Document:

Exhibit 4.2

 

FIRST SUPPLEMENTAL INDENTURE

 

between

 

TERRA INCOME FUND 6, INC.

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

 

as Trustee

 

Dated as of February 10, 2021

 

FIRST SUPPLEMENTAL INDENTURE

 

THIS FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental
Indenture”), dated as of February 10, 2021, is between Terra Income Fund 6, Inc., a Maryland corporation (the “Company”),
and U.S. Bank National Association, as trustee (the “Trustee”). All capitalized terms used herein shall have the meaning
set forth in the Base Indenture (as defined below).

 

RECITALS OF THE COMPANY

 

The Company and the Trustee executed and delivered an Indenture,
dated as of February 10, 2021 (the “Base Indenture” and, as supplemented by this First Supplemental Indenture,
the “Indenture”), to provide for the issuance by the Company from time to time of the Company’s unsecured debentures,
notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series as provided in the
Indenture.

 

The Company desires to issue and sell up to $34,750,000 aggregate
principal amount (or up to $39,962,500 aggregate principal amount if the underwriters’ option to purchase additional Securities
is exercised in full) of the Company’s 7.00% Notes due 2026 (the “Notes”).

 

Sections 901(4) and 901(6) of the Base Indenture provide
that without the consent of Holders of the Securities of any series issued under the Indenture, the Company, when authorized by
or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
to the Base Indenture to (i) change or eliminate any of the provisions of the Indenture when there is no Security Outstanding
of any series created prior to the execution of the supplemental indenture that is entitled to the benefit of such provision and
(ii) establish the form or terms of Securities of any series as permitted by Section 201 and Section 301 of the
Base Indenture.

 

The Company desires to establish the form and terms of the Notes
and to modify, alter, supplement and change certain provisions of the Base Indenture for the benefit of the Holders of the Notes
(except as may be provided in a future supplemental indenture to the Indenture (“Future Supplemental Indenture”)).

 

The Company has duly authorized the execution and delivery of
this First Supplemental Indenture to provide for the issuance of the Notes and all acts and things necessary to make this First
Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute a valid agreement of the Company,
in accordance with its terms, have been done and performed.

 

NOW, THEREFORE, for and in consideration of the premises and
the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders
of the Notes, as follows:

 

     

     

    

 

ARTICLE I

TERMS OF THE NOTES

 

Section 1.01 Terms of the Notes. The following
terms relating to the Notes are hereby established:

 

(a) The Notes shall constitute a series of Senior Securities
having the title “7.00% Notes due 2026.” The Notes shall bear a CUSIP number of 88104C 202 and an ISIN number of US88104C2026.

 

(b) The aggregate principal amount of the Notes that may
be initially authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of,
transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 906, 1107 or 1305 of the Base Indenture,
and except for any Securities that, pursuant to Section 303 of the Base Indenture, are deemed never to have been authenticated
and delivered under the Indenture) shall be up to $34,750,000 (or up to $39,962,500 aggregate principal amount if the underwriters’
option to purchase additional Securities is exercised in full). Under a Board Resolution, Officers’ Certificate pursuant
to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders of Notes,
issue additional Notes (in any such case “Additional Notes”) having the same ranking and the same interest rate, maturity
and other terms as the Notes. Any Additional Notes and the existing Notes will constitute a single series under the Indenture and
all references to the relevant Notes herein shall include the Additional Notes unless the context otherwise requires.

 

(c) The entire outstanding principal of the Notes shall
be payable on March 31, 2026.

 

(d) The rate at which the Notes shall bear interest shall
be 7.00% per annum (the “Applicable Interest Rate”). The date from which interest shall accrue on the Notes shall be
February 10, 2021 or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment
Dates for the Notes shall be March 30, June 30, September 30 and December 30 of each year, commencing June 30,
2021 (if an Interest Payment Date falls on a day that is not a Business Day, then the applicable interest payment will be made
on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment); the initial interest
period will be the period from and including February 10, 2021, to, but excluding, the initial Interest Payment Date, and
the subsequent interest periods will be the periods from and including an Interest Payment Date to, but excluding, the next Interest
Payment Date or the Stated Maturity, as the case may be; the interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date, will be paid to the Person in whose name the Note (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which shall be March 15, June 15, September 15
and December 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Payment of
principal of (and premium, if any, on) and any such interest on the Notes will be made at the office of the Trustee located at
100 Wall Street, Suite 600, New York, NY 10005 Attn: Global Corporate Trust & Custody and at such other address as
designated by the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made
by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided,
further, however, that so long as the Notes are registered to Cede & Co., such payment will be made by wire transfer
in accordance with the procedures established by The Depository Trust Company and the Trustee. Interest on the Notes will be computed
on the basis of a 360-day year of twelve 30-day months.

 

(e) The Notes shall be initially issuable in global form
(each such Note, a “Global Note”). The Global Notes and the Trustee’s certificate of authentication thereon shall
be substantially in the form of Exhibit A to this First Supplemental Indenture. Each Global Note shall represent the outstanding
Notes as shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Notes from
time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be reduced
or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any
increase or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or the Security Registrar,
in accordance with Sections 203 and 305 of the Base Indenture.

 

(f) The depositary for such Global Notes (the “Depositary”)
shall be The Depository Trust Company, New York, New York. The Security Registrar with respect to the Global Notes shall be the
Trustee.

 

    -2- 

     

    

 

(g) The Notes shall be defeasible pursuant to Section 1402
or Section 1403 of the Base Indenture. Covenant defeasance contained in Section 1403 of the Base Indenture shall apply
to the covenants contained in Sections 1006, 1008 and 1009 of the Indenture.

 

(h) The Notes shall be redeemable pursuant to Section 1101
of the Base Indenture and as follows:

 

(i) The Notes will be redeemable in whole or in part at
any time or from time to time, at the option of the Company, on or after February 10, 2023, at a redemption price equal to
100% of the outstanding principal amount thereof, plus accrued and unpaid interest payments otherwise payable for the then-current
quarterly interest period accrued to, but excluding, the date fixed for redemption.

 

(ii) Notice of redemption shall be given in writing and
mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, to each Holder of the Notes to be redeemed,
not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date, at the Holder’s address appearing in
the Security Register. All notices of redemption shall contain the information set forth in Section 1104 of the Base Indenture.

 

(iii) Any exercise of the Company’s option to redeem
the Notes will be done in compliance with the Investment Company Act, to the extent applicable.

 

(iv) If the Company elects to redeem only a portion of
the Notes, the Trustee will determine the method for selecting the particular Notes to be redeemed, in accordance with Section 1103
of the Base Indenture and the Investment Company Act and the rules of any national securities exchange or quotation system
on which the Notes are listed, in each case to the extent applicable.

 

(v) Unless the Company defaults in payment of the Redemption
Price, on and after the Redemption Date, interest will cease to accrue on the Notes called for redemption hereunder.

 

(i) The Notes shall not be subject to any sinking fund
pursuant to Section 1201 of the Base Indenture.

 

(j) The Notes shall be issuable in denominations of $25
and integral multiples of $25 in excess thereof.

 

(k) Holders of the Notes will not have the option to have
the Notes repaid prior to the Stated Maturity.

 

(l) The Notes are hereby designated as “Senior Securities”
under the Indenture.

 

ARTICLE II

COVENANTS

 

Section 2.01 Except as may be provided in a Future
Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether
now or hereafter issued and Outstanding, Article X of the Base Indenture shall be amended by adding the following new Sections
1008, 1009 and 1010 thereto, each as set forth below:

 

“Section 1008. Section 18(a)(1)(A) of
the Investment Company Act.

 

The Company hereby agrees that for the period of time during
which Notes are Outstanding, the Company will not violate (whether or not it is subject to) Section 18(a)(1)(A) as modified
by Section 61(a)(1) of the Investment Company Act or any successor provisions thereto of the Investment Company Act,
giving effect to any exemptive relief granted to the Company by the Commission.”

 

“Section 1009. Asset Coverage Ratio.

 

The Company hereby agrees that for the period of time during
which Notes are Outstanding, the Company will not pay any dividends or make any distributions in excess of 90% of its taxable income,
incur any Indebtedness or purchase any shares of its outstanding capital stock, unless, in every such case, at the time of the
incurrence of such Indebtedness or at the time of any such dividend, distribution or purchase, the Company has an Asset Coverage
of at least 200% after giving effect to the incurrence of such Indebtedness and the application of the net proceeds therefrom or
after deducting the amount of such purchase, price as the case may be. “Asset Coverage” means the ratio (expressed
as a percentage) which the total assets of the Company bears to the aggregate amount of indebtedness (including the aggregate principal
amount of the involuntary liquidation preference of redeemable preferred stock, if any), of the Company. For purposes of the Supplemental
Indenture, “Indebtedness” means, without duplication: (a) all indebtedness for borrowed money; (b) all obligations
evidenced by notes, bonds, debentures or similar instruments; and (c) any lease of, or other arrangement conveying the right
to use, any property by a Person as lessee that has been or should be accounted for as a capital lease on a balance sheet of such
Person prepared in accordance with GAAP.”

 

    -3- 

     

    

 

“Section 1010. Section 18(a)(1)(B) of
the Investment Company Act.

 

The Company hereby agrees that for the period of time during
which Notes are Outstanding, the Company will not declare any dividend (except a dividend payable in the Company’s stock),
or declare any other distribution, upon a class of the Company’s capital stock, or purchase any such capital stock, unless,
in every such case, at the time of the declaration of any such dividend or distribution, or at the time of any such purchase, the
Company has an asset coverage (as defined in the Investment Company Act) of at least the threshold specified in Section 18(a)(1)(B) as
modified by such provisions of Section 61(a) of the Investment Company Act as may be applicable to the Company from time
to time or any successor provisions thereto, as such obligation may be amended or superseded, after deducting the amount of such
dividend, distribution or purchase price, as the case may be, and in each case giving effect to (i) any exemptive relief granted
to the Company by the Commission, and (ii) any no-action relief granted by the Commission to another business development
company (or to the Company if it determines to seek such similar no-action or other relief) permitting the business development
company to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B) as
modified by such provisions of Section 61(a) of the Investment Company Act as may be applicable to the Company from time
to time, as such obligation may be amended or superseded, in order to maintain such business development company’s status
as a real estate investment trust under Subchapter M of the Code.”

 

“Section 1011. Commission Reports and Reports
to Holders.

 

If, at any time, the Company is not subject to the reporting
requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the Securities and Exchange Commission,
the Company agrees to furnish to the Holders of Notes and the Trustee for the period of time during which the Notes are Outstanding:
(i) within 90 days after the end of the each fiscal year of the Company (which fiscal year ends on February 28 (or February 29
during a leap year)), audited annual consolidated financial statements of the Company and (ii) within 45 days after the end
of each fiscal quarter of the Company (other than the Company’s fourth fiscal quarter), unaudited interim consolidated financial
statements of the Company. All such financial statements shall be prepared, in all material respects, in accordance with GAAP.”

 

ARTICLE III

MEETINGS OF HOLDERS OF SECURITIES

 

Section 3.01 Except as may be provided in a Future
Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether
now or hereafter issued and Outstanding, Section 1505 of the Base Indenture shall be amended by replacing clause (c) thereof
with the following:

 

“(c) At any meeting of Holders, each Holder of a
Security of such series or proxy shall be entitled to one vote for each $25.00 principal amount of the Outstanding Securities of
such series held or represented by such Holder; provided, however, that no vote shall be cast or counted at any meeting
in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman
of the meeting shall have no right to vote, except as a Holder of a Security of such series or proxy.”

 

    -4- 

     

    

 

ARTICLE IV 

MISCELLANEOUS

 

Section 4.01 This First Supplemental Indenture and
the Notes shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws. This First Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required
to be part of the Indenture and shall, to the extent applicable, be governed by such provisions.

 

Section 4.02 In case any provision in this First
Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 4.03 This First Supplemental Indenture may
be executed in counterparts, each of which will be an original, but such counterparts will together constitute but one and the
same First Supplemental Indenture. The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile,
..pdf transmission, email or other electronic means shall constitute effective execution and delivery of this First Supplemental
Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, .pdf transmission, email or other electronic
means shall be deemed to be their original signatures for all purposes.

 

Section 4.04 The Base Indenture, as supplemented
and amended by this First Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture and this First
Supplemental Indenture shall be read, taken and construed as one and the same instrument with respect to the Notes. All provisions
included in this First Supplemental Indenture supersede any conflicting provisions included in the Base Indenture with respect
to the Notes, unless not permitted by law. The Trustee accepts the trusts created by the Base Indenture, as supplemented by this
First Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Base Indenture, as supplemented
by this First Supplemental Indenture.

 

Section 4.05 The provisions of this First Supplemental
Indenture shall become effective as of the date hereof.

 

Section 4.06 Notwithstanding anything else to the
contrary herein, the terms and provisions of this First Supplemental Indenture shall apply only to the Notes and shall not apply
to any other series of Securities under the Indenture and this First Supplemental Indenture shall not and does not otherwise affect,
modify, alter, supplement or change the terms and provisions of any other series of Securities under the Indenture, whether now
or hereafter issued and Outstanding.

 

Section 4.07 The recitals contained herein and in
the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture, the Notes or any Additional
Notes, except that the Trustee represents that it is duly authorized to execute and deliver this First Supplemental Indenture,
authenticate the Notes and any Additional Notes and perform its obligations hereunder. The Trustee shall not be accountable for
the use or application by the Company of the Notes or any Additional Notes or the proceeds thereof.

 

[Signature page follows]

 

    -5- 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this First Supplemental Indenture to be duly executed as of the date first above written.

 

	 	 	 
	 	TERRA INCOME FUND 6, INC.
	 	 
	 	By:	
        /s/ Vikram S. Uppal

	 	Name:	 Vikram S. Uppal
	 	Title:	  Chief Executive Officer

 

[Signature Page to First Supplemental
Indenture]

 

     

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By:	/s/ Christopher J. Grell                          
	 	Name:	 Christopher J. Grell
	 	Title:	 Vice President

 

[Signature page to First Supplemental
Indenture]

 

     

     

    

 

Exhibit A – Form of
Global Note

 

This Security is a Global Note within the meaning of the
Indenture hereinafter referred to and is registered in the name of The Depository Trust Company or a nominee thereof. This Security
may not be exchanged in whole or in part for a Security registered, and no transfer of this Security in whole or in part may be
registered, in the name of any Person other than The Depository Trust Company or a nominee thereof, except in the limited circumstances
described in the Indenture.

 

Unless this certificate is presented by an authorized representative
of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange or payment and such certificate
issued in exchange for this certificate is registered in the name of Cede & Co., or such other name as requested by an
authorized representative of The Depository Trust Company, any transfer, pledge or other use hereof for value or otherwise by or
to any person is wrongful, as the registered owner hereof, Cede & Co., has an interest herein.

 

Terra Income Fund 6, Inc.

 

	No. 1	$34,750,000.00
	 	CUSIP No. 88104C 202
	 	ISIN No. US88104C2026

 

7.00% Notes due 2026

 

Terra Income Fund 6, Inc., a corporation duly organized
and existing under the laws of Maryland (herein called the “Company”, which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of Thirty-Four Million Seven Hundred Fifty Thousand Dollars (U.S. $34,750,000 ) on March 31, 2026 and to
pay interest thereon from February 10, 2021 or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, quarterly on March 30, June 30, September 30 and December 30 in each year, commencing
June 30, 2021, at the rate of 7.00% per annum, until the principal hereof is paid or made available for payment. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such interest,
which shall be March 15, June 15, September 15 or December 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security
is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture. This Security may be issued as part of a series.

 

Payment of the principal of (and premium, if any, on) and any
such interest on this Security will be made at the office of the Trustee located at 60 Livingston Avenue, St. Paul, MN 55107, Attention:
Terra Income Fund 6, Inc. (7.00% Notes Due 2026) and at such other address as designated by the Trustee, in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register; provided, further, however, that so long as this
Security is registered to Cede & Co., such payment will be made by wire transfer in accordance with the procedures established
by The Depository Trust Company and the Trustee.

 

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

 

     

     

    

 

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

 

[Signature page follows]

 

     

     

    

 

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

 

Dated:

	 	TERRA INCOME FUND 6, INC.
	 	 	 
	 	By:	 
	 	 	Name:  Vikram S. Uppal
	 	 	Title:    Chief Executive Officer

 

	Attest	 
	 	 	 
	By:	 	 
	 	Name: Gregory M. Pinkus	  
	 	Title: Chief
Operating Officer, Chief Financial Officer, Treasurer and

                                                                      Secretary
	 

 

[Global Note – First Supplemental
Indenture]

 

     

     

    

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

Dated:

 

	 	
        U.S. BANK NATIONAL
        ASSOCIATION, as Trustee

	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

[Global Note – First Supplemental
Indenture]

 

     

     

    

 

Terra Income Fund 6, Inc.

7.00% Notes due 2026

 

This Security is one of a duly authorized issue of Senior Securities
of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture,
dated as of February 10, 2021 (herein called the “Base Indenture”, which term shall have the meaning assigned
to it in such instrument), between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Base Indenture), and reference is hereby made to the Base Indenture for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders
of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered, as supplemented by
the First Supplemental Indenture relating to the Securities, dated February 10, 2021, by and between the Company and the Trustee
(herein called the “First Supplemental Indenture”; the First Supplemental Indenture and the Base Indenture collectively
are herein called the “Indenture”). In the event of any conflict between the Base Indenture and the First Supplemental
Indenture, the First Supplemental Indenture shall govern and control.

 

This Security is one of the series designated on the face hereof,
initially limited in aggregate principal amount to $34,750,000 (or up to $39,962,500 aggregate principal amount if the underwriters’
option to purchase additional Securities is exercised in full). Under a Board Resolution, Officers’ Certificate pursuant
to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders of Securities,
issue additional Securities of this series (in any such case “Additional Securities”) having the same ranking and the
same interest rate, maturity and other terms as the Securities. Any Additional Securities and the existing Securities will constitute
a single series under the Indenture and all references to the relevant Securities herein shall include the Additional Securities
unless the context otherwise requires. The aggregate amount of outstanding Securities represented hereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions.

 

The Securities of this series are subject to redemption in whole
or in part at any time or from time to time, at the option of the Company, on or after February 10, 2023, at a redemption
price per security equal to 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise
payable for the then-current quarterly interest period accrued to the date fixed for redemption.

 

Notice of redemption shall be given in writing and mailed, first-class
postage prepaid or by overnight courier guaranteeing next-day delivery, to each Holder of the Securities to be redeemed, not less
than thirty (30) nor more than sixty (60) days prior to the Redemption Date, at the Holder’s address appearing in the Security
Register. All notices of redemption shall contain the information set forth in Section 1104 of the Base Indenture.

 

Any exercise of the Company’s option to redeem the Securities
will be done in compliance with the Investment Company Act, to the extent applicable.

 

If the Company elects to redeem only a portion of the Securities,
the Trustee or the Depositary, as applicable, will determine the method for selecting the particular Securities to be redeemed,
in accordance with their standard operating procedures and the Investment Company Act, to the extent applicable. In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

 

Unless the Company defaults in payment of the Redemption Price,
on and after the Redemption Date, interest will cease to accrue on the Notes called for redemption.

 

Holders of Securities do not have the option to have the Securities
repaid prior to March 31, 2026.

 

The Indenture contains provisions for defeasance at any time
of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security,
in each case upon compliance with certain conditions set forth in the Indenture.

 

     

     

    

 

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

 

The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities
of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of
not less than a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions of the Indenture,
the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 25% in principal
amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings
in respect of such Event of Default as Trustee and offered the Trustee security or indemnity reasonably satisfactory to the Trustee
against the costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall not have received
from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent
with such request, and shall have failed to institute any such proceeding, for sixty (60) days after receipt of such notice, request
and offer of security or indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein.

 

No reference herein to the Indenture and no provision of this
Security 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 on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration
of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security
are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

 

The Securities of this series are issuable only in registered
form without coupons in denominations of $25 and any integral multiples of $25 in excess thereof. As provided in the Indenture
and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering
the same.

 

No service charge shall be made for any such registration of
transfer or exchange, but the Company, the Trustee, or the Security Registrar may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee, or the Security Registrar and any agent of the Company, the Trustee, or the Security Registrar
may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security
be overdue, and none of the Company, the Trustee, the Security Registrar or any agent thereof shall be affected by notice to the
contrary.

 

    	 	 	 

     

    

 

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

 

The Indenture and this Security shall be governed by and construed
in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.Document

Exhibit 4.2
DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
As of December 31, 2020, Intuitive Surgical, Inc. (“Intuitive Surgical,” the “Company,” “we,” “us” or “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our common stock, $0.001 par value per share (“Common Stock”).
Description of Common Stock
The following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), and our Amended and Restated Bylaws (the “Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part. We encourage you to read our Certificate of Incorporation, our Bylaws, and the applicable provisions of the Delaware General Corporation Law for additional information.
Authorized Capital Stock
Our authorized capital stock consist of 300,000,000 shares of Common Stock and 2,500,000 shares of undesignated preferred stock, $0.001 par value per share (“Preferred Stock”). The outstanding shares of our Common Stock are fully paid and nonassessable.
Voting Rights
The holders of Common Stock are entitled to one vote per share on all matters on which the holders of Common Stock are entitled to vote and do not have cumulative voting rights. 
Dividend Rights
Subject to preferences that may be applicable to any Preferred Stock outstanding at the time, the holders of outstanding shares of Common Stock are entitled to receive ratably any dividends out of assets legally available therefor as our board of directors may from time to time determine.
Liquidation Rights
In the event of a liquidation, dissolution, or winding-up of the Company, holders of Common Stock are entitled to share equally and ratably in the assets of the Company, if any, remaining after the payment of all debts and liabilities of the Company and the liquidation preference of any outstanding Preferred Stock.

Rights and Preferences
Holders of our Common Stock have no preemptive, conversion, subscription, or other rights, and there are no redemption or sinking fund provisions applicable to our Common Stock. The rights, preferences, and privileges of the holders of our Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our Preferred Stock that we may designate in the future.
Listing
Our Common Stock is listed and traded on the Nasdaq Global Select Market under the symbol “ISRG.”
Preferred Stock – Limitations on Rights of Holders of Common Stock
Our board of directors has the authority, without further action by our stockholders, to issue up to 2,500,000 shares of Preferred Stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences, and privileges, could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms, and the number of shares constituting, or the designation of, such series, any or all of which may be greater than the rights of Common Stock. The issuance of our Preferred Stock could adversely affect the voting power of holders of Common Stock and the likelihood that such holders will receive dividend payments and payments upon our liquidation. In addition, the issuance of Preferred Stock could have the effect of delaying, deferring, or preventing a change in control of the Company or other corporate action. As of December 31, 2020, no shares of Preferred Stock were outstanding.
Anti-Takeover Effects of Delaware Law and Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws
Some provisions of Delaware law and our Certificate of Incorporation and our Bylaws contain provisions that could make the following transactions more difficult: acquisition of us by means of a tender offer; acquisition of us by means of a proxy contest or otherwise; or removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares.
These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals, could result in an improvement of their terms.

Delaware Anti-Takeover Statute
We are subject to Section 203 of the Delaware General Corporation Law. In general, the statute prohibits a publicly held Delaware corporation from engaging in any “business combination” with any “interested stockholder” for a period of three years following the date that the stockholder became an interested stockholder unless:
•prior to the date the stockholder became an interested stockholder, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
•upon consummation of the transaction that resulted in the stockholder’s becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding those shares owned by persons who are directors and also officers and employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
•on or subsequent to the date the stockholder became an interested stockholder, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.
Section 203 defines “business combination” to include:
•any merger or consolidation involving the corporation and the interested stockholder;
•any sale, transfer, pledge, or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;
•subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
•subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; and
•the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges, or other financial benefits provided by or through the corporation.
In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by the entity or person.

Undesignated Preferred Stock
The ability to authorize undesignated Preferred Stock makes it possible for our board of directors to issue Preferred Stock with voting or other rights or preferences that could impede the success of any attempt to change control of us. These and other provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of the Company.
Special Stockholder Meetings
Our Certificate of Incorporation and Bylaws provide that a special meeting of stockholders may be called (i) by our board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exist any vacancies in previously authorized directorships at the time any such resolution is presented to the board of directors for adoption), (ii) by the Chairman of our board of directors, (iii) by our Chief Executive Officer, or (iv) upon written request to our corporate secretary, by one or more holders of record of our Common Stock owning not less than 20% of the total number of shares of our Common Stock entitled to vote on the matter or matters to be brought before the proposed special meeting. 
Requirements for Advance Notification of Stockholder Nominations and Proposals
Our Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive office not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting the preceding year. As a result, our Bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of the Company.
No Cumulative Voting
The Delaware General Corporation Law provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless our Certificate of Incorporation provides otherwise. Our Certificate of Incorporation and Bylaws do not expressly provide for cumulative voting.
Board Composition
Our Certificate of Incorporation also provides that the authorized number of directors may be changed only by resolution of the board of directors. Furthermore, any vacancy on our board of directors, however occurring, including a vacancy resulting from an increase in the size of our board, may only be filled by the affirmative vote of a majority of our directors then in 

office, even if less than a quorum, unless our board of directors determines by resolution that such vacancy or newly created directorship shall be filled by the stockholders. The limitations on the number of directors and treatment of vacancies have the effect of making it more difficult for stockholders to change the composition of our board of directors.
No Stockholder Action by Written Consent
Our Certificate of Incorporation provides that all stockholder actions are required to be taken by a vote of the stockholders at an annual or special meeting and that stockholders may not take any action by written consent in lieu of a meeting. This limit may lengthen the amount of time required to take stockholder actions and would prevent the amendment of our Bylaws or removal of directors by our stockholders without holding a meeting of stockholders.
Choice of Forum
Unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, in the event that the Chancery Court does not have jurisdiction, the federal district court for the District of Delaware or other state courts of the State of Delaware) is the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or stockholders to us or to our stockholders, (iii) any action arising pursuant to any provision of the Delaware General Corporation Law or the Certificate of Incorporation or Bylaws (as either may be amended from time to time) or (iv) any action asserting a claim against us governed by the internal affairs doctrine. In addition, unless we consent in writing to the selection of an alternate forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. Nothing in our Certificate of Incorporation or Bylaws will preclude stockholders that assert claims to enforce any liability or duty created by the Securities Exchange Act of 1934, as amended, or any other claim for which the federal courts of the United States have exclusive jurisdiction.
This choice of forum provision may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims, although our stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and regulations thereunder.
Transfer Agent
The transfer agent and registrar for our Common Stock is Computershare Trust Company, N.A.

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