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  TABLE OF CONTENTS

MEDTRONIC, INC.

1.25%
Contingent Convertible Debentures due 2021 

INDENTURE 

Dated
as of September 11, 2001 

WELLS
FARGO BANK MINNESOTA, NATIONAL ASSOCIATION 

TRUSTEE

  

 

TABLE OF CONTENTS    
  

 

	 
	 	 
	 	 

	ARTICLE ONE DEFINITIONS AND INCORPORATION BY REFERENCE
	

 	
 	

Section 1.1	
 	

Definitions
	 	 	Section 1.2	 	Other Definitions
	 	 	Section 1.3	 	Incorporation by Reference of Trust Indenture Act
	 	 	Section 1.4	 	Rules of Construction
	 	 	Section 1.5	 	Acts of Holders
	

ARTICLE TWO THE SECURITIES
	

 	
 	

Section 2.1	
 	

Form and Dating
	 	 	Section 2.2	 	Execution and Authentication
	 	 	Section 2.3	 	Registrar, Paying Agent, Conversion Agent and Calculation Agent
	 	 	Section 2.4	 	Paying Agent to Hold Money and Securities in Trust
	 	 	Section 2.5	 	Securityholder Lists
	 	 	Section 2.6	 	Transfer and Exchange
	 	 	Section 2.7	 	Replacement Securities
	 	 	Section 2.8	 	Outstanding Securities; Determinations of Holders' Action
	 	 	Section 2.9	 	Temporary Securities
	 	 	Section 2.10	 	Cancellation
	 	 	Section 2.11	 	Persons Deemed Owners
	 	 	Section 2.12	 	Global Securities
	 	 	Section 2.13	 	CUSIP Numbers
	 	 	Section 2.14	 	Ranking
	

ARTICLE THREE REDEMPTION AND PURCHASES
	

 	
 	

Section 3.1	
 	

Company's Right to Redeem; Notices to Trustee
	 	 	Section 3.2	 	Selection of Securities to Be Redeemed
	 	 	Section 3.3	 	Notice of Redemption
	 	 	Section 3.4	 	Effect of Notice of Redemption
	 	 	Section 3.5	 	Deposit of Redemption Price
	 	 	Section 3.6	 	Securities Redeemed in Part
	 	 	Section 3.7	 	Purchase of Securities by the Company at Option of the Holder
	 	 	Section 3.8	 	Purchase of Securities at Option of the Holder upon Change of Control
	 	 	Section 3.9	 	Company's Right to Elect Manner of Payment of Purchase Price and Change of Control Purchase Price for Payment
	 	 	Section 3.10	 	Effect of Purchase Notice or Change of Control Purchase Notice
	 	 	Section 3.11	 	Deposit of Purchase Price or Change of Control Purchase Price
	 	 	Section 3.12	 	Securities Purchased in Part
	 	 	Section 3.13	 	Covenant to Comply With Securities Laws Upon Purchase of Securities
	 	 	Section 3.14	 	Repayment to the Company
	

ARTICLE FOUR COVENANTS
	

 	
 	

Section 4.1	
 	

Payment of Securities
	 	 	Section 4.2	 	SEC and Other Reports
	 	 	Section 4.3	 	Compliance Certificate
	 	 	Section 4.4	 	Further Instruments and Acts
	 	 	Section 4.5	 	Maintenance of Office or Agency
	 	 	Section 4.6	 	Delivery of Certain Information
	 	 	Section 4.7	 	Tax Treatment of Securities
	

ARTICLE FIVE SUCCESSOR CORPORATION
	

 	
 	

Section 5.1	
 	

When Company May Merge or Transfer Assets

i

 

	

ARTICLE SIX DEFAULTS AND REMEDIES
	

 	
 	

Section 6.1	
 	

Events of Default
	 	 	Section 6.2	 	Acceleration
	 	 	Section 6.3	 	Other Remedies
	 	 	Section 6.4	 	Waiver of Past Defaults
	 	 	Section 6.5	 	Control by Majority
	 	 	Section 6.6	 	Limitation on Suits
	 	 	Section 6.7	 	Rights of Holders to Receive Payment
	 	 	Section 6.8	 	Collection Suit by Trustee
	 	 	Section 6.9	 	Trustee May File Proofs of Claim
	 	 	Section 6.10	 	Priorities
	 	 	Section 6.11	 	Undertaking for Costs
	 	 	Section 6.12	 	Waiver of Stay, Extension or Usury Laws
	

ARTICLE SEVEN TRUSTEE
	

 	
 	

Section 7.1	
 	

Duties of Trustee
	 	 	Section 7.2	 	Rights of Trustee
	 	 	Section 7.3	 	Individual Rights of Trustee
	 	 	Section 7.4	 	Trustee's Disclaimer
	 	 	Section 7.5	 	Notice of Defaults
	 	 	Section 7.6	 	Reports by Trustee to Holders
	 	 	Section 7.7	 	Compensation and Indemnity
	 	 	Section 7.8	 	Replacement of Trustee
	 	 	Section 7.9	 	Successor Trustee by Merger
	 	 	Section 7.10	 	Eligibility; Disqualification
	 	 	Section 7.11	 	Preferential Collection of Claims Against Company
	

ARTICLE EIGHT DISCHARGE OF INDENTURE
	

 	
 	

Section 8.1	
 	

Discharge of Liability on Securities
	 	 	Section 8.2	 	Repayment to the Company
	

ARTICLE NINE AMENDMENTS
	

 	
 	

Section 9.1	
 	

Without Consent of Holders
	 	 	Section 9.2	 	With Consent of Holders
	 	 	Section 9.3	 	Compliance with Trust Indenture Act
	 	 	Section 9.4	 	Revocation and Effect of Consents, Waivers and Actions
	 	 	Section 9.5	 	Notation on or Exchange of Securities
	 	 	Section 9.6	 	Trustee to Sign Supplemental Indentures
	 	 	Section 9.7	 	Effect of Supplemental Indentures
	

ARTICLE TEN CONVERSIONS
	

 	
 	

Section 10.1	
 	

Conversion Privilege
	 	 	Section 10.2	 	Conversion Procedure; Conversion Price; Fractional Shares.
	 	 	Section 10.3	 	Adjustment of Conversion Price for Common Stock.
	 	 	Section 10.4	 	Consolidation or Merger of the Company.
	 	 	Section 10.5	 	Notice of Adjustment.
	 	 	Section 10.6	 	Notice in Certain Events.
	 	 	Section 10.7	 	Company To Reserve Stock: Registration; Listing.
	 	 	Section 10.8	 	Taxes on Conversion.
	 	 	Section 10.9	 	Conversion After Record Date.
	 	 	Section 10.10	 	Company Determination Final.
	 	 	Section 10.11	 	Responsibility of Trustee for Conversion Provisions.
	 	 	Section 10.12	 	Unconditional Right of Holders to Convert.

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ARTICLE ELEVEN MISCELLANEOUS
	

 	
 	

Section 11.1	
 	

Trust Indenture Act Controls
	 	 	Section 11.2	 	Notices
	 	 	Section 11.3	 	Communication by Holders with Other Holders
	 	 	Section 11.4	 	Certificate and Opinion as to Conditions Precedent
	 	 	Section 11.5	 	Statements Required in Certificate or Opinion
	 	 	Section 11.6	 	Separability Clause
	 	 	Section 11.7	 	Rules by Trustee, Paying Agent, Conversion Agent and Registrar
	 	 	Section 11.8	 	Legal Holidays
	 	 	Section 11.9	 	GOVERNING LAW
	 	 	Section 11.10	 	No Recourse Against Others
	 	 	Section 11.11	 	Successors
	 	 	Section 11.12	 	Multiple Originals
	

EXHIBIT A	
 	

Form of Global Security
	

EXHIBIT B	
 	

Form of Certificated Security
	

EXHIBIT C	
 	

Transfer Certificate

iii

  

    INDENTURE
dated as of September 11, 2001 between MEDTRONIC, INC., a Minnesota corporation ("Company"), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION ("Trustee"). 

    Each
party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company's 1.25% Contingent Convertible Debentures due 2021: 

 
 

ARTICLE ONE    
    
    DEFINITIONS AND INCORPORATION BY REFERENCE    
  

 
 

      Section 1.1  Definitions.   

    "144A
Global Security" means a permanent Global Security in the form of the Security attached hereto as Exhibit A, and that is deposited with and registered in the name of the
Depositary, representing Securities sold in reliance on Rule 144A under the Securities Act. 

    "Additional
interest" means all amounts payable on the Securities as liquidated damages pursuant to Section 2(e) of the Registration Rights Agreement. 

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

    "Applicable
Procedures" means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the rules and procedures of the Depositary for
such Security, in each case to the extent applicable to such transaction and as in effect from time to time. 

    "Board
of Directors" means either the board of directors of the Company or any duly authorized committee of such board. 

    "Board
Resolution" means a resolution of the Board of Directors. 

    "Business
Day" means, with respect to any Security, a day that in the City of New York is not a day on which banking institutions are authorized by law or regulation to close. 

    "Capital
Stock" for any corporation means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however
designated) stock issued by that corporation. 

    "Certificated
Securities" means Securities that are in the form of the Securities attached hereto as Exhibit B. 

    "Common
Stock" shall mean the Common Stock, $0.10 par value per share, of the Company existing on the date of this Indenture or any other shares of Capital Stock of the Company into
which such Common Stock shall be reclassified or changed. 

    "Company"
means the party named as the "Company" in the first Section of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 

    "Company
Request" or "Company Order" means a written request or order signed in the name of the Company by any two Officers. 

1

 

    "Conversion Price" means initially $61.81, subject to adjustment as set forth herein. 

    "Corporate
Trust Office" means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located
at Sixth and Marquette, MAC N9303-110, Minneapolis, MN 55479, Attention: Michael Lechner, or such other address as the Trustee may designate from time to time by notice to the Holders and
the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company). 

    "Default"
means any event which is, or after notice or passage of time or both would be, an Event of Default. 

    "Global
Securities" means Securities that are in the form of the Securities attached hereto as Exhibit A, and that are registered in the register of Securities in the name of a
Depositary or a nominee thereof, and to the extent that such Securities are required to bear the Legend required by Section 2.6, such Securities will be in the form of a 144A Global Security. 

    "Holder"
or "Securityholder" means a person in whose name a Security is registered on the Registrar's books. 

    "Indenture"
means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof, including the provisions of the TIA that are deemed to be a part
hereof. 

    "Issue
Date" of any Security means the date on which the Security was originally issued or deemed issued as set forth on the face of the Security. 

    "NYSE"
means The New York Stock Exchange, Inc. 

    "Officer"
means the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the President, any Executive Vice President, any Senior Vice President, the Treasurer, the
Controller, or the Secretary or any Assistant Treasurer or Assistant Secretary of the Company. 

    "Officers'
Certificate" means a written certificate containing the information specified in Sections 11.4 and 11.5, signed in the name of the Company by any two Officers, and
delivered to the Trustee. An Officers' Certificate given pursuant to Section 4.3 shall be signed by an authorized financial or
accounting Officer of the Company but need not contain the information specified in Sections 11.4 and 11.5. 

    "Opinion
of Counsel" means a written opinion containing the information specified in Sections 11.4 and 11.5, from legal counsel who is reasonably acceptable to the Trustee. The
counsel may be an employee of, or counsel to, the Company or the Trustee. 

    "Person"
means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government
or any agency or political subdivision thereof. 

    "Redemption
Date" or "redemption date" shall mean the date specified in a notice of redemption on which the Securities may be redeemed in accordance with the terms of the Securities
and this Indenture. 

    "Redemption
Price" or "redemption price" shall have the meaning set forth in Section 5 of the Securities. 

    "Registration
Rights Agreement" means the Resale Registration Rights Agreement, dated as of the date hereof, among the Company, Goldman, Sachs & Co., Banc of America Securities
LLC and Morgan Stanley & Co. Incorporated. 

2

 

    "Responsible Officer" shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person's knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture. 

    "Restricted
Security" means a Security required to bear the restrictive legend set forth in the form of Security set forth in Exhibits A and B of this Indenture. 

    "Rule 144A"
means Rule 144A under the Securities Act (or any successor provision), as it may be amended from time to time. 

    "SEC"
means the Securities and Exchange Commission. 

    "Securities"
means any of the Company's 1.25% Contingent Convertible Debentures due 2021, as amended or supplemented from time to time, issued under this Indenture. 

    "Securityholder"
or "Holder" means a person in whose name a Security is registered on the Registrar's books. 

    "Stated
Maturity", when used with respect to any Security, means September 15, 2021. 

    "Subsidiary"
means any Person of which at least a majority of the outstanding Voting Stock shall at the time directly or indirectly be owned or controlled by the Company or by one or
more Subsidiaries or by the Company and one or more Subsidiaries. 

    "TIA"
means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, provided, however, that in the event the TIA is amended after such date, TIA means, to the
extent required by any such amendment, the TIA as so amended. 

    "Trading
Day" means a day during which trading in securities generally occurs on the NYSE or, if the Common Stock is not listed on the NYSE, on the principal other national or
regional securities exchange on which the Common Stock then is listed or, if the Common Stock is not listed on a national or regional securities exchange, on the National Association of Securities
Dealers Automated Quotation System or, if the Common Stock is not quoted on the National Association of Securities Dealers Automated Quotation System, on the principal other market on which the Common
Stock is then traded. 

    "Trustee"
means the party named as the "Trustee" in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and,
thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent such successor or successors. 

    "Voting
Stock" of a person means Capital Stock of such person of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances
to elect at least
a majority of the board of directors, managers or trustees of such person (irrespective of whether or not at the time Capital Stock of any other class or classes shall have or might have voting power
by reason of the happening of any contingency). 

3

 

 
 

      Section 1.2  Other Definitions   

	Term Section:	 	Defined in:
	

"Agent Members"	
 	

2.12(e)
	"Applicable Stock	 	3.8(c)
	"beneficial owner"	 	3.8(a)
	"cash"	 	3.9(a)
	"Change of Control"	 	3.8(a)
	"Change of Control Purchase Date"	 	3.8(a)
	"Change of Control Purchase Notice"	 	3.8(c)
	"Change of Control Purchase Price"	 	3.8(a)
	"Company Notice"	 	3.9(d)
	"Company Notice Date"	 	3.9(b)
	"Continuing Director"	 	3.8(a)
	"Conversion Agent"	 	2.3
	"Conversion Rate"	 	10.1(b)
	"Conversion Value"	 	10.1(b)
	"Depositary"	 	2.1(a)
	"Designated Subsidiary"	 	6.1
	"Event of Default"	 	6.1
	"Ex-Dividend Time"	 	10.1(b)
	"Excess Amount"	 	10.3(f)
	"Exchange Act"	 	2.12(e)
	"Expiration Time"	 	10.3(f)
	"Institutional Accredited Investors"	 	2.12(a)(iv)
	"Legal Holiday"	 	11.8
	"Legend"	 	2.6(f)
	"Market Price"	 	3.9(c)
	"Non-Electing Share"	 	10.4
	"Notice of Default"	 	6.1
	"Paying Agent"	 	2.3
	"Protected Purchaser"	 	2.7
	"Purchase Date"	 	3.7(a)
	"Purchase Notice"	 	3.7(a)
	"Purchase Price"	 	3.7(a)
	"QIB"	 	2.1(a)
	"Reference Period"	 	10.3(d)(2)
	"Registrar"	 	2.3
	"Rule 144A Information"	 	4.6
	"Sale Price"	 	3.9(c)
	"Securities Act"	 	2.6(f)
	"Spin-Off"	 	10.3(d)(2)
	"Trading Price"	 	10.1(b)
	"Trigger Event"	 	10.3(d)(3)

 
 

       Section 1.3  Incorporation by Reference of Trust Indenture Act.   Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following TIA
terms used in this Indenture have the following meanings: 

    "indenture
securities" means the Securities. 

    "indenture
security holder" means a Securityholder. 

    "indenture
to be qualified" means this Indenture. 

    "indenture
trustee" or "institutional trustee" means the Trustee. 

    "obligor"
on the indenture securities means the Company. 

4

  

    All
other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions. 

 
 

      Section 1.4  Rules of Construction.   Unless the context otherwise requires: 

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

    (2) an
accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect from time to time; 

    (3) "or"
is not exclusive; 

    (4) "including"
means including, without limitation; and 

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

 
 

       Section 1.5  Acts of Holders.   (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Holders
may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company, as described in
Section 11.2. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the "Act" of Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section. 

    (b) The
fact and date of the execution by any person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate
of a notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to such officer the execution thereof. Where such execution is by a
signer acting in a capacity other than such signer's individual capacity, such certificate or affidavit shall also constitute sufficient proof of such signer's authority. The fact and date of the
execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 

    (c) The
principal amount and serial number of any Security and the ownership of Securities shall be proved by the register for the Securities. 

    (d) Any
request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same
Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 

    (e) If
the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option,
by or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or
after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite
proportion of outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the
outstanding Securities shall be computed as of such 

5

 

record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this
Indenture not later than six months after the record date. 

 
 

ARTICLE TWO    
    
    THE SECURITIES    
  

 
 

      Section 2.1  Form and Dating   The Securities and the Trustee's certificate of authentication shall be substantially in the form of Exhibits A and B,
 which are a part of this Indenture. The
Securities may have notations, legends or endorsements required by law, stock exchange rule or usage (provided that any such notation, legend or endorsement required by usage is in a form acceptable
to the Company). The Company shall provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. 

    (a)  144A Global Securities.  Securities offered and sold to qualified institutional buyers as defined in
Rule 144A ("QIBs") in reliance on Rule 144A shall be issued, initially in the form of one or more 144A Global Securities, which shall be deposited with the Trustee at its Corporate Trust
Office, as custodian for the Depositary (as defined below) and registered in the name of The Depository Trust Company ("DTC") or the nominee thereof (DTC, or any successor thereto, and any such
nominee being hereinafter referred to as the "Depositary"), duly executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the 144A Global
Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary as hereinafter provided. 

    (b)  Global Securities in General.  Each Global Security shall represent such of the outstanding
Securities as shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount
of outstanding Securities represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, redemptions, repurchases and conversions. 

    Any
adjustment of the aggregate principal amount of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented thereby
shall be made by the Trustee in accordance with instructions given by the Holder thereof as required by Section 2.12 hereof and shall be made on the records of the Trustee and the Depositary. 

    (c)  Book-Entry Provisions.  This Section 2.1(c) shall apply only to Global Securities
deposited with or on behalf of the Depositary. 

    The
Company shall execute and the Trustee shall, in accordance with this Section 2.1(c), authenticate and deliver initially one or more Global Securities that (a) shall
be registered in the name of the Depositary, (b) shall be held by the Trustee as custodian for the Depositary and (c) shall be substantially in the form of Exhibit A attached
hereto. 

    (d)  Certificated Securities.  Securities not issued as interests in the Global Securities will be issued
in certificated form substantially in the form of Exhibit B attached hereto. 

 
 

       Section 2.2  Execution and Authentication.   The Securities shall be executed on behalf of the Company by any Officer. The signature of the Officer
on the Securities may be manual or facsimile. 

    Securities
bearing the manual or facsimile signatures of individuals who were at the time of the execution of the Securities Officers shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of authentication of such Securities. 

6

 

    No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered hereunder. 

    The
Trustee shall authenticate and deliver the Securities for original issue in an aggregate principal amount of up to $2,012,500,000 upon one or more Company Orders without any
further action by the Company (other than as contemplated in Section 11.4 and Section 11.5 hereof). The aggregate principal amount of the Securities due at the Stated Maturity thereof
outstanding at any time may not exceed the amount set forth in the foregoing sentence. 

    The
Securities shall be issued only in registered form without coupons and only in denominations of $1,000 of principal amount and any whole multiple of $1,000. 

 
 

       Section 2.3  Registrar, Paying Agent, Conversion Agent and Calculation Agent   The Company shall maintain an office or agency where Securities may
be presented for registration of transfer or for exchange ("Registrar"), an office or
agency where Securities may be presented for purchase or payment ("Paying Agent") and an office or agency where Securities may be presented for conversion ("Conversion Agent"). The Registrar shall
keep a register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars, one or more additional paying agents and one or more additional
conversion agents. The term Paying Agent includes any additional paying agent, including any named pursuant to Section 4.5. The term Conversion Agent includes any additional conversion agent,
including any named pursuant to Section 4.5. 

    The
Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent, Conversion Agent, Calculation Agent or co-registrar (in each case, if such
Registrar, agent or co-registrar is a Person other than the Trustee). The agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the
Trustee of the name and address of any such agent. If the Company fails to maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.7. The Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Registrar, Conversion Agent or co-registrar. 

    The
Company initially appoints the Trustee as Registrar, Conversion Agent, Calculation Agent and Paying Agent in connection with the Securities. 

 
 

      Section 2.4  Paying Agent to Hold Money and Securities in Trust.   Except as otherwise provided herein, on or prior to each due date of payments in
respect of any Security, the Company shall deposit with the Paying Agent a sum
of money (in immediately available funds if deposited on the due date) or shares of Common Stock sufficient to make such payments when so becoming due. The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Securityholders or the Trustee all money and shares of Common Stock held by the Paying Agent
for the making of payments in respect of the Securities and shall notify the Trustee of any default by the Company in making any such payment. At any time during the continuance of any such default,
the Paying Agent shall, upon the written request of the Trustee, forthwith pay to the Trustee all money and shares of Common Stock so held in trust. If the Company, a Subsidiary or an Affiliate of
either of them acts as Paying Agent, it shall segregate the money and shares of Common Stock held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a
Paying Agent to pay all money and shares of Common Stock held by it to the Trustee and to account for any funds and Common Stock disbursed by it. Upon doing so, the Paying Agent shall have no further
liability for the money or shares of Common Stock. 

7

 

 
 

       Section 2.5  Securityholder Lists.   The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to
it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, the Company shall cause to be furnished to the Trustee at least semiannually on March 1 and September 1 a listing of Securityholders
dated within 15 days of the date on which the list is furnished and at such other times as the Trustee may request in writing a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders. 

 
 

       Section 2.6  Transfer and Exchange.   (a) Subject to Section 2.12 hereof, upon surrender for registration of transfer of any Security,
together with a written instrument of transfer
satisfactory to the Registrar duly executed by the Securityholder or such Securityholder's attorney duly authorized in writing, at the office or agency of the company
designated as Registrar or co-registrar pursuant to Section 2.3, the company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of any authorized denomination or denominations, of a like aggregate principal amount. The Company shall not charge a service charge for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or
exchange of the Securities from the Securityholder requesting such transfer or exchange. 

    At
the option of the Holder, Securities may be exchanged for other Securities of any authorized denomination or denominations, of a like aggregate principal amount upon surrender of
the Securities to be exchanged, together with a written instrument of transfer satisfactory to the Registrar duly executed by the Securityholder or such Securityholder's attorney duly authorized in
writing, at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive. 

    The
Company shall not be required to make, and the Registrar need not register, transfers or exchanges of Securities selected for redemption (except, in the case of Securities to be
redeemed in part, the portion thereof not to be redeemed) or any Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been given and not withdrawn by the Holder
thereof in accordance with the terms of this Indenture (except, in the case of Securities to be purchased in part, the portion thereof not to be purchased) or any Securities for a period of
15 days before the mailing of a notice of redemption of Securities to be redeemed. 

    (b) Notwithstanding
any provision to the contrary herein, so long as a Global Security remains outstanding and is held by or on behalf of the Depositary, transfers of a
Global Security, in whole or in part, shall be made only in accordance with Section 2.12 and this Section 2.6(b). Transfers of a Global Security shall be limited to transfers of such
Global Security in whole or in part, to the Depositary, to nominees of the Depositary or to a successor of the Depositary or such successor's nominee. 

    (c) Successive
registrations and registrations of transfers and exchanges as aforesaid may be made from time to time as desired, and each such registration shall be
noted on the register for the Securities. 

    (d) Any
Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee such information as the Trustee may reasonably require in connection with
the delivery by such Registrar of Securities upon transfer or exchange of Securities. 

    (e) No
Registrar shall be required to make registrations of transfer or exchange of Securities during any periods designated in the text of the Securities or in this
Indenture as periods during which such registration of transfers and exchanges need not be made. 

    (f)  If
Securities are issued upon the transfer, exchange or replacement of Securities subject to restrictions on transfer and bearing the legends set forth on the
forms of Security attached hereto as 

8

 

Exhibits A and B setting forth such restrictions (collectively, the "Legend"), or if a request is made to remove the Legend on a Security, the Securities so issued shall bear the Legend, or the Legend
shall not be removed, as the case may be, unless there is delivered to the Company and the Registrar such satisfactory evidence, which shall include an opinion of counsel, as may be reasonably
required by the Company and the Registrar and the Trustee (if not the same Person as the Trustee), that neither the Legend nor the restrictions on transfer set forth therein are required to ensure
that transfers thereof comply with the provisions of Rule 144A or Rule 144 under the Securities Act of 1933, as amended ("Securities Act") or that such Securities are not "restricted"
within the meaning of Rule 144 under the Securities Act. Upon (i) provision of such satisfactory evidence, or (ii) notification by the Company to the Trustee and Registrar of the
sale of such Security pursuant to a registration statement that is effective at the time of such sale, the Trustee, at the written direction of the Company, shall authenticate and deliver a Security
that does not bear the Legend. If the Legend is removed from the face of a Security and the Security is subsequently held by the Company or an Affiliate of the Company, the Legend shall be reinstated. 

 
 

       Section 2.7  Replacement Securities.   If (a) any mutilated Security is surrendered to the Trustee, or (b) the Company and the Trustee
receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser within the meaning of Article 8 of the Uniform Commercial Code as in effect from
time to time in the State of New York (a "Protected Purchaser"), the Company shall execute and upon its written request the Trustee shall authenticate and deliver, in exchange for any such mutilated
Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a certificate number not contemporaneously outstanding. 

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

    Upon
the issuance of any new Securities under this Section 2.7, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may
be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

    Every
new Security issued pursuant to this Section 2.7 in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not
the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and proportionately with any and all other Securities
duly issued hereunder. 

    The
provisions of this Section 2.7 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities. 

 
 

       Section 2.8  Outstanding Securities; Determinations of Holders' Action.   Securities outstanding at any time are all the Securities authenticated
by the Trustee except for those cancelled by it, those paid pursuant to
Section 2.7, those delivered to it for cancellation and those described in this Section 2.8 as not outstanding. A Security does not cease to be outstanding because the Company or an
Affiliate thereof holds the Security; provided, however, that in determining whether the Holders of the requisite principal amount of Securities have given or concurred in any request, demand,
authorization, direction, notice, consent, waiver, or other Act hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other
obligor shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction,
notice, consent, waiver or other Act, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Subject to the foregoing, only Securities
outstanding at the time of such determination shall be considered in any such determination (including, without limitation, determinations pursuant to Articles Six and Nine). 

9

  

    If
a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a
Protected Purchaser. 

    If
the Paying Agent holds, in accordance with this Indenture, on a Redemption Date, or on the Business Day following a Purchase Date or a Change of Control Purchase Date, or on Stated
Maturity, money or securities, if permitted hereunder, sufficient to pay Securities payable on that date, then immediately after such Redemption Date, Purchase Date, Change of Control Purchase Date or
Stated Maturity, as the case may be, such Securities shall cease to be outstanding and interest, including contingent interest and additional interest, if any, on such Securities shall cease to
accrue; provided, that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made. 

    If
a Security is converted in accordance with Article Ten, then from and after the time of conversion on the date of conversion, such Security shall cease to be outstanding and
interest, including contingent interest and additional interest, if any, shall cease to accrue on such Security. 

 
 

      Section 2.9  Temporary Securities.   Pending the preparation of definitive Securities, the Company may execute, and upon Company Order the Trustee
shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their
execution of such Securities. 

    If
temporary Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation of definitive Securities, the
temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the Company designated for such purpose pursuant to
Section 2.3, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities. 

 
 

      Section 2.10  Cancellation.   All Securities surrendered for payment, purchase by the Company pursuant to Article Three, conversion, redemption or
registration of transfer or exchange
shall, if surrendered to any person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company may
at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly cancelled by the Trustee. The Company may not issue new Securities to replace Securities it has paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article Ten. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with the Trustee's customary procedure. 

 
 

       Section 2.11  Persons Deemed Owners.   Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the person
in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of the Security or the payment of any Redemption Price, Purchase Price or
Change of Control Purchase Price in respect thereof, and interest thereon, for the purpose of conversion and for all other purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

10

 

 
 

      Section 2.12  Global Securities.   (a) Notwithstanding any other provisions of this Indenture or the Securities, (A) transfers of a Global
Security, in whole or in part, shall be
made only in accordance with Section 2.6 and Section 2.12(a)(i), (B) transfers of a beneficial interest in a Global Security for a Certificated Security shall comply with
Section 2.6, Section 2.12(a)(ii) below and Section 2.12(e)(1) below, and (C) transfers of a Certificated Security shall comply with Section 2.6 and Sections
2.12(a)(iii) and (iv) below. 

    (i)  Transfer of Global Security.  A Global Security may not be transferred, in whole or in part, to any
person other than the Depositary or a nominee or any successor thereof, and no such transfer to any such other person may be registered; provided that this clause (i) shall not prohibit any
transfer of a Security that is issued in exchange for a Global Security but is not itself a Global Security. No transfer of a Security to any person shall be effective under this Indenture or the
Securities unless and until such Security has been registered in the name of such person. Nothing in this Section 2.12(a)(i) shall prohibit or render ineffective any transfer of a
beneficial interest in a Global Security effected in accordance with the other provisions of this Section 2.12(a). 

    (ii)  Restrictions on Transfer of a Beneficial Interest in a Global Security for a Certificated
Security.  A beneficial interest in a Global Security may not be exchanged for a Certificated Security except upon satisfaction of the requirements set forth
below and in Section 2.12(e)(1) below. Upon receipt by the Trustee of a transfer of a beneficial interest in a Global Security in accordance with Applicable Procedures for a Certificated
Security in the form satisfactory to the Trustee, together with: 

    (A) so
long as the Securities are Restricted Securities, certification in the form set forth in Exhibit C; 

    (B) written
instructions to the Trustee to make, or direct the Registrar to make, an adjustment on its books and records with respect to such Global Security to reflect
a decrease in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain information regarding the Depositary account to be credited with such
decrease; and 

    (C) if
the Company so requests, an opinion of counsel or other evidence reasonably satisfactory to it as to the compliance with the restrictions set forth in the
Legend, then the Trustee shall cause, or direct the Registrar to cause, in accordance with the standing instructions and procedures existing between the Depositary and the Registrar, the aggregate
principal amount of the Securities represented by the Global Security to be decreased by the aggregate principal amount of the Certificated Security to be issued, shall issue such Certificated
Security and shall debit or cause to be debited to the account of the person specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the
Certificated Security so issued. 

    (iii)  Transfer and Exchange of Certificated Securities.  When Certificated Securities are presented to
the Registrar with a request: 

    (y) to
register the transfer of such Certificated Securities; or 

    (z) to
exchange such Certificated Securities for an equal principal amount of Certificated Securities of other authorized denominations, 

11

 

    the
Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Certificated
Securities surrendered for transfer or exchange: 

	(1)
	shall
be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing; and

	(2)
	so
long as such Securities are Restricted Securities, such Securities are being transferred or exchanged pursuant to an effective registration statement under the Securities Act or
pursuant to clause (A), (B) or (C) below, and are accompanied by the following additional information and documents, as applicable: 

    (A) if
such Certificated Securities are being delivered to the Registrar by a Holder for registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or 

    (B) if
such Certificated Securities are being transferred to the Company, a certification to that effect; or 

    (C) if
such Certificated Securities are being transferred pursuant to an exemption from registration, (i) a certification to that effect (in the form set forth
in Exhibit C, if applicable) and (ii) if the Company so requests, an opinion of counsel or other evidence reasonably satisfactory to it as to the compliance with the restrictions set
forth in the Legend. 

    (iv)  Restrictions on Transfer of a Certificated Security for a Beneficial Interest in a Global
Security.  A Certificated Security may not be exchanged for a beneficial interest in a Global Security except upon satisfaction of the requirements set forth
below. 

    Upon
receipt by the Trustee of a Certificated Security, duly endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee, together with: 

    (I) so
long as the Securities are Restricted Securities, certification, in the form set forth in Exhibit C, that such Certificated Security is being transferred
to a QIB in accordance with Rule 144A; and 

    (II) written
instructions directing the Trustee to make, or to direct the Registrar to make, an adjustment on its books and records with respect to such Global Security
to reflect an increase in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain information regarding the Depositary account to be credited
with such increase, then the Trustee shall cancel such Certificated Security and cause, or direct the Registrar to cause, in accordance with the standing instructions and procedures existing between
the Depositary and the Registrar, the aggregate principal amount of Securities represented by the Global Security to be increased by the aggregate principal amount of the Certificated Security to be
exchanged, and shall credit or cause to be credited to the account of the person specified in such instructions a beneficial interest in the Global Security equal to the principal amount of the
Certificated Security so cancelled. If no Global Securities are then outstanding, the Company shall issue and the Trustee shall authenticate, upon written order of the Company in the form of an
Officers' Certificate, a new Global Security in the appropriate principal amount. 

    (b) Subject
to the succeeding Subsection (c), every Security shall be subject to the restrictions on transfer provided in the Legend, including the delivery of an
opinion of counsel, if so provided. Whenever any Restricted Security is presented or surrendered for registration of transfer or for exchange for a Security registered in a name other than that of the
Holder, such Security must be accompanied by a certificate in substantially the form set forth in Exhibit C, dated the date of such 

12

 

surrender and signed by the Holder of such Security, as to compliance with such restrictions on transfer. The Registrar shall not be required to accept for such registration of transfer or exchange
any Security not so accompanied by a properly completed certificate. 

    (c) The
restrictions imposed by the Legend upon the transferability of any Security shall cease and terminate when such Security has been sold pursuant to an effective
registration statement under the Securities Act or transferred in compliance with Rule 144 under the Securities Act (or any successor provision thereto) or, if earlier, upon the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision). Any Security as to which such restrictions on transfer shall have expired
in accordance with their terms or shall have terminated may, upon a surrender of such Security for exchange to the Registrar in accordance with the provisions of this Section 2.12 (accompanied,
in the event that such restrictions on transfer have terminated by reason of a transfer in compliance with Rule 144 or any successor provision, by an opinion of counsel having substantial
experience in practice under the Securities Act and otherwise reasonably acceptable to the Company, addressed to the Company and in form acceptable to the Company, to the effect that the transfer of
such Security has been made in compliance with Rule 144 or such successor provision), be exchanged for a new Security, of like tenor and aggregate principal amount, which shall not bear the
restrictive Legend. The Company shall inform the Trustee of the effective date of any registration statement registering the Securities under the Securities Act. The Trustee shall not be liable for
any action taken or omitted to be taken by it in good faith in accordance with the aforementioned opinion of counsel or registration statement. 

    (d) As
used in the preceding two paragraphs of this Section 2.12, the term "transfer" encompasses any sale, pledge, transfer, loan, hypothecation, or other
disposition of any Security. 

    (e) The
provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 

	(1)
	Notwithstanding
any other provisions of this Indenture or the Securities, a Global Security shall not be exchanged in whole or in part for a Security registered in the name of any
person other than the Depositary or one or more nominees thereof, provided that a Global Security may be exchanged for Securities registered in the names of any person designated by the Depositary in
the event that (i) the Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or such Depositary has ceased to be a "clearing
agency" registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and a successor Depositary is not appointed
by the Company within 90 days or (ii) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security exchanged pursuant to clause (i) above
shall be so exchanged in whole and not in part, and any Global Security exchanged pursuant to clause (ii) above may be exchanged in whole or from time to time in part as directed by the
Depositary. Any Security issued in exchange for a Global Security or any portion thereof shall be a Global Security; provided that any such Security so issued that is registered in the name of a
person other than the Depositary or a nominee thereof shall not be a Global Security.

	(2)
	Securities
issued in exchange for a Global Security or any portion thereof shall be issued in definitive, fully registered form, without interest coupons, shall have an aggregate
principal amount equal to that of such Global Security or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the Depositary shall
designate and shall bear the applicable legends provided for herein. Any Global Security to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Registrar. With regard to
any Global Security to be exchanged in part, either such Global Security shall be so surrendered for exchange or, if the Trustee is acting as custodian for the Depositary or its nominee with respect
to such Global Security, the principal amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate 

13

 

adjustment
made on the records of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the Security issuable on such exchange to or upon the order of the
Depositary or an authorized representative thereof. 

	(3)
	Subject
to the provisions of clause (5) below, the registered Holder may grant proxies and otherwise authorize any person, including Agent Members (as defined below) and
persons that may hold interests through Agent Members, to take any action which a holder is entitled to take under this Indenture or the Securities.

	(4)
	In
the event of the occurrence of any of the events specified in clause (1) above, the Company will promptly make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form, without interest coupons.

	(5)
	Neither
any members of, or participants in, the Depositary (collectively, the "Agent Members") nor any other persons on whose behalf Agent Members may act shall have any rights
under this Indenture with respect to any Global Security registered in the name of the Depositary or any nominee thereof, or under any such Global Security, and the Depositary or such nominee, as the
case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or such nominee, as the case may be, or impair, as between the Depositary, its Agent Members and
any other person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of the rights of a holder of any Security. 

 
 

       Section 2.13  CUSIP Numbers.   The Company may issue the Securities with one or more "CUSIP" numbers (if then generally in use), and, if so, the
Trustee shall use CUSIP numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 

 
 

       Section 2.14  Ranking.   The indebtedness of the Company arising under or in connection with this Indenture and every outstanding Security issued
under this Indenture from time to time
constitutes and will constitute a senior unsecured general obligation of the Company, ranking equally with other existing and future senior unsecured Indebtedness of the Company and ranking senior in
right of payment to any future Indebtedness of the Company that is expressly made subordinate to the Securities by the terms of such Indebtedness. For purposes of this Section 2.14 only,
"Indebtedness" means, without duplication, the principal or face amount of (i) all obligations for borrowed money, (ii) all obligations evidenced by debentures, notes or other similar
instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments (or reimbursement obligations with respect thereto), (iv) all obligations
to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (v) all obligations as lessee which are capitalized in
accordance with generally accepted accounting principles, and (vi) all Indebtedness of others guaranteed by the Company or any of its Subsidiaries or for which the Company or any of its
Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others). 

14

 
 
 

ARTICLE THREE    
    
    REDEMPTION AND PURCHASES    
  

 
 

       Section 3.1  Company's Right to Redeem; Notices to Trustee.   Prior to September 15, 2006, the Securities will not be redeemable at the
Company's option. Beginning on September 15, 2006, the Company, at its
option, may redeem the Securities in accordance with the provisions of Section 5 of the Securities for cash at any time as a whole, or from time to time in part, at the redemption prices set
forth in Section 5 of the Securities, plus any accrued and unpaid interest, including contingent interest and additional interest, if any, on those Securities to the Redemption Date. If the
Company elects to redeem Securities pursuant to Section 5 of the Securities, it shall notify the Trustee in writing of the Redemption Date, the principal amount of Securities to be redeemed and
the Redemption Price. 

    The
Company shall give the notice to the Trustee provided for in this Section 3.1 by a Company Order, at least 40 days but not more than 70 days before the
Redemption Date. 

 
 

      Section 3.2  Selection of Securities to Be Redeemed.   If less than all the Securities are to be redeemed, unless the procedures of the Depositary
provide otherwise, the Trustee shall select the Securities to be
redeemed by lot, on a pro rata basis or by another method the Trustee considers fair and appropriate (so long as such method is not prohibited by the rules of any stock exchange on which the
Securities are then listed). The Trustee shall, within five Business Days after it receives the notice provided for in Section 3.1, make the selection from outstanding Securities not previously
called for redemption. The Trustee may select for redemption portions of the principal amount of Securities that have denominations larger than $1,000. 

    Securities
and portions of Securities that the Trustee selects shall be in principal amounts of $1,000 or whole multiples of $1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company promptly of the Securities or portions of the Securities to be
redeemed. 

    Securities
and portions of Securities that are to be redeemed are convertible by the Holder until the close of business on the second Business Day prior to the Redemption Date. If any
Security selected for partial redemption is converted in part before termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security
shall be deemed (so far as may be) to be the portion selected for redemption. Securities which have been converted during a selection of Securities to be redeemed may be treated by the Trustee as
outstanding for the purpose of such selection. 

 
 

       Section 3.3  Notice of Redemption.   At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail a notice
of redemption by first-class mail, postage
prepaid, to each Holder of Securities to be redeemed. 

    The
notice shall identify the Securities to be redeemed and shall state: 

	(1)
	the
Redemption Date;

	(2)
	the
Redemption Price;

	(3)
	the
Conversion Price;

	(4)
	the
name and address of the Paying Agent and Conversion Agent;

	(5)
	that
Securities called for redemption may be converted at any time before the close of business on the second Business Day prior to the Redemption
Date;

	(6)
	that
Holders who want to convert their Securities must satisfy the requirements set forth in Section 8 of the Securities; 

15

 

	(7)
	that
Securities called for redemption must be surrendered to the Paying  Agent to collect the Redemption Price;

	(8)
	if
fewer than all of the outstanding Securities are to be redeemed, the certificate numbers, if any, and principal amounts of the particular
Securities to be redeemed;

	(9)
	that,
unless the Company defaults in making payment of such Redemption Price, interest, including contingent interest and additional interest, if
any, on Securities called for redemption will cease to accrue interest on and after the Redemption Date; and

	(10)
	the
CUSIP number(s) of the Securities. 

    At
the Company's request, the Trustee shall give the notice of redemption in the Company's name and at the Company's expense, provided that (1) the Company makes such request
at least seven Business
Days prior to the date by which such notice of redemption must be given to Holders in accordance with this Section 3.3, and (2) the Company provides to the Trustee the text of such
notice of redemption. 

 
 

       Section 3.4  Effect of Notice of Redemption.   Once notice of redemption is given, Securities called for redemption become due and payable on the
Redemption Date and at the Redemption Price stated in the
notice except for Securities which are converted in accordance with the terms of this Indenture. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in the
notice. 

 
 

       Section 3.5  Deposit of Redemption Price.   Prior to 10:00 a.m. (New York City time) on the Redemption Date, the Company shall deposit with
the Paying Agent (or if the Company or a Subsidiary or
an Affiliate of either of them is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price of all Securities to be redeemed on that date other than Securities
or portions of Securities called for redemption which on or prior thereto have been delivered by the Company to the Trustee for cancellation or have been converted. The Paying Agent shall as promptly
as practicable return to the Company any money not required for payment of the Redemption Price because of conversion of Securities pursuant to Article Ten. If such money is then held by the Company
in trust and is not required for payment of the Redemption Price it shall be discharged from such trust. 

 
 

       Section 3.6  Securities Redeemed in Part.   Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Security in
an authorized denomination equal in principal amount to the unredeemed portion of the Security surrendered. 

 
 

       Section 3.7  Purchase of Securities by the Company at Option of the Holder.   (a) General. Securities shall be purchased by the Company
pursuant to Section 6 of the Securities at the option of the Holder on
September 15, 2002, September 15, 2004, September 15, 2006, September 15, 2008, September 15, 2011 and September 15, 2016 (each, a "Purchase Date"), at a
purchase price equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent interest and additional interest, if any, on such Purchase Date (the "Purchase
Price"), subject to the provisions of Section 3.9. Purchases of Securities hereunder shall be made, at the option of the Holder thereof, upon: 

	(1)
	delivery
to the Paying Agent by the Holder of a written notice of purchase (a "Purchase Notice") during the period beginning at any time from the opening of business on the date
that is 20 Business Days prior to the relevant Purchase Date until the close of business on the third Business Day prior to such Purchase Date stating: 

    (A) the
certificate number of the Security which the Holder will deliver to be purchased or the appropriate Depositary procedures if Certificated Securities have not
been issued, 

16

 

    (B) the portion of the principal amount of the Security which the Holder will deliver to be purchased, which portion must be in principal amounts of $1,000 or a whole
multiple of $1,000, 

    (C) that
such Security shall be purchased by the Company as of the Purchase Date pursuant to the terms and conditions specified in Section 6 of the Securities
and in this Indenture, and 

    (D) in
the event the Company elects, pursuant to Section 3.9(c), to pay the Purchase Price, in whole or in part, in shares of Common Stock but such portion of
the Purchase Price shall ultimately be paid to such Holder entirely in cash because any of the conditions to payment of the Purchase Price in shares of Common Stock is not satisfied prior to the close
of business on the relevant Purchase Date, as set forth in Section 3.9, whether such Holder elects (i) to withdraw such Purchase Notice as to some or all of the Securities to which such
Purchase Notice relates (stating the principal amount and certificate numbers, if any, of the Securities as to which such withdrawal shall relate), or (ii) to receive cash in respect of the
entire Purchase Price for all Securities (or portions thereof) to which such Purchase Notice relates; and 

	(2)
	delivery
of such Security to the Paying Agent at any time after delivery of the Purchase Notice (together with all necessary endorsements) at the offices of the Paying Agent, such
delivery being a condition to receipt by the Holder of the Purchase Price therefor; provided, however, that such Purchase Price shall be so paid pursuant to this Section 3.7 only if the
Security so delivered to the Paying Agent shall conform in all respects to the description thereof in the related Purchase Notice. 

    If
a Holder, in such Holder's Purchase Notice and in any written notice of withdrawal delivered by such Holder pursuant to the terms of Section 3.9, fails to indicate such
Holder's choice with respect to the election set forth in clause (D) of Section 3.7(a)(1), such Holder shall be deemed to have elected to receive cash in respect of the entire Purchase
Price for all Securities subject to such Purchase Notice in the circumstances set forth in such clause (D). 

    The
Company shall purchase from the Holder thereof, pursuant to this Section 3.7, a portion of a Security, if the principal amount of such portion is $1,000 or a whole multiple
of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 

    Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.7 shall be consummated by the delivery of the consideration to be received by the Holder
promptly following the later of the Purchase Date and the time of delivery of the Security. 

    Notwithstanding
anything herein to the contrary, any Holder delivering to the Paying Agent the Purchase Notice contemplated by this Section 3.7(a) shall have the right to
withdraw such Purchase Notice at any time prior to the close of business on the Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.10. 

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

 
 

       Section 3.8  Purchase of Securities at Option of the Holder upon Change of Control.   (a) (1) If a Change of Control occurs (subject to
certain exceptions set forth below), the Securities not previously purchased by the Company shall be
purchased by the Company, at the option of the Holder thereof, at a purchase price specified in Section 6 of the Securities (the "Change of Control Purchase Price"), as of the date that is
30 days after the date of a notice of Change of Control delivered by the Company (the "Change of Control Purchase Date"), subject to satisfaction by or on behalf of the Holder of the
requirements set forth in Section 3.8(c). 

17

  

    A
"Change of Control" will be deemed to have occurred at such time after the Securities are originally issued when any of the following events shall occur: 

     (i) the
acquisition by any person, including any syndicate or group deemed to be a "person" under Section 13(d) (3) of the Exchange Act of beneficial
ownership, directly or indirectly through a purchase, merger or other acquisition transaction or series of purchase, merger or other acquisition transactions, of shares of the Capital Stock of the
Company entitling that person to exercise 50% or more of the total voting power of all shares of the Capital Stock of the Company entitled to vote generally in elections of directors, other than any
acquisition by the Company, any of its subsidiaries or any of its employee benefit plans (except that any of those persons shall be deemed to have beneficial ownership of all securities it has the
right to acquire, whether the right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition) or any underwriter temporarily holding securities pursuant to an
offering of such securities; or 

    (ii) the
first day on which a majority of the members of the board of directors of the Company are not Continuing Directors; or 

    (iii) the
Company consolidates or merges with or into any other person, any merger of another person into the Company, or any conveyance, transfer, sale, lease or other
disposition of all or substantially all of the Company's properties and assets to another person, other than: (A) any transaction: (1) that does not result in any reclassification,
conversion, exchange or cancellation of outstanding shares of the Company's Capital Stock; and (2) pursuant to which holders of the Company's Capital Stock immediately prior to the transaction
have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares of Capital Stock entitled to vote generally in elections of directors of the continuing or
surviving Person immediately after giving effect to such issuance; and (B) any merger, share exchange, transfer of assets or similar transaction solely for the purpose of changing the Company's
jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock, if at all, solely into shares of common stock, ordinary shares,
American Depositary Shares or analogous securities of the surviving Person or a direct or indirect parent of the surviving corporation. 

    A
"Continuing Director" shall mean: 

     (i) An
individual who was a member of the Board of Directors of the Company first elected by the stockholders or by the Board of Directors prior to the date hereof or
prior to the time that any person becomes after the date hereof the holder of record of in excess of 20% of the Capital Stock of the Company entitled to vote in the election of directors; or 

    (ii) An
individual designated (before such individual's initial election as a director) as a Continuing Director by a majority of the then Continuing Directors. 

    (2) Notwithstanding
the provisions of Section 3.8(a)(1), the Company shall not be required to purchase the Securities of the Holders upon a Change of Control
pursuant to this Section 3.8 if: 

	(i)
	the
Sale Price per share of Common Stock for any five Trading Days within (1) the period of 10 consecutive Trading Days ending immediately
after the later of the Change of Control or the public announcement of the Change of Control, in the case of a Change of Control under clause (i) or (ii) of the definition of Change of
Control above, or (2) the period of 10 consecutive Trading Days ending immediately before the Change of Control, in the case of a Change of Control under clause (iii) of the definition
of Change of Control above, equals or exceeds 110% of the Conversion Price of the Securities in effect on each of those five Trading Days; or 

18

 

	(ii)
	100%
of the consideration in the transaction or transactions (other than cash payments for fractional shares and cash payments made in respect of
dissenters' appraisal rights) constituting a Change of Control consists of shares of common stock, ordinary shares, American Depositary Shares or analogous securities traded or to be traded
immediately following a Change of Control on a national securities exchange or the Nasdaq National Market, and, as a result of the transaction or transactions, the Securities become convertible into
that common stock, ordinary shares, American Depositary Shares or analogous securities (and any rights attached thereto). 

For
the purposes of this Section 3.8, (x) whether a person is a "beneficial owner" shall be determined in accordance with Rule 13d-3 under the Exchange Act and
(y) the term "person" includes any syndicate or group that would be deemed to be a "person" under Section 13(d)(3) of the Exchange Act. 

    (b) No
later than 30 days after the occurrence of a Change of Control, the Company shall mail a written notice of the Change of Control by first class mail to
the Trustee and to each Holder (and to beneficial owners as required by applicable law). The notice shall include a form of Change of Control Purchase Notice to be completed by the Holder and shall
state: 

	(1)
	briefly,
the events causing a Change of Control and the date of such Change of Control;

	(2)
	the
date by which the Change of Control Purchase Notice pursuant to this Section 3.8 must be delivered to the Paying Agent in order for a
Holder to exercise the repurchase rights;

	(3)
	the
Change of Control Purchase Date;

	(4)
	the
Change of Control Purchase Price;

	(5)
	whether
the Change of Control Purchase Price will be paid in cash or Applicable Stock, or a combination thereof;

	(6)
	the
name and address of the Paying Agent and the Conversion Agent;

	(7)
	the
Conversion Rate and any adjustments thereto;

	(8)
	that
the Securities as to which a Change of Control Purchase Notice has been given may be converted if they are otherwise convertible pursuant to
Article Ten hereof only if the Change of Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

	(9)
	that
the Securities must be surrendered to the Paying Agent to collect payment;

	(10)
	that
the Change of Control Purchase Price for any Security as to which a Change of Control Purchase Notice has been duly given and not withdrawn
will be paid promptly following the later of the Change of Control Purchase Date and the time of surrender of such Security as described in (8);

	(11)
	briefly,
the procedures the Holder must follow to exercise rights under this Section 3.8;

	(12)
	briefly,
the conversion rights, if any, of the Securities;

	(13)
	the
procedures for withdrawing a Change of Control Purchase Notice;

	(14)
	that,
unless the Company defaults in making payment of such Change of Control Purchase Price, interest, if any, on Securities surrendered for
purchase by the Company will cease to accrue on and after the Change of Control Purchase Date; and

	(15)
	the
CUSIP number(s) of the Securities. 

19

 

    (c) A
Holder may exercise its rights specified in Section 3.8(a) upon delivery of a written notice of purchase (a "Change of Control Purchase Notice") to the
Paying Agent at any time on or prior to the close of business on the Business Day immediately preceding the Change of Control Purchase Date: 

	(1)
	the
certificate number of the Security which the Holder will deliver to be purchased or the appropriate depositary procedures if Certificated Securities have not been issued;

	(2)
	the
portion of the principal amount of the Security which the Holder will deliver to be purchased, which portion must be $1,000 or a whole multiple of $1,000;

	(3)
	that
such Security shall be purchased pursuant to the terms and conditions specified in Section 6 of the Securities and in this Indenture; and

	(4)
	in
the event the Company elects, pursuant to Section 3.9, to pay the Change of Control Purchase Price, in whole or in part, in shares of Applicable Stock but such portion of
the Change of Control Purchase Price shall ultimately be paid to such Holder entirely in cash because any of the conditions to payment of the Change of Control Purchase Price in shares of Applicable
Stock is not satisfied prior to the close of business on the third Business Day prior to the relevant Change of Control Purchase Date, as set forth in Section 3.9, whether such Holder elects
(i) to withdraw such Change of Control Purchase Notice as to some or all of the Securities to which such Change of Control Purchase Notice relates (stating the principal amount and certificate
numbers, if any, of the Securities as to which such withdrawal shall relate), or (ii) to receive cash in respect of the entire Change of Control Purchase Price for all Securities (or portions
thereof) to which such Change of Control Purchase Notice relates. 

    "Applicable
Stock" means (i) the Common Stock and (ii) in the event of a merger, consolidation or other similar transaction involving the Company that is otherwise
permitted hereunder in which the Company is not the surviving corporation, the common stock, ordinary shares, American Depositary Shares or analogous securities of such surviving corporation or its
direct or indirect parent corporation. 

    The
delivery of such Security to the Paying Agent with the Change of Control Purchase Notice (together with all necessary endorsements) at the offices of the Paying Agent shall be a
condition to the receipt by the Holder of the Change of Control Purchase Price therefor; provided, however, that such Change of Control Purchase Price shall be so paid pursuant to this
Section 3.8 and Section 3.9 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Change of Control
Purchase Notice. 

    If
a Holder, in such Holder's Change of Control Purchase Notice and in any written notice of withdrawal delivered by such Holder pursuant to the terms of Section 3.10, fails to
indicate such Holder's choice with respect to the election set forth in Section 3.8(c)(4), such Holder shall be deemed to have elected to receive cash in respect of the entire Change of Control
Purchase Price for all Securities subject to such Change of Control Purchase Notice in the circumstances set forth in such Section 3.8(c)(4). 

    The
Company shall purchase from the Holder thereof, pursuant to this Section 3.8 and Section 3.9, a portion of a Security if the principal amount of such portion is
$1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 

    Any
purchase by the Company contemplated pursuant to the provisions of this Section 3.8 and Section 3.9 shall be consummated by the delivery of the consideration to be
received by the Holder on the Change of Control Purchase Date. 

20

 

    Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Change of Control Purchase Notice contemplated by this Section 3.8(c) shall have
the right to withdraw such Change of Control Purchase Notice at any time prior to the close of business on the last Business Day immediately preceding the Change of Control Purchase Date by delivery
of a written notice of withdrawal to the Paying Agent in accordance with Section 3.11. 

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

 
 

       Section 3.9  Company's Right to Elect Manner of Payment of Purchase Price and Change of Control Purchase Price for  Payment.   (a) The
Securities to be purchased on any Purchase Date or Change of Control Purchase Date, as the case may be, pursuant to Section 3.7(a) and
3.8(a), respectively, may be paid for, in whole or in part, at the election of the Company, in U.S. legal tender ("cash") or shares of Applicable Stock, or in any combination of cash and shares of
Applicable Stock, subject to the conditions set forth in Sections 3.9(c) and (d). The Company shall designate, in the Company Notice delivered pursuant to Section 3.9(d), whether the Company
will purchase the Securities for cash or shares of Applicable Stock, or, if a combination thereof, the percentages of the Purchase Price or Change of Control Purchase Price, as the case may be, of
Securities in respect of which it will pay in cash or shares of Applicable Stock; provided that the Company will pay cash for fractional interests in shares of Applicable Stock. For purposes of
determining the existence of potential fractional interests, all Securities subject to purchase by the Company held by a Holder shall be considered together (no matter how many separate certificates
are to be presented). Each Holder whose Securities are purchased pursuant to Section 3.7 or 3.8, as the case may be, shall receive the same percentage of cash or shares of Applicable Stock in
payment of the Purchase Price for such Securities, except (i) as provided in this Section 3.9(a) with regard to the payment of cash in lieu of fractional shares of Applicable Stock and
(ii) in the event that the Company is unable to purchase the Securities of a Holder or Holders for shares of Applicable Stock because any necessary qualifications or registrations of the shares
of Applicable Stock under applicable state securities laws cannot be obtained, the Company may purchase the Securities of such Holder or Holders for cash. The Company may not change its election with
respect to the consideration (or components or percentages of components thereof) to be paid once the Company has given its Company Notice to Holders except pursuant to Section 3.9(b) or
pursuant to Section 3.9(d) in the event of a failure to satisfy, prior to the close of business on the Business Day immediately preceding the Purchase Date or Change of Control Purchase Date,
as the case may be, any condition to the payment of the Purchase Price or Change of Control Purchase Price, as the case may be, in whole or in part, in shares of Applicable Stock. 

    At
least three Business Days before each Company Notice Date, the Company shall deliver an Officers' Certificate to the Trustee specifying: 

    (i)  the
manner of payment selected by the Company, 

    (ii) the
information required by Section 3.9(d) in the Company Notice, 

    (iii) if
the Company elects to pay the Purchase Price or Change of Control Purchase Price, as the case may be, or a specified percentage thereof, in shares of
Applicable Stock, that the conditions to such manner of payment set forth in Section 3.9(c) have been or will be complied with, and 

    (iv) whether
the Company desires the Trustee to give the Company Notice required by Section 3.9(d). 

    (b)  Purchase with Cash.  At the option of the Company, the Purchase Price or Change of Control Purchase
Price, as the case may be, of Securities in respect of which a Purchase Notice pursuant to
Section 3.7(a) or Change of Control Purchase Notice pursuant to Section 3.8(c), as the case may be, has been given, or a specified percentage thereof, may be paid by the Company with 

21

 

cash equal to the aggregate Purchase Price or Change of Control Purchase Price, as the case may be, of such Securities. The Purchase Price or Change of Control Purchase Price, as the case may be, of
Securities in respect of which a Purchase Notice pursuant to Section 3.7(a) or Change of Control Purchase Notice pursuant to Section 3.8(c), as the case may be, has been given shall, for
all other Purchase Dates or Change of Control Purchase Dates, as the case may be, be paid in cash. The Company Notice, as provided in Section 3.9(d), shall be sent to Holders (and to beneficial
owners as required by applicable law) not less than 20 Business Days prior to such Purchase Date or Change of Control Purchase Date, as the case may be (the "Company Notice Date"). 

    (c)  Payment by Issuance of Shares of Common Stock.  At the option of the Company, the Purchase Price or
Change of Control Purchase Price, as the case may be, of Securities in respect of which a Purchase Notice pursuant to Section 3.7(a) or Change of Control Purchase Notice pursuant to
Section 3.8(c), as the case may be, has been given, or a specified percentage thereof, may be paid by the Company by the issuance of a number of shares of Applicable Stock equal to the quotient
obtained by dividing (i) the portion of the Purchase Price or Change of Control Purchase Price, as the case may be, to be paid in shares of Applicable Stock by (ii) 100% of the Market
Price determined by the Company in the Company Notice, subject to the next succeeding paragraph. 

    The
Company will not issue fractional shares of Applicable Stock in payment of the Purchase Price or Change of Control Purchase Price, as the case may be. Instead, the Company will
pay cash based on the current market price for all fractional shares. It is understood that if a Holder elects to have more than one Security purchased, the number of shares of Applicable Stock shall
be based on the aggregate amount of Securities to be purchased. 

    If
the Company elects to purchase the Securities by the issuance of shares of Applicable Stock or in any combination of cash and Applicable Stock, the Company Notice, as provided in
Section 3.9(d), shall be sent to the Holders (and to beneficial owners as required by applicable law) not later than the Company Notice Date. 

    The
Company's right to exercise its election to purchase Securities through the issuance of shares of Applicable Stock shall be conditioned upon: 

    (i)  the
Company's not having given its Company Notice of an election to pay entirely in cash and its giving of timely Company Notice of an election to purchase all or
a specified percentage of the Securities with shares of Common Stock as provided herein; 

    (ii) the
registration of such shares of Applicable Stock under the Securities Act and the Exchange Act, in each case, if required; 

    (iii) the
listing of such shares of Applicable Stock on a United States national securities exchange or the quotation of such shares of Applicable Stock in an
inter-dealer quotation system of any registered United States national securities association; 

    (iv) any
necessary qualification or registration of such shares of Applicable Stock under applicable state securities laws or the availability of an exemption from such
qualification and registration; and 

    (v) the
receipt by the Trustee of an Officer's Certificate and an Opinion of Counsel each stating that (A) the terms of the issuance of the shares of Applicable
Stock are in conformity with this Indenture and (B) the shares of Applicable Stock to be issued by the Company in payment of the Purchase Price or Change of Control Purchase Price, as the case
may be, in respect of Securities have been duly authorized and, when issued and delivered pursuant to the terms of this Indenture in payment of the Purchase Price or Change of Control Purchase Price,
as the case may 

22

 

be, in respect of the Securities, will be validly issued, fully paid and non-assessable and, to the best of such counsel's knowledge, free from preemptive rights, and, in the case of such
Officer's Certificate, stating that the conditions above and the condition set forth in the second succeeding sentence have been satisfied and, in the case of such Opinion of Counsel, stating that the
conditions in clauses (i) through (iv) above have been satisfied. 

    Such
Officers' Certificate shall also set forth the number of shares of Applicable Stock to be issued for each $1,000 principal amount of Securities and the Sale Price of a share of
Applicable Stock on each Trading Day during the period commencing on the first Trading Day of the period during which the Market Price is calculated and ending on the third day prior to the applicable
Purchase Date or Change of Control Date, as the case may be. If the foregoing conditions are not satisfied with respect to a Holder or Holders prior to the close of business on the last day prior to
the Purchase Date or Change of Control Purchase Date, as the case may be, and the Company has elected to purchase the Securities pursuant to this Section 3.9 through the issuance of shares of
Applicable Stock, the Company shall pay the entire Purchase Price or Change of Control Purchase Price, as the case may be, of the Securities of such Holder or Holders in cash. 

    The
"Market Price" means the average of the Sale Prices of the shares of Applicable Stock for the 5-Trading Day period immediately preceding and including the third day
prior to the applicable Purchase Date or Change of Control Purchase Date, as the case may be, (if the third Business Day
prior to the applicable Purchase Date is a Trading Day, or if not, then on the last Trading Day prior to the third Business Day), appropriately adjusted to take into account the occurrence, during the
period commencing on the first of the Trading Days during the 5-Trading Day period and ending on the Purchase Date or Change of Control Purchase Date, as the case may be, of any event
described in Sections 10.3 or 10.4. 

    The
"Sale Price" of the shares of Applicable Stock on any date means the closing per share sale price (or, if no closing sale price is reported, the average of the bid and ask prices
or, if more than one in either case, the average of the average bid and the average ask prices) on such date as reported on the NYSE or, if the shares of Applicable Stock are not listed on the NYSE,
as reported on a national securities exchange, or if not reported on a national securities exchange, as reported by the Nasdaq system. In the absence of such quotations, the Company shall be entitled
to determine the sales price on the basis of such quotations as it considers appropriate. 

    Upon
determination of the actual number of shares of Applicable Stock to be issued upon redemption or repurchase of Securities, the Company shall be required to disseminate a press
release through Dow Jones & Company, Inc. or Bloomberg Business News containing this information or publish the information on the Company's Web site or through such other public medium
as the Company may use at that time. 

    (d)  Notice of Election.  In connection with any purchase of Securities pursuant to Section 6 of
the Securities, the Company shall give notice to Holders setting forth information specified in this Section 3.9(d) (the "Company Notice"). 

    In
the event the Company has elected to pay the Purchase Price or Change of Control Purchase Price, as the case may be (or a specified percentage thereof), with shares of Applicable
Stock, the Company Notice shall: 

	(1)
	state
that each Holder will receive a number of shares of Applicable Stock with a value equal to 100% of the Market Price determined as of a specified date prior to the Purchase
Date or Change of Control Purchase Date, as the case may be, equal to such specified percentage of the Purchase Price or Change of Control Purchase Price, as the case may be, of the Securities held by
such Holder (except any cash amount to be paid in lieu of fractional shares); 

23

  

	(2)
	set
forth the method of calculating the Market Price of the shares of Applicable Stock; and

	(3)
	state
that because the Market Price of shares of Applicable Stock will be determined prior to the Purchase Date or Change of Control Purchase Date, as the case may be, Holders of
the Securities will bear the market risk with respect to the value of the shares of Applicable Stock to be received from the date such Market Price is determined to the Purchase Date or Change of
Control Purchase Date, as the case may be. 

    In
any case, each Company Notice shall include a form of Purchase Notice or Change of Control Purchase Notice, as the case may be, to be completed by a Holder and shall state: 

     (i) the
Purchase Price or Change of Control Purchase Price, as the case may be, and the Conversion Rate; 

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

    (iii) that
Securities as to which a Purchase Notice or Change of Control Purchase Notice, as the case may be, has been given may be converted if they are otherwise
convertible only in accordance with Article Ten hereof and Section 8 of the Securities if the applicable Purchase Notice or Change of Control Purchase Notice, as the case may be, has been
withdrawn in accordance with the terms of this Indenture; 

    (iv) that
Securities must be surrendered to the Paying Agent to collect payment; 

    (v) that
the Purchase Price or Change of Control Purchase Price, as the case may be, for any security as to which a Purchase Notice or Change of Control Purchase
Notice, as the case may be, has been given and not withdrawn will be paid promptly following the later of the Purchase Date or Change of Control Purchase Date, as the case may be, and the time of
surrender of such Security as described in (iv); 

    (vi) the
procedures the Holder must follow to exercise its purchase rights under Section 3.7 or 3.8, as the case may be, and a brief description of those rights; 

   (vii) briefly,
the conversion rights of the Securities; 

   (viii) the
procedures for withdrawing a Purchase Notice or Change of Control Purchase Notice, as the case may be (including, without limitation, for a conditional
withdrawal pursuant to the terms of Section 3.7(a)(1)(D), Section 3.8(c)(4)or Section 3.10); 

    (ix) that,
unless the Company defaults in making payment on Securities for which a Purchase Notice or Change of Control Purchase Notice, as the case may be, has been
submitted, interest, if any, on such Securities will cease to accrue on the Purchase Date or Change of Control Purchase Date, as the case may be; and 

    (x) the
CUSIP number of the Securities. 

    At
the Company's request, the Trustee shall give such Company Notice in the Company's name and at the Company's expense; provided, however, that, in all cases, the text of such
Company Notice shall be prepared by the Company. 

    (e)  Covenants of the Company.  All shares of Common Stock delivered upon purchase of the Securities
shall be newly issued shares or treasury shares, shall be duly authorized, validly issued, fully paid and nonassessable, and shall be free from preemptive rights and free of any lien or adverse claim. 

    (f)  Taxes.  If a Holder of a purchased Security is paid in shares of Applicable Stock, the Company shall
pay any documentary, stamp or similar issue or transfer tax due on such issue of 

24

 

Applicable Stock. However, the Holder shall pay any such tax which is due because the Holder requests the Applicable Stock to be issued in a name other than the Holder's name. The Paying Agent may
refuse to deliver the certificates representing the shares of Applicable Stock being issued in a name other than the Holder's name until the Paying Agent receives a sum sufficient to pay any tax which
will be due because the shares of Applicable Stock are to be issued in a name other than the Holder's name. Nothing herein shall preclude any income tax withholding required by law or regulations. 

 
 

       Section 3.10  Effect of Purchase Notice or Change of Control Purchase Notice.   Upon receipt by the Paying Agent of the Purchase Notice or Change
of Control Purchase Notice specified in Section 3.7(a) or Section 3.8(c), as
applicable, the Holder of the Security in respect of which such Purchase Notice or Change of Control Purchase Notice, as the case may be, was given shall (unless such Purchase Notice or Change of
Control Purchase Notice, as the case may be, is withdrawn as specified in the following three paragraphs) thereafter be entitled to receive solely the Purchase Price or Change of Control Purchase
Price, as the case may be, with respect to such Security. Such Purchase Price or Change of Control Purchase Price shall be paid to such Holder, subject to receipts of funds and/or securities by the
Paying Agent, promptly following the later of (x) the Purchase Date or the Change of Control Purchase Date, as the case may be, with respect to such Security (provided the conditions in
Section 3.7(a) or Section 3.8(c), as applicable, have been satisfied) and (y) the time of delivery of such Security to the Paying Agent by the Holder thereof in the manner
required by Section 3.7(a) or Section 3.8(c), as applicable. Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been given by the Holder thereof
may not be converted pursuant to Article Ten hereof on or after the date of the delivery of such Purchase Notice or Change of Control Purchase Notice unless such Purchase Notice or Change of Control
Purchase Notice has first been validly withdrawn as specified in the following two paragraphs. 

    A
Purchase Notice or Change of Control Purchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the Paying Agent in accordance with the
Purchase Notice or Change of Control Purchase Notice, as the case may be, at any time prior to the close of business on the Purchase Date or the Change of Control Purchase Date, as the case may be,
specifying: 

	(1)
	the
certificate number, if any, of the Security in respect of which such notice of withdrawal is being submitted,

	(2)
	the
principal amount of the Security with respect to which such notice of withdrawal is being submitted, and

	(3)
	the
principal amount, if any, of such Security which remains subject to the original Purchase Notice or Change of Control Purchase Notice, as the case may be, and which has been or
will be delivered for purchase by the Company. 

    A
written notice of withdrawal of a Purchase Notice may be in the form set forth in the preceding Section or may be in the form of (i) a conditional withdrawal contained in a
Purchase Notice pursuant to the terms of Section 3.7(a)(1)(D) or (ii) a conditional withdrawal containing the information set forth in Section 3.7(a)(1)(D) and the preceding
Section and contained in a written notice of withdrawal delivered to the Paying Agent as set forth in the preceding paragraph. 

    A
written notice of withdrawal of a Change of Control Purchase Notice may be in the form set forth in the preceding Section or may be in the form of (i) a conditional
withdrawal contained in a Purchase Notice pursuant to the terms of Section 3.8(c)(4) or (ii) a conditional withdrawal containing the information set forth in Section 3.8(c)(4) and
the preceding Section and contained in a written notice of withdrawal delivered to the Paying Agent as set forth in the preceding paragraph. 

25

 

    There shall be no purchase of any Securities pursuant to Section 3.7 or 3.8 if there has occurred (prior to, on or after, as the case may be, the giving, by the Holders of such
Securities, of the required Purchase Notice or Change of Control Purchase Notice, as the case may be) and is continuing an Event of Default (other than a default in the payment of the Purchase Price
or Change of Control Purchase Price, as the case may be, with respect to such Securities). The Paying Agent will promptly return to the respective Holders thereof any Securities (x) with
respect to which a Purchase Notice or Change of Control Purchase Notice, as the case may be, has been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an
Event of Default (other than a default in the payment of the Purchase Price or Change of Control Purchase Price, as the case may be, with respect to such Securities) in which case, upon such return,
the Purchase Notice or Change of Control Purchase Notice with respect thereto shall be deemed to have been withdrawn. 

 
 

       Section 3.11  Deposit of Purchase Price or Change of Control Purchase Price.   Prior to 10:00 a.m. (New York City Time) on the Business Day
following the Purchase Date or the Change of Control Purchase Date, as the case may be, the
Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust
as provided in Section 2.4) an amount of cash (in immediately available funds if deposited on such Business Day) or Applicable Stock, if permitted hereunder, sufficient to pay the aggregate
Purchase Price or Change of Control Purchase Price, as the case may be, of all the Securities or portions thereof which are to be purchased as of the Purchase Date or Change of Control Purchase Date,
as the case may be. 

    As
soon as practicable after the Purchase Date or Change of Control Purchase Date, as the case may be, the Company shall deliver to each Holder entitled to receive shares of
Applicable Stock through the Paying Agent, a certificate for the number of full shares of Applicable Stock issuable in payment of the Purchase Price or Change of Control Purchase Price, as the case
may be, and cash in lieu of any fractional interests. The person in whose name the certificate for the shares of Applicable Stock is registered shall be treated as a holder of record of Applicable
Stock on the Business Day following the Purchase Date or Change of Control Purchase Date, as the case may be. Subject to Section 3.9(c), no payment or adjustment will be made for dividends on
the shares of Applicable Stock the record date for which occurred on or prior to the Purchase Date or Change of Control Purchase Date, as the case may be. 

 
 

      Section 3.12  Securities Purchased in Part.   Any Certificated Security which is to be purchased only in part shall be surrendered at the office of
the Paying Agent (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in
writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Security so surrendered which is not purchased. 

 
 

      Section 3.13  Covenant to Comply With Securities Laws Upon Purchase of Securities.   When complying with the provisions of Section 3.7 or 3.8
hereof (provided that such offer or purchase constitutes an "issuer tender offer" for purposes
of Rule 13e-4 (which term, as used herein, includes any successor provision thereto) under the Exchange Act at the time of such offer or purchase), and subject to any exemptions
available under applicable law, the Company shall (i) comply with Rule 13e-4 and Rule 14e-1 (or any successor provision) under the Exchange Act,
(ii) file the related Schedule TO (or any successor schedule, form or report) under the Exchange Act, and (iii) otherwise comply with all Federal and state securities laws so as to
permit the rights and obligations under Sections 3.7 and 3.8 to be exercised in the time and in the manner specified in Sections 3.7 and 3.8. 

26

 

 
 

       Section 3.14  Repayment to the Company.   The Trustee and the Paying Agent shall return to the Company any cash or shares of Common Stock that
remain unclaimed as provided in Section 12 of the
Securities, together with interest or dividends, if any, thereon (subject to the provisions of Section 7.1(f)), held by them for the payment of the Purchase Price or Change of Control Purchase
Price, as the case may be; provided, however, that to the extent that the aggregate amount of cash or shares of Common Stock deposited by the Company pursuant to Section 3.11 exceeds the
aggregate Purchase Price or Change of Control Purchase Price, as the case may be, of the Securities or portions thereof which the Company is obligated to purchase as of the Purchase Date or Change of
Control Purchase Date, as the case may be, then, unless otherwise agreed in writing with the Company, promptly after the Business Day following the Purchase Date or Change of Control Purchase Date, as
the case may be, the Trustee shall return any such excess to the Company together with interest or dividends, if any, thereon (subject to the provisions of Section 7.1(f)). 

 
 

ARTICLE FOUR    
    
    COVENANTS    
  

 
 
       Section 4.1  Payment of Securities.   The Company shall promptly make all payments in respect of the Securities on the dates and in the manner provided
   in the Securities or pursuant to this
Indenture. Any amounts of cash or shares of Applicable Stock to be given to the Trustee or Paying Agent, shall be deposited with the Trustee or Paying Agent by 10:00 a.m., New York City time,
by the Company. Principal amount plus accrued interest, if any, including contingent interest and additional interest, if any, Redemption Price, Purchase Price, Change of Control Purchase Price and
cash interest, if any, shall be considered paid on the applicable date due if on such date (or, in the case of a Purchase Price or Change of Control Purchase Price, on the Business Day following the
applicable Purchase Date or Change of Control Purchase Date, as the case may be) the Trustee or the Paying Agent holds, in accordance with this Indenture, cash or securities, if permitted hereunder,
sufficient to pay all such amounts then due. 

 
 

      Section 4.2  SEC and Other Reports.   The Company shall not be required to provide the Trustee copies of its annual report and of the information,
documents and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, to
the extent such reports, information, documents and other reports are available via the internet to the general public. In the event the Company is at any time no longer subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, it shall provide the Trustee with reports containing substantially the same information as would have been required to be filed in its
annual and quarterly reports with the SEC had the Company continued to have been subject to such reporting requirements. In such event, such reports shall be provided at the times the Company would
have been required to provide reports had it continued to have been subject to such reporting requirements. The Company also shall comply with the other provisions of TIA Section 314(a).
Retrieval by the Trustee, or delivery of such reports, information and documents to the Trustee, is for informational purposes only and the Trustee's receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely conclusively on Officers' Certificates). 

 
 

       Section 4.3  Compliance Certificate.   The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the
Company (beginning with the fiscal year ending on
April 26, 2002) an Officers' Certificate, stating whether or not to the knowledge of the signers thereof, the Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided 

27

 

hereunder) and if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. 

 
 

      Section 4.4  Further Instruments and Acts.   Upon request of the Trustee, the Company will execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to
carry out more effectively the purposes of this Indenture. 

 
 

       Section 4.5  Maintenance of Office or Agency.   The Trustee will maintain (and the Company, to the extent the Trustee is not also the Registrar,
Paying Agent or Conversion Agent, will ensure that the
Registrar, Paying Agent and Conversion Agent maintain), in the Borough of Manhattan, the City of New York, an office or agency of the Trustee, Registrar, Paying Agent and Conversion Agent where
Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer, exchange, purchase, redemption or conversion and where notices and demands to
or upon the Company in respect of the Securities and this Indenture may be served. The office of Wells Fargo Bank, N.A., 45 Broadway, 12th Floor, MAC N2666-120, New York, NY 10006
(Attention: Corporate Trust Administration), shall initially be such office or agency for all of the aforesaid purposes. 

 
 

       Section 4.6  Delivery of Certain Information.   At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder or any beneficial owner of
Securities or holder or beneficial owner of shares of Common Stock issued upon conversion thereof, or in accordance with Section 3.8(c), the Company will promptly furnish or cause to be
furnished Rule 144A Information (as defined below) to such Holder or any beneficial owner of Securities or holder or beneficial owner of shares of Common Stock, or to a prospective purchaser of
any such security designated by any such holder, as the case may be, to the extent required to permit compliance by such Holder or holder with Rule 144A under the Securities Act in connection
with the resale of any such security. "Rule 144A Information" shall be such information as is specified pursuant to Rule 144A(d)(4) under the Securities Act. Whether a person is a
beneficial owner shall be determined by the Company to the Company's reasonable satisfaction. 

 
 

      Section 4.7  Tax Treatment of Securities.   The Company agrees, and by acceptance of a beneficial ownership interest in the Securities, each
beneficial holder of Securities will be deemed to have agreed,
for United States federal income tax purposes, to treat the Securities as indebtedness that is subject to Section 1.1275-4 of the United States Treasury Regulations (the "Contingent
Debt Regulations"). A holder of Securities may obtain the comparable yield and projected payment schedule by submitting a written request for it to the Company at the following address:
Medtronic, Inc., 710 Medtronic Parkway, Minneapolis, MN 55432, Attention: Treasury Department or telephoning (763) 514-4000. 

 
 

ARTICLE FIVE    
    
    SUCCESSOR CORPORATION    
  

 
 
      Section 5.1  When Company May Merge or Transfer Assets.   The Company shall not consolidate with or merge with or into any other Person or convey,
  transfer, sell, lease or otherwise dispose of all or substantially all
of its properties and assets to any Person, unless: 

    (a) either
(1) the Company shall be the continuing corporation or (2) the Person (if other than the Company) formed by such consolidation or into which
the Company is merged or the Person which acquires by conveyance, transfer or lease all or substantially all of the properties and assets of the Company substantially as an entirety (i) shall
be organized and validly existing under the laws of (A) the United States or any State thereof or the District of Columbia or (B) Bermuda or the Cayman Islands and (ii) shall
expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all of the obligations of the Company under the Securities
and this Indenture; 

28

 

    (b) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and 

    (c) the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such (A) consolidation, merger,
conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, comply with this Article Five and that all conditions
precedent herein provided for relating to such transaction have been satisfied and (B) in the case of a merger or consolidation in which the Company is not the continuing corporation and in
which the successor to the Company is an entity organized under the laws of Bermuda or the Cayman Islands, that such merger will not result in any material adverse consequences to any Holders of the
Securities. 

    For
purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or more Subsidiaries (other than to the Company or another
Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially all of the properties and assets of the Company, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company. 

    The
successor Person formed by such consolidation or into which the Company is merged or the successor Person to which such conveyance, transfer or lease is made shall succeed to, and
be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had been named as the Company herein; and thereafter, except
in the case of a lease and obligations the Company may have under a supplemental indenture, the Company shall be discharged from all obligations and covenants under this Indenture and the Securities.
Subject
to Section 9.6, the Company, the Trustee and the successor Person shall enter into a supplemental indenture to evidence the succession and substitution of such successor Person and such
discharge and release of the Company. 

 
 

ARTICLE SIX    
    
    DEFAULTS AND REMEDIES    
  

 
 
      Section 6.1  Events of Default.   So long as any Securities are outstanding, each of the following shall be an "Event of Default": 

    (1) the
Company fails to convert any portion of the principal amount of any Security following the exercise by the Holder of the right to convert such Security into
Common Stock pursuant to and in accordance with Article Ten hereof; 

    (2) the
Company defaults in its obligation to repurchase any Security, or any portion thereof, upon the exercise by the Holder of such Holder's right to require the
Company to purchase such Securities pursuant to and in accordance with Section 3.7 and 3.8 hereof; 

    (3) the
Company defaults in its obligation to redeem any Security, or any portion thereof, called for redemption by the Company pursuant to and in accordance with
Section 3.1 hereof. 

    (4) the
Company defaults in the payment of the principal amount on any Security when the same becomes due and payable at its Stated Maturity; 

    (5) the
Company defaults in the payment of any accrued and unpaid interest, including contingent interest or additional interest, if any, in each case, when due and
payable, and continuance of such default for a period of 30 days; 

    (6) the
Company fails to comply with any other term, agreement or covenant in the Securities or this Indenture (other than those referred to in clause (1)
through (5) above) and such failure continues for 60 days after receipt by the Company of a Notice of Default; 

29

 

    (7) a failure to pay when due at maturity or a default that results in the acceleration of maturity of any indebtedness for borrowed money of the Company or any
Designated Subsidiary in an aggregate amount of $100.0 million or more, unless the acceleration is rescinded, stayed or annulled within 30 days after written notice of default is given
to the Company by the Trustee or Holders of not less than 25% in aggregate principal amount of the Securities then outstanding; 

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

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

    A
Default under clause (6) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in aggregate principal amount of the
Securities at the time outstanding notify the Company and the Trustee, of the Default and the Company does not cure such Default (and such Default is not waived) within the time specified in
clause (6) above after actual receipt of such notice. Any such notice must specify the Default, demand that it be remedied and state that such notice is a "Notice of Default." 

    The
Trustee shall, within 60 days of the occurrence of a Default, give to the Holders of the Securities notice of all uncured Defaults known to it, the status of each such
Default and what action the Company is taking or proposes to take with respect thereto; provided, however, the Trustee shall be
protected in withholding such notice if it, in good faith, determines that the withholding of such notice is in the best interest of such Holders, except in the case of a Default in the payment of the
principal of or interest on any of the Securities when due or in the payment of any redemption or purchase obligation of the Company. 

 
 

       Section 6.2  Acceleration.   If an Event of Default (other than an Event of Default specified in Section 6.1(8) or (9)) occurs and is
continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding by notice to the Company and the Trustee, may declare the principal amount plus accrued
and unpaid interest, including contingent interest and additional interest, if any, on all the Securities to be immediately due and payable. Upon such a declaration, such accelerated amount shall be
due and payable immediately. If an Event of Default specified in Section 6.1(8) or (9) occurs and is continuing, the principal amount plus accrued and unpaid interest, including
contingent interest and additional interest, if any, on all the Securities shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any
Securityholders. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by notice to the Trustee (and without notice to any other Securityholder) may
rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived except nonpayment of the
principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, that have become due solely as a result of acceleration and if all amounts due to the
Trustee under Section 7.7 have been paid. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 

30

  

 
 

       Section 6.3  Other Remedies.   If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment
of the principal amount plus accrued and
unpaid interest, including contingent interest and additional interest, if any, on the Securities or to enforce the performance of any provision of the Securities or this Indenture. 

    The
Trustee may maintain a proceeding even if the Trustee does not possess any of the Securities or does not produce any of the Securities in the proceeding. A delay or omission by
the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of
Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 

 
 

       Section 6.4  Waiver of Past Defaults.   The Holders of a majority in aggregate principal amount of the Securities at the time outstanding, by
notice to the Trustee (and without notice to any other
Securityholder), may waive an existing Default and its consequences except: 

	(1)
	an
Event of Default described in Section 6.1(1) or (2);

	(2)
	a
Default in respect of a provision that under Section 9.2 cannot be amended without the consent of each Securityholder affected; or

	(3)
	a
Default which constitutes a failure to convert any Security in accordance with the terms of Article Ten. When a Default is waived, it is deemed cured, but no such waiver shall
extend to any subsequent or other Default or impair any consequent right. This Section 6.4 shall be in lieu of Section 316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby
expressly excluded from this Indenture, as permitted by the TIA. 

 
 

       Section 6.5  Control by Majority.   The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may direct
the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in personal liability unless the Trustee is offered
indemnity satisfactory to it. This Section 6.5 shall be in
lieu of Section 316(a)1(A) of the TIA and such Section 316(a)1(A) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

 
 

       Section 6.6  Limitation on Suits.   A Securityholder may not pursue any remedy with respect to this Indenture or the Securities unless: 

	(1)
	the
Holder gives to the Trustee written notice stating that an Event of Default is continuing;

	(2)
	the
Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding make a written request to the Trustee to pursue the remedy;

	(3)
	such
Holder or Holders offer to the Trustee security or indemnity satisfactory to the Trustee against any loss, liability or expense;

	(4)
	the
Trustee does not comply with the request within 60 days after receipt of such notice, request and offer of security or indemnity; and

	(5)
	the
Holders of a majority in aggregate principal amount of the Securities at the time outstanding do not give the Trustee a direction inconsistent with the request during such
60-day period. 

    A
Securityholder may not use this Indenture to prejudice the rights of any other Securityholder or to obtain a preference or priority over any other Securityholder. 

 
 

       Section 6.7  Rights of Holders to Receive Payment.   Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of the principal amount, Redemption Price, 

31

 

Purchase Price, Change of Control Purchase Price or interest, including contingent interest and additional interest, if any, in respect of the Securities held by such Holder, on or after the
respective due dates expressed in the Securities or any Redemption Date, and to convert the Securities in accordance with Article Ten, or to bring suit for the enforcement of any such payment on or
after such respective dates or the right to convert, shall not be impaired or affected adversely without the consent of such Holder. 

 
 

      Section 6.8  Collection Suit by Trustee.   If an Event of Default described in Section 6.1(2), (3) or (4) occurs and is continuing,
the Trustee may recover judgment in its own name
and as trustee of an express trust against the Company for the whole amount owing with respect to the Securities and the amounts provided for in Section 7.7. 

 
 

       Section 6.9  Trustee May File Proofs of Claim.   In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the
principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or interest, including contingent interest and additional interest, if any, in respect of the Securities shall then
be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of any such amount) shall be
entitled and empowered, by intervention in such proceeding or otherwise, 

    (a) to
file and prove a claim for the whole amount of the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price, or interest, including
contingent interest and additional interest, if any, and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel or any other amounts due the Trustee under Section 7.7) and of the Holders allowed in such
judicial proceeding, and 

    (b) to
collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.7. 

    Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

 
 

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

    FIRST:
to the Trustee for amounts due under Section 7.7; 

    SECOND:
to Securityholders for amounts due and unpaid on the Securities for the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or interest,
including contingent interest and additional interest, if any, as the case may be, ratably, without preference or priority of any kind, according to such amounts due and payable on the Securities; and 

    THIRD:
the balance, if any, to the Company. 

32

 

    The
Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10. At least 15 days before such record date, the
Trustee shall mail to each Securityholder and the Company a notice that states the record date, the payment date and the amount to be paid. 

 
 

       Section 6.11  Undertaking for Costs.   In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the
Trustee for any action taken or omitted by it as
Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in aggregate principal amount
of the Securities at the time outstanding. This Section 6.11 shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded from this
Indenture, as permitted by the TIA. 

 
 

      Section 6.12  Waiver of Stay, Extension or Usury Laws.   The Company covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now or at any time hereafter in force, which would prohibit or forgive the Company from paying all or
any portion of the principal amount, Redemption Price, Purchase Price or Change of Control Purchase Price in respect of Securities, or any interest, including contingent interest and additional
interest, if any, on such amounts, as contemplated herein, or which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted. 

 
 

ARTICLE SEVEN    
    
    TRUSTEE    
  

 
 
       Section 7.1  Duties of Trustee.   (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers
   vested in it by this Indenture and use the
same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. 

    (b) Except
during the continuance of an Event of Default: 

	(1)
	the
Trustee need perform only those duties that are specifically set forth in this Indenture and no others; and

	(2)
	in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture, but in the case of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture, but need
not confirm or investigate the accuracy of mathematical calculations or other facts stated therein. This Section 7.1(b) shall be in lieu of Section 315(a) of the TIA and such
Section 315(a) is hereby expressly excluded from this Indenture, as permitted by the TIA. 

33

 

    (c) The
Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 

	(1)
	this
Section (c) does not limit the effect of Section (b) of this Section 7.1;

	(2)
	the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

	(3)
	the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5. 

Subparagraphs
(c)(1), (2) and (3) shall be in lieu of Sections 315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly
excluded from this Indenture, as permitted by the TIA. 

    (d) Every
provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 7.1. 

    (e) The
Trustee may refuse to perform any duty or exercise any right or power or extend or risk its own funds or otherwise incur any financial liability unless it
receives indemnity satisfactory to it against any loss, liability or expense. 

    (f)  Money
held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee (acting in any capacity
hereunder) shall be under no liability for interest on any money received by it hereunder unless otherwise agreed in writing with the Company. 

 
 

      Section 7.2  Rights of Trustee.   Subject to its duties and responsibilities under the TIA, 

    (a) the
Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented
by the proper party or parties; 

    (b) whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers' Certificate; 

    (c) the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 

    (d) the
Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith which it believes to be authorized or within its rights
or powers conferred under this Indenture; 

    (e) the
Trustee may consult with counsel selected by it and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 

    (f)  the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the
Holders, pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee security or 

34

 

indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby; 

    (g) any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution; 

    (h) the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation; 

    (i)  the
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture; 

    (j)  the
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other person employed to act hereunder; and 

    (k) the
Trustee may request that the Company deliver an Officers' Certificate setting forth the names of individuals and/or titles of officers authorized at such time
to take specified actions pursuant to this Indenture, which Officers' Certificate may be signed by any person authorized to sign an Officers' Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded. 

 
 

      Section 7.3  Individual Rights of Trustee.   The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and
may otherwise deal with the Company or its Affiliates
with the same rights it would have if it were not the Trustee. Any Paying Agent, Registrar, Conversion Agent or co-registrar may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11. 

 
 

      Section 7.4  Trustee's Disclaimer.   The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it
shall not be accountable for the Company's use or
application of the proceeds from the Securities, it shall not be responsible for any statement in any offering document for the Securities, this Indenture or the Securities (other than its certificate
of authentication), or the determination as to which beneficial owners are entitled to receive any notices hereunder. 

 
 

      Section 7.5  Notice of Defaults.   If a Default occurs and if it is known to the Trustee, the Trustee shall give to each Securityholder notice of
the Default within 90 days after it
occurs or, if later, within 15 days after it is known to the Trustee, unless such Default shall have been cured or waived before the giving of such notice. Notwithstanding the preceding
sentence, except in the case of a Default described in Section 6.1(1) or (2), the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interest of the Securityholders. The preceding sentence shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby
expressly excluded from this Indenture, as permitted by the TIA. The Trustee shall not be deemed to have knowledge of a Default unless a Responsible Officer of the Trustee has received written notice
of such Default, which notice specifically references this Indenture and the Securities. 

35

  

 
 

      Section 7.6  Reports by Trustee to Holders.   Within 60 days after each August 15 beginning with the August 15 following the date of
this Indenture, the Trustee shall mail to each
Securityholder a brief report dated as of such August 15 that complies with TIA Section 313(a), if required by such Section 313(a). The Trustee also shall comply with TIA
Section 313(b). 

    A
copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each securities exchange, if any, on which the Securities are listed. The Company
agrees to notify the Trustee promptly whenever the Securities become listed on any securities exchange and of any delisting thereof. 

 
 

       Section 7.7  Compensation and Indemnity.   The Company agrees: 

    (a) to
pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services rendered by it
hereunder (which compensation shall not be limited (to the extent permitted by law) by any provision of law in regard to the compensation of a trustee of an express trust); 

    (b) to
reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and 

    (c) to
indemnify the Trustee or any predecessor Trustee and their agents for, and to hold them harmless against, any loss, damage, claim, liability, cost or expense
(including attorney's fees and expenses, and taxes (other than taxes based upon, measured by or determined by the income of the Trustee)) incurred without negligence or bad faith on its part, arising
out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim (whether asserted by the Company or any Holder or
any other person) or liability in connection with the exercise or performance of any of its powers or duties hereunder. 

    To
secure the Company's payment obligations in this Section 7.7, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the
Trustee, except that held in trust to pay
the principal amount, Redemption Price, Purchase Price, Change of Control Purchase Price or interest, including contingent interest and additional interest, if any, as the case may be, on particular
Securities. 

    The
Company's payment obligations pursuant to this Section 7.7 shall survive the discharge of this Indenture and the resignation or removal of the Trustee. When the Trustee
incurs expenses after the occurrence of a Default specified in Section 6.1(8) or (9), the expenses including the reasonable charges and expenses of its counsel, are intended to constitute
expenses of administration under any bankruptcy law. 

 
 

      Section 7.8  Replacement of Trustee.   The Trustee may resign by so notifying the Company; provided, however, no such resignation shall be effective
until a successor Trustee has accepted its
appointment pursuant to this Section 7.8. The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may remove the Trustee by so notifying the Trustee
and the Company. The Company shall remove the Trustee if: 

    (1) the
Trustee fails to comply with Section 7.10; 

    (2) the
Trustee is adjudged bankrupt or insolvent; 

    (3) a
receiver or public officer takes charge of the Trustee or its property; or 

    (4) the
Trustee otherwise becomes incapable of acting. 

36

 

    If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint, by resolution of its Board of Directors, a
successor Trustee. 

    A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the
Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee,
subject to the lien provided for in Section 7.7. 

    If
a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding may petition any court of competent jurisdiction at the expense of the Company for the appointment of a successor Trustee. 

    If
the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee. 

 
 

      Section 7.9  Successor Trustee by Merger.   If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another
corporation, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 

 
 

       Section 7.10  Eligibility; Disqualification.   The Trustee shall at all times satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The
Trustee (or its parent holding company) shall have a combined
capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. Nothing herein contained shall prevent the Trustee from filing with the SEC the
application referred to in the penultimate paragraph of TIA Section 310(b). 

 
 

       Section 7.11  Preferential Collection of Claims Against Company.   The Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or
been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 

 
 

ARTICLE EIGHT    
    
    DISCHARGE OF INDENTURE    
  

 
 

       Section 8.1  Discharge of Liability on Securities.   When (i) the Company delivers to the Trustee all outstanding Securities (other than
Securities replaced or repaid pursuant to Section 2.7) for
cancellation or (ii) all outstanding Securities have become due and payable and the Company deposits with the Trustee cash sufficient to pay all amounts due and owing on all outstanding
Securities (other than Securities replaced pursuant to Section 2.7), and if in either
case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject to Section 7.7, cease to be of further effect. The Trustee shall join in the execution
of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers' Certificate and Opinion of Counsel and at the cost
and expense of the Company. 

 
 

      Section 8.2  Repayment to the Company.   The Trustee and the Paying Agent shall return to the Company upon written request any money or securities
held by them for the payment of any amount with
respect to the Securities that remains unclaimed for two years, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the
Company for payment as general creditors unless an applicable abandoned property law designates another person and the Trustee and the Paying Agent shall have no further liability to the
Securityholders with respect to such money or securities for that period commencing after the return thereof. 

37

 
 
 

ARTICLE NINE    
    
    AMENDMENTS    
  

 
 

      Section 9.1  Without Consent of Holders.   The Company and the Trustee may amend this Indenture or the Securities without the consent of any
Securityholder to: 

    (a) add
to the covenants of the Company for the benefit of the Holders of Securities; 

    (b) surrender
any right or power herein conferred upon the Company; 

    (c) provide
for conversion rights of Holders of Securities if any reclassification or change of the Common Stock or any consolidation, merger or sale of all or
substantially all of the Company's assets occurs; 

    (d) provide
for the assumption of the Company's obligations to the Holders of Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant
to Article Five hereof; 

    (e) reduce
the Conversion Price; provided, however, that such reduction in the Conversion Price shall not adversely
affect the interests of the Holders of Securities (after taking into account tax and other consequences of such reduction); 

    (f)  comply
with the requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 

    (g) make
any changes or modifications necessary in connection with the registration of the Securities under the Securities Act as contemplated in the Registration
Rights Agreement; provided, however, that such action pursuant to this clause (g) does not, in the good faith opinion of the Chief Executive
Officer of the Company and the Trustee, adversely affect the interests of the Holders of Securities in any material respect; 

    (h) cure
any ambiguity or correct or supplement any provision herein which may be inconsistent with any other provision herein or which is otherwise defective, or to
make any other provisions with respect to matters or questions arising under this Indenture which the Company may deem necessary or desirable and which shall not be inconsistent with the provisions of
this Indenture; provided, however, that such action pursuant to this clause (h) either (i) is consistent with the description of such
provision or provisions contained in the Offering Memorandum dated September 6, 2001 relating to the Securities or (ii) does not, in the good faith opinion of the Chief Executive Officer
of the Company and the Trustee, adversely affect the interests of the Holders of Securities in any material respect; and 

    (i)  add
or modify any other provisions herein with respect to matters or questions arising hereunder which the Company and the Trustee may deem necessary or desirable
and which will not adversely affect the interests of the Holders of Securities. 

 
 

      Section 9.2  With Consent of Holders.   Except as provided below in this Section 9.2, this Indenture or the Securities may be amended, modified
or supplemented, and noncompliance in any
particular instance with any provision of this Indenture or the Securities may be waived, in each case with the written consent of the Holders of at least a majority of the principal amount of the
Securities at the time outstanding. 

    Without
the written consent or the affirmative vote of each Holder of Securities affected thereby, an amendment or waiver under this Section 9.2 may not: 

    (a) change
the maturity of the principal amount of, or any installment of interest, including contingent interest or additional interest, on, any Security; 

38

 

    (b) reduce the principal amount of, or interest, including contingent interest or additional interest, payable on the Securities, or the Redemption Price, Purchase
Price or Change of Control Purchase Price of any Security; 

    (c) impair
or adversely affect the conversion rights of any Holder of Securities; 

    (d) reduce
the value of the Common Stock to which reference is made in determining whether an interest adjustment will be made on the Securities, or change the method
by which this value is calculated; 

    (e) change
the currency of any amount owed or owing under the Security or any interest thereon from U.S. Dollars or change the place of payment on any Security; 

    (f)  alter
or otherwise modify the rate of interest, including contingent interest or additional interest, on any Security, or the manner of calculation thereof, or
extend time for payment of any amounts due and payable to the Holders of the Securities; 

    (g) impair
the right of any Holder to institute suit for the enforcement of any payment or with respect to, or conversion of, any Security; 

    (h) except
as otherwise permitted or contemplated by provisions concerning corporate reorganizations, adversely affect the purchase right of the Holders of the
Securities as provided in Article Three or the right of the Holders of the Securities to convert any Security as provided in Article Ten; 

    (i)  modify
the provisions of Article Three in a manner adverse to the Holders of the Securities; 

    (j)  modify
any of the provisions of this Section, or reduce the principal amount of outstanding Securities required to waive a Default, except to provide that certain
other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each outstanding Security affected thereby; or 

    (k) reduce
the percentage of the principal amount of the outstanding Securities the consent of whose Holders is required for any such supplemental indenture or the
consent of whose Holders is required for any waiver provided for in this Indenture. 

    It
shall not be necessary for the consent of the Holders under this Section 9.2 to approve the particular form of any proposed amendment, but it shall be sufficient if such
consent approves the substance thereof. 

    After
an amendment under this Section 9.2 becomes effective, the Company shall mail to each Holder a notice briefly describing the amendment. 

    Nothing
in this Section 9.2 shall impair the ability of the Company and the Trustee to amend this Indenture or the Securities without the consent of any Securityholder to
provide for the assumption of the Company's obligations to the Holders of Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant to Article Five hereof. 

 
 

       Section 9.3  Compliance with Trust Indenture Act.   Every supplemental indenture executed pursuant to this Article shall comply with the TIA.

39

  

 
 

       Section 9.4  Revocation and Effect of Consents, Waivers and Actions.   Until an amendment, waiver or other action by Holders becomes effective, a
consent thereto by a Holder of a Security hereunder is a continuing consent by the
Holder and every subsequent Holder of that Security or portion of the Security that evidences the same obligation as the consenting Holder's Security, even if notation of the consent, waiver or action
is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder's Security or portion of the Security if the Trustee receives the
notice of revocation before the date the amendment, waiver or action becomes effective. After an amendment, waiver or action becomes effective, it shall bind every Securityholder. 

 
 

      Section 9.5  Notation on or Exchange of Securities.   Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
outstanding Securities. 

 
 

      Section 9.6  Trustee to Sign Supplemental Indentures.   The Trustee shall sign any supplemental indenture authorized pursuant to this Article Nine
if the amendment contained therein does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign such supplemental indenture. In signing such supplemental indenture the Trustee shall receive,
and (subject to the provisions of Section 7.1) shall be fully protected in relying upon, an Officers' Certificate and an Opinion of Counsel stating that such amendment is authorized or
permitted by this Indenture. 

 
 

      Section 9.7  Effect of Supplemental Indentures.   Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 

 
 

ARTICLE TEN    
    
    CONVERSIONS    
  

 
 
      Section 10.1  Conversion Privilege.   (a) Subject to and upon compliance with the provisions of this Article Ten, a Holder of a Security shall have
  the right, at such Holder's option, to
convert all or any portion (if the portion to be converted is $1,000 or a whole multiple of $1,000) of such Security into shares of Common Stock at the Conversion Price in effect on the date of
conversion: 

    (1) during
any fiscal quarter or, commencing on August 2, 2021, on any Business Day, if the Sale Price of the Common Stock was more than 110% of the Conversion
Price for at least (a) 20 Trading Days in the 30 consecutive Trading Days ending on the last Trading Day of the immediately preceding fiscal quarter or (b) after July 30, 2021 and
prior to the conversion date, one Trading Day; 

    (2) during
any five Business Day period, if the Trading Prices of the Securities for the 10 Consecutive Trading Day period ending on the Trading Day immediately prior
to such five Business Day period was less than 95% of the Conversion Value of the Securities on each day during that 10 Consecutive Trading Day period; provided, however, that if on the conversion
date of a Security pursuant to this paragraph (2) the Sale Price of the Common Stock is greater than the Conversion Price, and the Securities are not convertible pursuant to any other paragraph
of this Section 10.1, the Company may elect to pay, in lieu of Common Stock based on the Conversion Price, cash or Common Stock or a combination of cash and Common Stock, at its option, with a
value as of the conversion date equal to the principal amount of the Security to be 

40

 

converted, plus any accrued and unpaid interest to the conversion date (a "Principal Value Conversion"); 

    (3) at
any time prior to the close of business on the second Business Day preceding the Redemption Date, if such Security has been called for redemption pursuant to
Article Three hereof; or 

    (4) as
provided in Section (b) of this Section 10.1. 

    The
Conversion Agent shall, on behalf of the Company, determine on a daily basis whether the Securities shall be convertible as a result of the occurrence of an event specified in
clause (1) or clause (2) above and, if the Securities shall be so convertible, the Conversion Agent shall promptly deliver to the Company and the Trustee written notice thereof. Whenever
the Securities shall become convertible pursuant to this Section 10.1, the Company or, at the Company's request, the Trustee in the name and at the expense of the Company, shall notify the
Holders of the event triggering such
convertibility in the manner provided in Section 11.2, and the Company shall also publicly announce such information and publish it on the Company's Web site. Any notice so given shall be
conclusively presumed to have been duly given, whether or not the Holder receives such notice. 

    In
the event that a Holder surrenders a Security for conversion, and the Company elects a Principal Value Conversion pursuant to paragraph (2) above, the Company or, at the
Company's request, the Trustee in the name and at the expense of the Company, shall notify the Holder by the second Trading Day following the conversion date whether the Company shall pay to the
Holder all or a portion of the principal amount, plus any accrued and unpaid interest, in cash, Common Stock or a combination of cash and Common Stock and, if a combination, the percentages of the
principal amount, plus any accrued and unpaid interest, in respect of which it will pay in cash or Common Stock. Any Common Stock to be delivered upon a Principal Value Conversion shall be valued at
the greater of (x) the Conversion Price on the conversion date and (y) the Sale Price on the third Trading Day after the conversion date. 

	(b)
	In
addition, in the event that: 

    (1) (A)
the Company distributes to all holders of its shares of Common Stock rights or warrants entitling them (for a period expiring within 60 days of the
Record Date for such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the Sale Price of the Common Stock on the Business Day immediately preceding the
announcement of such distribution, or (B) the Company distributes to all holders of its shares of Common Stock, cash or other assets, debt securities or rights or warrants to purchase its
securities, where the Fair Market Value (as determined by the Board of Directors) of such distribution per share of Common Stock exceeds 15% of the Sale Price of a share of Common Stock on the
Business Day immediately preceding the date of declaration of such distribution, then, in either case, the Securities may be surrendered for conversion at any time on and after the date that the
Company gives notice to the Holders of such right, which shall be not less than 20 days prior to the Ex-Dividend Time for such distribution, until the earlier of the close of
business on the Business Day immediately preceding the Ex-Dividend Time or the date the Company announces that such distribution will not take place;  provided that, no adjustment to the Conversion Price
or the ability of a Holder of a Security to convert will be made if the Holder will otherwise
participate in such distribution without conversion; or 

    (2) the
Company consolidates with or merges into another corporation, or is a party to a binding share exchange pursuant to which the shares of Common Stock would be
converted into cash, securities or other property as set forth in Section 10.4 hereof, then the Securities may be surrendered for conversion at any time from and after the date which is
15 days prior 

41

 

to the date announced by the Company as the anticipated effective time of such transaction until 15 days after the actual date of such transaction. 

    "Conversion
Value", on any day, means the product of the Sale Price for the Common Stock multiplied by the then-current Conversion Rate. 

    "Ex-Dividend
Time" means, with respect to any issuance or distribution on shares of Common Stock, the first date on which the shares of Common Stock trade regular way on
the principal securities market on which the shares of Common Stock are then traded without the right to receive such issuance or distribution. 

    The
"Trading Price" of the Securities, on any date of determination, means the average of the secondary market bid quotations per Security obtained by the Calculation Agent for
$10,000,000 principal amount at maturity of Securities at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers
selected by the Company, provided that if at least three such bids cannot reasonably be obtained by the Calculation Agent, but two such bids are obtained, then the average of the two bids shall be
used, and if only one such bid can reasonably be obtained by the Calculation Agent, this one bid shall be used. If the Calculation Agent cannot reasonably obtain at least one bid for $10,000,000
principal amount at maturity of Securities from a nationally recognized securities dealer or in the reasonable judgment of the Company, the bid quotations are not indicative of the secondary market
value of the Securities, then the trading price of the Securities will equal (a) the then-applicable Conversion Rate multiplied by (b) the Sale Price of the Common Stock on
such determination date. 

    The
"Conversion Rate", at any time, shall equal (A) $1,000 divided by the Conversion Price at such time, rounded to four decimal
places (rounded up if the fifth decimal place thereof is 5 or more and otherwise rounded down). 

 
 

       Section 10.2  Conversion Procedure; Conversion Price; Fractional Shares.   

    (a) Each
Security shall be convertible at the office of the Conversion Agent into fully paid and nonassessable shares (calculated to the nearest 1/100th of a share) of
Common Stock. The Security will be converted into shares of Common Stock at the Conversion Price therefor. No payment or adjustment shall be made in respect of dividends on the Common Stock or accrued
interest on a converted Security, except as described in Section 10.9 hereof. The Company shall not issue any fraction of a share of Common Stock in connection with any conversion of
Securities, but instead shall, subject to Section 10.3(h) hereof, make a cash payment (calculated to the nearest cent) equal to such fraction multiplied by the Sale Price of the Common Stock on
the last Trading Day prior to the date of conversion. Notwithstanding the foregoing, a Security in respect of which a Holder has delivered a Purchase Notice or Change of Control Purchase Notice
exercising such Holder's option to require the Company to repurchase such Security may be converted only if such notice of exercise is withdrawn in accordance with the Section 3.10 hereof. 

    (b) Before
any Holder of a Security shall be entitled to convert the same into Common Stock, such Holder shall, in the case of Securities issued in global form, comply
with the procedures of the Depositary in effect at that time, and in the case of definitive Securities, surrender such Securities, duly endorsed to the Company or in blank, at the office of the
Conversion Agent, and shall give written notice to the Company at said office or place that such Holder elects to convert the same and shall state in writing therein the principal amount of Securities
to be converted and the name or names (with addresses) in which such Holder wishes the certificate or certificates for Common Stock to be issued. 

    Before
any such conversion, a Holder also shall pay all funds required, if any, relating to interest on the Securities, as provided in Section 10.9, and all taxes or duties, if
any, as provided in Section 10.8. 

42

 

    If more than one Security shall be surrendered for conversion at one time by the same Holder, the number of full shares of Common Stock which shall be deliverable upon conversion
shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof to the extent permitted thereby) so surrendered. Subject to the next succeeding
sentence, the Company will, as soon as practicable thereafter, issue and deliver at said office or place to such Holder of a Security, or to such Holder's nominee or nominees, certificates for the
number of full shares of Common Stock to which such Holder shall be entitled as aforesaid, together, subject to the last sentence of Section (a) above, with cash in lieu of any fraction of a
share to which such Holder would otherwise be entitled. The Company shall not be required to deliver certificates for shares of Common Stock while the stock transfer books for such stock or the
security register are duly closed for any purpose, but certificates for shares of Common Stock shall be issued and delivered as soon as practicable after the opening of such books or security
register. 

    (c) A
Security shall be deemed to have been converted as of the close of business on the date of the surrender of such Securities for conversion as provided above, and
the person or persons entitled to receive the Common Stock issuable upon such conversion shall be treated for all purposes as the record Holder or Holders of such Common Stock as of the close of
business on such date. 

    (d) In
case any Security shall be surrendered for partial conversion, the Company shall execute and the Trustee shall authenticate and deliver to or upon the written
order of the Holder of the Security so surrendered, without charge to such Holder (subject to the provisions of Section 10.8 hereof), a new Security or Securities in authorized denominations in
an aggregate principal amount equal to the unconverted portion of the surrendered Securities. 

 
 

      Section 10.3  Adjustment of Conversion Price for Common Stock.   

    The
Conversion Price shall be adjusted from time to time as follows: 

    (a) In
case the Company shall, at any time or from time to time while any of the Securities are outstanding, pay a dividend or make a distribution in shares of Common
Stock to all holders of its outstanding shares of Common Stock, then the Conversion Price in effect at the opening of business on the date following the record date fixed for the determination of
stockholders entitled to receive such dividend or other distribution shall be reduced by multiplying such Conversion Price by a fraction: 

	(1)
	the
numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the Record Date fixed for such determination; and

	(2)
	the
denominator of which shall be the sum of such number of shares and the total number of shares constituting such dividend or other distribution. 

    Such
reduction shall become effective immediately after the opening of business on the day following the Record Date fixed for such determination. If any dividend or distribution of
the type described in this Section 10.3(a) is declared but not so paid or made, the Conversion Price shall again be adjusted to the Conversion Price which would then be in effect if such
dividend or distribution had not been declared. 

    (b) In
case the Company shall, at any time or from time to time while any of the Securities are outstanding, subdivide its outstanding shares of Common Stock into a
greater number of shares of Common Stock, then the Conversion Price in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be
proportionately reduced, and conversely, in case the Company shall, at any time or from time to time while any of the Securities are outstanding, combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, then the Conversion Price in effect at the opening of business 

43

 

on the day following the day upon which such combination becomes effective shall be proportionately increased. 

    Such
reduction or increase, as the case may be, shall become effective immediately after the opening of business on the day following the day upon which such subdivision or
combination becomes effective. 

    (c) In
case the Company shall, at any time or from time to time while any of the Securities are outstanding, issue rights or warrants (other than any rights or warrants
referred to in Section 10.3(d)) to all holders of its shares of Common Stock entitling them to subscribe for or purchase shares of Common Stock (or securities convertible into shares of Common
Stock) at a price per share (or having a conversion price per share) less than the Sale Price on the Business Day immediately preceding the date of the announcement of such issuance (treating the
conversion price per share of the securities convertible into Common Stock as equal to (x) the sum of (i) the price for a unit of the security convertible into Common Stock and
(ii) any additional consideration initially payable upon the conversion of such security into Common Stock divided by (y) the number of shares of Common Stock initially underlying such
convertible security), then the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in effect at the opening of business on the
date after such date of announcement by a fraction: 

    (1) the
numerator of which shall be the number of shares of Common Stock outstanding on the close of business on the date of announcement, plus the number of shares or
securities which the aggregate offering price of the total number of shares or securities so offered for subscription or purchase (or the aggregate conversion price of the convertible securities so
offered) would purchase at such Sale Price of the Common Stock; and 

    (2) the
denominator of which shall be the number of shares of Common Stock outstanding at the close of business on the date of announcement, plus the total number of
additional shares of Common Stock so offered for subscription or purchase (or into which the convertible securities so offered are convertible); 

    provided
that no adjustment for a transaction referred to in this Section 10.3(c) shall be made if the Holders of the Securities may participate in the transaction on a basis
and with notice that the Board of Directors determines to be fair and appropriate in light of the basis and notice on which holders of shares of the Company's Common Stock may participate in the
transaction. 

    Such
adjustment shall become effective immediately after the opening of business on the day following the date of announcement of such issuance. To the extent that shares of Common
Stock (or securities convertible into shares of Common Stock) are not delivered pursuant to such rights or warrants, upon the expiration or termination of such rights or warrants, the Conversion Price
shall be readjusted to the Conversion Price which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of only the
number of shares of Common Stock (or securities convertible into shares of Common Stock) actually delivered. In the event that such rights or warrants are not so issued, the Conversion Price shall
again be adjusted to be the Conversion Price which would then be in effect if the date fixed for the determination of stockholders entitled to receive such rights or warrants had not been fixed. In
determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than such Sale Price, and in determining the aggregate offering price of such
shares of Common Stock, there shall be taken into account any consideration received for such rights or warrants, the value of such consideration if other than cash, to be determined by the Board of
Directors. 

44

 

    (d) In case the Company shall, at any time or from time to time while any of the Securities are outstanding, by dividend or otherwise, distribute to all holders of its
shares of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation and the Common Stock is not changed or
exchanged), shares of its capital stock (other than any dividends or distributions to which Section 10.3(a) applies), evidences of its Indebtedness or other assets, including securities, but
excluding (i) any rights or warrants referred to in Section 10.3(c), (ii) dividends or distributions of stock, securities or other property or assets (including cash) in
connection with a reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which Section 10.4 applies and (iii) dividends and
distributions paid exclusively in cash (such capital stock, evidence of its indebtedness, cash, other assets or securities being distributed hereinafter in this Section 10.3(d) called the
"distributed assets"), then, in each such case, subject to the third and fourth succeeding paragraphs, the Conversion Price shall be reduced so that the same shall be equal to the price determined by
multiplying the Conversion Price in effect immediately prior to the close of business on the Record Date with respect to such distribution by a fraction: 

    (1) the
numerator of which shall be the Current Market Price of the Common Stock, less the Fair Market Value on such date of the portion of the distributed assets so
distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the Record Date) on such date; and 

    (2) the
denominator of which shall be such Current Market Price; 

    provided
that no adjustment for a transaction referred to in this Section 10.3(d) shall be made if all Holders of the Securities may participate in the transaction. 

    Such
reduction shall become effective immediately prior to the opening of business on the day following the Record Date for such distribution. In the event that such dividend or
distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such dividend or distribution had not been declared. 

    If
the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 10.3(d) by reference to the actual or when issued trading market for
any distributed assets comprising all or part of such distribution, it must in doing so consider the prices in such market over the same period (the "Reference Period") used in computing the Current
Market Price pursuant to Section 10.3(g) to the extent possible, unless the Board of Directors determines in good faith that determining the Fair Market Value during the Reference Period would
not be in the best interest of the Holders. 

    In
the event any such distribution consists of shares of capital stock of, or similar equity interests in, one or more of the Company's Subsidiaries (a "Spin-Off"), the
Fair Market Value of the securities to be distributed shall equal the average of the closing sale prices of such securities on the principal securities market on which such securities are traded for
the five consecutive Trading Days commencing on and including the sixth day of trading of those securities after the effectiveness of the Spin-Off, and the Current Market Price shall be
measured for the same period. In the event, however, that an underwritten initial public offering of the securities in the Spin-Off occurs simultaneously with the Spin-Off,
Fair Market Value of the securities distributed in the Spin-Off shall mean the initial public offering price of such securities and the Current Market Price shall mean the Sale Price for
the Common Stock on the same Trading Day. 

45

  

    Rights
or warrants distributed by the Company to all holders of its shares of Common Stock entitling them to subscribe for or purchase shares of the Company's capital stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events ("Trigger Event"), (i) are deemed to be transferred with such shares of
Common Stock, (ii) are not exercisable and (iii) are also issued in respect of future issuances of shares of Common Stock, shall be deemed not to have been distributed for purposes of
this Section 10.3(d) (and no adjustment to the Conversion Price under this Section 10.3(d) will be required) until the occurrence of the earliest Trigger Event. If such right or warrant
is subject to subsequent events, upon the occurrence of which such right or warrant shall become exercisable to purchase different distributed assets, evidences of indebtedness or other assets, or
entitle the holder to purchase a different number or amount of the foregoing or to purchase any of the foregoing at a different purchase price, then the occurrence of each such event shall be deemed
to be the date of issuance and Record Date with respect to a new right or warrant (and a termination or expiration of the existing right or warrant without exercise by the holder thereof). In
addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto,
that resulted in an adjustment to the Conversion Price under this Section 10.3(d): 

    (1) in
the case of any such rights or warrants which shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Price shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder of shares of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of shares of
Common Stock as of the date of such redemption or repurchase; and 

    (2) in
the case of such rights or warrants which shall have expired or been terminated without exercise, the Conversion Price shall be readjusted as if such rights and
warrants had never been issued. 

    For
purposes of this Section 10.3(d) and Sections 10.3(a), 10.3(b) and 10.3(c), any dividend or distribution to which this Section 10.3(d) is applicable that also
includes (i) shares of Common Stock, (ii) a subdivision or combination of shares of Common Stock to which Section 10.3(b) applies or (iii) rights or warrants to subscribe
for or purchase shares of Common Stock to which Section 10.3(c) applies (or any combination thereof), shall be deemed instead to be: 

    (1) a
dividend or distribution of the evidences of indebtedness, assets, shares of capital stock, rights or warrants, other than such shares of Common Stock, such
subdivision or combination or such rights or warrants to which Sections 10.3(a), 10.3(b) and 10.3(c) apply, respectively (and any Conversion Price reduction required by this Section 10.3(d)
with respect to such dividend or distribution shall then be made), immediately followed by 

    (2) a
dividend or distribution of such shares of Common Stock, such subdivision or combination or such rights or warrants (and any further Conversion Price reduction
required by Sections 10.3(a), 10.3(b) and 10.3(c) with respect to such dividend or distribution shall then be made), except: 

    (A) the
Record Date of such dividend or distribution shall be substituted as (i) "the record date fixed for the determination of stockholders entitled to receive
such dividend or other distribution," "Record Date fixed for such determination" and "Record Date" within the meaning of Section 10.3(a), (ii) "the day upon which such subdivision
becomes effective" and "the day upon which such combination becomes effective" within the meaning of Section 10.3(b), and (iii) as "the date fixed for the determination of stockholders
entitled to receive such rights or warrants," "the Record Date fixed for the determination of the 

46

 

stockholders entitled to receive such rights or warrants" and "Record Date" within the meaning of Section 10.3(c); and 

    (B) any
shares of Common Stock included in such dividend or distribution shall not be deemed "outstanding at the close of business on the date fixed for such
determination" within the meaning of Section 10.3(a) and any reduction or increase in the number of shares of Common Stock resulting from such subdivision or combination shall be disregarded in
connection with such dividend or distribution. 

    (e) In
case the Company shall, at any time or from time to time while any of the Securities are outstanding, by dividend or otherwise, distribute to all holders of its
shares of Common Stock, cash (excluding any cash that is distributed upon a reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which
Section 10.4 applies or as part of a distribution referred to in Section 10.3(d)), in an aggregate amount that, combined together with: 

    (1) the
aggregate amount of any other such distributions to all holders of shares of Common Stock made exclusively in cash within the 12 months preceding the
date of payment of such distribution, and in respect of which no adjustment pursuant to this Section 10.3(e) has been made; and 

    (2) the
aggregate amount of any cash, plus the Fair Market Value (as determined by the Board of Directors) of consideration payable in respect of any tender offer by
the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock concluded within the 12 months preceding the date of such distribution, and in respect of which no
adjustment pursuant to Section 10.3(f) has been made; 

exceeds
15% of the product of the Current Market Price of the Common Stock on the Record Date with respect to such distribution, times the number of shares of Common Stock outstanding on such date,
then, and in each such case, immediately after the close of business on such date, the Conversion Price shall be reduced so that the same shall equal the price determined by multiplying the Conversion
Price in effect immediately prior to the close of business on such Record Date by a fraction: 

    (1) the
numerator of which shall be equal to the Current Market Price on the Record Date, less an amount equal to the quotient of (x) the excess of such combined
amount over such 15% and (y) the number of shares of Common Stock outstanding on the Record Date; and 

    (2) the
denominator of which shall be equal to the Current Market Price on such date. 

    In
the event that such dividend or distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such
dividend or distribution had not been declared. 

    (f)  In
case a tender offer made by the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock shall expire and such tender offer (as
amended upon the expiration thereof) shall require the payment to stockholders (based on the acceptance (up to any maximum specified in the terms of the tender offer) of shares tendered) of an
aggregate consideration having a Fair Market Value (as determined by the Board of Directors) that combined together with: 

    (1) the
aggregate amount of the cash, plus the Fair Market Value (as determined by the Board of Directors), as of the expiration of such tender offer, of consideration
payable in respect of any other tender offers by the Company or any of its Subsidiaries for all or any portion of the shares of Common Stock expiring within the 12 months preceding the
expiration of such tender offer and in respect of which no adjustment pursuant to this Section 10.3(f) has been made; and 

47

 

    (2) the aggregate amount of any distributions to all holders of shares of Common Stock made exclusively in cash within 12 months preceding the expiration of such
tender offer and in respect of which no adjustment pursuant to Section 10.3(e) has been made; 

exceeds
15% of the product of the Current Market Price of the Common Stock as of the last time (the "Expiration Time") tenders could have been made pursuant to such tender offer (as it may be
amended), times the number of shares of Common Stock outstanding (including any tendered shares) on the Expiration Time (such excess, the "Excess Amount"), then, and in each such case, immediately
prior to the opening of business on the day after the date of the Expiration Time, the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the
Conversion Price in effect immediately prior to the close of business on the date of the Expiration Time by a fraction: 

    (1) the
numerator of which shall be (x) the product of (i) the number of shares of Common Stock outstanding (including any tendered shares) at the
Expiration Time and (ii) the Current Market Price of the Common Stock at the Expiration Time, less (y) the Excess Amount; and 

    (2) the
denominator of which shall be the product of the number of shares of Common Stock outstanding (including any tendered shares) at the Expiration Time and the
Current Market Price of the Common Stock at the Expiration Time. 

    Such
reduction (if any) shall become effective immediately prior to the opening of business on the day following the Expiration Time. In the event that the Company is obligated to
purchase shares pursuant to any such tender offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all or a portion of such purchases are rescinded, the
Conversion Price shall again be adjusted to be the Conversion Price which would then be in effect if such (or such portion of the) tender offer had not been made. If the application of this
Section 10.3(f) to any tender offer would result in an increase in the Conversion Price, no adjustment shall be made for such tender offer under this Section 10.3(f). 

    Pursuant
to rights issued under the Company's preferred share purchase rights plan, if holders of the Securities exercising the right of conversion attaching after the date the rights
separate from the underlying Common Stock are not entitled to receive the rights that would otherwise be attributable to the shares of Common Stock received upon conversion, the Conversion Price will
be adjusted as though the rights were being distributed to holders of Common Stock on the date of such separation. If such an adjustment is made and the rights are later redeemed, invalidated or
terminated, then a corresponding reversing adjustment will be made to the conversion price on an equitable basis. 

    (g) For
purposes of this Article Ten, the following terms shall have the meanings indicated: 

    "Current
Market Price" on any date means the average of the daily Sale Prices per share of Common Stock for the ten consecutive Trading Days immediately prior to such date;  provided, however, that if: 

    (1) the
"ex" date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the
Conversion Price pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading Days, the Sale Price for each Trading Day prior to the "ex" date
for such other event shall be adjusted by dividing such Sale
Price by the same fraction by which the Conversion Price is so required to be adjusted as a result of such other event; 

    (2) the
"ex" date for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Price pursuant to
Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the "ex" date for the issuance or distribution requiring such computation and prior to the day in question, the Sale
Price for each Trading Day on and after the "ex" date for such other event shall be adjusted by dividing such Sale Price by the reciprocal of 

48

 

the fraction by which the Conversion Price is so required to be adjusted as a result of such other event; and 

    (3) the
"ex" date for the issuance or distribution requiring such computation is prior to the day in question, after taking into account any adjustment required
pursuant to clause (1) or (2) of this proviso, the Sale Price for each Trading Day on or after such "ex" date shall be adjusted by adding thereto the amount of any cash and the Fair
Market Value (as determined by the Board of Directors in a manner consistent with any determination of such value for purposes of Section 10.3(d), (e) or (f)) of the evidences of
Indebtedness, shares of capital stock or assets being distributed applicable to one share of Common Stock as of the close of business on the day before such "ex" date. 

For
purposes of any computation under Section 10.3(f), if the "ex" date for any event (other than the tender offer requiring such computation) that requires an adjustment to the Conversion
Price pursuant to Section 10.3(a), (b), (c), (d), (e) or (f) occurs on or after the Expiration Time for the tender or exchange offer requiring such computation and prior to the
day in question, the Sale Price for each Trading Day on and after the "ex" date for such other event shall be adjusted by dividing such Sale Price by the reciprocal of the fraction by which the
Conversion Price is so required to be adjusted as a result of such other event. For purposes of this paragraph, the term "ex" date, when used: 

    (1) with
respect to any issuance or distribution, means the first date on which the shares of Common Stock trade regular way on the relevant exchange or in the relevant
market from which the Sale Price was obtained without the right to receive such issuance or distribution; 

    (2) with
respect to any subdivision or combination of shares of Common Stock, means the first date on which the shares of Common Stock trade regular way on such
exchange or in such market after the time at which such subdivision or combination becomes effective; and 

    (3) with
respect to any tender or exchange offer, means the first date on which the shares of Common Stock trade regular way on such exchange or in such market after
the Expiration Time of such offer. 

Notwithstanding
the foregoing, whenever successive adjustments to the Conversion Price are called for pursuant to this Section 10.3, such adjustments shall be made to the Current Market Price
as may be necessary or appropriate to effectuate the intent of this Section 10.3 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 

    "Fair
Market Value" shall mean the amount which a willing buyer would pay a willing seller in an arm's length transaction (as determined by the Board of Directors, whose determination
shall be conclusive). 

    "Record
Date" shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of shares of Common Stock have the right to receive any cash,
securities or other property or in which the shares of Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date
fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise). 

    (h) The
Company shall be entitled to make such additional reductions in the Conversion Price, in addition to those required by Sections 10.3(a), (b), (c), (d),
(e) and (f), as shall be necessary, as determined by the Board of Directors, in order that any dividend or distribution of Common Stock, any subdivision, reclassification or combination of
shares of Common Stock or any issuance of rights or warrants referred to above shall not be taxable to the holders of Common Stock for United States Federal income tax purposes. 

49

  

    (i)  To
the extent permitted by applicable law, the Company may, from time to time, reduce the Conversion Price by any amount for any period of time, if such period is
at least 20 days and the reduction is irrevocable during the period. Whenever the Conversion Price is reduced pursuant to the preceding sentence, the Company shall mail to the Trustee and each
Holder at the address of such Holder as it appears in the register of the Securities maintained by the Registrar, at least 10 days prior to the date the reduced Conversion Price takes effect, a
notice of the reduction stating the reduced Conversion Price and the period during which it will be in effect. 

    (j)  In
any case in which this Section 10.3 shall require that any adjustment be made effective as of or retroactively immediately following a Record Date, the
Company may elect to defer (but only for five Trading Days following the filing of the statement referred to in Section 10.5) issuing to the Holder of any Securities converted after such Record
Date the shares of Common Stock issuable upon such conversion over and above the shares of Common Stock issuable upon such conversion on the basis of the Conversion Price prior to adjustment;  provided, however, that the Company shall deliver to such Holder a due bill or other appropriate instrument evidencing such Holder's right to receive
such additional shares upon the occurrence of the event requiring such adjustment. 

    (k) All
calculations under this Section 10.3 shall be made to the nearest cent or one-hundredth of a share, with one-half cent and 0.005
of a share, respectively, being rounded upward. Notwithstanding any other provision of this Section 10.3, the Company shall not be required to make any adjustment of the Conversion Price unless
such adjustment would require an increase or decrease of at least 1% of such price. Any lesser adjustment shall be carried forward and shall be made at the time of and together with the next
subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to an increase or decrease of at least 1% in such price. Any adjustments under this
Section 10.3 shall be made successively whenever an event requiring such an adjustment occurs. 

    (l)  In
the event that at any time, as a result of an adjustment made pursuant to this Section 10.3, the Holder of any Securities thereafter surrendered for
conversion shall become entitled to receive any shares of stock of the Company other than shares of Common Stock into which the Securities originally were convertible, the Conversion Price of such
other shares so receivable upon conversion of any such Security shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with
respect to Common Stock contained in subparagraphs (a) through (k) of this Section 10.3, and the provision of Sections 10.1, 10.2 and 10.4 through 10.9 with respect to the Common
Stock shall apply on like or similar terms to any such other shares and the determination of the Board of Directors as to any such adjustment shall be conclusive. 

    (m) No
adjustment shall be made pursuant to this Section 10.3 (i) if the effect thereof would be to reduce the Conversion Price below the par value (if
any) of the Common Stock or (ii) if the Holders of
the Securities may participate without conversion in the transaction that would otherwise give rise to an adjustment pursuant to this Section 10.3. 

 
 

      Section 10.4  Consolidation or Merger of the Company.   

    If
any of the following events occurs, namely: 

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

    (2) any
merger, consolidation, statutory share exchange or combination of the Company with another corporation as a result of which holders of Common Stock shall be
entitled to receive stock, securities or other property or assets (including cash) or any combination thereof with respect to or in exchange for such Common Stock; or 

50

 

    (3) any sale or conveyance of the properties and assets of the Company as, or substantially as, an entirety to any other corporation as a result of which holders of
Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) or any combination thereof with respect to or in exchange for such Common Stock; 

the
Company or the successor or purchasing corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture, if such supplemental indenture is then required to so comply) providing that such Securities shall be convertible into the kind and amount of shares
of stock and other securities or property or assets (including cash) or any combination thereof which such Holder would have been entitled to receive upon such reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance had such Securities been converted into Common Stock immediately prior to such reclassification, change, merger, consolidation,
statutory share exchange, combination, sale or conveyance assuming such holder of Common Stock did not exercise its rights of election, if any, as to the kind or amount of securities, cash or other
property receivable upon such merger, consolidation, statutory share exchange, sale or conveyance (provided, that if the kind or amount of securities,
cash or other property receivable upon such merger, consolidation, statutory share exchange, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of
election shall not have been exercised ("Non-Electing Share"), then for the purposes of this Section 10.4, the kind and amount of securities, cash or other property receivable
upon such merger, consolidation, statutory share exchange, sale or conveyance for each Non-Electing Share shall be deemed to be the kind and amount so receivable per share by a plurality
of the Non-Electing Shares). Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this
Article Ten. If, in the case of any such reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock or other securities and assets receivable
thereupon by a holder of Common Stock includes shares of stock or other securities and assets of a corporation other than the successor or purchasing corporation, as the case may be, in such
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, then such supplemental indenture shall also be executed by such other corporation and shall
contain such additional provisions to protect the interests of the Holders of the Securities as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the
extent practicable the provisions providing for the repurchase rights set forth in Article Three hereof. 

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

    The
above provisions of this Section 10.4 shall similarly apply to successive reclassifications, mergers, consolidations, statutory share exchanges, combinations, sales and
conveyances. 

    If
this Section 10.4 applies to any event or occurrence, Section 10.3 shall not apply. 

 
 

       Section 10.5  Notice of Adjustment.   

    Whenever
an adjustment in the Conversion Price with respect to the Securities is required: 

    (1) the
Company shall forthwith place on file with the Trustee and any Conversion Agent for such securities a certificate of the Treasurer of the Company, stating the
adjusted Conversion Price determined as provided herein and setting forth in reasonable detail such facts as shall be necessary to show the reason for and the manner of computing such adjustment; and 

    (2) a
notice stating that the Conversion Price has been adjusted and setting forth the adjusted Conversion Price shall forthwith be given by the Company or, at the
Company's request, by the 

51

 

Trustee in the name and at the expense of the Company, to each Holder in the manner provided in Section 11.2. Any notice so given shall be conclusively presumed to have been duly given, whether
or not the Holder receives such notice. 

 
 

       Section 10.6  Notice in Certain Events.   

    In
case: 

    (1) of
a consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the sale or conveyance to
another Person or entity or group of Persons or entities acting in concert as a partnership, limited partnership, syndicate or other group (within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) of all or substantially all of the property and assets of the Company; or 

    (2) of
the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 

    (3) of
any action triggering an adjustment of the Conversion Price referred to in clauses (x) or (y) below; 

then,
in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent, and shall cause to be given, to the Holders of the Securities in the manner provided in
Section 11.2, at least 15 days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of any
distribution or grant of rights or warrants triggering an adjustment to the Conversion Price pursuant to this Article Ten, or, if a record is not to be taken, the date as of which the holders of
record of Common Stock entitled to such distribution, rights or warrants are to be determined, or (y) the date on which any reclassification, consolidation, merger, sale, conveyance,
dissolution, liquidation or winding up triggering an adjustment to the Conversion Price pursuant to this Article Ten is expected to become effective, and the date as of which it is expected that
holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger sale, conveyance,
dissolution, liquidation or winding up. 

    Failure
to give such notice or any defect therein shall not affect the legality or validity of the proceedings described in clause (1), (2) or (3) of this
Section 10.6. 

 
 

      Section 10.7  Company To Reserve Stock: Registration; Listing.   

    (a) The
Company shall, in accordance with the laws of the State of Minnesota, at all times reserve and keep available, free from preemptive rights, out of its
authorized but unissued shares of Common Stock, for the purpose of effecting the conversion of the Securities, such number of its duly authorized shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all Securities then Outstanding into such Common Stock at any time (assuming that, at the time of the computation of such number of shares or securities, all
such Securities would be held by a single Holder); provided, however, that nothing contained herein shall preclude the Company from satisfying its
obligations in respect of the conversion of the Securities by delivery of purchased shares of Common Stock which are then held in the treasury of the Company. The Company covenants that all shares of
Common Stock which may be issued upon conversion of Securities will upon issue be fully paid and nonassessable and free from all liens and charges and, except as provided in Section 10.8, taxes
with respect to the issue thereof. 

    (b) If
any shares of Common Stock which would be issuable upon conversion of Securities hereunder require registration with or approval of any governmental authority
before such shares or securities may be issued upon such conversion, the Company will in good faith and as expeditiously as possible endeavor to cause such shares or securities to be duly registered
or approved, as the case may be. The Company further covenants that so long as the Common Stock shall be listed on the New York Stock Exchange, the Company will, if permitted by the rules of such
exchange, list and keep listed all 

52

 

Common Stock issuable upon conversion of the Securities, and the Company will endeavor to list the shares of Common Stock required to be delivered upon conversion of the Securities prior to such
delivery upon any other national securities exchange upon which the outstanding Common Stock is listed at the time of such delivery. 

 
 

       Section 10.8  Taxes on Conversion.   

    The
issue of stock certificates on conversion of Securities shall be made without charge to the converting Holder for any documentary, stamp or similar issue or transfer taxes in
respect of the issue thereof, and the Company shall pay any and all documentary, stamp or similar issue or transfer taxes that may be payable in respect of the issue or delivery of shares of Common
Stock on conversion of Securities pursuant hereto. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved in the issue or delivery of
shares of Common Stock or the portion, if any, of the Securities which are not so converted in a name other than that in which the Securities so converted were registered, and no such issue or
delivery shall be made unless and
until the Person requesting such issue has paid to the Company the amount of such tax or has established to the satisfaction of the Company that such tax has been paid. 

 
 

      Section 10.9  Conversion After Record Date.   

    Except
as provided below, if any Securities are surrendered for conversion on any day other than an Interest Payment Date, the Holder of such Securities shall not be entitled to
receive any interest that has accrued on such Securities since the prior Interest Payment Date. By delivery to the Holder of the number of shares of Common Stock or other consideration issuable upon
conversion in accordance with this Article Ten, any accrued and unpaid interest on such Securities will be deemed to have been paid in full. 

    If
any Securities are surrendered for conversion subsequent to the Record Date preceding an Interest Payment Date but on or prior to such Interest Payment Date, the Holder of such
Securities at the close of business on such Record Date shall receive the interest payable on such Securities on such Interest Payment Date notwithstanding the conversion thereof. Securities
surrendered for conversion during the period from the close of business on any Record Date preceding any Interest Payment Date to the opening of business on such Interest Payment Date shall (except in
the case of Securities which have been called for redemption on a Redemption Date within such period) be accompanied by payment by Holders, for the account of the Company, in New York Clearing House
funds or other funds of an amount equal to the interest payable on such Interest Payment Date on the Securities being surrendered for conversion. Except as provided in this Section 10.9, no
adjustments in respect of payments of interest on Securities surrendered for conversion or any dividends or distributions or interest on the Common Stock issued upon conversion shall be made upon the
conversion of any Securities. 

 
 

       Section 10.10  Company Determination Final.   

    Any
determination that the Company or the Board of Directors must make pursuant to this Article Ten shall be conclusive if made in good faith and in accordance with the provisions of
this Article, absent manifest error, and set forth in a Board Resolution. 

 
 

      Section 10.11  Responsibility of Trustee for Conversion Provisions.   

    The
Trustee has no duty to determine when an adjustment under this Article Ten should be made, how it should be made or what it should be. The Trustee makes no representation as to
the validity or value of any securities or assets issued upon conversion of Securities. The Trustee shall not be responsible for
any failure of the Company to comply with this Article Ten. Each Conversion Agent other than the Company shall have the same protection under this Section 10.11 as the Trustee. 

53

 

    The rights, privileges, protections, immunities and benefits given to the Trustee under the Indenture including, without limitation, its rights to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and each Paying Agent or Conversion Agent acting hereunder. 

 
 

       Section 10.12  Unconditional Right of Holders to Convert.   

    Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to convert its Security in accordance with
this Article Ten and to bring an action for the enforcement of any such right to convert, and such rights shall not be impaired or affected without the consent of such Holder. 

 
 

ARTICLE ELEVEN    
    
    MISCELLANEOUS    
  

 
 

      Section 11.1  Trust Indenture Act Controls.   If any provision of this Indenture limits, qualifies, or conflicts with another provision which is
required to be included in this Indenture by the TIA, the
required provision shall control. 

 
 

       Section 11.2  Notices.   Any request, demand, authorization, notice, waiver, consent or communication shall be in writing and delivered in person
or mailed by first-class mail, postage
prepaid, addressed as follows or transmitted by facsimile transmission (confirmed by guaranteed overnight courier) to the following facsimile numbers: 

if
to the Company: 

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432

Attn: General Counsel and Secretary

Facsimile No. (763) 572-5459 

if
to the Trustee: 

Wells
Fargo Bank

Minnesota, National Association

Corporate Trust Services

Sixth and Marquette

MAC N9303-110

Minneapolis, MN 55479

Telephone No. (612) 316-4305

Facsimile No. (612) 667-2160

Attention: Michael Lechner 

    The
Company or the Trustee by notice given to the other in the manner provided above may designate additional or different addresses for subsequent notices or communications. 

    Any
notice or communication given to a Securityholder shall be mailed to the Securityholder, by first-class mail, postage prepaid, at the Securityholder's address as it appears on the
registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 

    Failure
to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders. If a notice or communication
is mailed in the manner provided above, it is duly given, whether or not received by the addressee. 

54

 

    If the Company mails a notice or communication to the Securityholders, it shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion Agent or
co-registrar. 

 
 

      Section 11.3  Communication by Holders with Other Holders.   Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar, the Paying Agent, the Conversion Agent and anyone else shall have the protection of TIA Section 312(c). 

 
 

      Section 11.4  Certificate and Opinion as to Conditions Precedent.   Upon any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee: 

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

    (2) an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 

 
 

      Section 11.5  Statements Required in Certificate or Opinion.   Each Officers' Certificate or Opinion of Counsel with respect to compliance with a
covenant or condition provided for in this Indenture shall include: 

    (1) a
statement that each person making such Officers' Certificate or Opinion of Counsel has read such covenant or condition; 

    (2) a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such Officers' Certificate or
Opinion of Counsel are based; 

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

    (4) a
statement that, in the opinion of such person, such covenant or condition has been complied with. 

 
 

       Section 11.6  Separability Clause.   In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 

 
 

       Section 11.7  Rules by Trustee, Paying Agent, Conversion Agent and Registrar.   The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar, the Conversion Agent and the Paying Agent may make
reasonable rules for their functions. 

 
 

       Section 11.8  Legal Holidays.   A "Legal Holiday" is any day other than a Business Day. If any specified date (including a date for giving notice)
is a Legal Holiday, the action shall be
taken on the next succeeding day that is not a Legal Holiday, and, if the action to be taken on such date is a payment in respect of the Securities, no interest, if any, shall accrue for the
intervening period. 

 
 

       Section 11.9  GOVERNING LAW.   THIS INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 
 

       Section 11.10  No Recourse Against Others.   A director, officer, employee or stockholder, as such, of the Company shall not have any liability for
any obligations of the Company under the Securities or
this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder shall waive and release all such liability. The
waiver and release shall be part of the consideration for the issue of the Securities. 

55

 

 
 

      Section 11.11  Successors.   All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the
Trustee in this Indenture shall bind its
successor. 

 
 

       Section 11.12  Multiple Originals.   The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One
signed copy is enough to prove this Indenture. 

56

 
    IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed this Indenture on behalf of the respective parties hereto as of the date first above written. 

	 	 	MEDTRONIC, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	/s/ GARY L. ELLIS   
 Name: Gary L. Ellis

Title: Vice President, Corporate Controller and Treasurer
	

 	
 	
WELLS FARGO BANK

MINNESOTA, NATIONAL ASSOCIATION

As Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	/s/ MICHAEL T. LECHNER   
 Name: Michael T. Lechner

Title: Corporate Trust Officer

57

 
 

EXHIBIT A    
    
    [FORM OF FACE OF GLOBAL SECURITY]    

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

    TRANSFERS
OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

    THE
SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT OF 1933"), OR ANY STATE SECURITIES LAWS, AND MAY
NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE BY ACQUISITION HEREOF, THE HOLDER: 

	(1)
	REPRESENTS
THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

	(2)
	AGREES
THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON
CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT OF 1933, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OF 1933 (IF AVAILABLE), (D) TO ANY INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED
INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF
AVAILABLE), OR (E) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND

	(3)
	AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(C) OR 2(E) ABOVE), A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND. 

 

    The
foregoing legend may be removed from this Security on satisfaction of the conditions specified in the Indenture. 

    PURSUANT
TO SECTION 4.7 OF THE INDENTURE, MEDTRONIC, INC. AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE SECURITIES
WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES, TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO SECTION 1.1275-4 OF THE UNITED STATES TREASURY
REGULATIONS (THE "CONTINGENT DEBT REGULATIONS"). YOU MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE SECURITY
BY TELEPHONING THE MEDTRONIC, INC. TREASURY DEPARTMENT AT (763) 514-4000 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: MEDTRONIC, INC., 710 MEDTRONIC
PARKWAY, MINNEAPOLIS, MINNESOTA 55432, ATTENTION: TREASURY RELATIONS DEPARTMENT. 

A–2

 
MEDTRONIC, INC. 

1.25%
Contingent Convertible Debentures due 2021 

	 
	 	 

	No.	 	CUSIP: 585055AA4
	

Issue Date: September 17, 2001	
 	

Principal Amount: $         

    MEDTRONIC, INC.,
a Minnesota corporation, promises to pay to Cede & Co. or registered assigns, the principal amount of [            dollars
($            )] on September 15, 2021. 

    Interest
Payment Dates: March 15 and September 15, commencing March 15, 2002. 

    Record
Dates: March 1 and September 1. 

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

A–3

 

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

	Dated:  •  , 2001	 	MEDTRONIC, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

A–4

 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION 

WELLS
FARGO BANK

MINNESOTA, NATIONAL ASSOCIATION

as Trustee, certifies that this is one

of the Securities referred to in the

within-mentioned Indenture. 

	

By	
 	

 	
 	

 
	 	 	
 Authorized Signatory	 	 
	

Dated:  •  , 2001

	
 	

 

A–5

  

[FORM OF REVERSE OF GLOBAL SECURITY] 

 
  1.25% Contingent Convertible Debentures due 2021    

    This
Security is one of a duly authorized issue of 1.25% Contingent Convertible Debentures due 2021 (the "Securities") of Medtronic, Inc., a Minnesota corporation (including
any successor corporation under the Indenture hereinafter referred to, the "Company"), issued under an Indenture, dated as of September 11, 2001 (the "Indenture"), between the Company and Wells
Fargo Bank Minnesota, National Association, as trustee (the "Trustee"). The terms of the Security include those stated in the Indenture, those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended ("TIA"), and those set forth in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of
all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture shall
control. Capitalized terms used but not defined herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

 
 

      1.  Interest   

    General.  The Company promises to pay interest on the principal amount of the Securities plus accrued and unpaid
interest, if any, including contingent interest and additional interest, if any, at the interest rate specified herein (the "Interest Rate") from the date of issuance until repayment in full at
September 15, 2021, redemption or purchase. The Company will pay Interest on this Security semi-annually in arrears on March 15 and September 15 of each year (each, an
"interest payment date"), commencing March 15, 2002. 

    (a) The
Securities shall bear interest from September 17, 2001 until the principal amount thereof is paid or made available for payment, or until such date on
which the Securities are converted, redeemed or purchased as provided herein at a rate of 1.25% per annum. 

    (b) Interest
on the Securities shall be computed (i) for any full six-month period for which a particular Interest Rate is applicable, on the basis
of a 360-day year of twelve 30-day months and (ii) for any period
for which a particular Interest Rate is applicable for less than a full semiannual period for which Interest is calculated, on the basis of a 30-day month and, for such periods of less
than a month, the actual number of days elapsed over a 30-day month. For purposes of determining the Interest Rate, the Trustee may assume that the Trading Price Condition has not been
satisfied and that Reset Rate is not in effect unless the Trustee has received an Officers' Certificate stating that the Trading Price Condition has been satisfied and specifying the Reset Rate then
in effect. 

    (c) The
Interest Rate on this Security will increase to the Reset Rate for any six-month period commencing on September 15, 2002,
September 15, 2004, September 15, 2006, September 15, 2008, September 15, 2011 or September 15, 2016, each of which shall be referred to as a "Reset Rate
Determination Date", if the Trading Price Condition for that six-month period is satisfied. The "Trading Price Condition" shall be satisfied for any six-month period if the
Sale Price of the Common Stock for any 20 out of the last 30 Trading Days ending three days prior to the then applicable Reset Rate Determination Date is less than or equal to 50% of the Conversion
Price of the Security in effect for each of those 20 Trading Days. Such interest payable at the Reset Rate is sometimes referred to herein as "contingent interest." 

    Following
a change to the Reset Rate, the Interest Rate on the Security will remain the Reset Rate until the first day of the first subsequent six-month period for which
the Trading Price Condition is not satisfied, at which time the Interest Rate on the Security will revert to 1.25% per annum and will remain at such rate unless and until the Trading Price Condition
is satisfied for a six-month period commencing on a subsequent Reset Rate Determination Date. 

A–6

 

    If the Reset Rate is in effect for a particular six-month period, the Company will pay cash interest at an annualized rate per annum equal to the Reset Rate. The "Reset
Rate" determined as of each Reset Rate Determination Date will be equal to the rate that would, in the sole judgment of the Reset Rate Agent, result in a trading price of par of a hypothetical issue
of senior, nonconvertible, noncontingent, fixed-rate debt securities of the Company with (i) a final maturity corresponding to the next date on which Holders of the Securities are
entitled to require the Company to repurchase their Securities pursuant to Section 3.7 of the Indenture; (ii) an aggregate principal amount equal to the aggregate principal amount of all
Securities then outstanding; and (iii) covenants and other provisions that are, insofar as would be practicable for an issue of senior, nonconvertible, noncontingent, fixed-rate
debt securities of the Company, substantially identical to those of this Security, but which are not subject to repurchase by the Company at the option of the Holder. In no case, however, will the
Reset Rate ever be greater than 12% or less than 1.50%. Also, if the Reset Rate Agent has not established the Reset Rate for the applicable six-month period, or if the Reset Rate Agent
determines in its sole judgment that there is no suitable reference rate from which the Reset Rate may be determined, the Reset Rate for that period will be the Reset Rate most recently determined
(except if there is no Reset Rate most recently determined, in which case the Reset Rate shall be a rate mutually agreed upon by the Reset Rate Agent and the Company reflecting current market
conditions), and such Reset Rate shall remain in effect until the Reset Rate Agent shall determine a new Reset Rate. 

    The
Company will appoint a Reset Rate Agent, which shall not be the Company or any Affiliate or employee of the Company. For the determination of the Reset Rate, the Reset Rate Agent
will seek indicative reference rates from three nationally-recognized investment banks, and the Reset Rate shall be the average of such three indicative reference rates, provided that if at least
three such indicative reference rates cannot reasonably be obtained by the Reset Rate Agent, but two such indicative reference rates are obtained, then the average of the two indicative reference
rates shall be used, and if only one such indicative reference rate can reasonably be obtained by the Reset Rate Agent, this one indicative reference rate shall be used. The determination of any Reset
Rate will be conclusive and binding upon the Reset Rate Agent, the Company, the Trustee and the Holders of the Security, in the absence of manifest error. The Company may remove the Reset Rate Agent
and appoint a successor Reset Rate Agent at any time. 

    The
"sale price" of the Common Stock on any date means the closing per share sale price (or if no closing sale price is reported, the average of the bid and ask prices or, if more
than one in either case, the average of the average bid and the average asked prices) on that date as reported on the New York Stock Exchange or, if the Common Stock is not listed on the New York
Stock Exchange, then as reported on the principal U.S. securities exchange in which the Common Stock is traded or by the Nasdaq system, as the case may be. 

    In
the event contingent interest is payable, the Company will disseminate a press release through Dow Jones & Company, Inc. or Bloomberg Business News containing this
information or publish the information on the Company's Web site or through such other public medium as the Company may use at that time. 

    (d) If
this Security is redeemed or the Holder elects to require the Company to purchase this Security pursuant to Section 6 of this Security, on a date that is
after the record date and prior to the corresponding interest payment date, interest, including contingent interest, if any, accrued and unpaid hereon to but not including the applicable Redemption
Date, Purchase Date or Change of Control Purchase Date as the case may be will be paid to the same Holder to whom the Company pays the principal of this Security. 

    Except
as provided below, if any Securities are surrendered for conversion on any day other than an interest payment date, the Holder of such Securities shall not be entitled to
receive any interest that has accrued on such Securities since the prior interest payment date. By delivery to the Holder of the 

A–7

 

number of shares of Common Stock or other consideration issuable upon conversion in accordance with Article 10 of the Indenture, any accrued and unpaid interest on such Securities will be
deemed to have been paid in full. 

    Interest
on Securities converted after a record date but prior to the corresponding interest payment date will be paid to the Holder of the Securities on the record date but, upon
conversion, the Holder must pay the Company the interest, including contingent interest, which has accrued and will be paid on such interest payment date. No such payment need be made with respect to
Securities which will be redeemed after a record date and prior to the corresponding interest payment date. 

    If
the principal amount hereof or any portion of such principal amount or any interest, including contingent interest and additional interest, if any, on any Security is not paid when
due (whether upon acceleration pursuant to Section 6.2 of the Indenture, upon the date set for payment of the Redemption Price pursuant to Section 5 hereof or the Purchase Price or
Change of Control Purchase Price pursuant to Section 6 hereof or upon the Stated Maturity of this Security), then in each such case the overdue amount shall, to the extent permitted by law,
bear interest at the applicable Interest Rate, compounded semi-annually, which interest shall accrue from the date of such overdue amount was originally due to the date of payment of such
amount, including interest thereon, has been made or duly provided for. All such interest shall be payable on demand. 

    (e) In
accordance with the terms of the Registration Rights Agreement, dated September 11, 2001 (the "Registration Rights Agreement"), between the Company and
Banc of America Securities LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated, during the first 90 days in which a Registration Default (as defined in the
Registration Rights Agreement) has occurred and is continuing, the Interest Rate borne by the Securities shall be increased by 0.25% per annum. From and after the 91st day following such
Registration Default, the Interest Rate borne by the Securities shall be increased by 0.50% per annum. In no event shall the Interest Rate borne by the Securities be increased by more than 0.50% per
annum. Such interest is sometimes referred to herein as "additional interest". 

    Any
amount of such additional interest will be payable in cash semiannually, in arrears, on each interest payment date and will cease to accrue on the date the Registration Default is
cured. The Holder of this Security is entitled to the benefits of the Registration Rights Agreement. 

 
 

       2.  Method of Payment.   

    Except
as provided below, interest will be paid (i) on the Global Securities to DTC in immediately available funds, (ii) on any definitive Securities having an aggregate
principal amount of $5,000,000 or less, by check mailed to the Holders of such Securities; and (iii) on any definitive Securities having an aggregate principal amount of more than $5,000,000,
by wire transfer in immediately available funds at the election of the Holders of these Securities. 

    At
Stated Maturity the Company will pay interest on definitive Securities at the Company's office or agency in New York City, which initially will be the Corporate Trust Office of the
trustee in New York City. 

    Principal
on definitive Securities will be payable, upon Stated Maturity or when due, at the office or agency of the Company in New York City, maintained for such purpose, initially
the Corporate Trust Office of the Trustee in New York City. 

    Subject
to the terms and conditions of the Indenture, the Company will make payments in cash, shares of Common Stock or a combination thereof, as the case may be, in respect of
Redemption Prices, Purchase Prices, Change of Control Purchase Prices and at Stated Maturity to Holders who surrender Securities to a Paying Agent to collect such payments in respect of the
Securities. The Company will pay cash amounts in money of the United States that at the time of payment is legal 

A–8

 

tender for payment of public and private debts. However, the Company may make such cash payments by check payable in such money. 

 
 

       3.  Paying Agent, Conversion Agent and Registrar.   

    Initially,
Wells Fargo Bank Minnesota, National Association (the "Trustee") will act as Paying Agent, Conversion Agent and Registrar. The Company may appoint and change any Paying
Agent, Conversion Agent or Registrar without notice, other than notice to the Trustee; provided that the Company will maintain at least one Paying Agent in the State of New York, City of New York,
Borough of Manhattan, which shall initially be an office or agency of the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent or
Registrar. 

 
 

       4.  Indenture.   

    The
Securities are general unsecured obligations of the Company limited to $2,012,500,000 aggregate principal amount. The Indenture does not limit other indebtedness of the Company,
secured or unsecured. 

 
 

       5.  Redemption at the Option of the Company.   

    No
sinking fund is provided for the Securities. The Securities are redeemable for cash at the option of the Company, in whole or in part, at any time or from time to time on, or after
September 15, 2006 upon not less than 30 nor more than 60 days' notice by mail for a redemption price equal to the following: 

	Period
 
	 	Redemption Price
	 
	Beginning on September 15, 2006 and ending on September 14, 2007	 	100.625	%
	Beginning on September 15, 2007 and ending on September 14, 2008	 	100.500	%
	Beginning on September 15, 2008 and ending on September 14, 2009	 	100.375	%
	Beginning on September 15, 2009 and ending on September 14, 2010	 	100.250	%
	Beginning on September 15, 2010 and ending on September 14, 2011	 	100.125	%
	Beginning on September 15, 2011 and thereafter	 	100.000	%

plus
accrued and unpaid interest, including contingent interest and additional interest, if any, up to the Redemption Date (the "Redemption Price"). 

 
 

       6.  Purchase By the Company at the Option of the Holder.   

    Subject
to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, all or any portion of the Securities held by such
Holder on September 15, 2002, September 15, 2004, September 15, 2006, September 15, 2008, September 15, 2011 and September 15, 2016 in whole multiples of
$1,000 at a Purchase Price equal to the principal amount of those Securities plus accrued and unpaid interest, including contingent interest and additional interest, if any, of such Security on the
Purchase Date. To exercise such right, a Holder shall deliver to the Company a Purchase Notice containing the information set forth in the Indenture, at any time from the opening of business on the
date that is 20 Business Days prior to such Purchase Date until the close of business on the third Business Day prior to such Purchase Date, and shall deliver the Securities to the Paying Agent as set
forth in the Indenture. 

    The
Purchase Price may be paid, at the option of the Company, in cash or by the issuance and delivery of shares of Common Stock, or in any combination thereof, subject to the terms
and conditions of the Indenture. 

    At
the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to offer to purchase the Securities held by such Holder within
30 days (which purchase shall occur 30 days after the date of such offer) after the occurrence of a Change of 

A–9

 

Control of the Company for a Change of Control Purchase Price equal to the principal amount plus accrued and unpaid interest, including contingent interest and additional interest, if any, of such
Security on the Change of Control Purchase Date. The Change of Control Purchase Price may be paid, at the option of the Company, in cash or by the issuance and delivery of shares of Applicable Stock,
or in any combination thereof, subject to the terms and conditions of the Indenture. 

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

    If
cash (and/or Applicable Stock if permitted under the Indenture) sufficient to pay the Purchase Price or Change of Control Purchase Price, as the case may be, of all Securities or
portions thereof to be purchased as of the Purchase Date or the Change of Control Purchase Date, as the case may be, is deposited with the Paying Agent, on the Business Day following the Purchase Date
or the Change of Control Purchase Date, interest will cease to accrue on such Securities (or portions thereof) immediately after such Purchase Date or Change of Control Purchase Date, and the Holder
thereof shall have no other rights as such other than the right to receive the Purchase Price or Change of Control Purchase Price upon surrender of such Security. 

 
 

       7.  Notice of Redemption.   

    Notice
of redemption pursuant to Section 5 of this Security will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of
Securities to be redeemed at the Holder's registered address. If money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be redeemed on the Redemption Date is deposited
with the Paying Agent prior to or on the Redemption Date, immediately after such Redemption Date interest ceases to accrue on such Securities or portions thereof. Securities in denominations larger
than $1,000 of principal amount may be redeemed in part but only in whole multiples of $1,000 of principal amount. 

 
 

       8.  Conversion.   

    Subject
to and in compliance with the provisions of the Indenture (including, without limitation, the conditions to conversion of this Security set forth in Section 10.1
thereof), a Holder is entitled, at such Holder's option, to convert the Holder's Security (or any portion of the principal amount thereof that is $1,000 or a whole multiple of $1,000), into fully paid
and nonassessable shares of Common Stock at the Conversion Price in effect at the time of conversion. 

    The
Company will notify Holders of any event triggering the right to convert the Securities as specified above in accordance with the Indenture. 

    A
Security in respect of which a Holder has delivered a Purchase Notice or Change of Control Purchase Notice, as the case may be, exercising the option of such Holder to require the
Company to purchase such Security may be converted only if such Purchase Notice or Change of Control Purchase Notice, as the case may be, is withdrawn in accordance with the terms of the Indenture. 

    The
initial Conversion Price is $61.81, subject to adjustment in certain events described in the Indenture. A Holder which surrenders Securities for conversion will receive cash or a
check in lieu of any fractional share of Common Stock. 

    To
surrender a Security for conversion, a Holder must (1) complete and manually sign the conversion notice below (or complete and manually sign a facsimile of such notice) and
deliver such notice to the Conversion Agent, (2) surrender the Security to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents and (4) pay any
transfer or similar tax, if required. 

A–10

 

    No fractional shares of Common Stock shall be issued upon conversion of any Security. Instead of any fractional share of Common Stock that would otherwise be issued upon conversion of
such Security, the Company shall pay a cash adjustment as provided in the Indenture. 

    No
payment or adjustment will be made for dividends on the shares of Common Stock, except as provided in the Indenture. 

    If
the Company (i) is a party to a consolidation, merger or binding share exchange (ii) reclassifies the Common Stock or (iii) conveys, transfers or leases its
properties and assets substantially as an entirety to any Person, the right to convert a Security into shares of Common Stock may be changed into a
right to convert it into securities, cash or other assets of the Company or such other Person, in each case in accordance with the Indenture. 

 
 

      9.  Conversion Arrangement on Call for Redemption.   

    Any
Securities called for redemption, unless surrendered for conversion before the close of business on the day that is two Business Days prior to the Redemption Date, may be deemed
to be purchased from the Holders of such Securities at an amount not less than the Redemption Price, by one or more investment bankers or other purchasers who may agree with the Company to purchase
such Securities from the Holders, to convert them into shares of Common Stock and to make payment for such Securities to the Trustee in trust for such Holders. 

 
 

      10.  Denominations; Transfer; Exchange.   

    The
Securities are in fully registered form, without coupons, in denominations of $1,000 of principal amount and whole multiples of $1,000. A Holder may transfer or exchange
Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required
by law or permitted by the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or any Securities in respect of which a Purchase Notice or Change of Control Purchase Notice has been given and not withdrawn (except, in the case of a Security to be
purchased in part, the portion of the Security not to be purchased) or any Securities for a period of 15 days before the mailing of a notice of redemption of Securities to be redeemed. 

 
 

       11.  Persons Deemed Owners.   

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

 
 

      12.  Unclaimed Money or Securities.   

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

A–11

  

 
 

       13.  Amendment; Waiver.   

    Subject
to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Securities and (ii) certain Defaults may be waived with the written consent of the Holders of a majority in aggregate principal amount of the
outstanding Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee may amend the Indenture or the Securities
(i) to add to the covenants of the Company for the benefit of the Holders of Securities, (ii) to surrender any right or power conferred upon the Company in the Indenture, (iii) to
provide for conversion rights of Holders of Securities if any reclassification or change of the Company's Common Stock or any consolidation, merger or sale of all or substantially all of the Company's
assets occurs, (iv) to provide for the assumption of the Company's obligations to the Holders of Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant to
Article Five of the Indenture, (v) to reduce the Conversion Price; provided, however, that such reduction in the Conversion Price shall not
adversely affect the interest of the Holders of Securities (after taking into account tax and other consequences of such reduction), (vi) to comply with the requirements of the SEC in order to
effect or maintain the qualification of the Indenture under the TIA, (vii) to make any changes or modifications necessary in connection with the registration of the Securities under the
Securities Act as contemplated in the Registration Rights Agreement; provided, however, that such action pursuant to this clause does not, in the good
faith opinion of the Chief Executive Officer of the Company and the Trustee, adversely affect the interests of the Holders of Securities in any material respect, (viii) to cure any ambiguity,
or correct or supplement any provision in the Indenture which may be inconsistent with any other provision therein or which is otherwise defective, or to make any other provisions with respect to
matters or questions arising under the Indenture which the Company may deem necessary or desirable and which shall not be inconsistent with the provisions of the Indenture;  provided, however, that such
action pursuant to this clause either (a) is consistent with the description of such provision or provisions
contained in the Offering Memorandum dated September 6, 2001 relating to the Securities or (b) does not, in the good faith opinion of the Chief Executive Officer of the Company and the
Trustee, adversely affect the interests of the Holders of Securities in any material respect, and (ix) to add or modify any other provisions in the Indenture with respect to matters or
questions arising hereunder which the Company and the Trustee may deem necessary or desirable and which will not adversely affect the interests of the Holders of Securities. 

 
 

       14.  Defaults and Remedies.   

    If
any Event of Default with respect to Securities shall occur and be continuing, the principal of all the Securities may be declared due and payable in the manner and with the effect
provided in the Indenture. 

 
 

       15.  Trustee Dealings with the Company.   

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

 
 

       16.  Calculations in Respect of Securities.   

    The
Company or its agents will be responsible for making all calculations called for under the Securities including, but not limited to, determination of the market prices for the
Securities and of the Common Stock and the amounts of interest and contingent payments, if any, on the Securities. Any calculations made in good faith and without manifest error will be final and
binding on Holders of the Securities. The Company or its agents will be required to deliver to the Trustee a schedule of its 

A–12

 

calculations and the Trustee will be entitled to conclusively rely upon the accuracy of such calculations without independent verification. 

 
 

      17.  No Recourse Against Others.   

    A
director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part
of the consideration for the issue of the Securities. 

 
 

       18.  Authentication.   

    This
Security shall not be valid until an authorize signatory of the Trustee manually signs the Trustee's Certificate of Authentication on the other side of this Security. 

 
 

       19.  Abbreviations.   

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

 
 

      20.  GOVERNING LAW.   

    THE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS SECURITY. 

    The
Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture which has in it the text of this Security in larger type. Requests may
be made to: 

MEDTRONIC, INC.

710 Medtronic Parkway

Minneapolis, MN 55432

Attn: General Counsel and Secretary

Facsimile No. (763) 572-5459 

A–13

 

	ASSIGNMENT FORM
 
	 	 

	

	To assign this Security, fill in the form below:	 	 
	

 	
 	

 
	

	I or we assign and transfer this Security to	 	 
	

 	
 	

 
	
	 	 
	
 (Insert assignee's soc. sec. Or tax ID no.)	 	 
	

 	
 	

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

 	
 	

 
	and irrevocably appoint	 	 
	

 	
 	

 
	
	 	 
	

 	
 	

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

	CONVERSION NOTICE	 	 
	

	To convert this Security into Common Stock of the Company, check the box [  ]	 	 
	

	To convert only part of this Security, state the principal amount to be converted (which must be $1,000 or a whole multiple of $1,000):	 	 
	

 	
 	

 
	If you want the stock certificate made out in another person's name fill in the form below:	 	 
	

 	
 	

 
	
	 	 
	
 (Insert the other person's soc. sec. tax ID no.)	 	 
	

 	
 	

 
	
	 	 
	
	 	 
	
	 	 
	
	 	 
	
 (Print or type other person's name, address and zip code)	 	 
	

 	
 	

 
	

A–14

 

	 
	 	 
	 
	 

	Date:	 	 	Your Signature:	 
	 	 	
	 	

	

 	
 	

 	

 	

 
	

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

Signature Guaranteed	

 
	

 	
 	

 	

 	

 
	
	 
	Participant in a Recognized Signature

Guarantee Medallion Program	 
	

 	
 	

 	

 	

 
	By:	 	 	 	 
	 	 	
    Authorized Signatory	 

A–15

 
SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY 

Initial
Principal Amount of Global Security:        ($        ). 

	Date

 
	 	Amount of Increase in

Principal Amount of

Global Security
 
	 	Amount of Decrease in

Principal Amount of

Global Security
 
	 	Principal Amount of

Global Security After

Increase or Decrease
 
	 	Notation by Registrar

or Security Custodian
 

	

	

	

	

	

	

	

	

A–16

 
 

EXHIBIT B
  
    [FORM OF FACE OF CERTIFICATED SECURITY]    

    PURSUANT
TO SECTION 4.7 OF THE INDENTURE, MEDTRONIC, INC. AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITY, EACH BENEFICIAL HOLDER OF THE SECURITIES
WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES, TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO SECTION 1.1275-4 OF THE UNITED STATES TREASURY
REGULATIONS (THE "CONTINGENT DEBT REGULATIONS"). YOU MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE SECURITY
BY TELEPHONING THE MEDTRONIC, INC. TREASURY DEPARTMENT AT (763) 514-4000 OR SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: MEDTRONIC, INC., 710 MEDTRONIC
PARKWAY, MINNEAPOLIS, MINNESOTA 55432, ATTENTION: TREASURY DEPARTMENT. 

    THE
SECURITY EVIDENCED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT OF 1933") OR ANY STATE SECURITIES LAWS, AND MAY
NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE BY ACQUISITION HEREOF, THE HOLDER: 

	(1)
	REPRESENTS
THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

	(2)
	AGREES
THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON
CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933,
(C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OF 1933 (IF AVAILABLE), (D) TO ANY INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR
WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE), OR
(E) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; AND 

 
	(3)
	AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(C) OR 2(E) ABOVE), A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND. 

    The
foregoing legend may be removed from this Security on satisfaction of the conditions specified in the Indenture. 

B–2

 
MEDTRONIC, INC. 

1.25%
Contingent Convertible Debentures due 2021 

	 
	 	 

	No.	 	CUSIP: [      ]
	Issue Date: September 17, 2001	 	 
	Issue Price: $1,000	 	 

    MEDTRONIC, INC.,
a Minnesota corporation, promises to pay to            ,. or registered assigns, the principal amount of [            ($
      )] on September 15, 2021. 

    Interest
Payment Dates: March 15 and September 15, commencing March 15, 2002. 

    Record
Dates: March 1 and September 1. 

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

B–3

 

    IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

	Dated:	 	MEDTRONIC, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Title:

B–4

 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION 

WELLS
FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION,

as Trustee, certifies that this

is one of the Securities referred

to in the within-mentioned Indenture. 

	

By	
 	

 	
 	

 
	 	 	
 Authorized Signatory	 	 
	

Dated:	
 	

 

B–5

 
[FORM OF REVERSE OF CERTIFICATED SECURITY IS IDENTICAL TO EXHIBIT A] 

B–6

 
 

EXHIBIT C    

1.25% Contingent Convertible Debentures due 2021 

Transfer
Certificate 

    In
connection with any transfer of any of the Securities within the period prior to the expiration of the holding period applicable to the sales thereof under Rule 144(k) under
the Securities Act of 1933, as amended (the "Securities Act") (or any successor provision), the undersigned registered owner of this Security hereby certifies with respect to $            
principal amount of the above-captioned Securities presented or surrendered on the date hereof (the "Surrendered Securities") for registration of transfer, or for exchange or conversion where the
securities issuable upon such exchange or conversion are to be registered in a name other than that of the undersigned registered owner (each such transaction being a "transfer"), that such transfer
complies with the restrictive legend set forth on the face of the Surrendered Securities for the reason checked below: 

	 
	 	 

	[  ]	 	A transfer of the Surrendered Securities is made to the Company or any subsidiaries; or
	

[  ]	
 	

The transfer of the Surrendered Securities complies with Rule 144A under the Securities Act; or
	

[  ]	
 	

The transfer of the Surrendered Securities complies with Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act; or
	

[  ]	
 	

The transfer of the Surrendered Securities is pursuant to an effective registration statement under the Securities Act; or
	

[  ]	
 	

The transfer of the Surrendered Securities is pursuant to another available exemption from the registration requirement of the Securities Act;

 

    and unless the box below is checked, the undersigned confirms that, to the undersigned's knowledge, such Securities are not being transferred to an "affiliate" of the Company as
defined in Rule 144 under the Securities Act (an "Affiliate"). 

	 
	 	 

	[  ]	 	The transferee is an Affiliate of the Company.

	DATE:	 	 
	 	 	
 Signature(s)

    (If
the registered owner is a corporation, partnership or fiduciary, the title of the person signing on behalf of such registered owner must be stated.) 

	Signature Guaranteed	 	 
	

 	
 	

 
	
 Participant in a Recognized Signature	 	 

C–2Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXECUTION COPY    
  

 
 

Medtronic, Inc.
  
    1.25% Contingent Convertible Debentures due 2021
  
    Registration Rights Agreement    

September 11,
2001 

Banc
of America Securities LLC

9 West 57th Street

New York, New York 10019 

Goldman,
Sachs & Co.

85 Broad Street

New York, New York 10004 

Morgan
Stanley & Co. Incorporated

1585 Broadway

New York, New York 10036 

As
Representatives of the Initial Purchasers 

Ladies
and Gentlemen: 

    Medtronic, Inc.,
a Minnesota corporation (the "Company"), proposes to issue and sell (such issuance and sale, the "Initial Placement"), upon the terms set forth in a purchase
agreement dated as of September 6, 2001 (the "Purchase Agreement"), to the several parties named in Schedule I (the "Initial Purchasers") to the Purchase Agreement, for whom Banc of
America Securities LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated are acting as representatives (the "Representatives"), $1,750,000,000 principal amount (plus up to an
additional $262,500,000 aggregate principal amount) of its 1.25% Contingent Convertible Debentures due 2021 (the "Securities"). The Securities will be convertible into shares of Common Stock (as
defined herein) in accordance with the terms and subject to the conditions of the Securities and the Indenture. As an inducement to you to enter into the Purchase Agreement and in satisfaction of a
condition of your obligations thereunder, the Company agrees with you, (i) for your benefit and (ii) for the benefit of the holders from time to time of the Registrable Securities (as
defined herein) and the Common Stock issuable upon conversion of the Securities (including the Initial Purchasers), as follows: 

 
 

       1.  Definitions.   Capitalized terms used herein without definition shall have the respective meanings set forth in the Purchase Agreement. As used in
this Agreement, the
following capitalized terms shall have the following meanings: 

    "Broker-Dealer"  means any broker or dealer registered as such under the Exchange Act. 

    "Business Day"  has the meaning set forth in the Indenture. 

    "Closing Date"  means the First Time of Delivery, as defined in the Purchase Agreement. 

    "Common Stock"  means the common stock, par value $0.10 per share, of the Company, as it exists on the date of this
Agreement and any other shares of capital stock or other securities of the Company into which such Common Stock may be reclassified or changed, together with any and all other securities which may
from time to time be issuable upon conversion of Securities. 

1

 

    "Damages Payment Date"  means, with respect to the Securities or the Common Stock issuable upon conversion thereof, as
applicable, each Interest Payment Date; and in the event that any Security, or portion thereof, is called for redemption or surrendered for purchase by the Company and not withdrawn, the relevant
redemption date shall also be a Damages Payment Date with respect to such Security, or portion thereof, unless the Indenture provides that accrued and unpaid interest on the Security (or portion
thereof) to be redeemed or repurchased, as the case may be, is to be paid to the person who was the Record Holder thereof on a record date prior to such redemption date, in which case the relevant
Damages Payment Date shall be the date on which interest is payable to such Record Holder. 

    "DTC"  means The Depository Trust Company and its successors and assigns. 

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

    "Final Maturity Date"  means September 15, 2021. 

    "Holder"  means a person who is a holder or beneficial owner (including the Initial Purchasers) of any Securities or
shares of Common Stock issued upon conversion of Securities; provided that, unless otherwise expressly stated herein, only registered holders of
Securities or Common Stock issued on conversion thereof shall be counted for purposes of calculating any proportion of holders entitled to take any action or give notice pursuant to this Agreement. 

    "Indenture"  means the Indenture relating to the Securities dated as of September 11, 2001, between the Company
and Wells Fargo Bank Minnesota, National Association, as trustee, as the same may be amended from time to time in accordance with the terms thereof. 

    "Initial Placement"  has the meaning set forth in the preamble hereto. 

    "Initial Purchasers"  has the meaning set forth in the preamble hereto. 

    "Interest Payment Date"  shall mean March 15 and September 15. 

    "Liquidated Damages"  has the meaning set forth in Section 2(e) hereof. 

    "Majority Holders"  means the Holders of a majority of the then outstanding aggregate principal amount of Securities
registered under a Shelf Registration Statement; provided, that Holders of Common Stock issued upon conversion of Securities shall be deemed to be
Holders of the aggregate principal amount of Securities from which such Common Stock was converted; and provided, further, that Securities or Common
Stock which have been sold or otherwise transferred pursuant to the Shelf Registration Statement or Rule 144 shall not be included in the calculation of Majority Holders. 

    "Majority Underwriting Holders"  means, with respect to any Underwritten Offering, the Holders of a majority of the then
outstanding aggregate principal amount of Securities registered under any Shelf Registration Statement whose Securities are, or are to be, included in such Underwritten Offering;  provided, that Holders
of Common Stock issued upon conversion of Securities shall be deemed to be Holders of the aggregate principal amount of
Securities from which such Common Stock was converted. 

    "Managing Underwriters"  means the Underwriter or Underwriters that shall administer an Underwritten Offering. 

    "NASD"  means the National Association of Securities Dealers, Inc. 

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

2

 

    "Notice Holder"  shall mean, on any date, any Holder of Registrable Securities that has delivered a completed and signed
Notice and Questionnaire to the Company on or prior to such date. 

    "Offering Memorandum"  means the Memorandum as defined in the Purchase Agreement. 

    "Person"  has the meaning set forth in the Indenture. 

    "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 Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Securities or Common Stock issuable upon conversion thereof covered by such Shelf Registration Statement, and all amendments and supplements to such prospectus, including all
documents incorporated or deemed to be incorporated by reference in such prospectus. 

    "Purchase Agreement"  has the meaning set forth in the preamble hereto. 

    "Record Holder"  means (i) with respect to any Damages Payment Date which occurs on an Interest Payment Date,
each person who is registered on the books of the registrar as the holder of Securities at the close of business on the record date with respect to such Interest Payment Date and (ii) with
respect to any Damages Payment Date relating to the Common Stock issued upon conversion thereof, each person who is a holder of record of such Common Stock fifteen days prior to the Damages Payment
Date. 

    "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 Common Stock issuable upon conversion, repurchase or redemption of such Securities; provided, however, that a security
ceases to be a Registrable Security when it is no longer a Restricted Security. 

    "Registration Default"  has the meaning set forth in Section 2(e) hereof. 

    "Representative"  has the meaning set forth in the preamble hereto. 

    "Restricted Security"  means any Security or share of Common Stock issuable upon conversion thereof except any such
Security or share of Common Stock that (i) has been effectively registered under the Securities Act and sold in a manner contemplated by the Shelf Registration Statement, (ii) has been
transferred in compliance with Rule 144 or is transferable pursuant to paragraph (k) of such Rule 144 or (iii) has otherwise been transferred and a new Security or share of
Common Stock not subject to transfer restrictions under the Securities Act has been delivered by or on behalf of the Company in accordance with Section 2.12 of the Indenture. 

    "Rule 144"  means Rule 144 (or any successor provision) under the Securities Act. 

    "SEC"  means the Securities and Exchange Commission. 

    "Securities"  has the meaning set forth in the preamble hereto. 

    "Securities Act"  means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder. 

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

    "Shelf Registration Period"  has the meaning set forth in Section 2(c) hereof. 

    "Shelf Registration Statement"  means a "shelf" registration statement of the Company filed pursuant to the provisions
of Section 2 hereof which covers some or all of the Securities and the 

3

 

Common Stock issuable upon conversion thereof, as applicable, on Form S-3 or on another appropriate form for an offering to be made on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all exhibits thereto and all documents incorporated or deemed to be incorporated by reference therein. 

    "Suspension Period"  has the meaning set forth in Section 2(d) hereof. 

    "Trustee"  means the trustee with respect to the Securities under the Indenture. 

    "Underwriter"  means any underwriter of the Securities or Common Stock issuable upon conversion thereof in connection
with an offering thereof under a Shelf Registration Statement. 

    "Underwritten Offering"  means an offering in which the Securities or Common Stock issued upon conversion thereof are
sold to an Underwriter or with the assistance of an Underwriter for reoffering to the public. 

    All
references in this Agreement to financial statements and schedules and other information which is "contained", "included", or "stated" in the Shelf Registration Statement, any
preliminary Prospectus or Prospectus (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information which is
incorporated or deemed to be incorporated by reference in such Shelf Registration Statement, preliminary Prospectus or Prospectus, as the case may be; and all references in this Agreement to
amendments or supplements to the Shelf Registration Statement, any preliminary Prospectus or Prospectus shall be deemed to mean and include any document filed with the SEC under the Exchange Act,
after the date of such Shelf Registration Statement, preliminary Prospectus or Prospectus, as the case may be, which is incorporated or deemed to be incorporated by reference therein. 

 
 

       2.  Shelf Registration Statement.   

    (a) The
Company shall prepare and file with the SEC within 90 days following the Closing Date a Shelf Registration Statement with respect to resales 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 (subject to
Section 3(v)) and thereafter shall use its reasonable best efforts to cause such Shelf Registration Statement to be declared effective under the Securities Act within 180 days after the
Closing Date; provided that if any Securities are issued upon exercise of the option granted to the Initial Purchasers in the Purchase Agreement and the
Second Time of Delivery on which such Securities are issued occurs after the Closing 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 Closing Date. The Company
shall supplement or amend the Shelf Registration Statement if required by the rules, regulations or instructions applicable to the registration form used by the Company for the Shelf Registration
Statement, or by the Securities Act, the Exchange Act or the SEC. 

    (b) (1)
Not less than 30 calendar days prior to the effectiveness of the Shelf Registration Statement, the Company shall mail the Notice and Questionnaire to the
Holders of Registrable Securities. The Company shall take action to name each Holder that is a Notice Holder as of the date that is 2 calendar days prior to the effectiveness of the Shelf Registration
Statement so that such Holder is named as a selling security holder in the Shelf Registration Statement at the time of its effectiveness and is permitted to deliver the Prospectus forming a part
thereof as of such time to purchasers of such Holder's Registrable Securities in accordance with applicable law. The 

4

 

Company shall be under no obligation to name any Holder that is not a Notice Holder as a selling security holder in the Shelf Registration Statement. 

    (2) After
the Shelf Registration Statement has become effective, the Company shall, upon the request of any Holder of Registrable Securities, promptly send a Notice and
Questionnaire to such Holder. From and after the date on which the Shelf Registration Statement has become effective, the Company shall (i) as promptly as is practicable after the date a
completed and signed Notice and Questionnaire is delivered to the Company, and in any event within five 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
Registrable 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 Securities Act as promptly as is practicable; provided,
however, that if a Notice and Questionnaire is delivered to the Company during a Suspension Period, the Company shall not be obligated to take the actions set forth in clauses
(i) and (ii) until the termination of such Suspension Period. 

    (c) The
Company shall use its reasonable best efforts to keep the Shelf Registration Statement continuously effective under the Securities Act in order to permit the
Prospectus forming a part thereof to be usable, subject to Section 2(d), by all Notice Holders until the earliest of (i) the second anniversary of the Closing Date or, if later, the
second anniversary of the last date on which any Securities are issued upon exercise of the Initial Purchasers' option to purchase additional Securities, (ii) the date on which all the
Securities and Common Stock issued or issuable upon conversion thereof may be sold by non-affiliates ("affiliates" for such purpose having the meaning set forth in Rule 144) of the
Company pursuant to paragraph (k) of Rule 144, (iii) the date as of which all the Securities and Common Stock issued or issuable upon conversion thereof have been transferred
pursuant to Rule 144 or sold pursuant to the Shelf Registration Statement (in any such case, such period being called the "Shelf Registration
Period"). The Company will, (x) subject to Section 2(d), prepare and file with the SEC such amendments and post-effective amendments to the Shelf
Registration Statement as may be necessary to keep the Shelf Registration Statement continuously effective for the Shelf Registration Period, (y) subject to Section 2(d), cause the
related Prospectus to be supplemented by any required supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act and
(z) comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by the Shelf Registration Statement during the applicable
period in accordance with the intended methods of disposition by the sellers thereof set forth in such Shelf Registration Statement as so amended or such Prospectus as so supplemented. 

    (d) The
Company may suspend the use of the Prospectus for a period not to exceed 45 days in the aggregate in any three-month period or 90 days in the
aggregate in any 12-month period (the "Suspension Period") for valid business reasons, to be determined by the Company in its sole
reasonable judgment (not including avoidance of the Company's obligations hereunder), including, without limitation, the acquisition or divestiture of assets, public filings with the SEC, pending
corporate developments and similar events, and provide written notice of such suspension to the Holders prior to suspending such use, which notice need not specify the nature of the event giving rise
to such suspension; provided that if use of the Prospectus would require the Company to disclose a previously undisclosed or pending material business
transaction, the disclosure of which the Company determines in good faith would be reasonably likely to impede its ability to 

5

 

consummate such transaction, the Company may extend the Suspension Period from 45 to 60 days in the aggregate in any three-month period; provided,
further, that the Company promptly thereafter complies with the requirements of Section 3(j) hereof, if applicable; and provided,
further, that the existence of a Suspension Period will not prevent the occurrence of a Registration Default or otherwise limit the obligation of the Company to pay Liquidated
Damages. 

    (e) If
(i) the Shelf Registration Statement is not filed with the SEC on or prior to 90 days after the Closing Date, (ii) the Shelf Registration
Statement has not been declared effective by the SEC within 180 days after the Closing Date, or (iii) the Shelf Registration Statement is filed and declared effective but shall
thereafter cease to be effective (without being succeeded immediately by a replacement shelf registration statement filed and declared effective) or usable (including as a result of a Suspension
Period) for the offer and sale of Registrable Securities for a period of time (including any Suspension Period) which shall exceed 45 days or 60 days in the aggregate, as applicable, in
any three-month period, or 90 days in the aggregate in any 12-month period during the period beginning on the Closing Date and ending on or prior to the second anniversary of the
Closing Date or, if later, the second anniversary of the last date on which any Securities are issued upon exercise of the Initial Purchasers' over allotment option (each such event referred to in
clauses (i) through (iii), a "Registration Default"), the Company will pay liquidated damages ("Liquidated
Damages") to each Holder of Registrable Securities who has complied with such Holder's obligations under this Agreement. The amount of Liquidated Damages payable during any
period in which a Registration Default has occurred and is continuing is the amount which is equal to one-quarter of one percent (25 basis points) per annum per $1,000 principal amount of
Securities and $2.50 per annum per 16.1796 shares of Common Stock (subject to adjustment in the event of a stock split, stock recombination, stock dividend and the like) constituting Registrable
Securities for the first 90 days during which a Registration Default has occurred and is continuing and one-half of one percent (50 basis points) per annum per $1,000 principal
amount of Securities and $5.00 per annum per 16.1796 shares of Common Stock (subject to adjustment as set forth above) constituting Registrable Securities for any additional days during which a
Registration Default has occurred and is continuing (in each case subject to further adjustment from time to time in the event of a stock split, stock recombination, stock dividend and the like), it
being understood that all calculations pursuant to this and the preceding sentence shall be carried out to five decimals. Following the cure of all Registration Defaults, Liquidated Damages will cease
to accrue with respect to such Registration Default. Liquidated Damages shall cease to accrue in respect of any Registrable Security when it shall cease to be such. All accrued Liquidated Damages
shall be paid by wire transfer of immediately available funds or by federal funds check by the Company on each Damages Payment Date and Liquidated Damages will be calculated on the basis of a
360-day year consisting of twelve 30-day months. The parties hereto agree that the Liquidated Damages provided for in this Section 2(e) constitute a reasonable estimate
of the damages that may be incurred by Holders by reason of a Registration Default. 

    (f)  All
of the Company's obligations (including, without limitation, the obligation to pay Liquidated Damages) set forth in the preceding paragraph which are
outstanding or exist with respect to any Registrable Security at the time such security ceases to be a Registrable Security shall survive until such time as all such obligations with respect to such
security shall have been satisfied in full. 

    (g) Immediately
upon the occurrence or the termination of a Registration Default, the Company shall give the Trustee, in the case of notice with respect to the
Securities, and the transfer and paying agent for the Common Stock, in the case of notice with respect to Common Stock issued or issuable upon conversion thereof, notice of such commencement or
termination, of the obligation to pay Liquidated Damages with regard to the Securities and Common Stock and the amount thereof and of the event giving rise to such commencement or termination (such 

6

 

notice to be contained in an Officers' Certificate (as such term is defined in the Indenture)), and prior to receipt of such Officers' Certificate the Trustee and such transfer and paying agent shall
be entitled to assume that no such commencement or termination has occurred, as the case may be. 

    (h) All
Securities which are redeemed, purchased or otherwise acquired by the Company or any of its subsidiaries or affiliates (as defined in Rule 144) prior to
the Final Maturity Date shall be delivered to the Trustee for cancellation and the Company may not hold or resell such Securities or issue any new Securities to replace any such Securities or any
Securities that any Holder has converted pursuant to the Indenture. All shares of Common Stock issued upon conversion of the Securities which are repurchased or otherwise acquired by the Company or
any of its subsidiaries or affiliates (as defined in Rule 144) shall not be resold or otherwise transferred except pursuant to a registration statement which has been declared effective under
the Securities Act or, in the case of such affiliate of the Company, in compliance with Rule 144. 

 
 

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

    (a) The
Company shall (i) furnish to the Representatives, prior to the filing thereof with the SEC, a copy of any Shelf Registration Statement, and each
amendment thereof, and a copy of any Prospectus, and each amendment or supplement thereto (excluding amendments caused by the filing of a report under the Exchange Act), and shall use its reasonable
best efforts to reflect in each such document, when so filed with the SEC, such comments as the Representatives reasonably may promptly propose; and (ii) include information regarding the
Notice Holders and the methods of distribution they have elected for their Registrable Securities provided to the Company in Notice and Questionnaires as necessary to permit such distribution by the
methods specified therein. 

    (b) Subject
to Section 2(d), the Company shall ensure that (i) any Shelf Registration Statement and any amendment thereto and any Prospectus forming a
part thereof and any amendment or supplement thereto comply in all material respects with the Securities Act and the rules and regulations thereunder, (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 a 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 therein, in light of the circumstances under which they were made, not misleading; provided, that the Company makes no
representation with respect to information with respect to any Underwriter or any Holder required to be included in any Shelf Registration Statement or Prospectus pursuant to the Securities Act or the
rules and regulations thereunder and which information is included therein in reliance upon and in conformity with information furnished to the Company in writing by such Underwriter or Holder. 

    (c) The
Company, as promptly as reasonably practicable, shall advise the Representatives and each Notice Holder and, if requested by you or any such Holder, confirm
such advice in writing: 

     (i) when
a Shelf Registration Statement and any amendment thereto has been filed with the SEC and when the Shelf Registration Statement or any
post-effective amendment thereto has become effective, in each case making a public announcement thereof by release made to Reuters Economic Services and Bloomberg Business News; 

    (ii) of
any request by the SEC following effectiveness of the Shelf Registration Statement for amendments or supplements to the Shelf Registration Statement or the
Prospectus or for 

7

 

additional information (other than any such request relating to a review of the Company's Exchange Act filings); 

    (iii) of
the determination by the Company that a post-effective amendment to the Shelf Registration Statement would be appropriate; 

    (iv) of
the commencement or termination of (but not the nature of or details concerning) any Suspension Period; 

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

    (vi) of
the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities included in any Shelf
Registration Statement for sale in any jurisdiction or the initiation or threat of any proceeding for such purpose; 

   (vii) of
the happening of (but not the nature of or details concerning) any event that requires the making of any changes in the Shelf Registration Statement or the
Prospectus so that, as of such date, the statements therein are not misleading and the Shelf Registration Statement or the Prospectus, as the case may be, does not include 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 (in the case of the Prospectus, in light of the circumstances under which they
were made) not misleading; and 

   (viii) of
the Company's suspension of the use of the Prospectus as a result of any of the events or circumstances described in paragraphs (ii) through
(vii) above, and of the termination of any such suspension. 

    (d) The
Company shall use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Shelf Registration Statement or the
lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for offer or sale in any jurisdiction at the earliest possible time. 

    (e) The
Company shall promptly furnish to each Notice Holder, without charge, at least one copy of any Shelf Registration Statement and any post-effective
amendment thereto. 

    (f)  The
Company shall, during the Shelf Registration Period, promptly deliver to each Initial Purchaser, each Notice Holder and any sales or placement agent or
Underwriters acting on their behalf, without charge, as many copies of the Prospectus (including each preliminary Prospectus) included in any Shelf Registration Statement (excluding documents
incorporated by reference), and any amendment or supplement thereto, as such person may reasonably request; and, except as provided in Sections 2(d) and 3(s) hereof, the Company consents to the use of
the Prospectus or any amendment or supplement thereto by each of the selling Notice Holders in connection with the offering and sale of the Registrable Securities covered by the Prospectus or any
amendment or supplement thereto. 

    (g) Prior
to any offering of Registrable Securities pursuant to any Shelf Registration Statement, the Company shall (i) register or qualify or cooperate with the
Notice Holders and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and
sale, under the securities or blue sky laws of such jurisdictions within the United States as any such Notice Holders reasonably request; (ii) maintain such registration or qualification in
effect so long as required and do any and all other acts or things necessary or advisable to permit the continuance of offers and in such jurisdictions for so long as may be necessary to enable any
Holder or Underwriter, if any, to complete its distribution of such Registrable Securities pursuant to the Shelf Registration Statement, and (iii) take any and all other actions necessary or
advisable to enable the 

8

 

disposition in such jurisdiction of such Registrable Securities; provided, however, that in no event shall the Company be obligated to
(A) qualify as a foreign corporation or as a dealer in securities any jurisdiction where it would not otherwise be required to so qualify but for this Section 3(g) or (B) file any
general consent to service of process in suits, other than those arising out of the Initial Placement, in any jurisdiction where it is not as of the date hereof so subject. 

    (h) The
Company shall cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities sold pursuant to
any Shelf Registration Statement free of any restrictive legends and in such denominations permitted by the Indenture and registered in such names as Holders may request at least two Business Days
prior to settlement of sales of Registrable Securities pursuant to such Shelf Registration Statement. 

    (i)  Subject
to the exceptions contained in (A) and (B) of Section 3(g) hereof, the Company shall use its reasonable best efforts to cause the
Registrable Securities covered by the applicable Shelf Registration Statement to be registered with or approved by such other federal, state and local governmental agencies or authorities, and
self-regulatory organizations in the United States as may be necessary to enable the Holders to consummate the disposition of such Registrable Securities as contemplated by the Shelf
Registration Statement; without limitation to the foregoing, the Company shall make all filings and provide all such information as may be required by NASD in connection with the offering under the
Shelf Registration Statement of the Registrable Securities (including, without limitation, such as may be required by NASD Rule 2710 or 2720), and shall cooperate with each Holder in connection
with any filings required to be made with the NASD by such Holder in that regard. 

    (j)  Upon
the occurrence of any event described in Section 3(c)(vii) hereof, the Company shall promptly prepare and file with the SEC a
post-effective amendment to any Shelf Registration Statement or an amendment or supplement to the related Prospectus or any document incorporated therein by reference or file a
document which is incorporated or deemed to be incorporated by reference in such Shelf Registration Statement or Prospectus, as the case may be, so that, as thereafter delivered to purchasers of the
Registrable Securities included therein, the Shelf Registration Statement and the Prospectus, in each case as then amended or supplemented, will not include an untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary in order to make the statements therein (in the case of the Prospectus in light of the circumstances under which they were
made) not misleading and, in the case of a post-effective amendment, use its reasonable best efforts to cause it to become effective as promptly as practicable; provided that the Company's
obligations under this Section 3(j) shall be suspended if the Company has suspended the use of the Prospectus in accordance with Section 2(d) hereof and given notice of such suspension
to Notice Holders, it being understood that the Company's obligations under this Section 3(j) shall be automatically reinstated at the end of such Suspension Period. 

    (k) The
Company shall use its reasonable best efforts to provide, on or prior to the first Business Day following the effective date of any Shelf Registration Statement
hereunder (i) a CUSIP number for the Registrable Securities registered under such Shelf Registration Statement and (ii) global certificates for such Registrable Securities to the
Trustee, in a form eligible for deposit with DTC. 

    (l)  The
Company shall use its best efforts to comply with all applicable rules and regulations of the SEC and shall make generally available to its security holders as
soon as practicable but in any event not later than 18 months after (i) the effective date of the applicable Shelf Registration Statement, (ii) the effective date (as defined in
Rule 158(c) under the Securities Act) of each post-effective amendment to any Shelf Registration Statement, and (iii) the date of each filing by the Company with the SEC of
an Annual Report on Form 10-K that is incorporated by reference 

9

 

or deemed to be incorporated by reference in the Shelf Registration Statement, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act and Rule 158
promulgated by the SEC thereunder. 

    (m) The
Company shall use its reasonable best efforts to cause the Indenture to be qualified under the TIA (as defined in the Indenture) in a timely manner. In
connection with such qualification, the Company shall cooperate with the Trustee under the Indenture and the Holders (as defined in 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 SEC 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 shall cause all Common Stock issued or issuable upon conversion of the Securities to be listed on each securities exchange or quotation system on which
the Common Stock is then listed no later than the date the applicable Shelf Registration Statement is declared effective and, in connection therewith, to make such filings as may be required under the
Exchange Act and to have such filings declared effective as and when required thereunder. 

    (o) The
Company may require each Holder of Registrable Securities to be sold pursuant to any Shelf Registration Statement to furnish to the Company such information
regarding the Holder and the distribution of such Registrable Securities sought by the Notice and Questionnaire and such additional information as may, from time to time, be required by the Securities
Act and the rules and regulations promulgated thereunder, and the obligations of the Company to any Holder hereunder shall be expressly conditioned on the compliance of such Holder with such request. 

    (p) The
Company shall, if reasonably requested, use its reasonable best efforts to promptly incorporate in a Prospectus supplement or post-effective
amendment to a Shelf Registration Statement (i) such information as the Majority Holders provide or, if Registrable Securities are being sold in an Underwritten Offering, as the Managing
Underwriters or the Majority Underwriting Holders reasonably
agree should be included therein and provide to the Company in writing for inclusion in the Shelf Registration Statement or Prospectus, and (ii) such information as a Holder may provide from
time to time to the Company in writing for inclusion in a Prospectus or any Shelf Registration Statement concerning such Holder and the distribution of such Holder's Registrable Securities and, in
either case, shall make all required filings of such Prospectus supplement or post-effective amendment promptly after being notified in writing of the matters to be incorporated in such
Prospectus supplement or post-effective amendment, provided that the Company shall not be required to take any action under this Section 3(p) that is not, in the reasonable opinion
of counsel for the Company, in compliance with applicable law. 

    (q) The
Company shall enter into such customary agreements (including underwriting agreements) and take all other appropriate actions as may be requested 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 and contribution provisions and procedures no less favorable than those set forth in Section 5 (or such other reasonable and customary provisions and procedures acceptable to
the Majority Underwriting Holders and the Managing Underwriters, if any, with respect to all parties to be indemnified pursuant to Section 5). The plan of distribution in the Shelf Registration
Statement and the Prospectus included therein shall permit resales of Registrable Securities to be made by 

10

 

selling securityholders through underwriters, brokers and dealers, and shall also include such other information as the Representatives may reasonably request. 

    (r) The
Company shall if reasonably requested in writing by Majority Holders, by Majority Underwriting Holders or by the Managing Underwriter: 

     (i) make
reasonably available for inspection during normal business hours by any Underwriter participating in any disposition pursuant to such Shelf Registration
Statement, and any attorney, accountant or other agent retained by any such Underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and its
subsidiaries as is customary for due diligence examinations in connection with public offerings; 

    (ii) cause
the Company's officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested by any such Underwriter,
attorney, accountant or agent in connection with any such Shelf Registration Statement 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 the Holders or any such Underwriter, attorney, accountant
or agent, unless disclosure thereof is made in connection with a court, administrative or regulatory proceeding or required by law, or such information has become available to the public generally
through the Company or through a third party without an accompanying obligation of confidentiality; 

    (iii) deliver
a letter, addressed to the selling Notice Holders and the Underwriters, if any, in which the Company shall make such representations and warranties in
form, substance and scope as are customarily made by issuers to Underwriters; 

    (iv) 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) addressed to each selling Notice Holder and the Underwriters, if any, covering such matters as are customarily covered in opinions requested in public offerings; 

    (v) obtain
"cold comfort" letters and updates thereof from the current and former independent certified public accountants of the Company (and, if necessary, any other
independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be,
included in the Shelf Registration Statement), addressed to each selling Holder (provided such Holder furnishes the accountants, prior to the date such "cold comfort" letter is required to be
delivered, with such representations as the accountants customarily require in similar situations) 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; and 

    (vi) deliver
such documents and certificates as may be reasonably requested by the Majority Holders or, in the case of an Underwritten Offering, the Majority
Underwriting Holders, and the Managing Underwriters, if any, including those to evidence compliance with Section 3(j) 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 (iii), (iv), (v) and (vi) of this Section 3(r) shall be performed at (A) the effectiveness of such Shelf
Registration Statement and each post-effective amendment thereto and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder. 

11

 

    (s) Each
Notice Holder agrees that, upon receipt of notice of the happening of an event described in Sections 3(c)(ii) through and including 3(c)(vii), each such
Holder shall forthwith discontinue (and shall cause its agents and representatives to discontinue) disposition of Registrable Securities and will not resume disposition of Registrable Securities until
such Holder has received copies of an amended or supplemented Prospectus contemplated by Section 3(j) hereof, or until such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed or that the relevant Suspension Period has been terminated, as the case may be, provided that, the foregoing shall not prevent
the sale, transfer or other disposition of Registrable Securities by a Notice Holder in a transaction which is
exempt from, or not subject to, the registration requirements of the Securities Act, so long as such Notice Holder does not and is not required to deliver the applicable Prospectus or Shelf
Registration Statement in connection with such sale, transfer or other disposition, as the case may be; and provided, further, that the provisions of
this Section 3(s) shall not prevent the occurrence of a Registration Default or otherwise limit the obligation of the Company to pay Liquidated Damages. 

    (t)  The
Company shall in connection with an Underwritten Offering use its reasonable best efforts (i) if the Securities have been rated prior to the initial
sale of such Securities, to confirm that such ratings will apply to the Securities covered by the Shelf Registration Statement; or (ii) if the Securities were not previously rated, to cause the
Securities covered by the Shelf Registration Statement to be rated with at least one nationally recognized statistical rating agency, in either case if so requested by the Majority Holders or by any
Managing Underwriters. 

    (u) In
the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or "assist in the
distribution" (within the meaning of the NASD Rules) thereof, whether as a Holder of such Registrable Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, the Company shall assist such Broker-Dealer in complying with the NASD Rules, including, without limitation, by, if the NASD Rules shall so require: 

     (i) engaging
a "qualified independent underwriter" (as defined in the NASD Rules) to participate in the preparation of the Shelf Registration Statement, to exercise
usual standards of due diligence with respect thereto and, if any portion of the offering contemplated by the Shelf Registration Statement is an Underwritten Offering or is made through a placement or
sales agent, to recommend the price of such Registrable Securities; 

    (ii) indemnifying
any such qualified independent underwriter to the extent of the indemnification of Underwriters provided in Section 5 hereof; and 

    (iii) providing
such information to such Broker-Dealer as may be required in order for such Broker-Dealer to comply with the requirements of the NASD Rules. 

    (v) Anything
herein to the contrary notwithstanding, the Company will not be required to pay the costs and expenses of, or to participate in the marketing or "road
show" presentations of, more than one Underwritten Offering initiated at the request of the Holders of Securities or shares of Common Stock issued or issuable upon conversion thereof, or to effect
more than one Underwritten Offering at the request of such Holders. The Company will not be required to pay the costs and expenses of, or to participate in the marketing or "road show" presentations
of, an Underwritten Offering unless Holders of at least the Minimum Amount (as defined below) of Securities and/or Common Stock issued or issuable on conversion thereof have requested that such
Securities and/or shares of Common Stock be included in such an Underwritten Offering. For purposes of this Agreement, the "Minimum Amount" means 50% of the aggregate principal amount of Securities
originally issued under the Indenture;  provided, that for purposes of computing the Minimum Amount, Holders of Common Stock issued upon conversion of Securities shall be deemed to be holders
of the aggregate principal amount of Securities which were 

12

 

converted into those shares of Common Stock. Only Holders of Securities or shares of Common Stock issued or issuable upon conversion thereof which are Registrable Securities shall be entitled to
include such Securities or shares of Common Stock in an Underwritten Offering and only Registrable Securities shall be included in the computation of the Minimum Amount. The Underwritten Offering
initiated by Holders as aforesaid shall include both Securities and Common Stock if so requested by the Holders. Upon receipt by the Company, from Holders of at least the Minimum Amount of Securities
and/or Common Stock issued or issuable upon conversion thereof, of a request for an Underwritten Offering, the Company will, within 10 days thereafter, mail notice to all Holders of Securities
and shares of Common Stock issued upon conversion thereof stating that: (i) the Company has received a request from the Holders of the requisite amount of Securities and/or Common Stock issued
or issuable on conversion thereof to effect an Underwritten Offering on behalf of such Holders; (ii) under the terms of this Agreement, all Holders of Securities and shares of Common Stock
issued or issuable upon conversion thereof which are Registrable Securities may include their Securities and shares of Common Stock in such Underwritten Offering, subject to the terms and conditions
set forth in this Agreement and subject to the right of the Managing Underwriters to reduce, in light of market conditions and other similar factors, the aggregate principal amount of Securities and
number of shares of Common Stock included in such Underwritten Offering; (iii) all Holders electing to include Securities or shares of Common Stock in such Underwritten Offering must notify the
Company in writing of such election (the "Election"), and setting forth an address and facsimile number to which such written elections may be sent and the deadline (which shall be 12:00 midnight on
the 10th calendar day after such notice is mailed to Holders or, if not a Business Day, the next succeeding Business Day (the "Deadline")) by which such elections must be received by the Company; and
(iv) setting forth such other instructions as shall be necessary to enable Holders to include their Securities and shares of Common Stock in such Underwritten Offering. No Holder shall be
entitled to participate in an Underwritten Offering unless such Holder notifies the Company of such Election by the Deadline. Notwithstanding anything to the contrary contained herein, if the Managing
Underwriters for an Underwritten Offering to be effected pursuant to this Section 3(v) advise the Holders of the Securities and shares of the Common Stock to be included in such
Underwritten Offering that, because of aggregate principal amount of Securities and/or number of shares of Common Stock that such Holders have requested be included in the Underwritten Offering, the
success of the offering would likely be materially adversely affected by the inclusion of all of the Securities and shares of Common Stock requested to be included, then the principal amount of
Securities and the number of shares of Common Stock to be offered for the accounts of Holders shall be reduced pro rata, according to the aggregate
principal amount of Securities and number of shares of Common Stock, respectively, requested for inclusion by each such Holder, to the extent necessary to reduce the size of the offering to the size
recommended by the Managing Underwriter. Notwithstanding anything to the contrary contained herein, neither the Company nor any Person, other than a Holder of Securities or shares of Common Stock
issued or issuable upon conversion thereof and only with respect to its Registrable Securities, shall be entitled to include any securities in the Underwritten Offering. 

 
 

       4.  Registration Expenses.   The Company shall bear all expenses incurred in connection with the performance of its obligations under Sections 2 and 3
hereof and shall reimburse the
Holders for the reasonable fees and
disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the Holders in connection therewith. Notwithstanding the provisions of this Section 4, each Holder
shall bear the expense of any broker's commission, agency fee or Underwriter's discount or commission. 

13

 

 
 

       5.  Indemnification and Contribution.   

    (a) The
Company will indemnify and hold harmless each Holder of Registrable Securities covered by any Shelf Registration Statement (including each of the Initial
Purchasers) against any losses, claims, damages or liabilities, joint or several, to which such indemnified party may become subject under the Securities Act or otherwise insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration
Statement as originally filed, or any amendment thereto, or any preliminary Prospectus or Prospectus, 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 required to be stated therein or necessary to make the statement therein, in light of the circumstances under which they were made, not misleading, and will
reimburse each such indemnified party for any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim as such
expenses are incurred; 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 (A) any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written
information relating to such Holder or Initial Purchaser furnished to the Company by or on behalf of any such Holder or any Initial Purchaser specifically for inclusion therein; (B) use of a
Shelf Registration Statement or the related Prospectus during a period when use of such Prospectus has been suspended pursuant to Section 2(d) or Section 3(s) hereof,  provided, in each case,
that Holders received prior notice of such suspension; or (C) if the Holder fails to deliver a Prospectus, as then
amended or supplemented, provided, that the Company shall have delivered to such Holder such Prospectus, as then amended or supplemented. 

    (b) Each
Holder of Registrable Securities covered by a Shelf Registration Statement (including the Initial Purchasers), severally and not jointly, will indemnify and
hold harmless the Company to the same extent as the foregoing indemnity from the Company to each such Holder, but only with reference to written information relating to such Holder furnished to the
Company by or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity. 

    (c) Promptly
after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to
notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against
any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after
notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such
subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect
to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the 

14

 

indemnified party from all liability arising out of such action or claim and (ii) does not include any statement as to or an admission of fault, culpability or a failure to act, by or on behalf
of any indemnified party. The indemnifying party shall not be liable for any settlement of any action or claim effected without its prior written consent, such consent not to be unreasonably withheld. 

    (d) If
the indemnification provided for in this Section 5 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or
(b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of such
indemnifying party, on the one hand, and such indemnified party, on the other, in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions
in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such indemnifying party, on the one hand, or such indemnified party, on the other,
and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and equitable if
contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the indemnified party were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The obligations of the Holders and the Initial Purchasers in this subsection (d) to
contribute are several in proportion to the underwriting obligations and not joint. 

    (e) Notwithstanding
any other provision of this Section 5, in no event will any (i) Notice 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 the Company under this Section 5 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the
same terms and conditions, to each person, if any, who controls any Holder or Initial Purchaser within the meaning of the Securities Act; and the obligations of the Holders and Initial Purchasers
under this Section 5 shall be in addition to any liability which the respective Holders and Initial Purchasers may otherwise have and shall extend, upon the same terms and conditions, to each
officer and director of the Company and to each person, if any, who controls the Company within the meaning of the Securities Act. 

15

 

 
 

       6.  Miscellaneous.   

    (a) No Inconsistent Agreements. The Company has not, as of the date hereof, entered into nor shall it, on or after the
date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the provisions hereof. 

    (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be
amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Majority
Holders; provided, that with respect to any matter that directly or indirectly affects the rights of the Initial Purchasers hereunder, the Company shall
obtain the written consent of each of the Initial Purchasers against which such amendment, qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing (except the
foregoing proviso), a waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Registrable Securities are being sold
pursuant to a Shelf Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of the Registrable
Securities being sold rather than registered under such Shelf Registration Statement. 

    (c) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by
hand-delivery, first-class mail, telecopier or air courier guaranteeing overnight delivery: 

    (1) if
to the Representatives, initially at their respective addresses set forth in the Purchase Agreement; 

    (2) if
to any other Holder, at the most current address of such Holder maintained by the Registrar under the Indenture or the registrar of the Common Stock (provided,
that while the Securities or the Common Stock are in book-entry form, notice to the Trustee shall serve as notice to the Holders), or, in the case of the Notice Holder, the address set
forth in its Notice and Questionnaire; and 

    (3) if
to the Company, initially at its address set forth in the Purchase Agreement. 

    All
such notices and communications shall be deemed to have been duly given when received, if delivered by hand or air courier, and when sent, if sent by first-class mail or
telecopier. 

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

    (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of each of the parties, including, without the need for an express assignment or any consent by the Company thereto, subsequent Holders. The Company hereby agrees to extend the benefits of this
Agreement to any Holder and Underwriter and any such Holder and Underwriter may specifically enforce the provisions of this Agreement as if an original party hereto. In the event that any other person
shall succeed to the Company under the Indenture, then such successor shall enter into an agreement, in form and substance reasonably satisfactory to the Representatives, whereby such successor shall
assume all of the Company's obligations under this Agreement. 

    (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. 

16

 

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

    (g) Governing Law. This agreement shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements made and to be performed in said state.

    (h) Severability. In the event that any one of 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)  Purchases and Sales of Securities. The Company shall not, and shall not permit its affiliates (as defined in
Rule 405 under the Securities Act) to, purchase and then resell or otherwise transfer any Securities. 

    (j)  Securities Held by the Company, etc. Whenever the consent or approval of Holders of a specified percentage of
principal amount of Securities or the Common Stock issuable upon conversion thereof is required hereunder, Securities or the Common Stock issued upon conversion thereof held by the Company or its
affiliates (other than subsequent Holders of Securities or the Common Stock issued upon conversion thereof if such subsequent Holders are deemed to be affiliates solely by reason of their holdings of
such Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. "Affiliate" of any specified person means, for this
Section 6(j), any other person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition,
"control" (including, with correlative meanings, the terms "controlling", "controlled by" and "under common control with"), as used with respect to any person, shall mean the possession, directly or
indirectly, of the power either (a) to direct or cause the direction of the management or policies of such person or (b) to vote 10% or more of the securities having ordinary voting
power for the election of director of such person, in the case of each of (a) and (b), whether through the ownership of voting securities or by agreement or otherwise. 

    (k) Specific Performance. The parties hereto acknowledge that there would be no adequate remedy at law if the Company
fails to perform any of its obligations hereunder and that the Initial Purchasers and the Holders from time to time may be irreparably harmed by any such failure, and accordingly agree that the
Initial Purchasers and such Holders, in addition to any other remedy to which they may be entitled at law or in equity and without limiting the remedies available to the Notice Holders under
Section 2(e) hereof, shall be entitled to compel specific performance of the obligations of the Company under this Agreement in accordance with the terms and conditions of this Agreement, in
any court of the United States or any State thereof having jurisdiction. 

    (l)  Termination. This Agreement and the obligations of the parties hereunder shall terminate upon the end of the Shelf
Registration Period, except for any liabilities or obligations under Section 2(e), 4 or 5 to the extent arising prior to the end of the Shelf Registration Period. 

17

 

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

	 	 	 	 	Registration Rights Agreement, dated September 11, 2001, between Medtronic, Inc. and the Initial Purchasers
	

 	
 	

 	
 	

Very truly yours,
	

 	
 	

 	
 	

Medtronic, Inc.
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	/s/ GARY L. ELLIS   

	 	 	 	 	 	 	Name: Gary L. Ellis
	 	 	 	 	 	 	Title: Vice President, Corporate Controller and Treasurer
	

Accepted as of the date hereof:	
 	

 	
 	

 
	

Banc of America Securities LLC	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	/s/ TREVOR GANSHAW   
	 	 	 	 
	 	 	Name: Trevor Ganshaw	 	 	 	 
	 	 	Title: Managing Director	 	 	 	 
	

Goldman, Sachs & Co.	
 	

 	
 	

 
	

/s/ GOLDMAN, SACHS & CO.   
	
 	

 	
 	

 
	(Goldman, Sachs & Co.)	 	 	 	 
	

Morgan Stanley & Co. Incorporated	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	/s/ KHALID AZIM   
	 	 	 	 
	 	 	Name: Khalid Azim	 	 	 	 
	 	 	Title: Vice President	 	 	 	 
	

On behalf of each of the Initial Purchasers	
 	

 	
 	

 

18

  

 
 

EXHIBIT A    
  

 
 

Form of Selling Securityholder Notice and Questionnaire    
  

    The undersigned beneficial holder (the "Selling Securityholder") of 1.25% Contingent Convertible Debentures due 2021 (the "Debentures") of
Medtronic, Inc. (the "Company") or shares of Company common stock issuable upon conversion of the Debentures (together with the Debentures, the "Registrable 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 Registrable Securities in accordance with the terms of the Registration Rights
Agreement (the "Registration Rights Agreement") dated as of September 11, 2001 between the Company and the Initial 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 Registrable Securities pursuant to the Shelf Registration Statement, a beneficial owner of Registrable Securities generally will be
required to be named as a selling securityholder in the related prospectus, deliver a prospectus to purchasers of Registrable 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 arise from being named as selling securityholders in the Shelf Registration Statement and the related prospectus. Accordingly, holders and beneficial owners
of Registrable 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 Registrable Securities hereby gives notice to the Company of its intention to sell or
otherwise dispose of Registrable 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–1

 

	Questionnaire
	

1.	
 	

(a)	
 	

Full legal name of Selling Securityholder:
	

 	
 	

 	
 	

	

 	
 	

(b)	
 	

Full legal name of registered holder (if not the same as (a) above) through which Registrable Securities listed in (3) below are held (if the Registrable 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 Registrable Securities listed in Item (3) below are held:
	

 	
 	

 	
 	

	

 	
 	

(d)	
 	

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

 	
 	

 	
 	

	

2.	
 	

Address for Notices to Selling Securityholder:
	

 	
 	

	

 	
 	

	

 	
 	

Telephone:	
 	

	

 	
 	

Fax:	
 	

	

 	
 	

Contact Person:	
 	

A–2

 

	

3.	
 	

Beneficial Ownership of Registrable Securities:
	

 	
 	

(a)	
 	

Type and principal amount (or number of shares) of Registrable Securities beneficially owned:
	

 	
 	

 	
 	

	

 	
 	

 	
 	

	

 	
 	

(b)	
 	

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

 	
 	

 	
 	

	

 	
 	

 	
 	

	

 	
 	

 	
 	
Unless otherwise indicated in the space provided below, all Debentures 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
Debentures listed in response to Item (3)(a)above, will be included in the Shelf Registration Statement. If the undersigned does not wish all such Debentures 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 Registrable 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 holder (5% or more) has held any position or office or has had any other material relationship with the Company
(or its predecessors or affiliates) during the past three years.
	

 	
 	

State any exceptions here:
	

 	
 	

	

 	
 	

A–3

 

	

6.	
 	

Plan of Distribution
	

 	
 	
Except as set forth below, the undersigned (including its donees or pledgees) intends to distribute the Registrable Securities listed above in Item (3) pursuant to the Shelf Registration Statement only as
follows (if at all): Such Registrable Securities may be sold from time to time directly by the undersigned or alternatively through underwriters or broker-dealers or agents. If the Registrable Securities are sold through underwriters or
broker-dealers, the Selling Securityholder will be responsible for underwriting discounts or commissions or agent's commissions. Such Registrable 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
Registrable 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 Registrable Securities or otherwise, the undersigned may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities, short and deliver
Registrable Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such securities. The Selling Securityholder may pledge or grant security interest in some or all of the
Registrable Securities owned by it and, if it defaults in the performance of its secured obligations, the pledgees or secured parties may offer and sale the Registrable 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:	 	The Company's obligation to cooperate in an underwritten offering of the Registrable Securities is limited under Section 3(v) of the Registration Rights Agreement.

    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 of 1933 relating to prospectus delivery, in connection
with any offering of Registrable 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. 

    Pursuant
to the Registration Rights Agreement, the Company has agreed under certain circumstances 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. 

A–4

 

    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 or
amendment of the Shelf Registration Statement and the related prospectus. 

    IN
WITNESS WHEREOF, the undersigned, by authority duly give, 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:	 	 	 	 

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE

TO THE COMPANY:  

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432

Attention: General Counsel and Secretary

Fax: (763) 572-5459  

with a copy to:  

Sullivan & Cromwell

1701 Pennsylvania Avenue, N.W.

Washington, D.C. 20006

Facsimile: (202) 293-6330

Attention: Robert Risoleo, Esq.  

A–5

QuickLinks

EXECUTION COPY

Medtronic, Inc. 1.25% Contingent Convertible Debentures due 2021 Registration Rights Agreement

1. Definitions.

2. Shelf Registration Statement.

3. Registration Procedures.

4. Registration Expenses.

5. Indemnification and Contribution.

6. Miscellaneous.

EXHIBIT A

Form of Selling Securityholder Notice and Questionnaire

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