Document:

Exhibit 10.1

 Exhibit 10.1 
 EASTERN VIRGINIA BANKSHARES, INC. 
 2007 EQUITY COMPENSATION PLAN 
 ARTICLE 1 
 DEFINITIONS 

  

	1.03	Administrator 

 Administrator means the Committee.
Notwithstanding the preceding sentence, “Administrator” means the Board on any date on which there is not a Committee. 
  

	1.04	Agreement 

 Agreement means a written agreement (including
any amendment or supplement thereto) between the Company and a Participant specifying the terms and conditions of an Award granted to such Participant. 
  

	1.05	Award 

 Award means an award of Performance Shares, a Stock
Award, Stock Unit, Option or SAR granted to a Participant. 
  

	1.06	Board 

 Board means the Board of Directors of the Company.

  

	1.07	Change in Control 

 Change in Control means a change in
control of the Company of a nature that would be required to be reported (assuming such event has not been previously reported) in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act (or a successor
provision thereto), provided that, without limitation, a Change in Control shall be deemed to have occurred at such time after February 1, 2007 as (i) any “person”, within the meaning of Section 14(d) of the Exchange
Act, becomes the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities, or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of Directors cease for any reason to constitute at least a majority thereof unless the election or the nomination for election, by the Company’s shareholders, of each new
director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period. 
  

	1.08	Code 

 Code means the Internal Revenue Code of 1986, and any
amendments thereto. 
  

	1.09	Committee 

 Committee means the Compensation Committee of the
Board. 
  

	1.10	Common Stock 

 Common Stock means the common stock of
the Company. 

	1.11	Control Change Date 

 Control Change Date means the date on
which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions, the Control Change Date is the date of the last of such transactions. 
  

	1.12	Company 

 Company means Eastern Virginia Bankshares, Inc.

  

	1.13	Corresponding SAR 

 Corresponding SAR means an SAR that is
granted in relation to a particular Option and that can be exercised only upon the surrender to the Company, unexercised, of that portion of the Option to which the SAR relates. 
  

	1.14	Exchange Act 

 Exchange Act means the Securities Exchange Act
of 1934, as amended from time to time. 
  

	1.15	Fair Market Value 

 Fair Market Value means, on any given
date, the closing price of a share of common stock on the NASDAQ National Global Market or on the Principal Stock Exchange on which the Common Stock is traded, or if the Common Stock is not traded on such day, then on the next preceding day the
Common Stock was so traded or using any other reasonable application of a reasonable valuation method. 
  

	1.16	Incentive Award 

 Incentive Award means an Award which,
subject to such terms and conditions as may be prescribed by the Administrator, entitles the Participant to receive a payment, in cash or Common Stock or a combination of cash and Common Stock, from the Company or a Subsidiary. 
  

	1.17	Incentive Stock Option 

 Incentive Stock Option means an
Option which qualifies and is intended to qualify as an Incentive Stock Option under Section 422 of the Code. 
  

	1.18	Initial Value 

 Initial Value means, with respect to a
Corresponding SAR, the Option price per share of the related Option and, with respect to an SAR granted independently of an Option, the price per share of Common Stock as determined by the Administrator on the date of the grant; provided, however,
that the price per share of Common Stock encompassed by the grant of an SAR shall not be less than the Fair Market Value on the date of grant. 
  

	1.19	Non-Qualified Stock Option 

 Non-Qualified Stock Option means
an Option other than an Incentive Stock Option. 
  

	1.20	Option 

 Option means a stock option that entitles the holder
to purchase from the Company a stated number of shares of Common Stock at the price set forth in an Agreement. 

	1.21	Participant 

 Participant means a key employee of the Company
or a Subsidiary or a member of the Board or the board of directors of a Subsidiary or a consultant to the Company or a Subsidiary who satisfies the requirements of Article IV and is selected by the Administrator to receive an Award. 
  

	1.22	Performance Criteria 

 Performance Criteria means one or more
of (a) cash flow and/or free cash flow (before or after dividends), (b) earnings per share (including earnings before interest, taxes, depreciation and amortization) (diluted and basic earnings per share), (c) the price of Common
Stock, (d) return on equity, (e) total shareholder return, (f) return on capital (including return on total capital or return on invested capital), (g) return on assets or net assets, (h) market capitalization,
(i) total enterprise value (market capitalization plus debt), (j) economic value added, (k) debt leverage (debt to capital), (l) revenue, (m) income or net income, (n) operating income (o) operating profit or net
operating profit, (p) operating margin or profit margin, (q) return on operating revenue, (r) cash from operations, (s) operating ratio, (t) commodity or operating revenue and (u) market share. 
  

	1.23	Performance Shares 

 Performance Shares means an Award, in
the amount determined by the Administrator and specified in an Agreement, stated with reference to a specified number of shares of Common Stock, that entitles the holder to receive a payment for each specified share equal to the Fair Market Value of
Common Stock on the date of payment. 
  

	1.24	Plan 

 Plan means the Eastern Virginia Bankshares, Inc. 2007
Equity Compensation Plan. 
  

	1.25	SAR 

 SAR means a stock appreciation right that entitles the
holder to receive, with respect to each share of Common Stock encompassed by the exercise of such SAR, the excess, if any, of the Fair Market Value at the time of exercise over the Initial Value. References to “SARs” include both
Corresponding SARs and SARs granted independently of Options, unless the context requires otherwise. 
  

	1.26	Stock Award 

 Stock Award means Common Stock awarded to a
Participant under Article VIII. 
  

	1.27	Stock Unit 

 Stock Unit means an Award, in an amount
determined by the Administrator and specified in an Agreement, stated with reference to a specified number of shares of Common Stock, that entitles the holder to receive a payment for each Stock Unit equal to the Fair Market Value of a share of
Common Stock on the date of payment. 
  

	1.28	Subsidiary 

 Subsidiary means a Company or other business
entity that the Company directly or indirectly, through one or more intermediaries, controls fifty percent (50%) or more of the voting equity of such Company. 
 ARTICLE II 
 PURPOSES 
 The Plan is intended to assist the Company and Subsidiaries in recruiting and retaining individuals with ability and initiative by enabling such persons to participate in the future success of the Company and its
Subsidiaries and to 

 
associate their interests with those of the Company and its shareholders. The Plan is intended to permit the grant of Incentive Stock Options and
Non-Qualified Stock Options, and the grant of SARs, Stock Awards, Incentive Awards, Stock Units and Performance Shares. No Option that is intended to be an Incentive Stock Option shall be invalid for failure to qualify as an Incentive Stock Option.
The proceeds received by the Company from the sale of Common Stock pursuant to this Plan shall be used for general corporate purposes. 
 ARTICLE III 
 ADMINISTRATION 
 The Plan shall be administered by the Administrator. The Administrator shall have authority to grant Awards upon such terms (not inconsistent with the provisions of this Plan), as the Administrator may consider
appropriate. Such terms may include conditions (in addition to those contained in this Plan) on the exercisability of all or any part of an Option or SAR or on the transferability or forfeitability of a Stock Award or an award of Performance Shares,
Stock Units or an Incentive Award, including by way of example and not of limitation, requirements that the Participant complete a specified period of employment or service with the Company or a Subsidiary, requirements that the Company achieve a
specified level of financial performance or that the Company achieve a specified level of financial return. Notwithstanding any such conditions, the Administrator may, in its discretion, accelerate the time at which any Option or SAR may be
exercised, or the time at which a Stock Award may become transferable or nonforfeitable or both, or the time at which an award of Performance Shares, Stock Units or an Incentive Award may be settled. In addition, the Administrator shall have
complete authority to interpret all provisions of this Plan; to prescribe the form of Agreements; to adopt, amend, and rescind rules and regulations pertaining to the administration of the Plan; and to make all other determinations necessary or
advisable for the administration of this Plan. The express grant in the Plan of any specific power to the Administrator shall not be construed as limiting any power or authority of the Administrator. Any decision made, or action taken, by the
Administrator in connection with the administration of this Plan shall be final and conclusive. Neither the Administrator nor any member of the Committee shall be liable for any act done in good faith with respect to this Plan or any Agreement or
Award. All expenses of administering this Plan shall be borne by the Company, a Subsidiary or a combination thereof. 
 ARTICLE IV 

 ELIGIBILITY 
 Any key employee of
the Company, any member of the Board, any employee or director of a Subsidiary (including a Company that becomes a Subsidiary after the adoption of this Plan), or any consultant or advisor to the Company or a Subsidiary is eligible to participate in
this Plan if the Administrator, in its sole discretion, determines that such person has contributed or can be expected to contribute to the profits or growth of the Company or a Subsidiary. 
 ARTICLE V 
 STOCK SUBJECT TO PLAN 
  

	5.01	Shares Issued 

 Upon the award of shares of Common Stock
pursuant to a Stock Award or in settlement of an award of Stock Units, Performance Shares or an Incentive Award, the Company may issue shares of Common Stock from its authorized but unissued Common Stock. Upon the exercise of any Option or SAR the
Company may deliver to the Participant (or the Participant’s broker if the Participant so directs), shares of Common Stock from its authorized but unissued Common Stock. 
  

	5.02	Aggregate Limit 

 The maximum aggregate number of shares of
Common Stock that may be issued under this Plan, pursuant to the exercise of SARs and Options, the grant of Stock Awards and the settlement of Performance Shares, Stock Units and Incentive Awards is 400,000 shares. The maximum aggregate number of
shares that may be issued under this Plan and the maximum number of shares that may be issued pursuant to the exercise of Options shall be subject to adjustment as provided in Article XII. 

	5.03	Reallocation of Shares 

 If an Option is terminated, in whole
or in part, for any reason other than its exercise or the exercise of a Corresponding SAR, the number of shares of Common Stock allocated to the Option or portion thereof may be reallocated to other Awards to be granted under this Plan. If an SAR is
terminated, in whole or in part, for any reason other than its exercise or the exercise of a related Option, the number of shares of Common Stock allocated to the SAR or portion thereof may be reallocated to other Awards to be granted under this
Plan. If a Stock Unit, Incentive Award or an award of Performance Shares is terminated, in whole or in part, the number of shares of Common Stock allocated to the Stock Unit, Incentive Award or Performance Shares or portion thereof may be
reallocated to other Awards to be granted under this Plan. If a Stock Award is forfeited or terminated, in whole or in part, for any reason, the number of shares of Common Stock allocated to the Stock Award or portion thereof may be reallocated to
other Awards to be granted under this Plan. If shares of Common Stock are surrendered or withheld in satisfaction of tax withholding requirements the number of shares surrendered or withheld may be reallocated to other Awards to be granted under
this Plan. 
 ARTICLE VI 
 OPTIONS 
  

	6.01	Award 

 In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom an Option is to be granted and will specify the number of shares of Common Stock covered by each such award. 
  

	6.02	Option Price 

 The price per share for Common Stock purchased
on the exercise of an Option shall be determined by the Administrator on the date of grant, but shall not be less than the Fair Market Value on the date the Option is granted. Except for an adjustment authorized under Article XII, the Option price
may not be reduced (by amendment or cancellation of the Option or otherwise) after the date of grant. 
  

	6.03	Maximum Option Period 

 The maximum period in which an Option
may be exercised shall be ten years from the date such Option was granted. The terms of any Option may provide that it has a term that is less than such maximum period. The term of exercisability of any option may not be extended or renewed except
as may be permitted by Code Section 409A. 
  

	6.04	Nontransferability 

 Except as provided in Section 6.05,
each Option granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. In the event of any transfer of an Option (by the Participant or his transferee), the Option and any Corresponding SAR that
relates to such Option must be transferred to the same person or persons or entity or entities. Except as provided in Section 6.05, during the lifetime of the Participant to whom the Option is granted, the Option may be exercised only by the
Participant. No right or interest of a Participant in any Option shall be liable for, or subject to, any lien, obligation, or liability of such Participant. 

	6.05	Transferable Options 

 Section 6.04 to the contrary
notwithstanding, and if the Agreement provides, a Non-Qualified Stock Option may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or a partnership in
which such family members are the only partners, on such terms and conditions as may be permitted under Securities Exchange Commission Rule 16b-3 as in effect from time to time. The holder of an Option transferred pursuant to this section shall be
bound by the same terms and conditions that governed the Option during the period that it was held by the Participant; provided, however, that such transferee may not transfer the Option except by will or the laws of descent and distribution. In the
event of any transfer of an Option (by the Participant or his transferee), the Option and any Corresponding SAR that relates to such Option must be transferred to the same person or persons or entity or entities. 
  

	6.06	Employee Status 

 For purposes of determining the
applicability of Section 422 of the Code (relating to Incentive Stock Options), or in the event that the terms of any Option provide that it may be exercised only during employment or continued service or within a specified period of time after
termination of employment or service, the Administrator may decide to what extent leaves of absence for governmental or military service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or
service. 
  

	6.07	Exercise 

 Subject to the provisions of this Plan and the
applicable Agreement, an Option may be exercised in whole at any time or in part from time to time at such times and in compliance with such requirements as the Administrator shall determine; provided, however, that Incentive Stock Options (granted
under the Plan and all plans of the Company and its Related Entities) may not be first exercisable in a calendar year for stock having a Fair Market Value (determined as of the date an Option is granted) exceeding the limit prescribed by
Section 422(d) of the Code. An Option granted under this Plan may be exercised with respect to any number of whole shares less than the full number for which the Option could be exercised. A partial exercise of an Option shall not affect the
right to exercise the Option from time to time in accordance with this Plan and the applicable Agreement with respect to the remaining shares subject to the Option. The exercise of an Option shall result in the termination of any Corresponding SAR
to the extent of the number of shares with respect to which the Option is exercised. 
  

	6.08	Payment 

 Unless otherwise provided by the Agreement, payment
of the Option price shall be made in cash or a cash equivalent acceptable to the Administrator. If Common Stock is used to pay all or part of the Option price, the sum of the cash and cash equivalent and the Fair Market Value (determined as of the
day preceding the date of exercise) of the shares surrendered must not be less than the Option price of the shares for which the Option is being exercised. 
  

	6.09	Change in Control 

 If provided in an Agreement, each
outstanding Option shall be fully exercisable (in whole or in part at the discretion of the holder) upon a Change in Control. 
  

	6.10	Shareholder Rights 

 No Participant shall have any rights as
a shareholder with respect to shares subject to his Option until the date of exercise of such Option. 
  

	6.11	Disposition of Stock 

 A Participant shall notify the Company
of any sale or other disposition of Common Stock acquired pursuant to an Option that was an Incentive Stock Option if such sale or disposition occurs (i) within two years of the grant of an Option or (ii) within one year of the issuance of
the Common Stock to the Participant. Such notice shall be in writing and directed to the Secretary of the Company. 

 ARTICLE VII 
 SARS 
  

	7.01	Award 

 In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom SARs are to be granted and will specify the number of shares covered by each such award. 
  

	7.02	Maximum SAR Period 

 The maximum period in which an SAR may
be exercised shall be ten years from the date such SAR was granted. The terms of any SAR may provide that it has a term that is less than such maximum period. 
  

	7.03	Nontransferability 

 Except as provided in Section 7.04,
each SAR granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. In the event of any such transfer, a Corresponding SAR and the related Option must be transferred to the same person or persons or
entity or entities. Except as provided in Section 7.04, during the lifetime of the Participant to whom the SAR is granted, the SAR may be exercised only by the Participant. No right or interest of a Participant in any SAR shall be liable for,
or subject to, any lien, obligation, or liability of such Participant. 
  

	7.04	Transferable SARs 

 Section 7.03 to the contrary
notwithstanding, if the Agreement provides, an SAR, other than a Corresponding SAR that is related to an Incentive Stock Option, may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for
the benefit of such family members or a partnership in which such family members are the only partners, on such terms and conditions as may be permitted under Securities Exchange Commission Rule 16b-3 as in effect from time to time. The holder of an
SAR transferred pursuant to this section shall be bound by the same terms and conditions that governed the SAR during the period that it was held by the Participant; provided, however, that such transferee may not transfer the SAR except by will or
the laws of descent and distribution. In the event of any transfer of a Corresponding SAR (by the Participant or his transferee), the Corresponding SAR and the related Option must be transferred to the same person or person or entity or entities.

  

	7.05	Exercise 

 Subject to the provisions of this Plan and the
applicable Agreement, an SAR may be exercised in whole at any time or in part from time to time at such times and in compliance with such requirements as the Administrator shall determine; provided, however, that a Corresponding SAR that is related
to an Incentive Stock Option may be exercised only to the extent that the related Option is exercisable and only when the Fair Market Value exceeds the option price of the related Option. An SAR granted under this Plan may be exercised with respect
to any number of whole shares less than the full number for which the SAR could be exercised. A partial exercise of an SAR shall not affect the right to exercise the SAR from time to time in accordance with this Plan and the applicable Agreement
with respect to the remaining shares subject to the SAR. The exercise of a Corresponding SAR shall result in the termination of the related Option to the extent of the number of shares with respect to which the SAR is exercised. 
  

	7.06	Change in Control 

 If provided in an Agreement, each
outstanding SAR shall be fully exercisable (in whole or in part at the discretion of the holder) upon a Change in Control. 

	7.07	Employee Status 

 If the terms of any SAR provide that it may
be exercised only during employment or continued service or within a specified period of time after termination of employment or service, the Administrator may decide to what extent leaves of absence for governmental or military service, illness,
temporary disability or other reasons shall not be deemed interruptions of continuous employment or service. 
  

	7.08	Settlement 

 At the Administrator’s discretion, the
amount payable as a result of the exercise of an SAR may be settled in cash, Common Stock, or a combination of cash and Common Stock. No fractional share will be deliverable upon the exercise of an SAR but a cash payment will be made in lieu
thereof. 
  

	7.09	Shareholder Rights 

 No Participant shall, as a result of
receiving an SAR, have any rights as a shareholder of the Company until the date that the SAR is exercised and then only to the extent that the SAR is settled by the issuance of Common Stock. 
 ARTICLE VIII 
 STOCK AWARDS 
  

	8.01	Award 

 In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom a Stock Award is to be made and will specify the number of shares of Common Stock covered by each such award. 
  

	8.02	Vesting 

 The Administrator, on the date of the award, may
prescribe that a Participant’s rights in a Stock Award shall be forfeitable or otherwise restricted for a period of time or subject to such conditions as may be set forth in the Agreement. By way of example and not of limitation, the
restrictions may postpone transferability of the shares or may provide that the shares will be forfeited if the Participant separates from the service of the Company and its Subsidiaries before the expiration of a stated period or if the Company, a
Subsidiary, the Company and its Subsidiaries or the Participant fails to achieve stated performance objectives, including performance objectives stated with reference to Performance Criteria. The Administrator, in its discretion, may waive the
requirements for vesting or transferability for all or part of the shares subject to a Stock Award in connection with a Participant’s termination of employment or service. An election by one Participant to postpone vesting of a Stock Award or
any other election that could result in a deferral of compensation under Code Section 409A may be made only if authorized by the Committee and only in accordance with the requirements of Code Section 409A. 
  

	8.03	Employee Status 

 In the event that the terms of any Stock
Award provide that shares may become transferable and nonforfeitable thereunder only after completion of a specified period of employment or service, the Administrator may decide in each case to what extent leaves of absence for governmental or
military service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service. 
  

	8.04	Change in Control 

 If provided in an Agreement, each
outstanding Stock Award shall be transferable and nonforfeitable upon a Change in Control. 

	8.05	Shareholder Rights 

 Prior to their forfeiture (in accordance
with the applicable Agreement and while the shares of Common Stock granted pursuant to the Stock Award may be forfeited or are nontransferable), and if the Agreement so provides, a Participant will have all the rights of a shareholder with respect
to a Stock Award, including the right to receive dividends and vote the shares; provided, however, that during such period (i) a Participant may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of shares of Common Stock
granted pursuant to a Stock Award, (ii) the Company shall retain custody of the certificates evidencing shares of Common Stock granted pursuant to a Stock Award, and (iii) the Participant will deliver to the Company a stock power, endorsed
in blank, with respect to each Stock Award. The limitations set forth in the preceding sentence shall not apply after the shares of Common Stock granted under the Stock Award are transferable and are no longer forfeitable. 
 ARTICLE IX 
 PERFORMANCE SHARE
AWARDS 
  

	9.01	Award 

 In accordance with the provisions of Article IV, the
Administrator will designate each individual to whom an Award of Performance Shares is to be made and will specify the number of shares of Common Stock covered by each such Award. 
  

	9.02	Earning the Award 

 The Administrator, on the date of the
grant of an Award, shall prescribe that the Performance Shares, or a portion thereof, will be earned, and the Participant will be entitled to receive payment pursuant to the Award of Performance Shares, only upon the satisfaction of performance
objectives or such other criteria as may be prescribed by the Administrator and set forth in the Agreement. By way of example and not of limitation, the performance objectives or other criteria may provide that the Performance Shares will be earned
only if the Participant remains in the employ or service of the Company or a Subsidiary for a stated period or that the Company, a Subsidiary, the Company and its Subsidiaries or the Participant achieve stated objectives including Performance
Objectives stated with reference to Performance Criteria. Notwithstanding the preceding sentences of this Section 9.02, the Administrator, in its discretion, may reduce the duration of the performance period and may adjust the performance
objectives for outstanding Performance Shares in connection with a Participant’s termination of employment or service. An election by the Participant to postpone vesting or payment of a Performance Share Award/or a Stock Unit or any other
election that could result in a deferral of compensation under Code Section 409A may be made only if authorized by the Committee and only in accordance with the requirements of Section 409A of the Code. 
  

	9.03	Payment 

 In the discretion of the Administrator, the amount payable when an Award of Performance Shares is earned may be settled in cash, by the issuance of Common Stock or a combination of cash and Common Stock. A fractional share shall not be
deliverable when an Award of Performance Shares is earned, but a cash payment will be made in lieu thereof. In the case of each Performance Share/Stock Unit Award, either (A) payment shall be made by (i) the 15th day of the third month following the end of the Participant’s first taxable year in which the payment is no longer subject to a substantial risk of forfeiture or, if later, the
15th day of the third month following the end of the Company’s first taxable year in which the payment is no longer subject to a substantial risk of
forfeiture or (B) the terms of such Award shall be designed to satisfy Code Section 409A. 
  

	9.04	Shareholder Rights 

 No Participant shall, as a result of
receiving an Award of Performance Shares, have any rights as a shareholder until and to the extent that the Award of Performance Shares is earned and settled by the issuance of Common Stock. After an Award of Performance Shares is earned, if settled
completely or partially in Common Stock, a Participant will have all the rights of a shareholder with respect to such Common Stock. 

	9.05	Nontransferability 

 Except as provided in Section 7.06,
Performance Shares granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. No right or interest of a Participant in any Performance Shares shall be liable for, or subject to, any lien, obligation,
or liability of such Participant. 
  

	9.06	Transferable Performance Shares 

 Section 9.05 to the
contrary notwithstanding, if the Agreement provides, an Award of Performance Shares may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or a
partnership in which such family members are the only partners, on such terms and conditions as may be permitted under Securities Exchange Commission Rule 16b-3 as in effect from time to time. The holder of Performance Shares transferred pursuant to
this section shall be bound by the same terms and conditions that governed the Performance Shares during the period that they were held by the Participant; provided, however that such transferee may not transfer Performance Shares except by will or
the laws of descent and distribution. 
  

	9.07	Employee Status 

 In the event that the terms of any
Performance Share Award provide that no payment will be made unless the Participant completes a stated period of employment or service, the Administrator may decide to what extent leaves of absence for government or military service, illness,
temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service. 
  

	9.08	Change in Control 

 If provided in an Agreement, each
outstanding Performance Share Award shall be earned upon a Change in Control and Participants shall be entitled to that portion of their Performance Share Award determined in the Agreement. 
 ARTICLE X 
 INCENTIVE AWARDS 
  

	10.01	Award 

 The Administrator shall designate Participants to
whom Incentive Awards are made. All Incentive Awards shall be finally determined exclusively by the Administrator under the procedures established by the Administrator. 
  

	10.02	Terms and Conditions 

 The Administrator, at the time an
Incentive Award is made, shall specify the terms and conditions which govern the Award. Such terms and conditions shall prescribe that the Incentive Award shall be earned only upon, and to the extent that, performance objectives are satisfied during
a performance period of at least one year after the grant of the Incentive Award. By way of example and not of limitation, the performance objectives may provide that the Incentive Award will be earned only if the Company, a Subsidiary or the
Company and its Subsidiaries achieve stated objectives, including objectives stated with reference to Performance Criteria. The Administrator, at the time an Incentive Award is made, shall also specify when amounts shall be payable under the
Incentive Award and whether amounts shall be payable in the event of the Participants’ death, disability, or retirement. 
  

	10.03	Nontransferability 

 Except as provided in
Section 10.04, Incentive Awards granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. No right or interest of a Participant in an Incentive Award shall be liable for, or subject to, any
lien, obligation, or liability of such Participant. 

	10.04	Transferable Incentive Awards 

 Section 10.03 to the
contrary notwithstanding, if provided in an Agreement, an Incentive Award may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or to a partnership in
which such family members are the only partners, on such terms and conditions as may be permitted by Rule 16b-3 under the Exchange Act as in effect from time to time. The holder of an Incentive Award transferred pursuant to this Section shall be
bound by the same terms and conditions that governed the Incentive Award during the period that it was held by the Participant, provided, however, that such transferee may not transfer the Incentive Award except by will or the laws of descent and
distribution. 
  

	10.05	Employee Status 

 If the terms of an Incentive Award provide
that a payment will be made thereunder only if the Participant completes a stated period of employment or service, the Administrator may decide to what extent leaves of absence for governmental or military service, illness, temporary disability or
other reasons shall not be deemed interruptions of continuous employment or service. 
  

	10.06	Change in Control 

 If provided in an Agreement, each
outstanding Incentive Award shall be earned in its entirety upon a Change in Control. 
  

	10.07	Shareholder Rights 

 No Participant shall, as a result of
receiving an Incentive Award, have any rights as a shareholder of the Company or an Subsidiary on account of such award until, and except to the extent that, the Incentive Award is earned and settled in shares of Common Stock. 
 ARTICLE XI 
 STOCK UNITS 

  

	11.01	Award 

 In accordance with the provisions of Article IV, the
Administrator will designate individual to whom an Award of Stock Units is to be made and will specify the number of Stock Units covered by such Award. 
  

	11.02	Earning the Award 

 The Administrator, on the date of grant
of the Award, may prescribe that the Stock Units or a portion thereof, will be earned only upon, and the Participant will be entitled to receive a payment pursuant to the Award of Stock Units, only upon the satisfaction of Performance Objectives or
such other criteria as may be prescribed by the Administrator and set forth in the Agreement. By way of example and not of limitation, the Performance Objectives or other criteria may provide that the Stock Units will be earned only if the
Participant remains in the employ or service of the Company or a Subsidiary for a stated period or that the Company, a Subsidiary, the Company and its Subsidiaries or the Participant achieve stated objectives including Performance Objectives stated
with reference to Performance Criteria. Notwithstanding the preceding sentences of this Section 11.02, the Administrator, in its discretion, may reduce the duration of the performance period and may adjust the performance objectives for
outstanding Stock Units in connection with a Participant’s termination of employment or service. An election by the Participant to postpone vesting or payment of a Performance Share Award/or a Stock Unit or any other election that could result
n a deferral of compensation under Code Section 409A may be made only if authorized by the Committee and only in accordance with the requirements of Section 409A of the Code. 

	11.03	Payment 

 In accordance with the Agreement, the amount payable when an award of Stock Units is earned may be settled in cash, Common Stock or a combination of cash and Common Stock. A fractional share shall not be deliverable when an Award of Stock
Units is earned, but a cash payment will be made in lieu thereof. In the case of each Performance Share/Stock Unit Award, either (A) payment shall be made by (i) the 15th day of the third month following the end of the Participant’s first taxable year in which the payment is no longer subject to a substantial risk of forfeiture or, if later, the 15th day of the third month following the end of the Company’s first taxable year in which the payment is no longer subject to a substantial risk of forfeiture or (B) the terms
of such Award shall be designed to satisfy Code Section 409A. 
  

	11.04	Nontransferability 

 A Participant may not sell, transfer,
pledge, exchange, hypothecate, or otherwise dispose of a Stock Unit Award other than by will or the laws of descent and distribution. The limitations set forth in the preceding sentence shall not apply to Common Stock issued as payment pursuant to a
Stock Unit Award. 
  

	11.05	Shareholder Rights 

 No Participant shall, as a result of
receiving a Stock Unit Award, have any rights as a shareholder of the Company or Subsidiary until and to the extent that the Stock Units are earned and settled in shares of Common Stock. After Stock Units are earned and settled in shares of Common
Stock, a Participant will have all the rights of a shareholder with respect to such shares. 
  

	11.06	Change in Control 

 If provided in an Agreement, each Stock
Unit shall be earned in its entirety as of a Control Change Date without regard to whether any Performance Criteria or other condition to which the award is subject have been met. 
 ARTICLE XII 
 ADJUSTMENT UPON CHANGE IN COMMON STOCK 
 The maximum number of shares as to which Awards may be granted under this Plan, and the terms of outstanding Awards, shall be adjusted as the Committee shall determine
to be equitably required in the event that (a) the Company (i) effects one or more stock dividends, stock split-ups, subdivisions or consolidations of shares or (ii) engages in a transaction to which Section 424 of the Code
applies, (b) there occurs any other event which, in the judgment of the Committee necessitates such action or (c) there is a Change in Control. Any determination made under this Article XII by the Committee shall be final and
conclusive. 
 The issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or
property, or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefore, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the maximum number of shares as to which Awards may be granted, the per individual limitations on the number of shares of Common Stock for which Awards may be granted or the
terms of outstanding Awards. 
 The Committee may make Awards in substitution for performance shares, phantom shares, stock awards, stock options, stock
appreciation rights, or similar awards held by an individual who becomes an employee of the Company or a Subsidiary in connection with a transaction or event described in the first paragraph of this Article XII. Notwithstanding any provision of the
Plan (other than the limitation of Section 5.02), the terms of such substituted Awards shall be as the Committee, in its discretion, determines is appropriate. 

 ARTICLE XIII 
 COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES 
 No Option or SAR shall be exercisable, no Common Stock
shall be issued, no certificates for shares of Common Stock shall be delivered, and no payment shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation, withholding
tax requirements), any listing agreement to which the Company is a party, and the rules of all domestic stock exchanges on which the Company’s shares may be listed. The Company shall have the right to rely on an opinion of its counsel as to
such compliance. Any share certificate issued to evidence Common Stock when a Stock Award is granted, a Performance Share, Stock Unit or Incentive Award is settled or for which an Option or SAR is exercised may bear such legends and statements as
the Administrator may deem advisable to assure compliance with federal and state laws and regulations. No Option or SAR shall be exercisable, no Stock Award, Stock Unit, Performance Share or Incentive Award shall be granted, no Common Stock shall be
issued, no certificate for shares shall be delivered, and no payment shall be made under this Plan until the Company has obtained such consent or approval as the Administrator may deem advisable from regulatory bodies having jurisdiction over such
matters. 
 ARTICLE XIV 
 GENERAL PROVISIONS 
  

	14.01	Effect on Employment and Service 

 Neither the adoption of
this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof), shall confer upon any individual any right to continue in the employ or service of the Company or a Subsidiary or in any way affect any right or
power of the Company or a Subsidiary to terminate the employment or service of any individual at any time with or without assigning a reason therefore. 
  

	14.02	Unfunded Plan 

 The Plan, insofar as it provides for grants,
shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be represented by grants under this Plan. Any liability of the Company to any person with respect to any grant under this Plan shall be based
solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company. 
  

	14.03	Rules of Construction 

 Headings are given to the articles
and sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation, or other provision of law shall be construed to refer to any amendment to or successor of such provision of law. 
  

	14.04	Tax Withholding 

 Each Participant shall be responsible for
satisfying any income and employment tax withholding obligation attributable to participation in this Plan. In accordance with procedures established by the Administrator, a Participant may surrender shares of Common Stock, or receive fewer shares
of Common Stock than otherwise would be issuable, in satisfaction of all or part of that obligation. 
 ARTICLE XV 
 AMENDMENT 
 The Board may amend or terminate
this Plan from time to time; provided, however, that no amendment may become effective until shareholder approval is obtained if (i) the amendment increases the aggregate number of shares of Common Stock that may be issued under the Plan (other
than an adjustment pursuant to Article XII) or (ii) the amendment changes the class of individuals eligible to become Participants. No amendment shall, without a 

 
Participant’s consent, adversely affect any rights of such Participant under any Award outstanding at the time such amendment is made or shall cause an
Award to result in a Code Section 409A deferral of compensation unless such amended Award complies with the requirements of Code Section 409A. 
 ARTICLE XVI 
 DURATION OF PLAN 
 No Awards may be granted under this Plan more than ten years after the earlier of the date the Plan is adopted by the Board or the date that the Plan is approved in
accordance with Article XVII. Awards granted before that date shall remain valid in accordance with their terms. 
 ARTICLE XVII

 EFFECTIVE DATE OF PLAN 
 Options, SARs, Incentive Awards, Stock Units and Performance Shares may be granted under this Plan upon its adoption by the Board, provided that no Option, SAR, Incentive Awards Stock Units or Performance Shares shall be effective or
exercisable unless this Plan is approved by a majority of the votes cast by the Company’s shareholders, voting either in person or by proxy, at a duly held shareholders’ meeting at which a quorum is present or by unanimous consent. Stock
Awards may be granted under this Plan, upon the later of its adoption by the Board or its approval by shareholders in accordance with the preceding sentence.Form of senior debt security--medium-term note

 Exhibit 4.01 
 LEHMAN BROTHERS HOLDINGS INC. 
 Performance Securities with Partial Protection Linked to a Global Index Basket Due
July 30, 2010 
  

			
	Number R-1	  	$17,008,330
	ISIN US52520W3584	  	CUSIP 52520W358

 See Reverse for Certain Definitions 
 THIS SECURITY (THIS “SECURITY”) IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO SUCH DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TO LEHMAN BROTHERS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), 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. 
 LEHMAN BROTHERS
HOLDINGS INC., a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company”), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the
office or agency of the Company in the Borough of Manhattan, The City of New York, on the Maturity Date, in such coin or currency of the United States of America at the time of payment shall be legal tender for the payment of public and private
debts, for each $10 principal amount of the Securities represented hereby, an amount equal to the Payment at Maturity. THE SECURITIES REPRESENTED HEREBY SHALL NOT BEAR ANY INTEREST. 
 Any amount payable on the Maturity Date hereon will be paid only upon presentation and surrender of this Security. 
 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. 

 Each Basket Index is a mark of the sponsor of such Basket Index and has been licensed for use by the
Company. The Securities, which are linked to the performance of the Basket Indices, are not sponsored, endorsed, sold or promoted by the sponsors of the Basket Indices and the sponsors of the Basket Indices make no representation regarding the
advisability of investing in the Securities. 
 This Security shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by the Trustee under the Indenture referred to on the reverse hereof. 

 IN WITNESS WHEREOF, Lehman Brothers Holdings Inc. has caused this instrument to be signed by its
Chairman of the Board, its President, its Vice Chairman, its Chief Financial Officer, one of its Vice Presidents or its Treasurer, by manual or facsimile signature under its corporate seal, attested by its Secretary or one of its Assistant
Secretaries by manual or facsimile signature. 
 Dated: July 31, 2007 
  

							
	[SEAL]	 	LEHMAN BROTHERS HOLDINGS INC.	 	
				
		 	By:	 	  
	 	
		 		 	Vice President	 	
				
		 	Attest:	 	  
	 	
		 		 	Assistant Secretary	 	

  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

			
	CITIBANK, N.A.
	as Trustee
		
	By:	 	  

		 	    Authorized Officer

 Reverse of Security 
 This Security is one of a duly authorized series of Securities of the Company designated as Performance Securities with Partial Protection Linked to a Global Index Basket Due July 30, 2010 (herein called the
“Securities”). The Company may, without the consent of the holders of the Securities, create and issue additional securities ranking equally with the Securities and otherwise similar in all respects so that such further securities
shall be consolidated and form a single series with the Securities; provided, however, that no additional securities can be issued if an Event of Default has occurred with respect to the Securities. This series of Securities is one of an indefinite
number of series of debt securities of the Company, issued and to be issued under an indenture, dated as of September 1, 1987, as amended (herein called the “Indenture”), duly executed and delivered by the Company and Citibank,
N.A., 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 description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities. 
 The
Payment at Maturity, at the request of the Trustee, shall be determined by the Calculation Agent pursuant to the Calculation Agency Agreement. The Trustee shall fully rely on the determination by the Calculation Agent of the Payment at Maturity and
shall have no duty to make any such determination. The Calculation Agent will provide written notice to the Trustee at its New York office, on which notice the Trustee may conclusively rely, of the Payment at Maturity on or prior to 11:00 a.m. on
the Business Day preceding the Maturity Date. 
 All calculations with respect to the Basket Ending Level and the Basket Return (including
each Index Return) will be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., .876545 would be rounded to .87655); all dollar amounts related to determination of the Payment at Maturity per $10
principal amount Security will be rounded to the nearest ten-thousandth, with five one hundred-thousandths rounded upward (e.g., .76545 would be rounded up to .7655); and all dollar amounts paid on the aggregate principal amount of Securities
per Holder will be rounded to the nearest cent, with one-half cent rounded upward. 
 This Security is not subject to any sinking fund.

 If an Event of Default with respect to the Securities shall occur and be continuing, the amounts payable on all of the Securities may be
declared due and payable in the manner and with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal the Payment at Maturity, which will be calculated as
though the date of acceleration were the Maturity Date and the third Business Day immediately preceding the date of acceleration were the Final Valuation Date. If the maturity of the Securities is accelerated because of an Event of Default, the
Company shall, or shall cause the Calculation Agent to, provide written notice to the Trustee at its New York office, on which notice the Trustee may conclusively rely, and to The Depository Trust Company of the cash amount due with respect to the
Securities as promptly as possible and in no event later than two Business Days after the date of acceleration. 

 The Indenture contains provisions permitting the Company and the Trustee, with the consent of the
holders of not less than 66 2/3% in aggregate principal amount of each series of Securities at the time
Outstanding to be affected (each series voting as a class), evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to, or changing in any manner or eliminating any of the provisions of the Indenture or of
any supplemental indenture or modifying in any manner the rights of the holders of the Securities of all such series; provided, however, that no such supplemental indenture shall, among other things, (i) change the fixed
maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, if any, or reduce any premium payable on redemption, or make the principal thereof, or premium, if any, or
interest thereon, if any, payable in any coin or currency other than that hereinabove provided, without the consent of the holder of each Security so affected, or (ii) change the place of payment on any Security, or impair the right to
institute suit for payment on any Security, or reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of each Security so affected. It is
also provided in the Indenture that, prior to any declaration accelerating the maturity of any series of Securities, the holders of a majority in aggregate principal amount of the Securities of such series Outstanding may on behalf of the holders of
all the Securities of such series waive any past default or Event of Default under the Indenture with respect to such series and its consequences, except a default in the payment of interest, if any, or the principal of, or premium, if any, on any
of the Securities of such series, or in the payment of any sinking fund installment or analogous obligation with respect to Securities of such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon
such Holder and upon all future holders and owners of this Security and any Securities which may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 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 amount with respect to this Security. 
 The Securities are issuable
in denominations of $10 and any whole multiples of $10. 
 The Company, the Trustee, and any agent of the Company or of the Trustee may deem
and treat the registered holder (the “Holder”) hereof as the absolute owner of this Security (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of
receiving payment hereof, or on account hereof, and for all other purposes and neither the Company nor the Trustee nor any agent of the Company or of the Trustee shall be affected by any notice to the contrary. All such payments made to or upon the
order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys payable on this Security. 
 No recourse for the payment of the principal of, premium, if any, or interest on this Security, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any indenture supplemental thereto or in any Security, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 

 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 Corporate Trust Office or agency in a Place of Payment for this Security, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Securities of this series or of like tenor and of
authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The
Company intends to treat, and by purchasing this Security, the Holder agrees to treat, for all tax purposes, this Security as a cash-settled financial contract, rather than as a debt instrument. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Definitions 
 Set forth below are definitions of the
terms used in this Security. 
 “Basket” shall mean the basket of three Basket Indices. 
 “Basket Ending Level,” as calculated by the Calculation Agent on the Final Valuation Date, shall be calculated as follows: 

Basket Starting Level × [1 + (the sum of (Index Return × Index Weighting) for all 
 Basket Indices)] 
 “Basket Index” refers to each of the S&P
500® Index (SPX), the Dow Jones EURO STOXX 50® Index (SX5E) and the Nikkei 225SM
 Index (NKY) or any successor to any of the foregoing. 
 “Basket
Return” as calculated by the Calculation Agent, is calculated as follows: 
  

	
	Basket Ending Level – Basket Starting Level
	Basket Starting Level

 “Basket Starting Level” equals 100. 
 “Business Day”, notwithstanding any provision in the Indenture, shall mean any day that is not a Saturday or Sunday and that is not a
day on which banking institutions in the City of New York are authorized or obligated by law to close. 
 “Calculation Agency
Agreement” shall mean the Calculation Agency Agreement, dated as of December 21, 2006 between the Company and the Calculation Agent, as amended from time to time, or any successor calculation agency agreement. 
 “Calculation Agent” shall mean the person that has entered into an agreement with the Company providing for, among other things, the
determination of the Payment at Maturity, which term shall, unless the context otherwise requires, include its successors and assigns. The initial Calculation Agent shall be Lehman Brothers Inc. 

 “Closing Price” of a security, on any particular day, means the last reported sales
price for that security on the Relevant Exchange at the scheduled weekday closing time of the regular trading session of the Relevant Exchange. If, however, the security is not listed or traded on a bulletin board, then the Closing Price of the
security will be determined using the average execution price per share that an affiliate of the Company pays or receives upon the purchase or sale of the security used to hedge the Company’s obligations under the Securities. 
 “Company” shall have the meaning set forth on the face of this Security. 
 “Final Valuation Date” shall mean July 27, 2010; provided, however, that if the Final Valuation Date
is not a Trading Day or if there is a Market Disruption Event on such day, with respect to a Basket Index, the Calculation Agent will: 
  

	 	•	 	 with respect to each Basket Index for which such day is a Trading Day and for which a Market Disruption Event has not occurred, determine the closing
level of such Basket Index for use in calculating the Index Ending Level by reference to the closing level of such Basket Index on that Trading Day; and 

  

	 	•	 	 with respect to each Basket Index for which such day is not a Trading Day or for which a Market Disruption Event has occurred, determine the closing
level of such Basket Index for use in calculating the Index Ending Level by reference to the closing level of such Basket Index on the next Trading Day for such Basket Index on which no Market Disruption Event occurs; provided, however, if a
Market Disruption Event with respect to such Basket Index occurs on each of the eight Trading Days following the originally scheduled Final Valuation Date, the Calculation Agent shall determine the Closing Level of such Basket Index for use in
calculating the Index Ending Level in accordance with the formula for and method of calculating the closing index level of such Basket Index last in effect prior to commencement of the Market Disruption Event (or prior to the non-Trading Day), using
the closing price (or, if trading in the relevant securities has been materially suspended or materially limited, its good faith estimate of the closing price that would have prevailed but for such suspension or limitation or non-Trading Day) on
such eighth scheduled Trading Day of each security most recently included in the Basket Index. 

 “Holder” shall have the meaning set forth on the reverse of this Security. 
 “Indenture” shall
have the meaning set forth on the reverse of this Security. 
 “Index Closing Level”, as determined by the Calculation
Agent, shall mean, with respect to any Trading Day and any Basket Index, the closing level of such Basket Index or the related Successor Index, as the case may be, at the regular official weekday close of the principal trading session of the
Relevant Exchange or market for the Basket Index or the Successor Index, as the case may be, on such day, or as determined by the Calculation Agent pursuant to the Calculation Agency Agreement as described below under “Discontinuation of a
Basket Index; Alteration of Method of Calculation.” 
 “Index Return,” as calculated by the Calculation Agent, is
calculated as follows for each Basket Index: 
  

	
	Index Ending Level – Index Starting Level
	Index Starting Level

 “Index Ending Level” shall equal the Index Closing Level of a Basket Index on the Final
Valuation Date. 
 “Index Starting Level”, with repect to any Basket Index, is the closing level of the Basket Index on
July 26, 2007. The Index Starting Level for each of the three Basket Indices is as follows: 
  

			
	S&P 500® Index (SPX)	  	1,482.66
		
	Dow Jones EURO STOXX 50® Index (SX5E)	  	4,252.92
		
	Nikkei 225SM Index (NKY)	  	17,702.09

 “Index Weighting” shall mean the weighting for Basket Index. The Index Weightings
of the three Basket Indices are as follows: 
  

			
	S&P 500® Index (SPX)	  	33.34%
		
	Dow Jones EURO STOXX 50® Index (SX5E)	  	33.33%
		
	Nikkei 225SM Index (NKY)	  	33.33%

 “Market Disruption Event”, with respect to any of the Basket Indices (or any
Successor Index) shall mean any of the following events has occurred on any day as determined by the Calculation Agent: 
 (1)    a suspension, absence or material limitation of trading of stocks then constituting 20% or more of the level of such Basket Index (or the relevant Successor Index) on the Relevant Exchanges for such securities at
any time during the one hour period preceding the close of the principal trading session on such Relevant Exchange; 
 (2)    a breakdown or failure in the price and trade reporting systems of the primary market of any Relevant Exchange as a result of which the reported trading prices for stocks then constituting 20% or more of the level
of such Basket Index (or the relevant Successor Index) at any time during the one hour period preceding the close of the principal trading session on such Relevant Exchange are materially inaccurate; 
 (3)    a suspension, absence or material limitation of trading on any major securities exchange for trading in futures or options
contracts or exchange traded funds related to such Basket Index (or the relevant Successor Index) at any time during the one hour period preceding the close of, the principal trading session on such exchange; or 
 (4)    a decision to permanently discontinue trading in the relevant futures or options contracts or exchange traded funds;

 in each case as determined by the Calculation Agent in its sole discretion. 
 For the purpose of determining whether a Market Disruption Event exists at any time, if trading in a security included in a Basket Index is materially suspended or materially limited at that time, then the relevant
percentage contribution of that security to the level of such Basket Index shall be based on a comparison of: 
 (1)    the portion of the level of such Basket Index attributable to that security relative to 

 (2)    the overall level of such Basket Index, 
 in each case immediately before that suspension or limitation. 
 For purposes of determining whether a Market Disruption Event has occurred: 
 (1)    a limitation on the hours
or number of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the Relevant Exchange or market; 
 (2)    limitations pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80B (or any applicable rule or regulation
enacted or promulgated by any other self-regulatory organization or any government agency of scope similar to NYSE Rule 80B as determined by the Calculation Agent in its sole discretion) on trading during significant market fluctuations will
constitute a suspension, absence or material limitation of trading; 
 (3)    a suspension of trading in futures or
options contracts on the Basket Index by the primary securities market trading in such contracts by reason of (i) a price change exceeding limits set by such exchange or market, (ii) an imbalance of orders relating to such contracts, or
(iii) a disparity in bid and ask quotes relating to such contracts, will, in each such case, constitute a suspension, absence or material limitation of trading in futures or options contracts related to the Basket Index; and 
 (4)    a suspension, absence or material limitation of trading on any Relevant Exchange or on the primary market on which futures or
options contracts related to the Basket Index are traded will not include any time when such market is itself closed for trading under ordinary circumstances. 
 “Maturity Date” shall mean July 30, 2010, unless that day is not a Business Day, in which case the amount equal to the Payment at Maturity that would otherwise be made on the scheduled Maturity
Date will instead be due on the next succeeding Business Day following such scheduled Maturity Date, with the same effect as if paid on the scheduled Maturity Date; provided, that if due to a non-Trading Day or a Market Disruption Event, the Final
Valuation Date is postponed so that it falls less than three Business Days prior to the scheduled Maturity Date, the Maturity Date will be the third Business Day following the Final Valuation Date, as postponed. 
 “non-Trading Day” shall mean a day other than a Trading Day. 
 “NYSE” shall mean The New York Stock Exchange, Inc. 
 “Participation
Rate” shall be equal to 118.70%. 
 “Payment at Maturity”, as calculated by the Calculation Agent, shall equal a
cash payment per $10 principal amount Security equal to: 
 if the Basket Return is positive or zero, 
 $10 + [$10 × (Basket Return × Participation Rate)]; or 
 if the Basket return is less than zero but equal to or greater than -20%, 
 $10; or 

 if the Basket Return is less than -20%, 
 $10 + [$10 × (Basket Return + the Protection Percentage)]. 
 “Place of Payment” shall mean the place or places where the Payment at Maturity on the Securities is payable. 
 “Protection Percentage” equals 20%. 
 “Relevant Exchange” shall mean, for
any security (or any combination thereof) then included in any Basket Index or any Successor Index, the primary exchange, quotation system (which includes bulletin board services) or other market of trading for such security. 
 “Securities” shall have the meaning set forth on the reverse of this Security. 
 “Successor Index” shall mean an S&P 500® Index Successor Index, a Dow
Jones EURO STOXX 50® Index Successor Index and a Nikkei 225SM Index Successor Index, each as
specified under “Discontinuation of a Basket Index; Alteration of Method of Calculation” with respect to each Basket Index. 
 “Trade Date” shall mean July 26, 2007. 
 “Trading Day” means a day, as determined by the
Calculation Agent, on which trading is generally conducted on (i) the Relevant Exchanges for securities included in the Basket Indices (or the relevant Successor Indices) and (ii) the exchanges on which futures or options contracts related
to the Basket Indices are traded, other than a day on which trading is scheduled to close prior to its regular weekday closing time. 
 “Trustee” shall have the meaning set forth on the reverse of this Security. 
 All terms used but not defined in
this Security are used herein as defined in the Calculation Agency Agreement or the Indenture. 
 Calculation Agent 
 The Calculation Agent will determine, among other things, the Basket Ending Level, the Basket Return, the Index Return for each Basket Index, and the
Payment at Maturity, as well as whether the Basket Ending Level is equal to or greater than the Basket Starting Level. The Calculation Agent will also be responsible for determining whether a Market Disruption Event has occurred, whether any of the
Basket Indices has been discontinued, and whether there has been a material change in the method of calculation of any of the Basket Indices. All calculations, determinations and adjustments made by the Calculation Agent will be at the sole
discretion of the Calculation Agent and will, in the absence of manifest error, be conclusive for all purposes and binding on Holders and on the Company. The Company may appoint a different Calculation Agent from time to time after the date of the
original issue of the Securities without the Holders’ consent and without notifying Holders. 
 Discontinuation of a Basket Index; Alteration of
Method of Calculation 
 S&P 500® Index 
 If S&P discontinues publication of
the S&P 500® Index and S&P or another entity publishes a successor or substitute index that the Calculation Agent determines, in its sole discretion, to be comparable to the
discontinued S&P 500® Index (an “S&P 500® Index 

 
Successor Index”), then the Index Closing Level for such Basket Index will be determined by reference to the level of such S&P 500® Index Successor Index at the close of trading on the Relevant Exchange or market for the S&P 500® Index Successor Index on the
Final Valuation Date. Upon any selection by the Calculation Agent of an S&P 500® Index Successor Index, the Calculation Agent will cause written notice thereof to be promptly furnished
to the Trustee, to the Company and to the Holders. 
 If S&P discontinues publication of the S&P 500® Index prior to, and such discontinuation is continuing on, the Final Valuation Date, and the Calculation Agent determines, in its sole discretion, that no
S&P 500® Index Successor Index is available at such time, or the Calculation Agent has previously selected an S&P 500®
Index Successor Index and publication of such S&P 500® Index Successor Index is discontinued prior to, and such discontinuation is continuing on, the Final Valuation Date, or if S&P
(or the publisher of any S&P 500® Index Successor Index) fails to calculate and publish an Index Closing Level for the S&P 500® Index (or any S&P 500® Index Successor Index) on any date when it would ordinarily do so in
accordance with its customary practice, then the Calculation Agent will determine the Index Closing Level for such date. The Index Closing Level will be computed by the Calculation Agent in accordance with the formula for and method of calculating
the S&P 500® Index or S&P 500® Index Successor Index, as
applicable, last in effect prior to such discontinuation or failure to calculate or publish an Index Closing Level for the S&P 500® Index or S&P 500® Index Successor Index, as applicable, using the Closing Price (or, if trading in the relevant securities has been materially suspended or materially limited,
its good faith estimate of the Closing Price that would have prevailed but for such suspension or limitation) at the close of the principal trading session on such date of each security most recently composing the S&P 500® Index or S&P 500® Index Successor Index, as applicable.

 If at any time the method of calculating the S&P 500® Index or an S&P 500® Index Successor Index, or the level thereof, is changed in a material
respect, or if the S&P 500® Index or an S&P 500® Index
Successor Index is in any other way modified so that the S&P 500® Index or such S&P 500® Index Successor Index does not, in the opinion of the Calculation Agent, fairly represent the level of the S&P 500® Index or such S&P 500® Index Successor Index had such changes or modifications not been made, then the Calculation Agent will, at the close of business
in New York City on each date on which the S&P 500® Index Closing Level is to be determined, make such calculations and
adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of a stock index comparable to the S&P 500®
Index or such S&P 500® Index Successor Index, as the case may be, as if such changes or modifications had not been made, and the
Calculation Agent will calculate the Index Closing Level with reference to the S&P 500® Index or such S&P 500® Index Successor Index, as adjusted. Accordingly, if the method of calculating the S&P 500® Index or a Successor S&P 500® Index is modified so that the level of the S&P 500® 
Index or such S&P 500® Index Successor Index is a fraction of what it would have been if there had been no such modification (e.g.,
due to a split in the Index), then the Calculation Agent will adjust its calculation of the S&P 500® Index or such S&P
500® Index Successor Index in order to arrive at a level of the S&P 500® Index or such S&P 500® Index Successor Index as if there had been no such modification (e.g., as if such split had not occurred). 

 Dow Jones EURO STOXX 50®
Index 
 If STOXX Limited discontinues publication of the Dow Jones EURO STOXX 50® Index and STOXX Limited or another entity publishes a successor or substitute index that 

 
the Calculation Agent determines, in its sole discretion, to be comparable to the discontinued Dow Jones EURO STOXX 50® Index (a “Dow Jones EURO STOXX 50® Index Successor Index”), then the Index Closing Level for such Basket Index will be determined by reference to
the level of such Dow Jones EURO STOXX 50® Index Successor Index at the close of trading on the Relevant Exchange or market for the Dow Jones EURO STOXX 50® Index Successor Index on the Final Valuation Date. Upon any selection by the Calculation Agent of a Dow Jones EURO STOXX 50® Index Successor Index, the
Calculation Agent will cause written notice thereof to be promptly furnished to the Trustee, to the Company and to the Holders. 
 If STOXX
LIMITED discontinues publication of the Dow Jones EURO STOXX 50® Index prior to, and such discontinuation is continuing on, the Final Valuation Date, and the Calculation Agent determines,
in its sole discretion, that no Dow Jones EURO STOXX 50® Index Successor Index is available at such time, or the Calculation Agent has previously selected a Dow Jones EURO STOXX 50® Index Successor Index and publication of such Dow Jones EURO STOXX 50® Index Successor Index is discontinued prior to, and such
discontinuation is continuing on, the Final Valuation Date, or if STOXX LIMITED (or the publisher of any Dow Jones EURO STOXX 50® Index Successor Index) fails to calculate and publish an
Index Closing Level for the STOXX LIMITED EAFE Index (or any Dow Jones EURO STOXX 50® Index Successor Index) on any date when it would ordinarily do so in accordance with its customary
practice, then the Calculation Agent will determine the Index Closing Level for such date. The Index Closing Level will be computed by the Calculation Agent in accordance with the formula for and method of calculating the Dow Jones EURO STOXX
50® Index or Dow Jones EURO STOXX 50® Index Successor Index, as applicable, last in effect prior to such discontinuation or
failure to calculate or publish an Index Closing Level for the Dow Jones EURO STOXX 50® Index or Dow Jones EURO STOXX 50® Index
Successor Index, as applicable, using the Closing Price (or, if trading in the relevant securities has been materially suspended or materially limited, its good faith estimate of the Closing Price that would have prevailed but for such suspension or
limitation) at the close of the principal trading session on such date of each security most recently composing the Dow Jones EURO STOXX 50® Index or Dow Jones EURO STOXX 50® Index Successor Index, as applicable. 
 If at any time the method of calculating
the Dow Jones EURO STOXX 50® Index or a Dow Jones EURO STOXX 50® Index Successor Index, or the level thereof, is changed in a
material respect, or if the Dow Jones EURO STOXX 50® Index or a Dow Jones EURO STOXX 50® Index Successor Index is in any other
way modified so that the Dow Jones EURO STOXX 50® Index or such Dow Jones EURO STOXX 50® Index Successor Index does not, in the
opinion of the Calculation Agent, fairly represent the level of the Dow Jones EURO STOXX 50® Index or such Dow Jones EURO STOXX 50® Index Successor Index had such changes or modifications not been made, then the Calculation Agent will, at the close of business in New York City on each date on which the Index Closing Level is to be determined,
make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of a stock index comparable to the Dow Jones EURO STOXX 50® Index or such Dow Jones EURO STOXX 50® Index Successor Index, as the case may be, as if such changes or modifications had not been made, and the Calculation
Agent will calculate the Index Closing Level with reference to the Dow Jones EURO STOXX 50® Index or such Dow Jones EURO STOXX 50® Index Successor Index, as adjusted. Accordingly, if the method of calculating the Dow Jones EURO STOXX 50® Index or a Dow Jones EURO STOXX 50® Index Successor Index is modified so that the level of the Dow Jones EURO STOXX 50® Index or such Dow Jones EURO STOXX 50® Index Successor Index is a fraction of what it would have been if there had been no such modification (e.g., due to a split in the Index), then the Calculation Agent will adjust its
calculation of the Dow Jones EURO STOXX 50® Index or 

 
such Dow Jones EURO STOXX 50® Index Successor Index in order to arrive at a level of the Dow
Jones EURO STOXX 50® Index or such Dow Jones EURO STOXX 50® Index Successor Index as if there had been no such modification
(e.g., as if such split had not occurred). 
 Nikkei 225SM Index 
 If Nikkei Inc. discontinues
publication of the Nikkei 225SM Index and Nikkei Inc. or another entity publishes a successor or substitute index that the Calculation Agent determines, in
its sole discretion, to be comparable to the discontinued Nikkei 225SM Index (an “Nikkei 225SM Index Successor Index”), then the Index Closing Level for such Basket Index will be determined by reference to the level of such Nikkei 225SM Index Successor Index at the close of trading on the Relevant Exchange or market for the Nikkei 225SM Index Successor Index on the Final Valuation Date. Upon any selection by the Calculation Agent of a Nikkei 225SM Index
Successor Index, the Calculation Agent will cause written notice thereof to be promptly furnished to the Trustee, to the Company and to the Holders. 
 If Nikkei Inc. discontinues publication of the Nikkei 225SM Index prior to, and such discontinuation is continuing on, the Final Valuation Date, and the Calculation Agent determines, in its sole discretion, that no Nikkei 225SM Index Successor Index is available at such time, or the Calculation Agent has previously selected a Nikkei 225SM Index
Successor Index and publication of such Nikkei 225SM Index Successor Index is discontinued prior to, and such discontinuation is continuing on, the Final
Valuation Date, or if Nikkei Inc. (or the publisher of any Nikkei 225SM Index Successor Index) fails to calculate and publish an Index Closing Level for
the Nikkei 225SM Index (or any Nikkei 225SM Index Successor
Index) on any date when it would ordinarily do so in accordance with its customary practice, then the Calculation Agent will determine the Index Closing Level for such date. The Index Closing Level will be computed by the Calculation Agent in
accordance with the formula for and method of calculating the Nikkei 225SM Index or Nikkei 225SM Index Successor Index, as applicable, last in effect prior to such discontinuation or failure to calculate or publish an Index Closing Level for the Nikkei 225SM Index or Nikkei 225SM Index Successor Index, as applicable,
using the Closing Price (or, if trading in the relevant securities has been materially suspended or materially limited, its good faith estimate of the Closing Price that would have prevailed but for such suspension or limitation) at the close of the
principal trading session on such date of each security most recently composing the Nikkei 225SM Index or Nikkei 225SM Index Successor Index, as applicable. 
 If at any time the method of calculating the Nikkei 225SM
Index or a Nikkei 225SM Index Successor Index, or the level thereof, is changed in a material respect, or if the Nikkei 225SM Index or a Nikkei 225SM Index Successor Index is in any other way modified so that the
Nikkei 225SM Index or such Nikkei 225SM Index Successor Index
does not, in the opinion of the Calculation Agent, fairly represent the level of the Nikkei 225SM Index or such Nikkei 225SM Index Successor Index had such changes or modifications not been made, then the Calculation Agent will, at the close of business in New York City on each date on which the Index
Closing Level is to be determined, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of a stock index comparable to the Nikkei 225SM Index or such Nikkei 225SM Index Successor Index, as the case
may be, as if such changes or modifications had not been made, and the Calculation Agent will calculate the Index Closing Level with reference to the Nikkei 225SM Index or such Nikkei 225SM Index Successor Index, as adjusted. Accordingly, if the method of calculating the Nikkei 225SM Index or a Nikkei 225SM Index Successor Index is modified so
that the level of the Nikkei 225SM Index or such Nikkei 225SM
Index Successor Index is a fraction of what it would have been if 

 
there had been no such modification (e.g., due to a split in the Index), then the Calculation Agent will adjust its calculation of the Nikkei 225SM Index or such Nikkei 225SM Index Successor Index in order to
arrive at a level of the Nikkei 225SM Index or such Nikkei 225SM Index Successor Index as if there had been no such modification (e.g., as if such split had not occurred). 

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

							
	TEN COM -	    	as tenants in common	    	UNIF GIFT MIN ACT - _________ Custodian  _________
		    		    	                          (Cust)             
     (Minor)

	TEN ENT -	    	as tenants by the entireties	    	under Uniform Gifts to Minors
	JT TEN -	    	as joint tenants with right of	    	Act	  	  

		    	Survivorship and not as tenants in common	    		  	( State)

 Additional abbreviations may also be used though not in the above list. 
                                       
                   
 FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER 
 IDENTIFYING NUMBER OF ASSIGNEE 
  

			
	 	 	
	 	 	

  
  
  

	
	 

 (Name and Address of Assignee, including zip code, must be printed or typewritten.) 
  
  

	
	 

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

	
	 

 to transfer the 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 it appears
upon the face of the within Security in every particular, without alteration or enlargement or any change whatever. 
 Signature(s) Guaranteed: 

__________________________ 
 THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]