" We hereby notify you that today, Lawson's Shares were listed and commenced trading on the Tokyo Stock Exchange and the Osaka Securities Exchange. As a result, pursuant to conditions set out in the Paying, Exchange and Transfer Agency Agreement, all Notes shall be mandatorily exchanged for the Shares at the Mandatory Exchange Price. The Mandatory Exchange Price shall be calculated as the lower of the IPO price (which is JPY7,2000) and the Average price, multiplied by 100/108.7 subject to a mandatory Exchange Floor Price of JPY3,000. "Average Price" means the average of the last reported sales price for the Shares on a relevant stock exchange on which the Shares are listed for the 30 consecutive trading days after the IPO Listing date.
Interest will accrue on the Notes from the interest payment date immediately preceding the exchange (25 august, 2000) up to the exchange date and shall be paid on the exchange date (for avoidance of doubt, interest payment with respect to the Notes for the six-month period ending 25 August, 2000 will be made on 25 August, 2000)."