Document:

Exhibit 4.2

 

EXECUTION COPY

 

BEST BUY CO., INC.

 

and

 

Wells Fargo Bank, N.A.,

as Trustee

 

First Supplemental Indenture

 

Dated as of June 24, 2008

 

 

6.75% Notes due 2013

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  1.01.

  	
  Definition
  Of Terms

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
  THE SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.01.

  	
  Designation

  	
  8

  
	
  Section
  2.02.

  	
  Principal
  Amount; Series Treatment for Additional Securities

  	
  13

  
	
  Section
  2.03.

  	
  Form of
  Securities; Global Form

  	
  13

  
	
  Section
  2.04.

  	
  Restrictive
  Legends

  	
  14

  
	
  Section
  2.05.

  	
  Transfer
  Restrictions

  	
  15

  
	
  Section
  2.06.

  	
  Registration,
  Transfer and Exchange

  	
  15

  
	
  Section
  2.07.

  	
  Restrictions
  on Transfer and Exchange

  	
  18

  
	
  Section
  2.08.

  	
  Restricted
  Regulation S Global Notes

  	
  19

  
	
  Section
  2.09.

  	
  Additional
  Interest

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.01.

  	
  Covenants

  	
  21

  
	
  Section
  3.02.

  	
  Offer To
  Repurchase Upon Change Of Control Triggering Event

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  
	
  REDEMPTION OF THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.01.

  	
  Optional
  Redemption by Company

  	
  22

  
	
  Section
  4.02.

  	
  Selection of
  Notes to Be Redeemed

  	
  23

  
	
  Section
  4.03.

  	
  Redemption
  Notice

  	
  23

  
	
  Section
  4.04.

  	
  Effect of
  Redemption Notice

  	
  24

  
	
  Section
  4.05.

  	
  Deposit of
  Redemption Price

  	
  24

  
	
  Section
  4.06.

  	
  Securities
  Redeemed in Part

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
  DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  5.01.

  	
  Defeasance
  By The Company

  	
  24

  

 

i

 

	
  ARTICLE 6

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.01.

  	
  Rule 144A
  Information; No Resales By Affiliates

  	
  25

  
	
  Section
  6.02.

  	
  Ratification
  Of Indenture

  	
  25

  
	
  Section
  6.03.

  	
  Trustee Not
  Responsible For Recitals

  	
  25

  
	
  Section
  6.04.

  	
  Governing
  Law

  	
  26

  
	
  Section
  6.05.

  	
  Separability

  	
  26

  
	
  Section
  6.06.

  	
  Counterparts

  	
  26

  

 

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Note

  	
   

  
	
  EXHIBIT B

  	
  Restricted
  Legend

  	
   

  
	
  EXHIBIT C

  	
  DTC Legend

  	
   

  
	
  EXHIBIT D

  	
  Regulation S
  Certificate

  	
   

  
	
  EXHIBIT E

  	
  Rule 144A
  Certificate

  	
   

  
	
  EXHIBIT F

  	
  Certificate
  of Beneficial Ownership

  	
   

  

 

 

SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”), dated as of
June 24, 2008, between Best Buy Co., Inc., a Minnesota corporation
(the “Company”), and Wells Fargo
Bank, N.A., as Trustee (the “Trustee”).

 

WHEREAS, the Company
and the Trustee executed and delivered an Indenture, dated as of June 24,
2008 (the “Base Indenture”), to
provide for the issuance by the Company from time to time of Securities (as
defined therein) to be issued in one or mores series as provided in the Base
Indenture;

 

WHEREAS, the
issuance and sale of $500,000,000 aggregate Principal Amount of an initial
series of the Securities of the Company under the Indenture, designated as its
6.75% Notes due 2013 (the “Notes”)
have been authorized by a written consent of the Board of Directors of the
Company;

 

WHEREAS,
the Company desires to issue $500,000,000 aggregate Principal Amount of the
Notes as of the date hereof;

 

WHEREAS, Sections
3.01 and 8.02 of the Base Indenture provide that the Company, when authorized
by a Board Resolution, and the Trustee may amend or supplement the Base
Indenture to provide for the issuance of and to establish the form or terms and
conditions of Securities of any series as permitted by the Base Indenture;

 

WHEREAS, the Company
desires to establish the form, terms and conditions of the Notes;

 

WHEREAS, all things
necessary to make this First Supplemental Indenture a valid and legally binding
supplement to the Base Indenture according to its terms and the terms of the
Base Indenture have been done;

 

WHEREAS,
the Company has delivered to the Trustee an Officer’s Certificate pursuant to Section 8.04
of the Base Indenture to the effect that the execution and delivery of the
First Supplemental Indenture is authorized or permitted under the Base
Indenture and that all conditions precedent provided for in the Base Indenture
to the execution and delivery of this First Supplemental Indenture to be
complied with by the Company have been complied with; and

 

WHEREAS,
the Company has requested that the Trustee execute and deliver this First
Supplemental Indenture.

 

NOW, THEREFORE:

 

In consideration of the premises stated
herein and the purchase of the Notes by the Holders thereof, the Company and
the Trustee mutually covenant and agree for the equal and proportionate benefit
of the respective Holders from time to time of the Notes as follows:

 

 

ARTICLE 1

DEFINITIONS

 

Section 1.01.  Definition Of Terms.  Unless the context otherwise
requires:

 

(a)           a term defined in the
Base Indenture has the same meaning when used in this First Supplemental
Indenture unless the definition of such term is amended and supplemented
pursuant to this First Supplemental Indenture;

 

(b)           a term defined in this
First Supplemental Indenture has the same meaning throughout;

 

(c)           the singular includes
the plural, and vice versa;

 

(d)           except as otherwise
indicated, a reference to a Section or Article is to a Section or
Article of this First Supplemental Indenture;

 

(e)           headings are for
convenience of reference only and do not affect interpretation;

 

(f)            the following terms
have the meanings given to them in this Section 1.01(f):

 

“Additional
Interest” means any increase in Interest set forth in Section 2(e) of
the Registration Rights Agreement.

 

“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.

 

“Certificate of Beneficial
Ownership” means a certificate substantially in the form of Exhibit F.

 

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

 

“Change of Control”
means the occurrence of any of the following:

 

(1)           the consummation of any
transaction (including, without limitation, any merger or consolidation) the
result of which is that any person (other than the Company or one of the
Company’s Subsidiaries) becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
the Company’s outstanding Voting

 

2

 

Stock or other Voting Stock
into which the Company’s Voting Stock is reclassified, consolidated, exchanged
or changed, measured by voting power rather than number of shares; provided, however, that a
person shall not be deemed beneficial owner of, or to own beneficially any securities,
(A) tendered pursuant to a tender or exchange offer made by or on behalf
of such person or any of such person’s affiliates until such tendered
securities are accepted for purchase or exchange thereunder or (B) if such
beneficial ownership (i) 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 (ii) is
not also then reportable on Schedule 13D (or any successor schedule) under the
Exchange Act;

 

(2)           the direct or indirect sale, transfer,
conveyance or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the
Company’s assets and the assets of the Company’s Subsidiaries, taken as a
whole, to one or more persons (other than to the Company or one of the Company’s
Subsidiaries); provided, however,
that none of the circumstances in this clause (2) shall be a Change of
Control if the persons that beneficially own the Company’s Voting Stock
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 that are entitled to vote generally in the
election of that person’s board of directors, managers or trustees immediately
after the transaction;

 

(3)           the Company consolidates with, or merges
with or into, any person or any such person consolidates with, or merges with
or into, the Company, in either case, pursuant to a transaction in which any of
the Company’s outstanding Voting Stock or the Voting Stock of such other person
is converted into or exchanged for cash, securities or other property, other
than pursuant to a transaction in which shares of the Company’s Voting Stock
outstanding immediately prior to the transaction constitute, or are converted
into or exchanged for, a majority of the Voting Stock of the surviving person
immediately after giving effect to such transaction;

 

(4)           the adoption of a plan relating to the
Company’s liquidation or dissolution; or

 

(5)           the first day on which a majority of the
members of the Company’s board of directors are not Continuing Directors.

 

Notwithstanding the foregoing, a transaction
shall not be deemed to involve a Change of Control if (a) the Company
becomes a direct or indirect wholly-owned subsidiary of a holding company (i.e., a parent company) and (b)(1) the direct or
indirect holders of the Voting Stock of such holding company immediately
following that transaction are substantially the same as the holders of the
Company’s Voting Stock immediately prior to that transaction or (2) immediately
following that transaction no person (other than a holding company

 

3

 

satisfying the requirements of
this sentence) is the beneficial owner, directly or indirectly, of more than
50% of the Voting Stock of such holding company; provided
that any series of related transactions shall be treated as a single
transaction.  The term “person,” as used
in this definition, has the meaning given thereto in Section 13(d)(3) of
the Exchange Act.

 

“Change of Control
Triggering Event” means, with respect to the Notes, the occurrence
of both a Change of Control and a Rating Event with respect to the Notes.

 

“Clearstream” means Clearstream Banking S.A. and its
successors.

 

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

 

“Comparable Treasury Price” means, with respect to any
Redemption Date, (A) the arithmetic average of four Reference Treasury
Dealer Quotations for such Redemption Date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (B) if the Company
obtains fewer than four such Reference Treasury Dealer Quotations, the
arithmetic average of all such quotations for such Redemption Date.

 

“Continuing Director” means, as of any date of determination,
any member of the Company’s Board of Directors who (1) was a member of
such Board of Directors on the Issue Date, (2) was nominated for election
to such Board of Directors with the approval of a committee of the Board of
Directors consisting of a majority of independent Continuing Directors or (3) was
nominated for election, elected or appointed to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such
Board of Directors at the time of such nomination, election or appointment
(either by a specific vote or by approval of the Company’s proxy statement in
which such member was named as a nominee for election as a director, without
objection to such nomination).

 

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

 

“Euroclear”
means Euroclear Bank, S.A./N.V., and its successors or assigns, as operator of
the Euroclear System.

 

“Exchange
Notes” means the debt securities of the Company to be offered to
Holders in exchange for the Initial Notes pursuant to the Exchange Offer or
otherwise pursuant to a Registration of the Exchange Notes containing terms
identical to the Notes for which they are exchanged (except that (i) interest

 

4

 

thereon shall accrue from the
last date on which interest was paid on the corresponding series of Notes
(unless the Exchange Note is issued after an interest record date and prior to
the corresponding Interest Payment Date, in which case interest shall accrue
from such Interest Payment Date) or, if no such interest has been paid, from
the first date that the corresponding series of Notes was originally issued
under the Base Indenture as supplemented by this First Supplemental Indenture
and (ii) the provisions relating to Additional Interest (other than any
Additional Interest accrued through the date of issuance of such Exchange
Notes) shall be eliminated.

 

“Exchange
Offer” means the exchange offer by the Company of Exchange Notes for
Initial Notes pursuant to the Registration Rights Agreement.

 

“Exchange
Offer Registration Statement” means a registration statement
relating to an Exchange Offer on an appropriate form and all amendments and
supplements to such registration statement, in each case including the
prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

“Global Note”
has the meaning set forth in Section 2.03(b).

 

“Indenture”
means the Base Indenture as supplemented by this First Supplemental Indenture.

 

“Independent Investment
Banker” means one of the Reference Treasury Dealers appointed by the
Company after consultation with the Trustee; provided,
however, that if such Reference Treasury
Dealer ceases to be a Primary Treasury Dealer, the Company shall substitute
another Primary Treasury Dealer.

 

“Initial
Notes” means (i) all Notes issued on the Issue Date, (ii) any
additional Notes of this series issued under Section 2.02 in an offering
not registered under the Securities Act and (iii) any Notes issued in
replacement therefor, but not including any Exchange Notes issued in exchange
therefor.

 

“Initial Purchasers”
means J.P. Morgan Securities Inc., Goldman, Sachs & Co., and the other
initial purchasers named in the Purchase Agreement, dated June 19, 2008,
between the Company and J.P. Morgan Securities Inc. and Goldman, Sachs &
Co., as representatives of the initial purchasers.

 

“Interest”
means, with respect to the Notes, any interest payable on the Notes, including
Additional Interest, if any.

 

“Interest
Payment Date” means each January 15 and July 15,
commencing on January 15, 2009.

 

“Investment Grade Rating”
means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and
BBB- (or the equivalent) by S&P, and the

 

5

 

equivalent investment grade
credit rating from any additional Rating Agency or Rating Agencies selected by
the Company.

 

“Issue Date”
means the first date that Notes were originally issued under this First
Supplemental Indenture.

 

“Non-U.S. Person”
means a Person that is not a U.S. person, as defined in Regulation S.

 

“Notes”
has the meaning set forth in the recitals above.

 

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

 

“Rating Event”
means the rating on the Notes is lowered independently by each of the Rating
Agencies and the Notes are rated below an Investment Grade Rating by each of
the Rating Agencies on any day during the period commencing on the earlier of
the date of the first public notice of the occurrence of a Change of Control or
the Company’s intention to effect a Change of Control and ending 60 days
following consummation of such Change of Control (which period shall be
extended so long as the rating of the Notes is under publicly announced
consideration for a possible downgrade by any of the Rating Agencies).

 

“Redemption Date”
has the meaning assigned in Section 4.01.

 

“Redemption Notice” has the meaning set
forth in Section 4.03.

 

“Redemption Price” has the meaning set forth in Section 4.01.

 

“Reference Treasury Dealer” means either of J.P. Morgan
Securities Inc. and Goldman, Sachs & Co. and their affiliates, which
are primary U.S. Government securities dealers in New York City, and their
respective successors plus two other primary U.S. Government securities dealers
in New York City selected by the Company; provided, however, that if any of the foregoing or their affiliates
shall cease to be a primary U.S. Government securities dealer in New York City
(a “Primary Treasury Dealer”), the
Company shall substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to
each Reference Treasury Dealer and any Redemption Date, the arithmetic average,
as determined by the Company, of the bid and asked prices for the Comparable

 

6

 

Treasury Issue
(expressed in each case as a percentage of its Principal Amount) quoted in
writing to the Company by such Reference Treasury Dealer at 3:30 p.m. (New
York City time) on the third Business Day preceding such Redemption Date.

 

“Registration”
means a registered Exchange Offer for the Notes by the Company or other
registration of the Notes under the Securities Act pursuant to and in
accordance with the terms of the Registration Rights Agreement.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated as
of June 24, 2008, between the Company and J.P. Morgan Securities Inc. and
Goldman, Sachs & Co., as Representatives of the several Initial
Purchasers.

 

“Registration
Statement” means the Registration Statement to be filed pursuant to
and as defined in the Registration Rights Agreement.

 

“Regular Record Date”
means, for the interest payable on any Interest Payment Date, the close of
business on January 1 or July 1 (whether or not a Business Day)
immediately preceding such Interest Payment Date.

 

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

 

“Regulation S Certificate”
means a certificate substantially in the form of Exhibit D hereto.

 

“Regulation S Global Note”
means a Global Note representing Notes issued and sold pursuant to Regulation
S.

 

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

 

“Restricted Period”
means (i) two years in the case of a U.S. Global Note or (ii) the
relevant 40-day distribution compliance period as defined in Regulation S in
the case of a Regulation S Global Note.

 

“Restricted Regulation S
Global Note” means a Regulation S Global Note that bears the
Restricted Legend.

 

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

 

“Rule 144A Certificate”
means (i) a certificate substantially in the form of Exhibit E hereto
or (ii) a written certification addressed to the Company and the Trustee
to the effect that the Person making such certification (x) is acquiring
such Note (or beneficial interest) for its own account or one or more accounts
with respect to which it exercises sole investment discretion and that it and
each such account is a “qualified institutional buyer” within the meaning of Rule 144A,
(y) is aware that the transfer to it or exchange, as applicable, is being
made in reliance upon the exemption from the provisions of Section 5 of
the Securities Act

 

7

 

provided by Rule 144A, and
(z) acknowledges that it has received such information regarding the
Company as it has requested pursuant to Rule 144A(d)(4) or has
determined not to request such information.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Substitute Rating Agency” means a “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under
the Exchange Act selected by the Company (pursuant to a Board Resolution and
reasonably acceptable to the Trustee) as a replacement agency for Moody’s or
S&P, or both of them, as the case may be.

 

“Treasury Rate” means, with respect to any Redemption Date,
the rate per year equal to the semiannual equivalent or interpolated (on a day
count basis) yield to maturity of the Comparable Treasury Issue, assuming a
price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such Redemption
Date.

 

“Unrestricted Regulation S
Global Note” means a Regulation S Global Note that does not bear the
Restricted Legend.

 

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

 

ARTICLE 2

THE SECURITIES

 

Section 2.01.  Designation.

 

(a)           The Company hereby
establishes a series of Securities designated the “6.75% Notes due 2013” for
issuance under the Indenture.  The Stated
Maturity of the Notes shall be July 15, 2013.

 

(b)           Interest Rate.

 

(i)            The rate at which the
Notes shall bear interest shall be 6.75% per annum, subject to Section 2.01(b)(ii);
the date from which interest shall accrue on the Notes shall be June 24,
2008, or the most recent Interest Payment Date to which interest has been paid
or provided for; the Interest Payment Dates for the Notes shall be January 15
and July 15 of each year, beginning on January 15, 2009; the interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date, shall be paid, in immediately available funds, to the Persons in whose
names the Notes (or one or more predecessor Notes) is registered at the close
of business on the Regular Record Date for such interest, which shall be the January 1
or July 1, as the case may be, next preceding such

 

8

 

Interest
Payment Date, without regard to any transfer or exchange of such Notes
subsequent to the Regular Record Date and prior to such Interest Payment
Date.  Any such interest not punctually
paid or duly provided for shall, at the Company’s option, cease to be payable
to the respective Holders on such Regular Record Date, and such defaulted
interest may be paid to the Persons in whose names the Notes (or one or more
predecessor Notes) are registered at the close of business on a special record
date, which date may not be less than 10 days prior to the date of payment of
such defaulted interest, for the payment of such defaulted interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Notes not less than
15 days prior to such special record date, or may be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Base Indenture.
Payment of principal and interest on the Notes shall be made at the Corporate
Trust Office of the Trustee or such other office or agency of the Company as
may be designated for such purpose, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that each installment of interest and principal on
the Notes may at the Company’s option with written notice to the Trustee be
paid in immediately available funds by transfer to an account maintained by the
payee located in the United States, provided such
payee has given written wire transfer instructions to the Company.

 

(ii)           The interest rate
payable on the Notes shall be subject to adjustments from time to time if
either Moody’s or S&P, or in either case, a Substitute Rating Agency
thereof, downgrades (or subsequently upgrades) the rating assigned to the
Notes, in the manner described below.

 

(A)          If the rating of the
Notes from Moody’s or any Substitute Rating Agency thereof is decreased to a
rating set forth in the immediately following table, the interest rate on the
Notes shall increase from the interest rate payable on the Notes on the Issue
Date by the percentage points set forth below opposite that rating:

 

	
  Moody’s Rating*

  	
   

  	
  Percentage Points

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ba1

  	
   

  	
  0.25

  	
   

  
	
  Ba2

  	
   

  	
  0.50

  	
   

  
	
  Ba3

  	
   

  	
  0.75

  	
   

  
	
  B1 or below

  	
   

  	
  1.00

  	
   

  

 

* Including the equivalent ratings of any
Substitute Rating Agency.

 

9

 

(B)           If the rating of the
Notes from S&P or any Substitute Rating Agency thereof is decreased to a
rating set forth in the immediately following table, the interest rate on the
Notes shall increase from the interest rate payable on the Notes on the Issue
Date by the percentage points set forth below opposite that rating:

 

	
  S&P Rating*

  	
   

  	
  Percentage Points

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BB+

  	
   

  	
  0.25

  	
   

  
	
  BB

  	
   

  	
  0.50

  	
   

  
	
  BB-

  	
   

  	
  0.75

  	
   

  
	
  B+ or below

  	
   

  	
  1.00

  	
   

  

 

* Including the equivalent ratings of any
Substitute Rating Agency.

 

(C)           If at any time the
interest rate on the Notes has been adjusted upward and either Moody’s or
S&P (or, in either case, a Substitute Rating Agency thereof), as the case
may be, subsequently increases its rating of the Notes to any of the ratings
set forth in the tables above, the interest rate on the Notes shall be
decreased such that the interest rate for the Notes equals the interest rate
payable on the Notes on the Issue Date plus the applicable percentage points
set forth opposite the ratings in the tables above in effect immediately
following the increase. If Moody’s or any Substitute Rating Agency thereof
subsequently increases its rating of the Notes to Baa3 (or its equivalent, in
the case of a Substitute Rating Agency) or higher and S&P or any Substitute
Rating Agency thereof increases its rating to BBB- (or its equivalent, in the
case of a Substitute Rating Agency) or higher, the interest rate on the Notes
shall be decreased to the interest rate payable on the Notes on the Issue Date.

 

(D)          Each adjustment required
by any decrease or increase in a rating set forth above, whether occasioned by
the action of Moody’s or S&P (or, in either case, any Substitute Rating
Agency thereof), shall be made independent of any and all other adjustments. In
no event shall (1) the interest rate on the Notes be reduced to below the
interest rate payable on the Notes on the Issue Date or (2) the total increase
in the interest rate on the Notes exceed 2.00 percentage points above the
interest rate payable on the Notes on the Issue Date.

 

(E)           No adjustments in the
interest rate of the Notes shall be made solely as a result of a Rating Agency
ceasing to

 

10

 

provide a rating of the Notes. If at any time
less than two Rating Agencies provide a rating of the Notes for reason beyond
the Company’s control, the Company shall use its commercially reasonable
efforts to obtain a rating of the Notes from a Substitute Rating Agency, to the
extent one exists, and if a Substitute Rating Agency exists, for purposes of
determining any increase or decrease in the interest rate on the Notes pursuant
to the table above (x) such Substitute Rating Agency shall be substituted
for the last Rating Agency to provide a rating of the Notes but which has since
ceased to provide such rating, (y) the relative ratings scale used by such
Substitute Rating Agency to assign ratings to senior unsecured debt shall be
determined in good faith by an independent investment banking institution of
national standing appointed by the Company and, for purposes of determining the
applicable ratings included in the applicable table in Section 2.01(b)(ii)(A) or
2.01(b)(ii)(B) with respect to such Substitute Rating Agency, such ratings
shall be deemed to be the equivalent ratings used by Moody’s or S&P, as
applicable, in such table and (z) the interest rate on the Notes shall
increase or decrease, as the case may be, such that the interest rate equals
the interest rate payable on the Notes on the Issue Date plus the appropriate
percentage points, if any, set forth opposite the rating from such Substitute
Rating Agency in the applicable table in Section 2.01(b)(ii)(A) or
2.01(b)(ii)(B) (taking into account the provisions of clause (y) above)
(plus any applicable percentage points resulting from a decreased rating by the
other Rating Agency).

 

(F)           For so long as only one
Rating Agency provides a rating of the Notes, any subsequent increase or
decrease in the interest rate of the Notes necessitated by a reduction or
increase in the rating by such Rating Agency shall be twice the percentage
points set forth in the applicable table above. For so long as no Rating Agency
provides a rating of the Notes, the interest rate on the Notes shall increase
to, or remain at, as the case may be, 2.00 percentage points above the interest
rate payable on the Notes on the Issue Date.

 

(G)           The interest rate on
the Notes shall permanently cease to be subject to any adjustment described in
this Section 2.01(b)(ii) (notwithstanding any subsequent decrease in
the ratings by either or both Rating Agencies) if the Notes become rated A2 and
A (or its equivalent, in the case of a Substitute Rating Agency) or higher by
Moody’s and S&P, respectively (or, in either case, any Substitute Rating
Agency thereof), or one of these ratings if the Notes are only rated by one
Rating Agency.

 

11

 

(H)          Any interest rate
increase or decrease described in this Section 2.01(b)(ii) shall take
effect from the first day of the interest period during which a rating change
requires an adjustment in the interest rate. If Moody’s or S&P or any
Substitute Rating Agency thereof changes its rating of the Notes more than once
during any particular interest period, the last change by such agency during
such period shall control for purposes of any interest rate increase or
decrease with respect to the Notes described above relating to such Rating
Agency’s action.

 

(I)            If the interest rate
payable on the Notes is increased as described in this Section 2.01(b)(ii),
then the term “interest,” as used in this First Supplemental Indenture, the
Base Indenture and the Notes, shall be deemed to include any such additional
interest unless the context otherwise requires.

 

(J)            The Company shall
deliver to the Trustee, and Paying Agent, if the Trustee shall not then be
acting as Paying Agent, within five calendar days after either Moody’s or S&P
or any Substitute Rating Agency thereof downgrades, or subsequently upgrades,
the rating assigned to the Notes as described by this Section 2.01(b)(ii),
an Officer’s Certificate stating (i) that the rating downgrade, or
subsequent upgrade, as the case may be, has occurred and (ii) the current
rating or ratings upon which the interest rate payable on the Notes shall be
based.

 

(c)           The Notes are not
subject to any sinking fund.

 

(d)           Interest (including
Additional Interest) on the Notes shall be computed on the basis of a 360-day
year consisting of twelve 30-day months and, in the case of an incomplete
month, the number of days elapsed.

 

(e)           The Notes shall be
issuable in registered form, without coupons, in denominations of $2,000 and
any integral multiples of $1,000 in excess thereof.

 

(f)            The principal of and
premium, if any, and interest on the Notes shall be payable at the office or
agency of the Company designated for that purpose as the Payment Office, as
provided in Section 4.05 of the Base Indenture; provided,
however, that interest may be payable at the option of the Company
by check mailed to the address of the Person entitled thereto as such address
shall appear on the Security Register on the record date for such interest
payment.

 

(g)           The currency of
denomination of the Notes shall be United States Dollars. Payment of principal
of and premium, if any, and interest on the Notes shall be made in United
States Dollars.

 

12

 

Section 2.02.  Principal
Amount; Series Treatment for Additional Securities.

 

(a)           The Notes shall be initially
limited to an aggregate principal amount of $500,000,000, except for Notes
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Notes pursuant to Sections 3.08, 3.09, 3.11 or 8.02
of the Base Indenture.  The Company may,
without notice to or the consent of the Holders of the outstanding Notes, issue
additional Notes of the same tenor as the Notes by Company Order, so that such
additional Notes and the outstanding Notes shall form a single series of
Securities under the Base Indenture as supplemented by this First Supplemental
Indenture.

 

(b)           Any additional Notes issued
under Section 2.02(a) shall have the same form and terms in all
respects as the outstanding Notes (other than the date of issuance and except
that interest shall accrue on the additional Notes from the most recent date to
which interest has been paid on the Notes or, if no interest has been paid on
the Notes, from the first date that the Notes were originally issued under this
First Supplemental Indenture), including the same right to receive accrued and
unpaid interest.

 

(c)           For all purposes of the
Indenture, all Notes, whether Initial Notes, Exchange Notes or additional Notes
issued under Section 2.02(a) shall constitute one series of Notes and
shall vote together as one series of Notes.

 

Section 2.03.  Form of Securities;
Global Form.

 

(a)           The Notes shall be
substantially in the form of Exhibit A hereto.  The terms and provisions contained in the
form of Notes set forth in Exhibit A shall constitute, and are hereby
expressly made, a part of the Base Indenture as supplemented by this First
Supplemental Indenture.

 

Any of the Notes may have such letters, numbers or
other marks of identification and such notations, legends, endorsements or
changes as the officers executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent with the
provisions of the Base Indenture, or as may be required by the Depositary or as
may be required for the Initial Notes to be tradeable on any market developed
for trading of securities pursuant to Rule 144A or as may be required to
comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange
or automated quotation system on which the Notes may be listed, or to conform
to usage, or to indicate any special limitations or restrictions to which any
particular Notes are subject.

 

(b)           So long as any Notes of this
series are eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, or otherwise contemplated by Section 3.08(b) of
the Base Indenture, all of the Notes of this series shall be represented by one
or more Notes in global form registered in the

 

13

 

name of the Depositary or
the nominee of the Depositary (each and collectively, the “Global Note”).  The transfer and exchange of beneficial
interests in any such Global Note shall be effected through the Depositary in
accordance with the Indenture and the applicable procedures of the Depositary.  Except as provided in Section 3.08(b) of
the Base Indenture, beneficial owners of a Global Note shall not be entitled to
have certificates registered in their names, shall not receive or be entitled
to receive physical delivery of certificates in definitive form and shall not
be considered holders of such Global Note.

 

Any Global Note shall represent the outstanding
Notes and 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
increased or reduced to reflect redemptions, transfers or exchanges permitted
hereby.  Any endorsement 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 such manner and upon
instructions given by the Holder of such Notes in accordance with the Base
Indenture.

 

Section 2.04.  Restrictive
Legends.

 

(a)           Except as otherwise provided
in Section 2.04(e), each Initial Note or additional Note issued under Section 2.02(a)
(other than an Unrestricted Regulation S Note) shall bear the Restricted
Legend.

 

(b)           Each Global Note, whether or
not an Initial Note or additional Note issued under Section 2.02(a), shall
bear the DTC Legend.

 

(c)           Each Restricted Regulation S
Global Note shall bear the Restricted Legend.

 

(d)           Initial Notes and additional
Notes issued under Section 2.02(a) offered and sold in reliance on
Regulation S shall be issued as provided in Section 2.08.

 

(e)           (i) If the Company determines
(upon the advice of counsel and such other certifications and evidence as the
Company may reasonably require) that a Note is eligible for resale pursuant to Rule 144
under the Securities Act (or a successor rule) and that the Restricted Legend is
no longer necessary or appropriate in order to ensure that subsequent transfers
of the Note (or a beneficial interest therein) are effected in compliance with
the Securities Act; or (ii) or after an Initial Note is (x) subject
to an effective registration statement under the Securities Act, pursuant to
the Registration Rights Agreement or otherwise, or (y) exchanged for an
Exchange Note, the Company may, subject to the provision of an Officer’s
Certificate and an Opinion of Counsel in accordance with Section 14.05 of
the Base Indenture, instruct the Trustee to cancel such Note and issue to the
Holder thereof (or to its transferee) a new Note of like tenor and

 

14

 

amount, registered in the
name of the Holder thereof (or its transferee), that does not bear the
Restricted Legend, and the Trustee shall comply with such instruction.

 

Section 2.05.  Transfer
Restrictions.

 

(a)           By its acceptance of any
Note bearing the Restricted Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set forth in this First Supplemental
Indenture and in the Restricted Legend and agrees that it shall transfer such
Note only as provided in this First Supplemental Indenture and the Restricted
Legend. The Company and the Trustee as Registrar shall not register a transfer
of any Note unless such transfer complies with the restrictions on transfer of
such Note set forth in this First Supplemental Indenture and the Restricted
Legend. In connection with any transfer of Notes, each Holder agrees by its
acceptance of the Notes to furnish the Trustee as Registrar or the Company such
certifications, legal opinions or other information as either of them may
reasonably require to confirm that such transfer is being made pursuant to an
exemption from, or a transaction not subject to, the registration requirements
of the Securities Act; provided that
the Trustee shall not be required to determine (but may rely on a determination
made by the Company with respect to) the sufficiency of any such
certifications, legal opinions or other information.

 

The Trustee shall retain copies of all letters,
notices and other written communications received pursuant to the Base
Indenture or this Section 2.05(a). 
The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon
the giving of reasonable written notice to the Trustee.

 

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

 

Section 2.06.  Registration, Transfer and
Exchange.

 

(a)           The Notes shall be issued in
registered form only, without coupons, and except under the circumstances
described in Section 2.06(b)(iv), the Notes shall be issued in global form
only.  The Company shall cause the
Trustee to maintain the Security Register of the Notes, for registering the
record ownership of Notes by the Holders thereof and transfers and exchanges of
the Notes.

 

15

 

(b)           (i)   Each
Global Note shall be registered in the name of the Depositary or its nominee
and, so long as DTC is serving as the Depositary thereof, shall bear the DTC
Legend.

 

(ii)           Each Global Note shall be delivered to the Trustee
as custodian for the Depositary. Transfers of a Global Note (but not a
beneficial interest therein) shall be limited to transfers thereof in whole,
but not in part, to the Depositary, its successors or their respective
nominees, except as set forth in Section 2.06(b)(iv).

 

(iii)          Agent Members shall have no rights under the
Indenture with respect to any Global Note held on their behalf by the
Depositary, and the Depositary 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,
the Depositary or its nominee may grant proxies and otherwise authorize any
Person (including any Agent Member and any Person that holds a beneficial
interest in a Global Note through an Agent Member) to take any action which a
Holder is entitled to take under the Indenture or the Notes, and nothing herein
shall 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
security.

 

(iv)          If (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for a Global Note and a
successor depositary is not appointed by the Company within 90 days of the
notice or (y) an Event of Default has occurred and is continuing and the
Trustee has received a request from the Depositary, the Trustee shall promptly
exchange each beneficial interest in each Global Note for one or more
Certificated Notes in authorized denominations having an equal aggregate
principal amount registered in the name of the owner of such beneficial
interest, as identified to the Trustee by the Depositary, and thereupon each
Global Note shall be deemed canceled. If a Global Note does not bear the
Restricted Legend, then the Certificated Notes issued in exchange therefor
shall not bear the Restricted Legend. If a Global Note bears the Restricted
Legend, then the Certificated Notes issued in exchange therefor shall bear the
Restricted Legend; provided that
any Holder of any such Certificated Note issued in exchange for a beneficial
interest in a Restricted Regulation S Global Note shall have the right upon
presentation to the Trustee of a duly completed Certificate of Beneficial
Ownership after the Restricted Period to exchange such Certificated Note for a
Certificated Note of like tenor and amount that does not bear the Restricted
Legend, registered in the name of such Holder.

 

(c)           Each Certificated Note
issued pursuant to Section 2.06(b)(iv) shall be registered in the
name of the Holder thereof or its nominee.

 

16

 

(d)           A Holder may transfer a Note
(or a beneficial interest therein) to another Person or exchange a Note (or a
beneficial interest therein) for another Note or Notes of any authorized
denomination by presenting to the Trustee a written request therefor stating the
name of the proposed transferee or requesting such an exchange, accompanied by
any certification, opinion or other document required by Section 2.07. The
Trustee shall promptly register any transfer or exchange that meets the
requirements of this Article 2 by noting the same in the register
maintained by the Trustee for the purpose; provided that:

 

(i)            no transfer or exchange shall be effective until it
is registered in such register, and

 

(ii)           the Trustee shall not be required (x) to issue,
register the transfer of or exchange any Note for a period of 15 days before a
selection of Notes to be redeemed or purchased pursuant to a Change of Control
Offer, (y) to register the transfer of or exchange any Note so selected
for redemption or purchase in whole or in part, except, in the case of a
partial redemption or purchase, that portion of any Note not being redeemed or
purchased, or (z) if a redemption or a purchase pursuant to a Change of
Control Offer is to occur after a Regular Record Date but on or before the
corresponding Interest Payment Date, to register the transfer of or exchange
any Note on or after the Regular Record Date and before the date of redemption
or purchase. Prior to the registration of any transfer, the Company, the
Trustee and their agents shall treat the Person in whose name any Note is
registered as the owner and Holder thereof for all purposes (whether or not the
Note is overdue), and shall not be affected by notice to the contrary.

 

From time to time the Company shall execute and the
Trustee shall authenticate additional Notes as necessary in order to permit the
registration of a transfer or exchange in accordance with this Section 2.06.

 

No service charge shall be imposed in connection
with any transfer or exchange of any Note, but the Company may require payment
of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than a transfer tax or other similar
governmental charge payable upon exchange pursuant to Section 2.06(b)(iv)).

 

(e)           (i) Global Note to Global Note. If a beneficial interest in a
Global Note is transferred or exchanged for a beneficial interest in another
Global Note, the Trustee shall (x) record a decrease in the principal
amount of the Global Note being transferred or exchanged equal to the principal
amount of such transfer or exchange and (y) record a like increase in the
principal amount of the other Global Note. Any beneficial interest in one
Global Note that is transferred to a Person who takes delivery in the form of
an interest in another Global Note, or exchanged for an interest in another
Global Note, shall, upon transfer or exchange, cease to be an interest in such
Global Note and become an interest in

 

17

 

the other Global Note and,
accordingly, shall thereafter be subject to all transfer and exchange
restrictions, if any, and other procedures applicable to beneficial interests
in such other Global Note for as long as it remains such an interest.

 

(ii)           Certificated Note to Certificated Note. If a
Certificated Note is transferred or exchanged for another Certificated Note,
the Trustee shall (x) cancel the Certificated Note being transferred or
exchanged, (y) deliver one or more new Certificated Notes in authorized
denominations having an aggregate principal amount equal to the principal
amount of such transfer or exchange to the transferee (in the case of a
transfer) or the Holder of the canceled Certificated Note (in the case of an
exchange), registered in the name of such transferee or Holder, as applicable,
and (z) if such transfer or exchange involves less than the entire
principal amount of the canceled Certificated Note, deliver to the Holder
thereof one or more Certificated Notes in authorized denominations having an
aggregate principal amount equal to the untransferred or unexchanged portion of
the canceled Certificated Note, registered in the name of the Holder thereof.

 

Section 2.07.  Restrictions on Transfer and
Exchange.

 

(a)           The transfer or exchange of
any Note (or a beneficial interest therein) may only be made in accordance with
this Section 2.07 and Section 2.06 and, in the case of a Global Note
(or a beneficial interest therein), the applicable rules and procedures of
the Depositary. The Trustee shall refuse to register any requested transfer or
exchange that does not comply with the preceding sentence.

 

(b)           Subject to Section 2.07(c),
the transfer or exchange of any Note (or a beneficial interest therein) of the
type set forth in column A below for a Note (or a beneficial interest therein)
of the type set forth opposite in column B below may only be made in compliance
with the certification requirements, if any, described in the clause of this
paragraph set forth opposite in column C below.

 

	
  A

  	
   

  	
  B

  	
   

  	
  C

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Global Note

  	
   

  	
  U.S. Global
  Note

  	
   

  	
  (i)

  	
   

  
	
  U.S. Global Note

  	
   

  	
  Regulation S
  Global Note

  	
   

  	
  (ii)

  	
   

  
	
  Certificated Note

  	
   

  	
  Certificated
  Note

  	
   

  	
  (iii)

  	
   

  
	
  Regulation S Global Note

  	
   

  	
  U.S. Global
  Note

  	
   

  	
  (iv)

  	
   

  
	
  Regulation S Global Note

  	
   

  	
  Regulation S
  Global Note

  	
   

  	
  (i)

  	
   

  

 

(i)            No certification is required.

 

(ii)           The Person requesting the transfer or exchange must
deliver or cause to be delivered to the Trustee a duly completed Regulation S
Certificate.

 

18

 

(iii)          The Person requesting the transfer or exchange must
deliver or cause to be delivered to the Trustee (x) a duly completed Rule 144A
Certificate or (y) a duly completed Regulation S Certificate, and/or an
Opinion of Counsel and such other certifications and evidence as the Company
may reasonably require in order to determine that the proposed transfer or
exchange is being made in compliance with the Securities Act and any applicable
securities laws of any state of the United States; provided
that if the requested transfer or exchange is made by the Holder of a
Certificated Note that does not bear the Restricted Legend, then no
certification is required. In the event that (1) the requested transfer or
exchange takes place after the Restricted Period and a duly completed
Regulation S Certificate is delivered to the Trustee or (2) a Certificated
Note that does not bear the Restricted Legend is surrendered for transfer or
exchange, upon transfer or exchange the Trustee shall deliver a Certificated
Note that does not bear the Restricted Legend.

 

(iv)          The Person requesting the transfer or exchange must
deliver or cause to be delivered to the Trustee a duly completed Rule 144A
Certificate.

 

(c)           No certification is required
in connection with any transfer or exchange of any Note (or a beneficial
interest therein) after such Note (i) is eligible for resale pursuant to Rule 144
under the Securities Act (or a successor provision); provided
that the Company has provided the Trustee with an Officer’s Certificate to that
effect, and the Company may require from any Person requesting a transfer or
exchange in reliance upon this clause an opinion of counsel and any other
reasonable certifications and evidence in order to support such certificate; or
(ii) (x) subject to an effective registration statement under the
Securities Act, pursuant to the Registration Rights Agreement or otherwise, or (y) exchanged
for an Exchange Note.

 

Any Certificated Note delivered in reliance upon
this Section 2.07(c) shall not bear the Restricted Legend.

 

(d)           The Trustee shall retain
copies of all certificates, opinions and other documents received in connection
with the transfer or exchange of a Note (or a beneficial interest therein), and
the Company shall have the right to inspect and make copies thereof at any
reasonable time upon reasonable prior written notice to the Trustee.

 

Section 2.08.  Restricted Regulation S Global
Notes.

 

(a)           Each Note originally sold by
the Initial Purchasers in reliance upon Regulation S shall be evidenced by one
or more Regulation S Global Notes that bear the Restricted Legend.

 

19

 

(b)           An owner of a beneficial
interest in a Restricted Regulation S Global Note (or a Person acting on behalf
of such an owner) may provide to the Trustee (and the Trustee shall accept) a
duly completed Certificate of Beneficial Ownership at any time after the
Restricted Period (it being understood that the Trustee shall not accept any
such certificate during the Restricted Period). Promptly after acceptance of a
Certificate of Beneficial Ownership with respect to such beneficial interest,
the Trustee shall cause such beneficial interest to be exchanged for an
equivalent beneficial interest in an Unrestricted Regulation S Global Note, and
shall (x) permanently reduce the principal amount of such Restricted
Regulation S Global Note by the amount of such beneficial interest and (y) increase
the principal amount of such Unrestricted Regulation S Global Note by the
amount of such beneficial interest.

 

(c)           Notwithstanding anything to
the contrary contained herein, beneficial interests in a Restricted Regulation
S Global Note may be held through the Depositary only through Euroclear and
Clearstream and their respective direct and indirect participants.

 

If
after the Restricted Period any Initial Purchaser owns a beneficial interest in
a Restricted Regulation S Global Note, such Initial Purchaser may, upon written
request to the Trustee accompanied by a certification as to its status as an
Initial Purchaser, exchange such beneficial interest for an equivalent
beneficial interest in an Unrestricted Regulation S Global Note, and the
Trustee shall comply with such request and shall (x) permanently reduce
the principal amount of such Restricted Regulation S Global Note by the amount
of such beneficial interest and (y) increase the principal amount of such
Unrestricted Regulation S Global Note by the amount of such beneficial
interest.

 

Section 2.09.  Additional
Interest.

 

If Additional Interest is required to be paid with
respect to any Notes, the interest rate borne by such Notes shall be increased
as provided in the Registration Rights Agreement.

 

The Company shall deliver to the Trustee, and Paying
Agent, if the Trustee shall not then be acting as Paying Agent, within five
calendar days of the date on which Additional Interest is required to be paid
with respect to any Notes, an Officer’s Certificate stating that such
Additional Interest has become payable with respect to the Notes.

 

Additional Interest shall, for the purposes of the
Notes, constitute “interest” used
in Article 4 of the Base Indenture and interest for purposes of this First
Supplemental Indenture and Global Note.

 

20

 

ARTICLE 3

COVENANTS

 

Section 3.01. Covenants.

 

The Notes shall be subject
to the covenants set forth in Article 4 of the Base Indenture.

 

Section 3.02.  Offer To Repurchase Upon Change Of Control
Triggering Event.

 

(a)           If a Change of Control
Triggering Event occurs with respect to the Notes, unless the Company has
exercised its option to redeem the Notes under Article 4 hereof or the
Notes, the Company shall make an offer (the “Change of
Control Offer”) to each Holder of Notes to repurchase all or any
part (equal to $2,000 or any integral multiple of $1,000 in excess thereof) of
such Holder’s Notes on the terms set forth herein and in the Notes.

 

(b)           In such Change of Control
Offer, the Company shall offer payment in cash (the “Change of
Control Payment”) equal to 101% of the aggregate Principal Amount of
the Notes to be repurchased, plus accrued and unpaid interest, if any, on the
Notes up to, but not including, the date of repurchase.

 

(c)           Within 30 days following any
Change of Control Triggering Event or, at the Company’s option, prior to any Change
of Control, but after public announcement of the transaction that constitutes
or may constitute the Change of Control, the Company shall send notice of such
Change of Control Offer by first-class mail, with a copy to the Trustee, to
each Holder of Notes describing the transaction that constitutes or may
constitute the Change of Control Triggering Event with respect to the Notes and
offering to repurchase the Notes on the date specified in the notice, which
date shall be no earlier than 30 days and no later than 60 days from the date
such notice is mailed, or, if the notice is mailed prior to the Change of
Control, no earlier than 30 days and no later than 60 days from the date on
which the Change of Control Triggering Event with respect to the Notes occurs
(the “Change of Control Payment Date”).  The notice shall, if mailed prior to the date
of consummation of the Change of Control, state that the offer to repurchase is
conditioned on the Change of Control Triggering Event occurring on or prior to
the Change of Control Payment Date.

 

(d)           On the Change of Control
Payment Date, the Company shall, to the extent lawful:

 

(i)            accept for payment all Notes or portions of Notes
properly tendered pursuant to the Change of Control Offer;

 

21

 

(ii)           deposit with the Paying Agent an amount equal to the
Change of Control Payment in respect of Notes or portions of Notes properly
tendered; and

 

(iii)          deliver or cause to be delivered to the Trustee the
Notes properly accepted together with an Officer’s Certificate stating the
aggregate Principal Amount of Notes or portions of Notes being repurchased.

 

The Company shall publicly
announce the results of the Change of Control Offer on, or as soon as possible
after, the date of purchase.

 

(e)           The Company shall not be
required to make a Change of Control Offer upon the occurrence of a Change of
Control Triggering Event if a third party makes such an offer in the manner, at
the time and otherwise in compliance with the requirements for an offer made by
the Company and the third party purchases all Notes properly tendered and not
withdrawn under its offer.  In addition,
the Company shall not repurchase any Notes if there has occurred and is continuing
on the Change of Control Payment Date an Event of Default under the Indenture,
other than a default in the payment of the Change of Control Payment upon a
Change of Control Triggering Event.

 

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

 

ARTICLE 4

REDEMPTION OF THE NOTES

 

Section 4.01.  Optional Redemption by
Company.

 

(a)           The provisions of Article 10
of the Base Indenture shall apply to the Notes.

 

(b)           At any time and from time to
time, the Notes shall be redeemable, as a whole or in part, at the Company’s
option, on at least 30 days, but not more than 60 days, prior notice mailed to
the registered address of each Holder of the Notes (the “Redemption Date”), at a redemption price
(the “Redemption Price”) equal to the greater
of: (i) 100% of the Principal Amount of the Notes to be redeemed

 

22

 

and (ii) the sum of the
present values of the remaining scheduled payments of interest and principal on
the Notes (exclusive of interest accrued and unpaid to, but not including, the
Redemption Date) discounted to the Redemption Date on a semiannual basis,
assuming a 360-day year consisting of twelve 30-day months, at the Treasury
Rate plus 50 basis points, plus, in either case, accrued and unpaid interest
to, but not including, the Redemption Date.

 

Section 4.02.   Selection of Notes to Be
Redeemed.

 

(a)           If less than all of the
Notes are to be redeemed, unless the procedures of the Depositary provide
otherwise, the Trustee shall select the Notes to be redeemed by lot, on a pro
rata basis or by another method the Trustee considers fair and appropriate (so
long as such method is not prohibited by the rules of any stock exchange
or quotation association on which the Notes are then traded or quoted, if
any).  Subject to the previous sentence,
the Trustee shall make the selection within five Business Days after it receives
the notice provided for in Section 4.01 from outstanding Notes not
previously called for redemption.

 

Notes and portions of Notes that the Trustee selects
shall be in principal amounts of $2,000 or an integral multiple of $1,000.  Provisions of this First Supplemental
Indenture that apply to Notes called for redemption also apply to portions of
Notes called for redemption.  The Trustee
shall notify the Company promptly of the Notes or portions of the Notes to be
redeemed.

 

Section 4.03.   Redemption Notice.

 

(a)           At least 30 days but not
more than 60 days before a Redemption Date, the Company shall mail a notice of
redemption (a “Redemption Notice”) by first-class
mail, postage prepaid, to each Holder of Notes to be redeemed.

 

(b)           The notice shall identify
the Notes to be redeemed and shall state:

 

(1)               the Redemption Date;

 

(2)               the Redemption Price;

 

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

 

(4)               that Notes called for redemption shall be
redeemed on the Redemption Date;

 

(5)               that Notes called for redemption must be
surrendered to the Paying Agent to collect the Redemption Price;

 

(6)               if fewer than all of the outstanding Notes
are to be redeemed, the certificate numbers, if any, and principal amounts of
the particular Notes to be redeemed;

 

23

 

(7)           that, unless the Company defaults in making payment
of such Redemption Price, interest and Additional Interest, if any, on Notes
called for redemption shall cease to accrue on and after the Redemption Date;
and

 

(8)           the CUSIP number(s) of the Notes.

 

At the Company’s request, the Trustee shall give the
Redemption Notice in the Company’s name and at the Company’s expense; provided that the Company makes such request at least 15
calendar days prior to the date by which such Redemption Notice must be given to
Holders in accordance with this Section 4.03 and the text of such notice
is provided by the Company.

 

Section 4.04.   Effect of Redemption
Notice.

 

Once the Redemption Notice
is mailed, the Notes called for redemption shall become due and payable on the Redemption
Date and at the Redemption Price stated in the notice. Upon surrender to the
Paying Agent, such Notes shall be paid at the Redemption Price stated in the
notice.

 

Section 4.05.   Deposit of Redemption
Price.

 

Prior to 11:00 a.m.,
New York City time, on the Redemption Date, the Company shall deposit with a
Paying Agent or the Trustee money sufficient to pay the Redemption Price of all
Notes to be redeemed on that date other than Notes or portions of Notes called
for redemption which on or prior thereto have been delivered by the Company to
the Trustee for cancellation.  If such
money is then held by the Company in trust and is not required for such purpose
it shall be discharged from such trust.

 

Section 4.06.   Securities Redeemed in
Part.

 

Upon surrender of a Note
that is redeemed 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 unredeemed portion of the Note surrendered.

 

ARTICLE 5

DEFEASANCE

 

Section 5.01.  Defeasance By The Company.

 

The Notes shall be subject
to defeasance at the option of the Company in accordance with the terms and
conditions set forth in Article 11 of the Base Indenture.

 

24

 

ARTICLE 6

MISCELLANEOUS

 

Section 6.01.  Rule 144A Information; No
Resales By Affiliates.

 

(a)           Within the period prior to
the expiration of the holding period applicable to sales thereof under Rule 144
under the Securities Act (or any successor provision), the Company covenants
and agrees that it shall, during any period in which it is not subject to Section 13
or 15(d) under the Exchange Act, make available to any Holder or
beneficial Holder of Initial Notes in connection with any sale thereof and any
prospective purchaser of Initial Notes designated by such Holder or beneficial
Holder, the information required pursuant to Rule 144A(d)(4) under
the Securities Act upon the request of any Holder or beneficial Holder of the
Initial Notes and it shall take such further action as any Holder or beneficial
Holder of such Initial Notes may reasonably request, all to the extent required
from time to time to enable such Holder or beneficial Holder to sell its
Initial Notes without registration under the Securities Act within the
limitation of the exemption provided by Rule 144A, as such Rule may
be amended from time to time.  Upon the
request of any Holder or any beneficial Holder of the Initial Notes, the
Company shall deliver to such Holder a written statement as to whether it has
complied with such requirements.

 

(b)           Any Initial Notes that,
prior to the expiration of the holding period applicable to sales thereof under
Rule 144 under the Securities Act (or any successor provision), are
purchased or owned by the Company or any affiliate thereof (within the meaning
of Rule 144) that is controlled by the Company 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 which results in such Initial Notes no longer being “restricted
securities” (as defined under Rule 144).

 

Section 6.02.  Ratification Of Indenture.

 

The Base Indenture, as supplemented by this First
Supplemental Indenture, is in all respects ratified and confirmed, and this
First Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided.

 

Section 6.03.  Trustee Not Responsible For Recitals.

 

The recitals herein contained are made by the
Company and not by the Trustee, and the Trustee assumes no responsibility for
the correctness thereof.  The Trustee
makes no representation as to the validity or sufficiency of this First
Supplemental Indenture.

 

25

 

Section 6.04.  Governing Law.

 

This First Supplemental Indenture and each Note
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

Section 6.05.  Separability.

 

In case any one or more of the provisions contained
in this First Supplemental Indenture or in the Notes shall for any reason be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
First Supplemental Indenture or of the Notes, but this First Supplemental
Indenture and the Notes shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein.

 

Section 6.06.  Counterparts.

 

This First Supplemental Indenture may be executed in
any number of counterparts each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument.

 

26

 

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

 

	
   

  	
  BEST
  BUY CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ryan D. Robinson

  
	
   

  	
   

  	
  Name:  Ryan D. Robinson

  
	
   

  	
   

  	
  Title:    Senior
  Vice president, U.S. SBU CFO and Treasurer

  

 

 

	
   

  	
  WELLS
  FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jane Y. Schweiger

  
	
   

  	
   

  	
  Name:  Jane Y. Schweiger

  
	
   

  	
   

  	
  Title:  Vice President

  

 

 

EXHIBIT A

 

Best Buy Co., Inc.

 

6.75% Notes due 2013

 

[CUSIP] [144A]: [086516AG6]

[ISIN] [144A]: [US086516AG65]

 

[CUSIP] [Reg S]: [U3091KAA4]

[ISIN] [Reg S]: [USU3091KAA44]

 

[CUSIP] [Registered]:
[086516AJ0]

[ISIN] [Registered]: [US086516AJ05]

 

	
  No. [R-1][S-1]

  	
   

  	
  $                         

  

 

Best Buy Co., Inc., a Minnesota corporation
(herein called the “Company”,
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of
$                              ,
or such other Principal Amount as may be set forth in the records of the
Trustee (hereinafter referred to) in accordance with the terms of the
Indenture, on July 15, 2013 (the “Maturity
Date”) (except to the extent redeemed or repaid prior to the
Maturity Date) and to pay interest thereon from June 24, 2008 (the “Original Issue Date”) or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for semi-annually at the rate of 6.75% per annum, on January 15 and July 15
(each such date, an “Interest Payment Date”),
commencing on January 15, 2009, until the principal hereof is paid or made
available for payment.

 

Subject to the limitations set forth in Section 2.01(b) of
the First Supplemental Indenture (as defined herein), the interest rate payable
on the Notes (as defined herein) will be subject to adjustment from time to
time, on the terms set forth in the Indenture, if either Moody’s or S&P
downgrades (or subsequently upgrades) the debt rating assigned to the Notes. If
the interest rate payable on this Note is increased in accordance with the
terms hereof and of the Indenture, then the term “interest,” as used in this
Note and the Indenture, will be deemed to include any such additional interest
unless the context otherwise requires.

 

1. Payment of Interest. The interest
so payable, and punctually paid or made available for payment, on any Interest
Payment Date, will, as provided in the Indenture, be paid, in immediately
available funds, to the Person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on January 1 or July 1
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date (the “Regular Record
Date”),

 

 

without regard to any transfer or exchange of
such Notes subsequent to the Regular Record Date and prior to such Interest
Payment Date. Any such interest not punctually paid or duly provided for (“Defaulted Interest”) shall, at the
Company’s option, cease to be payable to the Holder on such Regular Record
Date, and such Defaulted Interest may be paid to the Person in whose name this
Note (or one or more predecessor Notes) is registered at the close of business
on a special record date (the “Special Record
Date”), which date may not be less than 10 days prior to the date of
payment of such Defaulted Interest, for the payment of such Defaulted Interest
to be fixed by the Trustee, notice whereof shall be given to Holders of Notes
not less than 15 days prior to such Special Record Date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.

 

2. Place of Payment. Payment of
principal of and premium, if any, and interest on this Note will be made at the
Corporate Trust Office of the Trustee or such other office or agency of the
Company as may be designated for such purpose, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that each installment of principal of and premium,
if any, and interest on this Note may at the Company’s option with written
notice to the Trustee be paid in immediately available funds by transfer to an
account maintained by the payee located in the United States, provided such payee has given written wire transfer
instructions to the Company.

 

3. Time of Payment. In any case
where any Interest Payment Date, the Maturity Date or any date fixed for
redemption or repayment of the Notes shall not be a Business Day, then
(notwithstanding any other provision of the Indenture or this Note), payment of
principal, premium, if any, or interest need not be made on such date, but may
be made on the next succeeding Business Day with the same force and effect as
if made on such Interest Payment Date, the Maturity Date or the date so fixed
for redemption or repayment, and no interest shall accrue in respect of the
delay.

 

4. General. This Note is
one of a duly authorized issue of Securities of the Company, issued and to be
issued in one or more series under an indenture (the “Base Indenture”), dated as of June 24,
2008, as supplemented by a First Supplemental Indenture thereto, dated as of June 24,
2008 (the “First Supplemental Indenture”
and, together with the Base Indenture, the “Indenture”),
between the Company and Wells Fargo Bank, N.A., as Trustee (herein called the “Trustee”, which term includes any successor
Trustee under the Indenture with respect to the series of Securities of which
this Note is a part). Reference is hereby made to the Indenture for a statement
of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of this Note and of the
terms upon which this Note is, and will be, authenticated and delivered. This
Note is one of a duly authorized series

 

A-2

 

of Securities designated as 6.75% Notes due
2013 (collectively, the “Notes”),
initially limited in aggregate Principal Amount to $500,000,000.

 

5. Further Issuance. The Company
may from time to time, without the consent of the Holders of the Notes, issue
additional Securities (the “Additional
Securities”) of this series having the same ranking and the same
interest rate, Maturity and other terms as the Notes. Any Additional Securities
of this series and the Notes will constitute a single series under the
Indenture and all references to the Notes shall include the Additional
Securities unless the context otherwise requires.

 

6. Events of Default. If an Event
of Default with respect to the Notes shall have occurred and be continuing, the
principal of the Notes may be declared or become due and payable in the manner
and with the effect provided in the Indenture.

 

7. Sinking Fund. The Notes
shall not be subject to any sinking fund.

 

8. Optional Redemption. The Notes
will be redeemable at any time, at the option of the Company, in whole or from
time to time in part, upon not less than 30 days nor more than 60 days prior
notice, on any date prior to their Maturity at a redemption price, calculated
pursuant to the First Supplemental Indenture, which includes any accrued
interest thereon to, but not including, the Redemption Date. In the case of any
partial redemption, selection of the Notes for redemption will be made by the
Trustee by such methods as the Trustee in its sole discretion shall deem fair
and appropriate. If any Note is to be redeemed in part only, the notice of
redemption relating to such Note shall state the portion of the Principal
Amount thereof to be redeemed. A new Note in Principal Amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of this Note.

 

9. Offer to Repurchase upon a
Change of Control Triggering Event. Upon the occurrence of a
Change of Control Triggering Event with respect to the Notes, the Company shall
be required to make an offer to repurchase the Notes on the terms set forth in
the First Supplemental Indenture.

 

10. Full Defeasance and Covenant
Defeasance. The Indenture contains provisions for defeasance
at any time of (a) the entire Indebtedness of the Company represented by
this Note and (b) certain restrictive covenants and the related Defaults
and Events of Default, upon compliance by the Company with certain conditions
set forth therein, which provisions apply to this Note.

 

11. Modification and Waivers;
Obligations of the Company Absolute. The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Notes. Such amendment may be effected under the Indenture at any
time by the Company and the Trustee with the consent of the

 

A-3

 

Holders of not less than a majority in
aggregate Principal Amount of the outstanding Notes of each series affected
thereby. The Indenture also contains provisions permitting the Holders of not
less than a majority in aggregate Principal Amount of the Notes at the time
outstanding, on behalf of the Holders of all outstanding Notes, to waive
compliance by the Company with certain provisions of the Indenture.
Furthermore, provisions in the Indenture permit the Holders of not less than a
majority in aggregate Principal Amount of the outstanding Notes of a series to
waive on behalf of all of the Holders of Notes of such series certain past
defaults under the Indenture and their consequences. Any such consent or waiver
shall be conclusive and binding upon the Holder of this Note and upon all
future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note.

 

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

 

12. Limitation on Suits. As set forth
in, and subject to, the provisions of the Indenture, no Holder of any Note will
have any right to institute any proceeding with respect to the Indenture or for
any remedy thereunder, unless such Holder shall have previously given to the
Trustee written notice of a continuing Event of Default with respect to this
series, the Holders of not less than 25% in Principal Amount of the outstanding
Notes shall have made written request, and offered reasonable indemnity, to the
Trustee to institute such proceedings as trustee, and the Trustee shall not
have received from the Holders of a majority in Principal Amount of the
outstanding Notes a direction inconsistent with such request and shall have
failed to institute such proceeding within 60 days; provided,
however, that such limitations do not
apply to a suit instituted by the Holder hereof for the enforcement of payment
of the principal of or interest on this Note on or after the respective due
dates expressed herein.

 

13. Authorized Denominations. The Notes are
issuable only in registered form without coupons in denominations of $2,000 or
any integral multiple of $1,000 in excess thereof.

 

14. Registration of Transfer or
Exchange. As provided in the Indenture and subject to certain
limitations herein and therein set forth, the transfer of this Note is
registrable in the register of the Notes maintained by the Registrar upon
surrender of this Note for registration of transfer, at the office or agency of
the Company in any place where the principal of and premium, if any, and
interest on this Note are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Registrar, duly executed by the Holder hereof or its attorney duly authorized
in writing, and thereupon one

 

A-4

 

or more new Notes, of authorized
denominations and for the same aggregate Principal Amount, will be issued to
the designated transferee or transferees.

 

As provided in the Indenture and subject to certain
limitations herein and therein set forth, the Notes are exchangeable for a like
aggregate Principal Amount of Notes of different authorized denominations, as
requested by the Holders surrendering the same.

 

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

 

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

 

15. Defined Terms. All terms
used in this Note, which are defined in the Indenture and are not otherwise
defined herein, shall have the meanings assigned to them in the Indenture.

 

16. Governing Law. This Note shall be governed by, and construed in accordance with, the
laws of the State of New York.

 

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

 

A-5

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed and its seal to be hereunto affixed and
attested.

 

Dated:        ,
2008

 

	
   

  	
  BEST
  BUY CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-6

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This
is one of the Securities of the series designated therein referred to in the
within-mentioned Base Indenture, as supplemented by the within-mentioned First
Supplemental Indenture.

 

Dated:        ,
2008

 

 

	
   

  	
  WELLS
  FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-7

 

[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 such Note on the books of the Company with full power of
substitution in the premises.

 

A-8

 

[THE FOLLOWING PROVISION TO BE INCLUDED ON ALL

CERTIFICATES BEARING A RESTRICTED LEGEND]

 

In connection with any transfer of this Note
occurring prior to the Resale Restriction Termination Date, the undersigned
confirms that such transfer is made without utilizing any general solicitation
or general advertising and further as follows:

 

Check One

 

o            (1)  This Note is being transferred to a “qualified
institutional buyer” in compliance with Rule 144A under the Securities Act
of 1933, as amended, and certification in the form of Exhibit E to the
Indenture is being furnished herewith.

 

o            (2)  This Note is being transferred to a Non-U.S.
Person in compliance with the exemption from registration under the Securities
Act of 1933, as amended, provided by Regulation S thereunder, and certification
in the form of Exhibit D to the Indenture is being furnished herewith.

 

or

 

o            (3)  This Note is being transferred other than in
accordance with (1) or (2) above and documents are being furnished
which comply with the conditions of transfer set forth in this Note and the
Indenture.

 

If none of the foregoing boxes is checked, the
Trustee is not 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 have been satisfied.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  

 

NOTICE: The signature to this assignment must correspond with the name
as written upon the face of the within-mentioned instrument in every
particular, without alteration or any change whatsoever.

 

A-9

 

 

	
  Signature
  Guarantee:1

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  To
  be executed by an executive officer

  
					

 

1 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the
Note Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may
be determined by the Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you wish to have this Note purchased by the
Company pursuant to a Change of Control Offer pursuant to Section 3.01 of
the First Supplemental Indenture, check the box: o

 

If you wish to have a portion of this Note purchased
by the Company pursuant to a Change of Control Offer pursuant to Section 3.01
of the First Supplemental Indenture, state the amount (in principal amount):
$                                  .

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
  (Sign
  exactly as your name appears on the other side of this Note)

  
	
   

  
	
  Signature
  Guarantee:2

  	
   

  	
   

  
							

 

2 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the
Note Transfer agent Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

A-11

 

Schedule I

 

[Include as Schedule I only for a Global Note]

SCHEDULE OF EXCHANGES OF GLOBAL
NOTES

 

Best Buy Co., Inc.

6.75% Notes due 2013

 

No. [   ]

 

The following exchanges of a part of this
Global Note have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of this

  Global Note

  	
   

  	
  Amount of increase in

  Principal amount of this

  Global Note

  	
   

  	
  Principal Amount of this

  Global Note following

  such decrease (or

  increase)

  	
   

  	
  Signature of authorized

  signatory of Trustee or

  Security Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT B

 

RESTRICTED LEGEND

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS NOTE, BY
ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED NOTES, TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH NOTE, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF RULE 144A
NOTES: TWO YEARS] [IN THE CASE OF REGULATION S NOTES: 40 DAYS] AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH BEST BUY CO., INC.
(THE “COMPANY”) OR ANY AFFILIATE OF THE
COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH NOTE), ONLY (A) TO
THE COMPANY, (B) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE PURSUANT TO RULE
144A, (C) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (D) TO
AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL
ACCREDITED INVESTOR ACQUIRING THE NOTE FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF THE NOTES OF $500,000, FOR INVESTMENT PURPOSES AND NOT WITH
A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (F) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (C), (D) OR (E) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, 

 

 

CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY
TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER
AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

B-2

 

EXHIBIT C

 

DTC LEGEND

 

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

 

TRANSFERS OF THIS GLOBAL NOTE ARE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER
PROVISIONS OF THE INDENTURE.

 

 

EXHIBIT D

 

Regulation S Certificate

 

                     
,           

 

Wells
Fargo Bank, N.A.

Corporate
Trust Services

625
Marquette Avenue, 11th Floor

Minneapolis, Minnesota 55402

 

Re:                               Best Buy Co., Inc.

6.75% Notes due 2013 (the “Notes”) 

Issued under the Indenture as supplemented by the First 

Supplemental Indenture thereto relating to the Notes (the 

“Indenture”), each dated as of June 24,
2008

 

Dear Sirs:

 

Terms are used in this Certificate as used in
Regulation S (“Regulation S”) under the
Securities Act of 1933, as amended (the “Securities Act”),
except as otherwise stated herein.

 

[CHECK A OR B AS APPLICABLE.]

 

o  A.                 This Certificate relates to our proposed
transfer of $         principal amount
of Notes issued under the Indenture.  We
hereby certify as follows:

 

1.             The offer and sale of the
Notes was not and will not be made to a person in the United States (unless
such person is excluded from the definition of “U.S. person”
pursuant to Rule 902(k)(2)(vi) or the account held by it for which it
is acting is excluded from the definition of “U.S. person”
pursuant to Rule 902(k)(2)(i) under the circumstances described in Rule 902(g)(3))
and such offer and sale was not and will not be specifically targeted at an
identifiable group of U.S. citizens abroad.

 

2.             Unless the circumstances
described in the parenthetical in paragraph 1 above are applicable, either (a) at
the time the buy order was originated, the buyer was outside the United States
or we and any person acting on our behalf reasonably believed that the buyer
was outside the United States or (b) the transaction was executed in, on
or through the facilities of a designated offshore securities market, and
neither we nor any person acting on our behalf knows that 

 

 

the transaction was pre-arranged with a buyer in the United States.

 

3.                                       Neither we, any
of our affiliates, nor any person acting on our or their behalf has made any
directed selling efforts in the United States with respect to the Notes.

 

4.                                       The proposed
transfer of Notes is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

 

5.                                       If we are a
dealer or a person receiving a selling concession, fee or other remuneration in
respect of the Notes, and the proposed transfer takes place during the
Restricted Period (as defined in the Indenture), or we are an officer or
director of the Company or an Initial Purchaser (as defined in the Indenture),
we certify that the proposed transfer is being made in accordance with the
provisions of Rule 904(b) of Regulation S.

 

o  B.      This
Certificate relates to our proposed exchange of
$         principal amount of Notes
issued under the Indenture for an equal principal amount of Notes to be held by
us.  We hereby certify as follows:

 

1.                                       At the time the
offer and sale of the Notes was made to us, either (i) we were not in the
United States or (ii) we were excluded from the definition of “U.S. person”
pursuant to Rule 902(k)(2)(vi) or the account held by the Company for
which we were acting was excluded from the definition of “U.S. person” pursuant
to Rule 902(k)(2)(i) under the circumstances described in Rule 902(g)(3);
and we were not a member of an identifiable group of U.S. citizens abroad.

 

2.                                       Unless the
circumstances described in paragraph 1(ii) above are applicable, either (a) at
the time our buy order was originated, we were outside the United States or (b) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and we did not prearrange the transaction in the
United States.

 

3.                                       The proposed
exchange of Notes is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

 

D-2

 

You and the Company are entitled to rely upon this
Certificate and are irrevocably authorized to produce this Certificate or a
copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby.

 

	
   

  	
   

  	
  Very
  truly yours,

   

   

  [NAME
  OF SELLER (FOR 

  TRANSFERS) OR OWNER (FOR 

  EXCHANGES)]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
  Address:

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

D-3

 

EXHIBIT E

 

Rule 144A Certificate

 

                     
,      

 

Wells
Fargo Bank, N.A.

Corporate
Trust Services

625
Marquette Avenue, 11th Floor

Minneapolis, Minnesota 55402

 

Re:                               Best Buy Co., Inc.

6.75% Notes due 2013 (the “Notes”) 

Issued under the Indenture as supplemented by the First 

Supplemental Indenture thereto relating to the Notes (the 

“Indenture”), each dated as of June 24,
2008

 

Ladies and Gentlemen:

 

TO BE COMPLETED BY PURCHASER IF (1) ABOVE IS
CHECKED.

 

This Certificate relates to:

 

[CHECK A OR B AS APPLICABLE.]

 

o  A.                 Our proposed purchase of $        
principal amount of Notes issued under the Indenture.

 

o  B.                   Our proposed exchange of $        
principal amount of Notes issued under the Indenture for an equal principal
amount of Notes to be held by us.

 

We and, if applicable, each account for which we are
acting in the aggregate owned and invested more than $100,000,000 in securities
of issuers that are not affiliated with the Company (or such accounts, if
applicable), as of            ,
20      , which is a date on or since close of
our most recent fiscal year.  We and, if
applicable, each account for which we are acting, are a qualified institutional
buyer within the meaning of Rule 144A (“Rule 144A”)
under the Securities Act of 1933, as amended (the “Securities
Act”).  If we are acting on
behalf of an account, we exercise sole investment discretion with respect to
such account.  We are aware that the
transfer of Notes to us, or such exchange, as applicable, is being made in
reliance upon the exemption from the provisions of Section 5 of the
Securities Act provided by Rule 144A. 
Prior to the date of this Certificate we have received such information
regarding the Company as we have requested pursuant to Rule 144A(d)(4) or
have determined not to request such information.

 

You and the Company are entitled to rely upon this
Certificate and are irrevocably authorized to produce this Certificate or a
copy hereof to any 

 

 

interested party in any administrative or
legal proceeding or official inquiry with respect to the matters covered
hereby.

 

	
   

  	
   

  	
  Very
  truly yours,

   

   

  [NAME
  OF PURCHASER (FOR 

  TRANSFERS) OR OWNER (FOR 

  EXCHANGES)]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:       

  
	
   

  	
   

  	
  Title:         

  
	
   

  	
   

  	
  Address: 

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
								

 

E-2

 

EXHIBIT F

 

[COMPLETE FORM I OR FORM II
AS APPLICABLE.]

 

[FORM I]

 

Certificate of Beneficial
Ownership

 

To:          Wells Fargo Bank, N.A.

                Corporate Trust Services

                625 Marquette Avenue, 11th
Floor

                Minneapolis, Minnesota 55402 OR

 

[Euroclear Bank S.A./N.V., as operator of the
Euroclear System] OR

 

[Clearstream Banking S.A.]

 

Re:                               Best Buy Co., Inc.

6.75% Notes due 2013 (the “Notes”)

Issued under the Indenture as supplemented by the First 

Supplemental Indenture thereto relating to the Notes (the 

“Indenture”), each dated as of June 24,
2008

 

Ladies and Gentlemen:

 

We are the beneficial owner of
$         principal amount of Notes
issued under the Indenture and represented by a Restricted Regulation S Global
Note (as defined in the Indenture).

 

We hereby certify as follows:

 

[CHECK A OR B AS APPLICABLE.]

 

o  A.      We are a
non-U.S. person (within the meaning of Regulation S under the Securities Act of
1933, as amended).

 

o  B.      We are a U.S.
person (within the meaning of Regulation S under the Securities Act of 1933, as
amended) that purchased the Notes in a transaction that did not require
registration under the Securities Act of 1933, as amended.

 

You and the Company are entitled to rely upon this
Certificate and are irrevocably authorized to produce this Certificate or a
copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby.

 

F-1

 

	
   

  	
   

  	
  Very
  truly yours,

   

   

  [NAME
  OF BENEFICIAL OWNER]

   

   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:       

  
	
   

  	
   

  	
  Title:         

  
	
   

  	
   

  	
  Address: 

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

F-2

 

[FORM II]

 

Certificate of Beneficial
Ownership

 

To:          Wells Fargo Bank, N.A.

Corporate
Trust Services

625
Marquette Avenue, 11th Floor

Minneapolis,
Minnesota 55402

 

Re:                               Best Buy Co., Inc. 

6.75% Notes due 2013 (the “Notes”)

Issued under the Indenture as supplemented by the First Supplemental 

Indenture thereto relating to the Notes (the “Indenture”),
each dated as of 

June 24, 2008

 

Ladies and Gentlemen:

 

This is to certify that based solely on
certifications we have received in writing, by tested telex or by electronic
transmission from member organizations (“Member Organizations”)
appearing in our records as persons being entitled to a portion of the
principal amount of Notes represented by a Restricted Regulation S Global Note
issued under the above-referenced Indenture, that as of the date hereof, $        
principal amount of Notes represented by the Restricted Regulation S Global
Note being submitted herewith for exchange is beneficially owned by persons
that are either (i) non-U.S. persons (within the meaning of Regulation S
under the Securities Act of 1933, as amended) or (ii) U.S. persons that
purchased the Notes in a transaction that did not require registration under
the Securities Act of 1933, as amended.

 

We further certify that (i) we are not
submitting herewith for exchange any portion of such Restricted Regulation S
Global Note excepted in such Member Organization certifications and (ii) as
of the date here of we have not received any notification from any Member
Organization to the effect that the statements made by such Member Organization
with respect to any portion of such Restricted Regulation S Global Note
submitted herewith for exchange are no longer true and cannot be relied upon as
of the date hereof.

 

You and the Company are entitled to rely upon this
Certificate and are irrevocably authorized to produce this Certificate or a
copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby.

 

F-1

 

	
   

  	
   

  	
  Yours
  faithfully,

   

  [EUROCLEAR
  BANK S.A./N.V., as 

  operator of the Euroclear System]

   

   

  OR

   

   

  [CLEARSTREAM
  BANKING S.A.]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:          

  
	
   

  	
   

  	
  Title:            

  
	
   

  	
   

  	
  Address:    

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

F-2Exhibit 4.3

 

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT dated as of June 24, 2008 (the “Agreement”) is entered
into by and among Best Buy Co., Inc., a Minnesota corporation (the “Company”),
J.P. Morgan Securities Inc. (“JPMorgan”) and Goldman, Sachs & Co. for
themselves and on behalf of the other initial purchasers identified in the
Purchase Agreement (defined below) (the “Initial Purchasers”).

 

Preamble

 

The
Company and the Initial Purchasers are parties to the Purchase Agreement dated June 19,
2008 (the “Purchase Agreement”), which provides for the sale by the Company to
the Initial Purchasers of $500,000,000 aggregate principal amount of the
Company’s 6.75% Notes due 2013 (the “Securities”).  As an inducement to the Initial Purchasers to
enter into the Purchase Agreement, the Company has agreed to provide to the
Initial Purchasers and their direct and indirect transferees the registration
rights set forth in this Agreement.  The
execution and delivery of this Agreement is a condition to the closing under
the Purchase Agreement.

 

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

 

1.             Definitions.  As used in this Agreement, the following
terms shall have the following meanings:

 

“Business Day” shall mean any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed.

 

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

 

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

 

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

 

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

 

 

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

 

“Exchange
Offer Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form) and
all amendments and supplements to such registration statement, in each case
including the Prospectus contained therein or deemed a part thereof, all
exhibits thereto and any document incorporated by reference therein.

 

“Exchange
Securities” shall mean the 6.75% Notes due 2013 issued by the Company under the
Indenture containing terms substantially identical to the Securities (except
that the Exchange Securities will not be subject to restrictions on transfer or
to any increase in annual interest rate for failure to comply with this
Agreement) and to be offered to Holders of Securities in exchange for
Securities pursuant to the Exchange Offer.

 

“Free
Writing Prospectus” shall mean each free writing prospectus (as defined in Rule 405
under the Securities Act) prepared by or on behalf of the Company or used or
referred to by the Company in connection with the sale of the Securities or the
Exchange Securities.

 

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

 

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

 

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

 

“Indenture”
shall mean the Indenture dated as of June 24, 2008 between  the Company and Wells Fargo Bank, N.A., as
trustee, as supplemented by the first supplemental indenture thereto dated June 24,
2008 relating to the Securities, and as the same may be amended from time to
time in accordance with the terms thereof.

 

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

 

“Inspector”
shall have the meaning set forth in Section 3(a)(xiii) hereof.

 

“Issue
Date” shall mean June 24, 2008 (being the original issuance date of the
Securities).

 

2

 

“Issuer
Information” shall have the meaning set forth in Section 5(a) hereof.

 

“JPMorgan”
shall have the meaning set forth in the preamble of this Agreement.

 

“Majority
Holders” shall mean the Holders of a majority of the aggregate principal amount
of the outstanding Registrable Securities; provided that whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, any Registrable Securities owned directly or
indirectly by the Company or any of its affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage or
amount; and provided, further, that if the Company shall issue
any additional Securities under the Indenture prior to consummation of the
Exchange Offer or, if applicable, the effectiveness of any Shelf Registration
Statement, such additional Securities and the Registrable Securities to which
this Agreement relates shall be treated together as one class for purposes of
determining whether the consent or approval of Holders of a specified
percentage of Registrable Securities has been obtained.

 

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

 

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

 

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

 

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

 

“Registrable
Securities” shall mean the Securities; provided that the Securities
shall cease to be Registrable Securities upon the earliest of (i) a
Registration Statement with respect to such Securities becoming effective under
the Securities Act and such Securities being exchanged or disposed of pursuant

 

3

 

to
such Registration Statement, (ii) two years after the Issue Date and (iii) such
Securities having ceased to be outstanding.

 

“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 Financial Industry Regulatory Authority registration and
filing fees, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws (including reasonable and
documented fees and disbursements of counsel for any Underwriters or Holders in
connection with blue sky qualification of any Exchange Securities or
Registrable Securities), (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing and distributing any
Registration Statement, any Prospectus, any Free Writing Prospectus and any
amendments or supplements thereto, any underwriting agreements, securities
sales agreements or other similar agreements and any other documents relating
to the performance of and compliance with this Agreement, (iv) all rating
agency fees, (v) all fees and disbursements relating to the qualification
of the Indenture under applicable securities laws, (vi) the reasonable and
documented fees and disbursements of the Trustee and its counsel, (vii) the
fees and disbursements of counsel for the Company and, in the case of a Shelf
Registration Statement, the reasonable and documented fees and disbursements of
one counsel for the Holders (which counsel shall be selected by the Majority
Holders and which counsel may also be counsel for the Initial Purchasers), and (viii) the
fees and disbursements of the registered public accounting firm of the Company,
fees and disbursements relating to any “comfort” letters required by or
incident to the performance of and compliance with this Agreement, but
excluding fees and expenses of counsel to the Underwriters (other than fees and
expenses set forth in clause (ii) above) or the Holders and underwriting
discounts and commissions, brokerage commissions and transfer taxes, if any,
relating to the sale or disposition of Registrable Securities by a Holder.

 

“Registration
Statement” shall mean any registration statement of the Company that covers any
of the Exchange Securities or Registrable Securities pursuant to the provisions
of this Agreement and all amendments and supplements to any such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein or deemed a part thereof, all exhibits thereto and
any document incorporated by reference therein.

 

“SEC”
shall mean the Securities and Exchange Commission.

 

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

 

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

 

4

 

“Shelf
Additional Interest Date” shall have the meaning set forth in Section 2(f) hereof.

 

“Shelf
Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

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

 

“Shelf
Registration Statement” shall mean a “shelf” registration statement of the
Company that covers all or a portion of the Registrable Securities (but no
other securities unless approved by a majority of the Holders whose Registrable
Securities are to be covered by such Shelf Registration Statement) on an
appropriate form under Rule 415 under the Securities 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 or deemed a part thereof, all exhibits thereto
and any document incorporated by reference therein.

 

“Shelf
Request” shall have the meaning set forth in Section 2(b) hereof.

 

“Staff”
shall mean the staff of the SEC.

 

“Target
Registration Date” shall have the meaning set forth in Section 2(d) hereof.

 

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

 

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

 

“Underwriter”
shall have the meaning set forth in Section 3(e) hereof.

 

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

 

2.             Registration Under the Securities
Act.  (a)  To the extent not
prohibited by any applicable law or applicable interpretations of the Staff and
except in the circumstances contemplated by Section 2(b)(i) below,
the Company shall use its reasonable best efforts to (i) cause to be filed
an Exchange Offer Registration Statement covering an offer to the Holders to
exchange all the Registrable Securities for Exchange Securities and (ii) have
such Registration Statement remain effective until 90 days after the last
Exchange Date for use by one or more Participating Broker-Dealers.  The Company shall commence the

 

5

 

Exchange
Offer promptly after the Exchange Offer Registration Statement is declared
effective by the SEC and use its reasonable best efforts to complete the
Exchange Offer not later than 60 days after such effective date.

 

The
Company shall commence the Exchange Offer by mailing the related Prospectus,
appropriate letters of transmittal and other accompanying documents to each
Holder stating, in addition to such other disclosures as are required by
applicable law:

 

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

 

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

 

(iii)                             that any
Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement;

 

(iv)                              that any Holder
electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to (A) surrender such Registrable Security,
together with the appropriate letters of transmittal, to the institution and at
the address (located in the Borough of Manhattan, The City of New York) and in
the manner specified in the notice, or (B) effect such exchange otherwise
in compliance with the applicable procedures of the depositary for such
Registrable Security, in each case prior to the close of business on the last
Exchange Date; and

 

(v)                                 that any Holder
will be entitled to withdraw its election, not later than the close of business
on the last Exchange Date, by (A) sending to the institution and at the
address (located in the Borough of Manhattan, The City of New York) specified
in the notice, a telegram, telex, facsimile transmission or letter setting
forth the name of such Holder, the principal amount of Registrable Securities
delivered for exchange and a statement that such Holder is withdrawing its
election to have such Securities exchanged or (B) effecting such
withdrawal in compliance with the applicable procedures of the depositary for
the Registrable Securities.

 

As a condition to participating in the Exchange Offer, a
Holder will be required to represent to the Company that (i) any Exchange
Securities to be received by it will be acquired in the ordinary course of its
business, (ii) at the time of the commencement of the Exchange Offer it
has no arrangement or understanding with any Person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange
Securities in violation of the

 

6

 

provisions of the
Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405
under the Securities Act) of the Company and (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in
exchange for Registrable Securities that were acquired as a result of
market-making or other trading activities, then such Holder will deliver a
Prospectus (or, to the extent permitted by law, make available a Prospectus to
purchasers) in connection with any resale of such Exchange Securities.

 

As
soon as practicable after the last Exchange Date, the Company shall:

 

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

 

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

 

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

 

(b)           In the event that (i) the
Company determines that the Exchange Offer Registration provided for in Section 2(a) above
is not permitted or may not be completed as soon as practicable after the last
Exchange Date because it would violate any applicable law or applicable
interpretations of the Staff, (ii) the Exchange Offer is not for any other
reason completed by January 31, 2009 or (iii) upon receipt of a
written request (a “Shelf Request”) from any Initial Purchaser representing
that it holds Registrable Securities that are or were ineligible to be
exchanged in the Exchange Offer, the Company shall use its reasonable best
efforts to cause to be filed as soon as practicable after such determination,
date or Shelf Request, as the case may be, a Shelf Registration Statement
providing for the sale of all the Registrable Securities by the Holders thereof
and to have such Shelf Registration Statement become effective.

 

In
the event that the Company is required to file a Shelf Registration Statement
pursuant to clause (iii) of the preceding paragraph, the Company shall use
its reasonable best efforts to file and have become effective both an Exchange
Offer Registration Statement pursuant to Section 2(a) with respect to
all Registrable Securities and a Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement)
with respect to offers and sales of Registrable Securities held by the Initial
Purchasers after completion of the Exchange Offer.

 

7

 

The
Company agrees to use its reasonable best efforts to keep the Shelf
Registration Statement continuously effective until two years from the Issue
Date or such shorter period that will terminate when all the Registrable
Securities covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement (the “Shelf Effectiveness Period”).  The Company further agrees to supplement or
amend the Shelf Registration Statement, the related Prospectus and any Free
Writing Prospectus if required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Shelf
Registration Statement or by the Securities Act or by any other rules and
regulations thereunder or if reasonably requested by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use its
reasonable best efforts to cause any such amendment to become effective, if
required, and such Shelf Registration Statement, Prospectus or Free Writing
Prospectus, as the case may be, to become usable as soon as thereafter
practicable.  The Company agrees to
furnish to the Holders of Registrable Securities covered by the Shelf
Registration Statement copies of any such supplement or amendment  promptly after its being used or filed with
the SEC.

 

(c)           The Company shall pay all
Registration Expenses in connection with any registration pursuant to Section 2(a) or
Section 2(b) hereof.  Each
Holder shall pay all underwriting discounts and commissions, brokerage
commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder’s Registrable Securities pursuant to the Shelf Registration
Statement.

 

(d)           An Exchange Offer Registration
Statement pursuant to Section 2(a) hereof will not be deemed to have
become effective unless it has been declared effective by the SEC.  A Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC or is automatically effective upon filing with the SEC as
provided by Rule 462 under the Securities Act.

 

(e)           In the event that either the Exchange
Offer is not completed or the Shelf Registration Statement, if required
pursuant to Section 2(b)(i) or 2(b)(ii) hereof, does not become
effective on or prior to January 31, 2009 (the “Target Registration Date”),
the interest rate on the Registrable Securities will be increased by (i) 0.25%
per annum for the first 90-day period immediately following the Target
Registration Date and (ii) an additional 0.25% per annum with respect to
each subsequent 90-day period, up to a maximum of 0.50% per annum, in each case
until the earliest of (1) the Exchange Offer being completed, (2) the
Shelf Registration Statement, if required hereby, becoming effective and (3) two
years from the Issue Date, at which time the increased interest shall cease to
accrue.  In the event that the Company
receives a Shelf Request pursuant to Section 2(b)(iii), and the Shelf
Registration Statement required to be filed thereby does not become effective
by the later of (x) the Target Registration

 

8

 

Date
or (y) 90 days after the delivery of such Shelf Request (such later date,
the “Shelf Additional Interest Date”), then the interest rate on the
Registrable Securities to be covered by the Shelf Registration Statement will
be increased by (i) 0.25% per annum for the first 90-day period
immediately following the Shelf Additional Interest Date and (ii) an
additional 0.25% per annum with respect to each subsequent 90-day period, up to
a maximum of 0.50% per annum, in each case until the earlier of (a)  the
Shelf Registration Statement becoming effective and (b) the Securities
becoming freely tradable under the Securities Act, at which time the increased
interest shall cease to accrue.

 

If
the Shelf Registration Statement, if required hereby, has become effective and
thereafter either ceases to be effective or the Prospectus contained therein
ceases to be usable, in each case whether or not permitted by this Agreement,
at any time during the Shelf Effectiveness Period, and such failure to remain
effective or usable exists for more than 30 consecutive calendar days in any 12
month period or 60 calendar days, whether or not consecutive, in any 12-month
period, then the interest rate on the Registrable Securities will be increased by
0.25% per annum for the first 90-day period commencing on the 31st day in such
12-month period or the 61st day in such 12 month period, as applicable, and (ii) an
additional 0.25% per annum with respect to each subsequent 90-day period and
ending, in the case of clauses (i) and (ii) on such date that the
Shelf Registration Statement has again become effective or the Prospectus again
becomes usable, up to a maximum of 0.50% per annum, at which time the increased
interest rate shall cease to accrue.

 

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

 

3.             Registration Procedures.  (a) In connection with its obligations
pursuant to Section 2(a) and Section 2(b) hereof, the
Company shall promptly:

 

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

 

9

 

effective
and remain effective for the applicable period in accordance with Section 2
hereof;

 

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

 

(iii)          to the extent any Free Writing
Prospectus is used, file with the SEC any Free Writing Prospectus that is
required to be filed by the Company with the SEC in accordance with the
Securities Act and to retain any Free Writing Prospectus not required to be
filed;

 

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

 

(v)           use its reasonable best efforts to
register or qualify the Registrable Securities under all applicable state
securities or blue sky laws of such jurisdictions as any Holder of Registrable
Securities covered by a Registration Statement shall reasonably request in
writing reasonably in advance of the time the applicable Registration Statement
becomes effective; cooperate with such Holders in connection with any filings
required to be made with the Financial Industry Regulatory Authority; and do
any and all other acts and things that may be reasonably necessary or advisable
to enable each Holder to complete the disposition in each such jurisdiction of
the Registrable Securities owned by such Holder; provided that the
Company shall not be required to (1) qualify as a foreign corporation or
other entity or as a dealer in securities in any such jurisdiction where it
would not otherwise be required to so qualify, (2) file any

 

10

 

general
consent to service of process in any such jurisdiction or (3) subject
itself to taxation in any such jurisdiction if it is not so subject;

 

(vi)          in the case of a Shelf Registration,
notify each Holder of Registrable Securities and counsel for such Holders and
counsel for the Initial Purchasers promptly and, if requested by any such
Holder or counsel, confirm such advice in writing (1) when a Registration
Statement has become effective, when any post-effective amendment thereto has
been filed, becomes effective and when any Free Writing Prospectus has been
filed or any amendment or supplement to the Prospectus or any Free Writing
Prospectus has been filed, (2) of any request by the SEC or any state
securities authority for amendments and supplements to a Registration
Statement, Prospectus or any Free Writing Prospectus or for additional
information after the Registration Statement has become effective, (3) of
the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of
any proceedings for that purpose, including the receipt by the Company of any
notice of objection of the SEC to the use of a Shelf Registration Statement or
any post-effective amendment thereto pursuant to Rule 401(g)(2) under
the Securities Act, (4) if, between the applicable effective date of a
Shelf Registration Statement and the closing of any sale of Registrable
Securities covered thereby, the representations and warranties of the Company
contained in any underwriting agreement, securities sales agreement or other
similar agreement, if any, relating to an offering of such Registrable
Securities cease to be true and correct in all material respects or if the
Company receives any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation of any proceeding for such purpose, (5) of the happening of any
event during the period a Shelf Registration Statement is effective that makes
any statement made in such Shelf Registration Statement or the related
Prospectus untrue in any material respect or that requires the making of any changes
in such Shelf Registration Statement, Prospectus or any Free Writing Prospectus
in order to make the statements therein not misleading and (6) of any
determination by the Company that a post-effective amendment to a Registration
Statement or any amendment or supplement to the Prospectus or any Free Writing
Prospectus would be appropriate;

 

(vii)         use its reasonable best efforts to
obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement or, in the case of a Shelf Registration, the resolution
of any objection of the SEC pursuant to Rule 401(g)(2), including by
filing an amendment to such Shelf Registration Statement on the proper form, as
soon as practicable and provide prompt notice to each Holder of the withdrawal
of any such order or such resolution;

 

(viii)        in the case of a Shelf Registration,
furnish to each Holder of Registrable Securities, without charge, at least one
conformed copy of each Registration Statement and any post-effective amendment
thereto (without any

 

11

 

documents
incorporated therein by reference or exhibits thereto, unless requested);

 

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

 

(x)            in the case of a Shelf Registration,
upon the occurrence of any event contemplated by Section 3(a)(v)(5) hereof,
use its reasonable best efforts to prepare and file with the SEC a supplement
or post-effective amendment to such Shelf Registration Statement or the related
Prospectus or any Free Writing Prospectus or any document incorporated therein
by reference or file any other required document so that, as thereafter
delivered to purchasers of the Registrable Securities, such Prospectus or Free
Writing Prospectus, as the case may be, will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; and the Company shall notify the Holders of Registrable
Securities to suspend use of the Prospectus or any Free Writing Prospectus as
promptly as practicable after the occurrence of such an event, and such Holders
hereby agree to suspend use of the Prospectus or any Free Writing Prospectus
until the Company has amended or supplemented the Prospectus or any Free
Writing Prospectus to correct such misstatement or omission;

 

(xi)           a reasonable time prior to the filing
of any Registration Statement, any Prospectus or any Free Writing Prospectus,
any amendment to a Registration Statement, amendment or supplement to a
Prospectus or any Free Writing Prospectus or of any document that is to be
incorporated by reference into a Registration Statement or a Prospectus or Free
Writing Prospectus, as the case may be, after initial filing of a Registration
Statement, provide copies of such document to the Initial Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, to the Holders of
Registrable Securities and their counsel) and make such of the representatives
of the Company as shall be reasonably requested by the Initial Purchasers or
their counsel (and, in the case of a Shelf Registration Statement, the Holders
of Registrable Securities or their counsel) available for discussion of such
document; and the Company shall not, at any time after initial filing of a
Registration Statement, use or file any Prospectus, any Free Writing
Prospectus, any amendment of or supplement to a Registration Statement or a
Prospectus or a Free Writing Prospectus, or any document that is to be
incorporated by reference into a Registration Statement, a Prospectus or a Free
Writing Prospectus of which the Initial Purchasers and their counsel (and, in
the case of a Shelf Registration Statement, the Holders of

 

12

 

Registrable
Securities and their counsel) shall not have previously been advised and
furnished a copy or to which the Initial Purchasers or their counsel (and, in
the case of a Shelf Registration Statement, the Holders of Registrable
Securities or their counsel) shall reasonably object;

 

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

 

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

 

(xiv)        in the case of a Shelf Registration,
make available for inspection by a representative of the Holders of the
Registrable Securities (an “Inspector”), any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, any attorneys and
accountants designated by a majority of the Holders of Registrable Securities
to be included in such Shelf Registration and any attorneys and accountants
designated by such Underwriter, at reasonable times and in a reasonable manner,
all pertinent financial and other records, documents and properties of the
Company and its subsidiaries, and cause the respective officers, directors and
employees of the Company to supply all information reasonably requested by any
such Inspector, Underwriter, attorney or accountant in connection with a Shelf
Registration Statement; provided that if any such information is identified by
the Company as being confidential or proprietary, each Person receiving such
information shall take such actions as are reasonably necessary to protect the
confidentiality of such information to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and interests
of any Inspector, Holder or Underwriter);

 

(xv)         if reasonably requested by any Holder
of Registrable Securities covered by a Shelf Registration Statement, promptly
include or incorporate in a Prospectus supplement or post-effective amendment
such information with respect to such Holder as such Holder reasonably requests
to be included or incorporated therein and make all required filings of such
Prospectus supplement or such post-effective amendment as soon as the Company
has received notification of the matters to be so included or incorporated in
such filing; and

 

(xvi)        in the case of a Shelf Registration,
enter into such customary agreements and take all such other actions in
connection therewith (including

 

13

 

those
reasonably requested by the Holders of a majority in principal amount of the
Registrable Securities covered by the Shelf Registration Statement) in order to
expedite or facilitate the disposition of such Registrable Securities including,
but not limited to, an Underwritten Offering and in such connection, (1) to
the extent possible, make such representations and warranties to the Holders
and any Underwriters of such Registrable Securities with respect to the
business of the Company and its subsidiaries and the Registration Statement,
Prospectus, any Free Writing Prospectus and documents incorporated by reference
or deemed incorporated by reference, if any, in each case, in form, substance
and scope as are customarily made by issuers to underwriters in underwritten
offerings and confirm the same if and when requested, (2) obtain opinions
of counsel to the Company (which counsel and opinions, in form, scope and
substance, shall be reasonably satisfactory to the Holders and such
Underwriters and their respective counsel) addressed to each selling Holder and
Underwriter of Registrable Securities, covering the matters customarily covered
in opinions requested in underwritten offerings, (3) obtain “comfort”
letters from the independent registered public accounting firm of the Company
(and, if necessary, any other independent registered public accounting firm of
any subsidiary of the Company, or of any business acquired by the Company for
which financial statements and financial data are or are required to be
included in the Registration Statement) addressed to each selling Holder (to
the extent permitted by applicable professional standards) and Underwriter of
Registrable Securities, such letters to be in customary form and covering
matters of the type customarily covered in “comfort” letters in connection with
underwritten offerings, including but not limited to financial information
contained in any preliminary prospectus, Prospectus or Free Writing Prospectus
and (4) deliver such documents and certificates as may be reasonably
requested by the Holders of a majority in principal amount of the Registrable
Securities being sold or the Underwriters, and which are customarily delivered
in underwritten offerings, to evidence the continued validity of the
representations and warranties of the Company made pursuant to clause (1) above
and to evidence compliance with any customary conditions contained in an
underwriting agreement.

 

(b)           In the case of a Shelf Registration
Statement, the Company may require each Holder of Registrable Securities to
furnish to the Company such information regarding such Holder and the proposed
disposition by such Holder of such Registrable Securities as the Company may
from time to time reasonably request in writing.

 

(c)           In the case of a Shelf Registration
Statement, each Holder of Registrable Securities covered in such Shelf
Registration Statement agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3(a)(v)(3) or
3(a)(v)(5) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Shelf Registration Statement until such
Holder’s receipt of the copies of the supplemented or amended Prospectus or
Free Writing Prospectus contemplated

 

14

 

by
Section 3(a)(ix) hereof and, if so directed by the Company, such
Holder will deliver to the Company all copies in its possession, other than
permanent file copies then in such Holder’s possession, of the Prospectus or
Free Writing Prospectus covering such Registrable Securities that is current at
the time of receipt of such notice.

 

(d)           If the Company shall give any notice
to suspend the disposition of Registrable Securities pursuant to a Registration
Statement, the Company shall extend the period during which such Registration
Statement shall be maintained effective pursuant to this Agreement by the
number of days during the period from and including the date of the giving of
such notice to and including the date when the Holders of such Registrable
Securities shall have received copies of the supplemented or amended Prospectus
or Free Writing Prospectus necessary to resume such dispositions. The Company
may give any such notice only twice during any 365-day period and any such
suspensions shall not exceed 30 days for each suspension and there shall not be
more than two suspensions in effect during any 365-day period.

 

(e)           The Holders of Registrable Securities
covered by a Shelf Registration Statement who desire to do so may sell such
Registrable Securities in an Underwritten Offering.  In any such Underwritten Offering, the
investment bank or investment banks and manager or managers (each an “Underwriter”)
that will administer the offering will be selected by the Holders of a majority
in principal amount of the Registrable Securities included in such offering and
shall be reasonably satisfactory to the Company.

 

4.             Participation of Broker-Dealers
in Exchange Offer.  (a)  The
Staff has taken the position that any broker-dealer that receives Exchange
Securities for its own account in the Exchange Offer in exchange for Securities
that were acquired by such broker-dealer as a result of market-making or other
trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter”
within the meaning of the Securities Act and must deliver a prospectus  meeting
the requirements of the Securities Act in connection with any resale of such
Exchange Securities.

 

The
Company understands that it is the Staff’s position that if the Prospectus
contained in the Exchange Offer Registration Statement includes a plan of
distribution containing a statement to the above effect and the means by which
Participating Broker-Dealers may resell the Exchange Securities, without naming
the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the Securities
Act in connection with resales of Exchange Securities for their own accounts,
so long as the Prospectus otherwise meets the requirements of the Securities
Act.

 

15

 

(b)           In light of the above, and notwithstanding
the other provisions of this Agreement, the Company agrees to amend or
supplement the Prospectus contained in the Exchange Offer Registration
Statement for a period of up to 90 days after the last Exchange Date (as such
period may be extended pursuant to Section 3(d) of this Agreement) if
requested by the Initial Purchasers or by one or more Participating
Broker-Dealers, in order to expedite or facilitate the disposition of any
Exchange Securities by Participating Broker-Dealers consistent with the positions
of the Staff recited in Section 4(a) above.  The Company further agrees that Participating
Broker-Dealers shall be authorized to deliver such Prospectus during such
period in connection with the resales contemplated by this Section 4.

 

(c)           The Initial Purchasers shall have no
liability to the Company or any Holder with respect to any request that they
may make pursuant to Section 4(b) above.

 

5.             Indemnification and Contribution.  (a)  The Company agrees to indemnify and
hold harmless each Initial Purchaser and each Holder, their respective
affiliates, directors and officers and each Person, if any, who controls any
Initial Purchaser or any Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and
all losses, claims, damages and liabilities (including, without limitation,
legal fees and other expenses reasonably incurred in connection with any suit,
action or proceeding or any claim asserted, as such fees and expenses are
incurred), joint or several, that arise out of, or are based upon, (1) any
untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary in order to make the
statements therein not misleading, or (2) any untrue statement or alleged
untrue statement of a material fact contained in any Prospectus, any Free
Writing Prospectus or any “issuer information” (“Issuer Information”) filed or
required to be filed pursuant to Rule 433(d) under the Securities
Act, or any omission or alleged omission to state therein a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case except
insofar as such losses, claims, damages or liabilities arise out of, or are
based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating
to any Initial Purchaser or information relating to any Holder furnished to the
Company in writing through JPMorgan or Goldman, Sachs & Co. or any
selling Holder, respectively, expressly for use therein.  In connection with any Underwritten Offering
permitted by Section 3, the Company will also indemnify the Underwriters,
if any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their respective affiliates and each Person
who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any

 

16

 

Registration
Statement, any Prospectus, any Free Writing Prospectus or any Issuer
Information.

 

(b)           Each Holder agrees, severally and not
jointly, to indemnify and hold harmless the Company, the Initial Purchasers and
the other selling Holders, the directors of the Company, each officer of the
Company who signed the Registration Statement and each Person, if any, who
controls the Company, any Initial Purchaser and any other selling Holder within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the indemnity set forth in paragraph (a) above,
but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with any
information relating to such Holder furnished to the Company in writing by such
Holder expressly for use in any Registration Statement, any Prospectus and any
Free Writing Prospectus. In connection with any Underwritten Offering permitted
by Section 3, the Underwriters will enter into agreements providing for
the indemnification of the Company in form and substance customary for
underwritten offerings of that type.

 

(c)           If any suit, action, proceeding
(including any governmental or regulatory investigation), claim or demand shall
be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to Section 5(a) or 5(b) above, such
Person (the “Indemnified Person”) shall promptly notify the Person against whom
such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve
it from any liability that it may have under this Section 5 except to the
extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided, further,
that the failure to notify the Indemnifying Person shall not relieve it from
any liability that it may have to an Indemnified Person otherwise than under
this Section 5.  If any such
proceeding shall be brought or asserted against an Indemnified Person and it
shall have notified the Indemnifying Person thereof, the Indemnifying Person
shall retain counsel reasonably satisfactory to the Indemnified Person to
represent the Indemnified Person and any others entitled to indemnification
pursuant to this Section 5 that the Indemnifying Person may designate in
such proceeding and shall pay the fees and expenses of such counsel related to
such proceeding, as incurred.  In any
such proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless (i) the Indemnifying Person and the
Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the Indemnified Person; (iii) the Indemnified
Person shall have reasonably concluded that there may be legal defenses
available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the Indemnifying Person and the

 

17

 

Indemnified
Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them.  It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related
proceeding in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all
Indemnified Persons, and that all such fees and expenses shall be reimbursed as
they are incurred.  Any such separate
firm (x) for any Initial Purchaser, its affiliates, directors and officers
and any control Persons of such Initial Purchaser shall be designated in
writing jointly by JPMorgan and Goldman, Sachs & Co., (y) for any
Holder, its directors and officers and any control Persons of such Holder shall
be designated in writing by the Majority Holders and (z) in all other
cases shall be designated in writing by the Company.  The Indemnifying Person shall not be liable
for any settlement of any proceeding effected without its written consent, but
if settled with such consent or if there be a final judgment for the plaintiff,
the Indemnifying Person agrees to indemnify each Indemnified Person from and
against any loss or liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for fees and expenses of counsel as
contemplated by this paragraph, the Indemnifying Person shall be liable for any
settlement of any proceeding effected without its written consent if (i) the
Indemnifying Person shall not have responded to such written request, (ii) such
settlement is entered into more than 30 days after receipt by the Indemnifying
Person of such request on terms and conditions not less favorable than those
set forth in such written request and (iii) the Indemnifying Person shall
not have reimbursed the Indemnified Person in accordance with such request
prior to the date of such settlement.  No
Indemnifying Person shall, without the written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is or could have been a party and indemnification
could have been sought hereunder by such Indemnified Person, unless such
settlement (A) includes an unconditional release of such Indemnified
Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such
proceeding and (B) does not include any statement as to or any admission
of fault, culpability or a failure to act by or on behalf of any Indemnified
Person.

 

(e)           If the indemnification provided for
in Section 5(a), 5(b) and 5(c) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall
contribute to the amount paid or payable by such Indemnified Person as a result
of such losses, claims, damages or liabilities (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company from
the offering of the Securities and the Exchange Securities, on the one hand,
and by the Holders from receiving Securities or Exchange Securities

 

18

 

registered
under the Securities Act, on the other hand, or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) but also the relative fault of the Company on the one
hand and the Holders on the other in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. 
The relative fault of the Company on the one hand and the Holders on the
other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company or by the Holders and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

 

(f)            The Company and the Holders agree
that it would not be just and equitable if contribution pursuant to this Section 5
were determined by pro  rata allocation (even if the Holders were
treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in
paragraph (e) above.  The amount
paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in paragraph (e) above shall be deemed
to include, subject to the limitations set forth above, any legal or other
expenses incurred by such Indemnified Person in connection with any such action
or claim.  Notwithstanding the provisions
of this Section 5, in no event shall a Holder be required to contribute
any amount in excess of the amount by which the
total price at which the Securities or Exchange Securities sold by such Holder exceeds
the amount of any damages that such 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 Securities
Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation.  The
Holders’ obligations to contribute pursuant to this Section 5 are several
and not joint.

 

(g)           The remedies provided for in this Section 5
are not exclusive and shall not limit any rights or remedies that may otherwise
be available to any Indemnified Person at law or in equity.

 

(h)           The indemnity and contribution
provisions contained in this Section 5 shall remain operative and in full
force and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of the Initial Purchasers or any Holder or
any Person controlling any Initial Purchaser or any Holder, or by or on behalf
of the Company or the officers or directors of or any Person controlling the
Company, (iii) acceptance of any of the Exchange Securities and (iv) any
sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

19

 

6.             General.

 

(a)           No Inconsistent
Agreements.   The Company represents and warrants to, and
agrees with, the Initial Purchasers that (i) the rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of any other outstanding securities issued or
guaranteed by the Company under any other agreement and (ii) the Company
has not entered into, or on or after the date of this Agreement will not enter
into, any agreement that is inconsistent with the rights granted to the Holders
of Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof.

 

(b)           Amendments
and Waivers.   The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
consent; provided that no amendment, modification, supplement, waiver or
consent to any departure from the provisions of Section 5 hereof shall be
effective as against any Holder of Registrable Securities unless consented to
in writing by such Holder.  Any
amendments, modifications, supplements, waivers or consents pursuant to this Section 6(b) shall
be by a writing executed by each of the parties hereto.

 

(c)           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand-delivery,
registered first-class mail, telex, telecopier, or any courier guaranteeing
overnight delivery (i) if to a Holder, at the most current address given
by such Holder to the Company by means of a notice given in accordance with the
provisions of this Section 6(c), which address initially is, with respect
to the Initial Purchasers, the address set forth in the Purchase Agreement; (ii) if
to the Company, initially at the Company’s address set forth in the Purchase
Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c); and (iii) to
such other persons at their respective addresses as provided in the Purchase
Agreement and thereafter at such other address, notice of which is given in accordance
with the provisions of this Section 6(c). 
All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and on
the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.  Copies of all such
notices, demands or other communications shall be concurrently delivered by the
Person giving the same to the Trustee, at the address specified in the
Indenture.

 

(d)           Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors,
assigns and transferees of each of the

 

20

 

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 Indenture.  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 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 and such Person shall be entitled
to receive the benefits hereof.  The
Initial Purchasers (in their capacity as Initial Purchasers) shall have no
liability or obligation to the Company with respect to any failure by a Holder
to comply with, or any breach by any Holder of, any of the obligations of such
Holder under this Agreement.

 

(e)           Third Party Beneficiaries.  Each Holder shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and 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 other Holders
hereunder.

 

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

 

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

 

(h)           Governing Law.  This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York.

 

(i)            Entire Agreement;
Severability.  This Agreement contains the entire agreement
between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with
respect thereto.  If any term, provision,
covenant or restriction contained in this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable or against
public policy, the remainder of the terms, provisions, covenants and
restrictions contained herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated. 
The Company and the Initial Purchasers shall endeavor in good faith
negotiations to replace the invalid, void or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible
to that of the invalid, void or unenforceable provisions.

 

21

 

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

 

	
   

  	
  BEST
  BUY CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ryan D. Robinson

  
	
   

  	
  Name:  Ryan D. Robinson

  
	
   

  	
  Title:    Senior Vice President, U.S. SBU CFO and
  Treasurer

  

 

 

Confirmed
and accepted as of the date first above written:

 

	
  J.P.
  MORGAN SECURITIES INC.

  
	
   

  
	
   

  
	
  By

  	
  /s/
  Maria Sraneck, Executive Director

  	
   

  
	
  Authorized Signatory

  	
   

  
	
   

  
	
   

  
	
   

  	
  /s/
  Goldman, Sachs & Co.

  	
   

  
	
  (Goldman, Sachs & Co.)

  	
   

  

 

For
themselves and on behalf of the

 several Initial Purchasers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]