Document:

Exhibit 4.4

 

ELANCO ANIMAL HEALTH INCORPORATED,

 

as Issuer,

 

AND

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Trustee

 

Second Supplemental Indenture

 

Dated as of January 27, 2020

 

to Indenture

 

Dated as of August 28, 2018

 

2.75% Senior Amortizing Notes due 2023

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE 1
	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 
	Section 1.01.	Scope of Supplemental Indenture; General	2
	 	 	 
	Section 1.02.	Definitions	2
	 
	ARTICLE 2
	 
	THE SECURITIES
	 
	Section 2.01.	Title and Terms	6
	 	 	 
	Section 2.02.	Installment Payments	7
	 	 	 
	Section 2.03.	Maturity Date	9
	 	 	 
	Section 2.04.	Right to Exchange or Register a Transfer	9
	 
	ARTICLE 3
	 
	NO REDEMPTION
	 
	Section 3.01.	Article 3 of the Base Indenture Inapplicable	9
	 
	ARTICLE 4
	 
	COVENANTS
	 
	Section 4.01.	Amendments to Article 5 of the Base Indenture	9
	 
	ARTICLE 5
	 
	SUCCESSOR CORPORATION
	 
	Section 5.01.	Amendments to Article 6 of the Base Indenture	11
	 
	ARTICLE 6
	 
	DEFAULTS AND REMEDIES
	 
	Section 6.01.	Amendments to Article 7 of the Base Indenture	12

 

    	 	i	 

     

    

 

	ARTICLE 7
	 
	THE TRUSTEE
	 
	Section 7.01.	Amendments to Article 8 of the Base Indenture	19
	 
	ARTICLE 8
	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 
	Section 8.01.	Amendments to Article 10 of the Base Indenture	19
	 
	ARTICLE 9
	 
	SATISFACTION AND DISCHARGE; DEFEASANCE
	 
	Section 9.01.	Amendments to Article 11 of the Base Indenture	21
	 
	ARTICLE 10
	 
	REPURCHASE OF NOTES AT THE OPTION OF THE HOLDER
	 
	Section 10.01.	Offer to Repurchase	25
	 	 	 
	Section 10.02.	Early Mandatory Settlement Notice	25
	 	 	 
	Section 10.03.	Procedures for Exercise	25
	 	 	 
	Section 10.04.	Withdrawal of Repurchase Notice	26
	 	 	 
	Section 10.05.	Effect of Repurchase	26
	 	 	 
	Section 10.06.	No Sinking Fund	27
	 
	ARTICLE 11
	 
	TAX TREATMENT
	 
	Section 11.01.	Tax Treatment	27
	 
	ARTICLE 12
	 
	MISCELLANEOUS
	 
	Section 12.01.	Conflict with Trust Indenture Act	27
	 	 	 
	Section 12.02.	Effect of Headings and Table of Contents	28
	 	 	 
	Section 12.03.	Successors and Assigns	28
	 	 	 
	Section 12.04.	Separability	28
	 	 	 
	Section 12.05.	Benefits of Supplemental Indenture	28

 

    	 	ii	 

     

    

 

	Section 12.06.	Governing Law and Jury Trial Waiver	28
	 	 	 
	Section 12.07.	Trustee Address	28
	 	 	 
	Section 12.08.	Ratification of Indenture	28

 

    	 	iii	 

     

    

 

SECOND SUPPLEMENTAL INDENTURE, dated as
of January 27, 2020 (this “Supplemental Indenture”), between ELANCO ANIMAL HEALTH INCORPORATED, an Indiana
corporation (the “Company”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as trustee
(the “Trustee”), supplementing the Indenture, dated as of August 28, 2018, between the Company and the
Trustee (the “Base Indenture”).

 

RECITALS OF THE COMPANY:

 

WHEREAS, the Company executed and delivered
the Base Indenture to provide for, among other things, the issuance of unsecured debt securities in an unlimited aggregate principal
amount to be issued from time to time in one or more series as provided in the Base Indenture;

 

WHEREAS, the Base Indenture provides that
the Company may enter into an indenture supplemental to the Base Indenture to establish the form and terms of any series of Securities
as provided by Section 2.01 and Section 10.01(g) of the Base Indenture;

 

WHEREAS, the Company desires and has requested
the Trustee to join it in the execution and delivery of this Supplemental Indenture in order to establish and provide for the issuance
by the Company of a series of Securities designated as its 2.75% Senior Amortizing Notes due 2023 (the “Notes”,
and each $7.2007 of initial principal amount of such Securities, a “Note”), substantially in the form attached
hereto as Exhibit A, on the terms set forth herein;

 

WHEREAS, the Company now wishes to issue
Notes in an aggregate initial principal amount of $79,207,700, each Note initially to be issued as a component of the Units (as
defined herein) being issued on the date hereof by the Company pursuant to the Purchase Contract Agreement, dated as of January 27,
2020, between the Company and Deutsche Bank Trust Company Americas, as Purchase Contract Agent, as Trustee and as attorney-in-fact
for the holders of Equity-Linked Securities from time to time (the “Purchase Contract Agreement”); and

 

WHEREAS, the Company has requested that
the Trustee execute and deliver this Supplemental Indenture, and all requirements necessary to make (i) this Supplemental
Indenture a valid instrument in accordance with its terms and (ii) the Notes, when executed by the Company and authenticated
and delivered by the Trustee, the valid obligations of the Company, have been performed, and the execution and delivery of this
Supplemental Indenture have been duly authorized in all respects.

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
WITNESSETH, for and in consideration of the premises and the purchases of the Notes by the Holders thereof, it is mutually agreed,
for the benefit of the parties hereto and the equal and proportionate benefit of all Holders of the Notes, as follows:

 

     

     

    

 

ARTICLE 1

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

 

Section 1.01.   Scope
of Supplemental Indenture; General. The changes, modifications and supplements to the Base Indenture effected by this
Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the Notes (which shall be initially
in the aggregate initial principal amount of $79,207,700) and shall not apply to any other Securities that may be issued under
the Base Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes,
modifications and supplements. This Supplemental Indenture shall supersede any corresponding provisions in the Base Indenture.

 

Section 1.02.   Definitions.
For all purposes of the Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(i)          the
terms defined in this Article 1 shall have the meanings assigned to them in this Article and include the plural as well
as the singular;

 

(ii)         all
words, terms and phrases defined in the Base Indenture (but not otherwise defined herein) shall have the same meaning herein as
in the Base Indenture;

 

(iii)        all
other terms used herein that are defined in the Trust Indenture Act, either directly or by reference therein, shall have the meanings
assigned to them therein; and

 

(iv)        the
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Supplemental
Indenture as a whole and not to any particular Article, Section or other subdivision.

 

“Agent Members” has the
meaning ascribed to such term in Section 2.01(d).

 

“Base Indenture” has
the meaning ascribed to it in the preamble hereof.

 

“Beneficial Holder” means,
with respect to a Global Note, a Person who is the beneficial owner of such Book-Entry Interest as reflected on the books of the
Depository or on the books of a Person maintaining an account with the Depository (directly as a Depository Participant or as an
indirect participant, in each case in accordance with the rules of the Depository).

 

“Book-Entry Interest”
means a beneficial interest in a Global Note, registered in the name of a Depository or a nominee thereof, ownership and transfers
of which shall be maintained and made through book entries by such Depository.

 

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

 

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

 

“Common Stock” means
the common stock, no par value, of the Company or such other securities or assets as shall be deliverable in replacement thereof
under the Purchase Contract Agreement pursuant to the terms thereof.

 

“Company” has the meaning
ascribed to it in the preamble hereof and shall also refer to any successor obligor under the Indenture.

 

    	 	2	 

     

    

 

“Component Note” means
a Note in global form and attached to a Global Unit that (a) shall evidence the number of Notes specified therein that are
components of the Units evidenced by such Global Unit, (b) shall be registered on the Security Register for the Notes in the
name of the Purchase Contract Agent, as attorney-in-fact of holder(s) of the Units of which such Notes form a part, and (c) shall
be held by the Purchase Contract Agent as attorney-in-fact for such holder(s), together with the Global Unit, as custodian of such
Global Unit for the Depository.

 

“Defaulted Installment Payment”
has the meaning ascribed to it in Section 2.02(d).

 

“Depository” means The
Depository Trust Company until a successor Depository shall have become such pursuant to the applicable provisions of the Indenture,
and thereafter “Depository” shall mean such successor Depository.

 

“Depository Participant”
means a broker, dealer, bank, other financial institution or other Person for whom from time to time the Depository effects book-entry
transfers of securities deposited with the Depository.

 

“Early Mandatory Settlement Date”
has the meaning ascribed to it in the Purchase Contract Agreement.

 

“Early Mandatory Settlement Notice”
has the meaning ascribed to it in the Purchase Contract Agreement.

 

“Early Mandatory Settlement Right”
has the meaning ascribed to it in the Purchase Contract Agreement.

 

“Equity-Linked Securities”
has the meaning ascribed to it in the Purchase Contract Agreement.

 

“Fundamental Change”
has the meaning ascribed to such term in the Purchase Contract Agreement.

 

“Global Note” means any
Note that is a Global Security.

 

“Global Unit” has the
meaning ascribed to such term in the Purchase Contract Agreement.

 

“Holder” means the Person
in whose name a Note is registered on the Security Registrar’s books.

 

“Indenture” means the
Base Indenture, as supplemented by this Supplemental Indenture as originally executed or as it may from time to time be supplemented
or amended by one or more indentures supplemental thereto entered into pursuant to the applicable provisions thereof, including,
for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed
to be a part of and govern the Base Indenture, this Supplemental Indenture and any such supplemental indenture, respectively.

 

“Initial Principal Amount”
means $7.2007 initial principal amount per Note.

 

    	 	3	 

     

    

 

“Installment Payment”
has the meaning ascribed to it in Section 2.02(a).

 

“Installment Payment Date”
means each February 1, May 1, August 1 and November 1, commencing on May 1, 2020 and ending on the Maturity
Date.

 

“Installment Payment Period”
means (i) in the case of the first Installment Payment Date on May 1, 2020, the period from, and including, the Issue
Date to, but excluding, such first Installment Payment Date and (ii) in the case of any subsequent Installment Payment Date,
the quarterly period from, and including, the immediately preceding Installment Payment Date to, but excluding, such Installment
Payment Date.

 

“Issue Date” means January 27,
2020.

 

“Maturity” when used
with respect to any Note, means the date on which any Installment Payment becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration or otherwise.

 

“Maturity Date” means
February 1, 2023.

 

“Note” and “Notes”
have the respective meanings ascribed to such terms in the preamble hereof and include, for the avoidance of doubt, both Separate
Notes and Notes that constitute part of a Unit.

 

“Paying Agent” means
any Person (including the Company) authorized by the Company to pay the principal amount of or interest on any Notes on behalf
of the Company. The Paying Agent shall initially be the Trustee.

 

“Prospectus” means the
preliminary prospectus supplement dated January 21, 2020, as supplemented by the related pricing term sheet dated January 22,
2020, related to the offering and sale of the Notes.

 

“Purchase Contract” means
a prepaid stock purchase contract obligating the Company to deliver shares of Common Stock on the terms and subject to the conditions
set forth in the Purchase Contract Agreement.

 

“Purchase Contract Agent”
means Deutsche Bank Trust Company Americas, as purchase contract agent under the Purchase Contract Agreement, until a successor
Purchase Contract Agent shall have become such pursuant to the applicable provisions of the Purchase Contract Agreement, and thereafter
 “Purchase Contract Agent” shall mean such Person.

 

“Purchase Contract Agreement”
has the meaning ascribed to it in the preamble hereof.

 

“Regular Record Date”
means, with respect to any February 1, May 1, August 1 and November 1 Installment Payment Date, the immediately
preceding January 15, April 15, July 15 or October 15, respectively.

 

“Repurchase Date” shall
be a date specified by the Company in the Early Mandatory Settlement Notice, which date shall be at least 20 but not more than
35 Business Days following the date of the Early Mandatory Settlement Notice (and which may or may not fall on the Early Mandatory
Settlement Date).

 

    	 	4	 

     

    

 

“Repurchase Notice” means
a notice in the form entitled “Form of Repurchase Notice” attached to the Notes.

 

“Repurchase Price” means,
(a) with respect to a Note to be repurchased pursuant to Article 11, an amount equal to the principal amount of such
Note as of the Repurchase Date, plus accrued and unpaid interest, if any, on such principal amount from, and including,
the immediately preceding Installment Payment Date (or, if none, from, and including, the Issue Date) to, but not including, such
Repurchase Date, calculated at an annual rate of 2.75%; provided that, if the Repurchase Date falls after a Regular Record
Date for any Installment Payment and on or prior to the immediately succeeding Installment Payment Date, the Installment Payment
payable on such Installment Payment Date will be paid on such Installment Payment Date to the holder as of such Regular Record
Date and will not be included in the Repurchase Price per Note or (b) with respect to a Note that has been accelerated pursuant
to Article 6, an amount equal to the principal amount of such Note as of the date of acceleration, plus accrued and unpaid
interest, if any, on such principal amount from, and including, the last Installment Payment Date in respect of which the relevant
Installment Payment was paid (or, if none, from, and including, the Issue Date) to, but not including, the date of acceleration.

 

“Repurchase Right” has
the meaning ascribed to it in Section 10.01.

 

“Separate Note” means
a Note that has been separated from a Unit in accordance with the terms of the Purchase Contract Agreement.

 

“Separate Purchase Contract”
means a Purchase Contract that has been separated from a Unit in accordance with the terms of the Purchase Contract Agreement.

 

“Stated Maturity”, when
used with respect to any Note or any Installment Payment thereon, means the date specified in such Note as the fixed date on which
the Repurchase Price of such Note or such Installment Payment is due and payable.

 

“Supplemental Indenture”
has the meaning ascribed to it in the preamble hereof.

 

“Surviving Person” has
the meaning ascribed to it in Section 5.01(a)

 

“Trustee” means the party
named in the preamble hereof until a successor replaces such party in accordance with the applicable provisions of the Indenture
and thereafter means the successor serving hereunder.

 

“Unit” means the collective
rights of a holder of a 5.00% Tangible Equity Unit, with a stated amount of $50.00 (representing an issue price of $7.2007 for
the Note included in each Unit and an issue price of $42.7993 for the Purchase Contract included in each Unit), issued by the Company
pursuant to the Purchase Contract Agreement, each consisting of a single Purchase Contract and a single Note prior to separation
or subsequent to recreation thereof pursuant to the Purchase Contract Agreement.

 

    	 	5	 

     

    

 

 

ARTICLE 2

 

THE SECURITIES

 

Section 2.01.   Title
and Terms.

 

(a)            There
is hereby authorized a series of Securities designated the “2.75% Senior Amortizing Notes due 2023” limited in aggregate
initial principal amount to $79,207,700, which amount shall be as set forth in any written order of the Company for authentication
and delivery of Notes pursuant to Section 2.03 of the Base Indenture.

 

(b)            The
Notes will initially be issued as Component Notes in substantially the form of Attachment 4 to the form of Global Unit attached
as Exhibit A to the Purchase Contract Agreement, with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends
or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently
herewith, be determined by the officers of the Company executing such Notes, as evidenced by their execution of the Notes. The
Notes will initially be attached to the related Global Unit and registered in the name of Deutsche Bank Trust Company Americas,
as attorney-in-fact of the holder(s) of such Global Unit.

 

(c)            Holders
of Units have the right to separate such Units into their constituent parts, consisting of Separate Purchase Contracts and Separate
Notes, during the times, and under the circumstances, described in Section 2.03 of the Purchase Contract Agreement. Upon separation
of any Unit into its constituent parts, (i) if such Unit is a Global Unit, the Separate Notes will initially be evidenced
by a Global Note (the “Global Note”) in substantially the form of Exhibit A hereto, which is incorporated
into and shall be deemed a part of this Supplemental Indenture, and deposited with the Trustee as custodian for the Depository
and registered in the name of the Depository or its nominee, or (ii) if such Unit is in definitive, registered form, the Separate
Notes will be evidenced by Certificated Notes in substantially the form of Exhibit A hereto, in each case, as provided in
Section 2.03 of the Purchase Contract Agreement. Following separation of any Unit into its constituent Separate Note and Separate
Purchase Contract, the Separate Notes are transferable independently from the Separate Purchase Contracts. In addition, Separate
Notes can be recombined with Separate Purchase Contracts to recreate Units, as provided for in Section 2.04 of the Purchase
Contract Agreement.

 

(d)            The
Global Note representing Separate Notes (which shall initially have a balance of zero Notes) shall be registered in the name of
Cede & Co., as nominee of the Depository and delivered to the Trustee, as custodian for the Depository. Members of, or
participants in, the Depository (“Agent Members”) shall have no rights under the Indenture with respect to any
Global Note (or any Global Unit in the case of Component Notes) held on their behalf by the Depository, or the Trustee as its custodian,
or under the Global Note (or such Global Unit), and the Depository may be treated by the Company, the Trustee and any agent of
the Company or the Trustee as the absolute owner of the Global Note (or such Global Unit) for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect
to any written certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and
its Agent Members, the operation of customary practices governing the exercise of the rights of any Holder.

 

    	 	6	 

     

    

 

(e)            The
Notes shall be issuable in denominations of initial principal amounts equal to the Initial Principal Amount and integral multiples
in excess thereof.

 

Section 2.02.   Installment
Payments.

 

(a)            The
Company shall pay installments on the Notes (each such payment, an “Installment Payment”) in cash at the
place, at the respective times and in the manner provided in the Notes. Installment Payments shall be paid to the Person in
whose name a Note is registered at the close of business on the Regular Record Date corresponding to such Installment Payment
Date. The Company has initially designated the Trustee as its Paying Agent and Security Registrar in respect of the Notes and
its agency in New York, New York as a place where Notes may be presented for payment or for registration of transfer. The
Company may, however, change the Paying Agent or Security Registrar for the Notes without prior notice to the Holders
thereof, and the Company may act as Paying Agent or Security Registrar.

 

(b)            On
the first Installment Payment Date occurring on May 1, 2020, the Company shall pay, in cash, an Installment Payment with respect
to each Note in an amount equal to $0.6528 per Note, and on each Installment Payment Date thereafter, the Company shall pay, in
cash, equal quarterly Installment Payments with respect to each Note in an amount equal to $0.6250 per Note; provided that,
in respect of any Certificated Note, the final Installment Payment shall be made only against surrender of such Certificated Note
to the Paying Agent.

 

(c)            Each
Installment Payment shall constitute a payment of interest (at a rate of 2.75% per annum) and a partial repayment of principal
on the Notes, allocated with respect to each Note as set forth in the schedule below:

 

	Scheduled Installment Payment Date	 	Amount of

 Principal	 	 	Amount of

 Interest	 
	May 1, 2020	 	$	0.6011	 	 	$	0.0517	 
	August 1, 2020	 	$	0.5796	 	 	$	0.0454	 
	November 1, 2020	 	$	0.5836	 	 	$	0.0414	 
	February 1, 2021	 	$	0.5876	 	 	$	0.0374	 
	May 1, 2021	 	$	0.5917	 	 	$	0.0333	 
	August 1, 2021	 	$	0.5957	 	 	$	0.0293	 
	November 1, 2021	 	$	0.5998	 	 	$	0.0252	 
	February 1, 2022	 	$	0.6040	 	 	$	0.0210	 
	May 1, 2022	 	$	0.6081	 	 	$	0.0169	 
	August 1, 2022	 	$	0.6123	 	 	$	0.0127	 
	November 1, 2022	 	$	0.6165	 	 	$	0.0085	 
	February 1, 2023	 	$	0.6207	 	 	$	0.0043	 

 

    	 	7	 

     

    

 

(d)            Each
Installment Payment for any Installment Payment Period shall be computed on the basis of a 360-day year of twelve 30-day months.
If an Installment Payment is payable for any period shorter or longer than a full Installment Payment Period, such Installment
Payment shall be computed on the basis of the actual number of days elapsed per 30-day month. Furthermore, if any date on which
an Installment Payment is payable is not a Business Day, then payment of the Installment Payment on such date shall be made on
the next succeeding day that is a Business Day, and without any interest or other payment in respect of any such delay.

 

Any Installment Payment on any Note which
is payable, but is not punctually paid or duly provided for, on any Installment Payment Date (herein called “Defaulted
Installment Payment”) shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue
of having been such Holder, and such Defaulted Installment Payment may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:

 

(1)            The
Company may elect to make payment of any Defaulted Installment Payment to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on a Special Record Date for the payment of such Defaulted Installment
Payment, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Installment Payment proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Installment
Payment or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Installment Payment as in this
Clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Installment Payment which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Installment
Payment and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Notes at his address
as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Installment Payment and the Special Record Date therefor having been so mailed, such Defaulted Installment Payment
shall be paid to the Persons in whose names the Notes (or their respective Predecessor Securities) are registered at the close
of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2).

 

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

 

    	 	8	 

     

    

 

Section 2.03.   Maturity
Date. The date on which the final Installment Payment on the Notes shall be due, unless the Notes are accelerated
pursuant to the terms hereof or otherwise paid prior to Maturity in connection with a Holder’s exercise of the Repurchase
Right, shall be the Maturity Date.

 

Section 2.04.   Right
to Exchange or Register a Transfer.

 

(a)            The
Company shall not be required to exchange or register a transfer of any Note if the Holder thereof has exercised his, her or its
right, if any, to require the Company to repurchase such Note in whole or in part, except the portion of such Note not required
to be repurchased.

 

(b)            For
purposes of any Note that constitutes part of a Unit, Section 2.05 of the Base Indenture (as modified by this Supplemental
Indenture) shall be subject to the provisions of the Purchase Contract Agreement.

 

ARTICLE 3

 

NO REDEMPTION

 

Section 3.01.   Article 3
of the Base Indenture Inapplicable. The Notes shall not be redeemable at the option of the Company and Article 3
of the Base Indenture shall not apply to the Notes.

 

ARTICLE 4

 

COVENANTS

 

Section 4.01.   Amendments
to Article 5 of the Base Indenture.

 

(a)            For
purposes of the Notes, Section 5.01 of the Base Indenture shall be amended and restated in its entirety with the following:

 

“The Company covenants and
agrees for the benefit of the Notes that it will duly and punctually pay the Repurchase Price and Installment Payments on the Notes
in accordance with the terms of the Notes and this Indenture.”

 

(b)            For
purposes of the Notes, Section 5.03 of the Base Indenture shall be amended and restated in its entirety with the following:

 

“(a)          If
the Company shall at any time act as its own Paying Agent with respect to the Notes, it will, on or before each due date of the
Repurchase Price and Installment Payments on the Notes, segregate and hold in trust for the benefit of the Persons entitled thereto
a sum sufficient to pay the Repurchase Price and Installment Payments so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act.

 

    	 	9	 

     

    

 

(b)            Whenever
the Company shall have one or more Paying Agents for the Notes, it will, on or prior to each due date of the Repurchase
Price and Installment Payments on the Notes, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be
held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee of its action or failure so to act.

 

(c)            The
Company will cause each Paying Agent for the Notes other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply
with the provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2) during the continuance of any default
by the Company (or any other obligor upon the Notes) in the making of any payment in respect of the Notes, upon the written request
of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of the Notes.

 

(d)            The
Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose,
pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust hereunder by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such money.

 

(e)            Any
money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the Repurchase Price
and Installment Payments on any Note and remaining unclaimed for two years after such Repurchase Price and Installment Payment
has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged
from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general circulation in the Borough of Manhattan, The City
of New York, New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company.”

 

    	 	10	 

     

    

 

ARTICLE 5

 

SUCCESSOR CORPORATION

 

Section 5.01.   Amendments
to Article 6 of the Base Indenture.

 

(a)            For
purposes of the Notes, Article 6 of the Base Indenture shall be amended and restated in its entirety to the following:

 

“Section 6.01 When
Company May Merge, Etc. The Company shall not consolidate or merge with or into any other entity, or sell, transfer, lease
or otherwise convey its properties and assets as an entirety or substantially as an entirety to any entity, unless:

 

(a)            (i) the
Company is the continuing entity (in the case of a merger) or (ii) the successor entity formed by such consolidation or into
which it is merged or which acquires by sale, transfer, lease or other conveyance of its properties and assets, as an entirety
or substantially as an entirety (any such other entity being referred to herein as the “Surviving Person”),
is a corporation organized and existing under the laws of the United States of America or any State thereof, the District of Columbia
or any territory thereof, and expressly assumes, by supplemental indenture, the due and punctual payment of the Installment Payments
on the Notes and the performance of all of the covenants under this Indenture;

 

(b)            immediately
after giving effect to the transaction, no Event of Default, and no event which after notice or lapse of time or both would become
an Event of Default under this Indenture, has or will have occurred and be continuing; and

 

(c)            if
a supplemental indenture is required in connection with such transaction, the Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that such consolidation, merger, assignment, or transfer and such supplemental
indenture comply with this Article 6 and that all conditions precedent herein provided relating to such transaction have been
satisfied.

 

Notwithstanding the foregoing,
in no event shall this Section 6.01 be construed to prohibit or otherwise restrict the Acquisition (as such term is defined
in the Prospectus) or any related transactions.

 

Section 6.02   Successor
Corporation Substituted. Upon any consolidation or merger, or any transfer of assets in accordance with Section 6.01,
the Surviving Person formed by such consolidation or into which the Company is merged or to which such transfer is made
shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with
the same effect as if such Surviving Person had been named as the Company herein. When a Surviving Person duly assumes all of
the obligations of the Company pursuant hereto and pursuant to the Notes, the predecessor shall be relieved of the
performance and observance of all obligations and covenants of this Indenture and the Notes, including but not limited to the
obligation to make payment of the Installment Payments on all the Notes then outstanding, and the Company may thereupon or
any time thereafter be liquidated and dissolved.”

 

    	 	11	 

     

    

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

Section 6.01.   Amendments
to Article 7 of the Base Indenture. For purposes of the Notes, Article 7 of the Base Indenture shall be amended
and restated in its entirety by the following:

 

“Section 7.01   Events
of Default. “Event of Default”, wherever used herein with respect to Notes, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation
of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body):

 

(a)         default
in the payment of any Installment Payment on any Notes as and when the same shall become due and payable and continuance of such
failure for a period of 30 days; or

 

(b)         default
in the payment of the Repurchase Price of any Notes when the same shall become due and payable; or

 

(c)         failure
by the Company to give notice of a Fundamental Change pursuant to Section 4.07 of the Purchase Contract Agreement when due
and continuance of such failure for a period of five Business Days; or

 

(d)         default
in the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty
a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly
been included in this Indenture solely for the benefit of series of Notes other than the Notes), and continuance of such default
or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or
to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
or

 

(e)         the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in
an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or (B) a decree or order adjudging the Company a bankrupt or insolvent, or approving as properly filed
a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any
applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its
affairs, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect
for a period of 60 consecutive days; or

 

    	 	12	 

     

    

 

(f)         the
commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization
or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the
entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case
or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable
Federal or State law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its
property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability
to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action.

 

Notwithstanding anything to the
contrary herein, in no event shall the Acquisition (as defined in the Prospectus) and related transactions constitute an Event
of Default under the Indenture.

 

Section 7.02   Acceleration
of Maturity; Rescission and Annulment.

 

(a)          If
an Event of Default with respect to Notes at the time Outstanding occurs and is continuing, then in every such case the Trustee
or the Holders of not less than 25% in principal amount of the Outstanding Notes may declare the Notes to be due and payable immediately,
by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration the Repurchase Price
shall become immediately due and payable. If an Event of Default described in Section 7.01(e) or Section 7.01(f) occurs
and is continuing, the Repurchase Price on all the Notes will become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holders.

 

(b)          At
any time after such a declaration of acceleration with respect to Notes has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of
a majority in principal amount of the Outstanding Notes, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:

 

(i)           the
Company has paid or deposited with the Trustee a sum sufficient to pay:

 

(A)         all
overdue Installment Payments on all Notes,

 

    	 	13	 

     

    

 

(B)          the
Repurchase Price on any Notes which have become due otherwise than by such declaration of acceleration and any interest thereon
at the rate or rates prescribed therefor in such Notes,

 

(C)          to
the extent that payment of such interest is lawful, interest upon overdue Repurchase Price and Installment Payments at the rate
or rates prescribed therefor in such Notes, and

 

(D)          all
sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel; and

 

(ii)          all
Events of Default with respect to Notes, other than the non-payment of the Repurchase Price of Notes which have become due solely
by such declaration of acceleration, have been cured or waived as provided in Section 7.13.

 

(c)          No
such rescission shall affect any subsequent default or impair any right consequent thereon.

 

Section 7.03   Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

(a)          The
Company covenants that if:

 

(i)            default
is made in the payment of any Installment Payments on any Note when such Installment Payment becomes due and payable and such default
continues for a period of 30 days, or

 

(ii)            default
is made in the Repurchase Price of any Note at the Maturity thereof,

 

the Company will, upon demand of the Trustee,
pay to it, for the benefit of the Holders of such Notes, the whole amount then due and payable on such Notes for the
Repurchase Price and Installment Payments and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue Repurchase Price or Installment Payments, at the rate or rates prescribed therefor in such Notes,
and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

(b)          If
an Event of Default with respect to the Notes occurs and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Notes by such appropriate judicial proceedings as the Trustee shall deem necessary
to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or
in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

    	 	14	 

     

    

 

Section 7.04   Trustee
May File Proofs of Claim.

 

(a)          In
case of any judicial proceeding relative to the Company (or any other obligor upon the Notes), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized
under the Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such proceeding. In particular,
the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and
to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 8.07.

 

(b)          No
provision of this Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of
any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof
or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however, that the Trustee
may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’
or other similar committee.

 

Section 7.05   Trustee
May Enforce Claims Without Possession of Notes.

 

All rights of action and
claims under this Indenture or the Notes may be prosecuted and enforced by the Trustee without the possession of any of the
Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall
be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for
the ratable benefit of the Holders of the Notes in respect of which such judgment has been recovered.

 

Section 7.06   Application
of Money Collected.

 

Any money collected by the Trustee
pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of
the distribution of such money on account of Repurchase Price or any Installment Payment, upon presentation of the Notes and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

FIRST: To the payment of all amounts
due the Trustee under Section 8.07;

 

SECOND: To the payment of the
amounts then due and unpaid for Repurchase Price and Installment Payments on the Notes, ratably, without preference or priority
of any kind, according to the amounts due and payable on such Notes for Repurchase Price and Installment Payments; and

 

    	 	15	 

     

    

 

THIRD: To the Company.

 

Section 7.07   Limitation
on Suits.

 

No Holder of any Note shall have
any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless

 

(a)        such
Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Notes;

 

(b)        the
Holders of not less than 25% in principal amount of the Outstanding Notes shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(c)        such
Holder or Holders have offered to the Trustee reasonable indemnity satisfactory to it against the costs, expenses and liabilities
to be incurred in compliance with such request;

 

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

 

(e)        no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Notes; it being understood and intended that no one or more of such Holders
shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided
and for the equal and ratable benefit of all of such Holders.

 

Section 7.08   Unconditional
Right of Holders to Receive Repurchase Price and Installment Payments.

 

Notwithstanding any other provision
in this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the
Repurchase Price and Installment Payments (subject to Section 2.07) on such Note on the respective Stated Maturities expressed
in such Note and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent
of such Holder.

 

Section 7.09   Restoration
of Rights and Remedies.

 

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

 

    	 	16	 

     

    

 

Section 7.10   Rights
and Remedies Cumulative.

 

Except as otherwise provided with
respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in the last paragraph of Section 2.06,
no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

Section 7.11   Delay
or Omission Not Waiver.

 

No delay or omission of the
Trustee or of any Holder of any Notes to exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy
given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may
be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 7.12   Control
by Holders.

 

The Holders of a majority in principal
amount of the Outstanding Notes shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Notes, provided
that

 

(i)        such
direction shall not be in conflict with any rule of law or with this Indenture,

 

(ii)       the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

 

(iii)      subject
to the provisions of Section 8.01, the Trustee shall have the right to decline to follow any such direction if the Trustee
in good faith shall, by a Responsible Officer or Officers of the Trustee, determine that the proceedings so directed would involve
the Trustee in personal liability.

 

Section 7.13   Waiver
of Past Defaults.

 

(a)            The
Holders of not less than a majority in principal amount of the Outstanding Notes may on behalf of the Holders of all the Notes
waive any past default hereunder with respect to such Notes and its consequences, except a default

 

    	 	17	 

     

    

 

(i)            in
the payment of the Repurchase Price or any Installment Payment on any Note, or

 

(ii)            in
respect of a covenant or provision hereof which under Article 10 cannot be modified or amended without the consent of the
Holder of each Outstanding Note affected.

 

(b)            Upon
any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent
thereon.

 

Section 7.14   Undertaking
for Costs.

 

In any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such
suit, and may assess costs against any such party litigant, in the manner and to the extent provided in the Trust Indenture
Act; provided that neither this Section nor the Trust Indenture Act shall apply to any suit instituted by the Trustee,
to any suit instituted by any Holders of the Notes, or group of Holders of the Notes, holding in the aggregate more than 10%
of principal amount of the Outstanding Notes, or to any suit instituted by any Holder of the Outstanding Notes for the
enforcement of the payment of the Installment Payments on any Outstanding Notes held by such Holder, on or after the
respective due dates expressed in such Outstanding Notes, and provided, further, that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an undertaking or to make such an assessment in any suit
instituted by the Company.

 

Section7.15   Waiver
of Usury, Stay or Extension Laws.

 

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

 

    	 	18	 

     

    

 

ARTICLE 7

 

THE TRUSTEE

 

Section 7.01.   Amendments
to Article 8 of the Base Indenture.

 

(a)          For
purposes of the Notes, Section 8.02 of the Base Indenture shall be amended and restated in its entirety with the following:

 

“If an Event of Default
with respect to Notes occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to each Holder of Notes
notice of the uncured Event of Default within 90 days after such Event of Default occurs. Except in the case of an Event of Default
in payment of Repurchase Price or any Installment Payment on any Note, the Trustee may withhold the notice if and so long as a
Responsible Officer in good faith determines that withholding the notice is in the interest of the Holders of Notes.”

 

ARTICLE 8

 

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 8.01.   Amendments
to Article 10 of the Base Indenture.

 

(a)          For
purposes of the Notes, Section 10.01 and 10.02 of the Base Indenture shall be amended and restated in its entirety with the
following:

 

“Section 10.01    Supplemental
Indentures Without Consent of Holders. Without the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory
to the Trustee, for any of the following purposes:

 

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

 

(b)          to
provide for the assumption by a successor corporation as set forth in Article 6; or

 

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

 

(d)          to
evidence and provide for the acceptance of appointment with respect to the Notes by a successor Trustee in accordance with this
Indenture, and add or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts under this Indenture by more than one Trustee; or

 

(e)          to
secure the Notes; or

 

(f)           to
add guarantees with respect to the Notes; or

 

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

 

(h)          to
make any change that does not adversely affect the rights of any Holder in any material respect; or

 

    	 	19	 

     

    

 

(i)           to
conform the provisions of this Indenture or the Notes to any provision of the “Description of the Amortizing Notes”
or the “Description of the Units” sections in the Prospectus Supplement.

 

Section 10.02   Supplemental
Indentures With Consent of Holders. (a)With the consent of the Holders of not less than a majority in principal amount of
the Outstanding Notes, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by
a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or modifying in any manner the
rights of the Holders of Notes under this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Note affected thereby,

 

(i)           change
any Installment Payment Date or reduce the amount owed on any Installment Payment Date, or

 

(ii)          reduce
the Repurchase Price or amend or modify in any manner adverse to the Holders of the Notes the obligation of the Company to make
such payment, or

 

(iii)         reduce
the percentage in principal amount of the Outstanding Notes, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver provided for in this Indenture, or

 

(iv)         impair
the right of any Holder to receive the Repurchase Price on or after the due dates therefor or the right to institute suit for the
enforcement of any such payment on or after the due dates therefor, or

 

(v)          modify
any of the provisions of this Section or Section 7.13, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Note affected
thereby, provided, however, that this clause shall not be deemed to require the consent of any Holder with respect
to changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion of this proviso,
in accordance with the requirements of Sections 8.13 and 10.01(h).

 

(b)          It
shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance thereof.”

 

    	 	20	 

     

    

 

ARTICLE 9

 

SATISFACTION AND DISCHARGE; DEFEASANCE 

 

Section 9.01.   Amendments
to Article 11 of the Base Indenture. For purposes of the Notes, Article 11 of the Base Indenture shall be
amended and restated in its entirety with the following:

 

“Section 11.01    Satisfaction
and Discharge of Indenture.

 

(a)          This
Indenture shall upon Company Request cease to be of further effect (except as to any surviving rights of registration of transfer
or exchange of Notes herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

 

(i)          either

 

(A)            all
Notes theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 2.06 and (ii) Notes for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 5.03) have been delivered to the Trustee for cancellation; or

 

(B)            all
such Notes not theretofore delivered to the Trustee for cancellation have become due and payable, or will become due and payable
at their Stated Maturity within one year, and the Company, in the case of (i) or (ii) above, has deposited or caused
to be deposited with the Trustee, cash or U.S. Government Obligations, as trust funds in trust for the purpose, an amount sufficient
to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, for Installment
Payments to the date of such deposit (in the case of Notes which have become due and payable) or to the Stated Maturity;

 

(ii)          the
Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

(iii)         the
Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

(b)          Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 8.07, and, if
money shall have been deposited with the Trustee pursuant to Section 11.01(a)(i)(B), the obligations of the Trustee under
Section 11.06 and Section 5.03(e) shall survive such satisfaction and discharge.

 

    	 	21	 

     

    

 

Section 11.02   Company’s
Option to Effect Defeasance or Covenant Defeasance.

 

The Company may elect, at its
option by Board Resolution at any time, to have either Section 11.03 or Section 11.04 applied to the Outstanding Notes,
upon compliance with the conditions set forth below in this Article 11.

 

Section 11.03   Defeasance
and Discharge.

 

Upon the Company’s exercise
of the option provided in Section 11.02 to have this Section 11.03 applied to the Outstanding Notes, the Company shall
be deemed to have been discharged from its obligations with respect to the Outstanding Notes as provided in this Section on
and after the date the conditions set forth in Section 11.05 are satisfied (hereinafter called “Defeasance”).
For this purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented
by the Outstanding Notes and to have satisfied all its other obligations under the Notes and this Indenture insofar as the Notes
are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same), subject
to the following which shall survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of Notes
to receive, solely from the trust fund described in Section 11.05 and as more fully set forth in such Section, payments in
respect of the principal and Installment Payments on such Notes when payments are due, (2) the Company’s obligations
with respect to the Notes under Sections 2.04, 2.05, 2.06, 5.02 and 5.03, (3) the rights, protections, powers, trusts, duties
and immunities of the Trustee hereunder and (4) this Article 11. Subject to compliance with this Article 11, the
Company may exercise its option provided in Section 11.02 to have this Section 11.03 applied to the Outstanding Notes
notwithstanding the prior exercise of its option provided in Section 11.02 to have Section 11.04 applied to the Outstanding
Notes. Following a Defeasance, payment of such Notes may not be accelerated because of an Event of Default.

 

Section 11.04   Covenant
Defeasance.

 

Upon the Company’s exercise
of the option provided in Section 11.02 to have this Section 11.04 applied to the Outstanding Notes, (1) the Company
shall be released from its obligations under any covenants provided pursuant to Section 10.01(b) with respect to the
Notes and Section 6.01, as applicable, and (2) the occurrence of any event specified in Section 7.01(d) (with
respect to Section 6.01, any such covenants provided pursuant to Section 10.01(b)), shall be deemed not to be or result
in an Event of Default, in each case with respect to the Outstanding Notes as provided in this Section on and after the date
the conditions set forth in Section 11.05 are satisfied (hereinafter called “Covenant Defeasance”). For this
purpose, such Covenant Defeasance means that the Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any covenants added for the benefit of the Notes pursuant to any such specified Section (to
the extent so specified in the case of Section 7.01(d)), whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or by reason of any reference in any such Section to any other provision herein or in any
other document, but the remainder of this Indenture and the Notes shall be unaffected thereby.

 

    	 	22	 

     

    

 

Section 11.05   Conditions
to Defeasance or Covenant Defeasance.

 

The following shall be the conditions
to application of either Section 11.03 or Section 11.04 to the Outstanding Notes:

 

(a)          The
Company shall irrevocably have deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of Outstanding
Notes, (A) U.S. Dollars in an amount, or (B) U.S. Government Obligations that through the scheduled payment of Installment
Payments in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment,
money in an amount, or (C) a combination thereof, in each case sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge,
and which shall be applied by the Trustee (or any such other qualifying trustee) to pay and discharge, the principal of and Installment
Payments on the Notes on the respective Stated Maturities, in accordance with the terms of this Indenture and the Notes.

 

(b)          In
the case of an election under Section 11.03, the Company shall have delivered to the Trustee an Opinion of Counsel stating
that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since
the date first set forth hereinabove, there has been a change in the applicable Federal income tax law, in either case (A) or
(B) to the effect that, and based thereon such opinion shall confirm that, the Holders of the Outstanding Notes will not recognize
gain or loss for Federal income tax purposes as a result of the deposit, Defeasance and discharge to be effected with respect to
the Notes and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the
case if such deposit, Defeasance and discharge were not to occur.

 

(c)          In
the case of an election under Section 11.04, the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders of the Outstanding Notes will not recognize gain or loss for Federal income tax purposes as a result of
the deposit and Covenant Defeasance to be effected with respect to the Notes and will be subject to Federal income tax on the same
amount, in the same manner and at the same times as would be the case if such deposit and Covenant Defeasance were not to occur.

 

    	 	23	 

     

    

 

(d)          No
Event of Default or event that (after notice or lapse of time or both) would become an Event of Default shall have occurred and
be continuing at the time of such deposit.

 

(e)          Such
Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the Trust Indenture
Act (assuming all Notes are in default within the meaning of such Act).

 

(f)           Such
Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any other material
agreement or instrument to which the Company is a party or by which it is bound.

 

(g)          The
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been complied with.

 

Section 11.06   Deposited
Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions.

 

Subject to Section 5.03,
all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section, the Trustee and any such other trustee are referred to collectively as the “Trustee”)
pursuant to Sections 11.01(a)(i)(B) or 11.05(a) in respect of the Notes shall be held in trust and applied by the Trustee,
in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of Notes, of all sums due and
to become due thereon in respect of principal or Installment Payments, but money so held in trust need not be segregated from other
funds except to the extent required by law.

 

(a)          The
Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Sections 11.01(a)(i)(B) or 11.05(a) or the principal or Installment Payments received
in respect thereof other than any such tax, fee or other charge that by law is for the account of the Holders of Outstanding Notes.

 

(b)          Anything
in this Article 11 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon
Company Request any money or U.S. Government Obligations held by it as provided in Sections 11.01(a)(i)(B) or 11.05(a) with
respect to Notes that, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Defeasance or Covenant Defeasance with respect to the Notes.

 

    	 	24	 

     

    

 

Section 11.07   Reinstatement.

 

If the Trustee or the Paying Agent
is unable to apply any money in accordance with this Article 11 with respect to the Notes by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to this
Article 11 with respect to Notes until such time as the Trustee or Paying Agent is permitted to apply all money held in trust
pursuant to Section 11.06 with respect to Notes in accordance with this Article 11; provided, however,
that if the Company makes any payment of principal or any Installment Payment on any Note following the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of Notes to receive such payment from the money so held in trust.”

 

ARTICLE 10

 

REPURCHASE OF NOTES AT THE OPTION OF
THE HOLDER

 

Section 10.01.   Offer
to Repurchase. If the Company elects to exercise its Early Mandatory Settlement Right with respect to the Purchase
Contracts pursuant to the terms of the Purchase Contract Agreement, then each Holder of Notes (whether any such Note is a Separate
Note or constitutes part of a Unit) shall have the right (the “Repurchase Right”) to require the Company to
repurchase some or all of its Notes for cash at the Repurchase Price per Note to be repurchased on the Repurchase Date, pursuant
to Section 10.03. The Company shall not be required to repurchase a portion of a Note. Holders shall not have the right to
require the Company to repurchase any or all of such Holders’ Notes in connection with any Early Settlement (as such term
is defined in the Purchase Contract Agreement) of such Holders’ Purchase Contracts at the Holders’ option pursuant
to the terms of the Purchase Contract Agreement.

 

Section 10.02.   Early
Mandatory Settlement Notice. If the Company elects to exercise its Early Mandatory Settlement Right with respect to
the Purchase Contracts pursuant to the terms of the Purchase Contract Agreement, the Company shall provide the Trustee and the
Holders of the Notes with a copy of the Early Mandatory Settlement Notice delivered pursuant to the Purchase Contract Agreement.

 

Section 10.03.   Procedures
for Exercise.

 

(a)          To
exercise the Repurchase Right, a Holder must deliver, on or prior to the close of business on the Business Day immediately preceding
the Repurchase Date, the Notes to be repurchased (or the Units that include the Notes to be repurchased, if (x) the Early
Mandatory Settlement Date occurs on or after the Repurchase Date and (y) the relevant Notes have not been separated from
the Units), together with a duly completed written Repurchase Notice, in each case, subject to and in accordance with applicable
procedures of the Depository, unless the Notes are not in the form of a Global Note (or the Units are not in the form of Global
Units, as the case may be), in which case such Holder must deliver the Notes to be repurchased (or the Units that include the
Notes to be repurchased, if (i) the Early Mandatory Settlement Date occurs on or after the Repurchase Date and (ii) the
Notes have not been separated from the Units), duly endorsed for transfer to the Company, together, in either case, with a Repurchase
Notice, to the Paying Agent.

 

    	 	25	 

     

    

 

(b)          The
Repurchase Notice must state the following:

 

(i)           if
Certificated Notes (or Units) have been issued, the certificate numbers of the Notes (or Units), or if the Notes (or Units) are
in the form of a Global Note (or a Global Unit), the Repurchase Notice must comply with appropriate procedures of the Depository;

 

(ii)          the
number of Notes to be repurchased; and

 

(iii)         that
the Notes are to be repurchased by the Company pursuant to the applicable provisions of the Notes and this Article 10.

 

(c)          In
the event that the Company exercises its Early Mandatory Settlement Right with respect to Purchase Contracts that are a component
of Units and the Early Mandatory Settlement Date occurs prior to the Repurchase Date, upon such Early Mandatory Settlement Date,
the Company shall execute and the Trustee shall authenticate on behalf of the holder of the Units and deliver to such holder, at
the expense of the Company, Separate Notes in the same form and in the same number as the Notes comprising part of the Units.

 

Section 10.04.   Withdrawal
of Repurchase Notice.

 

(a)          A
Holder may, subject to and in accordance with applicable procedures of the Depository, in the case of a Global Note or Global
Unit, withdraw any Repurchase Notice (in whole or in part) by a written, irrevocable notice of withdrawal delivered to the Paying
Agent, with a copy to the Trustee and the Company, on or prior to the close of business on the Business Day immediately preceding
the Repurchase Date.

 

(b)          The
notice of withdrawal must state the following:

 

(i)           if
Certificated Notes (or Units) have been issued, the certificate numbers of the withdrawn Notes (or Units), or if the Notes (or
Units) are in the form of a Global Note (or a Global Unit), the notice of withdrawal must comply with appropriate Depository procedures;

 

(ii)          the
number of the withdrawn Notes; and

 

(iii)         the
number of Notes, if any, that remain subject to the Repurchase Notice.

 

Section 10.05.   Effect
of Repurchase.

 

(a)          The
Company shall be required to repurchase the Notes with respect to which the Repurchase Right has been validly exercised and not
withdrawn on the Repurchase Date. To effectuate such repurchase, the Company shall deposit immediately available funds with the
Paying Agent, on or prior to 11:00 a.m., New York City time, on the Repurchase Date, in an amount or amounts sufficient to pay
the Repurchase Price with respect to those Notes for which the Repurchase Right has been exercised. A Holder electing to exercise
the Repurchase Right shall receive payment of the Repurchase Price on the later of (i) the Repurchase Date and (ii) the
time of book-entry transfer or the delivery of the Notes (or Units, as applicable).

 

    	 	26	 

     

    

 

(b)          If
the Paying Agent holds money on the Repurchase Date sufficient to pay the Repurchase Price with respect to those Notes for which
the Repurchase Right has been exercised, then (i) such Notes shall cease to be outstanding and interest shall cease to accrue
thereon (whether or not book-entry transfer of the Notes or Units, as applicable, is made or whether or not the Notes or Units,
as applicable, are delivered as required herein), and (ii) all other rights of the Holder shall terminate (other than the
right to receive the Repurchase Price and, if the Repurchase Date falls between a Regular Record Date and the corresponding Installment
Payment Date, the related Installment Payment).

 

(c)          In
connection with any repurchase offer pursuant to this Article 10, the Company shall, if required, comply with the provisions
of the tender offer rules under the Exchange Act that may then be applicable.

 

(d)          Notwithstanding
anything to the contrary herein, no Notes may be repurchased at the option of Holders if the principal amount thereof has been
accelerated, and such acceleration has not been rescinded, on or prior to the Repurchase Date (except in the case of an acceleration
resulting from a default by the Company of the payment of the Repurchase Price with respect to such Notes).

 

Section 10.06.   No
Sinking Fund. The Notes are not entitled to the benefit of any sinking fund.

 

ARTICLE 11

 

TAX TREATMENT

 

Section 11.01.   Tax
Treatment. The Company and each Beneficial Holder agree, for United States federal income tax purposes, to treat the
Notes as indebtedness of the Company.

 

ARTICLE 12

 

MISCELLANEOUS

 

Section 12.01.   Conflict
with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Supplemental Indenture, the latter provision shall control.
If any provision of this Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified
or excluded, the latter provision shall be deemed to apply to this Supplemental Indenture as so modified or to be excluded, as
the case may be. Wherever this Supplemental Indenture refers to a provision of the Trust Indenture Act, such provision is incorporated
by reference in and made a part of this Supplemental Indenture.

 

    	 	27	 

     

    

 

Section 12.02.   Effect
of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.

 

Section 12.03.   Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

 

Section 12.04.   Separability.
In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 12.05.   Benefits
of Supplemental Indenture. Nothing in this Supplemental Indenture or in the Notes, express or implied, shall give to
any Persons, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Supplemental Indenture.

 

Section 12.06.   Governing
Law and Jury Trial Waiver. THIS SUPPLEMENTAL INDENTURE AND THE NOTES AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING
UNDER OR RELATED THERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH OF THE
COMPANY AND THE TRUSTEE, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE OR THE SECURITIES.

 

Section 12.07.   Trustee
Address. The corporate trust office address of the Trustee set forth in the definition of “Corporate Trust Office”
and the notice address of the Trustee and Paying Agent set forth in Section 8.15 of the Base Indenture are each hereby replaced
with the following address:

 

Deutsche Bank Trust Company Americas

Trust and Agency Services

60 Wall Street, 24th Floor

Mail Stop: NYC60 - 2405

New York, New York 10005

USA

Attn: Corporates Team - Elanco Animal Heath Incorporated

 

Facsimile: (732) 578-4635

 

Section 12.08.   Ratification
of Indenture. The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed,
and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided.
The provisions of this Supplemental Indenture shall, subject to the terms hereof, supersede the provisions of the Base Indenture
to the extent the Base Indenture is inconsistent herewith.

 

    	 	28	 

     

    

 

This instrument may be executed in any
number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

 

[Remainder of the page intentionally
left blank]

 

    	 	29	 

     

    

 

SIGNATURES

 

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

 

	 	 	 	ELANCO ANIMAL HEALTH INCORPORATED, as the Company
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	Michael-Bryant Hicks
	 	 	 	 	Name: Michael-Bryant Hicks
	 	 	 	 	Title: Executive Vice President, General Counsel and Corporate Secretary
	 	 	 	 	 
	 	 	 	 	 
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as	 	 	 
	Trustee	 	 	 	 
	 	 	 	 	 
	By:	/s/ Annie Jaghatspanyan	 	 	 
	 	Name: Annie Jaghatspanyan	 	 	 
	 	Title: Vice President	 	 	 
	 	 	 	 	 
	By:	/s/ Jacqueline Bartnick	 	 	 
	 	Name: Jacqueline Bartnick	 	 	 
	 	Title: Director	 	 	 

 

     

     

    

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT
IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITORY TRUST COMPANY (THE “DEPOSITORY”) TO A NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

 

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

 

 

		*	Include only if a Global Note.

 

    	 	A-1	 

     

    

 

ELANCO ANIMAL HEALTH INCORPORATED

2.75% SENIOR AMORTIZING NOTES DUE 2023

 

CUSIP No.: 28414H AK9

 

ISIN No.: US28414HAK95

 

	No.  [ ]	 	[Initial]* Number of Notes: [ ]

 

ELANCO ANIMAL HEALTH INCORPORATED, an Indiana
corporation (the “Company”, which term includes any successor under the Indenture hereinafter referred to),
for value received, hereby promises to pay to [CEDE & CO., as nominee of The Depository Trust Company]* [ ]**, or registered
assigns (the “Holder”), the initial principal amount of $7.2007 for each of the number of Notes set forth above[,
which number of Notes may from time to time be reduced or increased as set forth in Schedule A hereto, as appropriate, in accordance
with the terms of the Indenture]*, in equal quarterly installments (except for the first such payment) (each such payment, an “Installment
Payment”), constituting a payment of interest (at a rate of 2.75% per annum) and a partial repayment of principal, payable
on each February 1, May 1, August 1 and November 1, commencing on May 1, 2020 (each such date, an “Installment
Payment Date”, and the period from, and including, January 27, 2020 to, but excluding, the first Installment Payment
Date and thereafter each quarterly period from, and including, the immediately preceding Installment Payment Date to, but excluding,
the relevant Installment Payment Date, an “Installment Payment Period”) with the final Installment Payment due
and payable on February 1, 2023, all as set forth on the reverse hereof and in the Indenture referred to on the reverse hereof.
To the extent that payment of interest shall be legally enforceable, interest shall accrue and be payable on any overdue Installment
Payments or principal at a rate of 2.75% per annum.

 

Each Installment Payment for any
Installment Payment Period shall be computed on the basis of a 360-day year of twelve 30-day months. If an Installment
Payment is payable for any period shorter or longer than a full Installment Payment Period, such Installment Payment shall be
computed on the basis of the actual number of days elapsed per 30-day month. Furthermore, if any date on which an Installment
Payment is payable is not a Business Day, then payment of the Installment Payment on such date shall be made on the next
succeeding day that is a Business Day, and without any interest or other payment in respect of any such delay. Installment
Payments shall be paid to the Person in whose name the Note is registered, with limited exceptions as provided in the
Indenture, at the close of business on January 15, April 15, July 15 and October 15 immediately preceding
the relevant Installment Payment Date, as applicable (each, a “Regular Record Date”). Installment Payments
shall be payable (x) in the case of any Certificated Note, at the office or agency of the Company maintained for that
purpose in the Borough of Manhattan, The City of New York; provided, however, that payment of Installment
Payments may be made at the option of the Company by check mailed to the registered Holder at such address as shall appear in
the Security Register or (y) in the case of any Global Note, by wire transfer in immediately available funds to the
account of the Depository or its nominee or otherwise in accordance with applicable procedures of the Depository.

 

 

		*	Include only if a Global Note.

		**	Include only if not a Global Note.

 

    	 	A-2	 

     

    

 

This Note shall not be entitled to any
benefit under the Indenture hereinafter referred to or be valid or obligatory for any purpose until the Certificate of Authentication
shall have been manually signed by or on behalf of the Trustee. Reference is hereby made to the further provisions of this Note
set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this
place.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	A-3	 

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	Dated:	 
	 	 
	 	ELANCO ANIMAL HEALTH INCORPORATED,
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

CERTIFICATE OF AUTHENTICATION

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee, certifies
that this is one

of the Securities of the series designated herein

referred to in the within mentioned Indenture.

 

Dated:

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

 

	By:	 	 
	 	Authorized Signatory

 

    	 	A-4	 

     

    

 

[REVERSE OF NOTE]

 

ELANCO ANIMAL HEALTH INCORPORATED

 

2.75% Senior Amortizing Notes due 2023

 

This Note is one of a duly authorized series
of Securities of the Company designated as its 2.75% Senior Amortizing Notes due 2023 (herein sometimes referred to as the “Notes”),
issued under the Indenture, dated as of August 28, 2018, between the Company and Deutsche Bank Trust Company Americas, as
trustee (the “Trustee,” which term includes any successor trustee under the Indenture) (including any provisions
of the Trust Indenture Act that are deemed incorporated therein) (the “Base Indenture”), as supplemented by
the Second Supplemental Indenture, dated as of January 27, 2020 (the “Second Supplemental Indenture”),
between the Company and the Trustee (the Base Indenture, as supplemented by the Second Supplemental Indenture, the “Indenture”),
to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the Holders. The terms of other series of Securities issued under the Base Indenture
may vary with respect to interest rates, issue dates, maturity, redemption, repayment, currency of payment and otherwise as provided
in the Base Indenture. The Base Indenture further provides that securities of a single series may be issued at various times, with
different maturity dates and may bear interest at different rates. This series of Securities is limited in aggregate initial principal
amount as specified in the Second Supplemental Indenture.

 

Each Installment Payment shall constitute
a payment of interest (at a rate of 2.75% per annum) and a partial repayment of principal on the Notes, allocated with respect
to each Note as set forth in the schedule below:

 

	Scheduled Installment Payment Date	 	Amount of

 Principal	 	 	Amount of

 Interest	 
	May 1, 2020	 	$	0.6011	 	 	$	0.0517	 
	August 1, 2020	 	$	0.5796	 	 	$	0.0454	 
	November 1, 2020	 	$	0.5836	 	 	$	0.0414	 
	February 1, 2021	 	$	0.5876	 	 	$	0.0374	 
	May 1, 2021	 	$	0.5917	 	 	$	0.0333	 
	August 1, 2021	 	$	0.5957	 	 	$	0.0293	 
	November 1, 2021	 	$	0.5998	 	 	$	0.0252	 
	February 1, 2022	 	$	0.6040	 	 	$	0.0210	 
	May 1, 2022	 	$	0.6081	 	 	$	0.0169	 
	August 1, 2022	 	$	0.6123	 	 	$	0.0127	 
	November 1, 2022	 	$	0.6165	 	 	$	0.0085	 
	February 1, 2023	 	$	0.6207	 	 	$	0.0043	 

 

    	 	A-5	 

     

    

 

Any Installment Payment on any Note which
is payable, but is not punctually paid or duly provided for, on any Installment Payment Date (herein called “Defaulted
Installment Payment”) shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue
of having been such Holder, and such Defaulted Installment Payment may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:

 

(1)            The
Company may elect to make payment of any Defaulted Installment Payment to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on a Special Record Date for the payment of such Defaulted Installment
Payment, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Installment Payment proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Installment
Payment or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Installment Payment as in this
Clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Installment Payment which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Installment
Payment and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Notes at his address
as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Installment Payment and the Special Record Date therefor having been so mailed, such Defaulted Installment Payment
shall be paid to the Persons in whose names the Notes (or their respective Predecessor Securities) are registered at the close
of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2).

 

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

 

The Notes shall not be subject to redemption
at the option of the Company. However, a Holder shall have the right to require the Company to repurchase some or all of its Notes
for cash at the Repurchase Price per Note and on the Repurchase Date, upon the occurrence of certain events and subject to the
conditions set forth in the Indenture.

 

This Note is not entitled to the benefit
of any sinking fund. The Indenture contains provisions for satisfaction and discharge, legal defeasance and covenant defeasance
of this Note upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Note.

 

If an Event of Default with respect to the
Notes shall occur and be continuing, then either the Trustee or the Holders of not less than 25% in principal amount of the Notes
then outstanding may declare the Repurchase Price and all Installment Payments on this Note, to be due and payable immediately,
in the manner, subject to the conditions and with the effect provided in the Indenture.

 

    	 	A-6	 

     

    

 

The Indenture permits, with certain exceptions
as therein provided, the Company and the Trustee, with the consent of the Holders of not less than a majority in principal amount
of the Notes at the time outstanding, to execute supplemental indentures for certain purposes as described therein.

 

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 Repurchase Price, if applicable,
of and all Installment Payments on this Note at the time, place and rate, and in the coin or currency, herein and in the Indenture
prescribed.

 

The Notes are originally being issued as
part of the 5.00% Tangible Equity Units (the “Units”) issued by the Company pursuant to that certain Purchase
Contract Agreement, dated as of January 27, 2020, between the Company and Deutsche Bank Trust Company Americas, as Purchase
Contract Agent, as Trustee and as attorney-in-fact for the holders of Equity-Linked Securities from time to time (the “Purchase
Contract Agreement”). Holders of the Units have the right to separate such Units into their constituent parts, consisting
of Separate Purchase Contracts (as defined in the Purchase Contract Agreement) and Separate Notes, during the times, and under
the circumstances, described in the Purchase Contract Agreement. Following separation of any Unit into its constituent Separate
Note and Separate Purchase Contract, the Separate Notes are transferable independently from the Separate Purchase Contracts. In
addition, Separate Notes can be recombined with Separate Purchase Contracts to recreate Units, as provided for in the Purchase
Contract Agreement. Reference is hereby made to the Purchase Contract Agreement for a more complete description of the terms thereof
applicable to the Units.

 

As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Note shall be registered on the Security Register of the Company,
upon due presentation of this Note for registration of transfer at the office or agency of the Company in the Borough of Manhattan,
The City of New York, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory
to the Company and the Trustee duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon
the Company shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Note
or Notes in authorized denominations and for a like aggregate principal amount.

 

The Notes are initially issued in registered,
global form without coupons in denominations equal to $7.2007 initial principal amount and integral multiples in excess thereof.

 

The Company or Trustee may require payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer
of this Note. No service charge shall be made for any such transfer or for any exchange of this Note as contemplated by the Indenture.

 

    	 	A-7	 

     

    

 

The Company, the Trustee and any agent of
the Company or the Trustee may deem and treat the Person in whose name this Note is registered upon the Security Register for the
Notes as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notice of ownership
or writing thereon made by anyone other than the Registrar) for the purpose of receiving payment of or on account of the principal
of and, subject to the provisions of the Indenture, interest on this Note and for all other purposes; and neither the Company nor
the Trustee nor any agent of the Company or the Trustee shall be affected by any notice to the contrary.

 

This Note and the Indenture and any claim,
controversy or dispute arising under or related thereto shall be governed by and construed in accordance with the laws of the State
of New York.

 

Capitalized terms used but not defined in
this Note shall have the meanings ascribed to such terms in the Indenture.

 

No recourse shall be had for the payment
of any Installment Payment on this Note, or for any claim based hereon, or upon any obligation, covenant or agreement of the Company
in the Indenture, against any incorporator, stockholder, officer or director, past, present or future of the Company or of any
predecessor or successor, either directly or through the Company or any predecessor or successor, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment of penalty or otherwise; and all such personal liability is
expressly released and waived as a condition of, and as part of the consideration for, the issuance of this Note.

 

The Company and each Beneficial Holder agrees,
for United States federal income tax purposes, to treat the Notes as indebtedness of the Company.

 

In the event of any inconsistency between
the provisions of this Note and the provisions of the Indenture, the Indenture shall prevail.

 

    	 	A-8	 

     

    

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned assigns
and transfers this Note to:

 

 

	(Insert assignee’s social security or tax identification number)	 

 

 

	(Insert address and zip code of assignee)	 

 

and irrevocably appoints

 

______________________________________________

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

 

	Date:	Signature:	 	 

 

	 	Signature Guarantee:	 	 

 

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

 

    	 	A-9	 

     

    

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation
in the Security 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.

 

	By:	 	 
	 	Name:	 
	 	Title	 

 

    	 	A-10	 

     

    

 

FORM OF REPURCHASE NOTICE

 

	TO:	ELANCO ANIMAL HEALTH INCORPORATED

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

 

The undersigned registered Holder hereby
irrevocably acknowledges receipt of a notice from Elanco Animal Health Incorporated (the “Company”) regarding
the right of Holders to elect to require the Company to repurchase the Notes and requests and instructs the Company to pay, for
each Note designated below, the Repurchase Price for such Notes (determined as set forth in the Indenture), in accordance with
the terms of the Indenture and the Notes, to the registered holder hereof. Capitalized terms used herein but not defined shall
have the meanings ascribed to such terms in the Indenture. The Notes shall be repurchased by the Company as of the Repurchase Date
pursuant to the terms and conditions specified in the Indenture.

 

	Dated:	 
	 	 
	 	 
	 	Signature

 

NOTICE: The above signature of the Holder hereof must correspond
with the name as written upon the face of the Notes in every particular without alteration or enlargement or any change whatever.

 

	Notes Certificate Number (if applicable):	 

 

	Number of Notes to be repurchased (if less than all, must be one Note or integral multiples in excess thereof):	 

 

	Social Security or Other Taxpayer Identification Number:	 

 

    	 	A-11	 

     

    

 

SCHEDULE A

 

[SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE]*

 

The initial number of Notes evidenced by
this Global Note is __________________. The following increases or decreases in this Global Note have been made:

 

	Date	 	Amount of 
 decrease in 
 number of Notes 
 evidenced 
 hereby	 	Amount of 
 increase in
 number of 
 Notes 
 evidenced 
 hereby	 	Number
    of 
 Notes 
 evidenced 
 hereby
 following such 
 decrease (or 
 increase)	 	Signature of
 authorized 
 officer of 
 Trustee
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

 

*        Include only if
a Global Note.

 

    	 	A-12Amendment
Agreement to Consulting Agreement 

Between

CurrencyWorks
Inc. (Formerly ICOx Innovations, Inc.)

And

Bruce
Elliott

Signed
on January 21, 2020

 

Amendment
Date: December 1, 2019

 

Consulting
Agreement to be amended with

 

USD$1
per month instead of USD$8,000 per month

 

All
other terms of the October 9th, 2017 Consulting Agreement remain in effect.

 

IN
WITNESS OF THE ABOVE the parties have executed this Amendment Agreement with effect from the date first written above.

 

	CurrencyWorks Inc.

(Formerly ICOx Innovations, Inc.)

	 	Bruce Elliot
	 	 	 	 	 
	Per:	/s/
    Michael Blum	 	Per:	/s/
    Brue Elliott
	 	Michael
    Blum	 	 	Bruce
    Elliott

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