Document:

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                                                                 EXHIBIT 4(c)(i)

                         TEXAS INSTRUMENTS INCORPORATED,
                                  as Guarantor

                      TEXAS INSTRUMENTS TUCSON CORPORATION,
                   (formerly known as Burr-Brown Corporation)
                                    as Issuer

                                       To

                    UNITED STATES TRUST COMPANY OF NEW YORK,
                                   as Trustee

                                   ----------

                               FIRST SUPPLEMENTAL
                                    INDENTURE

                                   Dated as of

                                August 24, 2000

                                   ----------

                 4 1/4% CONVERTIBLE SUBORDINATED NOTES DUE 2007

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                          FIRST SUPPLEMENTAL INDENTURE

         FIRST SUPPLEMENTAL INDENTURE, dated as of August 24, 2000 (the "First
Supplemental Indenture"), among Texas Instruments Tucson Corporation, a Delaware
corporation formerly known as Burr-Brown Corporation (hereinafter called the
"Company"), having its principal office at 6730 South Tucson Boulevard, Tucson,
Arizona 85706, Texas Instruments Incorporated, a Delaware corporation
("Parent"), having its principal office at 12500 TI Boulevard, P.O. Box 660199,
Dallas, Texas 75266-0199, and United States Trust Company of New York, a New
York corporation, as trustee hereunder (hereinafter called the "Trustee"),
having its principal office at 114 W. 47th Street, New York, New York
10036-1532.

                              W I T N E S S E T H:

         WHEREAS, the Company has issued 4 1/4% Convertible Subordinated Notes
due 2007 (the "Notes") in the aggregate principal amount of $250,000,000 under
and pursuant to the Indenture, dated as of February 24, 2000, between the
Company and the Trustee (the "Indenture");

         WHEREAS, the Company, Parent and Burma Acquisition Corp., a Delaware
corporation and wholly owned subsidiary of Parent ("Merger Sub"), have entered
into an Agreement and Plan of Merger, dated as of June 21, 2000, pursuant to
which, on the date hereof, (a) Merger Sub merged (the "Merger") with and into
the Company and (b) each share of common stock, par value $.01 per share, of the
Company ("Company Common Stock") was converted into the right to receive 1.3
shares of common stock, par value $1.00 per share, of Parent ("Common Stock");

         WHEREAS, Articles Twelve and Fifteen of the Indenture provide that,
among other things, if there shall occur any consolidation, merger or
combination of the Company with another Person as a result of which holders of
Company Common Stock shall be entitled to receive stock, other securities or
other property or assets (including cash) with respect to or in exchange for
such Company Common Stock, then the Company or the corporation whose securities
are receivable by a holder of Company Common Stock pursuant to the
consolidation, merger or combination shall execute with the Trustee a
supplemental indenture providing that the Notes shall be convertible into the
kind and amount of shares of stock, other securities or other property or assets
(including cash) receivable upon such consolidation, merger or combination by a
holder of a number of shares of Company Common Stock issuable upon conversion of
such Notes immediately prior to such consolidation, merger or combination;

         WHEREAS, Parent, by executing this First Supplemental Indenture, is
further hereby fully and unconditionally guaranteeing the Company's obligations
under this Indenture and the Notes;

         WHEREAS, the execution and delivery of this First Supplemental
Indenture has been authorized at a meeting of the Board of Directors of Parent
and by resolutions adopted by the Board of Directors of Company; and

         WHEREAS, all conditions and requirements necessary to make this First
Supplemental Indenture a valid, binding and legal instrument in accordance with
its terms have been performed

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and fulfilled by the parties hereto and the execution and delivery thereof have
been in all respects duly authorized by the parties hereto.

         NOW, THEREFORE, in consideration of the above premises, each party
agrees, for the benefit of the others and for the equal and ratable benefit of
the holders of the Notes, as follows:

                                   ARTICLE I.

                           AUTHORIZATION; DEFINITIONS

         Section 1.1. First Supplemental Indenture. This First Supplemental
Indenture is supplemental to, and is entered into in accordance with, Articles
Eleven, Twelve and Fifteen of the Indenture, and except as modified, amended and
supplemented by this First Supplemental Indenture, the provisions of the
Indenture are in all respects ratified and confirmed and shall remain in full
force and effect.

         Section 1.2. Definitions. Except as expressly provided in Section 2.1
of this First Supplemental Indenture and unless the context shall otherwise
require, all terms which are defined in Section 1.1 of the Indenture shall have
the same meanings, respectively, in this First Supplemental Indenture as such
terms are given in said Section 1.1 of the Indenture.

                                  ARTICLE II.

                           AMENDMENTS TO THE INDENTURE

         Section 2.1. Amendments to Section 1.1 of the Indenture. (a) Section
1.1 of the Indenture is hereby amended by inserting the following definitions:

         "Parent" means Texas Instruments Incorporated, a Delaware corporation,
and, subject to the provisions of Article Twelve, shall include its successors
and assigns.

         "Parent Board of Directors" means the Board of Directors of Parent or a
committee of such Board duly authorized to act for it hereunder.

         "Parent Guarantee" means the guarantee of Parent set forth in Article
Seventeen of this Indenture.

         "Parent Senior Indebtedness" means the principal of, premium, if any,
interest (including all interest accruing subsequent to the commencement of any
bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowable 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 Parent, whether outstanding on the
date of the First Supplemental Indenture or thereafter created, incurred,
assumed, guaranteed or in effect guaranteed by Parent (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 Parent Guarantee or expressly provides that such
Indebtedness is "Pari Passu" or "junior" to the

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Parent Guarantee. Notwithstanding the foregoing, the term Senior Indebtedness
shall not include any Indebtedness of Parent to any subsidiary of Parent, a
majority of the voting stock of which is owned, directly or indirectly, by
Parent. If any payment made to any holder of any Senior Indebtedness or its
Representative with respect to such Senior Indebtedness is rescinded or must
otherwise be returned by such holder or Representative upon the insolvency,
bankruptcy or reorganization of Parent or otherwise, the reinstated Indebtedness
of Parent arising as a result of such rescission or return shall constitute
Senior Indebtedness effective as of the date of such rescission or return.

         (b) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Board of Directors" with the following definition:

         "Company Board of Directors" means the Board of Directors of the
Company or a committee of such Board duly authorized to act for it hereunder.

         (c) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Common Stock" with the following definition:

         "Common Stock" means any stock of any class of Parent which has no
preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of Parent and
which is not subject to redemption by the Parent. Subject to the provisions of
Section 15.6, however, shares issuable on conversion of Notes shall include only
shares of the class designated as common stock of Parent at the date of this
Indenture (namely, the Common Stock, par value $1.00 per share) or shares of any
class or classes 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 Parent and which are not subject to redemption by Parent;
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 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.

         (d) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Company" with the following definition:

         "Company" means Texas Instruments Tucson Corporation, a Delaware
corporation formerly known as Burr-Brown Corporation, and, subject to the
provisions of Article Twelve, shall include its successors and assigns.

         (e) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Indebtedness" with the following definition:

         "Indebtedness" means, with respect to any Person, and without
duplication, (a) all indebtedness, obligations and other liabilities (contingent
or otherwise) of such Person for borrowed money (including obligations of such
Person in respect of overdrafts, foreign exchange contracts, currency exchange
agreements, interest rate protection agreements, and any loans or advances from
banks, whether or not evidenced by notes or similar instruments) or evidenced by
bonds, debentures, notes or similar instruments (whether or not the recourse of
the lender is to

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the whole of the assets of such Person or to only a portion thereof), other than
any account 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) in respect of leases of such Person required, in conformity with
generally accepted accounting principles, to be accounted for as capitalized
lease obligations on the balance sheet of such Person and all obligations and
other liabilities (contingent or otherwise) under any lease or related document
(including a purchase agreement) in connection with the lease of real property
which provides that such Person is contractually obligated to purchase or cause
a third party to purchase the leased property and thereby guarantee a minimum
residual value of the leased property to the lessor and the obligations of such
Person under such lease or related document to purchase or to cause a third
party to purchase such leased property; (d) all obligations of such Person
(contingent or otherwise) with respect to an interest rate or other swap, cap or
collar agreement or other similar instrument or agreement or foreign currency
hedge, exchange, purchase or similar instrument or agreement; (e) all direct or
indirect guaranties or similar agreements by such Person in respect of, and
obligations or liabilities (contingent or otherwise) 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 kind described
in clauses (a) through (d); (f) any indebtedness or other obligations described
in clauses (a) through (e) secured by any mortgage, pledge, lien or other
encumbrance existing on property which is owned or held by such Person,
regardless of whether the indebtedness or other obligation secured thereby shall
have been assumed by such Person; and (g) any and all deferrals, renewals,
extensions and refundings of, or amendments, modifications or supplements to,
any indebtedness, obligation or liability of the kind described in clauses (a)
through (f).

         (f) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Officers' Certificate" with the following definition:

         "Officers' Certificate", when used with respect to the Company or
Parent, means a certificate signed by both (a) the Chairman of the Board, the
Chief Executive Officer, the President or any Vice President (whether or not
designated by a number or numbers or word or words added before or after the
title "Vice President") and (b) the Treasurer or any Assistant Treasurer, the
Controller or any Assistant Controller, or the Secretary or any Assistant
Secretary of the Company or Parent.

         (g) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Opinion of Counsel" with the following definition:

         "Opinion of Counsel" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company or Parent, or other
counsel reasonably acceptable to the Trustee.

         (h) Section 1.1 of the Indenture is hereby amended by replacing the
definition of "Significant Subsidiary" with the following definition:

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         "Significant Subsidiary" means, as of any date of determination, a
Subsidiary of the Company or Parent, as applicable, if as of such date of
determination either (a) the assets of such subsidiary equal 10% of more of the
Company's or Parent's, as applicable, total consolidated assets or (b) the total
revenue of which represented 10% or more of the Company's or Parent's, as
applicable, consolidated total revenue for the most recently completed fiscal
year.

         Section 2.2. Amendment to Section 2.3 of the Indenture. Section 2.3 of
the Indenture is hereby amended and restated in its entirety as follows:

         Section 2.3 Date And Denomination Of Notes; Payments Of Interest. The
Notes shall be issuable in registered form without coupons in denominations of
$1,000 principal amount and integral multiples thereof. Every Note shall be
dated the date of its authentication and shall bear interest from the applicable
date in each case as specified on the face of the form of Note attached as
Exhibit A hereto. Interest on the Notes shall be computed on the basis of a
360-day year comprised of twelve (12) 30-day months.

         The Person in whose name any Note (or its Predecessor Note) is
registered on the Note register at the close of business on any record date with
respect to any interest payment date shall be entitled to receive the interest
payable on such interest payment date, except (i) that the interest payable upon
redemption (unless the date of redemption is an interest payment date) will be
payable to the Person to whom principal is payable and (ii) as set forth in the
next succeeding sentence. In the case of any Note (or portion thereof) that is
converted into Common Stock during the period from (but excluding) a record date
to (but excluding) the next succeeding interest payment date either (x) if such
Note (or portion thereof) has been called for redemption on a redemption date
which occurs during such period, or is to be redeemed in connection with a
Fundamental Change on a Repurchase Date (as defined in Section 3.5) that occurs
during such period, the Company shall not be required to pay interest on such
interest payment date in respect of any such Note (or portion thereof) except to
the extent required to be paid upon redemption of such Note or portion thereof
pursuant to Section 3.3 or 3.5 hereof or (y) if such Note (or portion thereof)
has not been called for redemption on a redemption date that occurs during such
period and is not to be redeemed in connection with a Fundamental Change on a
Repurchase Date that occurs during such period, such Note (or portion thereof)
that is submitted for conversion during such period shall be accompanied by
funds equal to the interest payable on such succeeding interest payment date on
the principal amount so converted, as provided in the penultimate paragraph of
Section 15.2 hereof. Interest shall be payable at the office of the Company
maintained by the Company for such purposes in the Borough of Manhattan, City of
New York, which shall initially be an office or agency of the Trustee and may,
as the Company shall specify to the paying agent in writing by each record date,
be paid either (i) by check mailed to the address of the Person entitled thereto
as it appears in the Note register (provided that the holder of Notes with an
aggregate principal amount in excess of $2,000,000 shall, at the written
election of such holder, be paid by wire transfer in immediately available
funds) or (ii) by transfer to an account maintained by such Person located in
the United States; provided, however, that payments to the Depositary will be
made by wire transfer of immediately available funds to the account of the
Depositary or its nominee. The term "record date" with respect to any interest
payment date shall mean the February 1 or August 1 preceding the relevant
February 15 or August 15, respectively.

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         Any interest on any Note which is payable, but is not punctually paid
or duly provided for, on any February 15 or August 15 (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Noteholder on the relevant
record date by virtue of his having been such Noteholder, and such Defaulted
Interest shall be paid by the Company or Parent, at their election in each case,
as provided in clause (1) or (2) below:

                    (1) The Company or Parent may elect to make payment of any
               Defaulted Interest to the Persons in whose names the Notes (or
               their respective Predecessor Notes) are registered at the close
               of business on a special record date for the payment of such
               Defaulted Interest, which shall be fixed in the following manner.
               The Company or Parent shall notify the Trustee in writing of the
               amount of Defaulted Interest to be paid on each Note and the date
               of the payment (which shall be not less than twenty-five (25)
               days after the receipt by the Trustee of such notice, unless the
               Trustee shall consent to an earlier date), and at the same time
               the Company or Parent shall deposit with the Trustee an amount of
               money equal to the aggregate amount to be paid in respect of such
               Defaulted Interest or shall make arrangements satisfactory to the
               Trustee for such deposit prior to the date of the proposed
               payment, such money when deposited to be held in trust for the
               benefit of the Person entitled to such Defaulted Interest as in
               this clause provided. Thereupon the Trustee shall fix a special
               record date for the payment of such Defaulted Interest which
               shall be not more than fifteen (15) days and not less than ten
               (10) days prior to the date of the proposed payment, and not less
               than ten (10) days after the receipt by the Trustee of the notice
               of the proposed payment, the Trustee shall promptly notify the
               Company and Parent of such special record date and, in the name
               and at the expense of the Company, shall cause notice of the
               proposed payment of such Defaulted Interest and the special
               record date therefor to be mailed, first-class postage prepaid,
               to each Noteholder at his address as it appears in the Note
               register, not less than ten (10) days prior to such special
               record date. Notice of the proposed payment of such Defaulted
               Interest and the special record date therefor having been so
               mailed, such Defaulted Interest shall be paid to the Persons in
               whose names the Notes (or their respective Predecessor Notes)
               were registered at the close of business on such special record
               date and shall no longer be payable pursuant to the following
               clause (2) of this Section 2.3.

                    (2) The Company or Parent may make payment of any Defaulted
               Interest in any other lawful manner not inconsistent with the
               requirements of any securities exchange or automated quotation
               system on which the Notes may be listed or designated for
               issuance, and upon such notice as may be required by such
               exchange or automated quotation system, if, after notice given by
               the Company or Parent to the Trustee of the proposed payment
               pursuant to this clause, such manner of payment shall be deemed
               practicable by the Trustee."

         Section 2.3. Amendment to Section 2.5 of the Indenture. Section 2.5(d)
and (e) of the Indenture are hereby amended and restated in its entirety as
follows:

               "(d) Every Note that bears or is required under this Section
          2.5(d) to bear the legend set forth in this Section 2.5(d) (together
          with any Common Stock issued upon

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          conversion of the Notes and required to bear the legend set forth in
          Section 2.5(e), collectively, the "Restricted Securities") shall be
          subject to the restrictions on transfer set forth in this Section
          2.5(d) (including those set forth in the legend set forth below)
          unless such restrictions on transfer shall be waived by written
          consent of the Company, and the holder of each such Restricted
          Security, by such Noteholder's acceptance thereof, agrees to be bound
          by all such restrictions on transfer. As used in Sections 2.5(d) and
          2.5(e), the term "transfer" encompasses any sale, pledge, loan,
          transfer or other disposition whatsoever of any Restricted Security.

         Until the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision), any
certificate evidencing such Note (and all securities issued in exchange therefor
or substitution thereof, other than Common Stock, if any, issued upon conversion
thereof, which shall bear the legend set forth in Section 2.5(e), if applicable)
shall bear a legend in substantially the following form, unless such Note has
been sold pursuant to a registration statement that has been declared effective
under the Securities Act (and which continues to be effective at the time of
such transfer), or unless otherwise agreed by the Company in writing, with
written notice thereof to the Trustee:

         THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED
STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH
IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS
DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT)
("INSTITUTIONAL ACCREDITED INVESTOR"); (2) AGREES THAT IT WILL NOT, PRIOR TO
EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE NOTE EVIDENCED
HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION),
RESELL OR OTHERWISE TRANSFER THE NOTE EVIDENCED HEREBY OR THE TEXAS INSTRUMENTS
INCORPORATED COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH NOTE EXCEPT (A) TO
TEXAS INSTRUMENTS INCORPORATED OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED
STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED
INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO UNITED STATES TRUST COMPANY
OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), A SIGNED LETTER
CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS
ON TRANSFER OF THE NOTE EVIDENCED HEREBY (THE FORM OF WHICH LETTER CAN BE
OBTAINED FROM SUCH TRUSTEE OR A SUCCESSOR TRUSTEE, AS APPLICABLE), (D) OUTSIDE
THE UNITED STATES IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (E)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH

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CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH
TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (2)(F) ABOVE), IT WILL
FURNISH TO UNITED STATES TRUST COMPANY OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR
TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THE TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (4) AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THE NOTE EVIDENCED HEREBY IS TRANSFERRED (EXCEPT
TRANSFERS PURSUANT TO CLAUSES 2(E) OR 2(F) ABOVE, OR PURSUANT TO RULE 144(K)) A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY
TRANSFER OF THE NOTE EVIDENCED HEREBY PRIOR TO THE EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO SALES OF THE NOTE EVIDENCED HEREBY UNDER RULE 144(K) UNDER
THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH
TRANSFER AND SUBMIT THIS CERTIFICATE TO UNITED STATES TRUST COMPANY OF NEW YORK,
AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE PROPOSED TRANSFEREE
IS AN INSTITUTIONAL ACCREDITED INVESTOR OR IS A PURCHASER WHO IS NOT A U.S.
PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO UNITED STATES TRUST
COMPANY OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS SUCH TRUSTEE MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER
OF THE TRANSFER OF THE NOTE EVIDENCED HEREBY PURSUANT TO CLAUSES 2(E) OR (2)(F)
ABOVE, OR UPON ANY TRANSFER OF THE NOTE EVIDENCED HEREBY UNDER RULE 144(K) UNDER
THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). AS USED HEREIN, THE TERMS
"UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY
REGULATION S UNDER THE SECURITIES ACT.

         Any Note (or security issued in exchange or substitution therefor) as
to which such restrictions on transfer shall have expired in accordance with
their terms or as to which conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of such Note for exchange
to the Note registrar in accordance with the provisions of this Section 2.5, be
exchanged for a new Note or Notes, of like tenor and aggregate principal amount,
which shall not bear the restrictive legend required by this Section 2.5(d).

         Notwithstanding any other provisions of this Indenture (other than the
provisions set forth in the second paragraph of Section 2.5(c) and in this
Section 2.5(d)), a Global Note may not be transferred as a whole or in part
except 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.

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         The Depositary shall be a clearing agency registered under the Exchange
Act. The Company initially appoints The Depository Trust Company to act as
Depositary with respect to the Notes in global form. Initially, the Global Note
shall be issued to the Depositary, registered in the name of Cede & Co., as the
nominee of the Depositary, and deposited with the Custodian for Cede & Co.

         If at any time the Depositary for a Global Note notifies the Company
that it is unwilling or unable to continue as Depositary for such Note, the
Company may appoint a successor Depositary with respect to such Note. If a
successor Depositary is not appointed by the Company within ninety (90) days
after the Company receives such notice, the Company will execute, and the
Trustee, upon receipt of an Officers' Certificate for the authentication and
delivery of Notes, will authenticate and deliver, Notes in certificated form, in
aggregate principal amount equal to the principal amount of such Global Note, in
exchange for such Global Note.

         If a Note in certificated form is issued in exchange for any portion of
a Global Note after the close of business at the office or agency where such
exchange occurs on any record date and before the opening of business at such
office or agency on the next succeeding interest payment date, interest will not
be payable on such interest payment date in respect of such certificated Note,
but will be payable on such interest payment date, subject to the provisions of
Section 2.3, only to the Person to whom interest in respect of such portion of
such Global Note is payable in accordance with the provisions of this Indenture.

         Notes in certificated form issued in exchange for all or a part of a
Global Note pursuant to this Section 2.5 shall be registered in such names and
in such authorized denominations as the Depositary, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the
Trustee. Upon execution and authentication, the Trustee shall deliver such Notes
in certificated form to the Persons in whose names such Notes in certificated
form are so registered.

         At such time as all interests in a Global Note have been redeemed,
converted, canceled, exchanged for Notes in certificated form, or transferred to
a transferee who receives Notes in certificated form therefor, such Global Note
shall, upon receipt thereof, be canceled by the Trustee in accordance with
standing procedures and instructions existing between the Depositary and the
Custodian. At any time prior to such cancellation, if any interest in a Global
Note is exchanged for Notes in certificated form, redeemed, converted,
repurchased or canceled, or transferred to a transferee who receives Notes in
certificated form therefor or any Note in certificated form is exchanged or
transferred for part of a Global Note, the principal amount of such Global Note
shall, in accordance with the standing procedures and instructions existing
between the Depositary and the Custodian, be appropriately reduced or increased,
as the case may be, and an endorsement shall be made on such Global Note, by the
Trustee or the Custodian, at the direction of the Trustee, to reflect such
reduction or increase.

         (e) Until the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor provision),
any stock certificate representing Common Stock issued upon conversion of any
Note shall bear a legend in substantially the following form, unless such Common
Stock has been sold pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be effective at the
time of such transfer) or such Common Stock has been issued upon conversion of
Notes that

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have been transferred pursuant to a registration statement that has been
declared effective under the Securities Act, or unless otherwise agreed by
Parent in writing with written notice thereof to the transfer agent:

         THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF AGREES THAT, UNTIL THE
EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE COMMON STOCK
EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), (1) IT WILL NOT RESELL OR OTHERWISE TRANSFER THE COMMON STOCK
EVIDENCED HEREBY EXCEPT (A) TO TEXAS INSTRUMENTS INCORPORATED OR ANY SUBSIDIARY
THEREOF, (B) INSIDE THE UNITED STATES TO A "QUALIFIED INSTITUTIONAL BUYER" (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A, (C)
INSIDE THE UNITED STATES TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED
IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) THAT PRIOR TO SUCH
TRANSFER, FURNISHES TO COMPUTERSHARE INVESTOR SERVICES, LLC, AS TRANSFER AGENT
(OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THE COMMON STOCK EVIDENCED HEREBY (THE FORM OF WHICH LETTER CAN BE OBTAINED
FROM SUCH TRANSFER AGENT OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), (D)
OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES LAWS
(E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE), OR (F) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER); (2) PRIOR TO SUCH TRANSFER (OTHER THAN
A TRANSFER PURSUANT TO CLAUSE (1)(F) ABOVE), IT WILL FURNISH TO COMPUTERSHARE
INVESTOR SERVICES, LLC, AS TRANSFER AGENT (OR A SUCCESSOR TRANSFER AGENT, AS
APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING
MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (3) IT WILL DELIVER TO EACH
PERSON TO WHOM THE COMMON STOCK EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A
TRANSFER PURSUANT TO CLAUSES 1(E) OR 1(F) ABOVE, OR PURSUANT TO RULE 144(K)) A
NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFEREE IS
AN INSTITUTIONAL ACCREDITED INVESTOR OR IS A PURCHASER WHO IS NOT A U.S. PERSON,
THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO COMPUTERSHARE INVESTOR
SERVICES, LLC (OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS IT MAY REASONABLY REQUIRE
TO

                                       10
<PAGE>   12

CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN
A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THE COMMON
STOCK EVIDENCED HEREBY PURSUANT TO CLAUSES (1)(E) OR 1(F) ABOVE, OR UPON ANY
TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY AFTER THE EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THE SECURITY EVIDENCED HEREBY UNDER RULE
144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). AS USED HEREIN,
THE TERMS "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY
REGULATION S UNDER THE SECURITIES ACT.

         Any such Common Stock as to which such restrictions on transfer shall
have expired in accordance with their terms or as to which the conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon
surrender of the certificates representing such shares of Common Stock for
exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of
shares of Common Stock, which shall not bear the restrictive legend required by
this Section 2.5(e)."

         Section 2.4. Amendment to Section 3.2 of the Indenture. The first
paragraph of Section 3.2 of the Indenture is hereby amended and restated in its
entirety as follows:

         "Section 3.2 Notice Of Redemptions; Selection Of Notes. In case the
Company shall desire to exercise the right to redeem all or, as the case may be,
any part of the Notes pursuant to Section 3.1, it shall fix a date for
redemption and it or, at its written request received by the Trustee not fewer
than forty-five (45) days prior (or such shorter period of time as may be
acceptable to the Trustee) to the date fixed for redemption, the Trustee in the
name of and at the expense of the Company, shall mail or cause to be mailed in
the manner as hereinafter provided a notice of such redemption not fewer than
thirty (30) nor more than sixty (60) days prior to the date fixed for redemption
to the holders of Notes so to be redeemed as a whole or in part at their last
addresses as the same appear on the Note register; provided, however, that if
the Company shall give such notice, it shall also give written notice, and
written notice of the Notes to be redeemed, to the Trustee. Such mailing shall
be by first class mail. The notice if mailed in the manner herein provided shall
be conclusively presumed to have been duly given, whether or not the holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the holder of any Note designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the
redemption of any other Note. Concurrently with the mailing of any such notice
of redemption, the Company or Parent shall issue a press release announcing such
redemption, the form and content of which press release shall be determined by
the Company and Parent in their sole discretion. The failure to issue any such
press release or any defect therein shall not affect the validity of the
redemption notice or any of the proceedings for the redemption of any Note
called for redemption."

                                       11
<PAGE>   13

         Section 2.5. Amendment to Section 3.5 of the Indenture. Sections 3.5(b)
and (e) of the Indenture are hereby amended and restated in their entirety as
follows:

         "(b) On or before the tenth day after the occurrence of a Fundamental
Change, the Company or at its written request (which must be received by the
Trustee at least five (5) Business Days prior to the date the Trustee is
requested to give notice as described below, unless the Trustee shall agree in
writing to a shorter period), the Trustee, in the name of and at the expense of
the Company, shall mail or cause to be mailed to all holders of record on the
date of the Fundamental Change a notice (the "Company Notice") of the occurrence
of such Fundamental Change and of the redemption right at the option of the
holders arising as a result thereof. Such notice shall be mailed in the manner
and with the effect set forth in the first paragraph of Section 3.2 (without
regard for the time limits set forth therein). If the Company shall give such
notice, the Company shall also deliver a copy of the Company Notice to the
Trustee at such time as it is mailed to Noteholders. Concurrently with the
mailing of any Company Notice, the Company or Parent shall issue a press release
announcing such Fundamental Change referred to in the Company Notice, the form
and content of which press release shall be determined by the Company and Parent
in their sole discretion. The failure to issue any such press release or any
defect therein shall not affect the validity of the Company Notice or any
proceedings for the redemption of any Note which any Noteholder may elect to
have the Company redeem as provided in this Section 3.5.

         Each Company Notice shall specify the circumstances constituting the
Fundamental Change, the Repurchase Date, the price at which the Company shall be
obligated to redeem Notes, that the holder must exercise the redemption right on
or prior to the close of business on the Repurchase Date (the "Fundamental
Change Expiration Time"), that the holder shall have the right to withdraw any
Notes surrendered prior to the Fundamental Change Expiration Time, a description
of the procedure which a Noteholder must follow to exercise such redemption
right and to withdraw any surrendered Notes, the place or places where the
holder is to surrender such holder's Notes, the amount of interest accrued on
each Note to the Repurchase Date and the "CUSIP" number or numbers of the Notes
(if then generally in use).

         No failure of the Company to give the foregoing notices and no defect
therein shall limit the Noteholders' redemption rights or affect the validity of
the proceedings for the redemption of the Notes pursuant to this Section 3.5.

         (e) In the case of a reclassification, change, consolidation, merger,
combination, sale or conveyance to which Section 15.6 applies, in which the
Common Stock of Parent is changed or exchanged as a result into the right to
receive stock, securities or other property or assets (including cash), which
includes shares of Common Stock of Parent or shares of common stock of another
Person that are, or upon issuance will be, traded on a United States national
securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute
at the time such change or exchange becomes effective in excess of 50% of the
aggregate fair market value of such stock, securities or other property or
assets (including cash) (as determined by Parent, which determination shall be
conclusive and binding), then the Person formed by such consolidation or
resulting from such merger or which acquires such assets, as the case may be,
shall execute and deliver to the Trustee a supplemental indenture (accompanied
by an Opinion of Counsel that such supplemental

                                       12
<PAGE>   14

indenture complies with the Trust Indenture Act as in force at the date of
execution of such supplemental indenture) modifying the provisions of this
Indenture relating to the right of holders of the Notes to cause the Company to
repurchase the Notes following a Fundamental Change, including without
limitation the applicable provisions of this Section 3.5 and the definitions of
Common Stock and Fundamental Change, as appropriate, as determined in good faith
by Parent (which determination shall be conclusive and binding), to make such
provisions apply to such other Person if different from Parent and the common
stock issued by such Person (in lieu of Parent and the Common Stock of Parent)."

         Section 2.6. Amendment to Section 5.8 of the Indenture. Section 5.8 of
the Indenture is hereby amended and restated in its entirety as follows:

         "Section 5.8 Rule 144A Information Requirement. Within the period prior
to the expiration of the holding period applicable to sales thereof under Rule
144(k) under the Securities Act (or any successor provision), the Company and
Parent covenant and agree that they shall, during any period in which they are
not subject to Section 13 or 15(d) under the Exchange Act, make available to any
holder or beneficial holder of Notes or any Common Stock issued upon conversion
thereof which continue to be Restricted Securities in connection with any sale
thereof and any prospective purchaser of Notes or such Common Stock designated
by such holder or beneficial holder, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any holder or beneficial
holder of the Notes or such Common Stock and they will take such further action
as any holder or beneficial holder of such Notes 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 Notes 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 Notes or such Common
Stock, the Company and/or Parent (as applicable) will deliver to such holder a
written statement as to whether it has complied with such requirements."

         Section 2.7. Amendment to Section 7.1(c) of the Indenture. Section 7.1
(c) of the Indenture is hereby amended and restated in its entirety as follows:

         "(c) failure on the part of the Company or Parent duly to observe or
perform any other of the covenants or agreements on the part of the Company or
Parent in the Notes or in this Indenture (other than a covenant or agreement a
default in whose performance or whose breach is elsewhere in this Section 7.1
specifically dealt with) continued for a period of sixty (60) days after the
date on which written notice of such failure, requiring the Company or Parent to
remedy the same, shall have been given to the Company or Parent by the Trustee,
or the Company or Parent and a Responsible Officer of the Trustee by the holders
of at least twenty-five percent (25%) in aggregate principal amount of the Notes
at the time outstanding determined in accordance with Section 9.4; or"

         Section 2.8. Amendment to Section 7.7 of the Indenture. Section 7.7 of
the Indenture is hereby amended and restated in its entirety as follows:

         "Section 7.7 Direction Of Proceedings And Waiver Of Defaults By
Majority Of Noteholders. The holders of a majority in aggregate principal amount
of the Notes at the time

                                       13
<PAGE>   15

outstanding determined in accordance with Section 9.4 shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee; provided, however, that (a) such direction shall not be in conflict
with any rule of law or with this Indenture, (b) the Trustee may take any other
action which is not inconsistent with such direction and (c) the Trustee may
decline to take any action that would benefit some Noteholder to the detriment
of other Noteholders. The holders of a majority in aggregate principal amount of
the Notes at the time outstanding determined in accordance with Section 9.4 may,
on behalf of the holders of all of the Notes, waive any past default or Event of
Default hereunder and its consequences except (i) a default in the payment of
interest (including Liquidated Damages, if any) or premium, if any, on, or the
principal of, the Notes, (ii) a failure by the Company and Parent to convert any
Notes into Common Stock, (iii) a default in the payment of redemption price
pursuant to Article Three or (iv) a default in respect of a covenant or
provisions hereof which under Article Eleven cannot be modified or amended
without the consent of the holders of each or all Notes then outstanding or
affected thereby. Upon any such waiver, the Company, Parent, the Trustee and the
holders of the Notes shall be restored to their former positions and rights
hereunder; but no such waiver shall extend to any subsequent or other default or
Event of Default or impair any right consequent thereon. Whenever any default or
Event of Default hereunder shall have been waived as permitted by this Section
7.7, said default or Event of Default shall for all purposes of the Notes and
this Indenture be deemed to have been cured and to be not continuing; but no
such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent thereon."

         Section 2.9. Amendment to Section 8.2(b) of the Indenture. Section
8.2(b) of the Indenture is hereby amended and restated in its entirety as
follows:

         "(b) any request, direction, order or demand of the Company or Parent
mentioned herein shall be sufficiently evidenced by an Officers' Certificate
(unless other evidence in respect thereof be herein specifically prescribed);
and any resolution of the Company or Parent Board of Directors may be evidenced
to the Trustee by a copy thereof certified by the Secretary or an Assistant
Secretary of the Company or Parent;"

         Section 2.10. Amendment to Section 8.10(a) of the Indenture. Section
8.10(a) of the Indenture is hereby amended and restated in its entirety as
follows:

         "(a) The Trustee may at any time resign by giving written notice of
such resignation to the Company and to the holders of Notes. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee by
written instrument, in duplicate, executed by order of the Company Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee. If no successor trustee shall
have been so appointed and have accepted appointment sixty (60) days after the
mailing of such notice of resignation to the Noteholders, the resigning Trustee
may, upon ten (10) business days' notice to the Company and the Noteholders,
appoint a successor identified in such notice or may petition, at the expense of
the Company, any court of competent jurisdiction for the appointment of a
successor trustee, or, any Noteholder who has been a bona fide holder of a Note
or Notes for at least six (6) months may, subject to the provisions of Section
7.9, on behalf of himself and all others similarly situated, petition any such
court for the appointment of a successor trustee. Such

                                       14
<PAGE>   16

court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee."

         Section 2.11. Amendment to Section 8.10(b) of the Indenture. Section
8.10(b) of the Indenture is hereby amended and restated in its entirety as
follows:

         "(b) In case at any time any of the following shall occur:

                    (1) the Trustee shall fail to comply with Section 8.8 after
               written request therefor by the Company or by any Noteholder who
               has been a bona fide holder of a Note or Notes for at least six
               (6) months; or

                    (2) the Trustee shall cease to be eligible in accordance
               with the provisions of Section 8.9 and shall fail to resign after
               written request therefor by the Company or by any such
               Noteholder; or

                    (3) the Trustee shall become incapable of acting, or shall
               be adjudged a bankrupt or insolvent, or a receiver of the Trustee
               or of its property shall be appointed, or any public officer
               shall take charge or control of the Trustee or of its property or
               affairs for the purpose of rehabilitation, conservation or
               liquidation;

then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Company Board of Directors, one copy of which instrument shall be delivered to
the Trustee so removed and one copy to the successor trustee, or, subject to the
provisions of Section 7.9, any Noteholder who has been a bona fide holder of a
Note or Notes for at least six (6) months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee; provided,
however, that if no successor Trustee shall have been appointed and have
accepted appointment sixty (60) days after either the Company or the Noteholders
has removed the Trustee, the Trustee so removed may petition any court of
competent jurisdiction for an appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee."

         Section 2.12. Amendment to Section 9.3 of the Indenture. Section 9.3 of
the Indenture is hereby amended and restated in its entirety as follows:

         "Section 9.3 Who Are Deemed Absolute Owners. The Company, Parent, the
Trustee, any paying agent, any conversion agent and any Note registrar may deem
the Person in whose name such Note shall be registered upon the Note register to
be, and may treat it as, the absolute owner of such Note (whether or not such
Note shall be overdue and notwithstanding any notation of ownership or other
writing thereon made by any Person other than the Company or any Note registrar)
for the purpose of receiving payment of or on account of the principal of,
premium, if any, and interest on such Note, for conversion of such Note and for
all other purposes; and none of the Company, Parent or the Trustee or any paying
agent or any conversion agent or any Note registrar shall be affected by any
notice to the contrary. All such payments so made to any holder for the time
being, or upon his order, shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for monies payable
upon any such Note."

                                       15
<PAGE>   17

         Section 2.13. Amendment to Section 10.3 of the Indenture. Section 10.3
of the Indenture is hereby amended and restated in its entirety as follows:

         "Section 10.3. Call of Meetings By Company Or Noteholders. In case at
any time the Company, pursuant to a resolution of the Company Board of
Directors, or the holders of at least ten percent (10%) in aggregate principal
amount of the Notes then outstanding, shall have requested the Trustee to call a
meeting of Noteholders, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within twenty (20) days after receipt of such
request, then the Company or such Noteholders may determine the time and the
place for such meeting and may call such meeting to take any action authorized
in Section 10.1, by mailing notice thereof as provided in Section 10.2."

         Section 2.14. Amendment to Article Eleven of the Indenture. Article
Eleven of the Indenture is hereby amended and restated in its entirety as
follows:

                                  "ARTICLE 11.

                             SUPPLEMENTAL INDENTURES

         Section 11.1 Supplemental Indentures Without Consent Of Noteholders.
The Company and Parent, when authorized by the resolutions of the Company and
Parent Boards of Directors, and the Trustee may, from time to time, and at any
time enter into an indenture or indentures supplemental hereto for one or more
of the following purposes:

               (a) make provision with respect to the conversion rights of the
          holders of Notes pursuant to the requirements of Section 15.6 and the
          redemption obligations of the Company pursuant to the requirements of
          Section 3.5(e);

               (b) subject to Article Four, to convey, transfer, assign,
          mortgage or pledge to the Trustee as security for the Notes, any
          property or assets;

               (c) to evidence the succession of another Person to the Company
          or Parent, or successive successions, and the assumption by the
          successor Person of the covenants, agreements and obligations of the
          Company or Parent pursuant to Article Twelve;

               (d) to add to the covenants of the Company or Parent such further
          covenants, restrictions or conditions as the Company and Parent Boards
          of Directors and the Trustee shall consider to be for the benefit of
          the holders of Notes, and to make the occurrence, or the occurrence
          and continuance, of a default in any such additional covenants,
          restrictions or conditions a default or an Event of Default permitting
          the enforcement of all or any of the several remedies provided in this
          Indenture as herein set forth; provided, however, that in respect of
          any such additional covenant, restriction or condition, such
          supplemental indenture may provide for a particular period of grace
          after default (which period may be shorter or longer than that allowed
          in the case of other defaults) or may provide for an immediate
          enforcement upon such default or may limit the remedies available to
          the Trustee upon such default;

                                       16
<PAGE>   18

               (e) to provide for the issuance under this Indenture of Notes in
          coupon form (including Notes registrable as to principal only) and to
          provide for exchangeability of such Notes with the Notes issued
          hereunder in fully registered form and to make all appropriate changes
          for such purpose;

               (f) to cure any ambiguity or to correct or supplement any
          provision contained herein or in any supplemental indenture that may
          be defective or inconsistent with any other provision contained herein
          or in any supplemental indenture, or to make such other provisions in
          regard to matters or questions arising under this Indenture that shall
          not materially adversely affect the interests of the holders of the
          Notes;

               (g) to evidence and provide for the acceptance of appointment
          hereunder by a successor Trustee with respect to the Notes; or

               (h) to modify, eliminate or add to the provisions of this
          Indenture to such extent as shall be necessary to effect the
          qualifications of this Indenture under the Trust Indenture Act, or
          under any similar federal statute hereafter enacted.

         Upon the written request of the Company and Parent, accompanied by a
copy of the resolutions of the Company and Parent Boards of Directors certified
by their respective Secretary or Assistant Secretary authorizing the execution
of any supplemental indenture, the Trustee is hereby authorized to join with the
Company and Parent in the execution of any such supplemental indenture, to make
any further appropriate agreements and stipulations that may be therein
contained and to accept the conveyance, transfer and assignment of any property
thereunder, but the Trustee shall not be obligated to, but may in its
discretion, enter into any supplemental indenture that affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise.

         Any supplemental indenture authorized by the provisions of this Section
11.1 may be executed by the Company, Parent and the Trustee without the consent
of the holders of any of the Notes at the time outstanding, notwithstanding any
of the provisions of Section 11.2.

         Notwithstanding any other provision of the Indenture or the Notes, the
Registration Rights Agreement and the obligation to pay Liquidated Damages
thereunder may be amended, modified or waived in accordance with the provisions
of the Registration Rights Agreement.

         Section 11.2 Supplemental Indenture With Consent Of Noteholders. With
the consent (evidenced as provided in Article Nine) of the holders of not less
than a majority in aggregate principal amount of the Notes at the time
outstanding, the Company and Parent, when authorized by the resolutions of the
Company and Parent Boards of Directors, and the Trustee may, from time to time
and at any time, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or any supplemental indenture or of
modifying in any manner the rights of the holders of the Notes; provided,
however, that no such supplemental indenture shall (i) extend the fixed maturity
of any Note, or reduce the rate or extend the time of payment of interest
thereon, or reduce the principal amount thereof or premium, if any, thereon, or
reduce any amount payable on redemption thereof, or impair the right of any
Noteholder to institute suit

                                       17
<PAGE>   19

for the payment thereof, or make the principal thereof or interest or premium,
if any, thereon payable in any coin or currency other than that provided in the
Notes, or modify the provisions of this Indenture with respect to the
subordination of the Notes in a manner adverse to the Noteholders in any
material respect, or change the obligation of the Company to redeem any Note
upon the happening of a Fundamental Change in a manner adverse to the holder of
Notes, or impair the right to convert the Notes into Common Stock subject to the
terms set forth herein, including Section 15.6, in each case, without the
consent of the holder of each Note so affected, or (ii) reduce the aforesaid
percentage of Notes, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of all Notes then
outstanding.

         Upon the written request of the Company and Parent, accompanied by a
copy of the resolutions of the Company and Parent Boards of Directors certified
by their respective Secretary or Assistant Secretary authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of Noteholders as aforesaid, the Trustee shall join with
the Company and Parent in the execution of such supplemental indenture unless
such supplemental indenture affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental
indenture.

         It shall not be necessary for the consent of the Noteholders under this
Section 11.2 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

         Section 11.3 Effect Of Supplemental Indenture. Any supplemental
indenture executed pursuant to the provisions of this Article Eleven shall
comply with the Trust Indenture Act, as then in effect, provided that this
Section 11.3 shall not require such supplemental indenture or the Trustee to be
qualified under the Trust Indenture Act prior to the time such qualification is
in fact required under the terms of the Trust Indenture Act or the Indenture has
been qualified under the Trust Indenture Act, nor shall it constitute any
admission or acknowledgment by any party to such supplemental indenture that any
such qualification is required prior to the time such qualification is in fact
required under the terms of the Trust Indenture Act or the Indenture has been
qualified under the Trust Indenture Act. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article Eleven, this Indenture
shall be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitation of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company, Parent and the holders of
Notes shall thereafter be determined, exercised and enforced hereunder, subject
in all respects to such modifications and amendments and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be part
of the terms and conditions of this Indenture for any and all purposes.

         Section 11.4 Notation On Notes. Notes authenticated and delivered after
the execution of any supplemental indenture pursuant to the provisions of this
Article Eleven may bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company or the
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Trustee and the Company Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may, at the Company's
expense,

                                       18
<PAGE>   20

be prepared and executed by the Company, authenticated by the Trustee (or an
authenticating agent duly appointed by the Trustee pursuant to Section 16.11)
and delivered in exchange for the Notes then outstanding, upon surrender of such
Notes then outstanding.

         Section 11.5 Evidence Of Compliance Of Supplemental Indenture To Be
Furnished To Trustee. Prior to entering into any supplemental indenture, the
Trustee may request an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant hereto
complies with the requirements of this Article Eleven."

         Section 2.15. Amendment to Article Twelve of the Indenture. Article
Twelve of the Indenture is hereby amended and restated in its entirety as
follows:

                                  "ARTICLE 12.

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

         Section 12.1 Company May Consolidate, Etc. On Certain Terms. Subject to
the provisions of Section 12.2, nothing contained in this Indenture or in any of
the Notes shall prevent any consolidation or merger of the Company or Parent
with or into any other Person or Persons (whether or not affiliated with the
Company or Parent), or successive consolidations or mergers in which the
Company, Parent or their respective successor or successors shall be a party or
parties, or shall prevent any sale, conveyance or lease (or successive sales,
conveyances or leases) of all or substantially all of the property of the
Company or Parent, to any other Person (whether or not affiliated with the
Company or Parent), authorized to acquire and operate the same and that shall be
organized under the laws of the United States of America, any state thereof or
the District of Columbia; provided, however, that upon any such consolidation,
merger, sale, conveyance or lease, the due and punctual payment of the principal
of and premium, if any, and interest (including Liquidated Damages, if any) on
all of the Notes, according to their tenor and the due and punctual performance
and observance of all of the covenants and conditions of this Indenture to be
performed by the Company or Parent, shall be expressly assumed, by supplemental
indenture satisfactory in form to the Trustee, executed and delivered to the
Trustee by the Person (if other than the Company or Parent) formed by such
consolidation, or into which the Company or Parent shall have been merged, or by
the Person that shall have acquired or leased such property, and such
supplemental indenture shall provide for the applicable conversion rights set
forth in Section 15.6.

         Section 12.2 Successor Corporation To Be Substituted. In case of any
such consolidation, merger, sale, conveyance or lease and upon the assumption by
the successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the due and punctual payment
of the principal of and premium, if any, and interest on all of the Notes and
the due and punctual performance of all of the covenants and conditions of this
Indenture to be performed by the Company or Parent, such successor Person shall
succeed to and be substituted for the Company or Parent, with the same effect as
if it had been named herein as the party of this first part. Such successor
Person thereupon may cause to be signed, and may issue either in its own name or
in the name of Texas Instruments Tucson Corporation any or all of the Notes,
issuable hereunder that theretofore shall not have been signed by the Company
and delivered to the Trustee; and, upon the order of such successor

                                       19
<PAGE>   21

Person instead of the Company and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver, or cause to be authenticated and delivered, any Notes that
previously shall have been signed and delivered by the officers of the Company
to the Trustee for authentication, and any Notes that such successor Person
thereafter shall cause to be signed and delivered to the Trustee for that
purpose. All the Notes so issued shall in all respects have the same legal rank
and benefit under this Indenture as the Notes theretofore or thereafter issued
in accordance with the terms of this Indenture as though all of such Notes had
been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance or lease, the Person named as the
"Company" or "Parent" in the first paragraph of this Indenture or any successor
that shall thereafter have become such in the manner prescribed in this Article
Twelve may be dissolved, wound up and liquidated at any time thereafter and such
Person shall be released from its liabilities as obligor and maker of the Notes
and from its obligations under this Indenture.

         In case of any such consolidation, merger, sale, conveyance or lease,
such changes in phraseology and form (but not in substance) may be made in the
Notes thereafter to be issued as may be appropriate.

         Section 12.3 Opinion Of Counsel To Be Given Trustee. The Trustee shall
receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any such consolidation, merger, sale, conveyance or lease and any
such assumption complies with the provisions of this Article Twelve."

         Section 2.16. Amendment to Article Fourteen of the Indenture. Article
Fourteen of the Indenture is hereby amended and restated in its entirety as
follows:

                                  "ARTICLE 14.

                           IMMUNITY OF INCORPORATORS,
                      STOCKHOLDERS, OFFICERS AND DIRECTORS

         Section 14.1 Indenture And Notes Solely Corporate Obligations. Except
as set forth in Article Seventeen, no recourse for the payment of the principal
of or premium, if any, or interest on any Note, or for any claim based thereon
or otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company or Parent in this Indenture or in any
supplemental indenture or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, agent, officer, director or subsidiary, as such, past,
present or future, of the Company, Parent or of any successor corporation,
either directly or through the Company, Parent or any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Notes."

         Section 2.17. Amendment to Article Fifteen of the Indenture. Article
Fifteen of the Indenture is hereby amended and restated in its entirety as
follows:

                                       20
<PAGE>   22

                                  "ARTICLE 15.

                               CONVERSION OF NOTES

         Section 15.1 Right To Convert. Subject to and upon compliance with the
provisions of this Indenture, including, without limitation, Article Four, the
holder of any Note shall have the right, at its option, at any time after the
original issuance of the Notes hereunder through the close of business on the
final maturity date of the Notes (except that, with respect to any Note or
portion of a Note that shall be called for redemption, such right shall
terminate, except as provided in Section 15.2, Section 3.2 or Section 3.4, at
the close of business on the Business Day next preceding the date fixed for
redemption of such Note or portion of a Note unless the Company shall default in
payment due upon redemption thereof) to convert the principal amount of any such
Note, or any portion of such principal amount which is $1,000 or an integral
multiple thereof, into that number of fully paid and non-assessable shares of
Common Stock (as such shares shall then be constituted) obtained by dividing the
principal amount of the Note or portion thereof surrendered for conversion by
the Conversion Price in effect at such time, by surrender of the Note so to be
converted in whole or in part in the manner provided, together with any required
funds, in Section 15.2. A Note in respect of which a holder is exercising its
option to require redemption upon a Fundamental Change pursuant to Section 3.5
may be converted only if such holder withdraws its election to exercise in
accordance with Section 3.5. A holder of Notes is not entitled to any rights of
a holder of Common Stock until such holder has converted his Notes to Common
Stock, and only to the extent such Notes are deemed to have been converted to
Common Stock under this Article Fifteen.

         Section 15.2 Exercise Of Conversion Privilege; Issuance Of Common Stock
On Conversion; No Adjustment For Interest Or Dividends. In order to exercise the
conversion privilege with respect to any Note in certificated form, the holder
of any such Note to be converted in whole or in part shall surrender such Note,
duly endorsed, at an office or agency maintained by the Company pursuant to
Section 5.2, accompanied by the funds, if any, required by the penultimate
paragraph of this Section 15.2, and shall give written notice of conversion in
the form provided on the Notes (or such other notice which is acceptable to the
Company) to the office or agency that the holder elects to convert such Note or
the portion thereof specified in said notice. Such notice shall also state the
name or names (with address or addresses) in which the certificate or
certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued, and shall be accompanied by transfer taxes, if
required pursuant to Section 15.7. Each such Note surrendered for conversion
shall, unless the shares issuable on conversion are to be issued in the same
name as the registration of such Note, be duly endorsed by, or be accompanied by
instruments of transfer in form satisfactory to the Company duly executed by,
the holder or his duly authorized attorney.

         In order to exercise the conversion privilege with respect to any
interest in a Global Note, the beneficial holder must complete, or cause to be
completed, the appropriate instruction form for conversion pursuant to the
Depository's book-entry conversion program, deliver, or cause to be delivered,
by book-entry delivery an interest in such Global Note, furnish appropriate
endorsements and transfer documents if required by the Company or the Trustee or
conversion agent, and pay the funds, if any, required by this Section 15.2 and
any transfer taxes if required pursuant to Section 15.7.

                                       21
<PAGE>   23

         As promptly as practicable after satisfaction of the requirements for
conversion set forth above, subject to compliance with any restrictions on
transfer if shares issuable on conversion are to be issued in a name other than
that of the Noteholder (as if such transfer were a transfer of the Note or Notes
(or portion thereof) so converted), Parent shall issue and shall deliver to such
Noteholder at the office or agency maintained by the Company for such purpose
pursuant to Section 5.2, a certificate or certificates for the number of full
shares of Common Stock issuable upon the conversion of such Note or portion
thereof as determined by Parent in accordance with the provisions of this
Article Fifteen and a check or cash in respect of any fractional interest in
respect of a share of Common Stock arising upon such conversion, calculated by
Parent as provided in Section 15.3. In case any Note of a denomination greater
than $1,000 shall be surrendered for partial conversion, and subject to Section
2.3, the Company shall execute and the Trustee shall authenticate and deliver to
the holder of the Note so surrendered, without charge to him, a new Note or
Notes in authorized denominations in an aggregate principal amount equal to the
unconverted portion of the surrendered Note.

         Each conversion shall be deemed to have been effected as to any such
Note (or portion thereof) on the date on which the requirements set forth above
in this Section 15.2 have been satisfied as to such Note (or portion thereof),
and the Person in whose name any certificate or certificates for shares of
Common Stock shall be issuable upon such conversion shall be deemed to have
become on said date the holder of record of the shares represented thereby;
provided, however, that any such surrender on any date when the stock transfer
books of Parent shall be closed shall constitute the Person in whose name the
certificates are to be issued as the record holder thereof for all purposes on
the next succeeding day on which such stock transfer books are open, but such
conversion shall be at the Conversion Price in effect on the date upon which
such Note shall be surrendered.

         No adjustment in respect of interest on any Note converted or dividends
on any shares issued upon conversion of such Note will be made upon any
conversion except as set forth in the next sentence. If this Note (or portion
hereof) is surrendered for conversion during the period from the close of
business on any record date for the payment of interest to the close of business
on the Business Day preceding the following interest payment date and either (x)
has not been called for redemption on a redemption date that occurs during such
period or (y) is not to be redeemed in connection with a Fundamental Change on a
Repurchase Date that occurs during such period, this Note (or portion hereof
being converted) must be accompanied by an amount, in New York Clearing House
funds or other funds acceptable to the Company, equal to the interest payable on
such interest payment date on the principal amount being converted; provided,
however, that no such payment shall be required if there shall exist at the time
of conversion a default in the payment of interest on the Notes.

         Upon the conversion of an interest in a Global Note, the Trustee (or
other conversion agent appointed by the Company), or the Custodian at the
direction of the Trustee (or other conversion agent appointed by the Company),
shall make a notation on such Global Note as to the reduction in the principal
amount represented thereby. The Company shall notify the Trustee in writing of
any conversions of Notes effected through any conversion agent other than the
Trustee.

                                       22
<PAGE>   24

         Section 15.3 Cash Payments In Lieu Of Fractional Shares. No fractional
shares of Common Stock or scrip representing fractional shares shall be issued
upon conversion of Notes. If more than one Note shall be surrendered for
conversion at one time by the same holder, the number of full shares that shall
be issuable upon conversion shall be computed on the basis of the aggregate
principal amount of the Notes (or specified portions thereof to the extent
permitted hereby) so surrendered. If any fractional share of stock would be
issuable upon the conversion of any Note or Notes, Parent shall make an
adjustment and payment therefor in cash at the current market price thereof to
the holder of Notes. The current market price of a share of Common Stock shall
be the Closing Price on the last Business Day immediately preceding the day on
which the Notes (or specified portions thereof) are deemed to have been
converted.

         Section 15.4 Conversion Price. The conversion price shall be as
specified in the form of Note (herein called the "Conversion Price") attached as
Exhibit A hereto, subject to adjustment as provided in this Article Fifteen.

         Section 15.5 Adjustment Of Conversion Price. The Conversion Price shall
be adjusted from time to time by Parent as follows:

                  (a) In case Parent shall hereafter pay a dividend or make a
         distribution to all holders of the outstanding Common Stock in shares
         of Common Stock, the Conversion Price shall be reduced so that the same
         shall equal the price determined by multiplying the Conversion Price in
         effect at the opening of business on the date following the date fixed
         for the determination of stockholders entitled to receive such dividend
         or other distribution by a fraction, the numerator of which shall be
         the number of shares of the Common Stock outstanding at the close of
         business on the date fixed for such determination, and the denominator
         of which shall be the sum of such number of shares and the total number
         of shares constituting such dividend or other distribution, such
         reduction to become effective immediately after the opening of business
         on the day following the date fixed for such determination. For the
         purpose of this paragraph (a), the number of shares of Common Stock at
         any time outstanding shall not include shares held in the treasury of
         Parent. Parent will not pay any dividend or make any distribution on
         shares of Common Stock held in the treasury of Parent. If any dividend
         or distribution of the type described in this Section 15.5(a) is
         declared but not so paid or made, the Conversion Price shall again be
         adjusted to the Conversion Price that would then be in effect if such
         dividend or distribution had not been declared.

                  (b) In case Parent shall issue rights or warrants to all
         holders of its outstanding shares of Common Stock entitling them (for a
         period expiring within forty-five (45) days after the date fixed for
         determination of stockholders entitled to receive such rights or
         warrants) to subscribe for or purchase shares of Common Stock at a
         price per share less than the Current Market Price (as defined below)
         on the date fixed for determination of stockholders entitled to receive
         such rights or warrants, the Conversion Price shall be adjusted so that
         the same shall equal the price determined by multiplying the Conversion
         Price in effect immediately prior to the date fixed for determination
         of stockholders entitled to receive such rights or warrants by a
         fraction, the numerator of which shall be the number of shares of
         Common Stock outstanding at the close of business on the date fixed for
         determination of stockholders entitled to receive such rights or
         warrants plus the

                                       23
<PAGE>   25

          number of shares that the aggregate offering price of the total number
          of shares so offered would purchase at such Current Market Price, and
          the denominator of which shall be the number of shares of Common Stock
          outstanding on the date fixed for determination of stockholders
          entitled to receive such rights or warrants plus the total number of
          additional shares of Common Stock offered for subscription or
          purchase. Such adjustment shall be successively made whenever any such
          rights or warrants are issued, and shall become effective immediately
          after the opening of business on the day following the date fixed for
          determination of stockholders entitled to receive such rights or
          warrants. To the extent that shares of Common Stock are not delivered
          after the expiration of such rights or warrants, the Conversion Price
          shall be readjusted to the Conversion Price that would then be in
          effect had the adjustments made upon the issuance of such rights or
          warrants been made on the basis of delivery of only the number of
          shares of Common Stock actually delivered. In the event that such
          rights or warrants are not so issued, the Conversion Price shall again
          be adjusted to be the Conversion Price that would then be in effect if
          such date fixed for the determination of stockholders entitled to
          receive such rights or warrants had not been fixed. In determining
          whether any rights or warrants entitle the holders to subscribe for or
          purchase shares of Common Stock at less than such Current Market
          Price, and in determining the aggregate offering price of such shares
          of Common Stock, there shall be taken into account any consideration
          received by Parent for such rights or warrants and any amount payable
          on exercise or conversion thereof, the value of such consideration, if
          other than cash, to be determined by the Parent Board of Directors.

                  (c) In case outstanding shares of Common Stock shall be
         subdivided into a greater number of shares of Common Stock, the
         Conversion Price in effect at the opening of business on the day
         following the day upon which such subdivision becomes effective shall
         be proportionately reduced, and conversely, in case outstanding shares
         of Common Stock shall be combined into a smaller number of shares of
         Common Stock, the Conversion Price in effect at the opening of business
         on the day following the day upon which such combination becomes
         effective shall be proportionately increased, such reduction or
         increase, as the case may be, to become effective immediately after the
         opening of business on the day following the day upon which such
         subdivision or combination becomes effective.

                  (d) In case Parent shall, by dividend or otherwise, distribute
         to all holders of its Common Stock shares of any class of capital stock
         of Parent (other than any dividends or distributions to which Section
         15.5(a) applies) or evidences of its indebtedness or assets (including
         securities, but excluding any rights or warrants referred to in Section
         15.5(b), and excluding any dividend or distribution (x) paid
         exclusively in cash or (y) referred to in Section 15.5(a) (any of the
         foregoing hereinafter in this Section 15.5(d) called the
         "Securities")), then, in each such case (unless Parent elects to
         reserve such Securities for distribution to the Noteholders upon the
         conversion of the Notes so that any such holder converting Notes will
         receive upon such conversion, in addition to the shares of Common Stock
         to which such holder is entitled, the amount and kind of such
         Securities which such holder would have received if such holder had
         converted its Notes into Common Stock immediately prior to the Record
         Date (as defined in Section 15.5(h)(4) for such distribution of the
         Securities)), the Conversion Price shall be reduced

                                       24
<PAGE>   26

          so that the same shall be equal to the price determined by multiplying
          the Conversion Price in effect on the Record Date with respect to such
          distribution by a fraction, the numerator of which shall be the
          Current Market Price per share of the Common Stock on such Record Date
          less the fair market value (as determined by the Parent Board of
          Directors, whose determination shall be conclusive, and described in a
          resolution of the Parent Board of Directors) on the Record Date of the
          portion of the Securities so distributed applicable to one share of
          Common Stock and the denominator of which shall be the Current Market
          Price per share of the Common Stock, such reduction to become
          effective immediately prior to the opening of business on the day
          following such Record Date; provided, however, that in the event the
          then fair market value (as so determined) of the portion of the
          Securities so distributed applicable to one share of Common Stock is
          equal to or greater than the Current Market Price of the Common Stock
          on the Record Date, in lieu of the foregoing adjustment, adequate
          provision shall be made so that each Noteholder shall have the right
          to receive upon conversion the amount of Securities such holder would
          have received had such holder converted each Note on the 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 that would then be in effect if such dividend or
          distribution had not been declared. If the Parent Board of Directors
          determines the fair market value of any distribution for purposes of
          this Section 15.5(d) 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.

                  Under the provisions of Parent's Preferred Shares Rights Plan
         (the "Rights Plan"), upon conversion of the Notes into Common Stock, to
         the extent that the Rights Plan is still in effect upon such
         conversion, the holders of Notes will receive, in addition to the
         Common Stock, the rights described therein (whether or not the rights
         have separated from the Common Stock at the time of conversion),
         subject to the limitations set forth in the Rights Plan.

                  Rights or warrants distributed by Parent to all holders of
         Common Stock entitling the holders thereof to subscribe for or purchase
         shares of Parent'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 15.5 (and no adjustment to the Conversion Price under this
         Section 15.5 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 (if any is
         required) to the Conversion Price shall be made under this Section
         15.5(d). 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

                                       25
<PAGE>   27

          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 15.5 was made,
          (1) in the case of any such rights or warrants that 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 that 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.

                  No adjustment of the Conversion Price shall be made pursuant
         to this Section 15.5(d) in respect of rights or warrants distributed or
         deemed distributed on any Trigger Event to the extent that such rights
         or warrants are actually distributed, or reserved by Parent for
         distribution to holders of Notes upon conversion by such holders of
         Notes to Common Stock.

                  For purposes of this Section 15.5(d) and Sections 15.5(a) and
         (b), any dividend or distribution to which this Section 15.5(d) is
         applicable that also includes shares of Common Stock, or rights or
         warrants to subscribe for or purchase shares of Common Stock (or both),
         shall be deemed instead to be (1) a dividend or distribution of the
         evidences of indebtedness, assets or shares of capital stock other than
         such shares of Common Stock or rights or warrants (and any Conversion
         Price reduction required by this Section 15.5(d) with respect to such
         dividend or distribution shall then be made) immediately followed by
         (2) a dividend or distribution of such shares of Common Stock or such
         rights or warrants (and any further Conversion Price reduction required
         by Sections 15.5(a) and (b) with respect to such dividend or
         distribution shall then be made), except (A) the Record Date of such
         dividend or distribution shall be substituted as "the date fixed for
         the determination of stockholders entitled to receive such dividend or
         other distribution", "the date fixed for the determination of
         stockholders entitled to receive such rights or warrants" and "the date
         fixed for such determination" within the meaning of Sections 15.5(a)
         and (b), and (B) any shares of Common Stock included in such dividend
         or distribution shall not be deemed "outstanding at the close of
         business on the date fixed for such determination" within the meaning
         of Section 15.5(a).

                  (e) In case Parent shall, by dividend or otherwise, distribute
         to all holders of its Common Stock cash (excluding (x) any quarterly
         cash dividend on the Common Stock to the extent the aggregate cash
         dividend per share of Common Stock in any fiscal quarter does not
         exceed the greater of (A) the amount per share of Common Stock of the
         next preceding quarterly cash dividend on the Common Stock to the
         extent that such preceding quarterly dividend did not require any
         adjustment of the Conversion Price pursuant to this Section 15.5(e) (as
         adjusted to reflect subdivisions, or combinations of the Common Stock),
         and (B) 3.75% of the arithmetic average of the Closing Price

                                       26
<PAGE>   28

         (determined as set forth in Section 15.5(h)) during the ten Trading
         Days (as defined in Section 15.5(h)) immediately prior to the date of
         declaration of such dividend, and (y) any dividend or distribution in
         connection with the liquidation, dissolution or winding up of Parent,
         whether voluntary or involuntary), then, in such case, the Conversion
         Price shall be reduced so that the same shall equal the price
         determined by multiplying the Conversion Price in effect immediately
         prior to the close of business on such record date by a fraction, the
         numerator of which shall be the Current Market Price of the Common
         Stock on the record date less the amount of cash so distributed (and
         not excluded as provided above) applicable to one share of Common
         Stock, and the denominator of which shall be such Current Market Price
         of the Common Stock, such reduction to be effective immediately prior
         to the opening of business on the day following the record date;
         provided, however, that in the event the portion of the cash so
         distributed applicable to one share of Common Stock is equal to or
         greater than the Current Market Price of the Common Stock on the record
         date, in lieu of the foregoing adjustment, adequate provision shall be
         made so that each Noteholder shall have the right to receive upon
         conversion the amount of cash such holder would have received had such
         holder converted each Note on the 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 that would then be
         in effect if such dividend or distribution had not been declared. If
         any adjustment is required to be made as set forth in this Section
         15.5(e) as a result of a distribution that is a quarterly dividend,
         such adjustment shall be based upon the amount by which such
         distribution exceeds the amount of the quarterly cash dividend
         permitted to be excluded pursuant hereto. If an adjustment is required
         to be made as set forth in this Section 15.5(e) above as a result of a
         distribution that is not a quarterly dividend, such adjustment shall be
         based upon the full amount of the distribution.

                  (f) In case a tender or exchange offer made by Parent or any
         Subsidiary for all or any portion of the Common Stock shall expire and
         such tender or exchange offer (as amended upon the expiration thereof)
         shall require the payment to stockholders of consideration per share of
         Common Stock having a fair market value (as determined by the Parent
         Board of Directors, whose determination shall be conclusive and
         described in a resolution of the Parent Board of Directors) that as of
         the last time (the "Expiration Time") tenders or exchanges may be made
         pursuant to such tender or exchange offer (as it may be amended)
         exceeds the Current Market Price of the Common Stock on the Trading Day
         next succeeding the Expiration Time, 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
         Expiration Time by a fraction the numerator of which shall be the
         number of shares of Common Stock outstanding (including any tendered or
         exchanged shares) at the Expiration Time multiplied by the Current
         Market Price of the Common Stock on the Trading Day next succeeding the
         Expiration Time and the denominator of which shall be the sum of (x)
         the fair market value (determined as aforesaid) of the aggregate
         consideration payable to stockholders based on the acceptance (up to
         any maximum specified in the terms of the tender or exchange offer) of
         all shares validly tendered or exchanged 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) at the Expiration Time and the Current Market Price of the

                                       27
<PAGE>   29

         Common Stock on the Trading Day next succeeding the Expiration Time,
         such reduction to become effective immediately prior to the opening of
         business on the Trading Day following the Expiration Time. In the event
         that Parent is obligated to purchase shares pursuant to any such tender
         or exchange offer, but Parent is permanently prevented by applicable
         law from effecting any such purchases or all such purchases are
         rescinded, the Conversion Price shall again be adjusted to be the
         Conversion Price that would then be in effect if such tender or
         exchange offer had not been made.

                  (g) In case of a tender or exchange offer made by a Person
         other than Parent or any Subsidiary for an amount that increases the
         offeror's ownership of Common Stock to more than twenty-five percent
         (25%) of the Common Stock outstanding and shall involve the payment by
         such Person of consideration per share of Common Stock having a fair
         market value (as determined by the Parent Board of Directors, whose
         determination shall be conclusive, and described in a resolution of the
         Parent Board of Directors) that as of the last time (the "Offer
         Expiration Time") tenders or exchanges may be made pursuant to such
         tender or exchange offer (as it shall have been amended) exceeds the
         Current Market Price of the Common Stock on the Trading Day next
         succeeding the Offer Expiration Time, and in which, as of the Offer
         Expiration Time the Parent Board of Directors is not recommending
         rejection of the offer, 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 Offer Expiration Time by a
         fraction the numerator of which shall be the number of shares of Common
         Stock outstanding (including any tendered or exchanged shares) at the
         Offer Expiration Time multiplied by the Current Market Price of the
         Common Stock on the Trading Day next succeeding the Offer Expiration
         Time and the denominator of which shall be the sum of (x) the fair
         market value (determined as aforesaid) of the aggregate consideration
         payable to stockholders based on the acceptance (up to any maximum
         specified in the terms of the tender or exchange offer) of all shares
         validly tendered or exchanged and not withdrawn as of the Offer
         Expiration Time (the shares deemed so accepted, up to any such maximum,
         being referred to as the "Accepted Purchased Shares") and (y) the
         product of the number of shares of Common Stock outstanding (less any
         Accepted Purchased Shares) at the Offer Expiration Time and the Current
         Market Price of the Common Stock on the Trading Day next succeeding the
         Offer Expiration Time, such reduction to become effective immediately
         prior to the opening of business on the Trading Day following the Offer
         Expiration Time. In the event that such Person is obligated to purchase
         shares pursuant to any such tender or exchange offer, but such Person
         is permanently prevented by applicable law from effecting any such
         purchases or all such purchases are rescinded, the Conversion Price
         shall again be adjusted to be the Conversion Price that would then be
         in effect if such tender or exchange offer had not been made.
         Notwithstanding the foregoing, the adjustment described in this Section
         15.5(g) shall not be made if, as of the Offer Expiration Time, the
         offering documents with respect to such offer disclose a plan or
         intention to cause Parent to engage in any transaction described in
         Article Twelve.

               (h) For purposes of this Section 15.5, the following terms shall
          have the meaning indicated:

                                       28
<PAGE>   30

                    (1) "Closing Price" with respect to any security on any day
               shall mean the closing sale price, regular way, on such day or,
               in case no such sale takes place on such day, the average of the
               reported closing bid and asked prices, regular way, in each case
               as quoted on the Nasdaq National Market or, if such security is
               not quoted or listed or admitted to trading on such Nasdaq
               National Market, on the principal national securities exchange or
               quotation system on which such security is quoted or listed or
               admitted to trading or, if not quoted or listed or admitted to
               trading on any national securities exchange or quotation system,
               the average of the closing bid and asked prices of such security
               on the over-the-counter market on the day in question as reported
               by the National Quotation Bureau Incorporated, or a similar
               generally accepted reporting service, or if not so available, in
               such manner as furnished by any New York Stock Exchange member
               firm selected from time to time by the Parent Board of Directors
               for that purpose, or a price determined in good faith by the
               Parent Board of Directors or, to the extent permitted by
               applicable law, a duly authorized committee thereof, whose
               determination shall be conclusive.

                    (2) "Current Market Price" shall mean the average of the
               daily Closing Prices per share of Common Stock for the ten
               consecutive Trading Days immediately prior to the date in
               question except as hereinafter provided for purposes of any
               computation under Section 15.5(f) or (g); provided, however, that
               (1) if the "ex" date (as hereinafter defined) for any event
               (other than the issuance or distribution requiring such
               computation and other than the tender or exchange offer requiring
               such computation under Section 15.5(f) or (g)) that requires an
               adjustment to the Conversion Price pursuant to Section 15.5(a),
               (b), (c), (d), (e), (f) or (g) occurs during such ten consecutive
               Trading Days, the Closing Price for each Trading Day prior to the
               "ex" date for such other event shall be adjusted by multiplying
               such Closing Price by the same fraction by which the Conversion
               Price is so required to be adjusted as a result of such other
               event, (2) if the "ex" date for any event (other than the
               issuance or distribution requiring such computation and other
               than the tender or exchange offer requiring such computation
               under Section 15.5(f) or (g)) that requires an adjustment to the
               Conversion Price pursuant to Section 15.5(a), (b), (c), (d), (e),
               (f) or (g) occurs on or after the "ex" date for the issuance or
               distribution requiring such computation and prior to the day in
               question, the Closing Price for each Trading Day on and after the
               "ex" date for such other event shall be adjusted by multiplying
               such Closing Price by the reciprocal of the fraction by which the
               Conversion Price is so required to be adjusted as a result of
               such other event, and (3) if the "ex" date for the issuance or
               distribution requiring such computation is prior to the day in
               question, after taking into account any adjustment required
               pursuant to clause (1) or (2) of this proviso, the Closing Price
               for each Trading Day on or after such "ex" date shall be adjusted
               by adding thereto the amount of any cash and the fair market
               value (as determined by the Parent Board of Directors or, to the
               extent permitted by applicable law, a duly authorized committee
               thereof in a manner consistent with any determination of such
               value for purposes of Section 15.5(d), (f) or (g), whose
               determination shall be conclusive and described in a resolution
               of the Parent Board of Directors or such duly authorized
               committee thereof, as the

                                       29
<PAGE>   31

               case may be) of the evidences of indebtedness, shares of capital
               stock or assets being distributed applicable to one share of
               Common Stock as of the close of business on the day before such
               "ex" date. For purposes of any computation under Section 15.5(f)
               or (g), the "Current Market Price" of the Common Stock on any
               date shall be deemed to be the average of the daily Closing
               Prices per share of Common Stock for such day and the next two
               succeeding Trading Days; provided, however, that if the "ex" date
               for any event (other than the tender or exchange offer requiring
               such computation under Section 15.5(f) or (g)) that requires an
               adjustment to the Conversion Price pursuant to Section 15.5(a),
               (b), (c), (d), (e), (f) or (g) occurs on or after the Expiration
               Time or Offer Expiration Time, as the case may be, for the tender
               or exchange offer requiring such computation and prior to the day
               in question, the Closing Price for each Trading Day on and after
               the "ex" date for such other event shall be adjusted as provided
               in clauses (1), (2) and (3) of the proviso contained in the first
               sentence of this Section 15.5(h)(2). For purpose of this
               paragraph, the term "ex" date, (1) when used with respect to any
               issuance or distribution, means the first date on which the
               Common Stock trades, regular way, on the relevant exchange or in
               the relevant market from which the Closing Price was obtained
               without the right to receive such issuance or distribution, (2)
               when used with respect to any subdivision or combination of
               shares of Common Stock, means the first date on which the Common
               Stock trades, regular way, on such exchange or in such market
               after the time at which such subdivision or combination becomes
               effective, and (3) when used with respect to any tender or
               exchange offer means the first date on which the Common Stock
               trades, regular way, on such exchange or in such market after the
               Expiration Time or the Offer Expiration Time of such offer.

                    (3) "Fair Market Value" shall mean the amount which a
               willing buyer would pay a willing seller in an arm's-length
               transaction.

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

                    (5) "Trading Day" shall mean (x) if the applicable security
               is quoted on the Nasdaq National Market, a day on which trades
               may be made thereon or (y) if the applicable security is listed
               or admitted for trading on the New York Stock Exchange or another
               national securities exchange, a day on which the New York Stock
               Exchange or another national securities exchange is open for
               business or (z) if the applicable security is not so listed,
               admitted for trading or quoted, any day other than a Saturday or
               Sunday or a day on which banking institutions in the State of New
               York are authorized or obligated by law or executive order to
               close.

                                       30
<PAGE>   32

               (i) Parent may make such reductions in the Conversion Price, in
          addition to those required by Sections 15.5(a), (b), (c), (d), (e),
          (f) or (g) as the Parent Board of Directors considers to be advisable
          to avoid or diminish any income tax to holders of Common Stock or
          rights to purchase Common Stock resulting from any dividend or
          distribution of stock (or rights to acquire stock) or from any event
          treated as such for income tax purposes.

               To the extent permitted by applicable law, Parent from time to
          time may reduce the Conversion Price by any amount for any period of
          time if the period is at least twenty (20) days, the reduction is
          irrevocable during the period and the Parent Board of Directors shall
          have made a determination that such reduction would be in the best
          interests of Parent, which determination shall be conclusive. Whenever
          the Conversion Price is reduced pursuant to the preceding sentence,
          the Company shall mail to holders of record of the Notes a notice of
          the reduction at least fifteen (15) days prior to the date the reduced
          Conversion Price takes effect, and such notice shall state the reduced
          Conversion Price and the period during which it will be in effect.

               (j) No adjustment in the Conversion Price shall be required
          unless such adjustment would require an increase or decrease of at
          least one percent (1%) in such price; provided, however, that any
          adjustments that by reason of this Section 15.5(j) are not required to
          be made shall be carried forward and taken into account in any
          subsequent adjustment. All calculations under this Article Fifteen
          shall be made by Parent and shall be made to the nearest cent or to
          the nearest one-hundredth (1/100) of a share, as the case may be. No
          adjustment need be made for rights to purchase Common Stock pursuant
          to a Parent plan for reinvestment of dividends or interest. To the
          extent the Notes become convertible into cash, assets, property or
          securities (other than capital stock of Parent), no adjustment need be
          made thereafter as to the cash, assets, property or such securities.
          Interest will not accrue on the cash.

               (k) Whenever the Conversion Price is adjusted as herein provided,
          the Company and Parent shall promptly file with the Trustee and any
          conversion agent other than the Trustee an Officers' Certificate
          setting forth the Conversion Price after such adjustment and setting
          forth a brief statement of the facts requiring such adjustment. Unless
          and until a Responsible Officer of the Trustee shall have received
          such Officers' Certificate, the Trustee shall not be deemed to have
          knowledge of any adjustment of the Conversion Price and may assume
          that the last Conversion Price of which it has knowledge is still in
          effect. Promptly after delivery of such certificate, the Company shall
          prepare a notice of such adjustment of the Conversion Price setting
          forth the adjusted Conversion Price and the date on which each
          adjustment becomes effective and shall mail such notice of such
          adjustment of the Conversion Price to the holder of each Note at his
          last address appearing on the Note register provided for in Section
          2.5 of this Indenture, within twenty (20) days after execution
          thereof. Failure to deliver such notice shall not affect the legality
          or validity of any such adjustment.

               (l) In any case in which this Section 15.5 provides that an
          adjustment shall become effective immediately after (1) a record date
          or Record Date for an event, (2) the date fixed for the determination
          of stockholders entitled to receive a dividend or

                                       31
<PAGE>   33

          distribution pursuant to Section 15.5(a), (3) a date fixed for the
          determination of stockholders entitled to receive rights or warrants
          pursuant to Section 15.5(b), (4) the Expiration Time for any tender or
          exchange offer pursuant to Section 15.5(f), or (5) the Offer
          Expiration Time for a tender or exchange offer pursuant to Section
          15.5(g) (each a "Determination Date"), Parent may elect to defer until
          the occurrence of the relevant Adjustment Event (as hereinafter
          defined) (x) issuing to the holder of any Note converted after such
          Determination Date and before the occurrence of such Adjustment Event,
          the additional shares of Common Stock or other securities issuable
          upon such conversion by reason of the adjustment required by such
          Adjustment Event over and above the Common Stock issuable upon such
          conversion before giving effect to such adjustment and (y) paying to
          such holder any amount in cash in lieu of any fraction pursuant to
          Section 15.3. For purposes of this Section 15.5(l), the term
          "Adjustment Event" shall mean:

                    (a) in any case referred to in clause (1) hereof, the
               occurrence of such event,

                    (b) in any case referred to in clause (2) hereof, the date
               any such dividend or distribution is paid or made,

                    (c) in any case referred to in clause (3) hereof, the date
               of expiration of such rights or warrants, and

                    (d) in any case referred to in clause (4) or clause (5)
               hereof, the date a sale or exchange of Common Stock pursuant to
               such tender or exchange offer is consummated and becomes
               irrevocable.

               (m) For purposes of this Section 15.5, the number of shares of
          Common Stock at any time outstanding shall not include shares held in
          the treasury of Parent but shall include shares issuable in respect of
          scrip certificates issued in lieu of fractions of shares of Common
          Stock. Parent will not pay any dividend or make any distribution on
          shares of Common Stock held in the treasury of Parent.

         Section 15.6 Effect Of Reclassification, Consolidation, Merger Or Sale.
If any of the following events occur, namely (i) any reclassification or change
of the outstanding shares of Common Stock (other than a subdivision or
combination to which Section 15.5(c) applies), (ii) any consolidation, merger or
combination of Parent with another Person as a result of which holders of Common
Stock shall be entitled to receive stock, other securities or other property or
assets (including cash) with respect to or in exchange for such Common Stock, or
(iii) any sale or conveyance of all or substantially all of the properties and
assets of Parent to any other Person as a result of which holders of Common
Stock shall be entitled to receive stock, other securities or other property or
assets (including cash) with respect to or in exchange for such Common Stock,
then Parent or the successor or purchasing Person, as the case may be, shall
execute with the Trustee a supplemental indenture (which shall comply with the
Trust Indenture Act as in force at the date of execution of such supplemental
indenture) providing that such Note shall be convertible into the kind and
amount of shares of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation,
merger,

                                       32
<PAGE>   34

combination, sale or conveyance by a holder of a number of shares of Common
Stock issuable upon conversion of such Notes (assuming, for such purposes, a
sufficient number of authorized shares of Common Stock are available to convert
all such Notes) immediately prior to such reclassification, change,
consolidation, merger, combination, sale or conveyance assuming such holder of
Common Stock did not exercise his rights of election, if any, as to the kind or
amount of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation, merger,
combination, sale or conveyance (provided that, if the kind or amount of stock,
other securities or other property or assets (including cash) receivable upon
such reclassification, change, consolidation, merger, combination, sale or
conveyance is not the same for each share of Common Stock in respect of which
such rights of election shall not have been exercised ("non-electing share"),
then for the purposes of this Section 15.6 the kind and amount of stock, other
securities or other property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance
for each non-electing share shall be deemed to be the kind and amount so
receivable per share by a plurality of the non-electing shares). Such
supplemental indenture shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article
Fifteen.

         The Company and Parent shall cause notice of the execution of such
supplemental indenture to be mailed to each holder of Notes, at its address
appearing on the Note register provided for in Section 2.5 of this Indenture,
within twenty (20) days after execution thereof. Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.

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

         If this Section 15.6 applies to any event or occurrence, Section 15.5
shall not apply.

         Section 15.7 Taxes On Shares Issued. The issue of stock certificates on
conversions of Notes shall be made without charge to the converting Noteholder
for any tax in respect of the issue thereof. Neither the Company nor Parent
shall, however, be required to pay any tax which may be payable in respect of
any transfer involved in the issue and delivery of stock in any name other than
that of the holder of any Note converted, and Parent shall not be required to
issue or deliver any such stock certificate unless and until the Person or
Persons requesting the issue thereof shall have paid to Parent the amount of
such tax or shall have established to the satisfaction of Parent that such tax
has been paid.

         Section 15.8 Reservation Of Shares; Shares To Be Fully Paid; Compliance
With Governmental Requirements; Listing Of Common Stock. Parent shall provide,
free from preemptive rights, out of its authorized but unissued shares or shares
held in treasury, sufficient shares of Common Stock to provide for the
conversion of the Notes from time to time as such Notes are presented for
conversion.

         Before taking any action which would cause an adjustment reducing the
Conversion Price below the then par value, if any, of the shares of Common Stock
issuable upon conversion of the Notes, Parent will take all corporate action
which may, in the opinion of its counsel, be necessary

                                       33
<PAGE>   35

in order that Parent may validly and legally issue shares of such Common Stock
at such adjusted Conversion Price.

         Parent covenants that all shares of Common Stock which may be issued
upon conversion of Notes will upon issue be fully paid and non-assessable by
Parent and free from all taxes, liens and charges with respect to the issue
thereof.

         Parent covenants that, if any shares of Common Stock to be provided for
the purpose of conversion of Notes hereunder require registration with or
approval of any governmental authority under any federal or state law before
such shares may be validly issued upon conversion, Parent will in good faith and
as expeditiously as possible, to the extent then permitted by the rules and
interpretations of the Securities and Exchange Commission (or any successor
thereto), endeavor to secure such registration or approval, as the case may be.

         Parent further covenants that, if at any time the Common Stock shall be
listed on the Nasdaq National Market or any other national securities exchange
or automated quotation system, Parent will, if permitted by the rules of such
exchange or automated quotation system, list and keep listed, so long as the
Common Stock shall be so listed on such exchange or automated quotation system,
all Common Stock issuable upon conversion of the Notes; provided, however, that,
if the rules of such exchange or automated quotation system permit Parent to
defer the listing of such Common Stock until the first conversion of the Notes
into Common Stock in accordance with the provisions of this Indenture, Parent
covenants to list such Common Stock issuable upon conversion of the Notes in
accordance with the requirements of such exchange or automated quotation system
at such time.

         Section 15.9 Responsibility Of Trustee. The Trustee and any other
conversion agent shall not at any time be under any duty or responsibility to
any holder of Notes to determine the Conversion Price or whether any facts exist
which may require any adjustment of the Conversion Price, or with respect to the
nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture
provided to be employed, in making the same. The Trustee and any other
conversion agent shall not be accountable with respect to the validity or value
(or the kind or amount) of any shares of Common Stock, or of any securities or
property, which may at any time be issued or delivered upon the conversion of
any Note; and the Trustee and any other conversion agent make no representations
with respect thereto. Neither the Trustee nor any conversion agent shall be
responsible for any failure of Parent to issue, transfer or deliver any shares
of Common Stock or stock certificates or other securities or property or cash
upon the surrender of any Note for the purpose of conversion or to comply with
any of the duties, responsibilities or covenants of Parent contained in this
Article Fifteen. Without limiting the generality of the foregoing, neither the
Trustee nor any conversion agent shall be under any responsibility to determine
the correctness of any provisions contained in any supplemental indenture
entered into pursuant to Section 15.6 relating either to the kind or amount of
shares of stock or securities or property (including cash) receivable by
Noteholders upon the conversion of their Notes after any event referred to in
such Section 15.6 or to any adjustment to be made with respect thereto, but,
subject to the provisions of Section 8.1, may accept as conclusive evidence of
the correctness of any such provisions, and shall be protected in relying upon,
the Officers' Certificate (which the Company and Parent shall

                                       34
<PAGE>   36

be obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto.

         Section 15.10 Notice To Holders Prior To Certain Actions. In case:

               (a) Parent shall declare a dividend (or any other distribution)
          on its Common Stock that would require an adjustment in the Conversion
          Price pursuant to Section 15.5; or

               (b) Parent shall authorize the granting to the holders of all or
          substantially all of its Common Stock of rights or warrants to
          subscribe for or purchase any share of any class or any other rights
          or warrants; or

               (c) of any reclassification or reorganization of the Common Stock
          of Parent (other than a subdivision or combination of its outstanding
          Common Stock, or a change in par value, or from par value to no par
          value, or from no par value to par value), or of any consolidation or
          merger to which Parent is a party and for which approval of any
          stockholders of Parent is required, or of the sale or transfer of all
          or substantially all of the assets of Parent or any Significant
          Subsidiary; or

               (d) of the voluntary or involuntary dissolution, liquidation or
          winding up of Parent or any Significant Subsidiary;

          the Company and Parent shall cause to be filed with the Trustee and to
          be mailed to each holder of Notes at his address appearing on the Note
          register provided for in Section 2.5 of this Indenture, as promptly as
          possible but in any event at least ten (10) days prior to the
          applicable date hereinafter specified, a notice stating (x) the date
          on which a record is to be taken for the purpose of such dividend,
          distribution or rights or warrants, or, if a record is not to be
          taken, the date as of which the holders of Common Stock of record to
          be entitled to such dividend, distribution or rights are to be
          determined, or (y) the date on which such reclassification,
          consolidation, merger, sale, transfer, dissolution, liquidation or
          winding up is expected to become effective or occur, and the date as
          of which it is expected that holders of Common Stock of record shall
          be entitled to exchange their Common Stock for securities or other
          property deliverable upon such reclassification, consolidation,
          merger, sale, transfer, dissolution, liquidation or winding up.
          Failure to give such notice, or any defect therein, shall not affect
          the legality or validity of such dividend, distribution,
          reclassification, consolidation, merger, sale, transfer, dissolution,
          liquidation or winding up."

         Section 2.18. Amendment to Section 16.1 of the Indenture. Section 16.1
of the Indenture is hereby amended and restated in its entirety as follows:

         "Section 16.1 Provisions Binding On Company and Parent's Successors.
All the covenants, stipulations, promises and agreements by the Company and
Parent contained in this Indenture shall bind their respective successors and
assigns whether so expressed or not."

                                       35
<PAGE>   37

         Section 2.19. Amendment to Section 16.2 of the Indenture. Section 16.2
of the Indenture is hereby amended and restated in its entirety as follows:

         "Section 16.2 Official Acts By Successor Corporation. Any act or
proceeding by any provision of this Indenture authorized or required to be done
or performed by any board, committee or officer of the Company or Parent shall
and may be done and performed with like force and effect by the like board,
committee or officer of any Person that shall at the time be the lawful sole
successor of the Company or Parent."

         Section 2.20. Amendment to Section 16.3 of the Indenture. Section 16.3
of the Indenture is hereby amended and restated in its entirety as follows:

         "Section 16.3 Addresses For Notices, Etc. Any notice or demand which by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the holders of Notes on the Company or Parent shall be
deemed to have been sufficiently given or made, for all purposes, if given or
served by being deposited postage prepaid by registered or certified mail in a
post office letter box addressed (until another address is filed by the Company
or Parent with the Trustee) to Texas Instruments Incorporated, 12500 TI
Boulevard, P.O. Box 660199, Dallas, Texas 75266-0199, Attention: Chief Financial
Officer. Any notice, direction, request or demand hereunder to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or served by being deposited, postage prepaid, by registered
or certified mail in a post office letter box addressed to the Corporate Trust
Office, which office is, at the date as of which this Indenture is dated,
located at 114 W. 47th Street, New York, New York 10036-1532, Attention:
Corporate Trust Department (Texas Instruments Tucson Corporation, 4 1/4%
Convertible Subordinated Notes due 2007).

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

         Any notice or communication mailed to a Noteholder shall be mailed to
him by first class mail, postage prepaid, at his address as it appears on the
Note register and shall be sufficiently given to him if so mailed within the
time prescribed.

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

         Section 2.21. Amendment to Section 16.5 of the Indenture. Section 16.5
of the Indenture is hereby amended and restated in its entirety as follows:

         "Section 16.5 Evidence Of Compliance With Conditions Precedent;
Certificates To Trustee. Upon any application or demand by the Company or Parent
to the Trustee to take any action under any of the provisions of this Indenture,
the Company or Parent shall furnish to the Trustee an Officers' Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, and an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

                                       36
<PAGE>   38

         Each certificate or opinion provided for in this Indenture and
delivered to the Trustee 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 statement or opinion contained in such certificate or opinion is
based; (3) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him 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."

         Section 2.22. Amendment to Section 16.8 of the Indenture. Section 16.8
of the Indenture is hereby amended and restated in its entirety as follows:

         "Section 16.8 No Security Interest Created. Nothing in this Indenture
or in the Notes, expressed or implied, shall be construed to constitute a
security interest under the Uniform Commercial Code or similar legislation, as
now or hereafter enacted and in effect, in any jurisdiction in which property of
Parent or its subsidiaries is located."

         Section 2.23. New Article Seventeen to the Indenture. The Indenture is
hereby amended to include a new Article Seventeen as follows:

                                  "ARTICLE 17.

                                PARENT GUARANTEE

         Section 17.1. Parent Guarantee.

               (a) For good and valuable consideration, the receipt and
         sufficiency of which is hereby acknowledged, Parent hereby fully and
         unconditionally guarantees (such guarantee being a "Parent Guarantee")
         to each holder of a Note authenticated and delivered by the Trustee and
         to the Trustee irrespective of the validity and enforceability of this
         Indenture, the Notes or the obligations of the Company under this
         Indenture or the Notes, that: (i) the principal of, premium, if any,
         and interest on the Notes will be paid when due, whether at maturity or
         interest payment date, by acceleration, call for redemption, purchase
         or otherwise, and interest on the overdue principal and interest, if
         any, of the Notes, if lawful, and all other obligations of the Company
         to the Noteholders or the Trustee under this Indenture or the Notes
         will be promptly paid or performed, all in accordance with the terms of
         this Indenture and the Notes; and (ii) in case of any extension of time
         of payment or renewal of any of the Notes or any such other
         obligations, they will be paid when due or performed in accordance with
         the terms of the extension or renewal, whether at maturity, by
         acceleration, call for redemption, purchase or otherwise. Failing
         payment when due of any amount so guaranteed for whatever reason,
         Parent shall be obligated to pay the same before failure to do so
         becomes an Event of Default. Notwithstanding anything herein to the
         contrary, all obligations of Parent hereunder shall be subordinated to
         the prior payment of Parent Senior Indebtedness to the same extent that
         the Notes are subordinated pursuant to Article Four.

                                       37
<PAGE>   39

               (b) Parent agrees that (i) its obligations with regard to this
          Parent Guarantee shall be full and unconditional, irrespective of the
          validity, regularity or enforceability of the Notes or this Indenture,
          the absence of any action to enforce the same, any delays in obtaining
          or realizing upon (or failures to obtain or realize upon) collateral,
          the recovery of any judgment against the Company, any action to
          enforce the same or any other circumstances that might otherwise
          constitute a legal or equitable discharge or defense of the Parent and
          (ii) this Parent Guarantee will not be discharged except by complete
          performance of the obligations contained in the Notes and this
          Indenture. Parent hereby waives diligence, presentment, demand of
          payment, filing of claims with a court in the event of insolvency or
          bankruptcy of the Company, any right to require a proceeding first
          against the Company or right to require the prior disposition of the
          assets of the Company to meet its obligations, protest, notice and all
          demands whatsoever and covenants that this Parent Guarantee will not
          be discharged except by complete performance of the obligations
          contained in the Notes and this Indenture.

               (c) If any Noteholder or the Trustee is required by any court or
          otherwise to return to any of the Company, Parent, or Trustee, or
          similar official acting for any of the Company or Parent, any amount
          paid by any of the Company or Parent to the Trustee or such
          Noteholder, this Parent Guarantee, to the extent theretofore
          discharged, shall be reinstated in full force and effect. Parent
          agrees that it will not be entitled to any right of subrogation in
          relation to the Noteholders in respect of any obligations guaranteed
          hereby."

                                  ARTICLE III.

                       ADJUSTMENT OF THE CONVERSION PRICE
                                  FORM OF NOTES

         Section 3.1. Adjustment of the Conversion Price. Pursuant to Section
15.6 of the Indenture, the Conversion Price is hereby adjusted downward to
$44.45 to give effect to the conversion of Company Common Stock into Common
Stock as a result of the Merger.

         Section 3.2. Form of Notes. The Notes and the Trustee's certificate of
authentication to be borne by such Notes shall be amended and restated in
substantially the form set forth in Exhibit A, which is incorporated in and made
a part of this First Supplemental Indenture.

                                  ARTICLE IV.

                                OTHER AGREEMENTS

         Section 4.1. Assumption of Obligations Under Registration Rights
Agreement. Parent hereby assumes, and covenants and agrees, jointly and
severally with the Company, to perform or cause to be performed each and every
obligation of the Company under the Registration Rights Agreement as if it were
an original party thereto.

                                       38
<PAGE>   40

         Section 4.2. Trust Indenture Act Obligations of Parent. Parent hereby
covenants and agrees to comply with its obligations as an "obligor" under the
applicable provisions of the Trust Indenture Act of 1939, as amended.

                                   ARTICLE V.

                            MISCELLANEOUS PROVISIONS

         Section 5.1. Effective Date. This First Supplemental Indenture shall
become effective upon execution and delivery hereof.

         Section 5.2. Execution in Counterparts. This First Supplemental
Indenture may be executed in any number of counterparts, each of which shall be
an original, but such counterparts shall together constitute but one and the
same instrument.

         Section 5.3. Acceptance by Trustee. The Trustee accepts the Indenture,
as supplemented by this First Supplemental Indenture, and agrees to perform the
same upon the terms and conditions set forth therein as so supplemented. The
Trustee shall not be responsible in any manner whatsoever for or in respect of
execution hereof by the Company or Parent, or for or in respect of the recitals
contained herein, all of which are made by the Company and Parent solely.

         Section 5.4. Provisions Binding On Successors. All the covenants,
stipulation, promises and agreements by the Company and Parent contained in this
First Supplemental Indenture shall bind its successors and assigns whether so
expressed or not.

         Section 5.5. Severability. In case any provision in this First
Supplemental Indenture shall be invalid, illegal or unenforceable, then (to the
extent permitted by law) the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

         Section 5.6. Governing Law. This First Supplemental Indenture shall be
deemed to be a contract made under the laws of the State of New York, and for
all purposes shall be construed in accordance with the laws of the State of New
York, without regard to the conflict of laws provisions thereof.

         Section 5.7. Incorporation into Indenture. All provisions of this First
Supplemental Indenture shall be deemed to be incorporated in, and made a part
of, the Indenture; and the Indenture, as amended and supplemented by this First
Supplemental Indenture, shall be read, taken and construed as one and the same
instrument.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       39
<PAGE>   41

         IN WITNESS THEREOF, the parties hereto have caused this Indenture to be
duly executed as of the day and year written above.

                                        TEXAS INSTRUMENTS
                                        INCORPORATED, as Guarantor

                                        By: /s/ M. SAMUEL SELF
                                           -------------------------------------
                                           M. Samuel Self
                                           Senior Vice President
                                           and Controller

                                        TEXAS INSTRUMENTS TUCSON
                                        CORPORATION, as Issuer

                                        By: /s/ M. SAMUEL SELF
                                           -------------------------------------
                                           M. Samuel Self
                                           Treasurer

                                        UNITED STATES TRUST COMPANY OF
                                        NEW YORK, as Trustee

                                        By: /s/ JAMES E. LOGAN
                                           -------------------------------------
                                        Name:   James E. Logan
                                             -----------------------------------
                                        Title:  Vice President
                                              ----------------------------------

<PAGE>   42

                                    EXHIBIT A

                                  FORM OF NOTES

         For Global Note only: UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) (THE "DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY
FOR THE CERTIFICATES) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY
TRANSFER, PLEDGE, OR OTHER. USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

         THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED
STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH
IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS
DEFINED IN RULE 501(A)(1),(2),(3) OR (7) UNDER THE SECURITIES ACT)
("INSTITUTIONAL ACCREDITED INVESTOR"); (2) AGREES THAT IT WILL NOT, PRIOR TO
EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE NOTE EVIDENCED
HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION),
RESELL OR OTHERWISE TRANSFER THE NOTE EVIDENCED HEREBY OR THE TEXAS INSTRUMENTS
INCORPORATED COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH NOTE EXCEPT (A) TO
TEXAS INSTRUMENTS OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT,
PRIOR TO SUCH TRANSFER, FURNISHES TO UNITED STATES TRUST COMPANY OF NEW YORK, AS
TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THE NOTE EVIDENCED HEREBY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM SUCH
TRUSTEE OR A SUCCESSOR TRUSTEE, AS APPLICABLE), (D) OUTSIDE THE UNITED STATES IN
COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT,

                                      A-1
<PAGE>   43

(E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN
A TRANSFER PURSUANT TO CLAUSE (2)(F) ABOVE), IT WILL FURNISH TO UNITED STATES
TRUST COMPANY OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE,
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE TRUSTEE MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT, SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT; AND (4) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THE NOTE EVIDENCED HEREBY IS TRANSFERRED (EXCEPT TRANSFERS
PURSUANT TO CLAUSES 2(E) OR 2(F) ABOVE, OR PURSUANT TO RULE 144(K)) A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF
THE NOTE EVIDENCED. HEREBY PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THE NOTE EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE
SECURITIES ACT (OR ANY SUCCESSOR PROVISION), THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH
TRANSFER AND SUBMIT THIS CERTIFICATE TO UNITED STATES TRUST COMPANY OF NEW YORK,
AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE). IF THE PROPOSED TRANSFEREE
IS AN INSTITUTIONAL ACCREDITED INVESTOR OR IS A PURCHASER WHO IS NOT A U.S.
PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO UNITED STATES TRUST
COMPANY OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS SUCH TRUSTEE MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER
OF THE TRANSFER OF THE NOTE EVIDENCED HEREBY PURSUANT TO CLAUSES 2(E) OR (2)(F)
ABOVE, OR UPON ANY TRANSFER OF THE NOTE EVIDENCED HEREBY UNDER RULE 144(K) UNDER
THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). AS USED HEREIN, THE TERMS
"UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY
REGULATIONS UNDER THE SECURITIES ACT.

                                      A-2
<PAGE>   44

                      TEXAS INSTRUMENTS TUCSON CORPORATION

                 4 1/4% CONVERTIBLE SUBORDINATED NOTES DUE 2007

                                                              CUSIP: 122 574 AD8

No.                                                            $
   ------                                                       ----------------

         Texas Instruments Tucson Corporation, a corporation duly organized and
validly existing under the laws of the State of Delaware (herein called the
"Company", which term includes any successor corporation under the Indenture
referred to on the reverse hereof), for value received hereby promises to pay to
Cede & Co., registered assigns, the principal sum of
[____________________________] dollars ($______________) on February 15, 2007,
at the office or agency of the Company maintained for that purpose in accordance
with the terms of the Indenture, in such coin or currency of the United States
of America as at the time of payment shall be legal tender for the payment of
public and private debts, and to pay interest, semi-annually on February 15 and
August 15 of each year, commencing August 15, 2000, on said principal sum at
said office or agency, in like coin or currency, at the rate per annum of
4 1/4%, from February 15 or August 15, as the case may be, next preceding the
date of this Note to which interest has been paid or duly provided for, unless
the date hereof is a date to which interest has been paid or duly provided for,
in which case from the date of this Note, or unless no interest has been paid or
duly provided for on the Notes, in which case from February 24, 2000, until
payment of said principal sum has been made or duly provided for.
Notwithstanding the foregoing, if the date hereof is after any February 1 or
August 1, as the case may be, and before the following February 15 or August 15,
this Note shall bear interest from such February 15 or August 15; provided,
however, that if the Company shall default in the payment of interest due on
such February 15 or August 15, then this Note shall bear interest from the next
preceding February 15 or August 15 to which interest has been paid or duly
provided for or, if no interest has been paid or duly provided for on such Note,
from February 24, 2000. Except as otherwise provided in the Indenture, the
interest payable on the Note pursuant to the Indenture on any February 15 or
August 15 will be paid to the Person entitled thereto as it appears in the Note
register at the close of business on the record date, which shall be the
February 1 or August 1 (whether or not a Business Day) next preceding such
February 15 or August 15, as provided in the Indenture; provided, however, that
any such interest not punctually paid or duly provided for shall be payable as
provided in the Indenture. Interest may, at the option of the Company, be paid
either (i) by check mailed to the registered address of such Person (provided
that the holder of Notes with an aggregate principal amount in excess of
$2,000,000 shall, at the written election of such holder, be paid by wire
transfer of immediately available funds) or (ii) by transfer to an account
maintained by such Person located in the United States; provided, however, that
payments to the Depositary will be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

         Reference is made to the further provisions of this Note set forth on
the reverse hereof, including, without limitation, provisions subordinating the
payment of principal of and premium, if any, and interest on the Notes to the
prior payment in full of all Senior

                                      A-3
<PAGE>   45

Indebtedness, as defined in the Indenture, and provisions giving the holder of
this Note the right to convert this Note into common stock, par value $1.00 per
share, of Texas Instruments Incorporated on the terms and subject to the
limitations referred to on the reverse hereof and as more fully specified in the
Indenture. Such further provisions shall for all purposes have the same effect
as though fully set forth at this place.

         This Note shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of the State of New York, without regard to principles
of conflicts of laws.

         This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been manually signed by the
Trustee or a duly authorized authenticating agent under the Indenture.

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

                                      TEXAS INSTRUMENTS TUCSON CORPORATION

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

Attest:
       --------------------------------
Name:
       --------------------------------
Title:
       --------------------------------
Dated:
       --------------------------------

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Notes described in the within-named Indenture.
UNITED STATES TRUST COMPANY OF NEW YORK, as Trustee

[By:
    ---------------------------------
          Authorized Signatory
                                      ; or

By:                                   ]
   ----------------------------------
        As Authenticating Agent
      (if different from Trustee)

                                      A-4
<PAGE>   46

                             FORM OF REVERSE OF NOTE
                      TEXAS INSTRUMENTS TUCSON CORPORATION

                 4 1/4% CONVERTIBLE SUBORDINATED NOTES DUE 2007

         This Note is one of a duly authorized issue of Notes of the Company,
designated as its 4 1/4% Convertible Subordinated Notes due 2007 (herein called
the "Notes"), limited to the aggregate principal amount of $287,500,000 all
issued or to be issued under and pursuant to an Indenture dated as of February
24, 2000 (herein called the "Indenture"), between the Company and United States
Trust Company of New York, as trustee (herein called the "Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the holders of the Notes.

         In case an Event of Default (as defined in the Indenture) shall have
occurred and be continuing, the principal of, premium, if any, and accrued
interest (including Liquidated Damages (as defined in the Registration Rights
Agreement), if any) on all Notes may be declared by either the Trustee or the
holders of not less than 25% in aggregate principal amount of the Notes then
outstanding, and upon said declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

          The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Notes at the time outstanding, to execute
supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Notes;
provided, however, that no such supplemental indenture shall (i) extend the
fixed maturity of any Note, or reduce the rate or extend the time of payment of
interest thereon, or reduce the principal amount thereof or premium, if any,
thereon, or reduce any amount payable upon redemption thereof, or impair the
right of any Noteholder to institute suit for the payment thereof, or make the
principal thereof or interest or premium, if any, thereon payable in any coin or
currency other than that provided in the Notes, or modify the provisions of the
Indenture with respect to the subordination of the Notes in a manner adverse to
the Noteholders in any material respect, or change the obligation of the Company
to redeem any Note upon the happening of a Fundamental Change (as defined in the
Indenture) in a manner adverse to the holder of the Notes, or impair the right
to convert the Notes into common stock, par value $1.00 per share ("Common
Stock"), of Texas Instruments Incorporated, a Delaware corporation ("Parent"),
subject to the terms set forth in the Indenture, including Section 15.6 thereof,
without the consent of the holder of each Note so affected or (ii) reduce the
aforesaid percentage of Notes, the holders of which are required to consent to
any such supplemental indenture, without the consent of the holders of all Notes
then outstanding. Subject to the provisions of the Indenture, the holders of a
majority in aggregate principal amount of the Notes at the time outstanding may
on behalf of the holders of all of the Notes waive any past default or Event of
Default under the Indenture and its

                                      A-5
<PAGE>   47

consequences except a default in the payment of interest (including Liquidated
Damages, if any) or any premium on, or the principal of, any of the Notes, or a
failure by the Company and Parent to convert any Notes into Common Stock, or a
default in the payment of the redemption price pursuant to Article Three of the
Indenture, or a default in respect of a covenant or provisions of the Indenture
which under Article Eleven of the Indenture cannot be modified without the
consent of the holders of each or all Notes then outstanding or affected
thereby. Any such consent or waiver by the holder of this Note (unless revoked
as provided in the Indenture) shall be conclusive and binding upon such holder
and upon all future holders and owners of this Note and any Notes which may be
issued in exchange or substitution hereof, irrespective of whether or not any
notation thereof is made upon this Note or such other Notes.

         The indebtedness evidenced by the Notes is, to the extent and in the
manner provided in the Indenture, expressly subordinated and subject in right of
payment to the prior payment in full of all Senior Indebtedness of the Company,
whether outstanding at the date of the Indenture or thereafter incurred, and
this Note is issued subject to the provisions of the Indenture with respect to
such subordination. Each holder of this Note, by accepting the same, agrees to
and shall be bound by such provisions and authorizes the Trustee on its behalf
to take such action as may be necessary or appropriate to effectuate the
subordination so provided and appoints the Trustee his attorney-in-fact for such
purpose.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest
(including Liquidated Damages, if any) on this Note at the place, at the
respective times, at the rate and in the coin or currency herein prescribed.

         Interest on the Notes shall be computed on the basis of a 360-day year
of twelve 30-day months.

         The Notes are issuable in fully registered form, without coupons, in
denominations of $1,000 principal amount and any integral multiple of $1,000. At
the office or agency of the Company referred to on the face hereof, and in the
manner and subject to the limitations provided in the Indenture, without payment
of any service charge but with payment of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with
any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations.

         The Notes will not be redeemable at the option of the Company prior to
February 20, 2003. At any time on or after February 20, 2003, and prior to
maturity, the Notes may be redeemed at the option of the Company, in whole or in
part, upon notice as set forth in Section 3.2, at the following redemption
prices (expressed as percentages of the principal amount), together in each case
with accrued and unpaid interest, if any (including Liquidated Damages, if any)
to, but excluding, the date fixed for redemption:

                                      A-6
<PAGE>   48

<TABLE>
Period                                                         Redemption Price

<S>                                                            <C>
Beginning on February 20, 2003 and ending on February 14, 2004 .........102.429%
Beginning on February 15, 2004 and ending on February 14, 2005 .........101.821
Beginning on February 15, 2005 and ending on February 14, 2006 .........101.214
Beginning on February 15, 2006 and ending on February 14, 2007 .........100.607
</TABLE>

and 100% on February 15, 2007; provided, however, that if the date fixed for
redemption is on a February 15 or August 15, then the interest payable on such
date shall be paid to the holder of record on the preceding February 1 or August
1, respectively.

         The Company may not give notice of any redemption of the Notes if a
default in the payment of interest or premium, if any, on the Notes has occurred
and is continuing.

         The Notes are not subject to redemption through the operation of any
sinking fund.

         If a Fundamental Change occurs at any time prior to maturity of the
Notes, the Notes will be redeemable on the 30th day after notice thereof (the
"Repurchase Date") at the option of the holder of the Notes at a redemption
price equal to 100% of the principal amount thereof, together with accrued
interest to (but excluding) the date of redemption; provided, however, that, if
such Repurchase Date is a February 15 or August 15, the interest payable on such
date shall be paid to the holder of record of the Notes on the preceding
February 1 or August 1, respectively. The Notes will be redeemable in multiples
of $1,000 principal amount. The Company shall mail to all holders of record of
the Notes a notice of the occurrence of a Fundamental Change and of the
redemption right arising as a result thereof on or before the 10th day after the
occurrence of such Fundamental Change. For this Note to be so redeemed at the
option of the holder, the Company must receive at the office or agency of the
Company maintained for that purpose in accordance with the terms of the
Indenture, this Note with the form entitled "Option to Elect Repayment Upon a
Fundamental Change" on the reverse hereof duly completed, together with this
Note, duly endorsed for transfer, on or before the 30th day after the date of
such notice of a Fundamental Change (or if such 30th day is not a Business Day,
the immediately succeeding Business Day).

         Subject to the provisions of the Indenture, the holder hereof has the
right, at its option, at any time after the original issuance of any Notes
through the close of business on the final maturity date of the Notes, or, as to
all or any portion hereof called for redemption, prior to the close of business
on the Business Day immediately preceding the date fixed for redemption (unless
the Company shall default in payment due upon redemption thereof), to convert
the principal hereof or any portion of such principal which is $1,000 or an
integral multiple thereof into that number of shares of Common Stock (as such
shares shall be constituted at the date of conversion) obtained by dividing the
principal amount of this Note or portion thereof to be converted by the
Conversion Price of $44.45, as may be adjusted from time to time as provided in
the Indenture, upon surrender of this Note, together with a conversion notice as
provided in the Indenture (the form entitled "Conversion Notice" on the reverse
hereof), to the Company at the office or

                                      A-7
<PAGE>   49

agency of the Company maintained for that purpose in accordance with the terms
of the Indenture, or at the option of such holder, the Corporate Trust Office,
and, unless the shares issuable on conversion are to be issued in the same name
as this Note, duly endorsed by, or accompanied by instruments of transfer in
form satisfactory to the Company duly executed by, the holder or by his duly
authorized attorney. No adjustment in respect of interest on any Note converted
or dividends on any shares issued upon conversion of such Note will be made upon
any conversion except as set forth in the next sentence. If this Note (or
portion hereof) is surrendered for conversion during the period from the close
of business on any record date for the payment of interest to the close of
business on the Business Day preceding the following interest payment date and
either (x) has not been called for redemption on a redemption date that occurs
during such period or (y) is not to be redeemed in connection with a Fundamental
Change on a Repurchase Date that occurs during such period, this Note (or
portion hereof being converted) must be accompanied by an amount, in New York
Clearing House funds or other funds acceptable to the Company, equal to the
interest payable on such interest payment date on the principal amount being
converted; provided, however, that no such payment shall be required if there
shall exist at the time of conversion a default in the payment of interest on
the Notes. No fractional shares will be issued upon any conversion, but an
adjustment and payment in cash will be made, as provided in the Indenture, in
respect of any fraction of a share which would otherwise be issuable upon the
surrender of any Note or Notes for conversion. A Note in respect of which a
holder is exercising its right to require redemption upon a Fundamental Change
may be converted only if such holder withdraws its election to exercise such
right in accordance with the terms of the Indenture. Any Notes called for
redemption, unless surrendered for conversion by the holders thereof on or
before the close of business on the Business Day preceding the date fixed for
redemption, may be deemed to be redeemed from the holders of such Notes for an
amount equal to the applicable redemption price, together with accrued but
unpaid interest (including Liquidated Damages, if any) to (but excluding) the
date fixed for redemption, by one or more investment banks or other purchasers
who may agree with the Company (i) to purchase such Notes from the holders
thereof and convert them into shares of Common Stock and (ii) to make payment
for such Notes as aforesaid to the Trustee in trust for the holders.

         Upon due presentment for registration of transfer of this Note at the
office or agency of the Company maintained for that purpose in accordance with
the terms of the Indenture, a new Note or Notes of authorized denominations for
an equal aggregate principal amount will be issued to the transferee in exchange
thereof; subject to the limitations provided in the Indenture, without charge
except for any tax, assessment or other governmental charge imposed in
connection therewith.

         The Parent, Company, the Trustee, any authenticating agent, any paying
agent, any conversion agent and any Note registrar may deem and treat the
registered holder hereof as the absolute owner of this Note (whether or not this
Note shall be overdue and notwithstanding any notation of ownership or other
writing hereon made by anyone other than the Company or any Note registrar) for
the purpose of receiving payment hereof, or on account hereof, for the
conversion hereof and for all other purposes, and none of Parent, Company, the
Trustee, any other authenticating agent, any paying agent, other

                                      A-8
<PAGE>   50

conversion agent or any Note registrar shall be affected by any notice to the
contrary. All payments made to or upon the order of such registered holder
shall, to the extent of the sum or sums paid, satisfy and discharge liability
for monies payable on this Note.

         Except as set forth in Article Seventeen of the Indenture, no recourse
for the payment of the principal of or any premium or interest on this Note, or
for any claim based hereon or otherwise in respect hereof, and no recourse under
or upon any obligation, covenant or agreement of the Company or Parent in the
Indenture or any supplemental indenture or in any Note, or because of the
creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, agent, officer or director or subsidiary,
as such, past, present or future, of the Company, Parent or of any successor
corporation, either directly or through the Company, Parent or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment or penalty or otherwise, all such liability
being, by acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

         This Note shall be deemed to be a contract made under the laws of New
York, and for all purposes shall be construed in accordance with the laws of New
York, without regard to principles of conflicts of laws.

         Terms used in this Note and defined in the Indenture are used herein as
therein defined.

                                      A-9
<PAGE>   51

                                  ABBREVIATIONS

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

         TEN COM - as tenants in common UNIF GIFT MIN ACT - _______ Custodian

________ TEN ENT - as tenant by the entireties (Cust)

         (Minor) JT TEN - as joint tenants with right of survivorship and not as
under Uniform Gifts to Minors Act tenants in common ___________________ (State)

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

                                      A-10
<PAGE>   52

                                CONVERSION NOTICE

TO:              TEXAS INSTRUMENTS TUCSON CORPORATION
                 UNITED STATES TRUST COMPANY OF NEW YORK

         The undersigned registered owner of this Note hereby irrevocably
exercises the option to convert this Note, or the portion thereof (which is
$1,000 or an integral multiple thereof) below designated, into shares of common
stock, par value $1.00 per share ("Common Stock"), of Texas Instruments
Incorporated in accordance with the terms of the Indenture referred to in this
Note, and directs that the shares issuable and deliverable upon such conversion,
together with any check in payment for fractional shares and any Notes
representing any unconverted principal amount hereof, be issued and delivered to
the registered holder hereof unless a different name has been indicated below.
If shares or any portion of this Note not converted are to be issued in the name
of a person other than the undersigned, the undersigned will provide the
appropriate information below and pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Note.

Dated:
      --------------------

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

--------------------------
Signature(s)

         Signatures(s) must be guaranteed by an "eligible guarantor institution"
         meeting the requirements of the Note registrar, which requirements
         include membership or participation in the Security Transfer Agent
         Medallion Program ("STAMP") or such other "signature guarantee program"
         as may be-determined by the Note registrar in addition to, or in
         substitution for, STAMP, all in accordance with the Securities Exchange
         Act of 1934, as amended.

         ---------------------------------
         Signature Guarantee

                                      A-11
<PAGE>   53

         Fill in the registration of shares of Common Stock if to be issued, and
Notes if to be delivered, other than to and in the name of the registered
holder:

----------------------------------------
(Name)

----------------------------------------
(Street Address)

----------------------------------------
(City, State and Zip Code)

----------------------------------------
Please print name and address

Principal amount to be converted (if less than all):

$
 --------
Social Security or Other Taxpayer
Identification Number:

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

                                      A-12
<PAGE>   54

                            OPTION TO ELECT REPAYMENT

                            UPON A FUNDAMENTAL CHANGE

TO:                   TEXAS INSTRUMENTS TUCSON CORPORATION
                     UNITED STATES TRUST COMPANY OF NEW YORK

         The undersigned registered owner of this Note hereby irrevocably
acknowledges receipt of a notice from Texas Instruments Tucson Corporation (the
"Company") as to the occurrence of a Fundamental Change with respect to Texas
Instruments Incorporated, a Delaware corporation, and requests and instructs the
Company to repay the entire principal amount of this Note, 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 Note at the price
of 100% of such entire principal amount or portion thereof, together with
accrued interest to, but excluding, such repayment date, to the registered
holder hereof.

Dated:
      --------------------

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

--------------------------
Signature(s)

                                         NOTICE: The above signatures
                                         of the holder(s) hereof must
                                         correspond with the name as
                                         written upon the face of the
                                         Note in every particular
                                         without alteration or
                                         enlargement or any change
                                         whatever. Principal amount to
                                         be repaid (if less than all):

                                         $
                                          --------------------------------------

                                         ---------------------------------------
                                         Social Security or Other Taxpayer
                                         Identification Number

                                      A-13
<PAGE>   55

                                   ASSIGNMENT

         For value received ___________ hereby sell(s) assign(s) and transfer(s)
unto _______________________________ (Please insert a security or other Taxpayer
Identification Number of assignee) the within Note, and hereby irrevocably
constitutes and appoints ___________________________ attorney to transfer said
Note on the books of the Company, with full power of substitution in the
premises.

         In connection with any transfer of the Note prior to the expiration of
the holding period applicable to sales thereof under Rule 144(k) under the
Securities Act (or any successor provision) (other than any transfer pursuant to
a registration statement that has been declared effective under the Securities
Act), the undersigned confirms that such Note is being transferred:

         [ ]   To Texas Instruments Incorporated or a subsidiary thereof; or

         [ ]   Inside the United States pursuant to and in compliance with Rule
               144A under the Securities Act of 1933, as amended; or

         [ ]   Inside the United States to an Institutional Accredited Investor
               pursuant to and in compliance with the Securities Act of 1933, as
               amended; or

         [ ]   Outside the Unites States in compliance with Rule 904 under the
               Securities Act;

               or

         [ ]   Pursuant to and in compliance with Rule 144 under the Securities
               Act of 1933, as amended;

and unless the box below is checked, the undersigned confirms that such Note is
not being transferred to an "affiliate" of the Company as defined in Rule 144
under the Securities Act of 1933, as amended (an "Affiliate").

         [ ]      The transferee is an Affiliate of the Company.

Dated:
      ----------------------

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

                                    --------------------------------------------
                                    Signature(s)

                                    Signature(s) must be guaranteed by an
                                    "eligible guarantor institution" meeting the
                                    requirements of the Note registrar, which
                                    requirements include membership or
                                    participation in the Security Transfer Agent
                                    Medallion Program ("STAMP") or such other
                                    "signature guarantee program" as may be
                                    determined by the Note registrar in addition
                                    to, or in substitution for, STAMP, all in
                                    accordance with the Securities Exchange Act
                                    of 1934, as amended.

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

                                    Signature Guarantee

                                      A-14
<PAGE>   56

NOTICE: The signature of the conversion notice, the option to elect repayment
upon a Fundamental Change or the assignment must correspond with the name as
written upon the face of the Note in every particular without alteration or
enlargement or any change whatever.

                                      A-15<PAGE>   1
                                                                     EXHIBIT 4.2

                                 MATRITECH, INC.

                      INVESTOR RELATIONS WARRANT AGREEMENT

                              Dated: July 14, 2000

<PAGE>   2

     THIS WARRANT AGREEMENT (this "AGREEMENT") dated July 14, 2000 is made and
entered into by and between Matritech, Inc., a corporation organized under the
laws of the State of Delaware (the "COMPANY"), and the individuals set forth on
EXHIBIT A hereto (collectively, the "WARRANTHOLDERS" or "HOLDERS," individually,
each a "WARRANTHOLDER" or "HOLDER") .

     Subject to the terms and conditions hereof, the Company agrees to issue to
each Warrantholder warrants as hereinafter described (the "WARRANTS") to
purchase the shares of the common stock, par value $.01 per share (the "COMMON
STOCK"), of the Company set forth opposite each Warrantholder's respective name
on EXHIBIT A. As used herein, the terms "SHARE" or "SHARES" shall mean
collectively the Common Stock issuable upon exercise of the Warrants together
with any other securities issuable upon such exercise as provided in Section 8
of this Agreement. Except where otherwise specified, the terms of this Agreement
shall apply to each Warrantholder.

     For the purpose of defining the terms and provisions of the Warrants and
the respective rights and obligations thereunder, the Company and each
Warrantholder, for value received, hereby agree as follows:

     Section 1. TRANSFERABILITY AND FORM OF WARRANTS.

     1.1. REGISTRATION. The Warrants shall be numbered and shall be registered
on the books of the Company when issued, in accordance with Delaware corporate
practice.

     1.2. TRANSFER. The Warrants shall be transferable only on the books of the
Company maintained at its principal office in Newton, Massachusetts, or wherever
its principal office may then be located, upon delivery thereof duly endorsed by
the Warrantholder seeking such transfer or by its duly authorized attorney or
representative, accompanied by proper evidence of succession, assignment or
authority to transfer. Upon any registration of transfer, the Company shall
execute and deliver new Warrants to the person entitled thereto.

     1.3. LIMITATIONS ON TRANSFER OF THE WARRANTS. Subject to the provisions of
Section 11 of this Agreement, the Warrants shall not be sold, assigned,
hypothecated or otherwise transferred except to any person acquiring the
Warrants upon the death of a Warrantholder by will or the laws of descent and
distribution. The term "Warrants" shall include any and all warrants outstanding
pursuant to this Agreement, including those evidenced by a certificate or
certificates issued upon division, exchange, substitution or transfer pursuant
to this Agreement.

     1.4. FORM OF WARRANTS. The form of certificate evidencing the Warrants
shall be substantially as set forth in EXHIBIT B attached hereto. Certificates
evidencing the Warrants shall be executed on behalf of the Company by its
Chairman, President or by any Vice President, shall be attested to by its
Secretary or any Assistant Secretary, and shall be dated as of the date of
execution thereof.

     1.5. LEGEND ON COMMON STOCK. The Warrants, and the Shares have not been
registered under the Securities Act of 1933, as amended (the "ACT"). Each
certificate for

<PAGE>   3

Shares shall bear the following legend unless, at the time of exercise, such
Shares are the subject of a currently effective registration statement under the
Act:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 OR THE
          SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. SUCH SECURITIES MAY
          NOT BE SOLD, ASSIGNED, EXCHANGED, HYPOTHECATED OR OTHERWISE
          TRANSFERRED IN ANY MANNER EXCEPT IN COMPLIANCE WITH SECTION 11 OF THE
          WARRANT AGREEMENT BY AND BETWEEN THE ISSUER AND THE ORIGINAL HOLDERS
          OF THESE SECURITIES DATED JULY 14, 2000."

     Any certificate issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of a public distribution pursuant to a registration statement under the Act of
the securities represented thereby) shall also bear the above legend unless, in
the opinion of the Company's counsel, the securities represented thereby need no
longer be subject to such restrictions.

     Section 2. EXCHANGE OF WARRANT CERTIFICATE. Any Warrant certificate may be
exchanged for another certificate or certificates entitling a Warrantholder to
purchase a like aggregate number of Shares as the certificate or certificates
surrendered then entitles such Warrantholder to purchase. Any Warrantholder
desiring to exchange a Warrant certificate shall make such request in writing
delivered to the Company, and shall surrender, properly endorsed, the
certificate evidencing the Warrant to be so exchanged. Thereupon, the Company
shall execute and deliver to the person entitled thereto a new Warrant
certificate as so requested.

     Section 3. TERM OF WARRANTS; EXERCISE OF WARRANTS

     (a)  Subject to the terms of this Agreement, each Warrantholder shall have
the right, at any time during the period commencing at 9:00 a.m., Eastern Time,
on July 14, 2000 (the "COMMENCEMENT DATE") and ending at 5:00 p.m., Eastern
Time, on July 14, 2005 (the "TERMINATION DATE"), to purchase from the Company up
to the number of fully paid and nonassessable Shares which such Warrantholder
may at the time be entitled to purchase pursuant to this Agreement, upon
surrender to the Company at its principal office of the certificates evidencing
the Warrants to be exercised, with the purchase form on the reverse thereof duly
completed and signed, and upon payment to the Company of the Warrant Price (as
defined in and determined in accordance with the provisions of this Section 3
and Sections 7 and 8 hereof) for the number of Shares in respect of which such
Warrants are then exercised, but in no event for fewer than 100 Shares (unless
fewer than an aggregate of 100 Shares are then purchasable under all outstanding
Warrants held of record by a Warrantholder). Payment of the aggregate Warrant
Price shall be made in cash or by certified or cashier's check, in next day
funds, or any combination thereof.

                                      -2-
<PAGE>   4

     (b)  Upon surrender of Warrant certificates and payment of the Warrant
Price, the Company shall issue and cause to be delivered with all reasonable
dispatch to or upon the written order of a Warrantholder, and (subject to
Section 11 hereof) in such name or names as such Warrantholder may designate, a
certificate or certificates for the number of full Shares so acquired upon the
exercise of the Warrant, together with cash, as provided in Section 9 hereof, in
respect of any fractional Shares otherwise issuable upon such surrender. Such
certificate or certificates shall be deemed to have been issued and any person
so designated to be named therein shall be deemed to have become a holder of
record of such Shares as of the date of surrender of the Warrants being
exercised and payment of the Warrant Price notwithstanding that the certificate
or certificates representing such securities shall not actually have been
delivered or that the stock transfer books of the Company shall then be closed.
The Warrants shall be exercisable at the election of a Warrantholder either in
full or from time to time in part and, in the event that a certificate
evidencing Warrants is exercised in respect of fewer than all of the Shares
specified therein at any time prior to the Termination Date, a new certificate
evidencing the remaining portion of the Warrants shall be issued by the Company.

     Section 4. PAYMENT OF TAXES. The Company will pay all taxes and fees, if
any (other than any income taxes that may be imposed on the exercise of the
Warrants or on the subsequent sale of the Shares), attributable to the initial
issuance of the Warrants or the issuance of Shares upon exercise of the
Warrants; provided that the Company shall not be required to pay any tax or fee
which may be payable in respect of any secondary transfer of the Warrants or
such Shares.

     Section 5. MUTILATED OR MISSING WARRANTS. In case the certificate or
certificates evidencing any Warrants shall be mutilated, lost, stolen or
destroyed, the Company shall, at the request of the affected Warrantholder,
issue and deliver in exchange and substitution for and upon cancellation of the
mutilated certificate or certificates, or in lieu of and substitution for the
certificate or certificates lost, stolen or destroyed, a new Warrant certificate
or certificates of like tenor and representing an equivalent right or interest,
but only upon receipt of evidence satisfactory to the Company of the loss, theft
or destruction of such Warrant and, if requested, at the cost and expense of the
Warrantholder, a bond of indemnity in form and amount satisfactory to the
Company. Applicants for such substitute Warrants certificate shall also comply
with such other reasonable regulations as the Company may prescribe.

     Section 6. RESERVATION OF COMMON STOCK. There has been reserved, and the
Company shall at all times keep reserved so long as any Warrants remain
outstanding, out of its authorized share capital, such number of Common Stock as
shall be subject to purchase under all outstanding Warrants. Every transfer
agent for the Common Stock and other securities of the Company issuable upon the
exercise of Warrants will be irrevocably authorized and directed at all times to
reserve such number of authorized shares of Common Stock and other securities as
shall be requisite for such purpose. The Company will keep a copy of this
Agreement on file with every transfer agent for the Common Stock and other
securities of the Company issuable upon the exercise of the Warrants. The
Company will supply every such transfer agent with duly executed stock

                                      -3-
<PAGE>   5

and other certificates, as appropriate, for such purpose and will provide or
otherwise make available any cash which may be payable as provided in Section 9
hereof.

     Section 7. WARRANT PRICE. "WARRANT PRICE" shall mean the price per Share at
which Shares shall at any time be purchasable upon the exercise of the Warrants.
The initial Warrant Price shall be $2.50, subject to adjustment pursuant to
Section 8 hereof.

     Section 8. ADJUSTMENT OF NUMBER AND KIND OF SECURITIES. The number and kind
of securities purchasable upon the exercise of the Warrants and the Warrant
Price shall be subject to adjustment from time to time upon the happening of
certain events, as follows:

     8.1. ADJUSTMENTS.

          (a)  In case the Company shall (i) pay a dividend in Common Stock or
     make a distribution in Common Stock, (ii) subdivide its outstanding Common
     Stock, (iii) combine its outstanding Common Stock into a smaller number of
     shares of Common Stock, or (iv) issue, by reclassification of its Common
     Stock, other securities of the Company, the number of Shares or other
     securities purchasable upon exercise of the Warrants immediately prior
     thereto shall be adjusted so that each Warrantholder shall be entitled to
     receive the kind and number of shares of Common Stock or other securities
     of the Company which it would have owned or would have been entitled to
     receive immediately after the happening of any of the events described
     above, had the Warrants been exercised immediately prior to the happening
     of such event or any record date with respect thereto. Any adjustment made
     pursuant to this subsection 8.1(a) shall become effective immediately on
     the effective date of such event retroactive to the record date, if any,
     for such event.

          (b)  In case the Company shall issue rights, options, warrants or
     convertible securities to all or substantially all holders of its Common
     Stock without any charge to such holders, entitling them to subscribe for
     or purchase shares of Common Stock at a price per share which, at the
     record date mentioned below, is lower than the then effective Warrant Price
     (calculated pursuant to this Section 8), the number of Shares thereafter
     purchasable upon the exercise of each Warrant shall be determined by
     multiplying the number of Shares theretofore purchasable upon exercise of
     the Warrant by a fraction, of which the numerator shall be the number of
     shares of Common Stock outstanding immediately prior to the issuance of
     such rights, options, warrants or convertible securities plus the number of
     additional Common Stock offered for subscription or purchase, and of which
     the denominator shall be the number of shares of Common Stock outstanding
     immediately prior to the issuance of such rights, options, warrants or
     convertible securities plus the number of shares which the aggregate
     offering price of the total number of shares offered would purchase at such
     then effective Warrant Price. Such adjustment shall be made whenever such
     rights, options, warrants or convertible securities are issued, and shall
     become effective immediately and retroactive to the record date for the
     determination of shareholders entitled to receive such rights, options,
     warrants or convertible

                                      -4-
<PAGE>   6

     securities, provided no such adjustment shall be made for rights issued in
     connection with what is customarily referred to as a "poison pill" or
     "shareholder rights plan."

          (c)  In case the Company shall distribute to all or substantially all
     holders of its Common Stock evidences of its indebtedness or assets
     (excluding cash dividends or distributions out of earnings) or rights,
     options, warrants or convertible securities containing the right to
     subscribe for or purchase Shares (excluding those referred to in subsection
     8.1(b) above and rights in connection with a shareholder rights plan), then
     in each case the number of Shares thereafter purchasable upon the exercise
     of the Warrants shall be determined by multiplying the number of Shares
     theretofore purchasable upon exercise of the Warrants by a fraction, of
     which the numerator shall be the then effective Warrant Price as of the
     date of such distribution calculated pursuant to this Section 8, and of
     which the denominator shall be such then effective Warrant Price on such
     date minus the then fair value (determined as provided in subparagraph (f)
     below) of the portion of the assets or evidences of indebtedness so
     distributed or of such subscription rights, options, warrants or
     convertible securities applicable to one share. Such adjustment shall be
     made whenever any such distribution is made and shall become effective on
     the date of distribution retroactive to the record date for the
     determination of shareholders entitled to receive such distribution.

          (d)  No adjustment in the number of Shares purchasable pursuant to the
     Warrants shall be required unless such adjustment would require an increase
     or decrease of at least one percent in the number of Shares then
     purchasable upon the exercise of the Warrants or, if the Warrants are not
     then exercisable, the number of Shares purchasable upon the exercise of the
     Warrants on the first date thereafter that the Warrants become exercisable;
     provided that any adjustments which by reason of this subsection 8.1(d) are
     not required to be made immediately shall be carried forward and taken into
     account in any subsequent adjustment.

          (e)  Whenever the number of Shares purchasable upon the exercise of a
     Warrant is adjusted, as herein provided, the Warrant Price payable upon
     exercise of such Warrant shall be adjusted by multiplying such Warrant
     Price immediately prior to such adjustment by a fraction, of which the
     numerator shall be the number of Shares purchasable upon the exercise of
     the Warrant immediately prior to such adjustment, and of which the
     denominator shall be the number of Shares so purchasable upon the exercise
     of the Warrant immediately thereafter.

          (f)  Whenever the number of Shares purchasable upon the exercise of
     Warrants is adjusted as herein provided, the Company shall cause to be
     promptly mailed to the Warrantholders by first class mail, postage prepaid,
     notice of such adjustment and a certificate of the chief financial officer
     of the Company setting forth the number of Shares purchasable upon the
     exercise of the Warrants after such adjustment, a brief statement of the
     facts requiring such adjustment and the computation by which such
     adjustment was made.

                                      -5-
<PAGE>   7

          (g)  For the purpose of this subsection 8.1, the term Common Stock
     shall mean (i) the class of Common Stock designated as the Common Stock of
     the Company at the date of this Agreement, or (ii) any other class of
     shares resulting from successive changes or reclassification of such Common
     Stock consisting solely of changes in par value, or from par value to no
     par value, or from no par value to par value. In the event that at any
     time, as a result of an adjustment made pursuant to this Section 8, a
     Warrantholder shall become entitled to purchase any securities of the
     Company other than Common Stock, (i) if the Warrantholders' right to
     purchase is on any other basis than that available to all holders of the
     Common Stock, the Company shall obtain an opinion of an independent
     investment banking firm valuing such other securities and (ii) thereafter
     the number of such other securities so purchasable upon exercise of the
     Warrants shall be subject to adjustment from time to time in a manner and
     on terms as nearly equivalent as practicable to the provisions with respect
     to the Common Stock contained in this Section 8.

          (h)  Upon the expiration of any rights, options, warrants or
     conversion privileges, if such shall not have been exercised, the number of
     Shares purchasable upon exercise of the Warrants, to the extent the
     Warrants have not then been exercised, shall, upon such expiration, be
     readjusted and shall thereafter be such as they would have been had they
     been originally adjusted (or had the original adjustment not been required,
     as the case may be) on the basis of (A) the fact that the only shares of
     Common Stock so issued were the shares of Common Stock, if any, actually
     issued or sold upon the exercise of such rights, options, warrants or
     conversion privileges, and (B) the fact that such shares of Common Stock,
     if any, were issued or sold for the consideration actually received by the
     Company upon such exercise plus the consideration, if any, actually
     received by the Company for the issuance, sale or grant of all such rights,
     options, warrants or conversion privileges whether or not exercised;
     provided, however, that no such readjustment shall have the effect of
     decreasing the number of Shares purchasable upon exercise of the Warrants
     by an amount in excess of the amount of the adjustment initially made in
     respect of the issuance, sale or grant of such rights, options, warrants or
     conversion privileges.

     8.2. NO ADJUSTMENT FOR DIVIDENDS. Except as provided in subsection 8.1, no
adjustment to the Warrants or any provision or condition thereof in respect of
any dividends or distributions out of earnings shall be made during the term of
the Warrants or upon the exercise of Warrants.

     8.3. NO ADJUSTMENT IN CERTAIN CASES. No adjustments to the Warrants or any
provision or condition thereof shall be made pursuant to Section 3 or Section 8
hereof in connection with (i) the issuance of Common Stock upon exercise of the
Warrants, (ii) the grant or exercise of the options to purchase Common Stock
under the Company's Stock Plans or any future option plan for the sole benefit
of the Company's employees, consultants and directors, or (iii) the issuance of
securities in an equity financing regardless of the offering price.

                                      -6-
<PAGE>   8

     8.4. PRESERVATION OF PURCHASE RIGHTS UPON RECLASSIFICATION, CONSOLIDATION,
ETC. In case of any consolidation of the Company with or merger of the Company
into another entity or in case of any sale or conveyance to another entity of
the property, assets or business of the Company as an entirety or substantially
as an entirety, the Company or such successor or purchasing entity, as the case
may be, shall execute with the Warrantholders an agreement that the
Warrantholders shall have the right thereafter, upon exercise of the Warrants
and payment of the Warrant Price in effect immediately prior to such
consolidation, merger or sale, to purchase the kind and amount of shares and
other securities and property which it would have been entitled to receive after
the happening of such consolidation, merger, sale or conveyance had the Warrants
been exercised immediately prior thereto. In the event of a merger described in
Section 368(a)(2)(E) of the Internal Revenue Code of 1986 (or any successor
provision), in which the Company is the surviving corporation, the right to
purchase Shares under the Warrants shall terminate on the date of such merger
and thereupon the Warrants shall become null and void, but only if the
controlling corporation (after such event) shall agree to substitute for the
Warrants its warrants entitling the holder thereof to purchase the kind and
amount of shares and other securities and property which it would have been
entitled to receive had the Warrants been exercised immediately prior to such
merger. Any such agreements referred to in this subsection 8.4 shall provide for
adjustments, which shall be as nearly equivalent as may be practicable to the
adjustments provided for in Section 8 hereof, and shall contain substantially
the same terms, conditions and provisions as are contained herein immediately
prior to such event. The provisions of this subsection 8.4 shall similarly apply
to successive consolidations, mergers, sales or conveyances.

     8.5. NOMINAL VALUE OF COMMON STOCK. Before taking any action which would
cause an adjustment effectively reducing the portion of the Warrant Price
allocable to each Share below the then nominal value per Share issuable upon
exercise of the Warrants, the Company will take any corporate action which may,
in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue fully paid and nonassessable Shares upon exercise of
the Warrants.

     8.6. INDEPENDENT PUBLIC ACCOUNTANTS. The Company may retain a firm of
independent public accountants of recognized national standing in the United
States (which may be any such firm regularly employed by the Company) to make
any computation required under this Section 8, and a certificate signed by such
firm shall be evidence of the correctness of any computation made under this
Section 8.

     8.7. STATEMENT ON WARRANT CERTIFICATES. Irrespective of any adjustments in
the number of securities issuable upon exercise of Warrants, Warrant
certificates theretofore or thereafter issued may continue to express the same
number of securities as are stated in the similar Warrant certificates initially
issuable pursuant to this Agreement. However, the Company may, at any time in
its reasonable discretion, make any change in the form of Warrant certificate
that it may deem appropriate and that does not affect the substance thereof; and
any Warrant certificate hereafter issued, whether upon registration of transfer
of, or in exchange or substitution for, an outstanding Warrant certificate, may
be in the form so changed.

                                      -7-
<PAGE>   9

     Section 9. FRACTIONAL INTERESTS; MARKET PRICE. The Company shall not be
required to issue fractional Shares upon the exercise of any Warrant. If any
fraction of a Share would, except for the provisions of this Section 9, be
issuable on the exercise of any Warrant (or specified portion thereof), the
Company shall pay an amount in cash equal to the Market Price multiplied by such
fraction. For all purposes of this Agreement, the term Market Price as of any
specified date shall mean (i) if the Common Stock is traded in the United States
over-the-counter market and not on the Nasdaq System or on any United States
national securities exchange, the average of the mean between the bid and asked
prices of the Common Stock on each of the five consecutive trading days
immediately preceding the date in question, as reported by the National
Quotation Bureau Incorporated or an equivalent generally accepted reporting
service, or (ii) if the Common Stock is traded on the Nasdaq System or on one or
more United States national securities exchanges, the average, for the five
consecutive trading days immediately preceding the date in question, of the
daily closing price of the Common Stock on the Nasdaq System or the daily
closing price for consolidated transactions on the principal United States
national securities exchange on which the Common Stock is listed, or (iii) if
the Common Stock is not traded in the United States over-the-counter market, the
Nasdaq System or any United States national securities exchange, the average,
for the five consecutive trading days immediately preceding the date in
question, of the daily closing price of the Common Stock on the principal
non-United States exchange on which the Common Stock is listed. The daily
closing price referred to in clauses (ii) and (iii) above shall be the last
reported sale price on the day in question or, if no reported sale takes place
on such day, the average of the reported closing bid and asked prices.

     Section 10. NO RIGHTS AS SHAREHOLDER; NOTICES TO WARRANTHOLDERS. Nothing
contained in this Agreement or in the Warrants shall be construed as conferring
upon the Warrantholder or any transferee of a Warrant any rights as a
shareholder of the Company, including (without limitation) the right to vote,
receive dividends, consent or receive notices as a shareholder in respect of any
meeting of shareholders for the election of directors of the Company or any
other matter. If, however, at any time prior to the expiration of the Warrants
and prior to their exercise in full, any one or more of the following events
shall occur:

          (a)  any action which would require an adjustment pursuant to Section
     8.1 or 8.4; or

          (b)  a dissolution, liquidation or winding up of the Company (other
     than in connection with a consolidation, merger or sale of its property,
     assets and business as an entirety or substantially as an entirety) shall
     be proposed;

then the Company shall give notice in writing of such event to each of the
Warrantholders, as provided in Section 14 hereof, at least 20 days prior to the
date fixed as a record date or the date of closing the transfer books for the
determination of the shareholders entitled to any relevant dividend,
distribution, subscription rights or other rights or for the determination of
shareholders entitled to vote on such proposed dissolution, liquidation or
winding up. Such notice shall specify such record date or the

                                      -8-
<PAGE>   10

date of closing the transfer books, as the case may be. Failure to mail or
receive such notice or any defect therein shall not affect the validity of any
action taken with respect thereto.

     Section 11. RESTRICTIONS ON TRANSFER; REGISTRATION RIGHTS.

          (a)  There shall be no transfers of Warrants except as permitted
pursuant to Section 1.3 hereof. If any Warrantholder proposes to sell or
otherwise transfer any Shares, and if such Shares are not then registered for
resale pursuant to an effective registration statement under the Act, the
Warrantholder proposing to make such transfer shall give written notice to the
Company describing briefly the manner in which any such proposed transfer is to
be made; and no such transfer shall be made unless the Company shall notify such
Warrantholder that in the opinion counsel reasonably satisfactory to such
Warrantholder, registration under the Act is not required with respect to such
transfer.

          (b)  Subject to the provisions set forth in this Section 11, if at any
time during the period prior to the Termination Date the Shares are not subject
to an effective registration statement under the Act (a "REGISTRATION
STATEMENT"), the Company shall be obligated to the Warrantholders and the
registered holders of the Shares issued upon exercise of the Warrants
(collectively with the Warrantholders, the "HOLDERS"), as follows:

               (i)  Whenever during the five-year period beginning on the
     Commencement Date and ending on the Termination Date, the Company proposes
     to file with the Securities and Exchange Commission (the "COMMISSION") a
     Registration Statement (other than a registration statement on Form S-8 (or
     other form) relating solely to securities issued pursuant to an employee
     benefit plan, or a registration statement on Form F-4 or S-4 or any
     successor form thereto), the Company shall, at least 30 days prior to each
     such proposed filing, give written notice (the "PIGGYBACK NOTICE") thereof
     to the Holders at their respective addresses appearing on the records of
     the Company, and shall offer to include and shall include in such filing
     any Shares as to which written requests (the "PIGGYBACK REQUEST") for such
     inclusion are received by the Company from Holders not more than 20 days
     after such Piggyback Notice is mailed to the Holders. The Shares which are
     the subject of a valid Piggyback Request from Holders are hereinafter
     referred to as the "PIGGYBACK SHARES." If such registration statement
     relates in whole or in part to an underwritten public offering of the
     Common Stock by the Company, the right of any Holder to registration
     pursuant to this Section 11(b) shall be conditioned upon such Holder's
     participation in any underwriting of the Company's public offering. All
     Holders proposing to distribute their Piggyback Shares through such
     underwriting shall (together with the Company and other holders of Common
     Stock participating in such underwriting) enter into an underwriting
     agreement in customary form with the underwriter or underwriters selected
     for such underwriting by the Company. In addition, if, after the number of
     Piggyback Shares is

                                      -9-
<PAGE>   11

     determined, the managing underwriter of such offering determines that
     marketing factors require a limitation on the number of shares of Common
     Stock to be underwritten other than those to be offered by the Company for
     its own account, the managing underwriter may exclude any or all of the
     Piggyback Shares from such registration statement and underwriting, but
     only to the extent that the Company excludes Common Stock which other
     shareholders of the Company have requested the Company to include in such
     registration statement and underwriting pursuant to "piggyback rights"
     similar to those granted in this Section 11(b) (such other Common Stock
     which is the subject of such requests are hereinafter referred to as "OTHER
     PIGGYBACK SHARES"). In the event that any Piggyback Shares are so excluded,
     the number of Piggyback Shares and Other Piggyback Shares that shall be
     included in such registration statement and underwriting shall be allocated
     equally among all Holders and the holders of Other Piggyback Shares in
     proportion, as nearly as practicable, to the total number of Piggyback
     Shares and Other Piggyback Shares. The rights granted to a Holder under
     this subparagraph shall terminate upon the failure by such Holder to submit
     a valid Piggyback Request to the Company upon receipt of a Piggyback
     Notice.

               (ii) In addition to any Registration Statement pursuant to
     subparagraph (i) above, during the five-year period beginning on the
     Commencement Date and ending on the Termination Date, the Company shall, as
     promptly as practicable (but in any event within 75 days), after receipt of
     a written request (the "REGISTRATION REQUEST") by a Holder or Holders
     holding of record (or having the right to acquire upon exercise of
     Warrants) at least 75% of the total number of shares of Common Stock
     issuable upon exercise of the Warrants, prepare and file with the
     Commission at the Holders' expense a Registration Statement, and (if
     required) any related filing with any State securities regulator,
     sufficient to permit the public offering of the Shares covered by the
     Registration Request. Within ten days of the Company's receipt of a
     Registration Request, it shall give written notice thereof to the Holders
     who did not join in the Registration Request, at their respective addresses
     appearing on the records of the Company, and shall offer to include and
     shall include in such Registration Statement any Shares as to which written
     requests for such inclusion are received by the Company from such Holders
     not more than 20 days after the Company's notice is mailed to such Holders.
     The Company will use its best efforts, at the Holders' expense, to cause
     such Registration Statement to become effective under the Act as promptly
     as practicable and to maintain such effectiveness until the earlier of the
     time that all the registered Shares have been sold or the expiration of
     three hundred sixty-five (365) days from the effective date of the
     Registration Statement. The Company shall be required to file not more than
     one Registration Statement under this Section 11(b)(ii).

          (c)  In connection with any Registration Statement filed pursuant to
paragraph (b) of this Section 11, the Company shall take such action as may be
necessary

                                      -10-
<PAGE>   12

or appropriate to comply with the securities or blue sky laws of such states of
the United States as shall reasonably be requested by the Holders, and shall do
any and all other acts which may be necessary or advisable to permit the
proposed sale or other disposition of the Shares in any such state; provided
that in no event shall the Company be obligated in connection therewith to
qualify as a foreign corporation or as a dealer in any jurisdiction where it is
not already so qualified, or to execute a general consent for service of process
in suits other than those arising out of the offer and sale of the Shares, or to
take any action which would subject it to taxation in any jurisdiction where it
is not then so subject.

          (d)  The Company's obligations under paragraph (b) of this Section 11
with respect to any Holder shall be conditioned in each instance upon the timely
receipt by the Company in writing of (i) information from such Holder as to the
proposed plan of distribution of such Holder's Shares to be included in a
Registration Statement, and (ii) such other information as may be required by
law from such holder, or its underwriter or other agent, for inclusion in such
Registration Statement.

          (e)  Each Holder will not make any sale of the Shares, pursuant to the
Registration Statement referred to in this Section 11 without effectively
causing the prospectus delivery requirements under the Securities Act to be
satisfied. Each Holder acknowledges that there may occasionally be times when
the Company must suspend the use of the prospectus forming a part of the
Registration Statement until such time as an amendment to such registration
statement has been field by the Company and declared effective by the Commission
or until the Company has amended or supplemented such prospectus. The Company
will use its best efforts to cause such amended registration statement to be
declared effective and/or to deliver such amended or supplemented prospectus as
soon as possible. Each Holder hereby covenants that it will not sell any Shares
pursuant to said prospectus without first confirming with the Company that the
Registration Statement has not been suspended, and during the period commencing
at the time at which the Company gives the Holder notice of the suspension of
the use of said prospectus and ending at the time the Company gives the Holder
notice that the Holder may thereafter effect sales pursuant to said prospectus.

          (f)  The Holders shall pay all fees, disbursements and out-of-pocket
expenses payable in connection with (i) any Registration Statement filed under
paragraph 11(b), and (ii) compliance with applicable state securities and blue
sky laws. In connection with registrations pursuant to paragraph 11(b) (i)
hereof, each Holder shall also pay its pro-rata portion of any filing fee
required by the Securities and Exchange Commission. The Company at the Holders'
expense will supply the Holders of Shares included in a Registration Statement
with copies of such Registration Statement and the prospectus included therein
and other related documents and opinions and no-action letters, in such
quantities as may be reasonably requested by such Holders. In connection with
each Registration Statement, the Company shall furnish to Holders of Shares
included therein such opinions of counsel, comfort letters of accountants,
certificates and other documents that are customary in connection with
underwritten public offerings and that are reasonably requested by such Holders.

                                      -11-
<PAGE>   13

          (g)  The Company shall not be required by this Section 11 to include
or maintain in any Registration Statement any Shares which, in the opinion of
counsel for the Company, could be sold pursuant to Rule 144 under the Act in any
three-month period without volume limitation.

          (h)  The Company represents that the registration rights provided in
this Section 11 are not inconsistent with, and will in no way be limited by,
registration rights previously granted by the Company to its securityholders.

     Section 12. INDEMNIFICATION.

          (a)  In the event that any Registration Statement is filed pursuant to
Section 11 hereof, the Company will indemnify and hold harmless each Holder
identified as a selling security holder therein, and each person, if any, who
controls such Holder within the meaning of the Act, against any and all losses,
claims, damages or liabilities, joint or several (including any reasonable
investigation, legal and other expenses incurred in connection with, and any
amount paid in settlement of, any action, suit or proceeding or any claim
asserted), to which they or any of them may become subject under the Act, the
Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT") or other
federal or state law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in any such Registration Statement, any related
preliminary prospectus, final prospectus, or amendment thereof or supplement
thereto, or any related blue sky filing, or (ii) the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; provided that the Company shall not be
liable under this section 12(a) in any such case to the extent that any such
losses, claims, damages or liabilities arise solely out of or are based upon an
untrue statement of a material fact contained in, or any omission of a material
fact from, such Registration Statement, preliminary prospectus, final prospectus
or amendment thereof or supplement thereto in reliance upon, and in conformity
with, information furnished in writing to the Company by such Holder
specifically for use therein. This indemnity will be in addition to any
liability which the Company may otherwise have.

          (b)  Each Holder who is identified as a selling security holder in a
filed Registration Statement will severally, and not jointly, indemnify and hold
harmless the Company, each other person referred to in subparts (1), (2) and (3)
of Section 11(a) of the Act in respect of the Registration Statement, and each
person, if any, who controls the Company or any such person within the meaning
of Section 15 of the Act, against any and all losses, claims, damages or
liabilities (including any reasonable investigation, legal and other expenses
incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted), to which they, or any of them, may
become subject under the Act, the Exchange Act or other federal or state law or
regulation, at common law, or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
(i) any untrue statement or alleged untrue statement of a material fact
contained in such Registration Statement, any related preliminary prospectus,
final prospectus or amendment thereof or

                                      -12-
<PAGE>   14
supplement thereto, or any related blue sky filing, or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, in each case to the extent, but only to
the extent, that such untrue statement or omission was made in such Registration
Statement, preliminary prospectus, final prospectus or amendment thereof or
supplement thereto in reliance upon, and in conformity with, information
furnished in writing to the Company by such Holder specifically for use therein.
This indemnity will be in addition to any liability which a Holder may otherwise
have to the Company.

          (c)  Any party that proposes to assert the right to be indemnified
under this Section 12 shall, promptly after receipt of notice of the
commencement of any action, suit or proceeding against such party in respect of
which a claim is to be made against an indemnifying party or parties under this
Section, notify each such indemnifying party of the commencement thereof,
enclosing a copy of all papers served. No indemnification provided for in
Section 12(a) or 12(b) shall be available to any party who shall fail to give
notice as provided in this Section 12(c) if the party to whom notice was not
given was unaware of the proceeding to which such notice would have related and
was materially prejudiced by the failure to give such notice, but the omission
so to notify such indemnifying party of any such action, suit or proceeding
shall not relieve it from any liability that it may have to any indemnified
party otherwise than under this Section 12 or Section 13. In case any such
action, suit or proceeding is brought against any indemnified party and it
notifies the indemnifying party of the commencement thereof, such indemnifying
party will be entitled to participate in, and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof with counsel reasonably satisfactory to such indemnified party,
and, after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof and the approval by the indemnified
party of such counsel (which approval shall not unreasonably be withheld), the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses, except as provided below and except for the reasonable costs
of investigation subsequently incurred by such indemnified party in connection
with the defense thereof. The indemnified party shall have the right to employ
its own counsel in any such action, suit or proceeding but the fees and expenses
of such counsel shall be at the expense of such indemnified party unless (i) the
employment of counsel by such indemnified party has been authorized in writing
by the indemnifying parties, (ii) the indemnified party shall have reasonably
concluded that there may be differing or additional defenses available to it and
not to one or more of the indemnifying parties in such action, suit or
proceeding (in which case the indemnifying parties shall not have the right to
direct the defense of such action, suit or proceeding on behalf of the
indemnified party), or (iii) the indemnifying parties shall not have employed
counsel to assume the defense of such action within a reasonable time after
notice of the commencement thereof, in each of which cases the fees and expenses
of the indemnified party's counsel shall be at the expense of the indemnifying
parties; however, the indemnifying party shall not, in connection with any one
such action, suit or proceeding or separate but substantially similar or related
actions, suits or proceedings in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys for the Holders and
controlling persons, which firm shall be designated in writing by a

                                      -13-
<PAGE>   15

majority in interest of such Holders and controlling persons (based upon the
value of the Shares included in the Registration Statement). An indemnifying
party shall not be liable for any settlement of any action, suit, proceeding or
claim effected without its written consent.

     Section 13. CONTRIBUTION. In order to provide for just and equitable
contribution in circumstances in which the indemnification provided for in
Section 12 is due in accordance with its terms but for any reason is held to be
unavailable or insufficient to hold harmless an indemnified party, the Company
(including for this purpose any controlling person of the Company, any director
of the Company and any officer of the Company who signed the Registration
Statement) on the one hand, and the Holders (including for this purpose any
controlling persons thereof) on the other hand, shall, in lieu of indemnifying
such indemnified party, contribute to the aggregate losses, claims, damages or
liabilities referred to in Section 12 above (including any investigation, legal
and other expenses reasonably incurred in connection with, and any amount paid
in settlement of, any action, suit or proceeding or any claims asserted, but
after deducting any contribution received by or payable to the Company from
other persons other than the Holders, such as other selling securityholders,
persons who control the Company within the meaning of the Act, officers of the
Company who signed the Registration Statement, and directors of the Company),
(a) in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Holders from the offering or offerings covered
by the Registration Statement or, (b) if the allocation provided by clause (a)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (a) above but
also the relative fault of the Company and the Holders in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and any Holder on
the other hand shall be deemed to be in the same proportion as (x) the total
proceeds (if any) received by the Company from the offering or offerings covered
by the Registration Statement (net of underwriting discounts but before
deducting expenses, if applicable), plus all cash proceeds received by the
Company from the exercise of the Warrants for the Shares of such Holder included
in the Registration Statement, bear to (y) the total proceeds received by such
Holder from the sale of Shares included in the Registration Statement. The
relative fault of the Company and any Holder shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or omission related to information supplied by the Company or such
Holder, and their relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and
the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 13 were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to above. Notwithstanding the provisions of this Section 13, in no case shall
any Holder (except as may be provided by agreement among them) be liable or
responsible for any amount in excess of the proceeds received by such Holder
from the sale of the Shares included in the Registration Statement; provided
that no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of
this Section 13,

                                      -14-
<PAGE>   16

each person, if any, who controls a Holder within the meaning of Section 15 of
the Act or Section 20(a) of the Exchange Act shall have the same rights to
contribution as such Holder, and each person, if any, who controls the Company
within the meaning of the Section 15 of the Act or Section 20(a) of the Exchange
Act, each director of the Company and each officer of the Company who shall have
signed the Registration Statement, shall have the same rights to contribution as
the Company, subject in each case to clauses (i) and (ii) in the immediately
preceding sentence of this Section 13. Any party entitled to contribution will,
promptly after receipt of notice of commencement of any action, suit or
proceeding against such party in respect of which a claim for contribution may
be made against another party or parties under this Section 13, notify such
party or parties from whom contribution may be sought, and the omission so to
notify such party or parties from whom contribution may be sought shall relieve
the party or parties from whom contribution may be sought (if such party was
unaware of such action, suit or proceeding and was materially prejudiced by such
omission) from any liability under this Section 13, but not from any other
obligation it or they may have hereunder or otherwise than under this Section
13. No party shall be liable for contribution with respect to any settlement of
an action, suit, proceeding or claim effected without its written consent. The
obligations of the Holders to contribute pursuant to this Section 13 are several
in proportion to their respective number of Shares included in the Registration
Statement, and not joint.

     Section 14. NOTICES. Any notice pursuant to this Agreement shall be in
writing and shall be deemed to have been duly given (i) if given by facsimile
transmission on the business day on which such transmission is sent and
confirmed, (ii) if given by air courier, two business days following the date it
was sent or (iii) if mailed by certified mail, return receipt requested, ten
business days following the date it was mailed, to the following addresses
(unless another address is herein specified):

          (a)  If to a Holder, addressed to: c/o Sunrise Financial Group, Inc.,
     135 East 57th Street, 11th Floor, New York, New York 10022, Attention: Mr.
     Nathan Low (fax: 212-421-5924), with a copy to Carter, Ledyard & Milburn, 2
     Wall Street, New York, New York 10005, Attention: Steven J. Glusband, Esq.
     (fax: 212-732-3232).

          (b)  If to the Company, addressed to: 330 Nevada Street, Newton,
     Massachusetts 02160, Attention: Stephen D. Chubb (fax: 617-928-0821) with a
     copy to: Testa, Hurwitz & Thibeault, LLP, 125 High Street, Boston,
     Massachusetts 02110, Attention: Rufus C. King, Esq. (fax: 617-248-7100)

Each party may from time to time change the address or fax number to which
notices to it are to be delivered or mailed hereunder by notice in accordance
herewith to the other party.

     Section 15. SUCCESSORS. All the covenants and provisions of this Agreement
by or for the benefit of the Company and the Holders shall bind and inure to the
benefit of their respective successors and assigns.

                                      -15-
<PAGE>   17

     Section 16. MERGER OR CONSOLIDATION OF THE COMPANY. The Company shall not
merge or consolidate with or into any other corporation or sell all or
substantially all of its property to another corporation, unless the provisions
of Section 8.4 are complied with.

     Section 17. APPLICABLE LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT
SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE COMMONWEALTH OF
MASSACHUSETTS AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF SAID SATE (WITHOUT REFERENCE TO ITS RULES AS TO CONFLICTS OF
LAWS). The parties hereby agree to the exclusive jurisdiction of the courts of
the Commonwealth of Massachusetts or the federal courts sitting in the
Commonwealth of Massachusetts in connection with any action arising out of this
Agreement.

     Section 18. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company, the
Warrantholders and holders of Shares any legal or equitable right, remedy or
claim under this Agreement. This Agreement shall be for the sole and exclusive
benefit of the Company and the Holders.

     Section 19. AMENDMENT AND WAIVER. This Agreement and the Warrants may only
be amended, or any term hereof waived, in writing by signed by the Company and
Warrantholders holding a majority of the Shares issued or issuable upon exercise
of the Warrants, whether or not an individual Warrantholder consents thereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -16-
<PAGE>   18

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed, all as of the date and year first above written.

                                             MATRITECH, INC.

                                             By: /s/ Stephen Chubb
                                                 --------------------------
                                                 Stephen Chubb
                                                 Chairman and Chief Executive
                                                  Officer

                                             WARRANTHOLDERS

                                             /s/ Nathan Low
                                             -----------------------------------
                                             Nathan Low

                                             /s/ Derek Caldwell
                                             -----------------------------------
                                             Derek Caldwell

                                             /s/ Dwight Miller
                                             -----------------------------------
                                             Dwight Miller

                                             /s/ Sean Gallagher
                                             -----------------------------------
                                             Sean Gallagher

                                             /s/ Marc Seelenfreund
                                             -----------------------------------
                                             Marc Seelenfreund

                                             /s/ Matthew Toole
                                             -----------------------------------
                                             Matthew Toole

                                      -17-
<PAGE>   19

                                                                       EXHIBIT A

<TABLE>
<CAPTION>
    -----------------------------------------------------------------------
    WARRANTHOLDER                                  NUMBER OF SHARES
    -----------------------------------------------------------------------
<S>                                                <C>
    Nathan Low                                         200,000

    -----------------------------------------------------------------------
    Derek Caldwell                                     200,000

    -----------------------------------------------------------------------
    Dwight Miller                                       15,000

    -----------------------------------------------------------------------
    Sean Gallagher                                      15,000

    -----------------------------------------------------------------------
    Marc Seelenfreund                                   15,000

    -----------------------------------------------------------------------
    Matthew Toole                                        5,000

    -----------------------------------------------------------------------
                                    Total              450,000
    -----------------------------------------------------------------------
</TABLE>

                                     -A-1-
<PAGE>   20

                                                                       EXHIBIT B

          THE WARRANTS REPRESENTED BY THIS CERTIFICATE, AND THE
          SECURITIES ISSUABLE UPON EXERCISE OF SUCH WARRANTS, HAVE
          NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
          OF 1933 OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
          STATES. SUCH WARRANTS AND SECURITIES MAY NOT BE SOLD,
          ASSIGNED, EXCHANGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
          IN ANY MANNER EXCEPT IN COMPLIANCE WITH SECTION 11 OF THE
          INVESTOR RELATIONS WARRANT AGREEMENT BY AND BETWEEN THE
          ISSUER AND EACH OF THE ORIGINAL HOLDERS OF THE WARRANTS
          DATED _______, 2000.

                                             WARRANT CERTIFICATE NO. IRW-_______

                                 MATRITECH, INC.

                            (ORGANIZED UNDER THE LAWS
                            OF THE STATE OF DELAWARE)

                        WARRANTS TO PURCHASE COMMON STOCK

     This certifies that, for value received, _______ (the "WARRANTHOLDER") is
the registered owner of _______ warrants (the "WARRANTS") to purchase from
Matritech, Inc. (the "COMPANY"), at any time during the period commencing at
9:00 a.m., Eastern Time, on _______, 2000 and ending at 5:00 p.m., Eastern Time,
on ________, 2005, at an initial purchase price per share of $2.50 (the "WARRANT
PRICE"), one share of Common Stock of the Company. The Warrants are subject to,
and each Warrantholder, by acceptance of this certificate, consents to all the
terms and provisions of the Warrant Agreement dated as of ________, 2000,
between the Company and the Warrantholder, pursuant to which the Warrants
evidenced hereby were issued (the "WARRANT AGREEMENT").

     The Warrants evidenced hereby may be exercised in whole or in part by
presentation of this Warrant Certificate with the Purchase Form herein duly
executed (with a signature guarantee as provided therein), and simultaneous
payment of the Warrant Price for each Warrant exercised, at the principal office
of the Company. Payment of such price shall be made at the option of each
Warrantholder in cash or by certified or cashier's check, in next day funds.

     Upon any partial exercise of the Warrants evidenced hereby, there shall be
signed and issued to the Warrantholder effecting such partial exercise a new
Warrant Certificate in respect of the Common Stock as to which the Warrants
evidenced hereby shall not have been exercised.

                                     -B-1-
<PAGE>   21

These Warrants may be exchanged at the office of the Company by surrender of
this Warrant Certificate properly endorsed for one or more new Warrants of the
same aggregate number of shares of Common Stock as here evidenced by the Warrant
or Warrants exchanged. No fractional shares of Common Stock will be issued upon
the exercise of rights to purchase hereunder, but the Company shall pay the cash
value of any fraction upon the exercise of one or more Warrants. These Warrants
are transferable at the office of the Company in the manner and subject to the
limitations set forth in the Warrant Agreement.

     This Warrant Certificate does not entitle any Warrantholder to any of the
rights of a shareholder of the Company.

                                            MATRITECH, INC.

                                            By: _____________________________
                                                Stephen Chubb
                                                Chairman and Chief Executive
                                                 Officer

ATTEST:

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

Dated:                          , 2000
       -----------------------

                                     -B-2-
<PAGE>   22

PURCHASE FORM

Matritech, Inc.
330 Nevada Street
Newton, Massachusetts 02160

     Pursuant to paragraph 3(a) of the Warrant Agreement, the undersigned hereby
irrevocably elects to exercise the right of purchase represented by this Warrant
Certificate for, and to purchase thereunder, __________ shares of Common Stock
("Common Stock") provided for therein, and requests that certificates for such
Common Stock be issued in the name of:

                       -----------------------------------
  (Please Print or Type Name(s), Address and Taxpayer Identification Number(s))

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

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

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

If this Warrant Certificate is hereby being exercised with respect to fewer than
all the Common Stock specified herein, please issue a new Warrant Certificate
for the unexercised balance of the Warrants, registered in the name of the
undersigned Warrantholder or his assignee as below indicated and delivered to
the address stated below.

Dated: _______________________

Name of Warrantholder(s)
  or Assignee(s) (Please Print):  _____________________________

                                  _____________________________

Address (Please Print): _______________________________________

               ________________________________________________

Signature(s):  ________________________________________________

               ________________________________________________

               Note: The above signature(s) must correspond exactly with the
          name(s) as written upon the face of this Warrant Certificate, without
          alteration or enlargement or any change whatever, unless these
          Warrants have been assigned.

                                     -B-3-
<PAGE>   23

ASSIGNMENT

                 (To be signed only upon assignment of Warrants)

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

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

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

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

     (Name(s) and Address(es) of Assignee(s) Must be Printed or Typewritten)

the within Warrants, hereby irrevocably constituting and appointing
________________________ the undersigned's attorney-in-fact to transfer said
Warrants on the books of the Company, with full power of substitution.

Dated:  __________              ___________________________________

                                ___________________________________
                            Signature(s) of Registered Holder(s)

          Note: The above signature(s) must correspond exactly with the name(s)
     as written upon the face of this Warrant Certificate, without alteration or
     enlargement or any change whatever.

                                     -B-4-

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