Document:

exv4w2

 

EXHIBIT 4.2

INTELSAT, LTD.

Officers’ Certificate

               The undersigned officers of Intelsat, Ltd., a company duly organized and
existing under the laws of Bermuda (the “Company”), hereby certify pursuant to
Sections 201 and 301 of the Indenture (the “Indenture”), dated as of April 1,
2002, between the Company and The Bank of New York, as trustee (the “Trustee”),
that there are hereby established four series of Securities (as that term is
defined in the Indenture), the terms of which shall be as follows:

2008 Notes

		
	 	     1. The designation of the Securities shall be the 5 1/4% Senior
Notes due 2008 (the “Initial 2008 Notes”) and the 5 1/4% Senior Notes due
2008 to be issued in exchange therefor as contemplated by the
Registration Rights Agreement, dated as of November 7, 2003 (the
“Registration Rights Agreement”), among the Company, Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities
Corp. (the “Exchange 2008 Notes” and, together with the Initial 2008
Notes, the “2008 Notes”). Unless the context otherwise requires, the
Initial 2008 Notes and the Exchange 2008 Notes shall constitute one
series for all purposes under the Indenture, including, without
limitation, amendments and waivers.

		
	 	     2. The aggregate principal amount of the 2008 Notes initially shall
be limited to US$400,000,000 (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in
lieu of, other Securities of this series pursuant to Section 304, 305,
306, 906 or 1107 of the Indenture and except for any Securities which,
pursuant to Section 303 of the Indenture, are deemed never to have been
authenticated and delivered thereunder).

		
	 	     3. Subject to the provisions of Section 307 of the Indenture,
interest will be payable to the Person in whose name a Note (or any
predecessor Note) is registered at the close of business on the Regular
Record Date for such interest.

		
	 	     4. The principal amount of the 2008 Notes shall be payable in full
on November 1, 2008 subject to and in accordance with the provisions of
the Indenture and subject to paragraphs 7, 8 and 9 below.

		
	 	     5. The 2008 Notes shall bear interest at the rate of 5 1/4% per
annum from the date hereof or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, payable
semi-annually on May 1 and November 1 of each year, commencing May 1,
2004, until the principal amount of the 2008 Notes has been paid or duly
provided for. April 15 and October 15 (whether or not a Business Day),
as the case may be, next preceding an Interest Payment Date shall be the
“Regular Record Date” for interest payable on such Interest Payment Date.

 

 

		
	 	     6. The principal of, any premium and interest on the 2008 Notes
shall be payable at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York.

		
	 	     7. The 2008 Notes may be redeemed by the Company as provided in
Section 1108 of the Indenture at a Redemption Price equal to 100% of the
principal amount of the 2008 Notes to be redeemed together with accrued
and unpaid interest on the principal amount of the 2008 Notes, if any,
and any other amounts due to the Redemption Date, if any.
	 
	 	     8. The 2008 Notes may be redeemed by the Company in whole or in
part, at the Company’s option, at any time and from time to time at a
Redemption Price equal to the greater of (i) 100% of the principal amount
of the 2008 Notes to be redeemed and (ii) the sum of the present values
of the Remaining Scheduled Payments discounted to the Redemption Date on
a semiannual basis, assuming a 360-day year consisting of twelve 30-day
months, at the Treasury Rate plus 30 basis points, together with, in each
case, accrued and unpaid interest on the principal amount of the 2008
Notes to be redeemed to the Redemption Date and any other amounts due to
the Redemption Date, if any. In connection with such optional
redemption, the following defined terms apply:
	 
	 	          “Comparable Treasury Issue” means the United States Treasury
security or securities selected by an Independent Investment Banker as
having an actual or interpolated (on a straight-line basis) maturity
comparable to the remaining term of the 2008 Notes to be redeemed that
would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of a comparable maturity to the remaining term of the 2008
Notes.
	 
	 	          “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.
	 
	 	          “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.
	 
	 	          “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities
Corp., or their affiliates which are primary U.S. Government securities
dealers, and their respective successors, and two other nationally
recognized investment banking firms that are primary U.S. Government
securities dealers in The City of New York (a “Primary Treasury Dealer”)
specified from time to time by the Company; provided, however, that if
any of the foregoing, or their affiliates, as the case may be, shall
cease to be a Primary Treasury Dealer, the Company shall substitute
therefor another Primary Treasury Dealer.

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	 	          “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Independent Investment Banker, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Independent
Investment Banker by such Reference Treasury Dealer at 3:30 p.m. New York
time on the third Business Day preceding such Redemption Date.
	 
	 	          “Remaining Scheduled Payments” means, with respect to each of the
2008 Notes to be redeemed, the remaining scheduled payments of principal
of and interest on such 2008 Notes that would be due after the related
Redemption Date but for such redemption. If such Redemption Date is not
an Interest Payment Date with respect to such 2008 Notes, the amount of
the next succeeding scheduled interest payment on such 2008 Notes will be
reduced by the amount of interest accrued on such 2008 Notes to such
Redemption Date.
	 
	 	          “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that
represents the average for the immediately preceding
week, appearing in the most recently published
statistical release designated “H.15(519)” or any
successor publication that is published weekly by the
Board of Governors of the Federal Reserve System and
that establishes yields on actively traded U.S.
Treasury securities adjusted to constant maturity under
the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue
(if no maturity is within three months before or after
the remaining term of the 2008 Notes, yields for the
two published maturities most closely corresponding to
the Comparable Treasury Issue will be determined and
the Treasury Rate will be interpolated or extrapolated

from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor
release) is not published during the week preceding the
calculation date or does not contain such yields, the
rate per annum equal to the semiannual equivalent yield
to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such
Redemption Date.

		
	 	          The Treasury Rate will be calculated on the third Business Day
preceding the Redemption Date.
	 
	 	          Notice of any such optional redemption will be mailed at least 30
days but not more than 60 days before the Redemption Date to the Holders
of the 2008 Notes to be redeemed. On and after any Redemption Date,
interest will cease to accrue on the 2008 Notes or any portion thereof
called for redemption (unless the Company defaults in payment of the
Redemption Price). On or before any

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	 	Redemption Date, the Company shall deposit with a Paying Agent (or
the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the 2008 Notes to be redeemed on such date.
	 
	 	          The Redemption Price shall be calculated by the Independent
Investment Banker, and the Trustee and any Paying Agent for the 2008
Notes shall be entitled to rely on, and the Company and the Holders shall
be bound by, such calculation.
	 
	 	     9. Upon the earliest to occur for whatever reason of a Mandatory
Redemption Event, the Company will be required to redeem a portion of the
2008 Notes, at a Redemption Price equal to 102% of the principal amount
of the 2008 Notes to be redeemed, together with accrued and unpaid
interest on the principal amount of the 2008 Notes, if any, and any other
amounts due to the Redemption Date, if any, such that, following and
after giving effect to any such mandatory redemption, $200,000,000
aggregate principal amount of the 2008 Notes will remain outstanding.
The Redemption Date with respect to any such mandatory redemption will be
determined by the Company and must be within ten Business Days of the
applicable Mandatory Redemption Event. In connection with such mandatory
redemption, the following terms apply:
	 
	 	          “Applicable Credit Agreement” means the credit agreement to be
entered into or entered into among the Company and various financial
institutions, including affiliates of Morgan Stanley & Co. Incorporated,
Citigroup Global Markets Inc. and BNP Paribas Securities Corp., the
initial purchasers of the 2008 Notes (the “Initial Purchasers”), under a
commitment letter dated July 15, 2003, as amended from time to time, with
affiliates of the Initial Purchasers pursuant to which those affiliates
have agreed to provide financing for the transactions contemplated by the
Asset Purchase Agreement, for the repayment of near-term debt obligations
of the Company as they become due and for working capital requirements,
or any alternative credit agreement thereto entered into among the
Company and affiliates of the Initial Purchasers, in any case prior to
the closing of the transactions contemplated by the Asset Purchase
Agreement and in each case as such agreement may be amended from time to
time.
	 
	 	          “Asset Purchase Agreement” means the Asset Purchase Agreement, dated
as of July 15, 2003, as amended from time to time (the “Asset Purchase
Agreement”), among the Company, Intelsat (Bermuda), Ltd., Loral Space &
Communications Corporation, as debtor and debtor-in-possession, Loral
SpaceCom Corporation, as debtor and debtor-in-possession and Loral
Satellite, Inc., as debtor and debtor-in-possession.
	 
	 	          “Mandatory Redemption Event” means any of the following: (i) the
Asset Purchase Agreement is terminated, (ii) the Applicable Credit
Agreement is not entered into by all the parties thereto or is terminated
at any time following its execution, in each case on or prior to April
30, 2004, (iii) the Company fails to meet any condition required for the
extension of loans under the Applicable Credit

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	 	Agreement on or prior to April 30, 2004 that in accordance with the
terms of the Applicable Credit Agreement must be satisfied, and that has
not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur
on or prior to April 30, 2004.
	 
	 	          Notice of any such mandatory redemption will be given at least one
Business Day before the Redemption Date to Holders of the 2008 Notes
subject to mandatory redemption and will specify the applicable Mandatory
Redemption Event. On and after any Redemption Date, interest will cease
to accrue on that portion of the 2008 Notes called for redemption (unless
the Company defaults in payment of the Redemption Price). On or before
any Redemption Date, the Company shall deposit with a Paying Agent (or
the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the 2008 Notes to be redeemed on such date.
	 
	 	          The time or circumstances upon which the 2008 Notes will be subject
to mandatory redemption may not be modified or changed in any manner
without the consent of the Holder of each outstanding 2008 Note.
	 
	 	     10. If less than all of the 2008 Notes are to be redeemed, the 2008
Notes to be redeemed shall be selected by the Trustee on a pro rata
basis, by lot or by such other method as the Trustee shall deem fair and
appropriate. No 2008 Notes of $1,000 in principal amount or less will be
redeemed in part. If the Company redeems any 2008 Notes in part, the
notice of redemption shall state the portion of the principal amount of
the 2008 Notes to be redeemed.
	 
	 	     11. The Company shall not be obligated to redeem or purchase the
2008 Notes pursuant to any sinking fund or analogous provisions or at the
option of the Holder thereof.
	 
	 	     12. The 2008 Notes may be issued in whole or in part in the form of
one or more Global Securities and in the form of one or more certificated
Securities. The initial Depositary for any such Global Securities shall
be The Depository Trust Company.
	 
	 	     13. The 2008 Notes shall be issued (i) in fully registered form
without interest coupons, in the form of beneficial interests in one or
more Global Notes in denominations of $1,000 or integral multiples
thereof or (ii) only in the case of 2008 Notes sold initially by the
Initial Purchasers to institutional accredited investors within the
meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act of 1933, as amended (the “Act”) who are not qualified
institutional buyers within the meaning of Rule 144 under the Act, in the
form of restricted Securities in certificated form in denominations of
$250,000 and any integral multiples of $1,000 in excess thereof. All of
the 2008 Notes shall be substantially in one of the forms attached hereto
as part of Annex A.
	 
	 	     14. The 2008 Notes shall be defeasible as provided in, and in
accordance with, Sections 1302 through 1306 of the Indenture.

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	 	     15. The Company may from time to time or at any time, without the
consent of the Holders of the 2008 Notes, issue additional notes with
terms and conditions identical to those of the 2008 Notes, which
additional notes shall increase the aggregate principal amount of, and
shall be consolidated and form a single series with, the 2008 Notes.
	 
	 	     16. Pursuant to the terms of the Registration Rights Agreement,
Holders of the Initial 2008 Notes shall be entitled to the benefits of
the Registration Rights Agreement, including the payment of Additional
Interest (as defined therein) on the terms and conditions as specified
therein.
	 
	 	     17. For the 2008 Notes, the covenant in Section 1009 of the
Indenture shall be changed by deleting the text following the heading
until the colon immediately preceding the first numbered paragraph and
replacing it with the following:

	 	 	 	“For so long as any Securities are outstanding, the
Company shall not, and shall not permit any of the
Restricted Subsidiaries to, incur, issue, assume or
create any Secured Debt, unless the Company provides
that the Securities will be secured equally and
ratably with, or prior to, that Secured Debt, unless,
taking into account the proposed Secured Debt, the sum
of the aggregate amount of all outstanding Secured
Debt of the Company and that of the Restricted
Subsidiaries plus all Attributable Debt relating to
any Principal Property, except for Attributable Debt
which is excluded as provided by clauses (i) through
(v) of Section 1010, would not exceed 15% of
Consolidated Net Tangible Assets; provided, however,
that this Section 1009 shall not apply to, and there
will be excluded from Secured Debt in any computation
under this Section 1009 and under Section 1010,
Indebtedness secured by:”

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2013 Notes

		
	 	     1. The designation of the Securities shall be the 6 1/2% Senior
Notes due 2013 (the “Initial 2013 Notes”) and the 6 1/2% Senior Notes due
2013 to be issued in exchange therefor as contemplated by the
Registration Rights Agreement, dated as of November 7, 2003 (the
“Registration Rights Agreement”), among the Company, Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities
Corp. (the “Exchange 2013 Notes” and, together with the Initial 2013
Notes, the “2013 Notes”). Unless the context otherwise requires, the
Initial 2013 Notes and the Exchange 2013 Notes shall constitute one
series for all purposes under the Indenture, including, without
limitation, amendments and waivers.
	 
	 	     2. The aggregate principal amount of the 2013 Notes initially shall
be limited to US$700,000,000 (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in
lieu of, other Securities of this series pursuant to Section 304, 305,
306, 906 or 1107 of the Indenture and except for any Securities which,
pursuant to Section 303 of the Indenture, are deemed never to have been
authenticated and delivered thereunder).
	 
	 	     3. Subject to the provisions of Section 307 of the Indenture,
interest will be payable to the Person in whose name a Note (or any
predecessor Note) is registered at the close of business on the Regular
Record Date for such interest.
	 
	 	     4. The principal amount of the 2013 Notes shall be payable in full
on November 1, 2013 subject to and in accordance with the provisions of
the Indenture and subject to paragraphs 7, 8 and 9 below.
	 
	 	     5. The 2013 Notes shall bear interest at the rate of 6 1/2% per
annum from the date hereof or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, payable
semi-annually on May 1 and November 1 of each year, commencing May 1,
2004, until the principal amount of the 2013 Notes has been paid or duly
provided for. April 15 and October 15 (whether or not a Business Day),
as the case may be, next preceding an Interest Payment Date shall be the
“Regular Record Date” for interest payable on such Interest Payment Date.
	 
	 	     6. The principal of, any premium and interest on the 2013 Notes
shall be payable at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York.
	 
	 	     7. The 2013 Notes may be redeemed by the Company as provided in
Section 1108 of the Indenture at a Redemption Price equal to 100% of the
principal amount of the 2013 Notes to be redeemed together with accrued
and unpaid interest on the principal amount of the 2013 Notes, if any,
and any other amounts due to the Redemption Date, if any.
	 
	 	     8. The 2013 Notes may be redeemed by the Company in whole or in
part, at the Company’s option, at any time and from time to time at a
Redemption Price

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	 	equal to the greater of (i) 100% of the principal amount of the 2013
Notes to be redeemed and (ii) the sum of the present values of the
Remaining Scheduled Payments discounted to the Redemption Date on a
semiannual basis, assuming a 360-day year consisting of twelve 30-day
months, at the Treasury Rate plus 35 basis points, together with, in each
case, accrued and unpaid interest on the principal amount of the 2013
Notes to be redeemed to the Redemption Date and any other amounts due to
the Redemption Date, if any. In connection with such optional
redemption, the following defined terms apply:
	 
	 	          “Comparable Treasury Issue” means the United States Treasury
security or securities selected by an Independent Investment Banker as
having an actual or interpolated (on a straight-line basis) maturity
comparable to the remaining term of the 2013 Notes to be redeemed that
would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of a comparable maturity to the remaining term of the 2013
Notes.
	 
	 	          “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.
	 
	 	          “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.
	 
	 	          “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities
Corp., or their affiliates which are primary U.S. Government securities
dealers, and their respective successors, and two other nationally
recognized investment banking firms that are primary U.S. Government
securities dealers in The City of New York (a “Primary Treasury Dealer”)
specified from time to time by the Company; provided, however, that if
any of the foregoing, or their affiliates, as the case may be, shall
cease to be a Primary Treasury Dealer, the Company shall substitute
therefor another Primary Treasury Dealer.
	 
	 	          “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Independent Investment Banker, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Independent
Investment Banker by such Reference Treasury Dealer at 3:30 p.m. New York
time on the third Business Day preceding such Redemption Date.
	 
	 	          “Remaining Scheduled Payments” means, with respect to each of the
2013 Notes to be redeemed, the remaining scheduled payments of principal
of and interest on such 2013 Notes that would be due after the related
Redemption Date but

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	 	for such redemption. If such Redemption Date is not an Interest
Payment Date with respect to such 2013 Notes, the amount of the next
succeeding scheduled interest payment on such 2013 Notes will be reduced
by the amount of interest accrued on such 2013 Notes to such Redemption
Date.
	 
	 	          “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that
represents the average for the immediately preceding
week, appearing in the most recently published
statistical release designated “H.15(519)” or any
successor publication that is published weekly by the
Board of Governors of the Federal Reserve System and
that establishes yields on actively traded U.S.
Treasury securities adjusted to constant maturity under
the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue
(if no maturity is within three months before or after
the remaining term of the 2013 Notes, yields for the
two published maturities most closely corresponding to
the Comparable Treasury Issue will be determined and
the Treasury Rate will be interpolated or extrapolated
from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor
release) is not published during the week preceding the
calculation date or does not contain such yields, the
rate per annum equal to the semiannual equivalent yield
to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such
Redemption Date.

		
	 	          The Treasury Rate will be calculated on the third Business Day
preceding the Redemption Date.
	 
	 	          Notice of any such optional redemption will be mailed at least 30
days but not more than 60 days before the Redemption Date to the Holders
of the 2013 Notes to be redeemed. On and after any Redemption Date,
interest will cease to accrue on the 2013 Notes or any portion thereof
called for redemption (unless the Company defaults in payment of the
Redemption Price). On or before any Redemption Date, the Company shall
deposit with a Paying Agent (or the Trustee) money sufficient to pay the
Redemption Price of and accrued interest on the 2013 Notes to be redeemed
on such date.
	 
	 	          The Redemption Price shall be calculated by the Independent
Investment Banker, and the Trustee and any Paying Agent for the 2013
Notes shall be entitled to rely on, and the Company and the Holders shall
be bound by, such calculation.

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	 	     9. Upon the earliest to occur for whatever reason of a Mandatory
Redemption Event, the Company will be required to redeem a portion of the
2013 Notes, at a Redemption Price equal to 102% of the principal amount
of the 2013 Notes to be redeemed, together with accrued and unpaid
interest on the principal amount of the 2013 Notes, if any, and any other
amounts due to the Redemption Date, if any, such that, following and
after giving effect to any such mandatory redemption, $200,000,000
aggregate principal amount of the 2013 Notes will remain outstanding.
The Redemption Date with respect to any such mandatory redemption will be
determined by the Company and must be within ten Business Days of the
applicable Mandatory Redemption Event. In connection with such mandatory
redemption, the following terms apply:
	 
	 	          “Applicable Credit Agreement” means the credit agreement to be
entered into or entered into among the Company and various financial
institutions, including affiliates of Morgan Stanley & Co. Incorporated,
Citigroup Global Markets Inc. and BNP Paribas Securities Corp., the
initial purchasers of the 2013 Notes (the “Initial Purchasers”), under a
commitment letter, dated July 15, 2003, as amended from time to time,
with affiliates of the Initial Purchasers pursuant to which those
affiliates have agreed to provide financing for the transactions
contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for
working capital requirements, or any alternative credit agreement thereto
entered into among the Company and affiliates of the Initial Purchasers,
in any case prior to the closing of the transactions contemplated by the
Asset Purchase Agreement and in each case as such agreement may be
amended from time to time.
	 
	 	          “Asset Purchase Agreement” means the Asset Purchase Agreement, dated
as of July 15, 2003, as amended from time to time (the “Asset Purchase
Agreement”), among the Company, Intelsat (Bermuda), Ltd., Loral Space &
Communications Corporation, as debtor and debtor-in-possession, Loral
SpaceCom Corporation, as debtor and debtor-in-possession and Loral
Satellite, Inc., as debtor and debtor-in-possession.
	 
	 	          “Mandatory Redemption Event” means any of the following: (i) the
Asset Purchase Agreement is terminated, (ii) the Applicable Credit
Agreement is not entered into by all the parties thereto or is terminated
at any time following its execution, in each case on or prior to April
30, 2004, (iii) the Company fails to meet any condition required for the
extension of loans under the Applicable Credit Agreement on or prior to
April 30, 2004 that in accordance with the terms of the Applicable Credit
Agreement must be satisfied, and that has not been waived, on or prior to
that date, or (iv) the closing of the transactions contemplated by the
Asset Purchase Agreement does not occur on or prior to April 30, 2004.
	 
	 	          Notice of any such mandatory redemption will be given at least one
Business Day before the Redemption Date to Holders of the 2013 Notes
subject to mandatory redemption and will specify the applicable Mandatory
Redemption Event.

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	 	On and after any Redemption Date, interest will cease to accrue on
that portion of the 2013 Notes called for redemption (unless the Company
defaults in payment of the Redemption Price). On or before any
Redemption Date, the Company shall deposit with a Paying Agent (or the
Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the 2013 Notes to be redeemed on such date.
	 
	 	          The time or circumstances upon which the 2013 Notes will be subject
to mandatory redemption may not be modified or changed in any manner
without the consent of the Holder of each outstanding 2013 Note.
	 
	 	     10. If less than all of the 2013 Notes are to be redeemed, the 2013
Notes to be redeemed shall be selected by the Trustee on a pro rata
basis, by lot or by such other method as the Trustee shall deem fair and
appropriate. No 2013 Notes of $1,000 in principal amount or less will be
redeemed in part. If the Company redeems any 2013 Notes in part, the
notice of redemption shall state the portion of the principal amount of
the 2013 Notes to be redeemed.
	 
	 	     11. The Company shall not be obligated to redeem or purchase the
2013 Notes pursuant to any sinking fund or analogous provisions or at the
option of the Holder thereof.
	 
	 	     12. The 2013 Notes may be issued in whole or in part in the form of
one or more Global Securities and in the form of one or more certificated
Securities. The initial Depositary for any such Global Securities shall
be The Depository Trust Company.
	 
	 	     13. The 2013 Notes shall be issued (i) in fully registered form
without interest coupons, in the form of beneficial interests in one or
more Global Notes in denominations of $1,000 or integral multiples
thereof or (ii) only in the case of 2013 Notes sold initially by the
Initial Purchasers to institutional accredited investors within the
meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act of 1933, as amended (the “Act”) who are not qualified
institutional buyers within the meaning of Rule 144 under the Act, in the
form of restricted Securities in certificated form in denominations of
$250,000 and any integral multiples of $1,000 in excess thereof. All of
the 2013 Notes shall be substantially in one of the forms attached hereto
as part of Annex B.
	 
	 	     14. The 2013 Notes shall be defeasible as provided in, and in
accordance with, Sections 1302 through 1306 of the Indenture.
	 
	 	     15. The Company may from time to time or at any time, without the
consent of the Holders of the 2013 Notes, issue additional notes with
terms and conditions identical to those of the 2013 Notes, which
additional notes shall increase the aggregate principal amount of, and
shall be consolidated and form a single series with, the 2013 Notes.

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	 	     16. Pursuant to the terms of the Registration Rights Agreement,
Holders of the Initial 2013 Notes shall be entitled to the benefits of
the Registration Rights Agreement, including the payment of Additional
Interest (as defined therein) on the terms and conditions as specified
therein.
	 
	 	     17. For the 2013 Notes, the covenant in Section 1009 of the
Indenture shall be changed by deleting the text following the heading
until the colon immediately preceding the first numbered paragraph and
replacing it with the following:

	 	 	 	“For so long as any Securities are outstanding, the
Company shall not, and shall not permit any of the
Restricted Subsidiaries to, incur, issue, assume or
create any Secured Debt, unless the Company provides
that the Securities will be secured equally and
ratably with, or prior to, that Secured Debt, unless,
taking into account the proposed Secured Debt, the sum
of the aggregate amount of all outstanding Secured
Debt of the Company and that of the Restricted
Subsidiaries plus all Attributable Debt relating to
any Principal Property, except for Attributable Debt
which is excluded as provided by clauses (i) through
(v) of Section 1010, would not exceed 15% of
Consolidated Net Tangible Assets; provided, however,
that this Section 1009 shall not apply to, and there
will be excluded from Secured Debt in any computation
under this Section 1009 and under Section 1010,
Indebtedness secured by:”

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	 	          All capitalized terms used but not defined herein shall have the meaning
set forth in the Indenture.
	 
	 	          IN WITNESS WHEREOF, the undersigned have signed this certificate.

Dated: November 7, 2003

	 	 	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 	 	 
	 	 	By:	 	      /s/ Conny Kullman
	 	 	 	 	

	 	 	 	 	Name:
	 	Conny Kullman
	 	 	 	 	Title:
	 	Chief Executive Officer
	 	 	 	 	 	 	 
	 	 	By:	 	      /s/ Joseph Corbett
	 	 	 	 	

	 	 	 	 	Name:
	 	Joseph Corbett
	 	 	 	 	Title:
	 	Executive Vice President and
	 	 	 	 	 	 	Chief Financial Officer

-13-

 

ANNEX A

FORMS OF 2008 NOTES

 

[FORM OF RESTRICTED GLOBAL 2008 NOTE]

          NEITHER THIS SECURITY NOR ANY BENEFICIAL INTEREST HEREIN HAS BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR
THE BENEFIT OF INTELSAT, LTD. (THE “ISSUER”) THAT THIS SECURITY MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE ISSUER, (2) SO LONG AS
THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) PURCHASING FOR ITS OWN
ACCOUNT OR THE ACCOUNT OF ONE OR MORE OTHER QUALIFIED INSTITUTIONAL BUYERS IN
ACCORDANCE WITH RULE 144A, (3) IN A MINIMUM PRINCIPAL AMOUNT OF $250,000 TO AN
INSTITUTIONAL ACCREDITED INVESTOR, AS DEFINED IN RULE 501(a)(1), (2), (3) OR
(7) UNDER REGULATION D UNDER THE SECURITIES ACT IN A TRANSACTION EXEMPT FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, (4) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S
UNDER THE SECURITIES ACT, (5) PURSUANT TO AN EXEMPTION FROM REGISTRATION IN
ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR (6)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT (IF
AVAILABLE), IN EACH SUCH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR OTHER JURISDICTIONS. THE HOLDER HEREOF,
BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE
ISSUER THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO ABOVE. SECURITIES OWNED BY AN INITIAL INSTITUTIONAL
ACCREDITED INVESTOR THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER, OR AN
INSTITUTIONAL ACCREDITED INVESTOR THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER
THAT ACQUIRES SECURITIES FROM SUCH AN INITIAL INSTITUTIONAL ACCREDITED
INVESTOR, MAY NOT BE HELD IN BOOK-ENTRY FORM. IN CONNECTION WITH ANY TRANSFER
OF THE SECURITY EVIDENCED HEREBY, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY
BE, MUST PROVIDE ANY CERTIFICATIONS REQUIRED BY OR PURSUANT TO THE INDENTURE TO
THE BANK OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE) AND,
AS THE CASE MAY BE, TO THE ISSUER. IF THE TRANSFEREE IS AN INSTITUTIONAL
ACCREDITED INVESTOR, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY BE, MUST,
PRIOR TO SUCH TRANSFER, FURNISH TO THE ISSUER AND THE BANK OF NEW YORK, AS
TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS REQUIRED BY OR PURSUANT TO THE INDENTURE OR AS
THEY MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE

(Face of Security continued on next page)

 

 

THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

(Face of Security continued on next page)

-2-

 

INTELSAT, LTD.

5 1/4% SENIOR NOTES DUE 2008

	 	 	 
	No.	 	
U.S.$
	CUSIP NO. 45820E AC 6	 	 

     Intelsat, Ltd., a company duly organized and existing under the laws of
Bermuda (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of [                  
Dollars] (U.S.$                  ]), or such
principal amount as may be set forth in the records of the Trustee hereinafter
referred to in accordance with the Indenture, on November 1, 2008, and to pay
interest thereon from November 7, 2003 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on May
1 and November 1 in each year, commencing May 1, 2004, at the rate of 5 1/4%
per annum, until the principal hereof is paid or made available for payment,
provided that Additional Interest (as defined below) may accrue on this
Security upon the occurrence of a Registration Default (as defined below). The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the April 15 or October 15 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Any such interest not
so punctually paid or duly provided for will forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest
and other amounts due on this Security will be made at the office or agency of
the Company maintained for that purpose in New York, New York, and at such
other office or agency of the Company as may be maintained for such purpose, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company and subject to the next paragraph payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding
any other provision of this security or the Indenture, if this Security is a
Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

     Subject to the preceding paragraph, payment of any amount payable on this
Security will be made by wire transfer of immediately available funds to an
account maintained by the payee with a bank located in the Borough of
Manhattan, The City of New York, if (i) the principal of this Security is at
least U.S.$1,000,000 and (ii) the Holder entitled to receive such payment
transmits a written request for such payment to be made in such manner to the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration – Global Finance Unit, on or

(Face of Security continued on next page)

-3-

 

before the fifth Business Day before the day on which such payment is to
be made; provided that, in the case of any such payment due at the Maturity of
the principal hereof (other than any payment of interest that first becomes due
on an Interest Payment Date), this Security must be surrendered at the office
or agency of the Company maintained for that purpose in The City of New York
(or at any other office or agency maintained by the Company for that purpose)
in time for the Paying Agent to make such payment in such funds in accordance
with its normal procedures. Any such request made with respect to any payment
on this Security payable to a particular Holder will remain in effect for all
later payments on this Security payable to such Holder, unless such request is
revoked on or before the fifth Business Day before a payment is to be made, in
which case such revocation shall be effective for such payment and all later
payments. In the case of any payment of interest payable on an Interest
Payment Date, such written request must be made by the Person that is the
registered Holder of this Security on the relevant Regular Record Date. The
Company will pay any administrative costs imposed by banks in connection with
making payments by wire transfer with respect to this Security, but any tax,
assessment or other governmental charge imposed upon any payment will be borne
by the Holder of this Security and may be deducted from the payment by the
Company or the Paying Agent.

     The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of November 7, 2003 (the “Registration
Rights Agreement”), among the Company, Morgan Stanley & Co. Incorporated,
Citigroup Global Markets Inc. and BNP Paribas Securities Corp., pursuant to
which the Company will be obligated to file a registration statement under the
Securities Act registering securities in like principal amount and having
substantially identical terms as this Security (the “Exchange Notes”) and to
consummate an exchange offer (the “Exchange Offer”) pursuant to which the
Holder of this Security shall have the right to exchange this Security for
Exchange Notes or, if applicable, to file a registration statement registering
this Security for resale (the “Shelf Registration Statement”). If (1) the
Company fails to file the Exchange Offer registration statement on or prior to
the 240th calendar day after the issue date of this Security or fails to file a
Shelf Registration Statement on or prior to the 240th calendar day after the
date the Shelf Registration Statement is required to be filed pursuant to the
Registration Rights Agreement; or (2) any of the Exchange Offer registration
statement or the Shelf Registration Statement is not declared effective by the
Securities and Exchange Commission (A) in the case of the Exchange Offer
registration statement, on or prior to the 300th calendar day after November 7,
2003 or (B) in the case of the Shelf Registration Statement, on or prior to the
360th calendar day after the date the Shelf Registration Statement is required
to be filed pursuant to the Registration Rights Agreement; or (3) the Company
fails to consummate the Exchange Offer on or prior to the 340th calendar day
after the issue date of this Security (each event referred to in clauses (1)
through (3), a “Registration Default”), then additional interest will accrue in
respect of this Security from and including the next calendar day following
each of (a) such 240 day period in the case of clause (1) above, (b) such 300
day period in the case of clause (2) (A) above or such 360 day period in the
case of clause (2)(B) above and (c) such 340 day period in the case of clause
(3) above, in each case at a rate equal to 0.25% per annum (“Additional
Interest”). The aggregate amount of the Additional Interest in respect of this
Security will in no event exceed 0.25% per annum. All accrued Additional
Interest will be paid to Holders in the same manner as interest is paid under
this Security. Following the cure of all Registration Defaults, the accrual of
Additional Interest will cease.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

(Face of Security continued on next page)

-4-

 

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

     In Witness Whereof, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:

Attest:

Name:

Title:

     This is one of the Securities of the series designated herein and referred
to in the Indenture.

Dated:

	 	 	 	 	 
	 	 	
THE BANK OF NEW YORK, as Trustee
	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

	 	 	 	 	
Authorized Officer

 

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 1, 2002 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially
limited in aggregate principal amount to U.S.$400,000,000 (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of this series pursuant to
Section 304, 305, 306, 906 or 1107 of the Indenture and except for any
Securities which, pursuant to Section 303 of the Indenture, are deemed never to
have been authenticated and delivered thereunder).

     The Securities may be redeemed by the Company (i) as provided in Section
1108 of the Indenture and (ii) in whole or in part, at its option at any time
and from time to time at a Redemption Price equal to the greater of (A) 100% of
the principal amount of the Securities to be redeemed and (B) the sum of the
present values of the Remaining Scheduled Payments discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 30 basis points, together with, in
each case, accrued interest on the principal amount of the Securities to be
redeemed to the date of redemption. In connection with such optional
redemption the following defined terms apply:

     “Comparable Treasury Issue” means the United States Treasury security or
securities selected by an Independent Investment Banker as having an actual or
interpolated (on a straight-line basis) maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to the remaining
term of such Securities.

     “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.

     “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities Corp.,
or their affiliates which are primary U.S. Government securities dealers, and
their respective successors, and two other nationally recognized investment
banking firms that are primary U.S. Government securities dealers in The City
of New York (a “Primary Treasury Dealer”) specified from time to time by the
Company; provided, however, that if any of the foregoing, or their affiliates,
as the case may

(Reverse of Security continued on next page)

-6-

 

be, shall cease to be a Primary Treasury Dealer, the Company shall
substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of principal of and interest on such
Security that would be due after the related Redemption Date but for such
redemption. If such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest
payment on such Security will be reduced by the amount of interest accrued on
such Security to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any
successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields
on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining term
of the Securities, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

     The Treasury Rate will be calculated on the third Business Day preceding
the Redemption Date.

     Notice of any such redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to the Holders of the Securities to be
redeemed. On and after any Redemption Date, interest will cease to accrue on
the Securities or any portion thereof called for redemption unless the Company
defaults in the payment of the Redemption Price. On or before any Redemption
Date, the Company shall deposit with a Paying Agent (or the Trustee) money

(Reverse of Security continued on next page)

-7-

 

sufficient to pay the Redemption Price of and accrued interest on the
Securities to be redeemed on such date.

     The Redemption Price shall be calculated by the Independent Investment
Banker, and the Company, the Trustee and any Paying Agent for the Securities
shall be entitled to rely on, and the Company and the Holders shall be bound
by, such calculation.

     Upon the earliest to occur for whatever reason of a Mandatory Redemption
Event, the Company will be required to redeem a portion of this Security, at a
Redemption Price equal to 102% of the principal amount of the portion of this
Security to be redeemed, together with accrued and unpaid interest on the
principal amount of this Security, if any, and any other amounts due to the
Redemption Date, if any, such that, following and after giving effect to any
such mandatory redemption, $200,000,000 aggregate principal amount of the
Securities will remain outstanding. The Redemption Date with respect to any
such mandatory redemption will be determined by the Company and must be within
ten Business Days of the applicable Mandatory Redemption Event. In connection
with such mandatory redemption, the following terms apply:

     “Applicable Credit Agreement” means the credit agreement to be entered
into or entered into among the Company and various financial institutions,
including affiliates of Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and BNP Paribas Securities Corp., the initial purchasers of this
Security (the “Initial Purchasers”), under a commitment letter dated July 15,
2003, as amended from time to time, with affiliates of the Initial Purchasers
pursuant to which those affiliates have agreed to provide financing for the
transactions contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for working
capital requirements, or any alternative credit agreement thereto entered into
among the Company and affiliates of the Initial Purchasers, in any case prior
to the closing of the transactions contemplated by the Asset Purchase Agreement
and in each case as such agreement may be amended from time to time.

     “Asset Purchase Agreement” means the Asset Purchase Agreement, dated as of
July 15, 2003, as amended from time to time (the “Asset Purchase Agreement”),
among the Company, Intelsat (Bermuda), Ltd., Loral Space & Communications
Corporation, as debtor and debtor-in-possession, Loral SpaceCom Corporation, as
debtor and debtor-in-possession and Loral Satellite, Inc., as debtor and
debtor-in-possession.

     “Mandatory Redemption Event” means any of the following: (i) the Asset
Purchase Agreement is terminated, (ii) the Applicable Credit Agreement is not
entered into by all the parties thereto or is terminated at any time following
its execution, in each case on or prior to April 30, 2004, (iii) the Company
fails to meet any condition required for the extension of loans under the
Applicable Credit Agreement on or prior to April 30, 2004 that in accordance
with the terms of the Applicable Credit Agreement must be satisfied, and that
has not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur on or
prior to April 30, 2004.

     Notice of any such mandatory redemption shall be provided to the Holders
of this Security at least one Business Day before the Redemption Date and will
specify the applicable

(Reverse of Security continued on next page)

-8-

 

Mandatory Redemption Event. On and after any Redemption Date, interest
will cease to accrue on the portion of this Security called for redemption
unless the Company defaults in the payment of the Redemption Price. On or
before any Redemption Date, the Company shall deposit with a Paying Agent (or
the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the Securities to be redeemed on such date.

     If less than all of the Securities are to be redeemed, the Securities to
be redeemed shall be selected by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee shall deem fair and appropriate. No
Securities of $1,000 in principal amount or less will be redeemed in part. If
the Company redeems Securities in part, the notice of redemption shall state
the portion of the principal amount of the Securities to be redeemed.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Company shall not be obligated to redeem or purchase the Securities
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof.

     All payments of principal and interest in respect of the Securities shall
be made without withholding or deduction for any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or on behalf of (i) Bermuda, any political
subdivision of Bermuda or any authority therein or thereof, or (ii) any other
jurisdiction (a “Relevant Jurisdiction”) as a result of the Company’s being
organized in or moving the Company’s principal office to such jurisdiction
(“Taxes”), except to the extent that such Taxes are required by Bermuda, any
such political subdivision or authority, or any such Relevant Jurisdiction, to
be withheld or deducted. In the event of any withholding or deduction for any
Taxes, the Company shall pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of Securities on the respective due dates
of such amounts as would have been received by them had no such withholding or
deduction (including for any Taxes payable in respect of Additional Amounts)
been required, except that no such Additional Amounts shall be payable with
respect to any payment on a Security to the extent:

	 	(i)	 	that any such taxes, duties, assessments or other
governmental charges would not have been imposed but for a
connection between the Holder and the jurisdiction imposing the
Taxes other than the holding of such Security and the receipt of
payments with respect to such Security;
	 
	 	(ii)	 	of estate, inheritance, gift or any similar tax, assessment
or other governmental charge imposed with respect to a Security;
	 
	 	(iii)	 	any such taxes, duties, assessments or other governmental
charges that would not have been imposed but for the failure of the
Holder or beneficial owner of such Security to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such
Security, if (a) compliance is required by law or by an applicable
income tax treaty to which

(Reverse of Security continued on next page)

-9-

 

	 	 	 	the jurisdiction imposing the Taxes is a party as a precondition
to exemption from such taxes, duties, assessments or other
governmental charges, and (b) at least 60 days prior to the first
payment date with respect to which the Company shall apply this
clause (iii), the Company shall have notified all the Holders, in
writing, that such Holders or beneficial owners of the Security
will be required to provide such information or documentation; or
	 
	 	(iv)	 	of any such taxes, duties, assessments or other governmental
charges with respect to a Security presented for payment more than
30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for and notice
thereof given to Holders, whichever occurs later, except to the
extent that the Holder of such Security would have been entitled to
such Additional Amounts on presenting such Security for payment on
any date during such 30-day period.

     The Company shall provide the Trustee with documentation (which may
consist of certified copies of such documentation) satisfactory to the Trustee
evidencing the payment of Taxes in respect of which the Company has paid any
Additional Amounts. Copies of such documentation shall be made available to
the Holders of the Securities or the Paying Agent, as applicable, upon request
therefor.

     The Company shall pay all stamp and other duties, if any, which may be
imposed by Bermuda, the United States of America or any other governmental
entity or political subdivision therein or thereof, or any taxing authority of
or in any of the foregoing, with respect to the Indenture or the issuance of
the Securities.

     If, as a result of any amendment to, or change in, the laws (or any
regulation or rulings promulgated thereunder) of Bermuda, any political
subdivision of Bermuda or any taxing authority thereof or therein, or of any
Relevant Jurisdiction, affecting taxation, or any amendment to, or change in,
an official interpretation or application regarding such laws, regulations or
rulings, which change, amendment, application or interpretation becomes
effective or is announced after the Issue Date, the Company would be obligated,
for reasons outside its control, to pay on the next succeeding Interest Payment
Date Additional Amounts in respect of interest payments on the Securities
pursuant to the terms and conditions of Section 1008 of the Indenture, and if
such obligation cannot be avoided by the Company after taking reasonable
measures to avoid it, then, at the Company’s option, the Securities may be
redeemed in whole, but not in part, at any time, on giving not less than 35 nor
more than 65 days’ written notice to the Trustee (unless a shorter notice
period shall be acceptable to the Trustee for its convenience) and not less
than 30 nor more than 60 days’ notice to the Holders of Securities, at a
Redemption Price equal to 100% of the principal amount thereof, together with
accrued interest to the Redemption Date and any Additional Amounts which would
otherwise be payable; provided, however, that (1) no notice of such redemption
may be given earlier than 90 days prior to the earliest date on which the
Company would but for such redemption be obligated to pay such Additional
Amounts, and (2) at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect.

(Reverse of Security continued on next page)

-10-

 

     Before any written notice of redemption pursuant to the preceding
paragraph is given to the Trustee or the Holders, the Company shall deliver to
the Trustee (i) an Officers’ Certificate to the effect that the Company’s
obligations to pay such Additional Amounts cannot be avoided by the Company
taking reasonable measures available to it and (ii) an opinion of independent
legal counsel or an independent auditor (which can be the Company’s regular
independent accountants or other independent accountants of recognized standing
and reasonably satisfactory to the Trustee) of the Company to the effect that
the Company would be obligated to pay Additional Amounts in respect of interest
payments on the Securities because of any amendment to or change in laws of the
kind referred to above. The Trustee will accept such certificate and opinion
as sufficient evidence of the satisfaction of the conditions precedent
described in the preceding paragraph (subject to the proviso thereto), in which
event it will be conclusive and binding on the Holders. Any such notice of
redemption, once given to the Holders, shall be irrevocable.

     Except as otherwise provided herein or in the Indenture, the Securities
that are offered and sold to institutions that are “accredited investors”
within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that are not also Qualified Institutional Buyers shall be issued
in the names of their initial beneficial owners and delivered to such Holders.

     In connection with any transfer of an interest in this Security by a
Holder to a transferee that is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that is not also a Qualified Institutional Buyer, the transferee
will be required to furnish to the Trustee, as Security Registrar, and the
Company, prior to the transfer, a signed letter, the form of which is contained
in Annex A hereto and which may be obtained from the Trustee, containing, among
other things, representations and agreements relating to the transferee’s
status as an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act and
acknowledging the restrictions on transfer of the Securities, and the Holder,
at the Company’s request, will be required, prior to such transfer, to provide
the Company and the Trustee, as Security Registrar, with an opinion of counsel
reasonably acceptable to the Company, addressed to the Company and in form
acceptable to the Company, to the effect that the transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and is otherwise in compliance
with the transfer restrictions applicable to the Securities that the Holder
seeks to transfer.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time Outstanding of all series to be affected (considered together as
one class for

(Reverse of Security continued on next page)

-11-

 

this purpose). The Indenture also contains provisions (i) permitting the
Holders of a majority in principal amount of the Securities at the time
Outstanding of all series to be affected under the Indenture (considered
together as one class for this purpose), on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and (ii) permitting the Holders of a majority in
principal amount of the Securities at the time Outstanding of any series to be
affected under the Indenture (with each such series considered separately for
this purpose), on behalf of the Holders of all Securities of such series, to
waive certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee security or indemnity
reasonably satisfactory to the Trustee, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

     Subject to certain limitations in the Indenture, at any time when the
Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), nor exempt from reporting requirements
pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder
of a Security or of a beneficial owner of an interest in a Global Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information
(as defined below) to such Holder or beneficial owner, or to a prospective
purchaser of a Security or a beneficial interest in a Global Security
designated by such Holder or beneficial owner of such interest in order to
permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act of 1933, as amended. “Rule 144A Information” shall be such
information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any
successor provision thereto), as such provision (or successor provision) may be
amended from time to time.

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

(Reverse of Security continued on next page)

-12-

 

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of U.S.$1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

-13-

 

ANNEX A

FORM OF ACCREDITED INVESTOR LETTER

The Bank of New York

101 Barclay Street

Floor 21

New York, NY 10286

Intelsat, Ltd.

North Tower, 2nd Floor

90 Pitts Bay Road

Pembroke HM 08, Bermuda

Dear Sirs and Madams:

     Reference is hereby made to the Indenture, dated as of April 1, 2002 (the
“Indenture”), between Intelsat, Ltd. (the “Company”) and The Bank of New York,
as Trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     We are delivering this letter in connection with our proposed purchase of
5 1/4% Senior Notes due 2008 (the “2008 notes”) of the Company.

     We hereby represent, agree and confirm that:

	 	i)	 	we are an institutional “accredited investor” within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act
of 1933, as amended (the “Securities Act”) (an “institutional
accredited investor”);
	 
	 	ii)	 	any purchase of the 2008 notes by us will be for our own
account or for the account of one or more other institutional
investors for which we exercise sole investment discretion (and any
such institutional investors with such accounts are also
institutional accredited investors);
	 
	 	iii)	 	we have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and
risks of purchasing the 2008 notes, and we are able to bear the
economic risks of our investment;
	 
	 	iv)	 	in the event that we purchase any of the 2008 notes, we (and
any separate account for which we are acting) will purchase at least
$250,000 aggregate principal amount of 2008 notes;
	 
	 	v)	 	we are not acquiring the 2008 notes with a view to, or for
offer or sale in connection with, any distribution in violation of
the Securities Act; provided that the disposition of our property
and the property of any accounts for which we are acquiring 2008
notes shall remain at all times within our control;
	 
	 	vi)	 	we agree that if in the future we decide to offer, resell,
pledge or otherwise transfer 2008 notes, we will do so only (i) to
the Company, (ii) for so long as the securities

A-1 

 

	 	 	 	are eligible for resale pursuant to Rule 144A, to a person that we
reasonably believe is a qualified institutional buyer acquiring the
2008 notes for its own account or for the account of one or more
other qualified institutional buyers in a transaction meeting the
requirements of Rule 144A, (iii) to an institutional accredited
investor that, prior to the transfer, furnishes to the Company and
the trustee a signed letter, the form of which may be obtained from
the trustee, containing, among other things, representations and
agreements relating to the transferee’s status as an institutional
accredited investor and acknowledging the restrictions on transfer of
the 2008 notes, provided that we must provide the Company and the
trustee with an opinion of counsel reasonably acceptable to the
Company, in form acceptable to the Company, to the effect that the
transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act, and further provided that the transferee purchases at
least $250,000 in aggregate principal amount of 2008 notes from us,
(iv) in an offshore transaction meeting the requirements of Rule 903
or Rule 904 of Regulation S under the Securities Act, (v) pursuant to
an exemption from registration under the Securities Act provided by
Rule 144 under the Securities Act (if available) or (vi) pursuant to
an effective registration statement under the Securities Act, in each
case in accordance with any applicable securities laws of any state
of the United States and any other jurisdiction. We understand
that, prior to any transfer referred to in clauses (ii), (iii), (iv)
or (v) of the preceding sentence, we must furnish to the trustee such
certifications, legal opinions and other information as the Company
may reasonably require to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act. We agree to
notify any subsequent purchaser of 2008 notes from us of the transfer
restriction to which the 2008 notes are subject at the time, if
applicable; and
	 
	 	vii)	 	we either (A) are not an employee benefit plan or other plan
or arrangement, including individual retirement accounts and
annuities, Keogh plans and collective investment funds or insurance
company general or separate accounts in which such plans, accounts
or arrangements are invested, that are subject to the fiduciary
responsibility provisions of the Employee Retirement Income Security
Act of 1974, as amended, referred to as ERISA, and/or Section 4975
of the Internal Revenue Code of 1986, as amended, referred to as the
Code, all of such plans or arrangements referred to collectively as
a plan, or a person investing assets of a plan or any entity whose
underlying assets include assets of a plan by reason of a plan’s
investment in the entity, or (B) represent that the purchase and
holding of the 2008 notes or any interest therein are exempt from
the prohibited transaction restrictions of ERISA and the Code
pursuant to one or more prohibited transaction statutory or
administrative exemptions.

     We acknowledge and understand that you and others will rely upon our
confirmations, acknowledgments and agreements set forth herein, and we agree to
notify you promptly in writing if any of our representations or warranties
herein ceases to be accurate and complete.

A-2 

 

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

	 	 	 	 	 
	Date:	 	 
	
	 	 
	 	 	Very truly yours,
	 	 	 	 	 
	 	 	

(Name of Purchaser)
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	
Name:	 	 
	 	 	 	 	

	 	 	
Title:	 	 
	 	 	 	 	

	 	 	
Address:	 	 
	 	 	 	 	

A-3 

 

[FORM OF REGULATION S GLOBAL 2008 NOTE]

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE ''SECURITIES ACT’’) AND, PRIOR TO THE EXPIRATION
OF FORTY DAYS FROM THE LATER OF (1) THE DATE ON WHICH THESE SECURITIES WERE
FIRST OFFERED AND (2) THE DATE OF ISSUANCE OF THESE SECURITIES, MAY NOT BE
OFFERED, SOLD OR DELIVERED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, ANY U.S. PERSON EXCEPT (1) TO A PERSON WHO THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF ONE OR MORE
OTHER QUALIFIED INSTITUTIONAL BUYERS IN ACCORDANCE WITH RULE 144A OR (2) IN A
MINIMUM PRINCIPAL AMOUNT OF $250,000 TO AN INSTITUTIONAL ACCREDITED INVESTOR,
AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER REGULATION D UNDER THE
SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, OR (3) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903
OR 904 OF REGULATION S OR RULE 144 UNDER THE SECURITIES ACT. THE HOLDER
HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF
THE ISSUER THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE. IN CONNECTION WITH ANY TRANSFER OF THE
SECURITY EVIDENCED HEREBY, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY BE,
MUST PROVIDE ANY CERTIFICATIONS REQUIRED BY OR PURSUANT TO THE INDENTURE TO THE
BANK OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE) AND, AS
THE CASE MAY BE, TO THE ISSUER. IF THE TRANSFEREE IS AN INSTITUTIONAL
ACCREDITED INVESTOR, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY BE, MUST,
PRIOR TO SUCH TRANSFER, FURNISH TO THE ISSUER AND THE BANK OF NEW YORK, AS
TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS REQUIRED BY OR PURSUANT TO THE INDENTURE OR AS
THEY MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN

(Face of Security continued on next page)

 

 

AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

(Face of Security continued on next page)

-2-

 

INTELSAT, LTD.

5 1/4% SENIOR NOTES DUE 2008

	 	 	 
	No.	 	
U.S.$
	CUSIP NO. G4803J AB 8	 	 

     Intelsat, Ltd., a company duly organized and existing under the laws of
Bermuda (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of           
Dollars (U.S.$            
), or such principal amount as may be set forth in the records of the Trustee
hereinafter referred to in accordance with the Indenture, on November 1, 2008,
and to pay interest thereon from November 7, 2003 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on May 1 and November 1 in each year, commencing May 1, 2004, at
the rate of 5 1/4% per annum, until the principal hereof is paid or made
available for payment, provided that Additional Interest (as defined below) may
accrue on this Security upon the occurrence of a Registration Default (as
defined below). The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the April 15 or October 15 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest
and other amounts due on this Security will be made at the office or agency of
the Company maintained for that purpose in New York, New York, and at such
other office or agency of the Company as may be maintained for such purpose, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company and subject to the next paragraph payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding
any other provision of this security or the Indenture, if this Security is a
Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

     Subject to the preceding paragraph, payment of any amount payable on this
Security will be made by wire transfer of immediately available funds to an
account maintained by the payee with a bank located in the Borough of
Manhattan, The City of New York, if (i) the principal of this Security is at
least U.S.$1,000,000 and (ii) the Holder entitled to receive such payment
transmits a written request for such payment to be made in such manner to the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration – Global Finance Unit, on or

(Face of Security continued on next page)

-3-

 

before the fifth Business Day before the day on which such payment is to
be made; provided that, in the case of any such payment due at the Maturity of
the principal hereof (other than any payment of interest that first becomes due
on an Interest Payment Date), this Security must be surrendered at the office
or agency of the Company maintained for that purpose in The City of New York
(or at any other office or agency maintained by the Company for that purpose)
in time for the Paying Agent to make such payment in such funds in accordance
with its normal procedures. Any such request made with respect to any payment
on this Security payable to a particular Holder will remain in effect for all
later payments on this Security payable to such Holder, unless such request is
revoked on or before the fifth Business Day before a payment is to be made, in
which case such revocation shall be effective for such payment and all later
payments. In the case of any payment of interest payable on an Interest
Payment Date, such written request must be made by the Person that is the
registered Holder of this Security on the relevant Regular Record Date. The
Company will pay any administrative costs imposed by banks in connection with
making payments by wire transfer with respect to this Security, but any tax,
assessment or other governmental charge imposed upon any payment will be borne
by the Holder of this Security and may be deducted from the payment by the
Company or the Paying Agent.

     The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of November 7, 2003 (the “Registration
Rights Agreement”), among the Company, Morgan Stanley & Co. Incorporated,
Citigroup Global Markets Inc. and BNP Paribas Securities Corp., pursuant to
which the Company will be obligated to file a registration statement under the
Securities Act registering securities in like principal amount and having
substantially identical terms as this Security (the “Exchange Notes”) and to
consummate an exchange offer (the “Exchange Offer”) pursuant to which the
Holder of this Security shall have the right to exchange this Security for
Exchange Notes or, if applicable, to file a registration statement registering
this Security for resale (the “Shelf Registration Statement”). If (1) the
Company fails to file the Exchange Offer registration statement on or prior to
the 240th calendar day after the issue date of this Security or fails to file a
Shelf Registration Statement on or prior to the 240th calendar day after the
date the Shelf Registration Statement is required to be filed pursuant to the
Registration Rights Agreement; or (2) any of the Exchange Offer registration
statement or the Shelf Registration Statement is not declared effective by the
Securities and Exchange Commission (A) in the case of the Exchange Offer
registration statement, on or prior to the 300th calendar day after November 7,
2003 or (B) in the case of the Shelf Registration Statement, on or prior to the
360th calendar day after the date the Shelf Registration Statement is required
to be filed pursuant to the Registration Rights Agreement; or (3) the Company
fails to consummate the Exchange Offer on or prior to the 340th calendar day
after the issue date of this Security (each event referred to in clauses (1)
through (3), a “Registration Default”), then additional interest will accrue in
respect of this Security from and including the next calendar day following
each of (a) such 240 day period in the case of clause (1) above, (b) such 300
day period in the case of clause (2) (A) above or such 360 day period in the
case of clause (2)(B) above and (c) such 340 day period in the case of clause
(3) above, in each case at a rate equal to 0.25% per annum (“Additional
Interest”). The aggregate amount of the Additional Interest in respect of this
Security will in no event exceed 0.25% per annum. All accrued Additional
Interest will be paid to Holders in the same manner as interest is paid under
this Security. Following the cure of all Registration Defaults, the accrual of
Additional Interest will cease.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

(Face of Security continued on next page)

-4-

 

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

     In Witness Whereof, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Attest:	 	 	 	 
	 	 	 	 	 
	
	 	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 

     This is one of the Securities of the series designated herein and referred
to in the Indenture.

Dated:

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

	 	 	 	 	              Authorized Officer

 

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 1, 2002 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially
limited in aggregate principal amount to U.S.$400,000,000 (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of this series pursuant to
Section 304, 305, 306, 906 or 1107 of the Indenture and except for any
Securities which, pursuant to Section 303 of the Indenture, are deemed never to
have been authenticated and delivered thereunder).

     The Securities may be redeemed by the Company (i) as provided in Section
1108 of the Indenture and (ii) in whole or in part, at its option at any time
and from time to time at a Redemption Price equal to the greater of (A) 100% of
the principal amount of the Securities to be redeemed and (B) the sum of the
present values of the Remaining Scheduled Payments discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 30 basis points, together with, in
each case, accrued interest on the principal amount of the Securities to be
redeemed to the date of redemption. In connection with such optional
redemption the following defined terms apply:

     “Comparable Treasury Issue” means the United States Treasury security or
securities selected by an Independent Investment Banker as having an actual or
interpolated (on a straight-line basis) maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to the remaining
term of such Securities.

     “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.

     “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities Corp.,
or their affiliates which are primary U.S. Government securities dealers, and
their respective successors, and two other nationally recognized investment
banking firms that are primary U.S. Government securities dealers in The City
of New York (a “Primary Treasury Dealer”) specified from time to time by the
Company; provided, however, that if any of the foregoing, or their affiliates,
as the case may

(Reverse of Security continued on next page)

-6-

 

be, shall cease to be a Primary Treasury Dealer, the Company shall
substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of principal of and interest on such
Security that would be due after the related Redemption Date but for such
redemption. If such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest
payment on such Security will be reduced by the amount of interest accrued on
such Security to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any
successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields
on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining term
of the Securities, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

     The Treasury Rate will be calculated on the third Business Day preceding
the Redemption Date.

     Notice of any such redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to the Holders of the Securities to be
redeemed. On and after any Redemption Date, interest will cease to accrue on
the Securities or any portion thereof called for redemption unless the Company
defaults in the payment of the Redemption Price. On or before any Redemption
Date, the Company shall deposit with a Paying Agent (or the Trustee) money

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-7-

 

sufficient to pay the Redemption Price of and accrued interest on the
Securities to be redeemed on such date.

     The Redemption Price shall be calculated by the Independent Investment
Banker, and the Company, the Trustee and any Paying Agent for the Securities
shall be entitled to rely on, and the Company and the Holders shall be bound
by, such calculation.

     Upon the earliest to occur for whatever reason of a Mandatory Redemption
Event, the Company will be required to redeem a portion of this Security, at a
Redemption Price equal to 102% of the principal amount of the portion of this
Security to be redeemed, together with accrued and unpaid interest on the
principal amount of this Security, if any, and any other amounts due to the
Redemption Date, if any, such that, following and after giving effect to any
such mandatory redemption, $200,000,000 aggregate principal amount of the
Securities will remain outstanding. The Redemption Date with respect to any
such mandatory redemption will be determined by the Company and must be within
ten Business Days of the applicable Mandatory Redemption Event. In connection
with such mandatory redemption, the following terms apply:

     “Applicable Credit Agreement” means the credit agreement to be entered
into or entered into among the Company and various financial institutions,
including affiliates of Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and BNP Paribas Securities Corp., the initial purchasers of this
Security (the “Initial Purchasers”), under a commitment letter dated July 15,
2003, as amended from time to time, with affiliates of the Initial Purchasers
pursuant to which those affiliates have agreed to provide financing for the
transactions contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for working
capital requirements, or any alternative credit agreement thereto entered into
among the Company and affiliates of the Initial Purchasers, in any case prior
to the closing of the transactions contemplated by the Asset Purchase Agreement
and in each case as such agreement may be amended from time to time.

     “Asset Purchase Agreement” means the Asset Purchase Agreement, dated as of
July 15, 2003, as amended from time to time (the “Asset Purchase Agreement”),
among the Company, Intelsat (Bermuda), Ltd., Loral Space & Communications
Corporation, as debtor and debtor-in-possession, Loral SpaceCom Corporation, as
debtor and debtor-in-possession and Loral Satellite, Inc., as debtor and
debtor-in-possession.

     “Mandatory Redemption Event” means any of the following: (i) the Asset
Purchase Agreement is terminated, (ii) the Applicable Credit Agreement is not
entered into by all the parties thereto or is terminated at any time following
its execution, in each case on or prior to April 30, 2004, (iii) the Company
fails to meet any condition required for the extension of loans under the
Applicable Credit Agreement on or prior to April 30, 2004 that in accordance
with the terms of the Applicable Credit Agreement must be satisfied, and that
has not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur on or
prior to April 30, 2004.

     Notice of any such mandatory redemption shall be provided to the Holders
of this Security at least one Business Day before the Redemption Date and will
specify the applicable

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-8-

 

Mandatory Redemption Event. On and after any Redemption Date, interest
will cease to accrue on the portion of this Security called for redemption
unless the Company defaults in the payment of the Redemption Price. On or
before any Redemption Date, the Company shall deposit with a Paying Agent (or
the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the Securities to be redeemed on such date.

     If less than all of the Securities are to be redeemed, the Securities to
be redeemed shall be selected by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee shall deem fair and appropriate. No
Securities of $1,000 in principal amount or less will be redeemed in part. If
the Company redeems Securities in part, the notice of redemption shall state
the portion of the principal amount of the Securities to be redeemed.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Company shall not be obligated to redeem or purchase the Securities
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof.

     All payments of principal and interest in respect of the Securities shall
be made without withholding or deduction for any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or on behalf of (i) Bermuda, any political
subdivision of Bermuda or any authority therein or thereof, or (ii) any other
jurisdiction (a “Relevant Jurisdiction”) as a result of the Company’s being
organized in or moving the Company’s principal office to such jurisdiction
(“Taxes”), except to the extent that such Taxes are required by Bermuda, any
such political subdivision or authority, or any such Relevant Jurisdiction, to
be withheld or deducted. In the event of any withholding or deduction for any
Taxes, the Company shall pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of Securities on the respective due dates
of such amounts as would have been received by them had no such withholding or
deduction (including for any Taxes payable in respect of Additional Amounts)
been required, except that no such Additional Amounts shall be payable with
respect to any payment on a Security to the extent:

	 	(i)	 	that any such taxes, duties, assessments or other
governmental charges would not have been imposed but for a
connection between the Holder and the jurisdiction imposing the
Taxes other than the holding of such Security and the receipt of
payments with respect to such Security;
	 
	 	(ii)	 	of estate, inheritance, gift or any similar tax, assessment or
other governmental charge imposed with respect to a Security;
	 
	 	(iii)	 	any such taxes, duties, assessments or other governmental
charges that would not have been imposed but for the failure of the
Holder or beneficial owner of such Security to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such
Security, if (a) compliance is required by law or by an applicable
income tax treaty to which the

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-9-

 

	 	 	 	jurisdiction imposing the Taxes is a party as a precondition to
exemption from such taxes, duties, assessments or other
governmental charges, and (b) at least 60 days prior to the first
payment date with respect to which the Company shall apply this
clause (iii), the Company shall have notified all the Holders, in
writing, that such Holders or beneficial owners of the Security
will be required to provide such information or documentation; or
	 
	 	(iv)	 	of any such taxes, duties, assessments or other governmental
charges with respect to a Security presented for payment more than
30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for and notice
thereof given to Holders, whichever occurs later, except to the
extent that the Holder of such Security would have been entitled to
such Additional Amounts on presenting such Security for payment on
any date during such 30-day period.

     The Company shall provide the Trustee with documentation (which may
consist of certified copies of such documentation) satisfactory to the Trustee
evidencing the payment of Taxes in respect of which the Company has paid any
Additional Amounts. Copies of such documentation shall be made available to
the Holders of the Securities or the Paying Agent, as applicable, upon request
therefor.

     The Company shall pay all stamp and other duties, if any, which may be
imposed by Bermuda, the United States of America or any other governmental
entity or political subdivision therein or thereof, or any taxing authority of
or in any of the foregoing, with respect to the Indenture or the issuance of
the Securities.

     If, as a result of any amendment to, or change in, the laws (or any
regulation or rulings promulgated thereunder) of Bermuda, any political
subdivision of Bermuda or any taxing authority thereof or therein, or of any
Relevant Jurisdiction, affecting taxation, or any amendment to, or change in,
an official interpretation or application regarding such laws, regulations or
rulings, which change, amendment, application or interpretation becomes
effective or is announced after the Issue Date, the Company would be obligated,
for reasons outside its control, to pay on the next succeeding Interest Payment
Date Additional Amounts in respect of interest payments on the Securities
pursuant to the terms and conditions of Section 1008 of the Indenture, and if
such obligation cannot be avoided by the Company after taking reasonable
measures to avoid it, then, at the Company’s option, the Securities may be
redeemed in whole, but not in part, at any time, on giving not less than 35 nor
more than 65 days’ written notice to the Trustee (unless a shorter notice
period shall be acceptable to the Trustee for its convenience) and not less
than 30 nor more than 60 days’ notice to the Holders of Securities, at a
Redemption Price equal to 100% of the principal amount thereof, together with
accrued interest to the Redemption Date and any Additional Amounts which would
otherwise be payable; provided, however, that (1) no notice of such redemption
may be given earlier than 90 days prior to the earliest date on which the
Company would but for such redemption be obligated to pay such Additional
Amounts, and (2) at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect.

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-10-

 

     Before any written notice of redemption pursuant to the preceding
paragraph is given to the Trustee or the Holders, the Company shall deliver to
the Trustee (i) an Officers’ Certificate to the effect that the Company’s
obligations to pay such Additional Amounts cannot be avoided by the Company
taking reasonable measures available to it and (ii) an opinion of independent
legal counsel or an independent auditor (which can be the Company’s regular
independent accountants or other independent accountants of recognized standing
and reasonably satisfactory to the Trustee) of the Company to the effect that
the Company would be obligated to pay Additional Amounts in respect of interest
payments on the Securities because of any amendment to or change in laws of the
kind referred to above. The Trustee will accept such certificate and opinion
as sufficient evidence of the satisfaction of the conditions precedent
described in the preceding paragraph (subject to the proviso thereto), in which
event it will be conclusive and binding on the Holders. Any such notice of
redemption, once given to the Holders, shall be irrevocable.

     Except as otherwise provided herein or in the Indenture, the Securities
that are offered and sold to institutions that are “accredited investors”
within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that are not also Qualified Institutional Buyers shall be issued
in the names of their initial beneficial owners and delivered to such Holders.

     Prior to the expiration of forty days from the later of (i) the date on
which this Security was first offered and (ii) the date of issuance of this
Security, in connection with any transfer of an interest in this Security by a
Holder to a transferee that is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that is not also a Qualified Institutional Buyer, the transferee
will be required to furnish to the Trustee, as Security Registrar, and the
Company, prior to the transfer, a signed letter, the form of which is contained
in Annex A hereto and which may be obtained from the Trustee, containing, among
other things, representations and agreements relating to the transferee’s
status as an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act and
acknowledging the restrictions on transfer of the Securities, and the Holder,
at the Company’s request, will be required, prior to such transfer, to provide
the Company and the Trustee, as Security Registrar, with an opinion of counsel
reasonably acceptable to the Company, addressed to the Company and in form
acceptable to the Company, to the effect that the transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and is otherwise in compliance
with the transfer restrictions applicable to the Securities that the Holder
seeks to transfer.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the

(Reverse of Security continued on next page)

-11-

 

Securities at the time Outstanding of all series to be affected
(considered together as one class for this purpose). The Indenture also
contains provisions (i) permitting the Holders of a majority in principal
amount of the Securities at the time Outstanding of all series to be affected
under the Indenture (considered together as one class for this purpose), on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and (ii) permitting the
Holders of a majority in principal amount of the Securities at the time
Outstanding of any series to be affected under the Indenture (with each such
series considered separately for this purpose), on behalf of the Holders of all
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee security or indemnity
reasonably satisfactory to the Trustee, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

     Subject to certain limitations in the Indenture, at any time when the Company
is not subject to Section 13 or 15(d) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), nor exempt from reporting requirements
pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder
of a Security or of a beneficial owner of an interest in a Global Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information
(as defined below) to such Holder or beneficial owner, or to a prospective
purchaser of a Security or a beneficial interest in a Global Security
designated by such Holder or beneficial owner of such interest in order to
permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act of 1933, as amended. “Rule 144A Information” shall be such

(Reverse of Security continued on next page)

-12-

 

information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any
successor provision thereto), as such provision (or successor provision) may be
amended from time to time.

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

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of U.S.$1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

-13-

 

ANNEX A

FORM OF ACCREDITED INVESTOR LETTER

The Bank of New York

101 Barclay Street

Floor 21

New York, NY 10286

Intelsat, Ltd.

North Tower, 2nd Floor

90 Pitts Bay Road

Pembroke HM 08, Bermuda

Dear Sirs and Madams:

     Reference is hereby made to the Indenture, dated as of April 1, 2002 (the
“Indenture”), between Intelsat, Ltd. (the “Company”) and The Bank of New York,
as Trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     We are delivering this letter in connection with our proposed purchase of
5 1/4% Senior Notes due 2008 (the “2008 notes”) of the Company.

     We hereby represent, agree and confirm that:

	 	i)	 	we are an institutional “accredited investor” within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act
of 1933, as amended (the “Securities Act”) (an “institutional
accredited investor”);
	 
	 	ii)	 	any purchase of the 2008 notes by us will be for our own
account or for the account of one or more other institutional
investors for which we exercise sole investment discretion (and any
such institutional investors with such accounts are also
institutional accredited investors);
	 
	 	iii)	 	we have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and
risks of purchasing the 2008 notes, and we are able to bear the
economic risks of our investment;
	 
	 	iv)	 	in the event that we purchase any of the 2008 notes, we (and
any separate account for which we are acting) will purchase at least
$250,000 aggregate principal amount of 2008 notes;
	 
	 	v)	 	we are not acquiring the 2008 notes with a view to, or for
offer or sale in connection with, any distribution in violation of
the Securities Act; provided that the disposition of our property
and the property of any accounts for which we are acquiring 2008
notes shall remain at all times within our control;
	 
	 	vi)	 	we agree that if in the future we decide to offer, resell,
pledge or otherwise transfer 2008 notes, we will do so only (i) to
the Company, (ii) for so long as the securities

A-1 

 

	 	 	 	are eligible for resale pursuant to Rule 144A, to a person that we
reasonably believe is a qualified institutional buyer acquiring the
2008 notes for its own account or for the account of one or more
other qualified institutional buyers in a transaction meeting the
requirements of Rule 144A, (iii) to an institutional accredited
investor that, prior to the transfer, furnishes to the Company and
the trustee a signed letter, the form of which may be obtained from
the trustee, containing, among other things, representations and
agreements relating to the transferee’s status as an institutional
accredited investor and acknowledging the restrictions on transfer of
the 2008 notes, provided that we must provide the Company and the
trustee with an opinion of counsel reasonably acceptable to the
Company, in form acceptable to the Company, to the effect that the
transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act, and further provided that the transferee purchases at
least $250,000 in aggregate principal amount of 2008 notes from us,
(iv) in an offshore transaction meeting the requirements of Rule 903
or Rule 904 of Regulation S under the Securities Act, (v) pursuant to
an exemption from registration under the Securities Act provided by
Rule 144 under the Securities Act (if available) or (vi) pursuant to
an effective registration statement under the Securities Act, in each
case in accordance with any applicable securities laws of any state
of the United States and any other jurisdiction. We understand
that, prior to any transfer referred to in clauses (ii), (iii), (iv)
or (v) of the preceding sentence, we must furnish to the trustee such
certifications, legal opinions and other information as the Company
may reasonably require to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act. We agree to
notify any subsequent purchaser of 2008 notes from us of the transfer
restriction to which the 2008 notes are subject at the time, if
applicable; and
	 
	 	vii)	 	we either (A) are not an employee benefit plan or other plan
or arrangement, including individual retirement accounts and
annuities, Keogh plans and collective investment funds or insurance
company general or separate accounts in which such plans, accounts
or arrangements are invested, that are subject to the fiduciary
responsibility provisions of the Employee Retirement Income Security
Act of 1974, as amended, referred to as ERISA, and/or Section 4975
of the Internal Revenue Code of 1986, as amended, referred to as the
Code, all of such plans or arrangements referred to collectively as
a plan, or a person investing assets of a plan or any entity whose
underlying assets include assets of a plan by reason of a plan’s
investment in the entity, or (B) represent that the purchase and
holding of the 2008 notes or any interest therein are exempt from
the prohibited transaction restrictions of ERISA and the Code
pursuant to one or more prohibited transaction statutory or
administrative exemptions.

     We acknowledge and understand that you and others will rely upon our
confirmations, acknowledgments and agreements set forth herein, and we agree to
notify you promptly in writing if any of our representations or warranties
herein ceases to be accurate and complete.

A-2 

 

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

	 	 	 	 	 
	Date:

	 	Very truly yours,
	 	 	 	 	 
	 	 	

(Name of Purchaser)
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	
Name:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	
Title:	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	
Address:	 	 
	 	 	 	 	

A-3 

 

[FORM OF EXCHANGE GLOBAL 2008 NOTE]

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

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

INTELSAT, LTD.

5 1/4% SENIOR NOTES DUE 2008

	 	 	 
	No.	 	
U.S.$
	CUSIP NO. 45820E AG 7	 	 

     Intelsat, Ltd., a company duly organized and existing under the laws of
Bermuda (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of
       Dollars (U.S.$       ), or such principal
amount as may be set forth in the records of the Trustee hereinafter referred
to in accordance with the Indenture, on November 1, 2008, and to pay interest
thereon from November 7, 2003 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually on May 1 and
November 1 in each year, commencing May 1, 2004, at the rate of 5 1/4% per
annum, until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the April 15 or October 15 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Any such interest not
so punctually paid or duly provided for will forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of
Securities of this series not less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange

(Face of Security continued on next page)

 

 

on which the Securities of
this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest
and other amounts due on this Security will be made at the office or agency of
the Company maintained for that purpose in New York, New York, and at such
other office or agency of the Company as may be maintained for such purpose, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company and subject to the next paragraph, payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding
any other provision of this security or the Indenture, if this Security is a
Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

     Subject to the preceding paragraph, payment of any amount payable on this
Security will be made by wire transfer of immediately available funds to an
account maintained by the payee with a bank located in the Borough of
Manhattan, The City of New York, if (i) the principal of this Security is at
least U.S.$1,000,000 and (ii) the Holder entitled to receive such payment
transmits a written request for such payment to be made in such manner to the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration – Global Finance Unit, on or before the fifth Business Day
before the day on which such payment is to be made; provided that, in the case
of any such payment due at the Maturity of the principal hereof (other than any
payment of interest that first becomes due on an Interest Payment Date), this
Security must be surrendered at the office or agency of the Company maintained
for that purpose in The City of New York (or at any other office or agency
maintained by the Company for that purpose) in time for the Paying Agent to
make such payment in such funds in accordance with its normal procedures. Any
such request made with respect to any payment on this Security payable to a
particular Holder will remain in effect for all later payments on this Security
payable to such Holder, unless such request is revoked on or before the fifth
Business Day before a payment is to be made, in which case such revocation
shall be effective for such payment and all later payments. In the case of any
payment of interest payable on an Interest Payment Date, such written request
must be made by the Person that is the registered Holder of this Security on
the relevant Regular Record Date. The Company will pay any administrative
costs imposed by banks in connection with making payments by wire transfer with
respect to this Security, but any tax, assessment or other governmental charge
imposed upon any payment will be borne by the Holder of this Security and may
be deducted from the payment by the Company or the Paying Agent.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

(Face of Security continued on next page)

- 2 -

 

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

     In Witness Whereof, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

Name:
	 	 	 	 	Title:

Attest:

Name:

Title:

     This is one of the Securities of the series designated herein and referred
to in the Indenture.

Dated:

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 	 	 	 	 
	 	 	
By
	 	 
	 	 	 	

	 	 	 	 	Authorized Officer

 

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 1, 2002 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially
limited in aggregate principal amount to U.S.$400,000,000 (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of this series pursuant to
Section 304, 305, 306, 906 or 1107 of the Indenture and except for any
Securities which, pursuant to Section 303 of the Indenture, are deemed never to
have been authenticated and delivered thereunder).

     The Securities may be redeemed by the Company (i) as provided in Section
1108 of the Indenture and (ii) in whole or in part, at its option at any time
and from time to time at a Redemption Price equal to the greater of (A) 100% of
the principal amount of the Securities to be redeemed and (B) the sum of the
present values of the Remaining Scheduled Payments discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 30 basis points, together with, in
each case, accrued interest on the principal amount of the Securities to be
redeemed to the date of redemption. In connection with such optional
redemption the following defined terms apply:

     “Comparable Treasury Issue” means the United States Treasury security or
securities selected by an Independent Investment Banker as having an actual or
interpolated (on a straight-line basis) maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to the remaining
term of such Securities.

     “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.

     “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities Corp.,
or their affiliates which are primary U.S. Government securities dealers, and
their respective successors, and two other nationally recognized investment
banking firms that are primary U.S. Government securities dealers in The City
of New York (a “Primary Treasury Dealer”) specified from time to time by the
Company; provided, however, that if any of the foregoing, or their affiliates,
as the case may be, shall cease to be a Primary Treasury Dealer, the Company
shall substitute therefor another Primary Treasury Dealer.

(Reverse of Security continued on next page)

- 4 -

 

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of principal of and interest on such
Security that would be due after the related Redemption Date but for such
redemption. If such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest
payment on such Security will be reduced by the amount of interest accrued on
such Security to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any
successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields
on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining term
of the Securities, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

     The Treasury Rate will be calculated on the third Business Day preceding
the Redemption Date.

     Notice of any such redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to the Holders of the Securities to be
redeemed. On and after any Redemption Date, interest will cease to accrue on
the Securities or any portion thereof called for redemption unless the Company
defaults in the payment of the Redemption Price. On or before any Redemption
Date, the Company shall deposit with a Paying Agent (or the Trustee) money
sufficient to pay the Redemption Price of and accrued interest on the
Securities to be redeemed on such date.

(Reverse of Security continued on next page)

- 5 -

 

     The Redemption Price shall be calculated by the Independent Investment
Banker, and the Company, the Trustee and any Paying Agent for the Securities
shall be entitled to rely on, and the Company and the Holders shall be bound
by, such calculation.

     Upon the earliest to occur for whatever reason of a Mandatory Redemption
Event, the Company will be required to redeem a portion of this Security, at a
Redemption Price equal to 102% of the principal amount of the portion of this
Security to be redeemed, together with accrued and unpaid interest on the
principal amount of this Security, if any, and any other amounts due to the
Redemption Date, if any, such that, following and after giving effect to any
such mandatory redemption, $200,000,000 aggregate principal amount of the
Securities will remain outstanding. The Redemption Date with respect to any
such mandatory redemption will be determined by the Company and must be within
ten Business Days of the applicable Mandatory Redemption Event. In connection
with such mandatory redemption, the following terms apply:

     “Applicable Credit Agreement” means the credit agreement to be entered
into or entered into among the Company and various financial institutions,
including affiliates of Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and BNP Paribas Securities Corp., the initial purchasers of this
Security (the “Initial Purchasers”), under a commitment letter dated July 15,
2003, as amended from time to time, with affiliates of the Initial Purchasers
pursuant to which those affiliates have agreed to provide financing for the
transactions contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for working
capital requirements, or any alternative credit agreement thereto entered into
among the Company and affiliates of the Initial Purchasers, in any case prior
to the closing of the transactions contemplated by the Asset Purchase Agreement
and in each case as such agreement may be amended from time to time.

     “Asset Purchase Agreement” means the Asset Purchase Agreement, dated as of
July 15, 2003, as amended from time to time (the “Asset Purchase Agreement”),
among the Company, Intelsat (Bermuda), Ltd., Loral Space & Communications
Corporation, as debtor and debtor-in-possession, Loral SpaceCom Corporation, as
debtor and debtor-in-possession and Loral Satellite, Inc., as debtor and
debtor-in-possession.

     “Mandatory Redemption Event” means any of the following: (i) the Asset
Purchase Agreement is terminated, (ii) the Applicable Credit Agreement is not
entered into by all the parties thereto or is terminated at any time following
its execution, in each case on or prior to April 30, 2004, (iii) the Company
fails to meet any condition required for the extension of loans under the
Applicable Credit Agreement on or prior to April 30, 2004 that in accordance
with the terms of the Applicable Credit Agreement must be satisfied, and that
has not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur on or
prior to April 30, 2004.

     Notice of any such mandatory redemption shall be provided to the Holders
of this Security at least one Business Day before the Redemption Date and will
specify the applicable Mandatory Redemption Event. On and after any Redemption
Date, interest will cease to accrue on the portion of this Security called for
redemption unless the Company defaults in the payment of the Redemption Price.
On or before any Redemption Date, the Company shall deposit with a

(Reverse of Security continued on next page)

- 6 -

 

Paying Agent
(or the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the Securities to be redeemed on such date.

     If less than all of the Securities are to be redeemed, the Securities to
be redeemed shall be selected by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee shall deem fair and appropriate. No
Securities of $1,000 in principal amount or less will be redeemed in part. If
the Company redeems Securities in part, the notice of redemption shall state
the portion of the principal amount of the Securities to be redeemed.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Company shall not be obligated to redeem or purchase the Securities
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof.

     All payments of principal and interest in respect of the Securities shall
be made without withholding or deduction for any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or on behalf of (i) Bermuda, any political
subdivision of Bermuda or any authority therein or thereof, or (ii) any other
jurisdiction (a “Relevant Jurisdiction”) as a result of the Company’s being
organized in or moving the Company’s principal office to such jurisdiction
(“Taxes”), except to the extent that such Taxes are required by Bermuda, any
such political subdivision or authority, or any such Relevant Jurisdiction, to
be withheld or deducted. In the event of any withholding or deduction for any
Taxes, the Company shall pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of Securities on the respective due dates
of such amounts as would have been received by them had no such withholding or
deduction (including for any Taxes payable in respect of Additional Amounts)
been required, except that no such Additional Amounts shall be payable with
respect to any payment on a Security to the extent:

	 	(i)	 	that any such taxes, duties, assessments or other
governmental charges would not have been imposed but for a
connection between the Holder and the jurisdiction imposing the
Taxes other than the holding of such Security and the receipt of
payments with respect to such Security;
	 
	 	(ii)	 	of estate, inheritance, gift or any similar tax, assessment
or other governmental charge imposed with respect to a Security;
	 
	 	(iii)	 	any such taxes, duties, assessments or other governmental
charges that would not have been imposed but for the failure of the
Holder or beneficial owner of such Security to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such
Security, if (a) compliance is required by law or by an applicable
income tax treaty to which the jurisdiction imposing the Taxes is a
party as a precondition to exemption from such taxes, duties,
assessments or other governmental charges, and (b) at least 60 days
prior to the first payment date with respect to which the Company
shall apply this clause (iii), the Company shall have notified all
the Holders, in

(Reverse of Security continued on next page)

- 7 -

 

	 	 	 	writing, that such Holders or beneficial owners of
the Security will be required to provide such information or
documentation; or
	 
	 	(iv)	 	of any such taxes, duties, assessments or other governmental
charges with respect to a Security presented for payment more than
30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for and notice
thereof given to Holders, whichever occurs later, except to the
extent that the Holder of such Security would have been entitled to
such Additional Amounts on presenting such Security for payment on
any date during such 30-day period.

     The Company shall provide the Trustee with documentation (which may
consist of certified copies of such documentation) satisfactory to the Trustee
evidencing the payment of Taxes in respect of which the Company has paid any
Additional Amounts. Copies of such documentation shall be made available to
the Holders of the Securities or the Paying Agent, as applicable, upon request
therefor.

     The Company shall pay all stamp and other duties, if any, which may be
imposed by Bermuda, the United States of America or any other governmental
entity or political subdivision therein or thereof, or any taxing authority of
or in any of the foregoing, with respect to the Indenture or the issuance of
the Securities.

     If, as a result of any amendment to, or change in, the laws (or any
regulation or rulings promulgated thereunder) of Bermuda, any political
subdivision of Bermuda or any taxing authority thereof or therein, or of any
Relevant Jurisdiction, affecting taxation, or any amendment to, or change in,
an official interpretation or application regarding such laws, regulations or
rulings, which change, amendment, application or interpretation becomes
effective or is announced after the Issue Date, the Company would be obligated,
for reasons outside its control, to pay on the next succeeding Interest Payment
Date Additional Amounts in respect of interest payments on the Securities
pursuant to the terms and conditions of Section 1008 of the Indenture, and if
such obligation cannot be avoided by the Company after taking reasonable
measures to avoid it, then, at the Company’s option, the Securities may be
redeemed in whole, but not in part, at any time, on giving not less than 35 nor
more than 65 days’ written notice to the Trustee (unless a shorter notice
period shall be acceptable to the Trustee for its convenience) and not less
than 30 nor more than 60 days’ notice to the Holders of Securities, at a
Redemption Price equal to 100% of the principal amount thereof, together with
accrued interest to the Redemption Date and any Additional Amounts which would
otherwise be payable; provided, however, that (1) no notice of such redemption
may be given earlier than 90 days prior to the earliest date on which the
Company would but for such redemption be obligated to pay such Additional
Amounts, and (2) at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect.

     Before any written notice of redemption pursuant to the preceding
paragraph is given to the Trustee or the Holders, the Company shall deliver to
the Trustee (i) an Officers’ Certificate to the effect that the Company’s
obligations to pay such Additional Amounts cannot be avoided by the Company
taking reasonable measures available to it and (ii) an opinion of independent
legal counsel or an independent auditor (which can be the Company’s regular
independent accountants or other independent accountants of recognized standing
and reasonably satisfactory to the

(Reverse of Security continued on next page)

- 8 -

 

Trustee) of the Company to the effect that
the Company would be obligated to pay Additional Amounts in respect of interest
payments on the Securities because of any amendment to or change in laws of the
kind referred to above. The Trustee will accept such certificate and opinion
as sufficient evidence of the satisfaction of the conditions precedent
described in the preceding
paragraph (subject to the proviso thereto), in which event it will be
conclusive and binding on the Holders. Any such notice of redemption, once
given to the Holders, shall be irrevocable.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time Outstanding of all series to be affected (considered together as
one class for this purpose). The Indenture also contains provisions (i)
permitting the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected under the Indenture
(considered together as one class for this purpose), on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and (ii) permitting the Holders of a
majority in principal amount of the Securities at the time Outstanding of any
series to be affected under the Indenture (with each such series considered
separately for this purpose), on behalf of the Holders of all Securities of
such series, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall
be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee security or indemnity
reasonably satisfactory to the Trustee, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

(Reverse of Security continued on next page)

- 9 -

 

     Subject to certain limitations in the Indenture, at any time when the
Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), nor exempt from reporting requirements
pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder
of a Security or of a beneficial owner of an interest in a Global Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information
(as defined below) to such Holder or beneficial owner, or to a prospective
purchaser of a Security or a beneficial interest in a Global Security
designated by such Holder or beneficial owner of such interest in order to
permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act of 1933, as amended. “Rule 144A Information” shall be such
information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any
successor provision thereto), as such provision (or successor provision) may be
amended from time to time.

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

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or

transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of U.S.$1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

- 10 -

 

ANNEX B

FORMS OF 2013 NOTES

 

[FORM OF RESTRICTED GLOBAL 2013 NOTE]

          NEITHER THIS SECURITY NOR ANY BENEFICIAL INTEREST HEREIN HAS BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR
THE BENEFIT OF INTELSAT, LTD. (THE “ISSUER”) THAT THIS SECURITY MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO THE ISSUER, (2) SO LONG AS
THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) PURCHASING FOR ITS OWN
ACCOUNT OR THE ACCOUNT OF ONE OR MORE OTHER QUALIFIED INSTITUTIONAL BUYERS IN
ACCORDANCE WITH RULE 144A, (3) IN A MINIMUM PRINCIPAL AMOUNT OF $250,000 TO AN
INSTITUTIONAL ACCREDITED INVESTOR, AS DEFINED IN RULE 501(a)(1), (2), (3) OR
(7) UNDER REGULATION D UNDER THE SECURITIES ACT IN A TRANSACTION EXEMPT FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, (4) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S
UNDER THE SECURITIES ACT, (5) PURSUANT TO AN EXEMPTION FROM REGISTRATION IN
ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR (6)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT (IF
AVAILABLE), IN EACH SUCH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR OTHER JURISDICTIONS. THE HOLDER HEREOF,
BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE
ISSUER THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO ABOVE. SECURITIES OWNED BY AN INITIAL INSTITUTIONAL
ACCREDITED INVESTOR THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER, OR AN
INSTITUTIONAL ACCREDITED INVESTOR THAT IS NOT A QUALIFIED INSTITUTIONAL BUYER
THAT ACQUIRES SECURITIES FROM SUCH AN INITIAL INSTITUTIONAL ACCREDITED
INVESTOR, MAY NOT BE HELD IN BOOK-ENTRY FORM. IN CONNECTION WITH ANY TRANSFER
OF THE SECURITY EVIDENCED HEREBY, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY
BE, MUST PROVIDE ANY CERTIFICATIONS REQUIRED BY OR PURSUANT TO THE INDENTURE TO
THE BANK OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE) AND,
AS THE CASE MAY BE, TO THE ISSUER. IF THE TRANSFEREE IS AN INSTITUTIONAL
ACCREDITED INVESTOR, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY BE, MUST,
PRIOR TO SUCH TRANSFER, FURNISH TO THE ISSUER AND THE BANK OF NEW YORK, AS
TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS REQUIRED BY OR PURSUANT TO THE INDENTURE OR AS
THEY MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE

(Face of Security continued on next page)

 

THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

(Face of Security continued on next page)

-2-

 

INTELSAT, LTD.

6 1/2% SENIOR NOTES DUE 2013

	 	 	 
	No.	 	
U.S.$
	CUSIP NO. 45820E AD 4	 	 

     Intelsat, Ltd., a company duly organized and existing under the laws of
Bermuda (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of [
            Dollars]
(U.S.$            ), or such
principal amount as may be set forth in the records of the Trustee hereinafter
referred to in accordance with the Indenture, on November 1, 2013, and to pay
interest thereon from November 7, 2003 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on May
1 and November 1 in each year, commencing May 1, 2004, at the rate of 6 1/2%
per annum, until the principal hereof is paid or made available for payment,
provided that Additional Interest (as defined below) may accrue on this
Security upon the occurrence of a Registration Default (as defined below). The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the April 15 or October 15 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Any such interest not
so punctually paid or duly provided for will forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest
and other amounts due on this Security will be made at the office or agency of
the Company maintained for that purpose in New York, New York, and at such
other office or agency of the Company as may be maintained for such purpose, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company and subject to the next paragraph payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding
any other provision of this security or the Indenture, if this Security is a
Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

     Subject to the preceding paragraph, payment of any amount payable on this
Security will be made by wire transfer of immediately available funds to an
account maintained by the payee with a bank located in the Borough of
Manhattan, The City of New York, if (i) the principal of this Security is at
least U.S.$1,000,000 and (ii) the Holder entitled to receive such payment
transmits a written request for such payment to be made in such manner to the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration – Global Finance Unit, on or

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-3-

 

before the fifth Business Day before the day on which such payment is to
be made; provided that, in the case of any such payment due at the Maturity of
the principal hereof (other than any payment of interest that first becomes due
on an Interest Payment Date), this Security must be surrendered at the office
or agency of the Company maintained for that purpose in The City of New York
(or at any other office or agency maintained by the Company for that purpose)
in time for the Paying Agent to make such payment in such funds in accordance
with its normal procedures. Any such request made with respect to any payment
on this Security payable to a particular Holder will remain in effect for all
later payments on this Security payable to such Holder, unless such request is
revoked on or before the fifth Business Day before a payment is to be made, in
which case such revocation shall be effective for such payment and all later
payments. In the case of any payment of interest payable on an Interest
Payment Date, such written request must be made by the Person that is the
registered Holder of this Security on the relevant Regular Record Date. The
Company will pay any administrative costs imposed by banks in connection with
making payments by wire transfer with respect to this Security, but any tax,
assessment or other governmental charge imposed upon any payment will be borne
by the Holder of this Security and may be deducted from the payment by the
Company or the Paying Agent.

     The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of November 7, 2003 (the “Registration
Rights Agreement”), among the Company, Morgan Stanley & Co. Incorporated,
Citigroup Global Markets Inc. and BNP Paribas Securities Corp., pursuant to
which the Company will be obligated to file a registration statement under the
Securities Act registering securities in like principal amount and having
substantially identical terms as this Security (the “Exchange Notes”) and to
consummate an exchange offer (the “Exchange Offer”) pursuant to which the
Holder of this Security shall have the right to exchange this Security for
Exchange Notes or, if applicable, to file a registration statement registering
this Security for resale (the “Shelf Registration Statement”). If (1) the
Company fails to file the Exchange Offer registration statement on or prior to
the 240th calendar day after the issue date of this Security or fails to file a
Shelf Registration Statement on or prior to the 240th calendar day after the
date the Shelf Registration Statement is required to be filed pursuant to the
Registration Rights Agreement; or (2) any of the Exchange Offer registration
statement or the Shelf Registration Statement is not declared effective by the
Securities and Exchange Commission (A) in the case of the Exchange Offer
registration statement, on or prior to the 300th calendar day after November 7,
2003 or (B) in the case of the Shelf Registration Statement, on or prior to the
360th calendar day after the date the Shelf Registration Statement is required
to be filed pursuant to the Registration Rights Agreement; or (3) the Company
fails to consummate the Exchange Offer on or prior to the 340th calendar day
after the issue date of this Security (each event referred to in clauses (1)
through (3), a “Registration Default”), then additional interest will accrue in
respect of this Security from and including the next calendar day following
each of (a) such 240 day period in the case of clause (1) above, (b) such 300
day period in the case of clause (2) (A) above or such 360 day period in the
case of clause (2)(B) above and (c) such 340 day period in the case of clause
(3) above, in each case at a rate equal to 0.25% per annum (“Additional
Interest”). The aggregate amount of the Additional Interest in respect of this
Security will in no event exceed 0.25% per annum. All accrued Additional
Interest will be paid to Holders in the same manner as interest is paid under
this Security. Following the cure of all Registration Defaults, the accrual of
Additional Interest will cease.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

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

     In Witness Whereof, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

Name:
	 	 	 	 	Title:

Attest:

Name:

Title:

     This is one of the Securities of the series designated herein and referred
to in the Indenture.

Dated:

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	

	 	 	 	 	Authorized Officer

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 1, 2002 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially
limited in aggregate principal amount to U.S.$700,000,000 (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of this series pursuant to
Section 304, 305, 306, 906 or 1107 of the Indenture and except for any
Securities which, pursuant to Section 303 of the Indenture, are deemed never to
have been authenticated and delivered thereunder).

     The Securities may be redeemed by the Company (i) as provided in Section
1108 of the Indenture and (ii) in whole or in part, at its option at any time
and from time to time at a Redemption Price equal to the greater of (A) 100% of
the principal amount of the Securities to be redeemed and (B) the sum of the
present values of the Remaining Scheduled Payments discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 35 basis points, together with, in
each case, accrued interest on the principal amount of the Securities to be
redeemed to the date of redemption. In connection with such optional
redemption the following defined terms apply:

     “Comparable Treasury Issue” means the United States Treasury security or
securities selected by an Independent Investment Banker as having an actual or
interpolated (on a straight-line basis) maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to the remaining
term of such Securities.

     “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.

     “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities Corp.,
or their affiliates which are primary U.S. Government securities dealers, and
their respective successors, and two other nationally recognized investment
banking firms that are primary U.S. Government securities dealers in The City
of New York (a “Primary Treasury Dealer”) specified from time to time by the
Company; provided, however, that if any of the foregoing, or their affiliates,
as the case may

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-6-

 

be, shall cease to be a Primary Treasury Dealer, the Company shall
substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of principal of and interest on such
Security that would be due after the related Redemption Date but for such
redemption. If such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest
payment on such Security will be reduced by the amount of interest accrued on
such Security to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any
successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields
on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining term
of the Securities, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor release) is not published during
the week preceding the calculation date or does not contain such yields, the
rate per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.

     The Treasury Rate will be
calculated on the third Business Day preceding the Redemption Date.

     Notice of any such redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to the Holders of the Securities to be
redeemed. On and after any Redemption Date, interest will cease to accrue on
the Securities or any portion thereof called for redemption unless the Company
defaults in the payment of the Redemption Price. On or before any Redemption
Date, the Company shall deposit with a Paying Agent (or the Trustee) money

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-7-

 

sufficient to pay the Redemption Price of and accrued interest on the
Securities to be redeemed on such date.

     The Redemption Price shall be calculated by the Independent Investment
Banker, and the Company, the Trustee and any Paying Agent for the Securities
shall be entitled to rely on, and the Company and the Holders shall be bound
by, such calculation.

     Upon the earliest to occur for whatever reason of a Mandatory Redemption
Event, the Company will be required to redeem a portion of this Security, at a
Redemption Price equal to 102% of the principal amount of the portion of this
Security to be redeemed, together with accrued and unpaid interest on the
principal amount of this Security, if any, and any other amounts due to the
Redemption Date, if any, such that, following and after giving effect to any
such mandatory redemption, $200,000,000 aggregate principal amount of the
Securities will remain outstanding. The Redemption Date with respect to any
such mandatory redemption will be determined by the Company and must be within
ten Business Days of the applicable Mandatory Redemption Event. In connection
with such mandatory redemption, the following terms apply:

     “Applicable Credit Agreement” means the credit agreement to be entered
into or entered into among the Company and various financial institutions,
including affiliates of Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and BNP Paribas Securities Corp., the initial purchasers of this
Security (the “Initial Purchasers”), under a commitment letter dated July 15,
2003, as amended from time to time, with affiliates of the Initial Purchasers
pursuant to which those affiliates have agreed to provide financing for the
transactions contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for working
capital requirements, or any alternative credit agreement thereto entered into
among the Company and affiliates of the Initial Purchasers, in any case prior
to the closing of the transactions contemplated by the Asset Purchase Agreement
and in each case as such agreement may be amended from time to time.

     “Asset Purchase Agreement” means the Asset Purchase Agreement, dated as of
July 15, 2003, as amended from time to time (the “Asset Purchase Agreement”),
among the Company, Intelsat (Bermuda), Ltd., Loral Space & Communications
Corporation, as debtor and debtor-in-possession, Loral SpaceCom Corporation, as
debtor and debtor-in-possession and Loral Satellite, Inc., as debtor and
debtor-in-possession.

     “Mandatory Redemption Event” means any of the following: (i) the Asset
Purchase Agreement is terminated, (ii) the Applicable Credit Agreement is not
entered into by all the parties thereto or is terminated at any time following
its execution, in each case on or prior to April 30, 2004, (iii) the Company
fails to meet any condition required for the extension of loans under the
Applicable Credit Agreement on or prior to April 30, 2004 that in accordance
with the terms of the Applicable Credit Agreement must be satisfied, and that
has not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur on or
prior to April 30, 2004.

     Notice of any such mandatory redemption shall be provided to the Holders
of this Security at least one Business Day before the Redemption Date and will
specify the applicable

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-8-

 

Mandatory Redemption Event. On and after any Redemption Date, interest
will cease to accrue on the portion of this Security called for redemption
unless the Company defaults in the payment of the Redemption Price. On or
before any Redemption Date, the Company shall deposit with a Paying Agent (or
the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the Securities to be redeemed on such date.

     If less than all of the Securities are to be redeemed, the Securities to
be redeemed shall be selected by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee shall deem fair and appropriate. No
Securities of $1,000 in principal amount or less will be redeemed in part. If
the Company redeems Securities in part, the notice of redemption shall state
the portion of the principal amount of the Securities to be redeemed.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Company shall not be obligated to redeem or purchase the Securities
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof.

     All payments of principal and interest in respect of the Securities shall
be made without withholding or deduction for any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or on behalf of (i) Bermuda, any political
subdivision of Bermuda or any authority therein or thereof, or (ii) any other
jurisdiction (a “Relevant Jurisdiction”) as a result of the Company’s being
organized in or moving the Company’s principal office to such jurisdiction
(“Taxes”), except to the extent that such Taxes are required by Bermuda, any
such political subdivision or authority, or any such Relevant Jurisdiction, to
be withheld or deducted. In the event of any withholding or deduction for any
Taxes, the Company shall pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of Securities on the respective due dates
of such amounts as would have been received by them had no such withholding or
deduction (including for any Taxes payable in respect of Additional Amounts)
been required, except that no such Additional Amounts shall be payable with
respect to any payment on a Security to the extent:

	 	(i)	 	that any such taxes, duties, assessments or other
governmental charges would not have been imposed but for a
connection between the Holder and the jurisdiction imposing the
Taxes other than the holding of such Security and the receipt of
payments with respect to such Security;
	 
	 	(ii)	 	of estate, inheritance, gift or any similar tax, assessment
or other governmental charge imposed with respect to a Security;
	 
	 	(iii)	 	any such taxes, duties, assessments or other governmental
charges that would not have been imposed but for the failure of the
Holder or beneficial owner of such Security to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such
Security, if (a) compliance is required by law or by an applicable
income tax treaty to which the

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-9-

 

	 	 	 	jurisdiction imposing the Taxes is a party as a precondition to
exemption from such taxes, duties, assessments or other
governmental charges, and (b) at least 60 days prior to the first
payment date with respect to which the Company shall apply this
clause (iii), the Company shall have notified all the Holders, in
writing, that such Holders or beneficial owners of the Security
will be required to provide such information or documentation; or
	 
	 	(iv)	 	of any such taxes, duties, assessments or other governmental
charges with respect to a Security presented for payment more than
30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for and notice
thereof given to Holders, whichever occurs later, except to the
extent that the Holder of such Security would have been entitled to
such Additional Amounts on presenting such Security for payment on
any date during such 30-day period.

     The Company shall provide the Trustee with documentation (which may
consist of certified copies of such documentation) satisfactory to the Trustee
evidencing the payment of Taxes in respect of which the Company has paid any
Additional Amounts. Copies of such documentation shall be made available to
the Holders of the Securities or the Paying Agent, as applicable, upon request
therefor.

     The Company shall pay all stamp and other duties, if any, which may be
imposed by Bermuda, the United States of America or any other governmental
entity or political subdivision therein or thereof, or any taxing authority of
or in any of the foregoing, with respect to the Indenture or the issuance of
the Securities.

     If, as a result of any amendment to, or change in, the laws (or any
regulation or rulings promulgated thereunder) of Bermuda, any political
subdivision of Bermuda or any taxing authority thereof or therein, or of any
Relevant Jurisdiction, affecting taxation, or any amendment to, or change in,
an official interpretation or application regarding such laws, regulations or
rulings, which change, amendment, application or interpretation becomes
effective or is announced after the Issue Date, the Company would be obligated,
for reasons outside its control, to pay on the next succeeding Interest Payment
Date Additional Amounts in respect of interest payments on the Securities
pursuant to the terms and conditions of Section 1008 of the Indenture, and if
such obligation cannot be avoided by the Company after taking reasonable
measures to avoid it, then, at the Company’s option, the Securities may be
redeemed in whole, but not in part, at any time, on giving not less than 35 nor
more than 65 days’ written notice to the Trustee (unless a shorter notice
period shall be acceptable to the Trustee for its convenience) and not less
than 30 nor more than 60 days’ notice to the Holders of Securities, at a
Redemption Price equal to 100% of the principal amount thereof, together with
accrued interest to the Redemption Date and any Additional Amounts which would
otherwise be payable; provided, however, that (1) no notice of such redemption
may be given earlier than 90 days prior to the earliest date on which the
Company would but for such redemption be obligated to pay such Additional
Amounts, and (2) at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect.

(Reverse of Security continued on next page)

-10-

 

     Before any written notice of redemption pursuant to the preceding
paragraph is given to the Trustee or the Holders, the Company shall deliver to
the Trustee (i) an Officers’ Certificate to
the effect that the Company’s obligations to pay such Additional Amounts
cannot be avoided by the Company taking reasonable measures available to it and
(ii) an opinion of independent legal counsel or an independent auditor (which
can be the Company’s regular independent accountants or other independent
accountants of recognized standing and reasonably satisfactory to the Trustee)
of the Company to the effect that the Company would be obligated to pay
Additional Amounts in respect of interest payments on the Securities because of
any amendment to or change in laws of the kind referred to above. The Trustee
will accept such certificate and opinion as sufficient evidence of the
satisfaction of the conditions precedent described in the preceding paragraph
(subject to the proviso thereto), in which event it will be conclusive and
binding on the Holders. Any such notice of redemption, once given to the
Holders, shall be irrevocable.

     Except as otherwise provided herein or in the Indenture, the Securities
that are offered and sold to institutions that are “accredited investors”
within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that are not also Qualified Institutional Buyers shall be issued
in the names of their initial beneficial owners and delivered to such Holders.

     In connection with any transfer of an interest in this Security by a
Holder to a transferee that is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that is not also a Qualified Institutional Buyer, the transferee
will be required to furnish to the Trustee, as Security Registrar, and the
Company, prior to the transfer, a signed letter, the form of which is contained
in Annex A hereto and which may be obtained from the Trustee, containing, among
other things, representations and agreements relating to the transferee’s
status as an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act and
acknowledging the restrictions on transfer of the Securities, and the Holder,
at the Company’s request, will be required, prior to such transfer, to provide
the Company and the Trustee, as Security Registrar, with an opinion of counsel
reasonably acceptable to the Company, addressed to the Company and in form
acceptable to the Company, to the effect that the transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and is otherwise in compliance
with the transfer restrictions applicable to the Securities that the Holder
seeks to transfer.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time Outstanding of all series to be affected (considered together as
one class for

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-11-

 

this purpose). The Indenture also contains provisions (i)
permitting the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected under the
Indenture (considered together as one class for this purpose), on behalf
of the Holders of all Securities of such series, to waive compliance by the
Company with certain provisions of the Indenture and (ii) permitting the
Holders of a majority in principal amount of the Securities at the time
Outstanding of any series to be affected under the Indenture (with each such
series considered separately for this purpose), on behalf of the Holders of all
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee security or indemnity
reasonably satisfactory to the Trustee, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

     Subject to certain limitations in the Indenture, at any time when the
Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), nor exempt from reporting requirements
pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder
of a Security or of a beneficial owner of an interest in a Global Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information
(as defined below) to such Holder or beneficial owner, or to a prospective
purchaser of a Security or a beneficial interest in a Global Security
designated by such Holder or beneficial owner of such interest in order to
permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act of 1933, as amended. “Rule 144A Information” shall be such

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-12-

 

information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any
successor provision thereto), as such provision (or successor provision) may be
amended from time to time.

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

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of U.S.$1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

-13-

 

ANNEX A

FORM OF ACCREDITED INVESTOR LETTER

The Bank of New York

101 Barclay Street

Floor 21

New York, NY 10286

Intelsat, Ltd.

North Tower, 2nd Floor

90 Pitts Bay Road

Pembroke HM 08, Bermuda

Dear Sirs and Madams:

     Reference is hereby made to the Indenture, dated as of April 1, 2002 (the
“Indenture”), between Intelsat, Ltd. (the “Company”) and The Bank of New York,
as Trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     We are delivering this letter in connection with our proposed purchase of
6 1/2% Senior Notes due 2013 (the “2013 notes”) of the Company.

     We hereby represent, agree and confirm that:

	 	i)	 	we are an institutional “accredited investor” within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act
of 1933, as amended (the “Securities Act”) (an “institutional
accredited investor”);
	 
	 	ii)	 	any purchase of the 2013 notes by us will be for our own
account or for the account of one or more other institutional
investors for which we exercise sole investment discretion (and any
such institutional investors with such accounts are also
institutional accredited investors);
	 
	 	iii)	 	we have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and
risks of purchasing the 2013 notes, and we are able to bear the
economic risks of our investment;
	 
	 	iv)	 	in the event that we purchase any of the 2013 notes, we (and
any separate account for which we are acting) will purchase at least
$250,000 aggregate principal amount of 2013 notes;
	 
	 	v)	 	we are not acquiring the 2013 notes with a view to, or for
offer or sale in connection with, any distribution in violation of
the Securities Act; provided that the disposition of our property
and the property of any accounts for which we are acquiring 2013
notes shall remain at all times within our control;
	 
	 	vi)	 	we agree that if in the future we decide to offer, resell,
pledge or otherwise transfer 2013 notes, we will do so only (i) to
the Company, (ii) for so long as the securities

A-1

 

 

	 	 	 	are eligible for resale pursuant to Rule 144A, to a person that we
reasonably believe is a qualified institutional buyer acquiring the
2013 notes for its own account or for the account of one or more
other qualified institutional buyers in a transaction meeting the
requirements of Rule 144A, (iii) to an institutional accredited
investor that, prior to the transfer, furnishes to the Company and
the trustee a signed letter, the form of which may be obtained from
the trustee, containing, among other things, representations and
agreements relating to the transferee’s status as an institutional
accredited investor and acknowledging the restrictions on transfer of
the 2013 notes, provided that we must provide the Company and the
trustee with an opinion of counsel reasonably acceptable to the
Company, in form acceptable to the Company, to the effect that the
transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act, and further provided that the transferee purchases at
least $250,000 in aggregate principal amount of 2013 notes from us,
(iv) in an offshore transaction meeting the requirements of Rule 903
or Rule 904 of Regulation S under the Securities Act, (v) pursuant to
an exemption from registration under the Securities Act provided by
Rule 144 under the Securities Act (if available) or (vi) pursuant to
an effective registration statement under the Securities Act, in each
case in accordance with any applicable securities laws of any state
of the United States and any other jurisdiction. We understand
that, prior to any transfer referred to in clauses (ii), (iii), (iv)
or (v) of the preceding sentence, we must furnish to the trustee such
certifications, legal opinions and other information as the Company
may reasonably require to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act. We agree to
notify any subsequent purchaser of 2013 notes from us of the transfer
restriction to which the 2013 notes are subject at the time, if
applicable; and
	 
	 	vii)	 	we either (A) are not an employee benefit plan or other plan
or arrangement, including individual retirement accounts and
annuities, Keogh plans and collective investment funds or insurance
company general or separate accounts in which such plans, accounts
or arrangements are invested, that are subject to the fiduciary
responsibility provisions of the Employee Retirement Income Security
Act of 1974, as amended, referred to as ERISA, and/or Section 4975
of the Internal Revenue Code of 1986, as amended, referred to as the
Code, all of such plans or arrangements referred to collectively as
a plan, or a person investing assets of a plan or any entity whose
underlying assets include assets of a plan by reason of a plan’s
investment in the entity, or (B) represent that the purchase and
holding of the 2013 notes or any interest therein are exempt from
the prohibited transaction restrictions of ERISA and the Code
pursuant to one or more prohibited transaction statutory or
administrative exemptions.

     We acknowledge and understand that you and others will rely upon our
confirmations, acknowledgments and agreements set forth herein, and we agree to
notify you promptly in writing if any of our representations or warranties
herein ceases to be accurate and complete.

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

A-2

 

 

Date: ___________________

	 	 	 	 	 
	 	 	Very truly yours,
	 	 	 	 	 
	 	 	

	 	 
	 	 	
(Name of Purchaser)	 	 
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	

	 	 
	 	 	
Name:	 	 
	 	 	

	 	 
	 	 	
Title:	 	 
	 	 	

	 	 
	 	 	
Address:	 	 
	 	 	

	 	 

A-3

 

[FORM OF REGULATION S GLOBAL 2013 NOTE]

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, PRIOR TO THE EXPIRATION
OF FORTY DAYS FROM THE LATER OF (1) THE DATE ON WHICH THESE SECURITIES WERE
FIRST OFFERED AND (2) THE DATE OF ISSUANCE OF THESE SECURITIES, MAY NOT BE
OFFERED, SOLD OR DELIVERED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, ANY U.S. PERSON EXCEPT (1) TO A PERSON WHO THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF ONE OR MORE
OTHER QUALIFIED INSTITUTIONAL BUYERS IN ACCORDANCE WITH RULE 144A OR (2) IN A
MINIMUM PRINCIPAL AMOUNT OF $250,000 TO AN INSTITUTIONAL ACCREDITED INVESTOR,
AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER REGULATION D UNDER THE
SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, OR (3) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903
OR 904 OF REGULATION S OR RULE 144 UNDER THE SECURITIES ACT. THE HOLDER
HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF
THE ISSUER THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE. IN CONNECTION WITH ANY TRANSFER OF THE
SECURITY EVIDENCED HEREBY, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY BE,
MUST PROVIDE ANY CERTIFICATIONS REQUIRED BY OR PURSUANT TO THE INDENTURE TO THE
BANK OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE) AND, AS
THE CASE MAY BE, TO THE ISSUER. IF THE TRANSFEREE IS AN INSTITUTIONAL
ACCREDITED INVESTOR, THE HOLDER OR THE TRANSFEREE, AS THE CASE MAY BE, MUST,
PRIOR TO SUCH TRANSFER, FURNISH TO THE ISSUER AND THE BANK OF NEW YORK, AS
TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS REQUIRED BY OR PURSUANT TO THE INDENTURE OR AS
THEY MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN

(Face of Security continued on next page)

 

 

AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

(Face of Security continued on next page)

-2-

 

INTELSAT, LTD.

6 1/2% SENIOR NOTES DUE 2013

	 	 	 
	No.	 	
U.S.$                  

CUSIP NO. G4803J AC 6

     Intelsat, Ltd., a company duly organized and existing under the laws of
Bermuda (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of
            
Dollars
(U.S.$             ),
or such principal amount as may be set forth in the records of the Trustee
hereinafter referred to in accordance with the Indenture, on November 1, 2013,
and to pay interest thereon from November 7, 2003 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on May 1 and November 1 in each year, commencing May 1, 2004, at
the rate of 6 1/2% per annum, until the principal hereof is paid or made
available for payment, provided that Additional Interest (as defined below) may
accrue on this Security upon the occurrence of a Registration Default (as
defined below). The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the April 15 or October 15 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and any such interest
and other amounts due on this Security will be made at the office or agency of
the Company maintained for that purpose in New York, New York, and at such
other office or agency of the Company as may be maintained for such purpose, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company and subject to the next paragraph payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding
any other provision of this security or the Indenture, if this Security is a
Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

     Subject to the preceding paragraph, payment of any amount payable on this
Security will be made by wire transfer of immediately available funds to an
account maintained by the payee with a bank located in the Borough of
Manhattan, The City of New York, if (i) the principal of this Security is at
least U.S.$1,000,000 and (ii) the Holder entitled to receive such payment
transmits a written request for such payment to be made in such manner to the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration — Global Finance Unit, on or

(Face of Security continued on next page)

-3-

 

before the fifth Business Day before the day on which such payment is to
be made; provided that, in the case of any such payment due at the Maturity of
the principal hereof (other than any payment of interest that first becomes due
on an Interest Payment Date), this Security must be surrendered at the office
or agency of the Company maintained for that purpose in The City of New York
(or at any other office or agency maintained by the Company for that purpose)
in time for the Paying Agent to make such payment in such funds in accordance
with its normal procedures. Any such request made with respect to any payment
on this Security payable to a particular Holder will remain in effect for all
later payments on this Security payable to such Holder, unless such request is
revoked on or before the fifth Business Day before a payment is to be made, in
which case such revocation shall be effective for such payment and all later
payments. In the case of any payment of interest payable on an Interest
Payment Date, such written request must be made by the Person that is the
registered Holder of this Security on the relevant Regular Record Date. The
Company will pay any administrative costs imposed by banks in connection with
making payments by wire transfer with respect to this Security, but any tax,
assessment or other governmental charge imposed upon any payment will be borne
by the Holder of this Security and may be deducted from the payment by the
Company or the Paying Agent.

     The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of November 7, 2003 (the “Registration
Rights Agreement”), among the Company, Morgan Stanley & Co. Incorporated,
Citigroup Global Markets Inc. and BNP Paribas Securities Corp., pursuant to
which the Company will be obligated to file a registration statement under the
Securities Act registering securities in like principal amount and having
substantially identical terms as this Security (the “Exchange Notes”) and to
consummate an exchange offer (the “Exchange Offer”) pursuant to which the
Holder of this Security shall have the right to exchange this Security for
Exchange Notes or, if applicable, to file a registration statement registering
this Security for resale (the “Shelf Registration Statement”). If (1) the
Company fails to file the Exchange Offer registration statement on or prior to
the 240th calendar day after the issue date of this Security or fails to file a
Shelf Registration Statement on or prior to the 240th calendar day after the
date the Shelf Registration Statement is required to be filed pursuant to the
Registration Rights Agreement; or (2) any of the Exchange Offer registration
statement or the Shelf Registration Statement is not declared effective by the
Securities and Exchange Commission (A) in the case of the Exchange Offer
registration statement, on or prior to the 300th calendar day after November 7,
2003 or (B) in the case of the Shelf Registration Statement, on or prior to the
360th calendar day after the date the Shelf Registration Statement is required
to be filed pursuant to the Registration Rights Agreement; or (3) the Company
fails to consummate the Exchange Offer on or prior to the 340th calendar day
after the issue date of this Security (each event referred to in clauses (1)
through (3), a “Registration Default”), then additional interest will accrue in
respect of this Security from and including the next calendar day following
each of (a) such 240 day period in the case of clause (1) above, (b) such 300
day period in the case of clause (2) (A) above or such 360 day period in the
case of clause (2)(B) above and (c) such 340 day period in the case of clause
(3) above, in each case at a rate equal to 0.25% per annum (“Additional
Interest”). The aggregate amount of the Additional Interest in respect of this
Security will in no event exceed 0.25% per annum. All accrued Additional
Interest will be paid to Holders in the same manner as interest is paid under
this Security. Following the cure of all Registration Defaults, the accrual of
Additional Interest will cease.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

(Face of Security continued on next page)

-4-

 

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

     In Witness Whereof, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	Name:
	 	 	 	 	Title:

Attest:

Name:

Title:

     This is one of the Securities of the series designated herein and referred
to in the Indenture.

Dated:

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 	 	 	 	 
	 	 	
By
	

	 	 	 	 	Authorized Officer

 

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 1, 2002 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially
limited in aggregate principal amount to U.S.$700,000,000 (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of this series pursuant to
Section 304, 305, 306, 906 or 1107 of the Indenture and except for any
Securities which, pursuant to Section 303 of the Indenture, are deemed never to
have been authenticated and delivered thereunder).

     The Securities may be redeemed by the Company (i) as provided in Section
1108 of the Indenture and (ii) in whole or in part, at its option at any time
and from time to time at a Redemption Price equal to the greater of (A) 100% of
the principal amount of the Securities to be redeemed and (B) the sum of the
present values of the Remaining Scheduled Payments discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 35 basis points, together with, in
each case, accrued interest on the principal amount of the Securities to be
redeemed to the date of redemption. In connection with such optional
redemption the following defined terms apply:

     “Comparable Treasury Issue” means the United States Treasury security or
securities selected by an Independent Investment Banker as having an actual or
interpolated (on a straight-line basis) maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to the remaining
term of such Securities.

     “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.

     “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities Corp.,
or their affiliates which are primary U.S. Government securities dealers, and
their respective successors, and two other nationally recognized investment
banking firms that are primary U.S. Government securities dealers in The City
of New York (a “Primary Treasury Dealer”) specified from time to time by the
Company; provided, however, that if any of the foregoing, or their affiliates,
as the case may

(Reverse of Security continued on next page)

-6-

 

be, shall cease to be a Primary Treasury Dealer, the Company shall
substitute therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of principal of and interest on such
Security that would be due after the related Redemption Date but for such
redemption. If such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest
payment on such Security will be reduced by the amount of interest accrued on
such Security to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any
successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields
on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining term
of the Securities, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

     The Treasury Rate will be calculated on the third Business Day preceding
the Redemption Date.

     Notice of any such redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to the Holders of the Securities to be
redeemed. On and after any Redemption Date, interest will cease to accrue on
the Securities or any portion thereof called for redemption unless the Company
defaults in the payment of the Redemption Price. On or before any Redemption
Date, the Company shall deposit with a Paying Agent (or the Trustee) money

(Reverse of Security continued on next page)

-7-

 

sufficient to pay the Redemption Price of and accrued interest on the
Securities to be redeemed on such date.

     The Redemption Price shall be calculated by the Independent Investment
Banker, and the Company, the Trustee and any Paying Agent for the Securities
shall be entitled to rely on, and the Company and the Holders shall be bound
by, such calculation.

     Upon the earliest to occur for whatever reason of a Mandatory Redemption
Event, the Company will be required to redeem a portion of this Security, at a
Redemption Price equal to 102% of the principal amount of the portion of this
Security to be redeemed, together with accrued and unpaid interest on the
principal amount of this Security, if any, and any other amounts due to the
Redemption Date, if any, such that, following and after giving effect to any
such mandatory redemption, $200,000,000 aggregate principal amount of the
Securities will remain outstanding. The Redemption Date with respect to any
such mandatory redemption will be determined by the Company and must be within
ten Business Days of the applicable Mandatory Redemption Event. In connection
with such mandatory redemption, the following terms apply:

     “Applicable Credit Agreement” means the credit agreement to be entered
into or entered into among the Company and various financial institutions,
including affiliates of Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and BNP Paribas Securities Corp., the initial purchasers of this
Security (the “Initial Purchasers”), under a commitment letter dated July 15,
2003, as amended from time to time, with affiliates of the Initial Purchasers
pursuant to which those affiliates have agreed to provide financing for the
transactions contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for working
capital requirements, or any alternative credit agreement thereto entered into
among the Company and affiliates of the Initial Purchasers, in any case prior
to the closing of the transactions contemplated by the Asset Purchase Agreement
and in each case as such agreement may be amended from time to time.

     “Asset Purchase Agreement” means the Asset Purchase Agreement, dated as of
July 15, 2003, as amended from time to time (the “Asset Purchase Agreement”),
among the Company, Intelsat (Bermuda), Ltd., Loral Space & Communications
Corporation, as debtor and debtor-in-possession, Loral SpaceCom Corporation, as
debtor and debtor-in-possession and Loral Satellite, Inc., as debtor and
debtor-in-possession.

     “Mandatory Redemption Event” means any of the following: (i) the Asset
Purchase Agreement is terminated, (ii) the Applicable Credit Agreement is not
entered into by all the parties thereto or is terminated at any time following
its execution, in each case on or prior to April 30, 2004, (iii) the Company
fails to meet any condition required for the extension of loans under the
Applicable Credit Agreement on or prior to April 30, 2004 that in accordance
with the terms of the Applicable Credit Agreement must be satisfied, and that
has not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur on or
prior to April 30, 2004.

     Notice of any such mandatory redemption shall be provided to the Holders
of this Security at least one Business Day before the Redemption Date and will
specify the applicable

(Reverse of Security continued on next page)

-8-

 

Mandatory Redemption Event. On and after any Redemption Date, interest
will cease to accrue on the portion of this Security called for redemption
unless the Company defaults in the payment of the Redemption Price. On or
before any Redemption Date, the Company shall deposit with a Paying Agent (or
the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the Securities to be redeemed on such date.

     If less than all of the Securities are to be redeemed, the Securities to
be redeemed shall be selected by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee shall deem fair and appropriate. No
Securities of $1,000 in principal amount or less will be redeemed in part. If
the Company redeems Securities in part, the notice of redemption shall state
the portion of the principal amount of the Securities to be redeemed.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Company shall not be obligated to redeem or purchase the Securities
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof.

     All payments of principal and interest in respect of the Securities shall
be made without withholding or deduction for any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or on behalf of (i) Bermuda, any political
subdivision of Bermuda or any authority therein or thereof, or (ii) any other
jurisdiction (a “Relevant Jurisdiction”) as a result of the Company’s being
organized in or moving the Company’s principal office to such jurisdiction
(“Taxes”), except to the extent that such Taxes are required by Bermuda, any
such political subdivision or authority, or any such Relevant Jurisdiction, to
be withheld or deducted. In the event of any withholding or deduction for any
Taxes, the Company shall pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of Securities on the respective due dates
of such amounts as would have been received by them had no such withholding or
deduction (including for any Taxes payable in respect of Additional Amounts)
been required, except that no such Additional Amounts shall be payable with
respect to any payment on a Security to the extent:

	 	(i)	 	that any such taxes, duties, assessments or other
governmental charges would not have been imposed but for a
connection between the Holder and the jurisdiction imposing the
Taxes other than the holding of such Security and the receipt of
payments with respect to such Security;
	 
	 	(ii)	 	of estate, inheritance, gift or any similar tax, assessment
or other governmental charge imposed with respect to a Security;
	 
	 	(iii)	 	any such taxes, duties, assessments or other governmental
charges that would not have been imposed but for the failure of the
Holder or beneficial owner of such Security to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such
Security, if (a) compliance is required by law or by an applicable
income tax treaty to which the

(Reverse of Security continued on next page)

-9-

 

	 	 	 	jurisdiction imposing the Taxes is a party as a precondition to
exemption from such taxes, duties, assessments or other
governmental charges, and (b) at least 60 days prior to the first
payment date with respect to which the Company shall apply this
clause (iii), the Company shall have notified all the Holders, in
writing, that such Holders or beneficial owners of the Security
will be required to provide such information or documentation; or
	 
	 	(iv)	 	of any such taxes, duties, assessments or other governmental
charges with respect to a Security presented for payment more than
30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for and notice
thereof given to Holders, whichever occurs later, except to the
extent that the Holder of such Security would have been entitled to
such Additional Amounts on presenting such Security for payment on
any date during such 30-day period.

     The Company shall provide the Trustee with documentation (which may
consist of certified copies of such documentation) satisfactory to the Trustee
evidencing the payment of Taxes in respect of which the Company has paid any
Additional Amounts. Copies of such documentation shall be made available to
the Holders of the Securities or the Paying Agent, as applicable, upon request
therefor.

     The Company shall pay all stamp and other duties, if any, which may be
imposed by Bermuda, the United States of America or any other governmental
entity or political subdivision therein or thereof, or any taxing authority of
or in any of the foregoing, with respect to the Indenture or the issuance of
the Securities.

     If, as a result of any amendment to, or change in, the laws (or any
regulation or rulings promulgated thereunder) of Bermuda, any political
subdivision of Bermuda or any taxing authority thereof or therein, or of any
Relevant Jurisdiction, affecting taxation, or any amendment to, or change in,
an official interpretation or application regarding such laws, regulations or
rulings, which change, amendment, application or interpretation becomes
effective or is announced after the Issue Date, the Company would be obligated,
for reasons outside its control, to pay on the next succeeding Interest Payment
Date Additional Amounts in respect of interest payments on the Securities
pursuant to the terms and conditions of Section 1008 of the Indenture, and if
such obligation cannot be avoided by the Company after taking reasonable
measures to avoid it, then, at the Company’s option, the Securities may be
redeemed in whole, but not in part, at any time, on giving not less than 35 nor
more than 65 days’ written notice to the Trustee (unless a shorter notice
period shall be acceptable to the Trustee for its convenience) and not less
than 30 nor more than 60 days’ notice to the Holders of Securities, at a
Redemption Price equal to 100% of the principal amount thereof, together with
accrued interest to the Redemption Date and any Additional Amounts which would
otherwise be payable; provided, however, that (1) no notice of such redemption
may be given earlier than 90 days prior to the earliest date on which the
Company would but for such redemption be obligated to pay such Additional
Amounts, and (2) at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect.

(Reverse of Security continued on next page)

-10-

 

     Before any written notice of redemption pursuant to the preceding
paragraph is given to the Trustee or the Holders, the Company shall deliver to
the Trustee (i) an Officers’ Certificate to the effect that the Company’s
obligations to pay such Additional Amounts cannot be avoided by the Company
taking reasonable measures available to it and (ii) an opinion of independent
legal counsel or an independent auditor (which can be the Company’s regular
independent accountants or other independent accountants of recognized standing
and reasonably satisfactory to the Trustee) of the Company to the effect that
the Company would be obligated to pay Additional Amounts in respect of interest
payments on the Securities because of any amendment to or change in laws of the
kind referred to above. The Trustee will accept such certificate and opinion
as sufficient evidence of the satisfaction of the conditions precedent
described in the preceding paragraph (subject to the proviso thereto), in which
event it will be conclusive and binding on the Holders. Any such notice of
redemption, once given to the Holders, shall be irrevocable.

     Except as otherwise provided herein or in the Indenture, the Securities
that are offered and sold to institutions that are “accredited investors”
within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that are not also Qualified Institutional Buyers shall be issued
in the names of their initial beneficial owners and delivered to such Holders.

     Prior to the expiration of forty days from the later of (i) the date on
which this Security was first offered and (ii) the date of issuance of this
Security, in connection with any transfer of an interest in this Security by a
Holder to a transferee that is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act that is not also a Qualified Institutional Buyer, the transferee
will be required to furnish to the Trustee, as Security Registrar, and the
Company, prior to the transfer, a signed letter, the form of which is contained
in Annex A hereto and which may be obtained from the Trustee, containing, among
other things, representations and agreements relating to the transferee’s
status as an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act and
acknowledging the restrictions on transfer of the Securities, and the Holder,
at the Company’s request, will be required, prior to such transfer, to provide
the Company and the Trustee, as Security Registrar, with an opinion of counsel
reasonably acceptable to the Company, addressed to the Company and in form
acceptable to the Company, to the effect that the transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and is otherwise in compliance
with the transfer restrictions applicable to the Securities that the Holder
seeks to transfer.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the

(Reverse of Security continued on next page)

-11-

 

Securities at the time Outstanding of all series to be affected
(considered together as one class for this purpose). The Indenture also
contains provisions (i) permitting the Holders of a majority in principal
amount of the Securities at the time Outstanding of all series to be affected
under the Indenture (considered together as one class for this purpose), on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and (ii) permitting the
Holders of a majority in principal amount of the Securities at the time
Outstanding of any series to be affected under the Indenture (with each such
series considered separately for this purpose), on behalf of the Holders of all
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee security or indemnity
reasonably satisfactory to the Trustee, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

     Subject to certain limitations in the Indenture, at any time when the
Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), nor exempt from reporting requirements
pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder
of a Security or of a beneficial owner of an interest in a Global Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information
(as defined below) to such Holder or beneficial owner, or to a prospective
purchaser of a Security or a beneficial interest in a Global Security
designated by such Holder or beneficial owner of such interest in order to
permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act of 1933, as amended. “Rule 144A Information” shall be such
information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any
successor provision thereto), as such provision (or successor provision) may be
amended from time to time.

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

(Reverse of Security continued on next page)

-12-

 

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of U.S.$1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

-13-

 

ANNEX A

FORM OF ACCREDITED INVESTOR LETTER

The Bank of New York

101 Barclay Street

Floor 21

New York, NY 10286

Intelsat, Ltd.

North Tower, 2nd Floor

90 Pitts Bay Road

Pembroke HM 08, Bermuda

Dear Sirs and Madams:

     Reference is hereby made to the Indenture, dated as of April 1, 2002 (the
“Indenture”), between Intelsat, Ltd. (the “Company”) and The Bank of New York,
as Trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.

     We are delivering this letter in connection with our proposed purchase of
6 1/2% Senior Notes due 2013 (the “2013 notes”) of the Company.

     We hereby represent, agree and confirm that:

	 	i)	 	we are an institutional “accredited investor” within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act
of 1933, as amended (the “Securities Act”) (an “institutional
accredited investor”);
	 
	 	ii)	 	any purchase of the 2013 notes by us will be for our own
account or for the account of one or more other institutional
investors for which we exercise sole investment discretion (and any
such institutional investors with such accounts are also
institutional accredited investors);
	 
	 	iii)	 	we have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and
risks of purchasing the 2013 notes, and we are able to bear the
economic risks of our investment;
	 
	 	iv)	 	in the event that we purchase any of the 2013 notes, we (and
any separate account for which we are acting) will purchase at least
$250,000 aggregate principal amount of 2013 notes;
	 
	 	v)	 	we are not acquiring the 2013 notes with a view to, or for
offer or sale in connection with, any distribution in violation of
the Securities Act; provided that the disposition of our property
and the property of any accounts for which we are acquiring 2013
notes shall remain at all times within our control;
	 
	 	vi)	 	we agree that if in the future we decide to offer, resell,
pledge or otherwise transfer 2013 notes, we will do so only (i) to
the Company, (ii) for so long as the securities

A-1

 

	 	 	 	are eligible for resale pursuant to Rule 144A, to a person that we
reasonably believe is a qualified institutional buyer acquiring the
2013 notes for its own account or for the account of one or more
other qualified institutional buyers in a transaction meeting the
requirements of Rule 144A, (iii) to an institutional accredited
investor that, prior to the transfer, furnishes to the Company and
the trustee a signed letter, the form of which may be obtained from
the trustee, containing, among other things, representations and
agreements relating to the transferee’s status as an institutional
accredited investor and acknowledging the restrictions on transfer of
the 2013 notes, provided that we must provide the Company and the
trustee with an opinion of counsel reasonably acceptable to the
Company, in form acceptable to the Company, to the effect that the
transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act, and further provided that the transferee purchases at
least $250,000 in aggregate principal amount of 2013 notes from us,
(iv) in an offshore transaction meeting the requirements of Rule 903
or Rule 904 of Regulation S under the Securities Act, (v) pursuant to
an exemption from registration under the Securities Act provided by
Rule 144 under the Securities Act (if available) or (vi) pursuant to
an effective registration statement under the Securities Act, in each
case in accordance with any applicable securities laws of any state
of the United States and any other jurisdiction. We understand
that, prior to any transfer referred to in clauses (ii), (iii), (iv)
or (v) of the preceding sentence, we must furnish to the trustee such
certifications, legal opinions and other information as the Company
may reasonably require to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act. We agree to
notify any subsequent purchaser of 2013 notes from us of the transfer
restriction to which the 2013 notes are subject at the time, if
applicable; and
	 
	 	vii)	 	we either (A) are not an employee benefit plan or other plan
or arrangement, including individual retirement accounts and
annuities, Keogh plans and collective investment funds or insurance
company general or separate accounts in which such plans, accounts
or arrangements are invested, that are subject to the fiduciary
responsibility provisions of the Employee Retirement Income Security
Act of 1974, as amended, referred to as ERISA, and/or Section 4975
of the Internal Revenue Code of 1986, as amended, referred to as the
Code, all of such plans or arrangements referred to collectively as
a plan, or a person investing assets of a plan or any entity whose
underlying assets include assets of a plan by reason of a plan’s
investment in the entity, or (B) represent that the purchase and
holding of the 2013 notes or any interest therein are exempt from
the prohibited transaction restrictions of ERISA and the Code
pursuant to one or more prohibited transaction statutory or
administrative exemptions.

     We acknowledge and understand that you and others will rely upon our
confirmations, acknowledgments and agreements set forth herein, and we agree to
notify you promptly in writing if any of our representations or warranties
herein ceases to be accurate and complete.

A-2

 

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

	 	 	 	 	 
	Date:	 	 	 	 
	
	 	Very truly yours,
	 	 	 	 	 
	 	 	

	 	 	(Name of Purchaser)
	 	 	 	 	 
	 	 	
By:	 	 
	 	 	

	 	 	
Name:	 	 
	 	 	

	 	 	
Title:	 	 
	 	 	

	 	 	
Address:	 	 
	 	 	

A-3

 

[FORM OF EXCHANGE GLOBAL 2013 NOTE]

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

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

INTELSAT, LTD.

6 1/2% SENIOR NOTES DUE 2013

	 	 	 
	No.	 	
U.S.$
	CUSIP NO. 45820E AH 5	 	 

     Intelsat, Ltd., a company duly organized and existing under the laws of
Bermuda (herein called the “Company”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of                    
Dollars (U.S.$                    ), or such
principal amount as may be set forth in the records of the Trustee hereinafter
referred to in accordance with the Indenture, on November 1, 2013, and to pay
interest thereon from November 7, 2003 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on May
1 and November 1 in each year, commencing May 1, 2004, at the rate of 6 1/2%
per annum, until the principal hereof is paid or made available for payment.
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the April 15 or October 15 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange

(Face of Security continued on next page)

 

 

on which the Securities of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in said
Indenture.

     Payment of the principal of (and premium, if any) and any such interest
and other amounts due on this Security will be made at the office or agency of
the Company maintained for that purpose in New York, New York, and at such
other office or agency of the Company as may be maintained for such purpose, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; provided, however,
that at the option of the Company and subject to the next paragraph, payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register. Notwithstanding
any other provision of this security or the Indenture, if this Security is a
Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

     Subject to the preceding paragraph, payment of any amount payable on this
Security will be made by wire transfer of immediately available funds to an
account maintained by the payee with a bank located in the Borough of
Manhattan, The City of New York, if (i) the principal of this Security is at
least U.S.$1,000,000 and (ii) the Holder entitled to receive such payment
transmits a written request for such payment to be made in such manner to the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration – Global Finance Unit, on or before the fifth Business Day
before the day on which such payment is to be made; provided that, in the case
of any such payment due at the Maturity of the principal hereof (other than any
payment of interest that first becomes due on an Interest Payment Date), this
Security must be surrendered at the office or agency of the Company maintained
for that purpose in The City of New York (or at any other office or agency
maintained by the Company for that purpose) in time for the Paying Agent to
make such payment in such funds in accordance with its normal procedures. Any
such request made with respect to any payment on this Security payable to a
particular Holder will remain in effect for all later payments on this Security
payable to such Holder, unless such request is revoked on or before the fifth
Business Day before a payment is to be made, in which case such revocation
shall be effective for such payment and all later payments. In the case of any
payment of interest payable on an Interest Payment Date, such written request
must be made by the Person that is the registered Holder of this Security on
the relevant Regular Record Date. The Company will pay any administrative
costs imposed by banks in connection with making payments by wire transfer with
respect to this Security, but any tax, assessment or other governmental charge
imposed upon any payment will be borne by the Holder of this Security and may
be deducted from the payment by the Company or the Paying Agent.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

(Face of Security continued on next page)

 - 2 -

 

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

     In Witness Whereof, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

	 	 	 	 	 
	 	 	INTELSAT, LTD.
	 	 	 	 	 
	 	 	
By
	 	 
	 	 	 
	 	

	 	 	
 	 	Name:
	 	 	
 	 	Title:

Attest:

Name:

Title:

     This is one of the Securities of the series designated herein and referred
to in the Indenture.

Dated:

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 	 	 	 	 
	 	 	
By
	 
	 	 	 
	

	 	 	 	 	Authorized Officer

 

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 1, 2002 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York, as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, initially
limited in aggregate principal amount to U.S.$700,000,000 (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of this series pursuant to
Section 304, 305, 306, 906 or 1107 of the Indenture and except for any
Securities which, pursuant to Section 303 of the Indenture, are deemed never to
have been authenticated and delivered thereunder).

     The Securities may be redeemed by the Company (i) as provided in Section
1108 of the Indenture and (ii) in whole or in part, at its option at any time
and from time to time at a Redemption Price equal to the greater of (A) 100% of
the principal amount of the Securities to be redeemed and (B) the sum of the
present values of the Remaining Scheduled Payments discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at the Treasury Rate plus 35 basis points, together with, in
each case, accrued interest on the principal amount of the Securities to be
redeemed to the date of redemption. In connection with such optional
redemption the following defined terms apply:

     “Comparable Treasury Issue” means the United States Treasury security or
securities selected by an Independent Investment Banker as having an actual or
interpolated (on a straight-line basis) maturity comparable to the remaining
term of the Securities to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of a comparable maturity to the remaining
term of such Securities.

     “Comparable Treasury Price” means (i) the average of five Reference
Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (ii) if the
Independent Investment Banker obtains fewer than five such Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.

     “Reference Treasury Dealer” means each of Morgan Stanley & Co.
Incorporated, Citigroup Global Markets Inc. and BNP Paribas Securities Corp.,
or their affiliates which are primary U.S. Government securities dealers, and
their respective successors, and two other nationally recognized investment
banking firms that are primary U.S. Government securities dealers in The City
of New York (a “Primary Treasury Dealer”) specified from time to time by the
Company; provided, however, that if any of the foregoing, or their affiliates,
as the case may be, shall cease to be a Primary Treasury Dealer, the Company
shall substitute therefor another Primary Treasury Dealer.

(Reverse of Security continued on next page)

 - 4 -

 

     “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined
by the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business
Day preceding such Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of principal of and interest on such
Security that would be due after the related Redemption Date but for such
redemption. If such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest
payment on such Security will be reduced by the amount of interest accrued on
such Security to such Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date:

	 	(i)	 	the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any
successor publication that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields
on actively traded U.S. Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining term
of the Securities, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue will be
determined and the Treasury Rate will be interpolated or
extrapolated from such yields on a straight line basis, rounding to
the nearest month); or
	 
	 	(ii)	 	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semiannual equivalent
yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for
such Redemption Date.

     The Treasury Rate will be calculated on the third Business Day preceding
the Redemption Date.

     Notice of any such redemption will be mailed at least 30 days but not more
than 60 days before the Redemption Date to the Holders of the Securities to be
redeemed. On and after any Redemption Date, interest will cease to accrue on
the Securities or any portion thereof called for redemption unless the Company
defaults in the payment of the Redemption Price. On or before any Redemption
Date, the Company shall deposit with a Paying Agent (or the Trustee) money
sufficient to pay the Redemption Price of and accrued interest on the
Securities to be redeemed on such date.

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 - 5 -

 

     The Redemption Price shall be calculated by the Independent Investment
Banker, and the Company, the Trustee and any Paying Agent for the Securities
shall be entitled to rely on, and the Company and the Holders shall be bound
by, such calculation.

     Upon the earliest to occur for whatever reason of a Mandatory Redemption
Event, the Company will be required to redeem a portion of this Security, at a
Redemption Price equal to 102% of the principal amount of the portion of this
Security to be redeemed, together with accrued and unpaid interest on the
principal amount of this Security, if any, and any other amounts due to the
Redemption Date, if any, such that, following and after giving effect to any
such mandatory redemption, $200,000,000 aggregate principal amount of the
Securities will remain outstanding. The Redemption Date with respect to any
such mandatory redemption will be determined by the Company and must be within
ten Business Days of the applicable Mandatory Redemption Event. In connection
with such mandatory redemption, the following terms apply:

     “Applicable Credit Agreement” means the credit agreement to be entered
into or entered into among the Company and various financial institutions,
including affiliates of Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and BNP Paribas Securities Corp., the initial purchasers of this
Security (the “Initial Purchasers”), under a commitment letter dated July 15,
2003, as amended from time to time, with affiliates of the Initial Purchasers
pursuant to which those affiliates have agreed to provide financing for the
transactions contemplated by the Asset Purchase Agreement, for the repayment of
near-term debt obligations of the Company as they become due and for working
capital requirements, or any alternative credit agreement thereto entered into
among the Company and affiliates of the Initial Purchasers, in any case prior
to the closing of the transactions contemplated by the Asset Purchase Agreement
and in each case as such agreement may be amended from time to time.

     “Asset Purchase Agreement” means the Asset Purchase Agreement, dated as of
July 15, 2003, as amended from time to time (the “Asset Purchase Agreement”),
among the Company, Intelsat (Bermuda), Ltd., Loral Space & Communications
Corporation, as debtor and debtor-in-possession, Loral SpaceCom Corporation, as
debtor and debtor-in-possession and Loral Satellite, Inc., as debtor and
debtor-in-possession.

     “Mandatory Redemption Event” means any of the following: (i) the Asset
Purchase Agreement is terminated, (ii) the Applicable Credit Agreement is not
entered into by all the parties thereto or is terminated at any time following
its execution, in each case on or prior to April 30, 2004, (iii) the Company
fails to meet any condition required for the extension of loans under the
Applicable Credit Agreement on or prior to April 30, 2004 that in accordance
with the terms of the Applicable Credit Agreement must be satisfied, and that
has not been waived, on or prior to that date, or (iv) the closing of the
transactions contemplated by the Asset Purchase Agreement does not occur on or
prior to April 30, 2004.

     Notice of any such mandatory redemption shall be provided to the Holders
of this Security at least one Business Day before the Redemption Date and will
specify the applicable Mandatory Redemption Event. On and after any Redemption
Date, interest will cease to accrue on the portion of this Security called for
redemption unless the Company defaults in the payment of the Redemption Price.
On or before any Redemption Date, the Company shall deposit with a

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 - 6 -

 

Paying Agent (or the Trustee) money sufficient to pay the Redemption Price
of and accrued interest on the Securities to be redeemed on such date.

     If less than all of the Securities are to be redeemed, the Securities to
be redeemed shall be selected by the Trustee on a pro rata basis, by lot or by
such other method as the Trustee shall deem fair and appropriate. No
Securities of $1,000 in principal amount or less will be redeemed in part. If
the Company redeems Securities in part, the notice of redemption shall state
the portion of the principal amount of the Securities to be redeemed.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

     The Company shall not be obligated to redeem or purchase the Securities
pursuant to any sinking fund or analogous provisions or at the option of the
Holder thereof.

     All payments of principal and interest in respect of the Securities shall
be made without withholding or deduction for any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or on behalf of (i) Bermuda, any political
subdivision of Bermuda or any authority therein or thereof, or (ii) any other
jurisdiction (a “Relevant Jurisdiction”) as a result of the Company’s being
organized in or moving the Company’s principal office to such jurisdiction
(“Taxes”), except to the extent that such Taxes are required by Bermuda, any
such political subdivision or authority, or any such Relevant Jurisdiction, to
be withheld or deducted. In the event of any withholding or deduction for any
Taxes, the Company shall pay such additional amounts (“Additional Amounts”) as
will result in receipt by the Holders of Securities on the respective due dates
of such amounts as would have been received by them had no such withholding or
deduction (including for any Taxes payable in respect of Additional Amounts)
been required, except that no such Additional Amounts shall be payable with
respect to any payment on a Security to the extent:

	 	(i)	 	that any such taxes, duties, assessments or other
governmental charges would not have been imposed but for a
connection between the Holder and the jurisdiction imposing the
Taxes other than the holding of such Security and the receipt of
payments with respect to such Security;
	 
	 	(ii)	 	of estate, inheritance, gift or any similar tax, assessment
or other governmental charge imposed with respect to a Security;
	 
	 	(iii)	 	any such taxes, duties, assessments or other governmental
charges that would not have been imposed but for the failure of the
Holder or beneficial owner of such Security to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the taxing jurisdiction of the Holder or beneficial owner of such
Security, if (a) compliance is required by law or by an applicable
income tax treaty to which the jurisdiction imposing the Taxes is a
party as a precondition to exemption from such taxes, duties,
assessments or other governmental charges, and (b) at least 60 days
prior to the first payment date with respect to which the Company
shall apply this clause (iii), the Company shall have notified all
the Holders, in writing,

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 - 7 -

 

	 	 	 	that such Holders or beneficial owners of the Security will be
required to provide such information or documentation; or
	 
	 	(iv)	 	of any such taxes, duties, assessments or other governmental
charges with respect to a Security presented for payment more than
30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for and notice
thereof given to Holders, whichever occurs later, except to the
extent that the Holder of such Security would have been entitled to
such Additional Amounts on presenting such Security for payment on
any date during such 30-day period.

     The Company shall provide the Trustee with documentation (which may
consist of certified copies of such documentation) satisfactory to the Trustee
evidencing the payment of Taxes in respect of which the Company has paid any
Additional Amounts. Copies of such documentation shall be made available to
the Holders of the Securities or the Paying Agent, as applicable, upon request
therefor.

     The Company shall pay all stamp and other duties, if any, which may be
imposed by Bermuda, the United States of America or any other governmental
entity or political subdivision therein or thereof, or any taxing authority of
or in any of the foregoing, with respect to the Indenture or the issuance of
the Securities.

     If, as a result of any amendment to, or change in, the laws (or any
regulation or rulings promulgated thereunder) of Bermuda, any political
subdivision of Bermuda or any taxing authority thereof or therein, or of any
Relevant Jurisdiction, affecting taxation, or any amendment to, or change in,
an official interpretation or application regarding such laws, regulations or
rulings, which change, amendment, application or interpretation becomes
effective or is announced after the Issue Date, the Company would be obligated,
for reasons outside its control, to pay on the next succeeding Interest Payment
Date Additional Amounts in respect of interest payments on the Securities
pursuant to the terms and conditions of Section 1008 of the Indenture, and if
such obligation cannot be avoided by the Company after taking reasonable
measures to avoid it, then, at the Company’s option, the Securities may be
redeemed in whole, but not in part, at any time, on giving not less than 35 nor
more than 65 days’ written notice to the Trustee (unless a shorter notice
period shall be acceptable to the Trustee for its convenience) and not less
than 30 nor more than 60 days’ notice to the Holders of Securities, at a
Redemption Price equal to 100% of the principal amount thereof, together with
accrued interest to the Redemption Date and any Additional Amounts which would
otherwise be payable; provided, however, that (1) no notice of such redemption
may be given earlier than 90 days prior to the earliest date on which the
Company would but for such redemption be obligated to pay such Additional
Amounts, and (2) at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect.

     Before any written notice of redemption pursuant to the preceding
paragraph is given to the Trustee or the Holders, the Company shall deliver to
the Trustee (i) an Officers’ Certificate to the effect that the Company’s
obligations to pay such Additional Amounts cannot be avoided by the Company
taking reasonable measures available to it and (ii) an opinion of independent
legal counsel or an independent auditor (which can be the Company’s regular
independent accountants or other independent accountants of recognized standing
and reasonably satisfactory to the

(Reverse of Security continued on next page)

 - 8 -

 

Trustee) of the Company to the effect that the Company would be obligated
to pay Additional Amounts in respect of interest payments on the Securities
because of any amendment to or change in laws of the kind referred to above.
The Trustee will accept such certificate and opinion as sufficient evidence of
the satisfaction of the conditions precedent described in the preceding
paragraph (subject to the proviso thereto), in which event it will be
conclusive and binding on the Holders. Any such notice of redemption, once
given to the Holders, shall be irrevocable.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with
certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time Outstanding of all series to be affected (considered together as
one class for this purpose). The Indenture also contains provisions (i)
permitting the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected under the Indenture
(considered together as one class for this purpose), on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and (ii) permitting the Holders of a
majority in principal amount of the Securities at the time Outstanding of any
series to be affected under the Indenture (with each such series considered
separately for this purpose), on behalf of the Holders of all Securities of
such series, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall
be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee security or indemnity
reasonably satisfactory to the Trustee, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent with such request, and shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

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 - 9 -

 

     Subject to certain limitations in the Indenture, at any time when the
Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), nor exempt from reporting requirements
pursuant to Rule 12g3-2(b) under the Exchange Act, upon the request of a Holder
of a Security or of a beneficial owner of an interest in a Global Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information
(as defined below) to such Holder or beneficial owner, or to a prospective
purchaser of a Security or a beneficial interest in a Global Security
designated by such Holder or beneficial owner of such interest in order to
permit compliance by such Holder or beneficial owner with Rule 144A under the
Securities Act of 1933, as amended. “Rule 144A Information” shall be such
information as is specified pursuant to paragraph (d)(4) of Rule 144A (or any
successor provision thereto), as such provision (or successor provision) may be
amended from time to time.

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

     As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of U.S.$1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

     Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for
all purposes, whether or not this Security be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

 - 10 -exv4w7

 

Exhibit 4.7
 
 

EXECUTION COPY

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered
into as of November 7, 2003 by and among Intelsat, Ltd., a Bermuda company (the
"Company”), and Morgan Stanley & Co. Incorporated, Citigroup Global Markets
Inc. and BNP Paribas Securities Corp.

     The Company proposes to issue and sell, pursuant to the Purchase Agreement
dated October 31, 2003, among the Company and the Initial Purchasers (the
“Purchase Agreement”), to the Initial Purchasers $400,000,000 aggregate
principal amount of the Company’s 5 1/4% Senior Notes due 2008 (the “2008
Notes”) and $700,000,000 aggregate principal amount of the Company’s 6 1/2%
Senior Notes due 2013 (the “2013 Notes”, together with the 2008 Notes, the
"Notes”). The Notes are to be issued by the Company pursuant to the provisions
of an indenture dated as of April 1, 2002 (as amended, supplemented or
otherwise modified from time to time, the “Indenture”) among the Company and
The Bank of New York, as trustee (the “Trustee”).

     In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Company has agreed to provide to the Initial Purchasers and
their direct and indirect transferees the registration rights with respect to
the Notes as set forth in this Agreement. The execution and delivery of this
Agreement is a condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

	1.
	 	Definitions.

     As used in this Agreement, the following capitalized defined terms shall
have the following meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from time to
time.

     “1934 Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.

     “additional interest” shall have the meaning set forth in Section 2(e)
hereof.

     “Business Day” shall have the meaning set forth in the Indenture.

     “Closing Date” shall mean the Closing Date as defined in the Purchase
Agreement.

     “Company” shall have the meaning set forth in the preamble.

     “consummate” shall have the meaning set forth in Section 2(a) hereof.

1

 

     "Exchange Date” shall have the meaning set forth in Section 2(a)(ii)
hereof.

     “Exchange Notes” shall mean notes issued by the Company under the
Indenture and containing terms identical to the 2008 Notes or the 2013 Notes,
as the case may be, (except that (i) interest thereon shall accrue from the
last date on which interest was paid on the 2008 Notes or the 2013 Notes, as
the case may be, (or, if the Exchange Notes are authenticated between a record
date and an interest payment date, from such interest payment date) or, if no
such interest has been paid, from the Closing Date and (ii) the Exchange Notes
will not provide for additional interest accruing thereon following a failure
to register such Exchange Notes under the 1933 Act and will not contain terms
with respect to transfer restrictions) and to be offered to Holders of Notes in
exchange for Notes pursuant to the Exchange Offer.

     “Exchange Offer” shall mean an exchange offer by the Company of Exchange
Notes for all Notes that are Registrable Securities pursuant to Section 2(a)
hereof.

     “"Exchange Offer Registration” shall mean a registration under the 1933 Act
effected pursuant to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean an exchange offer
registration statement on an appropriate form under the 1933 Act and all
amendments and supplements to such registration statement, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     “Holders” shall mean the Initial Purchasers, for so long as they own any
Registrable Securities, and their successors, assigns and direct and indirect
transferees who become owners of Registrable Securities under the Indenture,
provided that, for purposes of Sections 4 and 5 of this Agreement, the term
"Holders” shall also include Participating Broker-Dealers.

     “Indemnified Person” shall have the meaning set forth in Section 5(c)
hereof.

     “Indemnifying Person” shall have the meaning set forth in Section 5(c)
hereof.

     “Indenture” shall have the meaning set forth in the preamble.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate
principal amount of outstanding Registrable Securities; provided that, for
purposes of this Agreement, whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or any affiliates (as such term is
defined in Rule 405 under the 1933 Act) of the Company shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage or amount.

     “Notes” shall have the meaning set forth in the preamble.

2

 

     “Offer Termination Date” shall have the meaning set forth in Section
2(a)(iv) hereof.

     “Participating Broker-Dealer” shall have the meaning set forth in Section
4(a) hereof.

     “Person” shall mean an individual, partnership, limited liability company,
corporation, trust or unincorporated organization, or a government or agency or
political subdivision thereof.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Prospectus” shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case including
all material incorporated by reference therein.

     “Registrable Security” shall mean each Note until the earliest to occur of
(i) the date on which that Note has been exchanged by a Person other than a
broker-dealer for an Exchange Note in the Exchange Offer; (ii) following the
exchange by a broker-dealer in the Exchange Offer of a Note for an Exchange
Note, the earlier of (A) the date on which that Exchange Note is sold to a
purchaser who receives from that broker-dealer on or prior to the date of that
sale a copy of the Prospectus contained in the Exchange Offer Registration
Statement and (B) the date on which the Exchange Offer Registration Statement
has been effective under the 1933 Act for a period of 60 consecutive days;
(iii) the date on which that Note has been effectively registered under the
1933 Act and disposed of in accordance with the Shelf Registration Statement;
(iv) the date on which that Note is sold by the Holder pursuant to Rule 144
under the 1933 Act or may be sold by the holder pursuant to Rule 144(k) under
the 1933 Act or (v) the date on which the Note is cancelled or redeemed or
ceases to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 2(e)
hereof.

     “Registration Expenses” shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange and National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or “blue
sky” laws, (iii) all expenses of any Person in preparing or assisting in
preparing, word processing, printing and distributing any Registration
Statement, any Prospectus, any amendments or supplements thereto, and any other
documents relating to the Company’s performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (vi)
the fees and disbursements of the Trustee and its counsel (and additionally
including one local counsel), (vii) the fees and disbursements of counsel for
the Company and, in the case of a Shelf Registration Statement, the fees and
disbursements of one counsel for the Holders (which counsel shall be selected
by the Majority Holders and which counsel may also be counsel for the Initial
Purchasers (“counsel for the Holders”)) and (viii) the fees and disbursements
of the

3

 

 independent public accountants of the Company, including the expenses of
any special audits or “cold comfort” letters required by or incident to such
performance and compliance.

     “Registration Statement” shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement and all amendments and supplements to
any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

     “SEC” shall mean the Securities and Exchange Commission.

     "Shelf Registration” shall mean a registration effected pursuant to
Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement
of the Company pursuant to the provisions of Section 2(b) of this Agreement
which covers Registrable Securities on an appropriate form under Rule 415 under
the 1933 Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

     “TIA” shall have the meaning set forth in Section 3(l) hereof.

     “Trustee” shall have the meaning set forth in the preamble.

     “Underwriters” shall have the meaning set forth in Section 3 hereof.

     “Underwritten Offering” shall mean a registration in which Registrable
Securities are sold to an Underwriter for reoffering to the public.

     2.   Registration under the 1933 Act.

          (a)   To the extent not prohibited by any applicable law or applicable
interpretation of the staff of the SEC, the Company shall (x) file or cause to
be filed or, on or prior to the date that is 240 calendar days after the
Closing Date, an Exchange Offer Registration Statement covering the offer by
the Company to the Holders to exchange all of the Registrable Securities for
Exchange Notes, and (y) use its reasonable efforts to (1) have such
Registration Statement declared effective by the SEC on or prior to the date
that is 300 calendar days after the Closing Date and remain effective until the
closing of the Exchange Offer and (2) to consummate the Exchange Offer with
respect to the Notes on or prior to the date that is 340 calendar days after
the Closing Date. For purposes hereof, “consummate” shall mean, with respect
to the Notes, that the Exchange Offer Registration Statement shall have been
declared effective, the period of the Exchange Offer provided in accordance
with clause 2(a)(ii) below shall have expired and all Registrable Securities
validly tendered and not withdrawn in connection with such Exchange Offer shall
have been exchanged for Exchange Notes. The Company shall commence the
Exchange Offer with respect to the Notes by mailing or causing to

4

 

be mailed the related Exchange Offer Prospectus and accompanying documents
to each Holder stating, in addition to such other disclosures as are required
by applicable law:

          (i)   that the Exchange Offer is being made pursuant to this Agreement
and that all Registrable Securities validly tendered and not withdrawn
will be accepted for exchange;

          (ii)   the dates of acceptance for exchange (which shall be a period
of at least 20 Business Days from the date such notice is mailed) (each
such date being an “Exchange Date”);

          (iii)   that any Registrable Security not tendered will remain
outstanding and continue to accrue interest, but will not retain any
rights under this Agreement, unless the Holder of such Registrable
Security delivers a notice pursuant to Section 2(b)(iii);

          (iv)   that Holders electing to have a Registrable Security exchanged
pursuant to the Exchange Offer will be required to surrender, or make
book-entry delivery of, such Registrable Security and deliver (including
via an agent’s message) the enclosed letters of transmittal to the
institution and at the address specified in the notice prior to the close
of business on the last Exchange Date (the “Offer Termination Date”); and

          (v)   that Holders will be entitled to withdraw their election, not
later than the close of business on the Offer Termination Date.

As soon as practicable after the Offer Termination Date, the Company
shall:

               (A)   accept for exchange Registrable Securities or portions
thereof tendered and not validly withdrawn pursuant to the Exchange
Offer; and

               (B)   deliver, or cause to be delivered, to the Trustee for
cancellation all Registrable Securities or portions thereof so
accepted for exchange by the Company and issue, and cause the
Trustee to promptly authenticate and deliver to each Holder, an
Exchange Note equal in aggregate principal amount to the aggregate
principal amount of the Registrable Securities surrendered by such
Holder.

     The Company shall use reasonable efforts to complete the Exchange Offer as
provided above and shall comply with the applicable requirements of the 1933
Act, the 1934 Act and other applicable laws and regulations in connection with
the Exchange Offer.

          (b)   In the event that (i) the Company determines that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be
consummated as soon as practicable after the Offer Termination Date because it
would violate applicable law or

5

 

the applicable interpretations of the staff of the SEC, (ii) the Exchange
Offer is not for any other reason consummated within 340 calendar days after
the Closing Date or (iii) any Holder of Registrable Securities shall notify the
Company prior to the date that is 20 Business Days following the Offer
Termination Date that (A) such Holder was prohibited by law or SEC policy from
participating in the applicable Exchange Offer, or (B) such Holder may not
resell the Exchange Notes acquired by it in the Exchange Offer to the public
without delivering a Prospectus and the Prospectus contained in the Exchange
Offer Registration Statement is not appropriate or available for those resales,
or (C) such Holder is a broker-dealer and holds Notes acquired directly from
the Company or any of its affiliates, the Company shall use reasonable efforts
to cause to be filed as soon as practicable after such determination, date or
notice is given to the Company, as the case may be, a Shelf Registration
Statement providing for the sale by the Holders of all of the Registrable
Securities (except as provided in the next sentence) and use reasonable efforts
to have such Shelf Registration Statement declared effective by the SEC. In
the event the Company is required to file a Shelf Registration Statement solely
as a result of the matters referred to in clause (iii) of the preceding
sentence, the Company shall file and use reasonable efforts to have declared
effective by the SEC both an Exchange Offer Registration Statement pursuant to
Section 2(a) with respect to all Registrable Securities and a Shelf
Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement or may be a separate Registration
Statement) with respect to offers and sales of Registrable Securities held by
the Holders who delivered the notice referred to in clause (iii) of the
preceding sentence. The Company agrees to use reasonable efforts to keep the
Shelf Registration Statement continuously effective until the earlier of (x)
two years after the Closing Date or (y) such time as all of the Registrable
Securities covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement. The Company further agrees to supplement
or amend the Shelf Registration Statement if required by the rules, regulations
or instructions applicable to the registration form used by the Company for
such Shelf Registration Statement or by the 1933 Act or by any other rules and
regulations thereunder and to use reasonable efforts to cause any such
amendment to become effective and such Shelf Registration Statement to become
usable as soon as practicable thereafter. The Company agrees to furnish to the
Holders of Registrable Securities copies of any such supplement or amendment
promptly after its being used or filed with the SEC.

        (c)   The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) and Section 2(b).

        (d)   An
Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that if, after it has been declared effective, the
offering of Registrable Securities pursuant to a Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Registration Statement
will be deemed not to be effective during the period of such interference until
the offering of Registrable Securities pursuant to such Registration Statement
may legally resume.

6

 

          (e)   Without duplication of the provisions set forth in the Indenture, in
the event that:

               (i)   (A) the Exchange Offer Registration Statement relating to the
Exchange Offer is not filed with the SEC on or prior to the date that is
240 calendar days after the Closing Date, or (B) if a Shelf Registration
Statement is required to be filed and such Shelf Registration Statement
is not filed within 240 calendar days after such obligation arises, or

               (ii)   (A) the Exchange Offer Registration Statement is not declared
effective on or prior to the date that is 300 calendar days after the
Closing Date, or (B) if a Shelf Registration Statement is required to be
filed and such Shelf Registration Statement is not declared effective
within 360 calendar days after the date such Shelf Registration Statement
was required to be filed, or

               (iii)   the Exchange Offer is not consummated on or prior to the date
that is 340 calendar days after the Closing Date,

(each such event referred to in clauses (i) through (iii), a “Registration
Default”), then additional interest (“additional interest”) will accrue (in
addition to, and at the same time and in the same manner as, the interest
otherwise due on the 2008 Notes and the 2013 Notes, respectively) on the
principal amount of each Registrable Security in an amount equal to 0.25% per
annum commencing on the date from and including the next calendar day following
the expiration of each of (a) such 240 day period in the case of clause (i)(A)
above or such 240 day period in the case of clause (i)(B) above, (b) such 300
day period in the case of clause (ii) (A) above or such 360 day period in the
case of clause (ii)(B) above, as applicable, and such (c) 340 day period in the
case of clause (iii) above. Such additional interest will cease accruing on
such Registrable Securities when all Registration Defaults have been cured.
Notwithstanding the existence of more than one Registration Default, the
interest rate on the Notes shall not be increased by more than 0.25% per annum.

          (f)   Without limiting the remedies available to the Initial Purchasers and
the Holders, the Company acknowledges that any failure by the Company to comply
with its obligations under Section 2(a) and Section 2(b) hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
any Initial Purchaser or Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Section 2(a) and Section
2(b) hereof.

     3. Registration Procedures.

     In connection with the obligations of the Company with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof and
subject to the terms and conditions thereof, the Company shall reasonably
promptly:

7

 

          (a)   prepare and file with the SEC under the 1933 Act a Registration
Statement, which Registration Statement shall (x) be on an appropriate form
under the 1933 Act selected by the Company, (y) in the case of a Shelf
Registration, be on a form available for the sale of the Registrable Securities
by the selling Holders thereof and (z) comply as to form in all material
respects with the requirements of the applicable form and include all financial
statements required by the SEC to be filed therewith, and use reasonable
efforts to cause such Registration Statement to become effective and remain
effective in accordance with Section 2 hereof;

          (b)   prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period in accordance with
Section 2 hereof and cause each Prospectus to be supplemented by any required
prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the 1933 Act; and keep each Prospectus current during the period
described under Section 4(3) and Rule 174 under the 1933 Act that is applicable
to transactions by brokers or dealers with respect to the Registrable
Securities or Exchange Notes;

          (c)   in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, to counsel for the Initial Purchasers and to each
Underwriter of an Underwritten Offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus and any amendment or supplement thereto and such other documents as
such Holder or Underwriter may reasonably request, in order to facilitate the
public sale or other disposition of the Registrable Securities; and the Company
consents to the use of such Prospectus and any amendment or supplement thereto
in accordance with applicable law by each of the selling Holders of Registrable
Securities and any such Underwriters in connection with the offering and sale
of the Registrable Securities covered by and in the manner described in such
Prospectus or any amendment or supplement thereto in accordance with applicable
law;

          (d)   use reasonable efforts (i) to register or qualify the Registrable
Securities under all applicable state securities or “blue sky” laws of such
jurisdictions as any Holder of Registrable Securities covered by a Registration
Statement shall reasonably request in writing by the time the applicable
Registration Statement is declared effective by the SEC and (ii) to cooperate
with such Holder in connection with any filings required to be made with the
National Association of Securities Dealers, Inc. and do any and all other acts
and things which may be reasonably necessary to enable such Holder to
consummate the disposition in each such jurisdiction of such Registrable
Securities owned by such Holder; provided, however, that the Company shall not
be required to (A) register or qualify as a foreign corporation or as a dealer
in securities in any jurisdiction where it would not otherwise be required to
register or qualify but for this Section, (B) subject itself to taxation in any
such jurisdiction if it is not then so subject or (C) consent to general
service of process in any such jurisdiction if it has not already so consented;

8

 

          (e)   in the case of a Shelf Registration, notify each Holder of Registrable
Securities and counsel for the Initial Purchasers promptly and, if requested by
such Persons, confirm such advice in writing, (i) when such Shelf Registration
Statement has become effective and when any post-effective amendment thereto
has been filed and becomes effective, (ii) of any request by the SEC or any
state securities authority for amendments and supplements to a Registration
Statement and Prospectus or for additional information after the Registration
Statement has become effective, (iii) of the issuance by the SEC or any state
securities authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose,
(iv) if, between the effective date of a Registration Statement and the closing
of any sale of Registrable Securities covered thereby, the Company receives any
notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, (v) of the happening of any event during the
period a Shelf Registration Statement is effective which makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein
not misleading and (vi) of any determination by the Company to file a
post-effective amendment to a Registration Statement;

          (f)   make reasonable efforts to promptly obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement and, as promptly as
practicable, provide notice to each Holder of the withdrawal of any such order;

          (g)   in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto (without
documents incorporated by reference therein, if any, or exhibits thereto,
unless so requested);

          (h)   in the case of a Shelf Registration, cooperate with the selling
Holders of Registrable Securities to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold and not
bearing any restrictive legends (unless required by applicable securities laws)
and enable such Registrable Securities to be in such denominations (consistent
with the provisions of the Indenture) and registered in such names as the
selling Holders may reasonably request at least two Business Days prior to the
closing of any sale of Registrable Securities;

          (i)   in the case of a Shelf Registration, upon the occurrence of any event
contemplated by Section 3(e)(v) hereof while the Company maintains a Shelf
Registration Statement, use reasonable efforts to prepare a supplement or
post-effective amendment to the applicable Shelf Registration Statement or the
related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers
of the Registrable Securities, such Prospectus will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading. The Holders who have received the notice referred to in
Section 3(e)(v) above hereby agree to suspend use of the

9

 

Prospectus until the Company has amended or supplemented the Prospectus to
correct such misstatement or omission;

          (j)   within a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus, or any document which is to be
incorporated by reference into a Registration Statement or Prospectus after the
initial filing of a Registration Statement, provide copies of such document to
the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, counsel for the Holders) and make such of the
representatives of the Company as shall be reasonably requested by the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration
Statement, counsel for the Holders) available for discussion of such document,
and shall not at any time file or make any amendment to the Registration
Statement, any Prospectus or any amendment of or supplement to a Registration
Statement or a Prospectus or any document which is to be incorporated by
reference into a Registration Statement or a Prospectus, of which the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration
Statement, counsel for the Holders) shall not have previously been advised and
furnished a copy or to which the Initial Purchasers or their counsel (and, in
the case of a Shelf Registration Statement, counsel for the Holders) shall
reasonably object;

          (k)   obtain a CUSIP number for all Exchange Notes or Registrable
Securities, as the case may be, not later than the effective date of a
Registration Statement;

          (l)   cause the Indenture to be qualified under the Trust Indenture Act of
1939, as amended (the “TIA”), in connection with the registration of the
Exchange Notes or Registrable Securities, as the case may be, and cooperate
with the Trustee and the Holders to effect such changes to the Indenture as may
be required for the Indenture to be so qualified in accordance with the terms
of the TIA and execute, and use reasonable efforts to cause the Trustee to
execute, all documents as may be required to effect such changes and all other
forms and documents required to be filed with the SEC to enable the Indenture
to be so qualified in a timely manner;

          (m)   in the case of a Shelf Registration, make available for inspection by
a representative of the Holders of the Registrable Securities, any Underwriter
participating in any disposition pursuant to such Shelf Registration Statement,
and accountants designated by and counsel for the Holders, at reasonable times
and in a reasonable manner, all financial and other records, pertinent
documents and properties of the Company, and cause the officers, directors and
employees of the Company to supply all information reasonably requested by any
such representative, Underwriter, attorney or accountant in connection with a
Shelf Registration Statement, in each case that would customarily be reviewed
or examined in connection with a “due diligence” review of the Company;
provided, however, that such representatives, attorneys or accountants shall be
acceptable to the Company in its reasonable judgment and shall agree to enter
into a written confidentiality agreement acceptable to the Company, if so
requested, regarding any records, information or documents that are designated
by the Company as confidential, unless such records, information or documents
are available to the public or

10

 

disclosure of such records, information or documents is required by court
or administrative order, and to use information obtained pursuant to this
provision only in connection with the transaction for which such information
was obtained, and not for any other purpose;

          (n)   if reasonably requested by any Holder of Registrable Securities
covered by a Registration Statement as necessary to enable such Holder to
dispose of Registrable Securities pursuant to such Registration Statement under
the 1933 Act, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such
Holder reasonably requests to be included therein and (ii) make all required
filings of such Prospectus supplement or such post-effective amendment promptly
after the Company has received notification of the matters to be incorporated
in such filing;

          (o)   cause all Registrable Securities covered by a Registration Statement
(i) to be listed on each securities exchange or quotation system on which
similar securities issued by the Company are then listed, if so requested by
the Majority Holders and (ii) if not theretofore rated, to be rated with the
appropriate rating agencies, if so requested by the Majority Holders; and

          (p)   in the case of a Shelf Registration, enter into such customary
agreements and take all such other customary actions, if any, in connection
therewith (including those requested by counsel for the Holders) as the
Majority Holders reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities pursuant to a Shelf Registration
Statement and in such connection, (i) to the extent possible, make such
representations and warranties, and provide such indemnification and
contribution, to the Holders and any Underwriters of such Registrable
Securities with respect to the business of the Company and its subsidiaries,
the Registration Statement, Prospectus and documents incorporated by reference
or deemed incorporated by reference, if any, in each case, in form, substance
and scope as are customarily made by issuers to underwriters in underwritten
offerings, (ii) obtain opinions of counsel to the Company in customary form,
scope and substance, covering the matters customarily covered in opinions
requested in underwritten offerings, (iii) obtain “cold comfort” letters from
the independent certified public accountants of the Company (and, if necessary,
any other certified public accountant of any subsidiary of the Company, or any
business acquired by the Company for which financial statements and financial
data are or are required to be included in the Registration Statement) in
customary form as permitted by Statement on Auditing Standards No. 72 (or any
superseding statement on auditing standards) addressed to each selling Holder
and Underwriter of Registrable Securities, subject to receipt of appropriate
documentation as contemplated by Statement of Auditing Standards No. 72 (or any
superseding statement on auditing standards), and (iv) deliver such customary
documents and certificates as may be reasonably requested by counsel for the
Majority Holders to evidence the continued validity of the representations and
warranties of the Company made pursuant to clause (i) above and to evidence
compliance with any customary conditions in an underwriting agreement,
provided, however, that the Company shall not be required to enter into any
such underwriting agreement more than once and may delay entering into such
agreement during any period in which a Suspension Notice (as defined below) is
in effect.

11

 

     In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder’s participation in a Shelf Registration) require each
Holder of Registrable Securities to furnish to the Company such information
regarding such Holder and the proposed distribution by such Holder of such
Registrable Securities as in the reasonable opinion of both the Company and the
Company’s counsel shall be required under applicable securities laws and as the
Company may from time to time reasonably request in writing for inclusion in
such Shelf Registration Statement. Each such Holder agrees to notify the
Company as promptly as practicable of any inaccuracy or change in information
previously furnished by such Holder to the Company or of the occurrence of any
event, in either case, as a result of which any prospectus relating to such
registration contains or would contain an untrue statement of a material fact
regarding such Holder or such Holder’s intended method of distribution of such
Exchange Notes, or fails or would fail to state a material fact regarding such
Holder or such Holder’s intended method of distribution of such Exchange Notes
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, and promptly to furnish
to the Company any additional information required to correct and update any
previously furnished information or required so that such prospectus shall not
contain, with respect to such Holder or the distribution of such Exchange
Notes, an untrue statement of a material fact or fail to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing. Each such Holder shall
comply with the provisions of the 1933 Act applicable to such Holder with
respect to the disposition by such Holder of Exchange Notes covered by such
Registration Statement in accordance with the intended methods of disposition
by such Holder set forth in such Registration Statement.

     In the case of a Shelf Registration Statement, each Holder agrees that,
upon receipt of any notice from the Company (i) of the happening of any event
of the kind described in Section 3(e) (iii) or (v) hereof, (ii) that the
Company is in possession of material information that has not been disclosed to
the public and the Company reasonably deems it to be advisable not to disclose
such information in a Registration Statement or (iii) that the Company is in
the process of a registered offering of securities and the Company reasonably
deems it to be advisable to temporarily discontinue disposition of Registrable
Securities pursuant to a Shelf Registration Statement (in each case, such
notice being hereinafter referred to as a “Suspension Notice”), such Holder
will forthwith discontinue disposition of Registrable Securities pursuant to
such Registration Statement and shall not be entitled to the benefits of
Section 5 hereof with respect to any sales made by it in contravention of this
paragraph until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(i) hereof or a notice in
accordance with Section 3(f) hereof that any order suspending the effectiveness
of the Shelf Registration Statement has been withdrawn, or, in the case of (ii)
or (iii) above, until further notice from the Company that disposition of
Registrable Securities may resume; provided, that such further notice will be
given within 90 days of the Suspension Notice in the case of (ii) above and
within 120 days of the Suspension Notice in the case of (iii) above and;
provided, further, that in the case of (ii) and (iii) above, any Suspension
Notice must be based upon a good faith determination of the board of directors
of the Company or the executive committee thereof that such notice is
necessary; and, if so directed by the Company, such Holder will deliver to the

12

 

Company (at the Company’s expense) or destroy all copies in its
possession, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Registrable Securities current at the time of
receipt of such Suspension Notice.

     If the Company shall give any such Suspension Notice, the Company shall
extend the period during which the Registration Statement shall be maintained
effective pursuant to this Agreement by the number of days during the period
from and including the date of the giving of such notice to and including the
date when the Holders shall have received copies of the supplemented or amended
Prospectus necessary to resume such dispositions or advice from the Company
that delivery may be resumed. There must be at least 90 consecutive days in
any 365 day period during which a Suspension Notice pursuant to (ii) or (iii)
above is not in effect.

     The Holders of Registrable Securities covered by a Shelf Registration
Statement who desire to do so may sell such Registrable Securities in an
Underwritten Offering. In any such Underwritten Offering, the investment
banker or investment bankers and manager or managers (the “Underwriters”) that
will administer the offering will be selected by the Holders of a majority in
principal amount of the Registrable Securities proposed to be included in such
offering, subject to the approval of the Company acting reasonably. In the
case of any Underwritten Offering, the Company shall provide written notice to
the Holders of all Registrable Securities covered by the applicable Shelf
Registration Statement of such Underwritten Offering at least 30 days prior to
the filing of a prospectus supplement for such Underwritten Offering. Such
notice shall (x) offer each such Holder the right to participate in such
Underwritten Offering, (y) specify a date, which shall be no earlier than 10
days following the date of such notice, by which such Holder must inform the
Company of its intent to participate in such Underwritten Offering and (z)
include the instructions such Holder must follow in order to participate in
such Underwritten Offering.

          4.   Participation of Broker-Dealers in Exchange Offer.

          (a)   The Company understands that the staff of the SEC has taken the
position that any broker-dealer that receives Exchange Notes for its own
account in the Exchange Offer in exchange for Notes that were acquired by such
broker-dealer as a result of market-making or other trading activities (a
“Participating Broker-Dealer”) may be deemed to be an “underwriter” within the
meaning of the 1933 Act in connection with any resale of such Exchange Notes.

          (b)   In light of the above, notwithstanding the other provisions of this
Agreement, the Company agrees that the provisions of this Agreement as they
relate to a Shelf Registration shall also apply to an Exchange Offer
Registration, to the extent, and with such reasonable modifications thereto, as
may be reasonably requested by the Initial Purchasers or one or more
Participating Broker-Dealers pursuant to clause 4(b)(ii) below in order to
expedite or facilitate the disposition of any Exchange Notes by Participating
Broker-Dealers consistent with the positions of the staff of the SEC recited in
Section 4(a) above; provided that:

13

 

               (i)   the Company shall not be required to amend or supplement the
Prospectus contained in the Exchange Offer Registration Statement, as
would otherwise be contemplated by Section 3(i), for a period exceeding
90 days after the Offer Termination Date (as such period may be extended
pursuant to the penultimate paragraph of Section 3) and Participating
Broker-Dealers shall not be authorized by the Company to deliver, and
shall not deliver, such Prospectus after such period in connection with
the resales contemplated by this Section; and

               (ii)   the application of the Shelf Registration procedures set forth
in Section 3 of this Agreement to an Exchange Offer Registration, to the
extent not required by the positions of the staff of the SEC or the 1933
Act and the rules and regulations thereunder, will be in conformity with
the reasonable request to the Company by the Initial Purchasers or with
the reasonable request in writing to the Company by the broker-dealers
who certify to the Initial Purchasers and the Company in writing that
they anticipate that they will be Participating Broker-Dealers; and
provided further that, in connection with such application of the Shelf
Registration procedures set forth in Section 3 to an Exchange Offer
Registration, the Company shall be obligated (x) to deal only with a
single representative of the Participating Broker-Dealers, which shall be
Morgan Stanley & Co. Incorporated unless it elects not to act as such
representative, in which case the representative shall be selected by a
majority of the Participating Broker-Dealers, (y) to pay the fees and
expenses of only one counsel representing the Participating
Broker-Dealers, which shall be counsel to the Initial Purchasers (and
additionally including one local counsel) unless such counsel elects not
to so act and (z) to cause to be delivered only one, if any, “cold
comfort” letter with respect to the Prospectus in the form existing on
the Offer Termination Date and with respect to each amendment or
supplement thereof, if any, effected during the period specified in
Section 4(b)(i) above; provided that the provisions of clauses (y) and
(z) of this Section 4(b)(ii) shall apply only if one or more
Participating Broker-Dealers holding at least $10,000,000 in principal
amount of Registrable Securities shall request that the provisions of
this Agreement as they relate to a Shelf Registration also apply to such
Exchange Offer Registration for the disposition of Exchange Notes by
Participating Broker-Dealers.

                      5.   Indemnification and Contribution.

                           (a)   The Company agrees to indemnify and hold harmless each Initial
Purchaser, its respective directors, officers and employees, each Holder and
each Person, if any, who controls any Initial Purchaser or any Holder within
the meaning of the 1933 Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof, to which that
Initial Purchaser, director, officer, employee, Holder or Person controlling
such Initial Purchaser or Holder, may become subject under the 1933 Act or
otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment
thereto) or any Prospectus (or any amendment or supplement thereto), or (ii)
any omission or alleged omission to state in any Registration Statement (or any
amendment thereto)

14

 

or any Prospectus (or any amendment or supplement thereto) any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, and
shall reimburse each Initial Purchaser and each such director, officer,
employee of such Initial Purchaser, each Holder, and each Person who controls
any such Initial Purchaser or Holder, promptly upon demand for any legal and
other expenses reasonably incurred by such Initial Purchaser, director,
officer, employee of that Initial Purchaser, Holder, and each such Person
controlling such Initial Purchaser or Holder, in connection with investigating
or defending or preparing to defend against any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage or liability or action arises out of, or is based upon, any
untrue statement or alleged untrue statement or omission or alleged omission
made in any Registration Statement (or any amendment thereto) or any Prospectus
(or any amendment or supplement thereto), in reliance upon and in conformity
with written information furnished to the Company by or on behalf of such
Person specifically for inclusion therein; provided further, that with respect
to any such untrue statement in or omission from a preliminary prospectus, the
indemnity agreement contained in this Section 5(a) shall not inure to the
benefit of any such Person to the extent that any such loss, liability, claim,
damage or action of or with respect to such Person results from the fact that
both (A) to the extent required by applicable law, a copy of the Prospectus (or
the Prospectus as amended or supplemented) was not sent or given to such Person
at or prior to the written confirmation of the sale of such Registrable
Securities to such Person and (B) the untrue statement in or omission from such
preliminary prospectus was corrected in the Prospectus (or the Prospectus as
amended or supplemented, as the case may be) (unless, in either case, such
failure to deliver such Prospectus (or the Prospectus as amended or
supplemented, as the case may be) was a result of the failure of the Company to
so provide such Prospectus (or the Prospectus as amended or supplemented, as
the case may be)). The foregoing indemnity agreement is in addition to any
liability which the Company may otherwise have to any Initial Purchaser,
director, officer, employee, Holder or any Person controlling any Initial
Purchaser or Holder.

          (b)   Each Initial Purchaser and each Holder, severally and not jointly,
shall indemnify and hold harmless the Company, its officers and employees, each
of its directors and each Person, if any, who controls the Company within the
meaning of the 1933 Act from and against any loss, claim, damage or liability,
joint or several, or any action in respect thereof, to which the Company or any
such director, officer, employee or any Person who controls the Company may
become subject, under the 1933 Act or otherwise, insofar as such loss, claim,
damage, liability or action arises out of or is based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto) or (ii) the omission or alleged omission to
state in any Registration Statement (or any amendment thereto) or any
Prospectus (or any amendment or supplement thereto) any material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, but in each case
only to the extent that the untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company by or on behalf of that Initial

15

 

Purchaser or that Holder specifically for inclusion therein, and shall
reimburse the Company and any such director, officer, employee or any Person
who controls the Company promptly upon demand for any legal or other expenses
reasonably incurred by the Company or any such director, officer, employee or
any Person who controls the Company in connection with investigating or
defending or preparing to defend against any such loss, claim, damage,
liability or action as such expenses are incurred. The foregoing indemnity
agreement is in addition to any liability which any Initial Purchaser or any
Holder may otherwise have to the Company or any such director, officer,
employee or any Person who controls the Company.

          (c)   Promptly after receipt by an indemnified person (the “Indemnified
Person”) under this Section 5 of notice of any claim or the commencement of any
action, the Indemnified Person shall, if a claim in respect thereof is to be
made against the indemnifying person (the “Indemnifying Person”) under this
Section 5, notify the Indemnifying Person in writing of the claim or the
commencement of that action; provided, however, that the failure to notify the
Indemnifying Person shall not relieve it from any liability which it may have
under this Section 5 except to the extent it has been materially prejudiced by
such failure and, provided further, that the failure to notify the Indemnifying
Person shall not relieve it from any liability which it may have to an
Indemnified Person other than under this Section 5. If any such claim or
action shall be brought against an Indemnified Person, and it shall notify the
Indemnifying Person thereof, the Indemnifying Person shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified Indemnifying Person, to assume the defense thereof with
counsel reasonably satisfactory to the Indemnified Person; provided, however,
if any such action includes both the Indemnified Person and the Indemnifying
Person, and the Indemnified Person shall have reasonably concluded that a
conflict may arise between the positions of the Indemnifying Person and the
Indemnified Person in conducting the defense of any such action or that there
may be legal defenses available to it and/or other Indemnified Persons which
are different from or additional to those available to the Indemnifying Person,
the Indemnified Person or Persons shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such Indemnified Person or Persons. Upon
receipt of notice from the Indemnifying Person to such Indemnified Person of
such Indemnifying Person’s election to assume the defense of such action and
approval by the Indemnified Person of counsel, the Indemnifying Person will not
be liable to such Indemnified Person under this Section 5 for any legal or
other expenses subsequently incurred by such Indemnified Person in connection
with the defense thereof unless (i) the Indemnified Person shall have employed
separate counsel in accordance with the proviso to the next preceding sentence
or (ii) the Indemnifying Person shall not have employed counsel reasonably
satisfactory to the Indemnified Person to represent the Indemnified Person
within a reasonable time after notice of commencement of the action, in each of
which cases the fees and expenses of counsel shall be at the expense of the
Indemnifying Person. In no event shall the Indemnifying Person be liable for
the fees and expenses of more than one counsel (together with appropriate local
counsel) for all Indemnified Persons in connection with any one action or
series of separate but similar or related actions arising out of the same
general allegations or circumstances. No Indemnifying Person shall (i) without
the prior written consent of the Indemnified Persons (which consent shall not
be unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect

16

 

to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification or contribution may be sought hereunder (whether or
not the Indemnified Persons are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an unconditional
release of each Indemnified Person from all liability arising out of such
claim, action, suit or proceeding, or (ii) be liable for any settlement of any
such action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with the consent of the Indemnifying
Person, the Indemnifying Person agrees to indemnify and hold harmless any
Indemnified Person from and against any loss or liability by reason of such
settlement or judgment.

          (d)   If the indemnification provided for in this Section 5 shall be for any
reason unavailable to or insufficient to hold harmless an Indemnified Person
under Section 5(a) or 5(b) in respect of any loss, claim, damage or liability,
or any action in respect thereof, referred to therein, then each Indemnifying
Person shall, in lieu of indemnifying such Indemnified Person, contribute to
the amount paid or payable by such Indemnified Person as a result of such loss,
claim, damage or liability, or any action in respect thereof, in such
proportion as is appropriate to reflect the relative fault of the Company on
the one hand and the Initial Purchasers or Holders on the other hand with
respect to the statements or omissions which resulted in such loss, claim,
damage or liability, or action in respect thereof, as well as any other
relevant equitable considerations. The relative fault shall be determined by
reference to whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company or the Initial Purchasers or the Holders
the intent of the parties and their knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company, the
Initial Purchasers and each Holder agree that it would not be just and
equitable if contributions pursuant to this Section were to be determined by
pro rata allocation (even if the Initial Purchasers and the Holders were
treated as one entity for such purpose) or by any other method of allocation
which does not take into account the equitable considerations referred to
herein. The amount paid or payable by an Indemnified Person as a result of the
loss, claim, damage or liability, or action in respect thereof, referred to
above in this Section shall be deemed to include, for the purposes of this
Section 5(d), any legal or other expenses incurred by such Indemnified Person
in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 5(d), no Initial Purchaser or
Holder shall be required to contribute any amount in excess of the amount by
which the total price at which Registrable Securities were sold by such Initial
Purchaser or Holder exceeds the amount of any damages that such Initial
Purchaser or Holder has otherwise paid or become liable to pay by reason of any
untrue or alleged untrue statement or omission or alleged omission. No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. The Initial Purchasers’ and
Holders’ obligations to contribute as provided in this Section 5(d) are several
in proportion to the aggregate principal amount of Registrable Securities sold
by them pursuant to such Registration Statement. The remedies provided for in
this Section 5 are not exclusive and shall not limit any rights or remedies
which may otherwise be available to any indemnified party at law or in equity.

17

 

          (e)   Any losses, claims, damages or liabilities for which an Indemnified
Person is entitled to indemnification or contribution under this Section shall
be paid by the Indemnifying Person to the Indemnified Person as such losses,
claims, damages or liabilities are incurred reasonably promptly after receipt
by the Indemnifying Person of a request therefor by the Indemnified Person.
The indemnity and contribution agreements contained in this Section shall
remain operative and in full force and effect, regardless of (i) any
investigation made by or on behalf of any Initial Purchaser, any Holder or any
Person controlling any Initial Purchaser or any Holder, the Company’s directors
or officers or any Person controlling the Company, (ii) acceptance of any
Exchange Notes, (iii) any termination of this Agreement and (iv) any sale of
Registrable Securities pursuant to a Shelf Registration Statement.

     6.   Miscellaneous.

          (a)   No Inconsistent Agreements. The Company has not entered into, and on
or after the date of this Agreement will not enter into, any agreement which is
inconsistent with the rights granted to the Holders of Registrable Securities
in this Agreement or otherwise conflicts with the provisions hereof. The
rights granted to the Holders hereunder do not in any way conflict with and are
not inconsistent with the rights granted to the holders of the Company’s other
issued and outstanding securities under any such agreements.

          (b)   Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
consent; provided, however, that no amendment, modification, supplement, waiver
or consent to any departure from the provisions of Section 2(e) or 5 hereof
shall be effective as against any Holder of Registrable Securities unless
consented to in writing by such Holder.

          (c)   Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, facsimile, or any courier guaranteeing overnight delivery (i)
if to a Holder, at the most current address given by such Holder to the Company
by means of a notice given in accordance with the provisions of this Section,
which address initially is, with respect to the Initial Purchasers, the address
set forth in the Purchase Agreement; and (ii) if to the Company, initially at
the Company’s address set forth in the Purchase Agreement and thereafter at
such other address, notice of which is given in accordance with the provisions
of this Section.

     All such notices and communications shall be deemed to have been duly
given at the time delivered, if personally delivered; five business days after
being deposited in the mail, postage pre-paid, if mailed; when receipt is
acknowledged, if faxed; and on the next business day if timely delivered to an
air courier guaranteeing overnight delivery.

18

 

     Copies of all such notices, demands, or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.

          (d)   Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment or assumption, subsequent Holders; provided that nothing herein
shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement and
the Indenture. The Initial Purchasers shall have no liability or obligation to
the Company, and the Company shall have no liability or obligation to the
Initial Purchasers, with respect to any failure by a Holder (other than the
Initial Purchasers) to comply with, or any breach by any Holder (other than the
Initial Purchasers) of, the obligations of such Holder (other than the Initial
Purchasers) under this Agreement.

          (e)   Third Party Beneficiary. Each Holder shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and subject to the terms
hereof shall have the right to enforce such agreements directly to the extent
it deems such enforcement necessary or advisable to protect its rights or the
rights of Holders hereunder.

          (f)   Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          (g)   Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

          (h)   Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

          (i)   Severability. In the event that one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

          (j)   No Piggyback on Registrations. Neither the Company, its affiliates
nor any of their security holders (other than the Holders of Notes in such
capacity) shall have the right to include any securities of the Company or its
affiliates (other than Registrable Securities) in any Shelf Registration or
Exchange Offer Registration, without the consent of the Holders participating
in such.

          (k)   Consent to Jurisdiction. Each party irrevocably agrees that any legal
suit, action or proceeding arising out of or based upon this Agreement or the
transactions contemplated

19

 

hereby (“Related Proceedings”) may be instituted in the federal courts of
the United States of America located in the City of New York or the courts of
the State of New York in each case located in the Borough of Manhattan in the
City of New York (collectively, the “Specified Courts”), and irrevocably
submits to the exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a “Related
Judgment”), as to which such jurisdiction is non-exclusive) of such courts in
any such suit, action or proceeding. The parties further agree that service of
any process, summons, notice or document by mail to such party’s address set
forth above shall be effective service of process for any lawsuit, action or
other proceeding brought in any such court. The parties hereby irrevocably and
unconditionally waive any objection to the laying of venue of any lawsuit,
action or other proceeding in the Specified Courts, and hereby further
irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such lawsuit, action or other proceeding brought in any
such court has been brought in an inconvenient forum. Each party not located
in the New York City hereby irrevocably appoints CT Corporation System, which
currently maintains a New York City office at 111 Eighth Avenue, New York, New
York 10011, United States of America, as its agent to receive service of
process or other legal summons for purposes of any such action or proceeding
that may be instituted in any state or federal court in the City and State of
New York.

          (l)   Waiver of Immunity. With respect to any Related Proceeding, each
party irrevocably waives, to the fullest extent permitted by applicable law,
all immunity (whether on the basis of sovereignty or otherwise) from
jurisdiction, service of process, attachment (both before and after judgment)
and execution to which it might otherwise be entitled in the Specified Courts,
and with respect to any Related Judgment, each party waives any such immunity
in the Specified Courts or any other court of competent jurisdiction, and will
not raise or claim or cause to be pleaded any such immunity at or in respect of
any such Related Proceeding or Related Judgment, including, without limitation,
any immunity pursuant to the United States Foreign Sovereign Immunities Act of
1976, as amended.

20

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

	 	INTELSAT, LTD.

	 	By:  /s/ Conny Kullman                        
      
Name: Conny Kullman
      Title:
Chief Executive Officer

MORGAN STANLEY & CO. INCORPORATED

By: /s/ James C. Murray                        
      
Name: James C. Murray
      Title:
Vice President

CITIGROUP GLOBAL MARKETS INC.

By: /s/ Niraj J. Shah                               
      
Name: Niraj J. Shah
       Title:
Vice President

BNP PARIBAS SECURITIES CORP.

By: /s/ Douglas G. Cook                        
      Name:
Douglas G. Cook
      Title:
Managing Director

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