Document:

SENIOR MINOTE SM

EXHIBIT 4.2

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (the "Depositary"), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of the Depositary, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY, TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF A SUCCESSOR DEPOSITARY.

[If the Security is an Original Issue Discount Security, insert-FOR PURPOSES OF SECTION 1273 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE ISSUE PRICE OF THIS SECURITY IS . . . . .% OF ITS PRINCIPAL AMOUNT AND THE ISSUE DATE IS . . . . . . . . . .]

THIS SECURITY IS NOT A DEPOSIT AND IS NOT INSURED BY A FEDERAL AGENCY.

MARSHALL & ILSLEY CORPORATION

SENIOR MINOTESM

	
REGISTERED NO. _________________
	 	
CUSIP NO. ____________

	
PRINCIPAL AMOUNT:
	
ISSUE DATE:

	
INTEREST RATE:
	
STATED MATURITY DATE:

	
ORIGINAL ISSUE DISCOUNT SECURITY:

[       ]  Yes  [       ]  No
	 
	
INTEREST PAYMENT DATES (check applicable):

	
[       ]  Monthly

[       ]  Semi-annual
	
[       ]  Quarterly

[       ]  Annual
	 
	
REDEMPTION DATE(S):
	
REDEMPTION PRICE(S):

	
REPAYMENT DATE(S):
	
REPAYMENT PRICE(S):

	
SURVIVOR'S OPTION:     [       ]  Yes  [       ]  No

 

                MARSHALL & ILSLEY CORPORATION, a Wisconsin corporation (hereinafter called the "Company", which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., as nominee for The Depository Trust Company, or registered assigns, the Principal Amount specified above on the Stated Maturity Date specified above, and to pay interest, until the Principal Amount is paid, thereon at the Interest Rate specified above from and including the Issue Date specified above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for as follows:  the Interest Payment Dates for a Security that provides for monthly interest payments shall be the fifteenth day of each calendar month (or the next Business Day), commencing in the calendar month that next succeeds the month of the Issue Date; in the case of a Security that provides for quarterly interest payments, the Interest Payment Dates shall be the fifteenth day of each third month (or the next Business Day), commencing in the third succeeding calendar month following the month of the Issue Date; in the case of a Security that provides for semi-annual interest payments, the Interest Payment dates shall be the fifteenth day of each sixth month (or the next Business Day), commencing in the sixth succeeding calendar month following the month of the Issue Date; and in the case of a Security that provides for annual interest payments, the Interest Payment Date shall be the fifteenth day of every twelfth month (or the next Business Day), commencing in the twelfth succeeding calendar month following the month of the Issue Date.  Interest will be computed on the basis of a 360-day year of twelve 30-day months.

                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 (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the date 15 calendar days prior to (whether or not a Business Day) such Interest Payment Date.  Any such interest which is payable but is 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 (or one or more Predecessor Securities) 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.

                Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency of the Company initially maintained for that purpose in The Borough of Manhattan, The City of New York, 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 [if applicable, insert-; provided, however, that at the option of the Company payment of interest may be made by check drawn upon any Paying Agent and mailed on or prior to an Interest Payment Date to the address of the Person entitled thereto as such address shall appear in the Security Register].

                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, directly or through an authenticating agent, by the manual signature of an authorized officer, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

 

 

                IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

Dated:

	 	
MARSHALL & ILSLEY CORPORATION

	 	 
	 	
By:                                                

       Dennis J. Kuester, President

       and Chief Executive Officer

[Seal]

Attest:

 

By:                                                

       Mark F. Furlong, Executive Vice President,

       Chief Financial Officer and Secretary

 

CERTIFICATE OF AUTHENTICATION

                This is one of the Securities of the series provided for under the within-mentioned Indenture.

	 	
JPMORGAN CHASE BANK, as Trustee

	 	 
	 	
By:                                                

       Authorized Officer

 

 

 

 

[REVERSE OF SECURITY]

                This Security is one of a duly authorized issue of senior debentures, senior notes or other senior evidences of indebtedness of the Company (herein called the "Securities"), issued and to be issued in one or more series under an Indenture, dated as of November 15, 1985 (herein called the "Indenture"), between the Company and JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank and Chemical Bank, as successor to Manufacturers Hanover Trust Company), as Trustee (herein called the "Trustee", which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made 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.  The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any), may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture provided.  This Security is one of a series of Securities of the Company designated as set forth on the face hereof.

                Unless one or more Redemption Dates is specified on the face hereof, this Security shall not be redeemable at the option of the Company before the Stated Maturity Date specified on the face hereof.  If one or more Redemption Dates (or ranges of Redemption Dates) is so specified, this Security is subject to redemption on any such date (or during any such range) at the option of the Company, upon notice by first-class mail, mailed not less than 30 days nor more than 60 days prior to the Redemption Date specified in such notice, at the applicable Redemption Price specified on the face hereof (expressed as a percentage of the principal amount of this Security), together in the case of any such redemption with accrued and unpaid interest to the Redemption Date, but interest installments whose Stated Maturity is prior to the Redemption Date will be payable to the Holder of this Security, or one or more Predecessor Securities, of record at the close of business on the relevant Regular or Special Record Dates referred to on the face hereof, all as provided in the Indenture.  The Company may elect to redeem less than the entire principal amount hereof, provided that the principal amount, if any, of this Security that remains outstanding after such redemption is U.S. $1,000 or any integral multiple of U.S. $1,000 in excess thereof (an "Authorized Denomination").

                Unless one or more Repayment Dates is specified on the face hereof, this Security shall not be repayable at the option of the Holder on any date prior to the Stated Maturity Date specified on the face hereof, other than in connection with any applicable Survivor's Option (defined below).  If one or more Repayment Dates (or ranges of Repayment Dates) is so specified, this Security is subject to repayment on any such date (or during any such range) at the option of the Holder at the applicable Repayment Price specified on the face hereof (expressed as a percentage of the principal amount of this Security), together in the case of any such repayment with accrued and unpaid interest to the Repayment Date, but interest installments whose Stated Maturity is prior to the Repayment Date will be payable to the Holder of this Security, or one or more predecessor.  Securities, of record at the close of business on the relevant Regular or Special Record Dates referred to on the face hereof, all as provided in the Indenture.  For this Security to be repaid at the option of the Holder, the Trustee must receive at the office of its Corporate Trust Department in The City of New York, at least 30 days but not more than 60 days prior to the Repayment Date on which this Security is to be repaid, this Security and the form entitled "Option to Elect Repayment" below, or other form acceptable to the Company, duly completed.  Exercise of the repayment option by the Holder shall be irrevocable.  The repayment option with respect to this Security may be exercised by the Holder for less than the entire principal amount hereof, provided that the principal amount, if any, of this Security that remains outstanding after such repayment is an Authorized Denomination.

                In the event of redemption of this Security in part only, a new Security or Securities of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

                The Securities of this series are not entitled to the benefits of a sinking fund.

                [If the Security is not an Original Issue Discount Security,-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.]

                [If the Security is an Original Issue Discount Security,-If an Event of Default with respect to Securities of this series shall occur and be continuing, an amount of principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.  Such amount shall be equal to-insert formula for determining the amount.  Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest (in each case to the extent that the payment of such interest shall be legally enforceable), all of the Company's obligations in respect of the payment of the principal of and interest, if any, on the Securities of this series shall terminate.]

                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 under the Indenture at any time by the Company and the Trustee with the consent of the Holders of 662/3% in aggregate principal amount of the Securities at the time Outstanding of each series to be affected by such amendment or modification.  The Indenture also contains provisions permitting the Holders of specified percentages in aggregate 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.  The Indenture contains provisions setting forth certain conditions to the institution of proceedings by Holders of Securities with respect to the Indenture or for any remedy under the Indenture.

                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 premium, if any) 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 premium, if any) and interest on this Security are payable, duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company or 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, 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 $1,000 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, this Security is exchangeable for a like aggregate principal amount of Securities of this series of different authorized denominations, 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 may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

                The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

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

                Unless otherwise defined in this Security, all terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

 

 

 

ABBREVIATIONS

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

	 	
TEN COM 3⁄4
 as tenants in common

	 	
TEN ENT 3⁄4
 as tenants by the entireties

	 	
JT TEN 3⁄4
 as joint tenants with right of survivorship and not as tenants in common.

	 	
UNIF TRANS MIN ACT 3⁄4
 
	
______________Custodian______________

      (Cust)                       (Minor)

	 	 	
  under Uniform Transfers to Minors Act

_____________________________________

                     (State)

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

__________________________

ASSIGNMENT

                FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) into ______________________________________.

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________

________________________________________________________________

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

________________________________________________________________

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

________________________________________________________________

to transfer said Security on the books of the Company, with full power of substitution in the premises.

	
Dated:______________________
	
___________________________________

	 	
NOTICE:  The signature to this assignment must correspond with the name as written upon the within instrument in every particular, without alteration or enlargement, or any change whatever.

 

 

 

 

OPTION TO ELECT REPAYMENT*

        The undersigned hereby irrevocably request(s) and instruct(s) the Company to repay this Security (or portion hereof specified below) pursuant to its terms at a price equal to the principal amount hereof together with interest to the repayment date, to the undersigned, at _____________________________________ (Please print or typewrite name and address of the undersigned).

        For this Security to be repaid, the Trustee (or the Paying Agent on behalf of the Trustee) must receive at _______________________, or at such other place or places of which the Company shall from time to time notify the Holder of this Security, not more than 60 nor less than 30 days prior to a Repayment Date, if any, shown on the face of this Security, this Security with this "Option to Elect Repayment" form duly completed.

        If less than the entire principal amount of this Security is to be repaid, specify the portion hereof (which shall be in increments of $1,000) which the Holder elects to have repaid and specify the denomination or denominations (which shall be $_____________ or an integral multiple of $1,000 in excess of $_________________) of the Securities to be issued to the Holder for the portion of this Security not being repaid (in the absence of any such specification, one such Security will be issued for the portion not being repaid).

	
$_________________________
	
___________________________________

	
DATE:______________________
	
NOTICE: The signature on this Option to

Elect Repayment must correspond with the

name as written upon the face of this Security

in every particular, without alteration or

enlargement or any change whatever.

*    To be used only to the extent the Securities are not book-entry.

 

 

 

 

SURVIVOR'S OPTION RIDER

                If so specified on the face hereof, the holder of this Security shall have the option to elect repayment of this Security in the event of the death of the beneficial owner of this Security (the "Survivor's Option").  The provisions of this section ("Survivor's Option") shall apply only if the Survivor's Option is so specified on the face of this Security.  If the Survivor's Option is so specified, the Company shall, at its option, repay or purchase this Security (or portion thereof) properly tendered for repayment by or on behalf of the person (the "Representative") that has authority to act on behalf of the deceased owner of the beneficial interest in this Security under the laws of the appropriate jurisdiction (including, without limitation, the personal representative, executor, surviving joint tenant or surviving tenant by the entirety of such deceased beneficial owner) at a price equal to the sum of 100% of the principal amount of this Security, and accrued and unpaid interest, if any, to the date of such repayment, subject to the following limitations.  The Survivor's Option may not be exercised until twelve (12) months following the Issue Date. In addition, the Company may, in its sole discretion, limit the aggregate principal amount of Securities (or portions thereof) as to which exercises of the Survivor's Option shall be accepted in any calendar year (the "Annual Put Limitation") to the greater of one percent (1%) of the outstanding aggregate principal amount of Securities as of December 31 of the most recently completed year, or $1,000,000.  The Company may limit to $200,000, or such greater amount as the Company in its sole discretion may determine for any calendar year, the aggregate principal amount of Securities (or portions thereof) as to which exercise of the Survivor's Option will be accepted in such calendar year with respect to any individual deceased owner or beneficial interests in Securities with the Survivor's Option (the "Individual Put Limitation").  The Company shall not make principal repayments pursuant to exercise of the Survivor's Option in amounts that are less than $1,000, and in the event that the limitations described in the preceding sentence would result in the partial repayment of this Security, the principal amount of this Security remaining outstanding after repayment must be at least $1,000 (the minimum Authorized Denomination).  Except as provided in the immediately succeeding paragraph, exercise of the Survivor's Option shall be irrevocable.

                Each Security with the Survivor's Option (or portion thereof) that is tendered pursuant to a valid exercise of the Survivor's Option shall be accepted promptly in the order all such Securities are tendered, except for any Security (or portion thereof) the acceptance of which would contravene (i) the Annual Put Limitation, if applied, or (ii) the Individual Put Limitation, if applied, with respect to the relevant individual deceased owner of beneficial interests therein.

                If, as of the end of any calendar year, the aggregate principal amount of Securities (or portions thereof) that have been accepted pursuant to exercise of the Survivor's Option during such year has not exceeded the Annual Put Limitation, if applied, for such year, any exercise(s) of the Survivor's Option with respect to Securities (or portions thereof) not accepted during such calendar year because such acceptance would have contravened the Individual Put Limitation, if applied, with respect to an individual deceased owner of beneficial interests therein shall be accepted in the order all such Securities (or portions thereof) were tendered, to the extent that any such exercise would not trigger the Annual Put Limitation for such calendar year.  This Security (or any portion hereof) accepted for payment pursuant to exercise of the Survivor's Option shall be repaid no later than the first January 15 or July 15 that occurs at least 20 calendar days after the date of such acceptance.  If such date is not a Business Day, payment will be made on the next succeeding Business Day.  This Security (or any portion hereof) tendered for repayment that is not accepted in any calendar year due to the application of the Annual Put Limitation shall be deemed to be tendered in the following calendar year in the order in which all Securities subject to the Survivor's Option (or portions thereof) were originally tendered, unless any such Security (or portion thereof) is withdrawn by the Representative for the deceased owner prior to its repayment.  Other than as described in the immediately preceding sentence, Securities delivered upon exercise of the Survivor's Option may not be withdrawn. In the event that this Security (or any portion hereof) tendered for repayment pursuant to the valid exercise of the Survivor's Option is not accepted, the Trustee shall deliver a notice by first-class mail to the holder hereof at its last known address as indicated in the Register that states the reason this Security (or portion hereof) has not been accepted for repayment.

                Subject to the foregoing, in order for a Survivor's Option to be validly exercised with respect to this Security (or portion hereof), the Trustee must receive from the Representative of the deceased owner (i) a written request for repayment signed by the Representative and such signature must be guaranteed by a member firm of a registered national securities exchange or of the National Association of Securities Dealers, Inc. or a commercial bank or trust company having an office or correspondent in the United States, (ii) tender of this Security (or portion to be repaid hereof) to the Trustee (unless this Security is a Global Security), (iii) appropriate evidence satisfactory to the Trustee and the Company that (A) the Representative has authority to act on behalf of the deceased beneficial owner, (B) the death of such beneficial owner has occurred and (C) the deceased was the owner of a beneficial interest in this Security at the time of death, (iv) if the beneficial interest in this Security is held by a nominee of the deceased beneficial owner, a certificate satisfactory to the Trustee and the Company from such nominee attesting to the deceased's ownership of a beneficial interest in this Security, (v) if applicable, a properly executed assignment or endorsement, (vi) tax waivers and other instruments or documents that the Trustee or the Company reasonably requires to establish the validity of the ownership of this Security and the claimant's entitlement to payment, and (vii) any additional information the Trustee or the Company requires to document ownership or authority to make the election and cause the redemption of this Security.  Subject to the Company's right hereunder to limit the principal amount of Securities as to which exercises of the Survivor's Option shall be accepted in any one calendar year due to the Annual Put Limitation or the Individual Put Limitation, all questions as to the eligibility or validity of any exercise of the Survivor's Option will be determined by the Company, in its sole discretion, which determination shall be final and binding on all parties.

                The death of a person owning this Security in joint tenancy or tenancy by the entirety with another or others shall be deemed the death of the holder of this Security, and the entire principal amount of this Security so held shall be subject to repayment, together with interest accrued thereon to the repayment date.  The death of a person owning this Security by tenancy in common shall be deemed the death of a holder of this Security only with respect to the deceased holder's interest in this Security so held by tenancy in common; except that in the event this Security is held by a husband and wife as tenants in common, the death of either shall be deemed the death of the holder of this Security, and the entire principal amount of this Security shall be subject to repayment.  The death of a person who, during his or her lifetime, was entitled to substantially all of the beneficial interests of ownership of this Security shall be deemed the death of the holder thereof for the purpose of this provision, regardless of the registered holder, if such beneficial interest can be established to the satisfaction of the Trustee and the Company.  Such beneficial interest shall be deemed to exist in typical cases of nominee ownership, ownership under the Uniform Transfers to Minors Act, community property or other joint ownership arrangements between a husband and wife and trust arrangements where one person has substantially all of the beneficial ownership interest in this Security during his or her lifetime.

                For so long as this Security is a Global Security, the Depositary or its nominee shall be the holder of this Security and shall be the only entity that can exercise the Survivor's Option for the beneficial holders of this Security.  To exercise the Survivor's Option with respect to this Security, the Representative must provide to the broker or other entity through which the beneficial interest in this Security is held by the deceased owner (i) the documents described in  the second preceding paragraph and (ii) instructions to such broker or other entity to notify the Depositary of such Representative's desire to obtain repayment pursuant to exercise of the Survivor's Option.  Such broker or other entity shall provide to the Trustee (i) the documents received from the Representative referred to in clause (i) of the preceding sentence and (ii) a certificate satisfactory to the Trustee and the Company from such broker or other entity stating that it represents the deceased beneficial owner. Such broker or other entity shall be responsible for disbursing any payments it receives pursuant to exercise of the Survivor's Option to the appropriate Representative.

                In the event of redemption or repayment of this Security or the exercise of the Survivor's Option in part only, the principal amount of this Security shall be reduced.<PAGE>

                                                                   Exhibit 10.1

                               EIGHTH AMENDMENT
                               WITH RESPECT TO
                           NOTE PURCHASE AGREEMENT

         THIS EIGHTH AMENDMENT WITH RESPECT TO NOTE PURCHASE AGREEMENT is
entered into as of March 6, 2002 among HERCULES INCORPORATED, a Delaware
corporation (the "Company"), which is successor to BetzDearborn Inc.
("BetzDearborn") under the Note Agreement referred to below, PUTNAM FIDUCIARY
TRUST COMPANY ("Putnam"), in its capacity as successor Trustee (the "Trustee")
of The BetzDearborn Inc. Employee Stock Ownership and 401(k) Trust (the
"ESOT") of the BetzDearborn Inc. Employee Stock Ownership and 401(k) Plan (the
"Plan"), the undersigned subsidiaries of the Company and THE PRUDENTIAL
INSURANCE COMPANY OF AMERICA ("Prudential").

                             W I T N E S S E T H:

         WHEREAS, BetzDearborn adopted the Betz Laboratories, Inc. Employee
Stock Ownership Plan (the "Plan") effective January 1, 1989, changed the name
of the Plan to the name shown above and most recently amended and restated the
Plan effective January 1, 1994; and

         WHEREAS, pursuant to the Plan and effective January 1, 1989,
BetzDearborn entered into an Agreement of Trust with Mellon Bank, N.A.
("Mellon") as trustee ("Trustee"), thereby establishing the ESOT; and

         WHEREAS, as of June 19, 1989, the ESOT and BetzDearborn entered into
a Note Purchase Agreement with Prudential whereby the ESOT sold and Prudential
purchased $100,000,000 principal amount of the ESOT's Notes (guaranteed by
BetzDearborn), approximately $75,461,000 of which are still outstanding and
held by Prudential, which Note Purchase Agreement was amended by a First
Amendment thereto as of June 25, l996 and a Second Amendment thereto as of
June 25, 1998 and which was supplemented and amended by a Consent and Waiver
and Assumption (the "Consent and Assumption") effective October 15, 1998
executed by and among BetzDearborn, the Company and Prudential and further
amended by a Third Amendment and Assumption Agreement (the "Third Amendment")
dated as of December 31, 1998 executed by and among BetzDearborn, the Company
and Prudential, a Fourth Amendment dated as of April 19, 1999 among the
parties hereto, a Fifth Amendment dated as of July 26, 2000 among the parties
thereto, a Sixth Amendment dated as of November 14, 2000 among the parties
hereto and a Seventh Amendment dated as of July 17, 2001 among the parties
hereto (as so amended and supplemented by said Amendments and the Consent and
Assumption being herein called the "Note Agreement"); and

         WHEREAS, as of October 1, 1992, BetzDearborn removed Mellon as
Trustee, appointed Putnam as successor Trustee and amended and restated the
foregoing Agreement of Trust, retitling it as "Trust Agreement for Betz
Laboratories Inc. Employee Stock Ownership and 401(k) Plan," and continued the
ESOT with the successor Trustee; and

                                     -5-

<PAGE>

         WHEREAS, pursuant to an Agreement and Plan of Merger dated as of July
30, 1998 among the Company, Water Acquisition Co. and BetzDearborn,
BetzDearborn became a wholly-owned subsidiary of the Company on October 15,
1998 (the "Merger"); and

         WHEREAS, pursuant to the Consent and Amendment and the Third
Amendment (i) the Company has assumed all of the obligations of BetzDearborn
under the Note Agreement and in respect of the ESOT Notes and BetzDearborn has
been released from all such obligations (except insofar as BetzDearborn shall
have obligations as a Guarantor under the Note Agreement), and (ii) the
Company has succeeded to, and been substituted for, and is entitled to
exercise every right and power of, "the Company" under the Note Agreement; and

         WHEREAS, the parties hereto desire to amend certain provisions of the
Note Agreement, as provided for herein.

         NOW, THEREFORE, in consideration of the foregoing premises and mutual
covenants and agreements contained herein, the parties hereto agree as
follows:

SECTION 1.        AMENDMENTS TO NOTE AGREEMENT

         (a)      Subparagraph 5.2(b)(ii)(C) of the Note Agreement is hereby
amended and restated in its entirety to read as follows:

                  (C)      if such transaction is a sale, lease or other
         disposition of assets, (w) such transaction is not an Asset
         Disposition, (x) such transaction is an Asset Disposition of the
         Resins Division or FiberVision, (y) such transaction is an Asset
         Disposition and is the BetzDearborn Sale or (z) the aggregate value
         of the assets sold, leased or disposed of in such transaction, when
         added to the aggregate value of all assets sold, leased or disposed
         of in all transactions permitted by this clause (z) at any time after
         the Sixth Amendment Effective Date, does not exceed $50,000,000.

         (b)      Subparagraph 5.2(b)(iii) of the Note Agreement is hereby
amended and restated in its entirety to read as follows:

                  (iii)    In connection with any Asset Disposition
         consummated while the Notes are outstanding (including for such
         purpose the issuance of direct or indirect equity interests in
         FiberVisions or the Resins Division or their respective assets or the
         BetzDearborn Sale), no later than two (2) Business Days prior to such
         Asset Disposition, the holders of the Notes shall have received a
         certificate of a Responsible Officer of the Company specifying the
         anticipated or actual date of such Asset Disposition, briefly
         describing the assets to be sold or otherwise disposed of and setting
         forth the net book value of such assets, the aggregate consideration
         and the Net Cash Proceeds to be received for such assets in
         connection with such Asset Disposition, and thereafter the Credit
         Parties shall, within the period of 180 days following the
         consummation of such Asset Disposition, apply (or cause to be
         applied) an amount equal to the Net Cash Proceeds of such Asset
         Disposition to prepay the Loans under the Credit Agreement and make
         the offers to prepay the Notes in the manner specified in
         subparagraph 5.2(n).

                                     -6-

<PAGE>

         (c)      Subparagraph 5.2(d)(i) of the Note Agreement is hereby
amended and restated in its entirety to read as follows:

                  (i)  Leverage Ratio.  It will not permit, as of the last day
         of any fiscal quarter, the Leverage Ratio to exceed the ratio set
         forth below for the applicable period:

<TABLE>
<CAPTION>
                                                                                   Maximum Leverage
                                     Period                                          Coverage Ratio
                                     ------                                        ----------------
<S>                                                                                <C>
         October 1, 2000 through June 30, 2001                                         4.75 to 1.0
         July 1, 2001 through September 30, 2001                                       5.25 to 1.0
         October 1, 2001 through December 31, 2001                                     5.00 to 1.0
         January 1, 2002 through March 31, 2002                                        4.75 to 1.0
         April 1, 2002 through June 30, 2002                                           4.50 to 1.0
         July 1, 2002 and thereafter                                                   4.25 to 1.0
</TABLE>

Notwithstanding the foregoing, during the BetzDearborn Sale Period (and, with
respect to any relevant period ending prior to the BetzDearborn Sale Effective
Date only, from and after the BetzDearborn Sale Effective Date), the
applicable maximum Leverage Ratio for the fiscal quarter periods ending as of
March 31, 2002 and June 30, 2002 shall be 5.50 to 1.0. Upon expiration of the
BetzDearborn Sale Period without the BetzDearborn Sale Effective Date having
occurred, if the Credit Parties were not in compliance with the covenant
levels set forth in the table above for the applicable periods, then an Event
of Default shall exist.

         (d)      Subparagraph 5.2(d)(iii) of the Note Agreement is hereby
amended and restated in its entirety to read as follows:

                  (iii)  Interest Coverage Ratio.  It will not permit, as of
         the last day of any fiscal quarter, the Interest Coverage Ratio to be
         less than the ratio set forth below for the applicable period:

<TABLE>
<CAPTION>
                                                                                   Minimum Interest
                                 Period                                              Coverage Ratio
                                 ------                                            ----------------
<S>                                                                                <C>
         October 1, 2000 through June 30, 2001                                         1.75 to 1.0
         July 1, 2001 through September 30, 2001                                       1.65 to 1.0
         October 1, 2001 through December 31, 2001                                     1.75 to 1.0
         January 1, 2002 and thereafter                                                2.00 to 1.0
</TABLE>

Notwithstanding the foregoing, during the BetzDearborn Sale Period (and, with
respect to any relevant period ending prior to or after the BetzDearborn Sale
Effective Date, from and after the BetzDearborn Sale Effective Date), the
applicable minimum Interest Coverage Ratio for the fiscal quarter periods
ending as of March 31, 2002 and June 30, 2002 shall be 1.75 to 1.0. Upon the
expiration of the BetzDearborn Sale Period without the BetzDearborn Sale
Effective Date having occurred, if the Credit Parties were not in compliance
with the covenant levels set forth in the table above for the applicable
periods, then an Event of Default shall exist.

                                     -7-

<PAGE>

         (e)      The first sentence of paragraph 5.2(n) of the Note Agreement
is hereby amended and restated in its entirety to read as follows:

                  The Company will not amend, restate or otherwise change or
         supplement the provisions of subsection 2.6(b)(ii), 2.6(b)(iii),
         2.6(b)(iv) or 2.6(b)(v) of the Credit Agreement (as in effect on the
         Eighth Amendment Effective Date after giving effect to the Fifth
         Amendment to the Credit Agreement), other than to terminate the same,
         and it will apply any Net Cash Proceeds from an Asset Disposition
         (including any BetzDearborn Sale), Permitted Receivables Financing
         (the consummation of which shall be subject to the prior written
         consent of the Required Holders), Debt Issuance or Equity Issuance to
         prepay the Loans under the Credit Agreement in accordance with the
         terms of said subsection 2.6(b)(ii), 2.6(b)(iii), 2.6(b)(iv) and
         2.6(b)(v), as applicable (herein called a "Bank Prepayment").

         (f)      Paragraph 12A of the Note Agreement is hereby amended by
adding the following definitions in the appropriate alphabetical order:

                  "BetzDearborn Purchase Agreement": that certain Stock and
         Asset Purchase Agreement dated as of February 12, 2002 entered into
         by and among the Company, General Electric Company and Falcon
         Acquisition Corp, as such agreement may be amended, restated,
         modified or supplemented from time to time.

                  "BetzDearborn Sale": shall mean the sale of the water
         business of the Company (i) conducted through the BetzDearborn
         Division of the Company and (ii) through the Pulp and Paper Division
         of the Company and its Affiliates, pursuant to the BetzDearborn
         Purchase Agreement for an aggregate purchase price of approximately
         $1,800,000,000 in cash, subject to adjustment as provided in such
         agreement, but resulting in minimum Net Cash Proceeds of
         $1,600,000,000.

                  "BetzDearborn Sale Effective Date": the date upon which the
         BetzDearborn Sale is consummated and the Company prepays the Loans
         (as defined in the Credit Agreement) and the Note Obligations in
         accordance with the Credit Agreement and paragraph 5.2(n) hereof.

                  "BetzDearborn Sale Period": shall mean the period from the
         Eighth Amendment Effective Date to the earliest of (i) the date upon
         which the BetzDearborn Purchase Agreement is terminated, (ii) the
         BetzDearborn Sale Effective Date and (iii) July 15, 2002.

                  "Eighth Amendment" the Eighth Amendment dated as of March 6,
         2002, amending and supplementing this Agreement.

                  "Eighth Amendment Effective Date" the date on which all of
         the conditions precedent to the effectiveness of the Eighth Amendment
         are satisfied by the Credit Parties or waived by the Required
         Holders.

                                     -8-

<PAGE>

         (g)      The definition of "Consolidated EBITDA" in paragraph 12A of
the Note Agreement is hereby deleted in its entirety and the following
substituted therefor with such amendment to be deemed effective as of December
31, 2001:

                  "Consolidated EBITDA": for any fiscal period, (i)
         Consolidated Net Income for such period, plus (ii) Consolidated
         Interest Expense for such period, plus (iii) to the extent deducted
         in computing such Consolidated Net Income, the sum of (a) taxes, (b)
         depreciation, (c) amortization, (d) any non-cash charges, (e) for the
         fiscal quarter ended June 30, 2001 through the fiscal quarter ended
         June 30, 2002 only, any non-recurring cash charges associated with
         the restructuring of the Company and its Subsidiaries initiated on or
         after April 1, 2001 in an aggregate amount not to exceed $50 million,
         (f) for the fiscal quarter ended December 31, 2001 through the fiscal
         quarter ended December 31, 2002 only, any non-recurring cash charges
         associated with the reduction-in-force of the Company and its
         Subsidiaries in an aggregate amount not to exceed $125 million and
         (g) any extraordinary, unusual or non-recurring cash losses or cash
         charges incurred in connection with (x) the Acquisition in an amount
         not to exceed $170 million after taxes in the aggregate for all such
         add-backs pursuant to this subclause (x), and (y) the settlement
         prior to the Closing Date of certain litigation in an amount not to
         exceed $63 million after taxes in the aggregate for all such
         add-backs pursuant to this subclause (y), minus (iv) any
         extraordinary gains and noncash gains.

         (h)      The following paragraph is added as a new paragraph 14N to
the Note Agreement to read as follows:

                  14N. Reorganization in Connection with BetzDearborn Sale. In
         connection with the BetzDearborn Sale and notwithstanding any
         provision of the Credit Documents to the contrary, the Credit Parties
         and their subsidiaries may take such intercompany actions as are
         reasonably necessary to consummate the Reorganization defined in and
         referred to in the BetzDearborn Purchase Agreement (including without
         limitation intercompany mergers, liquidations and asset transfers
         related to separating the Water Business (as defined in the
         BetzDeaborn Purchase Agreement) from the Company's other businesses);
         provided, however, that (a) the Credit Parties shall make
         commercially reasonable efforts to maintain the Collateral Agent's
         collateral position as of the Eighth Amendment Effective Date
         (including without limitation by promptly causing any newly formed
         subsidiaries to execute Guarantor Joinder Agreements and otherwise
         comply with the terms of paragraph 5.1(j)), and (b) upon the
         expiration of the BetzDearborn Sale Period without the BetzDearborn
         Sale Effective Date having occurred, the Credit Parties shall, within
         30 days of such expiration (or such longer period of time as the
         Collateral Agent may reasonably agree to if the Credit Parties are
         diligently pursuing such actions in good faith) take such actions as
         are reasonably necessary to put the Collateral Agent in a collateral
         position that is as good as such collateral position as of the Eighth
         Amendment Effective Date.

                                     -9-

<PAGE>

SECTION 2.        ACKNOWLEDGMENT AND AFFIRMATION BY CREDIT PARTIES

         Subject to the release of the Pledged Collateral upon the
BetzDearborn Sale Effective Date, each Credit Party affirms the liens and
security interests created and granted by it in the Credit Documents
(including, but not limited to, the Pledge Agreement, the Security Agreement
and the Mortgages) and agrees that this Amendment shall in no manner adversely
affect or impair such liens and security interests.

SECTION 3.        REPRESENTATIONS AND WARRANTIES OF CREDIT PARTIES

         In order to induce Prudential to enter into this Amendment, each of
the Credit Parties makes the following representations, covenants and
warranties which shall survive the execution and delivery of the Credit
Documents:

                  (i)      It has taken all necessary action to authorize the
         execution, delivery and performance of this Amendment.

                  (ii)     This Amendment has been duly executed and delivered
         by such Credit Party and constitutes such Credit Party's legal, valid
         and binding obligation, enforceable in accordance with its terms,
         except as such enforceability may be limited (x) by general
         principles of equity and conflicts of laws or (y) by bankruptcy,
         reorganization, insolvency, moratorium or other laws of general
         application relating to or affecting the enforcement, of creditors'
         rights.

                  (iii)    No consent, approval, authorization or order of, or
         filing, registration or qualification with, any court or governmental
         authority or third party is required in connection with the
         execution, delivery or performance by such Credit Party of this
         Amendment.

                  (iv)     The execution and delivery of this Amendment does
         not diminish or reduce its obligations under the Credit Documents
         (including, without limitation, in the case of each Guarantor, such
         Guarantor's guaranty pursuant to paragraph 6 of the Note Agreement)
         in any manner, except as specifically set forth herein.

                  (v)      Such Credit Party has no claims, counterclaims,
         offsets, or defenses to the Credit Documents and the performance of
         its obligations thereunder, or if such Credit Party has any such
         claims, counterclaims, offsets, or defenses to the Credit Documents
         or any transaction related to the Credit Documents, the same are
         hereby waived, relinquished and released in consideration of
         Prudential's execution and delivery of this Amendment.

                  (vi)     The representation and warranties of the Credit
         Parties set forth in Section 3 of the Third Amendment are true and
         correct as of the date hereof (except those that relate to an earlier
         date) and all of the provisions of the Credit Documents, except as
         amended hereby, are in full force and effect.

                  (vii)    Subsequent to the execution and delivery of this
         Amendment and after giving effect hereto, no unwaived event has
         occurred and is continuing which constitutes a Default or an Event of
         Default.

         The Credit Parties hereby incorporate the representations and
warranties contained in Section 1 of the Credit Agreement (together with all
related defined terms) as in effect on the

                                     -10-

<PAGE>

date hereof (and after giving effect to the Fifth Amendment to Amended and
Restated Revolving Credit Agreement, executed on or about the date hereof by
the Company, certain subsidiaries of the Company, BetzDearborn Canada, Inc.,
Bank of America, N.A., Bank of America Canada, and the several banks and
financial institutions identified on the signature pages thereto) by reference
herein to the same extent as if set forth at length herein (the "Incorporated
Provisions") and each hereby makes such representations and warranties (to the
knowledge of the Company, when applicable under the Credit Agreement) for the
benefit of Prudential as of the date hereof in connection with the execution
and delivery of this Amendment; provided, that references in the Incorporated
Provisions to "this Agreement" and "Notes" shall be taken as references to the
Note Agreement as amended hereby and to the Notes outstanding thereunder. The
Company represents and warrants to Prudential that no Default or Event of
Default exists under the Note Agreement, both before and after giving effect
to the provisions of this Amendment.

SECTION 4.        EFFECTIVENESS OF AMENDMENTS

         The provisions of this Amendment shall become effective upon the
execution and delivery of a counterpart of this Amendment by all of the
parties hereto and the satisfaction of the following additional conditions
precedent:

         (a)      Prudential shall have received counterparts of this
                  Amendment, duly executed and delivered by each of the Credit
                  Parties and by the Trustee;

         (b)      Prudential shall have received a copy of the duly executed
                  amendment to the Credit Agreement, and the terms of such
                  amendment shall be substantially similar to the terms of
                  this Amendment;

         (c)      no Default or Event of Default shall have occurred and be
                  continuing; and

         (c)      as of the date of the effectiveness of this Amendment all
                  representations and warranties made by the Company and each
                  other Credit Party in this Amendment and each other Credit
                  Document are true and correct in all material respects.

SECTION 5.        MISCELLANEOUS

         SECTION 5.1.  DEFINED TERMS.  Capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Note Agreement.

         SECTION 5.2. REFERENCES. On and after the effective date of this
Amendment, each reference in the Note Agreement and the Notes shall mean and
be a reference to the Note Agreement as amended by this Amendment.

         SECTION 5.3. EXPENSES. The Company agrees to pay all reasonable costs
and expenses incurred by Prudential in connection with the preparation,
execution and delivery of this Amendment, and the consummation of the
transactions contemplated hereby, including the reasonable fees and expenses
of Prudential's counsel.

         SECTION 5.4. RATIFICATION. The Note Agreement, as amended by this
Amendment, is and shall continue to be in full force and effect and is hereby
in all respects ratified and confirmed. Except as expressly modified and
amended in this Amendment, all of the terms, provisions and conditions of the
Credit Documents shall remain unchanged and in full force and effect.

                                     -11-

<PAGE>

         SECTION 5.5. COUNTERPARTS. This Amendment may be executed in any
number of counterparts and by any combination of the parties hereto in
separate counterparts, each of which counterparts shall be an original and all
of which taken together shall constitute one and the same agreement.

         SECTION 5.6. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

         SECTION 5.7. ENTIRETY. This Amendment, the Note Agreement and the
other Credit Documents embody the entire agreement between the parties and
supersede all prior agreements and understandings, if any, relating to the
subject matter hereof. The Credit Documents represent the final agreement
between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties.

                                     -12-

<PAGE>

        IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and delivered by their respective officers thereunto duly authorized
as of the date first above written.

ESOT:                                     BETZDEARBORN INC. EMPLOYEE STOCK
                                            OWNERSHIP AND 401(K) TRUST
                                            ESTABLISHED BY THE BETZDEARBORN
                                            INC. EMPLOYEE STOCK OWNERSHIP AND
                                            401(K) PLAN

                                          By:  PUTNAM FIDUCIARY TRUST
                                               COMPANY as Trustee

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

PRUDENTIAL:                               THE PRUDENTIAL INSURANCE COMPANY OF
                                            AMERICA

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

COMPANY:                                  HERCULES INCORPORATED,
                                            a Delaware corporation

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

SUBSIDIARY GUARANTORS
(LIST CONTINUES ON THE NEXT PAGE):        BETZDEARBORN CANADA, INC.,
                                            an Ontario corporation

                                     -13-

<PAGE>

                                          HERCULES CREDIT, INC.,
                                            a Delaware corporation
                                          HERCULES FLAVOR, INC.,
                                            a Delaware corporation
                                          WSP, INC.,
                                            a Delaware corporation
                                          AQUALON COMPANY,
                                            a Delaware corporation
                                          HERCULES FINANCE COMPANY,
                                            a Delaware partnership
                                          FIBERVISIONS, L.L.C.,
                                            a Delaware limited liability company
                                          FIBERVISIONS INCORPORATED,
                                            a Delaware corporation
                                          FIBERVISIONS PRODUCTS, INC.,
                                            a Georgia corporation
                                          HERCULES INTERNATIONAL LIMITED,
                                            a Delaware corporation
                                          BETZDEARBORN, INC.,
                                            a Pennsylvania corporation
                                          BETZDEARBORN EUROPE, INC.,
                                            a Delaware corporation
                                          DRC, LTD.,
                                            a Delaware corporation
                                          BL TECHNOLOGIES, INC.,
                                            a Delaware corporation
                                          BLI HOLDINGS CORP.,
                                            a Delaware corporation
                                          HERCULES SHARED SERVICES CORPORATION,
                                            a Delaware corporation
                                          BETZDEARBORN INTERNATIONAL, INC.,
                                            a Pennsylvania corporation

                                          (execution on behalf of the foregoing
                                               Subsidiary Guarantors is on
                                                   the following page)

                                     -14-

<PAGE>

SUBSIDIARY GUARANTORS
(CONTINUED FROM PREVIOUS PAGE)         ATHENS HOLDINGS, INC.,
                                         a Delaware corporation
                                       HERCULES CHEMICALS INTERNATIONAL, INC.,
                                         a Delaware corporation
                                       BL CHEMICALS INC.,
                                         a Delaware corporation
                                       CHEMICAL TECHNOLOGIES INDIA, LTD.,
                                         a Delaware corporation
                                       COVINGTON HOLDINGS, INC.,
                                         a Delaware corporation
                                       EAST BAY REALTY SERVICES, INC.,
                                         a Delaware corporation
                                       FIBERVISIONS, L.P.,
                                         a Delaware partnership
                                       HERCULES CHEMICAL CORPORATION,
                                         a Delaware corporation
                                       HERCULES COUNTRY CLUB, INC.,
                                         a Delaware corporation
                                       HERCULES EURO HOLDINGS, LLC,
                                         a Delaware limited liability company
                                       HERCULES INTERNATIONAL LIMITED, L.L.C.,
                                         a Delaware limited liability company

                                       By:
                                          ----------------------------------
                                       Name:
                                            --------------------------------
                                       Title:
                                             -------------------------------
                                       for each of the foregoing Subsidiary
                                       Guarantors listed on this page and
                                       the preceding page

                                      15

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