

		
	 	     (i)     To permit registrations of transfers and exchanges, the Company
shall, subject to the other provisions of this Section 2.06, execute and
the Trustee shall authenticate Global Notes and Definitive Notes upon the
Company’s order or at the Registrar’s request.
	 
	 	     (ii)     No service charge shall be made to a holder of a beneficial
interest in a Global Note or to a Holder of a Definitive Note for any
registration of transfer or exchange, 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 similar governmental charge payable upon exchange or transfer
pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.14 and 9.05 hereof).
	 
	 	     (iii)     The Registrar shall not be required to register the transfer
of or exchange any Note selected for redemption in whole or in part,
except the unredeemed portion of any Note being redeemed in part.
	 
	 	     (iv)     All Global Notes and Definitive Notes issued upon any
registration of transfer or exchange of Global Notes or Definitive Notes
shall be the valid obligations of the Company, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Global
Notes or Definitive Notes surrendered upon such registration of transfer
or exchange.
	 
	 	     (v)     The Company shall not be required (A) to issue, to register the
transfer of or to exchange any Notes during a period beginning at the
opening of business 15 Business Days before the day of the mailing of a
notice of redemption or repurchase under Section 3.02 or 4.14 hereof, as
applicable, and ending at the close of business on such day, (B) to
register the transfer of or to exchange any Note so selected for
redemption or repurchase in whole or in part, except the unredeemed
portion of any Note being redeemed or repurchased in part or (c) to
register the transfer of or to exchange a Note between a Record Date and
the next succeeding Interest Payment Date.
	 
	 	     (vi)     Prior to due presentment for the registration of a transfer of
any Note, the Trustee, any Agent and the Company may deem and treat the
Person in whose name any Note is registered as the absolute owner of such
Note for the purpose of receiving payment of principal of and interest on
such Notes and for all other purposes, and none of the Trustee, any Agent
or the Company shall be affected by notice to the contrary.
	 
	 	     (vii)     The Trustee shall authenticate Global Notes and Definitive
Notes in accordance with the provisions of Section 2.02 hereof.
	 
	 	     (viii)     All certifications, certificates and opinions of counsel
required to be submitted to the Registrar pursuant to this Section 2.06
to effect a registration of transfer or exchange may be submitted by
facsimile.
	 
	 	     (ix)     Each Holder agrees to indemnify the Trustee and the Registrar
against any liability that may result from the transfer, exchange or
assignment of such Holder’s Note in vio-

-34-

 

		
	 	lation of any provision of this Indenture and/or applicable United
States federal or state securities law.
	 
	 	     (x)     Neither the Trustee nor the Registrar shall have any obligation
or duty to monitor, determine or inquire as to compliance with any
restrictions on transfer imposed under this Indenture or under applicable
law with respect to any transfer of any interest in any Note (including
any transfers between or among Participants or beneficial owners of
interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly
required by, and to do so if and when expressly required by the terms of,
this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

SECTION 2.07.  Replacement Notes.

          If any mutilated Note is surrendered to the Trustee or the Company and the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, the Company shall issue and the Trustee, upon receipt of an
Authentication Order, shall authenticate a replacement Note if the Trustee’s
requirements are met. If required by the Trustee or the Company, an indemnity
bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is
replaced.

          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 may
charge for its expenses (including the fees and expenses of the Trustee and
reasonable attorney’s fees and expenses) in replacing a Note.

          Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.

          If any mutilated, lost, stolen or destroyed Note has become or is about to
become due and payable, the Company, in its sole discretion, may, instead of
issuing a new Note, pay such Note.

SECTION 2.08.  Outstanding Notes.

          The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those cancelled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee in accordance with the provisions hereof, and those described in this
Section as not outstanding. Except as set forth in Section 2.09 hereof, a Note
does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Note.

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

-35-

 

          If
the principal amount of any Note is considered paid under
Section 4.01 hereof, it ceases to be outstanding and interest on
it ceases to accrue.

          If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest.

SECTION 2.09.  Treasury Notes.

          In determining whether the Holders of the required aggregate principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company, or by any Person that is an Affiliate of the Company, shall be considered as though not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that the Trustee knows are so owned shall be so disregarded.

SECTION 2.10.  Temporary Notes.

          Until
certificates representing Notes are ready for delivery, the
Company may prepare and the Trustee, upon receipt of an Authentication order,
shall authenticate temporary Notes. Temporary Notes shall be substantially in the
 form of certificated Notes but may have variations that the company considers
 appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee.
Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate
definitive Notes in exchange for temporary Notes.

          Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

SECTION 2.11.  Cancellation.

          The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall destroy cancelled Notes (subject to the record retention requirements of the Exchange Act). Certification of the destruction of all canceled Notes shall be delivered to the Company. The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation.

SECTION 2.12.  Defaulted Interest.

          If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent Special Record Date, in each case at the rate provided in the Notes and in Section 4.01 hereof. The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment. The Company shall fix or cause to be fixed each such Special Record Date and payment date, provided that no such Special Record Date shall be less than 10 days prior to the related payment date for

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such defaulted
interest. At least 15 days before the Special Record Date, the Company (or,
upon the written request of the Company, the Trustee in the name and at the
expense of the company) shall mail or cause to be mailed to Holders a notice
that states the Special Record Date, the related payment date and the amount of
such interest to be paid. The defaulted interest shall be considered paid upon
deposit with the Trustee or the Paying Agent of an amount of money equal to the
aggregate amount proposed to be paid in respect of such defaulted interest, and
interest on such defaulted interest shall thereafter cease to accrue from that
date. The Company may make payment of any defaulted interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
or other trading market on which the securities of the company are listed or
traded, and upon such notice as may be required by such exchange or trading
market, if, after written notice given by the Company to the Trustee of the
proposed payment, such manner of payment shall be deemed practicable by the
Trustee.

SECTION 2.13.  Cusip Numbers.

          The Company in issuing the Notes may use “CUSIP” numbers (if then
generally in use), and, if so, the Trustee shall use CUSIP numbers in notice of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or the
omission of such numbers. The Company shall promptly notify the Trustee of any
change in the CUSIP numbers.

ARTICLE 3

REDEMPTION AND PREPAYMENT

SECTION 3.01.  Notices to Trustee.

          If the Company elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.07 hereof, it shall furnish to the Trustee, at least 40
days (35 days in the case of redemption of less than all the Notes) but not
more than 60 days before a redemption date, an Officers’ Certificate setting
forth (i) the clause of this Indenture pursuant to which the redemption shall
occur, (ii) the redemption date, (iii) the principal amount of Notes to be
redeemed, (iv) the redemption price and (v) the CUSIP numbers of the Notes to
be redeemed.

SECTION 3.02.  Selection of Notes to Be Redeemed.

          If less than all of the Notes are to be redeemed at any time, the Trustee
shall select the Notes to be redeemed or purchased among the Holders of the
Notes in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a pro rata basis, by lot or in accordance with any other method the
Company considers fair and appropriate. In the event of partial redemption by
lot, the particular Notes to be redeemed shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days

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prior to the redemption
date by the Trustee from the outstanding Notes not previously called for
redemption.

          The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of
Notes selected shall be in amounts of $1,000 or whole multiples of $1,000;
except that if all of the Notes of a Holder are to be redeemed, the entire
outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.

SECTION 3.03.  Notice of Redemption.

          Subject to the provisions of Section 3.09 hereof, at least 30 days but not
more than 60 days before a redemption date, the Company shall mail or cause to
be mailed, by first class mail or send by overnight delivery or telecopy, a
notice of redemption to each Holder whose Notes are to be redeemed at its
registered address. So long as the Notes are listed on the Luxembourg Stock
Exchange, notices to holders of the Notes will also be made by publication in
authorized newspapers in Luxembourg. It is expected that publication will be
made in Luxembourg in the Luxembourg Wort. The notice shall identify the Notes
to be redeemed and shall state:

		
	 	     (a)     the redemption date;

		
	 	     (b)     the redemption price;
	 
	 	     (c)     if any Note is being redeemed in part, the portion of the
principal amount of such Note to be redeemed and that, after the
redemption date upon surrender of such Note, a new Note or Notes in
principal amount equal to the unredeemed portion shall be issued upon
cancellation of the original Note;

		
	 	     (d)     the name and address of the Paying Agent;

		
	 	     (e)     that Notes called for redemption must be surrendered to the
Paying Agent to collect the redemption price;

		
	 	     (f)     that, unless the Company defaults in making such redemption
payment, interest on Notes called for redemption ceases to accrue on and
after the redemption date;

		
	 	     (g)     the paragraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being redeemed; and

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

          At the Company’s request, the Trustee shall give the notice of redemption
in the Company’s name and at its expense; provided, however, that the Company
shall have delivered to the Trustee, at least 45 days prior to the redemption
date, an Officers’ Certificate requesting that the Trus-

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tee give such notice and
setting forth the information to be stated in such notice as provided in the
preceding paragraph.

SECTION 3.04.  Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03
hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. A notice of redemption may not be
conditional.

SECTION 3.05.  Deposit of Redemption Price.

          Prior to 12:00 noon New York City time on the redemption date, the Company
shall deposit with the Trustee or with the Paying Agent money sufficient to pay
the redemption price of and accrued interest on all Notes to be redeemed on
that date. The Trustee or the Paying Agent shall promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company
in excess of the amounts necessary to pay the redemption price of, and accrued
interest on, all Notes to be redeemed.

          If the Company complies with the provisions of the preceding paragraph, on
and after the redemption date, interest shall cease to accrue on the Notes or
the portions of Notes called for redemption. If a Note is redeemed on or after
a Record Date but on or prior to the related Interest Payment Date, then any
accrued and unpaid interest shall be paid to the Person in whose name such Note
was registered at the close of business on such Record Date. If any Note
called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply
with the preceding paragraph, interest shall be paid on the unpaid
principal, from the redemption date until such principal is paid, and to the
extent lawful on any interest not paid on such unpaid principal, in each case
at the rate provided in the Notes and in Section 4.01 hereof.

SECTION 3.06.  Notes Redeemed in Part.

          Upon surrender and cancellation of a Note that is redeemed in part, the
Company shall issue and, upon the Company’s written, request, the Trustee shall
authenticate, for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed portion of the Note surrendered.

SECTION 3.07.  Optional Redemption.

          (a)     The Notes will not be redeemable at the Company’s option prior to May
15, 2008. Thereafter, the Notes will be subject to redemption at any time at
the option of the Company, in whole or in part, upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below, plus accrued and unpaid interest thereon to
the applicable redemption date (subject to the right of Holders as of the
relevant record date to receive interest due on the relevant interest payment
date), if redeemed during the twelve-month period beginning on May 15 of the
years indicated below:

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	 	 	Percentage
	 	 	of Principal
	Year	 	Amount
	
	 	

	2008
	 	 	103.250	%
	2009
	 	 	102.167	%
	2010
	 	 	101.083	%
	2011 and thereafter
	 	 	100.000	%

          (b)     Ordinary Shares Offering. In addition, at any time, or from time to
time, prior to May 15, 2006, the Company may, at its option, use the net cash
proceeds of one or more public or private offering of Ordinary Shares of the
Company (an “Equity Sale”) to redeem, on a pro rata basis, up to an aggregate
of $140.0 million in aggregate principal amount of the Notes at a redemption
price of 106.5% of the principal amount thereof plus accrued and unpaid
interest thereon, if any, to the date of redemption; provided that at least
$260.0 million in aggregate principal amount of Notes remains outstanding
immediately after any such redemption; provided, further, that such redemption
occur within 90 days of the date of the closing of such Equity Sale.

          (c)     Taxation. If, as the result of any change in or any amendment to the
laws, including any applicable double taxation treaty or convention, of
Singapore (or any Other Jurisdiction, as defined in Section 4.21), or of any
political subdivision or taxing authority thereof, affecting taxation, or any
change in the application or interpretation or official position regarding the
application of such laws, double taxation treaty or convention (a “Change in
Tax Law”), which change or amendment becomes effective on or after the original
issuance date of the Notes (or, in certain circumstances, such later date on
which any assignee of the Company or a successor corporation to the
Company becomes such as permitted under this Indenture), it is determined
by the Company or such assignee (which terms, for purposes of the remainder of
this paragraph, include any successor thereto) that (i) the Company or its
assignee would be required to make payments of Additional Amounts on the next
succeeding date for the payment thereof and (ii) the effect of such Change in
Tax Law cannot be avoided through any reasonable measures available to the
Company, the Company may, at its option, redeem the Notes in whole at any time
at a redemption price equal to 100% of the principal amount thereof plus
accrued and unpaid interest, if any, to the date fixed for redemption (the “Tax
Redemption Price”).

          (d)     Any redemption pursuant to this Section 3.07 shall be made pursuant to
the provisions of Section 3.01 through 3.06 hereof.

SECTION 3.08.  Mandatory Redemption.

          Except as provided in Sections 4.10 and 4.14 hereof, the Company shall not
be required to make mandatory redemption or sinking fund payments with respect
to the Notes.

SECTION 3.09.  Offer to Purchase by Application of Excess Proceeds.

          In the event that, pursuant to Section 4.10 hereof, the Company shall be
required to commence an Asset Sale Offer, it shall follow the procedures
specified below.

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          The Asset Sale Offer shall remain open for a period of 20 Business Days
following its commencement and no longer, except to the extent that a longer
period is required by applicable law (the “Offer Period”). Not earlier than 30
days and not later than 60 days from the date the notice of the Asset Sale
Offer is given to Holders, or to the extent that a longer period is required by
applicable law (the “Purchase Date”), the Company shall purchase the principal
amount of Notes required to be purchased pursuant to Section 4.10 hereof (the
“Offer Amount”) or, if less than the Offer Amount has been tendered, all Notes
tendered in response to the Asset Sale Offer. Payment for any Notes so
purchased shall be made in the same manner as interest payments are made.

          If the Purchase Date is on or after a Record Date and on or before the
related Interest Payment Date, any accrued and unpaid interest shall be paid to
the Person in whose name a Note is registered at the close of business on such
Record Date, and no additional interest shall be payable to Holders who tender
Notes pursuant to the Asset Sale Offer.

          Upon the commencement of an Asset Sale Offer, the Company shall send, by
first class mail, overnight delivery or telecopy a notice to the Trustee and
each of the Holders, with a copy to the Trustee. So long as the Notes are
listed on the Luxembourg Stock Exchange, notices to holders of the Notes will
also be made by publication in authorized newspapers in Luxembourg. It is
expected that publication will be made in Luxembourg in the Luxembourg Wort.
The notice shall contain all instructions and materials necessary to enable
such Holders to tender Notes pursuant to the Asset Sale Offer. The Asset Sale
offer shall be made to all Holders. The notice, which shall govern the terms
of the Asset Sale offer, shall state:

		
	 	     (a)     that the Asset Sale Offer is being made pursuant to this Section
3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer
shall remain open;

		
	 	     (b)     the Offer Amount, the purchase price and the Purchase Date;

		
	 	     (c)     that any Note not tendered or accepted for payment shall
continue to accrue interest;

		
	 	     (d)     that, unless the Company defaults in making such payment, any
Note accepted for payment pursuant to the Asset Sale Offer shall cease to
accrue interest after the Purchase Date;

		
	 	     (e)     that Holders electing to have a Note purchased pursuant to an
Asset Sale Offer may only elect to have all of such Note purchased and
may not elect to have only a portion of such Note purchased;

		
	 	     (f)     that Holders electing to have a Note purchased pursuant to any
Asset Sale Offer shall be required to surrender the Note, with the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Note
completed, or transfer by book-entry transfer, to the Company, a
depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

-41-

 

		
	 	     (g)     that Holders shall be entitled to withdraw their election if the
Company, the depositary or the Paying Agent, as the case may be,
receives, not later than the expiration of the Offer Period, a telegram,
telex, facsimile transmission or letter setting forth the name of the
Holder, the aggregate principal amount of the Note the Holder delivered
for purchase and a statement that such Holder is withdrawing his election
to have such Note purchased;

		
	 	     (h)     that, if the aggregate principal amount of Notes surrendered by
Holders exceeds the Offer Amount, the Company shall select the Notes to
be purchased on a pro rata basis (with such adjustments as may be deemed
appropriate by the Company so that only Notes in denominations of $1,000,
or integral multiples thereof, shall be purchased); and

		
	 	     (i)     that Holders whose Notes were purchased only in part shall be
issued new Notes equal in principal amount to the unpurchased portion of
the Notes surrendered (or transferred by book-entry transfer).

          On or before 12:00 noon New York City time on the Purchase Date, the
Company shall, to the extent lawful, accept for payment, on a pro rata basis to
the extent necessary, the Offer Amount or portions thereof tendered pursuant to
the Asset Sale offer, or if less than the Offer Amount has been tendered, all
Notes tendered, and shall deliver to the Trustee an Officers’ Certificate
stating that such Notes or portions thereof were accepted for payment by the
Company in accordance with the terms of this Section 3.09. The Company, the
Depositary or the Paying Agent, as the case may be, shall promptly (but in any
case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by
such Holder and accepted by the Company for purchase, and the Company shall
promptly issue a new Note, and the
Trustee, upon written request from the Company, shall authenticate and
mail or deliver such new Note to such Holder, in a principal amount equal to
any unpurchased portion of the Note surrendered. Any Note not so accepted
shall be promptly mailed or delivered by the Company to the Holder thereof.
The Company shall publicly announce the results of the Asset Sale Offer on the
Purchase Date.

          Other than as specifically provided in this Section 3.09, any purchase
pursuant to this Section 3.09 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

ARTICLE 4

COVENANTS

SECTION 4.01.  Payment of Notes.

          The Company shall pay or cause to be paid the principal of, premium, if
any, and interest and Liquidated Damages, if any, on the Notes on the dates and
in the manner provided in the Notes. Principal, premium, if any, and interest
and Liquidated Damages, if any, shall be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of
12:00 noon New York City time on the due date money deposited by the Company in
immediately

-42-

 

available funds and designated for and sufficient to pay all
principal, premium, if any, and interest and Liquidated Damages, if any, then
due.

          Notwithstanding anything to the contrary in this Indenture, the Company
may, to the extent it is required to do so by law, deduct or withhold income or
other similar taxes imposed by the United States of America from principal or
interest payments hereunder.

          The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
1% per annum in excess of the then applicable interest rate on the Notes to the
extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Liquidated Damages (without regard to any applicable grace period) at the same
rate to the extent lawful.

SECTION 4.02.  Maintenance of Office or Agency.

          The Company shall maintain in the Borough of Manhattan, the City of New
York (and, so long as the Securities are listed on the Luxembourg Stock
Exchange and the rules of such exchange so require, in the city of Luxembourg
and any other city which is required under the rules of any stock exchange on
which the Securities are listed) an office or agency (which may be an office of
the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where
Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company shall give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the corporate trust office of the Trustee
located at 4 New York Plaza, 1st Fl., New York, New York 10004-2413.

          The Company may also from time to time designate one or more other offices
or agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York (and, so long as the Securities are listed on
the Luxembourg Stock Exchange and the rules of such exchange so require, in the
city of Luxembourg and any other city which is required under the rules of any
stock exchange on which the Securities are listed) an office or agency for such
purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.

          The Company hereby designates the Corporate Trust Office of the Trustee as
one such office or agency of the Company in accordance with Section 2.03
hereof.

SECTION 4.03.  Reports.

          At all times from and after the date of the commencement of an Exchange
Offer or the effectiveness of a shelf registration statement with respect to
the Notes (the “Registration”), whether or

-43-

 

not the Company is then required to
file reports with the Commission, the Company shall file with the Commission
all such reports and other information as it would be required to file with the
Commission by Sections 13(a) or 15(d) under the Exchange Act if it were subject
thereto. The Company shall supply the applicable Trustee and each applicable
Holder or shall supply to the applicable Trustee for forwarding to each such
applicable Holder, without cost to such Holder, copies of such reports and
other information. At all times prior to the date of the Registration, the
Company shall, at its cost, deliver to the Trustee and each Holder of the Notes
quarterly and annual reports substantially equivalent to those which would be
required by the Exchange Act if the Company were subject thereto. In addition,
at all times prior to the Registration, upon the request of any Holder or any
prospective purchaser of the Notes designated by a Holder, the Company shall
supply to such Holder or such prospective purchaser the information required
under Rule 144A under the Securities Act.

SECTION 4.04.  Compliance Certificate.

          (a)     The Company shall deliver to the Trustee within 90 days after the end
of each fiscal year, an Officers’ Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company
has kept, observed, performed and fulfilled each and every covenant contained
in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions of this Indenture (or, if a Default or
Event of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is
taking or proposes to take with respect thereto) and that to the best of his or
her knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes
is prohibited or if such event has occurred, a description of the event and
what action the Company is taking or proposes to take with respect thereto.
For purposes of this paragraph, such compliance shall be determined without
regard to any period of grace or requirement of notice provided under this
Indenture.

          (b)     So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.03(a) hereof shall be accompanied by
a written statement of the Company’s independent public accountants (who shall
be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to
their attention that would lead them to believe that the Company has violated
any provisions of Article 4 or Article 5 hereof or, if any such violation has
occurred, specifying the nature and period of existence thereof, it being
understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

          (c)     The Company shall, so long as any of the Notes are outstanding,
deliver to the Trustee, forthwith upon any Officer becoming aware of any
Default or Event of Default, an Officers’ Certificate specifying such Default
or Event of Default and what action the Company is taking or proposes to take
with respect thereto.

-44-

 

          (d)     If Liquidated Damages are payable under the Registration Rights
Agreement, the Company shall deliver to the Trustee a certificate to that
effect stating (i) the amount of Liquidated Damages that is payable and (ii)
the date on which Liquidated Damages is payable. Unless and until a
Responsible Officer of the Trustee receives at the Corporate Trust Office such
a certificate, the Trustee may assume without inquiry that no Liquidated
Damages are payable. If Liquidated Damages have been paid by the Company
directly to the persons entitled to them, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.

SECTION 4.05.  Taxes.

          The Company shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or
where the failure to effect such payment is not adverse in any material respect
to the Holders of the Notes.

SECTION 4.06.  Stay, Extension and Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that it
shall not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, that 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 shall not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as through no such
law has been enacted.

SECTION 4.07.  Restricted Payments.

          (A)     The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly:

		
	 	     (i)     declare or pay any dividend or make any other payment or
distribution on account of the Company’s or any of its Restricted
Subsidiaries’ Equity Interests (including, without limitation, any
payment in connection with any merger or consolidation involving the
Company) or to the direct or indirect holders of the Company’s or any of
its Restricted Subsidiaries’ Equity Interests in their capacity as such
(other than dividends or distributions payable in Equity Interests (other
than Disqualified Stock) of the Company), except to the extent the
entirety of such dividend or distribution is actually paid to the Company
or a Restricted Subsidiary of the Company (and in the case of a dividend
or distribution by any non-Wholly Owned Restricted Subsidiary of the
Company, to any other holder of Equity Interests of such non-Wholly Owned
Restricted Subsidiary on a pro rata basis);

		
	 	     (ii)     purchase, redeem or otherwise acquire or retire for value
(including, without limitation, in connection with any merger or
consolidation involving the Company) any Equity Interests of the Company
or any direct or indirect parent of the Company;

-45-

 

		
	 	     (iii)     make any payment on or with respect to, or purchase, redeem,
defease or otherwise acquire or retire for value, any Subordinated Debt,
except a payment of interest or principal at Stated Maturity; or

		
	 	     (iv)     make any Restricted Investment

(all such payments and other actions set forth in clauses (i) through (iv)
above being collectively referred to as “Restricted Payments”), unless, at the
time of and after giving effect to such Restricted Payment:

		
	 	     i)     no Default or Event of Default shall have occurred and be continuing
or would occur as a consequence thereof;

		
	 	     ii)     the Company would, at the time of such Restricted Payment and after
giving pro forma effect thereto as if such Restricted Payment had been
made at the beginning of the applicable four-quarter period, have been
permitted to incur at least $1.00 of additional Debt pursuant to the
covenant described in Section 4.09; and

		
	 	     iii)     such Restricted Payment, together with the aggregate amount of all
other Restricted Payments made by the Company and its Restricted
Subsidiaries after the Issue Date (excluding Restricted Payments
permitted by clause (ii) of the next succeeding paragraph), is less than
the sum of

		
	 	     (1)     50% of the Consolidated Net Income (or if Consolidated Net
Income shall be a loss, minus 100% of such loss) of the Company for
the period (taken as one accounting period) from (and including)
the fiscal quarter commencing June 30, 2000
to the end of the Company’s most recently ended fiscal quarter for
which internal financial statements are available at the time of
such Restricted Payment, plus

		
	 	     (2)     100% of the aggregate Fair Market Value received by the
Company from the issue or sale since the Issue Date of Capital
Stock of the Company (other than Disqualified Stock) or of
Disqualified Stock or debt securities of the Company that have been
converted into such Capital Stock (other than Capital Stock (or
Disqualified Stock or convertible debt securities) sold to a
Restricted Subsidiary of the Company and other than Disqualified
Stock or convertible debt securities that have been converted into
Disqualified Stock), plus

		
	 	     (3)     the aggregate amount equal to the net reduction in Restricted
Investments in Unrestricted Subsidiaries on or after the Issue Date
resulting from the redesignation of any Unrestricted Subsidiary as
a Restricted Subsidiary, not to exceed the aggregate amount of
Restricted Investments made by the Company or any Restricted
Subsidiary in such Unrestricted Subsidiary on or after the Issue
Date, plus

		
	 	     (4)     $25.0 million.

-46-

 

          (B)     So long as no Default or Event of Default shall have occurred and be
continuing, the foregoing provisions shall not prohibit

		
	 	     (1)     the payment of any dividend within 60 days after the date of
declaration thereof, if at said date of declaration such payment would
have complied with the provisions of this Indenture;

		
	 	     (2)     the redemption, repurchase, retirement or other acquisition of any
Equity Interests of the Company or any Subsidiary of the Company or any
Subordinated Debt, in each case in exchange for, or out of the net
proceeds of the substantially concurrent sale (other than to a Subsidiary
of the Company) of, other Equity Interests of the Company (other than any
Disqualified Stock); provided, however, that the amount of any such net
proceeds that are utilized for any such redemption, repurchase,
retirement or other acquisition shall be excluded from clause (ii) of the
preceding paragraph; and

		
	 	     (3)     the redemption, repurchase, refinancing or defeasance of
Subordinated Debt in exchange for, or with the net cash proceeds from, an
incurrence of Permitted Refinancing Debt.

          (C)     The amount of all Restricted Payments (other than cash) shall be the
fair market value on the date of the Restricted Payment of the asset(s) or
securities proposed to be transferred or issued by the Company or such
Subsidiary, as the case may be, pursuant to the Restricted Payment. The fair
market value of any non-cash Restricted Payment having a fair market value in
excess of $10.0 million shall be determined by the Board of Directors, whose
resolution with respect thereto shall be delivered to the Trustee. Not later
than the date of making any Restricted Payment, the Company shall deliver to
the Trustee an Officers’ Certificate stating that such Restricted
Payment is permitted and setting forth the basis upon which the
calculations required by this Section 4.07 were computed.

SECTION 4.08. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

          (A)     The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary to:

		
	 	     (1)     (a) pay dividends or make any other distributions to the Company or
any of its Restricted Subsidiaries (1) on its Capital Stock or (2) with
respect to any other interest or participation in, or measured by, its
profits, or (b) pay any indebtedness owed to the Company or any of its
Restricted Subsidiaries;

		
	 	     (2)     make loans or advances to the Company or any of its Restricted
Subsidiaries; or

		
	 	     (3)     transfer any of its properties or assets to the Company or any of
its Restricted Subsidiaries.

-47-

 

          (b)     The foregoing restrictions shall not apply to encumbrances or restrictions
existing under or by reason of:

		
	 	     (a)     Existing Debt as in effect on the date of this Indenture;

		
	 	     (b)     the Credit Facility as in effect as of the date of this
Indenture, and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings thereof,
provided that such amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings are not
more restrictive taken as a whole with respect to such dividend and other
payment restrictions than those contained in such Existing Debt as in
effect on the Issue Date (as determined by the Board of Directors of the
Company in its reasonable and good faith judgment);

		
	 	     (c)     this Indenture and the Notes;

		
	 	     (d)     applicable law;

		
	 	     (e)     any instrument governing Debt or Capital Stock of a Person
acquired by the Company or any of its Restricted Subsidiaries as in
effect at the time of such acquisition (except to the extent such Debt
was incurred in connection with or in contemplation of such acquisition),
which encumbrance or restriction is not applicable to any Person, or the
properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired, provided that, in the case
of Debt, such Debt was permitted by the terms of this Indenture to be
incurred;
	 
	 	     (f)     customary non-assignment provisions in leases and other
agreements entered into in the ordinary course of business and consistent
with past practices, restricting assignment or restricting transfers of
non-cash assets;

		
	 	     (g)     Purchase Money Obligations for property acquired in the ordinary
course of business that impose restrictions of the nature described in
clause (A)(iii) above on the property so acquired;

		
	 	     (h)     Permitted Refinancing Debt, provided that the restrictions
contained in the agreements governing such Permitted Refinancing Debt are
not more restrictive taken as a whole than those contained in the
agreements governing the Debt being refinanced (as determined by the
Board of Directors of the Company in its reasonable and good faith
judgment);

		
	 	     (i)     contracts for the sale of assets;

		
	 	     (j)     customary provisions in agreements with respect to Permitted
Joint Ventures;

		
	 	     (k)     any Debt or any agreement pursuant to which such Debt was issued
if (A) the encumbrance or restriction applies only upon a payment or
financial covenant default or event of default contained in such Debt or
agreement and (B) the encumbrance or restriction is not

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	 	materially more disadvantageous to the Holders of the Notes than is customary in
comparable financings (as determined in good faith by the Board of
Directors of the Company); or

		
	 	     (l)     reasonable and customary borrowing base, net worth and similar
covenants set forth in agreements evidencing Debt otherwise permitted by
this Indenture.

SECTION 4.09.  Incurrence of Debt and Issuance of Preferred Stock.

          (a)     The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or
otherwise, with respect to (collectively, “incur”) any Debt (including Acquired
Debt) and the Company shall not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that the Company and
any Restricted Subsidiary may incur Debt (including Acquired Debt) if the Fixed
Charge Coverage Ratio for the Company’s and its Restricted Subsidiaries’ most
recently ended four full fiscal quarters for which internal financial
statements are available immediately preceding the date on which such
additional Debt is incurred would have been at least 2.0 to 1.0, determined on
a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Debt had been incurred at the beginning of
such four-quarter period.

          (b)     The provisions of the first paragraph of this covenant shall not apply
to the incurrence of any of the following items of Debt (collectively,
“Permitted Debt”):

		
	 	     (i)     the incurrence by the Company or any of its Restricted
Subsidiaries of Credit Facility Debt and letters of credit (with letters
of credit being deemed to have a principal
amount equal to the maximum potential liability of the Company and
its Restricted Subsidiaries thereunder) under Credit Agreements; provided
that the aggregate principal amount of all Credit Facility Debt
outstanding under all Credit Agreements and incurred pursuant to this
clause (i), after giving effect to such incurrence, including all
Permitted Refinancing Debt incurred to refund, refinance or replace any
other Debt incurred pursuant to this clause (i), together with all
amounts outstanding under clause (ii) below, does not exceed the greater
of $1.5 billion and the Borrowing Base as of the most recent fiscal
quarter ended for which financial statements are available;

		
	 	     (ii)     the incurrence by the Company or any of its Restricted
Subsidiaries of Receivables Program Debt in an aggregate amount at any
one time outstanding not to exceed, together with the amounts outstanding
under clause (i) above, the greater of $1.5 billion or the Borrowing Base
as of the most recent fiscal quarter ended for which financial statements
are available;

		
	 	     (iii)     the incurrence by the Company and its Restricted Subsidiaries
of Existing Debt;

		
	 	     (iv)     the incurrence by the Company or any of its Restricted
Subsidiaries of Debt represented by the Notes;

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	 	     (v)     the incurrence by the Company or any of its Restricted
Subsidiaries of Permitted Refinancing Debt in exchange for, or the net
proceeds of which are used to refund, refinance or replace, Debt that was
permitted by this Indenture to be incurred;

		
	 	     (vi)     the incurrence by the Company or any of its Restricted
Subsidiaries of intercompany Debt between or among the Company and any of
its Wholly Owned Restricted Subsidiaries; provided, however, that (i) if
the Company is the obligor on such Debt, such Debt is expressly
subordinated to the prior payment in full in cash of all Obligations with
respect to the Notes and (ii) (A) any subsequent issuance or transfer of
Equity Interests that results in any such Debt being held by a Person
other than the Company or a Wholly Owned Restricted Subsidiary and (B)
any sale or other transfer of any such Debt to a Person that is neither
the Company nor a Wholly Owned Restricted Subsidiary shall be deemed, in
each case, to constitute an incurrence of such Debt by the Company or
such Restricted Subsidiary, as the case may be;

		
	 	     (vii)     the incurrence by the Company or any of its Restricted
Subsidiaries of Hedging Obligations that are incurred for the purpose of
fixing or hedging interest rate risk with respect to any floating rate
Debt that is permitted by the terms of this Indenture to be outstanding
or for the purpose of fixing or hedging currency exchange risk with
respect to any currency exchanges;

		
	 	     (viii)     Capital Lease Obligations and Purchase Money Obligations of
the Company and its Restricted Subsidiaries in aggregate principal amount
(or accreted value, as applicable) at any time outstanding not to exceed
10.0% of Total Assets;
	 
	 	     (ix)     Guarantees by the Company or any of its Restricted Subsidiaries
of Debt of the Company or any Restricted Subsidiary permitted to be
incurred under another provision of this covenant;

		
	 	     (x)     Debt of the Company or any Restricted Subsidiary in respect of
performance bonds, bankers’ acceptances, trade letters of credit, surety
bonds and guarantees provided by the Company or any Restricted Subsidiary
in the ordinary course of business, not to exceed at any given time 2.5%
of Total Assets; and

		
	 	     (xi)     the incurrence by the Company or any of its Restricted
Subsidiaries of additional Debt in an aggregate principal amount (or
accreted value, as applicable) at any time outstanding, including all
Permitted Refinancing Debt incurred to refund, refinance or replace any
other Debt incurred pursuant to this clause (xi), not to exceed $250.0
million.

          (c)     For purposes of determining compliance with this covenant, in the
event that an item of Debt meets the criteria of more than one of the
categories of Permitted Debt described in clauses (b)(i) through (b)(xi) above
or is entitled to be incurred pursuant to the first paragraph of this covenant,
the Company shall, in its sole discretion, classify all or any portion of such
item of Debt in any manner that complies with this covenant and such item of
Debt or portion thereof will be treated as having been incurred pursuant to
only one of such clauses or pursuant to the first paragraph hereof.

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Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Debt will not be deemed to be an incurrence of Debt for
purposes of this covenant.

          (d)     Debt or Preferred Stock of any Person which is outstanding at the time
such Person becomes a Restricted Subsidiary of the Company (including upon
designation of any Subsidiary or other Person as a Restricted Subsidiary or
upon a revocation such that such Subsidiary becomes a Restricted Subsidiary) or
is merged with or into or consolidated with the Company or a Restricted
Subsidiary of the Company shall be deemed to have been incurred at the time
such Person becomes such a Restricted Subsidiary of the Company or is merged
with or into or consolidated with the Company or a Restricted Subsidiary of the
Company, as applicable.

SECTION 4.10.  Asset Sales.

          The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:

		
	 	     (i)     the Company (or the Restricted Subsidiary, as the case may be)
receives consideration at the time of such Asset Sale at least equal to
the fair market value (evidenced by a resolution of the Board of
Directors set forth in an Officers’ Certificate delivered to the Trustee)
of the assets or Equity Interests issued or sold or otherwise disposed
of; and

		
	 	     (ii)     at least 75% of the consideration therefor received by the
Company or such Restricted Subsidiary is in the form of cash; provided
that the amount of (x) any liabilities (as shown on the Company’s or such
Restricted Subsidiary’s most recent balance sheet) of the Company or any
Restricted Subsidiary (other than contingent liabilities and liabilities
that are by their terms subordinated to the Notes or any guarantee
thereof) that are assumed by the
transferee of any such assets pursuant to a customary novation
agreement or other agreement that releases or indemnifies the Company or
such Restricted Subsidiary from further liability and (y) any securities,
notes or other obligations received by the Company or any such Restricted
Subsidiary from such transferee that are immediately converted by the
Company or such Restricted Subsidiary into cash (to the extent of the
cash received) shall be deemed to be cash for purposes of this provision.

          Within 365 days after the receipt of any Net Proceeds from an Asset Sale,
the Company may apply such Net Proceeds at its option, (a) to permanently
repay, reduce or secure letters of credit in respect of Senior Debt (and to
correspondingly reduce commitments with respect thereto in the case of
revolving borrowings), and/or (b) to the acquisition of a controlling interest
in another business, the making of a capital expenditure or Permitted
Investment or the acquisition of other assets, in each case, for use in the
same or a similar line of business as the Company was engaged in on the date of
such Asset Sale or reasonable extensions thereof. Pending the final
application of any such Net Proceeds, the Company may temporarily reduce
indebtedness under the Credit Facility (or any alternative or subsequent
revolving credit agreement where borrowings thereunder constitute Senior Debt
or Debt of a Subsidiary) or otherwise invest such Net Proceeds in any manner
that is not prohibited by this Indenture. Any Net Proceeds from Asset Sales
that are not applied or invested as provided in the first sentence of this
paragraph will be deemed to constitute “Excess Proceeds.”

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          When the aggregate amount of Excess Proceeds exceeds $10.0 million, the
Company will be required to make an offer (an “Asset Sale Offer”) to all
Holders of Notes and holders of any other Pari Passu Debt outstanding with
provisions requiring the Company to make an offer to purchase or redeem such
indebtedness with the proceeds from any Asset Sale as follows: (A) the Company
will make an offer to purchase from all Holders of the Notes in accordance with
the procedures set forth in this Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Notes that may be purchased out of an
amount (the “Note Amount”) equal to the product of such Excess Proceeds
multiplied by a fraction, the numerator of which is the outstanding principal
amount of the Notes, and the denominator of which is the sum of the outstanding
principal amount of the Notes and such Pari Passu Debt (subject to proration in
the event such amount is less than the aggregate Asset Sale Offered Price (as
defined herein) of all Notes tendered), and (B) to the extent required by such
Pari Passu Debt to permanently reduce the principal amount of such Pari Passu
Debt, the Company will make an offer to purchase or otherwise repurchase or
redeem Pari Passu Debt (an “Asset Sale Pari Passu Offer”) in an amount (the
“Pari Passu Debt Amount”) equal to the excess of the Excess Proceeds over the
Note Amount; provided that in no event will the Company be required to make an
Asset Sale Pari Passu Offer in a Pari Passu Debt Amount exceeding the principal
amount of such Pari Passu Debt plus accrued and unpaid interest thereon plus
the amount of any premium required to be paid to repurchase such Pari Passu
Debt. The offer price for the Notes will be payable in cash in an amount equal
to 100% of the principal amount of the Notes, plus accrued and unpaid interest,
if any, to the date (the “Asset Sale Offer Date”) such Asset Sale Offer is
consummated (the “Asset Sale Offered Price”), in accordance with the procedures
set forth in this Indenture. To the extent that the aggregate Asset Sale
Offered Price of the Notes tendered pursuant to the Asset Sale Offer is less
than the Note Amount relating thereto or the aggregate amount of Pari Passu
Debt that is purchased in an Asset Sale Pari Passu Offer is less than the Pari
Passu Debt Amount, the Company may use any remaining Excess Proceeds for
general corporate purposes. If the aggregate principal amount of Notes and
Pari Passu Debt surrendered by holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select
the Notes to be purchased on a pro rata basis. Upon the completion of the
purchase of all the Notes tendered pursuant to an Asset Sale Offer and the
completion of an Asset Sale Pari Passu Offer, the amount of Excess Proceeds, if
any, shall be reset at zero.

          The Company shall comply with the applicable tender offer rules, including
Rule
l4e-1 under the Exchange Act, and any other applicable securities laws or
regulations in connection with an Asset Sale Offer.

SECTION 4.11.  Transactions with Affiliates.

          The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate (each of the foregoing, an “Affiliate Transaction”), unless:

		
	 	     (i)     such Affiliate Transaction is on terms that are no less
favorable to the Company or the relevant Restricted Subsidiary than those
that would have been obtained in a comparable transaction by the Company
or such Restricted Subsidiary with an unrelated Person; and

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	 	     (ii)     the Company delivers to the Trustee, with respect to any
Affiliate Transaction or series of related Affiliate Transactions
involving aggregate consideration in excess of $10.0 million, a
resolution of the Board of Directors set forth in an Officers’
Certificate certifying that such Affiliate Transaction complies with
clause (i) above and that such Affiliate Transaction has been approved by
a majority of the disinterested members of the Board of Directors;
provided that (w) any employment agreement or compensation arrangement
entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business and consistent with the past practice of the
Company or such Restricted Subsidiary that is not otherwise prohibited by
this Indenture, (x) transactions between or among the Company and/or its
Restricted Subsidiaries that are not otherwise prohibited by this
Indenture, (y) Restricted Payments and Permitted Investments that are
permitted by the provisions of this Indenture described in Section 4.07,
and (z) indemnification of officers and directors, in each case, shall
not be deemed Affiliate Transactions.

SECTION 4.12.  Liens.

          The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly create, incur, assume or suffer to
exist any Lien that secures obligations under any Pari Passu Debt or
Subordinated Debt on any asset or property of the Company or such Restricted
Subsidiary, or any income or profits therefrom, or assign or convey any right
to receive income therefrom, unless the Notes are equally and ratably secured
with the obligations so secured or until such time as such obligations are no
longer secured by a Lien.

SECTION 4.13.  Corporate Existence.

          Subject to Article 5 hereof, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect (i) its
corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents
(as the same may be amended from time to time) of the Company or any such
Subsidiary and (ii) the rights (charter and statutory), licenses and franchises
of the Company and its subsidiaries; provided, however, that the Company shall
not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Subsidiaries, 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,
taken as a whole, and that the lose thereof is not adverse in any material
respect to the Holders of the Notes.

SECTION 4.14.  Change of Control.

          (a)     Upon the occurrence of a Change of Control, each Holder of Notes will
have the right to require the Company to repurchase all or any part (equal to
$1,000 or integral multiples thereof) of such Holder’s Notes pursuant to the
offer described below (the “Change of Control Offer”) at an offer price in cash
equal to 101% of the aggregate principal amount thereof, plus accrued and
unpaid interest thereon, if any, to the date of purchase (the “Change of
Control Payment”). Within 30 days following any Change of Control, the Company
will mail a notice to each Holder of Notes describing the transaction or
transactions that constitute the Change of Control and offering to repurchase
Notes on the date specified in such notice, which date shall be no earlier than
30 days and no

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later than 60 days from the date such notice is mailed (the
“Change of Control Payment Date”), pursuant to the procedures required by this
Indenture and described in such notice.

          (b)     The Company will comply with the requirements of Rule l4e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control.

          (c)     On the Change of Control Payment Date, the Company will, to the extent
lawful, (i) accept for payment all Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent an
amount equal to the Change of Control Payment in respect of all Notes or
portions thereof so tendered and (iii) deliver or cause to be delivered to the
Trustee the Notes so accepted together with an Officers’ Certificate stating
the aggregate principal amount of Notes or portions thereof being purchased by
the Company. The Paying Agent will promptly mail to each Holder of Notes so
tendered the Change of Control Payment for such Notes, and the Trustee will
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Note equal in principal amount to any unpurchased portion of
the Notes surrendered, if any; provided that each such new Note will be in a
principal amount of $1,000 or integral multiples thereof.

          Prior to complying with the provisions of this covenant, but in any event
within 90 days following a Change of Control, the Company will either repay in
full in cash all outstanding Senior Debt or obtain the requisite consents, if
any, under all agreements governing outstanding Senior
Debt to permit the repurchase of Notes required by this covenant. The
Company shall publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Change of Control Payment Date.

          The Change of Control provisions described above will be applicable
whether or not any other provisions of this Indenture are applicable.

          (d)     The Company shall not be required to make a Change of Control Offer
upon a Change of Control if a third party makes the Change of Control Offer in
the manner, at the times and otherwise in compliance with the requirements set
forth in this Indenture applicable to a Change of Control Offer made by the
Company and purchases all Notes validly tendered and not withdrawn under such
Change of Control Offer.

SECTION 4.15.  Designation of Unrestricted Subsidiaries.

          (a)     The Board of Directors may designate any Restricted Subsidiary to be
an Unrestricted Subsidiary if:

		
	 	     (i)     that designation would not cause a Default;

		
	 	     (ii)     the Company will, on the date of such designation after giving
pro forma effect thereto as if the same had occurred at the beginning of
the applicable four-quarter period,

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	 	be permitted to incur at least $1.00 of additional Debt pursuant to
the Fixed Charge Coverage Ratio test set forth in the first paragraph of
Section 4.09; and

		
	 	     (iii)     the Company would be permitted to make an Investment equal to
the sum of the (i) fair market value, as determined in good faith by the
Board of Directors of the Company, of the Capital Stock of such
Subsidiary plus (ii) the amount of Debt such Subsidiary owes to the
Company, pursuant to the first paragraph of Section 4.07.

          (b)     The Board of Directors may revoke its designation and redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary if:

		
	 	     (i)     no Default or Event of Default shall have occurred and be
continuing at the time of or after giving effect to revocation; and

		
	 	     (ii)     all Liens and Debt of such Unrestricted Subsidiary outstanding
immediately following such revocation would, if incurred at such time,
have been permitted to be incurred at such time for all purposes under
this Indenture.

          Any such designation by the Board of Directors shall be evidenced to the
Trustee by promptly filing with the Trustee a copy of the Board Resolutions
giving effect to such designation.

SECTION 4.16.  Payments for Consent.

          Neither the Company nor any of its Subsidiaries will, directly or
indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder of any Notes for or as an inducement
to any consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Notes unless such consideration is offered to be paid or is
paid to all Holders of the Notes that consent, waive or agree to amend in the
time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

SECTION 4.17.  Money for Payments to Be Held in Trust.

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

          Whenever the Company shall have one or more Paying Agents for the Notes,
it shall, on or before each due date of the principal, premium, interest or
Liquidated Damages, if any, with respect to the Notes, deposit with a Paying
Agent a sum in same day funds (or New York Clearing House funds if such deposit
is made prior to the date on which such deposit is required to be made)
sufficient to pay the principal, premium, interest or Liquidated Damages, if
any, so becoming due (or at the option of the Company, payment of interest may
be mailed by check to the Holders of the Notes at their respective addresses
set forth in the register of Holders; provided that all payments with re-

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spect to Notes represented by one or more permanent global Notes will be
paid by wire transfer of immediately available funds to the account of the
Depository Trust Company or any successor thereto) such sum to be held in trust
for the benefit of the Persons entitled to such principal, premium, interest or
Liquidated Damages, if any, and (unless such Paying Agent is the Trustee) the
Company shall promptly notify the Trustee of such action or any failure so to
act. In the absence of a written request from the Company to return unclaimed
funds to the Company, the Trustee shall from time to time deliver all unclaimed
funds to or as directed by applicable escheat authorities, as determined by the
Trustee in its sole discretion, in accordance with the customary practices and
procedures of the Trustee. Any unclaimed funds held by the Trustee pursuant to
this section shall be held uninvested and without any liability for interest.

          The Company shall 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 shall:

		
	 	     (a)     hold all sums held by it for the payment of the principal of,
premium, if any, or interest on Notes in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;

		
	 	     (b)     give the Trustee written notice of any default by the Company
(or any other obligor upon the Notes) in the making of any payment of
principal, premium, interest or Liquidated Damages, if any;

		
	 	     (c)     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; and

		
	 	     (d)     acknowledge, accept and agree to comply in all respects with the
provisions of this Indenture relating to the duties, rights and
obligations of such Paying Agent.

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

          Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal, premium, interest or
Liquidated Damages, if any, with respect to a Note and remaining unclaimed for
two years after such principal, premium, if any, or interest has become due and
payable shall be paid to the Company at the written request of the Company or
(if then held by the Company) shall be discharged from such trust; and the
Holder of such Note shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense of the Com-

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pany cause notice to be promptly sent to each Holder that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification any unclaimed balance of
such money then remaining will be repaid to the Company.

SECTION 4.18.  Status as Investment Company.

          The Company shall not, and shall not permit any of its Subsidiaries or
controlled Affiliates to, conduct its business in a fashion that would cause
the Company to be required to register as an “investment company” (as that term
is defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”)), or otherwise to become subject to regulation under the
Investment Company Act. For purposes of establishing the Company’s compliance
with this provision, any exemption which is or would become available under
Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act will be
disregarded.

SECTION 4.19.  Incurrence of Senior Subordinated Debt.

          The Company shall not incur, create, issue, assume, guarantee or otherwise
become liable for any Debt that is subordinate or junior in right of payment to
any Senior Debt and senior in any respect in right of payment to the Notes.

SECTION 4.20.  Guarantees of Debt.

          The Company shall not permit any of its Restricted Subsidiaries, directly
or indirectly, to guarantee or pledge any assets to secure the payment of any
Pari Passu Debt or Debt of the Company junior to or subordinated in right of
payment to any Pari Passu Debt unless the Company causes each such Restricted
Subsidiary to execute and deliver to the Trustee, prior to or concurrently with
the issuance of such guarantee, a supplemental indenture, in form satisfactory
to the Trustee, pursuant to which such Restricted Subsidiary unconditionally
guarantees on a senior subordinated basis the payment of principal of, premium,
if any, and interest on the Notes.

          Notwithstanding the foregoing, any such Guarantee by a Restricted
Subsidiary of the Notes shall provide by its terms that it (and all Liens
securing the same) shall be automatically and unconditionally released and
discharged upon any sale, exchange or transfer, to any Person not an Affiliate
of the Company, of all of the Company’s Capital Stock in, or all or
substantially all the assets of, such Restricted Subsidiary, which sale,
exchange or transfer is made in compliance with the applicable provisions of
this Indenture.

SECTION 4.21.  Payment of Additional Amounts.

          Any amounts paid, or caused to be paid, by the Company or its assignee (or
any successor to the Company or such assignee as permitted under this
Indenture) under this Indenture shall be paid without deduction or withholding
for any and all present and future taxes, levies, imposts or other governmental
charges whatsoever imposed, assessed, levied or collected by or for the account
of Singapore (including any political subdivision or taxing authority thereof)
or the jurisdiction of incorporation or residence (other than the United States
or any political subdivision or taxing authority thereof) of any assignee of
the Company or any successor to the Company, or any subsidiary, branch,

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division or other entity through which the Company may from time to time
direct any payments of principal, premium, if any, and interest on the Notes or
any political subdivision or taxing authority thereof (an “Other
Jurisdiction”), or, if deduction or withholding of any taxes, levies, imposts
or other governmental charges (“Taxes”) shall at any time be required by
Singapore or an Other Jurisdiction, the Company, its assignee or any relevant
successor will (subject to timely compliance by the Holders or beneficial
owners of the relevant Notes with any relevant administrative requirements) pay
or cause to be paid such additional amounts (“Additional Amounts”) in respect
of principal of, premium, if any, or interest, as may be necessary in order
that the net amounts paid to the Holders of the Notes or the Trustee pursuant
to this Indenture, after such deduction or withholding, shall equal the
respective amounts that the Holder would have received if such Taxes had not
been withheld or deducted; provided, however, that the foregoing shall not
apply to:

		
	 	     (i)     any present or future Taxes which would not have been so
imposed, assessed, levied or collected but for the fact that the Holder
or beneficial owner of the relevant Note is or has been a domiciliary,
national or resident of, engages or has been engaged in business,
maintains or has maintained a permanent establishment, or is or has been
physically present in Singapore or the Other Jurisdiction, or otherwise
has or has had some connection with Singapore or the Other Jurisdiction
(other than the holding or ownership of a Note, or the collection of
principal of, premium, if any, and interest on, or the enforcement of, a
Note);

		
	 	     (ii)     any present or future Taxes which would not have been so
imposed, assessed, levied or collected but for the fact that, where
presentation is required, the relevant Note was presented more than
thirty days after the date such payment became due or was provided for,
whichever is later;

		
	 	     (iii)     any present or future Taxes which are payable otherwise than
by deduction or withholding on or in respect of the relevant Note;

		
	 	     (iv)     any present or future Taxes which would not have been so
imposed, assessed, levied or collected but for the failure to comply, on
a sufficiently timely basis, with any certification, identification or
other reporting requirements concerning the nationality, residence,
identity or connection with Singapore or the Other Jurisdiction or any
other relevant jurisdiction of the Holder or beneficial owner of the
relevant Note, if such compliance is required by a statute or regulation
of Singapore, the Other Jurisdiction or any other relevant jurisdiction,
or by a relevant treaty, as a condition to relief or exemption from such
Taxes;

		
	 	     (v)     any present or future Taxes (A) which would not have been so
imposed, assessed, levied or collected if the beneficial owner of the
relevant Note had been the Holder of such Note, or (B) which, if the
beneficial owner of such Note had held the Note as the Holder of such
Note, would have been excluded pursuant to clauses (i) through (iv)
above; or

		
	 	     (vi)     any estate, inheritance, gift, sale, transfer, personal
property or similar tax, assessment or other governmental charge.

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          Notwithstanding the foregoing, this Indenture does not provide for the
payment of Additional Amounts due to any deduction or withholding requirement
imposed by any governmental unit other than Singapore, an Other Jurisdiction or
a taxing authority or political subdivision thereof.

ARTICLE 5

SUCCESSORS

SECTION 5.01. Merger, Consolidation or Sale of Assets.

          The Company shall not consolidate or merge with or into (whether or not
the Company is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets in one or more related transactions, to another corporation, Person or
entity unless:

		
	 	     (i)     the Company is the surviving corporation or the entity or the
Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, lease,
conveyance or other disposition shall have been made is a corporation
organized or existing under the laws of either (A) the United States, any
state thereof, the District of Columbia or Singapore or (B) a Subject
Country, in which case the Company will have satisfied its obligations as
set forth in Section 5.03;

		
	 	     (ii)     the entity or Person formed by or surviving any such
consolidation or merger (if other than the Company) or the entity or
Person to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made assumes all the obligations of the
Company under the Notes and this Indenture pursuant to a supplemental
indenture in a form reasonably satisfactory to the Trustee;

		
	 	     (iii)     immediately after such transaction no Default or Event of
Default exists; and

		
	 	     (iv)     except in the case of a merger of the Company with or into a
Wholly Owned Restricted Subsidiary of the Company, the Company or the
entity or Person formed by or surviving any such consolidation or merger
(if other than the Company), or to which such sale, assignment, transfer,
lease, conveyance or other disposition shall have been made (x) will have
Consolidated Net Worth immediately after the transaction equal to or
greater than the Consolidated Net Worth of the Company immediately
preceding the transaction and (y) will, at the time of such transaction
and after giving pro forma effect thereto as if such transaction had
occurred at the beginning of the applicable four-quarter period, be
permitted to incur at least $1.00 of additional Debt pursuant to the
Fixed Charge Coverage Ratio test set forth in the first paragraph of
Section 4.09.

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SECTION 5.02.  Successor Corporation Substituted.

          Upon any consolidation or merger or any transfer of all or substantially
all of the assets of the Company in accordance with Section 5.01 hereof, the
successor Person formed by such consolidation or into which the Company is
merged or to which such transfer is made shall succeed to and (except in the
case of a lease) be substituted for (so that from and after the date of such
consolidation, merger or transfer, the provisions of this Indenture referring
to the “Company” shall refer instead to the successor Person and not to the
Company), and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named
herein as the company, and (except in the case of a lease) the Company shall be
released from the obligations under the Notes and this Indenture except with
respect to any obligations that arise from, or are related to, such
transaction.

SECTION 5.03.  Restrictions upon Reincorporating, Merging or Consolidating into a Subject Country.

          The Company may not consolidate or merge with or into (whether or not the
Company is the surviving corporation), or sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of its properties or assets in
one or more related transactions (a “Subject Transaction”) to, another
corporation, Person or entity unless it satisfies certain conditions. If the
surviving or resulting transferee, lessee or successor Person (the “Successor
Corporation”) in a Subject Transaction is incorporated in a Subject Country,
then the Company must satisfy the conditions specified in paragraphs (A), (B)
and (C) below as promptly as practicable but no later than 60 days following
the date of such Subject Transaction:

		
	 	     (A)     the Company shall have delivered to the Trustee a written
opinion, in form and substance satisfactory to the Trustee, of
independent legal counsel of recognized standing, as to the continued
validity, binding effect and enforceability of this Indenture and the
Notes and to the further effect that such counsel is not aware of any
pending change in, or amendment to, the laws (or any regulations
promulgated thereunder) of any Subject Country in which the proposed
Successor Corporation is incorporated or maintains its principal place of
business or principal executive office, or any taxing authority thereof
or therein, affecting taxation, or any pending execution of or amendment
to, or any pending change in application of or official position
regarding, any treaty or treaties affecting taxation to which any such
Subject Country is a party, which, in any such case, would permit the
Company to redeem the Notes as described in Section 3.07, it being
understood that such counsel may, in rendering such opinion, rely, to the
extent appropriate, on opinions of independent local counsel of
recognized standing and the Company may instead deliver two or more
opinions of counsel which together cover all of the foregoing matters;

		
	 	     (B)     the Company shall have delivered to the Trustee a certificate,
in form and substance satisfactory to the Trustee, signed by two
executive officers of the Successor Corporation, as to the continued
validity, binding effect and enforceability of this Indenture and the
Notes; and

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	 	     (C)     the Successor Corporation shall, promptly but no later than 60
days following the date of such Subject Transaction, consent to the
jurisdiction of the Courts of the State of New York.

          In the event of any Subject Transaction in which the Successor Corporation
is organized and existing under the laws of a Subject Country, the Company will
indemnify and hold harmless the Holder of each Note from and against any and
all present and future taxes, levies, imposts, charges and withholdings
(including, without limitation, estate, inheritance, capital gains and other
similar taxes), and any and all present and future registration, stamp, issue,
documentary or other similar taxes, duties, fees or charges, imposed, assessed,
levied or collected by or for the account of any jurisdiction or political
subdivision or taxing or other governmental agency or authority thereof or
therein on or in respect of the Notes, this Indenture or any other agreement
relating to calculations to be performed with respect to the Notes or any
amount paid or payable under any of the foregoing which, in any such case,
would not have been imposed had such Subject Transaction not occurred.

ARTICLE 6

DEFAULTS AND REMEDIES

SECTION 6.01. Events of Default.

          (a)     “Events of Defaults” are:

		
	 	     (i)     default for 30 days in the payment when due of interest on the
Notes (whether or not prohibited by the subordination provisions of this
Indenture);

		
	 	     (ii)     default in payment when due of the principal of, or premium, if
any, on the Notes (whether or not prohibited by the subordination
provisions of this Indenture);

		
	 	     (iii)     failure by the Company for 30 days after notice from either
the Trustee or the Holders of at least 25% in principal amount of the
then outstanding Notes to comply with the provisions described in
Sections 4.07, 4.09, 4.10, 4.14 or 5.01;

		
	 	     (iv)     failure by the Company for 60 days after notice from either the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes to comply with any of its other agreements in this
Indenture or the Notes;

		
	 	     (v)     default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced any
Debt for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any
of its Restricted Subsidiaries) whether such Debt or guarantee now
exists, or is created after the date of this Indenture, which default (a)
is caused by a failure to pay principal of or premium, if any, or
interest on such Debt prior to the expiration of the grace period
provided in such Debt on the date of such default (a “Payment Default”)
or (b) results in the

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	 	acceleration of such Debt prior to its express maturity and, in each
case, the principal amount of any such Debt, together with the principal
amount of any other such Debt the maturity of which has been so
accelerated, aggregates $40.0 million or more;

		
	 	     (vi)     failure by the Company or any of its Restricted Subsidiaries to
pay final judgments aggregating in excess of $40.0 million, which
judgments are not paid, discharged or stayed for a period of 60 days; or

		
	 	     (vii)     the Company or any of its Significant Subsidiaries:

		
	 	     (A)     commences a voluntary case under any Bankruptcy Law,

		
	 	     (B)     consents to the entry of an order for relief against it in
an involuntary case under any Bankruptcy Law,

		
	 	     (C)     consents to the appointment of a custodian of it or for
all or substantially all of its property,

		
	 	     (D)     makes a general assignment for the benefit of its
creditors,

		
	 	     (E)     generally is not paying its debts as they become due; or

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

		
	 	     (A)     is for relief against the Company or any of its
Significant Subsidiaries,

		
	 	     (B)     appoints a custodian of the Company or any of its
Significant Subsidiaries or for all or substantially all of the
property of the Company or any of its Significant Subsidiaries, or

		
	 	     (C)     orders the liquidation of the Company or any of its
Significant Subsidiaries; and the order or decree remains unstayed
and in effect for 60 consecutive days.

          (b)     The Company shall be required to deliver to the Trustee annually a
statement regarding compliance with this Indenture, and the Company shall be
required within 30 days of becoming aware of any Default or Event of Default to
deliver to the Trustee a statement specifying such Default or Event of Default.
The Trustee may withhold from Holders notice of any continuing Default or
Event of Default (except a Default or Event of Default relating to the payment
of principal of, premium, if any, or interest on, the Notes) if it determines
that withholding notice is in their interest.

          (c)     In the case of any Event of Default occurring by reason of any willful
action (or inaction) taken (or not taken) by or on behalf of the Company with
the intention of avoiding payment of the premium that the Company would have
had to pay if the Company then had elected to redeem the Notes on May 15, 2008
pursuant to the optional redemption provisions of this Indenture, an

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equivalent premium shall also become and be immediately due and payable to
the extent permitted by law upon the acceleration of the Notes. If an Event of
Default occurs prior to May 15, 2008 by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Company with the
intention of avoiding the prohibition on redemption of the Notes prior to May
15, 2008, then the premium specified in this Indenture shall also become
immediately due and payable to the extent permitted by law upon the
acceleration of the Notes.

SECTION 6.02.  Acceleration.

          If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, with respect to the Company, any Restricted
Subsidiary, any Significant Subsidiary or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary, all
outstanding Notes will become due and payable without further action or notice.
The Holders of a majority in aggregate principal amount of the then
outstanding Notes by written notice to the Trustee may on behalf of all of the
Holders rescind an acceleration and its consequences if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal, interest or premium that has become due solely
because of the acceleration) have been cured or waived.

SECTION 6.03.  Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal, premium, if any, and
interest and Liquidated Damages, if any, on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of
the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. All
remedies are cumulative to the extent permitted by law.

SECTION 6.04.  Waiver of Past Defaults.

          The Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes, waive any existing Default or Event of Default and its consequences
under this Indenture except a continuing Default or Event of Default in the
payment of interest on, or the principal of, the Notes. Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Indenture, but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

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SECTION 6.05.  Control by Majority.

          Holders may not enforce this Indenture or the Notes except as provided
herein. Holders of a majority in principal amount of the then outstanding
Notes may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture or that the Trustee determines may be
unduly prejudicial to the rights of other Holders or that may involve the
Trustee in personal liability.

SECTION 6.06.  Limitation on Suits.

          A Holder of a Note may pursue a remedy with respect to this Indenture or
the Notes only if:

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

		
	 	     (b)     the Holders of at least 25% in principal amount of the then
outstanding Notes make a written request to the Trustee to pursue the
remedy;

		
	 	     (c)     such Holder of a Note or Holders offer and, if requested,
provide to the Trustee indemnity satisfactory to the Trustee against any
loss, liability or expense;

		
	 	     (d)     the Trustee does not comply with the request within 60 days
after receipt of the request and the offer and, if requested, the
provision of indemnity; and

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

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

SECTION 6.07.  Rights of Holders of Notes to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium and Liquidated
Damages, if any, and interest an the Note, on or after the respective due dates
expressed in the Note (including in connection with an offer to purchase), or
to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

SECTION 6.08.  Collection Suit by Trustee.

          If an Event of Default specified in Section 6.01(i) or (ii) hereof occurs
and is continuing, the Trustee is authorized to recover judgment in its own
name and as trustee of an express trust against the Company for the whole
amount of principal of, premium and Liquidated Damages, if any, and interest
remaining unpaid on the Notes and interest on overdue principal and, to the
extent lawful, interest and such further amount as shall be sufficient to cover
the costs and expenses of collection,

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including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

SECTION 6.09.  Trustee May File Proofs of Claim.

          The Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the
Company (or any other obligor upon the Notes), its creditors or its property
and shall be entitled and empowered to participate as a member, voting or
otherwise, of any official committee of creditors appointed in such matter and
shall be entitled and empowered to collect, receive and distribute any money or
other property payable or deliverable on any such claims and any custodian in
any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due 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 7.07 hereof. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof
out of the estate in any such proceeding, shall be denied for any reason,
payment of the same shall be secured by a Lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other properties
that the Holders may be entitled to receive in such proceeding whether in
liquidation or under any plan of reorganization or arrangement or otherwise.
Nothing herein contained shall be deemed to authorize the Trustee to authorize
or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

SECTION 6.10.  Priorities.

          If the Trustee collects any money pursuant to this Article 6, it shall pay
out the money in the following order:

          First: to the Trustee, its agents and counsel for amounts due under
Section 7.07 hereof, including payment of all compensation, expense and
liabilities incurred, and all advances made, by the Trustee and the costs and
expenses of collection;

          Second: to Holders for amounts due and unpaid on the Notes for principal,
premium and Liquidated Damages, if any, and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes for principal, premium and Liquidated Damages, if any, and interest,
respectively, and

          Third: to the Company or to such party as a court of competent
jurisdiction shall direct.

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          The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.10.

SECTION 6.11. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the cost of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder
of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than
10% in principal amount of the then outstanding Notes.

ARTICLE 7

TRUSTEE

SECTION 7.01. Duties of Trustee.

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

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

		
	 	     (i)     the duties of the Trustee shall be determined solely by the
express provisions of this Indenture and the Trustee need perform only
those duties that are specifically set forth in this Indenture and no
others, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and
	 
	 	     (ii)     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 similar
documents) or opinions furnished to the Trustee and conforming to the
requirements of this Indenture. However, the Trustee shall examine the
certificates (or similar documents) and opinions to determine whether or
not they conform to the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other
facts stated therein or otherwise verify the contents thereof).

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

		
	 	     (i)     this paragraph does not limit the effect of paragraph (b) of
this Section 7.01;

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	 	     (ii)     the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer, unless it is proved that the
Trustee was grossly negligent in ascertaining the pertinent facts; and

		
	 	     (iii)   the Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.05 hereof.

          (d)     Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee, the Paying Agent, Registrar
or Note Custodian is subject to paragraphs (a), (b), (c) and (e) of this
Section 7.01.

          (e)     No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability. The Trustee shall be under no
obligation to exercise any of its rights and powers under this Indenture at be
request of any Holders, unless such Holder shall have offered to the Trustee
security and indemnity satisfactory to it against any loss, liability or
expense including reasonable attorneys’ fees that might be incurred by it in
compliance with such request or direction.

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

SECTION 7.02. Rights of Trustee.

          (a)     The Trustee may conclusively rely upon 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 any such document.
The Trustee shall receive and retain financial reports and statements of the
Company as provided herein, but it shall have no duty to review or analyze such
reports or statements to determine compliance with covenants or other
obligations of the Company.

          (b)     Before the Trustee acts or refrains from acting, it may require an
Officers’ 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
such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with
counsel of its selection and the advice of such counsel or any opinion of
counsel shall be full and complete authorization and protection from liability
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

          (c)     The Trustee may act through its attorneys and agents and shall not be
responsible for the misconduct or negligence of any such attorney or agent
appointed with due care.

          (d)     The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.

    

          (e)     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.

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          (f)     The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of
the Holders unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities that might be
incurred by it in compliance with such request or direction.

          (g)     Prior to the occurrence of an Event of Default hereunder and after the
curing of all Events of Default which may have occurred, 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, order, approval, bond or other paper or document unless requested in
writing to do so by the Holders representing more than 25% in aggregate
principal amount of Notes then outstanding, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters it
may see fit; provided, however, that if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require indemnity reasonably satisfactory to
it against such cost, expense or liability as a condition to so proceeding.

          (h)     The permissive rights of the Trustee to do things enumerated in this
Indenture should not be construed as a duty unless so specified herein.

SECTION 7.03. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner
or pledgee of Notes 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 it
must eliminate such conflict within 90 days, apply to the Commission for
permission to continue as trustee or resign. Any Agent may do the same with
like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11
hereof

SECTION 7.04. Trustee’s Disclaimer.

          The Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company’s use of the proceeds from the Notes or any money
paid to the Company or upon the Company’s direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes
or any other document in connection with the sale of the Notes or pursuant to
this Indenture other than its certificate of authentication.

SECTION 7.05. Notice of Defaults.

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

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          (b)     If a Default or Event of Default occurs and is continuing and if it is
known to the Trustee in accordance with the provisions of paragraph (a) of this
Section 7.05, the Trustee shall mail to Holders a notice of the Default or
Event of Default within 90 days after it occurs. Except in the case of a
Default or Event of Default in payment of principal of, premium, if any, or
interest on any Note, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of the Holders of the Notes.

SECTION 7.06. Reports by Trustee to Holders of the Notes.

          Within 60 days after each May 15 beginning with the May 15 following the
date of this Indenture, and for so long as Notes remain outstanding, the
Trustee shall mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA Section 313(a) (but if no event described
in TIA Section 313(a) has occurred within the twelve months preceding the
reporting date, no report need be transmitted). The Trustee also shall comply
with TIA Section 313(b)(2). The Trustee shall also transmit by mail all
reports as required by TIA Section 313(c).

          A copy of each report at the time of its mailing to the Holders shall be
mailed to the Company and filed with the Commission and each stock exchange on
which the Notes are listed in accordance with TIA Section 313(d). The Company
shall promptly notify the Trustee when the Notes are listed on any stock
exchange.

SECTION 7.07. Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time such compensation
for its acceptance of this Indenture and services hereunder as the parties
shall agree from time to time. The Trustee’s compensation shall not be limited
by any law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee promptly upon request for all reasonable disbursements,
advances and expenses incurred or made by it in addition to the compensation
for its services. Such expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

          The Company shall indemnify the Trustee and hold it harmless against any
and all losses, liabilities or expenses incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, including the costs and expenses of enforcing this Indenture against
the company (including this Section 7.07) and defending itself against any
claim (whether asserted by the Company or any Holder or any other person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder, except to the extent any such loss, liability or expense
may be attributable to its gross negligence or bad faith. The Trustee shall
notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Company shall not relieve the Company
of its obligations hereunder. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel
and the Company shall pay the reasonable fees and expenses of such counsel.
The Company need not pay for any settlement, made without its consent, which
consent shall not be unreasonably withheld or delayed.

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          The obligations of the Company under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of
the Trustee.

          To secure the Company’s payment obligations in this Section, the Trustee
shall have a Lien prior to the Notes on all money or property held or collected
by the Trustee, except that held in trust to pay principal and interest on
particular Notes. Such Lien shall survive the satisfaction and discharge of
this Indenture.

          When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(vii) or (viii) hereof occurs, the expenses
and the compensation for the services (including the fees and expenses of its
agents and counsel) are intended to constitute expenses of administration under
any Bankruptcy Law.

          The Trustee shall comply with the provisions of TIA Section 313(b)(2) to
the extent applicable.

SECTION 7.08. Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.

          The Trustee may resign in writing at any time and be discharged from the
trust hereby created by so notifying the Company. The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company in writing. The Company may remove the
Trustee if:

		
	 	     (a)     the Trustee fails to comply with Section 7.10 hereof;
	 
	 	     (b)     the Trustee is adjudged a bankrupt or an insolvent or an order
for relief is entered with respect to the Trustee under any Bankruptcy
Law;
	 
	 	     (c)     a custodian or public officer takes charge of the Trustee or its
property; or
	 
	 	     (d)     the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason (the Trustee in such event being referred to herein
as the retiring Trustee), the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

          If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company, or
the Holders of at least 10% in principal amount of the then outstanding Notes
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

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          If the Trustee, after written request by any Holder of a Note who has been
a Holder of a Note for at least six months, fails to comply with Section 7.10
hereof, such Holder of a Note may petition any court of competent jurisdiction
for the removal of the Trustee and the appointment of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Holders of the Notes. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, provided all sums
owing to the Trustee hereunder have been paid and subject to the Lien provided
for in Section 7.07 hereof. Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under Section 7.07
hereof shall continue for the benefit of the retiring Trustee.

SECTION 7.09. Successor Trustee by Merger, Etc.

          If the Trustee consolidates, merges or converts into, or transfers by sale
or otherwise all or substantially all of its corporate trust business to
(including the administration of this Indenture), another corporation, the
successor corporation without any further act shall be the successor Trustee.

SECTION 7.10. Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or
state authorities and that has (or in the case of a subsidiary of a bank
holding company, its parent shall have) a combined capital and surplus of at
least $100.0 million as set forth in its most recent published annual report of
condition.

          This Indenture shall always have a Trustee who satisfies the requirements
of TIA Section 310(a)(1), (2) and (5). The Trustee is subject to TIA Section
310(b).

SECTION 7.11. Preferential Collection of Claims Against Company.

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

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ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

SECTION 8.01. Option to Effect Legal Defeasance or Covenant
Defeasance.

          The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers’ Certificate, at any time, elect to have
either Section 8.02 or 8.03 hereof applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article 8.

SECTION 8.02. Legal Defeasance and Discharge.

          Upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Company shall
be deemed to have paid and discharged the entire Debt represented by the
outstanding Notes, which shall thereafter be deemed to be “outstanding” only
for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in (i) and (ii) below, and to have satisfied all of its
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments delivered
to it by the Company acknowledging the same), except for the following
provisions which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of outstanding Notes to receive payments
in respect of the principal of, premium, if any, and interest on such Notes
when such payments are due from the trust referred to below, (ii) the Company’s
obligations with respect to the Notes concerning issuing temporary Notes,
registration of Notes, mutilated, destroyed, lost or stolen Notes and the
maintenance of an office or agency for payment and money for security payments
held in trust, (iii) the rights, powers, trusts, duties and immunities of the
Trustee, and the Company’s obligations in connection therewith and (iv)
Section 8.02 of this Indenture. Subject to compliance with this Article 8, the
Company may exercise its option under this Section 8.02 notwithstanding the
prior exercise of its option under Section 8.03 hereof.

SECTION 8.03. Covenant Defeasance.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants contained in Article 5 and in Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14 and 4.16 hereof with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company may omit to comply with and shall have no liability in respect of any term, condition or

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limitation set forth in any such covenant, whether directly or indirectly,
by reason of any reference elsewhere herein to any such covenant or by reason
of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute a Default or an
Event of Default under Section 6.01 hereof, but, except as specified above, the
remainder of this Indenture and such Notes shall be unaffected thereby. In
addition, upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, Sections 6.01(iii) through 6.01(vi) hereof
shall not constitute Events of Default.

SECTION 8.04. Conditions to Legal or Covenant Defeasance.

          The following shall be the conditions to the application of either Section
8.02 or 8.03 hereof to the outstanding Notes:

          In order to exercise either Legal Defeasance or Covenant Defeasance:

		
	 	     (i)     the Company must irrevocably deposit with the Trustee, in trust,
for the benefit of the Holders of the Notes, cash in U.S. dollars,
non-callable Government Securities, or a combination thereof, in such
amounts as will be sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of, premium,
if any, and interest on the outstanding Notes on the stated maturity or
on the applicable redemption date, as the case may be, and the Company
must specify whether the Notes are being defeased to maturity or to a
particular redemption date;
	 
	 	     (ii)    in the case of Legal Defeasance, the Company shall have
delivered to the Trustee an opinion of counsel in the United States
confirming that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the date
of this Indenture, there has been a change in the applicable federal
income tax law, in either case to the effect that, and based thereon such
opinion of counsel shall confirm that, the Holders of the outstanding
Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such Legal Defeasance had not
occurred;
	 
	 	     (iii)   in the case of Covenant Defeasance, the Company shall have
delivered to the Trustee an opinion of counsel in the United States
confirming that the Holders of the outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the
case if such Covenant Defeasance had not occurred;
	 
	 	     (iv)   no Default or Event of Default shall have occurred and be
continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such
deposit) or insofar as Events of Default from bankruptcy or insolvency
events are concerned, at any time in the period ending on the 91st day
after the date of deposit;

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	 	     (v)     such Legal Defeasance or Covenant Defeasance will not result in
a breach or violation of, or constitute a default under, any material
agreement or instrument (other than this Indenture) to which the Company
or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound;
	 
	 	     (vi)     the Company must have delivered to the Trustee an opinion of
counsel to the effect that on and after the 91st day following the
deposit, the trust funds will not be subject to the effect of any
applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally;
	 
	 	     (vii)     the Company must deliver to the Trustee an Officers’
Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of Notes over the other creditors of the
Company or with the intent of defeating, hindering, delaying or
defrauding creditors of the Company or others; and
	 
	 	     (viii)     the Company must deliver to the Trustee an Officers’
Certificate and an opinion of counsel, each stating that all conditions
precedent provided for relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

SECTION 8.05. Deposited Money and Government Securities to Be Held
in Trust; Other Miscellaneous Provisions.

          Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively, and solely for purposes of this Section
8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money need not be segregated from other
funds except to the extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

          Anything in this Article 8 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(a) hereof), are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

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SECTION 8.06. Repayment to Company.

          Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, interest or
Liquidated Damages, if any, on any Note and remaining unclaimed for two years
after such principal, and premium, if any, interest or Liquidated Damages has
become due and payable shall be paid to the Company on its request or (if then
held by the Company) shall be discharged from such trust; and the Holder of
such Note shall thereafter, as an unsecured creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in The New York Times and
The Wall Street Journal (national edition) (and, so long as the Notes are
listed on the Luxembourg Stock Exchange and the rules of such exchange so
require, in the city of Luxembourg and any other city which is required under
the rules of any stock exchange on which the Notes are listed), notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such notification or
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

SECTION 8.07. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any United States
dollars or non-callable Government Securities in accordance with Section 8.02
or 8.03 hereof, as the case may be, by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company’s obligations under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the
Company makes any payment of principal of, premium, if any, interest or
Liquidated Damages on any Note following the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

SECTION 8.08. Survival.

          The Trustee’s rights under this Article 8 shall survive termination of
this Indenture.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

SECTION 9.01. Without Consent of Holders.

          Notwithstanding Section 9.02 hereof, the Company and the Trustee may amend
or supplement this Indenture or the Notes without the consent of any Holder:

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	 	     (a)     to cure any ambiguity, omission, defect or inconsistency;
	 
	 	     (b)     to provide for uncertificated Notes in addition to or in place
of certificated Notes or to alter the provisions of Article 2 hereof
(including the related definitions in a manner that does not materially
adversely affect any Holder);
	 
	 	     (c)     to provide for the assumption of the Company obligations to the
Holders of the Notes by a successor to the Company pursuant to Article 5
hereof;
	 
	 	     (d)     to make any change that would provide any additional rights or
benefits to the Holders or that does not adversely affect the legal
rights hereunder of any Holder;
	 
	 	     (e)     to comply with requirements of the Commission in order to effect
or maintain the qualification of this Indenture under the TIA;
	 
	 	     (f)     to provide for the issuance of the Exchange Notes in accordance
with the Registration Rights Agreement; or
	 
	 	     (g)     to make all payments of principal and interest through its
branch office in any foreign country instead of its Bermuda foreign
branch office; provided that such change shall not have an adverse effect
on the Holders; and provided, further, that Section 11.15 shall be
amended accordingly.

          Upon the request of the Company accompanied by a resolution of its Board
of Directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in
Section 7.02 hereof, the Trustee shall join with the Company in the execution
of any amended or supplemental indenture authorized or permitted by the terms
of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

SECTION 9.02. With Consent of Holders.

          Except as provided below in this Section 9.02, the Company and the
Trustee, may amend or supplement this Indenture (including Section 3.09 and
4.10 hereof) and the Notes or any supplemental indenture or modify the rights
of the Holders with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or
Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture or the Notes may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes (including consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes); provided that no such
modification may, without the consent of each Holder affected thereby:

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	 	     (i)     reduce the principal amount of Notes whose Holders must consent
to an amendment, supplement or waiver,
	 
	 	     (ii)     reduce the principal of or change the fixed maturity of any
Note or alter or waive the provisions with respect to the redemption of
the Notes (other than provisions relating to the covenants in Section
4.14),
	 
	 	     (iii)     reduce the rate of or change the time for payment of interest,
including default interest, on any Note,
	 
	 	     (iv)     waive a Default or Event of Default in the payment of principal
of or premium, if any, or interest on the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in
aggregate principal amount of the Notes and a waiver of the payment
default that resulted from such acceleration),
	 
	 	     (v)     make any Note payable in money other than that stated in the
Notes,
	 
	 	     (vi)     make any change in the provisions of this Indenture relating to
waivers of past Defaults or the rights of Holders of Notes to receive
payments of principal of or premium, if any, or interest on the Notes,
	 
	 	     (vii)     waive a redemption payment with respect to any Note (other
than a payment required by one of the covenants in Section 4.14) or
	 
	 	     (viii)     make any change in the foregoing amendment and waiver
provisions.

          In addition, any amendment or supplement to the provisions of Article 12
of this Indenture will require the consent of the Holders of at least 75% in
aggregate principal amount of the Notes then outstanding if such amendment
would adversely affect the rights of Holders of Notes.

          Upon the request of the Company accompanied by a resolution of its Board
of Directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders as aforesaid, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee shall
join with the Company in the execution of such amended or supplemental
indenture unless such amended or supplemental indenture directly affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but shall not be obligated to,
enter into such amended or supplemental indenture.

          It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

          After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver. Any failure of the
Company to mail such notice, or any defect therein, shall

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not, however, in any way impair or affect the validity of any such amended
or supplemental indenture or waiver.

SECTION 9.03. Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Notes shall be set
forth in an amended or supplemental indenture that complies with the TIA as
then in effect.

SECTION 9.04. Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder is a continuing consent by the Holder and every subsequent
Holder or portion of a Note that evidences the same debt as the consenting
Holder’s Note, even if notation of the consent is not made on any Note.
However, any such Holder or subsequent Holder may revoke the consent as to its
Note if the Trustee receives written notice of revocation before the date the
waiver, supplement or amendment becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds
every Holder. An amendment or waiver shall become effective upon receipt by
the Trustee of the requisite number of written consents under Section 9.01 or
9.02 as applicable.

          The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Holders entitled to give their consent or take any
other action described above or required or permitted to be taken pursuant to
this Indenture. If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who held Notes at such record
date (or their duly designated proxies), and only those Persons, shall be
entitled to give such consent or to revoke any consent previously given or to
take any such action, whether or not such Persons continue to be Holders after
such record date.

SECTION 9.05. Notation on or Exchange of Notes.

          The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company in
exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

          Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

SECTION 9.06. Trustee to Sign Amendments, Etc.

          Trustee shall sign any amended or supplemental indenture authorized
pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee and all
other conditions to the execution and delivery of such amendment or supplement
set forth in this Article 9 are fulfilled. The Company may not sign an
amendment or supplemental indenture until the Board of Directors approves it.
In executing any amended or supplemental indenture, the Trustee shall be
entitled to receive and (subject to Section 7.01 hereof) shall be fully

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protected in relying upon an Officers’ Certificate and an Opinion of
Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture and that such amendment is the legal,
valid and binding obligation of the Company, enforceable against it in
accordance with its terms, subject to customary exceptions, and complies with
the provisions hereof (including Section 9.03).

ARTICLE 10

SATISFACTION AND DISCHARGE

SECTION 10.01. Satisfaction and Discharge of Indenture.

          This Indenture shall be discharged and shall cease to be of further effect
as to all Notes issued hereunder, when either

		
	 	     (a)     all such Notes theretofore authenticated and delivered (except
lost, stolen or destroyed Notes that have been replaced or paid and Notes
for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust) have been delivered to the Trustee
for cancellation; or
	 
	 	     (b)     (i) all such Notes not theretofore delivered to the Trustee for
cancellation have become due and payable and the Company has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose an amount of money sufficient to pay and discharge
the entire indebtedness on the Notes not theretofore delivered to the
Trustee for cancellation, for principal amount, premium, if any, and
accrued interest to the date of such deposit; (ii) the Company has paid
all sums payable by it under this Indenture; and (iii) the Company has
delivered irrevocable instructions to the Trustee to apply the deposited
money toward the payment of the Notes at Stated Maturity or on the
redemption date, as the case may be.

          In addition, the Company must deliver an Officers’ Certificate and an
Opinion of Counsel to the Trustee stating that all conditions precedent to
satisfaction and discharge have been complied with.

SECTION 10.02. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 4.17 hereof,
all money deposited with the Trustee pursuant to Section 10.01 hereof shall be
held in trust and applied by it, in accordance with the provisions of the Notes
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
Persons entitled thereto, of the principal (and premium, if any), interest and
Liquidated Damages, if any, for whose payment such money has been deposited
with the Trustee.

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          If the Trustee or Paying Agent is unable to apply any money or Government
Securities in accordance with Section 10.01 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Notes shall be revived and
reinstated as though such deposit had occurred pursuant to Section 10.01
hereof, provided that if the Company has made any payment of principal of,
premium, if any, or interest on any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent.

ARTICLE 11

MISCELLANEOUS

SECTION 11.01. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA Section 318(c), the imposed duties shall control.

SECTION 11.02. Notices.

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

	 
	If to the Company:
	 
	Flextronics International Ltd.
	2090 Fortune Drive
	San Jose, CA 95131
	Attention: Investors Relations
	Telephone: (408) 428-1300
	 
	with a copy to:
	 
	Fenwick & West LLP
	801 California Street
	Mountain View, CA 04041
	Attention: David K. Michaels, Esq.
	Telephone: (415) 875-2455

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	If to the Trustee:
	 
	J.P. Morgan Trust Company,
	      National Association
	56 Mission Street, 13th Floor
	Attention: James Nagy
	Telephone: (415) 315-7533
	 
	With a copy to:
	 
	Nixon Peabody LLP
	Two Embarcadero Center
	Suite 2700
	San Francisco, California 94111-3996
	Attention: Varya Simpson
	Telephone: (415) 984-8200

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

          All notices and communications (other than those sent to Holders) shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged by the sender’s telecopier, if
telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

          Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register
kept by the Registrar or sent by telecopy, with receipt acknowledged by
sender’s telecopier. Any notice or communication shall also be so mailed to
any Person described in TIA Section 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

          If a notice or communication is given in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives
it, except that any notice or communication to the Trustee shall be deemed to
have been duly given to the Trustee when received at the Corporate Trust Office
of the Trustee.

          In addition, all notices will be published (so long as the Notes are
listed on the Luxembourg Stock Exchange and the rules of the Exchange so
require) in a leading daily newspaper of general circulation in Luxembourg
(which is expected to be the Luxembourg Wort). Any such notice shall be deemed
to have been given on the date of such publication, or, if published more than
once or on different dates, on the first date on which publication in such
newspaper is made.

          If the Company mails a notice or communication to Holders, it shall mail a
copy to the Trustee and each Agent at the same time.

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SECTION 11.03. Communication by Holders with Other Holders.

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

SECTION 11.04. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any
action under this Indenture, except with respect to the initial authentication
of Notes on the date of this Indenture, the Company shall furnish to the
Trustee:

		
	 	     (a)     an Officers’ Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth
in Section 11.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

		
	 	     (b)     an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth
in Section 11.05 hereof) stating that, in the opinion of such counsel,
all such conditions precedent and covenants have been satisfied.

SECTION 11.05. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

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

		
	 	     (b)     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;

		
	 	     (c)     a statement that, in the opinion of such Person, he or she has
or they have 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 satisfied; and

		
	 	     (d)     a statement as to whether or not, in the opinion of such Person,
such condition or covenant has been satisfied.

SECTION 11.06. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

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SECTION 11.07. No Personal Liability of Directors, Officers,
Employees and Stockholders.

          No past, present or future director, officer, employee, incorporator,
agent or stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Notes, this Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation.
Each Holder by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Notes.

SECTION 11.08. GOVERNING LAW.

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

          The Company shall submit to the jurisdiction of the U.S. federal and New
York state courts located in the Borough of Manhattan, City and State of New
York for purposes of all legal actions and proceedings instituted in connection
with the Notes and this Indenture.

SECTION 11.09. Consent to Jurisdiction and Service.

          To the fullest extent permitted by applicable law, the Company hereby
irrevocably submits to the jurisdiction of any Federal or State court located
in the Borough of Manhattan in The City of New York, New York in any suit,
action or proceeding based on or arising out of or relating to this Agreement
or any Notes or Exchange Notes, and irrevocably agree that all claims in
respect of such suit or proceeding may be determined in any such court. The
Company irrevocably waives, to the fullest extent permitted by law, any
objection which they may have to the laying of the venue of any such suit,
action or proceeding brought in such a court and any claim that any suit,
action or proceeding brought in such a court has been brought in an
inconvenient forum. The Company agrees that final judgment in any such suit,
action or proceeding brought in such a court may be enforced in the courts of
any jurisdiction to which the Company is subject by a suit upon such judgment,
provided that service of process is effected upon the Company in the manner
specified herein or as otherwise permitted by law. To the extent that the
Company has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service of now, attachment
prior to judgment, attachment in aid of execution, executor or otherwise) with
respect to itself or its property, the Company hereby irrevocably waives such
immunity in respect of their respective obligations under this Agreement, to
the extent permitted by law.

SECTION 11.10. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

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SECTION 11.11. Successors.

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

SECTION 11.12. Severability.

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

SECTION 11.13. Counterpart Originals.

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

SECTION 11.14. Table of Contents, Headings, Etc.

          The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof.

SECTION 11.15. Bermuda Branch; Full Recourse Obligations.

          Notwithstanding anything to the contrary contained herein, all payments of
principal and interest by the Company with respect to the Notes will be made by
the Company through its Bermuda branch office; provided, however, that
notwithstanding the foregoing, the Company acknowledges that its Obligations
hereunder are full recourse to the Company and are in no manner limited to any
extent to any branch thereof and shall in no manner impair the Trustee’s
ability to collect any Obligation from the Company.

ARTICLE 12

SUBORDINATION

SECTION 12.01. Notes Subordinated to Senior Debt.

          The Company covenants and agrees, and each Holder of the Notes, by its
acceptance thereof, likewise covenants and agrees, that all Notes shall be
issued subject to the provisions of this Article 12; and each Person holding
any Note, whether upon original issue or upon transfer, assignment or exchange
thereof, accepts and agrees that the payment of all Obligations on the Notes by
the Company shall, to the extent and in the manner herein set forth, be
subordinated and junior in right of payment to the prior payment in full in
cash or Cash Equivalents (or such payment shall be duly provided for to the
satisfaction of the holders of the Senior Debt) of all Obligations on the
Senior Debt; that the subordination is for the benefit of, and shall be
enforceable directly by, the holders of Senior

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Debt, and that each holder of Senior Debt, whether now outstanding or
hereafter created, incurred, assumed or guaranteed, shall be deemed to have
acquired Senior Debt, in reliance upon the covenants and provisions contained
in this Indenture.

SECTION 12.02. No Payment on Notes in Certain Circumstances.

          (a)     If (i) a default in the payment of the principal of, premium, if any,
or interest on Designated Senior Debt occurs and is continuing beyond any
applicable period of grace or (ii) any other default occurs and is continuing
with respect to Designated Senior Debt that permits holders of the Designated
Senior Debt to which such default relates to accelerate its maturity and, in
the case of clause (ii), the Trustee receives a notice of such default (a
“Payment Blockage Notice”) from the Company and the holders of any Designated
Senior Debt then, the Company may not make any payment upon or in respect of
the Notes (except Permitted Junior Securities or from the trust described in
Article 8). Payments on the Notes may and shall be resumed (x) in the case of
a payment default, upon the date on which such default is cured or waived and
(y) in case of a nonpayment default, the earlier of (a) the date on which such
nonpayment default is cured or waived, (b) 179 days after the date on which the
applicable Payment Blockage Notice is received, (c) the date such Designated
Senior Debt shall have been discharged or paid in full in cash or (d) the date
such Payment Blockage Period shall have been terminated by written notice to
the Company or the Trustee from the holders of Designated Senior Debt
initiating such Payment Blockage Period, after which, in the case of clauses
(a), (b), (c) and (d), the Company shall resume making any and all required
payments in respect of the Notes, including any payments not made to the
Holders of the Notes during the Payment Blockage Period due to the foregoing
prohibitions, unless the provisions described in clause (i) are then
applicable. No new period of payment blockage may be commenced unless and
until 360 days have elapsed since the effectiveness of the immediately prior
Payment Blockage Notice. No nonpayment default that existed or was continuing
on the date of delivery of any Payment Blockage Notice to the Trustee shall be,
or be made, the basis for a subsequent Payment Blockage Notice unless such
default shall have been cured or waived for a period of not less than 90 days.

          The Trustee must provide the holders of Designated Senior Debt at least 10
days’ prior written notice of any acceleration of the maturity of the Notes.

          As a result of the subordination provisions described above, in the event
of a liquidation or insolvency, Holders of the Notes may recover less ratably
than creditors of the Company who are holders of Senior Debt.

          (b)     In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee or any Holder when such payment is prohibited by
Section 12.02(a), such payment shall be held in trust for the benefit of, and
shall be paid over or delivered to, the holders of Senior Debt (pro rata to
such holders on the basis of the respective amount of Senior Debt held by such
holders) as their respective interests may appear. The Trustee shall be
entitled to conclusively rely on information regarding amounts then due and
owing on the Senior Debt, if any, received from the holders of Senior Debt (or
their Representatives), or, if such information is not received from such
holders or their Representatives, from the Company and only amounts included in
the information provided to the Trustee shall be paid to the holders of Senior
Debt. The Company shall keep complete and accurate records of the names,
addresses and amounts owed to all holders of Senior Debt and shall produce

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such records to the Trustee upon request and the Trustee shall be
absolutely protected in relying on such records in paying over or delivering
moneys pursuant to this Article 12.

          Nothing contained in this Article 12 shall limit or compromise the right
of the Trustee or the Holders to take any action to accelerate the maturity of
the Notes pursuant to Section 6.02 or to pursue any rights or remedies
hereunder or otherwise; provided, however, that all Senior Debt thereafter due
or declared to be due shall first be paid in full in cash or Cash Equivalents
before the Holders are entitled to receive any payment of any kind or character
with respect to Obligations on the Notes.

SECTION 12.03. Payment Over of Proceeds upon Dissolution, Etc.

          (a)     Upon any distribution to creditors of the Company in a total or
partial liquidation, winding-up, reorganization or dissolution of the Company
or in a voluntary or involuntary bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, an
assignment for the benefit of creditors or any marshalling of the Company’s
assets and liabilities, the holders of Senior Debt will be entitled to receive
payment in full in cash of all Obligations due in respect of such Senior Debt
(including interest after the commencement of any such proceeding at the rate
specified in the applicable Senior Debt) before the Holders of the Notes will
be entitled to receive any payment with respect to the Notes, and until all
Obligations with respect to Senior Debt are paid in full in cash, any
distribution to which the Holders of the Notes would be entitled shall be made
to the holders of Senior Debt (except that Holders of the Notes may receive
Permitted Junior Securities and payments made from the trust described in
Article 8).

          (b)     To the extent any payment of Senior Debt (whether by or on behalf of
the Company, as proceeds of security or enforcement of any right of setoff or
otherwise) is declared to be fraudulent or preferential, set aside or required
to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person under any bankruptcy, insolvency, receivership,
fraudulent conveyance or similar law, then, if such payment is recovered by, or
paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person, the Senior Debt or part thereof originally intended to
be satisfied shall be deemed to be reinstated and outstanding as if such
payment had not occurred.

          (c)     In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in
cash, property or securities, shall be received by any Holder when such payment
or distribution is prohibited by Section 12.03(a), such payment or distribution
shall be held in trust for the benefit of, and shall be paid over or delivered
to, the holders of Senior Debt (pro rata to such holders on the basis of the
respective amount of Senior Debt held by such holders) or their
Representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Debt may have been issued, as their respective
interests may appear, for application to the payment of Senior Debt remaining
unpaid until all such Senior Debt has been paid in full in cash or Cash
Equivalents, after giving effect to any concurrent payment, distribution or
provision therefor to or for the holders of such Senior Debt.

          (d)     The consolidation of the Company with, or the merger of the Company
with or into, another corporation or the liquidation or dissolution of the
Company following the conveyance or transfer of all or substantially all of its
assets, to another corporation upon the terms and conditions

-86-

 

provided in Article 5 hereof shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section if,
in the event the Company is not the surviving corporation, such other
corporation shall, as a part of such consolidation, merger, conveyance or
transfer, assume the Company’s obligations hereunder in accordance with Article
5 hereof.

SECTION 12.04. Payments May Be Paid Prior to Dissolution.

          Nothing contained in this Article 12 or elsewhere in this Indenture shall
prevent (i) the Company, except under the conditions described in Sections
12.02 and 12.03, from making payments at any time for the purpose of making
payments of principal of and interest on the Notes, or from depositing with the
Trustee any monies for such payments, or (ii) in the absence of actual
knowledge by the Trustee that a given payment would be prohibited by Section
12.02 or 12.03, the application by the Trustee of any monies deposited with it
for the purpose of making such payments of principal of, and interest on, the
Notes to the Holders entitled thereto unless at least one Business Day prior to
the date upon which such payment would otherwise become due and payable, the
Trustee shall have received the written notice provided for in Section 12.02(a)
or in Section 12.07. The Company shall give prompt written notice to the
Trustee of any dissolution, winding-up, liquidation or reorganization of the
Company.

SECTION 12.05. Subrogation.

          Subject to the payment in full in cash or Cash Equivalents of all Senior
Debt, the Holders shall be subrogated to the rights of the holders of Senior
Debt to receive payments or distributions of cash, property or securities of
the Company applicable to the Senior Debt until the Notes shall be paid in
full; and, for the purposes of such subrogation, no such payments or
distributions to the holders of the Senior Debt or by or on behalf of the
Company or by or on behalf of the Holders by virtue of this Article 12 which
otherwise would have been made to the Holders shall, as between the Company and
the Holders, be deemed to be a payment by the Company to or on account of the
Senior Debt, it being understood that the provisions of this Article 12 are and
are intended solely for the purpose of defining the relative rights of the
Holders, on the one hand, and the holders of the Senior Debt, on the other
hand.

SECTION 12.06. Obligations of the Company Unconditional.

          Nothing contained in this Article 12 or elsewhere in this Indenture or in
the Notes is intended to or shall impair, as among the Company, creditors other
than the holders of Senior Debt, and the Holders, the obligation of the
Company, which is absolute and unconditional, to pay to the Holders the
principal of and any interest on the Notes 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 and creditors of the Company other
than the holders of any Senior Debt, nor shall anything herein or therein
prevent the Holders or the Trustee on their behalf from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article 12 of the holders of Senior
Debt in respect of cash, property or securities of the Company received upon
the exercise of any such remedy.

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SECTION 12.07. Notice to Trustee.

          The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by
the Trustee in respect of the Notes pursuant to the provisions of this Article
12. Regardless of anything to the contrary contained in this Article 12 or
elsewhere in this Indenture, the Trustee shall not be charged with knowledge of
the existence of any default or event of default with respect to any Senior
Debt or of any other facts which would prohibit the making of any payment to or
by the Trustee unless and until the Trustee shall have received notice in
writing referencing this Indenture and the Notes from the Company, or from a
holder of Senior Debt or a Representative therefor, and, prior to the receipt
of any such written notice, the Trustee shall be entitled to assume (in the
absence of actual knowledge of a Responsible Officer to the contrary) that no
such facts exist.

          In the event that the Trustee determines in good faith that any evidence
is required with respect to the right of any Person as a holder of Senior Debt
to participate in any payment or distribution pursuant to this Article 12, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amounts of Senior Debt held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article 12, and if such evidence is not furnished the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such person to receive such payment.

SECTION 12.08. Reliance on Judicial Order or Certificate of
Liquidating Agent.

          Upon any payment or distribution of assets of the Company referred to in
this Article 12, the Trustee, subject to the provisions of Article Seven
hereof, and the Holders shall be entitled to rely upon any order or decree made
by any court of competent jurisdiction in which bankruptcy, dissolution,
winding-up, liquidation or reorganization proceedings are pending, or upon a
certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent
or other person making such payment or distribution, delivered to the Trustee
or the Holders, for the purpose of ascertaining the persons entitled to
participate in such distribution, the holders of the Senior Debt and other Debt
of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this
Article 12.

SECTION 12.09. Trustee’s Relation to Senior Debt or Guarantor
Senior Debt.

          The Trustee and any agent of the Company or the Trustee shall be entitled
to all the rights set forth in this Article 12 with respect to any Senior Debt
which may at any time be held by it in its individual capacity or any other
capacity to the same extent as any other holder of Senior Debt and nothing in
this Indenture shall deprive the Trustee or any such agent of any of its rights
as such holder. The Trustee shall not be liable to any holder of Senior Debt
if it shall mistakenly pay over or deliver to the Holders, the Company or any
other Person monies or assets to which any such holder of the Senior Debt shall
be entitled by virtue of this Article 12.

          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 12, and

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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.

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

SECTION 12.10. Subordination Rights Not Impaired by Acts or
Omissions of the Company or a Guarantor or Holders of Senior
Debt.

          No right of any present or future holders of any Senior Debt to enforce
subordination as provided herein shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance
by the Company with the terms of this Indenture, regardless of any knowledge
thereof which any such holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee, without incurring responsibility to the
Trustee or the Holders and without impairing or releasing the subordination
provided in this Article 12 or the obligations hereunder of the Holders to the
holders of the Senior Debt, do any one or more of the following: (i) change
the manner, place or terms of payment or extend the time of payment of, or
renew or alter, Senior Debt, or otherwise amend or supplement in any manner
Senior Debt, or any instrument evidencing or securing the same or any agreement
under which Senior Debt is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Debt; (iii) release any Person liable in any manner for the payment or
collection of Senior Debt; and (iv) exercise or refrain from exercising any
rights against the Company or any other Person.

SECTION 12.11. Holders Authorize Trustee to Effectuate
Subordination of Securities.

          Each Holder by its acceptance of the Notes authorizes and expressly
directs the Trustee on its behalf to take such action as may be necessary or
appropriate to effectuate, as between the holders of Senior Debt and the
Holders, the subordination provided in this Article 12, and appoints the
Trustee its attorney-in-fact for such purposes, including, in the event of any
dissolution, winding-up, liquidation or reorganization of the Company (whether
in bankruptcy, insolvency, receivership, reorganization or similar proceedings
or upon an assignment for the benefit of creditors or otherwise) tending
towards liquidation of the business and assets of the Company, the filing of a
claim for the unpaid balance of its Notes and accrued interest in the form
required in those proceedings.

          If the Trustee does not file a proper claim or proof of debt in the form
required in such proceeding prior to 30 days before the expiration of the time
to file such claim or claims, then the holders of the Senior Debt or their
Representative are or is hereby authorized to have the right to file and are or
is hereby authorized to file an appropriate claim for and on behalf of the
Holders of said Notes. Nothing herein contained shall be deemed to authorize
the Trustee or the holders of Senior Debt or their Representative to authorize
or consent to or accept or adopt on behalf of any Holder any

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plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any Holder thereof, or to authorize the Trustee or
the holders of Senior Debt or their Representative to vote in respect of the
claim of any Holder in any such proceeding.

SECTION 12.12. This Article 12 Not to Prevent Events of Default.

          The failure to make a payment on account of principal of or interest on
the Notes by reason of any provision of this Article 12 will not be construed
as preventing the occurrence of an Event of Default.

SECTION 12.13. Trustee’s Compensation Not Prejudiced.

          Nothing in this Article 12 will apply to amounts due to the Trustee
pursuant to other Sections in this Indenture.

[Signature Page Follows]

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[Indenture Signature Page]

Dated as of May 8, 2003

	 	 	 	 	 
	 	 	FLEXTRONICS INTERNATIONAL LTD.
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	
	 
	 	 	 	
Name: Robert R.B. Dykes	 
	 	 	 	
Title:   President, Systems Group	 
	 	 	 	 	 
	 	 	
J.P. MORGAN TRUST COMPANY, NATIONAL
	 	 	
ASSOCIATION,
	 	 	
as Trustee	 
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	
	 
	 	 	 	
Name:	 
	 	 	 	
Title:	 

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EXHIBIT A-1

(Face of Note)

[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions
of the
Indenture]

          [This Note is issued with original issue discount for purposes of Section
1271 et seq. of the Internal Revenue Code. For each $1,000 of principal amount
of this Security, the issue price is $[          ] and the amount of original
issue discount is $[     ]. The issue date of this Security is May 8, 2003 and
the yield to maturity is [          ]%.]

FLEXTRONICS INTERNATIONAL LTD.

6 1/2% Senior Subordinated Notes due 2013

	 	 	 	 	 
	No.	 	 	 	CUSIP No.
	$[     
   ]	 	
 	 	 

          FLEXTRONICS INTERNATIONAL LTD. , a Singapore company, promises to pay to
[Insert if a Global Note: Cede & Co.][Insert if a Definitive Note:          ]or
registered assigns, the principal sum of [               ]
($          ) Dollars on May 8, 2013.

          Interest Payment Dates: May 15 and November 15.

          Record Dates: May 1 and November 1.

A-1-1

 

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

Dated: May 8, 2003

	 	 	 	 	 
	 	 	FLEXTRONICS INTERNATIONAL LTD.
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name: Michael E. Marks
	 	 	 	 	Title:   Chief Executive Officer
	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name: Robert R.B. Dykes
	 	 	 	 	Title:   President, Systems Group

This is one of the Notes referred

to in the within-mentioned Indenture:

Dated: May 8, 2003

J.P. Morgan Trust Company, National Association, as Trustee

	 	 
	By:	 
	 	

Authorized Signatory

A-1-2

 

(Back of Note)

6 1/2% Senior Subordinated Notes due 2013

          Capitalized terms used herein shall have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

          1.     PRINCIPAL AND INTEREST. Flextronics International Ltd., a Singapore
company (the “Company”), promises to pay interest on the principal amount of
this Note at 6 1/2% per annum from May 8, 2003 until maturity and shall pay the
Liquidated Damages payable in accordance with the provisions of the following
paragraph. The Company shall pay interest and Liquidated Damages semi-annually
on May 15 and November 15 of each year, or if any such day is not a Business
Day, on the next succeeding Business Day (each an “Interest Payment Date”).
Interest on the Notes shall accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from the date of issuance;
provided that if there is no existing Default or Event of Default relating to
the payment of interest, and if this Note is authenticated between a Record
Date referred to on the face hereof and the next succeeding Interest Payment
Date, interest shall accrue from such next succeeding Interest Payment Date;
provided, further, that the first Interest Payment Date shall be November 15,
2003. The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at a rate that is 1.0% per annum in excess of the
rate then in effect; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest
and Liquidated Damages (without regard to any applicable grace periods) from
time to time on demand at the same rate to the extent lawful. Interest shall
be computed on the basis of a 360-day year of twelve 30-day months.

          The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement. If (a) the Company fails to file any of the Registration
Statements required by the Registration Rights Agreement on or before the date
specified for such filing, (b) any of such Registration Statements is not
declared effective by the Commission on or prior to the date specified for such
effectiveness, (c) the Company fails to consummate the Registered Exchange
Offer within 225 days of the Issue Date with respect to the Exchange Offer
Registration Statement, or (d) any Registration Statement required by the
Registration Rights Agreement is declared effective but thereafter ceases to be
effective in connection with its intended purpose (each such event referred to
in clauses (a) through (d) above a “Registration Default”), then the Company
shall pay to each holder of Transfer Restricted Notes (as defined in the
Registration Rights Agreement) affected thereby liquidated damages (“Liquidated
Damages”) which shall accrue and be payable semi-annually on the Notes and the
Exchange Notes (in addition to the stated interest on the Notes and the
Exchange Notes) from and including the date such Registration Default occurs
to, but excluding the date on which the applicable Registration Statement is
filed or is declared effective, the Registered Exchange Offer is consummated,
or the applicable Registration Statement is again declared effective or made
usable. During the time that Liquidated Damages is accruing continuously, the
rate of such Liquidated Damages shall be 0.25% per annum during the first
90-day period and shall increase by 0.25% per annum for each subsequent 90-day
period, but in no event shall such rate exceed 1.00% per annum in the aggregate
regardless of the number of Registration Defaults. If, after the cure of all
Registration Defaults then in effect, there is a subsequent Registration
Default, the rate of Liquidated Damages for such subsequent Registration
Default shall initially be 0.50%, regardless of the Liquidated Damages rate in
effect with respect to any prior Registration Default at the time of the cure
of such Registration Default.

A-1-3

 

          2.     METHOD OF PAYMENT. The Company shall pay interest on the Notes (except
defaulted interest) and Liquidated Damages to the Persons who are registered
Holders at the close of business on May 1 or November 1 next preceding the
Interest Payment Date, even if such Notes are canceled after such Record Date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest. The Notes shall be
payable as to principal, premium and Liquidated Damages, if any, and interest
at the office or agency of the Company maintained for such purpose within or
outside of the City and State of New York, or, at the option of the Company,
payment of interest and Liquidated Damages may be made by check mailed to the
Holders at their addresses set forth in the register of Holders kept by the
Registrar, and provided that payment by wire transfer of immediately available
funds shall be required with respect to principal of and interest, premium and
Liquidated Damages on, all Global Notes and all other Notes the Holders of
which shall have provided wire transfer instructions to the Company or the
Paying Agent. Such payment shall be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts.

          3.     PAYING AGENT AND REGISTRAR. Initially, Chase Manhattan Bank and Trust
Company, National Association, the Trustee under the Indenture, shall act as
Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Restricted
Subsidiaries may act in any such capacity.

          4.     INDENTURE. The Company issued the Notes under an Indenture dated as of
May 8, 2003 (“Indenture”) between the Company and the Trustee. The terms of
the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.
Code Sections 77aaa-77bbbb) (the “TIA”). The Notes are subject to all such
terms, and Holders are referred to the Indenture and the TIA for a statement of
such terms. To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling. The Notes are obligations of the Company limited to
$400 million in aggregate principal amount.

          5.     OPTIONAL REDEMPTION.

          (a)     Prior to May 15, 2008. The Notes shall not be redeemable at the
Company’s option prior to May 15, 2008. Thereafter, the Notes shall be subject
to redemption at any time at the option of the Company, in whole or in part,
upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below, plus accrued
and unpaid interest thereon to the applicable redemption date (subject to the
right of Holders as of the relevant Record Date to receive interest due on the
relevant Interest Payment Date), if redeemed during the twelve-month period
beginning on May 15 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	
	 	

	2008	 	 	
103.250	%
	2009	 	 	
102.167	%
	2010	 	 	
101.083	%
	2011 and thereafter	 	 	
100.000	%

          (b)     Ordinary Shares Offering. In addition, at any time, or from time to
time, prior to May 15, 2006, the Company may, at its option, use the net cash
proceeds of one or more public or private offering of Ordinary Shares of the
Company (an “Equity Sale”) to redeem, on a pro rata basis, an aggregate of $140
million in aggregate principal amount of the Notes at a redemption price of

A-1-4

 

106.5% of the principal amount thereof plus accrued and unpaid interest
thereon, if any, to the date of redemption; provided that at least $260 million
aggregate principal amount of Notes remains outstanding immediately after any
such redemption; provided, further, that such redemption occurs within 90 days
of the date of the closing of such Equity Sale.

          (c)     Any redemption pursuant to this Section 5 shall be made pursuant to
the provisions of Sections 3.01 through 3.06 of the Indenture.

          (d)     Taxation. If, as the result of any change in or any amendment to the
laws, including any applicable double taxation treaty or convention, of
Singapore (or any Other Jurisdiction, as defined in Section 4.21 of the
Indenture), or of any political subdivision or taxing authority thereof,
affecting taxation, or any change in the application or interpretation or
official position regarding the application of such laws, double taxation
treaty or convention (a “Change in Tax Law”), which change or amendment becomes
effective on or after the original issuance date of the Notes (or, in certain
circumstances, such later date on which any assignee of the Company or a
successor corporation to the Company becomes such as permitted under the
Indenture), it is determined by the Company or such assignee (which terms, for
purposes of the remainder of this paragraph, include any successor thereto)
that (i) the Company or its assignee would be required to make payments of
Additional Amounts on the next succeeding date for the payment thereof and (ii)
the effect of such Change in Tax Law cannot be avoided through any reasonable
measures available to the Company, the Company may, at its option, redeem the
Notes in whole at any time at a redemption price equal to 100% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date fixed for
redemption (the “Tax Redemption Price”).

          6.     MANDATORY REDEMPTION. The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

          7.     REPURCHASE AT OPTION OF HOLDER.

          (a)     Upon the occurrence of a Change of Control, each Holder of Notes will
have the right to require the Company to repurchase all or any part (equal to
$1,000 or integral multiples thereof) of such Holder’s Notes pursuant to the
offer described below (the “Change of Control Offer”) at an offer price in cash
equal to 101% of the aggregate principal amount thereof, plus accrued and
unpaid interest thereon, if any, to the date of purchase (the “Change of
Control Payment”). Within 30 days following any Change of Control, the Company
will mail a notice to each Holder of Notes describing the transaction or
transactions that constitute the Change of Control and offering to repurchase
Notes on the date specified in such notice, which date shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed (the
“Change of Control Payment Date”), pursuant to the procedures required by the
Indenture and described in such notice.

          (b)     The Company will comply with the requirements of Rule l4e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control.

          (c)     On the Change of Control Payment Date, the Company will, to the extent
lawful, (i) accept for payment all Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent an
amount equal to the Change of Control Payment in respect of all Notes or
portions thereof so tendered and (iii) deliver or cause to be delivered to the

A-1-5

 

Trustee the Notes so accepted together with an Officers’ Certificate
stating the aggregate principal amount of Notes or portions thereof being
purchased by the Company. The Paying Agent will promptly mail to each Holder
of Notes so tendered the Change of Control Payment for such Notes, and the
Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note will
be in a principal amount of $1,000 or integral multiples thereof.

          (d)     The Indenture provides that the Company shall not, and shall not
permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless
(i) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of such Asset Sale at least equal to the fair market
value (evidenced by a resolution of the Board of Directors set forth in an
Officers’ Certificate delivered to the Trustee) of the assets of Equity
Interests issued or sold or otherwise disposed of and (ii) at least 75% of the
consideration therefor received by the Company or such Restricted Subsidiary is
in the form of cash; provided that the amount of (x) any liabilities (as shown
on the Company’s or such Restricted Subsidiary’s most recent balance sheet) of
the Company or any Restricted Subsidiary (other than contingent liabilities and
liabilities that are by their terms subordinated to the Notes or any guarantee
thereof) that are assumed by the transferee of any such assets pursuant to a
customary novation agreement or other agreement that releases or indemnifies
the Company or such Restricted Subsidiary from further liability and (y) any
securities, notes or other obligations received by the Company or any such
Restricted Subsidiary from such transferee that are immediately converted by
the Company or such Restricted Subsidiary into cash (to the extent of the cash
received) shall be deemed to be cash for purposes of this provision.

          Within 365 days after the receipt of any Net Proceeds from an Asset Sale,
the Company may apply such Net Proceeds at its option, (a) to permanently
repay, reduce or secure letters of credit in respect of Senior Debt (and to
correspondingly reduce commitments with respect thereto in the case of
revolving borrowings), and/or (b) to the acquisition of a controlling interest
in another business, the making of a capital expenditure or Permitted
Investment or the acquisition of other assets, in each case, for use in the
same or a similar line of business as the Company was engaged in on the date of
such Asset Sale or reasonable extensions thereof. Pending the final
application of any such Net Proceeds, the Company may temporarily reduce
indebtedness under the Credit Facility (or any alternative or subsequent
revolving credit agreement where borrowings thereunder constitute Senior Debt
or Debt of a Subsidiary) or otherwise invest such Net Proceeds in any manner
that is not prohibited by the Indentures. Any Net Proceeds from Asset Sales
that are not applied or invested as provided in the first sentence of this
paragraph will be deemed to constitute “Excess Proceeds.”

          (e)     When the aggregate amount of Excess Proceeds exceeds $10.0 million,
the Company will be required to make an offer (an “Asset Sale Offer”) to all
Holders of Notes and holders of any other Pari Passu Debt outstanding with
provisions requiring the Company to make an offer to purchase or redeem such
indebtedness with the proceeds from any Asset Sale as follows: (A) the Company
will make an offer to purchase from all Holders of the Notes in accordance with
the procedures set forth in the Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Notes that may be purchased out of an
amount (the “Note Amount”) equal to the product of such Excess Proceeds
multiplied by a fraction, the numerator of which is the outstanding principal
amount of the Notes, and the denominator of which is the sum of the outstanding
principal amount of the Notes and such Pari Passu Debt (subject to proration in
the event such amount is less than the aggregate Asset Sale Offered Price (as
defined herein) of all Notes tendered), and (B) to the extent required by such
Pari Passu Debt to permanently reduce the principal amount of such Pari Passu
Debt, the

A-1-6

 

Company will make an offer to purchase or otherwise repurchase or redeem
Pari Passu Debt (as “Asset Sale Pari Passu Offer”) in an amount (the “Pari
Passu Debt Amount”) equal to the excess of the Excess Proceeds over the Note
Amount; provided that in no event will the Company be required to make an Asset
Sale Pari Passu Offer in a Pari Passu Debt Amount exceeding the principal
amount of such Pari Passu Debt plus accrued and unpaid interest thereon plus
the amount of any premium required to be paid to repurchase such Pari Passu
Debt. The offer price for the Notes will be payable in cash in an amount equal
to 100% of the principal amount of the Notes, plus accrued and unpaid interest,
if any, to the date (the “Asset Sale Offer Date”) such Asset Sale Offer is
consummated (the “Asset Sale Offer Price”), in accordance with the procedures
set forth in the Indenture. To the extent that the aggregate Asset Sale
Offered Price of the Notes tendered pursuant to the Asset Sale Offer is less
than the Note Amount relating thereto or the aggregate amount of Pari Passu
Debt that is purchased in an Asset Sale Pari Passu Offer is less than the Pari
Passu Debt Amount, the Company may use any remaining Excess Proceeds for
general corporate purposes. If the aggregate principal amount of Notes and the
Pari Passu Debt surrendered by holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes to be purchased on a pro rata
basis. Upon the completion of the purchase of all the Notes tendered pursuant
to an Asset Sale Offer and the completion of an Asset Sale Pari Passu Offer,
the amount of Excess Proceeds, if any, shall be reset at zero.

          8.     NOTICE OF REDEMPTION. Notice of redemption shall be mailed at least 30
days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its registered address. So long as the Notes are
listed on the Luxembourg Stock Exchange, notices to holders of the Notes will
also be made by publication in authorized newspapers in Luxembourg. It is
expected that publication will be made in Luxembourg in the Luxembourg Wort.
Notes in denominations larger than $1,000 may be redeemed in part but only in
whole multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest shall cease to accrue on
Notes or portions thereof called for redemption.

          9.     DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000.
The transfer of Notes may be registered and Notes may be exchanged as provided
in the Indenture. The Registrar and the Trustee 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. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a
Record Date and the corresponding Interest Payment Date.

          10.     PERSONS DEEMED OWNERS. The registered Holder of a Note on the
Registrar’s books may be treated as its owner for all purposes under the
Indenture.

          11.     AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the
Indenture and the Notes may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the then
outstanding Notes, and any existing default or compliance with any provision of
the Indenture or the Note may be waived with the consent of the Holders of a
majority in aggregate principal amount of the then outstanding Notes. Without
the consent of any Holder of a Note, the Indenture or the Notes may be amended
or supplemented among other things, to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place
of certificated Notes, to provide for the assumption of the Company’s
obligations

A-1-7

 

to Holders of the Notes in case of a merger or consolidation or sale of
all or substantially all of the Company’s assets in accordance with the terms
of the Indenture, to make any change that would provide any additional rights
or benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any such Holder, or to comply with the
requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the TIA.

          12.     DEFAULTS AND REMEDIES.

          (a)     Events of Default under the Indenture include: (i) default for 30
days in the payment when due of interest on the Notes (whether or not
prohibited by the subordination provisions of the Indenture), (ii) default in
payment when due of the principal of, or premium, if any, on the Notes (whether
or not prohibited by the subordination provisions of the Indenture), (iii)
failure by the Company for 30 days after notice from either the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes to
comply with the provisions in Sections 4.07, 4.09, 4.10, 4.14 or 5.01 of the
Indenture; (iv) failure by the Company for 60 days after notice from either the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes to comply with any of its other agreements in the Indenture
or the Notes; (v) default under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Debt for money borrowed by the Company or any of its Restricted Subsidiaries
(or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries) whether such Debtor guarantee now exists, or is created after the
date of the Indenture, which default (a) is caused by a failure to pay
principal of or premium, if any, or interest on such Debt prior to the
expiration of the grace period provided in such Debt on the date of such
default (a “Payment Default”) or (b) results in the acceleration of such Debt
prior to its express maturity and, in each case, the principal amount of any
such Debt, together with the principal amount of any other such Debt the
maturity of which has been so accelerated, aggregated $40.0 million or more;
(vi) failure by the Company or any of its Restricted Subsidiaries to pay final
judgments aggregating in excess of $40.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days; and (vii) certain events of
bankruptcy or insolvency with respect to the Company or any of its Restricted
Significant Subsidiaries.

          (b)     If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, with respect to the Company, any Restricted
Subsidiary, any Significant Subsidiary or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary, all
outstanding Notes will become due and payable without further action or notice.

          (c)     The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders, waive
any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of
interest on, or the principal of the Notes.

          (d)     The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of all the Holders,
waive any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of
interest on, or the principal of, the Notes.

A-1-8

 

           (e)     The Company shall be required to deliver to the Trustee annually a
statement regarding compliance with the Indenture, and the Company shall be
required upon becoming aware of any Default or Event of Default to deliver to
the Trustee a statement specifying such Default or Event of Default. The
Trustee may withhold from Holders notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of
principal of, premium, if any, or interest on, the Notes) if it determines that
withholding notice is in their interest.

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

          14.     NO RECOURSE AGAINST OTHERS. No director, officer, employee,
incorporator or stockholder of the Company, as such, will have any liability
for any obligations of the Company with respect to the Notes or the Indenture,
or for any claim based on, or in respect or by reason of, such obligations or
their creation. Each Holder of Notes by accepting a Note will waive and
release any and all such liability. Such waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to
waive liabilities under federal securities laws and it is the view of the
Commission that such a waiver is against public policy.

          15.     AUTHENTICATION. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

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

          17.     ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED
DEFINITIVE NOTES. In addition to the rights provided to Holders under the
Indenture, Holders shall have all the rights set forth in the Registration
Rights Agreement.

          18.     CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is
made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

          The Company shall furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

	 
	Flextronics International Ltd.
	2090 Fortune Drive
	San Jose, CA 95l31
	Attention: Investor Relations

A-1-9

 

ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note 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 Note
on the books of the Company. The agent may substitute another to act for him.

	 	 	 
	Date:	
Your Signature:	 
	 	 	

	 	
(Sign exactly as your name appears on the face of this Note)
	 	 	 
	 	
Tax Identification No.:
	 	 	 
	 	 	 
	 	
SIGNATURE GUARANTEE:
	 	 	 
	 	

	 	 	 
	 	
Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements
of the Registrar, which requirements include
membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may
be determined by the Registrar in addition to,
or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as
amended.

A-1-10

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by the Company pursuant
to Section 4.10 or 4.14 of the Indenture, check the box below:

	 	 	 	 
	o	Section 4.10	o 	
Section 4.14

          If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.14 of the Indenture, state the
amount you elect to have purchased:
$

	 	 	 
	Date:	
Your Signature:
	 	 	

	 	
(Sign exactly as your name appears on the face of this Note)
	 	 	 
	 	
Tax Identification No.:
	 	 	 
	 	 	 
	 	
SIGNATURE GUARANTEE:
	 	 	 
	 	

	 
	 	
Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements
of the Registrar, which requirements include
membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may
be determined by the Registrar in addition to,
or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as
amended.

A-1-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

          The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another
Global Note or Definitive Note for an interest in this Global Note, have been
made:

	 	 	 	 	 	 	Principal Amount of
	 	 	Amount of decrease in	 	Amount of increase in	 	this Global Note
	 	 	Principal Amount of	 	Principal Amount of	 	following such
	Date of Exchange	 	this Global Note	 	this Global Note	 	decrease (or increase)
	
	 	
	 	
	 	

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

A-1-12

 

EXHIBIT A-2

(Face of Regulation S Temporary Global Note)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY
BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE
MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, PRIOR TO THE EXPIRATION OF A
DISTRIBUTION COMPLIANCE PERIOD (DEFINED AS 40 DAYS AFTER THE ISSUE DATE WITH
RESPECT TO THE NOTES), MAY NOT BE: OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (A)(1) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE
903 OR RULE 904 OF REGULATION S, AS DEFINED IN THE SECURITIES ACT OR (2) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144, AND (B) IN ACCORDANCE WITH
ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES.

THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS
SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON.

A-2-1

 

[This Note is issued with original issue discount for purposes of Section 1271
et seq. of the Internal Revenue Code. For each $1,000 of principal amount of
this Security, the issue price is $[     ] and the amount of original issue
discount is $[     ]. The issue date of this Security is May 8, 2003 and the
yield to maturity is 6 1/2%.]

A-2-2

 

FLEXTRONICS INTERNATIONAL LTD.

6 1/2% Senior Subordinated Notes due 2013

	 	 	 
	No.	 	
CUSIP No.
	$[       ]	 	 

          FLEXTRONICS INTERNATIONAL LTD., a Singapore company, promises to pay to
[CHASE NOMINEE COMPANY]or registered assigns, the principal sum of [          ]
($          ) Dollars on May 8, 2013.

          Interest Payment Dates: May 15 and November 15.

          Record Dates: May 1 and November 1.

A-2-3

 

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

Dated: May 8, 2003

	 	 	 	 	 
	 	 	FLEXTRONICS INTERNATIONAL LTD.
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name: Michael E. Marks
	 	 	 	 	Title:   Chief Executive Officer
	 
	 	 	
By:
	 	 
	 	 	 	 	

	 	 	 	 	Name: Robert R.B. Dykes
	 	 	 	 	Title:   President, Systems Group

This is one of the Notes referred

to in the within-mentioned Indenture:

Dated: May 8, 2003

J.P. MORGAN TRUST COMPANY, NATIONAL

     ASSOCIATION, as Trustee

	 	 	 
	By:	 	 
	 	 	

	 	 	
Authorized Signatory

A-2-4

 

(Back of Regulation S Temporary Global Note)

6 1/2% Senior Subordinated Notes due 2013

     Capitalized terms used herein shall have the meanings assigned to them in
the Indenture referred to below unless otherwise indicated.

          1.     PRINCIPAL AND INTEREST. Flextronics International Ltd., a Singapore
company (the “Company”), promises to pay interest on the principal amount of
this Note at 6 1/2% per annum from May 8, 2003 until maturity and shall pay the
Liquidated Damages payable in accordance with the provisions of the following
paragraph. The Company shall pay interest and Liquidated Damages semi-annually
on May 15 and November 15 of each year, or if any such day is not a Business
Day, on the next succeeding Business Day (each an “Interest Payment Date”).
Interest on the Notes shall accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from the date of issuance;
provided that if there is no existing Default or Event of Default relating to
the payment of interest, and if this Note is authenticated between a Record
Date referred to on the face hereof and the next succeeding Interest Payment
Date, interest shall accrue from such next succeeding Interest Payment Date;
provided, further, that the first Interest Payment Date shall be November 15.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at a rate that is 1.0% per annum in excess of the
rate then in effect; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest
and Liquidated Damages (without regard to any applicable grace periods) from
time to time on demand at the same rate to the extent lawful. Interest shall
be computed on the basis of a 360-day year of twelve 30-day months.

          The Holder of this Note is entitled to the benefits of the Registration
Rights Agreement. If (a) the Company fails to file any of the Registration
Statements required by the Registration Rights Agreement on or before the date
specified for such filing, (b) any of such Registration Statements is not
declared effective by the Commission on or prior to the date specified for such
effectiveness, (c) the Company fails to consummate the Registered Exchange
Offer within 180 days of the Issue Date with respect to the Exchange Offer
Registration Statement, or (d) any Registration Statement required by the
Registration Rights Agreement is declared effective but thereafter ceases to be
effective in connection with its intended purpose (each such event referred to
in clauses (a) through (d) above a “Registration Default”), then the Company
shall pay to each holder of Transfer Restricted Notes (as defined in the
Registration Rights Agreement) affected thereby liquidated damages (“Liquidated
Damages”) which shall accrue and be payable semi-annually on the Notes and the
Exchange Notes (in addition to the stated interest on the Notes and the
Exchange Notes) from and including the date such Registration Default occurs
to, but excluding the date on which the applicable Registration Statement is
filed or is declared effective, the Registered Exchange Offer is consummated,
or the applicable Registration Statement is again declared effective or made
usable. During the time that Liquidated Damages is accruing continuously, the
rate of such Liquidated Damages shall be 0.25% per annum during the first
90-day period and shall increase by 0.25% per annum for each subsequent 90-day
period, but in no event shall such rate exceed 1.00% per annum in the aggregate
regardless of the number of Registration Defaults. If, after the cure of all
Registration Defaults then in effect, there is a subsequent Registration
Default, the rate of Liquidated Damages for such subsequent Registration
Default shall initially be 0.50%, regardless of the Liquidated Damages rate in
effect with respect to any prior Registration Default at the time of the cure
of such Registration Default.

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          2.     METHOD OF PAYMENT. The Company shall pay interest on the Notes (except
defaulted interest) and Liquidated Damages to the Persons who are registered
Holders at the close of business on the May 1 or November 1 next preceding the
Interest Payment Date, even if such Notes are canceled after such Record Date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest. The Notes shall be
payable as to principal, premium and Liquidated Damages, if any, and interest
at the office or agency of the Company maintained for such purpose within or
outside of the City and State of New York, or, at the option of the Company,
payment of interest and Liquidated Damages may be made by check mailed to the
Holders at their addresses set forth in the register of Holders kept by the
Registrar, and provided that payment by wire transfer of immediately available
funds shall be required with respect to principal of and interest, premium and
Liquidated Damages on, all Global Notes and all other Notes the Holders of
which shall have provided wire transfer instructions to the Company or the
Paying Agent. Such payment shall be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts.

          3.     PAYING AGENT AND REGISTRAR. Initially, J.P. Morgan Trust Company,
National Association, the Trustee under the Indenture, shall act as Paying
Agent and Registrar. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company or any of its Restricted
Subsidiaries may act in any such capacity.

          4.     INDENTURE. The Company issued the Notes under an Indenture dated as of
May 8, 2003 (“Indenture”) between the Company and the Trustee. The terms of
the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.
Code Sections 77aaa-77bbbb) (the “TIA”). The Notes are subject to all such
terms, and Holders are referred to the Indenture and the TIA for a statement of
such terms. To the extent any provision of this Note conflicts with the
express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling. The Notes are obligations of the Company limited to
$400 million in aggregate principal amount.

          5.     OPTIONAL REDEMPTION.

          (a)     Prior to May 15, 2008. The Notes shall not be redeemable at the
Company’s option prior to May 15, 2008. Thereafter, the Notes shall be subject
to redemption at any time at the option of the Company, in whole or in part,
upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below, plus accrued
and unpaid interest thereon to the applicable redemption date (subject to the
right of Holders as of a relevant Record Date to receive interest due on the
relevant Interest Payment Date), if redeemed during the twelve-month period
beginning on May 15 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	
	 	

	2008	 	 	
103.250	%
	2009	 	 	
102.167	%
	2010	 	 	
101.083	%
	2011 and thereafter	 	 	
100.000	%

          (b)     Ordinary Shares Offering. In addition, at any time, or from time to
time, prior to May 15, 2006, the Company may, at its option, use the net cash
proceeds of one or more public or private offering of Ordinary Shares of the
Company (an “Equity Sale”) to redeem, on a pro rata basis, an aggregate of $140
million in aggregate principal amount of Notes at a redemption price of 106.5%

A-2-6

 

of the principal amount thereof plus accrued and unpaid interest
thereon, if any, to the date of redemption; provided that at least $260 million
aggregate principal amount of Notes remains outstanding immediately after any
such redemption; provided, further, that such redemption occurs within 90 days
of the date of the closing of such Equity Sale.

          (c)     Any redemption pursuant to this Section 5 shall be made pursuant to
the provisions of Sections 3.01 through 3.06 of the Indenture.

          (d)     Taxation. If, as the result of any change in or any amendment to the
laws, including any applicable double taxation treaty or convention, of
Singapore (or any Other Jurisdiction, as defined in Section 4.21 of the
Indenture), or of any political subdivision or taxing authority thereof,
affecting taxation, or any change in the application or interpretation or
official position regarding the application of such laws, double taxation
treaty or convention (a “Change in Tax Law”), which change or amendment becomes
effective on or after the original issuance date of the Notes (or, in certain
circumstances, such later date on which any assignee of the Company or a
successor corporation to the Company becomes such as permitted under the
Indenture), it is determined by the Company or such assignee (which terms, for
purposes of the remainder of this paragraph, include any successor thereto)
that (i) the Company or its assignee would be required to make payments of
Additional Amounts on the next succeeding date for the payment thereof and (ii)
the effect of such Change in Tax Law cannot be avoided through any reasonable
measures available to the Company, the Company may, at its option, redeem the
Notes in whole at any time at a redemption price equal to 100% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date fixed for
redemption (the “Tax Redemption Price”).

          6.      MANDATORY REDEMPTION. The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

          7.      REPURCHASE AT OPTION OF HOLDER.

          (a)     Upon the occurrence of a Change of Control, each Holder of Notes will
have the right to require the Company to repurchase all or any part (equal to
$1,000 or integral multiples thereof) of such Holder’s Notes pursuant to the
offer described below (the “Change of Control Offer”) at an offer price in cash
equal to 101% of the aggregate principal amount thereof, plus accrued and
unpaid interest thereon, if any, to the date of purchase (the “Change of
Control Payment”). Within 30 days following any Change of Control, the Company
will mail a notice to each Holder of Notes describing the transaction or
transactions that constitute the Change of Control and offering to repurchase
Notes on the date specified in such notice, which date shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed (the
“Change of Control Payment Date”), pursuant to the procedures required by the
Indenture and described in such notice.

          (b)     The Company will comply with the requirements of Rule l4e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control.

          (c)     On the Change of Control Payment Date, the Company will, to the extent
lawful, (i) accept for payment all Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent an
amount equal to the Change of Control Payment in respect of all Notes or
portions thereof so tendered and (iii) deliver or cause to be delivered to the

A-2-7

 

Trustee the Notes so accepted together with an Officers’ Certificate
stating the aggregate principal amount of Notes or portions thereof being
purchased by the Company. The Paying Agent will promptly mail to each Holder
of Notes so tendered the Change of Control Payment for such Notes, and the
Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note will
be in a principal amount of $1,000 or integral multiples thereof.

          (d)     The Indenture provides that the Company shall not, and shall not
permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless
(i) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of such Asset Sale at least equal to the fair market
value (evidenced by a resolution of the Board of Directors set forth in an
Officers’ Certificate delivered to the Trustee) of the assets of Equity
Interests issued or sold or otherwise disposed of and (ii) at least 75% of the
consideration therefor received by the Company or such Restricted Subsidiary is
in the form of cash; provided that the amount of (x) any liabilities (as shown
on the Company’s or such Restricted Subsidiary’s most recent balance sheet) of
the Company or any Restricted Subsidiary (other than contingent liabilities and
liabilities that are by their terms subordinated to the Notes or any guarantee
thereof) that are assumed by the transferee of any such assets pursuant to a
customary novation agreement or other agreement that releases or indemnifies
the Company or such Restricted Subsidiary from further liability and (y) any
securities, notes or other obligations received by the Company or any such
Restricted Subsidiary from such transferee that are immediately converted by
the Company or such Restricted Subsidiary into cash (to the extent of the cash
received) shall be deemed to be cash for purposes of this provision.

          Within 365 days after the receipt of any Net Proceeds from an Asset Sale,
the Company may apply such Net Proceeds at its option, (a) to permanently
repay, reduce or secure letters of credit in respect of Senior Debt (and to
correspondingly reduce commitments with respect thereto in the case of
revolving borrowings), and/or (b) to the acquisition of a controlling interest
in another business, the making of a capital expenditure or Permitted
Investment or the acquisition of other assets, in each case, for use in the
same or a similar line of business as the Company was engaged in on the date of
such Asset Sale or reasonable extensions thereof. Pending the final
application of any such Net Proceeds, the Company may temporarily reduce
indebtedness under the Credit Facility (or any alternative or subsequent
revolving credit agreement where borrowings thereunder constitute Senior Debt
or Debt of a Subsidiary) or otherwise invest such Net Proceeds in any manner
that is not prohibited by the Indentures. Any Net Proceeds from Asset Sales
that are not applied or invested as provided in the first sentence of this
paragraph will be deemed to constitute “Excess Proceeds.”

          (e)     When the aggregate amount of Excess Proceeds exceeds $10.0 million,
the Company will be required to make an offer (an “Asset Sale Offer”) to all
Holders of Notes and holders of any other Pari Passu Debt outstanding with
provisions requiring the Company to make an offer to purchase or redeem such
indebtedness with the proceeds from any Asset Sale as follows: (A) the Company
will make an offer to purchase from all Holders of the Notes in accordance with
the procedures set forth in the Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Notes that may be purchased out of an
amount (the “Note Amount”) equal to the product of such Excess Proceeds
multiplied by a fraction, the numerator of which is the outstanding principal
amount of the Notes, and the denominator of which is the sum of the outstanding
principal amount of the Notes and such Pari Passu Debt (subject to proration in
the event such amount is less than the aggregate Asset Sale Offered Price (as
defined herein) of all Notes tendered), and (B) to the extent required by such
Pari Passu Debt to permanently reduce the principal amount of such Pari Passu
Debt, the

A-2-8

 

Company will make an offer to purchase or otherwise repurchase or redeem
Pari Passu Debt (as “Asset Sale Pari Passu Offer”) in an amount (the “Pari
Passu Debt Amount”) equal to the excess of the Excess Proceeds over the Note
Amount; provided that in no event will the Company be required to make an Asset
Sale Pari Passu Offer in a Pari Passu Debt Amount exceeding the principal
amount of such Pari Passu Debt plus accrued and unpaid interest thereon plus
the amount of any premium required to be paid to repurchase such Pari Passu
Debt. The offer price for the Notes will be payable in cash in an amount equal
to 100% of the principal amount of the Notes, plus accrued and unpaid interest,
if any, to the date (the “Asset Sale Offer Date”) such Asset Sale Offer is
consummated (the “Asset Sale Offer Price”), in accordance with the procedures
set forth in the Indenture. To the extent that the aggregate Asset Sale
Offered Price of the Notes tendered pursuant to the Asset Sale Offer is less
than the Note Amount relating thereto or the aggregate amount of Pari Passu
Debt that is purchased in an Asset Sale Pari Passu Offer is less than the Pari
Passu Debt Amount, the Company may use any remaining Excess Proceeds for
general corporate purposes. If the aggregate principal amount of Notes and the
Pari Passu Debt surrendered by holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes to be purchased on a pro rata
basis. Upon the completion of the purchase of all the Notes tendered pursuant
to an Asset Sale Offer and the completion of an Asset Sale Pari Passu Offer,
the amount of Excess Proceeds, if any, shall be reset at zero.

          8.     NOTICE OF REDEMPTION. Notice of redemption shall be mailed at least 30
days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its registered address. So long as the Notes are
listed on the Luxembourg Stock Exchange, notices to holders of the Notes will
also be made by publication in authorized newspapers in Luxembourg. It is
expected that publication will be made in Luxembourg in the Luxembourg Wort.
Notes in denominations larger than $1,000 may be redeemed in part but only in
whole multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest shall cease to accrue on
Notes or portions thereof called for redemption.

          9.      DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000.
The transfer of Notes may be registered and Notes may be exchanged as provided
in the Indenture. The Registrar and the Trustee 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. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a
Record Date and the corresponding Interest Payment Date.

          10.      PERSONS DEEMED OWNERS. The registered Holder of a Note on the
Registrar’s books may be treated as its owner for all purposes under the
Indenture.

          11.      AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the
Indenture and the Notes may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the then
outstanding Notes, and any existing default or compliance with any provision of
the Indenture or the Note may be waived with the consent of the Holders of a
majority in aggregate principal amount of the then outstanding Notes. Without
the consent of any Holder of a Note, the Indenture or the Notes may be amended
or supplemented among other things, to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place
of certificated Notes, to provide for the assumption of the Company’s
obligations

A-2-9

 

to Holders of the Notes in case of a merger or consolidation or sale of
all or substantially all of the Company’s assets in accordance with the terms
of the Indenture, to make any change that would provide any additional rights
or benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any such Holder, or to comply with the
requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the TIA.

          12.      DEFAULTS AND REMEDIES.

          (a)     Events of Default under the Indenture include: (i) default for 30
days in the payment when due of interest on the Notes (whether or not
prohibited by the subordination provisions of the Indenture), (ii) default in
payment when due of the principal of, or premium, if any, on the Notes (whether
or not prohibited by the subordination provisions of the Indenture), (iii)
failure by the Company for 30 days after notice from either the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes to
comply with the provisions in Sections 4.07, 4.09, 4.10, 4.14 or 5.01 of the
Indenture; (iv) failure by the Company for 60 days after notice from either the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes to comply with any of its other agreements in the Indenture
or the Notes; (v) default under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Debt for money borrowed by the Company or any of its Restricted Subsidiaries
(or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries) whether such Debtor guarantee now exists, or is created after the
date of the Indenture, which default (a) is caused by a failure to pay
principal of or premium, if any, or interest on such Debt prior to the
expiration of the grace period provided in such Debt on the date of such
default (a “Payment Default”) or (b) results in the acceleration of such Debt
prior to its express maturity and, in each case, the principal amount of any
such Debt, together with the principal amount of any other such Debt the
maturity of which has been so accelerated, aggregated $40.0 million or more;
(vi) failure by the Company or any of its Restricted Subsidiaries to pay final
judgments aggregating in excess of $40.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days; and (vii) certain events of
bankruptcy or insolvency with respect to the Company or any of its Restricted
Significant Subsidiaries.

          (b)     If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, with respect to the Company, any Restricted
Subsidiary, any Significant Subsidiary or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary, all
outstanding Notes will become due and payable without further action or notice.

          (c)     The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders, waive
any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of
interest on, or the principal of the Notes.

          (d)     The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of all the Holders,
waive any existing Default or Event of Default and its consequences under the
Indenture except a continuing Default or Event of Default in the payment of
interest on, or the principal of, the Notes.

A-2-10

 

          (e)     The Company shall be required to deliver to the Trustee annually a
statement regarding compliance with the Indenture, and the Company shall be
required upon becoming aware of any Default or Event of Default to deliver to
the Trustee a statement specifying such Default or Event of Default. The
Trustee may withhold from Holders notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of
principal of, premium, if any, or interest on, the Notes) if it determines that
withholding notice is in their interest.

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

          14.      NO RECOURSE AGAINST OTHERS. No director, officer, employee,
incorporator or stockholder of the Company, as such, will have any liability
for any obligations of the Company with respect to the Notes or the Indenture,
or for any claim based on, or in respect or by reason of, such obligations or
their creation. Each Holder of Notes by accepting a Note will waive and
release any and all such liability. Such waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to
waive liabilities under federal securities laws and it is the view of the
Commission that such a waiver is against public policy.

          15.      AUTHENTICATION. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

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

          17.      ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED
DEFINITIVE NOTES. In addition to the rights provided to Holders under the
Indenture, Holders shall have all the rights set forth in the Registration
Rights Agreement.

          18.      CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is
made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

          The Company shall furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

          Flextronics International Ltd.

          2090 Fortune Drive

          San Jose, CA 95l31

          Attention: Investor Relations

A-2-11

 

ASSIGNMENT FORM

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note 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 Note on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 	 
	Date:	 	

	 	Your Signature:	 
	 	 	 	 	 	

	 	 	 	 	(Sign exactly as your name appears on the face of this Note)
	 	 	 	 	 
	 	 	 	 	Tax Identification No.: 
	 	 	 	 	 
	 	 	 	 	SIGNATURE GUARANTEE:
	 
	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements
of the Registrar, which requirements include
membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may
be determined by the Registrar in addition to,
or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as
amended.

A-2-12

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Note purchased by the Company pursuant
to Section 4.10 or 4.14 of the Indenture, check the box below:

	 	 	 
	o Section 4.10	 	
o Section 4.14

          If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.14 of the Indenture, state the
amount you elect to have purchased: $

	 	 	 	 	 	 
	Date:	 	

	 	Your Signature: 	 
	 	 	 	 	 	

	 	 	 	 	(Sign exactly as your name appears on the face of this Note)
	 	 	 	 	 
	 	 	 	 	Tax Identification No.:
	 	 	 	 	 
	 	 	 	 	SIGNATURE GUARANTEE:
	 
	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	
Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements
of the Registrar, which requirements include
membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may
be determined by the Registrar in addition to,
or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as
amended.

A-2-13

 

SCHEDULE OF EXCHANGES OF REGULATION S
TEMPORARY GLOBAL NOTE

          The
following exchanges of a part of this Regulation S Temporary Global Note for an interest in
another Global Note, or of other Restricted Global Notes for an
interest in this Regulation S Temporary Global Note, have been
made:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	Principal Amount of
	 	 	 	Amount of decrease in	 	Amount of increase in	 	this Global Note
	 	 	 	Principal Amount of	 	Principal Amount of	 	following such
	Date of Exchange	 	 	this Global Note	 	this Global Note	 	decrease (or increase)
	
	 	 	
	 	
	 	

A-2-14

 

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Flextronics International Ltd.

2090 Fortune Drive

San Jose, CA 95131

Attention: Investor Relations

J.P. Morgan Trust Company,

National Association, as Trustee

[                               ]

[                               ]

Attention: Corporate Trust Department

          Re: Flextronics International Ltd. 6 1/2% Senior Subordinated Notes due 2013

               Reference is hereby made to the Indenture, dated as of May 8, 2003 (the
“Indenture”), between Flextronics International Ltd., as issuer (the
“Company”), and J.P. Morgan Trust Company, National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

          
                    (the “Transferor”) owns and proposes to transfer the
Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $           in such Note[s] or interests (the “Transfer”), to
               (the “Transferee”), as further specified in Annex A hereto. In
connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

	(i)	o	Check if Transferee will take delivery of a beneficial
interest in the 144A Global Note or a Definitive Note
Pursuant to Rule 144A. The Transfer is being effected
pursuant to and in accordance with Rule 144A under the
United States Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, the Transferor hereby
further certifies that the beneficial interest or Definitive
Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the
beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such
Person exercises sole investment discretion, and such Person
and each such account is a “qualified institutional buyer”
within the meaning of Rule 144A in a transaction meeting the
requirements of Rule 144A and such Transfer is in compliance
with any applicable blue sky securities laws of any state of
the United States. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the 144A Global Note
and/or the Definitive Note and in this Indenture and the
Securities Act.
	 
	(ii)	o	Check if Transferee will take delivery of a beneficial
interest in the Temporary Regulation S Global Note, the
Regulation S Global Note or a Definitive Note pursuant to
Regulation S. The Transfer is being effected pursuant to and
in accordance with Rule 903 or Rule 904 under the Securities
Act and, accordingly, the Transferor hereby further
certifies that (i)

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	 	 	the Transfer is not being made to a Person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States
or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in contravention
of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the
Securities Act, (iii) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act and (iv) if the proposed
transfer is being made prior to the expiration of the Restricted Period, the
transfer is not being made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of this Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on
the Regulation S Global Note, the Temporary Regulation S Global Note and/or the
Definitive Note and in this Indenture and the Securities Act.
	 
	(iii)	o	Check and complete if Transferee will take
delivery of a beneficial interest in a
Definitive Note pursuant to any provision of
the Securities Act other than Rule 144A or
Regulation S. The Transfer is being effected
in compliance with the transfer restrictions
applicable to beneficial interests in
Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in
accordance with the Securities Act and any
applicable blue sky securities laws of any
state of the United States, and accordingly
the Transferor hereby further certifies that
(check one):

		
	 	     1.        o        such Transfer is being effected pursuant to and in accordance
with Rule 144 under the Securities Act;

or

		
	 	     2.        o        such
Transfer is being effected to the Company or a Subsidiary thereof;

or

		
	 	     3.        o        such
Transfer is being effected pursuant to an effective
registration statement under the Securities Act and in compliance with
the prospectus delivery requirements of the Securities Act.

	(iv)	o 	Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note.

		
	 	     1.        o        Check
if Transfer is pursuant to Rule 144. (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the
Securities Act and in compliance with the transfer restrictions contained
in this Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of
this Indenture, the transferred beneficial interest or Definitive Note
will no

B-2

 

		
	 	longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in this Indenture.
	 
	 	     2.        o        Check
if Transfer is Pursuant to Regulation S. (i) The
Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 under the Securities Act and in compliance with the transfer
restrictions contained in this Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of this Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.
	 
	 	     3.        o        Check
if Transfer is Pursuant to other Exemption. (i) The
Transfer is being effected pursuant to and in compliance with an
exemption from the registration requirements of the Securities Act other
than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky
securities laws of any State of the United States and (ii) the
restrictions on transfer contained in this Indenture and the Private
Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the
Indenture.

               This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

	 	 	 	 	 
	 	 	

    (Insert Name of Transferor)
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:

Dated:

B-3

 

ANNEX A TO CERTIFICATE OF TRANSFER

	a.	 	The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

	 	i.	o	a beneficial interest in the:
	 

	 	(i)	o	144A Global Note (CUSIP    ), or
	 
	 	(ii)	o	Regulation S Global Note (CUSIP    ) or
	 

	 	ii.	o	a Restricted Definitive Note.

	b.	 	After the Transfer the Transferee will hold:

[CHECK ONE]

	 	i.	o	a beneficial interest in the:

	 	(i)	o	144A Global Note (CUSIP    ), or
	 
	 	(ii)	o	Regulation S Global Note (CUSIP    ); or
	 
	 	(iii)	o	Unrestricted Global Note (CUSIP    ); or

	 	ii.	o	a Restricted Definitive Note; or
	 
	 	iii.	o	an Unrestricted Definitive Note,
	 
	 	 	      in accordance with the terms of the Indenture.

B-4

 

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Flextronics International Ltd.

2090 Fortune Drive

San Jose, CA 95131

Attention: Investor Relations

J.P. Morgan Trust Company,

National Association, as Trustee

101 California Street, Suite 2725

San Francisco, CA 94111

Attention: Corporate Trust Department

Re: Flextronics International Ltd. 6 1/2% Senior Subordinated Notes due 2013
(CUSIP No.      )

          Reference is hereby made to the Indenture, dated as of May 8, 2003 (the
“Indenture”), between Flextronics International Ltd., as issuer (the “Company”)
and J.P. Morgan Trust Company,
National Association, as trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

                    (the “Owner”) owns and proposes to exchange the Note(s) or
interest in such Note(s) specified herein, in the principal amount
of
$       
in such Note(s) or interests (the “Exchange”). In connection with the
Exchange, the Owner hereby certifies that:

	a.	 	Exchange of Restricted Definitive Notes or Beneficial Interests in a
Restricted Global Note for Unrestricted Definitive Notes or Beneficial
Interests in an Unrestricted Global Note

		
	 	     i.        o        Check
if Exchange is from beneficial interest in a Restricted
Global Note to beneficial interest in an Unrestricted Global Note. In
connection with the Exchange of the owner’s beneficial interest in a
Restricted Global Note for a beneficial interest in an Unrestricted
Global Note in an equal principal amount, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with
the transfer restrictions applicable to the Global Notes and pursuant to
and in accordance with the United States Securities Act of 1933, as
amended (the “Securities Act”), (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv)
the beneficial interest in an Unrestricted Global Note is being acquired
in compliance with any applicable blue sky securities laws of any state
of the United States.
	 
	 	     ii.        o        Check
if Exchange is from beneficial interest in a Restricted
Global Note to Unrestricted Definitive Note. In connection with the
Exchange of the Owner’s beneficial interest in a Restricted Global Note
for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the De-

C-1

 

		
	 	     finitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.
	 
	 	     iii.        o        Check
if Exchange is from Restricted Definitive Note to
beneficial interest in an Unrestricted Global Note. In connection with
the Owner’s Exchange of a Restricted Definitive Note for a beneficial
interest in an Unrestricted Global Note, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with
the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the beneficial interest is being acquired in
compliance with any applicable blue sky securities laws of any state of
the United States.
	 
	 	     iv.        o        Check
if Exchange is from Restricted Definitive Note to
Unrestricted Definitive Note. In connection with the Owner’s Exchange of
a Restricted Definitive Note for an Unrestricted Definitive Note, the
Owner hereby certifies (i) the Unrestricted Definitive Note is being
acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable
to Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted
Definitive Note is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

	b.	 	Exchange of Restricted Definitive Notes or Beneficial Interests in
Restricted Global Notes for Restricted Definitive Notes or Beneficial
Interests in Restricted Global Notes

		
	 	     i.        o        Check
if Exchange is from beneficial interest in a Restricted
Global Note to Restricted Definitive Note. In connection with the
Exchange of the Owner’s beneficial interest in a Restricted Global Note
for a Restricted Definitive Note with an equal principal amount, the
Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer. Upon consummation
of the proposed Exchange in accordance with the terms of the Indenture,
the Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Definitive Note and in this Indenture and the
Securities Act.
	 
	 	     ii.        o        Check
if Exchange is from Restricted Definitive Note to
beneficial interest in a Restricted Global Note. In connection with the
Exchange of the Owner’s Restricted Definitive Note for a beneficial
interest in the [CHECK ONE] ß 144A Global Note, ß Regulation S Global
Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, and in compliance
with any applicable blue sky securities laws of any state of the United
States. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the beneficial interest issued will be
subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the relevant Restricted Global Note and in
this Indenture and the Securities Act.

C-2

 

          This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

	 	 	 	 	 
	 	 	

    (Insert Name of Transferor)
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:

Dated:

C-3

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