Document:

exv4w9

Exhibit
4.9

JPMorgan Chase Bank, National Association

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

September 15, 2010

	 	 	 

	To:

	 	Tower Group, Inc.
	 

	 	120 Broadway, 31st Floor
	 

	 	New York, NY 10271
	 

	 	Attention: Treasurer
	 

	 	Telephone No.: (212) 655-2000
	 

	 	Facsimile No.: (212) 655-2199
	 
	Re:

	 	Additional Warrants

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the Warrants issued by Tower Group, Inc. (“Company”) to JPMorgan Chase Bank, National
Association, London Branch (“Dealer”) as of the Trade Date specified below (the “Transaction”).
This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement
specified below. This Confirmation shall replace any previous agreements and serve as the final
documentation for the Transaction.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
"Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation shall govern. The Transaction shall be
deemed to be a Share Option Transaction within the meaning set forth in the Equity Definitions.

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

1. This Confirmation evidences a complete and binding agreement between Dealer and Company as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such form (but
without any Schedule except for the election of the laws of the State of New York as the governing
law (without reference to choice of law doctrine)) on the Trade Date. In the event of any
inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby
agree that no Transaction other than the Transaction to which this Confirmation relates shall be
governed by the Agreement.

2. The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction
for purposes of the Equity Definitions. The terms of the particular Transaction to which this
Confirmation relates are as follows:

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

 

	 	 	 

	General Terms.
	 	 
	 
	 	 
	Trade Date:

	 	September 15, 2010
	 
	 	 
	Effective Date:

	 	The third Exchange Business Day immediately
prior to the Premium Payment Date
	 
	 	 
	Warrants:

	 	Equity call warrants, each giving the holder
the right to purchase a number of Shares equal
to the Warrant Entitlement at a price per Share
equal to the Strike Price, subject to the terms
set forth under the caption “Settlement Terms”
below. For the purposes of the Equity
Definitions, each reference to a Warrant herein
shall be deemed to be a reference to a Call
Option.
	 
	 	 
	Warrant Style:

	 	European
	 
	 	 
	Seller:

	 	Company
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

	 	The common stock of Company, par value USD 0.01
per share (Exchange symbol “TWGP”)
	 
	 	 
	Number of Warrants:

	 	272,836. For the avoidance of doubt, the
Number of Warrants shall be reduced by any
Warrants exercised or deemed exercised
hereunder. In no event will the Number of
Warrants be less than zero.
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	Strike Price:

	 	USD 33.4180
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the
Agreement, this Confirmation or the Equity
Definitions (but without limiting Dealer’s
right to adjust any variable relevant to the
exercise, settlement, payment or other terms of
the Transaction, other than the Strike Price),
in no event shall the Strike Price be subject
to adjustment to the extent that, after giving
effect to such adjustment, the Strike Price
would be less than USD 24.81, except for any
adjustment pursuant to the terms of this
Confirmation and the Equity Definitions in
connection with stock splits or similar changes
to Company’s capitalization.
	 
	 	 
	Premium:

	 	USD 190,000.00
	 
	 	 
	Premium Payment Date:

	 	September 20, 2010
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Procedures for Exercise.
	 	 
	 
	 	 
	Expiration Time:

	 	The Valuation Time

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	Expiration Dates:

	 	Each Scheduled Trading Day during the period
from, and including, the First Expiration Date
to, but excluding, the 120th
Scheduled Trading Day following the First
Expiration Date shall be an “Expiration Date”
for a number of Warrants equal to the Daily
Number of Warrants on such date; provided that,
notwithstanding anything to the contrary in the
Equity Definitions, if any such date is a
Disrupted Day, the Calculation Agent shall make
adjustments, if applicable, to the Daily Number
of Warrants or shall reduce such Daily Number
of Warrants to zero for which such day shall be
an Expiration Date and shall designate a
Scheduled Trading Day or a number of Scheduled
Trading Days as the Expiration Date(s) for the
remaining Daily Number of Warrants or a portion
thereof for the originally scheduled Expiration
Date; and provided further that if such
Expiration Date has not occurred pursuant to
this clause as of the eighth Scheduled Trading
Day following the last scheduled Expiration
Date under the Transaction, the Calculation
Agent shall have the right to declare such
Scheduled Trading Day to be the final
Expiration Date and the Calculation Agent shall
determine its good faith estimate of the fair
market value for the Shares as of the Valuation
Time on that eighth Scheduled Trading Day or on
any subsequent Scheduled Trading Day, as the
Calculation Agent shall determine using
commercially reasonable means.
	 
	 	 
	First Expiration Date:

	 	December 14, 2014 (or if such day is not a
Scheduled Trading Day, the next following
Scheduled Trading Day), subject to Market
Disruption Event below.
	 
	 	 
	Daily Number of Warrants:

	 	For any Expiration Date, the Number of Warrants
that have not expired or been exercised as of
such day, divided by the remaining number of
Expiration Dates (including such day), rounded
down to the nearest whole number, subject to
adjustment pursuant to the provisos to
“Expiration Dates”.
	 
	 	 
	Automatic Exercise:

	 	Applicable; and means that for each Expiration
Date, a number of Warrants equal to the Daily
Number of Warrants (as adjusted pursuant to the
terms hereof) for such Expiration Date will be
deemed to be automatically exercised. For the
avoidance of doubt, Warrants are not
exercisable, and shall not be exercised or
deemed exercised, other than in accordance with
the preceding sentence.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a)(ii) of the Equity Definitions is
hereby amended by replacing clause (ii) in its
entirety with “(ii) an Exchange Disruption, or”
and inserting immediately following clause
(iii) the phrase “; in each case that the
Calculation Agent determines is material.”

3

 

	 	 	 

	Valuation Terms.
	 	 
	 
	Valuation Time:

	 	Scheduled Closing Time; provided that if the
principal trading session is extended, the
Calculation Agent shall determine the Valuation
Time in its reasonable discretion.
	 
	 	 
	Valuation Date:

	 	Each Exercise Date.
	 
	 	 
	Settlement Terms.
	 	 
	 
	 	 
	Settlement Method:

	 	Net Share Settlement.
	 
	 	 
	Net Share Settlement:

	 	On the relevant Settlement Date, Company shall
deliver to Dealer a number of Shares equal to
the Share Delivery Quantity for such Settlement
Date to the account specified hereto free of
payment through the Clearance System.
	 
	 	 
	Share Delivery Quantity:

	 	For any Settlement Date, a number of Shares, as
calculated by the Calculation Agent, equal to
the Net Share Settlement Amount for such
Settlement Date divided by the Settlement Price
on the Valuation Date in respect of such
Settlement Date, rounded down to the nearest
whole number plus any Fractional Share Amount.
	 
	 	 
	Net Share Settlement Amount:

	 	For any Settlement Date, an amount equal to the
product of (i) the Number of Warrants exercised
or deemed exercised on the relevant Exercise
Date, (ii) the Strike Price Differential in
respect of the relevant Valuation Date and
(iii) the Warrant Entitlement.
	 
	 	 
	Settlement Price:

	 	For any Valuation Date, the per Share
volume-weighted average price as displayed
under the heading “Bloomberg VWAP” on Bloomberg
page TWGP.UQ <equity> AQR (or any
successor thereto) in respect of the period
from the scheduled opening time of the Exchange
to the Scheduled Closing Time on such Valuation
Date (or if such volume-weighted average price
is unavailable, the market value of one Share
on such Valuation Date, as determined by the
Calculation Agent). Notwithstanding the
foregoing, if (i) any Expiration Date is a
Disrupted Day and (ii) the Calculation Agent
determines that such Expiration Date shall be
an Expiration Date for fewer than the Daily
Number of Warrants, as described above, then
the Settlement Price for the relevant Valuation
Date shall be the volume-weighted average price
per Share on such Valuation Date on the
Exchange, as determined by the Calculation
Agent based on such sources as it deems
appropriate using a volume-weighted
methodology, for the portion of such Valuation
Date for which the Calculation Agent determines
there is no Market Disruption Event.
	 
	 	 
	Settlement Dates:

	 	As determined pursuant to Section 9.4 of the
Equity Definitions, subject to Section 9(k)(i)
hereof.
	 
	 	 
	Other Applicable Provisions:

	 	The provisions of Sections 9.1(c), 9.8, 9.9,
9.11, 9.12 and 10.5 of the Equity Definitions
will be applicable, except that all references
in such provisions to “Physically-

4

 

	 	 	 

	 

	 	settled” shall be read as references to “Net Share
Settled.” “Net Share Settled” in relation to
any Warrant means that Net Share Settlement is
applicable to that Warrant.
	 
	 	 
	Representation and Agreement:

	 	Notwithstanding Section 9.11 of the Equity
Definitions, the parties acknowledge that any
Shares delivered to Dealer may be, upon
delivery, subject to restrictions and
limitations arising from Company’s status as
issuer of the Shares under applicable
securities laws.
	 
	 	 
	3. Additional Terms applicable to the Transaction.
	 
	 	 
	Adjustments applicable to the Transaction:

	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment. For the
avoidance of doubt, in making any adjustments
under the Equity Definitions, the Calculation
Agent may make adjustments, if any, to any one
or more of the Strike Price, the Number of
Warrants, the Daily Number of Warrants and the
Warrant Entitlement. Notwithstanding the
foregoing, any cash dividends or distributions
on the Shares, whether or not extraordinary,
shall be governed by Section 9(f) of this
Confirmation in lieu of Article 10 or Section
11.2(c) of the Equity Definitions.
	 
	 	 
	Extraordinary Events applicable to the
Transaction:

	 
	 	 
	New Shares:

	 	Section 12.1(i) of the Equity Definitions is
hereby amended (a) by deleting the text in
clause (i) thereof in its entirety (including
the word “and” following clause (i)) and
replacing it with the phrase “publicly quoted,
traded or listed (or whose related depositary
receipts are publicly quoted, traded or listed)
on any of the New York Stock Exchange, The
NASDAQ Global Select Market or The NASDAQ
Global Market (or their respective successors)”
and (b) by inserting immediately prior to the
period the phrase “and (iii) of an entity or
person organized under the laws of the United
States, any State thereof or the District of
Columbia that also becomes Company under the
Transaction following such Merger Event or
Tender Offer”.
	 
	 	 
	Consequence of Merger Events:
	 	 
	 
	 	 
	Merger Event:

	 	Applicable; provided that if an event occurs
that constitutes both a Merger Event under
Section 12.1(b) of the Equity Definitions and
an Additional Termination Event under Section
9(h)(ii)(B) of this Confirmation, then (i) if
such event does not result in Cancellation and
Payment under Section 12.2 of the Equity
Definitions, Dealer may elect, in its
commercially reasonable judgment, whether the
provisions of Section 12.1(b) of the Equity
Definitions or Section 9(h)(ii)(B) will apply,
and (ii) otherwise, the provisions of Section
9(h)(ii)(B) will apply.

5

 

	 	 	 

	Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Cancellation and Payment (Calculation Agent
Determination)
	 
	 	 
	Share-for-Combined:

	 	Cancellation and Payment (Calculation Agent
Determination); provided that Dealer may elect,
in its commercially reasonable judgment,
Component Adjustment (Calculation Agent
Determination).
	 
	 	 
	Consequence of Tender Offers:
	 	 
	 
	 	 
	Tender Offer:

	 	Applicable; provided that if an event occurs
that constitutes both a Tender Offer under
Section 12.1(d) of the Equity Definitions and
Additional Termination Event under Section
9(h)(ii)(A) of this Confirmation, then (i) if
such event does not result in Cancellation and
Payment under Section 12.3 of the Equity
Definitions, Dealer may elect, in its
commercially reasonable judgment, whether the
provisions of Section 12.3 of the Equity
Definitions or Section 9(h)(ii)(A) will apply,
and (ii) otherwise, the provisions of Section
9(h)(ii)(A) will apply.
	 
	 	 
	Share-for-Share:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Nationalization, Insolvency or Delisting:

	 	Cancellation and Payment (Calculation Agent
Determination); provided that, in addition to
the provisions of Section 12.6(a)(iii) of the
Equity Definitions, it will also constitute a
Delisting if the Exchange is located in the
United States and the Shares are not
immediately re-listed, re-traded or re-quoted
on any of the New York Stock Exchange, The
NASDAQ Global Select Market or The NASDAQ
Global Market (or their respective successors);
if the Shares are immediately re-listed,
re-traded or re-quoted on any of the New York
Stock Exchange, The NASDAQ Global Select Market
or The NASDAQ Global Market (or their
respective successors), such exchange or
quotation system shall thereafter be deemed to
be the Exchange.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that Section
12.9(a)(ii)(X) of the Equity Definitions is
hereby amended by replacing the word “Shares”
with the phrase “Hedge Positions.”
	 
	 	 
	Failure to Deliver:

	 	Not Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable; provided that:

6

 

	 	 	 	 	 

	 

	 	(i)
	 	Section 12.9(a)(v) of the Equity Definitions is
hereby amended by inserting the following two
phrases at the end of such Section:
	 
	 	 	 	 
	 

	 	 	 	“For the avoidance of doubt, the term “equity
price risk” shall be deemed to include, but
shall not be limited to, stock price and
volatility risk. And, for the further avoidance
of doubt, any such transactions or assets
referred to in phrases (A) or (B) above must be
available on commercially reasonable pricing
terms.”; and
	 
	 	 	 	 
	 

	 	(ii)
	 	Section 12.9(b)(iii) of the Equity Definitions
is hereby amended by inserting in the third
line thereof, after the words “to terminate
the Transaction”, the words “or a portion of
the Transaction affected by such Hedging
Disruption”.
	 
	 	 	 	 
	Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 	 	 
	Loss of Stock Borrow:

	 	Applicable
	 
	 	 	 	 
	Maximum Stock Loan Rate:

	 	200 basis points
	 
	 	 	 	 
	Increased Cost of Stock Borrow:

	 	Applicable
	 
	 	 	 	 
	Initial Stock Loan Rate:

	 	25 basis points
	 
	 	 	 	 
	Hedging Party:

	 	For all applicable Additional Disruption
Events, Dealer.
	 
	 	 	 	 
	Determining Party:

	 	For all applicable Extraordinary Events, Dealer.
	 
	 	 	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 	 	 
	Agreements and Acknowledgments
	 	 	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	4.   Calculation Agent. 	 	Dealer

	5.	 	Account Details.

	 	(a)	 	Account for payments to Company:
	 
	 	 	 	Bank: State Street Trust Bank

ABA#: 011000028

Acct No.: 00153577

Beneficiary: Tower Group Inc./4RAX

Ref: Tower Group Inc./4RAX
	 
	 	 	 	Account for delivery of Shares from Company:
	 
	 	 	 	To be provided by Company.

7

 

	 
	 	(b)	 	Account for payments to Dealer:

	 	 	 	Bank: JPMorgan Chase Bank, N.A.

ABA#: 021000021

Acct No.: 099997979

Beneficiary: JPMorgan Chase Bank, N.A. New York

Ref: Derivatives
	 
	 	 	 	Account for delivery of Shares to Dealer:
	 
	 	 	 	DTC 0060

	6.	 	Offices.

	 	(a)	 	The Office of Company for the Transaction is: Inapplicable, Company is not a
Multibranch Party.
	 
	 	(b)	 	The Office of Dealer for the Transaction is: London
	 
	 	 	 	JPMorgan Chase Bank, National Association

London Branch

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

	7.	 	Notices.

	 	(a)	 	Address for notices or communications to Company:
	 
	 	 	 	Tower Group, Inc.

120 Broadway, 31st Floor

New York, NY 10271

Attention: Treasurer

Telephone No.: (212) 655-2000

Facsimile No.: (212) 655-2199
	 
	 	(b)	 	Address for notices or communications to Dealer:
	 
	 	 	 	JPMorgan Chase Bank, National Association

4 New York Plaza, Floor 18

New York, NY 10004-2413

Attention: Mariusz Kwasnik

Title: Operations Analyst, EDG Corporate Marketing

Telephone No: (212) 623-7223

Facsimile No: (212) 623-7719

	8.	 	Representations and Warranties of Company.
	 
	 	 	Each of the representations and warranties of Company set forth in Section 3 of the Purchase
Agreement (the “Purchase Agreement”), dated as of September 14, 2010, between Company and
J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as
representatives of the Initial Purchasers party thereto (the “Initial Purchasers”), are true
and correct and are hereby deemed to be repeated to Dealer as if set forth herein. Company
hereby further represents and warrants to Dealer on the

8

 

	 	 	date hereof, on and as of the
Premium Payment Date and, in the case of the representations in Section 8(f), at all times
until termination of the Transaction, that:

	 	(a)	 	Company is duly organized and validly existing and in good standing under the
laws of its jurisdiction of incorporation.
	 
	 	(b)	 	Company has the corporate power and authority to execute and deliver this
Confirmation and to perform its obligations hereunder; and all action required to be
taken for the due and proper authorization, execution and delivery by it of this
Confirmation and the consummation by it of the transactions contemplated hereby has
been duly and validly taken.
	 
	 	(c)	 	This Confirmation has been duly authorized by Company and, when duly executed
and delivered in accordance with its terms by each of the parties hereto, will
constitute a valid and legally binding agreement of Company enforceable against Company
in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors’ rights generally or by
equitable principles relating to enforceability.
	 
	 	(d)	 	The execution, delivery and performance by Company of this Confirmation and the
consummation of the transactions contemplated hereby will not (i) conflict with or
result in a breach or violation of any
of the terms or provisions of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of Company or any of its subsidiaries pursuant to, any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which Company or
any of its subsidiaries is a party or by which Company or any of its subsidiaries is
bound or to which any of the property or assets of Company or any of its
subsidiaries is subject, (ii) result in any violation of the provisions of the
charter or by-laws or similar organizational documents of Company or any of its
subsidiaries or (iii) result in the violation of any law or statute or any judgment,
order, rule or regulation of any court or arbitrator or governmental or regulatory
authority applicable to Company or any of its subsidiaries; except, in the case of
clauses (i) and (iii) above, for any such conflict, breach, default or violation
that would not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the business, properties, management, financial position,
stockholders’ equity, results of operations or prospects of Company and its
subsidiaries taken as a whole or on the performance by Company of its obligations
under this Confirmation (“Material Adverse Effect”); provided that, in the case of
clause (i) above, such representation and warranty is based on the assumption that
any cash payment made by Company upon any termination, cancellation or early unwind
of the Transaction shall, at the time such cash payment is made, be made in
compliance with the terms and conditions of the Credit Agreement, dated as of May
14, 2010, among Company, each lender from time to time party thereto and Bank of
America, N.A., as Administrative Agent, Fronting Bank and L/C Administrator, as
amended by the First Amendment to Credit Agreement, dated as of September 10, 2010,
among Company, each lender from time to time party thereto and Bank of America,
N.A., as Administrative Agent, Fronting Bank and L/C Administrator.
	 
	 	(e)	 	No consent, approval, authorization, order, registration or qualification of or
with any court or arbitrator or governmental or regulatory authority is required for
the execution, delivery and performance by Company of this Confirmation and the
consummation of the transactions contemplated hereby, except for (i) such consents,
approvals, authorizations, orders and registrations or qualifications as may be
required under applicable state securities laws, (ii) as may be required and have been
or will be obtained under the rules of The NASDAQ Stock Market in connection with the
issuance of the Warrant Shares (as defined below) by Company or (iii) where the failure
to obtain or make any such consents, approvals, authorizations, orders and
registrations or qualifications would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; provided that such failure to obtain or
make any such consents, approvals, authorizations, orders and registrations or
qualifications does not prevent Company from performing its obligations under this
Confirmation.

9

 

	 	(f)	 	A number of Shares equal to the Maximum Number of Shares (as defined below)
(the “Warrant Shares”) have been reserved for issuance by all required corporate action
of Company. The Warrant Shares reserved for issuance upon exercise of the Warrants
have been duly authorized and reserved and, when issued upon exercise of the Warrants
in accordance with the terms of the Warrants, will be validly issued, fully paid and
non-assessable, and the issuance of the Warrant Shares will not be subject to any
preemptive or similar rights.
	 
	 	(g)	 	Company is not and, after giving effect to the transactions contemplated
hereby, will not be required to register as an “investment company” or an entity
“controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Securities and Exchange
Commission thereunder.
	 
	 	(h)	 	Company is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended, other than a person that is
an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange
Act).
	 
	 	(i)	 	Company and each of its affiliates is not, on the date hereof, in possession of
any material non-public information with respect to Company or the Shares.

	9.	 	Other Provisions.

	 	(a)	 	Opinions. Company shall deliver to Dealer an opinion of counsel, dated
as of the Trade Date, with respect to the matters set forth in Sections 8(a) through
(f) of this Confirmation. Delivery of such opinion to Dealer shall be a condition
precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to each
obligation of Dealer under Section 2(a)(i) of the Agreement.
	 
	 	(b)	 	Repurchase Notices. Company shall, on any day on which Company effects
any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a
“Repurchase Notice”) on such day if following such repurchase, the number of
outstanding Shares on such day, subject to any adjustments provided herein, is (i) less
than 40.1 million (in the case of the first such notice) or (ii) thereafter more than
2.7 million less than the number of Shares included in the immediately preceding
Repurchase Notice. Company agrees to indemnify and hold harmless Dealer and its
affiliates and their respective officers, directors, employees, affiliates, advisors,
agents and controlling persons (each, an “Indemnified Person”) from and against any and
all losses (including losses relating to Dealer’s hedging activities as a consequence
of becoming, or of the risk of becoming, a Section 16 “insider”, including without
limitation, any forbearance from hedging activities or cessation of hedging activities
and any losses in connection therewith with respect to the Transaction), claims,
damages, judgments, liabilities and expenses (including reasonable attorney’s fees),
joint or several, which an Indemnified Person actually may become subject to, as a
result of Company’s failure to provide Dealer with a Repurchase Notice on the day and
in the manner specified in this paragraph, and to reimburse, within 30 days, upon
written request, each of such Indemnified Persons for any reasonable legal or other
expenses incurred in connection with investigating, preparing for, providing testimony
or other evidence in connection with or defending any of the foregoing. If any suit,
action, proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against the Indemnified Person, such Indemnified
Person shall promptly notify Company in writing, and Company, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified
Person to represent the Indemnified Person and any others Company may designate in such
proceeding and shall pay the reasonable out-of-pocket fees and expenses of such counsel
related to such proceeding. Company shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, Company agrees to indemnify any
Indemnified Person from and against any loss or liability by reason of such settlement
or judgment. Company shall not, without the prior written consent of the Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is a party and indemnity has

10

 

	 	 	 	been sought hereunder by such
Indemnified Person, unless such settlement includes an unconditional release of such
Indemnified Person from all liability on claims that are the subject matter of such
proceeding on terms reasonably satisfactory to such Indemnified Person. If the
indemnification provided for in this paragraph is unavailable to an Indemnified Person
or insufficient in respect of any losses, claims, damages or liabilities referred to
therein, then Company under such paragraph, in lieu of indemnifying such Indemnified
Person thereunder, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities. The remedies
provided for in this paragraph are not exclusive and shall not limit any rights or
remedies which may otherwise be available to any Indemnified Person at law or in
equity. The indemnity and contribution agreements contained in this paragraph shall
remain operative and in full force and effect regardless of the termination of the
Transaction.
	 
	 	(c)	 	Regulation M. Company is not on the Trade Date engaged in a
distribution, as such term is used in Regulation M under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), of any securities of Company, other than a
distribution meeting the requirements of the exception set forth in Rules 101(b)(10)
and 102(b)(7) of Regulation M. Company shall not, until the second Scheduled Trading
Day immediately following the Effective Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Company is not entering into the Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares)
or otherwise in violation of the Exchange Act.
	 
	 	(e)	 	Transfer or Assignment. Company may not transfer any of its rights or
obligations under the Transaction without the prior written consent of Dealer. Dealer
may, without Company’s consent, transfer or assign all or any part of its rights or
obligations under the Transaction at any time to any affiliate of Dealer (A) that has a
rating for its long term, unsecured and unsubordinated indebtedness that is equal to or
better than the best of Dealer’s credit rating and the credit rating of any guarantor
of Dealer’s obligations hereunder, in each case, at the time of the transfer or
assignment, or (B) whose obligations hereunder will be guaranteed, pursuant to the
terms of a customary guarantee in a form used by Dealer generally for similar
transactions, by Dealer or any parent of Dealer that has a credit rating that is equal
to or better than the best of Dealer’s credit rating and the credit rating of any
guarantor of Dealer’s obligations hereunder, in each case, at the time of the transfer
or assignment; provided that any such transfer or assignment shall be subject to the
conditions that (I) following such transfer or assignment, the terms and conditions of
the Agreement as so transferred or assigned (the “Transferred Agreement”) shall be
substantially the same as the terms and conditions of the Agreement immediately prior
to such transfer or assignment, (II) Company will not be required to pay to the
transferee an amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the
Transferred Agreement greater than the amount in respect of which Company would have
been required to pay to Dealer under Section 2(d)(i)(4) in the absence of the transfer,
(III) Company will not receive any payment under the Transferred Agreement from which
an amount is required to be withheld or deducted for or on account of a Tax with
respect to which no additional amount is required to be paid by the transferee under
Section 2(d)(i)(4) of the Transferred Agreement (other than by reason of Section
2(d)(i)(4)(A) or (B) thereof), (IV) neither an Event of Default with respect to which
Dealer is the Defaulting Party nor a Termination Event with respect to which Dealer is
the sole Affected Party has occurred and is continuing at the time of the transfer, and
neither an Event of Default nor a Termination Event shall occur as a result of the
transfer, (V) each of Dealer and the transferee is a dealer in “notional principal
contracts” within the meaning of Section 1.446-3(c)(4)(iii) of the U.S. Treasury
Regulations and in other derivatives, and (VI) Dealer has used its good faith efforts
to provide prior notice to Company of such transfer and the proposed date of such
transfer, and shall provide written notice to Company reasonably promptly following
such transfer. In addition, if at any time (A) the Section 16 Percentage exceeds 7.5%,
(B) the Warrant Equity Percentage exceeds

11

 

	 	 	 	14.5%, or (C) the Share Amount exceeds the
Applicable Share Limit (if any applies) (any such condition described in clauses (A),
(B) or (C), an “Excess Ownership Position”), Dealer may, without Company’s consent,
transfer or assign all or any part of its rights or obligations under the Transaction
to any third party who is a dealer in “notional principal contracts” within the meaning
of Section 1.446-3(c)(4)(iii) of the U.S. Treasury Regulations and in other
derivatives. If at any time an Excess Ownership Positions exists, Dealer may designate
any Exchange Business Day as an Early Termination Date with respect to all or a portion
of the Transaction (the “Terminated Portion”) such that following such termination no
Excess Ownership Position exists; provided that Dealer may only designate an Early
Termination Date pursuant to this Section 9(e) if Dealer has used its good faith
efforts to notify Counterparty of the existence of such Excess Ownership Position, and
Dealer is unable, acting in good faith and after using its commercially reasonable
efforts, to effect a transfer or assignment of Warrants to a third party in accordance
with this Section 9(e) on pricing terms reasonably acceptable to Dealer and within a
time period reasonably acceptable to Dealer such that no Excess Ownership Position
exists. In the event that Dealer so designates an Early Termination Date with respect
to a Terminated Portion, a payment shall be made pursuant to Section 6 of the Agreement
as if (1) an Early Termination Date had been designated in respect of a Transaction
having terms identical to the Transaction and a Number of Warrants equal to the number
of Warrants underlying the Terminated Portion, (2) Company were the sole Affected Party
with respect to such partial termination and (3) the Terminated Portion were the sole
Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j)
shall apply to any amount that is payable by Company to Dealer pursuant to this
sentence as if Company was not the Affected Party). The “Section 16 Percentage” as
of any day is the fraction, expressed as a percentage, (A) the numerator of which is
the number of Shares that Dealer and each person subject to aggregation of Shares
with Dealer under Section 13 or Section 16 of the Exchange Act and rules promulgated
thereunder directly or indirectly beneficially own (as defined under Section 13 or
Section 16 of the Exchange Act and rules promulgated thereunder) and (B) the
denominator of which is the number of Shares outstanding. The “Warrant Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the sum of (1) the product of the Number of Warrants and the
Warrant Entitlement and (2) the aggregate number of Shares underlying any other
warrants purchased by Dealer from Company, and (B) the denominator of which is the
number of Shares outstanding. The “Share Amount” as of any day is the number of
Shares that Dealer and any person whose ownership position would be aggregated with
that of Dealer (Dealer or any such person, a “Dealer Person”) under any insurance or
other law, rule, regulation, regulatory order or organizational documents or
contracts of Company that are, in each case, applicable to ownership of Shares
(“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls,
holds the power to vote or otherwise meets a relevant definition of ownership under
any Applicable Restriction, as determined by Dealer in its reasonable discretion.
The “Applicable Share Limit” means a number of Shares equal to (A) the minimum
number of Shares that could give rise to reporting or registration obligations or
other requirements (including obtaining prior approval from any person or entity) of
a Dealer Person, or could result in an adverse effect on a Dealer Person, under any
Applicable Restriction, as determined by Dealer in its reasonable discretion, minus
(B) 1% of the number of Shares outstanding. Notwithstanding any other provision in
this Confirmation to the contrary requiring or allowing Dealer to purchase, sell,
receive or deliver any Shares or other securities, or make or receive any payment in
cash, to or from Company, Dealer may designate any of its affiliates to purchase,
sell, receive or deliver such Shares or other securities, or make or receive such
payment in cash, and otherwise to perform Dealer’s obligations in respect of the
Transaction and any such designee may assume such obligations. Dealer shall be
discharged of its obligations to Company only to the extent of any such performance.
	 
	 	(f)	 	Dividends. If at any time during the period from and including the
Effective Date, to and including the last Expiration Date, (i) an ex-dividend date for
a cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), and that
dividend differs from the Regular Dividend on a per Share basis or (ii) if no
Ex-Dividend Date for a cash dividend occurs with respect to the Shares in any quarterly
dividend period of Company, then the Calculation Agent will adjust any of the

12

 

	 	 	 	Strike
Price, Number of Warrants and/or Daily Number of Warrants to preserve the fair value of
the Warrants to Dealer after taking into account such dividend or lack thereof.
“Regular Dividend” shall mean for any calendar quarter, USD 0.125 for the first cash
dividend or distribution on the Shares for which the Ex-Dividend Date falls within such
calendar quarter, and zero for any subsequent dividend or distribution on the Shares
for which the Ex-Dividend Date falls within the same calendar quarter.
	 
	 	(g)	 	Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan
Securities LLC, an affiliate of JPMorgan (“JPMS”), has acted solely as agent and not as
principal with respect to the Transaction and (ii) JPMS has no obligation or liability,
by way of guaranty, endorsement or otherwise, in any manner in respect of the
Transaction (including, if applicable, in respect of the settlement thereof). Each
party agrees it will look solely to the other party (or any guarantor in respect
thereof) for performance of such other party’s obligations under the Transaction.
	 
	 	(h)	 	Additional Provisions.

	 	(i)	 	Amendments to the Equity Definitions:

	 	(A)	 	Section 11.2(a) of the Equity Definitions is
hereby amended by deleting the words “a diluting or concentrative” and
replacing them with the words “a material”; and adding the phrase “or
Warrants” at the end of the sentence.
	 
	 	(B)	 	Section 11.2(c) of the Equity Definitions is
hereby amended by (x) replacing the words “a diluting or concentrative”
with “a material”, (y) adding the phrase “or Warrants” after the words
“the relevant Shares” in the same sentence and (z) deleting the phrase
“(provided that no adjustments will be made to account solely for
changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant Shares)” and replacing it with the phrase
“(and, for the avoidance of doubt, adjustments may be made to account
solely for changes in volatility, expected dividends, stock loan rate
or liquidity relative to the relevant Shares).”
	 
	 	(C)	 	Section 11.2(e)(vii) of the Equity Definitions
is hereby amended by deleting the words “a diluting or concentrative”
and replacing them with the words “a material”; and adding the phrase
“or Warrants” at the end of the sentence.
	 
	 	(D)	 	Section 12.6(a)(ii) of the Equity Definitions
is hereby amended by (1) deleting from the fourth line thereof the word
“or” after the word “official” and inserting a comma therefor, and (2)
deleting the semi-colon at the end of subsection (B) thereof and
inserting the following words therefor “or (C) at Dealer’s option, the
occurrence of any of the events specified in Section 5(a)(vii) (1)
through (9) of the ISDA Master Agreement with respect to that Issuer.”
	 
	 	(E)	 	Section 12.9(b)(iv) of the Equity Definitions
is hereby amended by:

	 	(x)	 	deleting (1) subsection (A) in
its entirety, (2) the phrase “or (B)” following subsection (A)
and (3) the phrase “in each case” in subsection (B); and
	 
	 	(y)	 	deleting the phrase “neither the
Non-Hedging Party nor the Lending Party lends Shares in the
amount of the Hedging Shares or” in the penultimate sentence.

13

 

	 	(F)	 	Section 12.9(b)(v) of the Equity Definitions is
hereby amended by:

	 	(x)	 	adding the word “or” immediately
before subsection “(B)” and deleting the comma at the end of
subsection (A); and
	 
	 	(y)	 	(1) deleting subsection (C) in
its entirety, (2) deleting the word “or” immediately preceding
subsection (C) and (3) deleting the penultimate sentence in its
entirety and replacing it with the sentence “The Hedging Party
will determine the Cancellation Amount payable by one party to
the other.”

	 	(ii)	 	Notwithstanding anything to the contrary in this Confirmation,
upon the occurrence of one of the following events, with respect to the
Transaction, (1) Dealer shall have the right to designate such event an
Additional Termination Event and designate an Early Termination Date pursuant
to Section 6(b) of the Agreement, (2) Company shall be deemed the sole Affected
Party with respect to such Additional Termination Event and (3) the
Transaction shall be deemed the sole Affected Transaction:

	 	(A)	 	A “person” or “group” within the meaning of
Section 13(d) of the Exchange Act, other than Company, its subsidiaries
and its and their employee benefit plans, has become the “beneficial
owner,” as defined in Rule 13d-3 under the
Exchange Act, of the common equity of Company representing more than
50% of the voting power of such common equity.
	 
	 	(B)	 	Consummation of (I) any recapitalization,
reclassification or change of the Shares (other than changes resulting
from a subdivision or combination or changes solely in par value) as a
result of which the Shares would be converted into, or exchanged for,
stock, other securities, other property or assets or (II) any share
exchange, consolidation or merger involving Company pursuant to which
the Shares will be converted into cash, securities or other property or
any sale, lease or other transfer in one transaction or a series of
transactions of all or substantially all of the consolidated assets of
Company and its subsidiaries, taken as a whole, to any person other
than one of Company’s subsidiaries; provided, however, that a
transaction where the holders of all classes of Company’s common equity
immediately prior to such transaction that is a share exchange,
consolidation or merger (each such holder, a “Pre-transaction Holder”)
own, directly or indirectly, more than 50% of all classes of common
equity of the continuing or surviving corporation or transferee or the
parent thereof immediately after such event shall not constitute an
Additional Termination Event, so long as the proportion of the
respective ownership of each Pre-transaction Holder does not
substantially change solely pursuant to the terms of such transaction.
Notwithstanding the foregoing, a transaction or transactions described
in this clause (B) shall not constitute an Additional Termination Event
if at least 90% of the consideration received or to be received by
holders of the Shares, excluding cash payments for fractional Shares in
connection with such transaction or transactions consists of shares of
common stock that are listed or quoted on any of The New York Stock
Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market
(or any of their respective successors) or will be so listed or quoted
when issued or exchanged in connection with such transaction or
transactions.
	 
	 	(C)	 	Default by Company or any of its subsidiaries
with respect to any mortgage, agreement or other instrument under which
there may be outstanding, or by which there may be secured or
evidenced, any indebtedness for money borrowed in excess of $20 million
in the aggregate of Company and/or of any such subsidiary, whether such
indebtedness now exists or shall hereafter be created (I) resulting in
such indebtedness becoming or being declared due and payable

14

 

	 	 	 	(unless
such declaration has been rescinded) or (II) constituting a failure to
pay the principal of or interest on any such indebtedness when due and
payable at its stated maturity, upon required repurchase, upon
declaration of acceleration or otherwise.
	 
	 	(D)	 	A final judgment for the payment of $20 million
or more (excluding any amounts covered by insurance) rendered against
Company or any of its “significant subsidiaries” (as defined in Article
1, Rule 1-02 of Regulation S-X), which judgment is not discharged or
stayed within 60 days after (I) the date on which the right to appeal
thereof has expired if no such appeal has commenced, or (II) the date
on which all rights to appeal have been extinguished.
	 
	 	(E)	 	Dealer, despite using commercially reasonable
efforts, is unable or reasonably determines that it is impractical or
illegal, to hedge its exposure with respect to the Transaction in the
public market without registration under the Securities Act of 1933, as
amended (the “Securities Act”) or as a result of any legal, regulatory
or self-regulatory requirements or related policies and procedures
(whether or not such requirements, policies or procedures are imposed
by law or have been voluntarily adopted by Dealer).

	 	(i)	 	No Collateral or Setoff. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Company hereunder are not secured by any collateral. Neither party shall have the
right to set off any obligation that it may have to the other party under the
Transaction against any obligation such other party may have to it, whether arising
under the Agreement, this Confirmation or any other agreement between the parties
hereto, by operation of law or otherwise.
	 
	 	(j)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events.
	 
	 	 	 	If, in respect of the Transaction, an amount is payable by Company to Dealer, (A)
pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or (B) pursuant
to Section 6(d)(ii) of the Agreement (any such amount, a “Payment Obligation”),
Company shall have the right, in its sole discretion, to satisfy the Payment
Obligation by the Share Termination Alternative (as defined below) (except that
Company shall not have the right to make such an election in the event of (I) a
Nationalization, Insolvency, Merger Event or Tender Offer in which the consideration
to be paid to holders of Shares consists solely of cash, (II) a Merger Event or
Tender Offer that is within Company’s control, or (III) an Event of Default in which
Company is the Defaulting Party or a Termination Event in which Company is the
Affected Party, other than an Event of Default of the type described in Section
5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the
type described in Section 5(b) of the Agreement, in each case that resulted from an
event or events outside Company’s control) and shall give irrevocable telephonic
notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later
than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date,
Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early
Termination Date or date of cancellation, as applicable; provided that if Company
does not validly elect to satisfy the Payment Obligation by the Share Termination
Alternative, Dealer shall have the right to require Company to satisfy its Payment
Obligation by the Share Termination Alternative.

	 	 	 

	Share Termination Alternative:

	 	If the Share Termination Alternative
is applicable in respect of any
Payment Obligation, Company shall
deliver to Dealer the Share
Termination Delivery Property on the
date (the “Share Termination Payment
Date”) on which the Payment Obligation
would otherwise be due pursuant to
Section 12.7 or

15

 

	 	 	 

	 

	 	Section 12.9 of the
Equity Definitions or Section 6(d)(ii)
of the Agreement, as applicable,
subject to Section 9(k)(i) below, in
satisfaction, subject to Section
9(k)(ii) below, of the Payment
Obligation in the manner reasonably
requested by Dealer free of payment.
	 
	 	 
	Share Termination Delivery
Property:

	 	A number of Share Termination Delivery
Units, as calculated by the
Calculation Agent, equal to the
Payment Obligation divided by the
Share Termination Unit Price. The
Calculation Agent shall adjust the
amount of Share Termination Delivery
Property by replacing any fractional
portion of a security therein with an
amount of cash equal to the value of
such fractional security based on the
values used to calculate the Share
Termination Unit Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value to Dealer of property
contained in one Share Termination
Delivery Unit on the date such Share
Termination Delivery Units are to be
delivered as Share Termination
Delivery Property, as determined by
the Calculation Agent in its
discretion by commercially reasonable
means. The Calculation Agent shall
notify Company of such Share
Termination Unit Price at the time of
notification of the Payment
Obligation. In the case of a Private
Placement of Share Termination
Delivery Units that are Restricted
Shares (as defined below), as set
forth in Section 9(k)(i) below, the
Share Termination Unit Price shall be
determined by the discounted price
applicable to such Share Termination
Delivery Units. In the case of a
Registration Settlement of Share
Termination Delivery Units that are
Restricted Shares (as defined below)
as set forth in Section 9(k)(ii)
below, the Share Termination Unit
Price shall be the Settlement Price on
the Merger Date, the Tender Offer
Date, the Announcement Date (in the
case of a Nationalization, Insolvency
or Delisting), the date of
cancellation or the Early Termination
Date, as applicable.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event,
Event of Default Additional Disruption
Event or Delisting, one Share or, in
the case of Nationalization,
Insolvency, Tender Offer or Merger
Event, a unit consisting of the number
or amount of each type of property
received by a holder of one Share
(without consideration of any
requirement to pay cash or other
consideration in lieu of fractional
amounts of any securities) in such
Nationalization, Insolvency, Tender
Offer or Merger Event. If such
Nationalization, Insolvency, Tender
Offer or Merger Event involves a
choice of consideration to be received
by holders, such holder

16

 

	 	 	 

	 

	 	shall be
deemed to have elected to receive the
maximum possible amount of cash.
	 
	 	 
	Failure to Deliver:

	 	Inapplicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections
9.8, 9.9, 9.11, 9.12 and 10.5 (as
modified above) of the Equity
Definitions will be applicable, except
that all references in such provisions
to “Physically-settled” shall be read
as references to “Share Termination
Settled” and all references to
“Shares” shall be read as references
to “Share Termination Delivery Units”.
“Share Termination Settled” in
relation to the Transaction means that
the Share Termination Alternative is
applicable to the Transaction.

	 	(k)	 	Registration/Private Placement Procedures. If, in the reasonable
opinion of Dealer, following any delivery of Shares or Share Termination Delivery
Property to Dealer hereunder, such Shares or Share Termination Delivery Property would
be in the hands of Dealer subject to any applicable restrictions with respect to any
registration or qualification requirement or prospectus delivery requirement for such
Shares or Share Termination Delivery Property pursuant to any applicable federal or
state securities law (including, without limitation, any such requirement arising under
Section 5 of the Securities Act as a result of such Shares or Share Termination
Delivery Property being “restricted securities”, as such term is defined in Rule 144
under the Securities Act, or as a result of the sale of such Shares or Share
Termination Delivery Property being subject to paragraph (c) of Rule 145 under the
Securities Act) (such Shares or Share Termination Delivery Property, “Restricted
Shares”), then delivery of such Restricted Shares shall be effected pursuant to either
clause (i) or (ii) below at the election of Company, unless Dealer waives the need for
registration/private placement procedures set forth in (i) and (ii) below.
Notwithstanding the foregoing, solely in respect of any Daily Number of Warrants
exercised or deemed exercised on any Expiration Date, Company shall elect, prior to
the first Settlement Date for the First Expiration Date, a Private Placement
Settlement or Registration Settlement for all deliveries of Restricted Shares for
all such Expiration Dates which election shall be applicable to all Settlement Dates
for such Warrants and the procedures in clause (i) or clause (ii) below shall apply
for all such delivered Restricted Shares on an aggregate basis commencing after the
final Settlement Date for such Warrants. The Calculation Agent shall make
reasonable adjustments to settlement terms and provisions under this Confirmation to
reflect a single Private Placement or Registration Settlement for such aggregate
Restricted Shares delivered hereunder.

	 	(i)	 	If Company elects to settle the Transaction pursuant to this
clause (i) (a “Private Placement Settlement”), then delivery of Restricted
Shares by Company shall be effected in customary private placement procedures
with respect to such Restricted Shares reasonably acceptable to Dealer;
provided that Company may not elect a Private Placement Settlement if, on the
date of its election, it has taken, or caused to be taken, any action that
would make unavailable either the exemption pursuant to Section 4(2) of the
Securities Act for the sale by Company to Dealer (or any affiliate designated
by Dealer) of the Restricted Shares or the exemption pursuant to Section 4(1)
or Section 4(3) of the Securities Act for resales of the Restricted Shares by
Dealer (or any such affiliate of Dealer). The Private Placement Settlement of
such Restricted Shares shall include customary representations, covenants, blue
sky and other governmental filings and/or registrations, indemnities to Dealer,
due diligence rights (for Dealer or any designated buyer of the Restricted
Shares by Dealer), opinions and certificates, and such other documentation as
is customary for private placement agreements, all reasonably acceptable to
Dealer. In the case of a Private Placement Settlement, Dealer shall

17

 

	 	 	 	determine
the appropriate discount to the Share Termination Unit Price (in the case of
settlement of Share Termination Delivery Units pursuant to Section 9(j) above)
or any Settlement Price (in the case of settlement of Shares pursuant to
Section 2 above) applicable to such Restricted Shares in a commercially
reasonable manner and appropriately adjust the number of such Restricted Shares
to be delivered to Dealer hereunder. Notwithstanding the Agreement or this
Confirmation, the date of delivery of such Restricted Shares shall be the
Exchange Business Day following notice by Dealer to Company, of such applicable
discount and the number of Restricted Shares to be delivered pursuant to this
clause (i). For the avoidance of doubt, delivery of Restricted Shares shall be
due as set forth in the previous sentence and not be due on the Share
Termination Payment Date (in the case of settlement of Share Termination
Delivery Units pursuant to Section 9(j) above) or on the Settlement Date for
such Restricted Shares (in the case of settlement in Shares pursuant to Section
2 above).
	 
	 	(ii)	 	If Company elects to settle the Transaction pursuant to this
clause (ii) (a “Registration Settlement”), then Company shall promptly (but in
any event no later than the beginning of the Resale Period) file and use its
commercially reasonable efforts to cause to become effective under the
Securities Act a registration statement or supplement or amend an outstanding
registration statement in form and substance reasonably satisfactory to Dealer,
to cover the resale of such Restricted Shares in accordance with customary
resale registration procedures, including covenants, conditions,
representations, underwriting discounts (if applicable), commissions (if
applicable), indemnities, due diligence rights, opinions and certificates, and
such other documentation as is customary for equity resale underwriting
agreements, all reasonably acceptable to Dealer. If Dealer, in its reasonable
discretion, is not satisfied with such procedures and documentation, Private
Placement Settlement shall apply. If Dealer is satisfied with such procedures
and documentation, it shall sell the Restricted Shares pursuant to such
registration statement during a period (the “Resale Period”) commencing on the
Exchange Business Day following delivery of such Restricted Shares (which, for
the avoidance of doubt, shall be (x) the Share
Termination Payment Date in case of settlement in Share Termination Delivery
Units pursuant to Section 9(j) above or (y) the Settlement Date in respect
of the final Expiration Date for all Daily Number of Warrants) and ending on
the earliest of (i) the Exchange Business Day on which Dealer completes the
sale of all Restricted Shares or, in the case of settlement of Share
Termination Delivery Units, a sufficient number of Restricted Shares so that
the realized net proceeds of such sales equals or exceeds the Payment
Obligation (as defined above), (ii) the date upon which all Restricted
Shares have been sold or transferred pursuant to Rule 144 (or similar
provisions then in force) or Rule 145(d)(2) (or any similar provision then
in force) under the Securities Act and (iii) the date upon which all
Restricted Shares may be sold or transferred by a non-affiliate pursuant to
Rule 144 (or any similar provision then in force) or Rule 145(d)(2) (or any
similar provision then in force) under the Securities Act. If the Payment
Obligation exceeds the realized net proceeds from such resale, Company shall
transfer to Dealer by the open of the regular trading session on the
Exchange on the Exchange Trading Day immediately following the last day of
the Resale Period the amount of such excess (the “Additional Amount”) in
cash or in a number of Shares (“Make-whole Shares”) in an amount that, based
on the Settlement Price on the last day of the Resale Period (as if such day
was the “Valuation Date” for purposes of computing such Settlement Price),
has a dollar value equal to the Additional Amount. The Resale Period shall
continue to enable the sale of the Make-whole Shares. If Company elects to
pay the Additional Amount in Shares, the requirements and provisions for
Registration Settlement shall apply. This provision shall be applied
successively until the Additional Amount is equal to zero. In no event
shall Company deliver a number of Restricted Shares greater than the Maximum
Number of Shares.

18

 

	 	(iii)	 	Without limiting the generality of the foregoing, Company
agrees that any Restricted Shares delivered to Dealer, as purchaser of such
Restricted Shares, (i) may be transferred by and among Dealer and its
affiliates and Company shall effect such transfer without any further action by
Dealer and (ii) after the period of 6 months from the Trade Date (or 1 year
from the Trade Date if, at such time, informational requirements of Rule 144(c)
are not satisfied with respect to Company) has elapsed after any Settlement
Date for such Restricted Shares, Company shall promptly remove, or cause the
transfer agent for such Restricted Shares to remove, any legends referring to
any such restrictions or requirements from such Restricted Shares upon request
by Dealer (or such affiliate of Dealer) to Company or such transfer agent,
without any requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax
stamps or payment of any other amount or any other action by Dealer (or such
affiliate of Dealer).

	 	 	If the Private Placement Settlement or the Registration Settlement shall not be
effected as set forth in clauses (i) or (ii), as applicable, then failure to effect
such Private Placement Settlement or such Registration Settlement shall constitute
an Event of Default with respect to which Company shall be the Defaulting Party.

	 	(l)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions
hereof, Dealer may not exercise any Warrant hereunder or be entitled to take delivery
of any Shares deliverable hereunder, and Automatic Exercise shall not apply with
respect to any Warrant hereunder, to the extent (but only to the extent) that, after
such receipt of any Shares upon the exercise of such Warrant or otherwise hereunder and
after taking into account any Shares deliverable to Dealer under the letter agreement
dated September 14, 2010 between Dealer and Company regarding Base Warrants (the “Base
Warrant Confirmation”), (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. Any purported delivery hereunder
shall be void and have no effect to the extent (but only to the extent) that, after
such delivery and after taking into account any Shares deliverable to Dealer under the
Base Warrant Confirmation, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would
exceed the Applicable Share Limit. If any delivery owed to Dealer hereunder is not
made, in whole or in part, as a result of this provision, Company’s obligation to
make such delivery shall not be extinguished and Company shall make such delivery as
promptly as practicable after, but in no event later than one Business Day after,
Dealer gives notice to Company that, after such delivery, (i) the Section 16
Percentage would not exceed 7.5%, and (ii) the Share Amount would not exceed the
Applicable Share Limit.
	 
	 	(m)	 	Share Deliveries. Company acknowledges and agrees that, to the extent
the holder of this Warrant is not then an affiliate and has not been an affiliate for
90 days (it being understood that Dealer will not be considered an affiliate under this
paragraph solely by reason of its receipt of Shares pursuant to the Transaction), and
otherwise satisfies all holding period and other requirements of Rule 144 of the
Securities Act applicable to it, any delivery of Shares or Share Termination Delivery
Property hereunder at any time after 6 months from the Trade Date (or 1 year from the
Trade Date if, at such time, informational requirements of Rule 144(c) are not
satisfied with respect to Company) shall be eligible for resale under Rule 144 of the
Securities Act and Company agrees to promptly remove, or cause the transfer agent for
such Shares or Share Termination Delivery Property, to remove, any legends referring to
any restrictions on resale under the Securities Act from the Shares or Share
Termination Delivery Property. Company further agrees that any delivery of Shares or
Share Termination Delivery Property prior to the date that is 6 months from the Trade
Date (or 1 year from the Trade Date if, at such time, informational requirements of
Rule 144(c) are not satisfied with respect to Company), may be transferred by and among
Dealer and its affiliates and Company shall effect such transfer without any further
action by Dealer. Notwithstanding anything to the contrary herein, Company agrees that
any delivery of Shares or Share Termination Delivery Property shall be effected by
book-entry transfer through the facilities of DTC, or any successor depositary, if at
the time of delivery, such class of Shares or

19

 

	 	 	 	class of Share Termination Delivery
Property is in book-entry form at DTC or such successor depositary. Notwithstanding
anything to the contrary herein, to the extent the provisions of Rule 144 of the
Securities Act or any successor rule are amended, or the applicable interpretation
thereof by the Securities and Exchange Commission or any court change after the Trade
Date, the agreements of Company herein shall be deemed modified to the extent
necessary, in the opinion of outside counsel of Company, to comply with Rule 144 of the
Securities Act, as in effect at the time of delivery of the relevant Shares or Share
Termination Delivery Property.
	 
	 	(n)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to the Transaction. Each party (i) certifies that
no representative, agent or attorney of the other party has represented, expressly or
otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into the Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.
	 
	 	(o)	 	Tax Disclosure. Effective from the date of commencement of discussions
concerning the Transaction, Company and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Company relating to
such tax treatment and tax structure.
	 
	 	(p)	 	Maximum Share Delivery.

	 	(i)	 	Notwithstanding any other provision of this Confirmation, the
Agreement or the Equity Definitions, in no event will Company at any time be
required to deliver a number of Shares greater than two times the Number of
Shares (the “Maximum Number of Shares”) to Dealer in connection with the
Transaction taking into account any Shares deliverable to Dealer under the Base
Warrant Confirmation.
	 
	 	(ii)	 	In the event Company shall not have delivered to Dealer the
full number of Shares or Restricted Shares otherwise deliverable by Company to
Dealer pursuant to the terms of the Transaction because Company has
insufficient authorized but unissued Shares (such deficit, the “Deficit
Shares”), Company shall be continually obligated to deliver, from time to time,
Shares or Restricted Shares, as the case may be, to Dealer until the full
number of Deficit Shares have been delivered pursuant to this Section 9(p)(ii),
when, and to the extent that, (A) Shares are repurchased, acquired or otherwise
received by Company or any of its subsidiaries after the Trade Date (whether or
not in exchange for cash, fair value or any other consideration), (B)
authorized and unissued Shares reserved for issuance in respect of other
transactions prior to such date that prior to the relevant date become no
longer so reserved or (C) Company additionally authorizes any unissued Shares
that are not reserved for other transactions; provided that in no event shall
Company deliver any Shares or Restricted Shares to Dealer pursuant to this
Section 9(p)(ii) to the extent that such delivery would cause the aggregate
number of Shares and Restricted Shares delivered to Dealer to exceed the
Maximum Number of Shares. Company shall immediately notify Dealer of the
occurrence of any of the foregoing events (including the number of Shares
subject to clause (A), (B) or (C) and the corresponding number of Shares or
Restricted Shares, as the case may be, to be delivered) and promptly deliver
such Shares or Restricted Shares, as the case may be, thereafter.

	 	(q)	 	Right to Extend. Dealer may postpone, in whole or in part, any
Expiration Date or any other date of valuation or delivery with respect to some or all
of the relevant Warrants (in which event the Calculation Agent shall make appropriate
adjustments to the Daily Number of Warrants with respect to one or more Expiration
Dates) if Dealer determines, in its commercially reasonable

20

 

	 	 	 	judgment, that such
extension is reasonably necessary or appropriate to preserve Dealer’s hedging or hedge
unwind activity hereunder in light of existing liquidity conditions or to enable Dealer
to effect purchases of Shares in connection with its hedging, hedge unwind or
settlement activity hereunder in a manner that would, if Dealer were Issuer or an
affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures applicable to
Dealer.

	 	(r)	 	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that
this Confirmation is not intended to convey to Dealer rights against Company with
respect to the Transaction that are senior to the claims of common stockholders of
Company in any United States bankruptcy proceedings of Company; provided that nothing
herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the
event of a breach by Company of its obligations and agreements with respect to the
Transaction; provided, further, that nothing herein shall limit or shall be deemed to
limit Dealer’s rights in respect of any transactions other than the Transaction.
	 
	 	(s)	 	Securities Contract; Swap Agreement. The parties hereto intend for (i)
the Transaction to be a “securities contract” and a “swap agreement” as defined in the
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the
parties hereto to be entitled to the protections afforded by, among other Sections,
Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code,
(ii) a party’s right to liquidate the Transaction and to exercise any other remedies
upon the occurrence of any Event of Default under the Agreement with respect to the
other party to constitute a “contractual right” as described in the Bankruptcy Code,
and (iii) each payment and delivery of cash, securities or other property hereunder to
constitute a “margin payment” or “settlement payment” and a “transfer” as defined in
the Bankruptcy Code.
	 
	 	(t)	 	Early Unwind. In the event the sale of the “Option Securities” (as
defined in the Purchase Agreement) is not consummated with the Initial Purchasers for
any reason, or Company fails to deliver to Dealer opinions of counsel as required
pursuant to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium
Payment Date, or such later date as agreed upon by the parties (the Premium Payment
Date or such later date the “Early Unwind Date”), the
Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind
Date and (i) the Transaction and all of the respective rights and obligations of
Dealer and Company under the Transaction shall be cancelled and terminated and (ii)
each party shall be released and discharged by the other party from and agrees not
to make any claim against the other party with respect to any obligations or
liabilities of the other party arising out of and to be performed in connection with
the Transaction either prior to or after the Early Unwind Date; provided that
Company shall purchase from Dealer on the Early Unwind Date all Shares purchased by
Dealer or one or more of its affiliates in connection with the Transaction at the
then prevailing market price. Each of Dealer and Company represent and acknowledge
to the other that, subject to the proviso included in this Section 9(t), upon an
Early Unwind, all obligations with respect to the Transaction shall be deemed fully
and finally discharged.
	 
	 	(u)	 	Payment by Dealer. In the event that (i) an Early Termination Date
occurs or is designated with respect to the Transaction as a result of a Termination
Event or an Event of Default (other than an Event of Default arising under Section
5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an
amount calculated under Section 6(e) of the Agreement, or (ii) Dealer owes to Company,
pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount
calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to
be zero.

21

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
this Confirmation and returning it to EDG Confirmation Group, J.P. Morgan Securities LLC, 277 Park
Avenue, 11th Floor, New York, NY 10172-3401, or by fax to (212) 622 8519.

	 	 	 	 	 	 
	 	Very truly yours,
 	 
	 
	 	 	
J.P. Morgan Securities LLC, as agent for

JPMorgan Chase Bank, National

Association

 	 
	 	 	By:  	/s/ Santosh Sreenivasan
 	 
	 	 	 	Authorized Signatory 	 
	 	 	 	Name: Santosh Sreenivasan 	 
	 

	 	 	 	 	 
	Accepted and confirmed

as of the Trade Date:

Tower Group, Inc.

 	 
	By:  	/s/ William E. Hitselberger
 	 
	 	Authorized Signatory 	 
	 	Name: William E. Hitselberger 	 
	 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authorityexv4w1

Exhibit 4.1

 

CORN PRODUCTS INTERNATIONAL, INC.

as Issuer

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

 

Fifth Supplemental Indenture

Dated as of September 17, 2010

 

$350,000,000

3.200% Senior Notes Due November 1, 2015

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 1	 	 	 	 
	 		Relation to Indenture; Definitions; Rules of Construction
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.
	 	Relation to Indenture	 	 	2	 
	Section 1.02.
	 	Definitions	 	 	2	 
	Section 1.03.
	 	Rules of Construction	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 2	 	 	 	 
	 
	 	The Securities	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Title of the Securities	 	 	5	 
	Section 2.02.
	 	Aggregate Principal Amount	 	 	5	 
	Section 2.03.
	 	Maturity Date	 	 	5	 
	Section 2.04.
	 	Ranking	 	 	5	 
	Section 2.05.
	 	Interest	 	 	5	 
	Section 2.06.
	 	Issuance Price	 	 	5	 
	Section 2.07.
	 	Defeasance	 	 	5	 
	Section 2.08.
	 	Form and Dating	 	 	5	 
	Section 2.09.
	 	Optional Redemption	 	 	6	 
	Section 2.10.
	 	Repurchase Upon Change of Control	 	 	7	 
	Section 2.11.
	 	Special Mandatory Redemption.	 	 	8	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 3	 	 	 	 
	 
	 	Amendments to the Indenture	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Events of Default	 	 	9	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 4	 	 	 	 
	 
	 	Miscellaneous Provisions	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Ratification	 	 	9	 
	Section 4.02.
	 	Governing Law	 	 	9	 
	Section 4.03.
	 	Counterparts and Method of Execution	 	 	9	 
	Section 4.04.
	 	Section Titles	 	 	10	 
	Section 4.05.
	 	The Trustee	 	 	10	 

i 

 

FIFTH SUPPLEMENTAL INDENTURE

     This FIFTH SUPPLEMENTAL INDENTURE, dated as of September 17, 2010 (this “Supplemental
Indenture”), is entered into by and between Corn Products International, Inc., a corporation
incorporated under the laws of the State of Delaware (the “Company”), and The Bank of New York
Mellon Trust Company, N.A., as trustee (the “Trustee”).

WITNESSETH:

     WHEREAS, the Company and the Trustee (as successor trustee to The Bank of New York) are
parties to an Indenture, dated as of August 18, 1999 (the “Indenture”), relating to the issuance
from time to time by the Company of its Securities on terms to be specified at the time of
issuance;

     WHEREAS, the Company proposes to create under the Indenture a new series of Securities;

     WHEREAS, Section 2.01 of the Indenture provides that at or prior to the issuance of any
Securities within a series, the terms of the series of Securities shall be established by a
supplemental indenture or an Officers’ Certificate pursuant to authority granted under resolutions
of the Board of Directors of the Company;

     WHEREAS, Section 10.01 of the Indenture provides that when authorized by a Certified Board
Resolution, the Company and the Trustee may enter into a supplemental indenture to change or
eliminate any of the provisions of the Indenture without the consent of the holders of any
Securities of any series then outstanding, provided that any such change or elimination would not
adversely affect such provision as applied to any series of Securities created prior to the
execution of such supplemented indenture;

     WHEREAS, the changes set forth herein do not adversely affect the holders of any securities
issued prior to the date hereof;

     WHEREAS, on June 19, 2010, the Company entered into the International Share and Business Sale
Agreement (the “Sale Agreement”) with Akzo Nobel N.V., providing for the purchase of certain
business entities and assets comprising Akzo Nobel N.V.’s specialty starches business commonly
known as “National Starch” (the “Acquisition”);

     WHEREAS, if the Acquisition is consummated, the net proceeds of the sale of the Notes will be
used to pay a portion of the purchase price of the Acquisition; and

 

 

     WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental
Indenture and to make it a valid and binding agreement of the Company have been done or performed.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the
Trustee mutually covenant and agree as follows:

ARTICLE 1

Relation to Indenture; Definitions; Rules of Construction

     Section 1.01. Relation to Indenture. This Supplemental Indenture constitutes an integral
part of the Indenture.

     Section 1.02. Definitions. For all purposes of this Supplemental Indenture, the following
terms shall have the respective meanings set forth in this Section.

     “Below Investment Grade Rating Event” means the Notes are rated below Investment Grade by each
of the Rating Agencies on any date from the date of the public notice of an arrangement that could
result in a Change of Control until the end of the 60-day period following public notice of the
occurrence of a Change of Control (which period shall be extended so long as the rating of the
Notes is under publicly announced consideration for possible downgrade by any of the Rating
Agencies).

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of
the Company and its subsidiaries taken as a whole to any “person” (as that term is used in Section
13(d)(3) of the Exchange Act), other than the Company or one of its subsidiaries; (2) the
consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)
becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding
number of shares of the Company’s Voting Stock; or (3) the first day on which a majority of the
members of the Company’s Board of Directors are not Continuing Directors.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining

2

 

term of the 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 comparable maturity to the
remaining term of such Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (i) the average of
four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee is provided with fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii)
if only one Reference Treasury Dealer Quotation is received, such quotation.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who (1) was a member of such Board of Directors on the date of the
issuance of the Notes; or (2) was nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such Board of Directors
at the time of such nomination or election (either by a specific vote or by approval of the
Company’s proxy statement in which such member was named as a nominee for election as a director).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fitch” means Fitch Ratings Ltd.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s); a rating of BBB– or better by S&P (or its equivalent under
any successor rating categories of S&P); and a rating of BBB– or better by Fitch (or its equivalent
under any successor rating categories of Fitch); or the equivalent investment grade credit rating
from any additional Rating Agency or Rating Agencies selected by the Company.

     “Moody’s” means Moody’s Investors Service Inc.

     “Quotation Agent” means the Reference Treasury Dealer appointed by the Company.

     “Rating Agency” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s or
S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company as a
replacement agency for Fitch, Moody’s or S&P, as the case may be.

     “Reference Treasury Dealer” means (i) each of J.P. Morgan Securities LLC, Banc of America
Securities LLC and Citigroup Global Markets Inc. (or

3

 

their respective affiliates that are Primary
Treasury Dealers) and their respective successors; provided, however, that if any of the foregoing
shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury
Dealer”), the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other
Primary Treasury Dealer selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, 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 Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding such redemption date.

     “Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming 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.

     “S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.

     “Voting Stock” of any specified person means capital stock of any class or kind the holders of
which are ordinarily, in the absence of contingencies, entitled to vote for the election of
directors (or persons performing similar functions) of such person, even if the right so to vote
has been suspended by the happening of such a contingency.

     Section 1.03. Rules of Construction. For all purposes of this Supplemental Indenture:

     (a) capitalized terms used herein without definition shall have the meanings specified in the
Indenture;

     (b) all references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture;

     (c) the terms “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Supplemental Indenture; and

     (d) in the event of a conflict with the definition of terms in the Indenture, the definitions
in this Supplemental Indenture shall control.

4

 

ARTICLE 2

The Securities

     There is hereby established a series of Securities pursuant to the Indenture with the
following terms:

     Section 2.01. Title of the Securities. The series of Securities shall be designated the
3.200% Senior Notes due 2015 (the “Notes”).

     Section 2.02. Aggregate Principal Amount. The Notes will be initially issued in an
aggregate principal amount of $350,000,000 (not including the Notes authenticated and delivered
upon registration of, transfer of, or in exchange for, or in lieu of, other Securities pursuant to
Sections 2.06, 2.07, 2.08, 3.02 or 10.04 of the Indenture).

     Section 2.03. Maturity Date. The date on which the principal of the Notes is payable is
November 1, 2015, subject to the provisions of the Indenture relating to acceleration.

     Section 2.04. Ranking. The Notes will be unsecured senior debt of the Company and will rank
on a parity with all other unsecured and unsubordinated indebtedness of the Company.

     Section 2.05. Interest. The Notes will bear interest from September 17, 2010, or from the
most recent interest payment date to which interest has been paid or duly provided for, at a rate
of 3.200% per annum, payable semi-annually on May 1 and November 1 of each year, commencing May 1,
2011. The Company will pay interest to the person in whose name a Note is registered at the close
of business on the April 15 or October 15, as the case may be, preceding the interest payment date.
The Company will compute interest on the basis of a 360-day year consisting of twelve 30-day
months.

     Section 2.06. Issuance Price. The purchase price to be paid to the Company for the sale of
the Notes pursuant to the terms of the Underwriting Agreement, dated as of September 14, 2010,
between the Company and J.P. Morgan Securities Inc., Banc of America Securities LLC and Citigroup
Global Markets Inc., as Representatives of the several Underwriters named in Schedule 1 thereto,
shall be 99.223% of the principal amount of the Notes and the initial offering price to the public
of the Notes shall be 99.823% of the principal amount of the Notes.

     Section 2.07. Defeasance. The Notes shall be subject to defeasance under Section 12.02 of
the Indenture.

     Section 2.08. Form and Dating. (a) The Notes shall be substantially in the form of Exhibit
A hereto. The Notes may have notations, legends or

5

 

endorsements required by law, stock exchange
rule or usage. Each Note shall be dated the date of its authentication.

     (b) The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Supplemental Indenture, and the Company and the Trustee, by their execution
and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Notes conflicts with the express
provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture shall
govern and be controlling.

     (c) The Notes will be issued in the form of a fully-registered Global Security. The Global
Security will be deposited with, or on behalf of, the Depositary and registered in the name of the
Depositary or its nominee. Except as set forth in the Prospectus Supplement dated September 14,
2010, the Global Security may be transferred, in whole and not in part, only by the Depositary to
its nominee or by its nominee to such Depositary or another nominee of the Depositary or by the
Depositary or its nominee to a successor of the Depositary or a nominee of such successor. If the
Depositary is at any time unwilling or unable to continue as depositary and a successor depositary
is not appointed by the Company within 90 calendar days, the Company will issue Notes in
certificated form in exchange for the Global Security. In addition, the Company may at any time
determine not to have the Notes represented by a Global Security, and, in such event, will issue
Notes in certificated form in exchange for the Global Security. In either instance, an owner of an
interest in the Global Security would be entitled to physical delivery of such Notes in
certificated form. Notes so issued in certificated form will be issued in denominations of $2,000
and integral multiples of $1,000 in excess thereof and will be issued in registered form only.

     Section 2.09. Optional Redemption. (a) The Notes will be redeemable, in whole at any time
or in part from time to time, at the Company’s option at a redemption price equal to the greater
of: (i) 100% of the principal amount of the Notes to be redeemed; and (ii) the sum of the present
values of the remaining scheduled payments of principal and interest thereon (not including any
portion of such payments of interest accrued as of the date of redemption), 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 (as defined below), plus 30 basis points, plus, in each case, accrued interest
thereon to the date of redemption. Notwithstanding the foregoing, installments of interest on
Notes that are due and payable on interest payment dates falling on or prior to a redemption date
will be payable on the interest payment date to the registered holders as of the close of business
on the relevant record date according to the Notes and the Indenture.

     (b) Notice of any redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each holder of the Notes to be

6

 

redeemed. Unless the Company defaults in
payment of the redemption price, on and after the redemption date, interest will cease to accrue on
the Notes or portions thereof called for redemption. If less than all of the Notes are to be
redeemed, the Notes to be redeemed shall be selected by lot by The Depository Trust Company, in the
case of Notes represented by a global security, or by the Trustee by a method the Trustee deems to
be fair and appropriate, in the case of Notes that are not represented by a global security.

     Section 2.10. Repurchase Upon Change of Control. (a) If a Change of Control Repurchase
Event occurs, unless the Company has exercised its right to redeem the Notes, the Company will make
an offer to each holder of Notes to repurchase all or any part (equal to $2,000 or in integral
multiples of $1,000 in excess thereof) of that holder’s Notes at a repurchase price in cash equal
to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest
on the Notes repurchased to the date of repurchase. Within 30 days following any Change of Control
Repurchase Event or, at the Company’s option, prior to any Change of Control, but after the public
announcement of an impending Change of Control, the Company will mail a notice to each holder, with
a copy to the Trustee, describing the transaction or transactions that constitute or may constitute
the Change of Control Repurchase Event and offering to repurchase Notes on the payment date
specified in the notice, which date will be no earlier than 30 days and no later than 60 days from
the date such notice is mailed. The notice shall, if mailed prior to the date of consummation of
the Change of Control, state that the offer to repurchase is conditioned on the Change of Control
Repurchase Event occurring on or prior to the payment date specified in the notice.

     (b) The Company will comply with the requirements of Rule 14e-1 under the Exchange Act, and
any other securities laws and regulations thereunder, to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control
Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict
with the Change of Control Repurchase Event provisions of the Notes, the Company will comply with
the applicable securities laws and regulations and will not be deemed to have breached its
obligations under the Change of Control Repurchase Event provisions of the Notes by virtue of such
conflict.

     (c) On the Change of Control Repurchase Event payment date, the Company will, to the extent
lawful:

     (i) accept for payment all Notes or portions of Notes (equal to $2,000 or in integral
multiples of $1,000 in excess thereof) properly tendered pursuant to the Company’s offer;

7

 

     (ii) deposit with the paying agent an amount equal to the aggregate repurchase price
in respect of all Notes or portions of Notes properly tendered; and

     (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted,
together with an officers’ certificate stating the aggregate principal amount of Notes
being purchased by the Company.

     (d) The paying agent will promptly mail to each holder of Notes properly tendered the
repurchase price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each holder a new Note equal in principal amount to any unpurchased
portion of any Notes surrendered; provided, that each new Note will be in a principal amount of
$1,000 or an integral multiple of $1,000.

     (e) The Company will not be required to make an offer to repurchase the Notes upon a Change of
Control Repurchase Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Notes properly tendered and not withdrawn under its offer

     Section 2.11. Special Mandatory Redemption. The Notes will be subject to a special mandatory
redemption in the event the Sale Agreement is terminated or the Acquisition is not consummated on
or prior to 11:59 p.m., New York City time, on March 31, 2011 (a “Redemption Event”). In that
event, the Notes will be redeemed at a special mandatory redemption price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date of the Special
Redemption Date (as defined below) (the “Special Mandatory Redemption Price”).

     Upon the occurrence of a Redemption Event, the Company shall give written notice to the
Trustee, not later than 2:00 p.m., New York City time, on the immediately following Business Day,
that the Notes shall be redeemed as provided herein. Not later than the fifth Business Day
following receipt of such notice, the Company, or the Trustee on behalf of the Company, will mail
notice of the foregoing redemption to the registered Holders of the Notes, specifying the
redemption date, which shall be the fifth Business Day following mailing of such notice (the
“Special Redemption Date”) and the Notes shall be redeemed without any action from the Holders of
the Notes. The Special Mandatory Redemption Price shall be paid in accordance with the rules of the
Depository for the Notes on the Special Mandatory Redemption Date; provided, however, that the
Company shall deposit with the Trustee an amount sufficient to pay the Special Mandatory Redemption
Price by 10:00 a.m., New York City time, on the Special Redemption Date.

8

 

ARTICLE 3

Amendments to the Indenture

     Section 3.01. Events of Default. For purposes of this series of Notes only, Section 6.01(5)
of the Indenture is deleted in its entirety and replaced with the following:

	 	 	“the failure by the Company or any of its Subsidiaries to pay any principal or premium or
interest on any Indebtedness which is outstanding in a principal amount of at least
$50,000,000 (or its equivalent in another currency) in the aggregate (but excluding
Indebtedness evidenced by the Securities or otherwise arising under this Indenture), when
the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and the continuation of such failure after the
applicable grace period, if any, specified in the agreement or instrument relating to such
Indebtedness; or the occurrence or existence of any other event or condition under any
agreement or instrument relating to any such Indebtedness that continues after the
applicable grace period, if any, specified in such agreement or instrument, if the effect
of such event or condition is to accelerate, or to permit the acceleration of, the
maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled required
prepayment), redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or
defease such Indebtedness shall be required to be made, in each case prior to the stated
maturity thereof.”

ARTICLE 4

Miscellaneous Provisions

     Section 4.01. Ratification. The Indenture, as supplemented and amended by this Supplemental
Indenture, is in all respects hereby adopted, ratified and confirmed.

     Section 4.02. Governing Law. This Supplemental Indenture shall be governed by, and
construed and enforced in accordance with, the laws of the jurisdiction which govern the Indenture
and its construction.

     Section 4.03. Counterparts and Method of Execution. This Supplemental Indenture may be
executed in several counterparts, all of which together shall constitute one agreement binding on
all parties hereto, notwithstanding that all parties have not signed the same counterpart.

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     Section 4.04. Section Titles. Section titles are for descriptive purposes only and shall
not control or alter the meaning of this Supplemental Indenture as set forth in the text.

     Section 4.05. The Trustee. The recitals contained herein shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture.

10

 

     IN WITNESS WHEREOF, CORN PRODUCTS INTERNATIONAL, INC. AND THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A. have caused this Supplemental Indenture to be duly executed, all as of the day
and year first above written.

	 	 	 	 	 
	 	CORN PRODUCTS INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Cheryl K. Beebe
 	 
	 	 	Name:  	Cheryl K. Beebe 	 
	 	 	Title:  	Vice President and
Chief 
Financial Officer 	 
	 
	 	 	 
	 	By:  	/s/ Kimberly A. Hunter
 	 
	 	 	Name:  	Kimberly A. Hunter 	 
	 	 	Title:  	Corporate Treasurer 	 
	 
	 	THE BANK OF NEW YORK MELLON 

TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	/s/ M. Callahan
 	 
	 	 	Name:  	Mary Callahan 	 
	 	 	Title:  	Vice President 	 
	 

11

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