EX-4.1



 Exhibit 4.1 

 
  

LEGG MASON, INC., 
 as
Issuer 
 and 

THE BANK OF NEW YORK MELLON, 

as Trustee 
 SECOND
SUPPLEMENTAL INDENTURE 
 Dated as of June 26, 2014 

to 
 INDENTURE 

Dated as of January 22, 2014 

$250,000,000 2.700% Senior Notes due 2019 
  

 
  







 TABLE OF CONTENTS 

 

					
	 	  	PAGE	 
	 ARTICLE 1

DEFINITIONS AND PROVISIONS OF GENERAL
APPLICATION
	  			
		
	 Section 1.01.  Relationship with Indenture
	  	 	1	  
	 Section 1.02.  Definitions
	  	 	2	  
	 Section 1.03.  Applicability
	  	 	8	  
		
	 ARTICLE 2

THE NOTES
	  			
		
	 Section 2.01.  Issue Of Notes
	  	 	9	  
	 Section 2.02.  Form Of Notes, Authentication Certificate
	  	 	9	  
	 Section 2.03.  Additional Notes
	  	 	9	  
	 Section 2.04.  Terms Of Notes Incorporated
	  	 	9	  
	 Section 2.05.  Global Notes
	  	 	9	  
	 Section 2.06.  Transfer And Exchange of Notes
	  	 	9	  
		
	 ARTICLE 3

LIMITATION ON LIENS
	  			
		
	 Section 3.01.  Limitation on Liens
	  	 	13	  
		
	 ARTICLE 4

OPTIONAL REDEMPTION
	  			
		
	 Section 4.01.  Make-Whole Call
	  	 	13	  
		
	 ARTICLE 5

CHANGE OF CONTROL REPURCHASE EVENT
	  			
		
	 Section 5.01.  Offer to Repurchase Upon A Change Of Control Repurchase Event
	  	 	14	  
		
	 ARTICLE 6

LIMITATION ON DISPOSITIONS OF CAPITAL STOCK
OF DESIGNATED SUBSIDIARIES
	  			
		
	 Section 6.01.  Fair Market Value For Designated Subsidiary Stock Dispositions
	  	 	15	  
	 Section 6.02.  Dispositions With One Below Investment Grade Rating
	  	 	15	  
	 Section 6.03.  Dispositions With No Investment Grade Ratings
	  	 	17	  
	 Section 6.04.  Deemed Subsidiary Stock Dispositions
	  	 	17	  
	 Section 6.05.  Stock Disposition Offer Procedures
	  	 	18	  
	 Section 6.06.  Change Of Control Transactions
	  	 	19	  
	 Section 6.07.  Applicability of Article 6
	  	 	19	  


  
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	 ARTICLE 7

MISCELLANEOUS
	  			
		
	 Section 7.01.  Amendments To This First Supplemental Indenture And The Notes
	  	 	19	  
	 Section 7.02.  Certain Trustee Matters
	  	 	19	  
	 Section 7.03.  Continued Effect
	  	 	19	  
	 Section 7.04.  Provisions Binding On Company’s Successors
	  	 	19	  
	 Section 7.05.  Governing Law
	  	 	20	  
	 Section 7.06.  Counterparts
	  	 	20	  


  
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 SECOND SUPPLEMENTAL INDENTURE, dated as of June 26, 2014 (this “Supplemental
Indenture”), between LEGG MASON, INC., a Maryland corporation (the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, as trustee under the Indenture referred to below (in such capacity, the
“Trustee”). 
 RECITALS OF THE COMPANY 

WHEREAS, the Company and the Trustee are parties to an Indenture dated as of January 22, 2014 (the “Indenture”),
providing for the issuance from time to time of one or more series of the Company’s unsecured and unsubordinated debentures, notes or other evidences of indebtedness (the “Securities”), the terms of which are to be determined
as set forth in Section 301 of the Indenture; and 
 WHEREAS, pursuant to Section 901 of the Indenture, without the consent of any
Holders, 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 Indenture to establish the form or terms of securities of any
series as permitted by Sections 201 and 301 of the Indenture; and 
 WHEREAS, pursuant to this Supplemental Indenture, the Company
desires to create a new series of Securities under the Indenture, to be titled the 2.700% Senior Notes due 2019 in an initial aggregate principal amount of $250,000,000 (the “Notes”) and to establish the forms and the terms,
conditions, rights and preferences thereof; 
 WHEREAS, all action on the part of the Company necessary to authorize the issuance of
the Notes under the Indenture and this Supplemental Indenture has been duly taken; and 
 WHEREAS, all acts and requirements necessary to
make the Notes, when executed by the Company and authenticated and delivered by the Trustee as provided in the Indenture and this Supplemental Indenture, the valid and binding obligations of the Company and to make this Supplemental Indenture a
valid and binding agreement in accordance with the Indenture have been done and performed; 
 NOW, THEREFORE, in consideration of the
premises, agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all
Holders of the Notes, as follows: 
 ARTICLE 1 

DEFINITIONS AND PROVISIONS OF GENERAL APPLICATION 

Section 1.01. Relationship with Indenture. With respect to the Notes, this Supplemental Indenture constitutes an integral part of
the Indenture. In the event of any inconsistency between the Indenture and this Supplemental Indenture, this Supplemental 







 
Indenture shall govern with respect to the Notes. The words “herein,” “hereof,” “hereunder,” and words of similar import shall refer to this Supplemental Indenture.

 Section 1.02. Definitions. All terms contained in this Supplemental Indenture shall, except as specifically provided herein
or except as the context may otherwise require, have the meanings defined in the Indenture. Solely with respect to the Notes and this Supplemental Indenture, the following definitions shall be added to Section 101 of the Indenture and replace
any existing definitions (as applicable) in the Indenture, each in appropriate alphabetical order, unless the context requires otherwise. 

“5.50% Notes” means the $650,000,000 5.50% senior notes due May 21, 2019, issued under a supplemental indenture to an
indenture, dated as of May 21, 2012, among the Company, as issuer, and The Bank of New York Mellon, as trustee. 
 “Additional
Assets” means Capital Stock of an entity primarily engaged in or related to, or property used or useful in, the asset management businesses engaged in by the Company and the Subsidiaries of the Company on June 26, 2014 or ancillary
thereto. 
 “Below Investment Grade Rating Event” means the Notes are unrated or rated below Investment Grade by both
Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of a Change of Control (which period shall be
extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by either of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular
reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event hereunder)
if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any
event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event); and
provided further that the Trustee shall have no obligation to make such a written request unless and until the Company, a Holder of a Note or a beneficial owner of a Note has requested the Trustee to make such a written request, has given the
Trustee the necessary contact information for the Rating Agencies, has given the Trustee a form of such request to the Rating Agencies and has provided the Trustee with reasonably sufficient information regarding the particular reduction in rating.

 “Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants or options to purchase any of the foregoing, and in each case including economic equivalents (other than, solely for
the purposes of the covenant set forth in Article 6, preferred stock that is nonparticipating, nonvoting and nonconvertible and reasonable 

  
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amounts of shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants or options to purchase any of the foregoing, and in each case including economic equivalents, granted to employees of the Company or employees of its Subsidiaries not in connection with a Change of Control and
solely in connection with bona fide employee incentive or retention programs). 
 “Change of Control” means the occurrence
of any of the following: 
 (a) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the Company’s properties or assets and those of the Company’s Subsidiaries, taken as a whole, to any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), other than the Company or one of the wholly owned Subsidiaries of the Company; 
 (b) the
adoption of a plan relating to the liquidation or dissolution of the Company; or 
 (c) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), becomes the beneficial owner, directly or indirectly, of more than 50 percent of
the Company’s Voting Stock, measured by voting power rather than number of shares; 
 (d) the Company consolidates with, or merges with
or into, any Person, or any Person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other Person is converted
into or exchanged for cash, securities or other property, other than any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a
majority of the Voting Stock of the surviving Person or any direct or indirect parent company of the surviving Person, immediately after giving effect to such transaction; 

(e) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors; or 

(f) the consummation of a so-called “going private/Rule 13e-3 Transaction” that results in any of the effects described in paragraph
(a)(3)(ii) of Rule 13e-3 under the Exchange Act (or any successor provision). 
 Notwithstanding the foregoing, a transaction effected to
create a holding company will not be deemed to involve a Change of Control if (1) pursuant to such transaction the Company becomes a wholly owned Subsidiary of such holding company and (2) the Holders of the Voting Stock of such holding
company immediately following such transaction are the same as the Holders of the Company’s Voting Stock immediately prior to such transaction. 

  
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 “Change of Control Repurchase Event” means the occurrence of a Change of Control
and a Below Investment Grade Rating Event. 
 “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the
Notes to be redeemed. 
 “Comparable Treasury Price” means, with respect to any Redemption Date, the average of the
Reference Treasury Dealer Quotations for such Redemption Date. 
 “Continuing Directors” means, as of any date of
determination, any member of the Company’s Board of Directors who: 
 (1) was a member of the Company’s Board of Directors on the
first date that the Notes were issued; or 
 (2) was nominated for election or elected to the Company’s Board of Directors with the
approval of a majority of the Continuing Directors who were members of the Board of Directors at the time of such nomination or election. 

“Credit Agreement” means the Credit Agreement dated as of June 27, 2012 among the Company, as borrower, Citibank, N.A.,
as administrative agent and the other banks party thereto, providing for a five year term loan commitment and a revolving commitment, as amended, extended, renewed, restated, supplemented or otherwise modified (in whole or in part, and without
limitation as to amount, terms, conditions, covenants and other provisions) from time to time, and any agreement governing Debt in the form of loans incurred to refinance, in whole or in part, the borrowings and commitments then outstanding or
permitted to be outstanding under such Credit Agreement or a successor credit agreement, whether a revolving credit facility, term loan facility or a combination thereof. 

“Debt” means, with respect to any Person (without duplication): (a) the principal of and premium (if any) in respect of
any obligation of such Person for money borrowed, and any obligation evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable, (b) all obligations of such Person as lessee
under leases required to be capitalized on the balance sheet of the lessee under generally accepted accounting principles and leases of property or assets made as part of any sale and leaseback transaction entered into by such Person, (c) all
obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations of such Person and all obligations of such Person under any title retention agreement (but excluding trade accounts payable
arising in the ordinary course of business), (d) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction, (e) all obligations of the type referred
to in clauses (a) through (d) of other Persons and all dividends of other Persons for the payment of which, in either case, such Person is 

  
 4 








 
responsible or liable, directly or indirectly, as obligor, guarantor or otherwise, including by means of any guarantee, (f) all obligations of the type referred to in clauses
(a) through (d) of other Persons secured by any Lien on any property of such Person (whether or not such obligation is assumed by such Person), and (g) to the extent not otherwise included in this definition, obligations pursuant to
any interest rate agreement, currency exchange protection agreement, commodity price protection agreement or any other similar agreement or arrangement of such Person. 

“Definitive Note” means a definitive Note in certificated form and registered in the name of the Holder thereof and issued in
accordance with the terms of the Indenture, substantially in the form of Exhibit A, except that such Note shall not bear the Global Note Legend and shall not have the Schedule of Exchanges of Note attached thereto. 

“Designated Subsidiary” means any U.S. Subsidiary of the Company and each international Subsidiary of the Company that it
manages which as a consolidated group accounted for more than 60% of the Company’s assets under management as of March 31, 2012, and any Subsidiary that assumes the management of the assets managed by a Designated Subsidiary. 

“Designated Subsidiary Stock Disposition” means (i) the sale or other disposition of any Capital Stock of a Designated
Subsidiary by the Company or a Subsidiary of the Company or (ii) the issuance of Capital Stock by a Designated Subsidiary if, after giving effect thereto, the Company and its Subsidiaries own less than 80% of each series or class of the Capital
Stock of such Designated Subsidiary; provided that a sale or other disposition of Capital Stock of a Designated Subsidiary or the issuance of Capital Stock of a Designated Subsidiary that would otherwise be a Designated Subsidiary Stock
Disposition shall not be a Designated Subsidiary Stock Disposition so long as such sales, dispositions or issuances, measured cumulatively from June 23, 2014 to the date of such sale, disposition or issuance, relate to Capital Stock of one of
more Designated Subsidiaries that manage in the aggregate, at their respective times of disposition, less than the lower of (a) $40 billion and (b) 10% of all Designated Subsidiaries’ assets under management on the last day of the
calendar month preceding the applicable sale, disposition or issuance of Capital Stock. The foregoing exception does not apply to a transaction, or series of transactions, that will exceed the threshold specified in the previous sentence. 

“Disposition Amount” means the amount of cash and the fair market value of any other consideration received in a Designated
Subsidiary Stock Disposition net of: 
 (1) brokerage commissions and other fees and expenses (including fees and expenses of legal counsel,
accountants and investment banks) attributable to the portion of the Capital Stock constituting such Designated Subsidiary Stock Disposition, 

(2) provisions for taxes payable as a result of such Designated Subsidiary Stock Disposition attributable to the portion of the Capital Stock
constituting such Designated Subsidiary Stock Disposition (after taking into account any available tax credits or deductions and any tax sharing arrangements), and 

  
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 (3) the amount of any payments that the Company estimates in good faith will be required
to be made in respect of contingent liabilities directly attributable to such Designated Subsidiary Stock Disposition and retained by the Company or any Subsidiary of the Company after such Designated Subsidiary Stock Disposition, provided
that any amount remaining after adjustments, revaluations or liquidations of such contingent liabilities shall constitute a Disposition Amount, 

provided that if immediately prior to giving effect to such Designated Subsidiary Stock Disposition, the Company and its Subsidiaries own 80% or
greater of the class or series of Capital Stock that is the subject of such Designated Subsidiary Stock Disposition, the “Disposition Amount” shall be limited to the portion of the amount of cash and the fair market value of any
other consideration attributable to the Capital Stock sold, otherwise disposed of or issued that results in ownership by the Company and its Subsidiaries falling below 80% of the class or series of Capital Stock. For example, if immediately prior to
giving effect to a Designated Subsidiary Stock Disposition, the Company and its Subsidiaries own 85% of the class or series of Capital Stock that is the subject of such Designated Subsidiary Stock Disposition and after giving effect to such
Designated Subsidiary Stock Disposition, the Company and its Subsidiaries own 70% of such class or series of Capital Stock, the Disposition Amount shall equal the amount of cash and the fair market value of any other consideration received in such
Designated Subsidiary Stock Disposition, for 10% of the class or series of Capital Stock. 
 “Global Note Legend” means the
legend set forth in Section 2.06(f) of this Supplemental Indenture, which is required to be placed on all Global Notes issued under this Indenture. 

“Global Notes” means, individually and collectively, Notes substantially in the form of Exhibit A that bear the Global Note
Legend, that have the Schedule of Exchanges of Note attached thereto and that are deposited with or on behalf of and registered in the name of the Depositary or its nominee. 

“Indenture” shall have the meaning set forth in the recitals to this Supplemental Indenture. 

“Independent Investment Banker” means any of the Reference Treasury Dealers appointed by the Company. 

“Indirect Participant” means a Person who holds a beneficial interest in a Global Note through a Participant. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories
of Moody’s) and BBB- or better by S&P (or its equivalent under any successor rating categories of S&P) (or, in each case, if such Rating Agency ceases to rate the Notes for reasons outside of the control of the Company, the equivalent
investment grade credit rating from any Rating Agency selected by the Company as a replacement Rating Agency). 

  
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 “Issue Date” means, with respect to the Notes being issued on the date hereof,
the date hereof and with respect to any additional Notes, the date of original issuance of such additional Notes. 

“Moody’s” means Moody’s Investor Services Inc., or any successor thereto, including a replacement rating agency
selected by the Company as provided in the definition of Rating Agency. 
 “Notes” shall have the meaning set forth in the
recitals to this Supplemental Indenture. 
 “Participant” means, with respect to the Depositary, Euroclear or Clearstream,
a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream). 

“Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases to
rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) under the
Exchange Act selected by the Company as a replacement agency for Moody’s or S&P, or both, as the case may be. 
 “Reference
Treasury Dealer” means each of Citigroup Global Markets Inc. and J.P. Morgan Securities LLC and their respective successors and any other nationally recognized investment banking firm that is a primary U.S. Government securities dealer in
New York City (a “Primary Treasury Dealer”) appointed from time to time by the Company; provided that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute for such entity another
nationally recognized investment banking firm that is a Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotation”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed as a percentage of its principal amount) quoted in writing by such Reference Treasury
Dealer as of 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date but for such redemption; provided,
however, that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be reduced (solely for the purpose of this calculation) by the amount
of interest accrued thereon to, but excluding, such Redemption Date. 
 “S&P” means Standard & Poor’s
Ratings Services, a division of McGraw-Hill, Inc., or any successor thereto, including a replacement rating agency selected by the Company as provided in the definition of Rating Agency. 

  
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 “Securities” shall have the meaning set forth in the recitals to this
Supplemental Indenture. 
 “Significant Subsidiary” means a Subsidiary of the Company, including its Subsidiaries, which
meets any of the following conditions: (1) the Company’s and its other Subsidiaries’ investments in and advances to the Subsidiary exceed 25 percent of the total assets of the Company and its Subsidiaries consolidated as of the end of
the most recently completed fiscal year (for a proposed combination between entities under common control, this condition is also met when the number of common shares exchanged or to be exchanged by the Company exceeds 25 percent of its total common
shares outstanding at the date the combination is initiated); or (2) the Company’s and its other Subsidiaries’ proportionate share of the total assets (after intercompany eliminations) of the Subsidiary exceeds 25 percent of the total
assets of the Company’s and its Subsidiaries consolidated as of the end of the most recently completed fiscal year; or (3) the Company’s and its other Subsidiaries’ equity in the income from continuing operations before income
taxes, extraordinary items and cumulative effect of a change in accounting principle of the Subsidiary exclusive of amounts attributable to any non-controlling interests exceeds 25 percent of such income of the Company and its Subsidiaries
consolidated for the most recently completed fiscal year. 
 “Subsidiary” when used in connection with a Person that is not
the Company has a correlative meaning to that set forth in the Indenture substituting the Person for the Company. 
 “Treasury
Rate” means, with respect to any Redemption Date, the rate per year equal to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

“Voting Stock” as applied to stock of any Person, means shares, interests, participations or other equivalents in the equity
interest (however designated) in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by
reason of the occurrence of a contingency. 
 Section 1.03. Applicability. The provisions contained in this Supplemental
Indenture shall apply only to the Notes and not to any other series of Securities issued under the Indenture and any covenants provided herein are solely for the benefit of the Holders of the Notes and not for the benefit of the Holders of any other
series of Securities issued under the Indenture. 

  
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 ARTICLE 2 

THE NOTES 

Section 2.01. Issue Of Notes. A new series of Securities is to be issued under the Indenture as supplemented by this Supplemental
Indenture. The series shall be titled the “2.700% Senior Notes due 2019.” 
 Section 2.02. Form Of Notes, Authentication
Certificate. The new series of Notes initially shall be issuable in the form of one or more Global Notes, registered in the name of the Depositary or its nominee. The Depository Trust Company shall be the Depositary for such Global Notes. The
form and terms of the Notes and the Trustee’s certificate of authentication shall be substantially as set forth in Exhibit A hereto. Except as otherwise provided herein, the Notes shall in all respects be subject to the terms, conditions and
covenants of the Indenture as supplemented by this Supplemental Indenture (including the form of Note set forth as Exhibit A hereto, the terms of which are incorporated in and made a part of this Supplemental Indenture for all intents and purposes).

 Section 2.03. Additional Notes. The Company will initially issue $250,000,000 aggregate principal amount of the Notes. The
Company may, without notice to or the consent of the Holders or beneficial owners of the Notes, issue in a separate offering additional Notes having the same ranking, interest rate, maturity and other terms as the Notes (except for the Issue Date
and public offering price and, if applicable, the initial Interest Payment Date and initial interest accrual date). No additional Notes may be issued if an Event of Default has occurred and is continuing with respect to the Notes. Any additional
Notes, together with the original Notes, will constitute a single series under the Indenture as supplemented by this Supplemental Indenture. Such additional Notes will be fungible with the Outstanding Notes for United States federal income tax
purposes or will be issued under a separate CUSIP number. 
 Section 2.04. Terms Of Notes Incorporated. The terms and provisions
contained in the form of Notes attached as Exhibit A shall constitute, and are hereby expressly made, a part of this Supplemental Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this
Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 
 Section 2.05. Global Notes. The
Notes will be represented by one or more Global Notes. The Global Notes will be deposited upon issuance with the Trustee as custodian for The Depository Trust Company (“DTC”), and registered in the name of DTC or its nominee, in
each case for credit to an account of a Participant or Indirect Participant. 
 Section 2.06. Transfer And Exchange of Notes.
(a) Global Notes. A Global Note may not be transferred as a whole except by the Depositary (who shall initially be DTC) to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Notes unless (i) the Depositary (A) 

  
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notifies the Company that it is unwilling or unable to continue as Depositary for the Global Notes or (B) has ceased to be a clearing agency registered under the Exchange Act, and in each
case the Company fails to appoint a successor Depositary within 90 days after receiving such notice or becoming aware of such condition; (ii) the Company, at its option but subject to Depositary procedures, notifies the Trustee in writing that
it elects to cause the issuance of Definitive Notes in exchange for Global Notes (in whole but not in part); or (iii) there shall have occurred and be continuing a Default or Event of Default with respect to the Notes and the Depositary
requests such exchange. Upon the occurrence of any of the preceding events in subclauses (i), (ii) or (iii) of this Section 2.06(a) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee.
Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 304 and 306 of the Indenture. A Global Note may not be exchanged for another Note other than as provided in this Section 2.06; however, beneficial
interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b) or (c) hereby. 
 (b)
Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of this Supplemental Indenture and the applicable
procedures of the Depositary, Euroclear and Clearstream. Transfers of beneficial interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii) below, as applicable: 

(i) Beneficial Interests in the Same Global Note. Beneficial interests in any Global Note may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in the same Global Note. No written orders or instructions shall be required to be delivered to the Trustee to effect the transfers described in this Section 2.06(b)(i). 

(ii) All Other Beneficial Interests in Global Notes. If not subject to Section 2.06(b)(i) above, the transferor of
such beneficial interest must deliver to the Trustee either (A) (1) a written order from a Participant or an Indirect Participant given to the Depositary directing the Depositary to credit or cause to be credited a beneficial interest in
another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions containing information regarding the Participant account to be credited with such increase or (B) (1) a written
order from a Participant or an Indirect Participant given to the Depositary directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given
by the Depositary to the Trustee containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (1) above. Upon satisfaction of all of the requirements for
transfer or exchange of beneficial interests in Global Notes contained in this Supplemental Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount at maturity of the relevant Global
Notes pursuant to Section 2.06(g). 

  
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 (c) Beneficial Interests for Definitive Notes. If any holder of a beneficial interest in a
Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in
Section 2.06(b)(ii), the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g), and the Company shall execute and the Trustee shall authenticate and deliver
to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c) shall be registered in such name or names and
in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Trustee through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Notes are so registered. 
 (d) Definitive Notes for Beneficial Interests in Global Notes. A
Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Note to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time. Upon receipt of
a request for such an exchange or transfer, the Trustee shall cancel the applicable Definitive Note and increase or cause to be increased the aggregate principal amount of a Global Note pursuant to Section 2.06(g). 

(e) Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes, the Trustee shall register the transfer or
exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Trustee the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Trustee duly executed by such Holder or by its attorney, duly authorized in writing. 
 (f) Global Note Legend.
Each Global Note shall bear a legend in substantially the following form: 
 THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
REQUIRED PURSUANT TO SECTION 2.06 OF THE SUPPLEMENTAL INDENTURE TO THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06 OF THE SUPPLEMENTAL INDENTURE TO THE INDENTURE, (3) THIS GLOBAL NOTE
MAY BE DELIVERED TO THE TRUSTEE FOR 

  
 11 








 
CANCELLATION PURSUANT TO THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 

(g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been
exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be returned to or retained and canceled by the Trustee in accordance with the Indenture. At
any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on the Schedule of Exchanges of Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an
endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 

(h) General Provisions. 

(i) To permit registrations of transfers and exchanges permitted hereunder, the Company shall execute and the Trustee shall
authenticate Global Notes and Definitive Notes upon the Company’s order or at the Trustee’s request in accordance with the Indenture. 

(ii) No service charge shall be made to a holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note
for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith. 

(iii) The Trustee shall not be required to register the transfer of or exchange any Note selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part. 
 (iv) All Global Notes and Definitive Notes issued
upon any registration of transfer or exchange of Global Notes or Definitive Notes shall be the valid and legally binding obligations of the Company, evidencing the same Debt, and entitled to the same benefits under this Indenture, as the Global
Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 
 (v) The Company shall not be
required (A) to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of 

  
 12 








 
business 15 days before the day of any selection of Notes for redemption and ending at the close of business on the day of selection, (B) to register the transfer of or to exchange any Note
so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part, (C) to register the transfer of or to exchange a Note between a record date and the next succeeding Interest Payment Date or
(D) to register the transfer of or to exchange a Note tendered and not withdrawn in connection with a Change of Control Offer. 

(vi) Prior to due presentment for the registration of a transfer of any Note, the Trustee, the Paying Agent and the Company may
deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and (subject to Section 307 of the Indenture) interest on such Notes and for all other
purposes, and none of the Trustee, the Paying Agent or the Company shall be affected by notice to the contrary. 
 (vii)
Neither the Trustee nor the registrar shall have any duty to monitor the Company’s compliance with or have any responsibility with respect to the Company’s compliance with any federal or state securities laws in connection with
registrations of transfers and exchanges of the Notes. The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Supplemental Indenture, the Indenture or under
applicable law with respect to any transfer of any interest in any Notes (including any transfers between or among the Depositary’s Participants or beneficial owners of interests in any Global Note) other than to require delivery of such
certificates and other documentation, as is expressly required by, and to do so if and when expressly required by, the terms of this Supplemental Indenture and Indenture and to examine the same to determine substantial compliance as to form with the
express requirements hereof or thereof. 
 ARTICLE 3 

LIMITATION ON LIENS 

Section 3.01. Limitation on Liens. The Company will not, and will not cause or permit any Subsidiary to, create, assume, incur or
guarantee any indebtedness for borrowed money that is secured by a Lien on any Voting Stock or profit participating equity interests of any Significant Subsidiary, without providing that the Notes (together with, if the Company shall so determine,
any other indebtedness of, or guarantee by, the Company ranking equally with the Notes) will be secured equally and ratably with or prior to all other indebtedness secured by such Lien on the Voting Stock or profit participating equity interests of
such Significant Subsidiary. 
 ARTICLE 4 

OPTIONAL REDEMPTION 

Section 4.01. Make-Whole Call. The Company has the option to redeem all or a portion of the Notes at any time, or from time to
time, on no less than 30 nor more than 

  
 13 








 
60 days’ notice mailed to Holders thereof, at a “Redemption Price” equal to the greater of (a) 100% of the principal amount of the Notes to be redeemed or (b) the
sum of the present values of the Remaining Scheduled Payments discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 0.20% (20 basis points), plus accrued and
unpaid interest, if any, on the principal amount being redeemed to, but excluding, the Redemption Date, provided that the principal amount of any Note remaining outstanding after a redemption shall be $2,000 or a higher integral multiple of
$1,000. The Company shall give the Trustee written notice of the Redemption Price promptly after the calculation thereof and the Trustee shall not be responsible for such calculation. 

ARTICLE 5 
 CHANGE
OF CONTROL REPURCHASE EVENT 
 Section 5.01. Offer to Repurchase Upon A
Change Of Control Repurchase Event. (a) If a Change of Control Repurchase Event occurs, the Company will make an offer to each Holder of Notes to repurchase all or any part (in multiples of $1,000 principal amount) of that Holder’s
Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to the date of purchase. Within 30 days following any Change of Control Repurchase
Event, or, at the Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the Company will mail a notice to each Holder of Notes describing the transaction or transactions that constitute or
may constitute the Change of Control Repurchase Event and offering to repurchase the Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The
notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a
result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its obligations under this Article 5, the Notes or the Indenture by virtue of such conflict. 

(b) On the Change of Control Repurchase Event payment date, the Company will, to the extent lawful: 

(1) accept for payment all Notes or portions of the Notes properly tendered pursuant to the Company’s offer; 

(2) deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of the
Notes properly tendered; and 

  
 14 








 (3) deliver or cause to be delivered to the Trustee the Notes properly accepted,
together with an Officer’s Certificate stating the aggregate principal amount of Notes being purchased by the Company. 
 (c) The
Paying Agent will promptly mail to each Holder of Notes properly tendered the purchase price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a principal amount of $2,000 or a higher integral multiple of $1,000. 

(d) The Company will not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes
an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer. 

ARTICLE 6 

LIMITATION ON DISPOSITIONS OF CAPITAL STOCK
OF DESIGNATED SUBSIDIARIES 
 Section 6.01. Fair Market Value For Designated Subsidiary
Stock Dispositions. If, at the time when any of the 5.50% Notes are outstanding, the Company or a Subsidiary consummates a sale or other disposition of any Capital Stock of a Designated Subsidiary or a Designated Subsidiary issues Capital Stock,
in each case to a Person other than the Company or a Subsidiary, then the Company or the Subsidiary must receive consideration at the time of a Designated Subsidiary Stock Disposition at least equal to the fair market value of such Capital Stock as
determined by the Company’s Board of Directors (acting in good faith). 
 Section 6.02. Dispositions With One Below Investment Grade
Rating. (a) If, at the time when any of the 5.50% Notes are outstanding, the Company or any Subsidiary engages in a Designated Subsidiary Stock Disposition and, immediately after giving effect to the Designated Subsidiary Stock Disposition,
the senior unsecured Debt of the Company is (i) unrated or rated below Investment Grade by one Rating Agency and (ii) rated Investment Grade by the other Rating Agency, the Company or any Subsidiary may, at its option, apply, no later than
six months following the consummation thereof (or, if later, six months after the execution of any agreement with respect to such application, which agreement is signed within six months of the date of such Designated Subsidiary Stock Disposition)
an amount equal to the Disposition Amount to: 
 (1) redeem or repay any Debt which was secured by the Capital Stock sold or
otherwise transferred in such Designated Subsidiary Stock Disposition, 
 (2) repay term loans under any Credit Agreement
otherwise maturing within one year of the repayment date, or 
 (3) reinvest in Additional Assets; 

  
 15 








 provided that if at the time a Designated Subsidiary Stock Disposition has occurred, (a)(i) Moody’s
rating on the senior unsecured Debt of the Company is Baa1 or lower and (ii) S&P’s rating on the senior unsecured Debt of the Company is BBB+ or lower, and the applicable Rating Agency has announced or publicly confirmed or informed
the Trustee in writing that the rating of the senior unsecured Debt of the Company is on watch for possible downgrade in connection with the Designated Subsidiary Stock Disposition, or (b) the applicable Rating Agency has announced or publicly
confirmed or informed the Trustee in writing that the rating of the senior unsecured Debt of the Company is on watch for possible downgrade to a rating below Baa3 or BBB-, the ratings test in this Section 6.02 shall be applied on the earlier of
(x) the date the watch has ended or (y) the 90th day after the Designated Subsidiary Stock Disposition has occurred. The amount of the Disposition Amount not applied or invested as provided in this paragraph will constitute the
“Excess Disposition Amount.” 
 (b) When the aggregate Excess Disposition Amount from all Designated Subsidiary Stock
Dispositions equals or exceeds $50 million, the Company will be required to make an offer to purchase for cash the Notes from all Holders, and, if applicable, redeem or repay (or make an offer to do so) any other Debt of the Company that is pari
passu in payment in right of the Notes, which is referred to as “Pari Passu Debt.” The Company is required to redeem or repay such Debt with the proceeds from or as a result of any Designated Subsidiary Stock Disposition (or offer
to do so), in an aggregate principal amount of Notes and such Pari Passu Debt equal to the Excess Disposition Amount as follows: 

(1) the Company will (a) make an offer to purchase for cash (a “Stock Disposition Offer”) the Notes to
all Holders in accordance with the procedures set forth in this Supplemental Indenture, and (b) purchase or repay (or make an offer to do so) any such other Pari Passu Debt, pro rata in proportion to the respective outstanding principal amounts
of the Notes, and such other Pari Passu Debt required to be redeemed, the maximum principal amount of Notes, and Pari Passu Debt that may be redeemed out of the amount (the “Payment Amount”) of such Excess Disposition Amount, 

(2) the offer price for the Notes will be payable in cash in an amount equal to 100% of the principal amount of the Notes
tendered pursuant to a Stock Disposition Offer, plus accrued and unpaid interest thereon, if any, to the date such Stock Disposition Offer is consummated (the “Offered Price”), in accordance with the procedures set forth in this
Supplemental Indenture, and the repayment or redemption price for such Pari Passu Debt (the “Pari Passu Debt Price”) shall be as set forth in the related documentation governing such Debt, 

(3) if the aggregate Offered Price of Notes validly tendered and not withdrawn by Holders thereof exceeds the


  
 16 








 
pro rata portion of the Payment Amount allocable to the Notes, Notes to be purchased will be selected on a pro rata basis, and 

(4) upon completion of such Stock Disposition Offer in accordance with the foregoing provisions, the Excess Disposition Amount
with respect to which such Stock Disposition Offer was made shall be reset to zero. 
 (c) To the extent that the sum of the aggregate
Offered Price of Notes tendered pursuant to a Stock Disposition Offer and the aggregate Pari Passu Debt Price paid to the holders of such Pari Passu Debt is less than the Payment Amount relating thereto, the Company may use such excess amount for
general corporate purposes. 
 Section 6.03. Dispositions With No Investment Grade Ratings. If, at the time when any of the
5.50% Notes are outstanding, the Company or any Subsidiary engages in a Designated Subsidiary Stock Disposition and, immediately after giving effect to the Designated Subsidiary Stock Disposition and the application of the proceeds therefrom,
neither Rating Agency rates the senior unsecured Debt of the Company Investment Grade, then no later than 30 Business Days following the consummation of such Designated Subsidiary Stock Disposition or, if later, 30 Business Days following the
related ratings action, the Company shall apply an amount equal to the Disposition Amount to: 
 (1) redeem or repay any Debt which was
secured by the Capital Stock sold or otherwise transferred in such Designated Subsidiary Stock Disposition, 
 (2) repay term loans under
any Credit Agreement otherwise maturing within one year of the repayment date, or 
 (3) conduct a Stock Disposition Offer in accordance
with Section 6.02(b); 
 provided that if at the time a Designated Subsidiary Stock Disposition has occurred, (a) (i) Moody’s
rating on the senior unsecured Debt of the Company is Baa1 or lower or (ii) S&P’s rating on the senior unsecured Debt of the Company is BBB+ or lower, and the applicable Rating Agency has announced that the rating of the senior
unsecured Debt of the Company is on watch for possible downgrade in connection with the Designated Subsidiary Stock Disposition, or (b) the applicable Rating Agency has announced or publicly confirmed or informed the Trustee in writing that the
rating of the senior unsecured Debt of the Company is on watch for possible downgrade to a rating below Baa3 or BBB-, the ratings test in this Section 6.03 shall be applied on the earlier of (x) the date the watch has ended or (y) the
90th day after the Designated Subsidiary Stock Disposition has occurred. 
 Section 6.04. Deemed Subsidiary Stock
Dispositions. In the event of the transfer of substantially all (but not all) of the assets of the Company as an entirety to a Person in a transaction covered by and effected in accordance with Section 801 of the Indenture, the successor or
transferee party shall be deemed to have sold for cash at fair market value the Capital Stock of the Designated Subsidiaries not so transferred for purposes of 

  
 17 








 
Sections 6.02 and 6.03, and shall comply with the provisions of this Article 6 with respect to such deemed sale as if it were an Designated Subsidiary Stock Disposition (with such fair market
value being deemed to be the Disposition Amount for such purpose). 
 Section 6.05. Stock Disposition Offer Procedures.
(a) Within 15 Business Days of becoming obligated to make a Stock Disposition Offer, the Company will mail a notice to the Holders of the Notes describing the transaction or transactions that gave rise to the Stock Disposition Offer and
offering to purchase for cash at the Offered Price the Notes on a payment date specified in such notice, which shall be, subject to Section 6.03 and any contrary requirements of applicable law, a Business Day no earlier than 30 days nor later
than 60 days from the date such notice is mailed. 
 (b) On or before the Stock Disposition Offer purchase date (the “Purchase
Date”), the Company will, to the extent lawful: 
 (1) accept for payment all Notes or portions of Notes properly
tendered pursuant to the Stock Disposition Offer in accordance with the provisions of this Article 6, including Section 6.02(b)(3); 

(2) deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of the
Notes properly tendered to be held for payment of the Notes in accordance with the provisions of this Article 6; 
 (3)
deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate principal amount of Notes being purchased by the Company. 

(c) Holders of Notes electing to have Notes purchased shall be required to surrender the Notes, with any appropriate forms duly completed, to
the Company or its agent at the address specified in the notice at least three Business Days prior to the Purchase Date. Holders shall be entitled to withdraw their election if the Trustee or the Company receives not later than one Business Day
prior to the Purchase Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note that was delivered for purchase by the Holder and a statement that such Holder is withdrawing its
election to have such Note purchased. 
 (d) The Paying Agent will promptly mail to each Holder of Notes properly tendered the purchase
price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each
new Note will be in a principal amount of $2,000 or a higher integral multiple of $1,000. 
 (e) The Company will comply with applicable
tender offer rules, including the requirements of Rule 14e-1 under the Exchange Act and any other applicable laws and regulations in connection with the purchase of notes pursuant to a Stock Disposition Offer.


  
 18 








 
To the extent the provisions of any securities laws or regulations conflict with the provisions of this Article 6, the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Supplemental Indenture, the Notes or the Indenture hereunder by virtue of such conflict. 

Section 6.06. Change Of Control Transactions. Notwithstanding any other Section of this Article 6, any transaction that qualifies
as a Change of Control under clause (a) of the definition thereof that results in a Change of Control Repurchase Event for which an offer to repurchase the Notes is otherwise required in accordance with this Article 6 shall be governed by the
provisions in Article 5 hereof and/or the provisions in Article Eight of the Indenture and not by this Article 6. 
 Section 6.07.
Applicability of Article 6. For the avoidance of doubt, this Article 6 shall no longer be applicable when the 5.50% Notes are no longer outstanding by way of redemption, repayment or otherwise. 

ARTICLE 7 

MISCELLANEOUS 

Section 7.01. Amendments To This Supplemental Indenture And The Notes. Subject to the rights of the Company and the Trustee set
forth in Section 901 of the Indenture and in addition to the rights of the Holders of the Notes set forth in Section 902 of the Indenture, the Company and the Trustee may enter into a supplemental indenture to the Indenture or this
Supplemental Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or this Supplemental Indenture which affect the Notes or of modifying in any manner the rights of the
Holders of the Notes under the Indenture only with the consent of Holders of a majority in principal amount of all Outstanding Notes. 

Section 7.02. Certain Trustee Matters. The recitals contained herein 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 Supplemental Indenture or the Notes or the proper authorization or the due execution hereof or thereof by the
Company. 
 Section 7.03. Continued Effect. Except as expressly supplemented and amended by this Supplemental Indenture, the
Indenture shall continue in full force and effect in accordance with the provisions thereof, and the Indenture (as further supplemented and amended by this Supplemental Indenture) is in all respects hereby ratified and confirmed. This Supplemental
Indenture and all its provisions shall be deemed a part of the Indenture in the manner and to the extent herein and therein provided. 

Section 7.04. Provisions Binding On Company’s Successors. All the covenants, stipulations, promises and agreements in this
Supplemental Indenture contained by the Company shall bind its successors and assigns whether so expressed or not. 

  
 19 








 Section 7.05. Governing Law. This Supplemental Indenture and the Notes shall be
governed by and construed in accordance with the laws of the State of New York. 
 Section 7.06. Counterparts. This Supplemental
Indenture may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

  
 20 








 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed by their respective officers thereunto duly authorized as of the day and year first above written 
  

					
	 LEGG MASON, INC.

		
	 By:  
	 	 /s/ Peter H. Nachtwey

		 	Name:	 	Peter H. Nachtwey
		 	Title:	 	Senior Executive Vice President and Chief Financial Officer


 [Supplemental Indenture Company Signature Page] 







 
			
	 THE BANK OF NEW YORK MELLON,

as Trustee

		
	 By:  
	 	 /s/ Latoya S. Elvin

		 	Name: Latoya S. Elvin
		 	Title: Vice President


 [Supplemental Indenture Trustee Signature Page] 







 Exhibit A 

Form of Note 







 [FACE OF NOTE] 

LEGG MASON, INC. 
 2.700% Senior
Note due 2019 
 [CUSIP / CINS / COMMON CODE] 

Dated:
[—]                             

 

			
	No. [—]	 	[Initially]1 $[—]

 LEGG MASON, INC., a Maryland corporation (the “Company,” which term includes any successor
under the Indenture hereinafter referred to), for value received, promises to pay to                     , or its registered assigns, the principal
sum of $             DOLLARS [or such other amount as indicated on the Schedule of Exchanges of Note attached hereto]2 on July 15,
2019. 
 Interest Rate: 2.700% per annum. 

Interest Payment Dates: January 15 and July 15, commencing on January 15, 2015. 

Regular Record Dates: January 1 and July 1. 

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

	1 	Include in Global Note. 


	2 	Include in Global Note. 


  
 A-1 








 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed, manually or in
facsimile. 
  

			
	 LEGG MASON, INC.

		
	 By:  
	 	  

		 	Name:
		 	Title:



  
 A-1 








 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

 

			
	 THE BANK OF NEW YORK MELLON,

as Trustee

		
	 By:  
	 	  

		 	Authorized Signatory


 Dated: 

  
 A-2 








 [REVERSE SIDE OF NOTE] 

LEGG MASON, INC. 
 2.700% Senior
Note Due 2019 
  

	1.	Title of Series; Indenture. 

 This is one of a series of Securities issued under
the indenture dated as of January 22, 2014 (as amended from time to time, the “Base Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”), as supplemented by the Second
Supplemental Indenture, dated as of June 26, 2014 (the “Supplemental Indenture”) between the Company and the Trustee. The Base Indenture as so supplemented by the Supplemental Indenture is referred to herein as the
“Indenture.” The title of the Securities of this series is 2.700% Senior Notes due 2019 (the “Notes”). Capitalized terms used herein are used as defined in the Indenture unless otherwise indicated. The terms of the
Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement
of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Indenture will control. 

The Indenture limits the original aggregate principal amount of the Notes to $250,000,000, but additional Notes may be issued pursuant to the
Indenture, and the originally issued Notes and all such additional Notes will form a single series of Securities. 
  

	2.	Principal and Interest. 

 The Company promises to pay the principal of this Note
on July 15, 2019. The Company promises to pay interest on the principal amount of this Note until the principal of this Note is paid or made available for payment on each Interest Payment Date, as set forth on the face of this Note, at the rate
of 2.700% per annum. 
 Interest will be payable semiannually on each Interest Payment Date, to the Holders of record of the Notes at
the close of business on the January 1 or July 1 (whether or not a Business Day) immediately preceding the Interest Payment Date, commencing January 15, 2015. 

Interest on this Note will accrue from the most recent date to which interest has been paid or duly provided for on this Note (or, if there is
no existing default in the payment of interest and if this Note is authenticated between a regular record date and the next Interest Payment Date, from such Interest Payment Date) or, if no interest has been


  
 A-3 








 
paid or duly provided for, from [June 26, 2014].3 Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

Interest not paid when due and any interest on principal, premium or interest not paid when due will be paid to the Persons that are Holders
on a special record date as further described in the Indenture. 
  

	3.	Redemption and Repurchase. 

 This Note is subject to optional redemption, and may
be the subject of an offer to purchase upon the occurrence of a Change of Control Repurchase Event or a Designated Subsidiary Stock Disposition, as further described in the Indenture. There is no sinking fund or mandatory redemption applicable to
this Note. 
  

	4.	Registered Form; Denominations; Transfer; Exchange. 

 The Notes are in registered
form without coupons in denominations of $2,000 principal amount and any multiple of $1,000 in excess thereof. A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Trustee may require a Holder to furnish
appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. Pursuant to the Indenture, there are certain periods during which the Trustee will not be required to issue, register the
transfer of or exchange any Note or certain portions of a Note. 
  

	5.	Defaults and Remedies. 

 If one of certain Events of Default, as defined in the
Indenture, occurs with respect to the Notes and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Notes may declare all the Notes to be due and payable. If a bankruptcy or insolvency Default with respect to the
Company occurs and is continuing, the Notes automatically become due and payable. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Notes. Subject to certain limitations, Holders of a majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise of remedies. 

 

	6.	Amendment and Waiver. 

 Subject to certain exceptions, the Indenture and the Notes
may be amended, or default may be waived, with the consent of the Holders of a majority in principal amount of the outstanding Notes. Without notice to or the consent of any Holder, the Company and the Trustee may amend or supplement the Indenture
or the Notes to, among other things, cure any ambiguity or correct or supplement any provision that may be 
  

	3 	For additional Notes the date inserted here should be the most recent interest payment date or, if none, June 26, 2014. 


  
 A-4 








 
inconsistent with any other provision, in each case if such amendment or supplement does not adversely affect the interests of the Holders of the Notes in any material respect. 

 

	7.	Authentication. 

 This Note is not valid until the Trustee signs the certificate
of authentication on the other side of this Note. 
  

	8.	Governing Law. 

 This Note shall be governed by, and construed in accordance with,
the laws of the State of New York. 
  

	9.	Abbreviations. 

 Customary abbreviations may be used in the name of a Holder or an assignee, such
as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to Minors Act). 

  
 A-5 








 [SCHEDULE OF EXCHANGES OF NOTE]4 

The following exchanges of a part of this Global Note for Definitive Notes or a part of another Global Note have been made: 

 

									
	 Date of Exchange
	  	Amount of decrease
in principal amount
of this Global Note	  	Amount of increase
in principal amount
of this Global Note	  	Principal amount of
this Global Note
following such
decrease (or
increase)	  	Signature of
authorized officer
of Trustee


 

	4 	For Global Notes 


  
 A-6 








 TRANSFER NOTICE 

FOR VALUE RECEIVED the undersigned registered Holder hereby sell(s), assign(s) and transfer(s) unto 

Insert Taxpayer Identification No. 
  

 
 Please print or typewrite name and
address including zip code of assignee 
  
  

the within Note and all rights thereunder, hereby irrevocably constituting and appointing 

 
  

attorney to transfer said Note on the books of the Company with full power of substitution in the premises. 

 

							
	 Dated:
	 	  
	    	  
	  	
				
		 		    	  
	  	
		 		    	Signature(s)	  	
		 		    		  	
				
	 	 	 	    		  	
	Signature Guarantee	    		  	
			
	Signature(s) must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program pursuant
to Securities and Exchange Commission Rule 17Ad-15 if Notes are to be delivered other than to and in the name of the registered holder.	    		  	


  
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	Fill in for registration of 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
	    	  
 NOTICE: The above signature(s) 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.
	  	
				
		 		    	  
	  	
		 		    	Social Security or Other Taxpayer Identification Number	  	


  
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