Document:

Exhibit 4.3

 

GUARANTY AGREEMENT

 

dated as of June 14, 2011

 

by and among

 

GLOBALSTAR, INC.,

Certain Subsidiaries of GLOBALSTAR, INC.

as Subsidiary Guarantors,

 

in favor of

 

U.S. BANK, NATIONAL ASSOCIATION,

as Trustee

	
  

 

  

  

  

TABLE OF CONTENTS

 

	  	  	
Page

	 	 	 
	
ARTICLE I DEFINED TERMS

	
3

	
SECTION 1.1

	
Definitions

	
3

	
SECTION 1.2

	
Other Definitional Provisions

	
4

	  	  	  
	
ARTICLE II GUARANTY

	
5

	
SECTION 2.1

	
Guaranty

	
5

	
SECTION 2.2

	
Bankruptcy Limitations on Subsidiary Guarantors

	
5

	
SECTION 2.3

	
Agreements for Contribution

	
6

	
SECTION 2.4

	
Nature of Guaranty

	
7

	
SECTION 2.5

	
Waivers

	
8

	
SECTION 2.6

	
Modification of Indenture, etc

	
9

	
SECTION 2.7

	
Demand by the Trustee

	
10

	
SECTION 2.8

	
Remedies

	
10

	
SECTION 2.9

	
Benefits of Guaranty

	
10

	
SECTION 2.10

	
Termination; Reinstatement

	
10

	
SECTION 2.11

	
Payments

	
11

	  	  	  
	
ARTICLE III MISCELLANEOUS

	
11

	
SECTION 3.1

	
Notices

	
11

	
SECTION 3.2

	
Amendments, Waivers and Consents

	
11

	
SECTION 3.3

	
Governing Law; Service of Process

	
11

	
SECTION 3.4

	
No Waiver by Course of Conduct, Cumulative Remedies

	
11

	
SECTION 3.5

	
Successors and Assigns

	
12

	
SECTION 3.6

	
Titles and Captions

	
12

	
SECTION 3.7

	
Severability of Provisions

	
12

	
SECTION 3.8

	
Counterparts

	
12

	
SECTION 3.9

	
Integration

	
12

	
SECTION 3.10

	
General Release

	
12

	
SECTION 3.11

	
Release of Subsidiary Guarantors

	
12

	
SECTION 3.12

	
All Powers Coupled With Interest

	
13

	
SECTION 3.13

	
Additional Guarantors.

	
13

	  	  	  
	
ARTICLE IV  SUBORDINATION OF GUARANTEED OBLIGATIOINS

	
13

	  	  
	
SUBORDINATION OF GUARANTEED OBLIGATIONS

	
13

	
SECTION 4.1

	
Guaranty Subordinated to Senior Debt

	
13

	
SECTION 4.2

	
No Payment on Guaranteed Obligations in Certain Circumstances..

	
13

	
SECTION 4.3

	
Payment over of Proceeds upon Dissolution, Etc.

	
14

	
SECTION 4.4

	
Payment Over of Other Proceeds.

	
15

	
SECTION 4.5

	
Subrogation.

	
16

	
SECTION 4.6

	
Guaranty Obligations Unconditional

	
17

	
SECTION 4.7

	
Notice to Trustee..

	
17

	
SECTION 4.8

	
Reliance on Judicial Order or Certificate of Liquidating Agent

	
17

	
SECTION 4.9

	
Subordination Rights Not Impaired by Acts or Omissions of the

	
 

	
Company, the Subsidiary Guarantors or Holders of Senior Debt

	18
	
SECTION 4.10

	
Holders Authorize Trustee to Effectuate

	
18

	
SECTION 4.11

	
Not to Prevent Events of Default

	
18

	
SECTION 4.12

	
No Waiver of Subordination Provisions

	
18

	
SECTION 4.13

	
Limitations on Enforcement

	
19

	
SECTION 4.14

	
Non-competition.

	
19

	
SECTION 4.15

	
Filing of Claims Upon an Insolvency Event.

	
20

 

  

2

  

This GUARANTY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Guaranty”), dated as of June 14, 2011, is made by GLOBALSTAR, INC. (the “Company”), a Delaware corporation, certain Subsidiaries of the Company (such Subsidiaries, collectively, the “Subsidiary Guarantors,” and each, a “Subsidiary Guarantor”), in favor of U.S. BANK, NATIONAL ASSOCIATION, as Trustee (in such capacity, the “Trustee”) for the ratable benefit of the Holders of the Securities.

 

STATEMENT OF PURPOSE

 

WHEREAS, pursuant to the terms of the Indenture dated April 15, 2008 between the Company and the Trustee (the “Original Indenture”) and the Third Supplemental Indenture between the Company and the Trustee dated June 14, 2011 (the “Third Supplemental Indenture” and, together with the Original Indenture, the “Indenture”), the Company will issue the Securities upon the terms and subject to the conditions set forth therein.

 

WHEREAS, the Board of Directors or Board of Managers, as the case may be, of each Subsidiary Guarantor is satisfied that such Subsidiary Guarantor is entering into this Guaranty for the purposes of its business and that doing so benefits each respective Subsidiary Guarantor.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, each Subsidiary Guarantor hereby agrees with the Trustee, for the ratable benefit of the Holders, as follows:

 

ARTICLE I

 

DEFINED TERMS

 

SECTION 1.1            Definitions.  The following terms when used in this Guaranty shall have the meanings assigned to them below:

 

“Affiliate” means, with respect to any Person, any other Person (other than a Subsidiary of the Company) which directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person or any of its Subsidiaries.  As used in this definition, the term “control” means (a) the power to vote fifty percent (50%) or more of the securities or other equity interests of a Person having ordinary voting power, or (b) the possession, directly or indirectly, of any other power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

“Applicable Insolvency Laws” means all applicable laws governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C.  Sections 544, 547, 548 and 550 and other “avoidance” provisions of Title 11 of the United States Code, as amended or supplemented).

 

“Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

 

  

3

  

“Company” has the meaning set forth in the Preamble of this Guaranty.

 

“Contribution Shares” has the meaning set forth in the Section 2.3.

 

“Excess Payment” has the meaning set forth in the Section 2.3.

 

“Final Discharge Date” means the date on which all the Senior Debt has been unconditionally and irrevocably paid and discharged in full and none of the COFACE Finance Parties is under any obligation (whether actual or contingent) to make advances or provide other financial accommodation to the Company under the COFACE Finance Documents.

 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Guaranteed Obligations” has the meaning set forth in Section 2.1.

 

“Guaranty” has the meaning set forth in the Preamble of this Guaranty.

 

“Guaranty Discharge Date” means the date on which all the Guaranteed Obligations have been unconditionally, irrevocably and indefeasibly paid and discharged in full.

 

“Indenture” has the meaning set forth in the Statement of Purpose of this Guaranty.

 

“Original Indenture” has the meaning set forth in the Statement of Purpose of this Guaranty.

 

“Portable Shares” has the meaning set forth in the Section 2.3.

 

“Senior Debt” means all debt, other than any Subordinated Indebtedness, of the Company, whether currently outstanding or hereafter issued, owed to any COFACE Finance Party under or in connection with the COFACE Finance Documents, including any amendment, modification or supplement thereto or refinancing thereof; provided that, other than the COFACE Facility Obligations, any such debt (including as may be amended, modified or supplemented as permitted hereunder) that matures after the Stated Maturity shall not be Senior Debt.

 

“Subsidiary Guarantor” has the meaning set forth in the Preamble of this Guaranty.

 

“Third Supplemental Indenture” has the meaning set forth in the Statement of Purpose of this Guaranty.

 

“Trustee” has the meaning set forth in the Preamble of this Guaranty.

 

  

4

  

SECTION 1.2            Other Definitional Provisions.  Capitalized terms used and not otherwise defined in this Guaranty, including the preambles and recitals hereof, shall have the meanings ascribed to them in the Indenture.  In the event of a conflict between capitalized terms defined herein and in the Indenture, the Indenture shall control.  The words “hereof,” “herein,” “hereto” and “hereunder” and words of similar import when used in this Guaranty shall refer to this Guaranty as a whole and not to any particular provision of this Guaranty, and Section references are to this Guaranty unless otherwise specified.  The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

ARTICLE II

 

GUARANTY

 

SECTION 2.1           Guaranty.  Each Subsidiary Guarantor hereby, jointly and severally with the other Subsidiary Guarantors, irrevocably and unconditionally guarantees to the Trustee for the ratable benefit of the Holders, and their respective permitted successors, endorsees, transferees and assigns, irrespective of the validity and enforceability of the Indenture, the Securities or the Obligations of the Company hereunder, the prompt payment in full and performance of all obligations of the Company, whether primary or secondary (whether by way of endorsement or otherwise), whether now existing or hereafter arising, whether or not from time to time reduced or extinguished (except by payment thereof) or hereafter increased or incurred, whether enforceable or unenforceable as against the Company, whether or not discharged, stayed or otherwise affected by any Applicable Insolvency Law or proceeding thereunder, whether created directly with the Trustee or any Holder or acquired by the Trustee or any Holder through assignment or endorsement or otherwise pursuant to the Indenture or the Notes, whether matured or unmatured, whether joint or several, as and when the same become due and payable (whether at maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such instruments evidencing any such obligations, including all renewals, extensions or modifications thereof (all of the foregoing being hereafter collectively referred to as the “Guaranteed Obligations”).

 

SECTION 2.2           Bankruptcy Limitations on Subsidiary Guarantors.  Notwithstanding anything to the contrary contained in Section 2.1, it is the intention of each Subsidiary Guarantor that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or any similar proceeding with respect to any Subsidiary Guarantor or its assets, the amount of such Subsidiary Guarantor’s obligations with respect to the Guaranteed Obligations shall be equal to, but not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of Applicable Insolvency Laws after giving effect to Section 2.3(a).  To that end, but only in the event and to the extent that after giving effect to Section 2.3(a) such Subsidiary Guarantor’s obligations with respect to the Guaranteed Obligations or any payment made pursuant to such Guaranteed Obligations would, but for the operation of the first sentence of this Section 2.2, be subject to avoidance or recovery in any such proceeding under Applicable Insolvency Laws after giving effect to Section 2.3(a), the amount of such Subsidiary Guarantor’s obligations with respect to the Guaranteed Obligations shall be limited to the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render such Subsidiary Guarantor’s obligations with respect to the Guaranteed Obligations unenforceable or avoidable or otherwise subject to recovery under Applicable Insolvency Laws.  To the extent any payment actually made pursuant to the Guaranteed Obligations exceeds the limitation of the first sentence of this Section 2.2 and is otherwise subject to avoidance and recovery in any such proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in all events be limited to the amount by which such actual payment exceeds such limitation and the Guaranteed Obligations as limited by the first sentence of this Section 2.2 shall in all events remain in full force and effect and be fully enforceable against such Subsidiary Guarantor.  The first sentence of this Section 2.2 is intended solely to preserve the rights of the Trustee hereunder against such Subsidiary Guarantor in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither such Subsidiary Guarantor, the Company, any other Subsidiary Guarantor nor any other Person shall have any right or claim under such sentence that would not otherwise be available under Applicable Insolvency Laws in such proceeding.

 

  

5

  

SECTION 2.3            Agreements for Contribution.

 

(a)           The Subsidiary Guarantors hereby agree among themselves that, if any Subsidiary Guarantor shall make an Excess Payment (as defined below), such Subsidiary Guarantor shall have a right of contribution from each other Subsidiary Guarantor in an amount equal to such other Subsidiary Guarantor’s Contribution Share (as defined below) of such Excess Payment.  The payment obligations of any Subsidiary Guarantor under this Section 2.3(a) shall be subordinate and subject in right of payment to the Guaranteed Obligations until the Guaranty Discharge Date and shall be subordinate and subject in right of payment to the Senior Debt until the Final Discharge Date, and none of the Subsidiary Guarantors shall exercise any right or remedy under this Section 2.3(a) against any other Subsidiary Guarantor until the later to occur of the Guaranty Discharge Date and the Final Discharge Date.  For purposes of this Section 2.3(a):

 

(i)           “Excess Payment” shall mean the amount paid by any Subsidiary Guarantor in excess of its Ratable Share (as defined below) of any Guaranteed Obligations;

 

(ii)           “Ratable Share” shall mean, for any Subsidiary Guarantor in respect of any payment of Guaranteed Obligations, the ratio (expressed as a percentage) as of the date of such payment of Guaranteed Obligations of (A) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Subsidiary Guarantor (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Subsidiary Guarantor hereunder) to (B) the amount by which the aggregate present fair salable value of all assets and other properties of all of the Subsidiary Guarantors exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Subsidiary Guarantors hereunder) of the Subsidiary Guarantors; provided, however, that, for purposes of calculating the Ratable Shares of the Subsidiary Guarantors in respect of any payment of Guaranteed Obligations, any Subsidiary Guarantor that became a Subsidiary Guarantor subsequent to the date of any such payment shall be deemed to have been a Subsidiary Guarantor on the date of such payment and the financial information for such Subsidiary Guarantor as of the date such Subsidiary Guarantor became a Subsidiary Guarantor shall be utilized for such Subsidiary Guarantor in connection with such payment; and

 

  

6

  

(iii)           “Contribution Share” shall mean, for any Subsidiary Guarantor in respect of any Excess Payment made by any other Subsidiary Guarantor, the ratio (expressed as a percentage) as of the date of such Excess Payment of (A) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Subsidiary Guarantor (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Subsidiary Guarantor hereunder) to (B) the amount by which the aggregate present fair salable value of all assets and other properties of the Subsidiary Guarantors other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Subsidiary Guarantors) of the Subsidiary Guarantors other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Subsidiary Guarantors in respect of any Excess Payment, any Subsidiary Guarantor that became a Subsidiary Guarantor subsequent to the date of any such Excess Payment shall be deemed to have been a Subsidiary Guarantor on the date of such Excess Payment and the financial information for such Subsidiary Guarantor as of the date such Subsidiary Guarantor became a Subsidiary Guarantor shall be utilized for such Subsidiary Guarantor in connection with such Excess Payment.

 

Each of the Subsidiary Guarantors recognizes and acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution.  This Section 2.3 shall not be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Subsidiary Guarantor may have under Applicable Law against the Company in respect of any payment of Guaranteed Obligations.

 

(b)           No Subrogation.     Notwithstanding any payment or payments by any of the Subsidiary Guarantors hereunder, or any set-off or application of funds of any of the Subsidiary Guarantors by the Trustee or any Holder, or the receipt of any amounts by the Trustee or any Holder with respect to any of the Guaranteed Obligations, none of the Subsidiary Guarantors shall be entitled to be subrogated to any of the rights of the Trustee or any Holder against the Company or the other Subsidiary Guarantors nor shall any of the Subsidiary Guarantors seek any reimbursement from the Company or any of the other Subsidiary Guarantors in respect of payments made by such Subsidiary Guarantor in connection with the Guaranteed Obligations, until the Guaranty Discharge Date.  If any amount shall be paid to any Subsidiary Guarantor on account of such subrogation rights at any time prior to the Guaranty Discharge Date, such amount shall be held by such Subsidiary Guarantor in trust for the Trustee, segregated from other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by such Subsidiary Guarantor, be turned over to the Trustee in the exact form received by such Subsidiary Guarantor (duly endorsed by such Subsidiary Guarantor to the Trustee, if required) to be applied against the Guaranteed Obligations, whether matured or unmatured, in such order as set forth in the Indenture.

SECTION 2.4            Nature of Guaranty.

 

(a)           Each Subsidiary Guarantor agrees that this Guaranty is a continuing, unconditional guaranty of payment and performance and not of collection, and that its obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and unaffected by:

 

  

7

  

(i)           the genuineness, validity, regularity, enforceability or any future amendment of, or change in, the Indenture or any other agreement, document or instrument to which the Company or any Subsidiary Guarantor or any of their respective Subsidiaries or Affiliates is or may become a party;

 

(ii)          the absence of any action to enforce this Guaranty, the Indenture, or the waiver or consent by the Trustee or any Holder with respect to any of the provisions of this Guaranty or the Indenture;

 

(iii)         any structural change in, restructuring of or other similar change of the Company, any Subsidiary Guarantor or any of their respective Subsidiaries; or

 

(iv)         any other action or circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor;

 

it being agreed by each Subsidiary Guarantor that, subject to the first sentence of Section 2.2, its obligations under this Guaranty shall not be discharged except as under the terms of Section 2.10 and Section 3.10 of this Guaranty.

 

(b)           Each Subsidiary Guarantor hereby represents, warrants and agrees that the Guaranteed Obligations and any other obligations hereunder are not, and agrees that its obligations under this Guaranty shall not be, subject to any counterclaims, offsets or defenses of any kind (other than the defense of payment) against the Trustee, the Holders or the Company whether now existing or which may arise in the future.

 

(c)           Each Subsidiary Guarantor hereby agrees and acknowledges that the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Guaranty, and all dealings between the Company and any of the Subsidiary Guarantors, on the one hand, and the Trustee and any Holder, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Guaranty.

 

SECTION 2.5            Waivers.  To the extent permitted by law, each Subsidiary Guarantor expressly waives the benefit of all provisions of Applicable Law which are or might be in conflict with this Guaranty and all of the following rights and defenses (and agrees not to take advantage of or assert any such right or defense):

 

(a)           any rights it may now or in the future have under any statute, or at law or in equity, or otherwise, to compel the Trustee or any Holder to proceed in respect of the Guaranteed Obligations against the Company or any other Person or against any security for or other guaranty of the payment and performance of the Guaranteed Obligations before proceeding against, or as a condition to proceeding against, such Subsidiary Guarantor;

 

(b)           any defense based upon the failure of the Trustee or any Holder to commence an action in respect of the Guaranteed Obligations against the Company, such Subsidiary Guarantor, any other guarantor or any other Person or any security for the payment and performance of the Guaranteed Obligations;

 

  

8

  

(c)           any right to insist upon, plead or in any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance by such Subsidiary Guarantor of its obligations under, or the enforcement by the Trustee or the Holders of this Guaranty;

 

(d)           any right of diligence, presentment, demand, protest and notice (except as specifically required herein or in the Indenture) of whatever kind or nature with respect to any of the Guaranteed Obligations and waives, to the extent permitted by Applicable Laws, the benefit of all provisions of law which are or might be in conflict with the terms of this Guaranty; and

 

(e)           any and all right to notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by the Trustee or any Holder upon, or acceptance of, this Guaranty.

 

Each Subsidiary Guarantor agrees that any notice or directive given at any time to the Trustee or any Holder which is inconsistent with any of the foregoing waivers shall be null and void and may be ignored by the Trustee or such Holder, and, in addition, may not be pleaded or introduced as evidence in any litigation relating to this Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this Guaranty, unless the Trustee has specifically agreed otherwise in writing.

 

SECTION 2.6           Modification of Indenture, etc.  Neither the Trustee nor any Holder shall incur any liability to any Subsidiary Guarantor as a result of any of the following, and none of the following shall impair or release this Guaranty or any of the obligations of any Subsidiary Guarantor under this Guaranty:

 

(a)           any change or extension of the manner, place or terms of payment of, or renewal or alteration of all or any portion of, the Guaranteed Obligations;

 

(b)           any action under or in respect of the Indenture in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such remedies, powers or privileges;

 

(c)           any amendment to, or modification of, in any manner whatsoever, the Indenture;

 

(d)           any extension or waiver of the time for performance by any Subsidiary Guarantor, any other guarantor, the Company, or any other Person of, or compliance with, any term, covenant or agreement on its part to be performed or observed under the Indenture, or waiver of such performance or compliance or consent to a failure of, or departure from, such performance or compliance;

 

(e)           the release of anyone who may be liable in any manner for the payment of any amounts owed by any Subsidiary Guarantor, any other guarantor or the Company to the Trustee or any Holder;

 

  

9

  

(f)           any modification or termination of the terms of the Intercreditor Agreement or any other agreement pursuant to which claims of other creditors of any Subsidiary Guarantor, any other guarantor or the Company are subordinated to the claims of the Trustee or any Holder; or

 

(g)           any application of any sums by whomever paid or however realized to any Guaranteed Obligations owing by any Subsidiary Guarantor, any other guarantor or the Company to the Trustee or any Holder in such manner as the Trustee or any such Holder shall determine in its reasonable discretion.

 

SECTION 2.7            Demand by the Trustee.  In addition to the terms set forth in this Article II and in no manner imposing any limitation on such terms, if all or any portion of the then outstanding Guaranteed Obligations are declared to be immediately due and payable, then the Subsidiary Guarantors shall, upon demand in writing therefor by the Trustee to the Subsidiary Guarantors, pay all or such portion of the outstanding Guaranteed Obligations due hereunder then declared due and payable.

 

SECTION 2.8            Remedies.  Upon the occurrence and during the continuance of any Event of Default, with the consent of the Holders, the Trustee may, or upon the request of the Holders, the Trustee shall, enforce against the Subsidiary Guarantors their obligations and liabilities hereunder and exercise such other rights and remedies as may be available to the Trustee hereunder, under the Indenture or otherwise.

 

SECTION 2.9            Benefits of Guaranty.  The provisions of this Guaranty are for the benefit of the Trustee and the Holders and their respective permitted successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between the Company, the Trustee and the Holders, the obligations of the Company under the Indenture.  In the event all or any part of the Guaranteed Obligations are transferred, endorsed or assigned by the Trustee or any Holder to any Person or Persons as permitted under the Indenture, any reference to a “Trustee” or “Holder” herein shall be deemed to refer equally to such Person or Persons.

 

SECTION 2.10          Termination; Reinstatement.

 

(a)           Subject to clause (c) below, this Guaranty shall remain in full force and effect until the Guaranty Discharge Date.

 

(b)           No payment made by the Company, any Subsidiary Guarantor, or any other Person received or collected by the Trustee or any Holder from the Company, any Subsidiary Guarantor, or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Subsidiary Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Subsidiary Guarantor in respect of the obligations of the Subsidiary Guarantors or any payment received or collected from such Subsidiary Guarantor in respect of the obligations of the Subsidiary Guarantors), remain liable for the obligations of the Subsidiary Guarantors up to the maximum liability of such Subsidiary Guarantor hereunder until the Guaranty Discharge Date.

 

  

10

  

(c)           Each Subsidiary Guarantor agrees that, if any payment made by the Company or any other Person applied to the Guaranteed Obligations is at any time annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid or is repaid in whole or in part pursuant to a good faith settlement of a pending or threatened claim, then, to the extent of such payment or repayment, each Subsidiary Guarantor’s liability hereunder shall be and remain in full force and effect, as fully as if such payment had never been made, and, if prior thereto, this Guaranty shall have been canceled or surrendered, this Guaranty shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of such Subsidiary Guarantor in respect of the amount of such payment.

 

SECTION 2.11          Payments.  Any payments by the Subsidiary Guarantors shall be made to the Trustee, to be credited and applied to the Guaranteed Obligations in accordance with Indenture, in immediately available funds to an account designated by the Trustee or at any other address that may be specified in writing from time to time by the Trustee.

 

ARTICLE III

 

MISCELLANEOUS

 

SECTION 3.1            Notices.  All notices and communications hereunder shall be given to the addresses and otherwise made in accordance with Section 10.02 of the Indenture; provided that notices and communications to the Subsidiary Guarantors shall be directed to the Subsidiary Guarantors, at the address of the Company set forth in Section 10.02 of the Indenture.

 

SECTION 3.2            Amendments, Waivers and Consents.  None of the terms, covenants, agreements or conditions of this Guaranty may be amended, supplemented or otherwise modified, nor may they be waived, nor may any consent be given, except in accordance with Article VII of the Indenture.

 

SECTION 3.3            Governing Law; Service of Process.

 

(a)           Governing Law.  This Guaranty shall be governed by, and construed in accordance with, the law of the State of New York.

 

(b)           Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 10.02 of the Indenture.  Nothing in this Guaranty will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

 

(e)           Appointment of the Company as Agent for the Subsidiary Guarantors.  Each Subsidiary Guarantor hereby irrevocably appoints and authorizes the Company to act as its agent for service of process and notices required to be delivered under this Guaranty or the Indenture, it being understood and agreed that receipt by the Company of any summons, notice or other similar item shall be deemed effective receipt by each Subsidiary Guarantor and its Subsidiaries.

 

  

11

  

SECTION 3.4            No Waiver by Course of Conduct, Cumulative Remedies.  Neither the Trustee nor any Holder shall by any act, delay, indulgence, omission or otherwise (except by a written instrument pursuant to Section 3.2) be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default.  No delay or failure to take action on the part of the Trustee or any Holder in exercising any right, power or privilege hereunder shall operate as a waiver thereof.  Nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Trustee or any Holder of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Trustee or such Holder would otherwise have on any future occasion.  The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by Applicable Law.

 

SECTION 3.5            Successors and Assigns.  The provisions of this Guaranty shall be binding upon the successors and assigns of each and shall inure to the benefit of each Subsidiary Guarantor (and shall bind all Persons who become bound as a Subsidiary Guarantor under this Guaranty) and the Trustee and their respective successors and assigns.

 

SECTION 3.6            Titles and Captions.  Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Guaranty are for convenience only, and neither limit nor amplify the provisions of this Guaranty.

 

SECTION 3.7            Severability of Provisions.  In case any provision in this Guaranty 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 3.8            Counterparts.  This Guaranty may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Guaranty or any document or instrument delivered in connection herewith by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Guaranty or such other document or instrument, as applicable.

 

SECTION 3.9            Integration.  This Guaranty, together with the Indenture, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter.  In the event of any conflict between the provisions of this Guaranty and the Indenture, the provisions of the Indenture shall control.

 

SECTION 3.10          General Release.  On the Guaranty Discharge Date, this Guaranty and all obligations (other than those expressly stated to survive such termination) of the Trustee and each Subsidiary Guarantor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party.

 

  

12

  

SECTION 3.11          Release of Subsidiary Guarantors.  If all the capital stock or other equity interests of one or more Subsidiary Guarantors is sold or otherwise disposed of (except to the Company or its Affiliates) or liquidated in compliance with the requirements of the Indenture and the Intercreditor Agreement and the proceeds of such sale, disposition or liquidation are applied as permitted or required by the terms of the Indenture and the Intercreditor Agreement, such Subsidiary Guarantor shall, upon consummation of such sale or other disposition, be released from this Guaranty automatically and without further action and this Guaranty shall, as to each such Subsidiary Guarantor, terminate, and have no further force or effect (it being understood and agreed that the sale of one or more Persons that own, directly or indirectly, all of the equity interests of any Subsidiary Guarantor shall be deemed to be a sale of such Subsidiary Guarantor for purposes of this Section 3.11).

 

SECTION 3.12          All Powers Coupled With Interest.  All powers of attorney and other authorizations granted to the Trustee and any Persons designated by the Trustee or any Holder pursuant to any provisions of this Guaranty or the Indenture shall be deemed coupled with an interest and shall be irrevocable at all times prior to the Guaranty Discharge Date or so long as the Indenture has not been terminated.

 

SECTION 3.13          Additional Guarantors.  Each Subsidiary of the Company that is required to become a party to this Guaranty pursuant to Section 3.15 of the Third Supplemental Indenture shall become a Subsidiary Guarantor for all purposes of this Guaranty upon execution and delivery by such Subsidiary of a Guarantor Assumption Agreement in the form of Annex A hereto.

 

ARTICLE IV

 

SUBORDINATION OF GUARANTEED OBLIGATIONS

 

SECTION 4.1            Guaranty Subordinated to Senior Debt.  The Company and each Subsidiary Guarantor covenants and agrees and each Holder, by its acceptance of a Security, likewise covenants and agrees that all Securities shall be issued and the Guaranty and the other obligations of the Subsidiary Guarantors hereunder shall be subject to the provisions of this Article IV; and each Person holding any Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and agrees that the payment of the principal of, interest, premium, and all other amounts payable, if any, on each and all of the Securities, and all payments in respect of this Guaranty, shall, to the extent and in the manner set forth in this Article IV, in the Indenture, in the Intercreditor Agreement and in this Guaranty be subordinated in right and time of payment to the prior indefeasible payment in full, in cash, of all existing and future Senior Debt.  Each Subsidiary Guarantor accepts and agrees that its rights arising by reason of the performance of its obligations under this Guaranty (including, but not limited to, any rights it may have to indemnity by the Company or to claim any contribution from any other Subsidiary Guarantor), shall, to the extent and in the manner set forth in this Article IV, in the Indenture and this Guaranty, be subordinated in right and time of payment to the prior indefeasible payment in full, in cash, of all existing and future Senior Debt.

 

  

13

  

SECTION 4.2            No Payment on Guaranteed Obligations in Certain Circumstances. No Subsidiary Guarantor shall cause or permit to be made any direct or indirect payment by or on behalf of the Company or any amounts payable on or in relation to this Guaranty, whether pursuant to the terms of the Securities or this Guaranty, upon acceleration of the Securities or otherwise unless (a) such payment is a Permitted Payment or (b) the Final Discharge Date has occurred.  Neither the Company nor any Subsidiary Guarantor shall make or cause or permit to be made any direct or indirect payment by or on behalf of the Company of the principal of, interest, premium and all other amounts payable, if any, on each and all of the Securities and no Subsidiary Guarantor shall cause or permit to be made any direct or indirect payment by or on behalf of the Company of any amounts payable on or in relation to this Guaranty, whether pursuant to the terms of the Securities or this Guaranty, upon acceleration of the Securities or otherwise unless such payment is a Permitted Payment.

 

SECTION 4.3            Payment over of Proceeds upon Dissolution, Etc.

 

(a)           Upon any payment or distribution of assets or securities of the Company or any  Subsidiary Guarantor of any kind or character, whether in cash, property or securities, in connection with any dissolution or winding up or total or partial liquidation or reorganization of the Company or such Subsidiary Guarantor, whether voluntary or involuntary, or in bankruptcy, insolvency, receivership or other proceedings or other marshalling of assets for the benefit of creditors, all amounts due or to become due upon all Senior Debt (including all interest accruing subsequent to the filing of a petition in bankruptcy at the rate provided for in the documentation with respect thereto, whether or not such interest is an allowed claim under applicable law) shall first be indefeasibly paid in full, in cash, before the Holders, the Trustee on their behalf or any Subsidiary Guarantor shall be entitled to receive any payment by (or on behalf of) the Company or any Subsidiary Guarantor on account of the Securities or on or in relation to this Guaranty, or any payment to acquire any of the Securities for cash, property or securities, or any distribution with respect to the Securities or this Guaranty of any cash, property or securities.  Before any payment may be made by, or on behalf of, the Company or any Subsidiary Guarantor on any Security or on or in relation to this Guaranty to the Holders, the Trustee on their behalf or any Subsidiary Guarantor, in connection with any such dissolution, winding up, liquidation or reorganization, any payment or distribution of assets or securities for the Company or any Subsidiary Guarantor of any kind or character, whether in cash, property or securities, to which the Holders, the Trustee on their behalf or any Subsidiary Guarantor would be entitled, but for the provisions of this Article IV, shall be made by the Company, a Subsidiary Guarantor or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person making such payment or distribution or by the Holders, the Trustee or any Subsidiary Guarantor if received by them or it, directly to the COFACE Agent for the benefit of the holders of Senior Debt, to the extent necessary to pay all such Senior Debt in full, in cash, after giving effect to any concurrent payment, distribution or provision therefor to or for the holders of such Senior Debt.

 

(b)           To the extent any payment of Senior Debt (whether by or on behalf of the Company or any Subsidiary Guarantor, 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 or other similar Person from the holders of the Senior Debt, 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. To the extent the obligation to repay any Senior Debt is declared to be fraudulent, invalid, or otherwise set aside under any bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then the obligation so declared fraudulent, invalid or otherwise set aside (and all other amounts that would come due with respect thereto had such obligation not been so affected) shall be deemed to be reinstated and outstanding as Senior Debt for all purposes hereof as if such declaration, invalidity or setting aside had not occurred.

 

  

14

  

(c)           In the event that, notwithstanding the provision in clause (a) above prohibiting such payment or distribution, any payment or distribution of assets or securities of the Company or any Subsidiary Guarantor of any kind or character, whether in cash, property or securities, shall be received by the Trustee, any Holder or any Subsidiary Guarantor at a time when such payment or distribution is prohibited by clause (a) above and before all obligations in respect of Senior Debt are indefeasibly paid in full, in cash, such payment or distribution shall be received and held in trust for the benefit of, and shall be paid over or delivered to, the COFACE Agent for the benefit of the holders of Senior Debt, for application to the payment of all such Senior Debt remaining unpaid, in cash, after giving effect to any concurrent payment, distribution or provision therefor to or for the holders of such Senior Debt.

 

(d)           For purposes of this Section 4.03, the words “cash, property or securities” shall not be deemed to include (so long as the effect of this clause is not to cause the Securities, or any rights of the Holders, the Trustee and the Subsidiary Guarantors in respect of this Guaranty to be treated in any case or proceeding or similar event described in this Section 4.03 as part of the same class of claims as the Senior Debt or any class of claims pari passu with, or senior to the Senior Debt) for any payment or distribution, securities of any Subsidiary Guarantor or any other corporation provided for by a plan of reorganization or readjustment that are subordinated, at least to the extent that the Securities and any rights of the Holders, the Trustee and the Subsidiary Guarantors in respect to this Guaranty are subordinated, to the payment of all Senior Debt then outstanding; provided that (i) if a new corporation results from such reorganization or readjustment, such corporation assumes the Senior Debt and (ii) the rights of the holders of the Senior Debt are not, without the consent of the COFACE Agent, altered by such reorganization or readjustment. The consolidation of the Company or any Subsidiary Guarantor with, or the merger of the Company or any Subsidiary Guarantor with or into, another corporation or the liquidation or dissolution of the Company or any Subsidiary Guarantor following the sale, conveyance, transfer, lease or other disposition of all or substantially all of its property and assets to another corporation upon the terms and conditions provided in Section 8.1 of the Original Indenture or Section 3.11 of this Guaranty shall not be deemed a dissolution, winding up, liquidation or reorganization for the purposes of this Section 4.03 if such other corporation shall, as a part of such consolidation, merger, sale, conveyance, transfer, lease or other disposition, comply (to the extent required) with the conditions stated in the Section 8.1 of the Original Indenture and Section 3.11 of this Guaranty, as applicable.

 

SECTION 4.4            Payment Over of Other Proceeds.

 

(a)           If at any time prior to the Final Discharge Date, the Trustee, any Holder or any Subsidiary Guarantor receives or recovers:

 

(i)           any payment or distribution of, or on account of or in relation to, the Securities or this Guaranty which is not a Permitted Payment, except the distribution of shares of Common Stock upon conversion of the Securities in accordance with the terms of the Indenture;

 

  

15

  

(ii)           any amount by way of set-off in respect of the Securities or this Guaranty; or

 

(iii)           any distribution in cash or in kind made as a result of the occurrence of an Insolvency Event;

 

the Trustee,  such Holder or that Subsidiary Guarantor (as the case may be) shall hold that amount in trust for the COFACE Security Agent and inform the COFACE Security Agent and as soon as reasonably practicable (and in any event, within five (5) Business Days) pay that amount or an amount equal to that receipt or recovery to the COFACE Security Agent, to be held on trust by the COFACE Security Agent for application in accordance with the terms of the COFACE Finance Documents.

 

(b)           If the Company or any Subsidiary Guarantor receives or recovers any sum which, under the terms of any of the COFACE Finance Documents, should have been paid to the COFACE Security Agent, the Company or such Subsidiary Guarantor shall hold that amount in trust for the COFACE Security Agent and promptly pay that amount to the COFACE Security Agent, or, if this trust cannot be given effect to, the Company or such Subsidiary Guarantor will promptly pay an amount equal to that receipt or recovery to the COFACE Security Agent for application in accordance with the terms of the COFACE Finance Documents.

 

SECTION 4.5            Subrogation.

 

(a)           Upon the Final Discharge Date, the Holders, the Trustee and the Subsidiary Guarantors 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 or any Subsidiary Guarantor made on such Senior Debt until the principal of, premium, if any, and interest on the Securities and any obligations of the Company in respect of this Guaranty shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders of the Senior Debt of any cash, property or securities to which the Holders, the Trustee on their behalf or any Subsidiary Guarantor would be entitled except for the provisions of this Article IV, and no payment pursuant to the provisions of this Article IV to the holders of Senior Debt by the Holders or the Trustee on their behalf shall, as between the Company, the Subsidiary Guarantors, their respective creditors other than holders of Senior Debt, the Holders, the Trustee on their behalf and the Subsidiary Guarantors be deemed to be a payment by the Company or such Subsidiary Guarantor to or on account of the Senior Debt.  It is understood that the provisions of this Article IV are intended solely for the purpose of defining the relative rights of the Holders, the Trustee on their behalf and Subsidiary Guarantors on the one hand, and the holders of the Senior Debt, on the other hand.

 

(b)           If any payment or distribution to which the Holders, the Trustee on their behalf or any Subsidiary Guarantor would otherwise have been entitled but for the provisions of this Article Two shall have been applied, pursuant to the provisions of this Article Two, to the payment of all amounts payable under Senior Debt, then, and in such case, the Holders, the Trustee on their behalf or any Subsidiary Guarantor (as the case may be) shall be entitled to receive from the holders of such Senior Debt any payments or distributions received by such holders of Senior Debt in excess of the amount required to make indefeasible payment in full, in cash, of such Senior Debt of such holders.

 

  

16

  

SECTION 4.6            Guaranty Obligations Unconditional.  Nothing contained in this Article IV or elsewhere in this Guaranty is intended to or shall impair, as among the Company, the Subsidiary Guarantors and the Holders, (i) the obligation of the Company, which is absolute and unconditional, to pay to the Holders the principal of, premium, if any, and interest on the Securities as and when the same shall become due and payable in accordance with their terms, or (ii) the obligations of the Company to the Subsidiary Guarantors under this Guaranty, or (iii) the obligations of the Subsidiary Guarantors to the Holders under this Guaranty, or is intended to or shall affect the relative rights of the Holders and creditors of the Company and the Subsidiary Guarantors other than the holders of the Senior Debt, nor shall anything herein or therein prevent the Holders, the Trustee on their behalf or the Subsidiary Guarantors from exercising all remedies otherwise permitted by applicable law upon default under the Indenture, this Guaranty, subject to the rights of the holders of the Senior Debt pursuant to Section 4.13 hereof, and otherwise pursuant to this Article IV.

 

SECTION 4.7            Notice to Trustee. Each Subsidiary Guarantor shall give prompt written notice to the Trustee of any fact known to such Subsidiary Guarantor that would prohibit the making of any payment to or by the Trustee in respect of the Securities or this Guaranty pursuant to the provisions of this Article IV. The Trustee shall not be charged with the knowledge of the existence of any default or event of default with respect to any Senior Debt or of any other facts that would prohibit the making of any payment to or by the Trustee unless and until the Trustee shall have received notice in writing at its Corporate Trust Office to that effect signed by an Officer of such Subsidiary Guarantor, or by a holder of Senior Debt or trustee or agent thereof; and prior to the receipt of any such written notice, the Trustee shall, subject to Article VI of the Original Indenture, be entitled to assume that no such facts exist; provided that, if the Trustee shall not have received the notice provided for in this Section 4.7 at least two Business Days prior to the date upon which, by the terms of the Indenture, any monies shall become payable for any purpose, then, notwithstanding anything herein to the contrary, the Trustee shall have full power and authority to receive any monies from such Subsidiary Guarantor and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary that may be received by it on or after such prior date except for an acceleration of the Guaranteed Obligations prior to such application. Nothing contained in this Section 4.7 shall limit the right of the holders of Senior Debt to recover payments as contemplated by this Article IV. The foregoing shall not apply if the Paying Agent is the Company. The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person representing himself or itself to be a holder of any Senior Debt (or a trustee on behalf of, or other representative of, such holder) to establish that such notice has been given by a holder of such Senior Debt or a trustee or representative on behalf of any such holder.

 

  

17

  

SECTION 4.8            Reliance on Judicial Order or Certificate of Liquidating Agent.  Upon any payment or distribution of assets or securities referred to in this Article IV, the Trustee, the Holders and the Subsidiary Guarantors 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 similar Person making such payment or distribution, delivered to the Trustee, to the Holders or to the Subsidiary Guarantors (as the case may be) 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 and the Subsidiary Guarantors, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article IV.

 

SECTION 4.9            Subordination Rights Not Impaired by Acts or Omissions of the Company, the Subsidiary Guarantors or Holders of Senior Debt.  No right of any present or future holders of any Senior Debt to enforce subordination as provided in this Article IV will at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or any Subsidiary Guarantor or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company or any Subsidiary Guarantor with the terms of the Indenture, the Intercreditor Agreement or this Guaranty, regardless of any knowledge thereof that any such holder may have or otherwise be charged with. The provisions of this Article IV are intended to be for the benefit of, and shall be enforceable directly by, the holders of Senior Debt.

 

SECTION 4.10          Holders Authorize Trustee to Effectuate.   Each Holder by its acceptance of any Securities authorizes and expressly directs the Trustee on its behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this Article IV, the Indenture, this Guaranty, and the Intercreditor Agreement 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 or any Subsidiary Guarantor (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 property and assets of the Company or any Subsidiary Guarantor, the filing of a claim for the unpaid balance of the Securities or the Guaranteed Obligations in the form required in those proceedings.

 

SECTION 4.11         Not to Prevent Events of Default.  The failure to make a payment on account of principal of, premium, if any, or interest on the Securities or to make any payment in respect of this Guaranty by reason of any provision of this Article IV will not be construed as preventing the occurrence of an Event of Default.

 

SECTION 4.12          No Waiver of Subordination Provisions.  The holders of Senior Debt may, at any time and from time to time, without the consent of or notice to the Trustee, the Holders or the Subsidiary Guarantors without incurring responsibility to the Holders or the Subsidiary Guarantors and without impairing or releasing the subordination provided in this Article IV or the obligations hereunder of the Holders or the Subsidiary Guarantors to the holders of Senior Debt, do any one or more of the following: (a) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, Senior Debt or any instrument evidencing the same or any agreement under which Senior Debt is outstanding or secured; (b) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt; (c) release any Person liable in any manner for the collection of Senior Debt; and (d) exercise or refrain from exercising any rights against the Company, any Subsidiary Guarantor and any other Person.

 

  

18

  

SECTION 4.13          Limitations on Enforcement.

 

Until the Final Discharge Date, no Guarantor shall, and notwithstanding anything to the contrary contained in Article 5 of the Third Supplemental Indenture or Article 6 of the Original Indenture, until the Final Discharge Date no Holder shall or shall cause the Trustee to, and each Holder hereby instructs and directs the Trustee not to:

 

(a)           Seek direct or indirect recovery, payment or repayment of, or permit direct or indirect payment or repayment of any of the Securities or other amounts payable by the Company or the Subsidiary Guarantors in respect thereof, provided that payment of a Permitted Payment is not prohibited by this Section 4.13;

 

(b)           accelerate, demand, sue for (or participate in any suit for) or accept from the Company or any Subsidiary Guarantor any payment in respect of the Securities or this Guaranty or take any other action to enforce its rights or to exercise any remedies in respect of the Securities this Guaranty (whether upon the occurrence or during the occurrence of an Event of Default or otherwise) unless requested to do so by the COFACE Agent;

 

(c)           assign, transfer or otherwise dispose of, or make demand for or accept, receive or permit to subsist any lien in respect of, all or any Securities or any interests therein or any rights which it may have against the Company or any Subsidiary Guarantor in respect of all or any part of the Securities or pursuant to this Guaranty to or in favor of any person;

 

(d)           file or join in any petition to commence any winding-up proceedings or an order seeking reorganization or liquidation of the Company or any Subsidiary Guarantor, or take any other action for the winding-up, dissolution or administration of the Company or any Subsidiary Guarantor or take, or agree to, any other action which could or might lead to the bankruptcy, insolvency or similar process of the Company or any Subsidiary Guarantor unless requested to do so by the COFACE Agent;

 

(e)           claim, rank or prove as a creditor of the Company or any Subsidiary Guarantor in competition with any COFACE Finance Party in connection with the obligations of the Company and the Subsidiary Guarantors under the Securities or this Guaranty; and/or

 

(f)           otherwise exercise or pursue any remedy for the recovery of any Securities or in respect of any rights arising in connection with such Securities or under this Guaranty.

 

SECTION 4.14          Non-competition.

 

Until the Final Discharge Date, neither the Company nor any Subsidiary Guarantor nor the Trustee on behalf of any Holder nor any Holder will by virtue of any payment or performance by it under this Guaranty:

 

	
  

	
(a)

	
be subrogated to any rights, security or moneys held, received or receivable by any Finance Party (or the COFACE Agent or the COFACE Security Agent or any trustee or agent on their behalf) or be entitled to any right of contribution or indemnity;

 

  

19

  

	
  

	
(b)

	
claim, rank, prove or vote as a creditor of the Company or any other Subsidiary Guarantor or its estate in competition with any Finance Party (or the COFACE Agent or the COFACE Security Agent or any  trustee or agent on their behalf);

 

	
  

	
(c)

	
receive, claim or have the benefit of any payment, distribution or security from or on account of the Company or any Subsidiary Guarantor or other person (but without prejudice to any right to the benefit of any Permitted Payments); or

 

	
  

	
(d)

	
initiate, prosecute, or participate in any claim, action or other proceeding challenging the enforceability, validity, perfection, or priority of the Senior Debt or any liens securing the Senior Debt.

 

SECTION 4.15          Filing of Claims Upon an Insolvency Event.

 

After the occurrence of an Insolvency Event, each Holder and each Subsidiary Guarantor irrevocably authorizes, empowers and appoints the COFACE Security Agent to take any of the following actions, in accordance with the terms of the Indenture and this Guaranty (provided that the COFACE Security Agent shall have no obligation to take any such actions):

 

	
  

	
(a)

	
accelerate repayment of any Securities or otherwise declare any Securities prematurely due and payable or payable on demand;

 

	
  

	
(b)

	
enforce, sue or prove for any claim for repayment of any Securities, payment on or in relation to this Guaranty or payment by execution or otherwise or institute any creditor’s process whether before or after judgment, or any equivalent or like process in any jurisdiction;

 

	
  

	
(c)

	
in respect of any Securities or this Guaranty, take, or permit to be taken, any action or step, or petition, apply or vote for, initiate or support any step (including the appointment of any liquidator, receiver, administrator or similar officer), to commence or continue any proceedings against the Company or any Subsidiary Guarantor or in relation to the bankruptcy, insolvency, winding-up, liquidation, receivership, administration, reorganization, dissolution or similar proceedings of the Company or any suspension of payments or moratorium of any indebtedness of the Company, or any analogous procedure or step in any jurisdiction;

 

	
  

	
(d)

	
commence or join any legal or arbitration action or proceedings against the Company or any Subsidiary Guarantor to recover in respect of any Securities or this Guaranty;

 

	
  

	
(e)

	
make any demand against the Company or any Subsidiary Guarantor in relation to any guaranty, indemnity or other assurance against loss in respect of the Securities or exercise any right to require the Company to acquire the Securities (including exercising any put or call option against the Company for the redemption or purchase of the Securities);

 

	
  

	
(f)

	
exercise any right of set-off against the Company or any Subsidiary Guarantor in respect of the Securities or this Guaranty;

 

  

20

  

	
  

	
(g)

	
enter into any composition, assignment or arrangement with the Company or any Subsidiary Guarantor in order to effect or protect its rights under the Indenture, this Guaranty or any COFACE Finance Document;

 

	
  

	
(h)

	
collect and receive all distributions on, or on account of, any or all of the Securities or this Guaranty; or

 

	
  

	
(i)

	
otherwise exercise or pursue any remedy and do all other things the COFACE Security Agent considers reasonably necessary for the recovery of any Securities or in respect of any rights arising in connection with such Securities or this Guaranty.

 

[SIGNATURE PAGES FOLLOW]

  

21

  

IN WITNESS WHEREOF, the Company and each of the Subsidiary Guarantors has executed and delivered this Guaranty under seal by its duly authorized officers, all as of the day and year first above written.

 

	
Globalstar, Inc.

	  	
GSSI, LLC

	  	  	  	  	  
	
By:

	
/s/ Peter J. Dalton

	  	
By:

	
/s/ Anthony J. Navarra

	
Name:

	
Peter J. Dalton

	  	
Name:

	
Anthony J. Navarra

	
Title:

	
Assistant Vice President

	  	
Title:

	
President

	  	  	  	  	  
	
Globalstar C, LLC

	  	
Globalstar USA, LLC

	 	 	 
	
By:

	
/s/ Anthony J. Navarra

	  	
By:

	
/s/ Anthony J. Navarra

	
Name:

	
Anthony J. Navarra

	  	
Name:

	
Anthony J. Navarra

	
Title:

	
President

	  	
Title:

	
President

	  	  	  	  	  
	
Globalstar Leasing LLC

	  	
Spot LLC

	  
	 	 	 	 
	
By:

	
/s/ Anthony J. Navarra

	  	
By:

	
/s/ Peter J. Dalton

	
Name:

	
Anthony J. Navarra

	  	
Name:

	
Peter J. Dalton

	
Title:

	
President

	  	
Title:

	
President

	  	  	  	  	  
	
ATSS Canada, Inc.

	  	
Globalstar Brazil Holdings, L.P.

	 	 	 
	
By:

	
/s/ Anthony J. Navarra

	  	
By:

	
/s/ Dirk Wild

	
Name:

	
Anthony J. Navarra

	  	
Name:

	
Dirk Wild

	
Title:

	
President

	  	
Title:

	
Treasurer

	  	  	  	  	  
	
GCL Licensee LLC

	  	
GUSA Licensee LLC

	 	 	 
	
By:

	
/s/ Anthony J. Navarra

	  	
By:

	
/s/ Anthony J. Navarra

	
Name:

	
Anthony J. Navarra

	  	
Name:

	
Anthony J. Navarra

	
Title:

	
President

	  	
Title:

	
President

	  	  	  	  	  
	
Globalstar Licensee LLC

	  	
Globalstar Security Services, LLC

	 	 	 
	
By:

	
/s/ Anthony J. Navarra

	  	
By:

	
/s/ Anthony J. Navarra

	
Name:

	
Anthony J. Navarra

	  	
Name:

	
Anthony J. Navarra

	
Title:

	
President

	  	
Title:

	
President

 

[Signature Pages Continue]

 

[Guaranty Agreement – Globalstar, Inc.]

  

 

  

	  	
U.S. BANK, NATIONAL ASSOCIATION, as

Trustee

	  	  
	  	
By: /s/ Dan Boyers

	  	
Name:  Dan Boyers

	  	
Title:  Assistant Vice President

[Guaranty Agreement – Globalstar, Inc.]

  

 

  

ANNEX A

GUARANTOR ASSUMPTION AGREEMENT, dated as of ________________, 20[  ] made by __________________________, a ______________ __________(the “Additional Guarantor”), in favor of U.S. Bank, National Association, as Trustee (the “Trustee”) for the ratable benefit of the Holders of the Securities issued under the Indenture referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in such Indenture.

WITNESSETH:

                  WHEREAS, Globalstar, Inc., a Delaware corporation (the “Company”), has entered into an Indenture dated April 15, 2008 between the Company and the Trustee (the “Original Indenture”) and the Third Supplemental Indenture between the Company and the Trustee dated June 14_, 2011 (the “Third Supplemental Indenture” and, together with the Original Indenture, the “Indenture”);

                  WHEREAS, in connection with Indenture, the Company and certain of its Subsidiaries (other than the Additional Guarantor) have entered into the Guaranty  Agreement, dated as of June 14, 2011(as amended, supplemented or otherwise modified from time to time, the “Guaranty Agreement”) in favor of the Trustee for the ratable benefit of the Holders of the Securities issued under the Indenture;

                  WHEREAS, the Indenture requires the Additional Guarantor to become a party to the Guaranty Agreement; and

                  WHEREAS, the Additional Guarantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guaranty Agreement;

                  NOW, THEREFORE, IT IS AGREED:

                  1.  Guaranty Agreement.  By executing and delivering this Assumption Agreement, the Additional Guarantor, as provided in Section 3.13 of the Guaranty Agreement, hereby becomes a party to the Guaranty Agreement as a Subsidiary Guarantor thereunder with the same force and effect as if originally named therein as a Subsidiary Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Subsidiary Guarantor thereunder.

                  2.  Governing Law.  This Assumption Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

[SIGNATURE PAGE FOLLOWS]

[Guaranty Agreement – Globalstar, Inc.]

  

 

  

IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first above written.

	  	
[ADDITIONAL GUARANTOR]

	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

[Guaranty Agreement – Globalstar, Inc.]Unassociated Document

 

Exhibit 4.4

FORM OF COMMON STOCK PURCHASE WARRANT

Warrant Number [·]

THE WARRANTS AND THE SHARES OF COMMON STOCK, WHICH MAY BE ISSUED UPON EXERCISE OF THE WARRANTS, COLLECTIVELY, THE “SECURITIES,” WHICH MAY BE REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR TRANSFERRED ABSENT REGISTRATION UNDER THE APPLICABLE SECURITIES LAWS OR AN EXEMPTION THEREFROM, THE HOLDER OF THE SECURITIES, BY ITS ACCEPTANCE HEREOF, AGREES THAT SUCH SECURITIES ARE BEING ACQUIRED NOT WITH A VIEW TO DISTRIBUTION AND MAY BE OFFERED, SOLD, PLEDGED OR TRANSFERRED ONLY PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENT OF THE SECURITIES ACT AND IN COMPLIANCE WITH THE WARRANT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.  EACH HOLDER OF SECURITIES AND ANY SUBSEQUENT HOLDER OF THE SECURITIES WILL BE REQUIRED TO CERTIFY, AMONG OTHER THINGS, THAT SUCH HOLDER OR SUBSEQUENT HOLDER (1) IS AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A) UNDER THE SECURITIES ACT AND (2) WAS NOT FORMED FOR THE PURPOSE OF INVESTING THE WARRANTS.  THE HOLDER OF ANY SECURITIES WILL, AND EACH SUBSEQUENT HOLDER OF SECURITIES IS REQUIRED TO, NOTIFY ANY PURCHASER OF SUCH SECURITIES FROM IT OF THE RESALE RESTRICTION REFERRED TO ABOVE.  EACH HOLDER OF SECURITIES WILL NOT TRANSFER THESE SECURITIES EXCEPT TO A PURCHASER WHO CAN MAKE THE ABOVE REPRESENTATIONS AND AGREEMENTS ON BEHALF OF ITSELF AND EACH ACCOUNT FOR WHICH IT IS PURCHASING

GLOBALSTAR, INC.

WARRANT TO PURCHASE COMMON STOCK

To Purchase [·] Shares of Common Stock

Date of Issuance: June [·], 2011

VOID AFTER JUNE 14, 2016

 

THIS CERTIFIES THAT, for value received, [·] or its permitted registered assigns (the “Holder”), is entitled to subscribe for and purchase at the Exercise Price (defined below) from Globalstar, Inc., a Delaware corporation (the “Company”), up to [·] shares of the common stock of the Company, par value $0.0001 per share (the “Common Stock”).  This warrant is one of a series of warrants issued by the Company as of the date hereof (individually a “Warrant” and collectively the “Warrants”) pursuant to that certain subscription agreement between the Company and the investors party thereto, dated as of June [·], 2011 (the “Subscription Agreement”).

 

  

  

  

1.            Definitions.  Capitalized terms used but not defined herein shall have their respective meanings as set forth in the Subscription Agreement.  As used herein, the following terms have the following respective meanings:

(A)           "Black Scholes Value" means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the "OV" function on Bloomberg using (i) a price per share of Common Stock equal to the weighted average price of the Common Stock for the Trading Day immediately preceding the date of consummation of the applicable transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of the date of consummation of the applicable transaction and (iii) an expected volatility equal to the greater of 80% and the 30-day volatility obtained from the HVT function on Bloomberg determined as of the Trading Day immediately following the date of the public announcement of the applicable transaction.

(B)           “Closing Sale Price” of the Common Stock (or any other securities on any date) means the last reported sale price per share (or if no last reported sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions for the principal United States national or regional securities exchange on which the Common Stock or such other securities, as applicable, are listed for trading. If the Common Stock or the other security, as applicable, is not listed for trading on a United States national or regional securities exchange on the relevant date, the Closing Sale Price will be the last quoted bid price for Common Stock or the other security, as applicable, in the over-the-counter market on the relevant date as reported by OTC Markets Group, Inc. (formerly Pink Sheets LLC) or similar organization. If Common Stock or the other security, as applicable, is not so quoted the Closing Sale Price will be the average of the mid-point of the last bid and ask prices for Common Stock or the other security, as applicable, on the relevant date from each of three nationally recognized independent investment banking firms selected by the Company (and reasonably acceptable to the Holder) for this purpose

 

(C)           “Eligible Market” means any of the New York Stock Exchange, the NYSE Amex Stock Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market or The NASDAQ Capital Market.

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

(E)           “Exercise Period” means the period commencing on the date hereof and ending at the close of business on the date that is five (5) years from the date hereof.

  

2

  

(F)           “Exercise Price” means $1.25, subject to adjustment pursuant to Section 3 below.

(G)           “Exercise Shares” means the shares of Common Stock issuable upon exercise of this Warrant.

(H)           “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) have another Person make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of Common Stock (including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), or (v) reorganize, recapitalize or reclassify its Common Stock.

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

(J)           “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

(K)           “Permitted Payment” shall have the meaning given in Third Supplemental Indenture dated as of June 14, 2011 between the Company and U.S. Bank, National Association.

(L)           “Shareholder Approval” means the approval by the Company’s stockholders of the issuance of shares of Common Stock upon conversion of the Unsecured Notes or exercise of the Warrants in accordance with the requirements of Listing Rule 5635(d) of NASDAQ Stock Market.

(M)           “Trading Day” means (a) any day on which the Common Stock is listed or quoted and traded on its primary Trading Market, (b) if the Common Stock is not then listed or quoted and traded on any Eligible Market, then a day on which trading occurs on the OTC Bulletin Board (or any successor thereto), or (c) if trading does not occur on the OTC Bulletin Board (or any successor thereto), any business day.

(N)           “Trading Market” means the NASDAQ Global Select Market or any other Eligible Market, or any national securities exchange, market or trading or quotation facility on which the Common Stock is then principally listed or quoted.

  

3

  

(O)           “Unsecured Notes” means the 5.0% Convertible Senior Unsecured Notes issued pursuant to the Third Supplemental Indenture dated as of the date hereof between the Company and U.S. Bank, National Association.

2.           Exercise of Warrant.  Subject to Sections 2.4 and 2.5, the rights represented by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company at its address set forth on the signature page hereto (or at such other address as it may designate by notice in writing to the Holder):

(A)           an executed Notice of Exercise in the form attached hereto; and

(B)           payment of the Exercise Price either (i) in cash or by wire transfer of immediately available funds within 2 days of the Notice of Exercise or (ii) if elected by the Holder, pursuant to Section 2.1 below.

The Company shall promptly, and in no case later than the business day immediately following such receipt, confirm receipt of a Notice of Exercise via fax or other electronic transmission to the number or other address specified in such Notice of Exercise.

Upon any such exercise, the Holder shall promptly, and in no case later than five days after delivery of the applicable Notice of Exercise, deliver the Warrant to the Company.

Execution and delivery of the Notice of Exercise shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Exercise Shares, if any.

Certificates for shares purchased hereunder shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit/Withdrawal at Custodian system if the Company is a participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise, within three business days from the delivery to the Company of the Notice of Exercise.  The Company shall deliver shares purchased hereunder without a legend, if permitted under federal securities laws.  This Warrant shall be deemed to have been exercised on the date the Notice of Exercise is received by the Company, provided that the Exercise Price shall be required to be delivered prior to the delivery of the Exercise Shares

The person in whose name any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was exercised, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such exercise is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open.  All shares of Common Stock (or other securities) issuable upon exercise of this Warrant shall be duly authorized and, when issued upon such exercise, shall be validly issued and, in the case of shares, fully paid and nonassessable with no liability on the part of the holder thereof.

  

4

  

Subject to Section 2.4 and the final sentence of this paragraph and to the extent permitted by law, the Company’s obligations to issue and deliver Exercise Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any person or entity or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other person or entity of any obligation to the Company or any violation or alleged violation of law by the Holder or any other person or entity, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Exercise Shares.  The Company stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Company in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of the terms hereof or otherwise; provided, however, that notwithstanding anything to the contrary in this Warrant or in the Subscription Agreements, if the Company is for any reason unable to deliver Exercise Shares upon exercise of this Warrant as required pursuant to the terms hereof, the Company shall have no obligation to pay to the Holder any cash or other consideration or otherwise “net cash settle” this Warrant, unless such payment is a Permitted Payment; provided further, that the foregoing proviso shall not excuse the Company from any breach of this Agreement arising from its failure to deliver Exercise Shares required hereunder.

2.1           Net Share Exercise.  If during the Exercise Period the Fair Market Value (as defined below) of one share of the Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash or by wire transfer of immediately available funds, the Holder may, at its option, elect to effect a “net share exercise” of this Warrant, in which event, if so effected, the Holder shall receive Exercise Shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

X = Y(A-B)

A

	
Where 

	
X   =      the number of Exercise Shares to be issued to the Holder

	
  

	
Y   =

	
the number of Exercise Shares with respect to which this Warrant is being exercised

	
  

	
A   =

	
the Fair Market Value (as defined below) of one share of the Company’s Common Stock (at the date of such calculation)

	
  

	
B   =

	
the Exercise Price (as adjusted to the date of such calculation)

  

5

  

For purposes of this Warrant, the “Fair Market Value” of one share of Common Stock means the volume weighted average of the Closing Sale Prices for the previous ten Trading Days.

2.2           Issuance of New Warrants.  Upon any partial exercise of this Warrant, the Company, at its expense, will forthwith and, in any event within five business days, issue and deliver to the Holder a new warrant or warrants of like tenor, registered in the name of the Holder, exercisable, in the aggregate, for the balance of the number of shares of Common Stock remaining available for purchase under this Warrant.

2.3           Payment of Taxes and Expenses.  The Company shall pay (a) any recording, filing, stamp or similar tax which may be payable in respect of, and (b) customary fees of the Depository Trust Corporation and any transfer agent in connection with, any transfer involved in the issuance of, and the preparation and delivery of certificates (if applicable) representing, (i) any Exercise Shares purchased upon exercise of this Warrant and/or (ii) new or replacement warrants in the Holder’s name or the name of any transferee of all or any portion of this Warrant; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance, delivery or registration of any certificates for Exercise Shares or Warrants in a name other than that of the Holder.  The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Exercise Shares upon exercise hereof.

2.4           Exercise Limitations; Holder’s Restrictions.  A Holder, other than an Excluded Holder (as defined below), shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise, such Holder (together with such Holder’s affiliates), as set forth on the applicable Notice of Exercise, would beneficially own in excess of [4.9/9.9]% of the number of shares of Common Stock outstanding immediately after giving effect to such issuance.  For purposes of this Section 2.4, the number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by such Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company, subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by such Holder or any of its affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2.4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act.  To the extent that the limitation contained in this Section 2.4 applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of this Warrant is exercisable shall be in the sole discretion of a Holder, and the submission of a Notice of Exercise shall be deemed to be each Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.  For purposes of this Section 2.4, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by the Company, or (z) any other notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by such Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The provisions of this Section 2.4 may be waived by such Holder, at the election of such Holder, upon not less than 61 days’ prior notice to the Company, and the provisions of this Section 2.4 shall continue to apply until such 61st day (or such later date, as determined by such Holder, as may be specified in such notice of waiver).  For purposes of this Section 2.4, an “Excluded Holder” means a Holder (together with such Holder’s affiliates) that beneficially owned in excess of [4.9/9.9]% of the number of shares of the Common Stock outstanding on the date this Warrant was issued to such Holder; provided, however, that if thereafter such Holder (together with such Holder’s affiliates) shall beneficially own [4.9/9.9]% or a percentage less than [4.9/9.9]% of the number of shares of the Common Stock outstanding, then such Holder shall cease to be an “Excluded Holder” hereunder.

  

6

  

2.5           No Exercise Prior to Shareholder Approval.  Notwithstanding anything to the contrary contained herein, this Warrant shall not be exercisable unless the Company has obtained Shareholder Approval.  The Company shall obtain Shareholder Approval no later than 60 days after the date hereof.

3.             Adjustment of Exercise Price and Shares.  The Exercise Price and number of Exercise Shares issuable upon exercise of this Warrant shall be adjusted from time to time as follows:

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

 

	
CR1 = CR0 ×  

	
OS0

	
OS1

 where

	 	
CR0

	= 	
the Exercise Price in effect immediately prior to the Opening of Business on such Ex-Dividend Date of the dividend or distribution, or the Opening of Business on the effective date of such share split or share combination, as applicable;

	
  

	
CR1

	
=

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

	
  

	
OS0

	
=

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

	
  

	
OS1

	
=

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

  

7

  

Such adjustment shall become effective immediately following the Opening of Business on (i) the Ex-Dividend Date for the dividend or distribution or (ii) the effective date of the share split or combination, as the case may be.  When any adjustment of the Exercise Price is made pursuant to this Section 3(a), the number of Exercise Shares issuable hereunder shall be adjusted such that the aggregate Exercise Price payable hereunder, after taking into account the adjustment in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment.  If any dividend or distribution of the type described in this Section 3(a) is declared but not so paid or made, the new Exercise Price shall be readjusted to the Exercise Price that would then be in effect if such dividend or distribution had not been declared.

 

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

 

	
  

	
(i)

	
dividends, distributions, share splits or share combinations as to which an adjustment applies under Section 3(a) above;

 

	
  

	
(ii)

	
dividends or distributions paid exclusively in cash; and

 

	 	
(iii)

	
Spin-Offs to which the provisions set forth below in this Section 3(b) shall apply;

 

then the Exercise Price will be adjusted based on the following formula:

	
CR1 = CR0 ×  

	
SP0– FMV

	
SP0

  where

	
  

	
CR0

	
=

	
the Exercise Price in effect immediately prior to the Opening of Business on the Ex-Dividend Date for such distribution;

	
  

	
CR1

	
=

	
the new Exercise Price in effect immediately after the Opening of Business on the Ex-Dividend Date for such distribution;

	
  

	
SP0

	
=

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

  

8

  

	
  

	
FMV

	
=

	
the fair market value (as determined in good faith by the Board of Directors) of the shares of capital stock, evidences of indebtedness, assets, property, rights or warrants distributed with respect to each outstanding share of Common Stock at the Opening of Business on the Ex-Dividend Date for such distribution; provided, however, that if holders of Warrants exercisable for at least 20% of the aggregate Exercise Shares then issuable upon exercise of the outstanding Warrants (the “Specified Holders”) object in writing to such fair market value within ten days after the occurrence of an event requiring a determination of fair market value (the “Valuation Event”), then the fair market value of such shares of capital stock, evidences of indebtedness, assets, property, rights or warrants will be determined within five business days after the tenth day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Specified Holders.  The determination of such appraiser shall be final and binding upon all parties absent manifest error, and the fees and expenses of such appraiser shall be borne by the Company.

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

 

With respect to an adjustment pursuant to this Section 3(b) where there has been a payment of a dividend or other distribution on the Common Stock of shares of capital stock of any class or series, or similar equity interest, of or relating to a subsidiary or other business unit of the Company (a “Spin-Off”), the Exercise Price will be adjusted based on the following formula:

 

	
CR1 = CR0 ×  

	
MP0

	
FMV0 + MP0

  where

	
  

	
CR0

	
=

	
the Exercise Price in effect immediately prior to the Close of Business on the last Trading Day of the Valuation Period;

	
  

	
CR1

	
=

	
the new Exercise Price in effect immediately after the Close of Business on the last Trading Day of the Valuation Period;

	
  

	
FMV0

	
=

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

	
  

	
MP0

	
=

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

Such adjustment shall occur immediately after the Close of Business on the last Trading Day of the Valuation Period; provided that in respect of any Conversion Date occurring during the Valuation Period, references to 10 Trading Days within the portion of this Section 3(b) related to “Spin-Offs” shall be deemed replaced with the lesser number of Trading Days as have elapsed between the effective date of such Spin-Off and the relevant date on which this Warrant is exercised in determining the adjustment to the applicable Exercise Price.

  

9

  

 

When any adjustment of the Exercise Price is made pursuant to this Section 3(b), the number of Exercise Shares issuable hereunder shall be adjusted such that the aggregate Exercise Price payable hereunder, after taking into account the adjustment in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment.

 

If any such dividend or distribution described in this Section 3(b) is declared but not paid or made, the new Exercise Price shall be readjusted to be the Exercise Price that would be in effect if the dividend or distribution had not been declared.

 

(c)           Notwithstanding the foregoing provisions of this Section 3, no adjustment will be made under this Section 3, nor shall an adjustment be made to the ability of a Holder to exercise, for any distribution described in this Section 3 if each Holder will otherwise participate in such distribution in respect of the Warrants (and the Exercise Shares) on the same terms and at the same time as holders of Common Stock, without having to exercise its Warrant, as if such Holder held a number of shares of Common Stock equal to the Exercise Shares in effect on the Ex-Dividend Date or effective date, as the case may be.

 

(d)           No adjustment to the Exercise Price will be made except to the extent specifically set forth in this Section 3.

 

(e)           Without limiting the foregoing, the applicable Exercise Price will not be adjusted upon certain events, including but not limited to:

 

	
  

	
(i)

	
the issuance of shares of Common Stock or options (a) to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted and in effect as of the date hereof or (b) duly adopted after the date hereof by a majority of the non-employee members of the Company’s Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose;

 

	
  

	
(ii)

	
the issuance of any shares of Common Stock pursuant to any option, warrant, right, or exercisable, exchangeable or convertible security outstanding as of the Issue Date, provided that the exercise price or conversion rate of such security has not been reduced since the Issue Date;

 

	
  

	
(iii)

	
a change in the par value of the Common Stock; or

 

	
  

	
(iv)

	
dividends or distributions accumulated and unpaid as of the date hereof.

 

(f)           No adjustment to the Exercise Price will be required unless the adjustment would require an increase or decrease of at least 1% of the Exercise Price. If the adjustment is not made because the adjustment does not change the Exercise Price by at least 1%, then the adjustment that is not made will be carried forward and taken into account in any future adjustment. All required calculations will be made to the nearest cent or 1/1000th of a share, as the case may be.  Notwithstanding the foregoing, upon any Exercise of this Warrant (solely with respect to the portion of the Warrant to be exercised), the Company will give effect to all adjustments that have been otherwise deferred, and those adjustments will no longer be carried forward and taken into account in any future adjustment.

  

10

  

 

(g)           Whenever the Exercise Price is adjusted as herein provided, the Company shall promptly mail to the holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment and the calculation thereof.  Failure to deliver such notice shall not affect the legality or validity of any such adjustment.

 

(h)           For purposes of this Section 3, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.  If the Company pays any dividend or makes any distribution on, or issues any rights, options or warrants in respect of, shares of Common Stock held in treasury by the Company, the Company shall not issue, transfer or convey such shares of Common Stock in a manner that would have the effect of circumventing the provisions of this Section 3.

 

(i)            [INTENTIONALLY OMITTED]

 

(j)            Notwithstanding anything to the contrary herein, if any adjustment to the Exercise Price hereunder would cause the Exercise Price to be less than $0.20 (as adjusted for stock splits, recapitalizations and similar events), the Exercise Price shall instead, in such circumstance, be adjusted to equal $0.20 (as adjusted for stock splits, recapitalizations and similar events).

 

(k)           In case any option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction, (x) the options will be deemed to have been issued for their Black Scholes Value of such options and (y) the other securities issued or sold in such integrated transaction shall be deemed to have been issued for the difference of (I) the aggregate consideration received by the Company, less (II) the Black Scholes Value of such options.  If any shares of Common Stock, options or convertible securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company therefor.  If any shares of Common Stock, options or convertible securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company will be the weighted average price of such security on the date of receipt.  If any shares of Common Stock, options or convertible securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, options or convertible securities, as the case may be.  The fair value of any consideration other than cash or securities will be determined in good faith by the Board of Directors of the Company.  If the Holders of Warrants exercisable for a majority of the aggregate Exercise Shares (the “Majority Holders”) object in writing to a valuation within ten days after the applicable Valuation Event, then the fair value of such consideration will be determined within five business days after the tenth day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Majority Holders.  The determination of such appraiser shall be final and binding upon all parties absent manifest error, and the fees and expenses of such appraiser shall be borne equally by the Company and the Holders.

  

11

  

(l)            If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, options or in convertible securities or (B) to subscribe for or purchase shares of Common Stock, options or convertible securities, then the Company will give the Holder at least 10 business days advance written notice of such record and will, if requested by the Holder, enable the Holder to exercise this Warrant and become a record holder of the Exercise Shares desired to be acquired prior to such record date.

(m)          The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company; provided, however, that any such reduction in the Exercise Price shall be effected as to all outstanding Warrants in the series of Warrants issued by the Company as of the date hereof.

 

3.1           Other Events.  If any event occurs of the type contemplated by the provisions of Section 3 but is not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features) or any other event occurs as to which the provisions of Section 3 or 4 hereof are not strictly applicable but the failure to make any adjustment would not, in the opinion of the Holder of this Warrant, fairly protect the purchaser’s rights represented by this Warrant in accordance with the essential intent and principals of such Sections, then the Company’s Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Exercise Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 3.1 will increase the Exercise Price or decrease the number of Exercise Shares in a manner inconsistent with an adjustment otherwise specifically provided for pursuant to this Section 3.

3.2           Adjustment for Common Stock Price.  If, at the Opening of Business on April 15, 2013, the volume weighted average of the Closing Sale Prices of the Common Stock  over the immediately preceding 30 Trading Days is less than the then-existing Exercise Price, then the then-existing Exercise Price shall be reduced, effective as of the Opening of Business on April 15, 2013, to such volume weighted average of the Closing Sale Prices of the Common Stock (the “Reset Price”); provided, however, that such reset shall not occur if the Reset Price would be equal to or greater than the then-existing Exercise Price.

4.           Purchase Rights; Fundamental Transactions.

4.1           Purchase Rights.  In addition to any adjustments pursuant to Section 3 above, if at any time the Company grants, issues or sells any options, convertible securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant and assuming the Exercise Price therefor was paid in cash) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

  

12

  

4.2            Fundamental Transactions.  The Company shall not enter into or be party to a Fundamental Transaction unless the successor entity assumes this Warrant in accordance with the provisions of this Section 4.2, including agreements to deliver to each holder of Warrants in exchange for such Warrants a security of the successor entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant and assuming the Exercise Price therefor was paid in cash) immediately before such Fundamental Transaction and such successor entity shall have similarly delivered to the Holder an opinion of counsel for such Person, which counsel shall be reasonably satisfactory to the Holder, stating that this Warrant shall thereafter continue in full force and effect and the terms hereof (including without limitation all of the provisions of Sections 3 and 4) shall be applicable to the stock, securities, cash or property which such Person may be required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto.  Upon the occurrence of any Fundamental Transaction, the successor entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the successor entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such successor entity had been named as the Company herein.  In addition to and not in substitution for any other rights hereunder, before the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but before the end of the Exercise Period, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant before such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately before such Fundamental Transaction.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  The provisions of this Section 4.2 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant.  Notwithstanding the foregoing, in the event of a Fundamental Transaction, at the request of the Holder delivered before the 15th day after consummation of such Fundamental Transaction, the Company (or the successor entity) shall purchase this Warrant from the Holder by paying to the Holder, within five business days after such request (or, if later, within two business days after the effective date of the Fundamental Transaction), cash in an amount equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of such Fundamental Transaction.

  

13

  

5.            Noncircumvention.  The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant.  Without limiting the generality of the foregoing, the Company (i) shall not permit the par value of any shares of stock, including the Common Stock receivable upon the exercise of this Warrant to exceed the Exercise Price, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding (without regard to any limitations on exercise).

6.            Fractional Shares.  No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto.  All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share.  If, after aggregation, the exercise would result in the issuance of a fractional share, the number of Exercise Shares to be issued will be rounded down to the nearest whole share.

7.            No Stockholder Rights.  Other than as provided herein, this Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company.

8.            Transfer of Warrant.  Subject to applicable laws and the restriction on transfer set forth in the Subscription Agreement, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder.  The transferee shall sign an investment letter in form and substance reasonably satisfactory to the Company and its counsel.  Any purported transfer of all or any portion of this Warrant in violation of the provisions of this Warrant shall be null and void.  Each holder of this Warrant shall be entitled to all of the benefits afforded to a holder of Warrants or Exercise Shares under the Registration Agreement dated June 14, 2011 by and among the Company and the initial holders of Warrants specified therein.  At any such time as the Common Stock (or any other security issuable upon exercise of this Warrant) is listed on any national securities exchange, the Company will, at its expense, obtain promptly and maintain the approval for listing on each such exchange, upon official notice of issuance, the shares of Common Stock (or other securities) issuable upon exercise of the then outstanding Warrants and maintain the listing of such shares after their issuance.  The Company will comply with the reporting requirements of Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended, and will comply with all other public information reporting requirements of the Commission applicable to the Company.

  

14

  

9.            Lost, Stolen, Mutilated or Destroyed Warrant.  If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.  Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

10.           Notices, etc.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed facsimile to the facsimile number specified in writing by the recipient if sent during normal business hours of the recipient on a Trading Day, if not, then on the next Trading Day, (c) the next Trading Day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the Company at the address listed on the signature page hereto and to Holder at the applicable address set forth on the applicable signature page to the Subscription Agreement or at such other address as the Company or Holder may designate by ten days advance written notice to the other parties hereto.

11.           Acceptance.  Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

12.           Governing Law.  This Warrant and all rights, obligations and liabilities hereunder shall be governed by, and construed in accordance with, the internal laws of the State of New York, without giving effect to the principles of conflicts of law that would require the application of the laws of any other jurisdiction.

13.           Amendment or Waiver.  Any term of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Holder of this Warrant.  No waivers of any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  

15

  

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of June [●], 2011.

	  	
GLOBALSTAR, INC.

	  	  
	  	
By:              

	  	
Name:          

	  	
Title:           

	  	  
	  	
300 Holiday Square Blvd.

	  	
Covington, Louisiana 70433

  

16

  

NOTICE OF EXERCISE

TO:  GLOBALSTAR, INC.

	 	
(1)

	
 ̈           The undersigned hereby elects to purchase [   ] shares of the common stock, par value $0.0001 (the “Common Stock”), of Globalstar, Inc., a Delaware corporation (the “Company”), pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full.

	
  

	
 ̈

	
The undersigned hereby elects to purchase [   ] shares of Common Stock of the Company pursuant to the terms of the net share exercise provisions set forth in Section 2.1 of the attached Warrant.

	
  

	
(2)

	
Please issue the certificate for shares of Common Stock in the name of:

	
  

	
(a)

	
Certificated:

	
 

	
(Print or Type Name)

	
 

	 
	
(Social Security or other Identifying Number)

	
 

	 
	
(Street Address)

	
 

	 
	
(City, State, Zip Code)

	
  

	
(b)

	
Electronic:

	
Recipient

	
 

	
(Broker and DTC #):

	  
	  	  
	
For credit to:

	
 

(3)           If such number of shares shall not be all the shares purchasable upon the exercise of the Warrants evidenced by this Warrant, a new warrant certificate for the balance of such warrants remaining unexercised shall be registered in the name of and delivered to:

Please insert taxpayer identification,  social security or other identifying number: ___________

	
 

(Please print name and address)

  

  

  

	 

(4)           Please send confirmation of receipt of this Notice and Exercise to the following fax number:

	
 

	
Dated:

	
   

	  	
(Signature)

	  	  
	  	
   

	  	
(Print Name)

  

  

  

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply the required information.

Do not use this form to purchase shares.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to:

	
Name:

	
   

	  	
(Please Print)

	  	  
	
Address:

	
   

	  	
(Please Print)

	 	 
	 	 

Dated:___________                                           

	
Holder’s Signature:  

	
   

	  	  
	
Holder’s Address:

	
   

	  	
(Please Print)

	  	  
	  	
   

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]