Document:

exv4w1

 

Exhibit 4.1

MEDTRONIC, INC.

as Issuer

and

WELLS FARGO BANK, N.A.

as Trustee

 

Indenture

Dated as of April 18, 2006

 

$2,200,000,000

1.50% Convertible Senior Notes due 2011

 

 

	 	 	 	 	 	 	 
	 
	 	RECITALS	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 1	 	 	 	 
	 
	 	Definitions And Incorporation By Reference	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.
	 	Definitions	 	 	1	 
	Section 1.02.
	 	Other Definitions	 	 	8	 
	Section 1.03.
	 	Incorporation by Reference of Trust Indenture Act	 	 	9	 
	Section 1.04.
	 	Rules of Construction	 	 	10	 
	Section 1.05.
	 	Acts of Holders	 	 	10	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 2	 	 	 	 
	 
	 	The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Form, Dating and Denominations; Legends	 	 	11	 
	Section 2.02.
	 	Execution And Authentication	 	 	12	 
	Section 2.03.
	 	Registrar, Paying Agent And Conversion Agent	 	 	13	 
	Section 2.04.
	 	Paying Agent To Hold Money In Trust	 	 	13	 
	Section 2.05.
	 	Noteholder Lists	 	 	14	 
	Section 2.06.
	 	Transfer And Exchange	 	 	14	 
	Section 2.07.
	 	Replacement Notes	 	 	15	 
	Section 2.08.
	 	Outstanding Notes	 	 	16	 
	Section 2.09.
	 	Treasury Notes	 	 	16	 
	Section 2.10.
	 	Temporary Notes	 	 	16	 
	Section 2.11.
	 	Cancellation	 	 	17	 
	Section 2.12.
	 	CUSIP Numbers	 	 	17	 
	Section 2.13.
	 	Book-entry Provisions For Global Notes	 	 	17	 
	Section 2.14.
	 	Special Transfer Provisions	 	 	18	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 3	 	 	 	 
	 
	 	Purchases	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Redemption At The Option Of The Holder	 	 	19	 
	Section 3.02.
	 	Effect Of Change In Control Purchase Notice	 	 	23	 
	Section 3.03.
	 	Deposit Of Change In Control Purchase Price	 	 	24	 
	Section 3.04.
	 	Notes Purchased In Part	 	 	24	 
	Section 3.05.
	 	Covenant To Comply With Securities Laws Upon Repurchase Of Notes	 	 	25	 

 

 

	 	 	 	 	 	 	 
	 
	 	ARTICLE 4	 	 	 	 
	 
	 	Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Payment Of Notes	 	 	25	 
	Section 4.02.
	 	Maintenance of Office or Agency	 	 	26	 
	Section 4.03.
	 	Existence	 	 	26	 
	Section 4.04.
	 	Rule 144A Information And Annual Reports	 	 	26	 
	Section 4.05.
	 	Reports to Trustee	 	 	27	 
	Section 4.06.
	 	Stay, Extension And Usury Laws	 	 	28	 
	Section 4.07.
	 	Payment Of Additional Interest	 	 	28	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 5	 	 	 	 
	 
	 	Consolidation, Merger, Sale or Lease of Assets	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.
	 	Consolidation, Merger, Sale or Lease of Assets by the Company	 	 	28	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 6	 	 	 	 
	 
	 	Default and Remedies	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.
	 	Events of Default	 	 	29	 
	Section 6.02.
	 	Acceleration	 	 	30	 
	Section 6.03.
	 	Other Remedies	 	 	31	 
	Section 6.04.
	 	Waiver of Past Defaults	 	 	31	 
	Section 6.05.
	 	Control by Majority	 	 	31	 
	Section 6.06.
	 	Limitation on Suits	 	 	31	 
	Section 6.07.
	 	Rights of Holders to Receive Payment	 	 	32	 
	Section 6.08.
	 	Collection Suit by Trustee	 	 	32	 
	Section 6.09.
	 	Trustee May File Proofs of Claim	 	 	32	 
	Section 6.10.
	 	Priorities	 	 	33	 
	Section 6.11.
	 	Restoration of Rights and Remedies	 	 	33	 
	Section 6.12.
	 	Undertaking for Costs	 	 	33	 
	Section 6.13.
	 	Rights and Remedies Cumulative	 	 	33	 
	Section 6.14.
	 	Delay or Omission Not Waiver	 	 	34	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 7	 	 	 	 
	 
	 	The Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.
	 	General	 	 	34	 
	Section 7.02.
	 	Certain Rights of Trustee	 	 	34	 
	Section 7.03.
	 	Individual Rights of Trustee	 	 	35	 
	Section 7.04.
	 	Trustee’s Disclaimer	 	 	36	 
	Section 7.05.
	 	Notice of Default	 	 	36	 
	Section 7.06.
	 	Reports by Trustee to Holders	 	 	36	 
	Section 7.07.
	 	Compensation and Indemnity	 	 	36	 
	Section 7.08.
	 	Replacement of Trustee	 	 	37	 
	Section 7.09.
	 	Successor Trustee by Merger	 	 	38	 
	Section 7.10.
	 	Eligibility	 	 	38	 
	Section 7.11.
	 	Money Held in Trust	 	 	38	 

ii

 

	 	 	 	 	 	 	 
	 
	 	ARTICLE 8	 	 	 	 
	 
	 	Discharge	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01.
	 	Satisfaction And Discharge Of The Indenture	 	 	39	 
	Section 8.02.
	 	Application Of Trust Money	 	 	39	 
	Section 8.03.
	 	Repayment To Company	 	 	40	 
	Section 8.04.
	 	Reinstatement	 	 	40	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 9	 	 	 	 
	 
	 	Amendments, Supplements and Waivers	 	 	 	 
	 
	 	 	 	 	 	 
	Section 9.01.
	 	Amendments Without Consent of Holders	 	 	40	 
	Section 9.02.
	 	Amendments With Consent of Holders	 	 	41	 
	Section 9.03.
	 	Effect of Consent	 	 	42	 
	Section 9.04.
	 	Trustee’s Rights and Obligations	 	 	43	 
	Section 9.05.
	 	Conformity With Trust Indenture Act	 	 	43	 
	Section 9.06.
	 	Payments for Consents	 	 	43	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 10	 	 	 	 
	 
	 	Conversion	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01.
	 	Conversion Privilege	 	 	43	 
	Section 10.02.
	 	Conversion Procedure	 	 	45	 
	Section 10.03.
	 	Fractional Shares	 	 	47	 
	Section 10.04.
	 	Taxes On Conversion	 	 	47	 
	Section 10.05.
	 	Company To Provide Common Stock	 	 	47	 
	Section 10.06.
	 	Adjustment for Change In Capital Stock	 	 	48	 
	Section 10.07.
	 	Adjustment for Rights Issue	 	 	49	 
	Section 10.08.
	 	Adjustment for Other Distributions	 	 	50	 
	Section 10.09.
	 	Adjustment for Cash Dividends	 	 	51	 
	Section 10.10.
	 	Adjustment for Tender Offer	 	 	52	 
	Section 10.11.
	 	Provisions Governing Adjustment to Conversion Rate	 	 	53	 
	Section 10.12.
	 	Disposition Events	 	 	54	 
	Section 10.13.
	 	Adjustment to Conversion Rate Upon Change in Control Transactions	 	 	56	 
	Section 10.14.
	 	When Adjustment May Be Deferred	 	 	57	 
	Section 10.15.
	 	When No Adjustment Required	 	 	57	 
	Section 10.16.
	 	Notice of Adjustment	 	 	58	 
	Section 10.17.
	 	Notice of Certain Transactions	 	 	58	 
	Section 10.18.
	 	Right Of Holders To Convert	 	 	59	 
	Section 10.19.
	 	Company Determination Final	 	 	59	 
	Section 10.20.
	 	Trustee’s Adjustment Disclaimer	 	 	59	 
	Section 10.21.
	 	Simultaneous Adjustments	 	 	59	 
	Section 10.22.
	 	Successive Adjustments	 	 	60	 
	Section 10.23.
	 	Rights Issued in Respect of Common Stock Issued Upon Conversion	 	 	60	 
	Section 10.24.
	 	Withholding Taxes for Adjustments in Conversion Rate	 	 	61	 
	Section 10.25.
	 	Exchange in Lieu of Conversion	 	 	61	 

iii

 

	 	 	 	 	 	 	 
	 
	 	ARTICLE 11	 	 	 	 
	 
	 	Payment Of Interest	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01.
	 	Interest Payments	 	 	62	 
	Section 11.02.
	 	Defaulted Interest	 	 	62	 
	Section 11.03.
	 	Interest Rights Preserved	 	 	63	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 12	 	 	 	 
	 
	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01.
	 	Trust Indenture Act of 1939	 	 	63	 
	Section 12.02.
	 	Noteholder Communications; Noteholder Actions	 	 	63	 
	Section 12.03.
	 	Notices	 	 	64	 
	Section 12.04.
	 	Communication by Holders with Other Holders	 	 	65	 
	Section 12.05.
	 	Certificate and Opinion as to Conditions Precedent	 	 	66	 
	Section 12.06.
	 	Statements Required in Certificate or Opinion	 	 	66	 
	Section 12.07.
	 	Legal Holiday	 	 	66	 
	Section 12.08.
	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar	 	 	66	 
	Section 12.09.
	 	Governing Law	 	 	66	 
	Section 12.10.
	 	No Adverse Interpretation of Other Agreements	 	 	66	 
	Section 12.11.
	 	Successors	 	 	67	 
	Section 12.12.
	 	Duplicate Originals	 	 	67	 
	Section 12.13.
	 	Separability	 	 	67	 
	Section 12.14.
	 	Table of Contents and Headings	 	 	67	 
	Section 12.15.
	 	No Liability of Directors, Officers, Employees, Incorporators, Members and Stockholders	 	 	67	 

	 	 	 
	EXHIBITS
	 	 
	EXHIBIT A

	 	Form of Note
	EXHIBIT B-1

	 	Restricted Note Legend
	EXHIBIT B-2

	 	Restricted Common Stock Legend
	EXHIBIT C

	 	DTC Legend

iv

 

     INDENTURE, dated as of April 18, 2006, between Medtronic, Inc., a Minnesota
corporation, as the “Company” and Wells Fargo Bank, N.A., a national banking association, as
Trustee.

RECITALS

     The Company has duly authorized the execution and delivery of the Indenture to provide for the
initial issuance of $2,000,000,000 aggregate principal amount of the Company’s 1.50% Convertible
Senior Notes Due 2011 (the “Initial Notes,” and together with the “Additional Notes,” the “Notes”).
All things necessary to make the Indenture a valid agreement of the Company, in accordance with
its terms, have been done, and the Company has done all things necessary to make the Notes, when
executed by the Company and authenticated and delivered by the Trustee and duly issued by the
Company, the valid obligations of the Company as hereinafter provided.

     This Indenture is subject to, and will be governed by, the provisions of the Trust Indenture
Act that are required to be a part of and govern indentures qualified under the Trust Indenture
Act.

THIS INDENTURE WITNESSETH

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
the parties hereto covenant and agree, for the equal and proportionate benefit of all Holders, as
follows:

ARTICLE 1

Definitions And Incorporation By Reference

     Section 1.01. Definitions.

     “Additional Interest” means additional interest owed to the Holders pursuant to the
Registration Rights Agreement.

     “Additional Notes” means the $200,000,000 aggregate principal amount of Notes issued under
this Indenture as a result of the Initial Purchasers exercise of their over-allotment option,
having the same terms as the Initial Notes.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”) with respect to any Person, means
the possession, directly

 

 

or indirectly, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of Voting Securities, by contract or otherwise.

     “Agent” means any Registrar, Paying Agent or Conversion Agent.

     “Agent Member” means a member of, or a participant in, the Depositary.

     “Applicable Conversion Rate” means the Conversion Rate on any Trading Day.

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Note, the rules and procedures of the Depositary, in each case to
the extent applicable to such transfer or exchange.

     “Bankruptcy Default” has the meaning assigned to such term in Section 6.01.

     “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any
similar federal or state law for the relief of debtors.

     “Board of Directors” means the board of directors or comparable governing body of the Company,
or any committee thereof duly authorized to act on its behalf.

     “Board Resolution” means a resolution duly adopted by the Board of Directors which is
certified by the Secretary or an Assistant Secretary of the Company and remains in full force and
effect as of the date of its certification.

     “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in New York City are authorized or obligated to close.

     “Capital Stock” means, with respect to any Person, any and all shares of stock of a
corporation, partnership interests or other equivalent interests (however designated, whether
voting or non-voting) in such Person’s equity, entitling the holder to receive a share of the
profits and losses, and a distribution of assets, after liabilities, of such Person.

     “Cash” means such coin or currency of the United States as at any time of payment is legal
tender for the payment of public and private debts.

     “Certificated Note” means a Note in registered individual form without interest coupons.

     “Close of Business” means 5:00 p.m. (New York City time).

2

 

     “Closing Price” of the Common Stock on any date means the closing per share sale price (or, if
no closing sale price is reported, the average of the bid and ask prices or, if more than one in
either case, the average of the average bid and average ask prices) on such date as reported in
composite transactions for the principal United States securities exchange on which the Common
Stock is traded or, if the Common Stock is not listed on a United States national or regional
securities exchange, (i) as reported by the National Association of Securities Dealers Automated
Quotation System or by the National Quotation Bureau Incorporated, or (ii) if such bid and ask
prices are not reported by the National Association of Securities Dealers Automated Quotation
System or by the National Quotation Bureau Incorporated, in a manner to be determined by the
Company on the basis of such quotation as the Company considers appropriate in its sole and
absolute discretion.

     “Common Stock” means the common stock of the Company, $0.10 par value, as it exists on the
date of this Indenture and any shares of any class or classes of Capital Stock of the Company
resulting from any reclassification or reclassifications thereof and which have no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject to redemption by
the Company; provided, however, that if at any time there shall be more than one such resulting
class, the shares of each such class then so issuable on conversion of Notes shall be substantially
in the proportion which the total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such classes resulting from all such
reclassifications.

     “Company” means the party named as such in the first paragraph of the Indenture or any
successor obligor under the Indenture and the Notes pursuant to Section 5.01.

     “Conversion Date” means the date on which the Holder of the Note has complied with all
requirements under this Indenture to convert such Note.

     “Conversion Price” per share of Common Stock as of any day means the result obtained by
dividing $1,000 by the Conversion Rate on such day.

     “Conversion Rate” means 17.8113 shares of Common Stock per $1,000 principal amount of Notes,
subject to adjustment pursuant to Article 10.

     “Conversion Reference Period” means (a) for Notes that are converted during the period
beginning on the 30th day prior to the Maturity Date, the thirty consecutive Trading Days beginning
on the third Trading Day following the Maturity Date and (b) in all other instances, the thirty
consecutive Trading Days beginning on the third Trading Day following the Conversion Date.

3

 

     “Conversion Value” means, per $1,000 principal amount of Notes, the amount equal to the
average of the products for each Trading Day of the Conversion Reference Period of (a) the
Applicable Conversion Rate for such day multiplied by (b) the average of the Volume Weighted
Average Price per share of the Common Stock on such day.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee is principally administered, which at the date of the Indenture is located at Wells
Fargo Bank, N.A., Sixth and Marquette, MAC N9303-110, Minneapolis, MN 55479.

     “Current Market Price” of Common Stock on any day means the average of the Closing Prices per
share of Common Stock for each of the five consecutive Trading Days ending on the earlier of the
day in question and the day before the Ex-Dividend Date with respect to the issuance or
distribution requiring such computation.

     “Daily Share Amounts” means, for each Trading Day of the Conversion Reference Period and each
$1,000 principal amount of Notes surrendered for conversion, a number of shares of Common Stock
(but in no event less than zero) determined by the following formula:

	 	 	 	 	 	 	 
	(Volume
Weighted Average
Price per share of
Common Stock for
such Trading Day

	 	x
	 	Conversion Rate in
effect on the
Trading Day)
	 	- $1000
	 
	Volume Weighted Average Price per share of Common Stock for such Trading Day x 30

     “Debt” means, with respect to any Person, without duplication,

     (1) all indebtedness of such Person for borrowed money (other than non-recourse
obligations);

     (2) all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments.

     “Default” means any event that is, or after notice or passage of time or both would be, an
Event of Default.

     “Depositary” means DTC or the nominee thereof, or any successor thereto.

     “Dividend Threshold Amount” means $0.09625 per quarter, appropriately adjusted from time to
time to take into account the occurrence, on or before the date of determination, of any event that
would require an adjustment to the Conversion Rate, as set forth in Section 10.09, and to account
for any change in the frequency or timing of payment of the Company’s regular dividend.

4

 

     “DTC” means The Depository Trust Company, a New York corporation, and its successors.

     “DTC Legend” means the legend set forth in Exhibit C.

     “Event of Default” has the meaning assigned to such term in Section 6.01.

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

     “Ex-Dividend Date” means, with respect to any issuance or distribution, the first date on
which the shares of Common Stock trade on the applicable exchange or in the applicable market,
regular way, without the right to receive such issuance or distribution.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time.

     “Global Note” means a Note in registered global form without interest coupons.

     “Holder” or “Noteholder” means the registered holder of any Note.

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

     “Initial Notes” means the Notes issued on the Issue Date and any Notes issued in replacement
thereof.

     “Initial Purchasers” means Banc of America Securities LLC, Morgan Stanley & Co. Incorporated,
Deutsche Bank Securities Inc., Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Citigroup Global Markets Inc., UBS Securities LLC, ABN AMRO Rothschild LLC,
Mitsubishi UFJ Securities International plc, Mizuho International plc, U.S. Bancorp Investments,
Inc., Wachovia Capital Markets, LLC and Wells Fargo Securities, LLC.

     “interest”, in respect of the Notes, unless the context otherwise requires, refers to interest
and Additional Interest, if any.

     “Interest Payment Date” means each April 15 and October 15 of each year, commencing October
15, 2006.

     “Issue Date” means the date on which the Initial Notes are originally issued under this
Indenture.

5

 

     “Market Disruption Event” means the occurrence or existence for more than one half hour period
in the aggregate on any scheduled Trading Day for the Common Stock of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted by the New York
Stock Exchange or otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock, and such suspension or limitation occurs or exists at any time before
10:00 a.m. (New York City time) on such day.

     “Maturity Date” means April 15, 2011.

     “Notes” has the meaning assigned to such term in the Recitals.

     “Officer” means the chairman of the Board of Directors, the president or chief executive
officer, any vice president, the chief financial officer, the treasurer or any assistant treasurer,
or the secretary or any assistant secretary, of the Company.

     “Officers’ Certificate” means a certificate signed in the name of the Company (i) by the
chairman of the Board of Directors, the president or chief executive officer or a vice president
and (ii) by the chief financial officer, the treasurer or any assistant treasurer or the secretary
or any assistant secretary.

     “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an employee
of or counsel to the Company, satisfactory to the Trustee.

     “Paying Agent” refers to a Person engaged to perform the obligations of the Trustee in respect
of payments made or funds held hereunder in respect of the Notes.

     “Person” means an individual, a corporation, a partnership, a limited liability company, an
association, a trust or any other entity, including a government or political subdivision or an
agency or instrumentality thereof.

     “principal” of any Debt (including the Notes) means the principal amount of such Debt (or if
such Debt was issued with original issue discount, the face amount of such Debt less the remaining
unamortized portion of the original issue discount of such Debt), together with, unless the context
otherwise indicates, any premium then payable on such Debt.

     “Register” has the meaning assigned to such term in Section 2.03.

     “Registrar” means a Person engaged to maintain the Register.

     “Registration Rights Agreement” means the Registration Rights Agreement dated as of April 18,
2006, among the Company, Banc of America Securities LLC and Morgan Stanley & Co. Incorporated with
respect to the Notes.

6

 

     “Regular Record Date” for the interest payable on any Interest Payment Date means the April 1
or October 1 (whether or not a Trading Day) next preceding such Interest Payment Date.

     “Resale Restriction Termination Date” means, as to any Note, the later of April 18, 2008 and
the date that is two years after the last date on which the Company or any Affiliate of the Company
was the owner of such Note.

     “Restricted Global Note” means a Global Note that bears the Restricted Note Legend
representing Notes issued and sold pursuant to Rule 144A.

     “Restricted Certificated Note” means a Certificated Note that bears the Restricted Note
Legend.

     “Restricted Common Stock Legend” means the legend set forth in Exhibit B-2.

     “Restricted Note Legend” means the legend set forth in Exhibit B-1.

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

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

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the Commission thereunder.

     “Significant Subsidiary” means, in respect of any Person, a Subsidiary of such Person that
would constitute a “significant subsidiary” as such term is defined under Rule 1-02 of Regulation
S-X under the Securities Act and the Exchange Act.

     “Stated Maturity” means (i) with respect to the Notes, April 15, 2011, or (ii) with respect to
any scheduled payment of interest on the Notes, the date specified as the fixed date on which such
interest payment is due and payable as set forth in this Indenture and the Notes, not including any
contingent obligation to repay, redeem or repurchase prior to the regularly scheduled date for
payment.

     “Subsidiary” means with respect to any Person, any corporation, association or other business
entity of which more than 50% of the outstanding Voting Stock is owned, directly or indirectly, by,
or, in the case of a partnership, the sole general partner or the managing partner or the only
general partners of which are, such Person and one or more Subsidiaries of such Person (or a
combination thereof). Unless otherwise specified, “Subsidiary” means a Subsidiary of the Company.

7

 

     “Trading Day” means any day on which (i) there is no Market Disruption Event and (ii) the New
York Stock Exchange or, if the Common Stock is not
listed on the New York Stock Exchange, the principal national securities exchange on which the
Common Stock is listed, is open for trading or, if the Common Stock is not so listed, admitted for
trading or quoted, any Business Day. A Trading Day only includes those days that have a scheduled
closing time of 4:00 p.m. (New York City time) or the then standard closing time for regular
trading on the relevant exchange or trading system.

     “Trustee” means the party named as such in the first paragraph of the Indenture or any
successor trustee under the Indenture pursuant to Article 7.

     “Trust Indenture Act” means the Trust Indenture Act of 1939.

     “Volume Weighted Average Price” on any Trading Day means the price per share of the Common
Stock as displayed on Bloomberg (or any successor service) page MDT <equity> VAP in respect
of the period from 9:30 a.m. to 4:00 p.m. (New York City time), on such Trading Day; or, if such
price is not available, the market value per share of the Common Stock on such day as determined by
a nationally recognized independent investment banking firm retained for this purpose by the
Company.

     “Voting Securities” means, with respect to any Person, securities of any class or kind
ordinarily having the power to vote for the election of directors, managers or other voting members
of the governing body of such Person.

     Section 1.02. Other Definitions.

	 	 	 
	Term	 	Defined in Section
	“Act”
	 	1.05
	“Aggregate Amount”
	 	10.10
	“beneficial owner”
	 	3.01(a)
	“Cash Percentage”
	 	10.01
	“Cash Percentage Notice”
	 	10.01
	“Change in Control”
	 	3.01(a)
	“Change in Control Effective Date”
	 	10.13(b)
	“Change in Control Purchase Date”
	 	3.01(a)
	“Change in Control Purchase Notice”
	 	3.01(c)
	“Change in Control Purchase Price”
	 	3.01(a)
	“Company Order”
	 	2.02
	“Conversion Agent”
	 	2.03
	“Conversion Trigger Price”
	 	Note
	“Defaulted Interest”
	 	11.02
	“Distributed Assets”
	 	10.08(a)
	“Expiration Date”
	 	10.10
	“Expiration Time”
	 	10.10

8

 

	 	 	 
	Term	 	Defined in Section
	“Initial Purchasers”
	 	2.01
	“Legal Holiday”
	 	12.07
	“Make-Whole Shares”
	 	10.13(a)
	“Primary Registrar”
	 	2.03
	“Purchased Shares”
	 	10.10
	“QIB”
	 	2.01(b)
	“Reference Period”
	 	10.08(a)
	“Reference Property”
	 	10.12
	“Remaining Shares”
	 	10.01
	“Required Cash Amount”
	 	10.01
	“Restricted Securities”
	 	2.14
	“Rights”
	 	10.23
	“Shareholders Rights Plan”
	 	10.23
	“Special Record Date”
	 	Section 11.02
	“Spin-Off”
	 	10.08(b)
	“Stock Price”
	 	10.13(b)
	“Trigger Event”
	 	10.11

     Section 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the Trust Indenture Act, the provision is incorporated by reference in and
made a part of this Indenture. The following Trust Indenture Act terms used in this Indenture have
the following meanings:

     “Commission” means the Securities and Exchange Commission.

     “indenture securities” means the Notes.

     “indenture security holder” means a Noteholder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company.

     All other Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or defined by Securities
Exchange Commission rule have the meanings assigned to them by such definitions.

9

 

     Section 1.04. Rules of Construction. Unless the context otherwise requires or except as
otherwise expressly provided,

     (a) a term has the meaning assigned to it;

     (b) an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

     (c) “herein,” “hereof” and other words of similar import refer to the Indenture as a whole and
not to any particular Section, Article or other subdivision;

     (d) all references to Sections or Articles or Exhibits refer to Sections or Articles or
Exhibits of or to the Indenture unless otherwise indicated;

     (e) references to agreements or instruments, or to statutes or regulations, are to such
agreements or instruments, or statutes or regulations, as amended from time to time (or to
successor statutes and regulations);

     (f) in the event that a transaction meets the criteria of more than one category of permitted
transactions or listed exceptions the Company may classify such transaction as it, in its sole
discretion, determines;

     (g) “or” is not exclusive;

     (h) “including” means including, without limitation; and

     (i) words in the singular include the plural, and words in the plural include the singular.

     Section 1.05. Acts of Holders. Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments (which may take the form of an electronic
writing or messaging or otherwise be in accordance with customary procedures of the Depositary or
the Trustee) of substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing (which may be in electronic form); and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of Holders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent (either of which may be in electronic form)
shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

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ARTICLE 2

The Notes

     Section 2.01. Form, Dating and Denominations; Legends.

     (a) The Notes and the Trustee’s certificate of authentication will be substantially in the
form attached as Exhibit A. The terms and provisions contained in the form of the Note annexed as
Exhibit A constitute and are hereby expressly made a part of the Indenture. The Notes may have
notations, legends or endorsements required by law, rules of or agreements with national securities
exchanges to which the Company is subject, or usage. Each Note will be dated the date of its
authentication. The Notes will be issuable only in denominations of $1,000 in principal amount and
any integral multiple thereof.

     (b) Restricted Global Notes. All of the Notes are initially being offered and sold to
qualified institutional buyers as defined in Rule 144A (collectively, “QIBs” or individually, each
a “QIB”) in reliance on Rule 144A under the Securities Act and shall be issued initially in the
form of one or more Restricted Global Notes, which shall be deposited on behalf of the purchasers
of the Notes represented thereby with the Trustee, at its Corporate Trust Office, as custodian for
the Depositary, and registered in the name of its nominee, Cede & Co., duly executed by the Company
and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the
Restricted Global Notes may from time to time be increased or decreased by adjustments made on the
records of the Trustee as hereinafter provided, subject in each case to compliance with the
Applicable Procedures.

     (c) Global Notes in General. Each Global Note shall represent such of the outstanding Notes
as shall be specified therein and each shall provide that it shall represent the aggregate amount
of outstanding Notes from time to time endorsed thereon and that the aggregate amount of
outstanding Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, purchases or conversions of such Notes. Any adjustment of the
aggregate principal amount of a Global Note to reflect the amount of any increase or decrease in
the amount of outstanding Notes represented thereby shall be made by the Trustee in accordance with
instructions given by the Holder thereof as required by Section 2.06 and shall be made on the
records of the Trustee and the Depositary.

     Agent Members shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Depositary or under the Global Note, and the Depositary (including, for this
purpose, its nominee) may be treated by the Company, the Trustee and any agent of the Company or
the Trustee as the absolute owner and Holder of such Global Note for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall (A) prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any

11

 

written certification, proxy or other authorization furnished by the Depositary or (B) impair,
as between the Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of a Holder of any Note.

     (d) Book Entry Provisions. The Company shall execute and the Trustee shall, in accordance
with this Section 2.01(d), authenticate and deliver initially one or more Global Notes that (i)
shall be registered in the name of the Depositary, (ii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary’s instructions and (iii) shall bear a legend substantially
to the effect set forth in Exhibit C.

     Section 2.02. Execution And Authentication. An Officer shall sign the Notes for the Company
by manual or facsimile signature attested by the manual or facsimile signature of the Secretary or
an Assistant Secretary of the Company. Typographic and other minor errors or defects in any such
facsimile signature shall not affect the validity or enforceability of any Note which has been
authenticated and delivered by the Trustee.

     If an Officer whose signature is on a Note no longer holds that office at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

     A Note shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Note. The signature shall be conclusive evidence that the
Note has been authenticated under this Indenture.

     The Trustee shall authenticate and make available for delivery Notes for original issue in the
aggregate principal amount of $2,000,000,000 (or up to $2,200,000,000 to the extent the Initial
Purchasers exercise their over-allotment option) upon receipt of a written order or orders of the
Company signed by an Officer of the Company (a “Company Order”). The Company Order shall specify
the amount of Notes to be authenticated, shall provide that all such Notes will be represented by a
Global Note and the date on which each original issue of Notes is to be authenticated. The initial
aggregate principal amount of Notes outstanding at any time may not exceed $2,000,000,000 (or
$2,200,000,000 to the extent the Initial Purchasers exercise their over-allotment option) except as
provided in Section 2.07.

     The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent acceptable to the Company to authenticate Notes. An authenticating
agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent shall
have the same rights as an Agent to deal with the Company or an Affiliate of the Company.

     The Notes shall be issuable only in registered form without coupons and only in denominations
of $1,000 principal amount and any integral multiple thereof.

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     Section 2.03. Registrar, Paying Agent And Conversion Agent. The Company shall maintain one
or more offices or agencies where Notes may be presented for registration of transfer or for
exchange (each, a “Registrar”), one or more offices or agencies where Notes may be presented for
payment (each, a “Paying Agent”), one or more offices or agencies where Notes may be presented for
conversion (each, a “Conversion Agent”) and one or more offices or agencies where notices and
demands to or upon the Company in respect of the Notes and this Indenture may be served. The
Company will at all times maintain a Paying Agent, Conversion Agent, Registrar and an office or
agency where notices and demands to or upon the Company in respect of the Notes and this Indenture
may be served in the United States. One of the Registrars (the “Primary Registrar”) shall keep a
register of the Notes and of their transfer and exchange (the “Register”).

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall notify the Trustee of the name and address of any Agent not a party to
this Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or
agent for service of notices and demands in any place required by this Indenture, or fails to give
the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company
may act as Paying Agent (except for the purposes of Article 8).

     The Company hereby initially designates the Trustee as Paying Agent, Registrar, and Conversion
Agent, and each of the Corporate Trust Office of the Trustee and the office or agency of the
Trustee in the United States (located at Wells Fargo Bank, N.A., Sixth and Marquette, MAC
N9303-110, Minneapolis, MN 55479, Attention: Steven R. Gubrud), one such office or agency of the
Company for each of the aforesaid purposes.

     Section 2.04. Paying Agent To Hold Money In Trust. Prior to 10:00 a.m., New York City time,
on each date on which the principal amount of or interest, if any, on any Notes is due and payable,
the Company shall deposit with a Paying Agent a sum sufficient to pay such principal amount or
interest, if any, so becoming due. A Paying Agent shall hold in trust for the benefit of
Noteholders or the Trustee all money held by the Paying Agent for the payment of principal amount
of or interest, if any, on the Notes, and shall notify the Trustee of any default by the Company
(or any other obligor on the Notes) in making any such payment. If the Company or an Affiliate of
the Company acts as Paying Agent, it shall, before 10:00 a.m., New York City time, on each date on
which a payment of the principal amount of or interest on any Notes is due and payable, segregate

13

 

the money and hold it as a separate trust fund. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee, and the Trustee may at any time during the
continuance of any default, upon written request to a Paying Agent, require such Paying Agent to
pay forthwith to the Trustee all sums so held in trust by such Paying Agent. Upon doing so, the
Paying Agent (other than the Company) shall have no further liability for the money.

     Section 2.05. Noteholder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of
Noteholders. If the Trustee is not the Primary Registrar, the Company shall furnish to the Trustee
on or before each semiannual interest payment date, and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of Noteholders.

     Section 2.06. Transfer And Exchange. Subject to compliance with any applicable additional
requirements contained in Section 2.14, when a Note is presented to a Registrar with a request to
register a transfer thereof or to exchange such Note for an equal principal amount of Notes of
other authorized denominations, the Registrar shall register the transfer or make the exchange as
requested if its requirements for such transactions are met; provided, however, that every Note
presented or surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by an assignment form in the form included in Exhibit A, and in form satisfactory to
the Registrar duly executed by the Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of any Note for registration of
transfer or exchange at an office or agency maintained pursuant to Section 2.03, the Company shall
execute and the Trustee shall authenticate Notes of a like aggregate principal amount at the
Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or
the Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto, and provided, that this sentence shall not apply to any
exchange pursuant to Section 2.10, Section 3.04, Section 9.03(b) or Section 10.02(g) not involving
any transfer.

     All Notes issued upon any transfer or exchange of Notes shall be valid obligations of the
Company, evidencing the same debt and entitled to the same benefits under this Indenture, as the
Notes surrendered upon such transfer or exchange.

     Any Registrar appointed pursuant to Section 2.03 shall provide to the Trustee such information
as the Trustee may reasonably require in connection with the delivery by such Registrar of Notes
upon transfer or exchange of Notes.

14

 

     Each Holder of a Note agrees to indemnify the Company and the Trustee against any liability
that may result from the transfer, exchange or assignment of
such Holder’s Note in violation of any provision of this Indenture and/or applicable United
States federal or state securities law.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Note (including any transfers between or among Agent Members
or other beneficial owners of interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

     Section 2.07. Replacement Notes. If any mutilated Note is surrendered to the Company, a
Registrar or the Trustee, or the Company, a Registrar and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Note, and there is delivered to the Company,
the applicable Registrar and the Trustee such security or indemnity as will be required by them to
save each of them harmless, then, in the absence of notice to the Company, such Registrar or the
Trustee that such Note has been acquired by a protected purchaser, the Company shall execute, and
upon its written request the Trustee shall authenticate and deliver, in exchange for any such
mutilated Note or in lieu of any such destroyed, lost or stolen Note, a new Note of like tenor and
principal amount, bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Note has become or is about to become
due and payable, or is about to be purchased by the Company pursuant to Article 3, the Company in
its discretion may, instead of issuing a new Note, pay or purchase such Note, as the case may be.

     Upon the issuance of any new Notes under this Section 2.07, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the reasonable fees and expenses of
the Trustee or the Registrar) in connection therewith.

     Every new Note issued pursuant to this Section 2.07 in lieu of any mutilated, destroyed, lost
or stolen Note shall constitute an original additional contractual obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with
any and all other Notes duly issued hereunder.

     The provisions of this Section 2.07 are (to the extent lawful) exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Notes.

15

 

     Section 2.08. Outstanding Notes. Notes outstanding at any time are all Notes authenticated
by the Trustee, except for those canceled by it, those converted pursuant to Article 10, those
delivered to it for cancellation or surrendered for transfer or exchange and those described in
this Section 2.08 as not outstanding.

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

     If a Paying Agent holds at 10:00 a.m., New York City time, on the Maturity Date Cash
sufficient to pay the principal amount of the Notes payable on that date, then on and after the
Maturity Date, such Notes shall cease to be outstanding and the principal amount thereof shall
cease to bear interest.

     Subject to the restrictions contained in Section 2.09, a Note does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Note.

     Section 2.09. Treasury Notes. (a) In determining whether the Holders of the required
principal amount of Notes have concurred in any notice, direction, waiver or consent, Notes owned
by the Company or any other obligor on the Notes or by any Affiliate of the Company or of such
other obligor shall be disregarded, except that, for purposes of determining whether the Trustee
shall be protected in relying on any such notice, direction, waiver or consent, only Notes which a
Trust Officer of the Trustee actually knows are so owned shall be so disregarded. Notes so owned
which have been pledged in good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to the Notes and that the
pledgee is not the Company or any other obligor on the Notes or any Affiliate of the Company or of
such other obligor.

     (b) Any Notes or shares of Common Stock issued upon the conversion of Notes that are purchased
or owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate
unless registered under the Securities Act or resold pursuant to an exemption from the registration
requirements of the Securities Act in a transaction that results in such Notes or shares of Common
Stock, as the case may be, no longer being “restricted securities” (as defined under Rule 144).

     Section 2.10. Temporary Notes. Until definitive Notes are ready for delivery, the Company
may prepare and execute, and, upon receipt of a Company Order, the Trustee shall authenticate and
deliver, temporary Notes. Temporary Notes shall be substantially in the form of definitive Notes
but may have variations that the Company with the consent of the Trustee considers appropriate for
temporary Notes. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate and deliver definitive Notes in exchange for temporary
Notes.

16

 

     Section 2.11. Cancellation. The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar, the Paying Agent and the Conversion Agent shall forward to the
Trustee or its agent any Notes surrendered to them for transfer, exchange, payment or conversion.
The Trustee and no one else shall cancel, in accordance with its standard procedures, all Notes
surrendered for transfer, exchange, payment, conversion or cancellation and upon written request of
the Company shall deliver the canceled Notes to the Company.

     Section 2.12. CUSIP Numbers. The Company in issuing the Notes may use one or more “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
purchase as a convenience to Holders; provided, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or as
contained in any notice of a purchase and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such purchase shall not be affected by any
defect in or omission of such numbers. The Company will promptly notify the Trustee of any change
in the “CUSIP” numbers.

     Section 2.13. Book-entry Provisions For Global Notes. (a) Transfers of Global Notes shall
be limited to transfers in whole, but not in part, to the Depositary, its successors or their
respective nominees. In addition, Certificated Notes shall be transferred to all beneficial
owners, as identified by the Depositary, in exchange for their beneficial interests in Global Notes
only if (i) the Depositary notifies the Company that the Depositary is unwilling or unable to
continue as depositary for any Global Note (or the Depositary ceases to be a “clearing agency”
registered under Section 17A of the Exchange Act) and a successor Depositary is not appointed by
the Company within ninety (90) days of such notice or cessation or (ii) an Event of Default has
occurred and is continuing and the Registrar has received a written request from the Depositary to
issue Certificated Notes.

     (b) In connection with the transfer of a Global Note in its entirety to beneficial owners
pursuant to Section 2.13 Section 2.13, such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall upon written
instructions from the Company authenticate and deliver, to each beneficial owner identified by the
Depositary in exchange for its beneficial interest in such Global Note, an equal aggregate
principal amount of Certificated Notes of authorized denominations.

     (c) Any Certificated Note constituting a Restricted Certificated Note delivered in exchange
for an interest in a Global Note pursuant to Section 2.13 Section 2.13 shall, except as otherwise
provided by Section 2.14, bear the Restricted Note Legend.

17

 

     (d) The Holder of any Global Note may grant proxies and otherwise authorize any Person to take
any action that a Holder is entitled to take under this Indenture or the Notes.

     Section 2.14. Special Transfer Provisions. (a) Notwithstanding any other provisions of this
Indenture, but except as provided in Section 2.14(b), a Global Note may not be transferred except
as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

     (b) Every Note that bears or is required under this Section 2.14(b) to bear the Restricted
Note Legend, and any Common Stock that bears or is required under this Section 2.14(b) to bear the
Restricted Common Stock Legend (collectively, the “Restricted Securities”) shall be subject to the
restrictions on transfer set forth in the Restricted Note Legend or the Restricted Common Stock
Legend, as the case may be, unless such restrictions on transfer shall be waived by written consent
of the Company, and the holder of each such Restricted Security, by such Notes holder’s acceptance
thereof, agrees to be bound by all such restrictions on transfer. As used in this Section 2.14(b),
the term “transfer” encompasses any sale, pledge, loan, transfer or other disposition whatsoever of
any Restricted Security or any interest therein.

          Until the Resale Restriction Termination Date, any certificate evidencing such Note (and all
securities issued in exchange therefor or substitution thereof), and any stock certificate
representing shares of Common Stock issued upon conversion of any Note, shall bear a Restricted
Note Legend or a Restricted Common Stock Legend, as the case may be, unless such Note or such
shares of Common Stock have been sold pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be effective at the time of such
transfer) or pursuant to Rule 144 or any similar provision then in force, or such shares of Common
Stock have been issued upon conversion of Notes that have been transferred pursuant to a
registration statement that has been declared effective under the Securities Act or pursuant to
Rule 144 under the Securities Act, or unless otherwise agreed by the Company in writing, with
written notice thereof to the Trustee.

          Any Note (or security issued in exchange or substitution therefor) as to which such
restrictions on transfer shall have expired in accordance with their terms or as to conditions for
removal of the Restricted Note Legend set forth therein have been satisfied may, upon surrender of
such Note for exchange to the Registrar in accordance with the provisions of Section 2.06, be
exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not
bear the Restricted Note Legend. If the Restricted Note surrendered for exchange is represented by
a Global Note bearing the Restricted Note Legend, the principal amount of the legended Global Note
shall be reduced by the appropriate principal

18

 

amount and the principal amount of a Global Note without the Restricted Note Legend shall be
increased by an equal principal amount. If a Global Note without the Restricted Note Legend is not
then outstanding, the Company shall execute and the Trustee shall authenticate and deliver an
unlegended Global Note to the Depositary.

     Any such shares of Common Stock as to which such restrictions on transfer shall have expired
in accordance with their terms or as to which the conditions for removal of the Restricted Common
Stock Legend set forth therein have been satisfied may, upon surrender of the certificates
representing such shares of Common Stock for exchange in accordance with the procedures of the
transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like
number of shares of Common Stock, which shall not bear the Restricted Common Stock Legend required
by this Section 2.14.

     (c) By its acceptance of any Note bearing the Restricted Note Legend, each Holder of such a
Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the
Restricted Note Legend and agrees that it will transfer such Note only as provided in this
Indenture and as permitted by applicable law.

     (d) The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.13 or this Section 2.14. The Company shall have the right to
inspect and make copies of all such letters, notices or other written communications at any
reasonable time during normal hours of operation of the Registrar upon the giving of reasonable
notice to the Registrar.

ARTICLE 3

Purchases

     Section 3.01. Redemption At The Option Of The Holder.

     (a) If there shall have occurred a Change in Control, each Holder shall have the right, at
such Holder’s option, to require the Company to purchase for Cash all or any portion of such
Holder’s Notes in integral multiples of $1,000 principal amount on a date selected by the Company
(the “Change in Control Purchase Date”), which Change in Control Purchase Date shall be no later
than thirty-five (35) Trading Days after the occurrence of such Change in Control, and no earlier
than twenty (20) Trading Days, after the date that the Company mails the notice contemplated by
Section 3.01(b)(i), at a purchase price equal to 100% of the principal amount of the Notes to be
purchased, plus accrued and unpaid interest to, but excluding, the Change in Control Purchase Date
(the “Change in Control Purchase Price”), subject to satisfaction by or on behalf of the Holder of
the requirements set forth in Section 3.01(c); provided that if the Change in

19

 

Control Purchase Date is after a Regular Record Date and on or prior to the Interest Payment
Date to which it relates, interest accrued to the Interest Payment Date will be paid to Holders of
the Notes as of the preceding Regular Record Date.

     A “Change in Control” shall be deemed to have occurred at such time as either of the following
events shall occur:

     (i) any person or group, other than the Company, its Subsidiaries or any employee
benefits plan of the Company or its Subsidiaries, files a Schedule 13D or Schedule TO (or
any successor schedule, form or report) pursuant to the Exchange Act, disclosing that such
person has become the beneficial owner of shares with a majority of the total voting power
of the Company’s outstanding Voting Stock; unless such beneficial ownership (a) arises
solely as a result of a revocable proxy delivered in response to a proxy or consent
solicitation made pursuant to the applicable rules and regulations under the Exchange Act,
and (b) is not also then reportable on Schedule 13D (or any successor schedule) under the
Exchange Act; or

     (ii) the Company consolidates with or merges with or into another person (other than
a Subsidiary of the Company), or sells, conveys, transfers or leases all or substantially
all of its properties and assets to any person (other than a Subsidiary of the Company) or
any person (other than a Subsidiary of the Company) consolidates with or merges with or
into the Company, and the outstanding Voting Securities of the Company are reclassified
into, converted for or converted into the right to receive any other property or security,
provided that none of these circumstances will be a Change in Control if persons that
beneficially own the Voting Securities of the Company immediately prior to the transaction
own, directly or indirectly, shares with a majority of the total voting power of all
outstanding Voting Securities of the surviving or transferee person immediately after the
transaction in substantially the same proportion as their ownership of the Company’s
Voting Securities immediately prior to the transaction.

     For purposes of defining a Change in Control:

     (x) the term “person” and the term “group” have the meanings given by
Section 13(d) and 14(d) of the Exchange Act or any successor provisions;

     (y) the term “group” includes any group acting for the purpose of acquiring,
holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act or any successor provision; and

20

 

     (z) the term “beneficial owner” is determined in accordance with Rules 13d-3
and 13d-5 under the Exchange Act or any successor provisions, except that a
person will be deemed to have beneficial ownership of all shares that person has
the right to acquire irrespective of whether that right is exercisable
immediately or only after the passage of time.

     Notwithstanding the foregoing, it will not constitute a Change in Control if at least 90% of
the consideration for the Common Stock (excluding Cash payments for fractional shares and Cash
payments made in respect of dissenter’s appraisal rights and Cash payment of the Required Cash
Amount, if any) in the transaction or transactions constituting the Change in Control consists of
common stock traded on a United States national securities exchange or quoted on The Nasdaq
National Market, or which will be so traded or quoted when exchanged in connection with the Change
in Control, and as a result of such transaction or transactions the Notes become convertible solely
into such common stock.

     (b) As promptly as practicable following the date the Company publicly announces the Change in
Control transaction, but in no event less than 15 days prior to the anticipated effective date of a
Change in Control, the Company shall mail a written notice of Change in Control by first-class mail
to the Trustee and to each Holder at their addresses shown in the register of the Registrar (and to
beneficial owners as required by applicable law). The notice shall include a form of Change in
Control Purchase Notice to be completed by the Noteholder and shall state:

     (i) briefly, the events causing a Change in Control;

     (ii) the anticipated effective date of such Change in Control;

     (iii) the date by which the Change in Control Purchase Notice pursuant to this
Section 3.01 must be given;

     (iv) the Change in Control Purchase Price;

     (v) the Change in Control Purchase Date;

     (vi) the name and address of the Paying Agent and the Conversion Agent;

     (vii) the then-current Conversion Rate and any adjustments thereto;

     (viii) that Notes with respect to which a Change in Control Purchase Notice has been
given by the Holder may be converted pursuant to Article 10 hereof only if the Change in
Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

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     (ix) briefly, the procedures a Holder must follow to exercise rights under this
Section 3.01;

     (x) that Notes must be surrendered to the Paying Agent to collect payment of the
Change in Control Purchase Price;

     (xi) that the Change in Control Purchase Price for any Note as to which a Change in
Control Purchase Notice has been duly given and not withdrawn, together with any accrued
interest payable with respect thereto, will be paid on or prior to the third Trading Day
following the later of the Change in Control Purchase Date and the time of surrender of
such Note;

     (xii) briefly, the conversion rights of the Notes;

     (xiii) the procedures for withdrawing a Change in Control Purchase Notice;

     (xiv) that, unless the Company defaults in making payment of such Change in Control
Purchase Price and interest due, if any, interest on Notes surrendered for purchase will
cease to accrue on and after the Change in Control Purchase Date; and

     (xv) the CUSIP number of the Notes.

     (c) A Holder may exercise its rights specified in Section 3.01(a) by delivery of a written
notice of purchase (a “Change in Control Purchase Notice”) to the Paying Agent at any time prior to
the Close of Business on the Change in Control Purchase Date, stating:

     (i) the certificate number of the Note which the Holder will deliver to be purchased,
if Certificated Notes have been issued, or notice compliant with the relevant DTC
procedures if the Notes are not certificated;

     (ii) the portion of the principal amount of the Note which the Holder will deliver to
be purchased, which portion must be $1,000 or an integral multiple thereof; and

     (iii) that such Note shall be purchased pursuant to the terms and conditions
specified in this Article 3.

     The delivery of such Note to the Paying Agent prior to, on or after the Change in Control
Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent shall
be a condition to the receipt by the Holder of the Change in Control Purchase Price therefor;
provided, however, that such Change in Control Purchase Price shall be so paid pursuant to this
Section 3.01
only if the Note so delivered to the Paying Agent shall conform in all respects to the
description thereof set forth in the related Change in Control Purchase Notice.

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     The Company shall purchase from the Holder thereof, pursuant to this Section 3.01, a portion
of a Note if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase
of such portion of such Note.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 3.01 shall
be consummated by the delivery of the consideration to be received by the Holder (together with
accrued and unpaid interest) on or prior to the third Trading Day following the later of the Change
in Control Purchase Date and the time of delivery of the Note to the Paying Agent in accordance
with this Section 3.01.

     Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Change in Control Purchase Notice contemplated by this Section 3.01(c) shall have the right to
withdraw such Change in Control Purchase Notice at any time prior to the Close of Business on the
Change in Control Purchase Date by delivery of a written notice of withdrawal to the Paying Agent
in accordance with Section 3.02.

     The Paying Agent shall promptly notify the Company of the receipt by it of any Change in
Control Purchase Notice or written withdrawal thereof.

     There shall be no purchase of any Notes pursuant to this Section 3.01 if there has occurred
(prior to, on or after, as the case may be, the giving, by the Holders of such Notes, of the
required Change in Control Purchase Notice) and is continuing an Event of Default (other than a
default in the payment of the Change in Control Purchase Price). The Paying Agent will promptly
return to the respective Holders thereof any Notes (x) with respect to which a Change in Control
Purchase Notice has been withdrawn in compliance with this Indenture, or (y) held by it during the
continuance of an Event of Default (other than a default in the payment of the Change in Control
Purchase Price) in which case, upon such return, the Change in Control Purchase Notice with respect
thereto shall be deemed to have been withdrawn.

     Section 3.02. Effect Of Change In Control Purchase Notice.

     (a) Upon receipt by the Paying Agent of the Change in Control Purchase Notice specified in
Section 3.01(c), the Holder of the Note in respect of which such Change in Control Purchase Notice
was given shall (unless such Change in Control Purchase Notice is withdrawn as specified in the
following two paragraphs) thereafter be entitled to receive solely the Change in Control Purchase
Price and any accrued and unpaid interest, with respect to such Note. Such Change in Control
Purchase Price and interest shall be paid to such Holder,

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subject to receipt of funds by the Paying Agent, on or prior to the third Business Day
following the later of (x) the Change in Control Purchase Date, with respect to such Note (provided
the conditions in Section 3.01(c) have been satisfied) and (y) the time of delivery of such Note to
the Paying Agent by the Holder thereof in the manner required by Section 3.01(c). Notes in respect
of which a Change in Control Purchase Notice has been given by the Holder thereof may not be
converted pursuant to Article 10 hereof on or after the date of the delivery of such Change in
Control Purchase Notice unless such Change in Control Purchase Notice has first been validly
withdrawn as specified in the following two paragraphs.

     (b) A Change in Control Purchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the Change in Control
Purchase Notice at any time prior to the Close of Business on the Change in Control Purchase Date
specifying:

     (i) the certificate number of the Note which the Holder will deliver to be purchased,
if Certificated Notes have been issued, or notice compliant with the relevant DTC
procedures, if the Notes are not certificated,

     (ii) the principal amount of the Note with respect to which such notice of withdrawal
is being submitted, and

     (iii) the principal amount, if any, of such Note which remains subject to the
original Change in Control Purchase Notice and which has been or will be delivered for
purchase by the Company.

     A written notice of withdrawal of a Change in Control Purchase Notice may be in the form set
forth in the preceding paragraph.

     Section 3.03. Deposit Of Change In Control Purchase Price. Prior to 10:00 a.m. (New York
City time) on or prior to the third Business Day following the Change in Control Purchase Date, the
Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary
or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust
as provided in Section 2.04) an amount of money (in immediately available funds if deposited on
such Trading Day) sufficient to pay the aggregate Change in Control Purchase Price of all the Notes
or portions thereof which are to be purchased as of the Change in Control Purchase Date.

     Section 3.04. Notes Purchased In Part. Any Note which is to be purchased only in part shall
be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in

24

 

writing) and the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Note, without service charge, a new Note or Note, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion
of the principal amount of the Note so surrendered that is not purchased.

     Section 3.05. Covenant To Comply With Securities Laws Upon Repurchase Of Notes. When
complying with the provisions of Section 3.01 (provided, that such offer or purchase constitutes
an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used herein, includes any
successor provision thereto) under the Exchange Act at the time of such offer or purchase), and
subject to any exemptions available under applicable law, the Company shall:

     (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor provision) under the Exchange Act,
as applicable;

     (b) file the related Schedule TO (or any successor schedule, form or report) if required under
the Exchange Act, as applicable;

     (c) otherwise comply with all federal and state securities laws so as to permit the rights and
obligations under Section 3.01 to be exercised in the time and in the manner specified therein.

     To the extent that the provisions of any securities laws or regulations conflict with the
provisions of Section 3.01, the Company’s compliance with such laws and regulations shall not in
and of itself cause a breach of its obligations under Section 3.01.

ARTICLE 4

Covenants

     Section 4.01. Payment Of Notes. (a) The Company agrees to pay the principal of and interest
on the Notes on the dates and in the manner provided in the Notes and the Indenture. Not later
than 10:00 a.m. (New York City time) on the due date of any principal of or interest on any Notes,
or any purchase price of the Notes, the Company will deposit with the Trustee (or Paying Agent)
money in immediately available funds sufficient to pay such amounts, provided that if the Company
or any Affiliate of the Company is acting as Paying Agent, it will, on or before each due date,
segregate and hold in a separate trust fund for the benefit of the Holders a sum of money
sufficient to pay such amounts until paid to such Holders or otherwise disposed of as provided in
the Indenture. In each case the Company will promptly notify the Trustee of its compliance with
this paragraph.

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     (b) An installment of principal or interest will be considered paid on the date due if the
Trustee (or Paying Agent, other than the Company or any Affiliate
of the Company) holds on that date money designated for and sufficient to pay the installment.
If the Company or any Affiliate of the Company acts as Paying Agent, an installment of principal
or interest will be considered paid on the due date only if paid to the Holders.

     (c) The Company agrees to pay interest on overdue principal, and, to the extent lawful,
overdue installments of interest at the rate per annum specified in the Notes.

     (d) Payments in respect of the Notes represented by the Global Notes are to be made by wire
transfer of immediately available funds to the accounts specified by the Holders of the Global
Notes. With respect to Certificated Notes, the Company will make all payments by wire transfer of
immediately available funds to the accounts specified by the Holders thereof or, if no such account
is specified, by mailing a check to each Holder’s registered address.

     Section 4.02. Maintenance of Office or Agency. The Company will maintain in the United
States, an office or agency where Notes may be surrendered for registration of transfer or exchange
or for presentation for payment and where notices and demands to or upon the Company in respect of
the Notes and the Indenture may be served. The Company hereby initially designates the Corporate
Trust Office of the Trustee as such office of the Company. The Company will give prompt written
notice to the Trustee of the location, and any change in the location, of such office or agency.
If at any time the Company fails to maintain any such required office or agency or fails to furnish
the Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served to the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be surrendered or presented for any of such purposes and may from time to time
rescind such designations. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

     Section 4.03. Existence. The Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and the existence, rights and franchises
of the Company, provided that the Company is not required to preserve any such right or franchise
if the preservation thereof is no longer desirable in the conduct of the business of the Company;
and provided further that this Section does not prohibit any transaction otherwise permitted by
Section 5.01.

     Section 4.04. Rule 144A Information And Annual Reports. (a) At any time the Company is not
subject to Sections 13 or 15(d) of the Exchange Act, the Company shall, so long as any of the Notes
or any shares of Common Stock issuable upon conversion thereof shall, at such time, constitute
“restricted

26

 

securities” within the meaning of Rule 144(a)(3) under the Securities Act, promptly provide to
the Trustee and shall, upon written request, provide to any Noteholder, beneficial owner or
prospective purchaser of Notes or any shares of Common Stock issued upon conversion of any Notes,
the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act to
facilitate the resale of such Notes or shares of Common Stock pursuant to Rule 144A under the
Securities Act.

     (b) The Company shall deliver to the Trustee, such annual reports, information, documents and
other reports required to be filed with the Commission, copies of the Company’s annual reports
(which shall contain audited financial statements of the Company) and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the Commission may by
rules and regulations prescribe) that the Company is required to file with the Commission pursuant
to Section 13 or Section 15(d) of the Exchange Act; provided that any such information, documents
or reports required to be filed with the Commission shall be deemed delivered to the Trustee at the
same time the same is filed with the Commission. The Company shall be deemed to have complied with
the previous sentence to the extent that the Company shall have filed or furnished such
information, documents or reports to the SEC via EDGAR (or any successor electronic delivery
procedure). In the event the Company is at any time no longer subject to the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act, the Company shall continue to
provide the Trustee and, upon written request, to each Noteholder, annual and quarterly reports
containing substantially the same information as would have been required to be filed with the SEC
had the Company continued to have been subject to such reporting requirements. In such event, such
annual and quarterly reports shall be provided at substantially
similar times as the Company would have been required to
provide reports had it continued to have been subject to such reporting requirements.

     Section 4.05. Reports to Trustee. (a) The Company will deliver to the Trustee within 120
days after the end of each fiscal year a certificate from the principal executive, financial or
accounting officer of the Company stating that the officer has conducted or supervised a review of
the activities of the Company and its Subsidiaries and their performance under the Indenture and
that, based upon such review, the Company has fulfilled its obligations hereunder or, if there has
been a Default, specifying the Default and its nature and status.

     (b) The Company will deliver to the Trustee, as soon as possible and in any event within 30
days after the Company becomes aware or should reasonably become aware of the occurrence of a
Default, an Officers’ Certificate setting forth the details of the Default, and the action which
the Company proposes to take with respect thereto.

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     Section 4.06. Stay, Extension And Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force, which may affect
the covenants or the performance of this Indenture; and the Company (in each case, to the extent
that it may lawfully do so) hereby covenants that it will not, by resort to any such law to the
extent it would hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

     Section 4.07. Payment Of Additional Interest. If Additional Interest is payable by the
Company pursuant to the Registration Rights Agreement, the Company shall deliver to the Trustee a
certificate to that effect stating (i) the amount of such Additional Interest that is payable, (ii)
the reason why such Additional Interest is payable and (iii) the date on which such Additional
Interest is payable. Unless and until a Trust Officer of the Trustee receives such a certificate,
the Trustee may assume without inquiry that no such Additional Interest is payable. If the Company
has paid Additional Interest directly to the Persons entitled to it, the Company shall deliver to
the Trustee a certificate setting forth the particulars of such payment.

ARTICLE 5

Consolidation, Merger, Sale or Lease of Assets

     Section 5.01. Consolidation, Merger, Sale or Lease of Assets by the Company. (a) The
Company, without the consent of the Holders of any of the outstanding Notes, may

     (i) consolidate with or merge with or into any Person, or

     (ii) sell, convey, transfer, or otherwise dispose of or lease all or substantially
all of its assets as an entirety or substantially an entirety, in one transaction or a
series of related transactions, to any Person; provided that

     (A) either (x) the Company is the continuing Person or (y) the resulting,
surviving or transferee Person is a corporation, partnership, limited liability
company or trust organized and validly existing under the laws of the United
States of America, any State thereof or the District of Columbia and expressly
assumes by supplemental indenture all of the obligations of the Company under
the Indenture and the Notes and the Registration Rights Agreement;

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     (B) immediately after giving effect to the transaction, no Event of Default
and no Default has occurred and is continuing; and

     (C) the Company delivers to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that the consolidation, merger, transfer or
lease and the supplemental indenture (if any) comply with the Indenture.

     (b) Upon the consummation of any transaction effected in accordance with these provisions, if
the Company is not the continuing Person, the resulting, surviving or transferee Person will
succeed to, and be substituted for, and may exercise every right and power of, the Company under
the Indenture and the Notes with the same effect as if such successor Person had been named as the
Company in the Indenture. Upon such substitution, except in the case of a lease, unless the
successor is one or more of the Company’s Subsidiaries, the Company will be released from its
obligations under the Indenture and the Notes.

ARTICLE 6

Default and Remedies

     Section 6.01. Events of Default.  An “Event of Default” occurs with respect to
the Notes if:

     (a) the Company defaults in the payment of the principal of any Note, or any Change in Control
Purchase Price when the same becomes due and payable on the Maturity Date, on the Change in Control
Purchase Date, upon acceleration, or otherwise;

     (b) the Company defaults in the payment of interest (including any Additional Interest) on any
Note when the same becomes due and payable, and the default continues for a period of 30 days;

     (c) the Company fails to comply with any other covenant or agreement of the Company in the
Indenture or the Notes and the default or breach continues for a period of 60 consecutive days
after written notice to the Company by the Trustee or to the Company and the Trustee by the Holders
of 25% or more in aggregate principal amount of the Notes then outstanding;

     (d) the Company fails to make any payment by the end of any applicable grace period after
maturity of any Debt in an amount in excess of $100,000,000 and continuance of such failure, or
(ii) there is an acceleration of Debt in an amount in excess of $100,000,000 because of a default
with respect to such Debt without such Debt having been discharged or such acceleration having been
cured, waived, rescinded or annulled within a period of 30 days after written

29

 

notice to the Company by the Trustee or to the Company and the Trustee by the Holders of not
less than 25% in aggregate principal amount of the Notes then outstanding; provided, however, if
any such failure or acceleration referred to in (i) or (ii) above shall cease or be cured, waived,
rescinded or annulled, then the Event of Default by reason thereof shall be deemed not to have
occurred;

     (e) the Company or any Significant Subsidiary, pursuant to or under or within the meaning of
any Bankruptcy Law, (i) commences a voluntary case or proceeding; (ii) consents to the entry of an
order for relief against it in an involuntary case or proceeding or the commencement of any case
against it; (iii) consents to the appointment of any receiver, trustee, assignee, liquidator,
custodian or similar official of it or for any substantial part of its property; (iv) makes a
general assignment for the benefit of its creditors; (v) files a petition in bankruptcy or answer
or consent seeking reorganization or relief; or (vi) consents to the filing of such petition or the
appointment of or taking possession by any receiver, trustee, assignee, liquidator, custodian or
similar official; or

     (f) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(i) is for relief against the Company or any Significant Subsidiary in an involuntary case or
proceeding, or adjudicates the Company or any Significant Subsidiary insolvent or bankrupt; (ii)
appoints any receiver, trustee, assignee, liquidator, custodian or similar official of the Company
or any Significant Subsidiary or for any substantial part of its property; or (iii) orders the
winding up or liquidation of the Company or any Significant Subsidiary, and the order or decree
remains unstayed and in effect for 60 days (an event of default specified in clause (e) or (f) a
“Bankruptcy Default”).

     Section 6.02. Acceleration. (a) If an Event of Default, other than a Bankruptcy Default
with respect to the Company, occurs and is continuing under the Indenture, the Trustee or the
Holders of at least 25% in aggregate of the outstanding principal amount of the Notes, by written
notice to the Company (and to the Trustee if the notice is given by the Holders), may, and the
Trustee at the request of such Holders shall, declare the principal of and accrued interest on the
Notes to be immediately due and payable. Upon a declaration of acceleration, such principal and
interest will become immediately due and payable. If a Bankruptcy Default occurs with respect to
the Company, the principal of and accrued interest on the Notes then outstanding will become
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder.

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     (b) The Holders of a majority in principal amount of the outstanding Notes by written notice
to the Company and to the Trustee may waive all past defaults and rescind and annul a declaration
of acceleration with respect to such Notes and its consequences if

     (i) all existing Events of Default, other than the nonpayment of the principal of,
premium, if any, and interest on the Notes that have become due solely by the declaration
of acceleration, have been cured or waived, and

     (ii) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction.

     Section 6.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee
may pursue, in its own name or as trustee of an express trust, any available remedy by proceeding
at law or in equity to collect the payment of principal of and interest on the Notes or to enforce
the performance of any provision of the Notes or the Indenture. The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any of them in the
proceeding.

     Section 6.04. Waiver of Past Defaults. Except as otherwise provided in Sections 6.02, 6.07
and 9.02(b), the Holders of a majority in principal amount of the outstanding Notes may, by notice
to the Trustee, waive an existing Default and its consequences. Upon such waiver, the Default will
cease to exist, and any Event of Default arising therefrom will be deemed to have been cured, but
no such waiver will extend to any subsequent or other Default or impair any right consequent
thereon.

     Section 6.05. Control by Majority. The Holders of a majority in aggregate principal amount
of the outstanding Notes may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or the Indenture, that may
involve the Trustee in personal liability, or that the Trustee determines in good faith may be
unduly prejudicial to the rights of Holders of Notes not joining in the giving of such direction,
and may take any other action it deems proper that is not inconsistent with any such direction
received from Holders of Notes.

     Section 6.06. Limitation on Suits. A Holder may not institute any proceeding, judicial or
otherwise, with respect to the Indenture or the Notes, or for the appointment of a receiver or
trustee, or for any other remedy under the Indenture or the Notes, unless:

     (i) the Holder has previously given to the Trustee written notice of a continuing
Event of Default;

     (ii) Holders of at least 25% in aggregate principal amount of outstanding Notes have
made written request to the Trustee to institute proceedings in respect of the Event of
Default in its own name as Trustee under the Indenture;

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     (iii) Holders have offered to the Trustee indemnity reasonably satisfactory to the
Trustee against any costs, liabilities or expenses to be incurred in compliance with such
request;

     (iv) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (v) during such 60-day period, the Holders of a majority in aggregate principal
amount of the outstanding Notes have not given the Trustee a direction that is
inconsistent with such written request.

     Section 6.07. Rights of Holders to Receive Payment. Notwithstanding anything to the
contrary, the right of a Holder of a Note to receive payment of principal of or interest on its
Note on or after the Stated Maturities thereof, or to bring suit for the enforcement of any such
payment on or after such respective dates, may not be impaired or affected without the consent of
that Holder.

     Section 6.08. Collection Suit by Trustee. If an Event of Default in payment of principal or
interest specified in clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust for the whole amount of
principal and accrued interest remaining unpaid, together with interest on overdue principal and,
to the extent lawful, overdue installments of interest, in each case at the rate specified in the
Notes, and such further amount as is sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel and any other amounts due the Trustee hereunder.

     Section 6.09. Trustee May File Proofs of Claim. The Trustee may file proofs of claim and
other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee hereunder) and the Holders
allowed in any judicial proceedings relating to the Company or its creditors or property, and is
entitled and empowered to collect, receive and distribute any money, securities or other property
payable or deliverable upon conversion or exchange of the Notes or upon any such claims. Any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, if the Trustee consents to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agent and counsel, and any other amounts due the Trustee hereunder. Nothing in
the Indenture will be deemed to empower the Trustee to authorize or consent to, or accept or adopt
on behalf of any Holder, any plan of reorganization,

32

 

arrangement, adjustment or composition affecting the Notes or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

     Section 6.10. Priorities. If the Trustee collects any money pursuant to this Article, it
shall pay out the money in the following order:

     First: to the Trustee for all amounts due hereunder;

     Second: to Holders for amounts then due and unpaid for principal of and interest on
the Notes, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes for principal and interest; and

     Third: to the Company or as a court of competent jurisdiction may direct.

     The Trustee, upon written notice to the Company, may fix a record date and payment date for
any payment to Holders pursuant to this Section. At least 15 days before such record date, the
Trustee shall mail to each Noteholder and the Company a notice that states the record date, the
payment date and the amount to be paid.

     Section 6.11. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted a proceeding to enforce any right or remedy under the Indenture and the proceeding has
been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or
to the Holder, then, subject to any determination in the proceeding, the Company, the Trustee and
the Holders will be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Company, the Trustee and the Holders will continue as
though no such proceeding had been instituted.

     Section 6.12. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under the Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court may require any party litigant in such suit (other than the Trustee) to file an
undertaking to pay the costs of the suit, and the court may assess reasonable costs, including
reasonable attorneys fees, against any party litigant (other than the Trustee) in the suit having
due regard to the merits and good faith of the claims or defenses made by the party litigant. This
Section does not apply to a suit by a Holder to enforce payment of principal of or interest on any
Note on the respective due dates, or a suit by Holders of more than 10% in principal amount of the
outstanding Notes.

     Section 6.13. Rights and Remedies Cumulative. No right or remedy conferred or reserved to
the Trustee or to the Holders under this Indenture is intended to be exclusive of any other right
or remedy, and all such rights and

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remedies are, to the extent permitted by law, cumulative and in addition to every other right
and remedy hereunder or now or hereafter existing at law or in equity or otherwise. The assertion
or exercise of any right or remedy hereunder, or otherwise, will not prevent the concurrent
assertion or exercise of any other right or remedy.

     Section 6.14. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder to exercise any right or remedy accruing upon any Event of Default will impair any such
right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

ARTICLE 7

The Trustee

     Section 7.01. General. (a) The duties and responsibilities of the Trustee are as provided
by the Trust Indenture Act and as set forth herein. Whether or not expressly so provided, every
provision of the Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee is subject to this Article.

     (b) Except during the continuance of an Event of Default, the Trustee need perform only those
duties that are specifically set forth in the Indenture and no others, and no implied covenants or
obligations will be read into the Indenture against the Trustee. In case an Event of Default has
occurred and is continuing, the Trustee shall exercise those rights and powers vested in it by the
Indenture, and use the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

     (c) No provision of the Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act or its own willful misconduct.

     Section 7.02. Certain Rights of Trustee. Subject to Trust Indenture Act Sections 315(a)
through (d):

     (a) In the absence of bad faith on its part, the Trustee may rely, and will be protected in
acting or refraining from acting, upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or
presented by the proper Person. The Trustee need not investigate any fact or matter stated in the
document, but, in the case of any document which is specifically required to be

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furnished to the Trustee pursuant to any provision hereof, the Trustee shall examine the
document to determine whether it conforms to the requirements of the Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts stated therein).
The Trustee, in its discretion, may make further inquiry or investigation into such facts or
matters as it sees fit.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel conforming to Section 12.06 and the Trustee will not be liable for any
action it takes or omits to take in good faith in reliance on the certificate or opinion.

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

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

     (e) The Trustee will not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within its rights or powers or for any action it takes or omits to
take in accordance with the direction of the Holders in accordance with Section 6.05 relating to
the time, method and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under the Indenture.

     (f) The Trustee may consult with counsel, and the written advice of such counsel or any
Opinion of Counsel will be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

     (g) No provision of the Indenture will require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of its duties hereunder, or in the
exercise of its rights or powers, unless it receives indemnity satisfactory to it against any loss,
liability or expense.

     Section 7.03. Individual Rights of Trustee. The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not the Trustee. Any Agent may do the
same with like rights. However, the Trustee is subject to Trust Indenture Act Sections 310(b) and
311. For purposes of Trust Indenture Act Section 311(b)(4) and (6):

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     (a) “cash transaction” means any transaction in which full payment for goods or securities
sold is made within seven days after delivery of the goods or securities in currency or in checks
or other orders drawn upon banks or bankers and payable upon demand; and

     (b) “self-liquidating paper” means any draft, bill of exchange, acceptance or obligation which
is made, drawn, negotiated or incurred for the purpose of financing the purchase, processing,
manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by
documents evidencing title to, possession of, or a lien upon, the goods, wares or merchandise or
the receivables or proceeds arising from the sale of the goods, wares or merchandise previously
constituting the security, provided the security is received by the Trustee simultaneously with the
creation of the creditor relationship arising from the making, drawing, negotiating or incurring of
the draft, bill of exchange, acceptance or obligation.

     Section 7.04. Trustee’s Disclaimer. The Trustee (i) makes no representation as to the
validity or adequacy of the Indenture or the Notes, (ii) is not accountable for the Company’s use
or application of the proceeds from the Notes and (iii) is not responsible for any statement in the
Notes other than its certificate of authentication.

     Section 7.05. Notice of Default. If any Default occurs and is continuing and is known to
the Trustee, the Trustee will send notice of the Default to each Holder within 90 days after it
occurs, unless the Default has been cured; provided that, except in the case of a default in the
payment of the principal of or interest on any Note, the Trustee may withhold the notice if and so
long as the board of directors, the executive committee or a trust committee of directors of the
Trustee in good faith determines that withholding the notice is in the interest of the Holders.
Notice to Holders under this Section will be given in the manner and to the extent provided in
Trust Indenture Act Section 313(c).

     Section 7.06. Reports by Trustee to Holders. Within 60 days after each May 15, beginning
with May 15, 2007, the Trustee will mail to each Holder, as provided in Trust Indenture Act Section
313(c), a brief report dated as of such May 15, if required by Trust Indenture Act Section 313(a),
and file such reports with each stock exchange upon which its Notes are listed and with the
Commission as required by Trust Indenture Act Section 313(d).

     Section 7.07. Compensation and Indemnity. (a) The Company will pay the Trustee compensation
as agreed upon in writing for its services. The compensation of the Trustee is not limited by any
law on compensation of a Trustee of an express trust. The Company will reimburse the Trustee upon
request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by
the Trustee, including the reasonable compensation and expenses of the Trustee’s agents and
counsel.

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     (b) The Company will indemnify the Trustee for, and hold it harmless against, any loss or
liability or expense incurred by it without negligence or bad faith on its part arising out of or
in connection with the acceptance or administration of the Indenture and its duties under the
Indenture and the Notes, including the costs and expenses of defending itself against any claim or
liability and of complying with any process served upon it or any of its officers in connection
with the exercise or performance of any of its powers or duties under the Indenture and the Notes.

     (c) To secure the Company’s payment obligations in this Section, the Trustee will have a lien
prior to the Notes on all money or property held or collected by the Trustee, in its capacity as
Trustee, except money or property held in trust to pay principal of, and interest on particular
Notes.

     Section 7.08. Replacement of Trustee. (a) (i) The Trustee may resign at any time by written
notice to the Company.

     (ii) The Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by written notice to the Trustee.

     (iii) If the Trustee is no longer eligible under Section 7.10 or in the circumstances
described in Trust Indenture Act Section 310(b), any Holder that satisfies the
requirements of Trust Indenture Act Section 310(b) may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (iv) The Company may remove the Trustee if: (A) the Trustee is no longer eligible
under Section 7.10; (B) the Trustee is adjudged a bankrupt or an insolvent; (C) a receiver
or other public officer takes charge of the Trustee or its property; or (D) the Trustee
becomes incapable of acting.

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

     (b) If the Trustee has been removed by the Holders, Holders of a majority in principal amount
of the Notes may appoint a successor Trustee with the consent of the Company. Otherwise, if the
Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the
Company will promptly appoint a successor Trustee. If the successor Trustee does not deliver its
written acceptance within 30 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of a majority in principal amount of the outstanding Notes may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

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     (c) Upon delivery by the successor Trustee of a written acceptance of its appointment to the
retiring Trustee and to the Company, (i) the retiring Trustee will transfer all property held by it
as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07(c), (ii) the
resignation or removal of the retiring Trustee will become effective, and (iii) the successor
Trustee will have all the rights, powers and duties of the Trustee under the Indenture. Upon
request of any successor Trustee, the Company will execute any and all reasonable instruments for
fully and vesting in and confirming to the successor Trustee all such rights, powers and trusts.
The Company will give notice of any resignation and any removal of the Trustee and each appointment
of a successor Trustee to all Holders, and include in the notice the name of the successor Trustee
and the address of its Corporate Trust Office.

     (d) Notwithstanding replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.07 will continue for the benefit of the retiring Trustee.

     (e) The Trustee agrees to give the notices provided for in, and otherwise comply with, Trust
Indenture Act Section 310(b).

     Section 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation or national banking association, the resulting, surviving or transferee corporation or
national banking association without any further act will be the successor Trustee with the same
effect as if the successor Trustee had been named as the Trustee in the Indenture.

     Section 7.10. Eligibility. The Indenture must always have a Trustee that satisfies the
requirements of Trust Indenture Act Section 310(a) and has a combined capital and surplus of at
least $25,000,000 as set forth in its most recent published annual report of condition.

     Section 7.11. Money Held in Trust. The Trustee will not be liable for interest on any money
received by it except as it may agree with the Company. Money held in trust by the Trustee need
not be segregated from other funds except to the extent required by law and except for money held
in trust under Article 8.

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ARTICLE 8

Discharge

     Section 8.01. Satisfaction And Discharge Of The Indenture.

     (a) This Indenture shall cease to be of further effect if either: (i) all outstanding Notes
(other than Notes replaced pursuant to Section 2.07) have been
delivered to the Trustee for cancellation or (ii) all outstanding Notes have become due and
payable on the Maturity Date or upon repurchase pursuant to Article 3, and the Company irrevocably
deposits, prior to the applicable date on which such payment is due and payable, with the Trustee
or the Paying Agent (if the Paying Agent is not the Company or any of its Affiliates) Cash, and, if
applicable as herein provided and in accordance herewith, such other consideration, sufficient to
pay all amounts due and owing on all outstanding Notes (other than Notes replaced pursuant to
Section 2.07) on the Maturity Date or the Change in Control Purchase Date, as the case may be;
provided that, in either case, the Company pays to the Trustee all other sums payable hereunder by
the Company.

     (b) The Company may exercise its satisfaction and discharge option with respect to the Notes
only if:

     (i) no Default or Event of Default with respect to the Notes shall exist on the date
of such deposit;

     (ii) such deposit shall not result in a breach or violation of, or constitute a
Default or Event of Default under, this Indenture or any other agreement or instrument to
which the Company is a party or by which it is bound; and

     (iii) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel (which may rely upon such Officers’ Certificate as to the absence of
Defaults and Events of Default and as to any factual matters), each stating that all
conditions precedent provided for herein relating to the satisfaction and discharge of
this Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 7.07 shall survive and, if money shall have been deposited
with the Trustee pursuant to clause (a) of this Section, the provisions of Section 2.03, Section
2.04, Section 2.05, Section 2.06, Section 2.07, Section 2.12, Section 3.01, Article 5, Article 10
and this Article 8, shall survive and the Company shall be required to make all payments and
deliveries required by such Sections or Articles, as the case may be, irrespective of any prior
satisfaction and discharge until the Notes have been paid in full.

     Section 8.02. Application Of Trust Money. Subject to the provisions of Section 8.03, the
Trustee or a Paying Agent shall hold in trust, for the benefit of the Holders, all money deposited
with it pursuant to Section 8.01 and shall apply the deposited money in accordance with this
Indenture and the Notes to the payment of the principal amount of and interest on the Notes.

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     Section 8.03. Repayment To Company. The Trustee and each Paying Agent shall promptly pay to
the Company upon request any excess money (x) deposited with them pursuant to Section 8.01 and (y)
held by them at any time.

The Trustee and each Paying Agent shall also pay to the Company upon request any money held by them
for the payment of the principal amount of Notes or interest thereon that remains unclaimed for two
years after a right to such money has matured (which maturity shall occur, for the avoidance of
doubt, on the Maturity Date or the Change in Control Purchase Date (with respect to any Notes
repurchased pursuant to Article 3)); provided, however, that the Trustee or such Paying Agent,
before being required to make any such payment, may at the expense of the Company cause to be
mailed to each Holder entitled to such money or publish in a newspaper of general circulation in
the City of New York notice that such money remains unclaimed and that after a date specified
therein, which shall be at least 30 days from the date of such mailing or publication, any
unclaimed balance of such money then remaining will be repaid to the Company. After payment to the
Company, Holders entitled to money must look to the Company for payment as general creditors unless
an applicable abandoned property law designates another person.

     Section 8.04. Reinstatement. If the Trustee or any Paying Agent is unable to apply any
money in accordance with Section 8.02 by reason of any legal proceeding or by reason of any order
or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company’s obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time
as the Trustee or such Paying Agent is permitted to apply all such money in accordance with Section
8.02; provided, however, that if the Company has made any payment of the principal amount of or
interest on any Notes because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive any such payment from the money
held by the Trustee or such Paying Agent.

ARTICLE 9

Amendments, Supplements and Waivers

     Section 9.01. Amendments Without Consent of Holders. The Company and the Trustee may amend
or supplement the Indenture or the Notes without notice to or the consent of any Noteholder:

     (a) to cure any ambiguity, omission, defect or inconsistency in the Indenture or the Notes;

     (b) to comply with Article 5 or Section 10.12;

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     (c) to comply with the Trust Indenture Act or any amendment thereto, or to comply with any
requirements of the Commission in connection with the qualification of the Indenture under the
Trust Indenture Act;

     (d) to evidence and provide for the acceptance of an appointment hereunder by a successor
Trustee;

     (e) to provide for uncertificated Notes in addition to or in place of certificated Notes;

     (f) to secure the Notes;

     (g) to add to the covenants of the Company for the benefit of the Holders or to surrender any
right or power herein conferred upon the Company;

     (h) to add any additional Events of Default,

     (i) to comply with the rules of any applicable securities depositary; or

     (j) to make any other change that does not adversely affect the rights of any Holder.

     Section 9.02 . Amendments With Consent of Holders. (a) Except as otherwise provided in
Section 6.07 or paragraph (b), the Company and the Trustee may amend the Indenture and the Notes
with the written consent of the Holders of a majority in principal amount of the outstanding Notes,
and the Holders of a majority in principal amount of the outstanding Notes by written notice to the
Trustee may waive future compliance by the Company with any provision of the Indenture or the
Notes.

     (b) Notwithstanding the provisions of paragraph Section 9.02, without the consent of each
Holder affected, an amendment or waiver may not

     (i) reduce the principal amount of, Change in Control Purchase Price with respect to,
or any premium or interest payment on any Note,

     (ii) make any Note payable in currency or securities other than that stated in the
Note,

     (iii) change the Stated Maturities of any installment of principal of any Note,

     (iv) make any change that adversely affects the Holders’ right to convert any Note,

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     (v) make any change that adversely affects the Holders’ right to require the Company
to purchase the Notes in accordance with the terms thereof and this Indenture,

     (vi) impair the right to convert or receive any principal or interest payment with
respect to, a Note, or right to institute suit for the enforcement of any payment with
respect to, or conversion of, the Notes, or

     (vii) make any change in the percentage of the principal amount of the Notes required
for amendments or waivers.

     (c) It is not necessary for Noteholders to approve the particular form of any proposed
amendment, supplement or waiver, but is sufficient if their consent approves the substance thereof.

     (d) An amendment, supplement or waiver under this Section will become effective on receipt by
the Trustee of written consents from the Holders of the requisite percentage in principal amount of
the outstanding Notes. After an amendment, supplement or waiver under this Section becomes
effective, the Company will send to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. The Company will send supplemental indentures to Holders upon
request. Any failure of the Company to send such notice, or any defect therein, will not, however,
in any way impair or affect the validity of any such supplemental indenture or waiver.

     (e) With respect to the amendments set forth in Section 9.01 and this Section 9.02, any such
amendment to cure any ambiguity, defect or inconsistency made solely to conform the Indenture to
the provisions of the description of the Notes as set forth in any final offering memorandum
(relating to the initial issuance of such Notes to the extent that such description provisions are
intended to be a verbatim recitation of terms applicable to the Notes) will be deemed not to
adversely affect the interests of the Holders.

     Section 9.03. Effect of Consent. (a) After an amendment, supplement or waiver becomes
effective, it will bind every Holder unless it is of the type requiring the consent of each Holder
affected. If the amendment, supplement or waiver is of the type requiring the consent of each
Holder affected, the amendment, supplement or waiver shall bind each Holder that has consented to
it and every subsequent Holder of a Note that evidences the same debt as the Note of the consenting
Holder.

     (b) If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require
the Holder to deliver it to the Trustee so that the Trustee may place an appropriate notation of
the changed terms on the Note and return it to the Holder, or exchange it for a new Note that
reflects the changed terms. The

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Trustee may also place an appropriate notation on any Note thereafter authenticated. However,
the effectiveness of the amendment, supplement or waiver is not affected by any failure to annotate
or exchange Notes in this fashion.

     Section 9.04. Trustee’s Rights and Obligations. The Trustee is entitled to receive, and
will be fully protected in relying upon, an Opinion of Counsel stating that the execution of any
amendment, supplement or waiver authorized pursuant to this Article is authorized or permitted by
the Indenture. If the Trustee has received such an Opinion of Counsel, it shall sign the
amendment, supplement or waiver so long as the same does not adversely affect the rights of the
Trustee. The Trustee may, but is not obligated to, execute any amendment, supplement or waiver
that affects the Trustee’s own rights, duties or immunities under the Indenture.

     Section 9.05. Conformity With Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act.

     Section 9.06. Payments for Consents. Neither the Company nor any of its Subsidiaries or
Affiliates may, directly or indirectly, pay or cause to be paid any consideration, whether by way
of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of the Indenture or the Notes unless such consideration
is offered to be paid or agreed to be paid to all Holders of the Notes that consent, waive or agree
to amend such term or provision within the time period set forth in the solicitation documents
relating to the consent, waiver or amendment.

ARTICLE 10

Conversion

     Section 10.01. Conversion Privilege. A Holder of a Note may convert such Note at any time
on or prior to the Close of Business on the Business Day immediately preceding the Maturity Date
upon the occurrence of any of the events set forth in paragraph 7(a), paragraph 7(b), paragraph
7(c) or paragraph 7(d) of the Notes, subject to the provisions of this Article 10. Except as set
forth below under Section 10.11 and Section 10.25, if a Holder surrenders its Notes for conversion,
such Holder will receive, in respect of each $1,000 of principal amount of Notes to be converted:

     (a) Cash in an amount equal to the lesser of (A) $1,000 and (B) the Conversion Value (the
“Required Cash Amount”), and

     (b) if the Conversion Value is greater than $1,000, a number of shares of Common Stock (the
“Remaining Shares”), equal to the sum of the Daily Share Amounts for each of the thirty consecutive
Trading Days in the Conversion
Reference Period, subject to the right of the Company to deliver Cash in lieu of all or a
portion of such Remaining Shares as described below.

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     By the Close of Business on the Trading Day prior to the first Trading Day of the applicable
Conversion Reference Period, the Company may specify a percentage of the Daily Share Amount that
will be settled in Cash (the “Cash Percentage”) and will notify the Noteholder of such Cash
Percentage through written notice to the Trustee (the “Cash Percentage Notice”). If the Company
elects to specify a Cash Percentage, (x) the amount of Cash that the Company will deliver in
respect of each Trading Day in the applicable Conversion Reference Period, in addition to the
Required Cash Amount, will equal the product of: (i) the Cash Percentage, (ii) the Daily Share
Amount for such Trading Day, and (iii) the Volume Weighted Average Price of the Common Stock for
such Trading Day (provided that after the consummation of a change in control in which the
consideration is comprised entirely of cash, the amount used in this clause (iii) will be the cash
price per share received by holders of Common Stock in such change in control) and (y) the number
of shares of Common Stock deliverable in respect of each Trading Day in the applicable Conversion
Reference Period (in lieu of the full Daily Share Amount for such Trading Day pursuant to clause
(b) above) will be a percentage of the Daily Share Amount equal to 100% minus the Cash Percentage.
If the Company does not specify a Cash Percentage by the Close of Business on the Trading Day
immediately preceding the start of the applicable Conversion Reference Period, the Company shall
settle 100% of the Daily Share Amount for each Trading Day in the applicable Conversion Reference
Period with shares of Common Stock; provided, however, that the Company will pay Cash in lieu of
fractional shares otherwise issuable upon conversion of such Note, pursuant to Section 10.03
hereof. The Company may, at its option, revoke any Cash Percentage Notice through written notice
to the Trustee by the Close of Business on the Trading Day immediately preceding the start of the
applicable Conversion Reference Period.

     (c) A Holder may convert a portion of the principal amount of a Note if the portion is $1,000
or an integral multiple of $1,000. Provisions of this Indenture that apply to conversion of all of
a Note also apply to conversion of a portion of a Note.

     (d) In the event of a stock split, combination, dividend or any other event resulting in an
adjustment to the Conversion Rate pursuant to Section 10.06, 10.07, 10.08, 10.09 or 10.10, during
the applicable Conversion Reference Period, appropriate adjustment to the equation for calculating
Conversion Value and Remaining Shares shall be made, as determined by the Board of Directors.

     (e) Notes with respect to which a Change in Control Purchase Notice has been given by the
Holder may be converted pursuant to this Article 10 only if the Change in Control Purchase Notice
has been withdrawn in accordance with Section 3.02.

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     (f) Whenever any event described in paragraph 7(a), paragraph 7(b), paragraph 7(c) or
paragraph 7(d) of the Notes shall occur such that the Notes become convertible as provided in this
Article 10, the Company shall (x) issue a press release and use its reasonable efforts to post such
information on its website or otherwise publicly disclose this information or (y) promptly deliver,
in accordance with Section 12.03, written notice of the convertibility of the Notes to the Trustee
and each Noteholder and to the Conversion Agent for the benefit of the Noteholders, which press
release, website posting, public disclosure or written notice, as the case may be, shall include:

     (i) a description of such event;

     (ii) a description of the periods during which the Notes shall be convertible as
provided in paragraph 7(a), paragraph 7(b), paragraph 7(c) or paragraph 7(d) of the Notes
as a result of such event;

     (iii) a statement of whether an adjustment to the Conversion Rate shall take effect
in respect of such event pursuant to Section 10.13; and

     (iv) the procedures Noteholders must follow to convert their Notes in accordance with
this Article 10, including the name and address of the Conversion Agent.

     Section 10.02. Conversion Procedure. (a) To convert a Note represented by a Global Note, a
Noteholder must convert by book-entry transfer to the Conversion Agent through the facilities of
the DTC. To convert a Note that is represented by a Certificated Note, a Noteholder must (1)
complete and manually sign a Conversion Notice, a form of which is on the back of the Note, and
deliver such Conversion Notice to the Conversion Agent, (2) surrender the Note to the Conversion
Agent, (3) if required by the Conversion Agent, furnish appropriate endorsement and transfer
documents, and (4) if required, pay all transfer or similar taxes. The Conversion Agent shall,
within one (1) Business Day of any Conversion Date, provide notice to the Company, as set forth in
Section 12.03, of the occurrence of such Conversion Date.

     (b) As promptly as practicable following the end of the Conversion Reference Period applicable
to the Notes being converted, the Company shall deliver to the Holder, through the Conversion
Agent, the Required Cash Amount and Remaining Shares, if any (including Cash in lieu of Remaining
Shares pursuant to Section 10.01 hereof and Cash in lieu of fractional shares pursuant to Section
10.03 hereof). The person in whose name the certificate representing any shares is registered
shall be treated as a stockholder of record on and after the last Trading Day of the Conversion
Reference Period; provided, however, that no surrender of a Note on any date when the stock
transfer books of the Company

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shall be closed shall be effective to constitute the person or persons entitled to receive the
Remaining Shares upon such conversion as the record holder or holders of such shares of Common
Stock on such date, but such surrender shall be effective to constitute the person or persons
entitled to receive such shares of Common Stock as the record holder or holders thereof for all
purposes at the Close of Business on the next succeeding day on which such stock transfer books are
open. Upon conversion of a Note, such person shall no longer be a Holder of such Note.

     (c) No payment or adjustment will be made for dividends on, or other distributions with
respect to, any Common Stock except as provided in this Article 10. Upon conversion of a Note, a
Noteholder will not receive, except as described below, any Cash payment representing accrued
interest. Instead, accrued interest will be deemed paid by the Cash and/or shares of common stock,
if any, received by the Noteholder upon conversion. Delivery to the Noteholder of such Cash and/or
shares of Common Stock will thus be deemed (1) to satisfy the Company’s obligation to pay the
principal amount of a Note, and (2) to satisfy the Company’s obligation to pay accrued and unpaid
interest on the Note. As a result, upon conversion of a Note, accrued and unpaid interest on such
Note is deemed paid in full rather than cancelled, extinguished or forfeited.

     (d) Holders of Notes surrendered for conversion during the period from the Close of Business
on any Regular Record Date next preceding any Interest Payment Date to the opening of business of
such Interest Payment Date will receive the semiannual interest payable on such Notes on the
corresponding Interest Payment Date notwithstanding the conversion, and such Notes upon surrender
must be accompanied by funds equal to the amount of such payment; provided that no such payment
need be made (x) in connection with any conversion following the Regular Record Date immediately
preceding the Maturity Date, (y) if the Company has specified a Change in Control Purchase Date
that is after a Regular Record Date and on or prior to the corresponding Interest Payment Date or
(z) to the extent of any Defaulted Interest, if any Defaulted Interest exists at the time of
conversion with respect to such Note. The Company shall not be required to convert any Notes that
are surrendered for conversion without payment of interest as required by this paragraph.

     (e) If the Holder converts more than one Note at the same time, the Required Cash Amount and
the Remaining Shares, if any (together with the Cash payment, if any, in lieu of fractional shares)
shall be based on the total principal amount of the Notes converted.

     (f) If the last day on which a Note may be converted is a Legal Holiday, the Note may be
surrendered on the next succeeding day that is not a Legal Holiday.

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     (g) Upon surrender of a Note that is converted in part, the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder, a new Note in an authorized denomination
equal in principal amount to the unconverted portion of the Note surrendered.

     Section 10.03. Fractional Shares. The Company will not issue a fractional share of Common
Stock upon conversion of a Note. Instead, the Company will deliver Cash in lieu of a fractional
share based on arithmetic average of the Volume Weighted Average Price of Common Stock for each of
the thirty consecutive Trading Days of the Conversion Reference Period, rounded to the nearest
whole cent (the “Average Price”).

     Section 10.04. Taxes On Conversion. If a Holder converts a Note, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issue of any shares of Common Stock
upon the conversion. However, the Holder shall pay any such tax which is due because the Holder
requests the shares to be issued in a name other than the Holder’s name. The Conversion Agent may
refuse to deliver the certificates representing the Common Stock being issued in a name other than
the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which will be
due because the Common Stock is to be delivered in a name other than the Holder’s name. Nothing
herein shall preclude any tax withholding required by law or regulations.

     Section 10.05. Company To Provide Common Stock.

     The Company shall, prior to issuance of any Notes under this Article 10, and from time to time
as may be necessary, reserve out of its authorized but unissued Common Stock a sufficient number of
shares of Common Stock to permit the delivery in respect of all outstanding Notes of the number of
Remaining Shares due upon conversion (assuming, for purposes of this sentence, that the Company
elects to deliver solely shares of Common Stock in respect of its obligation to deliver the
Remaining Shares).

     All shares of Common Stock delivered upon payment of the Remaining Shares, if applicable, upon
conversion of the Notes shall be newly issued shares or treasury shares, shall be duly and validly
issued and fully paid and nonassessable and shall be free from preemptive rights and free of any
lien or adverse claim.

     The Company will comply with all federal and state securities laws regulating the offer and
delivery of shares of Common Stock upon payment of the Remaining Shares, if applicable, upon
conversion of Notes, if any, and will list or cause to have quoted such shares of Common Stock on
each national securities exchange or in the over-the-counter market or such other market on which
the Common Stock is then listed or quoted.

47

 

     In addition, if any shares of Common Stock which would be issuable upon conversion of Notes
hereunder require registration with or approval of any governmental authority before such shares of
Common Stock may be issued upon such conversion, the Company will cause such shares of Common Stock
to be duly registered or approved, as the case may be.

     Section 10.06. Adjustment for Change In Capital Stock.

     (a) If the Company shall, at any time and from time to time while any of the Notes are
outstanding, issue a dividend or makes a distribution on its Common Stock payable in shares of its
Common Stock, then the Conversion Rate at the opening of business on the Ex-Dividend Date for such
dividend or distribution will be adjusted by multiplying such Conversion Rate by a fraction:

     (i) the numerator of which shall be the sum of the number of shares of Common Stock
outstanding at the Close of Business on the Business Day immediately preceding the
Ex-Dividend Date for such dividend or distribution, plus the total number of shares of
Common Stock constituting such dividend or other distribution; and

     (ii) the denominator of which shall be the number of shares of Common Stock
outstanding at the close of business on the Business Day immediately preceding such
Ex-Dividend Date.

     If any dividend or distribution of the type described in this Section 10.06(a) is declared but
not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate which would
then be in effect if such dividend or distribution had not been declared. Except as set forth in
the preceding sentence, in no event shall the Conversion Rate be decreased pursuant to this Section
10.06(a).

     (b) If the Company shall, at any time or from time to time while any of the Notes are
outstanding, subdivide its outstanding shares of Common Stock into a greater number of shares of
Common Stock, then the Conversion Rate in effect at the opening of business on the day upon which
such subdivision becomes effective shall be proportionately increased, and conversely, if the
Company shall, at any time or from time to time while any of the Notes are outstanding, combine its
outstanding shares of Common Stock into a smaller number of shares of Common Stock, then the
Conversion Rate in effect at the opening of business on the day upon which such combination becomes
effective shall be proportionately decreased. In each such case, the Conversion Rate shall be
adjusted by multiplying such Conversion Rate by a fraction, the numerator of which shall be the
number of shares of Common Stock outstanding immediately after giving effect to such subdivision or
combination and the denominator of which shall be the number of shares of Common Stock outstanding
immediately prior to such subdivision or combination. Such increase or reduction, as the case may
be, shall
become effective immediately after the opening of business on the day upon which such
subdivision or combination becomes effective.

48

 

     Section 10.07. Adjustment for Rights Issue. If the Company shall, at any time or from time
to time while the Notes are outstanding, distribute rights to all holders of its Common Stock
entitling them, for a period expiring within 60 days after the record date for such distribution,
to purchase shares of Common Stock at less than the average of the Closing Prices for the five
consecutive Trading Days immediately preceding the first public announcement of the distribution,
the Conversion Rate shall be adjusted so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect at the opening of business on the Ex-Dividend Date for
such distribution by a fraction:

     (x) the numerator of which shall be the number of shares of Common Stock outstanding
at the close of business on the Business Day immediately preceding the Ex-Dividend Date
for such distribution, plus the total number of additional shares of Common Stock so
offered for purchase; and

     (y) the denominator of which shall be the number of shares of Common Stock
outstanding on the close of business on the Business Day immediately preceding the
Ex-Dividend Date for such distribution, plus the number of shares of Common Stock that the
aggregate offering price of the total number of shares of Common Stock so offered would
purchase at the Current Market Price of the Common Stock on the declaration date for such
distribution (determined by multiplying such total number of shares of Common Stock so
offered by the exercise price of such rights and dividing the product so obtained by such
Current Market Price).

     Such adjustment shall become effective immediately after the opening of business on the
Ex-Dividend Date for such distribution.

     To the extent that shares of Common Stock are not delivered pursuant to such rights or upon
the expiration or termination of such rights, the Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect had the adjustments made upon the issuance of such
rights been made on the basis of the delivery of only the number of shares of Common Stock actually
delivered. In the event that such rights are not so distributed, the Conversion Rate shall again
be adjusted to be the Conversion Rate which would then be in effect if the Ex-Dividend Date for
such distribution had not occurred. In determining whether any rights entitle the holders to
purchase shares of Common Stock at less than the average of the Closing Prices for the five
consecutive Trading Days immediately preceding the first public announcement of the relevant
distribution, and in determining the aggregate offering price of such shares of Common Stock, there
shall be taken into account any consideration received for such rights and the value of such
consideration if other than Cash, to be determined in good faith by
the Board of Directors. Except as set forth in this paragraph, in no event shall the
Conversion Rate be decreased pursuant to this Section 10.07.

49

 

     Section 10.08. Adjustment for Other Distributions.

     (a) If the Company shall, at any time or from time to time while the Notes are outstanding,
distribute to all holders of its Common Stock any of its Capital Stock, assets, or debt securities
or any rights, warrants or options to purchase securities of the Company (excluding (x) any
distribution of Capital Stock of, or similar equity interests in, a Subsidiary or other business
unit of the Company referred to in Section 10.08(b) below, (y) any rights described in Section
10.07 above and (z) any cash dividends or other cash distributions referred to in Section 10.09
below) (such Capital Stock, assets, debt securities or rights to purchase securities of the Company
being distributed hereinafter in this Section 10.08 called the “Distributed Assets”), the
Conversion Rate shall be increased so that the same shall be equal to the rate determined by
multiplying the Conversion Rate in effect immediately prior to the opening of business on the
Ex-Dividend Date with respect to such distribution by a fraction:

     (i) the numerator of which will be the Current Market Price of the Common Stock, and

     (ii) the denominator of which will be the Current Market Price of the Common Stock
minus the fair market value, as determined by the Board of Directors, of the portion of
Distributed Assets so distributed applicable to one share of the Common Stock (determined
on the basis of the number of shares of Common Stock outstanding on such Ex-Dividend
Date).

     Such increase shall become effective immediately after the opening of business on the
Ex-Dividend Date for such distribution. In the event that such distribution is not so made, the
Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if
such distribution had not been declared. Except as set forth in the prior sentence, in no event
shall the Conversion Rate be decreased pursuant to this Section 10.08(a).

     If the Board of Directors determines the fair market value of any distribution for purposes of
this Section 10.08(a) by reference to the actual or when issued trading market for any Distributed
Assets comprising all or part of such distribution, it must in doing so consider the prices in such
market over the same period (the “Reference Period”) used in computing the Current Market Price for
purposes of clause (i) above, unless the Board of Directors determines in good faith that
determining the fair market value during the Reference Period would not be in the best interest of
the Holders.

50

 

     (b) Notwithstanding the foregoing, if the Distributed Assets distributed by the Company to all
holders of the Common Stock consist of Capital Stock of, or similar equity interests in, a
Subsidiary or other business unit of the Company (a “Spin-Off”), the Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate
in effect immediately prior to the opening of business on the fifteenth Trading Day following the
Ex-Dividend Date for such distribution by a fraction:

     (i) the numerator of which shall be the sum of (A) the average of the Closing Prices
of the Common Stock for the ten consecutive Trading Days commencing on and including the
fifth Trading Day after the Ex-Dividend for such distribution on the New York Stock
Exchange or such other national or regional exchange or market on which such securities
are then listed or quoted, plus (B) the average Closing Prices of the securities
distributed in respect of each share of Common Stock for the ten consecutive Trading Days
commencing on and including the fifth Trading Day after such Ex-Dividend Date; and

     (ii) the denominator of which shall be the average of the Closing Prices of the
Common Stock for the ten consecutive Trading Days commencing on and including the fifth
Trading Day after such Ex-Dividend Date,

such adjustment to become effective immediately after the opening of business on the fifteenth
Trading Day following the Ex-Dividend Date for such distribution. In no event shall the Conversion
Rate be decreased pursuant to this Section 10.08(b).

     Section 10.09. Adjustment for Cash Dividends. If the Company shall, at any time or from
time to time while any of the Notes are outstanding, by dividend or otherwise, distribute to all
holders of its shares of Common Stock, Cash (excluding (x) any distributions described in Section
10.10 below or (y) any dividend or distribution in connection with the Company’s liquidation,
dissolution or winding up), then the Conversion Rate shall be adjusted so that the same shall equal
the rate determined by multiplying the Conversion Rate in effect immediately prior to the opening
of business of the Ex-Dividend Date for such distribution by a fraction:

     (x) the numerator of which shall be equal to the Current Market Price per share of
Common Stock minus the Dividend Threshold Amount; and

     (y) the denominator of which shall be equal to the Current Market Price per share of
Common Stock on such date, less the amount of the distribution per share of Common Stock.

51

 

     Such adjustment shall become effective immediately after the opening of business on the
Ex-Dividend Date for such distribution. In the event that such distribution is not so made, the
Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if
such dividend or distribution had not been declared.

     Whenever the Conversion Rate is adjusted hereunder or under the Notes, the Dividend Threshold
Amount shall be increased or decreased by multiplying the Dividend Threshold Amount at such time by
a fraction, the numerator of which is the Conversion Rate prior to such adjustment and the
denominator of which is the Conversion Rate following such adjustment. For the avoidance of doubt,
the Conversion Rate may be increased or decreased pursuant to the application of this Section
10.09.

     Section 10.10. Adjustment for Tender Offer. In case the Company or any of its Subsidiaries
shall, at any time or from time to time, while any of the Notes are outstanding, distribute Cash or
other consideration in respect of a tender offer or exchange offer made by the Company or any
Subsidiary for all or any portion of the Common Stock, where the sum of the aggregate amount of
such Cash distributed and the aggregate fair market value (as determined in good faith by the Board
of Directors, whose determination shall be conclusive and set forth in a Board Resolution), as of
the Expiration Date (as defined below), of such other consideration distributed (such sum, the
“Aggregate Amount”) expressed as an amount per share of Common Stock validly tendered or exchanged,
and not withdrawn, pursuant to such tender offer or exchange offer as of the Expiration Time (as
defined below) (such tendered or exchanged shares of Common Stock, the “Purchased Shares”) exceeds
the Closing Price per share of the Common Stock on the first Trading Day immediately following the
last date (such last date, the “Expiration Date”) on which tenders or exchanges could have been
made pursuant to such tender offer or exchange offer (as the same may be amended through the
Expiration Date), then, and in each case, immediately after the close of business on such date, the
Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying
the Conversion Rate in effect immediately prior to the close of business on the Trading Day
immediately following the Expiration Date by a fraction:

     (x) the numerator of which is equal to the sum of (A) the Aggregate Amount and (B)
the product of (I) an amount equal to (1) the number of shares of Common Stock outstanding
as of the last time (the “Expiration Time”) at which tenders or exchanges could have been
made pursuant to such tender offer or exchange offer less (2) the Purchased Shares and
(II) the Closing Price per share of the Common Stock on the first Trading Day immediately
following the Expiration Date; and

52

 

     (y) the
denominator of which shall be equal to the product of (A) the
number of shares of Common Stock outstanding as of the Expiration Time (including all Purchased
Shares) and (B) the Closing Price per share of the Common Stock on the first Trading Day
immediately following the Expiration Date.

An adjustment, if any, to the Conversion Rate pursuant to this Section 10.10 shall become effective
immediately prior to the opening of business on the second Trading Day immediately following the
Expiration Date. In the event that the Company or a Subsidiary is obligated to purchase shares of
Common Stock pursuant to any such tender offer or exchange offer, but the Company or such
Subsidiary is permanently prevented by applicable law from effecting any such purchases, or all
such purchases are rescinded, then the Conversion Rate shall again be adjusted to be the Conversion
Rate which would then be in effect if such tender offer or exchange offer had not been made.
Except as set forth in the preceding sentence, if the application of this Section 10.10 to any
tender offer or exchange offer would result in a decrease in the Conversion Rate, no adjustment
shall be made for such tender offer or exchange offer under this Section 10.10.

     Section 10.11. Provisions Governing Adjustment to Conversion Rate. Rights or warrants
distributed by the Company to all holders of Common Stock entitling the holders thereof to
subscribe for or purchase shares of the Company’s Capital Stock (either initially or under certain
circumstances), which rights, options or warrants, until the occurrence of a specified event or
events (“Trigger Event”): (i) are deemed to be transferred with such shares of Common Stock; (ii)
are not exercisable; and (iii) are also issued in respect of future issuances of Common Stock,
shall be deemed not to have been distributed for purposes of Section 10.06, Section 10.07, Section
10.08, Section 10.09 or Section 10.10 (and no adjustment to the Conversion Rate under Section
10.06, Section 10.07, Section 10.08, Section 10.09 or Section 10.10 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights, options and warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under Section 10.08, except as set forth in Section 10.23. If any
such right, option or warrant, including any such existing rights, options or warrants distributed
prior to the date of this Indenture, are subject to events, upon the occurrence of which such
rights, options or warrants become exercisable to purchase different securities, evidences of
indebtedness or other assets, then the date of the occurrence of any and each such event shall be
deemed to be the date of distribution and Ex-Dividend Date with respect to new rights, options or
warrants with such rights (and a termination or expiration of the existing rights, options or
warrants without exercise by any of the holders thereof), except as set forth in Section 10.23. In
addition, except as set forth in Section 10.23, in the event of any distribution (or deemed
distribution) of rights, options or warrants, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto that was counted for purposes of
calculating a distribution amount for which an adjustment to the Conversion Rate

53

 

under Section 10.06, Section 10.07, Section 10.08, Section 10.09 or Section 10.10 was made
(including any adjustment contemplated in Section 10.23), (1) in the case of any such rights,
options or warrants that shall all have been redeemed or repurchased without exercise by any
holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase
to give effect to such distribution or Trigger Event, as the case may be, as though it were a Cash
distribution, equal to the per share redemption or repurchase price received by a holder or holders
of Common Stock with respect to such rights, options or warrants (assuming such holder had retained
such rights, options or warrants), made to all holders of Common Stock as of the date of such
redemption or repurchase, and (2) in the case of such rights, options or warrants that shall have
expired or been terminated without exercise by any holders thereof, the Conversion Rate shall be
readjusted as if such rights, options and warrants had not been issued.

     Section 10.12. Disposition Events. If any of the following events (any such event, a
“Disposition Event”) occurs:

     (a) any reclassification of the Common Stock (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of a subdivision or
combination);

     (b) any merger, consolidation or other combination involving the Company; or

     (c) any sale or conveyance of all or substantially all the properties and assets of the
Company to any other Person;

in each case, as a result of which all of the holders of Common Stock shall be entitled to receive
Cash, securities or other property for their shares of Common Stock, the Company or the successor
or purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture
(which shall comply with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture, if such supplemental indenture is then required to so comply) providing
that notwithstanding the provisions of Section 10.01, and subject to the provisions of paragraph 7
of the Notes, the Conversion Value with respect to each $1,000 principal amount of Notes converted
following the effective date of any Disposition Event, shall be calculated based on the kind and
amount of Cash, securities or other property (collectively, “Reference Property”) received upon the
occurrence of such Disposition Event by a holder of Common Stock holding, immediately prior to the
transaction, a number of shares of Common Stock equal to the Conversion Rate immediately prior to
such Disposition Event; provided that if the Disposition Event provides the holders of Common Stock
with the right to receive more than a single type of consideration determined based in part upon
any form of stockholder election, the Reference Property shall be comprised of
the weighted average of the types and amounts of consideration received by the holders of the
Common Stock.

54

 

     If the Conversion Value of the Notes shall be based on Reference Property as set forth above,
the Company’s obligation to deliver the consideration described in Section 10.01 with respect to
each $1,000 principal amount of Notes tendered for conversion after the effective date of any such
Disposition Event, shall, notwithstanding anything to the contrary set forth in Section 10.01, be
settled in Cash and units of Reference Property (if applicable) and the Company shall deliver, as
promptly as practicable immediately following the last Trading Day of the Conversion Reference
Period:

     (1) Cash in an amount equal to the lesser of (A) $1,000 and (B) the Conversion Value,
and

     (2) if the Conversion Value is greater than $1,000, (a) Cash equal to the difference
between the aggregate Conversion Value and $1,000, (b) an amount in Reference Property,
determined as set forth in Section 10.01(b), with a fair market value, as determined by
the Conversion Agent, equal to the Conversion Value less $1,000 or (c) a combination
thereof, at the Company’s election, determined as set forth in Section 10.01(b); and

     (3) an amount in Cash in lieu of any fractional shares of Common Stock calculated
based on the Average Price,

provided that, in each case, (x) the Conversion Value and the Daily Share Amounts, shall
be determined as if the words “Volume Weighted Average Price per share of Common Stock” in
the definition of each such term were replaced by the words “Volume Weighted Average Price
per unit of Reference Property composed of the kind and amount of Cash, securities or
other property that a holder of one share of Common Stock immediately prior to such
Disposition Event would have owned or been entitled to receive”, (y) the Volume Weighted
Average Price shall be determined with respect to such a unit of Reference Property and
(z) references to “Remaining Shares” and “shares of Common Stock” were instead references
to “a unit of Reference Property composed of the kind and amount of Cash, securities or
other property that a holder of one share of Common Stock immediately prior to such
Disposition Event would have owned or been entitled to receive.”

     Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent
as may be practicable to the adjustments provided for in this Article 10. If, in the case of any
such Disposition Event, the stock or other securities and assets receivable thereupon by a holder
of Common Stock includes shares of stock or other securities and assets of a Person other than the
successor

55

 

or purchasing Person, as the case may be, in such Disposition Event, then such supplemental
indenture shall also be executed by such other Person and shall contain such additional provisions
to protect the interests of the Noteholders as the Board of Directors shall reasonably consider
necessary by reason of the foregoing.

     The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each Noteholder, at the address of such Noteholder as it appears on the register of the Notes
maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of such supplemental indenture.

     The above provisions of this Section 10.12 shall similarly apply to successive Disposition
Events.

If this Section 10.12 applies to any event or occurrence, none of Section 10.06, Section 10.07,
Section 10.08, Section 10.09 or Section 10.10 shall apply.

     Section 10.13. Adjustment to Conversion Rate Upon Change in Control Transactions. (a) If,
after the Issue Date, a Change in Control occurs and a Holder elects to convert its Notes in
connection with such Change in Control, the Company will increase the Conversion Rate for the Notes
surrendered for conversion by a number of additional shares of Common Stock (the “Make-Whole
Shares”), as described in this Section 10.13. A conversion of Notes will be deemed for the
purposes of this Section 10.13 to be “in connection with” a Change in Control transaction if the
notice of conversion of the Notes is received by the Conversion Agent from and including the
effective date of the Change in Control transaction up to and including the Trading Day prior to
the related Change in Control Purchase Date.

     (b) The number of Make-Whole Shares will be determined by reference to the table below and is
based on the date which such Change in Control transaction becomes effective (the “Change in
Control Effective Date”) and the price paid per share of Common Stock in the Change in Control (in
the case of a change in control described in clause (ii) of the definition thereof), or in the case
of all other Changes in Control, the average of the Closing Prices per share of Common Stock over
the five Trading-Day period ending on the Trading Day preceding the relevant Change in Control
Effective Date (the “Stock Price”). If holders of Common Stock receive only cash in the case of a
Change in Control described in clause (ii) of the definition thereof, the Stock Price shall be the
Cash amount paid per share of Common Stock. Otherwise, the Stock Price shall be the average of the
Closing Prices per share of Common Stock over the five Trading-Day period ending on the Trading Day
preceding the relevant Change in Control Effective Date.

56

 

     (c) The Stock Prices set forth in the first column of the table below will be adjusted as of
any date on which the Conversion Rate is adjusted. The adjusted Stock Prices will equal the Stock
Prices applicable immediately prior to such adjustment, multiplied by a fraction, the numerator of
which is the Conversion Rate immediately prior to the adjustment giving rise to the Stock Price
adjustment and the denominator of which is the Conversion Rate as so adjusted. In addition, the
number of Make-Whole Shares on the table below will be subject to adjustment in the same manner as
the Conversion Rate as set forth in Section 10.06 through Section 10.10.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price	 
	Effective Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	$	51.04	 	 	$	52.50	 	 	$	55.00	 	 	$	56.14	 	 	$	60.00	 	 	$	65.00	 	 	$	70.00	 	 	$	80.00	 	 	$	90.00	 	 	$	100.00	 	 	$	110.00	 
	4/18/2006
	 	 	1.7811	 	 	 	1.5777	 	 	 	1.2815	 	 	 	1.1649	 	 	 	0.8435	 	 	 	0.5517	 	 	 	0.3563	 	 	 	0.1365	 	 	 	0.0395	 	 	 	0.0040	 	 	 	0.0000	 
	4/15/2007
	 	 	1.7811	 	 	 	1.5863	 	 	 	1.2686	 	 	 	1.1446	 	 	 	0.8078	 	 	 	0.5104	 	 	 	0.3181	 	 	 	0.1127	 	 	 	0.0287	 	 	 	0.0016	 	 	 	0.0000	 
	4/15/2008
	 	 	1.7811	 	 	 	1.5740	 	 	 	1.2295	 	 	 	1.0970	 	 	 	0.7437	 	 	 	0.4448	 	 	 	0.2620	 	 	 	0.0819	 	 	 	0.0167	 	 	 	0.0001	 	 	 	0.0000	 
	4/15/2009
	 	 	1.7811	 	 	 	1.5290	 	 	 	1.1483	 	 	 	1.0047	 	 	 	0.6347	 	 	 	0.3437	 	 	 	0.1827	 	 	 	0.0457	 	 	 	0.0057	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2010
	 	 	1.7514	 	 	 	1.4256	 	 	 	0.9828	 	 	 	0.8226	 	 	 	0.4385	 	 	 	0.1857	 	 	 	0.0778	 	 	 	0.0129	 	 	 	0.0003	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2011
	 	 	1.7811	 	 	 	1.2363	 	 	 	0.3705	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

     (d) If the exact Stock Prices and Change in Control Effective Dates are not set forth in
the table, then: (i) if the Stock Price is between two Stock Prices in the table or the Change in
Control Effective Date is between two Change in Control Effective Dates in the table, the
Make-Whole Shares issued upon conversion of the Notes will be determined by a straight-line
interpolation between the number of Make-Whole Shares set forth for the higher and lower Stock
Prices and the earlier and later Change in Control Effective Dates in the table, based on a 365-day
year, (ii) if the Stock Price is in excess of $110 per share, subject to adjustment as set forth in
Section 10.13(c), no Make-Whole Shares will be issued upon conversion of the Notes; and (iii) if
the Stock Price is less than $51.04 per share, subject to adjustment as set forth in Section
10.13(c), no Make-Whole Shares will be issued upon conversion of the Notes.

     (e) The Company may make such increases in the Conversion Rate, in addition to those required
by Sections 10.06, 10.07, 10.08, 10.09 and 10.10 as the Board of Directors considers to be
advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase
Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock) or
from any event treated as such for income tax purposes.

     To the extent permitted by applicable law, the Company from time to time may increase the
Conversion Rate by any amount for any period of time if the period is at least twenty (20) days,
the increase is irrevocable during the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company, which determination
shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence,
the Company shall mail to holders of record of the Notes a notice of the increase at least fifteen
(15) days prior to the date the increased Conversion Rate takes effect, and such notice shall state
the increased Conversion Rate and the period during which it will be in effect.

     Section 10.14. When Adjustment May Be Deferred. No adjustment in the Conversion Rate need
be made unless the adjustment would require an increase or decrease of at least 1% of the
Conversion Rate. Any adjustments that are less than 1% of the Conversion Rate shall be carried
forward and taken into account in determining any subsequent adjustment. In addition, the Company
shall make any carry forward adjustments not otherwise effected on each anniversary of the Issue
Date, upon conversion of any Note, upon required purchase of the notes pursuant to Section 3.01,
and five Business Days prior to the Maturity Date.

     Section 10.15. When No Adjustment Required. (a) No adjustment need be made for a
transaction referred to in Section 10.06, Section 10.07, Section 10.08, Section 10.09 or Section
10.10 if Noteholders participate, without conversion, in the transaction or event that would
otherwise give rise to an adjustment pursuant to such Section at the same time as holders of the
Common Stock participate with respect to such transaction or event and on the same terms as holders
of the Common Stock participate with respect to such transaction or event as if
Noteholders, at such time, held a number of shares of Common Stock equal to the Conversion
Rate at such time.

57

 

     (b) No adjustment need be made for the issuance of Common Stock or any securities convertible
into or exchangeable for Common Stock or carrying the right to purchase Common Stock or any such
security.

     (c) No adjustment need be made for rights to purchase Common Stock pursuant to a Company plan
for reinvestment of dividends or interest.

     (d) No adjustment need be made for a change in the par value or no par value of the Common
Stock.

     (e) To the extent the Notes become convertible pursuant to this Article 10 into Cash, no
adjustment need be made thereafter as to the Cash. Interest will not accrue on the Cash.

     (f) Notwithstanding anything in this Article 10 to the contrary, the Conversion Rate shall not
exceed 19.5924 per $1,000 principal amount of Notes, other than on account of adjustments to the
Conversion Rate in the manner set forth in Section 10.06, Section 10.07, Section 10.08, Section
10.09 and Section 10.10.

     Section 10.16. Notice of Adjustment. Whenever the Conversion Rate is adjusted, the Company
shall promptly mail to Noteholders a notice of the adjustment. The Company shall file with the
Trustee and the Conversion Agent such notice and a certificate from the Company’s independent
public accountants briefly stating the facts requiring the adjustment and the manner of computing
it. The certificate shall be conclusive evidence that the adjustment is correct. Neither the
Trustee nor any Conversion Agent shall be under any duty or responsibility with respect to any such
certificate except to exhibit the same to any Holder desiring inspection thereof.

     Section 10.17. Notice of Certain Transactions. If (a) the Company takes any action that
would require an adjustment in the Conversion Rate pursuant to Section 10.06, 10.07, 10.08, 10.09
or 10.10 (unless no adjustment is to occur pursuant to Section 10.14 or Section 10.15), (b) the
Company takes any action that would require a supplemental indenture pursuant to Section 10.12, or
(c) there is a liquidation or dissolution of the Company, then the Company shall mail to
Noteholders and file with the Trustee and the Conversion Agent a notice stating the proposed
Ex-Dividend Date for a dividend or distribution or the proposed effective date of a subdivision,
combination, reclassification, consolidation, merger, binding share exchange, transfer, liquidation
or dissolution. The Company shall file and mail the notice at least 15 days before such date;
provided that if the Company elects to make a distribution described in Section 10.07, Section
10.08, or Section 10.09, and in the case of Section 10.08 or Section 10.09,

58

 

that has a per share value equal to more than 15% of the Closing Price per share of Common
Stock on the day preceding the declaration date for such distribution, the Company shall give
notice to Holders at least 40 Trading Days prior to the Ex-dividend Date for such distribution.
Failure to file or mail the notice or any defect in it shall not affect the validity of the
transaction.

     Section 10.18. Right Of Holders To Convert. Notwithstanding any other provision in this
Indenture, the Holder of any Note shall have the right to convert its Note in accordance with this
Article 10 and paragraph 7 of the Notes and to bring an action for the enforcement of any such
right to convert, and such rights shall not be impaired or affected without the consent of such
Holder.

     Section 10.19. Company Determination Final. The Company shall be responsible for making all
calculations called for hereunder and under the Notes. These calculations include, but are not
limited to, Conversion Value, the Conversion Date, the Volume Weighted Average Price, the
Conversion Reference Period, the Closing Price, the Conversion Price, the Required Cash Amount, the
Applicable Conversion Rate and the number of shares of Common Stock, if any, to be issued upon
conversion of the Notes. The Company shall make all these calculations in good faith and, absent
manifest error, the Company’s calculations will be final and binding on Noteholders. The Company
shall provide a schedule of the Company’s calculations to the Trustee, and the Trustee is entitled
to rely upon the accuracy of the Company’s calculations without independent verification.

     Section 10.20. Trustee’s Adjustment Disclaimer. The Trustee has no duty to determine when
an adjustment under this Article 10 should be made, how it should be made or what it should be. The
Trustee has no duty to determine whether a supplemental indenture under Section 10.12 need be
entered into or whether any provisions of any supplemental indenture are correct. The Trustee shall
not be accountable for and makes no representation as to the validity or value of any securities or
assets issued upon conversion of Notes. The Trustee shall not be responsible for the Company’s
failure to comply with this Article 10. Each Conversion Agent shall have the same protection under
this Section 10.20 as the Trustee.

     Section 10.21. Simultaneous Adjustments. (a) For purposes of Section 10.08, Section 10.06(a)
and Section 10.07, any dividend or distribution to which Section 10.08 is applicable that also
includes shares of Common Stock, or rights, options or warrants to subscribe for or purchase shares
of Common Stock (or both), shall be deemed instead to be (1) a dividend or distribution of the debt
securities, assets or shares of Capital Stock other than such shares of Common Stock or rights (and
any Conversion Rate adjustment required by Section 10.08 with respect to such dividend or
distribution shall then be made) immediately followed by (2) a dividend or distribution of such
shares of Common Stock or such rights (and any further Conversion Rate adjustment required by
Section

59

 

10.06(a) and Section 10.07 with respect to such dividend or distribution shall then be made),
except any shares of Common Stock included in such dividend or distribution shall not be deemed
“outstanding at the close of business on the Business Day immediately preceding such Ex-Dividend
Date” within the meaning of Section 10.06(a).

     (b) The reclassification of the Common Stock into securities including securities other than
Common Stock (other than any reclassification upon an event to which Section 10.12 applies) shall
be deemed to involve (a) a distribution of such securities other than the Common Stock to all
holders of Common Stock (and the effective date of such reclassification shall be deemed to be the
“Ex-Dividend Date” within the meaning of this Section 10.08), and (b) a subdivision or combination,
as the case may be, of the number of shares of Common Stock outstanding immediately prior to such
reclassification into the number of shares of Common Stock outstanding immediately thereafter (and
the effective date of such reclassification shall be deemed to be “the day upon which such
subdivision becomes effective” or “the day upon which such combination becomes effective”, as the
case may be, and “the day upon which such subdivision or combination becomes effective” within the
meaning of Section 10.06(b)).

     Section 10.22. Successive Adjustments. After an adjustment to the Conversion Rate under
this Article 10, any subsequent event requiring an adjustment under this Article 10 shall cause an
adjustment to the Conversion Rate as so adjusted.

     Section 10.23. Rights Issued in Respect of Common Stock Issued Upon Conversion. Each share
of Common Stock issued upon conversion of Notes pursuant to this Article 10 shall be entitled to
receive the appropriate number of rights (“Rights”), if any, and the certificates representing the
Common Stock issued upon such conversion shall bear such legends, if any, in each case as may be
provided by the terms of the Rights Agreement, dated as of October 26, 2000, between the Company
and Wells Fargo Bank Minnesota, National Association or any successor shareholder rights agreement
adopted by the Company, as the same may be amended form time to time (in each case, a “Shareholders
Rights Plan”). If the Shareholders Rights Plan under which any Rights are issued provides that
each share of Common Stock issued upon conversion of the Notes at any time prior to the
distribution of separate certificates representing such Rights will be entitled to receive such
Rights, there shall not be any adjustment to the conversion privilege or Conversion Rate at any
time prior to the distribution of separate certificates representing such Rights. If, however,
prior to any conversion the Rights have separated from the Common Stock, the Conversion Rate shall
be adjusted at the time of separation as if the Company distributed to all Holders of the Common
Stock, its assets, debt securities or rights as described in Section 10.08 above, subject to
readjustment in the event of the expiration, termination or redemption of such Rights.

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     Section 10.24. Withholding Taxes for Adjustments in Conversion Rate. The Company may, at its
option, set-off withholding taxes due with respect to Notes against payments of Cash and Common
Stock on the Notes. In the case of any such set-off against Common Stock delivered upon conversion
of the Notes, such Common Stock shall be valued based on the arithmetic average of the Volume
Weighted Average Price for each Trading Day in the relevant Conversion Reference Period.

     Section 10.25. Exchange in Lieu of Conversion. (a) Notwithstanding anything in this
Indenture to the contrary, when a Holder surrenders Notes for conversion, the Company may direct
the Conversion Agent to surrender, on or prior to the commencement of the relevant Conversion
Reference Period, such Notes to a financial institution designated by the Company (a “Financial
Institution”) for exchange in lieu of conversion.

     (b) In order to accept any such Notes surrendered for conversion, the Financial Institution
must agree to deliver, in exchange for such Notes, all Cash or all shares of Common Stock or a
combination of Cash and shares of Common Stock equal to the Conversion Value, at the option of the
Financial Institution.

     (c) By the Close of Business on the Trading Day immediately preceding the start of the
Conversion Reference Period, the Company must notify the Holder surrendering Notes for conversion
that it has directed the Financial Institution to make an exchange in lieu of conversion and such
Financial Institution must notify the Conversion Agent whether it will deliver, upon exchange,
shares of Common Stock, Cash or a specified combination thereof.

     (d) If the Financial Institution accepts any such Notes, it will deliver the appropriate
number of shares of Common Stock, Cash, or a combination thereof, to the Conversion Agent and the
Conversion Agent will deliver those shares of Common Stock or Cash, or combination thereof, as the
case may be, to the Holder. Any Notes exchanged by such Financial Institution will remain
outstanding.

     (e) If such Financial Institution agrees to accept any Notes for exchange but does not timely
deliver the related consideration, or if such Financial Institution does not accept the Notes for
exchange, the Company will, as promptly as practical thereafter, but not later than the third
Business Day following the determination of the Average Price, convert the Notes into Cash and
shares, if any, of Common Stock, pursuant to Section 10.02.

     In no event will the Company’s designation of a Financial Institution pursuant to this Section
10.25 require such Financial Institution to accept any Notes for exchange. The Company shall not
be obligated to pay any consideration to, or otherwise enter into any agreement or arrangement
with, a
Financial Institution for or with respect to such designation pursuant to this Section 10.25.

61

 

ARTICLE 11

Payment Of Interest

     Section 11.01. Interest Payments. Interest on any Note that is payable, and is punctually
paid or duly provided for, on any applicable Interest Payment Date shall be paid to the person in
whose name that Note is registered at the Close of Business on the Regular Record Date for such
interest at the office or agency of the Company maintained for such purpose. Each installment of
interest payable in Cash on any Note shall be paid in same-day funds by transfer to an account
maintained by the payee located inside the United States, if the Trustee shall have received proper
wire transfer instructions from such payee not later than the related Regular Record Date or, if no
such instructions have been received by check drawn on a bank in the United States mailed to the
payee at its address set forth on the Registrar’s books. In the case of a Global Note, interest
payable on any applicable payment date will be paid by wire transfer of same-day funds to the
Depositary, with respect to that portion of such Global Note held for its account by Cede & Co. for
the purpose of permitting such party to credit the interest received by it in respect of such
Global Note to the accounts of the beneficial owners thereof.

     Section 11.02. Defaulted Interest. Except as otherwise specified with respect to the Note,
any interest on any Note that is payable, but is not punctually paid or duly provided for, within
30 days following any applicable payment date (herein called “Defaulted Interest”, which term shall
include any accrued and unpaid interest that has accrued on such defaulted amount in accordance
with paragraph 1 of the Notes), shall forthwith cease to be payable to the registered Holder
thereof on the relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause
(a) or (b) below.

     (a) The Company may elect to make payment of any Defaulted Interest to the persons in whose
names the Notes are registered at the Close of Business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the
date of the proposed payment (which shall not be less than 20 days after such notice is received by
the Trustee), and at the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall
make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix

62

 

a special record date for the payment of such Defaulted Interest which shall be not more than
15 days and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment (the “Special Record
Date”). The Trustee shall promptly notify the Company of such Special Record Date and, in the name
and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder of Notes at his address as it appears on the list of Noteholders maintained pursuant to
Section 2.05 not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the persons in whose names the Notes are
registered at the Close of Business on such Special Record Date and shall no longer be payable
pursuant to the following clause (b).

     (b) The Company may make payment of any Defaulted Interest on the Notes in any other lawful
manner not inconsistent with the requirements of any securities exchange on which such Notes may be
listed, and upon such notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment
shall be deemed practicable by the Trustee.

     Section 11.03. Interest Rights Preserved. Subject to the foregoing provisions of this
Article 11 and Section 2.06, each Note delivered under this Indenture upon registration of transfer
of or in exchange for or in lieu of any other Note shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Notes.

ARTICLE 12

Miscellaneous

     Section 12.01. Trust Indenture Act of 1939. The Indenture shall incorporate and be governed
by the provisions of the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act.

     Section 12.02. Noteholder Communications; Noteholder Actions. (a) The rights of Holders to
communicate with other Holders with respect to the Indenture or the Notes are as provided by the
Trust Indenture Act, and the Company and the Trustee shall comply with the requirements of Trust
Indenture Act Sections 312(a) and 312(b). Neither the Company nor the Trustee will be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

63

 

     (b) (i) Any request, demand, authorization, direction, notice, consent to amendment,
supplement or waiver or other action provided by this Indenture to be given or taken by a
Holder (an “act”) may be evidenced by an instrument signed by the Holder delivered to the
Trustee. The fact and date of the execution of the instrument, or the authority of the
person executing it, may be proved in any manner that the Trustee deems sufficient.

     (ii) The Trustee may make reasonable rules for action by or at a meeting of Holders,
which will be binding on all the Holders.

     (c) Any act by the Holder of any Note binds that Holder and every subsequent Holder of a Note
that evidences the same debt as the Note of the acting Holder, even if no notation thereof appears
on the Note. Subject to paragraph (d), a Holder may revoke an act as to its Notes, but only if the
Trustee receives the notice of revocation before the date the amendment or waiver or other
consequence of the act becomes effective.

     (d) The Company may, but is not obligated to, fix a record date (which need not be within the
time limits otherwise prescribed by Trust Indenture Act Section 316(c)) for the purpose of
determining the Holders entitled to act with respect to any amendment or waiver or in any other
regard, except that during the continuance of an Event of Default, only the Trustee may set a
record date as to notices of default, any declaration or acceleration or any other remedies or
other consequences of the Event of Default. If a record date is fixed, those Persons that were
Holders at such record date and only those Persons will be entitled to act, or to revoke any
previous act, whether or not those Persons continue to be Holders after the record date. No act
will be valid or effective for more than 90 days after the record date.

     Section 12.03. Notices. (a) Any notice or communication to the Company will be deemed given
if in writing (i) when delivered in person or (ii) five days after mailing when mailed by first
class mail, or (iii) when sent by facsimile transmission, with transmission confirmed. Any notice
to the Trustee will be effective only upon receipt. In each case the notice or communication
should be addressed as follows:

if to the Company:

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432-5604

Attention: General Counsel

Tel: (763) 514-4000

Fax: (763) 572-5459

64

 

with a copy to:

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432-5604

Attention: Treasurer

Tel: (763) 514-4000

Fax: (763) 572-5474

if to the Trustee:

Wells Fargo Bank, N.A.

Sixth and Marquette

MAC N9303-110

Minneapolis, MN 55479

Fax: 612-667-2160

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

     (b) Except as otherwise expressly provided with respect to published notices, any notice or
communication to a Holder will be deemed given when mailed to the Holder at its address as it
appears on the Register by first class mail or, as to any Global Note registered in the name of the
Depository or its nominee, as agreed by the Company, the Trustee and the Depository. Copies of any
notice or communication to a Holder, if given by the Company, will be mailed to the Trustee at the
same time. Any defect in mailing a notice or communication to any particular Holder will not
affect its sufficiency with respect to other Holders.

     (c) Where the Indenture provides for notice, the notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and the waiver will be the
equivalent of the notice. Waivers of notice by Holders must be filed with the Trustee, but such
filing is not a condition precedent to the validity of any action taken in reliance upon such
waivers.

     Section 12.04. Communication by Holders with Other Holders. Noteholders may communicate
pursuant to Section 312(b) of the Trust Indenture Act with other Noteholders with respect to their
rights under this Indenture or the Notes. The Company, the Trustee, the Registrar, the Paying
Agent, the Conversion Agent and anyone else shall have the protection of Section 312(c) of the
Trust Indenture Act.

65

 

     Section 12.05. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under the Indenture, the Company will
furnish to the Trustee:

     (1) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in the Indenture relating to the proposed
action have been complied with; and

     (2) an Opinion of Counsel stating that all such conditions precedent have been
complied with.

     Section 12.06. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a condition or covenant provided for in the Indenture must include:

     (1) a statement that each person signing the certificate or opinion has read the
covenant or condition and the related definitions;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in the certificate or opinion is based;

     (3) a statement that, in the opinion of each such person, that person has made such
examination or investigation as is necessary to enable the person to express an informed
opinion as to whether or not such covenant or condition has been complied with; and

     (4) a statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with, provided that an Opinion of Counsel may rely
on an Officers’ Certificate or certificates of public officials with respect to matters of
fact.

     Section 12.07. Legal Holiday. A “Legal Holiday” is any day other than a Business Day. If
any specified date (including a date for giving notice) is a Legal Holiday, the action shall be
taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on
such date is a payment in respect of the Notes, interest shall accrue for the intervening period.

     Section 12.08. Rules by Trustee, Paying Agent, Conversion Agent and Registrar. The Trustee
may make reasonable rules for action by or a meeting of Noteholders. The Registrar, Conversion
Agent and the Paying Agent may make reasonable rules for their functions.

     Section 12.09. Governing Law. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS INDENTURE
AND THE NOTES.

     Section 12.10. No Adverse Interpretation of Other Agreements. The Indenture may not be used
to interpret another indenture or loan or debt agreement of the Company or any Subsidiary of the
Company, and no such indenture or loan or debt agreement may be used to interpret the Indenture.

66

 

     Section 12.11. Successors. All agreements of the Company in the Indenture and the Notes will
bind its successors. All agreements of the Trustee in the Indenture will bind its successor.

     Section 12.12. Duplicate Originals. The parties may sign any number of copies of the
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     Section 12.13. Separability. In case any provision in the Indenture or in the Notes is
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

     Section 12.14. Table of Contents and Headings. The Table of Contents, Cross-Reference Table
and headings of the Articles and Sections of the Indenture have been inserted for convenience of
reference only, are not to be considered a part of the Indenture and in no way modify or restrict
any of the terms and provisions of the Indenture.

     Section 12.15. No Liability of Directors, Officers, Employees, Incorporators, Members and
Stockholders. No director, officer, employee, incorporator, member or stockholder of the Company,
as such, will have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of, or by reason of, such obligations. Each Holder
of Notes by accepting a Note waives and releases all such liability. The waiver and release are
part of the consideration for issuance of the Notes.

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SIGNATURES

     IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the
date first written above.

	 	 	 	 	 
	 	MEDTRONIC, INC.

as Issuer

 	 
	 	By:  	/s/
Gary L. Ellis	 
	 	 	Name:  Gary L. Ellis	 
	 	 	Title:  Senior Vice President and
Chief Financial Officer	 
	 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

as Trustee

 	 
	 	By:  	/s/
Steven Gubrud	 
	 	 	Name:  Steven Gubrud	 
	 	 	Title:  Vice President	 
	 

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EXHIBIT A

[FACE OF NOTE] 

Medtronic, Inc.

1.50% Convertible Senior Notes Due April 15, 2011

	 	 	 
	 

	 	[CUSIP]                                         
	No.

	 	[ISIN]                                         

     Medtronic, Inc., a Minnesota corporation (the “Company”, which term includes any successor
under the Indenture hereinafter referred to), for value received, promises to pay to
                                        , or its registered assigns, the principal sum of                                          DOLLARS
($                    ) on April 15, 2011, or such lesser amount as indicated on the Schedule of Exchanges of
Notes on the other side of this Note to reflect exchanges, purchases and conversions.

     Initial Interest Rate: 1.50% per annum.

     Interest Payment Dates: April 15 and October 15, commencing October 15, 2006.

     Regular Record Dates: April 1 and October 1.

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

A-1

 

     IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers.

	 	 	 	 	 	 	 
	Date:	 	Medtronic, Inc.  
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

A-2

 

(Form of Trustee’s Certificate of Authentication)

     This is one of the 1.50% Convertible Senior Notes Due April 15, 2011 described in the
Indenture referred to in this Note.

	 	 	 	 	 
	 	 	Wells Fargo Bank, N.A., as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-3

 

[REVERSE SIDE OF NOTE]

Medtronic, Inc.

1.50% Convertible Senior Notes Due April 15, 2011

1. Principal and Interest.

     The Company promises to pay the principal of this Note on April 15, 2011.

     The Company promises to pay interest on the principal amount of this Note on each Interest
Payment Date, as set forth on the face of this Note, at the rate of 1.50% per annum (subject to
adjustment as provided below).

     Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on the April 1 or October 1 immediately preceding the interest payment date) on each
interest payment date, commencing October 15, 2006.

     Interest on this Note will accrue from the most recent date to which interest has been paid on
this Note or the Note surrendered in exchange for this Note (or, if there is no existing default in
the payment of interest and if this Note is authenticated between a regular record date and the
next interest payment date, from such interest payment date) or, if no interest has been paid, from
the Issue Date. Interest will be computed in the basis of a 360-day year of twelve 30-day months.

     The Company will pay interest on overdue principal, premium, if any, and, to the extent
lawful, interest at a rate per annum that is 2% in excess of 1.50%. Interest not paid when due and
any interest on principal, premium or interest not paid when due will be paid to the Persons that
are Holders on a special record date, which will established as set forth in the Indenture referred
to below.

2. Registration Rights Agreement.

     The Holder of this Note is entitled to the benefits of the Registration Rights Agreement,
dated April 18, 2006, between the Company and the Initial Purchasers named therein (the
“Registration Rights Agreement”). In the event of a Registration Default, as defined in the
Registration Rights Agreement, the Holder is entitled to additional interest for the period from
and including the day following the occurrence of the Registration Default to, but excluding, the
earlier of the day on which the Registration Default has been cured or April 18, 2008. Additional
interest will accrue at an additional rate per year equal to 0.125% per annum of the principal
amount of the Notes for the first 90-day period following the occurrence of such Registration
Default, which increase shall increase to a per annum rate of 0.25% from and after the 91st day following such Registration
Default.

A-4

 

3. Method of Payment.

     Subject to the terms and conditions of the Indenture, the Company shall pay interest on this
Note to the person who is the Holder of this Note at the close of business on the Regular Record
Date next preceding the related Interest Payment Date. The Company will pay any Cash amounts in
money of the United States that at the time of payment is legal tender for payment of public and
private debts.

4. Paying Agent, Conversion Agent and Registrar.

     Initially, the Trustee will act as Paying Agent, Conversion Agent and Registrar. The Company
may appoint and change any Paying Agent, Conversion Agent, Registrar or co-registrar without
notice, other than notice to the Trustee. The Company or any of its Subsidiaries or any of their
Affiliates may act as Paying Agent, Conversion Agent, Registrar or co-registrar. The Company may
maintain deposit accounts and conduct other banking transactions with the Trustee in the normal
course of business.

5. Indenture.

     This is one of the Notes issued under an Indenture dated as of April 18, 2006 (as amended from
time to time, the “Indenture”), between the Company and Wells Fargo Bank, N.A., as Trustee.
Capitalized terms used herein are used as defined in the Indenture unless otherwise indicated. The
terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act. The Notes are subject to all such terms, and Holders are
referred to the Indenture and the Trust Indenture Act for a statement of all such terms. To the
extent permitted by applicable law, in the event of any inconsistency between the terms of this
Note and the terms of the Indenture, the terms of the Indenture will control.

     The Notes are general unsecured obligations of the Company.

6. Redemption at the Option of the Holder upon a Change in Control.

     At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase the Notes held by such Holder on the date, at the
purchase price and as otherwise provided in the Indenture.

     Holders have the right to withdraw any Change in Control Purchase Notice by delivering to the
Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture.

A-5

 

     If Cash (and/or securities if permitted under the Indenture) sufficient to pay the Change in
Control Purchase Price of, together with any accrued and unpaid interest with respect to, all Notes
or portions thereof to be purchased as of the Change in Control Purchase Date is deposited with the
Paying Agent on or prior to the third Business Day following the Change in Control Purchase Date,
interest shall cease to accrue on such Notes (or portions thereof) immediately after such Change in
Control Purchase Date whether or not the Note is delivered to the Paying Agent, and the Holder
thereof shall have no other rights as such (other than the right to receive the Change in Control
Purchase Price and accrued and unpaid interest upon surrender of such Notes).

7. Conversion.

     A Holder of a Note may convert such Note into Cash and, to the extent the Conversion Value of
such Note is greater than $1,000, Cash, shares of Common Stock or a combination thereof, at the
option of the Company, as described in the Indenture before the Close of Business on the Business
Day immediately preceding Maturity Date, if at least one of the following conditions is satisfied:

     (a) during any calendar quarter commencing at any time after June 30, 2006, and only during
such calendar quarter, if the Closing Price of the Common Stock for at least 20 Trading Days in the
period of 30 consecutive Trading Days ending on the last Trading Day of the preceding calendar
quarter exceeds 140% of the Conversion Price per share of Common Stock on the last day of such
preceding calendar quarter (the “Conversion Trigger Price”);

     (b) the Company elects to distribute to all holders of Common Stock (i) rights or warrants
entitling all holders of the Common Stock to subscribe for or purchase, for a period expiring
within 60 days after the record date for such distribution, Common Stock at less than the average
of the Closing Prices of the Common Stock for the five consecutive Trading Days ending on the date
immediately preceding the first public announcement of the distribution, or (ii) Cash, debt
securities (or other evidence of Debt) or other assets (excluding dividends or distributions
described in Section 10.06 of the Indenture and dividends not in excess of the Dividend Threshold
Amount), which distribution, together with all other distributions within the preceding twelve
months, has a per share value exceeding 15% of the average of the Closing Prices of the Common
Stock for the five consecutive Trading Days ending on the date immediately preceding the first
public announcement of the distribution; or

     (c) if a Change of Control occurs or if the Company is a party to a consolidation, merger,
binding share exchange or transfer or lease of all or substantially all of the Company’s assets,
pursuant to which the Common Stock would be converted into Cash, securities or other assets; or

A-6

 

     (d) at any time on or after March 15, 2011 until the Close of Business on the Business Day
immediately preceding the Maturity Date.

     The Conversion Agent will determine on the Company’s behalf at the beginning of each calendar
quarter commencing at any time after June 30, 2006 through the calendar quarter ending March 31,
2011 whether the Notes are convertible as a result of the price of the Common Stock pursuant to
clause (a) above and will notify the Company if the Notes are so convertible.

     If the Company makes a distribution described in subsection (b)(i) or (b)(ii), the Company
must notify Holders at least 40 Trading Days prior to the Ex-Dividend Date for such distribution.
Once the Company has given such notice, Holders may surrender their Notes for conversion at any
time until the earlier of the Close of Business on the Business Day prior to the Ex-Dividend Date
for such distribution or the Company’s announcement that such distribution will not take place,
even if the Notes are not convertible at that time.

     The Company will notify Noteholders and the Trustee as promptly as practicable following the
date on which the Company publicly announces any transaction described in clause (c) above, but in
no event less than 40 Trading Days prior to the anticipated effective date of such transaction.

8. Defaults and Remedies.

     If an Event of Default, as defined in the Indenture, occurs and is continuing, the Trustee or
the Holders of at least 25% in principal amount of the Notes may declare all the Notes to be due
and payable. If a bankruptcy or insolvency default with respect to the Company occurs and is
continuing, the Notes automatically become due and payable. Holders may not enforce the Indenture
or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory
to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a
majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise
of remedies.

9. Amendment and Waiver.

     Subject to certain exceptions set forth in the Indenture, the Indenture and the Notes may be
amended, or default may be waived, with the consent of the Holders of a majority in principal
amount of the outstanding Notes. Without notice to or the consent of any Holder, the Company and
the Trustee may amend or supplement the Indenture or the Notes to, among other things, cure any
ambiguity, defect or inconsistency or if such amendment or supplement does not adversely affect the
interests of the Holders in any material respect.

A-7

 

10. Registered Form; Denominations; Transfer; Exchange.

     The Notes are in registered form without coupons in denominations of $1,000 principal amount
and integral multiples of $1,000. A Holder may register the transfer or exchange of Notes in
accordance with the Indenture. The Trustee may require a Holder to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. Pursuant to the Indenture, there are certain periods during which the Trustee will
not be required to issue, register the transfer of or exchange any Note or certain portions of a
Note.

11. Persons Deemed Owners.

     The registered Holder of this Note may be treated as the owner of this Note for all purposes.

12. Unclaimed Money or Notes.

     The Trustee and the Paying Agent shall return to the Company upon written request any money or
securities held by them for the payment of any amount with respect to the Notes that remains
unclaimed for two years, subject to applicable unclaimed property laws. After return to the
Company, Holders entitled to the money or securities must look to the Company for payment as
general creditors unless an applicable abandoned property law designates another person.

13. Trustee Dealings with the Company.

     Subject to certain limitations imposed by the Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may
otherwise deal with the Company or its Affiliates with the same rights it would have if it were not
Trustee.

14. No Recourse Against Others.

     A
director, officer, incorporator, agent, subsidiary, employee, member or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By accepting a Note,
each Noteholder waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Notes.

15. Authentication.

     This Note shall not be valid until an authorized officer of the Trustee manually signs the
Trustee’s Certificate of Authentication on the other side of this Note.

A-8

 

16. Governing Law.

     THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS NOTE.

17. Abbreviations.

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

     The Company will furnish a copy of the Indenture to any Holder upon written request and
without charge.

A-9

 

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

      

      

Please print or typewrite name and address including zip code of assignee

      

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

      

attorney to transfer said Note on the books of the Company with full power of substitution in
the premises.

	 	 	 
	 

	 	Your Signature:
	 
	 	 
	Date:
	 	 
	 
	 	 
	 

	 	(Sign exactly as your name appears on
the other side of this Note)
	 
	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 
	By:
	 	 

 

			
	*	 	The signature must be guaranteed by an
institution which is a member of one of the following recognized signature
guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the
Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program
acceptable to the Trustee.

A-10

 

CONVERSION NOTICE

     To convert this Note, check the box: o

     To convert only part of this Note, state the principal amount to be converted (must be $1,000
principal amount or an integral multiple of $1,000 principal amount): $[                    ] .

     If you want the Cash paid to another person or the stock certificate, if any, made out in
another person’s name, fill in the form below:

      

(Insert assignee’s soc. sec. or tax I.D. no.)

      

      

      

(Print or type assignee’s name, address and zip code)

and irrevocably appoint

      

agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him or her.

	 	 	 
	 

	 	Your Signature:
	 
	 	 
	Date:
	 	 
	 
	 	 
	 

	 	(Sign exactly as your name appears on
the other side of this Note)
	 
	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 
	By:
	 	 

 

			
	*	 	The signature must be guaranteed by an
institution which is a member of one of the following recognized signature
guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the
Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program
acceptable to the Trustee.

A-11

 

SCHEDULE OF EXCHANGES OF NOTES4

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for Notes in certificated form, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	 
	 	 	 	 	 	 	this Global	 	 
	 	 	Amount of decrease	 	Amount of Increase	 	Note following	 	Signature or
	 	 	in Principal Amount	 	in Principal Amount	 	such decrease	 	authorized signatory
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	or increase	 	of Trustee
	 

	 	 
	 	 
	 	 
	 	 

 

			
	4	 	This schedule should be included only if the
Note is a Global Note.

A-12

 

In connection with any transfer of this Note occurring prior to the Resale Restriction
Termination Date, unless such Note has been sold pursuant to a registration statement that has been
declared effective under the Securities Act (and which continues to be effective at the time of
such transfer) or pursuant to Rule 144 under the Securities Act or any similar provision then in
force, the undersigned confirms that it is making, and it has not utilized any general solicitation
or general advertising in connection with, the transfer:

[Check One]

	 	 	 	 	 
	(1)

	 	___
	 	to the Company or any Subsidiary thereof, or
	 
	 	 	 	 
	(2)

	 	___
	 	to a “qualified institutional buyer” in compliance with Rule
144A under the Securities Act of 1933, as amended, or
	 
	 	 	 	 
	(3)

	 	___
	 	pursuant to an exemption from registration provided by Rule
144 under the Securities Act of 1933, as amended, or any
other available exemption from the registration requirements
of the Securities Act of 1933,

Unless one of the items (1) through (3) is checked, the Trustee will refuse to register any of the
Notes evidenced by this certificate in the name of any person other than the registered Holder
thereof; provided, however, that if item (3) is checked, the Company and the Trustee reserve the
right to require the delivery of such legal opinions, certifications or other evidence as may
reasonably be required in order to determine that the proposed transfer is being made in compliance
with the Securities Act of 1933, as amended and applicable state securities laws.

If none of the foregoing items are checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in the Indenture shall have
been satisfied.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 
	 	Signed:	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	(Sign exactly as name appears on
the other side of this Note)
	Signature Guarantee:	 	 	 	 	 	 	 	 
	 	 	 

A-13

 

Schedule to Exhibit 4.1

     On April 18, 2006, the Company entered into an Indenture with Wells Fargo Bank, N.A. substantially
identical to the Indenture appearing herein as Exhibit 4.1. This
other Indenture and the form of Convertible Senior Note included
therein (the “2013 Indenture”) differ from the
Indenture and form of Convertible Senior Note appearing herein as Exhibit 4.1 (the “2011
Indenture”) as follows:

	 	(1)	 	Each reference to the year 2011 in the 2011 Indenture is a reference to the year 2013 in the 2013 A Indenture.
	 
	 	(2)	 	Each reference to the rate of 1.50% in the 2011 Indenture is a reference to the rate
1.625% in the 2013 Indenture.
	 
	 	(3)	 	In the 2013 Indenture, the following table replaces the table appearing in Section
10.13(c) of the 2011 Indenture.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price	 
	Effective Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	$	51.04	 	 	$	52.50	 	 	$	55.00	 	 	$	56.14	 	 	$	60.00	 	 	$	65.00	 	 	$	70.00	 	 	$	80.00	 	 	$	90.00	 	 	$	100.00	 	 	$	110.00	 	 	$	120.00	 
	4/18/2006
	 	 	1.7811	 	 	 	1.6016	 	 	 	1.3366	 	 	 	1.2308	 	 	 	0.9332	 	 	 	0.6514	 	 	 	0.4521	 	 	 	0.2075	 	 	 	0.0821	 	 	 	0.0222	 	 	 	0.0011	 	 	 	0.0000	 
	4/15/2007
	 	 	1.7811	 	 	 	1.6118	 	 	 	1.3331	 	 	 	1.2225	 	 	 	0.9142	 	 	 	0.6272	 	 	 	0.4280	 	 	 	0.1901	 	 	 	0.0722	 	 	 	0.0179	 	 	 	0.0004	 	 	 	0.0000	 
	4/15/2008
	 	 	1.7811	 	 	 	1.6123	 	 	 	1.3177	 	 	 	1.2017	 	 	 	0.8819	 	 	 	0.5906	 	 	 	0.3937	 	 	 	0.1670	 	 	 	0.0598	 	 	 	0.0129	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2009
	 	 	1.7811	 	 	 	1.6011	 	 	 	1.2868	 	 	 	1.1644	 	 	 	0.8319	 	 	 	0.5381	 	 	 	0.3468	 	 	 	0.1377	 	 	 	0.0453	 	 	 	0.0078	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2010
	 	 	1.7811	 	 	 	1.5774	 	 	 	1.2370	 	 	 	1.1063	 	 	 	0.7588	 	 	 	0.4651	 	 	 	0.2846	 	 	 	0.1025	 	 	 	0.0297	 	 	 	0.0033	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2011
	 	 	1.7811	 	 	 	1.5297	 	 	 	1.1518	 	 	 	1.0097	 	 	 	0.6447	 	 	 	0.3590	 	 	 	0.2007	 	 	 	0.0622	 	 	 	0.0148	 	 	 	0.0005	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2012
	 	 	1.7481	 	 	 	1.4222	 	 	 	0.9804	 	 	 	0.8211	 	 	 	0.4415	 	 	 	0.1943	 	 	 	0.0895	 	 	 	0.0237	 	 	 	0.0045	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	4/15/2013
	 	 	1.7811	 	 	 	1.2363	 	 	 	0.3705	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

	 	(4)	 	The phrase “$110 per share” appearing in
Section 10.13(d)(ii) of the 2011 Indenture
appears as “$120 per share” in the 2013 Indenture.exv4w2

 

Exhibit 10.2

 

Registration Rights Agreement

Dated As of April 18, 2006

between

Medtronic, Inc.

and

Banc of America Securities LLC

and

Morgan Stanley & Co. Incorporated

 

 

 

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the “Agreement”) is made and entered into this
18th day of April, 2006, among Medtronic, Inc., a Minnesota corporation (the
“Company”), and Banc of America Securities LLC (“Banc of America”) and Morgan
Stanley & Co. Incorporated (“Morgan Stanley”), acting on behalf of the several parties
named in Schedule A to the Purchase Agreement (as defined below) (collectively, the “Initial
Purchasers”).

          This Agreement is made pursuant to the Purchase Agreement, dated April 12, 2006, among the
Company and Banc of America and Morgan Stanley, as representatives for the Initial Purchasers (the
“Purchase Agreement”), which provides for the sale by the Company to the Initial Purchasers
of (i) $2,200,000,000 aggregate principal amount of the Company’s 1.50% Convertible Senior Notes
due 2011 (the “2011 Notes”) and (ii) $2,200,000,000 aggregate principal amount of the
Company’s 1.625% Convertible Senior Notes due 2013 (the “2013 Notes,” and together with the
2011 Notes, the “Notes”. The Notes together with the shares of Common Stock (as defined below)
into which the Notes are convertible are referred to herein as the “Securities”). In order
to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide the registration rights set forth in this Agreement. The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

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

1. Definitions.

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

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

          “1934 Act” shall mean the Securities Exchange Act of l934, as amended.

          “1939 Act” shall mean the Trust Indenture Act of 1939, as amended.

          “Automatic Shelf Registration Statement” shall have the meaning set forth in Rule 405
of the 1933 Act.

          “Business Day” shall mean any calendar day on which the New York Stock Exchange, Nasdaq and
Securities and Exchange Commission are open for trading or business, as the case may be.

          “Closing Date” shall have the meaning given to it in the Purchase Agreement.

          “Common Stock” shall mean any shares of common stock, $0.10 par value, of the Company
and any other shares of common stock as may constitute “Common Stock” for purposes of the
Indentures.

          “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

1

 

          “Depositary” shall mean The Depository Trust Company and its successors or assigns, or
any other depositary appointed by the Company, provided, however, that such appointed depositary
must have an address in the Borough of Manhattan, in the City of New York, unless no such
depositary is available.

          “Effectiveness Period” shall have the meaning set forth in Section 2.1(b).

          “Final Memorandum” shall mean the final offering memorandum dated April 12, 2006.

          “Free Writing Prospectus” shall have the meaning set forth in Rule 405 of the 1933
Act.

          “Holder” shall mean any Initial Purchaser, for so long as it owns any Registrable
Securities, and each of its successors, assigns and direct and indirect transferees who become
registered owners of Registrable Securities under the Indentures.

          “Indentures” shall mean, collectively, the Indenture relating to the 2011 Notes, dated
as of the date hereof, between the Company and Wells Fargo Bank, N.A., as Trustee, as the same may
be amended, supplemented, waived or otherwise modified from time to time in accordance with the
terms thereof, and the Indenture relating to the 2013 Notes, dated as of the date hereof, between
the Company and Wells Fargo Bank, N.A., as Trustee, as the same may be amended, supplemented,
waived or otherwise modified from time to time in accordance with the terms thereof.

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

          “Issuer Free Writing Prospectus” shall have the meaning set forth in Rule 433 of the
1933 Act.

          “Liquidated Damages” shall have the meaning set forth in Section 2.4.

          “Majority Holders” shall mean Holders holding over 50% of the aggregate principal
amount of the Notes outstanding; provided that, for the purpose of this definition, a holder of
shares of Common Stock into which the Notes were converted shall be deemed to hold an aggregate
principal amount of the Notes (in addition to the principal amount of Notes held by such holder)
equal to the product of (A) the quotient of (x) the number of such shares of Common Stock held by
such holder and (y) the conversion rate (as expressed in the number of shares of Common Stock
issuable per $1,000 principal amount of the Notes) in effect at the time of the conversion of the
Notes into such shares of Common Stock as determined in accordance with the Indenture and (B)
$1,000; provided, that whenever the consent or approval of the Majority Holders or of a specified
percentage of the Holders of Registrable Securities is required hereunder, Notes, or Common Stock
into which the Notes were converted, held by the Company or any Affiliate (as defined in the
Indentures) of the Company shall be disregarded in determining whether such consent or approval was
given by the Majority Holders or such specified percentage of the Holders of Registrable
Securities.

2

 

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

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

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

          “Registrable Securities” shall mean all or any of the Securities; provided, however,
that any such Securities shall cease to be Registrable Securities when (i) a Shelf Registration
Statement with respect to such Securities shall have become effective under the 1933 Act and such
Securities shall have been sold or transferred pursuant to such Shelf Registration Statement, (ii)
such Securities have been or may be sold or transferred to the public
pursuant to Rule 144 (or any
similar provision then in force, including Rule 144(k)) under the 1933 Act, or (iii) such
Securities shall have ceased to be outstanding.

          “Registration Default” shall have the meaning set forth in Section 2.4.

          “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock
exchange or National Association of Securities Dealers, Inc. (the “NASD”) registration and
filing fees, including, if applicable, the fees and expenses of any “qualified independent
underwriter” (and its counsel) that is required to be retained by any holder of Registrable
Securities in accordance with the rules and regulations of the NASD, (ii) all fees and expenses
incurred in connection with compliance with state securities or blue sky laws and compliance with
the rules of the NASD (including reasonable fees and disbursements of counsel for any underwriters
or Holders in connection with blue sky qualification of any of the Registrable Securities and any
filings with the NASD), (iii) all expenses of the Company in preparing or assisting in preparing,
word processing, printing and distributing any Shelf Registration Statement, any Prospectus, any
amendments or supplements thereto, any securities sales agreements and other documents relating to
the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing, if any, of any of the Registrable Securities on any securities
exchange or exchanges, (v) all rating agency fees, if any (vi) the fees and disbursements of
counsel for the Company and of the independent public accountants of the Company, including the
expenses of any special audits or “comfort” letters required by or incident to such performance and
compliance, (vii) the reasonable fees and expenses of the Trustee, and any escrow agent or
custodian, (viii) the reasonable fees and expenses (not to exceed $10,000) of a single counsel to
the Holders in connection with the Shelf Registration Statement, which counsel shall be selected by
the Majority Holders, and (ix) any fees and expenses of any special experts retained by the Company
in connection with any Shelf Registration Statement, but excluding any underwriting discounts and
commissions and transfer

3

 

taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder and,
except as provided under clause (viii) above, all expenses and fees for all counsel and other
professionals representing the Holders.

          “SEC” shall mean the Securities and Exchange Commission or any successor agency or
government body performing the functions currently performed by the United States Securities and
Exchange Commission.

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

          “Shelf Effectiveness Deadline” shall have the meaning set forth in Section 2.1(a).

          “Shelf Registration” shall mean a registration effected pursuant to Section 2.1.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the
Company pursuant to the provisions of Section 2.1 of this Agreement which covers all of the
Registrable Securities on an appropriate form under Rule 415 under the 1933 Act, or any similar
rule that may be adopted by the SEC, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all materials incorporated by reference therein; provided,
however, that a registration statement shall not be deemed a Shelf Registration Statement until
such time as it includes a Prospectus relating to the Securities.

          “Suspension Period” shall have the meaning set forth in Section 2.5.

          “Trustee” shall mean the trustee with respect to the Securities under the Indentures.

          “Underwriter” shall mean an underwriter, as defined in the 1933 Act and the rules and
regulations thereunder, of the Securities in connection with an offering thereof under a Shelf
Registration Statement.

          “Well-Known Seasoned Issuer” shall have the meaning set forth in Rule 405 of the 1933
Act.

2. Registration Under the 1933 Act.

          2.1 Shelf Registration.

     (a) The Company shall, at its cost, file with the SEC, and use its reasonable efforts
to cause to become effective, a Shelf Registration Statement relating to the offer and sale
of the Registrable Securities by the Holders that have provided the Questionnaire and the
other information pursuant to Section 2.1(c), no later than 270 days after the Closing Date
(the “Shelf Effectiveness Deadline”). If the Company is a Well-Known Seasoned
Issuer at the time of filing the Shelf Registration Statement with the SEC, such Shelf
Registration Statement shall be designated by the Company as an Automatic Shelf Registration
Statement.

4

 

     (b) The Company shall, at its cost, use its reasonable efforts, subject to Section 2.5,
to keep the Shelf Registration Statement continuously effective in order to permit the
Prospectus forming part thereof to be usable by Holders until such time as all of the
Securities cease to be Registrable Securities (the “Effectiveness Period”).

     (c) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement pursuant to
this Agreement unless the Holder furnishes to the Company a fully completed notice and
questionnaire in the form attached as Annex A to the Final Memorandum (the
“Questionnaire”) and such other information in writing as the Company may reasonably
request in writing for use in connection with the Shelf Registration Statement or Prospectus
included therein and in any application to be filed with or under state securities laws. At
least 30 days prior to the filing of the Shelf Registration Statement, the Company will
provide notice to the Holders of its intention to file the Shelf Registration Statement;
provided, however that if the Company elects to register the Registrable Securities pursuant
to a Prospectus to a Shelf Registration Statement that has already been declared effective,
the Company will provide notice to the Holders of its intention to file the initial
Prospectus at least 30 days prior to such filing. In order to be named as a selling
securityholder in the Shelf Registration Statement or Prospectus at the time of
effectiveness of the Shelf Registration Statement or such Prospectus, as applicable, each
Holder must no later than 20 days following notice by the Company of such filing, furnish in
writing the completed Questionnaire and such other information that the Company may
reasonably request in writing, if any, to the Company and the Company will include the
information from the completed Questionnaire and such other information, if any, in the
Shelf Registration Statement and the Prospectus, as necessary and in a manner, so that upon
effectiveness of the Shelf Registration Statement the Holder will be permitted to deliver
the Prospectus to purchasers of the Holder’s Registrable Securities. From and after the
date that the Shelf Registration Statement becomes effective, upon receipt of a completed
Questionnaire and such other information that the Company may reasonably request in writing,
if any, the Company will use its reasonable efforts to file any amendments or supplements to
the Shelf Registration Statement necessary for such Holder to be named as a selling
securityholder in the Prospectus contained therein to permit such Holder to deliver the
Prospectus to purchasers of the Holder’s Securities (subject to the Company’s right to
suspend the Shelf Registration Statement as described in Section 2.5 below). Holders that
do not deliver a completed written Questionnaire and such other information, as provided for
in this Section 2.1(c), will not be named as selling securityholders in the Prospectus.
Each Holder named as a selling securityholder in the Prospectus agrees to promptly furnish
to the Company in writing all information required to be disclosed in order to make
information previously furnished to the Company by the Holder not materially misleading and
any other information regarding such Holder and the distribution of such Holder’s
Registrable Securities as the Company may from time to time reasonably request in writing.

     (d) Each Holder agrees that if such Holder wishes to sell Registrable Securities
pursuant to a Shelf Registration Statement and related Prospectus it will do so only in
accordance with Section 2.1(c) and subject to Section 2.5. Each Holder agrees

5

 

not to sell any Registrable Securities pursuant to the Shelf Registration Statement
without delivering, or causing to be delivered, a Prospectus to the purchaser thereof and,
following termination of the Effectiveness Period, to notify the Company, within ten days of
a written request by the Company, of the amount of Registrable Securities sold pursuant to
the Shelf Registration Statement and, in the absence of a response within such period, the
Company may assume that all of such Holder’s Registrable Securities have been so sold.

     (e) The Company agrees that, unless it obtains the prior consent of the Holders of a
majority of the Registrable Securities that are registered under the Shelf Registration
Statement at such time or the consent of the managing underwriters in connection with any
underwritten offering of Registrable Securities, and each Holder agrees that, unless it
obtains the prior written consent of the Company and any such underwriters, it will not make
any offer relating to the Securities that would constitute an Issuer Free Writing
Prospectus, or that would otherwise constitute a Free Writing Prospectus required to be
filed with the SEC. The Company represents that any Issuer Free Writing Prospectus prepared
by it or authorized by it in writing for use by such Holder will not include any information
that conflicts with the information contained in the Shelf Registration Statement or the
Prospectus and, any such Issuer Free Writing Prospectus, when taken together with the
information in the Shelf Registration Statement and the Prospectus, will not include any
untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading.

          The Company agrees to supplement or amend the Shelf Registration Statement if required by the
1933 Act or the rules and regulations thereunder or by the instructions applicable to the
registration form used by the Company, or to the extent the Company does not reasonably object, as
reasonably requested by the Initial Purchasers with respect to information relating to such Initial
Purchasers or by the Trustee on behalf of the Holders covered by such Shelf Registration Statement
with respect to information relating to such Holders, and to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment promptly after its is used or filed with the
SEC.

     2.2 Expenses. The Company shall pay all Registration Expenses in connection
with the registration pursuant to Section 2.1. Each Holder shall pay all underwriting
discounts and commissions, agency fees, brokers commissions and transfer taxes, if any,
relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the
Shelf Registration Statement.

6

 

     2.3 Effectiveness. After a Shelf Registration Statement is effective, if the
offering of Registrable Securities pursuant to a Shelf Registration Statement is interfered
with by any stop order, injunction or other order or requirement of the SEC or any other
governmental agency or court, such Shelf Registration Statement will be deemed not to have
been effective during the period of such interference, until the offering of Registrable
Securities pursuant to such Shelf Registration Statement may legally resume.

     2.4 Interest. In the event that (a) a Shelf Registration Statement has not
become effective by the Shelf Effectiveness Deadline, (b) after the Shelf Registration
Statement has become effective, subject to Section 2.5, the Shelf Registration Statement
fails to be effective or usable by the Holders without being succeeded within seven business
days by a post-effective amendment or a report filed with the SEC pursuant to the 1934 Act
that cures the failure to be effective or usable or (c) the Shelf Registration Statement is
unusable by the Holders for any reason, and the number of days for which the Shelf
Registration Statement shall not be usable exceeds any Suspension Period permitted by
Section 2.5 hereunder (each such event being a “Registration Default”), additional
interest, as liquidated damages (“Liquidated Damages”), will accrue at a rate per
annum of 0.125% of the principal amount of the Notes then remaining for the first 90-day
period from the day following the Registration Default, and thereafter at a rate per annum
of 0.25% of the principal amount of the Notes then remaining; provided that, in no event
shall Liquidated Damages accrue at a rate per annum exceeding 0.25% of the principal amount
of the Notes then remaining; provided further that no Liquidated Damages shall accrue after
the second anniversary of the Closing Date; provided further that Liquidated Damages shall
not accrue under clause (b) and (c) above with respect to any Holder that (x) does not
submit a properly completed Questionnaire and other information, if any, requested pursuant
to Section 2.1(c) above, and (y) is not named as a selling securityholder in the Shelf
Registration Statement. Notwithstanding the foregoing, in no event will Liquidated Damages
be payable in connection with a Registration Default relating to a failure to register the
Common Stock into which the Notes are convertible; for the avoidance of doubt, if none of
the Securities are registered then Liquidated Damages only will be payable in connection
with the Registration Default relating to the failure to register the Notes. Upon the cure
of all Registration Defaults then continuing, the accrual of Liquidated Damages will
automatically cease and the interest rate borne by the Securities will revert to the
original interest rate at such time. Liquidated Damages shall be computed based on the
actual number of days elapsed in each 90-day period in which the Shelf Registration
Statement is not effective or is unusable. Holders who have converted Securities into
Common Stock will not be entitled to receive any Liquidated Damages with respect to such
Common Stock or the principal amount of the Notes converted.

          The Trustee shall be entitled, but shall not be obligated, on behalf of the Holders of
Registrable Securities, to seek any available remedy for the enforcement of this Agreement,
including for the payment of any Liquidated Damages. Notwithstanding the foregoing, the parties
agree that the sole monetary damages payable for a violation of the terms of this Agreement with
respect to which liquidated damages are expressly provided shall be such liquidated damages.
Nothing shall preclude a Holder of Registrable Securities from pursuing or obtaining specific
performance or equitable relief with regard to this Agreement. Each

7

 

obligation to pay Liquidated Damages shall be deemed to accrue from and including the day
following the Registration Default to but excluding the day on which the Registration Default is
cured.

          A Registration Default under clause (a) above shall be cured on the date that the Shelf
Registration Statement becomes effective. A Registration Default under clauses (b) or (c) above
shall be cured on the date an amended Shelf Registration Statement becomes effective or the Company
otherwise declares the Shelf Registration Statement and the Prospectus useable, as applicable.

          The parties agree that the Liquidated Damages provided for in this Section 2.4 constitute a
reasonable estimate of the damages that may be incurred by Holders of Registrable Securities and do
not constitute a penalty.

     2.5 Suspension. Notwithstanding any other provision hereof, the Company may
suspend the use of any Prospectus, without incurring or accruing any obligation to pay
Liquidated Damages pursuant to Section 2.4, for a period not to exceed 90 consecutive
calendar days or an aggregate of 120 calendar days in any twelve-month period (each, a
“Suspension Period”), if the Company shall have determined in good faith that
because of valid business reasons (not including avoidance of the Company’s obligations
hereunder), including without limitation plans for a registered public offering, an
acquisition or other proposed or pending corporate developments and similar events or
because of filings with the SEC, it is in the best interests of the Company to suspend such
use, and prior to suspending such use the Company provides the Holders with written notice
of such suspension, which notice need not specify the nature of the event giving rise to
such suspension. Each Holder shall keep confidential any communications received by it from
the Company regarding the suspension of the use of the Prospectus (including, without
limitation, the fact of the suspension), except as required by applicable law.

3. Registration Procedures.

          In connection with the obligations of the Company with respect to the Shelf Registration, the
Company shall:

     (a) at a reasonable time prior to filing the Shelf Registration Statement, any
Prospectus forming a part thereof, any amendment to the Shelf Registration Statement or
amendment or supplement to such Prospectus (other than amendments and supplements that do
nothing more than name Holders and provide information with respect thereto), furnish to
Banc of America and Morgan Stanley as representatives of the Initial Purchasers and one
special counsel to the Initial Purchasers copies of all such documents proposed to be filed
and use its reasonable efforts to reflect in each such document when so filed with the SEC
such comments as the Initial Purchasers and such special counsel to the Initial Purchasers
reasonably shall propose within three (3) Business Days of the delivery of such copies to
the Initial Purchasers and counsel to the Initial Purchasers. In addition, if any Holder
that has provided the Questionnaire and the other information required by Section 2.1(c)
shall so request in writing, a reasonable time prior to filing any

8

 

such documents, the Company shall furnish to such Holder copies of all such documents
proposed to be filed and use its reasonable efforts to reflect in each such document when so
filed with the SEC such comments as such Holder reasonably shall propose within three (3)
Business Days of the delivery of such copies to such Holder;

     (b) prepare and file with the SEC such amendments and post-effective amendments to the
Shelf Registration Statement as may be necessary under applicable law to keep the Shelf
Registration Statement effective for the Effectiveness Period, subject to Section 2.5; and
cause each Prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed in compliance with Rule 424 (or any similar provision then in
force) under the 1933 Act and use reasonable efforts to comply during the Effectiveness
Period with the provisions of the 1933 Act, the 1934 Act and the rules and regulations
thereunder required to enable the disposition of all Registrable Securities covered by the
Shelf Registration Statement in accordance with the intended method or methods of
distribution (as provided to the Company in the Questionnaires) by the selling Holders
thereof;

     (c) (i) notify each Holder of Registrable Securities of the filing of a Shelf
Registration Statement or any post-effective amendment to a Shelf Registration Statement and
of when any such Shelf Registration Statement or any post-effective amendment to a Shelf
Registration Statement has become effective; (ii) during the Effectiveness Period, furnish
to each Holder of Registrable Securities that has provided the Questionnaires and the
information required by Section 2.1(c) and to each underwriter of an underwritten offering
of Registrable Securities, if any, without charge, as many copies of each Prospectus,
including each preliminary Prospectus, and any amendment or supplement thereto and such
other documents as such Holder or underwriter may reasonably request in writing, including
financial statements and schedules and, if such Holder so requests, all exhibits thereto in
connection with the sale or other disposition of the Registrable Securities; and (iii)
subject to Section 2.5 and to any notice by the Company in accordance with Section 3(e) of
the existence of any fact of the kind described in Sections 3(e)(i), (ii), (iii), (iv) and
(v), hereby consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities that has provided the Questionnaire
and the other information required by Section 2.1(c) in connection with the offering and
sale of the Registrable Securities covered by such Prospectus or any amendment or supplement
thereto in the manner set forth therein;

     (d) use reasonable efforts to register or qualify or cooperate with the Holders in
connection with the registration or qualification (or exemption from such registration or
qualification) of the Registrable Securities under all applicable state securities or “blue
sky” laws of such jurisdictions as any Holder of Registrable Securities covered by a Shelf
Registration Statement and each underwriter of an underwritten offering of Registrable
Securities shall reasonably request in writing, and do any and all other acts and things
which may be reasonably necessary or advisable to enable each such Holder and underwriter to
consummate the disposition in each such jurisdiction of such Registrable Securities owned by
such Holder; provided, however, that the Company shall not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any

9

 

jurisdiction where it would not otherwise be required to qualify but for this Section
3(d), or (ii) take any action which would subject it to general service of process or
taxation in any such jurisdiction where it is not then so subject;

     (e) notify as promptly as reasonably practicable each Holder of Registrable Securities
under a Shelf Registration that has provided the Questionnaire and the other information
required by Section 2.1(c) and, if requested by such Holder, confirm such advice in writing
promptly (i) of any request, following the effectiveness of the Shelf Registration Statement
under the 1933 Act, by the SEC or any state securities authority for post-effective
amendments and supplements to a Shelf Registration Statement and Prospectus or for
additional information after the Shelf Registration Statement has become effective, (ii) of
the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Shelf Registration Statement or the initiation of any proceedings for
that purpose, (iii) of the occurrence (but not the nature of or details concerning) of any
event or the discovery of any facts during the period a Shelf Registration Statement is
effective which makes any statement made in such Shelf Registration Statement or the related
Prospectus untrue in any material respect or which requires the making of any changes in
such Shelf Registration Statement or Prospectus in order to make the statements therein not
misleading, (provided, however, that no notice by the Company shall be required pursuant to
this clause (iii) in the event that the Company either promptly files a Prospectus
supplement to update the Prospectus or a Form 8-K or other appropriate 1934 Act report that
is incorporated by reference into the Shelf Registration Statement, which, in either case,
contains the requisite information that results in such Shelf Registration Statement no
longer containing any untrue statement of material fact or omitting to state a material fact
necessary to make the statements therein not misleading), (iv) of the receipt by the Company
of any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose and (v) of any determination by the Company that a post-effective amendment
to such Shelf Registration Statement would be required by applicable law;

     (f) as promptly as reasonably practicable furnish to Banc of America and Morgan Stanley
as representatives of the Initial Purchasers and one special counsel to the Initial
Purchasers on behalf of the Holders (i) copies of any comment letters received from the SEC
with respect to a Shelf Registration Statement or any documents incorporated therein and
(ii) any other request by the SEC or any state securities authority for amendments or
supplements to a Shelf Registration Statement and Prospectus or for additional information
with respect to the Shelf Registration Statement and Prospectus;

     (g) use reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement at the earliest practicable moment or, if
any such order or suspension is made effective during any Suspension Period, at the earliest
practicable moment after the Suspension Period;

     (h) upon the occurrence of any event or the discovery of any facts, each as
contemplated by Sections 3(e)(i), (ii), (iii), (iv) and (v), as promptly as practicable
after the occurrence of such an event, use reasonable efforts to prepare a supplement or
post-

10

 

effective amendment to the Shelf Registration Statement or the related Prospectus or
any document incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus
will not contain at the time of such delivery any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. At such time as such public
disclosure is otherwise made or the Company determines that such disclosure is not
necessary, in each case to correct any misstatement of a material fact or to include any
omitted material fact, the Company agrees promptly to notify each Holder that has provided
the Questionnaire and the other information required by Section 2.1(c) of such determination
and to furnish each Holder such number of copies of the Prospectus as amended or
supplemented, as such Holder may reasonably request;

     (i) (i) use reasonable efforts to cause the Indentures to be qualified under the 1939
Act in connection with the registration of the Registrable Securities, (ii) cooperate with
the Trustee and the Holders to effect such changes to the Indentures as may be required for
the Indentures to be so qualified in accordance with the terms of the 1939 Act, and (iii)
execute, and use reasonable efforts to cause the Trustee to execute, all documents as may be
required to effect such changes, and all other forms and documents required to be filed with
the SEC to enable the Indentures to be so qualified in a timely manner;

     (j) enter into such customary agreements (on terms reasonably acceptable to the
Company) and take all other customary and appropriate actions in order to expedite or
facilitate the disposition of the Registrable Securities by the Holders thereof, including,
but not limited to:

     (i) obtaining opinions of counsel to the Company and updates thereof addressed
to each selling Holder and the underwriters, if any, covering the matters set forth
in the opinion of counsel to the Company delivered at the Closing Date;

     (ii) obtaining “comfort” letters and updates thereof from the Company’s
independent certified public accountants (and, if necessary, any other independent
certified public accountants of any subsidiary of the Company or of any business
acquired by the Company for which financial statements are, or are required to be,
included in the Shelf Registration Statement) addressed to the underwriters, if any,
and use reasonable efforts to have such letter addressed to the selling Holders of
Registrable Securities (to the extent consistent with Statement on Auditing
Standards No. 72 of the American Institute of Certified Public Accounts), such
letters substantially in the form and covering the matters covered in the comfort
letter delivered on the Closing Date;

     (iii) if an underwriting agreement is entered into, causing the same to set
forth indemnification provisions and procedures substantially equivalent to the
indemnification provisions and procedures set forth in Section 4 with respect to the
underwriters and all other parties to be indemnified pursuant to said Section

11

 

or, at the request of any underwriters, in the form customarily provided to
such underwriters in similar types of transactions; and

     (iv) delivering such documents and certificates as may be reasonably requested
and as are customarily delivered in similar offerings to the Holders of a majority
in principal amount of the Registrable Securities being sold and the managing
underwriters, if any.

The above shall be done only in connection with any underwritten offering of Registrable Securities
using such Shelf Registration Statement pursuant to an underwriting or similar agreement as and to
the extent required thereunder, and as reasonably requested by any of the parties thereto;
provided, however, that in no event will an underwritten offering of Registrable Securities be made
without the prior written agreement of the Company;

     (k) if reasonably requested in connection with a disposition of Registrable Securities,
make reasonably available for inspection during normal business hours by representatives of
the Holders of the Registrable Securities, any underwriters participating in any disposition
pursuant to a Shelf Registration Statement and any counsel or accountant retained by any of
the foregoing, all relevant financial and other records, pertinent corporate documents and
properties of the Company reasonably requested by any such persons, and cause the
appropriate officers, directors and designated employees of the Company to make reasonably
available for inspection during normal business hours all relevant information reasonably
requested by any such representative, underwriter, counsel or accountant in connection with
a Shelf Registration Statement, and make such representatives of the Company available for
discussion of such documents as shall be reasonably requested by the Initial Purchasers, in
each case as is customary for “due diligence” investigations; provided that such persons
shall first agree in writing with the Company that any information that is reasonably
designated by the Company as confidential at the time of delivery shall be kept confidential
by such persons and shall be used solely for the purposes of exercising rights under this
Agreement and such person shall not engage in trading any securities of the Company until
such material non-public information becomes properly publicly available, unless (i)
disclosure of such information is required by court or administrative order or is necessary
to respond to inquires of regulatory authorities, (ii) disclosure of such information is
required by law (including any disclosure requirements pursuant to federal securities laws
in connection with the filing of any Shelf Registration Statement or the use of any
Prospectus referred to in this Agreement upon a customary opinion of counsel for such
persons delivered and reasonably satisfactory to the Company), (iii) such information
becomes generally available to the public other than as a result of a disclosure or failure
to safeguard by any such person, or (iv) such information becomes available to any such
person from a source other than the Company and such source is not bound by a
confidentiality agreement or confidentiality obligations or duties; provided further, that,
the foregoing inspection and information gathering shall, to the greatest extent possible,
be coordinated on behalf of all the Holders and the other parties entitled thereto by
special counsel to the Holders;

12

 

The above shall be done only in connection with any underwritten offering of Registrable
Securities using such Shelf Registration Statement pursuant to an underwriting or similar
agreement as and to the extent required thereunder, and as reasonably requested by any of
the parties thereto;

     (l) use its commercially reasonable efforts to cause all Registrable Securities to be
listed on any securities exchange or inter-dealer quotation system on which similar
securities issued by the Company are then listed if requested by the Majority Holders, or if
requested by the underwriter or underwriters of an underwritten offering of Registrable
Securities, if any;

     (m) make generally available to its security holders, as soon as reasonably
practicable, earning statements covering at least 12 months (which need not be audited)
satisfying the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder; and

     (n) make a reasonable effort to provide such information as is required for any filings
required to be made with the National Association of Securities Dealers, Inc.

          Without limiting the provisions of Section 2.1(c), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing. Each Holder agrees promptly to furnish to the Company in writing all information required
to be disclosed in order to make the information previously furnished to the Company by such Holder
not misleading, any other information regarding such Holder and the distribution of such
Registrable Securities as may be required to be disclosed in the Prospectus or Shelf Registration
Statement under applicable law or pursuant to SEC comments and any information otherwise reasonably
required by the Company to comply with applicable law or regulations.

          Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event or the discovery of any facts, each of the kind described in Section 3(e)(i), (ii), (iii),
(iv) and (v), such Holder will forthwith discontinue disposition of Registrable Securities pursuant
to the Prospectus included in the Shelf Registration Statement until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 3(h) or written notice
from the Company that the Shelf Registration Statement is again effective and no amendment or
supplement is needed, and, if so directed by the Company, such Holder will deliver to the Company
(at the Company’s expense) all copies in such Holder’s possession, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable Securities at the
time of receipt of such notice.

          If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees
to sell such Holder’s Registrable Securities on the basis provided

13

 

     in any underwriting arrangements approved by the persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such underwriting
arrangements.

4. Indemnification; Contribution.

     
(a) Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Initial Purchaser, each Holder who provided the Questionnaire and the other information
to the Company in accordance with Section 2.1(c), each Underwriter and each of their
respective directors, officers and employees and agents and each Person, if any, who
controls such Initial Purchaser, Holder or Underwriter within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act (each of the foregoing is referred to herein as
an “indemnified party”) (i) against any loss, claim, damage, liability or expense, as
incurred, to which such indemnified party may become subject, insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises
out of or is based upon (x) any untrue statement or alleged untrue statement of a material
fact contained in the Shelf Registration Statement (or any amendment or supplement thereto),
including all documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact, in each case, necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, (y) any untrue statement or alleged untrue statement of a material fact
contained in any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto), including all documents incorporated therein by reference, or the omission or
alleged omission therefrom of a material fact, in each case, necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading or (z) any untrue statement or alleged untrue statement of a material fact
contained in any Issuer Free Writing Prospectus prepared by it or authorized by it in
writing for use by such Holder (or any amendment or supplement thereto), or the omission or
alleged omission therefrom of a material fact, in each case, necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; (ii) against any and all loss, liability, claim, damage and expense whatsoever,
as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 4(e) below) any
such settlement is effected with the written consent of the Company; and (iii) against any
and all reasonable out-of-pocket expense whatsoever, as incurred (including the reasonable
fees and disbursements of counsel), reasonably incurred in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above; and to reimburse each
indemnified party for any and all expenses (including the fees and disbursements of counsel
chosen by the indemnified parties) as such expenses are reasonably incurred by such
indemnified party in connection with investigating, defending, settling,

14

 

compromising or paying any such loss, claim, damage, liability, expense or action;
provided, however, that the foregoing indemnity agreement shall not apply to any loss,
claim, damage, liability or expense to the extent, but only to the extent, arising out of or
based upon any untrue statement or alleged untrue statement or omission or alleged omission
made in reliance upon and in conformity with written information furnished to the Company by
any indemnified party expressly for use in the Shelf Registration Statement (or any
amendment or supplement thereto), any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or
supplement thereto). The indemnity agreement set forth in this Section 4(a) shall be in
addition to any liabilities that the Company may otherwise have.

     (b) Indemnification by the Holders. Each Holder who has provided the Questionnaire and
the other information to the Company in accordance with Section 2.1(c), severally, but not
jointly, agrees to indemnify and hold harmless the Company, each Initial Purchaser, each
Underwriter and the other selling Holders who have provided the Questionnaire and the other
information to the Company in accordance with Section 2.1(c), and each of their respective
directors, officers, employees and agents and each Person, if any, who controls the Company,
any Initial Purchaser, any Underwriter or any other selling Holder within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss,
liability, claim, damage and expense described in the indemnity contained in Section 4(a),
as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Shelf Registration Statement (or any amendment
thereto), any preliminary prospectus or the Prospectus included therein (or any amendment or
supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information with respect to such
Holder furnished to the Company by or on behalf of such Holder expressly for use in the
Shelf Registration Statement (or any amendment thereto), such preliminary prospectus or the
Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus
(or any amendment or supplement thereto).

     (c) Indemnification by the Initial Purchasers. Each Initial Purchaser, severally, but
not jointly, agrees to indemnify and hold harmless the Company, the Holders who have
provided the Questionnaire and the other information to the Company in accordance with
Section 2.1(c), and each of their respective directors, officers, employees and agents, and
each Person, if any, who controls the Company or any such Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in Section 4(a),
as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Shelf Registration Statement (or any amendment
thereto), any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) in
reliance upon and in conformity with written information furnished to the Company by or on
behalf of the Initial Purchasers expressly for use in the Shelf Registration Statement (or
any amendment thereto) or any preliminary prospectus or the Prospectus (or any amendment or

15

 

supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or
supplement thereto).

     (d) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 4 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 4, notify the indemnifying party in writing of the commencement
thereof, but the failure to so notify the indemnifying party (1) will not relieve it from
liability under paragraph (a), (b) or (c) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (2) will not, in any event,
relieve the indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a), (b) or (c) above. In case any such
action is brought against any indemnified party and such indemnified party seeks or intends
to seek indemnity from an indemnifying party, the indemnifying party will be entitled to
participate in, and, to the extent that it shall elect, jointly with all other indemnifying
parties similarly notified, by written notice delivered to the indemnified party promptly
after receiving the aforesaid notice from such indemnified party, to assume the defense
thereof with counsel reasonably satisfactory to such indemnified party; provided, however,
if the defendants in any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that a conflict may arise
between the positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party or parties. Upon receipt of notice from the
indemnifying party to such indemnified party of such indemnifying party’s election so to
assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 4 for any
legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the preceding sentence (it being understood, however, that
the indemnifying party shall not be liable for the expenses of more than one separate
counsel (other than local counsel), reasonably approved by the indemnifying party,
representing the indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the expense of
the indemnifying party.

     (e) Settlements. The indemnifying party under this Section 4 shall not be liable for
any settlement of any proceeding effected without its written consent, which shall not be
withheld unreasonably, but if settled with such consent or if there is a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any
loss, claim, damage, liability or expense by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party

16

 

shall have requested an indemnifying party to reimburse the indemnified party for fees
and expenses of counsel as contemplated by Section 4(d) hereof, the indemnifying party
agrees that it shall be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 30 days after receipt by
such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 45 days prior to such settlement
being entered into and (iii) such indemnifying party shall not have reimbursed the
indemnified party in accordance with such request prior to the date of such settlement. No
indemnifying party shall, without the prior written consent of the indemnified party, effect
any settlement, compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or could have been a
party and indemnity was or could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent (x) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such action,
suit or proceeding and (y) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

     (f) If the indemnification provided for in this Section 4 is for any reason unavailable
to or insufficient to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein, then each indemnifying party
shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and the Holders and
the Initial Purchasers on the other hand in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as well as any
other relevant equitable considerations.

     The relative fault of the indemnifying parties on the one hand and the indemnified parties and
the Initial Purchasers on the other hand shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by the Company, or by the Holders
or the Initial Purchasers and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section 4 shall be deemed
to include any reasonable out-of-pocket legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged
omission.

17

 

     Notwithstanding the provisions of this Section 4, no Initial Purchaser or Holder shall be
required to indemnify or contribute any amount in excess of the amount by which the total price at
which the Securities sold by such Initial Purchaser or Holder exceeds the amount of any damages
which such Initial Purchaser or Holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 4, each director, officer, employee and agent of any Initial
Purchaser or Holder, or each Person, if any, who controls any Initial Purchaser or Holder within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights
to contribution as such Initial Purchaser or Holder, and each director, officer, employee or agent
of the Company, and each Person, if any, who controls the Company within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company.

5. Miscellaneous.

     5.1 No Inconsistent Agreements. The Company has not entered into and the
Company will not after the date of this Agreement enter into any agreement with respect to
its securities which conflicts with the rights granted to the Holders of Registrable
Securities in this Agreement. The rights granted to the Holders hereunder do not for the
term of this Agreement conflict with the rights granted to the holders of the Company’s
other issued and outstanding securities under any such agreements.

     5.2 Amendments and Waivers. The provisions of this Agreement may not be
amended, qualified, modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written consent of
the Majority Holders; provided that, with respect to any matter that directly or indirectly
affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written
consent of each such Initial Purchaser against which such amendment, qualification,
supplement, waiver or consent is to be effective; provided, further, that no amendment,
qualification, supplement, waiver or consent with respect to Sections 2.4 and 4 hereof shall
be effective as against any Holder of Registered Securities unless consented to in writing
by such Holder; and provided, further, that the provisions of this Section 5.2 may not be
amended, qualified, modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written consent of
the Initial Purchasers and each Holder, except that any provision of this Section 5.2 which
provides that an amendment to this Agreement may be made upon the written consent of the
Majority Holders may itself be amended, qualified, modified or supplemented, and waivers or
consents to departures from any such provision may be given if the Company obtains the
written consent of the Majority Holders. Notwithstanding the foregoing (except the
foregoing provisos), (i) a waiver or consent to departure from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders whose Registrable
Securities are being sold

18

 

pursuant to a Shelf Registration Statement and that does not directly or indirectly
affect the rights of other Holders may be given by the Majority Holders, determined on the
basis of the Registrable Securities being sold rather than registered under such Shelf
Registration Statement and (ii) this Agreement may be amended by a written agreement between
the Company and Banc of America and Morgan Stanley, on behalf of the Initial Purchasers,
without the consent of the Holders of the Registrable Securities, in order to cure any
ambiguity or to correct or supplement any provision contained herein, provided that no such
amendment shall adversely affect the interest of the Holders of Registrable Securities.
Each Holder of Registrable Securities outstanding at the time of any amendment,
modification, waiver or consent pursuant to this Section 5.2, shall be bound by such
amendment, modification, waiver or consent, whether or not any notice or writing indicating
such amendment, modification, waiver or consent is delivered to such Holder.

     5.3 Notices. All notices, consents and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered first-class mail,
facsimile, or any courier guaranteeing overnight delivery (a) if to a Holder, at the most
current address given by such Holder to the Company in a Questionnaire or by means of a
notice given in accordance with the provisions of this Section 5.3, which address initially
is the address set forth in the Purchase Agreement with respect to the Initial Purchasers;
and (b) if to the Company, initially at the Company’s address set forth in the Purchase
Agreement, and thereafter at such other address of which notice is given in accordance with
the provisions of this Section 5.3.

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on the next
business day if timely delivered to an overnight courier.

          Copies of all such notices, demands, or other communications to any Holder shall be deemed to
have been duly given, if such notice has been duly given to the Trustee under the Indentures, at
the address specified in such Indentures.

     5.4 Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including,
without limitation and without the need for an express assignment, subsequent Holders;
provided that, nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Registrable Securities in violation of the terms of the Purchase Agreement or
the Indentures. If any transferee of any Holder shall acquire Registrable Securities, in
any manner, whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding such
Registrable Securities such person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement, including the
restrictions on resale set forth in this Agreement and, if applicable, the Purchase
Agreement, and such person shall be entitled to receive the benefits hereof.

19

 

     5.5 Third Party Beneficiaries. Each Initial Purchaser (even if such Initial
Purchaser is not a Holder of Registrable Securities) shall be a third party beneficiary to
the agreements made hereunder between the Company, on the one hand, and the Holders, on the
other hand, and shall have the right to enforce such agreements directly to the extent it
deems such enforcement necessary or advisable to protect its rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Initial Purchasers,
on the other hand, and shall have the right to enforce such agreements directly to the
extent it deems such enforcement necessary or advisable to protect its rights hereunder.

     5.6 Specific Enforcement. Without limiting the remedies available to the
Initial Purchasers and the Holders, the Company acknowledges that any failure by the Company
to comply with its obligations under Section 2.1 may result in material irreparable injury
to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that
it may not be possible to measure damages for such injuries precisely and that, in the event
of any such failure, any Initial Purchaser or any Holder may seek such relief as may be
required to specifically enforce the Company’s obligations under Sections 2.1.

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

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

     5.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICT OF LAWS THEREOF.

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

     5.11 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those
set forth or referred to herein with respect to the registration rights granted by the
Company with respect to the Registrable Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject matter.

20

 

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

	 	 	 	 	 
	 	Medtronic, Inc.

 	 
	 	By:  	/s/
Gary L. Ellis	 
	 	 	Name:  Gary L. Ellis	 	 
	 	 	Title:  Senior Vice
President and Chief Financial Officer	 	 
	 

	 	 	 	 	 
	 

	 	 	 	 
	Confirmed and accepted as	 	 
	     
of the date first above	 	 
	      written:	 	 
	 
	 	 	 	 
	BANC OF AMERICA SECURITIES LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	MORGAN STANLEY & CO. INCORPORATED	 	 
	 
	 	 	 	 
	By:
	 	/s/ Trevor R. Burgess	 	 
	 

	 	 	 	 
	 

	 	Name:  Trevor R. Burgess	 	 
	 

	 	Title:  Executive Director	 	 

21

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