Document:

EX-4.2

 Exhibit 4.2 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO ISSUER 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 DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), 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 THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH
SUCCESSOR. 
  

			
	 REGISTERED
 NO. 001
		 REGISTERED

PRINCIPAL AMOUNT

		
	CUSIP No. 26884A BE2		$300,000,000

 ERP OPERATING LIMITED PARTNERSHIP 

4.500% Notes due June 1, 2045 

ERP Operating Limited Partnership, an Illinois limited partnership (the “Issuer,” which term includes any successor under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of Three Hundred Million Dollars on June 1, 2045 (the “Maturity Date”), and to pay interest
thereon from May 14, 2015 (or from the most recent Interest Payment Date to which interest has been paid or duly provided for), semi annually in arrears on June 1 and December 1 of each year (each, an “Interest Payment
Date”), commencing on December 1, 2015, and on the Maturity Date, at the rate of 4.500% per annum, until payment of said principal sum has been made or duly provided for. 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date and on the Maturity Date will be paid to the
Holder in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the “Record Date” for such payment, which will be the May 15 or November 15 next preceding such Interest Payment Date, or
the Maturity Date, as the case may be. Any interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Record Date, and shall be paid to the Holder in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on a subsequent record date for the payment of such defaulted interest (which shall be not more than 15 days and not less than 10 days) prior to the date of the payment of such defaulted
interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than ten days preceding such subsequent record date. Interest on this Note will be computed on the basis of a 360-day year of twelve
30-day months. 
 The principal of this Note payable on the Maturity Date will be paid against presentation and surrender of this Note at
the office or agency of the Issuer maintained for that purpose in the Borough of Manhattan, the City of New York. The Issuer hereby initially designates the Corporate Trust Office of the Trustee in the City of Chicago, and the office or agency of
the Trustee in the Borough of Manhattan, the City of New York, as the offices to be maintained by it where Notes may be presented for payment, registration of transfer or exchange and where notices or demands to or upon the Issuer in respect of the
Notes or the Indenture referred to on the reverse hereof may be served. 
 Interest payable on this Note on any Interest Payment Date and on
the Maturity Date, as the case may be, will be the amount of interest accrued from and including the immediately preceding Interest Payment Date (or from and including May 14, 2015, in the case of the initial Interest Payment Date) to but
excluding the applicable Interest Payment Date or the Maturity Date, as the case may be. If any Interest Payment Date other than the Maturity Date would otherwise be a day that is not a Business Day (as defined below), such Interest Payment Date
will be postponed to the 

 
succeeding Business Day. If the Maturity Date falls on a day that is not a Business Day, principal and interest payable on the Maturity Date will be paid on the succeeding Business Day with the
same force and effect as if it were paid on the date such payment was due, and no interest will accrue on the amount so payable for the period from and after the Maturity Date. “Business Day” means any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in the City of New York or the City of Chicago are authorized or required by law, regulation or executive order to close. 

Payments of principal and interest in respect of this Note will be made to the registered Holder of this Note in such coin or currency as at
the time of payment is legal tender for the payment of public and private debts. 
 Reference is made to the further provisions of this Note
set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Note shall not be entitled to the benefits of the Indenture referred to on the reverse hereof or be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have been signed by the Trustee under such Indenture. 

*    *    *    *    * 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed manually or by facsimile
by its duly authorized officers. 
  

							
	Dated:                 , 2015				ERP OPERATING LIMITED PARTNERSHIP, as Issuer
				
					By:		EQUITY RESIDENTIAL,
							not individually but as General Partner
				
					By:		  

							Mark J. Parrell
					Its:		Executive Vice President and Chief Financial Officer
				
					By:		  

							Bruce C. Strohm
					Its:		Executive Vice President, General Counsel and Corporate Secretary

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

 

							
	Dated:             , 2015				THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
				
					By:		  

							Authorized Signatory

 [REVERSE OF NOTE] 

ERP OPERATING LIMITED PARTNERSHIP 

4.500% Notes due June 1, 2045 

This Note is one of a duly authorized issue of debentures, notes, bonds, or other evidences of indebtedness of the Issuer (hereinafter called
the “Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to (i) an Indenture dated as of October 1, 1994 as supplemented from time to time (herein called the “Indenture”),
duly executed and delivered by the Issuer to The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.) (as successor to J.P. Morgan Trust Company, National Association, as successor to Bank One
Trust Company, N.A., as successor to The First National Bank of Chicago) as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is
a part), and (ii) an Officers’ Certificate dated the date hereof (the “Officers’ Certificate”), duly executed by authorized officers of the Issuer, pursuant to Section 301 of the Indenture to which Officers’
Certificate and Indenture and all Indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties, and immunities thereunder of the Trustee, the Issuer, 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), and may otherwise vary as provided in the Indenture. This Note is one of a series designated as the 4.500% Notes due
June 1, 2045 of the Issuer (the “Notes”). Subject to being increased by the Issuer pursuant to an Officers’ Certificate, the Notes are limited in aggregate principal amount to $300,000,000 (except as provided in the Indenture).

 If an Event of Default with respect to the Notes occurs and is continuing, the principal hereof and Make-Whole Amount (if any) may be
declared, and upon such declaration shall become, due and payable, in the manner, with the effect, and subject to the conditions provided in the Indenture. 

Prior to December 1, 2044, the Issuer may redeem the Notes, at any time in whole or from time to time in part, at the election of the
Issuer, at a redemption price equal to the sum of (i) the principal amount of the Notes being redeemed plus accrued interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to the Notes. For purposes of
the Notes, the Reinvestment Rate will be determined using 0.25% as specified in the Officers’ Certificate in lieu of the percentage contained in the Indenture. On or after December 1, 2044, the Issuer may redeem the Notes, at any time in
whole or from time to time in part, at the election of the Issuer, at a redemption price equal to the principal amount of the Notes being redeemed plus accrued interest thereon to the Redemption Date. Notice of any optional redemption of any Notes
will be given to Holders at their addresses, as shown in the Security Register, not more than 45 nor less than 15 days prior to the date fixed for redemption. The notice of redemption will specify, among other items, the redemption price and the
principal amount of the Notes held by such Holder to be redeemed. 
 The Indenture contains provisions for defeasance of (i) the entire
indebtedness of the Notes or (ii) certain covenants (specifically including the covenants in the third supplemental indenture dated as of June 4, 2007, by and between the Issuer and the Trustee, as modified by the fourth supplemental
indenture dated as of December 12, 2011, by and between the Issuer and the Trustee) and events of default with respect to the Notes in the Indenture in each case upon compliance with Article Fourteen of the Indenture, which provisions apply to
the Notes. 
 The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a
majority of the aggregate principal amount of all Outstanding Securities affected by such supplemental indenture, to execute supplemental Indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or modifying in any manner the rights of the Holders of Securities under the Indenture; provided, however, that no such supplemental Indenture shall, without the consent of the Holder of each Outstanding Security so affected,
(i) change the stated maturity of the principal of (or premium, if any), or any installment of principal of or interest on, any Security, (ii) reduce the principal amount of, or the rate or amount of interest on, or premium payable upon
the redemption of, any Security, (iii) change the place of payment, or the currency, for payment of principal of any Security or any premium or interest on any Security, (iv) impair the right to institute suit for the

  
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enforcement of any payment on or with respect to any Security on or after the stated maturity thereof (or in the case of redemption, on or after the redemption date), (v) reduce the
above-stated percentage of Outstanding Securities of any series necessary to modify or amend the Indenture, to waive compliance with certain provisions thereof or certain defaults and consequences thereunder or to reduce the quorum or voting
requirements set forth in the Indenture, or (vi) modify any of the foregoing provisions or any provisions relating to the waiver of certain past defaults or certain covenants, except to increase the required percentage to effect such action or
to provide that certain other provisions may not be modified or waived without the consent of the Holders or each Outstanding Security affected thereby. It is also provided in the Indenture that, with respect to certain defaults or Events of Default
regarding the Securities of any series, the Holders of not less than a majority in aggregate principal amount outstanding of the Securities of such series may on behalf of the Holders of all the Securities of such series waive any such past default
or Event of Default and its consequences, prior to any declaration accelerating the maturity of such Securities; or, subject to certain conditions, may rescind a declaration of acceleration and its consequences with respect to such Securities. Any
such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Note and any securities that may be issued in exchange or
substitution herefor, irrespective of whether or not any notation thereof is made upon this Note or such other securities. 
 No reference
herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and any Make-Whole Amount and interest on this Note in the
manner, at the respective times, at the rate and in the coin or currency herein prescribed. 
 This Note is issuable only in registered form
without coupons in denominations of $1,000 and integral multiples thereof. Securities may be exchanged for a like aggregate principal amount of Securities of this series of other authorized denominations at the office or agency of the Issuer
maintained for that purpose at the Corporate Trust Office of the Trustee in the City of Chicago, and the office or agency of the Trustee in the Borough of Manhattan, the City of New York, in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge except for any tax or other governmental charge imposed in connection therewith. 

Upon due presentment for registration of transfer of Securities at the office or agency of the Issuer maintained for that purpose at the
Corporate Trust Office of the Trustee in the City of Chicago, or the office or agency of the Trustee in the Borough of Manhattan, the City of New York, a new Security or Securities of the same series of authorized denominations in an equal aggregate
principal amount will be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture, without charge except for any tax or other governmental charge imposed in connection therewith. 

The Issuer, the Trustee, and any authorized agent of the Issuer or the Trustee may deem and treat the Person in whose name this Note is
registered as the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal hereof and
Make-Whole Amount, if any, and subject to the provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to
the contrary. 
 The Issuer is the sole obligor under the Notes and neither Equity Residential nor any subsidiary of the Issuer has any
obligation for payment (principal, interest, premium, if any, or other) on the Notes. 
 The Indenture and each Security shall be deemed to
be a contract under the laws of the State of New York, and for all purposes shall be governed by and construed in accordance with the law of the State of New York. 

Terms used herein that are defined in the Indenture shall have the respective meanings assigned thereto in the Indenture. 

  
 5EX 10.1 Hexion Holdings LLC 2015 Incentive Compensation Plan

Exhibit 10.1

HEXION HOLDINGS LLC
2015 INCENTIVE COMPENSATION PLAN (the “Plan”)

Purpose of the Plan

The Plan is sponsored by Hexion Holdings LLC (“Parent” or “Hexion Holdings”) to reward associates of Hexion Inc. (“Hexion”) and its subsidiaries for delivering increased value by profitably growing the business and controlling costs.  The Plan is designed to link rewards with critical financial metrics for the purposes of promoting actions which are the most beneficial to the company's short-term and long-term value creation.

Plan Year

January 1, 2015 - December 31, 2015

Eligibility for Participation

Participation is based on each associate's scope of responsibility and contribution within the organization.  Each participant is assigned to participate at the Corporate, Division, Business Unit, Commercial, or Shared Services plan level.  Associates who participate at the Shared Services plan level provide service to both Hexion and Momentive Performance Materials Inc. and its subsidiaries (“MPM”).

Plan Performance Measures

The Plan targets are based on three performance criteria: EBITDA, EH&S and Cash Flow.

EBITDA (sometimes also referred to as Segment EBITDA) - Refers to Earnings before Interest, Taxes, Depreciation and Amortization, adjusted to exclude certain non-cash, certain other income and expenses and discontinued operations.  The achievement of EBITDA targets is a critical measure on which the investment community and future shareholders will evaluate Hexion's performance in 2015.  As a result, the participants should be focused and incented to manage the business to achieve EBITDA targets.

Segment EBITDA will be measured for the Parent (“Hexion EBITDA”), for each of the Epoxy, Phenolic and Coating Resins and Forest Products Divisions of Hexion (each a “Division”) and for specified Hexion Business Units.

Associates participating at the Corporate, Division, or Business unit plan level have a total of 55 percent of their incentive target based on the achievement of EBITDA targets.  Associates participating at the commercial plan level have 10 percent of their incentive target based on the achievement of EBITDA targets.

EH&S - Measures environmental, health and safety results utilizing: 1) Severe Incident Factors (“SIF”), and 2) Environmental Reportable Incidents (“ERI”).  

SIF and ERI will be measured for the Parent, for each Division, and for specified Business Units. 

Associates participating at the Corporate, Division, Business unit or Commercial plan level have a total of five percent of their incentive target based on the achievement of the applicable SIF goal and 5 percent of their incentive target based on the achievement of the applicable ERI goal.

Cash Flow - Represents the amount of cash generated by business operations. Cash flow is defined as Segment EBITDA, net trading capital improvement and/or usage, capital spending and interest paid along with other operating cash flow items such as income taxes paid and pension contributions.  The purpose of this component is to focus on cost control and cost reduction actions to preserve an adequate amount of liquidity to fund operations and capital expenditures, service debt, and ultimately sustain the business through difficult economic cycles.  

Cash Flow will be measured for the Parent and for each Division, and may exclude certain unusual, non-recurring items at the discretion of the Compensation Committee of the Hexion Holdings Board of Managers (the “Board”).  

            1

Associates participating at the Corporate, Division, or Business Unit plan level have a total of 35 percent of their incentive target based on the achievement of the applicable Parent or Division Cash Flow target.  Associates participating at the Commercial plan level have 30 percent of their incentive target based on the achievement of the applicable Division Cash Flow target.

Supplemental Commercial Plan Measure

Margin over Material (“MOM”) - Associates participating at the Commercial plan level have 50 percent of their incentive target based on the achievement of applicable MOM targets.  MOM refers to sales less raw materials & distribution costs.  

Target Incentive

Each participant will have a target incentive opportunity expressed as a percent of his or her base salary.  Plan assignment levels and targets are determined by the associate's business responsibilities and scope of his or her role and contributions within the organization.  Associates who participate at the Shared Services plan level have targets based 50 percent on the Hexion Corporate plan design and 50 percent on the MPM Corporate plan design as reflected in the MPM Holdings Inc. 2015 Incentive Compensation Plan.  

Plan Structure

The following tables depict the structure described above.

	
				
	Plan Level
	Segment EBITDA
	EH&S
	Cash Flow

	Corporate
	27.5% Global Hexion
27.5% Divisions
	10% Global Hexion
	25% Global Hexion
10%  Divisions

	Shared Services
	50% Hexion Corporate Design
50% MPM Corporate Design

	Division
	10% Global Hexion
45% Division
	10% Division
	10% Global Hexion
25% Division

	Business Unit
	10% Division
45% Business Unit
	10% Division or
Business Unit
	10% Global Hexion
25% Division

	
					
	Plan Level
	Segment EBITDA
	Annual MOM
	EH&S
	Cash Flow

	EPCD-Commercial
	10% Business Unit
	50% Regional BU
	10% Division
	30% Division

	FPD Brazil-Commercial
	10% Business Unit
	30% Division

Calculation of Incentive Payments 

Payment based on the EBITDA measure will range from a minimum of 50 percent of the EBITDA incentive opportunity to a maximum of 200 percent of the EBITDA incentive opportunity based on applicable EBITDA achievement.  Payment based on the Cash Flow measure will range from a minimum of 50 percent of the Cash Flow incentive opportunity to a maximum of 200 percent of the Cash Flow incentive opportunity based on applicable Cash Flow achievement.  Payment based on the EH&S measures will range from 50 percent of the applicable EH&S incentive opportunity to a maximum of 200 percent of the applicable EH&S incentive opportunity based on the applicable EH&S achievement.  For the SIF component of the EH&S measure, there will be no payout if, during the calendar year, any incident at a Hexion site results in a fatality.

Calculation of EBITDA performance between the minimum and target performance levels, the target and upper-middle performance levels, and the upper middle and maximum performance levels will be linear, rounded to the nearest 1/10th of one percent.  There is no additional payment made for performance above the maximum level of performance.  

Each of the performance measures is evaluated independently such that a payout for achieving one performance measure is not dependent upon the achievement of any other performance measure.

            2

Basis for Award Payouts

Financial Results - Any Plan payouts require the prior approval of the Chairs of the Audit and Compensation Committees of the Board if they are to be made before audited financial results have been formally approved and publicly announced. 

Minimum Award Guaranty  - If the actual performance of the company would result in a payment of less than 30 percent of an individual associate’s target incentive (including all pro-rations), then, regardless of actual performance, payment equaling 30 percent of such target incentive (including all prorations) will be awarded. 

Limitations -The Compensation Committee of the Board may elect to modify the calculation of the annual targets based on acquisitions, divestitures or other unusual, non-recurring events or transactions that occur during the calendar year.  Hexion has the right to amend or terminate this Plan at any time.

Employment Requirement - Associates must be employed in an incentive-eligible position for at least three consecutive full months during the Plan Year and must be actively employed by Hexion on the final day of the Plan Year and on the incentive payment date in order to receive an incentive payment.  Plan participants are also eligible to receive an incentive payment if they are employed on the final day of the Plan Year, but prior to the incentive payment date their employment is: (i) involuntarily terminated without cause, (ii) terminated due to the participant’s death or disability, or (iii) terminated due to retirement with the participant having reached age 65 and completed at least ten years of service prior to retirement.

Plan Assignment Levels - Any change in a participant’s plan assignment level that is not related to a job transfer must be approved by an appropriate division or functional Vice President.

Payments - Incentive payments are subject to applicable taxes, garnishment, and wage orders.

Proration of Payments - Proration of payments will be made on a whole-month basis.  Associate changes on or before the 15th of any month will be applied starting on the 1st of that month.  Associate changes after the 15th of any month will be applied starting on the 1st of the following month.  A participant's incentive payment will be prorated for any of the following conditions:

		
	a.
	New Hires: Awards to participants who commenced employment during the Plan Year will be prorated.  Employment must commence on or before October 1, 2015 to be eligible to participate in the Plan.  Rehires will be treated as new hires.

		
	b.
	Salary: Awards will be calculated on the participant's base salary as of July 1, 2015.  Awards to participants whose base rate of pay changes after July 1, 2015 will be prorated.

		
	c.
	Job Changes or Transfers:  Awards to participants changing jobs or transferring between Divisions, Business Units, or Regions which result in a change to a different ICP target or plan incentive assignment during the Plan Year will be prorated.

		
	d.
	Leaves of Absence: For approved leaves of absence that exceed 12 cumulative weeks, the amount of time not worked beyond the 12 weeks will be excluded from the Plan Year and the associate will receive a prorated incentive.

The Plan remains at the total discretion of the Parent.  Parent retains the right to amend or adapt the design and rules of the Plan.  Local laws will prevail where necessary.

*           *         *

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