Document:

WELLS FARGO & COMPANY 8-K

 

 Exhibit
4.1

 

 

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP
NO. 95001HD65	FACE AMOUNT: $___________

REGISTERED
NO. ___

 

 

WELLS
FARGO FINANCE LLC

 

MEDIUM-TERM
NOTE, SERIES A

Fully
and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal
at Risk Securities Linked to the Lowest Performing of the

S&P 500® Index and the Russell 2000® Index due January 3, 2025

 

 

WELLS
FARGO FINANCE LLC, a limited liability company, duly organized and existing under the laws of the State of Delaware (hereinafter
called the “Company,” which term includes any successor corporation under and as defined in the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the
Maturity Payment Amount (as defined below), in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts, on the Stated Maturity Date. The “Initial Stated Maturity Date”
shall be January 3, 2025. If the Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be
the “Stated Maturity Date.” If the Calculation Day is postponed, the “Stated Maturity Date”
shall be the later of (i) the Initial Stated Maturity Date and (ii) three Business Days (as defined below) after the
last Calculation Day as postponed. This Security shall not bear any interest.

Any
payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company
for such purpose. 

“Face
Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its
“Face Amount.”

    	 	 	 

    	 

    

Determination
of Maturity Payment Amount

The
“Maturity Payment Amount” of this Security will equal:

		•	if
                                         the Ending Level of the Lowest Performing Index is greater than its Starting Level: the
                                         Face Amount plus:

 

 

		•	if
                                         the Ending Level of the Lowest Performing Index is less than or equal to its Starting
                                         Level, but greater than or equal to its Threshold Level: the Face Amount plus:

 

 

 

		•	if
                                         the Endling Level of the Lowest Performing Index is less than its Threshold Level: the
                                         Face Amount plus:

 

 

All
calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths
rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent,
with one-half cent rounded upward.

“Index”
shall mean each of the S&P 500 Index and the Russell 2000 Index.

The
“Pricing Date” shall mean December 30, 2019.

The
“Lowest Performing Index” will be the Index with the lowest Index Return as measured from its Starting Level
to its Ending Level.

The
“Index Return” with respect to an Index is the percentage change from its Starting Level to its Ending Level,
measured as follows:

Ending
Level – Starting Level

Starting Level

If
the Index Return is equal to -5%, the absolute value of the Index Return would be +5%.

The
“Starting Level” with respect to the S&P 500 Index is 3221.29, its Closing Level on the Pricing Date and
with respect to the Russell 2000 Index is 1664.150, its Closing Level on the Pricing Date.

    	 	2	 

    	 

    

The
“Ending Level” of an Index will be its Closing Level on the Calculation Day.

The
“Threshold Level” with respect to the S&P 500 Index is 2254.903, which is equal to 70% of its Starting
Level and with respect to the Russell 2000 Index is 1164.905, which is equal to 70% of its Starting Level.

The
“Upside Participation Rate” is 140%.

The
“Closing Level” with respect to each Index on any Trading Day means the official closing level of that Index
reported by the relevant Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the
licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the
decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to
the provisions set forth below under “—Market Disruption Events,” “—Adjustments To An Index”
and “—Discontinuance Of An Index.”

“Index
Sponsor” shall mean the sponsor or publisher of an Index.

“Business
Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulation to close in New York, New York.

The
“Calculation Day” shall be December 30, 2024. If such day is not a Trading Day with respect to either Index,
the Calculation Day for each Index will be postponed to the next succeeding day that is a Trading Day with respect to each Index.
The Calculation Day for an Index is also subject to postponement due to the occurrence of a Market Disruption Event (as defined
below) with respect to such Index. If a Market Disruption Event occurs or is continuing with respect to an Index on the Calculation
Day, then the Calculation Day for such Index will be postponed to the first succeeding Trading Day for such Index on which a Market
Disruption Event for such Index has not occurred and is not continuing; however, if such first succeeding Trading Day has not
occurred as of the eighth Trading Day for such Index after the originally scheduled Calculation Day, that eighth Trading Day shall
be deemed to be the Calculation Day for such Index. If the Calculation Day has been postponed eight Trading Days for an Index
after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing with respect to such Index
on such eighth Trading Day, the Calculation Agent will determine the Closing Level of such Index on such eighth Trading Day in
accordance with the formula for and method of calculating the Closing Level of such Index last in effect prior to commencement
of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event
has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time
of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such
Relevant Stock Exchange) on such date of each security included in such Index. As used herein, “closing price”
means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the
Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular
trading session of such Relevant Stock Exchange. Notwithstanding the postponement of the Calculation Day for one Index due to
a Market Disruption Event with respect to such Index on the Calculation Day, the

    	 	3	 

    	 

    

originally
scheduled Calculation Day will remain the Calculation Day for the other Index if such other Index is not affected by a Market
Disruption Event on such day.

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of May 18, 2018 between the Company and the Calculation
Agent, as amended from time to time.

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, the determination of the Maturity Payment Amount, which term shall, unless the context otherwise requires, include
its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant
to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from time to time after the initial
issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security.

Certain
Definitions 

A
“Trading Day” with respect to an Index means a day, as determined by the Calculation Agent, on which (i) the
Relevant Stock Exchanges with respect to each security underlying such Index are scheduled to be open for trading for their respective
regular trading sessions and (ii) each Related Futures or Options Exchange with respect to such Index is scheduled to be
open for trading for its regular trading session.

The
“Relevant Stock Exchange” for any security underlying an Index means the primary exchange or quotation system
on which such security is traded, as determined by the Calculation Agent.

The
“Related Futures or Options Exchange” for an Index means an exchange or quotation system where trading has
a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to
such Index.

Adjustments
To An Index

If
at any time the method of calculating an Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if an Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of
the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation
Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated,
make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive
at a level of an index comparable to such Index or Successor Equity Index as if those changes or modifications had not been made,
and the Calculation Agent will calculate the closing level of such Index or Successor Equity Index with reference to such index,
as so adjusted. Accordingly, if the method of calculating an Index or Successor Equity Index is modified so that the level of
such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or
reverse split in such equity index), then the Calculation Agent will adjust such Index or Successor Equity Index in order to arrive
at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

    	 	4	 

    	 

    

Discontinuance
Of An Index

If
an Index Sponsor discontinues publication of an Index, and such Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to such Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity
and calculate the Ending Level of such Index as described above. Upon any selection by the Calculation Agent of a Successor Equity
Index, the Company will cause notice to be given to the Holder of this Security.

In
the event that an Index Sponsor discontinues publication of an Index prior to, and the discontinuance is continuing on, the Calculation
Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will
calculate a substitute Closing Level for such Index in accordance with the formula for and method of calculating such Index last
in effect prior to the discontinuance, but using only those securities that comprised such Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for such Index, the Successor
Equity Index or level will be used as a substitute for such Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

If
on the Calculation Day an Index Sponsor fails to calculate and announce the level of an Index, the Calculation Agent will calculate
a substitute Closing Level of such Index in accordance with the formula for and method of calculating such Index last in effect
prior to the failure, but using only those securities that comprised such Index immediately prior to that failure; provided
that, if a Market Disruption Event occurs or is continuing on such day with respect to such Index, then the provisions set
forth above under the definition of “Calculation Day” shall apply in lieu of the foregoing.

Market
Disruption Events 

A
“Market Disruption Event” with respect to an Index means any of the following events as determined by the Calculation
Agent in its sole discretion:

		(A)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by the Relevant Stock Exchanges or otherwise relating to securities which then comprise
                                         20% or more of the level of such Index or any Successor Equity Index at any time during
                                         the one-hour period that ends at the Close of Trading on that day, whether by reason
                                         of movements in price exceeding limits permitted by those Relevant Stock Exchanges or
                                         otherwise.

 

		(B)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by any Related Futures or Options Exchange or otherwise in futures or options contracts
                                         relating to such Index or any Successor Equity Index on any Related Futures or Options
                                         Exchange at any time during the one-hour period that ends at the Close of Trading on
                                         that day, whether by reason of movements in

 

    	 	5	 

    	 

    

price
exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

		(C)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, securities that then comprise 20% or more of the level of such
                                         Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

 

		(D)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, futures or options contracts relating to such Index or any
                                         Successor Equity Index on any Related Futures or Options Exchange at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

 

		(E)	The
                                         closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities
                                         that then comprise 20% or more of the level of such Index or any Successor Equity Index
                                         are traded or any Related Futures or Options Exchange with respect to such Index or any
                                         Successor Equity Index prior to its Scheduled Closing Time unless the earlier closing
                                         time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange,
                                         as applicable, at least one hour prior to the earlier of (1) the actual closing time
                                         for the regular trading session on such Relevant Stock Exchange or Related Futures or
                                         Options Exchange, as applicable, and (2) the submission deadline for orders to be entered
                                         into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable,
                                         system for execution at such actual closing time on that day.

 

		(F)	The
                                         Relevant Stock Exchange for any security underlying such Index or Successor Equity Index
                                         or any Related Futures or Options Exchange with respect to such Index or Successor Equity
                                         Index fails to open for trading during its regular trading session.

For
purposes of determining whether a Market Disruption Event has occurred with respect to an Index:

 

		(1)	the
                                         relevant percentage contribution of a security to the level of such Index or any Successor
                                         Equity Index will be based on a comparison of (x) the portion of the level of such
                                         Index attributable to that security and (y) the overall level of such Index or Successor
                                         Equity Index, in each case immediately before the occurrence of the Market Disruption
                                         Event;

 

		(2)	the
                                         “Close of Trading” on any Trading Day for such Index or any Successor
                                         Equity Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect
                                         to the securities underlying such Index or Successor Equity Index on such Trading Day;
                                         provided that, if the actual closing time of the regular trading session of

 

    	 	6	 

    	 

    

any
such Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A)
and (C) of the definition of “Market Disruption Event” above, with respect to any security underlying such Index or
Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading”
means such actual closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption
Event” above, with respect to any futures or options contract relating to such Index or Successor Equity Index, the “Close
of Trading” means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges,
but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

		(3)	the
                                         “Scheduled Closing Time” of any Relevant Stock Exchange or Related
                                         Futures or Options Exchange on any Trading Day for such Index or any Successor Equity
                                         Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
                                         Futures or Options Exchange on such Trading Day, without regard to after hours or any
                                         other trading outside the regular trading session hours; and

 

		(4)	an
                                         “Exchange Business Day” means any Trading Day for such Index or any
                                         Successor Equity Index on which each Relevant Stock Exchange for the securities underlying
                                         such Index or any Successor Equity Index and each Related Futures or Options Exchange
                                         with respect to such Index or any Successor Equity Index are open for trading during
                                         their respective regular trading sessions, notwithstanding any such Relevant Stock Exchange
                                         or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

 

Calculation
Agent

The
Calculation Agent will determine the Maturity Payment Amount. In addition, the Calculation Agent will (i) determine if adjustments
are required to the Closing Level of an Index under the circumstances described in this Security, (ii) if publication of
an Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing
Level of such Index under the circumstances described in this Security, and (iii) determine whether a Market Disruption Event
or non-Trading Day has occurred.

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

Tax
Considerations

The
Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed
to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States
federal income tax

    	 	7	 

    	 

    

purposes
to characterize and treat this Security as a prepaid derivative contract that is an “open transaction.”

Redemption
and Repayment

This
Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to January
3, 2025. This Security is not entitled to any sinking fund.

Acceleration

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment
Amount (calculated as set forth in the next sentence) of this Security may be declared due and payable in the manner and with
the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture
will be equal to the Maturity Payment Amount hereof calculated as provided herein as though the date of acceleration was the Calculation
Day.

__________________

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

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

 

[The
remainder of this page has been left intentionally blank]

 

    	 	8	 

    	 

    

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

 

DATED: 

 

	
 

	

WELLS FARGO FINANCE LLC

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:

	
 

 

	
 

	
Attest:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:

	
 

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein described

in the within-mentioned Indenture.

 

	
CITIBANK, N.A.,

	
 

	
 

	
as Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

	
 

	
 

	
 

	
 

	
OR

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, N.A.,

	
 

	
 

	
as Authenticating Agent for the Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

 

    	 	9	 

    	 

    

[Reverse
of Note]

 

 

WELLS
FARGO FINANCE LLC

 

MEDIUM-TERM
NOTE, SERIES A

Fully
and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal
at Risk Securities Linked to the Lowest Performing of the

S&P 500® Index and the Russell 2000® Index due January 3, 2025

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of April 25, 2018, as amended or supplemented from time
to time (herein called the “Indenture”), among the Company, as issuer, Wells Fargo & Company, as guarantor
(the “Guarantor”) and Citibank, N.A., as trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor,
the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series A, of the Company.
The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-,
commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic
or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest
at a fixed rate or a floating rate. The Securities of this series may mature at different times, be redeemable at different times
or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented
by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their nominees.

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

Guarantee

The
Securities of this series are fully and unconditionally guaranteed by the Guarantor as and to the extent set forth in the Indenture.

Modification
and Waivers 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the Guarantor and the rights of the Holders of the Securities of each series to be affected under the Indenture
at any time by the

    	 	10	 

    	 

    

Company,
the Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders
of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the
Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company
or the Guarantor with those provisions of the Indenture. Certain past defaults under the Indenture and their consequences may
be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding,
on behalf of the Holders of all Securities of such series. Solely for the purpose of determining whether any consent, waiver,
notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken
by the Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security will
be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security
and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company or the Guarantor with certain conditions set forth therein, shall not apply to this Security. The remaining
provisions of Section 401 of the Indenture shall apply to this Security.

Authorized
Denominations

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

Registration
of Transfer

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days
after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z)
an Event of Default with respect

    	 	11	 

    	 

    

to
the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence,
it shall be exchangeable for definitive Securities in registered form, having the same date of issuance, Stated Maturity Date
and other terms and of authorized denominations aggregating a like amount.

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

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

Obligation
of the Company Absolute

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Maturity Payment Amount at the times, place and rate, and in the coin
or currency, herein prescribed, except as otherwise provided in this Security.

No
Personal Recourse

No
recourse shall be had for the payment of the Maturity Payment Amount, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer
or director, as such, past, present or future, of the Company or any successor corporation or of the Guarantor or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty
or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

Defined
Terms

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

Governing
Law

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

 

    	 	12	 

    	 

    

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
 

	
 

	
 

	
TEN COM

	
--

	
as tenants in common

	
 

	
 

	
 

	
TEN ENT

	
--

	
as tenants by the entireties

	
 

	
 

	
 

	
JT TEN

	
--

	
as joint tenants with right

	
 

	
 

	
of survivorship and not

	
 

	
 

	
as tenants in common

 

	
UNIF GIFT MIN ACT

	
--

	
 

	
Custodian

	
 

	
 

	
 

	
(Cust)

	
 

	
(Minor)

 

	
Under Uniform Gifts to Minors Act

	
 

	
 

	
(State)

 

Additional abbreviations may also be used though not in the above list.

 

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

 

	
Please Insert Social Security or

	
Other Identifying Number of Assignee

	
 

	
 

 

	
 

	
 

	
 

	
(Please print or type name and address including postal zip code of Assignee)

 

    	 	13	 

    	 

    

the
within Security of WELLS FARGO FINANCE LLC and does hereby irrevocably constitute and appoint __________________ attorney to transfer
the said Security on the books of the Company, with full power of substitution in the premises.

 

 

 

	
Dated: _________________________

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

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

 

 

    	 	14Exhibit 4.1

 

DESCRIPTION OF HURCO COMPANIES, INC.’S

COMMON STOCK

 

The following is a description of the common
stock, no par value (the “Common Stock”), of Hurco Companies, Inc. (the “Company”), which is the only security
of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

General

 

The Company is authorized to issue up to
12,500,000 shares of Common Stock. As of December 31, 2019, the Company had 6,770,233 shares of Common Stock outstanding.

 

The following description summarizes selected
information regarding the Common Stock, as well as relevant provisions of (i) the Company’s Amended and Restated Articles
of Incorporation, as currently in effect (the “Articles”), (ii) the Company’s Amended and Restated By-Laws, as
currently in effect (the “By-Laws”), and (iii) the Indiana Business Corporation Law (the “IBCL”). The following
summary description of the Common Stock of the Company is qualified in its entirety by reference to the provisions of the Company’s
Articles and By-Laws, copies of which have been filed as exhibits to the Company’s periodic reports under the Exchange Act,
and the applicable provisions of the IBCL.

 

Common Stock

 

Voting Rights. The holders of shares
of Common Stock are entitled to one vote per share on all matters submitted to shareholders for a vote. The holders of shares of
Common Stock do not have cumulative voting rights with respect to the election of directors or any other matter.

 

Dividend Rights. Subject to preferences
to which holders of any preferred stock of the Company may be entitled, the holders of shares of Common Stock are entitled to receive
such dividends as may be declared from time to time by the Board of Directors, in its discretion, from any assets legally available
therefor.

 

Liquidation Rights. Subject to the
prior payment or provision for payment of the debts and other liabilities of the Company and any preferential amounts to be distributed
to holders of any preferred stock of the Company, in the event of any liquidation, dissolution or winding up of the Company, the
holders of shares of Common Stock shall be entitled to share ratably in the remaining net assets of the Company.

 

Other Rights and Preferences. The
holders of shares of Common Stock have no preemptive rights to subscribe to or purchase any shares of Common Stock or other Company
securities. There are no redemption, sinking fund or conversion provisions applicable to the Common Stock. The holders of shares
of Common Stock are not subject to further calls or assessments by the Company.

 

Transfer Agent and Registrar. The
transfer agent and registrar for the Common Stock is Computershare Trust Company, N.A.

 

Listing. The Common Stock is traded
on the Nasdaq Global Select Market under the symbol “HURC.”

 

Anti-Takeover Effects of Provisions
of the Company’s Articles, By-Laws and the IBCL

 

Under certain circumstances, certain provisions
of the IBCL, the Company’s Articles and the Company’s By-Laws may render more difficult, or may discourage, a merger,
a tender offer, a proxy contest, the assumption of control of the Company by a holder of a large block of the Common Stock or other
person, or the removal of incumbent management, even if such actions may be beneficial to the Company’s shareholders generally.

 

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Meetings of Shareholders. Under
Chapter 29 of the IBCL and the Company’s Articles, any action required to be taken by the Company’s shareholders may
be effected only at an annual meeting or special meeting of shareholders, and shareholders may act in lieu of such meetings only
by unanimous written consent. The Company’s By-Laws provide that special meetings of shareholders may be called by the Company’s
Board of Directors or President, or by the holders of a majority of all the votes entitled to be cast on any issue proposed to
be considered at the proposed special meeting.

 

The Company’s By-Laws also establish
an advance notice procedure for the nomination, other than by or at the direction of the Company’s Board of Directors, of
persons for election as directors as well as for other shareholder proposals to be considered at annual meetings of shareholders.
In general, notice of intent to nominate a director or raise business at such meetings must be delivered to the Company by a shareholder
not less than 60 days prior to such meeting. Such notice must contain certain specified information concerning the person to be
nominated and the shareholder submitting the proposal.

 

Amendment of By-Laws. The Company’s
Articles and By-Laws provide that the Company’s Board of Directors has the exclusive authority to make, alter, amend or repeal
the Company’s By-Laws.

 

Special Transactions. The Company’s
Articles require the affirmative vote of the holders of not less than three-fourths of the outstanding shares of Common Stock for
certain proposed transactions, including, but not limited to: (i) the merger or consolidation of the Company and a “related
corporation”; (ii) the sale or exchange of all or substantially all of the Company’s assets or business to or with
a related corporation; (iii) the issue or delivery of Common Stock or any other Company securities in exchange or payment for property,
assets or securities of a related corporation; and (iv) the merger of any of the Company’s affiliates with or into a related
corporation or any of its affiliates.

 

For purposes of the above provisions, the
below definitions shall apply:

 

		(a)	“affiliate” means any person (including a corporation, partnership, trust, estate or
individual) who, directly or indirectly, controls, is controlled by, or is under common control with the person specified; and

 

		(b)	“related corporation” means a corporation or entity or any of its affiliates, singly
or in the aggregate, that are beneficial owners, directly or indirectly, of more than 5% of the total outstanding shares of Common
Stock.

 

The foregoing requirements shall not apply
to any transaction that has been (i) approved by resolution of the Board of Directors adopted by the affirmative vote of not less
than two-thirds of the then authorized number of directors; or (ii) approved by resolution of the Board of Directors prior to the
acquisition of the beneficial ownership of more than 5% of the total voting power of all outstanding shares of Common Stock by
such related corporation and its affiliates.

 

Control Share Acquisitions. Under
Chapter 42 of the IBCL, an acquiring person or group who makes a “control share acquisition” in an “issuing public
corporation” may not exercise voting rights on any “control shares” unless these voting rights are conferred
by a majority vote of the disinterested shareholders of the issuing public corporation at a special meeting of those shareholders
held upon the request and at the expense of the acquiring person. If control shares acquired in a control share acquisition are
accorded full voting rights and the acquiring person has acquired control shares with a majority or more of all voting power, all
shareholders of the issuing public corporation have dissenters’ rights to receive the fair value of their shares pursuant
to Chapter 44 of the IBCL.

 

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For purposes of Chapter 42 of the IBCL,
the below definitions shall apply:

 

		(a)	“control share acquisition” means, subject to specified exceptions, the acquisition,
directly or indirectly, by any person of ownership of, or the power to direct the exercise of voting power with respect to, issued
and outstanding control shares. For the purposes of determining whether an acquisition constitutes a control share acquisition,
shares acquired within 90 days or under a plan to make a control share acquisition are considered to have been acquired in the
same acquisition;

 

		(b)	“control shares” means shares acquired by a person that, when added to all other shares
of the issuing public corporation owned by that person or in respect to which that person may exercise or direct the exercise of
voting power, would otherwise entitle that person to exercise voting power of the issuing public corporation in the election of
directors within any of the following ranges: (i) one-fifth or more but less than one-third; (ii) one-third or more but less than
a majority; or (iii) a majority or more; and

 

		(c)	“issuing public corporation” means a corporation which has (i) 100 or more shareholders,
(ii) its principal place of business or its principal office in Indiana, or that owns or controls assets within Indiana having
a fair market value of greater than $1,000,000, and (iii) (A) more than 10% of its shareholders resident in Indiana, (B) more than
10% of its shares owned of record or owned beneficially by Indiana residents, or (C) 1,000 shareholders resident in Indiana.

 

The above provisions do not apply if, before
a control share acquisition is made, an Indiana corporation’s articles of incorporation or by-laws, including a by-law adopted
by the Indiana corporation’s board of directors, provide that they do not apply. The Company’s Articles and By-Laws
do not exclude the Company from these provisions.

 

Certain Business Combinations. Chapter
43 of the IBCL restricts the ability of a “resident domestic corporation” to engage in any business combinations with
an “interested shareholder” for five years after the date the interested shareholder became such, unless the business
combination or the purchase of shares by the interested shareholder on the interested shareholder’s share acquisition date
is approved by the board of directors of the resident domestic corporation before the interested shareholder’s share acquisition
date. If such prior approval is not obtained, the interested shareholder may effect a business combination after the five-year
period only if such shareholder receives approval from a majority of the disinterested shareholders or the offer meets specified
fair price criteria.

 

For purposes of Chapter 43 of the IBCL,
the below definitions shall apply:

 

		(a)	“beneficial owner” means a person who, directly or indirectly, owns the subject shares,
has the right to acquire or vote the subject shares (excluding voting rights under revocable proxies made in accordance with federal
law), has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of the subject
shares, or holds any derivative instrument that includes the opportunity to profit or share in any profit derived from any increase
in the value of the subject shares;

 

		(b)	“interested shareholder” means any person, other than the resident domestic corporation
or its subsidiaries, that is (i) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding
voting shares of the resident domestic corporation or (ii) an affiliate or associate of the resident domestic corporation, which
at any time within the five-year period immediately before the date in question, was the beneficial owner, directly or indirectly,
of 10% or more of the voting power of the then outstanding shares of the resident domestic corporation; and

 

		(c)	“resident domestic corporation” means an Indiana corporation that has 100 or more shareholders.

 

The above provisions do not apply to corporations
that elect not to be subject to Chapter 43 of the IBCL in an amendment to their articles of incorporation approved by a majority
of the disinterested shareholders. That amendment, however, cannot become effective until 18 months after its passage and would
apply only to share acquisitions occurring after its effective date. The Company’s Articles do not exclude the Company from
Chapter 43 of the IBCL.

 

Mandatory Classified Board of Directors.
Under Chapter 33 of the IBCL, an Indiana corporation with a class of voting shares registered with the U.S. Securities and Exchange
Commission under Section 12 of the Exchange Act must have a classified board of directors unless the Indiana corporation adopts
a by-law expressly electing not to be governed by this provision. The Company’s By-Laws contain a provision electing not
to be subject to this mandatory requirement.

 

    3

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