Document:

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                                                                     EXHIBIT 4.6

                       HUTCHINSON TECHNOLOGY INCORPORATED

                                  $130,000,000

                 2.25% Convertible Subordinated Notes due 2010*

                               Purchase Agreement

                                                              New York, New York
                                                               February 18, 2003

Salomon Smith Barney Inc.
Needham & Company, Inc.
As Representatives of the Initial Purchasers
c/o Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York  10013

Ladies and Gentlemen:

         Hutchinson Technology Incorporated, a corporation organized under the
laws of Minnesota (the "Company"), proposes to issue and sell to the several
parties named in Schedule I hereto (the "Initial Purchasers"), for whom you (the
"Representatives") are acting as representatives, $130,000,000 principal amount
of its 2.25% Convertible Subordinated Notes due 2010 (the "Firm Securities").
The Company also proposes to grant to the Initial Purchasers an option to
purchase up to $20,000,000 additional principal amount of such 2.25% Convertible
Subordinated Notes due 2010 to cover over-allotments, if any (the "Option
Securities" and, together with the Firm Securities, the "Securities"). The
Securities will be convertible into shares of Common Stock, par value $.01
("Stock", which shall include the associated common share purchase right), of
the Company. The Securities are to be issued under an indenture (the
"Indenture"), to be dated as of February 24, 2003, between the Company and
LaSalle Bank National Association, as trustee (the "Trustee"). The Securities
have the benefit of a Registration Rights Agreement (the "Registration Rights
Agreement"), to be dated as of February 24, 2003, between the Company and the
Initial Purchasers, pursuant to which the Company has agreed to file with the
United States Securities and Exchange Commission (the "Commission") under the
circumstances set forth therein a shelf registration statement (the "Shelf
Registration Statement") pursuant to Rule 415 of the Act (as defined) relating
to the resale of (i) such Securities and (ii) the shares of Stock initially
issuable upon conversion of the Securities by holders thereof, and to use its
best efforts to cause such Shelf Registration

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*        Plus an option to purchase up to $20,000,000 additional principal
         amount from the Company to cover over-allotments.

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Statement to be declared effective. To the extent there are no additional
parties listed on Schedule I other than you, the term Representatives as used
herein shall mean you as the Initial Purchasers, and the terms Representatives
and Initial Purchasers shall mean either the singular or plural as the context
requires. The use of the neuter in this Agreement shall include the feminine and
masculine wherever appropriate. Certain terms used herein are defined in Section
17 hereof.

         The sale of the Securities and the Stock issuable upon conversion of
the Securities to the Initial Purchasers will be made without registration of
the Securities or such Stock under the Act in reliance upon exemptions from the
registration requirements of the Act.

         In connection with the sale of the Securities, the Company has prepared
a preliminary offering memorandum, dated February 18, 2003 (as amended or
supplemented immediately prior to the Execution Time, including any and all
exhibits thereto and any information incorporated by reference therein, the
"Preliminary Memorandum"), and a final offering memorandum, dated February 18,
2003 (as amended or supplemented at the Execution Time, including any and all
exhibits thereto and any information incorporated by reference therein, the
"Final Memorandum"). Each of the Preliminary Memorandum and the Final Memorandum
sets forth certain information concerning the Company and the Securities. The
Company hereby confirms that it has authorized the use of the Preliminary
Memorandum and the Final Memorandum, and any amendment or supplement thereto, in
connection with the offer and sale of the Securities by the Initial Purchasers.
Unless stated to the contrary, references herein to the Final Memorandum at the
Execution Time are not meant to include any information incorporated by
reference therein subsequent to the Execution Time, and any references herein to
the terms "amend", "amendment" or "supplement" with respect to the Final
Memorandum shall be deemed to refer to and include any information filed under
the Exchange Act subsequent to the Execution Time which is incorporated by
reference therein.

         1. Representations and Warranties. The Company represents and warrants
to each Initial Purchaser as set forth below in this Section 1.

            (a) The Preliminary Memorandum, at the date thereof, did not contain
      any untrue statement of a material fact or omit to state any material fact
      necessary to make the statements therein, in the light of the
      circumstances under which they were made, not misleading. At the Execution
      Time, on the Closing Date (as defined in Section 3 hereof) and on any
      settlement date (pursuant to Section 3 hereof), the Final Memorandum did
      not, and will not (and any amendment or supplement thereto, at the date
      thereof, at the Closing Date and on any settlement date (pursuant to
      Section 3 hereof), will not), contain any untrue statement of a material
      fact or omit to state any material fact necessary to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading; provided, however, that the Company makes no representation or
      warranty as to the information contained in or omitted from the
      Preliminary Memorandum or the Final Memorandum, or any amendment or
      supplement thereto, in reliance upon and in conformity with information
      furnished in writing to the Company by or on behalf of the Initial
      Purchasers through the Representatives specifically for inclusion therein.

                  (b) Neither the Company, nor any of its Affiliates, nor any
         person acting on its or their behalf has, directly or indirectly, made
         offers or sales of any security, or solicited offers to buy any
         security, under circumstances that would require the registration of
         the Securities

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                                                                               3

         under the Act (it being understood that no representation or warranty
         is made with respect to the activities of the Initial Purchasers or any
         of their Affiliates).

                  (c) Neither the Company, nor any of its Affiliates, nor any
         person acting on its or their behalf has engaged in any form of general
         solicitation or general advertising (within the meaning of Regulation
         D) in connection with any offer or sale of the Securities in the United
         States (it being understood that no representation or warranty is made
         with respect to the activities of the Initial Purchasers or any of
         their Affiliates).

                  (d) The Securities satisfy the eligibility requirements of
         Rule 144A(d)(3) under the Act.

                  (e) Neither the Company, nor any of its Affiliates, nor any
         person acting on its or their behalf has engaged in any directed
         selling efforts with respect to the Securities, and each of them has
         complied with the offering restrictions requirements of Regulation S
         (it being understood that no representation or warranty is made with
         respect to the activities of the Initial Purchasers or any of their
         Affiliates). Terms used in this paragraph have the meanings given to
         them by Regulation S.

                  (f) On or prior to the Closing Date, the Company shall have
         been advised by The Portal Market of the NASD that the Securities have
         been designated Portal-eligible securities in accordance with the rules
         and regulations of the NASD.

                  (g) The Company is not, and after giving effect to the
         offering and sale of the Securities and the application of the proceeds
         thereof as described in the Final Memorandum will not be, an
         "investment company" within the meaning of the Investment Company Act,
         without taking account of any exemption arising out of the number of
         holders of the Company's securities.

                  (h) The Company is subject to and in full compliance with the
         reporting requirements of Section 13 or Section 15(d) of the Exchange
         Act.

                  (i) The Company has not paid or agreed to pay to any person
         any compensation for soliciting another to purchase any Securities or
         the shares of Stock issuable upon conversion of the Securities (except
         as contemplated by this Agreement).

                  (j) The Company has not taken, directly or indirectly, any
         action designed to or that would constitute or that might reasonably be
         expected to cause or result in, under the Exchange Act or otherwise,
         the stabilization or manipulation of the price of any security of the
         Company to facilitate the sale or resale of the Securities.

                  (k) The information provided by the Company pursuant to
         Section 5(h) hereof will not, at the date thereof, contain any untrue
         statement of a material fact or omit to state any material fact
         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading.

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                  (l) Each of the Company and its subsidiaries has been duly
         incorporated and is validly existing as a corporation in good standing
         under the laws of the jurisdiction in which it is chartered or
         organized with full corporate power and authority to own or lease, as
         the case may be, and to operate its properties and conduct its business
         as described in the Final Memorandum, and is duly qualified to do
         business as a foreign corporation and is in good standing under the
         laws of each jurisdiction which requires such qualification except to
         the extent that failure to be so qualified or be in good standing could
         not reasonably be expected to have a material adverse effect on the
         condition (financial or otherwise), earnings, business or properties of
         the Company and its subsidiaries, taken as a whole, whether or not
         arising from transactions in the ordinary course of business (a
         "Material Adverse Effect").

                  (m) All the outstanding shares of capital stock of each
         subsidiary have been duly and validly authorized and issued and are
         fully paid and non-assessable, and, all outstanding shares of capital
         stock of the subsidiaries of the Company are owned by the Company
         either directly or through wholly owned subsidiaries free and clear of
         any perfected security interest or any other security interests,
         claims, liens or encumbrances.

                  (n) The Company's authorized equity capitalization is as set
         forth in the Final Memorandum and the capital stock conforms in all
         material respects to the description thereof contained in the Final
         Memorandum; the shares of Stock initially issuable upon conversion of
         the Securities have been duly and validly authorized and, when issued
         upon conversion in accordance with the terms of the Securities and the
         Indenture, will be validly issued, fully paid and nonassessable; the
         Board of Directors of the Company or a duly constituted committee
         thereof has duly and validly adopted resolutions reserving such shares
         of Stock for issuance upon conversion; and except (i) as set forth in
         the Final Memorandum and (ii) options in respect of 518,000 additional
         shares of Stock granted in the Company's fiscal year 2003 and
         approximately 4,500 shares of restricted Stock to be issued to members
         of the Board of Directors on the date hereof, no options, warrants, or
         other rights to purchase, agreements or other obligations to issue, or
         rights to convert any obligations into or exchange any securities for
         shares of capital stock or ownership interest in the Company are
         outstanding.

                  (o) There are no persons with registration rights or other
         similar rights to have any securities of the Company (other than the
         Securities and the Stock issuable upon conversion of the Securities)
         registered under the Shelf Registration Statement.

                  (p) None of the holders of outstanding shares of capital stock
         of the Company and no other person has or will have any preemptive or
         other rights to purchase, subscribe for or otherwise acquire (i) the
         Securities or the shares of Stock to be issued upon conversion of the
         Securities or any rights to such shares or (ii) any other capital stock
         of the Company or rights thereto as a result of or in connection with
         the transactions contemplated by the Indenture, this Agreement or the
         Registration Rights Agreement.

                  (q) This Agreement has been duly authorized, executed and
         delivered by the Company; the Indenture has been duly authorized and,
         assuming due authorization, execution and delivery thereof by the
         Trustee, when executed and delivered by the Company,

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                                                                               5

         will constitute a legal, valid and binding instrument enforceable
         against the Company in accordance with its terms (subject, as to the
         enforcement of remedies, to applicable bankruptcy, fraudulent
         conveyance, reorganization, insolvency, moratorium or other laws
         affecting creditors' rights generally from time to time in effect and
         to general principles of equity, regardless of whether considered in a
         proceeding in equity or at law); the Securities have been duly
         authorized, and, when executed and authenticated in accordance with the
         provisions of the Indenture and delivered to and paid for by the
         Initial Purchasers, will have been duly executed and delivered by the
         Company and will constitute the legal, valid and binding obligations of
         the Company entitled to the benefits of the Indenture (subject, as to
         the enforcement of remedies, to applicable bankruptcy, fraudulent
         conveyance, reorganization, insolvency, moratorium or other laws
         affecting creditors' rights generally from time to time in effect and
         to general principles of equity, regardless of whether considered in a
         proceeding in equity or at law) and will be convertible into Stock in
         accordance with their terms; and the Registration Rights Agreement has
         been duly authorized and, when executed and delivered by the Company,
         will constitute a legal, valid and binding instrument enforceable
         against the Company in accordance with its terms (except as rights to
         indemnification thereunder may be limited by applicable law and
         subject, as to the enforcement of remedies, to applicable bankruptcy,
         fraudulent conveyance, reorganization, insolvency, moratorium or other
         laws affecting creditors' rights generally from time to time in effect
         and to general principles of equity, regardless of whether considered
         in a proceeding in equity or at law).

                  (r) Assuming compliance by the Initial Purchasers with the
         representations, warranties and agreements set forth in Section 4
         hereof, no consent, approval, authorization, filing with or order of
         any court or governmental agency or body is required in connection with
         the transactions contemplated herein, in the Indenture or the
         Registration Rights Agreement, except such as will be obtained under
         the Act and the Trust Indenture Act in accordance with the Registration
         Rights Agreement, the securities laws of any jurisdiction outside the
         U.S. in which the Securities are offered and such as may be required
         under the blue sky or securities laws of any jurisdiction and the
         National Association of Securities Dealers Inc. in connection with the
         purchase and distribution of the Securities by the Initial Purchasers
         in the manner contemplated herein and in the Final Memorandum and the
         Registration Rights Agreement.

                  (s) None of the execution and delivery of the Indenture, this
         Agreement or the Registration Rights Agreement, the issue and sale of
         the Securities, or the consummation of any other of the transactions
         herein or therein contemplated, nor the fulfillment of the terms hereof
         or thereof, will conflict with, result in a breach or violation of,
         cause an early termination of any benefits under, or imposition of any
         lien, charge or encumbrance upon any property or assets of the Company
         or any of its subsidiaries pursuant to, (i) the charter or by-laws of
         the Company or any subsidiary, (ii) the terms of any indenture,
         contract, lease, mortgage, deed of trust, note agreement, loan
         agreement or other agreement, obligation, condition, covenant or
         instrument to which the Company or any of its subsidiaries is a party
         or bound or to which any of their respective properties is subject; or
         (iii) assuming compliance by the Initial Purchasers with the
         representations, warranties and agreements set forth in Section 4
         hereof, any statute, law, rule, regulation, judgment, order or decree
         applicable to the Company or any of its subsidiaries of any court,
         regulatory body,

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                                                                               6

         administrative agency, governmental body, arbitrator or other authority
         having jurisdiction over the Company, any of its subsidiaries or any of
         their respective properties, except in the case of clause (ii) for such
         conflicts, breaches, violations, early terminations, liens, charges or
         encumbrances that could not reasonably be expected to have a Material
         Adverse Effect.

                  (t) The consolidated historical financial statements and
         schedules of the Company and its consolidated subsidiaries included in
         or incorporated by reference in the Final Memorandum present fairly in
         all material respects the financial condition, statements of operations
         and cash flows of the Company as of the dates and for the periods
         indicated, comply as to form in all material respects with the
         applicable accounting requirements of the Act and have been prepared in
         conformity with generally accepted accounting principles applied on a
         consistent basis throughout the periods involved (except as otherwise
         noted therein); the selected financial data set forth under the caption
         "Selected Financial Data" in the Annual Report on Form 10-K for the
         fiscal year ended September 29, 2002 and incorporated in the Final
         Memorandum fairly present, on the basis stated in such Form 10-K, the
         information included therein.

                  (u) No action, suit or proceeding by or before any court or
         governmental agency, authority or body or any arbitrator involving the
         Company or any of its subsidiaries or its or their property is pending
         or, to the knowledge of the Company, threatened that (i) could
         reasonably be expected to have a material adverse effect on the
         performance of this Agreement, the Indenture or the Registration Rights
         Agreement, or the consummation of any of the transactions contemplated
         hereby or thereby; or (ii) could reasonably be expected to have a
         Material Adverse Effect, except as set forth in or contemplated in the
         Final Memorandum (exclusive of any amendment or supplement thereto).

                  (v) The Company and each of its subsidiaries own or lease all
         such properties as are necessary to the conduct of their respective
         operations as presently conducted.

                  (w) Neither the Company nor any subsidiary is in violation or
         default of (i) any provision of its charter or bylaws; (ii) the terms
         of any indenture, contract, lease, mortgage, deed of trust, note
         agreement, loan agreement or other agreement, obligation, condition,
         covenant or instrument to which it is a party or bound or to which its
         property is subject; or (iii) any statute, law, rule, regulation,
         judgment, order or decree applicable to the Company or any subsidiary
         of any court, regulatory body, administrative agency, governmental
         body, arbitrator or other authority having jurisdiction over the
         Company or such subsidiary or any of their properties, as applicable,
         except in the case of clauses (ii) and (iii) for such violations or
         defaults that could not reasonably be expected to have a Material
         Adverse Effect.

                  (x) Deloitte & Touche LLP, who have reviewed certain financial
         statements of the Company and its consolidated subsidiaries included in
         the Final Memorandum, are independent public accountants with respect
         to the Company within the meaning of the Act and the applicable
         published rules and regulations thereunder. Arthur Andersen LLP, who
         has previously certified certain financial statements of the Company
         and its consolidated subsidiaries and previously delivered their report
         with respect to certain audited consolidated financial statements and
         schedules included in the Final Memorandum, were at all times

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         during their engagement by the Company independent public accountants
         with respect to the Company within the meaning of the Act and the
         applicable published rules and regulations thereunder.

                  (y) The Company has filed all foreign, federal, state and
         local tax returns that are required to be filed or has requested
         extensions thereof (except in any case in which the failure so to file
         could not reasonably be expected to have a Material Adverse Effect and,
         except as set forth in or contemplated in the Final Memorandum
         (exclusive of any amendment or supplement thereto)) and has paid all
         taxes required to be paid by it and any other assessment, fine or
         penalty levied against it, to the extent that any of the foregoing is
         due and payable, except for any such assessment, fine or penalty that
         is currently being contested in good faith or as could not reasonably
         be expected to have a Material Adverse Effect, except as set forth in
         or contemplated in the Final Memorandum (exclusive of any amendment or
         supplement thereto).

                  (z) No labor problem or dispute with the employees of the
         Company or any of its subsidiaries exists or is threatened or imminent,
         and the Company is not aware of any existing or imminent labor
         disturbance by the employees of any of its or its subsidiaries'
         principal suppliers, contractors or customers that could reasonably be
         expected to have a Material Adverse Effect, except as set forth in or
         contemplated in the Final Memorandum (exclusive of any amendment or
         supplement thereto).

                  (aa) The Company and each of its subsidiaries are insured by
         insurers of recognized financial responsibility against such losses and
         risks and in such amounts as are prudent and customary in the
         businesses in which they are engaged; all policies of insurance and
         fidelity or surety bonds insuring the Company or any of its
         subsidiaries or their respective businesses, assets, employees,
         officers and directors are in full force and effect; the Company and
         its subsidiaries are in compliance with the terms of such policies and
         instruments in all material respects; other than claims that could not
         reasonably be expected to have a Material Adverse Effect, there are no
         claims by the Company or any of its subsidiaries under any such policy
         or instrument as to which any insurance company is denying liability or
         defending under a reservation of rights clause; and neither the Company
         nor any such subsidiary has been refused any insurance coverage sought
         or applied for and neither the Company nor any such subsidiary has any
         reason to believe that it will not be able to renew its existing
         insurance coverage as and when such coverage expires or to obtain
         similar coverage from similar insurers as may be necessary to continue
         its business other than refusals, failures to renew and failures to
         obtain that could not reasonably be expected to have a Material Adverse
         Effect, except as set forth in or contemplated in the Final Memorandum
         (exclusive of any amendment or supplement thereto).

                  (bb) No subsidiary of the Company is currently prohibited,
         directly or indirectly, from paying any dividends to the Company, from
         making any other distribution on such subsidiary's capital stock, from
         repaying to the Company any loans or advances to such subsidiary from
         the Company or from transferring any of such subsidiary's property or
         assets to the Company or any other subsidiary of the Company, except as
         described in or

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         contemplated by the Final Memorandum (exclusive of any amendment or
         supplement thereto).

                  (cc) The Company and its subsidiaries possess all licenses,
         certificates, permits and other authorizations issued by the
         appropriate federal, state or foreign regulatory authorities necessary
         to conduct their respective businesses other than such licenses,
         certificates, permits and authorizations the failure of which to
         possess could not reasonably be expected to have a Material Adverse
         Effect, and neither the Company nor any such subsidiary has received
         any notice of proceedings relating to the revocation or modification of
         any such certificate, authorization or permit which, singly or in the
         aggregate, could reasonably be expected to have a Material Adverse
         Effect, except as set forth in or contemplated in the Final Memorandum
         (exclusive of any amendment or supplement thereto).

                  (dd) The Company and each of its subsidiaries maintain a
         system of internal accounting controls sufficient to provide reasonable
         assurance that (i) transactions are executed in accordance with
         management's general or specific authorizations; (ii) transactions are
         recorded as necessary to permit preparation of financial statements in
         conformity with generally accepted accounting principles and to
         maintain asset accountability; (iii) access to assets is permitted only
         in accordance with management's general or specific authorization; and
         (iv) the recorded accountability for assets is compared with the
         existing assets at reasonable intervals and appropriate action is taken
         with respect to any differences.

                  (ee) The Company and its subsidiaries (i) have been and are in
         compliance with any and all applicable foreign, federal, state and
         local laws and regulations relating to the protection of human health
         and safety, the environment or hazardous or toxic substances or wastes
         ("Environmental Laws"); (ii) have received and are in compliance with
         all permits, licenses or other approvals required under applicable
         Environmental Laws to conduct their respective businesses; (iii) other
         than notices excluded in (iv) below, have not received notice of any
         actual or potential liability for the (x) investigation or remediation
         of any disposal or release of hazardous or toxic substances or wastes
         at any of the Company's or its subsidiaries' currently or formerly
         owned or leased sites, or at any off-site location where our wastes
         were disposed; or (y) exposure to any such hazardous or toxic
         substances or wastes, except where such non-compliance with
         Environmental Laws, failure to receive required permits, licenses or
         other approvals, or liability could not, individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect,
         except as set forth in or contemplated in the Final Memorandum
         (exclusive of any amendment or supplement thereto); and (iv) in the
         past five years prior to the date hereof, have not been named as a
         "potentially responsible party" under the Comprehensive Environmental
         Response, Compensation, and Liability Act of 1980, as amended.

                  (ff) Each of the Company and its subsidiaries has fulfilled
         its obligations, if any, under the minimum funding standards of Section
         302 of the United States Employee Retirement Income Security Act of
         1974, as amended ("ERISA"), and the regulations and published
         interpretations thereunder with respect to each "plan" (as defined in
         Section 3(3) of ERISA and such regulations and published
         interpretations) in which employees of the

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                                                                               9

      Company and its subsidiaries are eligible to participate and each such
      plan is in compliance in all material respects with the presently
      applicable provisions of ERISA and such regulations and published
      interpretations; the Company and its subsidiaries have not incurred any
      unpaid liability to the Pension Benefit Guaranty Corporation (other than
      for the payment of premiums in the ordinary course) or to any such plan
      under Title IV of ERISA.

                  (gg) The Company and its subsidiaries own, possess, license or
         have other rights to use, on reasonable terms, all patents, patent
         applications, trade and service marks, trade and service mark
         registrations, trade names, copyrights, licenses, inventions, trade
         secrets, technology, know-how and other intellectual property
         (collectively, the "Intellectual Property") necessary for the conduct
         of the Company's business as now conducted or as proposed in the Final
         Memorandum to be conducted, except where the failure to have such
         Intellectual Property could not reasonably be expected to have a
         Material Adverse Effect. Neither the Company nor any of its
         subsidiaries has received any charge, complaint, claim, demand or
         notice alleging any interference, infringement, misappropriation or
         violation of a third party's right in Intellectual Property (including
         any claim that the Company or any of its subsidiaries must license or
         refrain from using such Intellectual Property), which, if the subject
         of any unfavorable ruling, decision or finding could, individually or
         in the aggregate, could reasonably be expected to have a Material
         Adverse Effect.

                  (hh) Each executive officer and director of the Company has
         entered into a written agreement with the Company in the form of
         Exhibit B hereto (each such agreement, a "Lock-up Agreement"), and
         executed originals of each Lock-up Agreement have been delivered to
         you.

         Any certificate signed by any officer of the Company and delivered to
the Representatives or counsel for the Initial Purchasers in connection with the
offering of the Securities shall be deemed a representation and warranty by the
Company, as to matters covered thereby, to each Initial Purchaser.

         2. Purchase and Sale. (a) Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Initial Purchaser, and each Initial Purchaser agrees,
severally and not jointly, to purchase from the Company, at a purchase price of
97.250% of the principal amount thereof, plus accrued interest, if any, from
February 24, 2003 to the Closing Date, the principal amount of Firm Securities
set forth opposite such Initial Purchaser's name on Schedule I hereto.

         (b) Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Company hereby grants an
option to the several Initial Purchasers to purchase, severally and not jointly,
the Option Securities at the same purchase price as the Initial Purchasers paid
for the Firm Securities, plus accrued interest, if any, from February 24, 2003
to the settlement date for the Option Securities. The option may be exercised
only to cover over-allotments in the sale of the Firm Securities by the Initial
Purchasers. The option may be exercised in whole or in part at any time (but not
more than once) on or before the 30th day after the date of the Final Memorandum
upon written or telegraphic notice by the Representatives to the Company setting
forth the number of Option Securities as to which the several Initial Purchasers
are exercising the option

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                                                                              10

and the settlement date. Delivery of the Option Securities, and payment
therefor, shall be made as provided in Section 3 hereof. The principal amount of
Option Securities to be purchased by each Initial Purchaser shall be the same
percentage of the total number of Option Securities to be purchased by the
Initial Purchasers as such Initial Purchaser is purchasing of the Firm
Securities, subject to such adjustments as the Representatives shall deem
advisable.

         3. Delivery and Payment. Delivery of and payment for the Firm
Securities and the Option Securities (if the option provided for in Section 2(b)
hereof shall have been exercised on or before the third Business Day prior to
the Closing Date) shall be made at 10:00 A.M., New York City time, on February
24, 2003, or at such time on such later date (not later than five Business Days
after the foregoing date) as the Representatives shall designate, which date and
time may be postponed by agreement between the Representatives and the Company
or as provided in Section 9 hereof (such date and time of delivery and payment
for the Securities being herein called the "Closing Date"). Delivery of the
Securities shall be made to the Representatives for the respective accounts of
the several Initial Purchasers against payment by the several Initial Purchasers
through the Representatives of the purchase price thereof to or upon the order
of the Company by wire transfer payable in same-day funds to the account
specified by the Company. Delivery of the Securities shall be made through the
facilities of The Depository Trust Company unless the Representatives shall
otherwise instruct.

         If the option provided for in Section 2(b) hereof is exercised after
the third Business Day prior to the Closing Date, the Company will deliver the
Option Securities (at the expense of the Company) to the Representatives, at 388
Greenwich Street, New York, New York, on the date specified by the
Representatives (which shall be within three Business Days after exercise of
said option), for the respective accounts of the several Initial Purchasers,
against payment by the several Initial Purchasers through the Representatives of
the purchase price thereof to or upon the order of the Company by wire transfer
payable in same-day funds to the account specified by the Company. If settlement
for the Option Securities occurs after the Closing Date, the Company will
deliver to the Representatives on the settlement date for the Option Securities,
and the obligation of the Initial Purchasers to purchase the Option Securities
shall be conditioned upon receipt of, supplemental opinions, certificates and
letters confirming as of such date the opinions, certificates and letters
delivered on the Closing Date pursuant to Section 6 hereof.

         4. Offering by Initial Purchasers. Each Initial Purchaser, severally
and not jointly, represents and warrants to and agrees with the Company that:

         (a) It has not offered or sold, and will not offer or sell, any
     Securities except (i) to those persons it reasonably believes to be
     qualified institutional buyers (as defined in Rule 144A under the Act) and,
     to the extent applicable, in accordance with the restrictions set forth in
     paragraph 2 of Exhibit A hereto, and that, in connection with each such
     sale, it has taken or will take reasonable steps to ensure that the
     purchaser of such Securities is aware that such sale is being made in
     reliance on Rule 144A; or (ii) in accordance with the restrictions set
     forth in Exhibit A hereto.

<PAGE>
                                                                              11

                  (b) Neither it nor any person acting on its behalf has made or
         will make offers or sales of the Securities in the United States by
         means of any form of general solicitation or general advertising
         (within the meaning of Regulation D) in the United States.

                  5. Agreements. The Company agrees with each Initial
         Purchaser that:

                  (a) The Company will furnish to each Initial Purchaser and to
         counsel for the Initial Purchasers, without charge, during the period
         referred to in paragraph (c) below, as many copies of the Final
         Memorandum and any amendments and supplements thereto as you may
         reasonably request.

                  (b) The Company will not amend or supplement the Final
         Memorandum, other than by filing documents under the Exchange Act that
         are incorporated by reference therein, without the prior written
         consent of the Representatives; provided, however, that, prior to the
         earlier of (i) the completion of the distribution of the Securities by
         the Initial Purchasers (as determined by the Initial Purchasers) and
         (ii) the date that is nine months after the Closing Date, the Company
         will not file any document under the Exchange Act that is incorporated
         by reference in the Final Memorandum unless, prior to such proposed
         filing, the Company has furnished the Representatives with a copy of
         such document for their review and the Representatives have not
         reasonably objected to the filing of such document. The Company will
         promptly advise the Representatives in writing when any document filed
         under the Exchange Act that is incorporated by reference in the Final
         Memorandum shall have been filed with the Commission and the Initial
         Purchasers will promptly advise the Company in writing of the
         completion of the distribution of the Securities.

                  (c) If at any time prior to the completion of the sale of the
         Securities by the Initial Purchasers (as determined by the
         Representatives), any event occurs as a result of which the Final
         Memorandum, as then amended or supplemented, would include any untrue
         statement of a material fact or omit to state any material fact
         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading, or if it
         shall be necessary to amend or supplement the Final Memorandum to
         comply with applicable law, the Company promptly (i) will notify the
         Representatives of any such event; (ii) subject to the requirements of
         paragraph (b) of this Section 5, will prepare an amendment or
         supplement that will correct such statement or omission or effect such
         compliance; and (iii) will supply any supplemented or amended Final
         Memorandum to the several Initial Purchasers and counsel for the
         Initial Purchasers without charge in such quantities as you may
         reasonably request.

                  (d) The Company will arrange, if necessary, for the
         qualification of the Securities for sale by the Initial Purchasers
         under the laws of such jurisdictions as the Representatives may
         designate and will maintain such qualifications in effect so long as
         required for the sale of the Securities; provided that in no event
         shall the Company be obligated to qualify to do business in any
         jurisdiction where it is not now so qualified or to take any action
         that would subject it to service of process in suits, other than those
         arising out of the offering or sale of the Securities, in any
         jurisdiction where it is not now so subject. The Company will promptly
         advise the Representatives of the receipt by the Company of any
         notification with respect to

<PAGE>
                                                                              12

         the suspension of the qualification of the Securities for sale in any
         jurisdiction or the initiation or threatening of any proceeding for
         such purpose.

                  (e) During the period of two years after the Closing Date, the
         Company will not, and will not permit any of its Affiliates to, resell
         any Securities or Stock issuable upon conversion of the Securities that
         have been acquired by any of them.

                  (f) Neither the Company, nor any of its Affiliates, nor any
         person acting on its or their behalf will, directly or indirectly, make
         offers or sales of any security, or solicit offers to buy any security,
         under circumstances that would require the registration of the
         Securities or the Stock issuable upon conversion of the Securities
         under the Act (it being understood that no agreement is being made with
         respect to the activities of the Initial Purchasers or any of their
         Affiliates).

                  (g) Neither the Company, nor any of its Affiliates, nor any
         person acting on its or their behalf will engage in any form of general
         solicitation or general advertising (within the meaning of Regulation
         D) in connection with any offer or sale of the Securities in the United
         States (it being understood that no agreement is being made with
         respect to the activities of the Initial Purchasers or any of their
         Affiliates).

                  (h) So long as any of the Securities or shares of Stock issued
         or issuable upon conversion of the Securities are "restricted
         securities" within the meaning of Rule 144(a)(3) under the Act, the
         Company will, during any period in which it is not subject to and in
         compliance with Section 13 or 15(d) of the Exchange Act or it is not
         exempt from such reporting requirements pursuant to and in compliance
         with Rule 12g3-2(b) under the Exchange Act, provide to each holder of
         such restricted securities and to each prospective purchaser (as
         designated by such holder) of such restricted securities, upon the
         request of such holder or prospective purchaser, any information
         required to be provided by Rule 144A(d)(4) under the Act. This covenant
         is intended to be for the benefit of the holders, and the prospective
         purchasers designated by such holders, from time to time of such
         restricted securities.

                  (i) Neither the Company, nor any of its Affiliates, nor any
         person acting on its or their behalf will engage in any directed
         selling efforts with respect to the Securities, and each of them will
         comply with the offering restrictions requirements of Regulation S (it
         being understood that no agreement is being made with respect to the
         activities of the Initial Purchasers or any of their Affiliates). Terms
         used in this paragraph have the meanings given to them by Regulation S.

                  (j) The Company will cooperate with the Representatives and
         use its best efforts to permit the Securities to be eligible for
         clearance and settlement through The Depository Trust Company and to be
         eligible for The Portal Market of the NASD.

                  (k) The Company will not for a period of 90 days following the
         Execution Time, without the prior written consent of Salomon Smith
         Barney Inc., offer, sell, contract to sell, or otherwise dispose of (or
         enter into any transaction which is designed to, or could be

<PAGE>
                                                                              13

         expected to, result in the disposition by any person of), directly or
         indirectly, or file (or participate in the filing of) a registration
         statement with the Commission in respect of, or establish or increase a
         put equivalent position or liquidate or decrease a call equivalent
         position within the meaning of Section 16 of the Exchange Act and the
         rules and regulations of the Commission promulgated thereunder with
         respect to, (i) any shares of capital stock of the Company or any
         securities convertible into or exercisable or exchangeable for such
         capital stock or, (ii) any debt securities issued or guaranteed by the
         Company or any of its direct or indirect subsidiaries; provided,
         however, that the Company may issue (1) shares of Stock pursuant to
         existing employee benefit plans and (2) shares of Stock as
         consideration for acquisitions so long as the parties receiving Stock
         in any such acquisition agree to be bound by the foregoing
         restrictions.

                  (l) The Company will not take, directly or indirectly, any
         action designed to or that would constitute or that might reasonably be
         expected to cause or result in, under the Exchange Act or otherwise,
         the stabilization or manipulation of the price of any security of the
         Company to facilitate the sale or resale of the Securities.

                  (m) The Company agrees to pay the costs and expenses relating
         to the following matters: (i) the preparation of the Indenture and the
         Registration Rights Agreement, the issuance of the Securities and the
         fees of the Trustee; (ii) the preparation, printing or reproduction of
         the Preliminary Memorandum and Final Memorandum and each amendment or
         supplement to either of them; (iii) the printing (or reproduction) and
         delivery (including postage, air freight charges and charges for
         counting and packaging) of such copies of the Preliminary Memorandum
         and Final Memorandum, and all amendments or supplements to either of
         them, as may, in each case, be reasonably requested for use in
         connection with the offering and sale of the Securities; (iv) the
         preparation, printing, authentication, issuance and delivery of
         certificates for the Securities, including any stamp or transfer taxes
         in connection with the original issuance and sale of the Securities and
         the shares of Stock issuable upon conversion of the Securities; (v) the
         printing (or reproduction) and delivery of this Agreement, any blue sky
         memorandum and all other agreements or documents printed (or
         reproduced) and delivered in connection with the offering of the
         Securities; (vi) any registration or qualification of the Securities
         for offer and sale under the securities or blue sky laws of the several
         states (including filing fees and the reasonable fees and expenses of
         counsel for the Initial Purchasers relating to such registration and
         qualification); (vii) admitting the Securities for trading in The
         Portal Market of the NASD and the listing of the shares of Stock
         issuable upon conversion of the Securities; (viii) the transportation
         and other expenses incurred by or on behalf of Company representatives
         in connection with presentations to prospective purchasers of the
         Securities; (ix) the fees and expenses of the Company's accountants and
         the fees and expenses of counsel (including local and special counsel)
         for the Company; and (x) all other costs and expenses incident to the
         performance by the Company of its obligations hereunder and under the
         Indenture and the Registration Rights Agreement.

                  (n) The Company will reserve and keep available at all times,
         free of preemptive rights, shares of Stock for the purpose of enabling
         the Company to satisfy its obligations to issue shares of Stock upon
         conversion of the Securities.

<PAGE>
                                                                              14

                  (o) The Company will refuse, and will cause all applicable
         trustees and transfer agents to refuse, to register any transfer of
         Securities or shares of Stock issued upon conversion of Securities if
         such transfer is not made pursuant to an effective registration
         statement under the Act or pursuant to an available exemption from the
         registration requirements of the Act; provided that the provisions of
         this paragraph shall not be applicable to any Security or share of
         Stock which has been transferred pursuant to an effective registration
         statement or Rule 144 under the Act, and, as a result of which, or
         otherwise, are no longer subject to restrictions on transfer under the
         Act.

                  (p) All of the Securities and shares of Stock issuable upon
         conversion of the Securities will contain a legend to the effect that
         the transfer thereof is prohibited except pursuant to an effective
         registration statement under the Act or pursuant to an available
         exemption from registration under the Act and that hedging transactions
         involving those Securities or shares may not be conducted unless in
         compliance with the Act; provided that such legend may be removed if
         such Securities or shares have been transferred pursuant to an
         effective registration statement or when eligible for resale under Rule
         144 under the Act, and, as a result of which, or otherwise, are no
         longer subject to restrictions on transfer under the Act.

                  (q) Between the date hereof and the Closing Date, the Company
         will not do or authorize any act or thing that would result in an
         adjustment of the conversion price.

                  (r) The Company shall duly list the shares of Stock issuable
         upon conversion of the Securities on the Nasdaq National Market,
         subject to official notice of issuance.

                  (s) The Company shall (i) deliver to the trustee (the "2005
         Notes Trustee") for its 6% Convertible Subordinated Notes due 2005 (the
         "2005 Notes") an irrevocable notice instructing the 2005 Notes Trustee,
         upon telephonic authorization from the Company contemporaneous with the
         receipt of the purchase price for the Firm Securities as specified in
         Section 3 of this Agreement, to deliver to The Depository Trust Company
         ("DTC") as holder of the 2005 Notes, a notice of redemption (the
         "Redemption Notice") for all the outstanding 2005 Notes pursuant to
         Section 3.02 of the Indenture (the "2005 Notes Indenture") dated as of
         March 18, 1998 between the Company and the 2005 Notes Trustee, (ii) not
         do or authorize any act or thing that would result in the rescission of
         the Redemption Notice and (iii) redeem the 2005 Notes in the manner
         provided for in the 2005 Notes Indenture and the Redemption Notice.

                   6. Conditions to the Obligations of the Initial Purchasers.
The obligations of the Initial Purchasers to purchase the Firm Securities and
the Option Securities, as the case may be, shall be subject to the accuracy of
the representations and warranties on the part of the Company contained herein
at the Execution Time, the Closing Date and any settlement date pursuant to
Section 3 hereof, to the accuracy of the statements of the Company made in any
certificates pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions:

<PAGE>
                                                                              15

                  (a) The Company shall have requested and caused Faegre &
Benson LLP, counsel for the Company, to furnish to the Representatives its
opinion, dated the Closing Date and addressed to the Representatives, to the
effect that:

                           (i) the Company has been duly incorporated and is
                  validly existing as a corporation in good standing under the
                  laws of Minnesota, with full corporate power and authority to
                  own or lease, as the case may be, and to operate its
                  properties and conduct its business as described in the Final
                  Memorandum, and is duly qualified to do business as a foreign
                  corporation and is in good standing under the laws of each of
                  Wisconsin and South Dakota and that the Company has no
                  material subsidiaries;

                           (ii) all the outstanding shares of capital stock of
                  the Company and each Subsidiary have been duly and validly
                  authorized and issued and are fully paid and nonassessable,
                  and, except as otherwise set forth in the Final Memorandum,
                  all outstanding shares of capital stock of the Subsidiaries
                  are owned by the Company either directly or through wholly
                  owned subsidiaries free and clear of any perfected security
                  interest and, to the knowledge of such counsel, any other
                  security interests, claims, liens or encumbrances;

                           (iii) the Company's authorized equity capitalization
                  is as set forth in the Final Memorandum; the shares of Stock
                  issuable upon conversion of the Securities conform, as to
                  legal matters, in all material respects to the description
                  thereof incorporated in the Final Memorandum; the shares of
                  Stock initially issuable upon conversion of the Securities
                  have been duly authorized and, when issued upon conversion in
                  accordance with the Securities and the Indenture, will be
                  validly issued, fully paid and nonassessable; no holder of
                  outstanding Securities of the Company has any statutory or, to
                  such Counsel's knowledge, other preemptive rights to subscribe
                  for the Securities or the shares of Stock issuable upon
                  conversion of the Securities; and to such counsel's knowledge,
                  except (i) as set forth in the Final Memorandum and (ii)
                  options in respect of 518,000 additional shares of Stock
                  granted in the Company's fiscal year 2003 and approximately
                  4,500 shares of restricted Stock to be issued to members of
                  the Board of Directors on the date hereof, no options,
                  warrants or other rights to purchase, agreements or other
                  obligations to issue, or rights to convert any obligations
                  into or exchange any securities for, shares of capital stock
                  or ownership interests in the Company are outstanding;

                           (iv) the Indenture has been duly authorized, executed
                  and delivered, and assuming due authorization, execution and
                  delivery by the Trustee, constitutes a legal, valid and
                  binding instrument enforceable against the Company in
                  accordance with its terms (subject, as to the enforcement of
                  remedies, to applicable bankruptcy, reorganization,
                  insolvency, moratorium or other laws affecting creditors'
                  rights generally from time to time in effect and to general
                  principles of equity, including, without limitation, concepts
                  of materiality, reasonableness, good faith and fair dealing,
                  regardless of whether considered in a proceeding in equity or
                  at law); the Securities have been duly and validly authorized
                  and, when executed and authenticated in accordance with the
                  provisions of the Indenture and delivered to and paid for by
                  the Initial Purchasers

<PAGE>
                                                                              16

                  under this Agreement, will constitute legal, valid and binding
                  obligations of the Company entitled to the benefits of the
                  Indenture (subject, as to the enforcement of remedies, to
                  applicable bankruptcy, reorganization, insolvency, moratorium
                  or other laws affecting creditors' rights generally from time
                  to time in effect and to general principles of equity,
                  including, without limitation, concepts of materiality,
                  reasonableness, good faith and fair dealing, regardless of
                  whether considered in a proceeding in equity or at law); the
                  Registration Rights Agreement has been duly authorized,
                  executed and delivered and constitutes a legal, valid and
                  binding instrument enforceable against the Company in
                  accordance with its terms (except as rights to indemnification
                  thereunder may be limited by applicable laws and subject, as
                  to the enforcement of remedies, to applicable bankruptcy,
                  reorganization, insolvency, moratorium or other laws affecting
                  creditors' rights generally from time to time in effect and to
                  general principles of equity, including, without limitation,
                  concepts of materiality, reasonableness, good faith and fair
                  dealing, regardless of whether considered in a proceeding in
                  equity or at law); and the statements set forth under the
                  heading "Description of Notes" and the description of capital
                  stock incorporated in the Final Memorandum constitute a fair
                  and accurate summary of the provisions of the Securities, the
                  Indenture and the Registration Rights Agreement in all
                  material respects;

                           (v) there is no pending or to the knowledge of such
                  counsel threatened action, suit or proceeding by or before any
                  court or governmental agency, authority or body or any
                  arbitrator involving the Company or any of its subsidiaries or
                  its or their property that would be required to be disclosed
                  in a registration statement on Form S-1 under the Act and that
                  is not adequately disclosed in the Final Memorandum, except in
                  each case for such proceedings that could not reasonably be
                  expected to, singly or in the aggregate, result in a Material
                  Adverse Effect; and the statements in the Final Memorandum
                  under the headings "Material United States Income Tax
                  Considerations", and "Legal Matters" insofar as such
                  statements summarize legal matters, agreements, documents or
                  proceedings discussed therein, are accurate and fair summaries
                  of such legal matters, agreements, documents or proceedings;

                           (vi) such counsel has no reason to believe that at
                  the Execution Time or on the Closing Date, the Final
                  Memorandum contained or contains any untrue statement of a
                  material fact or omitted or omits to state any material fact
                  necessary to make the statements therein, in the light of the
                  circumstances under which they were made, not misleading (in
                  each case, other than the financial statements and other
                  financial information contained therein, as to which such
                  counsel need express no opinion);

                           (vii) this Agreement has been duly authorized,
                  executed and delivered by the Company;

                           (viii) no consent, approval, authorization, filing
                  with or order of any court or governmental agency or body is
                  required in connection with the transactions contemplated
                  herein or in the Indenture and the Registration Rights
                  Agreement, except such as will be obtained under the Act and
                  the Trust Indenture Act in

<PAGE>
                                                                              17

                  connection with the transactions contemplated by the
                  Registration Rights Agreement and such as may be required
                  under the blue sky or securities laws of any jurisdiction and
                  the National Association of Securities Dealers Inc. in
                  connection with the transactions contemplated by this
                  Agreement and the Registration Rights Agreement and such other
                  approvals (specified in such opinion) as have been obtained;

                           (ix) none of the execution and delivery of the
                  Indenture, this Agreement or the Registration Rights
                  Agreement, the issue and sale of the Securities, or the
                  consummation of any other of the transactions herein or
                  therein contemplated, or the fulfillment of the terms hereof
                  or thereof, will conflict with, require any mandatory
                  repurchase or early termination of benefits under, result in a
                  breach or violation of, or imposition of any lien, charge or
                  encumbrance upon any property or assets of the Company or any
                  of its subsidiaries pursuant to, (i) the charter or by-laws of
                  the Company or any of its subsidiaries; (ii) the terms of any
                  indenture, contract, lease, mortgage, deed of trust, note
                  agreement, loan agreement or other agreement, obligation,
                  condition, covenant or instrument to which the Company or any
                  of its subsidiaries is a party or bound or to which any of
                  their respective properties is subject; or (iii) any statute,
                  law, rule, regulation, judgment, order or decree applicable to
                  the Company or any of its subsidiaries of any court,
                  regulatory body, administrative agency, governmental body,
                  arbitrator or other authority having jurisdiction over the
                  Company, any of its subsidiaries or any of their respective
                  properties, except in the case of clauses (ii) and (iii) for
                  such conflicts, breaches, violations, mandatory repurchases,
                  early terminations, liens, charges or encumbrances that could
                  not reasonably be expected to have a Material Adverse Effect.;

                           (x) assuming the accuracy of the representations and
                  warranties and compliance with the agreements contained
                  herein, no registration of the Securities under the Act, and
                  no qualification of an indenture under the Trust Indenture
                  Act, is required for the offer and sale by the Initial
                  Purchasers of the Securities in the manner contemplated by
                  this Agreement;

                           (xi) the Company is not and, after giving effect to
                  the offering and sale of the Securities and the application of
                  the proceeds thereof as described in the Final Memorandum,
                  will not be an "investment company" as defined in the
                  Investment Company Act without taking account of any exemption
                  arising out of the number of holders of the Company's
                  securities;

                           (xii) the Redemption Notice satisfies the
                  requirements of Section 3.02 of the 2005 Notes Indenture and,
                  assuming such Redemption Notice is given by the 2005 Notes
                  Trustee on behalf of the Company to the holders of the 2005
                  Notes in the manner specified by the 2005 Notes Indenture, no
                  further notice or action (other than the payment of the
                  redemption price in accordance with Section 3.03 of the 2005
                  Notes Indenture) on the part of the Company is required to
                  redeem the 2005 Notes;

<PAGE>
                                                                              18

                           (xiii) to such counsel's knowledge, as of September
                  29, 2002, the Company owned 110 issued U.S. Patents (the "U.S.
                  Patents") and 52 pending U.S. Applications (the "U.S.
                  Applications"); and such counsel knows of no claims of third
                  parties or liens with respect to the Company's ownership
                  interest in any of the U.S. Patents or U.S. Applications;

                           (xiv) to such counsel's knowledge, as of September
                  29, 2002, the Company owned 15 issued foreign patents (the
                  "Non-U.S. Patents") and 48 pending foreign patent applications
                  (the "Non-U.S. Applications"); and such counsel knows of no
                  claims of third parties or liens with respect to the Company's
                  ownership interest in any of the Non-U.S. Patents or Non-U.S.
                  Applications;

                           (xv) to such counsel's knowledge, the statements set
                  forth or incorporated in the Final Memorandum under the
                  captions "Risk Factors--We may be unable to adequately protect
                  our intellectual property," "Business--Research and
                  Development" and "Business--Intellectual Properties" and any
                  amendment or supplement thereto, insofar as such statements
                  constitute a summary of the Company's U.S. Patents, Non-U.S.
                  Patents, U.S. Applications, Non-U.S. Applications and other
                  intellectual property, fairly and accurately summarize in all
                  material respects the legal matters, documents and proceedings
                  relating to such U.S. Patents, Non-U.S. Patents, U.S.
                  Applications, Non-U.S. Applications and other intellectual
                  property described therein;

                           (xvi) to such counsel's knowledge, the Company or the
                  Company's customers own or possess sufficient rights to
                  patents, patent applications, copyrights, trade secrets and
                  other intellectual property rights necessary to the conduct of
                  its disk drive suspension business as now or proposed to be
                  conducted by the Company as described in the Final Memorandum;

                           (xvii) such counsel knows of no pending or threatened
                  action, suit, proceeding or claim by governmental authorities
                  or others that the Company is infringing or otherwise
                  violating any patents or trade secrets;

                           (xviii) such counsel is not aware of any material
                  defects of form in the preparation or filing of the U.S.
                  Applications and Non-U.S. Applications on behalf of the
                  Company; the U.S. Applications and Non-U.S. Applications are
                  being diligently pursued by the Company; and such counsel is
                  not aware of any pending or threatened actions, suits,
                  proceedings or claims by governmental authorities or others
                  challenging the validity of the U.S. Patents or Non-U.S.
                  Patents;

                           (xix) such counsel is not aware of any infringement
                  on the part of any third party of the U.S. Patents or Non-U.S.
                  Patents, trade secrets, know-how or other proprietary rights
                  of the Company; and

                           (xx) to such counsel's knowledge, there are no
                  contracts or other documents relating to the Company's
                  intellectual property of a character required to

<PAGE>
                                                                              19

         be filed as an exhibit to the Company's filings with the Commission or
         required to be described in the Company's filings with the Commission
         that are not filed or described as required.

         In rendering such opinion, such counsel may rely (A) as to matters
involving the application of laws of any jurisdiction other than the State of
Minnesota or the Federal laws of the United States, to the extent they deem
proper and specified in such opinion, upon the opinion of other counsel of good
standing whom they believe to be reliable and who are satisfactory to counsel
for the Initial Purchasers; and (B) as to matters of fact, to the extent they
deem proper, on certificates of responsible officers of the Company and public
officials. References to the Final Memorandum in this Section 6(a) include any
amendment or supplement thereto at the Closing Date.

            (b) The Representatives shall have received from Cravath, Swaine &
         Moore, counsel for the Initial Purchasers, such opinion or opinions,
         dated the Closing Date and addressed to the Representatives, with
         respect to the issuance and sale of the Securities, the Indenture, the
         Registration Rights Agreement, the Final Memorandum (as amended or
         supplemented at the Closing Date) and other related matters as the
         Representatives may reasonably require, and the Company shall have
         furnished to such counsel such documents as they request for the
         purpose of enabling them to pass upon such matters.

                  (c) The Company shall have furnished to the Representatives a
         certificate of the Company, signed by the Chairman of the Board or the
         President and the Chief Financial Officer or the Treasurer, dated the
         Closing Date, to the effect that the signers of such certificate have
         carefully examined the Final Memorandum, any amendment or supplement to
         the Final Memorandum and this Agreement and that:

                           (i) the representations and warranties of the Company
                  in this Agreement are true and correct in all material
                  respects on and as of the Closing Date with the same effect as
                  if made on the Closing Date, and the Company has complied with
                  all the agreements and satisfied all the conditions on its
                  part to be performed or satisfied hereunder at or prior to the
                  Closing Date; and

                           (ii) since the date of the most recent financial
                  statements included in the Final Memorandum (exclusive of any
                  amendment or supplement thereto), there has been no material
                  adverse change in the condition (financial or otherwise),
                  earnings, business or properties of the Company and its
                  subsidiaries, taken as a whole, whether or not arising from
                  transactions in the ordinary course of business, except as set
                  forth in or contemplated by the Final Memorandum (exclusive of
                  any amendment or supplement thereto).

                  (d) The Company shall have furnished to the Representatives
         such further certificates and documents as the Representatives may
         reasonably request evidencing the derivation from the Company's
         accounting books and records of financial statements or other financial
         data included in the Final Memorandum and any amendment or supplement
         to the Final Memorandum for periods during which the Company's
         financial statements were audited by Arthur Andersen LLP.

<PAGE>
                                                                              20

                  (e) At the Execution Time and at the Closing Date, the Company
         shall have requested and caused Deloitte & Touche LLP to furnish to the
         Representatives letters, dated respectively as of the Execution Time
         and as of the Closing Date, in form and substance satisfactory to the
         Representatives, confirming that they are independent accountants
         within the meaning of the Act and the rules of the American Institute
         of Certified Public Accountants, that they have performed a review of
         the unaudited interim financial information of the Company for the
         thirteen weeks ended December 29, 2002 and as at December 29, 2002, and
         stating in effect that:

                           (i) in their opinion the audited financial statements
                  and financial statement schedules included or incorporated in
                  the Final Memorandum and reported on by them comply as to form
                  in all material respects with the applicable accounting
                  requirements of the Exchange Act and the related rules and
                  regulations adopted by the Commission thereunder that would
                  apply to the Final Memorandum if the Final Memorandum were a
                  prospectus included in a registration statement on Form S-1
                  under the Act;

                           (ii) on the basis of a reading of the latest
                  unaudited financial statements made available by the Company
                  and its subsidiaries; their limited review, in accordance with
                  the standards established under Statement on Auditing
                  Standards No. 71, of the unaudited interim financial
                  information for the thirteen weeks ended December 29, 2002 and
                  as at December 29, 2002; carrying out certain specified
                  procedures (but not an examination in accordance with
                  generally accepted auditing standards) which would not
                  necessarily reveal matters of significance with respect to the
                  comments set forth in such letter; a reading of the minutes of
                  the meetings of the stockholders, Board of Directors and the
                  Executive, Audit and Finance Committees of the Company and the
                  Subsidiaries; and inquiries of certain officials of the
                  Company who have responsibility for financial and accounting
                  matters of the Company and its subsidiaries as to transactions
                  and events subsequent to September 29, 2002, nothing came to
                  their attention which caused them to believe that:

                                    (1) any unaudited financial statements
                           included or incorporated in the Final Memorandum do
                           not comply in form in all material respects with
                           applicable accounting requirements and with the
                           related rules and regulations adopted by the
                           Commission with respect to financial statements
                           included or incorporated in quarterly reports on Form
                           10-Q under the Exchange Act; or said unaudited
                           financial statements are not in conformity with
                           generally accepted accounting principles applied on a
                           basis substantially consistent with that of the
                           audited financial statements included or incorporated
                           in the Final Memorandum; and

                                    (2) with respect to the period subsequent to
                           December 29, 2002, there were any increases, at a
                           specified date not more than five days prior to the
                           date of the letter, in the long-term debt of the
                           Company and its subsidiaries or decreases in capital
                           stock of the Company or decreases in shareholders'

<PAGE>
                                                                              21

                           investment of the Company as compared with the
                           amounts shown on the December 29, 2002 unaudited
                           condensed consolidated balance sheet included or
                           incorporated in the Final Memorandum, or for the
                           period from December 30, 2002 to such specified date,
                           there were any decreases, as compared with the period
                           subsequent to December 30, 2001, in consolidated net
                           sales, gross profit, income from operations, or
                           income before income taxes or in total or per share
                           amounts of net income of the Company and its
                           subsidiaries, except in all instances for changes or
                           decreases set forth in such letter, in which case the
                           letter shall be accompanied by an explanation by the
                           Company as to the significance thereof unless said
                           explanation is not deemed necessary by the
                           Representatives.

                              (iii) they have performed certain other specified
                  procedures as a result of which they determined that certain
                  information of an accounting, financial or statistical nature
                  (which is limited to accounting, financial or statistical
                  information derived from the general accounting records of the
                  Company and its subsidiaries) set forth in the Final
                  Memorandum agrees with the accounting records of the Company
                  and its subsidiaries excluding any questions of legal
                  interpretation.

                  References to the Final Memorandum in this Section 6(e)
include any amendment or supplement thereto at the date of the applicable
letter.

                  (f) Subsequent to the Execution Time or, if earlier, the dates
         as of which information is given in the Final Memorandum (exclusive of
         any amendment or supplement thereto), there shall not have been (i) any
         increases in the long-term debt of the Company and its subsidiaries,
         decreases in capital stock of the Company or decreases in shareholders'
         investment of the Company as compared with the amounts shown on the
         December 29, 2002 unaudited condensed consolidated balance sheet
         included or incorporated in the Final Memorandum, or for the period
         from December 30, 2002, any decreases, as compared with the period
         subsequent to December 30, 2001, in consolidated net sales, gross
         profit, income from operations, or income before income taxes or in
         total or per share amounts of net income of the Company; or (ii) any
         change, or any development involving a prospective change, in or
         affecting the condition (financial or otherwise), earnings, business or
         properties of the Company and its subsidiaries, taken as a whole,
         whether or not arising from transactions in the ordinary course of
         business, except as set forth in or contemplated in the Final
         Memorandum (exclusive of any amendment or supplement thereto) the
         effect of which, in any case referred to in clause (i) or (ii) above,
         is, in the sole judgment of the Representatives, so material and
         adverse as to make it impractical or inadvisable to market the
         Securities as contemplated by the Final Memorandum (exclusive of any
         amendment or supplement thereto).

                  (g) The Securities shall have been designated as
         Portal-eligible securities in accordance with the rules and regulations
         of the NASD, and the Securities shall be eligible for clearance and
         settlement through DTC.

                  (h) The 2005 Notes Trustee shall have delivered the Redemption
         Notice to DTC.

<PAGE>
                                                                              22

                  (i) Each Lock-up Agreement shall have been duly executed and
         delivered to the Company and you and there shall have occurred no
         breach of any Lock-up Agreement.

                  (j) The shares of Stock issuable upon conversion of the
         Securities shall have been duly listed, subject to notice of issuance,
         on the Nasdaq National Market.

                  (k) Prior to the Closing Date, the Company shall have
         furnished to the Representatives such further information, certificates
         and documents as the Representatives may reasonably request.

         If any of the conditions specified in this Section 6 shall not have
been fulfilled in all material respects when and as provided in this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance to the Representatives and counsel for the Initial Purchasers,
this Agreement and all obligations of the Initial Purchasers hereunder may be
canceled at, or at any time prior to, the Closing Date by the Representatives.
Notice of such cancelation shall be given to the Company in writing or by
telephone or facsimile confirmed in writing.

         The documents required to be delivered by this Section 6 will be
delivered at the office of counsel for the Initial Purchasers, at 825 Eighth
Avenue, Worldwide Plaza, New York, New York, 10019, on the Closing Date.

         7. Reimbursement of Expenses. If the sale of the Securities provided
for herein is not consummated because any condition to the obligations of the
Initial Purchasers set forth in Section 6 hereof is not satisfied, because of
any termination pursuant to Section 10 hereof or because of any refusal,
inability or failure on the part of the Company to perform any agreement herein
or comply with any provision hereof other than by reason of a default by any of
the Initial Purchasers, the Company will reimburse the Initial Purchasers
severally through Salomon Smith Barney Inc. on demand for all out-of-pocket
expenses (including reasonable fees and disbursements of counsel) that shall
have been incurred by them in connection with the proposed purchase and sale of
the Securities.

         8. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Initial Purchaser, the directors, officers,
employees and agents of each Initial Purchaser and each person who controls any
Initial Purchaser within the meaning of either the Act or the Exchange Act
against any and all losses, claims, damages or liabilities, joint or several, to
which they or any of them may become subject under the Act, the Exchange Act or
other Federal or state statutory law or regulation, at common law or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Memorandum, the Final
Memorandum (or in any supplement or amendment thereto) or any information
provided by the Company to any holder or prospective purchaser of Securities
pursuant to Section 5(h) hereof, or in any amendment thereof or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses

<PAGE>
                                                                              23

reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made in
the Preliminary Memorandum or the Final Memorandum, or in any amendment thereof
or supplement thereto, in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Initial Purchasers
through the Representatives specifically for inclusion therein. This indemnity
agreement will be in addition to any liability which the Company may otherwise
have.

         (b) Each Initial Purchaser severally and not jointly agrees to
indemnify and hold harmless the Company, each of its directors, each of its
officers, and each person who controls the Company within the meaning of either
the Act or the Exchange Act, to the same extent as the foregoing indemnity from
the Company to each Initial Purchaser, but only with reference to written
information relating to such Initial Purchaser furnished to the Company by or on
behalf of such Initial Purchaser through the Representatives specifically for
inclusion in the Preliminary Memorandum or the Final Memorandum (or in any
amendment or supplement thereto). This indemnity agreement will be in addition
to any liability which any Initial Purchaser may otherwise have. The Company
acknowledges that the statements set forth in the last paragraph of the cover
page regarding the delivery of the Securities and, under the heading "Plan of
Distribution", (i) the list of Initial Purchasers and their respective
participation in the sale of the Securities; and (ii) the paragraph related to
stabilization, syndicate covering transactions and penalty bids in the
Preliminary Memorandum and the Final Memorandum, constitute the only information
furnished in writing by or on behalf of the Initial Purchasers for inclusion in
the Preliminary Memorandum or the Final Memorandum (or in any amendment or
supplement thereto).

         (c) Promptly after receipt by an indemnified party under this Section 8
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 8, notify the indemnifying party in writing of the commencement thereof;
but the failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses; and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or (b)
above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party's choice at the indemnifying party's expense to represent the
indemnified party in any action for which indemnification is sought (in which
case the indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the indemnified party or parties
except as set forth below); provided, however, that such counsel shall be
satisfactory to the indemnified party. Notwithstanding the indemnifying party's
election to appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including
local counsel), and the indemnifying party shall bear the reasonable fees, costs
and expenses of such separate counsel if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest; (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be

<PAGE>
                                                                              24

legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party; (iii)
the indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or
consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding. An indemnifying
party shall not be liable under this Section 8 to any indemnified party
regarding any settlement or compromise or consent to the entry of any judgment
with respect to any pending or threatened claim, action, suit or proceeding in
respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified parties are actual or potential parties to such
claim or action) unless such settlement, compromise or consent is consented to
by such indemnifying party, which consent shall not be unreasonably withheld.

         (d) In the event that the indemnity provided in paragraph (a) or (b) of
this Section 8 is unavailable to or insufficient to hold harmless an indemnified
party for any reason, the Company and the Initial Purchasers severally agree to
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively "Losses") to which the Company and one or more of
the Initial Purchasers may be subject in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand and by the
Initial Purchasers on the other from the offering of the Securities; provided,
however, that in no case shall any Initial Purchaser (except as may be provided
in any agreement among the Initial Purchasers relating to the offering of the
Securities) be responsible for any amount in excess of the purchase discount or
commission applicable to the Securities purchased by such Initial Purchaser
hereunder. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the Company and the Initial Purchasers severally
shall contribute in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Company on the one hand and
of the Initial Purchasers on the other in connection with the statements or
omissions which resulted in such Losses, as well as any other relevant equitable
considerations. Benefits received by the Company shall be deemed to be equal to
the total net proceeds from the offering (before deducting expenses) received by
it, and benefits received by the Initial Purchasers shall be deemed to be equal
to the total purchase discounts and commissions. Relative fault shall be
determined by reference to, among other things, whether any untrue or any
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information provided by the Company on the
one hand or the Initial Purchasers on the other, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. The Company and the Initial
Purchasers agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation which does
not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent

<PAGE>
                                                                              25

misrepresentation. For purposes of this Section 8, each person who controls an
Initial Purchaser within the meaning of either the Act or the Exchange Act and
each director, officer, employee and agent of an Initial Purchaser shall have
the same rights to contribution as such Initial Purchaser, and each person who
controls the Company within the meaning of either the Act or the Exchange Act
and each officer and director of the Company shall have the same rights to
contribution as the Company, subject in each case to the applicable terms and
conditions of this paragraph (d).

         9. Default by an Initial Purchaser. If any one or more Initial
Purchasers shall fail to purchase and pay for any of the Securities agreed to be
purchased by such Initial Purchaser hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Initial Purchasers shall be obligated severally to take
up and pay for (in the respective proportions which the principal amount of
Securities set forth opposite their names on Schedule I hereto bears to the
aggregate principal amount of Securities set forth opposite the names of all the
remaining Initial Purchasers) the Securities which the defaulting Initial
Purchaser or Initial Purchasers agreed but failed to purchase; provided,
however, that in the event that the aggregate principal amount of Securities
which the defaulting Initial Purchaser or Initial Purchasers agreed but failed
to purchase shall exceed 10% of the aggregate principal amount of Securities set
forth on Schedule I hereto, the remaining Initial Purchasers shall have the
right to purchase all, but shall not be under any obligation to purchase any, of
the Securities, and if such nondefaulting Initial Purchasers do not purchase all
the Securities, this Agreement will terminate without liability to any
nondefaulting Initial Purchaser or the Company. In the event of a default by any
Initial Purchaser as set forth in this Section 9, the Closing Date shall be
postponed for such period, not exceeding five Business Days, as the
Representatives shall determine in order that the required changes in the Final
Memorandum or in any other documents or arrangements may be effected. Nothing
contained in this Agreement shall relieve any defaulting Initial Purchaser of
its liability, if any, to the Company or any nondefaulting Initial Purchaser for
damages occasioned by its default hereunder.

         10. Termination. This Agreement shall be subject to termination in the
absolute discretion of the Representatives, by notice given to the Company prior
to delivery of and payment for the Securities, if at any time prior to such time
(i) trading in the Company's Common Stock shall have been suspended by the
Commission, the New York Stock Exchange or the Nasdaq National Market or trading
in securities generally on the New York Stock Exchange or the Nasdaq National
Market shall have been suspended or limited or minimum prices shall have been
established on either of such Exchange or the Nasdaq National Market; (ii) a
banking moratorium shall have been declared either by Federal or New York State
authorities; or (iii) there shall have occurred any outbreak or escalation of
hostilities, declaration by the United States of a national emergency or war or
other calamity or crisis the effect of which on financial markets is such as to
make it, in the sole judgment of the Representatives, impracticable or
inadvisable to proceed with the offering or delivery of the Securities as
contemplated by the Final Memorandum (exclusive of any amendment or supplement
thereto).

         11. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of the Initial Purchasers set forth in or made
pursuant to this Agreement will remain in full force and effect, regardless of
any investigation made by or on behalf of the Initial Purchasers or the Company

<PAGE>
                                                                              26

or any of the officers, directors, employees, agents or controlling persons
referred to in Section 8 hereof, and will survive delivery of and payment for
the Securities. The provisions of Sections 7 and 8 hereof shall survive the
termination or cancelation of this Agreement.

         12. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Representatives, will be mailed,
delivered or telefaxed to the Salomon Smith Barney Inc. General Counsel (fax
no.: (212) 816-7912) and confirmed to the General Counsel, Salomon Smith Barney
Inc. at 388 Greenwich Street, New York, New York 10013, Attention: General
Counsel; or, if sent to the Company, will be mailed, delivered or telefaxed to
the Company's Chief Financial Officer ((fax no. (320) 587-1645) and confirmed to
Hutchinson Technology Incorporated, 40 West Highland Park, Hutchinson, Minnesota
55350-9784, attention of the Investor Relations.

         13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
officers, directors, employees, agents and controlling persons referred to in
Section 8 hereof, and, except as expressly set forth in Section 5(h) hereof, no
other person will have any right or obligation hereunder.

         14. Applicable Law. This Agreement will be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed within the State of New York.

         15. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same instrument.

         16. Headings. The section headings used herein are for convenience only
and shall not affect the construction hereof.

         17. Definitions. The terms which follow, when used in this Agreement,
shall have the meanings indicated.

         "Act" shall mean the Securities Act of 1933, as amended, and the rules
and regulations of the Commission promulgated thereunder.

         "Affiliate" shall have the meaning specified in Rule 501(b) of
Regulation D.

         "Business Day" shall mean any day other than a Saturday, a Sunday or a
legal holiday or a day on which banking institutions or trust companies are
authorized or obligated by law to close in The City of New York or The City of
Chicago.

         "Commission" shall mean the Securities and Exchange Commission.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

<PAGE>
                                                                              27

         "Execution Time" shall mean the date and time that this Agreement is
executed and delivered by the parties hereto.

         "Investment Company Act" shall mean the Investment Company Act of 1940,
as amended, and the rules and regulations of the Commission promulgated
thereunder.

         "NASD" shall mean the National Association of Securities Dealers, Inc.

         "Regulation D" shall mean Regulation D under the Act.

         "Regulation S" shall mean Regulation S under the Act.

         "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended, and the rules and regulations of the Commission promulgated thereunder.

<PAGE>

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this Agreement and your acceptance shall represent a binding agreement between
the Company and the several Initial Purchasers.

                                 Very truly yours,
                                 Hutchinson Technology Incorporated

                                   by
                                     /s/ Wayne M. Fortun
                                     ------------------------------------
                                     Name: Wayne M. Fortun
                                     Title: Chief Executive Officer

<PAGE>

The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

Salomon Smith Barney Inc.
Needham & Company, Inc.

Salomon Smith Barney Inc.

    by
        /s/ David M. Mastrangelo
        --------------------------
        Name: David M. Mastrangelo
        Title: Managing Director

For themselves and the other several Initial
Purchasers named in Schedule I to the foregoing Agreement.

<PAGE>

                                   SCHEDULE I

<Table>
<Caption>
                                                                                     Principal Amount
                                                                                    of Firm Securities
Initial Purchasers                                                                   to be purchased
                                                                                    ------------------
<S>                                                                                 <C>
Salomon Smith Barney Inc.........................................................    $  113,750,000

Needham & Company, Inc...........................................................        16,250,000

                Total ...........................................................    $  130,000,000
</Table>

<PAGE>

                                                                       EXHIBIT A

                       Selling Restrictions for Offers and
                         Sales outside the United States

         (1)(a) The Securities and the Stock issuable upon conversion of the
Securities have not been registered under the Act and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons
except pursuant to an exemption from the registration requirements of the Act,
unless registered under the Act. Each Initial Purchaser represents and agrees
that, except as otherwise permitted by Section 4(a)(i) of the Agreement to which
this is an exhibit, it has offered and sold the Securities, and will offer and
sell the Securities, (i) as part of their distribution at any time; and (ii)
otherwise until one year after the latest of the commencement of the offering,
the Closing Date and any subsequent closing date under the Initial Purchasers'
over-allotment option (the "Restricted Period"), only in accordance with Rule
903 of Regulation S under the Act. Accordingly, each Initial Purchaser
represents and agrees that neither it, nor any of its Affiliates nor any person
acting on its or their behalf has engaged or will engage in any directed selling
efforts with respect to the Securities, and that it and they have complied and
will comply with the offering restrictions requirement of Regulation S. Each
Initial Purchaser agrees that it will not engage, directly or indirectly, in
hedging transactions with regard to the Securities or the Stock issuable upon
conversion of the Securities prior to the expiration of the Restricted Period
unless in compliance with the Act. Each Initial Purchaser agrees that, at or
immediately prior to the confirmation of sale of Securities (other than a sale
of Securities pursuant to Section 4(a)(i) of the Agreement to which this is an
exhibit), it shall have sent to each distributor, dealer or person receiving a
selling concession, fee or other remuneration that purchases Securities from it
during the Restricted Period a confirmation or notice to substantially the
following effect:

         "The Securities covered hereby have not been registered under the
         U.S. Securities Act of 1933 (the "Act") and may not be offered or sold
         within the United States or to, or for the account or benefit of, U.S.
         persons (i) as part of their distribution at any time or (ii) otherwise
         until one year after the last date on which Securities were initially
         issued by the Company, except in either case in accordance with
         Regulation S or Rule 144A under the Act. Hedging transactions with
         regard to the Securities or the shares of Stock issuable upon
         conversion of the Securities may not be conducted, directly or
         indirectly, prior to the expiration of one year after the last date on
         which Securities were initially issued by the Company, unless in
         compliance with the Act. Terms used above have the meanings given to
         them by Regulation S."

                  (b) Each Initial Purchaser also represents and agrees that it
         has not entered and will not enter into any contractual arrangement
         with any distributor with respect to the distribution of the
         Securities, except with its Affiliates or with the prior written
         consent of the Company.

                  (c) Terms used in this section have the meanings given to them
         by Regulation S.

<PAGE>

         (2) Each Initial Purchaser represents and agrees that (i) it has not
offered or sold, and, prior to the expiry of six months from the closing of the
offering of the Securities will not offer or sell, any Securities to persons in
the United Kingdom except to persons whose ordinary activities involve them in
acquiring, holding, managing or disposing of investments, whether as principal
or agent, for purposes of their businesses or otherwise in circumstances which
have not resulted in and will not result in an offer to the public in the United
Kingdom within the meaning of the Public Offers of Securities Regulations 1995,
(ii) it has complied and will comply with all applicable provisions of the
Financial Services and Markets Act 2000 (the "FSMA") with respect to anything
done by them in relation to the Securities in, from or otherwise involving the
United Kingdom and (iii) it has communicated, or caused to be communicated, and
will only communicate, or cause to be communicated, any invitation or inducement
to engage in investment activity (within the meaning of Section 21 of the FSMA)
received by it in connection with the issue or sale of any Securities in
circumstances in which Section 21(1) of the FSMA does not apply.

<PAGE>

                                                                       EXHIBIT B

                           [Form of Lock-Up Agreement]

                       [Letterhead of officer or director]

                       HUTCHINSON TECHNOLOGY INCORPORATED

Salomon Smith Barney Inc.
Needham & Company, Inc.
As Representatives of the Initial Purchasers
c/o Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York  10013

Ladies and Gentlemen:

         This letter is being delivered to you in connection with the proposed
Purchase Agreement (the "Purchase Agreement"), between Hutchinson Technology
Incorporated, a Minnesota corporation (the "Company"), and you as
Representatives of the several Initial Purchasers named therein, relating to a
placement of $130,000,000 aggregate principal amount of Convertible Subordinated
Notes due 2010 ($150,000,000 if the over-allotment option is exercised by the
Initial Purchasers).

         In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the undersigned will not, without the prior written consent of
Salomon Smith Barney Inc., offer, sell, contract to sell, pledge or otherwise
dispose of (or enter into any transaction which is designed to, or might
reasonably be expected to, result in the disposition of (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise), directly or indirectly, including the filing of (or participation in
the filing of) a registration statement with the Securities and Exchange
Commission in respect of), or establish or increase a put equivalent position or
liquidate or decrease a call equivalent position within the meaning of Section
16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder
with respect to, any shares of common stock ("Common Stock") of the Company or
any securities convertible into, or exercisable or exchangeable for such Common
Stock, or publicly announce an intention to effect any such transaction, for a
period of 90 days after the date of the Purchase Agreement, other than (i)
shares of Common Stock disposed of as bona fide gifts approved by Salomon Smith
Barney Inc.; or (ii) with respect to stock options that expire prior to November
30, 2003, shares of Common Stock to generate net proceeds sufficient to pay the
strike price and the income taxes associated with the option exercise; provided,
however, that, without such

<PAGE>

consent, the undersigned may participate in the filing of any registration
statement which the Company is permitted to file pursuant to the Purchase
Agreement.

         If for any reason the Purchase Agreement shall be terminated prior to
the Closing Date (as defined in the Purchase Agreement), the agreement set forth
above shall likewise be terminated.

                                             Very truly yours,

                                             -----------------------------------
                                             Signature

                                             -----------------------------------
                                             Print Name<PAGE>

                                                                     EXHIBIT 4.7
                                                                  EXECUTION COPY

                       HUTCHINSON TECHNOLOGY INCORPORATED
                      2.25% CONVERTIBLE SUBORDINATED NOTES
                                    DUE 2010

                          REGISTRATION RIGHTS AGREEMENT

                                                          New York, New York
                                                   Dated as of February 24, 2003

Salomon Smith Barney Inc.
Needham & Company, Inc.
c/o Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York 10013

Ladies and Gentlemen:

         Hutchinson Technology Incorporated, a Minnesota corporation (the
"Company"), proposes to issue and sell (the "Initial Placement") to the
Purchasers (as defined herein) upon the terms set forth in a purchase agreement
dated February 18, 2003 (the "Purchase Agreement") between the Purchasers and
the Company, $130,000,000 principal amount (plus up to an additional $20,000,000
aggregate principal amount to cover over-allotments, if any) of its 2.25%
Convertible Subordinated Notes due 2010 (the "Securities"). As an inducement to
the Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the obligations of the Purchasers thereunder, the Company agrees
with the Purchasers (i) for the benefit of the Purchasers and (ii) for the
benefit of the holders from time to time of the Securities and the Common Stock,
par value $0.01 per share (the "Stock", which term shall also include the
associated common share purchase rights), of the Company issuable upon
conversion of the Securities, including the Purchasers (each of the foregoing a
"Holder" and, together, the "Holders"), as follows:

         1. DEFINITIONS. (a) Capitalized terms used herein without definition
shall have their respective meanings set forth in or pursuant to the Purchase
Agreement or the Final Offering Memorandum, dated February 18, 2003 in respect
of the Securities. As used in this Agreement, the following defined terms shall
have the following meanings:

         "Act" or "Securities Act" means the United States Securities Act of
1933, as amended, and the rules and regulations of the Commission promulgated
thereunder.

<PAGE>

         "Affiliate" of any specified person means any other person which,
directly or indirectly, is in control of, is controlled by, or is under common
control with such specified person. For purposes of this definition, control of
a person means the power, direct or indirect, to direct or cause the direction
of the management and policies of such person whether by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "Commission" means the United States Securities and Exchange
Commission.

         "DTC" means The Depository Trust Company.

         "Effectiveness Period" has the meaning set forth in Section 2 hereof.

         "Electing Holder" has the meaning assigned thereto in Section 3(a)(3)
hereof.

         "Exchange Act" means the United States Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated
thereunder.

         "Holder" shall have the meaning set forth in the preamble hereto.

         "Indenture" means the Indenture, dated of even date herewith, between
the Company and LaSalle Bank National Association, as trustee, as amended and
supplemented from time to time in accordance with its terms.

         "Initial Placement" shall have the meaning set forth in the preamble
hereto.

         "Managing Underwriters" means the investment banker or investment
bankers and manager or managers that shall administer an underwritten offering,
if any, as set forth in Section 6 hereof.

         "Notice and Questionnaire" means a Selling Securityholder Notice and
Questionnaire substantially in the form of Exhibit A hereto.

         "Person" shall mean an individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.

         "Prospectus" means the prospectus included in any Shelf Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities.

         "Purchasers" means the Purchasers named in Schedule I to the Purchase
Agreement.

         "Registrable Securities" means all or any portion of the Securities
issued from time to time under the Indenture in registered form and the shares
of Stock issuable upon conversion of such Securities; provided, however, that a
security ceases to be a Registrable Security when it is no longer a Restricted
Security.

         "Restricted Security" means any Security or share of Stock issuable
upon conversion thereof except any such Security or share of Stock which (i) has
been transferred pursuant to a Shelf

<PAGE>

Registration Statement or another registration statement covering such Security
or share of Stock, which has been filed with the Commission pursuant to the
Securities Act, in either case after such registration statement has become, and
while such registration is, effective under the Securities Act, (ii) has been
transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto), or (iii) may be sold or transferred pursuant to
Rule 144(k) under the Act (or any successor provision then in force).

         "Shelf Registration" means a registration effected pursuant to Section
2 hereof.

         "Shelf Registration Statement" means a shelf registration statement of
the Company pursuant to the provisions of Section 2 hereof filed with the
Commission which covers some or all of the Registrable Securities, as
applicable, on an appropriate form under Rule 415 under the Act, or any similar
rule that may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

         "underwriter" means any underwriter of Registrable Securities in
connection with an offering thereof under a Shelf Registration Statement.

         (b) Wherever there is a reference in this Agreement to a percentage of
the "principal amount" of Registrable Securities, Common Stock shall be treated
as representing the principal amount of Securities which was surrendered for
conversion or exchange in order to receive such number of shares of Common
Stock.

         2. SHELF REGISTRATION. (a) The Company shall, within 90 days following
the date of original issuance (the "Issue Date") of the Securities, file with
the Commission a Shelf Registration Statement relating to the offer and sale of
the Registrable Securities by the Holders from time to time in accordance with
the methods of distribution elected by such Holders and set forth in such Shelf
Registration Statement and, thereafter, shall use its reasonable best efforts to
cause such Shelf Registration Statement to be declared effective under the Act
within 180 calendar days after the Issue Date; provided that if any Securities
are issued upon exercise of the over-allotment option granted to the Purchasers
in the Purchase Agreement and the date on which such Securities are issued
occurs after the Issue Date, the Company will take such steps, prior to the
effective date of the Shelf Registration Statement, to ensure that such
Securities and Common Stock issuable upon conversion thereof are included in the
Shelf Registration Statement on the same terms as the Securities issued on the
Issue Date; and provided, further, that no Holder shall be entitled to have the
Registrable Securities held by it covered by such Shelf Registration unless such
Holder is an Electing Holder.

         (b) If (i) on or prior to 90 days following the date of original
         issuance of the Securities, a Shelf Registration Statement has not been
         filed with the Commission, (ii) on or prior to the 180th day following
         the date of original issuance of the Securities, such Shelf
         Registration Statement is not declared effective or (iii) the Shelf
         Registration Statement ceases to be effective prior to two years after
         the Issue Date or if later, two years from the last date on which any
         Option Securities were issued upon exercise of the Purchasers'
         over-allotment option or such earlier date as is provided in Section
         2(c) of this Agreement for a period (including any Delay Period) in
         excess of 60 days, whether or not consecutive, during any 12-month
         period (each such event referred to in clauses (i), (ii) and (iii)
         being referred to

                                      -3-
<PAGE>

         herein as a "Registration Default"), additional interest ("Liquidated
         Damages") will accrue on the Securities that are Restricted Securities
         from and including the day following such Registration Default to but
         excluding the day on which such Registration Default has been cured.
         Liquidated Damages will be paid semi-annually in arrears, with the
         first semi-annual payment due on the first Interest Payment Date in
         respect of the Registrable Securities following the date on which such
         Liquidated Damages begin to accrue, and will accrue (A) at a rate per
         annum equal to an additional one-quarter of one percent (0.25%) of the
         principal amount of the Registrable Securities outstanding or $2.50 per
         33.5121 shares of Stock, to and including the 90th day following such a
         Registration Default and (B) at a rate per annum equal to one-half of
         one percent (0.50%) thereof or $5.00 per 33.5121 shares of Stock, from
         and after the 91st day following such a Registration Default.

         (c)   The Company shall use its reasonable best efforts:

               (i) To keep the Shelf Registration Statement continuously
         effective in order to permit the Prospectus forming a part thereof to
         be usable by Holders for a period of two years from the Issue Date or
         if later, two years from the last date on which any Option Securities
         were issued upon exercise of the Purchasers' over-allotment option or
         such shorter period that will terminate upon the earliest of the
         following: (A) when all the Securities and the shares of Stock issuable
         upon conversion of the Securities covered by the Shelf Registration
         Statement have been sold pursuant to the Shelf Registration Statement
         or pursuant to Rule 144 and (B) when, in the written opinion of
         independent counsel to the Company, all outstanding Registrable
         Securities held by persons that are not affiliates of the Company may
         be resold without registration under the Act pursuant to Rule 144(k)
         under the Act or any successor provision thereto (in any such case,
         such period being called the "Effectiveness Period"); and

               (ii) After the date the Shelf Registration Statement becomes
         effective, within 10 Business Days after the request of any Holder of
         Registrable Securities that is not then an Electing Holder, to take any
         action necessary and required by law to enable such Holder to use the
         Prospectus forming a part thereof for resales of Registrable
         Securities, including, without limitation, any action necessary to
         identify such Holder as a selling securityholder in the Shelf
         Registration Statement; provided, however, that nothing in this
         subparagraph shall relieve such Holder of the obligation to return a
         completed and signed Notice and Questionnaire to the Company in
         accordance with Section 3(a)(2) hereof; and

               (iii) If at any time, the Securities, pursuant to Article XII of
         the Indenture, are convertible into securities other than Common Stock,
         the Company shall, or shall cause any successor under the Indenture to,
         cause such securities to be included in the Shelf Registration
         Statement no later than the date on which the Securities may then be
         convertible into such securities.

The Company shall be deemed not to have used its reasonable best efforts to keep
the Shelf Registration Statement effective during the requisite period if the
Company voluntarily takes any action that would result in Holders of Registrable
Securities covered thereby not being able to offer and sell any such Registrable
Securities during that period, unless (i) such action is required by applicable
law, or (ii) the continued effectiveness of the Shelf Registration Statement
would require the Company to disclose material non-public information, and the
Board of Directors shall have

                                      -4-
<PAGE>

determined in good faith that such disclosure is not in the best interests of
the Company; provided that the Company thereafter must promptly comply with the
requirements of paragraph 3(j) below, if applicable, and the Company shall be
entitled to suspend the use of any prospectus forming a part of an effective
Registration Statement under this Section 2 for a reasonable period of time (a
"Delay Period"), except that the aggregate number of days included in all Delay
Periods during any consecutive 12 months shall not exceed 60 days (whether or
not consecutive).

         3. REGISTRATION PROCEDURES. In connection with any Shelf Registration
Statement, the following provisions shall apply:

            (a) (1) Not less than 30 calendar days prior to the effective time
         of the Shelf Registration Statement, the Company shall mail the Notice
         and Questionnaire to the Holders of Registrable Securities. No Holder
         shall be entitled to be named as a selling securityholder in the Shelf
         Registration Statement as of the effective time, and no Holder shall be
         entitled to use the Prospectus forming a part thereof for resales of
         Registrable Securities at any time, unless such Holder has returned a
         completed and signed Notice and Questionnaire to the Company by the
         deadline for response set forth therein at least 10 days prior to the
         effective time of the Shelf Registration Statement; provided, however,
         that Holders of Registrable Securities shall have at least 20 calendar
         days from the date on which the Notice and Questionnaire is first
         mailed to such Holders to return a completed and signed Notice and
         Questionnaire to the Company.

               (2) After the effective time of the Shelf Registration Statement,
         the Company shall, upon the request of any Holder of Registrable
         Securities that is not then an Electing Holder, promptly send a Notice
         and Questionnaire to such Holder. The Company shall not be required to
         take any action to name such Holder as a selling securityholder in the
         Shelf Registration Statement or to enable such Holder to use the
         Prospectus forming a part thereof for resales of Registrable Securities
         until such Holder has returned a completed and signed Notice and
         Questionnaire to the Company. The Company shall (i) as promptly as
         practicable after the date a completed and signed Notice and
         Questionnaire is delivered to the Company, and in any event within 10
         Business Days after such date, prepare and file with the SEC (x) a
         supplement to the Prospectus or, if required by applicable law, a
         post-effective amendment to the Shelf Registration Statement and (y)
         any other document required by applicable law, so that the Holder
         delivering such Notice and Questionnaire is named as a selling
         securityholder in the Shelf Registration Statement and is permitted to
         deliver the Prospectus to purchasers of such Holder's Restricted
         Securities in accordance with applicable law, and (ii) if the Company
         shall file a post-effective amendment to the Shelf Registration
         Statement, use its reasonable best efforts to cause such post-effective
         amendment to become effective under the Act as promptly as is
         practicable; provided, however, that if a Notice and Questionnaire is
         delivered to the Company during a Delay Period, the Company shall not
         be obligated to take the actions set forth in clauses (i) and (ii)
         until the termination of such Delay Period.

               (3) The term "Electing Holder" shall mean any Holder of
         Registrable Securities that has returned a completed and signed Notice
         and Questionnaire to the Company in accordance with Section 3(a)(1) or
         3(a)(2) hereof.

                                      -5-
<PAGE>

               (b) The Company shall furnish to the Purchasers, prior to the
         filing thereof with the Commission, a copy of any Shelf Registration
         Statement, and each amendment thereof and each amendment or supplement,
         if any, to the Prospectus included therein.

               (c) The Company shall promptly take such action as may be
         necessary so that (i) any Shelf Registration Statement and any
         amendment thereto and any Prospectus forming part thereof and any
         amendment or supplement thereto (and each report or other document
         incorporated therein by reference in each case) complies in all
         material respects with the Securities Act and the Exchange Act, (ii)
         any Shelf Registration Statement and any amendment thereto does not,
         when it becomes effective, contain an untrue statement of a material
         fact or omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading and (iii) any
         Prospectus forming part of any Shelf Registration Statement, and any
         amendment or supplement to such Prospectus, does not include an untrue
         statement of a material fact or omit to state a material fact necessary
         in order to make the statements, in the light of the circumstances
         under which they were made, not misleading. In fulfilling its
         obligations under this Section 3(c), the Company may rely on the
         accuracy of any information provided to it by an Electing Holder with
         respect to that Electing Holder without any independent verification
         thereof.

                  (d) (1) The Company shall advise the Purchasers and, in the
         case of clause (i), the Electing Holders, and, if requested by the
         Purchasers or any such Electing Holder, confirm such advice in writing:

                      (i) when a Shelf Registration Statement and any amendment
               thereto has been filed with the Commission and when the Shelf
               Registration Statement or any post-effective amendment thereto
               has become effective; and

                      (ii) of any request by the Commission for amendments or
               supplements to the Shelf Registration Statement or the Prospectus
               included therein or for additional information.

                  (2) The Company shall advise the Purchasers and the Electing
         Holders and, if requested by the Purchasers or any such Electing
         Holder, confirm such advice in writing of:

                      (i) the issuance by the Commission of any stop order
               suspending effectiveness of the Shelf Registration Statement or
               the initiation of any proceedings for that purpose;

                      (ii) the receipt by the Company of any notification with
               respect to the suspension of the qualification of the securities
               included therein for sale in any jurisdiction or the initiation
               of any proceeding for such purpose; and

                      (iii) the happening of any event that requires the making
               of any changes in the Shelf Registration Statement or the
               Prospectus so that, as of such date, the Shelf Registration
               Statement and the Prospectus do not contain an untrue statement
               of a material fact and do not omit to state a material fact
               required to be stated therein or necessary to make the statements
               therein (in the case of the Prospectus, in light of the
               circumstances under which they were made) not misleading (which
               advice shall be accompanied by an instruction to suspend the use
               of the Prospectus until the requisite changes have been made).

                                      -6-
<PAGE>

               (e) The Company shall use its reasonable best efforts to prevent
         the issuance and, if issued, to obtain the withdrawal, of any order
         suspending the effectiveness of any Shelf Registration Statement at the
         earliest possible time.

               (f) The Company shall furnish to each Electing Holder included
         within the coverage of any Shelf Registration Statement, without
         charge, at least one copy of such Shelf Registration Statement and any
         post-effective amendment thereto, including financial statements and
         schedules, and, if the Electing Holder so requests in writing, all
         reports, other documents and exhibits that are filed with or
         incorporated by reference in the Shelf Registration Statement.

               (g) The Company shall, during the Effectiveness Period, deliver
         to each Electing Holder of Registrable Securities included within the
         coverage of any Shelf Registration Statement, without charge, as many
         copies of the Prospectus (including each preliminary Prospectus)
         included in such Shelf Registration Statement and any amendment or
         supplement thereto as such Electing Holder may reasonably request; and
         the Company consents (except during the continuance of any event
         described in Section 3(d)(2)(iii)) to the use of the Prospectus or any
         amendment or supplement thereto by each of the Electing Holders of
         Registrable Securities in connection with the offering and sale of the
         Registrable Securities covered by the Prospectus or any amendment or
         supplement thereto during the Effectiveness Period.

               (h) Prior to any offering of Registrable Securities pursuant to
         any Shelf Registration Statement, the Company shall register or qualify
         or cooperate with the Electing Holders of Registrable Securities
         included therein and their respective counsel in connection with the
         registration or qualification of such Registrable Securities for offer
         and sale under the securities or blue sky laws of such jurisdictions in
         the United States as any such Electing Holders reasonably request in
         writing and do any and all other acts or things necessary or advisable
         to enable the offer and sale in such jurisdictions of the Registrable
         Securities covered by such Shelf Registration Statement; provided,
         however, that in no event shall the Company be obligated to (i) qualify
         as a foreign corporation or as a dealer in securities in any
         jurisdiction where it would not otherwise be required to so qualify but
         for this Section 3(h), (ii) file any general consent to service of
         process in any jurisdiction where it is not as of the date hereof then
         so subject or (iii) subject itself to taxation in any such jurisdiction
         if it is not so subject.

                  (i) Unless any Registrable Securities shall be in book-entry
         only form, the Company shall cooperate with the Electing Holders of
         Registrable Securities to facilitate the timely preparation and
         delivery of certificates representing Registrable Securities to be sold
         pursuant to any Shelf Registration Statement free of any restrictive
         legends and in such permitted denominations and registered in such
         names as Electing Holders may request in connection with the sale of
         Registrable Securities pursuant to such Shelf Registration Statement.

               (j) Upon the occurrence of any event contemplated by paragraph
         3(d)(2)(iii) above, subject to the Company's ability to institute a
         Delay Period in accordance with Section 2(c), the Company shall
         promptly prepare a post-effective amendment to any Shelf Registration

                                      -7-
<PAGE>

         Statement or an amendment or supplement to the related Prospectus or
         file any other required document so that, as thereafter delivered to
         purchasers of the Registrable Securities included therein, the
         Prospectus will not include an untrue statement of a material fact or
         omit to state any material fact necessary to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading (except, in each case, for an untrue statement of a
         material fact or omission of a material fact made in reliance on and in
         conformity with written information furnished to the Company by or on
         behalf of Electing Holders specifically for use therein). If the
         Company notifies the Electing Holders of the occurrence of any event
         contemplated by paragraph 3(d)(2)(iii) above, the Electing Holders
         shall suspend the use of the Prospectus until the requisite changes to
         the Prospectus have been made and shall keep such notification
         confidential, unless disclosure of such notification is made in
         connection with a court proceeding or required by law, or information
         regarding such notification becomes available to the public generally
         or through a third party without an accompanying obligation of
         confidentiality.

               (k) Not later than the effective date of any Shelf Registration
         Statement hereunder, the Company shall provide a CUSIP number for the
         Securities registered under such Shelf Registration Statement.

               (l) The Company shall use its reasonable best efforts to comply
         with all applicable rules and regulations of the Commission, and to
         make generally available to its securityholders as soon as practicable,
         but in any event not later than eighteen months after (i) the effective
         date (as defined in Rule 158(c) under the Securities Act) of the Shelf
         Registration Statement, (ii) the effective date of each post-effective
         amendment to the Shelf Registration Statement, and (iii) the date of
         each filing by the Company with the Commission of an Annual Report on
         Form 10-K that is incorporated by reference in the Shelf Registration
         Statement, an earning statement of the Company and its subsidiaries
         complying with Section 11(a) of the Securities Act and the rules and
         regulations of the Commission thereunder (including, at the option of
         the Company, Rule 158).

               (m) Not later than the effective time of the Shelf Registration
         Statement, the Company shall cause the Indenture to be qualified under
         the Trust Indenture Act; in connection with such qualification, the
         Company shall cooperate with the Trustee under the Indenture to effect
         such changes to the Indenture as may be required for such Indenture to
         be so qualified in accordance with the terms of the Trust Indenture
         Act; and the Company shall execute, and shall use all reasonable
         efforts to cause the Trustee to execute, all documents that may be
         required to effect such changes and all other forms and documents
         required to be filed with the Commission to enable such Indenture to be
         so qualified in a timely manner. In the event that any such amendment
         or modification referred to in this Section 3(m) involves the
         appointment of a new trustee under the Indenture, the Company shall
         appoint a new trustee thereunder pursuant to the applicable provisions
         of the Indenture.

               (n) The Company may require each Electing Holder of Registrable
         Securities to be sold pursuant to any Shelf Registration Statement to
         furnish to the Company such information regarding the Electing Holder
         and the distribution of such Registrable Securities as may be required
         by applicable law or regulation for inclusion in such Shelf
         Registration Statement and the Company may exclude from such
         registration the Registrable Securities

                                      -8-
<PAGE>

         of any Electing Holder that fails to furnish such information within a
         reasonable time after receiving such request.

               (o) The Company shall, if requested, promptly include or
         incorporate in a Prospectus supplement or post-effective amendment to a
         Shelf Registration Statement, such information as the Managing
         Underwriters, if any, reasonably agree should be included therein and
         to which the Company does not reasonably object and shall make all
         required filings of such Prospectus supplement or post-effective
         amendment as soon as practicable after they are notified of the matters
         to be included or incorporated in such Prospectus supplement or
         post-effective amendment.

               (p) The Company shall enter into such customary agreements
         (including underwriting agreements in customary form) to take all other
         appropriate actions in order to expedite or facilitate the registration
         or the disposition of the Registrable Securities, and in connection
         therewith, if an underwriting agreement is entered into, cause the same
         to contain indemnification provisions and procedures substantially
         identical to those set forth in Section 5 with respect to all persons
         to be indemnified pursuant to Section 5.

               (q)  The Company shall:

                    (i) (A) make reasonably available for inspection by the
               Electing Holders of Registrable Securities to be registered
               thereunder, any underwriter participating in any disposition
               pursuant to such Shelf Registration Statement, and any attorney,
               accountant or other agent retained by such Electing Holders or
               any such underwriter all relevant financial and other records,
               pertinent corporate documents and properties of the Company and
               its subsidiaries; and (B) cause the Company's officers, directors
               and employees to make reasonably available for inspection all
               relevant information reasonably requested by such Electing
               Holders or any such underwriter, attorney, accountant or agent in
               connection with any such Shelf Registration Statement, in each
               case, as is customary for similar due diligence examinations;
               provided, however, that any information that is designated in
               writing by the Company, in good faith, as confidential at the
               time of delivery of such information shall be kept confidential
               by such Electing Holders or any such underwriter, attorney,
               accountant or agent, unless such disclosure is made in connection
               with a court proceeding or required by law, or such information
               becomes available to the public generally or through a third
               party without an accompanying obligation of confidentiality; and
               provided, further, that the foregoing inspection and information
               gathering shall, to the greatest extent possible, be coordinated
               on behalf of the Electing Holders and the other parties entitled
               thereto by one counsel designated by and on behalf of such
               Electing Holders and other parties reasonably acceptable to the
               Company;

                    (ii) in connection with any underwritten offering conducted
               pursuant to Section 6, make such representations and warranties
               to the Electing Holders of Registrable Securities registered
               thereunder and the underwriters, if any, in form, substance and
               scope as are customarily made by the Company to underwriters in
               primary underwritten offerings and covering matters including,
               but not limited to, those set forth in the Purchase Agreement;

                                      -9-
<PAGE>

                    (iii) in connection with any underwritten offering pursuant
               to Section 6, obtain opinions of counsel to the Company and
               updates thereof (which counsel and opinions (in form, scope and
               substance) shall be reasonably satisfactory to the Managing
               Underwriters, if any) in customary form addressed to each
               Electing Holder and the underwriters, if any, covering such
               matters as are customarily covered in opinions requested in
               underwritten offerings and such other matters as may be
               reasonably requested by such Electing Holders and underwriters
               (it being agreed that the matters to be covered by such opinion
               or written statement by such counsel delivered in connection with
               such opinions shall include in customary form, without
               limitation, as of the date of the opinion and as of the effective
               date of the Shelf Registration Statement or most recent
               post-effective amendment thereto, as the case may be, the absence
               from such Shelf Registration Statement and the prospectus
               included therein, as then amended or supplemented, including the
               documents incorporated by reference therein, of an untrue
               statement of a material fact or the omission to state therein a
               material fact required to be stated therein or necessary to make
               the statements therein not misleading);

                    (iv) in connection with any underwritten offering pursuant
               to Section 6, obtain "cold comfort" letters and updates thereof
               from the independent public accountants of the Company (and, if
               necessary, any other independent public accountants of any
               subsidiary of the Company who were previously engaged by the
               Company for which financial statements and financial data are, or
               are required to be, included in the Shelf Registration Statement;
               provided, however, that with regard to Arthur Andersen LLP, the
               Company may satisfy the requirements of this Section 3(q)(iv) by
               delivery of an Officer's Certificate substantially similar to the
               Officer's Certificate delivered to the Purchasers on February 24,
               2003 relating to financial information for fiscal periods during
               which the Company was audited by Arthur Andersen LLP), addressed
               to each such Electing Holder of Registrable Securities registered
               thereunder and the underwriters, if any, in customary form and
               covering matters of the type customarily covered in "cold
               comfort" letters in connection with primary underwritten
               offerings;

                    (v) in connection with any underwritten offering pursuant to
               Section 6, deliver such documents and certificates as may be
               reasonably requested by any such Electing Holders and the
               Managing Underwriters, if any, including those to evidence
               compliance with Section 3(i) and with any customary conditions
               contained in the underwriting agreement or other agreement
               entered into by the Company.

         The foregoing actions set forth in clauses (ii), (iii), (iv), and (v)
         of this Section 3(q) shall be performed at each closing under any
         underwritten offering to the extent required thereunder.

               (r) The Company will use its reasonable best efforts to cause the
         Stock issuable upon conversion thereof to be listed for quotation on
         the Nasdaq National Market System or other stock exchange or trading
         system on which the Stock primarily trades on or prior to the effective
         date of any Shelf Registration Statement hereunder.

               (s) In the event that any broker-dealer registered under the
         Exchange Act shall underwrite any Registrable Securities or participate
         as a member of an underwriting syndicate or selling group or "assist in
         the distribution" (within the meaning of the Conduct Rules and the
         By-Laws of the National Association of Securities Dealers, Inc.
         ("NASD"))

                                      -10-
<PAGE>

         thereof, whether as an Electing Holder of such Registrable Securities
         or as an underwriter, a placement or sales agent or a broker or dealer
         in respect thereof, or otherwise, assist such broker-dealer in
         complying with the requirements of such Rules and By-Laws by providing
         such information to such broker-dealer as may be required in order for
         such broker-dealer to comply with the requirements of the Conduct Rules
         of the NASD.

               (t) The Company shall use its reasonable best efforts to take all
         other steps necessary to effect the registration, offering and sale of
         the Registrable Securities covered by the Shelf Registration Statement
         contemplated hereby.

         4. REGISTRATION EXPENSES. Except as otherwise provided in Section 6,
the Company shall bear all fees and expenses incurred in connection with the
performance of its obligations under Sections 2, 3 and 6 hereof.

         5. INDEMNIFICATION AND CONTRIBUTION. (a) In connection with any Shelf
Registration Statement, the Company shall indemnify and hold harmless each
Electing Holder (including any Purchaser for whom Registrable Securities are
included on such Shelf Registration Statement), each underwriter who
participates in an offering of Registrable Securities, each person, if any, who
controls any of such persons within the meaning of either the Act or the
Exchange Act and each of their respective directors, officers, employees and
agents against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Act, the
Exchange Act or other Federal or state statutory law or regulation, at common
law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact contained in the Shelf
Registration Statement under which such Registrable Securities are to be
registered under the Securities Act (or in any supplement or amendment thereto),
or any Prospectus contained therein or furnished by the Company to any
indemnified person, or any amendment or supplement thereto, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, and agrees to reimburse each such
indemnified person, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company will not
be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any such untrue statement or alleged
untrue statement or omission or alleged omission made in such Shelf Registration
Statement or Prospectus, or in any amendment thereof or supplement thereto, in
reliance upon and in conformity with written information furnished to the
Company by or on behalf of any Electing Holder specifically for inclusion
therein; provided, further, that the Company shall not be liable to any
indemnified person under the indemnity agreement in this subsection (a) with
respect to any Shelf Registration Statement or Prospectus to the extent that any
such loss, claim, damage or liability of such indemnified person results from
the fact that such indemnified person sold Securities to a person as to whom it
shall be established that there was not sent or given, at or prior to the
written confirmation of such sale, a copy of the Shelf Registration Statement or
Prospectus in any case if the Company had previously furnished copies thereof in
sufficient quantity to such indemnified person and (b) to the extent the loss,
claim, damage or liability of such indemnified person results from an untrue
statement or omission of a material fact contained in the Shelf Registration
Statement or Prospectus which was subsequently corrected in the Shelf
Registration Statement or Prospectus, if (i) the Company had

                                      -11-
<PAGE>

previously furnished copies of such corrected Shelf Registration Statement or
Prospectus in sufficient quantity to such indemnified person and (ii) such loss,
claim, damage or liability would have been eliminated by the delivery of such
corrected Shelf Registration Statement or Prospectus. This indemnity agreement
will be in addition to any liability which the Company may otherwise have.

         (b) Each Electing Holder (including any Purchaser for whom Registrable
Securities are included on the applicable Shelf Registration Statement)
severally and not jointly agrees to indemnify and hold harmless the Company,
each underwriter who participates in an offering of Registrable Securities and
the other Electing Holders and each of their respective directors, officers, and
each person who controls any such person within the meaning of either the Act or
the Exchange Act, to the same extent as the foregoing indemnity from the Company
to each Electing Holder and each underwriter who participates in an offering or
Registrable Securities, but only with reference to written information relating
to such Electing Holder furnished to the Company by or on behalf of the Electing
Holder specifically for inclusion in the Shelf Registration Statement or
Prospectus (or in any amendment or supplement thereto). This indemnity agreement
will be in addition to any liability which any Electing Holder may otherwise
have.

         (c) Promptly after receipt by an indemnified person under this Section
5 of notice of the commencement of any action, such indemnified person will, if
a claim in respect thereof is to be made against the indemnifying person under
Section 5(a) or (b), notify the indemnifying person in writing of the
commencement thereof; but the failure so to notify the indemnifying person (i)
will not relieve it from liability under paragraph (a) or (b) above unless and
to the extent it did not otherwise learn of such action and such failure results
in the forfeiture by the indemnifying person of substantive rights and defenses;
and (ii) will not, in any event, relieve the indemnifying person from any
obligations to any indemnified person other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying person shall be
entitled to appoint counsel of the indemnifying person's choice at the
indemnifying person's expense to represent the indemnified person in any action
for which indemnification is sought (in which case the indemnifying person shall
not thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified person or persons except as set forth below);
provided, however, that such counsel shall be reasonably satisfactory to the
indemnified person. Notwithstanding the indemnifying person's election to
appoint counsel to represent the indemnified person in an action, the
indemnified person shall have the right to employ separate counsel (including
local counsel), and the indemnifying person shall bear the reasonable fees,
costs and expenses of such separate counsel if (i) a conflict or potential
conflict exists (based upon advice of counsel to the indemnified person) between
the indemnified person and the indemnifying person; (ii) the indemnified person
shall have reasonably concluded that there may be legal defenses available to it
and/or other indemnified persons which are different from or additional to those
available to the indemnifying person; (iii) the indemnifying person shall not
have employed counsel satisfactory to the indemnified person to represent the
indemnified person within a reasonable time after notice of the institution of
such action; or (iv) the indemnifying person shall authorize in writing the
indemnified person to employ separate counsel at the expense of the indemnifying
person. It is understood that the indemnifying person or persons shall not, in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the reasonable fees, disbursements and other charges of more than
one separate firm of attorneys (in addition to any local counsel) at any one
time for all such indemnified person or persons. Each indemnified person, as a
condition of the indemnity agreements contained in Sections 5(a) and 5(b), shall
use all reasonable efforts to cooperate with

                                      -12-
<PAGE>

the indemnifying person in the defense of any such action or claim. No
indemnifying person shall be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with its written consent or if there be a final
judgment for the plaintiff in any such action, the indemnifying person agrees to
indemnify and hold harmless any indemnified person from and against any loss or
liability by reason of such settlement or judgment. An indemnifying person will
not, without the prior written consent of the indemnified persons (which consent
shall not be unreasonably withheld), settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified persons are actual or potential
persons to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified person from all liability
arising out of such claim, action, suit or proceeding.

         (d) In the event that the indemnity provided in paragraph (a) or (b) of
this Section 5 is unavailable to or insufficient to hold harmless an indemnified
person for any reason, then each applicable indemnifying person severally shall
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively "Losses") to which such indemnified person may be
subject in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying person or persons on the one hand and the
indemnified person or persons on the other. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, then each
applicable indemnifying person severally shall contribute in such proportion as
is appropriate to reflect not only such relative benefits but also the relative
fault of such indemnifying person or persons on the one hand and such
indemnified person or persons on the other in connection with the statements or
omissions which resulted in such Losses, as well as any other relevant equitable
considerations. Benefits received by the Company shall be deemed to be equal to
the total net proceeds from the Initial Placement (before deducting expenses) of
the Registrable Securities to which such Losses relate and benefits received by
the Electing Holders shall be deemed to be equal to the value of receiving
Registrable Securities that are registered under the Act. Relative fault shall
be determined by reference to, among other things, whether any untrue or any
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information provided by the indemnifying
person or persons on the one hand or the indemnified person or persons on the
other, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission. The parties hereto agree that it would not be just and equitable if
contribution were determined by pro rata allocation or any other method of
allocation which does not take account of the equitable considerations referred
to above. Notwithstanding the provisions of this paragraph (d), no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 5(d), each person who
controls an Electing Holder (including any Purchaser for whom Registrable
Securities are included on the applicable Shelf Registration Statement) within
the meaning of either the Act or the Exchange Act and each director, officer,
employee and agent of an Electing Holder (including any Purchaser for whom
Registrable Securities are included on the applicable Shelf Registration
Statement) shall have the same rights to contribution as such Electing Holder
(including any Purchaser for whom Registrable Securities are included on the
applicable Shelf Registration Statement), and each person who controls the
Company within the meaning of either the Act or the Exchange Act and each
officer and director of

                                      -13-
<PAGE>

the Company shall have the same rights to contribution as the Company, subject
in each case to the applicable terms and conditions of this paragraph (d).

         (e) Notwithstanding any other provision of this Section 5, in no event
will any (i) Electing Holder be required to undertake liability to any person
under this Section 5 for any amounts in excess of the dollar amount of the
proceeds to be received by such Holder from the sale of such Holder's
Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) pursuant to any Shelf Registration Statement under which
such Registrable Securities are to be registered under the Securities Act and
(ii) underwriter, selling agent or other securities professional be required to
undertake liability to any person hereunder for any amounts in excess of the
discount, commission or other compensation payable to such underwriter, selling
agent or other securities professional with respect to the Registrable
Securities underwritten by it and distributed to the public.

         (f) The obligations of an indemnifying person under this Section 5
shall be in addition to any liability which such indemnifying person may
otherwise have and shall extend, or not extend, as the case may be, to any
indemnified person. The remedies provided in this Section 5 are not exclusive
and shall not limit any rights or remedies which may otherwise be available to
an indemnified person at law or in equity.

         6. UNDERWRITTEN OFFERING. The Electing Holders of Registrable
Securities covered by the Shelf Registration Statement who desire to do so may
sell such Registrable Securities in an underwritten offering in accordance with
the conditions set forth below. In any such underwritten offering, the
investment banker or bankers and manager or managers that will administer the
offering will be selected by, and the underwriting arrangements with respect
thereto will be approved by, the Electing Holders of a majority of the
Registrable Securities to be included in such offering. No Electing Holder may
participate in any underwritten offering contemplated hereby unless such
Electing Holder (a) agrees to sell such Electing Holder's Registrable Securities
in accordance with any approved underwriting arrangements, (b) completes and
executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents required under the
terms of such approved underwriting arrangements and (c) at least 25% of the
outstanding Registrable Securities are included in such underwritten offering.
The Electing Holders participating in any underwritten offering shall be
responsible for any expenses customarily borne by selling securityholders,
including underwriting discounts and commissions and fees and expenses of
counsel to the selling securityholders and shall reimburse the Company for the
fees and disbursements of their counsel, their independent public accountants
and any printing expenses incurred in connection with such underwritten
offerings. Notwithstanding the foregoing or the provisions of Section 3(o)
hereof, upon receipt of a request from the Managing Underwriter or a
representative of Electing Holders of a majority of the Registrable Securities
outstanding to prepare and file an amendment or supplement to the Shelf
Registration Statement and Prospectus in connection with an underwritten
offering, the Company may delay the filing of any such amendment or supplement
for up to 60 days if the Company in good faith has a valid business reason for
such delay.

                                      -14-
<PAGE>

         7.    MISCELLANEOUS.

         (a) Other Registration Rights. From the date of this Agreement, the
Company may grant registration rights that would permit any Person that is a
third party the right to piggy-back on any Shelf Registration Statement,
provided that if the Managing Underwriter, if any, of such offering delivers an
opinion to the Electing Holders that the total amount of securities which they
and the Holders of such piggy-back rights intend to include in any Shelf
Registration Statement is so large as to materially adversely affect the success
of such offering (including the price at which such securities can be sold),
then the amount, the number or kind of securities to be offered for the account
of Holders of such piggy-back rights granted after the date of this agreement
will be reduced to the extent necessary to reduce the total amount of securities
to be included in such offering to the amount, number or kind recommended by the
Managing Underwriter prior to any reduction in the amount of Registrable
Securities to be included.

         (b) Amendments and Waivers. This Agreement, including this Section
7(b), may be amended, and waivers or consents to departures from the provisions
hereof may be given, only by a written instrument duly executed by the Company,
the Purchasers and the Holders of a majority in aggregate principal amount of
Registrable Securities then outstanding. Each Holder of Registrable Securities
outstanding at the time of any such amendment, waiver or consent or thereafter
shall be bound by any amendment, waiver or consent effected pursuant to this
Section 7(b), whether or not any notice, writing or marking indicating such
amendment, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

         (c) Notices. All notices and other communications provided for or
permitted hereunder shall be given as provided in the Indenture.

         (d) Parties in Interest. The parties to this Agreement intend that all
Holders of Registrable Securities shall be entitled to receive the benefits of
this Agreement and that any Electing Holder shall be bound by the terms and
provisions of this Agreement by reason of such election with respect to the
Registrable Securities which are included in a Shelf Registration Statement. All
the terms and provisions of this Agreement shall be binding upon, shall inure to
the benefit of and shall be enforceable by the respective successors and assigns
of the parties hereto and any Holder from time to time of the Registrable
Securities to the aforesaid extent. In the event that any transferee of any
Holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be entitled
to receive the benefits of and, if an Electing Holder, be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of
this Agreement to the aforesaid extent.

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

         (f) Headings. The headings in this agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                                      -15-
<PAGE>

         (g) Governing Law. This agreement shall be governed by and construed in
accordance with the laws of the State of New York without reference to
principles of conflicts of law.

         (h) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

         (i) Survival. The respective indemnities, agreements, representations,
warranties and other provisions set forth in this Agreement or made pursuant
hereto shall remain in full force and effect, regardless of any investigation
(or any statement as to the results thereof) made by or on behalf of any
Electing Holder, any director, officer or partner of such Holder, any agent or
underwriter, any director, officer or partner of such agent or underwriter, or
any controlling person of any of the foregoing, and shall survive the transfer
and registration of the Registrable Securities of such Holder.

                                      -16-
<PAGE>

         Please confirm that the foregoing correctly sets forth the agreement
between the Company and you.

                                       Very truly yours,

                                       HUTCHINSON TECHNOLOGY
                                       INCORPORATED

                                       By   /s/ Ruth N. Bauer
                                         ------------------------
                                         Name: Ruth N. Bauer
                                         Title: Treasurer

The foregoing Registration Rights Agreement is hereby confirmed and accepted as
of the date first above written:

Salomon Smith Barney Inc.
Needham & Company, Inc.

By:     /s/ Randy Moe
       (Salomon Smith Barney Inc.)

<PAGE>

                                                                       Exhibit A

                       HUTCHINSON TECHNOLOGY INCORPORATED

                         INSTRUCTION TO DTC PARTICIPANTS

                                (Date of Mailing)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                          DEADLINE FOR RESPONSE: [DATE]

         The Depository Trust Company ("DTC") has identified you as a DTC
Participant through which beneficial interests in the Hutchinson Technology
Incorporated (the "Company") 2.25% Convertible Subordinated Notes due 2010 (the
"Securities") are held.

         The Company is in the process of registering the Securities under the
Securities Act of 1933, as amended, for resale by the beneficial owners thereof.
In order to have their Securities included in the registration statement,
beneficial owners must complete and return the enclosed Selling Securityholder
Notice and Questionnaire.

         It is important that beneficial owners of the Securities receive a copy
of the enclosed materials as soon as possible as their rights to have the
Securities included in the registration statement depend upon their returning
the Notice and Questionnaire by [DEADLINE FOR RESPONSE]. Please forward a copy
of the enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact [Name, address and
telephone number of contact at the Company).

                                      A-1

<PAGE>

             FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

         The undersigned beneficial holder of 2.25% Convertible Subordinated
Notes due 2010 (the "Securities") of Hutchinson Technology Incorporated (the
"Company") or shares of common stock issuable upon conversion of the Securities
(together with the Securities, the "Restricted Securities") understands that the
Company has filed or intends to file with the Securities and Exchange Commission
(the "Commission") a registration statement on Form S-3 (the "Shelf Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Restricted Securities in
accordance with the terms of the Registration Rights Agreement (the
"Registration Rights Agreement") dated as of February 24, 2003 between the
Company and the Purchasers named therein. The Registration Rights Agreement is
available from the Company upon request at the address set forth below. All
capitalized terms not otherwise defined herein shall have the meaning ascribed
thereto in the Registration Rights Agreement.

         In order to sell or otherwise dispose of any Restricted Securities
pursuant to the Shelf Registration Statement, a beneficial owner of Restricted
Securities generally will be required to be named as a selling securityholder in
the related Prospectus, deliver a Prospectus to purchasers of Restricted
Securities and be bound by those provisions of the Registration Rights Agreement
applicable to such beneficial owner (including certain indemnification
provisions as described below). Beneficial owners are encouraged to complete and
deliver this Notice and Questionnaire prior to the effectiveness of the Shelf
Registration Statement so that such beneficial owners may be named as selling
securityholders in the related Prospectus at the time of effectiveness.

         Certain legal consequences may arise from being named as selling
securityholders in the Shelf Registration Statement and the related Prospectus.
Accordingly, holders and beneficial owners of Restricted Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Shelf Registration
Statement and the related Prospectus.

NOTICE

         The undersigned beneficial owner (the "Selling Securityholder") of
Restricted Securities hereby gives notice to the Company of its intention to
sell or otherwise dispose of Restricted Securities beneficially owned by it and
listed below in Item 3 (unless otherwise specified under Item 3) pursuant to the
Shelf Registration Statement. The undersigned, by signing and returning this
Notice and Questionnaire, understands that it will be bound by the terms and
conditions of this Notice and Questionnaire and the Registration Rights
Agreement.

         The undersigned hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:

                                      A-2
<PAGE>

QUESTIONNAIRE

1.       (a)      Full Legal Name of Selling Securityholder:

                  --------------------------------------------------------------

         (b)      Full Legal Name of Registered Holder (if not the same as Item
                  1(a) above) through which Restricted Securities listed in Item
                  3 below are held (if the Restricted Securities are held
                  through a broker-dealer or other third party and, as a result,
                  you do not know the legal name of the registered holder,
                  please complete Item 1(c) below):

                  --------------------------------------------------------------

         (c)      Full legal name of broker-dealer or other third party through
                  which Restricted Securities listed in Item 3 below are held:

                  --------------------------------------------------------------

         (d)      Full Legal Name of DTC Participant (if applicable and if not
                  the same as Item 1(b) or (c) above) through which Restricted
                  Securities listed in Item 3 below are held:

                  --------------------------------------------------------------

2.       Address for Notices to Selling Securityholder:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Telephone:
                   -------------------------------------------------------------

         Fax:
             -------------------------------------------------------------------

         Contact Person:
                        --------------------------------------------------------

3.       Beneficial Ownership of Restricted Securities:

         (a)      Type and Principal Amount (or number of shares) of Restricted
                  Securities beneficially owned:

                  --------------------------------------------------------------

         (b)      CUSIP No(s). of such Restricted Securities beneficially owned:

                  --------------------------------------------------------------

                                      A-3
<PAGE>

Unless otherwise indicated in the space provided below, all Securities and all
shares of common stock listed in response to Item 3(a) above, and all shares of
common stock issuable upon conversion of the Securities listed in response to
Item 3(a) above, will be included in the Shelf Registration Statement. If the
undersigned does not wish all such Securities or shares of common stock to be so
included, please indicate below the principal amount or the number of shares to
be included:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

4.       Beneficial Ownership of other securities of the Company owned by the
         Selling Securityholder:

         Except as set forth below in this Item 4, the undersigned is not the
         beneficial or registered owner of any securities of the Company other
         than the Restricted Securities listed above in Item 3.

         (a)      Type and Amount of other securities of the Company
                  beneficially owned by the Selling Securityholder:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         (b)      CUSIP No(s). of such other securities of the Company
                  beneficially owned:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

5.       Relationship with the Company:

         Except as set forth below, neither the undersigned nor any of its
         affiliates, directors or principal equity holders (5% or more) has held
         any position or office or has had any other material relationship with
         the Company (or its predecessor or affiliates) during the past three
         years.

         State any exceptions here:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

6.       Plan of Distribution

                                      A-4
<PAGE>

         Except as set forth below, the undersigned (including its donees or
         pledgees) intends to distribute the Restricted Securities listed above
         in Item 3 pursuant to the Shelf Registration Statement only as follows
         (if at all): Such Restricted Securities may be sold from time to time
         directly by the undersigned or alternatively through underwriters or
         broker-dealers or agents. If the Restricted Securities are sold through
         underwriters or broker-dealers, the Selling Securityholder will be
         responsible for underwriting discounts or commissions or agent's
         commissions. Such Restricted Securities may be sold in one or more
         transactions at fixed prices, at prevailing market prices at the time
         of sale, at varying prices determined at the time of sale, or at
         negotiated prices. Such sales may be effected in transactions (which
         may involve block transactions) (i) on any national securities exchange
         or quotation service on which the Restricted Securities may be listed
         or quoted at the time of sale, (ii) in the over-the-counter market,
         (iii) in transactions otherwise than on such exchanges or services or
         in the over-the-counter market, or (iv) through the writing of options.
         In connection with sales of the Restricted Securities or otherwise, the
         undersigned may enter into hedging transactions with broker-dealers,
         which may in turn engage in short sales of the Restricted Securities,
         short and deliver Restricted Securities to close out such short
         positions, or loan or pledge Restricted Securities to broker-dealers
         that in turn may sell such securities. The Selling Securityholder may
         pledge or grant a security interest in some or all of the Restricted
         Securities owned by it and, if it defaults in the performance of its
         secured obligations, the pledgees or secured parties may offer and sell
         the Restricted Securities from time to time pursuant to the Prospectus.
         The Selling Securityholder also may transfer and donate shares in other
         circumstances in which case the transferees, donees, pledgees or other
         successors in interest will be the selling securityholder for purposes
         of the Prospectus.

         State any exceptions here:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Note:    In no event may such method(s) of distribution take the form
                  of an underwritten offering of the Restricted Securities
                  without the prior agreement of the Company.

         The undersigned acknowledges that it understands its obligation to
comply with the provisions of the Securities Exchange Act of 1934, as amended,
and the rules thereunder relating to stock manipulation, particularly Regulation
M thereunder (or any successor rules or regulations) and the provisions of the
Securities Act relating to Prospectus delivery, in connection with any offering
of Restricted Securities pursuant to the Shelf Registration Statement. The
undersigned agrees that neither it nor any person acting on its behalf will
engage in any transaction in violation of such provisions.

         The Selling Securityholder hereby acknowledges its obligations under
the Registration Rights Agreement to indemnify and hold harmless certain persons
set forth therein.

                                      A-5
<PAGE>

         Pursuant to the Registration Rights Agreement, the Company has agreed
under certain circumstances to indemnify the Selling Securityholders against
certain liabilities.

         In accordance with the undersigned's obligation under the Registration
Rights Agreement to provide such information as may be required by law for
inclusion in the Shelf Registration Statement, the undersigned agrees to
promptly notify the Company of any inaccuracies or changes in the information
provided herein that may occur subsequent to the date hereof at any time while
the Shelf Registration Statement remains effective. All notices hereunder and
pursuant to the Registration Rights Agreement shall be made in writing at the
address set forth below.

         By signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and the
related Prospectus. The undersigned understands that such information will be
relied upon by the Company in connection with the preparation, amendment or
supplement of the Shelf Registration Statement and the related Prospectus.

         By signing below, the undersigned agrees that if the Company notifies
the undersigned of the happening of an event that requires the making of any
change in the Shelf Registration Statement or the Prospectus so that neither the
Shelf Registration Statement nor the Prospectus contains an untrue statement of
a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein (in the case of the Prospectus, in
light of the circumstances under which they were made) not misleading, (i) the
undersigned will suspend the use of the Prospectus until the requisite change to
the Prospectus has been made, and (ii) that any such notification will be deemed
confidential and will be maintained in confidence, unless disclosure of such
notification is made in connection with a court proceeding or required by law,
or information regarding such notification becomes available to the public
generally or through a third party without an accompanying obligation of
confidentiality.

         IN WITNESS WHEREOF, the undersigned, by authority duly given, has
caused this Notice and Questionnaire to be executed and delivered either in
person or by its duly authorized agent.

                                               Beneficial Owner

                                               By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

Dated:

                                      A-6
<PAGE>

                 PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE
                        AND QUESTIONNAIRE TO THE COMPANY:

                       HUTCHINSON TECHNOLOGY INCORPORATED
                        40 WEST HIGHLAND PARK DRIVE N.E.
                        HUTCHINSON, MINNESOTA 55350-9784
                            FACSIMILE: (320) 587-1645
                           ATTENTION: JOHN A. INGLEMAN

                                 WITH A COPY TO:

                               FAEGRE & BENSON LLP
                             2200 WELLS FARGO CENTER
                             90 SOUTH SEVENTH STREET
                        MINNEAPOLIS, MINNESOTA 55402-3901
                            FACSIMILE: (612) 766-1600
                          ATTENTION: PEGGY STEIF ABRAM

                                      A-7

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