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                                                               EXECUTION VERSION

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED
WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION
OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION LETTERS FROM THE
APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE
PROVISIONS OF SECTION 7 OF THIS WARRANT.

                                  TOLERRX, INC.

                        WARRANT TO PURCHASE 73,125 SHARES
                           OF SERIES B PREFERRED STOCK

       THIS CERTIFIES THAT, for value received, GATX VENTURES, INC. and its
assignees are entitled to subscribe for and purchase 73,125 shares of the fully
paid and nonassessable Series B Preferred Stock (as adjusted pursuant to Section
4 hereof, the "Shares") of TolerRx, Inc., a Delaware corporation (the
"Company"), at the price of S 1.00 per share (such price and such other price as
shall result, from time to time, from the adjustments specified in Section 4
hereof is herein referred to as the "Warrant Price"), subject to the provisions
and upon the terms and conditions hereinafter set forth. As used herein, (a) the
term "Series Preferred" shall mean the Company's presently authorized Series B
Preferred Stock, and any stock into or for which such Series B Preferred Stock
may hereafter be converted or exchanged, and after the mandatory conversion of
the Series B Preferred Stock to Common Stock shall mean the Company's Common
Stock, (b) the term "Date of Grant" shall mean December 13, 2001, and (c) the
term "Other Warrants" shall mean any other warrants issued by the Company in
connection with the transaction with respect to which this Warrant was issued,
and any warrant issued upon transfer or partial exercise of or in lieu of this
Warrant. The term "Warrant" as used herein shall be deemed to include Other
Warrants unless the context clearly requires otherwise.

       1.     TERM. The purchase right represented by this Warrant is
exercisable, in whole or in part, at any time and from time to time from the
Date of Grant through December 13, 2011.

       2.     METHOD OF EXERCISE PAYMENT: ISSUANCE OF NEW WARRANT. Subject to
Section I hereof, the purchase right represented by this Warrant may be
exercised by the holder hereof, in whole or in part and from time to time, at
the election of the holder hereof, by (a) the surrender of this Warrant (with
the notice of exercise substantially in the form attached hereto as Exhibit A-1
duly completed and executed) at the principal office of the Company and by the
payment to the Company, by certified or bank check, or by wire transfer to an
account designated by the Company (a "Wire Transfer") of an amount equal to the
then applicable Warrant Price multiplied by the number of Shares then being
purchased; (b) if in connection with a registered public

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offering of the Company's securities, the surrender of this Warrant (with the
notice of exercise form attached hereto as Exhibit A-2 duly completed and
executed) at the principal office of the Company together with notice of
arrangements reasonably satisfactory to the Company for payment to the Company
either by certified or bank check or by Wire Transfer from the proceeds of the
sale of shares to be sold by the holder in such public offering (if any) of an
amount equal to the then applicable Warrant Price per share multiplied by the
number of Shares then being purchased; or (c) exercise of the "net issuance"
right provided for in Section 10.2 hereof. The person or persons in whose
name(s) any certificate(s) representing shares of Series Preferred shall be
issuable upon exercise of this Warrant shall be deemed to have become the
holder(s) of record of, and shall be treated for all purposes as the record
holder(s) of, the shares represented thereby (and such shares shall be deemed to
have been issued) immediately prior to the close of business on the date or
dates upon which this Warrant is exercised. In the event of any exercise of the
rights represented by this Warrant, certificates for the shares of stock so
purchased shall be delivered to the holder hereof as soon as possible and in any
event within thirty (30) days after such exercise and, unless this Warrant has
been fully exercised or expired, a new Warrant representing the portion of the
Shares, if any, with respect to which this Warrant shall not then have been
exercised shall also be issued to the holder hereof as soon as possible and in
any event within such thirty-day period; provided, however, at such time as the
Company is subject to the reporting requirements of the Securities Exchange Act
of 1934, as amended, if requested by the holder of this Warrant, the Company
shall cause its transfer agent to deliver the certificate representing Shares
issued upon exercise of this Warrant to a broker or other person (as directed by
the holder exercising this Warrant) within the time period required to settle
any trade made by the holder after exercise of this Warrant.

       3.     STOCK FULLY PAID: RESERVATION OF SHARES. All Shares that may be
issued upon the exercise of the rights represented by this Warrant will, upon
issuance pursuant to the terms and conditions herein, be fully paid and
nonassessable, and free from all taxes, liens and charges with respect to the
issue thereof. During the period within which the rights represented by this
Warrant may he exercised, the Company will at all times have authorized, and
reserved for the purpose of the issue upon exercise of the purchase rights
evidenced by this Warrant, a sufficient number of shares of its Series
Preferred to provide for the exercise of the rights represented by this Warrant
and a sufficient number of shares of its Common Stock to provide for the
conversion of the Series Preferred into Common Stock.

       4.     ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES. The number and
kind of securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time upon the occurrence of
certain events, as follows:

              A.     RECLASSIFICATION OR MERGER. In case of any reclassification
       or change of securities of the class issuable upon exercise of this
       Warrant (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), or in case of any merger of the Company with or into
       another corporation (other than a merger with another corporation in
       which the Company

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       is the acquiring and the surviving corporation and which does not result
       in any reclassification or change of outstanding securities issuable upon
       exercise of this Warrant), or in case of any sale of all or substantially
       all of the assets of the Company, the Company, or such successor or
       purchasing corporation, as the case may be, shall duly execute and
       deliver to the holder of this Warrant a new Warrant (in form and
       substance satisfactory to the holder of this Warrant), or the Company
       shall make appropriate provision without the issuance of a new Warrant,
       so that the holder of this Warrant shall have the right to receive, at a
       total exercise price not to exceed that payable upon the exercise of the
       unexercised portion of this Warrant, and in lieu of the shares of Series
       Preferred theretofore issuable upon exercise of this Warrant, (i) the
       kind and amount of shares of stock, other securities, money and property
       receivable upon such reclassification, change, merger or sale by a holder
       of the number of shares of Series Preferred then purchasable under this
       Warrant, or (ii) in the case of such a merger or sale in which the
       consideration paid consists all or in part of assets other than
       securities of the successor or purchasing corporation, at the option of
       the Holder of this Warrant, the securities of the successor or purchasing
       corporation having a value at the time of the transaction equivalent to
       the valuation of the Series Preferred at the time of the transaction. Any
       new Warrant shall provide for adjustments that shall be as nearly
       equivalent as may be practicable to the adjustments provided for in this
       Section 4. The provisions of this subparagraph (a) shall similarly apply
       to successive reclassifications, changes, mergers and transfers.

              B.     SUBDIVISION OR COMBINATION OF SHARES. If the Company at any
       time while this Warrant remains outstanding and unexpired shall subdivide
       or combine its outstanding shares of Series Preferred, the Warrant Price
       shall be proportionately decreased and the number of Shares issuable
       hereunder shall be proportionately increased in the case of a subdivision
       and the Warrant Price shall be proportionately increased and the number
       of Shares issuable hereunder shall be proportionately decreased in the
       case of a combination.

              C.     STOCK DIVIDENDS AND OTHER DISTRIBUTIONS. If the Company at
       any time while this Warrant is outstanding and unexpired shall (i) pay a
       dividend with respect to Series Preferred payable in Series Preferred,
       then the Warrant Price shall be adjusted, from and after the date of
       determination of shareholders entitled to receive such dividend or
       distribution, to that price determined by multiplying the Warrant Price
       in effect immediately prior to such date of determination by a fraction
       (A) the numerator of which shall be the total number of shares of Series
       Preferred outstanding immediately prior to such dividend or distribution,
       and (B) the denominator of which shall be the total number of shares of
       Series Preferred outstanding immediately after such dividend or
       distribution; or (ii) make any other distribution with respect to Series
       Preferred (except any distribution specifically provided for in Sections
       4(a) and 4(b)), then, in each such case, provision shall be made by the
       Company such that the holder of this Warrant shall receive upon exercise
       of this Warrant a proportionate share of any such dividend or

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       distribution as though it were the holder of the Series Preferred (or
       Common Stock issuable upon conversion thereof) as of the record date
       fixed for the determination of the shareholders of the Company entitled
       to receive such dividend or distribution.

              D.     ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment in the
       Warrant Price, the number of Shares of Series Preferred purchasable
       hereunder shall be adjusted, to the nearest whole share, to the product
       obtained by multiplying the number of Shares purchasable immediately
       prior to such adjustment in the Warrant Price by a fraction, the
       numerator of which shall be the Warrant Price immediately prior to such
       adjustment and the denominator of which shall be the Warrant Price
       immediately thereafter.

              E.     ANTIDILUTION RIGHTS. The other antidilution rights
       applicable to the Shares of Series Preferred purchasable hereunder are
       set forth in the Company's Certificate of Incorporation, as amended
       through the Date of Grant, a true and complete copy of which is attached
       hereto as Exhibit B (the "Charter"). Such antidilution rights shall not
       be restated, amended, modified or waived if such restatement, amendment,
       modification or waiver adversely affects the holder hereof but does not
       similarly affect the other holders of the Series B Preferred Stock
       without such holder's prior written consent. The Company shall promptly
       provide the holder hereof with any restatement, amendment, modification
       or waiver of the Charter promptly after the same has been made.

       5.     NOTICE OF ADJUSTMENTS. Whenever the Warrant Price or the number of
Shares purchasable hereunder shall be adjusted pursuant to Section 4 hereof, the
Company shall make a certificate signed by its chief financial officer setting
forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, and the
Warrant Price and the number of Shares purchasable hereunder after giving effect
to such adjustment, and shall cause copies of such certificate to be mailed
(without regard to Section 13 hereof, by first class mail, postage prepaid) to
the holder of this Warrant. In addition, whenever the conversion price or
conversion ratio of the Series Preferred shall be adjusted, the Company shall
make a certificate signed by its chief financial officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the
conversion price or ratio of the Series Preferred after giving effect to such
adjustment, and shall cause copies of such certificate to be mailed (without
regard to Section 13 hereof, by first class mail, postage prepaid) to the holder
of this Warrant.

       6.     FRACTIONAL SHARES. No fractional shares of Series Preferred will
be issued in connection with any exercise hereunder, but in lieu of such
fractional shares the Company shall make a cash payment therefor based on the
fair market value of the Series Preferred on the date of exercise as reasonably
determined in good faith by the Company's Board of Directors.

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       7.     COMPLIANCE WITH ACT: DISPOSITION OF WARRANT OR SHARES OF SERIES
PREFERRED.

              A.     COMPLIANCE WITH ACT. The holder of this Warrant, by
       acceptance hereof, agrees that this Warrant, and the shares of Series
       Preferred to be issued upon exercise hereof and any Common Stock issued
       upon conversion thereof are being acquired for investment and that such
       holder will not offer, sell or otherwise dispose of this Warrant, or any
       shares of Series Preferred to be issued upon exercise hereof or any
       Common Stock issued upon conversion thereof except under circumstances
       which will not result in a violation of the Securities Act of 1933, as
       amended (the "Act") or any applicable state securities laws. Upon
       exercise of this Warrant, unless the Shares being acquired are registered
       under the Act and any applicable state securities laws or an exemption
       from such registration is available, the holder hereof shall confirm in
       writing that the shares of Series Preferred so purchased (and any shares
       of Common Stock issued upon conversion thereof) are being acquired for
       investment and not with a view toward distribution or resale in violation
       of the Act and shall confirm such other matters related thereto as may be
       reasonably requested by the Company. This Warrant and all shares of
       Series Preferred issued upon exercise of this Warrant and all shares of
       Common Stock issued upon conversion thereof (unless registered under the
       Act and any applicable state securities laws) shall be stamped or
       imprinted with a legend in substantially the following form:

              "THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN
              REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
              OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY
              BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION
              STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL
              OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE
              COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED, (iii)
              RECEIPT OF NO-ACTION LETTERS FROM THE APPROPRIATE
              GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING
              WITH THE PROVISIONS OF SECTION 7 OF THE WARRANT UNDER
              WHICH THESE SECURITIES WERE ISSUED, DIRECTLY OR
              INDIRECTLY."

       Said legend shall be removed by the Company, upon the request of a
holder, at such time as the restrictions on the transfer of the applicable
security shall have terminated. In addition, in connection with the issuance of
this Warrant, the holder specifically represents to the Company by acceptance of
this Warrant as follows:

                            (1)    The holder is aware of the Company's business
                     affairs and financial condition, and has acquired
                     information about the Company sufficient to reach an
                     informed and knowledgeable decision to acquire this
                     Warrant. The holder is acquiring this Warrant for its own
                     account for

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                     investment purposes only and not with a view to, or for the
                     resale in connection with, any "distribution" thereof in
                     violation of the Act.

                            (2)    The holder understands that this Warrant has
                     not been registered under the Act in reliance upon a
                     specific exemption therefrom, which exemption depends upon,
                     among other things, the bona fide nature of the holder's
                     investment intent as expressed herein.

                            (3)    The holder further understands that this
                     Warrant must be held indefinitely unless subsequently
                     registered under the Act and qualified under any applicable
                     state securities laws, or unless exemptions from
                     registration and qualification are otherwise available. The
                     holder is aware of the provisions of Rule 144, promulgated
                     under the Act.

                            (4)    The holder is an "accredited investor" as
                     such term is defined in Rule 501 of Regulation D
                     promulgated under the Act.

              B.     DISPOSITION OF WARRANT OR SHARES. With respect to any
       offer, sale or other disposition of this Warrant or any shares of Series
       Preferred acquired pursuant to the exercise of this Warrant prior to
       registration of such Warrant or shares, the holder hereof agrees to give
       written notice to the Company prior thereto, describing briefly the
       manner thereof, together with a written opinion of such holder's counsel,
       or other evidence, if reasonably satisfactory to the Company, to the
       effect that such offer, sale or other disposition may be effected without
       registration or qualification (under the Act as then in effect or any
       federal or state securities law then in effect) of this Warrant or such
       shares of Series Preferred or Common Stock and indicating whether or not
       under the Act certificates for this Warrant or such shares of Series
       Preferred to be sold or otherwise disposed of require any restrictive
       legend as to applicable restrictions on transferability in order to
       ensure compliance with such law. Upon receiving such written notice and
       reasonably satisfactory opinion or other evidence, the Company, as
       promptly as practicable but no later than fifteen (15) days after receipt
       of the written notice, shall notify such holder that such holder may sell
       or otherwise dispose of this Warrant or such shares of Series Preferred
       or Common Stock, all in accordance with the terms of the notice delivered
       to the Company. If a determination has been made pursuant to this Section
       7(b) that the opinion of counsel for the holder or other evidence is not
       reasonably satisfactory to the Company, the Company shall so notify the
       holder promptly with details thereof after such determination has been
       made. Notwithstanding the foregoing, this Warrant or such shares of
       Series Preferred or Common Stock may, as to such federal laws, be
       offered, sold or otherwise disposed of in accordance with Rule 144 or
       144A under the Act, provided that the Company shall have been furnished
       with such information as the Company may reasonably request to provide a
       reasonable assurance that the provisions of Rule 144 or 144A have been
       satisfied. Each certificate representing this Warrant or the shares of
       Series Preferred thus transferred (except a transfer pursuant

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         to Rule 144 or 144A) shall bear a legend as to the applicable
         restrictions on transferability in order to ensure compliance with such
         laws, unless in the aforesaid opinion of counsel for the holder, such
         legend is not required in order to ensure compliance with such laws.
         The Company may issue stop transfer instructions to its transfer agent
         in connection with such restrictions.

              C.     APPLICABILITY OF RESTRICTIONS. Neither any restrictions of
       any legend described in this Warrant nor the requirements of Section 7(b)
       above shall apply to any transfer of, or grant of a security interest in,
       this Warrant (or the Series Preferred or Common Stock obtainable upon
       exercise thereof) or any part hereof (i) to a partner of the holder if
       the holder is a partnership or to a member of the holder if the holder is
       a limited liability company, (ii) to a partnership of which the holder is
       a partner or to a limited liability company of which the holder is a
       member, or (iii) to any affiliate of the holder if the holder is a
       corporation, bank or bank holding company; PROVIDED, HOWEVER, in any such
       transfer, if applicable, the transferee shall on the Company's request
       agree in writing to be bound by the terms of this Warrant as if an
       original holder hereof. Notwithstanding the foregoing, the Company agrees
       that the holder of this Warrant shall have the right to grant
       participation interests in this Warrant.

              D.     TRANSFER RESTRICTION. At all times prior to the Company's
       initial Public Offering the holder of this Warrant shall not, without the
       prior written consent of the Company, transfer this Warrant (or any part
       hereof), any shares of Series Preferred, or any securities issued or
       issuable upon conversion of the Series Preferred, to any person who
       directly competes with the Company, unless such transfer is in connection
       with an acquisition, merger, or consolidation of the Company.

       8.     RIGHTS AS SHAREHOLDERS: INFORMATION. No holder of this Warrant, as
such, shall be entitled to vote or receive dividends or be deemed the holder of
Series Preferred or any other securities of the Company which may at any time be
issuable on the exercise hereof for any purpose, nor shall anything contained
herein be construed to confer upon the holder of this Warrant, as such, any of
the rights of a shareholder of the Company or any right to vote for the election
of directors or upon any matter submitted to shareholders at any meeting
thereof, or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until this Warrant shall have been exercised
and the Shares purchasable upon the exercise hereof shall have become
deliverable, as provided herein. Notwithstanding the foregoing, the Company will
transmit to the holder of this Warrant such information, documents and reports
as are generally distributed to the holders of any class or series of the
securities of the Company concurrently with the distribution thereof to the
shareholders.

       9.     REGISTRATION UNDER SECURITIES ACT OF 1933, AS AMENDED. The Shares
shall have certain registration rights as set forth in that certain Registration
Rights Agreement of even date herewith between the holder and the Company (the
"Registration Rights Agreement"). The

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Company represents and warrants to Holder that the Company's execution, delivery
and performance of the Registration Rights Agreement (a) has been duly
authorized by all necessary corporate action of the Company's Board of Directors
and shareholders, (b) will not violate the Certificate or the Company's by-laws,
each as amended, (c) will not violate or cause a breach or default (or an event
which with the passage of time or the giving of notice or both, would constitute
a breach or default) under any agreement, instrument, mortgage, deed of trust or
other arrangement to which the Company is a party or by which it or any of its
assets is subject or bound, and (d) does not require the approval, consent or
waiver of or by any shareholder, registration rights holder or other third party
which approval, consent or waiver has not been obtained as of the date of
issuance of this Warrant.

       10.    ADDITIONAL RIGHTS.

       10.1   ACQUISITION TRANSACTIONS. The Company shall provide the holder of
this Warrant with at least twenty (20) days' written notice prior to closing
thereof of the terms and conditions of any of the following transactions (to the
extent the Company has notice thereof): (i) the sale, lease, exchange,
conveyance or other disposition of all or substantially all of the Company's
property or business, or (ii) its merger into or consolidation with any other
corporation (other than a wholly-owned subsidiary of the Company), or any
transaction (including a merger or other reorganization) or series of related
transactions, in which more than 50% of the voting power of the Company is
disposed of.

       10.2   RIGHT TO CONVERT WARRANT INTO STOCK: NET ISSUANCE.

              A.     RIGHT TO CONVERT. In addition to and without limiting the
       rights of the holder under the terms of this Warrant, the holder shall
       have the right to convert this Warrant or any portion thereof (the
       "Conversion Right") into shares of Series Preferred (or Common Stock if
       the Series Preferred has been automatically converted into Common Stock)
       as provided in this Section 10.2 at any time or from time to time during
       the term of this Warrant. Upon exercise of the Conversion Right with
       respect to a particular number of shares subject to this Warrant (the
       "Converted Warrant Shares"), the Company shall deliver to the holder
       (without payment by the holder of any exercise price or any cash or other
       consideration) that number of shares of fully paid and nonassessable
       Series Preferred (or Common Stock if the Series Preferred has been
       automatically converted into Common Stock) as is determined according to
       the following formula:

       X =  B - A
           -------
              Y

       Where: X =    the number of shares of Series Preferred (or Common Stock
                     if the Series Preferred has been automatically converted to
                     Common Stock) that shall be issued to holder

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              Y =    the fair market value of one share of Series Preferred (or
                     Common Stock if the Series Preferred has been automatically
                     converted to Common Stock)

              A =    the aggregate Warrant Price of the specified number of
                     Converted Warrant Shares immediately prior to the exercise
                     of the Conversion Right (I.E., the number of Converted
                     Warrant Shares MULTIPLIED BY the Warrant Price)

              B =    the aggregate fair market value of the specified number of
                     Converted Warrant Shares (I.E., the number of Converted
                     Warrant Shares MULTIPLIED BY the fair market value of one
                     Converted Warrant Share)

       No fractional shares shall be issuable upon exercise of the Conversion
Right, and, if the number of shares to be issued determined in accordance with
the foregoing formula is other than a whole number, the Company shall pay to the
holder an amount in cash equal to the fair market value of the resulting
fractional share on the Conversion Date (as hereinafter defined). For purposes
of Section 10 of this Warrant, shares issued pursuant to the Conversion Right
shall be treated as if they were issued upon the exercise of this Warrant.

              B.     METHOD OF EXERCISE. The Conversion Right may be exercised
       by the holder by the surrender of this Warrant at the principal office of
       the Company together with a written statement (which may be in the form
       of Exhibit A-1 or Exhibit A-2 hereto) specifying that the holder thereby
       intends to exercise the Conversion Right and indicating the number of
       shares subject to this Warrant which are being surrendered (referred to
       in Section 10.2(a) hereof as the Converted Warrant Shares) in exercise of
       the Conversion Right. Such conversion shall be effective upon receipt by
       the Company of this Warrant together with the aforesaid written
       statement, or on such later date as is specified therein (the "Conversion
       Date"), and, at the election of the holder hereof, may be made contingent
       upon the closing of the sale of the Company's Common Stock to the public
       in a public offering pursuant to a Registration Statement under the Act
       (a "Public Offering"). Certificates for the shares issuable upon exercise
       of the Conversion Right and, if applicable, a new warrant evidencing the
       balance of the shares remaining subject to this Warrant, shall be issued
       as of the Conversion Date and shall be delivered to the holder within
       thirty (30) days following the Conversion Date.

              C.     DETERMINATION OF FAIR MARKET VALUE. For purposes of this
       Section 10.2, "fair market value" of a share of Series Preferred (or
       Common Stock if the Series Preferred has been automatically converted
       into Common Stock) as of a particular date (the "Determination Date")
       shall mean:

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                            (i)    If the Conversion Right is exercised in
                     connection with and contingent upon a Public Offering, and
                     if the Company's Registration Statement relating to such
                     Public Offering ("Registration Statement") has been
                     declared effective by the Securities and Exchange
                     Commission, then the initial "Price to Public" specified in
                     the final prospectus with respect to such offering.

                            (ii)   If the Conversion Right is not exercised in
                     connection with and contingent upon a Public Offering, then
                     as follows:

                                   (a)    If traded on a securities exchange,
                            the fair market value of the Common Stock shall be
                            deemed to be the average of the closing prices of
                            the Common Stock on such exchange over the five
                            trading days immediately prior to the Determination
                            Date, and the fair market value of the Series
                            Preferred shall be deemed to be such fair market
                            value of the Common Stock multiplied by the number
                            of shares of Common Stock into which each share of
                            Series Preferred is then convertible;

                                   (b)    If traded on the Nasdaq Stock Market
                            or other over-the-counter system, the fair market
                            value of the Common Stock shall be deemed to be the
                            average of the closing bid prices of the Common
                            Stock over the five trading days immediately prior
                            to the Determination Date, and the fair market value
                            of the Series Preferred shall be deemed to be such
                            fair market value of the Common Stock multiplied by
                            the number of shares of Common Stock into which each
                            share of Series Preferred is then convertible; and

                                   (c)    If there is no public market for the
                            Common Stock, then fair market value shall be
                            determined in good faith by the Board of Directors
                            of the Company.

       10.3   EXERCISE PRIOR TO EXPIRATION. To the extent this Warrant is not
previously exercised as to all of the Shares subject hereto, and if the fair
market value of one share of the Series Preferred is greater than the Warrant
Price then in effect, this Warrant shall be deemed automatically exercised
pursuant to Section 10.2 above (even if not surrendered) immediately before its
expiration. For purposes of such automatic exercise, the fair market value of
one share of the Series Preferred upon such expiration shall be determined
pursuant to Section 10.2(c). To the extent this Warrant or any portion thereof
is deemed automatically exercised pursuant to this Section 10.3, the Company
agrees to promptly notify the holder hereof of the number of Shares, if any, the
holder hereof is to receive by reason of such automatic exercise.

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       11.    REPRESENTATIONS AND WARRANTIES. The Company represents and
warrants to the holder of this Warrant as follows:

              A.     This Warrant has been duly authorized and executed by the
       Company and is a valid and binding obligation of the Company enforceable
       in accordance with its terms, subject to laws of general application
       relating to bankruptcy, insolvency and the relief of debtors and the
       rules of law or principles at equity governing specific performance,
       injunctive relief and other equitable remedies;

              B.     The Shares have been duly authorized and reserved for
       issuance by the Company and, when issued in accordance with the terms
       hereof, will be validly issued, fully paid and non-assessable;

              C.     The rights, preferences, privileges and restrictions
       granted to or imposed upon the Series Preferred and the holders thereof
       are as set forth in the Charter, and on the Date of Grant, each share of
       the Series Preferred represented by this Warrant is convertible into one
       share of Common Stock;

              D.     The shares of Common Stock issuable upon conversion of the
       Shares have been duly authorized and reserved for issuance by the Company
       and, when issued in accordance with the terms of the Charter will be
       validly issued, fully paid and nonassessable;

              E.     The execution and delivery of this Warrant are not, and the
       issuance of the Shares upon exercise of this Warrant in accordance with
       the terms hereof will not be, inconsistent with the Company's Charter or
       by-laws, do not and will not contravene any law, governmental rule or
       regulation, judgment or order applicable to the Company, and do not and
       will not conflict with or contravene any provision of, or constitute a
       default under, any indenture, mortgage, contract or other instrument of
       which the Company is a party or by which it is bound or require the
       consent or approval of, the giving of notice to, the registration or
       filing with or the taking of any action in respect of OR by, any Federal,
       state or local government authority or agency or other person, except for
       the filing of notices pursuant to federal and state securities laws,
       which filings will be effected by the time required thereby; and

              F.     There are no actions, suits, audits, investigations or
       proceedings pending or, to the knowledge of the Company, threatened
       against the Company in any court or before any governmental commission,
       board or authority which, if adversely determined, will have a material
       adverse effect on the ability of the Company to perform its obligations
       under this Warrant.

              G.     The number of shares of Common Stock of the Company
       outstanding on the date hereof, on a fully diluted basis (assuming the
       conversion of all outstanding

                                      -11-

<Page>

       convertible securities and the exercise of all outstanding options and
       warrants), does not exceed 33,965,000 shares.

              H.     The authorized capital stock of the Company consists of
       58,000,000 shares, consisting of 31,818,750 shares of Common Stock, $.001
       par value per share, and 26,181,250 shares of preferred stock, $.001 par
       value per share, 9,035,000 of which have been designated Series A
       Preferred Stock and 17,146.250 of which have been designated Series B
       Preferred Stock SCHEDULE 11 (h) sets forth all of the outstanding shares
       of common stock and preferred stock and outstanding options, warrants,
       convertible securities, convertible debentures, and rights to acquire,
       subscribe for, and/or purchase any Common Stock, preferred stock and/or
       other capital stock of the Company or any securities or debentures
       convertible into or exchangeable for Common Stock, preferred stock and/or
       other capital stock of the Company.

       12.    MODIFICATION AND WAIVER. This Warrant and any provision hereof may
be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

       13.    NOTICES. Any notice, request, communication or other document
required or permitted to be given or delivered to the holder hereof or the
Company shall be delivered, or shall be sent by certified or registered mail,
postage prepaid, to each such holder at its address as shown on the books of the
Company or to the Company at the address indicated therefor on the signature
page of this Warrant.

       14.    BINDING EFFECT ON SUCCESSORS. This Warrant shall he binding upon
any corporation succeeding the Company by merger, consolidation or acquisition
of all or substantially all of the Company's assets, and all of the obligations
of the Company relating to the Series Preferred issuable upon the exercise or
conversion of this Warrant shall survive the exercise, conversion and
termination of this Warrant and all of the covenants and agreements of the
Company shall inure to the benefit of the successors and assigns of the holder
hereof.

       15.    LOST WARRANTS OR STOCK CERTIFICATES. The Company covenants to the
holder hereof that, upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant or any
stock certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity reasonably satisfactory to the Company, or in the case
of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock
certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated
Warrant or stock certificate.

       16.    DESCRIPTIVE HEADINGS. The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. The language in this Warrant shall be
construed as to its fair meaning without regard to which party drafted this
Warrant.

                                      -12-

<Page>

       17.    GOVERNING LAW. This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Delaware.

       18.    SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. All
representations and warranties of the Company and the holder hereof contained
herein shall survive the Date of Grant, the exercise or conversion of this
Warrant (or any part hereof) or the termination or expiration of rights
hereunder. All agreements of the Company and the holder hereof contained herein
shall survive indefinitely until, by their respective terms, they are no longer
operative.

       19.    REMEDIES. In case any one or more of the covenants and agreements
contained in this Warrant shall have been breached, the holders hereof (in the
case of a breach by the Company), or the Company (in the case of a breach by a
holder), may proceed to protect and enforce their or its rights either by suit
in equity and/or by action at law, including, but not limited to, an action for
damages as a result of any such breach and/or an action for specific performance
of any such covenant or agreement contained in this Warrant.

       20.    NO IMPAIRMENT OF RIGHTS. The Company will not, by amendment of its
Charter or through any other means, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or appropriate in order to protect the rights of the
holder of this Warrant against impairment.

       21.    SEVERABILITY. The invalidity or unenforceability of any provision
of this Warrant in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction, or affect any other
provision of this Warrant, which shall remain in full force and effect.

       22.    RECOVERY OF LITIGATION COSTS. If any legal action or other
proceeding is brought for the enforcement of this Warrant, or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of
the provisions of this Warrant, the successful or prevailing party or parties
shall be entitled to recover reasonable attorneys' fees and other costs incurred
in that action or proceeding, in addition to any other relief to which it or
they may be entitled.

       23.    ENTIRE AGREEMENT; MODIFICATION. This Warrant constitutes the
entire agreement between the parties pertaining to the subject matter contained
in it and supersedes all prior and contemporaneous agreements, representations,
and undertakings of the parties, whether oral or written, with respect to such
subject matter.

                                      -13-

<Page>

       The Company has caused this Warrant to be duly executed and delivered as
of the Date of Grant specified above.

                                          TOLERRX, INC.

                                          By     Douglas J. Ringler
                                            ------------------------------------

                                          Title   CEO
                                               ---------------------------------

                                          Address:

                                      -14-QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.1    
    

ADC TELECOMMUNICATIONS, INC.  

 1% CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2008

FLOATING RATE CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2013  

INDENTURE

DATED AS OF JUNE 4, 2003  

U.S. BANK NATIONAL ASSOCIATION,

AS TRUSTEE  

TABLE OF CONTENTS  

	 
	 	 
	 	Page

	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE	 	1
	 	

SECTION 1.1.	
 	

DEFINITIONS	
 	

1
	 	SECTION 1.2.	 	OTHER DEFINITIONS	 	5
	 	SECTION 1.3.	 	TRUST INDENTURE ACT PROVISIONS	 	6
	 	SECTION 1.4.	 	RULES OF CONSTRUCTION	 	6
	

ARTICLE 2 THE SECURITIES	
 	

7
	 	

SECTION 2.1.	
 	

FORM AND DATING	
 	

7
	 	SECTION 2.2.	 	EXECUTION AND AUTHENTICATION	 	8
	 	SECTION 2.3.	 	REGISTRAR, PAYING AGENT AND CONVERSION AGENT	 	9
	 	SECTION 2.4.	 	PAYING AGENT TO HOLD MONEY IN TRUST	 	9
	 	SECTION 2.5.	 	SECURITYHOLDER LISTS	 	9
	 	SECTION 2.6.	 	TRANSFER AND EXCHANGE	 	10
	 	SECTION 2.7.	 	REPLACEMENT SECURITIES	 	10
	 	SECTION 2.8.	 	OUTSTANDING SECURITIES	 	11
	 	SECTION 2.9.	 	TREASURY SECURITIES	 	11
	 	SECTION 2.10.	 	TEMPORARY SECURITIES	 	11
	 	SECTION 2.11.	 	CANCELLATION	 	11
	 	SECTION 2.12.	 	LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS	 	12
	 	SECTION 2.13.	 	CUSIP NUMBERS	 	14
	

ARTICLE 3 REDEMPTION AND PURCHASES	
 	

14
	 	

SECTION 3.1.	
 	

RIGHT TO REDEEM; NOTICES TO TRUSTEE.	
 	

14
	 	SECTION 3.2.	 	SELECTION OF SECURITIES TO BE REDEEMED.	 	14
	 	SECTION 3.3.	 	NOTICE OF REDEMPTION.	 	15
	 	SECTION 3.4.	 	EFFECT OF NOTICE OF REDEMPTION.	 	15
	 	SECTION 3.5.	 	DEPOSIT OF REDEMPTION PRICE.	 	16
	 	SECTION 3.6.	 	SECURITIES REDEEMED IN PART.	 	16
	 	SECTION 3.7.	 	[Intentionally Omitted]	 	16
	 	SECTION 3.8.	 	PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL	 	16
	 	SECTION 3.9.	 	COMPANY'S RIGHT TO ELECT MANNER OF PAYMENT OF CHANGE IN CONTROL PURCHASE PRICE FOR PAYMENT.	 	19
	 	SECTION 3.10.	 	EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE	 	21
	 	SECTION 3.11.	 	DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE	 	21
	 	SECTION 3.12.	 	SECURITIES PURCHASED IN PART	 	22
	 	SECTION 3.13.	 	COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES	 	22
	 	SECTION 3.14.	 	REPAYMENT TO THE COMPANY	 	22
	

ARTICLE 4 CONVERSION	
 	

22
	 	

SECTION 4.1.	
 	

CONVERSION PRIVILEGE	
 	

22
	 	SECTION 4.2.	 	CONVERSION PROCEDURE	 	23
	 	SECTION 4.3.	 	FRACTIONAL SHARES	 	24
	 	SECTION 4.4.	 	TAXES ON CONVERSION	 	24
	 	SECTION 4.5.	 	COMPANY TO PROVIDE STOCK	 	24
	 	SECTION 4.6.	 	ADJUSTMENT OF CONVERSION PRICE	 	24
	 	SECTION 4.7.	 	NO ADJUSTMENT	 	29
	 	SECTION 4.8.	 	ADJUSTMENT FOR TAX PURPOSES	 	29
	 	 	 	 	 

 

	 	SECTION 4.9.	 	NOTICE OF ADJUSTMENT	 	29
	 	SECTION 4.10.	 	NOTICE OF CERTAIN TRANSACTIONS	 	30
	 	SECTION 4.11.	 	EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON CONVERSION PRIVILEGE	 	30
	 	SECTION 4.12.	 	TRUSTEE'S DISCLAIMER	 	31
	 	SECTION 4.13.	 	VOLUNTARY REDUCTION	 	31
	

ARTICLE 5 SUBORDINATION	
 	

31
	 	

SECTION 5.1.	
 	

AGREEMENT OF SUBORDINATION	
 	

31
	 	SECTION 5.2.	 	PAYMENTS TO HOLDERS	 	31
	 	SECTION 5.3.	 	SUBROGATION OF SECURITIES	 	33
	 	SECTION 5.4.	 	AUTHORIZATION TO EFFECT SUBORDINATION	 	34
	 	SECTION 5.5.	 	NOTICE TO TRUSTEE	 	35
	 	SECTION 5.6.	 	TRUSTEE'S RELATION TO SENIOR INDEBTEDNESS	 	35
	 	SECTION 5.7.	 	NO IMPAIRMENT OF SUBORDINATION	 	36
	 	SECTION 5.8.	 	CERTAIN CONVERSIONS DEEMED PAYMENT	 	36
	 	SECTION 5.9.	 	ARTICLE APPLICABLE TO PAYING AGENTS	 	36
	 	SECTION 5.10.	 	SENIOR INDEBTEDNESS ENTITLED TO RELY	 	36
	

ARTICLE 6 COVENANTS	
 	

36
	 	

SECTION 6.1.	
 	

PAYMENT OF SECURITIES	
 	

36
	 	SECTION 6.2.	 	SEC REPORTS	 	37
	 	SECTION 6.3.	 	COMPLIANCE CERTIFICATES	 	37
	 	SECTION 6.4.	 	FURTHER INSTRUMENTS AND ACTS	 	37
	 	SECTION 6.5.	 	MAINTENANCE OF CORPORATE EXISTENCE	 	37
	 	SECTION 6.6.	 	RULE 144A INFORMATION REQUIREMENT	 	37
	 	SECTION 6.7.	 	STAY, EXTENSION AND USURY LAWS	 	38
	 	SECTION 6.8.	 	PAYMENT OF ADDITIONAL INTEREST	 	38
	

ARTICLE 7 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	
 	

38
	 	

SECTION 7.1.	
 	

COMPANY MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS	
 	

38
	 	SECTION 7.2.	 	SUCCESSOR SUBSTITUTED	 	39
	

ARTICLE 8 DEFAULT AND REMEDIES	
 	

39
	 	

SECTION 8.1.	
 	

EVENTS OF DEFAULT	
 	

39
	 	SECTION 8.2.	 	ACCELERATION	 	41
	 	SECTION 8.3.	 	OTHER REMEDIES	 	41
	 	SECTION 8.4.	 	WAIVER OF DEFAULTS AND EVENTS OF DEFAULT	 	41
	 	SECTION 8.5.	 	CONTROL BY MAJORITY	 	41
	 	SECTION 8.6.	 	LIMITATIONS ON SUITS	 	42
	 	SECTION 8.7.	 	RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT	 	42
	 	SECTION 8.8.	 	COLLECTION SUIT BY TRUSTEE	 	42
	 	SECTION 8.9.	 	TRUSTEE MAY FILE PROOFS OF CLAIM	 	42
	 	SECTION 8.10.	 	PRIORITIES	 	43
	 	SECTION 8.11.	 	UNDERTAKING FOR COSTS	 	43
	

ARTICLE 9 TRUSTEE	
 	

43
	 	

SECTION 9.1.	
 	

DUTIES OF TRUSTEE	
 	

43
	 	SECTION 9.2.	 	RIGHTS OF TRUSTEE	 	44
	 	 	 	 	 

ii

 

	 	SECTION 9.3.	 	INDIVIDUAL RIGHTS OF TRUSTEE	 	45
	 	SECTION 9.4.	 	TRUSTEE'S DISCLAIMER	 	45
	 	SECTION 9.5.	 	NOTICE OF DEFAULT OR EVENTS OF DEFAULT	 	45
	 	SECTION 9.6.	 	REPORTS BY TRUSTEE TO HOLDERS	 	45
	 	SECTION 9.7.	 	COMPENSATION AND INDEMNITY	 	46
	 	SECTION 9.8.	 	REPLACEMENT OF TRUSTEE	 	46
	 	SECTION 9.9.	 	SUCCESSOR TRUSTEE BY MERGER, ETC	 	47
	 	SECTION 9.10.	 	ELIGIBILITY; DISQUALIFICATION	 	47
	 	SECTION 9.11.	 	PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY	 	47
	

ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE	
 	

47
	 	

SECTION 10.1.	
 	

SATISFACTION AND DISCHARGE OF INDENTURE	
 	

47
	 	SECTION 10.2.	 	APPLICATION OF TRUST MONEY	 	48
	 	SECTION 10.3.	 	REPAYMENT TO COMPANY	 	48
	 	SECTION 10.4.	 	REINSTATEMENT	 	48
	

ARTICLE 11 AMENDMENTS, SUPPLEMENTS AND WAIVERS	
 	

49
	 	

SECTION 11.1.	
 	

WITHOUT CONSENT OF HOLDERS	
 	

49
	 	SECTION 11.2.	 	WITH CONSENT OF HOLDERS	 	49
	 	SECTION 11.3.	 	COMPLIANCE WITH TRUST INDENTURE ACT	 	50
	 	SECTION 11.4.	 	REVOCATION AND EFFECT OF CONSENTS	 	50
	 	SECTION 11.5.	 	NOTATION ON OR EXCHANGE OF SECURITIES	 	50
	 	SECTION 11.6.	 	TRUSTEE TO SIGN AMENDMENTS, ETC	 	50
	 	SECTION 11.7.	 	EFFECT OF SUPPLEMENTAL INDENTURES	 	51
	

ARTICLE 12 MISCELLANEOUS	
 	

51
	 	

SECTION 12.1.	
 	

TRUST INDENTURE ACT CONTROLS	
 	

51
	 	SECTION 12.2.	 	NOTICES	 	51
	 	SECTION 12.3.	 	COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS	 	52
	 	SECTION 12.4.	 	CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT	 	52
	 	SECTION 12.5.	 	RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS	 	52
	 	SECTION 12.6.	 	RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT	 	52
	 	SECTION 12.7.	 	LEGAL HOLIDAYS	 	53
	 	SECTION 12.8.	 	GOVERNING LAW; SUBMISSION TO JURISDICTION	 	53
	 	SECTION 12.9.	 	NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS	 	53
	 	SECTION 12.10.	 	NO RECOURSE AGAINST OTHERS	 	53
	 	SECTION 12.11.	 	SUCCESSORS	 	53
	 	SECTION 12.12.	 	MULTIPLE COUNTERPARTS	 	53
	 	SECTION 12.13.	 	SEPARABILITY	 	53
	 	SECTION 12.14.	 	TABLE OF CONTENTS, HEADINGS, ETC	 	53
	 	SECTION 12.15.	 	CALCULATIONS IN RESPECT OF THE SECURITIES	 	53

iii

        THIS INDENTURE dated as of June 4, 2003 is between ADC Telecommunications, Inc., a corporation duly organized under the laws of the State of Minnesota (the "Company"), and
U.S. Bank National Association, a national banking association organized and existing under the laws of the United States, as Trustee (the "Trustee"). 

        In
consideration of the premises and the purchase of the Securities by the Holders thereof, both parties agree as follows for the benefit of the other and for the equal and ratable
benefit of the registered Holders of the Company's 1% Convertible Subordinated Notes Due June 15, 2008 and Floating Rate Convertible Subordinated Notes Due June 15, 2013. 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE  

        SECTION 1.1.    DEFINITIONS.    

        "Additional
Interest" has the meaning specified in Section 5 of the Registration Rights Agreement. All references herein to interest accrued or payable as of any date shall
include any Additional Interest accrued or payable as of such date as provided in the Registration Rights Agreement. 

        "Affiliate"
means, with respect to any specified person, 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 person means the power to direct 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. 

        "Agent"
means any Registrar, Paying Agent or Conversion Agent. 

        "Applicable
Procedures" means, with respect to any transfer or exchange of beneficial ownership interests in the Global Securities, the rules and procedures of the Depositary, to the
extent applicable to such transfer or exchange. 

        "Board
of Directors" means either the board of directors of the Company or any committee of the Board of Directors authorized to act for it with respect to this Indenture. 

        "Business
Day" means each day that is not a Legal Holiday. 

        "Capital
Stock" or "capital stock" of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in
(however designated) equity of such Person, but excluding any debt securities convertible into such equity. 

        "Cash"
or "cash" means such coin or currency of the United States as at any time of payment is legal tender for the payment of public and private debts. 

        "Certificated
Securities" means Securities that are in substantially the forms attached hereto as Exhibit A-1 and  Exhibit A-2 and that do not include the
information or the schedule called for by footnotes 1, 3 and 4 thereof. 

        "Common
Stock" means the common stock of the Company, $0.20 par value per share, as it exists on the date of this Indenture and any shares of any class or classes of capital stock of the
Company resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject to redemption by the Company; provided,  however, that if at any time there
shall be more than one such resulting class, the shares of each such class then so issuable on conversion of
Securities shall be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications. 

 

        "Company"
means the party named as such in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Company. 

        "Corporate
Trust Office" means the principal office of the Trustee at which at any particular time its corporate trust business shall be administered which office at the date of the
execution of this Indenture is located at [                        ], Attention: Corporate Trust Services (ADC
Telecommunications, Inc.—1% Convertible Subordinated Notes Due June 15, 2008 and Floating Rate Convertible Subordinated Notes Due June 15, 2013) or at any other time
at such other address as the Trustee may designate from time to time by notice to the Company. 

        "Default"
or "default" means, when used with respect to the Securities, any event which is or, after notice or passage of time or both, would be an Event of Default. 

        "Designated
Senior Indebtedness" means any particular Senior Indebtedness of the Company in which the instrument creating or evidencing the same (or any related agreements or documents
to which the Company is a party) expressly provides that such Senior Indebtedness shall be "Designated Senior Indebtedness" for purposes of this Indenture (provided
that such instrument, agreement or other document may place limitations and conditions on the right of such Senior Indebtedness to exercise the rights of Designated Senior
Indebtedness). 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 

        "Final
Maturity Date", when used with respect to the Fixed Rate Securities, means June 15, 2008 and when used with respect to the Floating Rate Securities, means June 15,
2013. 

        "Fixed
Rate Securities" means any of the Company's 1% Convertible Subordinated Notes Due June 15, 2008, as amended or supplemented from time to time, that are issued under this
Indenture. 

        "Floating
Rate Securities" means any of the Company's Floating Rate Convertible Subordinated Notes Due June 15, 2013, as amended or supplemented from time to time, that are issued
under this Indenture. 

        "GAAP"
means generally accepted accounting principles in the United States of America as in effect as of the date of this Indenture, including those set forth in (1) the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, (2) the statements and pronouncements of the Financial Accounting Standards
Board, (3) such other statements by such other entity as approved by a significant segment of the accounting profession and (4) the rules and regulations of the SEC governing the
inclusion of financial statements (including pro forma financial statements) in registration statements filed under the Securities Act and periodic reports required to be filed pursuant to
Section 13 of the Exchange Act, including opinions and
pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC. 

        "Global
Securities" means Securities that are in substantially the forms attached hereto as Exhibit A-1 or  Exhibit A-2 and that include the information
and schedule called for by footnotes 1, 3 and 4 thereof and which are deposited with the
Depositary or its custodian and registered in the name of the Depositary or its nominee. 

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

        "Indebtedness"
means, with respect to any Person, without duplication, (a) all indebtedness, obligations and other liabilities (contingent or otherwise) of such Person
(i) for borrowed money (including obligations of such Person in respect of overdrafts, foreign exchange contracts, currency 

2

 

exchange
agreements, interest rate protection agreements, and any loans or advances from banks, whether or not evidenced by notes or similar instruments) or (ii) evidenced by credit or loan
agreements, bonds, debentures, notes or similar instruments (whether or not the recourse of the lender is to the whole of the assets of such Person or to only a portion thereof) (other than any
accounts payable or other accrued current liability or obligation incurred in the ordinary course of business in connection with the obtaining of materials or services), (b) all reimbursement
obligations and other liabilities (contingent or otherwise) of such Person with respect to letters of credit, bank guarantees or bankers' acceptances, (c) all obligations and liabilities
(contingent or otherwise) of such Person in respect of leases of such Person required, in conformity with GAAP, to be accounted for as capitalized lease obligations on the balance sheet of such
Person, (d) all obligations and liabilities (contingent or otherwise) of such Person under any lease or related document (including a purchase agreement, conditional sale or other title
retention agreement) in connection with the lease of real property or improvements thereon (or any personal property included as part of any such lease) which provides that such Person is
contractually obligated to purchase or cause a third party to purchase the leased property or pay an agreed upon residual value of the leased property to the lessor (whether or not such lease
transaction is characterized as an operating lease or a capitalized lease in accordance with GAAP), (e) all obligations (contingent or otherwise) of such Person with respect to any interest
rate or other swap, cap, floor or collar agreement, hedge agreement, forward contract, or other similar instrument or agreement or foreign currency hedge, exchange, purchase or similar instrument or
agreement; (f) all direct or indirect guarantees, or similar agreements by such Person in respect of, and obligations or liabilities of such Person to purchase or otherwise acquire or otherwise
assure a creditor against loss in respect of, indebtedness, obligations or liabilities of another Person of the kinds described in clauses (a) through (e), and (g) any and all deferrals,
renewals, extensions, refinancings and refundings of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of the kinds described in clauses (a) through
(f). 

        "Indenture"
means this Indenture as amended or supplemented from time to time pursuant to the terms of this Indenture. 

        "Initial
Purchasers" means Banc of America Securities LLC, Credit Suisse First Boston LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co.
Incorporated. 

        "Interest"
on any Security shall refer to interest and Additional Interest thereon, unless the context otherwise requires. 

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

        "Officers'
Certificate" means a certificate signed by two Officers; provided, however,
that for purposes of Sections 4.11 and 6.3, "Officers' Certificate" means a certificate signed by the principal executive officer, principal financial officer or principal accounting officer of the
Company and by one other Officer. 

        "Opinion
of Counsel" means a written opinion from legal counsel. The counsel may be an employee of or counsel to the Company or the Trustee. 

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

        "Principal"
or "principal" of a debt security, including the Securities, means the principal of the security plus, when appropriate, the premium, if any, on the security. 

3

 

        "Redemption
Date" or "redemption date" means the date specified for redemption of the Floating Rate Securities in accordance with the terms of the Floating Rate Securities and this
Indenture. 

        "Redemption
Price" or "redemption price" has the meaning set forth in paragraph 19 of the Floating Rate Securities. 

        "Registration
Rights Agreement" means the Registration Rights Agreement dated as of June 19, 2003, between the Company and the Initial Purchasers. 

        "Representative"
means the (a) indenture trustee or other trustee, agent or representative for any Senior Indebtedness or (b) with respect to any Senior Indebtedness that
does not have any such trustee, agent or other representative, (i) in the case of such Senior Indebtedness issued pursuant to an agreement providing for voting arrangements as among the holders
or owners of such Senior Indebtedness, any holder or owner of such Senior Indebtedness acting with the consent of the required persons necessary to bind such holders or owners of such Senior
Indebtedness and (ii) in the case of all other such Senior Indebtedness, the holder or owner of such Senior Indebtedness. 

        "Restricted
Global Security" means a Global Security that is a Restricted Security. 

        "Restricted
Security" means a Security required to bear the restricted legend set forth in the form of Securities set forth in Exhibits A-1 and A-2 of this
Indenture. 

        "Rule 144"
means Rule 144 under the Securities Act or any successor to such Rule. 

        "Rule 144A"
means Rule 144A under the Securities Act or any successor to such Rule. 

        "SEC"
means the Securities and Exchange Commission. 

        "Securities"
means any of the Company's Fixed Rate Securities and Floating Rate Securities or any of them (each, a "Security"), as amended or supplemented from time to time, that are
issued under this Indenture. 

        "Securities
Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 

        "Securities
Custodian" means the Trustee, as custodian with respect to the Securities in global form, or any successor thereto. 

        "Senior
Indebtedness" means the principal of, premium, if any, interest (including any interest accruing subsequent to the commencement of any bankruptcy or similar proceeding, whether
or not a claim for post-petition interest is allowed as a claim in any such proceeding) and rent payable on or in connection with, and all fees, costs, expenses and other amounts accrued
or due on or in connection with, Indebtedness of the Company whether secured or unsecured, absolute or contingent, due or to become due, outstanding on the date of this Indenture or thereafter
created, incurred, assumed, guaranteed or in effect guaranteed by the Company (including all deferrals, renewals, extensions or refundings of, or amendments, modifications or supplements to, the
foregoing), unless in the case of any particular Indebtedness the instrument creating or evidencing the same or the assumption or guarantee thereof expressly provides that such Indebtedness shall not
be senior in right of payment to the Securities or expressly provides that such Indebtedness is "pari passu" or "junior" to the Securities. Notwithstanding the foregoing, the term Senior Indebtedness
shall not include (i) any Indebtedness of the Company to any majority-owned Subsidiary of the Company (other than Indebtedness of the Company arising by reason of guarantees by the Company of
Indebtedness of any such Subsidiary to a Person that is not a Subsidiary of the Company) or (ii) the Securities. 

        "Significant
Subsidiary" means, in respect of any Person, a Subsidiary of such Person that would constitute a "significant subsidiary" as such term is defined under
Rule 1-02 of Regulation S-X under the Securities Act and the Exchange Act. 

4

 

        "Subsidiary"
means, in respect of any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, general partners or trustees
thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more
Subsidiaries of such Person. 

        "TIA"
means the Trust Indenture Act of 1939, as amended, and the rules and regulations thereunder as in effect on the date of this Indenture, except as provided in Section 11.3,
and except to the extent any amendment to the Trust Indenture Act expressly provides for application of the Trust Indenture Act as in effect on another date. 

        "Trading
Day" means a day during which trading in securities generally occurs on the Nasdaq National Market (or, if the Common Stock is not quoted on the Nasdaq National Market, on the
principal market on which the Common Stock is then traded), other than a day on which a material suspension of or limitation on trading is imposed that affects either the Nasdaq National Market (or,
if applicable, such other market) in its entirety or only the shares of Common Stock (by reason of movements in price exceeding limits permitted by the relevant market on which the shares are traded
or otherwise) or
on which the Nasdaq National Market (or, if applicable, such other market) cannot clear the transfer of shares due to an event beyond the Company's control. 

        "Trustee"
means the party named as such in the first paragraph of this Indenture until a successor replaces it in accordance with the provisions of this Indenture, and thereafter means
the successor. 

        "Trust
Officer" means, with respect to the Trustee, any officer assigned to the Corporate Trust Office, and also, with respect to a particular matter, any other officer to whom such
matter is referred because of such officer's knowledge of and familiarity with the particular subject. 

        "Unrestricted
Certificated Security" means a Certificated Security that is not a Restricted Security. 

        "Unrestricted
Global Security" means a Global Security that is not a Restricted Security. 

        "Vice
President" when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title
"vice president." 

        "Voting
Stock" of a Person means all classes of Capital Stock or other interests (including partnership interests) of such Person then outstanding and normally entitled (without regard
to the occurrence of any contingency) to vote in the election of directors. 

        SECTION 1.2.    OTHER DEFINITIONS.    

	Term
 
	 	Defined in Section
	 
	"Agent Members"	 	2.1	(b)
	"Bankruptcy Law"	 	8.1	 
	"Change in Control"	 	3.8	(a)
	"Change in Control Purchase Date"	 	3.8	(a)
	"Change in Control Purchase Notice"	 	3.8	(c)
	"Change in Control Purchase Price"	 	3.8	(a)
	"Closing Price"	 	4.6	(d)
	"Company Notice"	 	3.8	(a)
	"Company Order"	 	2.2	 
	"Conversion Agent"	 	2.3	 
	"Conversion Date"	 	4.2	 
	"Conversion Price"	 	4.6	 
	"Current Market Price"	 	4.6	(d)
	 	 	 	 

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	"Custodian"	 	8.1	 
	"DTC"	 	2.1	(a)
	"Depositary"	 	2.1	(a)
	"Determination Date"	 	4.6	(c)
	"Event of Default"	 	8.1	 
	"Expiration Date"	 	4.6	(c)
	"Expiration Time"	 	4.6	(c)
	"Instrument"	 	8.1	(6)
	"Legal Holiday"	 	12.7	 
	"Legend"	 	2.12	(a)
	"Notice of Default"	 	8.1	(6)
	"Paying Agent"	 	2.3	 
	"Payment Blockage Notice"	 	5.2	 
	"Primary Registrar"	 	2.3	 
	"Purchase Agreement"	 	2.1	 
	"Purchased Shares"	 	4.6	(c)
	"QIB"	 	2.1	 
	"Registrar"	 	2.3	 
	"Trigger Event"	 	4.6	(c)
	"Triggering Distribution"	 	4.6	(c)
	"Unissued Shares"	 	3.8	(a)

        SECTION 1.3.    TRUST INDENTURE ACT PROVISIONS.    

        Whenever
this Indenture refers to a provision of the TIA, that provision is incorporated by reference in and made a part of this Indenture. The Indenture shall also include those
provisions of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of 1990. 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; and "obligor" on the indenture securities means the Company or any other obligor on the Securities. 

        All
other terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by any SEC rule and not otherwise defined herein have the
meanings assigned to them therein. 

        SECTION 1.4.    RULES OF CONSTRUCTION.    

        Unless
the context otherwise requires: 

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

        (B)  an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 

        (C)  words
in the singular include the plural, and words in the plural include the singular; 

        (D)  provisions
apply to successive events and transactions; 

        (E)  the
term "merger" includes a statutory share exchange and the term "merged" has a correlative meaning; 

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        (F)  the
masculine gender includes the feminine and the neuter; 

        (G)  references
to agreements and other instruments include subsequent amendments thereto; and 

        (H)  "herein,"
"hereof" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 

ARTICLE 2

THE SECURITIES  

        SECTION 2.1.    FORM AND DATING.    

        The
Securities and the Trustee's certificate of authentication shall be substantially in the respective forms set forth in Exhibits A-1 and A-2, which are
incorporated in and made part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule or usage. 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. The Securities are being offered and sold by the Company pursuant to a Purchase
Agreement, dated May 29, 2003 (the "Purchase Agreement"), between the Company and the Initial Purchasers, in transactions exempt from, or not
subject to, the registration requirements of the Securities Act. 

        (a)   Restricted Global Securities. All of the Securities are initially being offered and sold to qualified institutional
buyers as defined in Rule 144A (collectively, "QIBs" or individually, each a "QIB") in reliance on Rule 144A under the Securities Act and
shall be issued initially in the form of one or more Restricted Global Securities, which shall be deposited on behalf of the purchasers of the Securities represented thereby with the Trustee, at its
Corporate Trust Office, as custodian for the depositary, The Depository Trust Company ("DTC") (such depositary, or any successor thereto, being
hereinafter referred to as the "Depositary"), and registered in the name of its nominee, Cede & Co., duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the Restricted Global Securities may from time to time be increased or decreased by adjustments made on the
records of the Securities Custodian as hereinafter provided, subject in each case to compliance with the Applicable Procedures. 

        (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, purchases or conversions of such Securities. 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. Upon effectiveness of a shelf registration
statement pursuant to the Registration Rights Agreement, the Company shall issue, and the Trustee shall authenticate, a Global Security with respect to each series of Securities in the form of
Exhibit A-1 or A-2 hereof, as applicable, which Global Securities shall not bear the Legend. Upon any sale of a beneficial interest in a Restricted Global Security
pursuant to such registration statement and delivery of appropriate evidence thereof to the Trustee or any sale or transfer of a beneficial interest in connection with which the Legend may be removed
in accordance with this Indenture, the Trustee shall increase the principal amount of the unrestricted Global Security by the amount of such sale (or, as permitted by this Indenture, issued an
unrestricted Certificated Security) and likewise reduce the principal amount of the Restricted Global Security. 

7

 

        Members
of, or participants in, the Depositary ("Agent Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or under the Global Security, and the Depositary (including, for this purpose, its nominee) 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 (A) 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 (B) impair, as between the
Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Security. 

        (c)   Book Entry Provisions. 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 (i) shall be registered in the name of the Depositary or its nominee, (ii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary's instructions and (iii) shall bear legends substantially in the form of the first paragraph of Exhibits A-1 and A-2 hereto. 

        SECTION 2.2.    EXECUTION AND AUTHENTICATION.    

        An
Officer shall sign the Securities for the Company by manual or facsimile signature attested by the manual or facsimile signature of the Secretary or an Assistant Secretary of the
Company. Typographic and other minor errors or defects in any such facsimile signature shall not affect the validity or enforceability of any Security which has been authenticated and delivered by the
Trustee. 

        If
an Officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless. 

        A
Security shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Security. The signature shall be conclusive evidence
that the Security has been authenticated under this Indenture. 

        The
Trustee shall authenticate and make available for delivery Securities for original issue in an aggregate principal amount of up to $175,000,000 Fixed Rate Securities (subject to
increase by up to $25,000,000 in the event the Initial Purchasers exercise the option to purchase additional Securities granted to them in the Purchase Agreement) and an aggregate principal amount of
up to $175,000,000 Floating Rate Securities (subject to increase by up to $25,000,000 in the event the Initial Purchasers exercise the option to purchase additional Securities granted to them in the
Purchase Agreement) upon receipt of a written order or orders of the Company signed by an Officer of the Company (a "Company Order"). The Company Order
shall specify the amount of Securities to be authenticated, shall provide that all such Securities will be represented by a Restricted Global Security and the date on which each original issue of
Securities is to be authenticated. The aggregate principal amount of Securities outstanding at any time of either series may not exceed the amounts in the foregoing sentence, except as provided in
Section 2.7. The Floating Rate Securities and the Fixed Rate Securities shall each constitute a separate series of Securities issued hereunder and each such series shall vote separately as its
own class under the Indenture, except where otherwise provided. 

        The
Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An
authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent shall have the same rights as an Agent to deal with the Company or an Affiliate of the Company. 

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

8

 

        SECTION 2.3.    REGISTRAR, PAYING AGENT AND CONVERSION AGENT.    

        The
Company shall maintain one or more offices or agencies where Securities may be presented for registration of transfer or for exchange (each, a
"Registrar"), one or more offices or agencies where Securities may be presented for payment (each, a "Paying
Agent"), one or more offices or agencies where Securities may be presented for conversion (each, a "Conversion Agent") and one
or more offices or agencies where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will at all times maintain a Paying Agent,
Conversion Agent, Registrar and an office or agency where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served in the Borough of Manhattan, The City
of New York. One of the Registrars (the "Primary Registrar") shall keep a register of the Securities and of their transfer and exchange. 

        The
Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture. 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 Agent not a party to this Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or
agent for service of notices and demands in any place required by this Indenture, or fails to give the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company may
act as Paying Agent (except for the purposes of Section 6.1 and Article 10). 

        The
Company hereby initially designates the Trustee as Paying Agent, Registrar, Custodian and Conversion Agent, and the office or agency of the Trustee in the Borough of Manhattan, The
City of New York (which shall initially be the office of the Trustee located at 100 Wall Street, Suite 1600, New York, New York 10005) as one such office or agency of the Company for each of the
aforesaid purposes. 

        SECTION 2.4.    PAYING AGENT TO HOLD MONEY IN TRUST.    

        Prior
to 11:00 a.m., New York City time, on each due date of the principal of, interest or Additional Interest, if any, on any Securities, the Company shall deposit with a Paying
Agent a sum sufficient to pay such principal, interest or Additional Interest, if any, so becoming due. Subject to Section 5.2, a Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money held by the
Paying Agent for the payment of principal of, interest or Additional Interest, if any, on the Securities, and shall notify the Trustee of any default by the Company (or any other obligor on the
Securities) in making any such payment. If the Company or an Affiliate of the Company acts as Paying Agent, it shall, before 11:00 a.m., New York City time, on each due date of the principal
of, interest or Additional Interest, if any, on any Securities, segregate the money and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money held by it
to the Trustee, and the Trustee may at any time during the continuance of any default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to the Trustee all sums so
held in trust by such Paying Agent. Upon doing so, the Paying Agent (other than the Company) shall have no further liability for the money. 

        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
Primary Registrar, the Company shall furnish to the Trustee on or before each interest payment date, 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. 

9

 

        SECTION 2.6.    TRANSFER AND EXCHANGE.    

        (a)   Subject
to compliance with any applicable additional requirements contained in Section 2.12, when a Security is presented to a Registrar with a request to
register a transfer thereof or to exchange such Security for an equal principal amount of Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange
as requested; provided, however, that every Security presented or surrendered for registration of
transfer or exchange shall be duly endorsed or accompanied by an assignment form and, if applicable, a transfer certificate each in the form included in Exhibits A-1 and A-2,
as applicable, and in form satisfactory to the Registrar, duly executed by the Holder thereof or its attorney duly authorized in writing. To permit registration of transfers and exchanges, upon
surrender of any Security for registration of transfer or exchange at an office or agency maintained pursuant to Section 2.3, the Company shall execute and the Trustee shall authenticate
Securities of a like aggregate principal amount at the Registrar's request. Any exchange or transfer shall be without charge, except that the Company or the Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation thereto, and provided, that this sentence shall not apply to
any exchange pursuant to Section 2.10, 2.12(a), 3.5, 4.2 (last paragraph) or 11.5. 

        Neither
the Company, any Registrar nor the Trustee shall be required to exchange or register a transfer of any Securities or portions thereof in respect of which a Change in Control
Purchase Notice has been
delivered and not withdrawn by the Holder thereof (except, in the case of the purchase of a Security in part, the portion thereof not to be purchased). 

        All
Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such transfer or exchange. 

        (b)   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. 

        (c)   Each
Holder of a Security agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such
Holder's Security in violation of any provision of this Indenture and/or applicable United States federal or state securities law. 

        SECTION 2.7.    REPLACEMENT SECURITIES.    

        If
any mutilated Security is surrendered to the Company, a Registrar or the Trustee, or the Company, a Registrar and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and the Trustee such security or indemnity as will be required by them to save each of them
harmless, then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has been acquired by a bona fide 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 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 3,
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 reasonable expenses (including the reasonable fees and expenses of the Trustee or the Registrar) in connection therewith. 

10

 

        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 mutilated, 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 (to the extent lawful) 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.    

        Securities
outstanding at any time are all Securities authenticated by the Trustee, except for those canceled by it, those converted pursuant to Article 4, those delivered to it
for cancellation or surrendered for transfer or exchange and those described in this Section 2.8 as not outstanding. 

        If
a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the Company receives proof satisfactory to it that the replaced Security is held by a bona
fide purchaser. 

        If
a Paying Agent (other than the Company or an Affiliate of the Company) holds on a Redemption Date, Change in Control Purchase Date or the Final Maturity Date money sufficient to pay
the principal of (including premium, if any), interest and Additional Interest, if any, on Securities (or portions thereof) payable on that date, then on and after such Redemption Date, Change in
Control Purchase Date or the Final Maturity Date, as the case may be, such Securities (or portions thereof, as the case may be) shall cease to be outstanding and interest and Additional Interest, if
any, on them shall cease to accrue. 

        Subject
to the restrictions contained in Section 2.9, a Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security. 

        SECTION 2.9.    TREASURY SECURITIES.    

        In
determining whether the Holders of the required principal amount of Securities have concurred in any notice, direction, waiver or consent, Securities owned by the Company or any other
obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be disregarded, except that, for purposes of determining whether the Trustee shall be protected in relying
on any such notice,
direction, waiver or consent, only Securities which a Trust Officer of the Trustee actually knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith shall
not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to the Securities and that the pledgee is not the Company or any other
obligor on the Securities or any Affiliate of the Company or of such other obligor. 

        SECTION 2.10.    TEMPORARY SECURITIES.    

        Until
definitive Securities are ready for delivery, the Company may prepare and execute, and, upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary
Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company with the consent of the Trustee considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate and deliver definitive Securities in exchange for temporary Securities. 

        SECTION 2.11.    CANCELLATION.    

        The
Company at any time may deliver Securities to the Trustee for cancellation. The Registrar, the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any
Securities surrendered to them for transfer, exchange, payment or conversion. The Trustee and no one else shall cancel, in accordance with its standard procedures, all Securities surrendered for
transfer, exchange, 

11

 

payment,
conversion or cancellation and shall deliver the canceled Securities to the Company. All Securities which are purchased or otherwise acquired by the Company or any of its Subsidiaries prior
to the Final Maturity Date may be delivered to the Trustee for cancellation or, if permitted by law, be resold. The Company may not hold or resell such Securities or issue any new Securities to
replace any Securities cancelled or any Securities that any Holder has converted pursuant to Article 4. 

        SECTION 2.12.    LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS.    

        (a)   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
Securities attached hereto as Exhibits A-1 and A-2 (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 if requested by the Company or such Registrar, as may be reasonably required by the Company and the Registrar, 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 144 under the Securities Act or that such Securities are not
"restricted" within the meaning of Rule 144 under the Securities Act; provided that no such evidence need be supplied in connection with the sale
of such Security pursuant to a registration statement that is effective at the time of such sale. Upon (i) provision of such satisfactory evidence if requested, 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 an Affiliate of the
Company, the Legend shall be reinstated. 

        (b)   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 the foregoing 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. Notwithstanding any other provisions of this Indenture or the Securities, transfers of a Global Security, in whole or in part, shall be made only in accordance with this
Section 2.12. 

        (c)   Subject
to the succeeding paragraph, every Security shall be subject to the restrictions on transfer provided in the Legend. 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 forms set forth in Exhibits A-1 and A-2, as applicable, dated the date of such 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. 

        (d)   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, if requested by the Company or the Registrar,
an opinion of counsel reasonably acceptable to the 

12

 

Company
and addressed 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. 

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

        (f)    The
provisions of clauses (i), (ii), (iii), (iv) and (v) below shall apply only to Global Securities: 

          (i)  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 (A) 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 Exchange Act, and a successor Depositary is not appointed by the Company within 90 days after receipt of
such notice or the Company becomes aware of such failure of registration, (B) the Company has provided the Depositary with written notice that it has decided to discontinue use of the system of
book-entry transfer through the Depositary or any successor Depositary or (C) an Event of Default has occurred and is continuing with respect to the Securities. Any Global Security
exchanged pursuant to clauses (A) or (B) above shall be so exchanged in whole and not in part, and any Global Security exchanged pursuant to clause (C) 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. 

         (ii)  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 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. 

        (iii)  Subject
to the provisions of clause (v) below, the registered Holder may grant proxies and otherwise authorize any Person, including Agent Members 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. 

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

13

 

         (v)  Neither
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 in issuing the Securities may use one or more "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of purchase 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 purchase and that reliance may be placed only on the other identification numbers printed on the Securities, and any such
purchase 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. 

ARTICLE 3

REDEMPTION AND PURCHASES  

        SECTION 3.1.    RIGHT TO REDEEM; NOTICES TO TRUSTEE..    

        The
Fixed Rate Securities may not be redeemed by the Company prior to the Final Maturity Date. 

        The
Company, at its option, may redeem the Floating Rate Securities in accordance with the provisions of paragraph 14 of the Floating Rate Securities. 

        The
Company may not redeem the Floating Rate Securities if it has failed to pay any interest or premium on the Floating Rate Securities and such failure to pay is continuing. 

        The
Company shall give the notice to the Trustee provided for in this Section 3.1 by a Company Order, at least 45 days before the Redemption Date (unless a shorter notice
shall be satisfactory to the Trustee). 

        SECTION 3.2.    SELECTION OF SECURITIES TO BE REDEEMED.    

        If
less than all the outstanding Floating Rate Securities are to be redeemed, the Trustee shall select the Floating Rate Securities to be redeemed in principal amounts of $1,000 or
integral multiples of $1,000 by lot, pro rata or by another method the Trustee considers fair and appropriate. The Trustee shall make the selection at least 30 days but not more than
60 days before the Redemption Date from outstanding Floating Rate Securities not previously called for redemption. The Trustee may select for redemption portions of the principal amount of
Floating Rate Securities that have denominations larger than $1,000. 

        Provisions
of this Indenture that apply to Floating Rate Securities called for redemption also apply to portions of Floating Rate Securities called for redemption. The Trustee shall
notify the Company promptly of the Floating Rate Securities or portions of Floating Rate Securities to be redeemed. 

        If
any Floating Rate Security selected for partial redemption is converted in part before termination of the conversion right with respect to the portion of the Floating Rate Security so
selected, the converted portion of such Floating Rate Security shall be deemed (so far as may be) to be 

14

 

the
portion selected for redemption. Floating Rate Securities which have been converted during a selection of Floating Rate 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, or shall cause to be mailed, a notice of redemption by first-class mail,
postage prepaid, to each Holder of Floating Rate Securities to be redeemed. 

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

	•
	the
aggregate principal amount of the Securities to be redeemed;

	•
	the
Redemption Date (which shall be a Business Day);

	•
	the
Redemption Price including the amount of accrued and unpaid interest to be paid on such Floating Rate Securities;

	•
	the
then current Conversion Price;

	•
	the
name and address of the Paying Agent and Conversion Agent;

	•
	that
Floating Rate Securities called for redemption may be converted at any time before the close of business on the date that is the last Business Day prior to the
Redemption Date unless the Company fails to pay the Redemption Price;

	•
	that
Holders who want to convert Floating Rate Securities must satisfy the requirements set forth in paragraph 6 of the Securities;

	•
	that
Floating Rate Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price;

	•
	if
fewer than all the outstanding Floating Rate Securities of such series are to be redeemed, the certificate numbers, if any, and principal amounts of the particular
Floating Rate Securities to be redeemed;

	•
	that,
unless the Company defaults in making payment of such Redemption Price, interest on Floating Rate Securities called for redemption will cease to accrue on and after
the Redemption Date; and

	•
	the
CUSIP number of the Floating Rate 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 the Company makes such request at least three Business Days
prior to the date by which such notice of redemption must be given to Holders in accordance with this Section 3.3. Concurrently with the mailing of any such notice of redemption, the Company
shall issue a press release announcing such redemption, the form and content of which shall be determined by the Company. 

        SECTION 3.4.    EFFECT OF NOTICE OF REDEMPTION.    

        Once
notice of redemption is given, Floating Rate Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price stated in the notice except
for Floating Rate 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, plus accrued and unpaid interest to, but excluding, the Redemption Date. If the Redemption Date falls after an interest payment record date and on or before an interest payment date, then the 

15

 

interest
payment will be payable to the Holders who present the Floating Rate Securities for redemption. 

        On
and after the Redemption Date, unless the Company defaults in the deposit of the redemption price, interest will cease to accrue on the Floating Rate Securities or any portion of the
Floating Rate Securities called for redemption, the conversion right with respect to the Floating Rate Securities or any portion of the Floating Rate Securities called for redemption will lapse and
all other rights of the Holder will terminate other than the right to receive the Redemption Price, without interest from the Redemption Date, on surrender of the Floating Rate Securities. 

        SECTION 3.5.    DEPOSIT OF REDEMPTION PRICE.    

        Prior
to 12:00 p.m. (New York City time) on the Redemption Date, the Company shall deposit with the Paying Agent (or the Trustee) money sufficient to pay the Redemption Price of
and accrued and unpaid interest on all Floating Rate Securities to be redeemed on that date other than Floating Rate Securities or portions of Floating Rate 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 that purpose because of conversion of Floating Rate Securities pursuant to Article 4. If such money is then held by the Company in trust and is not required for such purpose it
shall be discharged from such trust. 

        SECTION 3.6.    SECURITIES REDEEMED IN PART.    

        Upon
surrender of a Floating Rate Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder, without service charge, a new
Floating Rate Security in an authorized denomination equal in principal amount to, and in exchange for, the unredeemed portion of the Floating Rate Security surrendered. 

        SECTION 3.7.    [Intentionally Omitted].    

        SECTION 3.8.    PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL.    

        (a)   If
at any time that Securities remain outstanding there shall occur a Change in Control, Securities shall be purchased by the Company at the option of the Holders, as of
the date that is 30 Business Days after the occurrence of the Change in Control (the "Change in Control Purchase Date") at a purchase price equal to 100% of the principal amount of the Securities,
together with accrued and unpaid interest and Additional Interest, if any, to, but excluding, the Change in Control Purchase Date (the "Change in Control Purchase Price"), subject to satisfaction by
or on behalf of any Holder of the requirements set forth in subsection (c) of this Section 3.8. 

        A
"Change in Control" shall be deemed to have occurred if any of the following occurs after the date hereof (whether or not such transaction is pursuant to Article 7): 

        (1)   any
"person" or "group" (as such terms are defined below) is or becomes the "beneficial owner" (as defined below) of shares of Voting Stock of the Company representing
50% or more of the total voting power of all outstanding Voting Stock of the Company or has the power, directly or indirectly, to elect a majority of the members of the Board of Directors of the
Company; or 

        (2)   the
Company consolidates with, or merges with or into, another Person or the Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of the assets of the Company, or any Person consolidates with, or merges with or into, the Company, in any such event other than pursuant to a transaction in which the Persons that
"beneficially owned" (as defined below) shares of Voting Stock of the Company immediately prior to such transaction "beneficially own" (as defined below) shares of Voting Stock of the Company
representing at least 

16

 

a
majority of the total voting power of all outstanding Voting Stock of the surviving or transferee Person; or 

        (3)   the
holders of capital stock of the Company approve any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in compliance with
the terms hereof). 

For
the purpose of the definition of "Change in Control", (i) "person" and "group" have the meanings given such terms under Section 13(d) and 14(d) of the Exchange Act or any successor
provision to either of the foregoing, and the term "group" includes any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of
Rule 13d-5(b)(1) under the Exchange Act (or any successor provision thereto), (ii) a "beneficial owner" shall be determined in
accordance with Rule 13d-3 under the Exchange Act, as in effect on the date of this Indenture, except that the number of shares of Voting Stock of the Company shall be deemed to
include, in addition to all outstanding shares of Voting Stock of the Company and Unissued Shares deemed to be held by the "person" or "group" (as such terms are defined above) or other Person with
respect to which the Change in Control determination is being made, all Unissued Shares deemed to be held by all other Persons, and (iii) the terms "beneficially owned" and "beneficially own"
shall have meanings correlative to that of "beneficial owner". The term "Unissued Shares" means shares of Voting Stock not outstanding that are subject to options, warrants, rights to purchase or
conversion privileges exercisable within 60 days of the date of determination of a Change in Control. 

        Notwithstanding
anything to the contrary set forth in this Section 3.8, a Change in Control will not be deemed to have occurred if either: 

         (1)  the
Closing Price (determined in accordance with Section 4.6(d) of this Indenture) of the Common Stock for any five Trading Days during the ten Trading Days
immediately preceding the Change in Control is at least equal to 105% of the Conversion Price in effect on such Trading Day; or 

         (2)  in
the case of a merger or consolidation, at least 50% of the consideration by value in the merger or consolidation constituting the Change in Control consists of common
stock or American Depositary Receipts (or other securities representing common equity interests) and any associated rights traded on a United States national securities exchange or quoted on the
Nasdaq National Market (or which will be so traded or quoted when issued or exchanged in connection with such Change in Control) and as a result of such transaction or transactions at least 50% of the
value of the consideration for which the Securities become convertible consists of such common stock or American Depositary Receipts (or other securities representing common equity interests) and
associated rights. The value of common stock, American Depositary Receipts or other securities representing common equity interests shall be the closing price therefor on the date of such merger or
consolidation on the principal U.S. trading market therefor, and the value of other consideration shall be the fair market value thereof on such date. 

        (b)   Within
10 Business Days after the occurrence of a Change in Control, the Company shall mail a written notice ("Company
Notice") of the Change in Control to the Trustee and to each Holder (and to beneficial owners as required by applicable law). The notice shall include the form of a Change in
Control Purchase Notice to be completed by the Holder and shall state: 

         (1)  the
date of such Change in Control and, briefly, the terms, conditions and events causing such Change in Control; 

         (2)  the
date by which the Change in Control Purchase Notice pursuant to this Section 3.8 must be given; 

         (3)  the
Change in Control Purchase Date; 

17

 

         (4)  the
Change in Control Purchase Price; 

         (5)  the
Holder's right to require the Company to purchase the Securities; 

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

         (7)  the
name and address of each Paying Agent and Conversion Agent; 

         (8)  the
Conversion Price and any adjustments thereto; 

         (9)  that
Securities as to which a Change in Control Purchase Notice has been given may be converted into Common Stock pursuant to Article 4 of this Indenture only to
the extent that the Change in Control Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 

       (10)  the
procedures that the Holder must follow to exercise rights under this Section 3.8; 

       (11)  the
procedures for withdrawing a Change in Control Purchase Notice, including a form of notice of withdrawal; 

       (12)  that
the Holder must satisfy the requirements set forth in the Securities in order to convert the Securities; and 

       (13)  whether
the Change in Control Purchase Price will be paid in cash, Common Stock or American Depositary Receipts (or other securities representing common equity
interests), or a combination thereof and, if a combination thereof, the percentage that it will pay in cash or shares of Common Stock or such other securities. 

        If
any of the Securities is in the form of a Global Security, then the Company shall modify such notice to the extent necessary to accord with the procedures of the Depositary applicable
to the repurchase of Global Securities. 

        In
the event the Company has elected to pay the Change in Control Purchase Price (or a specified percentage thereof) with shares of Common Stock or other securities, the Company Notice
shall state, in addition to the items specified above, (i) that each Holder will receive a number of shares of Common Stock or other securities equal to the quotient obtained by dividing
(x) the portion of the Change in Control Purchase Price to be paid in shares of Common Stock or other securities, by (y) 97% of the average of the Closing Prices of the Common Stock or
such other securities for the 15 Trading Days immediately preceding and including the third Trading Day prior to the Repurchase Date (except any cash amount to be paid in lieu of fractional shares);
and (ii) that because the market price of shares of common stock or other securities will be determined prior to the Change in Control Purchase Date, Holders of the Securities will bear the
market risk with respect to the value of such securities to be received from the date such market price is determined to the Change in Control Purchase Date. 

        (c)   A
Holder may exercise its rights specified in subsection (a) of this Section 3.8 upon delivery of a written notice (which shall be in substantially the
form included in Exhibits A-1 and A-2 hereto, as applicable, and which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or in any other
written form and, in the case of Global Securities, may be delivered electronically or by other means in accordance with the Depositary's customary procedures) of the exercise of such rights (a
"Change in Control Purchase Notice") to any Paying Agent at any time prior to the close of business on the Business Day next preceding the Change in
Control Purchase Date. 

        The
delivery of such Security to any Paying Agent (together with all necessary endorsements) at the office of such Paying Agent shall be a condition to the receipt by the Holder of the
Change in Control Purchase Price therefor. 

18

 

        The
Company shall purchase from the Holder thereof, pursuant to this Section 3.8, a portion of a Security if the principal amount of such portion is $1,000 or an integral multiple
of $1,000. Provisions of the Indenture that apply to the purchase of all of a Security pursuant to Sections 3.8 through 3.14 also apply to the purchase of such portion of such Security. 

        Notwithstanding
anything herein to the contrary, any Holder delivering to a Paying Agent the Change in Control Purchase Notice contemplated by this subsection (c) shall have the
right to withdraw such Change in Control Purchase Notice in whole or in a portion thereof that is a principal amount of $1,000 or in an integral multiple thereof at any time prior to the close of
business on the Business Day
next preceding the Change in Control Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.10. 

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

        Anything
herein to the contrary notwithstanding, in the case of Global Securities, any Change in Control Purchase Notice may be delivered or withdrawn and such Securities may be
surrendered or delivered for purchase in accordance with the Applicable Procedures as in effect from time to time. 

        If
the Change in Control Purchase Date falls after an interest payment record date and on or before an interest payment date, then the interest payment will be payable to the Holder who
presents a Security for purchase. 

        SECTION 3.9.    COMPANY'S RIGHT TO ELECT MANNER OF PAYMENT OF CHANGE IN CONTROL PURCHASE PRICE FOR PAYMENT.    

        (a)   The
Company may elect to pay the Change in Control Purchase Price of the Securities to be purchased on any Change in Control Purchase Date pursuant to Section 3.2
in cash or Common Stock or, in the case of a merger in which the Company is not the surviving corporation, common stock or American Depositary Receipts (or other securities representing common equity
interests) of the surviving corporation or its direct or indirect parent corporation, or any combination of cash and stock, subject to the conditions set forth in this Section 3.9(a) and
Section 3.9(b). All Holders whose Securities are purchased on a Change in Control Purchase Date pursuant to this Section 3.9 shall receive the same percentage of cash or common stock or
American Depositary Receipts (or other securities representing common equity interests) in payment of the Change in Control Purchase Price for such Securities, except (i) as provided in
Section 3.9(b) with regard to the payment of cash in lieu of fractional Common Stock and (ii) in the event that the Company is unable to purchase the Securities of a Holder or Holders
for Common Stock because any necessary qualifications or registrations of the common stock or American Depositary Receipts (or other securities representing common equity interests) 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 Securityholders except pursuant to this Section 3.9(a) or pursuant to
Section 3.9(b) in the event of a failure to satisfy, prior to the close of business on the Change in Control Purchase Date, any condition to the payment of the Change in Control Purchase Price,
in whole or in part, in common stock or American Depositary Receipts (or other securities representing common equity interests), in which case the Change in Control Purchase Price shall be paid in
cash. 

        (b)   In
each case in which the Company has elected, pursuant to Section 3.9(a), to pay all or a portion of the Change in Control Purchase Price with common stock or
American Depositary Receipts (or other securities representing common equity interests), the number of common stock or American Depositary Receipts (or other securities representing common equity
interests) that shall be payable shall be equal to the quotient obtained by dividing (i) the relevant amount of the Change in Control 

19

 

Purchase
Price to be paid in common stock or American Depositary Receipts (or other securities representing common equity interests) by (ii) 97% of the average of the Closing Prices of the
common stock or American Depositary Receipts (or other securities representing common equity interests) for the 15 Trading Days immediately preceding and including the third Trading Day prior to the
Repurchase Date (the "Market Price"), subject to the next succeeding paragraph. 

        In
lieu of delivering a fractional common stock or American Depositary Receipts (or other securities representing common equity interests) in payment of the Change in Control Purchase
Price, the Company will pay cash for the Market Price of the fractional share or American Depositary Receipt (or other security representing common equity interests). If a Holder elects to have more
than one Security purchased, the number of common stock or American Depositary Receipts (or other securities representing common equity interests) shall be based on the aggregate amount of Securities
to be purchased. 

        The
Company's right to exercise its election to purchase Securities through the delivery of common stock or American Depositary Receipts (or other securities representing common equity
interests) or a combination of common stock or American Depositary Receipts (or other securities representing common equity interests) and cash, as provided in Section 3.9(a) shall be
conditioned upon: 

	•
	the
Company's not having given a Company Notice of an election to pay entirely in cash and its timely giving of a Company Notice of election to purchase all or a specified
percentage of the Securities with common stock or American Depositary Receipts (or other securities representing common equity interests) as provided herein;

	•
	the
registration of the common stock or American Depositary Receipts (or other securities representing common equity interests) to be issued upon repurchase under the
Securities Act and the Exchange Act;

	•
	any
necessary qualification or registration of the common stock or American Depositary Receipts (or other securities representing common equity interests) to be issued upon
repurchase under
applicable state securities laws or the availability of an exemption from such qualification and registration;

	•
	listing
of the common stock or American Depositary Receipts (or other securities representing common equity interests) on a United States national securities exchange or
quotation thereof in an inter-dealer quotation system of any registered United States national securities association; and

	•
	the
receipt by the Trustee of an Officers' Certificate and an Opinion of Counsel each stating that the terms of the delivery of the common stock or American Depositary
Receipts (or other securities representing common equity interests) are in conformity with this Indenture, that the conditions above have been satisfied and that the securities being issued will be
validly issued, fully paid and non-assessable and free of pre-emptive rights. The Officers' Certificate shall also set forth the number of common stock or American Depositary
Receipts (or other securities representing common equity interests) to be delivered for each $1,000 Principal Amount of Securities and the daily prices of the common stock or American Depositary
Receipts (or other securities representing common equity interests) used to calculate the average of the Closing Prices of the common stock or American Depositary Receipts (or other securities
representing common equity interests). 

        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 Change in Control Purchase Date and the
Company has elected to purchase the Securities pursuant to this Section 3.9 through the delivery of common stock or American Depositary Receipts (or other securities representing common equity
interests), the Company 

20

 

shall
pay the entire Change in Control Purchase Price of the Securities of such Holder or Holders in cash. 

        SECTION 3.10.    EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE.    

        Upon
receipt by any Paying Agent of the Change in Control Purchase Notice specified in Section 3.8(c), the Holder of the Security in respect of which such Change in Control
Purchase Notice was given shall (unless such Change in Control Purchase Notice is withdrawn as specified below) thereafter be entitled to receive the Change in Control Purchase Price with respect to
such Security. Such Change in Control Purchase Price shall be paid to such Holder promptly following the later of (a) the Change in Control Purchase Date with respect to such Security
(provided the conditions in Section 3.8(c) have been satisfied) and (b) the time of delivery of such Security to a Paying Agent by the
Holder thereof in the
manner required by Section 3.8(c). Securities in respect of which a Change in Control Purchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock
pursuant to Article 4 on or after the date of the delivery of such Change in Control Purchase Notice unless such Change in Control Purchase Notice has first been validly withdrawn. 

        A
Change in Control Purchase Notice may be withdrawn by means of a written notice (which may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any
other written form and, in the case of Global Securities, may be delivered electronically or by other means in accordance with the Depositary's customary procedures) of withdrawal delivered by the
Holder to a Paying Agent at any time prior to the close of business on the Business Day immediately preceding the Change in Control Purchase Date, specifying the principal amount of the Security or
portion thereof (which must be a principal amount of $1,000 or an integral multiple of $1,000 in excess thereof) with respect to which such notice of withdrawal is being submitted. 

        SECTION 3.11.    DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE.    

        On
or before 11:00 a.m. New York City time on the Change in Control Purchase Date, the Company shall deposit with the Trustee or with a Paying Agent (other than the Company or an
Affiliate of the Company) an amount of money (in immediately available funds if deposited on such Change in Control Purchase Date) or securities sufficient to pay the aggregate Change in Control
Purchase Price of all the Securities or portions thereof that are to be purchased as of such Change in Control Purchase Date. The manner in which the deposit required by this Section 3.11 is
made by the Company shall be at the option of the Company, provided that such deposit shall be made in a manner such that the Trustee or a Paying Agent
shall have immediately available funds on the Change in Control Purchase Date. 

        If
a Paying Agent holds, in accordance with the terms hereof, money or securities sufficient to pay the Change in Control Purchase Price of any Security for which a Change in Control
Purchase Notice has been tendered and not withdrawn in accordance with this Indenture then, on the Change in Control Purchase Date, such Security will cease to be outstanding and the rights of the
Holder in respect thereof shall terminate (other than the right to receive the Change in Control Purchase Price as aforesaid). The Company shall publicly announce the principal amount of Securities
purchased as a result of such Change in Control on or as soon as practicable after the Change in Control Purchase Date. 

        The
Company shall pay any documentary, stamp or similar issue or transfer tax due on any issuance of such Securities. 

21

   
        SECTION 3.12.    SECURITIES PURCHASED IN PART.    

        Any
Security that is to be purchased only in part shall be surrendered at the office of a Paying Agent, and promptly after the Change in Control Purchase Date 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 such authorized denomination or denominations as may be
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 that is not purchased. 

        SECTION 3.13.    COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES    

        In
connection with any offer to purchase or purchase of Securities under Section 3.2, the Company shall (a) comply with Rule 13e-4 and
Rule 14e-1 (or any successor to either such Rule), if applicable, under the Exchange Act, (b) file the related Schedule TO (or any successor or similar schedule, form or
report) if required under the Exchange Act, and (c) otherwise comply with all federal and state securities laws in connection with such offer to purchase or purchase of Securities, all so as to
permit the rights of the Holders and obligations of the Company under Sections 3.2 through 3.5 to be exercised in the time and in the manner specified therein. 

        SECTION 3.14.    REPAYMENT TO THE COMPANY.    

        To
the extent that the aggregate amount of cash or securities deposited by the Company pursuant to Section 3.4 exceeds the aggregate Change in Control Purchase Price (including
interest and Additional Interest, if any, thereon) of the Securities or portions thereof that the Company is obligated to purchase, then promptly after the Change in Control Purchase Date the Trustee
or a Paying Agent, as the case may be, shall return any such excess cash or securities to the Company. 

ARTICLE 4

CONVERSION  

        SECTION 4.1.    CONVERSION PRIVILEGE    

        Subject
to the further provisions of this Article 4 and the applicable paragraph of the Securities, a Holder of a Security may convert the principal amount of such Security (or
any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof) into Common Stock (and any associated rights represented thereby, including rights affected thereto pursuant
to the Company's Rights Plan in effect on the date hereof) at any time prior to the close of business on the Final Maturity Date, at the Conversion Price then in effect;  provided, however, that, if such Security is submitted or presented for purchase or redemption pursuant
to Article 3, such conversion right shall terminate at the close of business on the Business Day immediately preceding the Redemption Date or the Change in Control Purchase Date for such
Security (unless the Company shall default in making the Redemption Price or Change in Control Purchase Price payment when due, in which case the conversion right shall terminate at the close of
business on the date such default is cured and such Security is purchased). The number of shares of Common Stock issuable upon conversion of a Security shall be determined by dividing the principal
amount of the Security or portion thereof surrendered for conversion by the Conversion Price in effect on the Conversion Date. The initial Conversion Price is set forth in the form of the Securities
of each series and is subject to adjustment as provided in this Article 4. 

        Provisions
of this Indenture that apply to conversion of all of a Security also apply to conversion of a portion of a Security. 

        A
Security in respect of which a Holder has delivered a Change in Control Purchase Notice pursuant to Section 3.8(c) exercising the option of such Holder to require the Company to
purchase such Security may be converted only if such Change in Control Purchase Notice is withdrawn by a 

22

 

written
notice of withdrawal delivered to a Paying Agent prior to the close of business on the Business Day immediately preceding the Change in Control Purchase Date in accordance with
Section 3.9. 

        A
Holder of Securities is not entitled to any rights of a holder of Common Stock until such Holder has converted its Securities to Common Stock, and only to the extent such Securities
are deemed to have been converted into Common Stock pursuant to this Article 4. 

        SECTION 4.2.    CONVERSION PROCEDURE.    

        To
convert a Security, a Holder must (a) complete and manually sign the conversion notice on the back of the Security and deliver such notice to a Conversion Agent,
(b) surrender the Security to a Conversion Agent, (c) furnish appropriate endorsements and transfer documents if required by a Registrar or a Conversion Agent, and (d) pay any
transfer or similar tax, if required. The date on which
the Holder satisfies all of those requirements is the "Conversion Date." As soon as practicable after the Conversion Date, the Company shall deliver to the Holder through a Conversion Agent a
certificate for the number of whole shares of Common Stock issuable upon the conversion and cash in lieu of any fractional shares pursuant to Section 4.3. Anything herein to the contrary
notwithstanding, in the case of Global Securities, conversion notices may be delivered and such Securities may be surrendered for conversion in accordance with the Applicable Procedures as in effect
from time to time. 

        The
person in whose name the Common Stock certificate is registered shall be deemed to be a stockholder of record on the Conversion Date;  provided, however,
that no surrender of a Security on any date when the stock transfer books of the
Company shall be closed shall be effective to constitute the person or persons entitled to receive the shares of Common Stock upon such conversion as the record holder or holders of such shares of
Common Stock on such date, but such surrender shall be effective to constitute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all
purposes at the close of business on the next succeeding day on which such stock transfer books are open; provided,  further, that such conversion shall be
at the Conversion Price in effect on the Conversion Date as if the stock transfer books of the Company had not
been closed. Upon conversion of a Security, such person shall no longer be a Holder of such Security. No payment or adjustment will be made for accrued interest (except as set forth below) or for
dividends or distributions on shares of Common Stock issued upon conversion of a Security. Accrued interest shall be deemed paid through delivery of Common Stock upon conversion. 

        Interest
or Additional Interest, if any, shall be payable to such registered Holder notwithstanding the conversion of a Security after a regular record date and prior to the interest
payment date, subject to the provisions of this Indenture relating to the payment of defaulted interest or Additional Interest, if any, by the Company. Securities so surrendered for conversion (in
whole or in part) during the period from the close of business on any regular record date to the opening of business on the next succeeding interest payment date, if any, shall also be accompanied by
payment in funds acceptable to the Company of an amount equal to the interest or Additional Interest, if any, payable on such interest payment date on the principal amount of such Security then being
converted. The preceding sentence does not apply, however, if (1) the Company has specified a Redemption Date that is after a record date for an interest payment but on or prior to the
corresponding interest payment date or (2) any overdue interest exists at the time of conversion with respect to the notes converted (in which case the Holder will not be required to pay the
Company for the amount of the interest payment that the Holder will receive that represents overdue interest, but will be required to pay the Company for the amount of the interest payment that the
Holder will receive that represents payment of interest that is not overdue). Except as otherwise provided in this Section 4.2, no payment or adjustment will be made for accrued interest or
Additional Interest, if any, on a converted Security. If the Company defaults in the payment of interest or Additional Interest, if any, payable on such interest payment date, the Company shall
promptly repay such funds to such Holder. 

23

 

        Nothing
in this Section shall affect the right of a Holder in whose name any Security is registered at the close of business on a record date to receive the interest and Additional
Interest, if any, payable on
such Security on the interest payment date in accordance with the terms of this Indenture, the Securities and the Registration Rights Agreement. If a Holder converts more than one Security at the same
time, the number of shares of Common Stock issuable upon the conversion shall be based on the aggregate principal amount of Securities converted. 

        Upon
surrender of a Security that is converted in part, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder, a new Security equal in principal amount
to the unconverted portion of the Security surrendered. 

        SECTION 4.3.    FRACTIONAL SHARES.    

        The
Company will not issue fractional shares of Common Stock upon conversion of Securities. In lieu thereof, the Company will pay an amount in cash for the current market value of the
fractional shares. The cash amount paid in lieu of fractional shares shall be determined, (calculated to the nearest 1/1000th of a share) by multiplying the Closing Price (determined as
set forth in Section 4.6(d)) of the Common Stock on the Trading Day immediately prior to the Conversion Date by such fractional share and rounding the product to the nearest whole cent. 

        SECTION 4.4.    TAXES ON CONVERSION.    

        If
a Holder converts a Security, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon such conversion. However,
the Holder shall pay any such tax which is due because the Holder requests the shares to be issued in a name other than the Holder's name. The Conversion Agent may refuse to deliver the certificate
representing the Common Stock being issued in a name other than the Holder's name until the Conversion Agent receives a sum sufficient to pay any tax which will be due because the shares are to be
issued in a name other than the Holder's name. Nothing herein shall preclude any tax withholding required by law or regulation. 

        SECTION 4.5.    COMPANY TO PROVIDE STOCK.    

        The
Company shall, prior to issuance of any Securities hereunder, and from time to time as may be necessary, reserve, out of its authorized but unissued Common Stock, a sufficient number
of shares of Common Stock to permit the conversion of all outstanding Securities into shares of Common Stock. 

        All
shares of Common Stock delivered upon conversion of the Securities shall be newly issued shares, shall be duly authorized, validly issued, fully paid and nonassessable and shall be
free from preemptive or similar rights and free of any lien or adverse claim. 

        The
Company will endeavor promptly to comply with all federal and state securities laws regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will list or cause to have quoted such shares of Common Stock on each national securities exchange or on the Nasdaq National Market or other over-the-counter market or such
other market on which the Common Stock is then listed or quoted. Any Common Stock issued upon conversion of a Security hereunder which at the time of conversion was a Restricted Security will also be
a Restricted Security. 

        SECTION 4.6.    ADJUSTMENT OF CONVERSION PRICE.    

        The
conversion price as stated in paragraph 6 of each of the Securities (the "Conversion Price") shall be adjusted from time to
time by the Company as follows: 

        (a)   In
case the Company shall (i) pay a dividend on its Common Stock in shares of Common Stock, (ii) make a distribution on its Common Stock in shares of
Common Stock, (iii) subdivide its outstanding Common Stock into a greater number of shares, or (iv) combine its outstanding Common Stock into a smaller number of shares, the Conversion
Price in effect immediately prior 

24

 

thereto
shall be adjusted so that the Holder of any Security thereafter surrendered for conversion shall be entitled to receive that number of shares of Common Stock which it would have owned had such
Security been converted immediately prior to the happening of such event. An adjustment made pursuant to this subsection (a) shall become effective immediately after the record date in the case
of a dividend or distribution and shall become effective immediately after the effective date in the case of subdivision of combination. 

        (b)   In
case the Company shall issue rights or warrants to all or substantially all holders of its Common Stock entitling them (for a period of not more than 60 days
after such issuance) to subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock) at a price per share (or having a conversion price per share) less than the
Current Market Price per share of Common Stock (as determined in accordance with subsection (d) of this Section 4.6) on the record date for the determination of stockholders entitled to
receive such rights or warrants, the Conversion Price in effect immediately prior thereto shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Price in
effect immediately prior to such record date by a fraction of which the numerator shall be the number of shares of Common Stock outstanding on such record date plus the number of shares which the
aggregate offering price of the total number of shares of Common Stock so offered (or the aggregate conversion price of the convertible securities so offered, which shall be determined by multiplying
the number of shares of Common Stock issuable upon conversion of such convertible securities by the conversion price per share of Common Stock pursuant to the terms of such convertible securities)
would purchase at the Current Market Price per share (as defined in subsection (d) of this Section 4.6) of Common Stock on such record date, and of which the denominator
shall be the number of shares of Common Stock outstanding on such record date plus the number of additional shares of Common Stock offered (or into which the convertible securities so offered are
convertible). Such adjustment shall be made successively whenever any such rights or warrants are issued, and shall become effective immediately after such record date. If at the end of the period
during which such rights or warrants are exercisable not all rights or warrants shall have been exercised, the adjusted Conversion Price shall be immediately readjusted to what it would have been
based upon the number of additional shares of Common Stock actually issued (or the number of shares of Common Stock issuable upon conversion of convertible securities actually issued). 

        (c)   In
case the Company shall distribute to all or substantially all holders of its Common Stock any shares of capital stock of the Company (other than Common Stock),
evidences of indebtedness or other assets (including securities of any person other than the Company but excluding (1) dividends or distributions paid exclusively in cash referred to in
Section 4.6(c)(2) below or (2) dividends or distributions referred to in subsection (a) of this Section 4.6), or shall distribute to all or substantially all holders of its
Common Stock rights or warrants to subscribe for or purchase any securities (excluding those rights and warrants referred to in subsection (b) of this Section 4.6), then in each such
case the Conversion Price shall be adjusted so that the same shall equal the price determined by multiplying the current Conversion Price by a fraction of which the numerator shall be the Current
Market Price per share (as defined in subsection (d) of this Section 4.6) of the Common Stock on the record date mentioned below less the fair market value on such record date (as
determined in good faith by the Board of Directors, whose determination shall be evidenced by an Officers' Certificate delivered to the Trustee) of the portion of the capital stock, evidences of
indebtedness or other assets so distributed or of such rights or warrants applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the
record date), and of which the denominator shall be the Current Market Price per share (as defined in subsection (d) of this Section 4.6) of the Common Stock on such record date. Such
adjustment shall be made successively whenever any such 

25

 

distribution
is made and shall become effective immediately after the record date for the determination of stockholders entitled to receive such distribution. 

        In
the event the then fair market value (as so determined) of the portion of the capital stock, evidences of indebtedness or other assets so distributed or of such rights or warrants
applicable to one share of Common Stock is equal to or greater than the Current Market Price per share of the Common Stock on such record date, in lieu of the foregoing adjustment, adequate provision
shall be made so that each holder of a Security shall have the right to receive upon conversion the amount of capital stock, evidences of indebtedness or other assets so distributed or of such rights
or warrants such holder would have received had such holder converted each Security on such record 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. If the Board of Directors determines the fair market value of
any distribution for purposes of this Section 4.6(c) by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in such market over the
same period used in computing the Current Market Price of the Common Stock. 

        Rights
(including rights issued under the Company's Rights Plan as in effect on the date hereof) or warrants distributed by the Company to all holders of Common Stock entitling the
holders thereof 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 Common Stock, shall be deemed not to have been distributed for purposes of this Section 4.6 (and no adjustment to the Conversion Price under this Section 4.6 will be
required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment to the Conversion Price shall be
made under this Section 4.6(c). If any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the
occurrence of which such rights or warrants become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event
shall be deemed to be the date of distribution and record date with respect to new rights or warrants with such rights (and a termination or expiration of the existing rights or warrants without
exercise by any of the holders 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 was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Price under this Section 4.6 was made,
(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 or holders of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders 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 by any holders thereof, the Conversion Price shall
be readjusted as if such rights and warrants had not been issued. 

        (1)   In
case the Company shall, by dividend or otherwise, at any time distribute (a "Triggering Distribution") to all or
substantially all holders of its Common Stock cash in an aggregate amount that, together with the aggregate amount of (A) any cash and the fair market value (as determined in good faith by the
Board of Directors, whose determination shall be evidenced by an Officers' Certificate delivered to the Trustee) of any other 

26

 

consideration
payable in respect of any tender offer by the Company or a Subsidiary of the Company for Common Stock consummated within the 12 months preceding the date of payment of the
Triggering Distribution and in respect of which no Conversion Price adjustment pursuant to this Section 4.6 has been made and (B) all other cash distributions to all or substantially all
holders of its Common Stock made within the 12 months preceding the date of payment of the Triggering Distribution and in respect of which no Conversion Price adjustment pursuant to this
Section 4.6 has been made, exceeds an amount equal to 10.0% of the product of the Current Market Price per share of Common Stock (as determined in accordance with subsection (d) of this
Section 4.6) on the Business Day (the "Determination Date") immediately preceding the day on which such Triggering Distribution is declared by
the Company multiplied by the number of shares of Common Stock outstanding on the Determination Date (excluding shares held in the treasury of the Company), the Conversion Price shall be reduced so
that the same shall equal the price determined by multiplying such Conversion Price in effect immediately prior to the Determination Date by a fraction of which the numerator shall be the Current
Market Price per share of the Common Stock (as determined in accordance with subsection (d) of this Section 4.6) on the Determination Date less the sum of the aggregate amount of cash
and the aggregate fair market value (determined as aforesaid in this Section 4.6(c)(1)) of any such other consideration so distributed, paid or payable within such 12 months (including,
without limitation, the Triggering Distribution) applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the Determination Date) and the
denominator shall be such Current Market Price per share of the Common Stock (as determined in accordance with subsection (d) of this Section 4.6) on the Determination Date, such
reduction to become effective immediately prior to the opening of business on the day following the date on which the Triggering Distribution is paid. 

        (2)   In
case any tender offer made by the Company or any of its Subsidiaries for Common Stock shall expire and such tender offer (as amended upon the expiration thereof)
shall involve the payment of aggregate consideration in an amount (determined as the sum of the aggregate amount of cash consideration and the aggregate fair market value (as determined in good faith
by the Board of Directors, whose determination shall be evidenced by an Officers' Certificate delivered to the Trustee thereof) of any other consideration) that, together with the aggregate amount of
(A) any cash and the fair market value (as determined in good faith by the Board of Directors, whose determination shall be evidenced by an Officers' Certificate delivered to the Trustee) of
any other consideration payable in respect of any other tender offers by the Company or any Subsidiary of the Company for Common Stock consummated within the 12 months preceding the date of the
Expiration Date (as defined below) and in respect of which no Conversion Price adjustment pursuant to this Section 4.6 has been made and (B) all cash distributions to all or
substantially all holders of its Common Stock made within the 12 months preceding the Expiration Date and in respect of which no Conversion Price adjustment pursuant to this Section 4.6
has been made, exceeds an amount equal to 10.0% of the product of the Current Market Price per share of Common Stock (as determined in accordance with subsection (d) of this Section 4.6)
as of the last date (the "Expiration Date") tenders could have been made pursuant to such tender offer (as it may be amended) (the last time at which
such tenders could have been made on the Expiration Date is hereinafter sometimes called the "Expiration Time") multiplied by the number of shares of
Common Stock outstanding (including tendered shares but excluding any shares held in the treasury of the Company) at the Expiration Time, then, immediately prior to the opening of business on the day
after the Expiration 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 the Expiration Date by a fraction of which the 

27

 

numerator
shall be the product of the number of shares of Common Stock outstanding (including tendered shares but excluding any shares held in the treasury of the Company) at the Expiration Time
multiplied by the Current Market Price per share of the Common Stock (as determined in accordance with subsection (d) of this Section 4.6) on the Trading Day next succeeding the
Expiration Date and the denominator shall be the sum of (x) the aggregate consideration (determined as aforesaid) payable to stockholders based on the acceptance (up to any maximum specified in
the terms of the tender offer) of all shares validly tendered and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the "Purchased
Shares") and (y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares and excluding any shares held in the treasury of the Company) at the Expiration Time
and the Current Market Price per share of Common Stock (as determined in accordance with subsection (d) of this Section 4.6) on the Trading Day next succeeding the Expiration Date, such
reduction to become effective immediately prior to the opening of business on the day following the Expiration Date. 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 or all such purchases or any or all such purchases are rescinded, the Conversion Price shall again be
adjusted to be the Conversion Price which would have been in effect based upon the number of shares actually purchased. If the application of this Section 4.6(c)(2) 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 4.6(c)(2). 

        (3)   For
purposes of this Section 4.6(c), the term "tender offer" shall mean and include both tender offers and exchange offers, all references to "purchases" of
shares in tender offers (and all similar references) shall mean and include both the purchase of shares in tender offers and the acquisition of
shares pursuant to exchange offers, and all references to "tendered shares" (and all similar references) shall mean and include shares tendered in both tender offers and exchange offers. 

        (d)   For
the purpose of any computation under subsections (b) and (c) of this Section 4.6, the current market price (the "Current
Market Price") per share of Common Stock on any date shall be deemed to be the average of the daily closing prices for the 30 consecutive Trading Days commencing 45 Trading
Days before (i) the Determination Date or the Expiration Date, as the case may be, with respect to distributions or tender offers under subsection (c) of this Section 4.6 or
(ii) the record date with respect to distributions, issuances or other events requiring such computation under subsection (b) or (c) of this Section 4.6. The closing price
(the "Closing Price") for each day shall be the last reported sales price or, in case no such reported sale takes place on such date, the average of the
reported closing bid and asked prices in either case on the Nasdaq National Market or, if the Common Stock is not listed or admitted to trading on the Nasdaq National Market, on the principal national
securities exchange on which the Common Stock is listed or admitted to trading or, if not listed or admitted to trading on the Nasdaq National Market or any national securities exchange, the last
reported sales price of the Common Stock as quoted on NASDAQ or, in case no reported sales takes place, the average of the closing bid and asked prices as quoted on NASDAQ or any comparable system or,
if the Common Stock is not quoted on NASDAQ or any comparable system, the closing sales price or, in case no reported sale takes place, the average of the closing bid and asked prices, as furnished by
any two members of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. If no such prices are available, the Current Market Price per
share shall be the fair value of a share of Common Stock as determined in good faith by the Board of Directors (which shall be evidenced by an Officers' Certificate delivered to the Trustee). 

28

 

        (e)   In
any case in which this Section 4.6 shall require that an adjustment be made following a record date or a Determination Date or Expiration Date, as the case may
be, established for purposes of this Section 4.6, the Company may elect to defer (but only until five Business Days following the filing by the Company with the Trustee of the certificate
described in Section 4.9) issuing to the Holder of any Security converted after such record date or Determination Date or Expiration Date the shares of Common Stock and other capital stock of
the Company issuable upon such conversion over and above the shares of Common Stock and other capital stock of the Company issuable upon such conversion only on the basis of the Conversion Price prior
to adjustment; and, in lieu of the shares the issuance of which is so deferred, the Company shall issue or cause its transfer agents to issue due bills or other appropriate evidence prepared by the
Company of the right to receive such shares. If any distribution in respect of which an adjustment to the Conversion Price is required to be made as of the record date or Determination Date or
Expiration Date therefor is not thereafter made or paid by the Company for any reason, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if such record
date had not been fixed or such effective date or Determination Date or Expiration Date had not occurred. 

        SECTION 4.7.    NO ADJUSTMENT.    

        No
adjustment in the Conversion Price shall be required if Holders may participate in the transactions set forth in Section 4.6 above without converting. 

        No
adjustment in the Conversion Price shall be required unless the adjustment would require an increase or decrease of at least 1% in the Conversion Price as last adjusted;  provided, however, that any adjustments which by reason of this Section 4.7 are not required to
be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Article 4 shall be made to the nearest one-tenth of a cent or to
the nearest one-hundredth of a share, as the case may be. 

        Except
as otherwise described in this Article 4, no adjustment in the Conversion Price shall be required for the issuance of Common Stock or the right to purchase Common Stock or
any such convertible or exchangeable securities. 

        To
the extent that the Securities become convertible into the right to receive cash, no adjustment need be made thereafter as to the cash. Interest will not accrue on the cash. 

        SECTION 4.8.    ADJUSTMENT FOR TAX PURPOSES.    

        The
Company shall, upon 15 days prior notice, be entitled to make such reductions in the Conversion Price, in addition to those required by Section 4.6, as it in its
discretion shall determine to be advisable in order that any stock dividends, subdivisions of shares, distributions of rights to purchase stock or securities or distributions of securities convertible
into or exchangeable for stock hereafter made by the Company to its stockholders shall not be taxable. 

        SECTION 4.9.    NOTICE OF ADJUSTMENT.    

        Whenever
the Conversion Price or conversion privilege is adjusted, the Company shall promptly mail to Securityholders a notice of the adjustment and file with the Trustee an Officers'
Certificate briefly stating the facts requiring the adjustment and the manner of computing it. Unless and until the Trustee shall receive an Officers' Certificate setting forth an adjustment of the
Conversion Price, the Trustee may assume without inquiry that the Conversion Price has not been adjusted and that the last Conversion Price of which it has knowledge remains in effect. 

29

 

        SECTION 4.10.    NOTICE OF CERTAIN TRANSACTIONS.    

        In
the event that: 

        (1)   the
Company takes any action which would require an adjustment in the Conversion Price; 

        (2)   the
Company consolidates or merges with, or transfers all or substantially all of its property and assets to, another corporation and stockholders of the Company must
approve the transaction; or 

        (3)   there
is a dissolution or liquidation of the Company, 

the
Company shall mail to Holders and file with the Trustee a notice stating the proposed record or effective date, as the case may be. The Company shall mail the notice at least ten days before such
date. Failure to mail such notice or any defect therein shall not affect the validity of any transaction referred to in clause (1), (2) or (3) of this Section 4.10. 

        SECTION 4.11.    EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON CONVERSION PRIVILEGE.    

        If
any of the following shall occur, namely: (a) any reclassification or change of shares of Common Stock issuable upon conversion of the Securities (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, or any other change for which an adjustment is provided in
Section 4.6); (b) any consolidation or merger or combination to which the Company is a party or (c) any sale or conveyance of all or substantially all of the property and assets
of the Company, directly or indirectly, to any person, then the Company, or such successor, purchasing or transferee corporation, as the case may be, shall, as a condition precedent to such
reclassification, change, combination, consolidation, merger, sale or conveyance, execute and deliver to the Trustee a supplemental indenture providing that the Holder of each Security then
outstanding shall have the right to convert such Security into the kind and amount of shares of stock and other securities and property (including cash) receivable upon such reclassification, change,
combination, consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock deliverable upon conversion of such Security immediately prior to such reclassification,
change, combination, consolidation, merger, sale or conveyance based on the assumption that the Holder would not have exercised any rights of election that the Holder would have had as a Holder of
Common Stock to select a particular type of consideration. Such supplemental indenture shall provide for adjustments of the Conversion Price which shall be as nearly equivalent as may be practicable
to the adjustments of the Conversion Price provided for in this Article 4. If, in the case of any such consolidation, merger, combination, sale or conveyance, the stock or other securities and
property (including cash) receivable thereupon by a holder of Common Stock include shares of stock or other
securities and property of a person other than the successor, purchasing or transferee corporation, as the case may be, in such consolidation, merger, combination, sale or conveyance, then such
supplemental indenture shall also be executed by such other person 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. The provisions of this Section 4.11 shall similarly apply to successive reclassifications, changes, combinations, consolidations,
mergers, sales or conveyances. 

        In
the event the Company shall execute a supplemental indenture pursuant to this Section 4.11, the Company shall promptly file with the Trustee (x) an Officers' Certificate
briefly stating the reasons therefor, the kind or amount of shares of stock or other securities or property (including cash) receivable by Holders of the Securities upon the conversion of their
Securities after any such reclassification, change, combination, consolidation, merger, sale or conveyance, any adjustment to be made with respect thereto and that all conditions precedent have been
complied with and (y) an 

30

 

Opinion
of Counsel that all conditions precedent have been complied with, and shall promptly mail notice thereof to all Holders. 

        SECTION 4.12.    TRUSTEE'S DISCLAIMER.    

        The
Trustee shall have no duty to determine when an adjustment under this Article 4 should be made, how it should be made or what such adjustment should be, but may accept as
conclusive evidence of that fact or the correctness of any such adjustment, and shall be protected in relying upon, an Officers' Certificate including the Officers' Certificate with respect thereto
which the Company is obligated to file with the Trustee pursuant to Section 4.9. The Trustee makes no representation as to the validity or value of any securities or assets issued upon
conversion of Securities, and the Trustee shall not be responsible for the Company's failure to comply with any provisions of this Article 4. 

        The
Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture executed pursuant to Section 4.11, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying upon, the Officers' Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 4.11. 

        SECTION 4.13.    VOLUNTARY REDUCTION.    

        The
Company from time to time may reduce the Conversion Price by any amount for any period of time if the period is at least 20 days and if the reduction is irrevocable during the
period if our Board
of Directors determines that such reduction would be in the best interest of the Company, and the Company provides 15 days prior notice of any reduction in the Conversion Price;  provided,
however, that in no event may the Company reduce the Conversion Price to be less than the par
value of a share of Common Stock. 

ARTICLE 5

SUBORDINATION  

        SECTION 5.1.    AGREEMENT OF SUBORDINATION.    

        The
Company covenants and agrees, and each Holder of Securities issued hereunder by its acceptance thereof likewise covenants and agrees, that all Securities shall be issued subject to
the provisions of this Article 5; and each Person holding any Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and agrees to be bound by such
provisions. 

        The
payment of the principal of, premium, if any, interest and Additional Interest, if any, on all Securities (including, but not limited to, the Redemption Price and the Change in
Control Purchase Price with respect to the Securities subject to redemption or purchase in accordance with Article 3 as provided in this Indenture) issued hereunder shall, to the extent and in
the manner hereinafter set forth, be subordinated and subject in right of payment to the prior payment in full in cash or other payment satisfactory to the holders of Senior Indebtedness of all Senior
Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred. 

        No
provision of this Article 5 shall prevent the occurrence of any default or Event of Default hereunder. 

        SECTION 5.2.    PAYMENTS TO HOLDERS.    

        No
payment shall be made with respect to the principal of, or premium, if any, or interest or Additional Interest, if any, on the Securities (including, but not limited to, the
Redemption Price and the Change in Control Purchase Price with respect to the Securities subject to redemption or purchase 

31

 

in
accordance with Article 3 as provided in this Indenture), except payments and distributions made by the Trustee as permitted by the first or second paragraph of Section 5.5, if: 

        (i)    a
default in the payment of principal, premium, interest, rent or other obligations due on any Designated Senior Indebtedness occurs and is continuing (or, in the case
of Designated Senior Indebtedness for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the instrument or lease
evidencing such Designated Senior Indebtedness), unless and until such default shall have been cured or waived or shall have ceased to exist; or 

        (ii)   a
default, other than a payment default, on a Designated Senior Indebtedness occurs and is continuing that then permits holders of such Designated Senior Indebtedness
to accelerate its maturity and the Trustee receives a notice of the default (a "Payment Blockage Notice") from a Representative or holder of Designated
Senior Indebtedness or the Company. 

        Subject
to the provisions of Section 5.5, if the Trustee receives any Payment Blockage Notice pursuant to clause (ii) above, no subsequent Payment Blockage Notice shall be
effective for purposes of this Section unless and until at least 365 days shall have elapsed since the initial effectiveness of the immediately prior Payment Blockage Notice. No nonpayment
default that existed or was continuing on the date of delivery of any Payment Blockage Notice to the Trustee (unless such default was waived, cured or otherwise ceased to exist and thereafter
subsequently reoccurred) shall be, or be made, the basis for a subsequent Payment Blockage Notice. 

        The
Company may and shall resume payments on and distributions in respect of the Securities upon the earlier of: 

        (a)   in
the case of a default referred to in clause (i) above, the date upon which the default is cured or waived or ceases to exist, or 

        (b)   in
the case of a default referred to in clause (ii) above, the earlier of the date on which such default is cured or waived or ceases to exist or 179 days
pass after the date on which the applicable Payment Blockage Notice is received, unless this Article 5 otherwise prohibits the payment or distribution at the time of such payment or
distribution. 

        Upon
any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or
winding-up or liquidation or reorganization of the Company (whether voluntary or involuntary) or in bankruptcy, insolvency, receivership or similar proceedings, all amounts due or to
become due upon all Senior Indebtedness shall first be paid in full in cash, or other payments satisfactory to the holders of Senior Indebtedness before any payment is made on account of the principal
of, premium, if any, interest or Additional Interest, if any, on the Securities (except payments made pursuant to Article 10 from monies deposited with the Trustee pursuant thereto prior to
commencement of proceedings for such dissolution, winding-up, liquidation or reorganization); and upon any such dissolution or winding-up or liquidation or reorganization of
the Company or bankruptcy, insolvency, receivership or other proceeding, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders of the Securities or the Trustee would be entitled, except for the provision of this Article 5, shall (except as aforesaid) be paid by the Company or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Holders of the Securities or by the Trustee under this Indenture if received
by them or it, directly to the holders of Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders, or as otherwise required by
law or a court order) or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been
issued, as their respective interests may appear, to the extent necessary to pay all Senior 

32

 

Indebtedness
in full in cash, or other payment satisfactory to the holders of Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of Senior
Indebtedness, before any payment or distribution is made to the Holders of the Securities or to the Trustee. 

        For
purposes of this Article 5, the words, "cash, property or securities" shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities
of the Company or any other corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article 5 with
respect to the Securities to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the Senior
Indebtedness is assumed by the new corporation, if any, resulting from any reorganization or readjustment, and (ii) the rights of the holders of Senior Indebtedness (other than leases which are
not assumed by the Company or the new corporation, as the case may be) are not, without the consent of such holders, altered by such reorganization or readjustment. The consolidation of the Company
with, or the merger of the Company into, another corporation or the liquidation or dissolution of the Company following the conveyance, transfer or lease of all or substantially all its property to
another corporation upon the terms and conditions provided for in Article 7 shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 5.2 if such other corporation shall, as a part of such consolidation, merger, conveyance, transfer or lease, comply with the conditions stated in Article 7. 

        In
the event of the acceleration of the Securities because of an Event of Default, no payment or distribution shall be made to the Trustee or any Holder of Securities in respect of the
principal of,
premium, if any, interest or Additional Interest, if any, on the Securities by the Company (including, but not limited to, the Redemption Price or Change in Control Purchase Price with respect to the
Securities subject to redemption or purchase in accordance with Article 3 as provided in this Indenture), except payments and distributions made by the Trustee as permitted by
Section 5.5, until all Senior Indebtedness has been paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness or such acceleration is rescinded in accordance with
the terms of this Indenture. If payment of the Securities is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Indebtedness of such acceleration. 

        In
the event that, notwithstanding the foregoing provisions, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities
(including, without limitation, by way of setoff or otherwise), prohibited by the foregoing, shall be received by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in
full, in cash or other payment satisfactory to the holders of Senior Indebtedness, or provision is made for such payment thereof in accordance with its terms in cash or other payment satisfactory to
the holders of Senior Indebtedness, such payment or distribution shall be held in trust for the benefit of and shall be paid over or delivered to the holders of Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, as calculated by the Company, for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full, in cash
or other payment satisfactory to the holders of Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of such Senior Indebtedness. 

        Nothing
in this Section 5.2 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 9.7. This Section 5.2 shall be subject to the further
provisions of Section 5.5. 

        SECTION 5.3.    SUBROGATION OF SECURITIES.    

        Subject
to the payment in full, in cash or other payment satisfactory to the holders of Senior Indebtedness, of all Senior Indebtedness, the rights of the Holders of the Securities shall
be subrogated to the extent of the payments or distributions made to the holders of such Senior Indebtedness 

33

 

pursuant
to the provisions of this Article 5 (equally and ratably with the holders of all indebtedness of the Company which by its express terms is subordinated to other indebtedness of the
Company to substantially the same extent as the Securities are subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or
distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until the principal, premium, if any, interest and Additional Interest, if any, on the Securities
shall be paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness; and, for the purposes of such subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the Securities or the Trustee would be entitled except for the provisions of this Article 5, and no payment over
pursuant to the provisions of this Article 5, to or for the benefit of the holders of Senior Indebtedness by Holders of the Securities or the Trustee, shall, as between the Company, its
creditors other than holders of Senior Indebtedness, and the Holders of the Securities, be deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no payments or
distributions of cash, property or securities to or for the benefit of the Holders of the Securities pursuant to the subrogation provisions of this Article 5, which would otherwise have been
paid to the holders of Senior Indebtedness shall be deemed to be a payment by the Company to or for the account of the Securities. It is understood that the provisions of this Article 5 are and
are intended solely for the purposes of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand. 

        Nothing
contained in this Article 5 or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the Company, its creditors other than the holders
of Senior Indebtedness, and the Holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Securities the principal of (and premium, if
any), interest and Additional Interest, if any, on the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative
rights of the Holders of the Securities and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the Holder of any
Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article 5 of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 

        Upon
any payment or distribution of assets of the Company referred to in this Article 5, the Trustee, subject to the provisions of Section 9.1, and the Holders of the
Securities shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization
proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, delivered to the Trustee or to the
Holders of the Securities, for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the
amount thereof or payable thereon and all other facts pertinent thereto or to this Article 5. 

        SECTION 5.4.    AUTHORIZATION TO EFFECT SUBORDINATION.    

        Each
Holder of a Security by the Holder's acceptance thereof authorizes and directs the Trustee on the Holder's behalf to take such action as may be necessary or appropriate to
effectuate the subordination as provided in this Article 5 and appoints the Trustee to act as the Holder's attorney-in-fact for any and all such purposes. If the Trustee
does not file a proper proof of claim or proof of debt in the form required in any proceeding referred to in Section 5.3 hereof at least 30 days before the expiration of the time
to file such claim, the holders of any Senior Indebtedness or their representatives are hereby authorized to file an appropriate claim for and on behalf of the Holders of the Securities. 

34

 

        SECTION 5.5.    NOTICE TO TRUSTEE.    

        The
Company shall give prompt written notice in the form of an Officers' Certificate to a Trust Officer of the Trustee and to any Paying Agent of any fact known to the Company which
would prohibit the making of any payment of monies to or by the Trustee or any Paying Agent in respect of the Securities pursuant to the provisions of this Article 5. Notwithstanding the
provisions of this Article 5 or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions of this Article 5, unless and until a Trust Officer of the Trustee shall have received written
notice thereof at the Corporate Trust Office from the Company (in the form of an Officers' Certificate) or a Representative or a Holder or Holders of Senior Indebtedness or from any trustee thereof;
and before the receipt of any such written notice, the Trustee, subject to the provisions of Section 9.1, shall be entitled in all respects to assume that no such facts exist;  provided that if on a
date not less than one Business Day prior to the date upon which by the terms hereof any such monies may become payable for any
purpose (including, without limitation, the payment of the principal of, or premium, if any, interest or Additional Interest, if any, on any Security) the Trustee shall not have received, with respect
to such monies, the notice provided for in this Section 5.5, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such
monies and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date.
Notwithstanding anything in this Article 5 to the contrary, nothing shall prevent any payment by the Trustee to the Holders of monies deposited with it pursuant to Article 10, and any
such payment shall not be subject to the provisions of Article 5. 

        The
Trustee, subject to the provisions of Section 9.1, shall be entitled to rely on the delivery to it of a written notice by a Representative or a person representing himself to
be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such notice has been given by a Representative or a holder of Senior Indebtedness or a trustee on behalf of
any such holder or holders. In the event that the Trustee determines in good faith that further evidence is required with respect to
the right of any person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article 5, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and
any other facts pertinent to the rights of such Person under this Article 5, and if such evidence is not furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. 

        SECTION 5.6.    TRUSTEE'S RELATION TO SENIOR INDEBTEDNESS.    

        The
Trustee in its individual capacity shall be entitled to all the rights set forth in this Article 5 in respect of any Senior Indebtedness at any time held by it, to the same
extent as any other holder of Senior Indebtedness, and nothing in Section 9.11 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as such holder. 

        With
respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this
Article 5, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to
owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Section 9.1, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay
over or deliver to Holders of Securities, the Company or any other person money or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article 5 or otherwise. 

35

 

        SECTION 5.7.    NO IMPAIRMENT OF SUBORDINATION.    

        No
right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof which any such holder may have or otherwise be charged with. 

        SECTION 5.8.    CERTAIN CONVERSIONS DEEMED PAYMENT.    

        For
the purposes of this Article 5 only, the issuance and delivery of junior securities upon conversion of Securities in accordance with Article 4 and the payment, issuance
or delivery of cash, property or other securities upon conversion of a Security shall not be deemed to constitute a payment or distribution on account of the principal of such Security (or premium, if
any) or interest. For the purposes of this Section 5.8, the term "junior securities" means (a) shares of any stock of any class of the
Company, or (b) securities of the Company which are subordinated in right of payment to all Senior Indebtedness which may be outstanding at the time of issuance or delivery of such securities
to substantially the same extent as, or to a greater extent than, the Securities are so subordinated as provided in this Article. Nothing contained in this Article 5 or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as among the Company, its creditors other than holders of Senior Indebtedness and the Holders, the right, which is absolute and
unconditional, of the Holder of any Security to convert such Security in accordance with Article 4. 

        SECTION 5.9.    ARTICLE APPLICABLE TO PAYING AGENTS.    

        If
at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term "Trustee" as used in this Article shall (unless the
context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee; provided, however, that the first paragraph of
Section 5.5 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent. 

        SECTION 5.10.    SENIOR INDEBTEDNESS ENTITLED TO RELY.    

        The
holders of Senior Indebtedness (including, without limitation, Designated Senior Indebtedness) shall have the right to rely upon this Article 5, and no amendment or
modification of the provisions contained herein shall diminish the rights of such holders unless such holders shall have agreed in writing thereto. 

ARTICLE 6

COVENANTS  

        SECTION 6.1.    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 and this Indenture. An installment of principal,
interest or Additional Interest, if any, shall be considered paid on the date it is due if the Paying Agent (other than the Company) holds by 11:00 a.m., New York City time, on that date money,
deposited by the Company or an Affiliate thereof, sufficient to pay the installment. Subject to Section 4.2 hereof and except in the case of a redemption or Change in Control, accrued and
unpaid interest or Additional Interest, if any, on any Security that is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid to the Person in whose name
that Security is registered at the close of business on the record date for such interest or Additional Interest, if any, at the office or agency of the Company maintained for such purpose. The
Company shall, (in immediately available funds) to the fullest extent permitted by law, pay interest on overdue principal (including premium, if any) and 

36

 

overdue
installments of interest from the original due date to the date paid, at the rate applicable to the Security plus 2% per annum, which interest shall be payable on demand. Additional Interest,
if any, shall accrue at the rates provided for in the Registration Rights Agreement and shall be paid at the same time and in the same manner as regular interest. 

        Payment
of the principal of (and premium, if any, interest and Additional Interest, if any, payable on the Final Maturity Date) on the Securities shall be made at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, The City of New York (which shall initially be the Corporate Trust Office of the Trustee) in immediately available funds in such
coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Payment of interest or Additional Interest, if any, shall be made by
check mailed to the address of the Person entitled thereto as such address appears in the Register; provided further that a Holder with an aggregate
principal amount in excess of $2,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire transfer instructions to the
Company at least 10 Business Days prior to the payment date. Any wire transfer instructions received by the Trustee will remain in effect until revoked by the Holder. 

        SECTION 6.2.    SEC REPORTS.    

        The
Company shall file all reports and other information and documents which it is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, and within
15 days after it files them with the SEC, the Company shall file copies of all such reports, information and other documents with the Trustee. 

        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
exclusively on Officers' Certificates). 

        SECTION 6.3.    COMPLIANCE CERTIFICATES.    

        The
Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of the Company (beginning with the fiscal year ending October 31, 2004), an
Officers' Certificate as to the signer's knowledge of the Company's compliance with all conditions and covenants on its part contained in this Indenture and stating whether or not the signer knows of
any default or Event of Default. If such signer knows of such a default or Event of Default, the Officers' Certificate shall describe the default or Event of Default and the efforts to remedy the
same. For the purposes of this Section 6.3, compliance shall be determined without regard to any grace period or requirement of notice provided pursuant to the terms of this Indenture. 

        SECTION 6.4.    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 6.5.    MAINTENANCE OF CORPORATE EXISTENCE.    

        Subject
to Article 7, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence. 

        SECTION 6.6.    RULE 144A INFORMATION REQUIREMENT.    

        Within
the period prior to the expiration of the holding period applicable to sales of the Securities under Rule 144(k) under the Securities Act (or any successor provision), the
Company covenants and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the 

37

 

Exchange
Act, upon the request of any Holder or beneficial holder of the Securities make available to such Holder or beneficial holder of Securities or any Common Stock issued upon conversion thereof
in connection with any sale thereof and any prospective purchaser of Securities or such Common Stock designated by such Holder or beneficial holder, the information required pursuant to
Rule 144A(d)(4) under the Securities Act and it will take such further action as any Holder or beneficial holder of such Securities or such Common Stock may reasonably request, all to the
extent required from time to time to enable such Holder or beneficial holder to sell its Securities or Common Stock without registration under the Securities Act within the limitation of the exemption
provided by Rule 144A, as such Rule may be amended from time to time. Upon the request of any Holder or any beneficial holder of the Securities or such Common Stock, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements. 

        SECTION 6.7.    STAY, EXTENSION AND USURY LAWS.    

        The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of, premium, if any, interest or Additional Interest, if any,
on the Securities as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture, and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, 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. 

        SECTION 6.8.    PAYMENT OF ADDITIONAL INTEREST.    

        If
Additional Interest is payable by the Company pursuant to the Registration Rights Agreement, the Company shall deliver to the Trustee a certificate to that effect stating
(i) the amount of such Additional Interest that is payable, (ii) the reason why such Additional Interest is payable and (iii) the date on which such Additional Interest is
payable. Unless and until a Trust Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry that no such Additional Interest is payable. 

ARTICLE 7

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE  

        SECTION 7.1.    COMPANY MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS.    

        The
Company shall not consolidate with or merge into any other Person (in a transaction in which the Company is not the surviving Person) or sell, assign, convey, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets to any Person, unless: 

        (1)   in
case the Company shall consolidate with or merge into another Person (in a transaction in which the Company is not the surviving Person) or sell, assign, convey,
transfer, lease or otherwise dispose of all or substantially all of its properties and assets to any Person, the Person formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall be a corporation organized and validly existing under the laws of
the United States of America, any State thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the due and punctual payment of the principal of, (premium, if any), interest and Additional Interest, if any, on all the Securities and the performance or observance of every covenant
of this Indenture on the part of the Company to be performed or observed (and 

38

 

the
conversion rights shall be provided for in accordance with Article 4, by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the Person (if
other than the Company) formed by such consolidation or into which the Company shall have been merged or by the Person which shall have acquired the Company's assets); 

        (2)   immediately
after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default,
shall have happened and be continuing; and 

        (3)   the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture complies with this Article and that all conditions precedent herein provided for relating
to such transaction have been complied with. 

        SECTION 7.2.    SUCCESSOR SUBSTITUTED.    

        Upon
any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of all or substantially all of the properties and assets
of the Company in accordance with Section 7.1, the successor Person formed by such consolidation or into which the Company is merged or 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 Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 

ARTICLE 8

DEFAULT AND REMEDIES  

        SECTION 8.1.    EVENTS OF DEFAULT.    

        An
"Event of Default" shall occur if: 

        (1)   the
Company defaults in the payment of any interest or Additional Interest, if any, payable on any Security when the same becomes due and payable and the default
continues for a period of 30 days, whether or not such payment shall be prohibited by the provisions of Article 5 hereof; 

        (2)   the
Company defaults in the payment of any principal of (including, without limitation, any premium, if any, on) any Security when the same becomes due and payable
(whether at maturity, upon a Change in Control Purchase Date or otherwise), whether or not such payment shall be prohibited by the provisions of Article 5 hereof; 

        (3)   the
Company fails to comply with any of its other covenants contained in the Securities or this Indenture and the default continues for the period and after the notice
specified below; 

        (4)   the
Company defaults in the payment of the purchase price of any Security when the same becomes due and payable, whether or not such payment shall be prohibited by the
provisions of Article 5 hereof; or 

        (5)   the
Company fails to provide a Change in Control Purchase Notice when required by Section 3.8; or 

        (6)   any
indebtedness under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company or any Significant Subsidiary or under any mortgage,
indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company or any Significant Subsidiary (an 

39

 

"Instrument")
with a principal amount then outstanding in excess of U.S. $25,000,000, whether such indebtedness now exists or shall hereafter be created, is not paid at final maturity of the
Instrument (either at its stated maturity or upon acceleration thereof), and such indebtedness is not discharged, or such default in payment or acceleration is not cured or rescinded, within a period
of 30 days after there shall have been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of a series a written notice specifying such default and requiring the Company to cause such indebtedness to be discharged or cause such default
to be cured or waived or such acceleration to be rescinded or annulled and stating that such notice is a "Notice of Default" hereunder; or 

        (7)   the
Company or any Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy Law: 

        (A)  commences
a voluntary case or proceeding; 

        (B)  consents
to the entry of an order for relief against it in an involuntary case or proceeding; 

        (C)  consents
to the appointment of a Custodian of it or for all or substantially all of its property; or 

        (D)  makes
a general assignment for the benefit of its creditors; or 

        (8)   a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

        (A)  is
for relief against the Company or any Significant Subsidiary in an involuntary case or proceeding; 

        (B)  appoints
a Custodian of the Company or any Significant Subsidiary or for all or substantially all of the property of the Company or any Significant Subsidiary; or 

        (C)  orders
the liquidation of the Company or any Significant Subsidiary; 

and
in each case the order or decree remains unstayed and in effect for 60 consecutive days. 

        The
term "Bankruptcy Law" means Title 11 of the United States Code (or any successor thereto) or any similar federal or state law for the relief of debtors. The term "Custodian" means
any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 

        A
default under clause (3) 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
of a series then outstanding notify the Company and the Trustee, in writing of the default, and the Company does not cure the default within 60 days after receipt of such notice. The notice
given pursuant to this Section 8.1 must specify the default, demand that it be remedied and state that the notice is a "Notice of Default." When any default under this Section 8.1 is
cured, it ceases. 

        The
Trustee shall not be charged with knowledge of any Event of Default unless written notice thereof shall have been given to a Trust Officer at the Corporate Trust Office of the
Trustee by the Company, a Paying Agent, any Holder or any agent of any Holder. 

40

   
        SECTION 8.2.    ACCELERATION.    

        If
an Event of Default (other than an Event of Default specified in clause (7) or (8) of Section 8.1) occurs and is continuing, the Trustee may, by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding of any series may, by notice to the Company and the Trustee, declare all unpaid principal to
the date of acceleration on the Securities then outstanding of such series (if not then due and payable) to be due and payable upon any such declaration, and the same shall become and be immediately
due and payable. If an Event of Default specified in clause (7) or (8) of Section 8.1 occurs with respect to the Company, all unpaid principal of the Securities of each series
then outstanding shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. The Holders of a majority in aggregate
principal amount of the Securities then outstanding of any series by notice to the Trustee may rescind an acceleration and its consequences with respect to that series if (a) all existing
Events of Default with respect to that series, other than the nonpayment of the principal of the Securities which has become due solely by such declaration of acceleration, have been cured or waived;
(b) to the extent the payment of such interest is lawful, interest at a rate of 2% per annum over the amount of interest otherwise payable on such Security on overdue installments of interest
and Additional Interest, if any, and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid; (c) the rescission would not conflict with any
judgment or decree of a court of competent jurisdiction; and (d) all payments due to the Trustee and any predecessor Trustee under Section 9.7 have been made. No such rescission shall
affect any subsequent default or impair any right consequent thereto. 

        SECTION 8.3.    OTHER REMEDIES.    

        If
an Event of Default occurs and is continuing with respect to any series, the Trustee may, but shall not be obligated to, pursue any available remedy by proceeding at law or in equity
to collect the payment of the principal of or interest or Additional Interest, if any, on the Securities of such series or to enforce the performance of any provision of such Securities or this
Indenture. 

        The
Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them 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 to the extent permitted by law. 

        SECTION 8.4.    WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.    

        Subject
to Sections 8.7 and 11.2, the Holders of a majority in aggregate principal amount of the Securities then outstanding of a series by notice to the Trustee may waive an existing
default or Event of Default and its consequence with respect to such series, except a default or Event of Default in the payment of the principal of, premium, if any, or interest or Additional
Interest, if any, on any Security when due, a failure by the Company to convert any Securities into Common Stock or any default or Event of Default in respect of any provision of this Indenture or the
Securities which, under Section 11.2, cannot be modified or amended without the consent of the Holder of each Security affected. When a default or Event of Default is waived, it is cured and
ceases. 

        SECTION 8.5.    CONTROL BY MAJORITY.    

        The
Holders of a majority in principal amount of all Securities then outstanding of any series may direct the time, method and place of conducting any proceeding for exercising any
remedy or power available to the Trustee or exercising any trust or power conferred on it with respect to such series. However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of another Holder or the Trustee, or that may involve the Trustee in personal liability unless the Trustee is
offered indemnity satisfactory to 

41

 

it;
provided, however, that the Trustee may take any other action deemed proper by the Trustee which is
not inconsistent with such direction. 

        SECTION 8.6.    LIMITATIONS ON SUITS.    

        A
Holder may not pursue any remedy with respect to this Indenture or the Securities (except actions for payment of overdue principal, premium, if any, interest or Additional Interest, if
any, or for the right to convert the Securities pursuant to Article 4) unless: 

        (1)   the
Holder gives to the Trustee written notice of a continuing Event of Default; 

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

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

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

        (5)   no
direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate
principal amount of the Securities then outstanding of the applicable series. 

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

        SECTION 8.7.    RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT.    

        Notwithstanding
any other provision of this Indenture, the right of any Holder of a Security to receive payment of the principal of, interest and Additional Interest, if any, on the
Security, on or after the respective due dates expressed in the Security and this Indenture, to convert such Security in accordance with Article 4 and to bring suit for the enforcement of any
such payment on or after such respective dates or the right to convert, is absolute and unconditional and shall not be impaired or affected without the consent of the Holder. 

        SECTION 8.8.    COLLECTION SUIT BY TRUSTEE.    

        If
an Event of Default in the payment of principal, interest or Additional Interest, if any, specified in clause (1) or (2) of Section 8.1 occurs and is continuing
with respect to any Securities, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company or another obligor on the Securities for the whole amount of
principal and accrued interest or Additional Interest, if any, remaining unpaid, together with, to the extent that payment of such interest is lawful, interest on overdue principal and overdue
installments of interest or Additional Interest, if any, in each case at a rate equal to the interest rate then in effect on such Security plus 2% per annum and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

        SECTION 8.9.    TRUSTEE MAY FILE PROOFS OF CLAIM.    

        The
Trustee may file such proofs of claim and 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) and the Holders allowed in any judicial proceedings relative to the Company (or any other obligor
on the Securities), its creditors or its property and shall be entitled and empowered to collect and receive any money or other property payable or deliverable on any such claims and to distribute the
same, and any Custodian 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 

42

 

to
the Holders, to pay to the Trustee any amount due to 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 9.7, and to the extent that such payment of the reasonable compensation, expenses, disbursements and advances in any such proceedings shall be denied for any reason,
payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other property which the Holders may be entitled to receive in
such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to,
or, on behalf of any Holder, to authorize, accept or adopt 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 8.10.    PRIORITIES.    

        If
the Trustee collects any money pursuant to this Article 8, it shall pay out the money in the following order: 

        First, to the Trustee for amounts due under Section 9.7; 

        Second, to the holders of Senior Indebtedness to the extent required by Article 5; 

        Third, to Holders for amounts due and unpaid on the Securities for principal, interest and Additional Interest, if any, ratably, without
preference or priority of any kind, according to the amounts due and payable on the Securities for principal, interest and Additional Interest, if any, respectively; and 

        Fourth, the balance, if any, to the Company. 

        The
Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 8.10. 

        SECTION 8.11.    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 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 8.11 does not apply
to a suit made by the Trustee, a suit by a Holder pursuant to Section 8.7, or a suit by Holders of more than 10% in aggregate principal amount of the Securities then outstanding of any series. 

ARTICLE 9

TRUSTEE  

        SECTION 9.1.    DUTIES OF TRUSTEE.    

        (a)   If
an Event of Default has occurred and is continuing, the Trustee shall exercise such of 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 his or her own affairs. 

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

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

43

 

        (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. The Trustee, however, shall examine any certificates and opinions which by any provision hereof
are specifically required to be delivered to the Trustee to determine whether or not they conform to the requirements of this Indenture. 

        (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 (subject to the
Trust Indenture Act) that: 

        (1)   this
paragraph does not limit the effect of subsection (b) of this Section 9.1; 

        (2)   the
Trustee shall not be liable for any error of judgment made in good faith by a Trust 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 8.5. 

        (d)   No
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers unless the Trustee shall have received adequate indemnity in its opinion against potential costs and liabilities incurred by it
relating thereto. 

        (e)   Every
provision of this Indenture that in any way relates to the Trustee is subject to subsections (a), (b), (c) and (d) of this Section 9.1. 

        (f)    The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee
need not be segregated from other funds except to the extent required by law. 

        SECTION 9.2.    RIGHTS OF TRUSTEE.    

        Subject
to Section 9.1: 

        (a)   The
Trustee may rely conclusively on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document. 

        (b)   Before
the Trustee acts or refrains from acting, it may require an Officers' Certificate or an Opinion of Counsel, which shall conform to Section 12.4(b). The
Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers' Certificate or Opinion. 

        (c)   The
Trustee may act through its agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 

        (d)   The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers. 

        (e)   The
Trustee may consult with counsel of its selection, and the advice or opinion of such counsel as to matters of law shall be full and complete authorization and
protection in respect of any such action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such 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 or direction of any of the Holders
pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the 

44

 

Trustee
against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 

        (g)   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. 

        (h)   The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Trust 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, and such notice references the Securities and this Indenture. 

        (i)    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. 

        SECTION 9.3.    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 an Affiliate of the Company with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the Trustee is subject to Sections 9.10 and 9.11. 

        SECTION 9.4.    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 of the proceeds from the
Securities, and it shall not be responsible for any statement in the Securities other than its certificate of authentication. 

        SECTION 9.5.    NOTICE OF DEFAULT OR EVENTS OF DEFAULT.    

        If
a default or an Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to each Securityholder of the affected series notice of the default
or Event of Default within 90 days after it occurs. However, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding
notice is in the interests of Securityholders of such series, except in the case of a default or an Event of Default in payment of the principal of, interest or Additional Interest, if any, on any
Security of such series. 

        SECTION 9.6.    REPORTS BY TRUSTEE TO HOLDERS.    

        If
such report is required by TIA Section 313, within 60 days after each May 15, beginning with the May 15 following the date of this Indenture, the Trustee
shall mail to each Securityholder a brief report
dated as of such May 15 that complies with TIA Section 313(a). The Trustee also shall comply with TIA Section 313(b)(2) and (c). 

        A
copy of each report at the time of its mailing to Securityholders shall be mailed to the Company and filed with the SEC and each stock exchange, if any, on which the Securities are
listed. The Company shall notify the Trustee whenever the Securities become listed on any stock exchange or listed or admitted to trading on any quotation system and any changes in the stock exchanges
or quotation systems on which the Securities are listed or admitted to trading and of any delisting thereof. 

45

 

        SECTION 9.7.    COMPENSATION AND INDEMNITY.    

        The
Company shall pay to the Trustee from time to time such compensation (as agreed to from time to time by the Company and the Trustee in writing) for its services (which compensation
shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust). The Company shall reimburse the Trustee upon request for all reasonable disbursements,
expenses and advances incurred or made by it. Such expenses may include the reasonable compensation, disbursements and expenses of the Trustee's agents and counsel. 

        The
Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of this Section 9.7 shall include its officers, directors, employees and agents) for, and
hold it harmless against, any and all loss, liability or expense including taxes (other than taxes based upon, measured by or determined by the income of the Trustee), (including reasonable legal fees
and expenses) incurred by it in connection with the acceptance or administration of its duties under this Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the Trustee and its counsel in defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The Trustee shall notify the Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The Company
need not pay for any settlement effected without its prior written consent, which shall not be unreasonably withheld. 

        The
Company need not reimburse the Trustee for any expense or indemnify it against any loss or liability incurred by it resulting from its gross negligence or bad faith. 

        To
secure the Company's payment obligations in this Section 9.7, the Trustee shall have a senior claim to which the Securities are hereby made subordinate on all money or property
held or collected by the Trustee, except such money or property held in trust to pay the principal of, interest and Additional
Interest, if any, on the Securities. The obligations of the Company under this Section 9.7 shall survive the satisfaction and discharge of this Indenture or the resignation or removal of the
Trustee. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in clause (7) or (8) of Section 8.1 occurs, the expenses and the
compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law to the extent permitted by law. The provisions of this Section shall survive the
termination of this Indenture. 

        SECTION 9.8.    REPLACEMENT OF TRUSTEE.    

        The
Trustee may resign by so notifying the Company. The Holders of a majority in aggregate principal amount of the Securities then outstanding may remove the Trustee by so notifying the
Trustee and may, with the Company's written consent, appoint a successor Trustee. The Company may remove the Trustee if: 

        (1)   the
Trustee fails to comply with Section 9.10; 

        (2)   the
Trustee is adjudged a bankrupt or an insolvent; 

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

        (4)   the
Trustee becomes incapable of acting. 

        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 a successor Trustee. The resignation or removal of
a Trustee shall not be effective until a successor Trustee shall have delivered the written acceptance of its appointment as described below. 

46

 

        If
a successor Trustee does not take office within 45 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of 10% in principal
amount of the
Securities then outstanding may petition any court of competent jurisdiction for the appointment of a successor Trustee at the expense of the Company. 

        If
the Trustee fails to comply with Section 9.10, any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee and be released from its obligations (exclusive of any liabilities that the retiring Trustee may have incurred while acting as Trustee)
hereunder, 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. A
successor Trustee shall mail notice of its succession to each Holder. 

        A
retiring Trustee shall not be liable for the acts or omissions of any successor Trustee after its succession. 

        Notwithstanding
replacement of the Trustee pursuant to this Section 9.8, the Company's obligations under Section 9.7 shall continue for the benefit of the retiring Trustee. 

        SECTION 9.9.    SUCCESSOR TRUSTEE BY MERGER, ETC.    

        If
the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust assets (including the administration of this Indenture) to,
another corporation, the resulting, surviving or transferee corporation, without any further act, shall be the successor Trustee, provided such
transferee corporation shall qualify and be eligible under Section 9.10. Such successor Trustee shall promptly mail notice of its succession to the Company and each Holder. 

        SECTION 9.10.    ELIGIBILITY; DISQUALIFICATION.    

        The
Trustee shall always satisfy the requirements of paragraphs (1), (2) and (5) of TIA Section 310(a). The Trustee (or its parent holding company) shall have a
combined capital and surplus of at least $50,000,000. If at any time the Trustee shall cease to satisfy any such requirements, it shall resign immediately in the manner and with the effect specified
in this Article 9. The Trustee shall be subject to the provisions of TIA Section 310(b). Nothing herein shall prevent the Trustee from filing with the SEC the application referred to in
the penultimate paragraph of TIA Section 310(b). 

        SECTION 9.11.    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 10

SATISFACTION AND DISCHARGE OF INDENTURE  

        SECTION 10.1.    SATISFACTION AND DISCHARGE OF INDENTURE.    

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

        (1)   either

47

 

        (A)  all
Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 2.7 and (ii) Securities for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company as provided in Section 10.3)
have been delivered to the Trustee for cancellation; or 

        (B)  all
such Securities not theretofore delivered to the Trustee for cancellation have become due and payable and the Company has irrevocably deposited or caused to be
irrevocably deposited cash with the Trustee or a Paying Agent (other than the Company or any of its Affiliates) as trust funds in trust for the purpose of and in an amount sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest (including Additional Interest, if any) to the date of such
deposit (in the case of Securities which have become due and payable); 

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

        (3)   the
Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein relating to the
satisfaction and discharge of this Indenture have been complied with. 

        Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 9.7 shall survive and, if money shall have been
deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the provisions of Sections 2.3, 2.4, 2.5, 2.6, 2.7, 2.12, Article 4, Section 6.1,
Section 6.2, this Article 10 and Section 12.5, shall survive until the Securities have been paid in full. 

        SECTION 10.2.    APPLICATION OF TRUST MONEY.    

        Subject
to the provisions of Section 10.3, the Trustee or a Paying Agent shall hold in trust, for the benefit of the Holders, all money deposited with it pursuant to
Section 10.1 and shall apply the deposited money in accordance with this Indenture and the Securities to the payment of the principal of, interest and Additional Interest, if any, on the
Securities. Money so held in trust shall not be subject to the subordination provisions of Article 5. 

        SECTION 10.3.    REPAYMENT TO COMPANY.    

        The
Trustee and each Paying Agent shall promptly pay to the Company upon request any excess money (i) deposited with them pursuant to Section 10.1 and (ii) held by
them at any time. 

        The
Trustee and each Paying Agent shall pay to the Company upon request any money held by them for the payment of principal or interest or Additional Interest, if any, that remains
unclaimed for two years after a right to such money has matured; provided, however, that the Trustee or
such Paying Agent, before being required to make any such payment, may at the expense of the Company cause to be mailed to each Holder entitled to such money notice that such money remains unclaimed
and that after a date specified therein, which shall be at least 30 days from the date of such mailing, any unclaimed balance of such money then remaining will be repaid to the Company. After
payment to the Company, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person. 

        SECTION 10.4.    REINSTATEMENT.    

        If
the Trustee or any Paying Agent is unable to apply any money in accordance with Section 10.2 by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Securities shall be revived and reinstated
as though no deposit 

48

 

had
occurred pursuant to Section 10.1 until such time as the Trustee or such Paying Agent is permitted to apply all such money in accordance with Section 10.2;  provided, however, that if the Company has made any payment of the principal of or interest or
Additional Interest, if any, on any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive any such
payment from the money held by the Trustee or such Paying Agent. 

ARTICLE 11

AMENDMENTS, SUPPLEMENTS AND WAIVERS  

        SECTION 11.1.    WITHOUT CONSENT OF HOLDERS.    

        The
Company and the Trustee may amend or supplement this Indenture or the Securities with respect to one or both series of Securities without notice to or consent of any Securityholder: 

        (a)   to
comply with Sections 4.11 and 7.1; 

        (b)   to
cure any ambiguity, defect or inconsistency; 

        (c)   to
make any other change that does not adversely affect the rights of any Securityholder; 

        (d)   to
comply with the provisions of the TIA; 

        (e)   to
add to the covenants of the Company for the equal and ratable benefit of the Securityholders or to surrender any right, power or option conferred upon the Company; or 

        (f)    to
appoint a successor Trustee. 

        SECTION 11.2.    WITH CONSENT OF HOLDERS.    

        The
Company and the Trustee may, with respect to any series of Securities, amend or supplement this Indenture or the Securities with the written consent of the Holders of at least a
majority in aggregate principal amount of the Securities then outstanding of each series affected thereby. The Holders of at least a majority in aggregate principal amount of the Securities then
outstanding of a series may waive compliance (with respect to such series) in a particular instance by the Company with any provision of this Indenture or the Securities of such series without notice
to any Securityholder. However, notwithstanding the foregoing but subject to Section 11.4, without the written consent of each Securityholder of the series affected, an amendment, supplement or
waiver, including a waiver pursuant to Section 8.4, may not: 

        (a)   change
the stated maturity of the principal of any Security; 

        (b)   reduce
the principal amount of, or any premium or interest on, any Security; 

        (c)   change
the place or currency of payment of principal of, or any premium, interest or Additional Interest, if any, on, any Security; 

        (d)   impair
the right to institute suit for the enforcement of any payment on, or with respect to, any Security; 

        (e)   modify
the provisions with respect to the purchase right of Holders pursuant to Article 3 upon a Change in Control in a manner adverse to Holders; 

        (f)    modify
the subordination provisions of Article 5 in a manner materially adverse to the Holders of Securities; 

        (g)   adversely
affect the right of Holders to convert Securities other than as provided in or under Article 4 of this Indenture; 

49

 

        (h)   reduce
the percentage of the aggregate principal amount of the outstanding Securities whose Holders must consent to a modification or amendment; 

        (i)    reduce
the percentage of the aggregate principal amount of the outstanding Securities necessary for the waiver of compliance with the provisions of this Indenture or the
waiver of defaults under this Indenture; and 

        (j)    modify
any of the provisions of this Section or Section 8.4, except to increase any such percentage or to provide that provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each outstanding Security affected thereby. 

        It
shall not be necessary for the consent of the Holders under this Section 11.2 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof. 

        After
an amendment, supplement or waiver under Section 11.1 or this Section 11.2 becomes effective, the Company shall mail to the Holders affected thereby a notice briefly
describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such
amendment, supplement or waiver. An amendment or supplement under this Section 11.2 or under Section 11.1 may not make any change that adversely affects the rights under Article 5
of any holder of an issue of Senior Indebtedness unless the holders of that issue, pursuant to its terms, consent to the change. 

        SECTION 11.3.    COMPLIANCE WITH TRUST INDENTURE ACT.    

        Every
amendment to or supplement of this Indenture or the Securities shall comply with the TIA as in effect at the date of such amendment or supplement. 

        SECTION 11.4.    REVOCATION AND EFFECT OF CONSENTS.    

        Until
an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to its Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment, supplement or waiver becomes effective. 

        After
an amendment, supplement or waiver becomes effective with respect to a series, it shall bind every Securityholder of such series, unless it makes a change described in any of
clauses (a) through (k) of Section 11.2. In that case the amendment, supplement or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder
of a Security or portion of a Security that evidences the same debt as the consenting Holder's Security. 

        SECTION 11.5.    NOTATION ON OR EXCHANGE OF SECURITIES.    

        If
an amendment, supplement or waiver changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall
issue and the Trustee shall authenticate a new Security that reflects the changed terms. 

        SECTION 11.6.    TRUSTEE TO SIGN AMENDMENTS, ETC.    

        The
Trustee shall sign any amendment or supplemental indenture authorized pursuant to this Article 11 if the amendment or supplemental indenture does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but need not sign it. In signing or refusing to sign such amendment or supplemental
indenture, the Trustee shall be 

50

 

entitled
to receive and, subject to Section 9.1, shall be fully protected in relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is authorized or permitted
by this Indenture. The Company may not sign an amendment or supplement indenture until the Board of Directors approves it. 

        SECTION 11.7.    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 12

MISCELLANEOUS  

        SECTION 12.1.    TRUST INDENTURE ACT CONTROLS.    

        If
any provision of this Indenture limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive, of the TIA through operation of Section 318(c)
thereof, such imposed duties shall control. 

        SECTION 12.2.    NOTICES.    

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

If
to the Company, to: 

ADC
Telecommunications, Inc.

13625 Technology Drive

Eden Prairie, Minnesota 55440

Attention: General Counsel

Facsimile No.: [                        ] 

if
to the Trustee, to:

[Address]

Attn: Corporate Trust Services (ADC Telecommunications, Inc.—

Facsimile No.: [                        ] 

        Such
notices or communications shall be effective when received. 

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

        Any
notice or communication mailed to a Securityholder shall be mailed by first-class mail or delivered by an overnight delivery service to it at its address shown on the register kept
by the Primary Registrar. 

        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 to
a Securityholder is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 

51

 

        SECTION 12.3.    COMMUNICATIONS 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 and any other person shall have the protection of TIA Section 312(c). 

        SECTION 12.4.    CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.    

        (a)   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 at the request of the
Trustee: 

        (1)   an
Officers' Certificate stating that, in the opinion of the signers, all conditions precedent (including any covenants, compliance with which constitutes a condition
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 (including any covenants, compliance with which constitutes a condition
precedent) have been complied with. 

        (b)   Each
Officers' Certificate and Opinion of Counsel with respect to compliance with a condition or covenant provided for in this Indenture shall include: 

        (1)   a
statement that the person making such certificate or opinion 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 certificate or opinion are
based; 

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

        (4)   a
statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with; 

provided however, that with respect to matters of fact an Opinion of Counsel may rely on an Officers' Certificate or certificates of public officials. 

        SECTION 12.5.    RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS.    

        The
Company (or, in the event deposits have been made pursuant to Section 10.1, the Trustee) may set a record date for purposes of determining the identity of Holders entitled to
vote or consent to any action by vote or consent authorized or permitted under this Indenture, which record date shall not be more than thirty (30) days prior to the date of the commencement of
solicitation of such action. Notwithstanding the provisions of Section 11.4, if a record date is fixed, those persons who were Holders of Securities at the close of business on such record date
(or their duly designated proxies), and only those persons, shall be entitled to take such action by vote or consent or to revoke any vote or consent previously given, whether or not such persons
continue to be Holders after such record date. 

        SECTION 12.6.    RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT.    

        The
Trustee may make reasonable rules (not inconsistent with the terms of this Indenture) for action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may
make reasonable rules for its functions. 

52

 

        SECTION 12.7.    LEGAL HOLIDAYS.    

        A
"Legal Holiday" is a Saturday, Sunday or a day on which state or federally chartered banking institutions in New York, New York and the state in which the Corporate Trust Office is
located are not required to be open (and, in the case of the Floating Rate Notes, commercial banks in London, England, are not open for business, including dealings in U.S dollars). If a payment date
is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest or Additional Interest, if any, shall accrue for the intervening period on such
payment. If an interest record date is a Legal Holiday, the record date shall not be affected. 

        SECTION 12.8.    GOVERNING LAW; SUBMISSION TO JURISDICTION.    

        (a)   This
Indenture and the Securities shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to principles of conflicts of
laws. 

        (b)   The
Company irrevocably submits to the non-exclusive jurisdiction of any New York State or United States Federal court sitting in The City of New York over
any suit, action or proceeding arising out of or relating to this Indenture. The Company irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to
the laying of venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient
forum. 

        SECTION 12.9.    NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.    

        This
Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be
used to interpret this Indenture. 

        SECTION 12.10.    NO RECOURSE AGAINST OTHERS.    

        All
liability described in paragraph 15 of the Securities of any director, officer, employee or stockholder, as such, of the Company is waived and released. 

        SECTION 12.11.    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 12.12.    MULTIPLE COUNTERPARTS.    

        The
parties may sign multiple counterparts of this Indenture. Each signed counterpart shall be deemed an original, but all of them together represent the same agreement. 

        SECTION 12.13.    SEPARABILITY.    

        In
case any provisions 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 12.14.    TABLE OF CONTENTS, HEADINGS, ETC.    

        The
table of contents, cross-reference sheet and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 

        SECTION 12.15.    CALCULATIONS IN RESPECT OF THE SECURITIES.    

        The
Company and its agents shall make all calculations under the Indenture and the Securities in good faith. In the absence of manifest error, such calculations shall be final and
binding on all Holders. The Company shall provide a copy of such calculations to the Trustee as required hereunder. 

[SIGNATURE
PAGE FOLLOWS] 

53

 

        IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year first above written. 

	 	 	ADC Telecommunications, Inc.
	

 	
 	

By:	
 	

 

	 	 	Name:	 	 
	 	 	Title:	 	 
	

 	
 	
U.S. Bank National Association, as Trustee
	

 	
 	

By:	
 	

 

	 	 	Name:	 	 
	 	 	Title:	 	 

(Signature Page to Indenture)  

54

   EXHIBIT A-1

[FORM OF FACE OF SECURITY]  

        [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF 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. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR
ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.](1) 

        [THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND
THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.](2) 

        THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT,
(III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE
IN ANY 

A-1-1

 

HEDGING
TRANSACTIONS WITH REGARD TO THIS SECURITY EXCEPT AS PERMITTED UNDER THE SECURITIES ACT.](2) 

        [THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND,
BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.](2) 

	(1)
	These
paragraphs should be included only if the Security is a Global Security.

	(2)
	These
paragraphs to be included only if the Security is a Restricted Security. 

A-1-2

 
ADC TELECOMMUNICATIONS, INC.  

	CUSIP: 000886AC5	 	R-1

1% CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2008 

        ADC
Telecommunications, Inc., a Delaware corporation (the "Company", which term shall include any successor corporation under the Indenture referred to on the reverse hereof),
promises to pay
to                                         
                   , or registered assigns, the principal sum
of                        Dollars
($                        ) on June 15, 2008 [or such greater or
lesser amount as is indicated on the Schedule of Exchanges of Notes on the other side of this Note](3) and to pay interest thereon as provided on the other side of this Note. 

        Interest
Payment Dates: June 15 and December 15, beginning December 15, 2003. 

        Record
Dates: June 1 and December 1 

        This
Note is convertible as specified on the other side of this Note. Additional provisions of this Note are set forth on the other side of this Note. 

SIGNATURE PAGE FOLLOWS 

	(3)
	This
phrase should be included only if the Security is a global Security. 

A-1-3

 

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

	 	 	 	 	ADC Telecommunications, Inc.
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Name:

Title:
	

Attest:	
 	

 	
 	

 	
 	

 
	

 Name:

Title:	
 	

 	
 	

 
	

Dated:	
 	

 	
 	

 

A-1-4

 

	Trustee's Certificate of Authentication: This is one of the Securities referred to in the within-mentioned Indenture.	 	 	 	 
	
U.S. Bank National Association,

as Trustee	
 	

 	
 	

 
	

 Authorized Signatory	
 	

 	
 	

 
	

By:	
 	

 	
 	

 

A-1-5

   [FORM OF REVERSE SIDE OF SECURITY]  

ADC TELECOMMUNICATIONS, INC.

1% CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2008  

	1.
	INTEREST 

        The
Company shall pay interest on this Note semiannually in arrears on June 15 and December 15, each an "interest payment date", of each year, commencing on
December 15, 2003, at the rate per annum specified in the title of this Note. Interest shall accrue from and including June 4, 2003 or the most recent interest payment date to which
interest had been paid or duly provided for to but excluding the date on which such interest is paid. Interest on this Note will be computed on the basis of a 360-day year of twelve
30-day months. 

        The
Company shall, (in immediately available funds) to the fullest extent permitted by law, pay interest on overdue principal (including premium, if any) and overdue installments of
interest from the original due date to the date paid, at the rate applicable to this Note plus 2% per annum, which interest shall be payable on demand. 

        All
references in the Indenture and this Note to interest shall be deemed to include a reference to additional interest payable pursuant to the Registration Rights Agreement dated as of
June 4, 2003 with respect to this Note. If additional interest is payable on this Note as contemplated under the Registration Rights Agreement, it shall be payable on each interest payment date
and at maturity to the record holder entitled to interest on such date. 

        The
interest so payable and punctually paid or duly provided for on any interest payment date will be paid to the Person in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on the June 1 or December 1 preceding such interest payment date (the "Record Date") except as provided in the Indenture. Payment of the principal
of (and premium, if any) and interest on this Note will be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts and as otherwise provided in the Indenture. 

	2.
	METHOD
OF PAYMENT 

        The
Holder must surrender this Note to a Paying Agent to collect payment of principal at maturity. The Company will make any payments of interest at maturity to the person to whom the
principal is paid. On presentation and surrender of the certificated Note, the Company will pay principal and interest in money of the United States that at the time of payment is legal tender for
payment of public and private debts. The Company will make any payments of interest on any interest payment date other than the date of maturity by check mailed to the address of the record date
registered holder as it appears in the security register; provided, however, that a Holder with an
aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire transfer instructions in
writing to the Trustee not less than 10 Business Days prior to the interest payment date. Any wire transfer instructions received by the trustee will remain in effect until revoked by the registered
holder. Notwithstanding the foregoing, so long as this Note is registered in the name of a Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately available funds
to the account of the Depositary or its nominee. 

	3.
	PAYING
AGENT, REGISTRAR AND CONVERSION AGENT 

        Initially,
U.S. Bank National Association (the "Trustee", which term shall include any successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar
and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent without notice to 

A-1-6

 

the
Holder. The Company or any of its Subsidiaries may, subject to certain limitations set forth in the Indenture, act as Paying Agent or Registrar. 

	4.
	INDENTURE,
LIMITATIONS 

        This
Note is one of a duly authorized issue of Securities of the Company designated as its 1% Convertible Subordinated Notes Due June 15, 2008 (the "Notes"), issued under an
Indenture dated as of June 4, 2003 (together with any supplemental indentures thereto, the "Indenture"), between the Company and the Trustee. The terms of this Note include those stated in the
Indenture and those required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture. This Note is subject to all such
terms, and the Holder of this Note is referred to the Indenture and said Act for a statement of them. Capitalized terms used and not defined herein have the meanings assigned to such terms in the
Indenture. 

        The
Notes are subordinated unsecured obligations of the Company limited to $175,000,000 aggregate principal amount (or $200,000,000 if the initial purchasers exercise their option to
purchase additional Notes). The Indenture does not limit other debt of the Company, secured or unsecured, including Senior Indebtedness. 

	5.
	PURCHASE
OF NOTES AT OPTION OF HOLDER UPON A CHANGE IN CONTROL 

        At
the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase all or any part specified by the Holder (so long as
the principal amount of such part is $1,000 or an integral multiple of $1,000 in excess thereof) of the Notes held by such Holder on the date that is 30 Business Days after the occurrence of a Change
in Control, at a purchase price equal to 100% of the principal amount thereof together with accrued interest and Additional Interest, if any, up to, but excluding, the Change in Control Purchase Date.
The Holder shall have the right to withdraw any Change in Control Purchase Notice (in whole or in a portion thereof that is $1,000 or an integral multiple of $1,000 in excess thereof) at any time
prior to the close of business on the Business Day next preceding the Change in Control Purchase Date by delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of
the Indenture. 

        The
Company may pay the purchase price in cash or certain securities, as set forth in the Indenture. 

	6.
	CONVERSION 

        A
Holder of a Note may convert the principal amount of such Note (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof) into shares of Common Stock
at any time prior to the close of business on the Final Maturity Date; provided, however, that if the
Note is subject to purchase upon a Change in Control, the conversion right will terminate at the close of business on the Business Day immediately preceding the Change in Control Purchase Date for
such Note or such
earlier date as the Holder presents such Note for purchase (unless the Company shall default in making the Change in Control Purchase Price, when due, in which case the conversion right shall
terminate at the close of business on the date such default is cured and such Note is purchased). 

        The
initial Conversion Price is $4.013 per share, subject to adjustment under certain circumstances as provided in the Indenture. The number of shares of Common Stock issuable upon
conversion of a Note is determined by dividing the principal amount of the Note or portion thereof converted by the Conversion Price in effect on the Conversion Date. No fractional shares will be
issued upon conversion; in lieu thereof, an amount will be paid in cash based upon the Closing Price (as defined in the Indenture) of the Common Stock on the Trading Day immediately prior to the
Conversion Date. 

        To
convert a Note, a Holder must (a) complete and manually sign the conversion notice set forth below and deliver such notice to a Conversion Agent, (b) surrender the Note
to a Conversion Agent, (c) furnish appropriate endorsements and transfer documents if required by a Registrar or a 

A-1-7

 

Conversion
Agent, and (d) pay any transfer or similar tax, if required. Notes so surrendered for conversion (in whole or in part) during the period from the close of business on any regular
record date to the opening of business on the next succeeding interest payment date, if any, shall also be accompanied by payment in funds acceptable to the Company of an amount equal to the interest
payable on such interest payment date on the principal amount of such Note then being converted, and such interest shall be payable to such registered Holder notwithstanding the conversion of such
Note, subject to the provisions of this Indenture relating to the payment of defaulted interest, if any, by the Company in each case to the extent provided in the Indenture, including
Section 4.2 thereof. If the Company defaults in the payment of interest payable on such interest payment date, if any, the Company shall promptly repay such funds to such Holder. A Holder may
convert a portion of a Note equal to $1,000 or any integral multiple thereof. 

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

	7.
	SUBORDINATION 

        The
indebtedness evidenced by the Notes is, to the extent and in the manner provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all
Senior Indebtedness of the Company (including any interest accruing subsequent to the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowed as a claim in any such proceeding). Any Holder by accepting this Note agrees to and shall be
bound by such subordination provisions and authorizes the Trustee to give them effect. In addition to all other rights of Senior Indebtedness described in the Indenture, the Senior Indebtedness shall
continue to be Senior Indebtedness and entitled to the benefits of the subordination provisions irrespective of any amendment, modification or waiver of any terms of any instrument relating to the
Senior Indebtedness or any extension or renewal of the Senior Indebtedness. 

	8.
	DENOMINATIONS,
TRANSFER, EXCHANGE, CANCELLATION 

        The
Notes are in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000. A Holder may register the transfer of or exchange Notes 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 or other governmental charges that may be imposed
in relation thereto by law or permitted by the Indenture. 

        All
Notes surrendered for payment, registration of transfer or exchange or conversion will, if surrendered to the Company or any of its other Agents with respect to the Notes, be
delivered to the Trustee. The Trustee will promptly cancel all Notes delivered to it. No Notes will be authenticated in exchange for any Notes cancelled as provided in the Indenture. 

	9.
	PERSONS
DEEMED OWNERS 

        The
Holder of a Note may be treated as the owner of it for all purposes. 

	10.
	UNCLAIMED
MONEY 

        If
money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company at its written request, subject to
applicable unclaimed property law. After that, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another
person. 

A-1-8

 

	11.
	AMENDMENT,
SUPPLEMENT AND WAIVER 

        Subject
to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the Notes
then outstanding, and an existing default or Event of Default and its consequence or compliance with any provision of the Indenture or the Notes may be waived in a particular instance with the consent
of the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without the consent of or notice to any Holder, the Company and the Trustee may amend or supplement the
Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency or make any other change that does not adversely affect the rights of any Holder. 

	12.
	SUCCESSOR
ENTITY 

        When
a successor corporation assumes all the obligations of its predecessor under the Notes and the Indenture in accordance with the terms and conditions of the Indenture, the
predecessor corporation (except in certain circumstances specified in the Indenture) be released from those obligations. 

	13.
	DEFAULTS
AND REMEDIES 

        Under
the Indenture, an Event of Default includes: (i) default for 30 days in payment of interest or Additional Interest, if any, on any Notes; (ii) default in
payment of any principal (including, without limitation, any premium) on the Notes when due; (iii) failure by the Company for 60 days after notice to it to comply with any of its other
covenants contained in the Indenture or the Notes; (iv) default in the payment of certain indebtedness of the Company or a Significant Subsidiary; (v) certain events of bankruptcy,
insolvency or reorganization of the Company or any Significant Subsidiary and (vi) certain other events described in the Indenture. If an Event of Default (other than as a result of certain
events of bankruptcy, insolvency or reorganization of the Company) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding may
declare all unpaid principal to the date of acceleration on the Notes then outstanding to be due and payable immediately, all as and to the extent provided in the Indenture. If an Event of Default
occurs as a result of certain events of bankruptcy, insolvency or reorganization of the Company, unpaid principal of the Notes then outstanding shall become due and payable immediately without any
declaration or other act on the part of the Trustee or any Holder, all as and to the extent provided in the Indenture. Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a majority in aggregate principal amount of
the Notes then outstanding
may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of principal or interest) if it
determines that withholding notice is in their interests. The Company is required to file periodic reports with the Trustee as to the absence of default. 

	14.
	TRUSTEE
DEALINGS WITH THE COMPANY 

        U.S.
Bank National Association, the Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from and perform services for the Company or
an Affiliate of the Company, and may otherwise deal with the Company or an Affiliate of the Company, as if it were not the Trustee. 

	15.
	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 Notes or the Indenture nor for any claim
based on, in respect of or by reason of such obligations or their creation. The Holder of this Note by accepting this 

A-1-9

 

Note
waives and releases all such liability. The waiver and release are part of the consideration for the issuance of this Note. 

	16.
	AUTHENTICATION 

        This
Note shall not be valid until the Trustee or an authenticating agent manually signs the certificate of authentication on the other side of this Note. 

	17.
	ABBREVIATIONS
AND DEFINITIONS 

        Customary
abbreviations may be used in the name of the Holder 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 UGMA (= Uniform Gifts to Minors Act). 

        All
terms defined in the Indenture and used in this Note but not specifically defined herein are defined in the Indenture and are used herein as so defined. 

	18.
	INDENTURE
TO CONTROL; GOVERNING LAW 

        In
the case of any conflict between the provisions of this Note and the Indenture, the provisions of the Indenture shall control. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to principles of conflicts of law. 

        The
Company will furnish to any Holder, upon written request and without charge, a copy of the Indenture. Requests may be made to: ADC Telecommunications, Inc., 13625 Technology
Drive, Eden Prairie, MN 55440, [phone], Attention: Investor Relations. 

A-1-10

 
ASSIGNMENT FORM  

        To assign this Note, fill in the form below: 

        I
or we assign and transfer this Note to 

	
 (Insert assignee's soc. sec. or tax I.D. no.)
	

	

	

	

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

and
irrevocably appoint 

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

	 	 	 	 	Your Signature:
	

Date:	
 	

 	
 	

 (Sign exactly as your name appears on the

other side of this Note)
	

*Signature guaranteed by:	
 	

 
	

By:	
 	

	
 	

 

	*
	The
signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the
Trustee. 

A-1-11

 
CONVERSION NOTICE  

        To convert this Note into Common Stock of the Company, check the box:    o 

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

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

	
 (Insert assignee's soc. sec. or tax I.D. no.)
	

	

	

	

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

   

 

	 	 	 	 	Your Signature:
	

Date:	
 	

 	
 	

 (Sign exactly as your name appears on the

other side of this Note)
	

*Signature guaranteed by:	
 	

 
	

By:	
 	

	
 	

 

	*
	The
signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the
Trustee. 

A-1-12

   OPTION TO ELECT REPURCHASE

UPON A CHANGE IN CONTROL  

	To:
	ADC
Telecommunications, Inc. 

        The
undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from ADC Telecommunications, Inc. (the "Company") as to the occurrence of a
Change in Control with respect to the Company and requests and instructs the Company to purchase the entire principal amount of this Security, or the portion thereof (which is $1,000 or an integral
multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Security at the Change in Control Purchase Price, together with accrued interest, if any, to, but
excluding, such date, to the registered Holder hereof. 

	Dated:	 	 
	 	 	 	 

	 	 	 	 	 	 	 

	 	 	 	 	 	 	Signature(s) must be guaranteed by a qualified guarantor institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934.
	 	 	 	 	 	 	 
 Signature Guaranty
	

Principal amount to be purchased

(in an integral multiple of $1,000, if less than all):	
 	

 
	 
	 	 

NOTICE:
The signature to the foregoing Election must correspond to the Name as written upon the face of this Security in every particular, without alteration or any change whatsoever. 

A-1-13

 
SCHEDULE OF EXCHANGES OF NOTES(3)  

        The following exchanges, repurchases or conversions of a part of this global Note have been made: 

	Principal Amount

of this Global Note

Following Such

Decrease Date

of Exchange (or Increase)
	 	Authorized

Signatory of

Securities

Custodian
	 	Amount of Decrease in

Principal Amount

of this Global Note
	 	Amount of Increase in

Principal Amount

of this Global Note

	 	 	 	 	 	 	 

	(3)
	This
schedule should be included only if the Security is a global Security. 

A-1-14

 
CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES(4)  

	Re:
	1%
Convertible Subordinated Notes Due June 15, 2008 (the "Notes") of ADC Telecommunications, Inc. 

        This
certificate relates to $            principal amount of Notes owned in (check applicable box) 

        o book-entry
or o definitive form by                        (the
"Transferor"). 

        The
Transferor has requested a Registrar or the Trustee to exchange or register the transfer of such Notes. 

        In
connection with such request and in respect of each such Note, the Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the Notes as
provided in Section 2.12 of the Indenture dated as of June 4, 2003 between ADC Telecommunications, Inc. and U.S. Bank National Association, as trustee (the "Indenture"), and the
transfer of such Note is in accordance with any applicable securities laws of any state and is being made pursuant to an effective registration statement under the Securities Act of 1933, as amended
(the "Securities Act") (check applicable box) or the transfer or exchange, as the case may be, of such Note does not require registration under the Securities Act because (check applicable box): 

	o
	Such
Note is being transferred pursuant to an effective registration statement under the Securities Act.

	o
	Such
Note is being acquired for the Transferor's own account, without transfer.

	o
	Such
Note is being transferred to the Company.

	o
	Such
Note is being transferred to a person the Transferor reasonably believes is a "qualified institutional buyer" (as defined in
Rule 144A or any successor provision thereto ("Rule 144A") under the Securities Act) that is purchasing for its own account or for the account of a "qualified institutional buyer", in
each case to whom notice has been given that the transfer is being made in reliance on such Rule 144A, and in each case in reliance on Rule 144A.

	o
	Such
Note is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities Act
in accordance with Rule 144 (or any successor thereto) ("Rule 144") under the Securities Act.

	o
	Such
Note is being transferred to a non-U.S. Person in an offshore transaction in compliance with Rule 904 of
Regulation S under the Securities Act (or any successor thereto). 

        The
Transferor acknowledges and agrees that, if the transferee will hold any such Notes in the form of beneficial interests in a global Note which is a "restricted security" within the
meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to (i) Rule 144A under the Securities Act and such transferee must be a "qualified
institutional buyer" (as defined in Rule 144A) or (ii) Regulation S under the Securities Act. 

	Date:	 	 
	 	 
 (Insert Name of Transferor)

	(4)
	This
certificate should only be included if this Security is a Restricted Security. 

A-1-15

   EXHIBIT A-2

[FORM OF FACE OF SECURITY]  

        [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF 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. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR
ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.](4) 

        [THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND
THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.](5) 

	(4)
	These
paragraphs should be included only if the Security is a Global Security.

	(5)
	These
paragraphs to be included only if the Security is a Restricted Security. 

A-2-1

 

        THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT,
(III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE
IN ANY HEDGING TRANSACTIONS WITH REGARD TO THIS SECURITY EXCEPT AS PERMITTED UNDER THE SECURITIES ACT.](2) 

        [THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND,
BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.](2) 

A-2-2

 
ADC TELECOMMUNICATIONS, INC.  

	CUSIP: 000886AA9	 	R-1

FLOATING RATE CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2013 

        ADC
Telecommunications, Inc., a Delaware corporation (the "Company", which term shall include any successor corporation under the Indenture referred to on the reverse hereof),
promises to pay
to                                         
                   , or registered assigns, the principal sum
of                        Dollars
($                        ) on June 15, 2013 [or such greater or
lesser amount as is indicated on the Schedule of Exchanges of Notes on the other side of this Note](3) and to pay interest thereon as provided on the other side of this Note. 

        Interest
Payment Dates: June 15 and December 15, beginning December 15, 2003. 

        Record
Dates: June 1 and December 1 

        This
Note is convertible as specified on the other side of this Note. Additional provisions of this Note are set forth on the other side of this Note. 

SIGNATURE PAGE FOLLOWS 

	(3)
	This
phrase should be included only if the Security is a global Security. 

A-2-3

 

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

	 	 	 	 	ADC Telecommunications, Inc.
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Name:

Title:
	

Attest:	
 	

 	
 	

 	
 	

 
	

 Name:

Title:	
 	

 	
 	

 
	

Dated:	
 	

 	
 	

 

A-2-4

 

	Trustee's Certificate of Authentication: This is one of the Securities referred to in the within-mentioned Indenture.	 	 	 	 
	
U.S. Bank National Association,

as Trustee	
 	

 	
 	

 
	

 Authorized Signatory	
 	

 	
 	

 
	

By:	
 	

 	
 	

 

A-2-5

   [FORM OF REVERSE SIDE OF SECURITY]  

ADC TELECOMMUNICATIONS, INC.

FLOATING RATE CONVERTIBLE SUBORDINATED NOTES DUE JUNE 15, 2013  

	1.
	INTEREST 

        The
Company shall pay interest on this Note semiannually in arrears at the rate specified below on June 15 and December 15, each an interest payment date, commencing on
December 15, 2003. Interest shall accrue from and including June 4, 2003 or the most recent interest date to which interest has been paid or duly provided for. Interest on this Note will
be computed on the basis of a 360-day year using the actual number of days elapsed from and including an interest payment date to but excluding the next succeeding interest payment date. 

        The
Company shall, (in immediately available funds) to the fullest extent permitted by law, pay interest on overdue principal (including premium, if any) and overdue installments of
interest from the original due date to the date paid, at the rate applicable to this Note plus 2% per annum, which interest shall be payable on demand. 

        All
references in the Indenture and this Note to interest shall be deemed to include a reference to additional interest if payable pursuant to the Registration Rights Agreement dated as
of June 4, 2003 with respect to the Notes. If additional interest is payable on this Note as contemplated under the Registration Rights Agreement, it shall be payable on each interest payment
date and at maturity to the record holder entitled to interest on such date. 

        The
interest so payable and punctually paid or duly provided for on any interest payment date will be paid to the Person in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on the June 1 or December 1 preceding such interest payment date (the "Record Date") except as provided in the Indenture. Payment of the principal
of (and premium, if any) and interest on this Note will be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts and as otherwise provided in the Indenture. 

        The
interest rate on this Note for the period from June 4, 2003 to December 15, 2003 will be 1.5625%. The Calculation Agent will reset the interest rate on each interest
payment date, each an "interest reset date," commencing December 15, 2003. The second London business day preceding an interest reset date will be the "LIBOR determination date" for that
interest reset date. To reset the interest rate, the Calculation Agent will determine 6-month LIBOR on the LIBOR determination date and then add 0.375% to it. The interest rate in effect
on each day that is not an interest reset date will be the interest rate determined as of the LIBOR determination date pertaining to the immediately preceding interest reset date. The interest rate in
effect on any day that is an interest reset date will be the interest rate determined as of the interest determination date pertaining to that interest reset date. 

        "6-month
LIBOR" means: 

	a)
	the
rate for six-month deposits in United States dollars commencing on the related interest payment date, that appears on the Moneyline Telerate Page 3750 as of
11:00 a.m., London time, on the LIBOR determination date; or

	b)
	if
no rate appears on the particular LIBOR determination date on the Moneyline Telerate Page 3750, the rate calculated by the calculation agent as the arithmetic mean (rounded, if
necessary, to the nearest one thousandth of a percentage point, with five one-ten thousandths of a percentage point rounded upwards) of at least two offered quotations obtained by the
calculation agent after requesting the principal London offices of each of four major reference banks in the London interbank market to provide the calculation agent with its offered 

A-2-6

 

quotation
for deposits in United States dollars for the period of six months, commencing on the related interest payment date, to prime banks in the London interbank market at approximately
11:00 a.m., London time, on that LIBOR determination date and in a principal amount that is representative for a single transaction in United States dollars in that market at that time; or 

	c)
	if
fewer than two offered quotations referred to in clause (b) are provided as requested, the rate calculated by the calculation agent as the arithmetic mean (rounded, if
necessary, to the nearest one thousandth of a percentage point, with five one-ten thousandths of a percentage point rounded upwards) of the rates quoted at approximately 11:00 a.m.,
New York time, on the particular LIBOR determination date by three major banks in The City of New York selected by the calculation agent for loans in United States dollars to leading European banks
for a period of six months and in a principal amount that is representative for a single transaction in United States dollars in that market at that time; or

	d)
	if
the banks so selected by the calculation agent are not quoting as mentioned in clause (c), 6-month LIBOR in effect on the preceding LIBOR determination date
(1.5625% per annum in the case of the reset on December 15, 2003). 

        "Moneyline
Telerate Page 3750" means the display on Moneyline Telerate (or any successor service) on such page (or any other page as may replace such page on such service) for the
purpose of displaying the London interbank rates of major banks for United States dollars. 

        "London
banking day" means a day on which commercial banks are open for business, including dealings in United States dollars, in London. 

        The
Calculation Agent shall be U.S. Bank National Association, or such other Person as the Company shall from time to time designate. 

	2.
	METHOD
OF PAYMENT 

        The
Holder must surrender this Note to a Paying Agent to collect payment of principal at maturity. The Company will make any payments of interest at maturity to the person to whom the
principal is paid. On presentation and surrender of the certificated Note, the Company will pay principal and interest in money of the United States that at the time of payment is legal tender for
payment of public and private debts. The Company will make any payments of interest on any interest payment date other than the date of maturity by check mailed to the address of the record date
registered holder as it appears in the security register; provided, however, that a Holder with an
aggregate principal amount in excess of $2,000,000 will be paid by wire transfer in immediately available funds at the election of such Holder if such Holder has provided wire transfer instructions in
writing to the Trustee not less than 10 Business Days prior to the interest payment date. Any wire transfer instructions received by the trustee will remain in effect until revoked by the registered
holder. Notwithstanding the foregoing, so long as this Note is registered in the name of a Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately available funds
to the account of the Depositary or its nominee. 

	3.
	PAYING
AGENT, REGISTRAR AND CONVERSION AGENT 

        Initially,
U.S. Bank National Association (the "Trustee", which term shall include any successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar
and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent without notice to the Holder. The Company or any of its Subsidiaries may, subject to certain limitations
set forth in the Indenture, act as Paying Agent or Registrar. 

A-2-7

 

	4.
	INDENTURE,
LIMITATIONS 

        This
Note is one of a duly authorized issue of Securities of the Company designated as its Floating Rate Convertible Subordinated Notes Due June 15, 2013 (the "Notes"), issued
under an Indenture dated as of June 4, 2003 (together with any supplemental indentures thereto, the "Indenture"), between the Company and the Trustee. The terms of this Note include those
stated in the Indenture and those required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture. This Note is subject
to all such terms, and the Holder of this Note is referred to the Indenture and said Act for a statement of them. Capitalized terms used and not defined herein have the meanings assigned to such terms
in the Indenture. 

        The
Notes are subordinated unsecured obligations of the Company limited to $175,000,000 aggregate principal amount (or $200,000,000 if the Initial Purchasers exercise their option to
purchase additional Notes). The Indenture does not limit other debt of the Company, secured or unsecured, including Senior Indebtedness. 

	5.
	PURCHASE
OF NOTES AT OPTION OF HOLDER UPON A CHANGE IN CONTROL 

        At
the option of the Holder and subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase all or any part specified by the Holder (so long as
the principal amount of such part is $1,000 or an integral multiple of $1,000 in excess thereof) of the Notes held by
such Holder on the date that is 30 Business Days after the occurrence of a Change in Control, at a purchase price equal to 100% of the principal amount thereof together with accrued interest and
Additional Interest, if any, up to, but excluding, the Change in Control Purchase Date. The Holder shall have the right to withdraw any Change in Control Purchase Notice (in whole or in a portion
thereof that is $1,000 or an integral multiple of $1,000 in excess thereof) at any time prior to the close of business on the Business Day next preceding the Change in Control Purchase Date by
delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the Indenture. 

        The
Company may pay the purchase price in cash or certain securities, as set forth in the Indenture. 

	6.
	CONVERSION 

        A
Holder of a Note may convert the principal amount of such Note (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof) into shares of Common Stock
at any time prior to the close of business on the Final Maturity Date; provided, however, that if the
Note is subject to redemption or purchase upon a Change in Control, the conversion right will terminate at the close of business on the Business Day immediately preceding the Redemption Date or Change
in Control Purchase Date for such Note or such earlier date as the Holder presents such Note for purchase (unless the Company shall default in making the Redemption Price or Change in Control Purchase
Price, when due, in which case the conversion right shall terminate at the close of business on the date such default is cured and such Note is purchased). 

        The
initial Conversion Price is $4.013 per share, subject to adjustment under certain circumstances as provided in the Indenture. The number of shares of Common Stock issuable upon
conversion of a Note is determined by dividing the principal amount of the Note or portion thereof converted by the Conversion Price in effect on the Conversion Date. No fractional shares will be
issued upon conversion; in lieu thereof, an amount will be paid in cash based upon the Closing Price (as defined in the Indenture) of the Common Stock on the Trading Day immediately prior to the
Conversion Date. 

        To
convert a Note, a Holder must (a) complete and manually sign the conversion notice set forth below and deliver such notice to a Conversion Agent, (b) surrender the Note
to a Conversion Agent, (c) furnish appropriate endorsements and transfer documents if required by a Registrar or a Conversion Agent, and (d) pay any transfer or similar tax, if required.
Notes so surrendered for 

A-2-8

 

conversion
(in whole or in part) during the period from the close of business on any regular record date to the opening of business on the next succeeding interest payment date, if any, shall also be
accompanied by payment in funds acceptable to the Company of an amount equal to the interest payable on such interest payment date on the principal amount of such Note then being converted, and such
interest shall be payable to such registered Holder notwithstanding the conversion of such Note, subject to the provisions of this Indenture relating to the payment of defaulted interest, if any, by
the Company in each case to the extent provided in the Indenture, including Section 4.2 thereof. If the Company defaults in the payment of interest payable on such interest payment date, if
any, the Company shall promptly repay such funds to such Holder. A Holder may convert a portion of a Note equal to $1,000 or any integral multiple thereof. 

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

	7.
	SUBORDINATION

        The
indebtedness evidenced by the Notes is, to the extent and in the manner provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all
Senior Indebtedness of the Company (including any interest accruing subsequent to the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowed as a claim in any such proceeding). Any Holder by accepting this Note agrees to and shall be bound by such subordination provisions and authorizes the Trustee to give them effect.
In addition to all other rights of Senior Indebtedness described in the Indenture, the Senior Indebtedness shall continue to be Senior Indebtedness and entitled to the benefits of the subordination
provisions irrespective of any amendment, modification or waiver of any terms of any instrument relating to the Senior Indebtedness or any extension or renewal of the Senior Indebtedness. 

	8.
	DENOMINATIONS,
TRANSFER, EXCHANGE, CANCELLATION 

        The
Notes are in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000. A Holder may register the transfer of or exchange Notes 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 or other governmental charges that may be imposed
in relation thereto by law or permitted by the Indenture. 

        All
Notes surrendered for payment, registration of transfer or exchange or conversion will, if surrendered to the Company or any of its other Agents with respect to the Notes, be
delivered to the Trustee. The Trustee will promptly cancel all Notes delivered to it. No Notes will be authenticated in exchange for any Notes cancelled as provided in the Indenture. 

	9.
	PERSONS
DEEMED OWNERS 

        The
Holder of a Note may be treated as the owner of it for all purposes. 

	10.
	UNCLAIMED
MONEY 

        If
money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company at its written request, subject to
applicable unclaimed property law. After that, Holders entitled to money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another
person. 

	11.
	AMENDMENT,
SUPPLEMENT AND WAIVER 

        Subject
to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the Notes
then 

A-2-9

 

outstanding,
and an existing default or Event of Default and its consequence or compliance with any provision of the Indenture or the Notes may be waived in a particular instance with the consent of
the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without the consent of or notice to any Holder, the Company and the Trustee may amend or supplement the Indenture
or the Notes to, among other things, cure any ambiguity, defect or inconsistency or make any other change that does not adversely affect the rights of any Holder. 

	12.
	SUCCESSOR
ENTITY 

        When
a successor corporation assumes all the obligations of its predecessor under the Notes and the Indenture in accordance with the terms and conditions of the Indenture, the
predecessor corporation (except in certain circumstances specified in the Indenture) be released from those obligations. 

	13.
	DEFAULTS
AND REMEDIES 

        Under
the Indenture, an Event of Default includes: (i) default for 30 days in payment of interest or Additional Interest, if any, on any Notes; (ii) default in
payment of any principal (including, without limitation, any premium) on the Notes when due; (iii) failure by the Company for 60 days after notice to it to comply with any of its other
covenants contained in the Indenture or the Notes; (iv) default in the payment of certain indebtedness of the Company or a Significant Subsidiary; (v) certain events of bankruptcy,
insolvency or reorganization of the Company or any Significant Subsidiary and (vi) certain other events described in the Indenture. If an Event of Default (other than as a result of certain
events of bankruptcy, insolvency or reorganization of the Company) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding may
declare all unpaid principal to the date of acceleration on the Notes then outstanding to be due and payable immediately, all as and to the extent provided in the Indenture. If an Event of Default
occurs as a result of certain events of bankruptcy, insolvency or reorganization of the Company, unpaid principal of the Notes then outstanding shall become due and payable immediately without any
declaration or other act on the part of the Trustee or any Holder, all as and to the extent provided in the Indenture. Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a majority in aggregate principal amount of
the Notes then outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of
principal or interest) if it determines
that withholding notice is in their interests. The Company is required to file periodic reports with the Trustee as to the absence of default. 

	14.
	REDEMPTION
AT THE OPTION OF THE COMPANY. 

        No
sinking fund is provided for the Notes. Prior to June 23, 2008, the Notes will not be redeemable. Beginning on that date, the Company may redeem the Notes as a whole at any
time, or in part from time to time, at the following redemption prices, expressed as a percentage of the principal amount of the Notes plus accrued and unpaid interest to, but excluding, the
Redemption Date: 

	Redemption Period
 
	 	Price

Redemption
	 
	Beginning June 23, 2008 and ending on June 14, 2009	 	100.98	%
	

Beginning June 15, 2009 and ending on June 14, 2010	
 	

100.82	
%
	

Beginning June 15, 2010 and ending on June 14, 2011	
 	

100.66	
%
	

Beginning June 15, 2011 and thereafter	
 	

100.5	
%

A-2-10

 

        Notice
of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of Notes to be redeemed at the Holder's registered
address. If money sufficient to pay the redemption price plus accrued and unpaid interest to, but excluding, the redemption date of all Notes (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 Notes or portions thereof. Notes in denominations larger than $1,000 of principal amount may be redeemed in part but only in integral multiples of $1,000 of principal amount. 

	15.
	TRUSTEE
DEALINGS WITH THE COMPANY 

        U.S.
Bank National Association, the Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from and perform services for the Company or
an Affiliate of the Company, and may otherwise deal with the Company or an Affiliate of the Company, as if it were not the Trustee. 

	16.
	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 Notes or the Indenture nor for any claim
based on, in respect of or by reason of such obligations or their creation. The Holder of this Note by accepting this Note waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of this Note. 

	17.
	AUTHENTICATION 

        This
Note shall not be valid until the Trustee or an authenticating agent manually signs the certificate of authentication on the other side of this Note. 

	18.
	ABBREVIATIONS
AND DEFINITIONS 

        Customary
abbreviations may be used in the name of the Holder 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 UGMA (= Uniform Gifts to Minors Act). 

        All
terms defined in the Indenture and used in this Note but not specifically defined herein are defined in the Indenture and are used herein as so defined. 

	19.
	INDENTURE
TO CONTROL; GOVERNING LAW 

        In
the case of any conflict between the provisions of this Note and the Indenture, the provisions of the Indenture shall control. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to principles of conflicts of law. 

        The
Company will furnish to any Holder, upon written request and without charge, a copy of the Indenture. Requests may be made to: ADC Telecommunications, Inc., 13625 Technology
Drive, Eden Prairie, MN 55440, [phone], Attention: Investor Relations. 

A-2-11

 
ASSIGNMENT FORM  

        To assign this Note, fill in the form below: 

        I
or we assign and transfer this Note to 

	
 (Insert assignee's soc. sec. or tax I.D. no.)
	

	

	

	

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

and
irrevocably appoint 

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

	 	 	 	 	Your Signature:
	

Date:	
 	

 	
 	

 (Sign exactly as your name appears on the

other side of this Note)
	

*Signature guaranteed by:	
 	

 
	

By:	
 	

	
 	

 

	*
	The
signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the
Trustee. 

A-2-12

 
CONVERSION NOTICE  

        To convert this Note into Common Stock of the Company, check the box:    o 

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

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

	
 (Insert assignee's soc. sec. or tax I.D. no.)
	

	

	

	

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

   

 

	 	 	 	 	Your Signature:
	

Date:	
 	

 	
 	

 (Sign exactly as your name appears on the

other side of this Note)
	

*Signature guaranteed by:	
 	

 
	

By:	
 	

	
 	

 

	*
	The
signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the
Trustee. 

A-2-13

   OPTION TO ELECT REPURCHASE

UPON A CHANGE IN CONTROL  

	To:
	ADC
Telecommunications, Inc. 

        The
undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from ADC Telecommunications, Inc. (the "Company") as to the occurrence of a
Change in Control with respect to the Company and requests and instructs the Company to purchase the entire principal amount of this Security, or the portion thereof (which is $1,000 or an integral
multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Security at the Change in Control Purchase Price, together with accrued interest, if any, to, but
excluding, such date, to the registered Holder hereof. 

	Dated:	 	 
	 	 	 	 

	 	 	 	 	 	 	 

	 	 	 	 	 	 	Signature(s) must be guaranteed by a qualified guarantor institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934.
	 	 	 	 	 	 	 
 Signature Guaranty
	

Principal amount to be purchased

(in an integral multiple of $1,000, if less than all):	
 	

 
	 
	 	 

NOTICE:
The signature to the foregoing Election must correspond to the Name as written upon the face of this Security in every particular, without alteration or any change whatsoever. 

A-2-14

 
SCHEDULE OF EXCHANGES OF NOTES(3)  

        The following exchanges, repurchases or conversions of a part of this global Note have been made: 

	Principal Amount

of this Global Note

Following Such

Decrease Date

of Exchange (or Increase)
	 	Authorized

Signatory of

Notes

Custodian
	 	Amount of Decrease in

Principal Amount

of this Global Note
	 	Amount of Increase in

Principal Amount

of this Global Note

	 	 	 	 	 	 	 

	(3)
	This
schedule should be included only if the Security is a global Security. 

A-2-15

 
CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES(4)  

	Re:
	Floating
Rate Convertible Subordinated Notes Due June 15, 2013 (the "Notes") of ADC Telecommunications, Inc. 

        This
certificate relates to $            principal amount of Notes owned in (check applicable box) 

        o book-entry
or o definitive form by                        (the
"Transferor"). 

        The
Transferor has requested a Registrar or the Trustee to exchange or register the transfer of such Notes. 

        In
connection with such request and in respect of each such Note, the Transferor does hereby certify that the Transferor is familiar with transfer restrictions relating to the Notes as
provided in Section 2.12 of the Indenture dated as of June 4, 2003 between ADC Telecommunications, Inc. and U.S. Bank National Association, as trustee (the "Indenture"), and the
transfer of such Securities is in accordance with any applicable securities laws of any state and is being made pursuant to an effective registration statement under the Securities Act of 1933, as
amended (the "Securities Act") (check applicable box) or the transfer or exchange, as the case may be, of such Note does not require registration under the Securities Act because (check applicable
box): 

	o
	Such
Note is being transferred pursuant to an effective registration statement under the Securities Act.

	o
	Such
Note is being acquired for the Transferor's own account, without transfer.

	o
	Such
Note is being transferred to the Company.

	o
	Such
Note is being transferred to a person the Transferor reasonably believes is a "qualified institutional buyer" (as defined in
Rule 144A or any successor provision thereto ("Rule 144A") under the Securities Act) that is purchasing for its own account or for the account of a "qualified institutional buyer", in
each case to whom notice has been given that the transfer is being made in reliance on such Rule 144A, and in each case in reliance on Rule 144A.

	o
	Such
Note is being transferred pursuant to and in compliance with an exemption from the registration requirements under the Securities Act
in accordance with Rule 144 (or any successor thereto) ("Rule 144") under the Securities Act.

	o
	Such
Note is being transferred to a non-U.S. Person in an offshore transaction in compliance with Rule 904 of
Regulation S under the Securities Act (or any successor thereto). 

        The
Transferor acknowledges and agrees that, if the transferee will hold any such Notes in the form of beneficial interests in a global Note which is a "restricted security" within the
meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to (i) Rule 144A under the Securities Act and such transferee must be a "qualified
institutional buyer" (as defined in Rule 144A) or (ii) Regulation S under the Securities Act. 

	Date:	 	 
	 	 
 (Insert Name of Transferor)

	(4)
	This
certificate should only be included if this Security is a Transfer Restricted Security. 

A-2-16

QuickLinks

Exhibit 4.1

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