X0202 4 2007-11-02 1 0001123313 KYPHON INC KYPH 0001140407 TAYLOR ARTHUR T KYPHON INC 1221 CROSSMAN AVENUE SUNNYVALE CA 94089 0 1 0 0 VP, Chief Operating Officer Common Stock 2007-11-02 4 D 0 14425 D 0 D Employee Stock Option (Right to Buy) 27.03 2007-11-02 4 D 0 150000 43.97 D 2014-07-30 Common Stock 150000 0 D Employee Stock Option (Right to Buy) 37.65 2007-11-02 4 D 0 100000 33.35 D 2015-07-21 Common Stock 100000 0 D Employee Stock Option (Right to Buy) 38.07 2007-11-02 4 D 0 60000 32.93 D 2016-02-15 Common Stock 60000 0 D Employee Stock Option (Right to Buy) 39.27 2007-11-02 4 D 0 20000 31.73 D 2016-09-15 Common Stock 20000 0 D Includes 2,425 shares that were disposed of pursuant to the merger agreement among Kyphon Inc., Jets Acquisition Corporation and Medtronic, Inc. in exchange for $71.00 per share in cash on the effective date of the merger. Also includes 12,000 Restricted Stock Units, which originally provided for vesting in three equal annual installments beginning on 8/20/08 and which were assumed in the merger and replaced with 17,963 Medtronic, Inc. Restricted Stock Units. This option provided for vesting of 1/4th of total shares on 7/30/05 and 1/36th of the remainder monthly thereafter. 112,500 shares subject to the option were cancelled in the merger in exchange for a cash payment of $4,946,625, representing the difference between the exercise price of the option and the merger consideration. 37,500 shares subject to the option were assumed by Medtronic, Inc. in the merger and replaced with an option to purchase 56,135 shares of Medtronic, Inc. common stock at an exercise price of $18.06 per share. This option provided for vesting of 1/48th of shares per month beginning on 8/21/05. 56,250 shares subject to the option were cancelled in the merger in exchange for a cash payment of $1,875,937.50, representing the difference between the exercise price of the option and the merger consideration. 43,750 shares subject to the option were assumed by Medtronic, Inc. in the merger and replaced with an option to purchase 65,491 shares of Medtronic, Inc. common stock at an exercise price of $25.16 per share. This option provided for vesting of 1/48th of shares per month beginning on 3/15/06. 25,000 shares subject to the option were cancelled in the merger in exchange for a cash payment of $823,250, representing the difference between the exercise price of the option and the merger consideration. 35,000 shares subject to the option were assumed by Medtronic, Inc. in the merger and replaced with an option to purchase 52,393 shares of Medtronic, Inc. common stock at an exercise price of $25.44 per share. This option provided for vesting of 1/48th of shares per month beginning on 10/15/06. 5,416 shares subject to the option were cancelled in the merger in exchange for a cash payment of $171,849.68, representing the difference between the exercise price of the option and the merger consideration. 14,584 shares subject to the option were assumed by Medtronic, Inc. in the merger and replaced with an option to purchase 21,831 shares of Medtronic, Inc. common stock at an exercise price of $26.24 per share. /s/ Arthur T. Taylor 2007-11-06