Document:

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Exhibit 4.1

FISCAL AND PAYING AGENCY AGREEMENT

Between

ASSOCIATED BANK, NATIONAL ASSOCIATION

and

THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Fiscal and Paying Agent

Dated as of September 30, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I APPOINTMENT
	 	 	1	 
	Section 1.1 Appointment of Fiscal and Paying Agent
	 	 	1	 
	ARTICLE II THE BANK NOTES
	 	 	1	 
	Section 2.1 Form of Bank Notes
	 	 	1	 
	Section 2.2 Certificates of Authorized Representatives of the Issuing Bank
	 	 	2	 
	Section 2.3 Completion, Authentication and Delivery
	 	 	2	 
	Section 2.4 Denominations
	 	 	3	 
	Section 2.5 Proceeds of Sale of the Bank Notes; Resignation by DTC
	 	 	4	 
	Section 2.6 Registration; Registration of Transfer and Exchange
	 	 	4	 
	Section 2.7 Persons Deemed Owners
	 	 	5	 
	Section 2.8 Cancellation of Unissued Bank Notes
	 	 	5	 
	Section 2.9 Mutilated, Lost, Stolen or Destroyed Bank Notes
	 	 	5	 
	Section 2.10 CUSIP Numbers
	 	 	5	 
	ARTICLE III THE FISCAL AND PAYING AGENT
	 	 	5	 
	Section 3.1 Payment of Bank Notes
	 	 	5	 
	Section 3.2 Information Regarding Amounts Payable
	 	 	6	 
	Section 3.3 Deposit of Funds
	 	 	6	 
	Section 3.4 Money for Bank Note Payments to Be Held in Trust
	 	 	6	 
	Section 3.5 Miscellaneous
	 	 	6	 
	ARTICLE IV CALCULATION OF INTEREST
	 	 	8	 
	Section 4.1 Calculation of Floating Interest
	 	 	8	 
	Section 4.2 Notice of Floating Rate Calculations
	 	 	8	 
	ARTICLE V LIABILITY AND INDEMNIFICATION
	 	 	8	 
	Section 5.1 Liability
	 	 	8	 
	Section 5.2 Indemnification
	 	 	9	 
	ARTICLE VI RESIGNATION OR REMOVAL OF FISCAL AND PAYING AGENT
	 	 	9	 
	Section 6.1 Resignation or Removal
	 	 	9	 
	Section 6.2 Successor Fiscal and Paying Agent
	 	 	9	 
	Section 6.3 Successor by Merger, etc
	 	 	10	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	ARTICLE VII MISCELLANEOUS
	 	 	10	 
	Section 7.1 Compensation of the Fiscal and Paying Agent
	 	 	10	 
	Section 7.2 Reliance on Opinions of Counsel
	 	 	10	 
	Section 7.3 Bank Notes Held by Fiscal and Paying Agent
	 	 	10	 
	Section 7.4 Notices
	 	 	11	 
	Section 7.5 Parties
	 	 	11	 
	Section 7.6 Governing Law
	 	 	11	 
	Section 7.7 Separability
	 	 	11	 
	Section 7.8 Effect of Headings
	 	 	11	 
	Section 7.9 Defined Terms
	 	 	11	 
	Section 7.10 Amendments, Modifications
	 	 	12	 
	Section 7.11 Laws of Other Jurisdictions
	 	 	12	 
	Section 7.12 Actions Due on Saturdays, Sundays and Holidays
	 	 	12	 
	Section 7.13 Agreement to Pay Attorneys’ Fees and Other Expenses
	 	 	12	 
	Section 7.14 Survival
	 	 	12	 
	Section 7.15 Force Majeure
	 	 	12	 
	Section 7.16 Remedies
	 	 	12	 
	Section 7.17 No Implied Waivers
	 	 	12	 
	Section 7.18 Counterparts
	 	 	13	 
	Section 7.19 Term
	 	 	13	 
	Section 7.20 Times
	 	 	13	 
	Section 7.21 Communications by Electronic Medium; Funds Transfer
	 	 	13	 

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          This Fiscal and Paying Agency Agreement dated as of September 30, 2005 between Associated
Bank, National Association (the “Issuing Bank”), and The Bank of New York Trust Company, N.A., a
national banking association (the “Fiscal and Paying Agent”). Capitalized terms not otherwise
defined below have the meaning set forth in the Bank Notes.

          WHEREAS the Issuing Bank proposes to issue and sell from time to time bank notes (the “Bank
Notes”) in an aggregate principal amount of up to $2,000,000,000;

          WHEREAS the Bank Notes will be issued as “Senior Bank Notes,” which rank equally with all
other unsecured and unsubordinated indebtedness of the Issuing Bank (other than deposits, to the
extent provided by federal law and any applicable state law, and other obligations that may be
subject to any statutory priorities or preferences), or as “Subordinated Bank Notes,” which will be
subordinated to all present and future claims of depositors and general creditors of the Issuing
Bank;

          WHEREAS the Bank Notes will be offered for sale by the Issuing Bank through Credit Suisse
First Boston LLC; Citigroup Global Markets Inc.; Goldman, Sachs & Co.; and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as agents for the Issuing Bank (the “Agents”) and may also be sold by
the Issuing Bank to such Agents as principal for resale to investors or directly by the Issuing
Bank to investors;

          WHEREAS the Issuing Bank has caused its Bank Notes to be delivered and designated an entity as
depository for the safekeeping of and as paying agent for the Issuing Bank’s Notes; and

          WHEREAS the Issuing Bank desires to appoint the Fiscal and Paying Agent as fiscal and paying
agent of the Issuing Bank with respect to the preparation, authentication, delivery, registration
and payment of the Bank Notes;

          NOW, THEREFORE, the parties hereto hereby agree as follows:

ARTICLE I

APPOINTMENT

          Section 1.1 Appointment of Fiscal and Paying Agent. The Fiscal and Paying Agent is
hereby appointed as fiscal and paying agent for the Bank Notes on the terms and conditions
specified in this Agreement, and the Fiscal and Paying Agent hereby accepts such appointment.

ARTICLE II

THE BANK NOTES

          Section 2.1 Form of Bank Notes. All Fixed Rate Notes issued by the Issuing Bank
having the same Original Issue Date, Interest Rate, Interest Payment Dates, Initial Redemption Date
(if any), Redemption Terms, and Stated Maturity will be represented by a single note certificate
and all Floating Rate Notes issued by the Issuing Bank having the same Original Issue Date, Initial
Interest Rate, Interest Rate Basis, Index Maturity, Spread (if any), Spread Multiplier (if any),
Minimum Interest Rate (if any), Maximum Interest Rate (if any),

 

 

Interest Reset Dates, Interest Rate Reset Period, Initial Redemption Date (if any), Redemption
Terms (if any), Interest Payment Dates, Interest Payment Period and Stated Maturity will be
represented by a single note certificate, each such note certificate hereinafter called a “Global
Note.” All Global Notes shall be registered in the name of The Depository Trust Company (“DTC”) or
a nominee of DTC, as depository (the “Depository”). All Global Notes representing Fixed Rate Notes
shall be in the form attached hereto as Exhibit A-1 (for Global Notes with maturities of 7 days to
1 year (“Short-Term Notes”)) or A-2 (for Global Notes with maturities of 1 year or more
(“Medium-Term Notes”)), and all Global Notes representing Floating Rate Notes shall be in the form
attached hereto as Exhibit B-1 and Exhibit B-2. Beneficial interests in Global Notes will be
shown on, and transfers thereof will be effected only through, records maintained by DTC and its
participants.

          Section 2.2 Certificates of Authorized Representatives of the Issuing Bank. From time
to time, the Issuing Bank shall furnish the Fiscal and Paying Agent with a certificate in the form
attached hereto as Exhibit C certifying the incumbency and specimen signatures of representatives
of the Issuing Bank regarding the completion and delivery of the Bank Notes (each an “Authorized
Representative”). Until five Business Days after the Fiscal and Paying Agent receives a subsequent
incumbency certificate from the Issuing Bank, the Fiscal and Paying Agent shall be entitled to
conclusively rely on the last such certificate delivered to it for purposes of determining the
Authorized Representatives and acting pursuant to their instruction. The Fiscal and Paying Agent
shall have no responsibility to the Issuing Bank to determine whether a signature of an Authorized
Representative is genuine or if such signature resembles the specimen signature of such Authorized
Representative on such certificate.

          Section 2.3 Completion, Authentication and Delivery.

          (a) All Global Notes shall be issued and delivered in accordance with this Agreement, the
Global Notes, the Letters of Representations from the Issuing Bank and the Fiscal and Paying Agent
to DTC dated on or before the date hereof (the “Additional Agreements”), and to the extent not
inconsistent therewith or herewith, the administrative procedure attached hereto as Exhibit D.
However, in the event of a conflict, the terms of the Global Notes shall govern. All instructions
regarding the completion and delivery of Global Notes shall be given by an Authorized
Representative by telecopy, or other means in writing acceptable to the Fiscal and Paying Agent.
Upon receipt of instructions as described in the preceding sentence, the Fiscal and Paying Agent
shall:

               (i) authenticate a Global Note or Notes representing one or more Bank Notes, in accordance
with such instructions;

               (ii) manually countersign and authenticate such Global Note or Notes by any one of the
officers or employees of the Fiscal and Paying Agent duly authorized and designated by it for such
purpose; and

               (iii) deliver such Global Note to DTC or pursuant to DTC’s instructions.

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          (b) If any Global Note has been authenticated by one of the Fiscal and Paying Agent’s officers
who was duly authorized for such purpose but who is not so designated at the time said Global Note
is to be paid, the Fiscal and Paying Agent is authorized and will pay the Global Note
notwithstanding that the authority of said officer has been terminated between the time of
execution and the time of payment.

          (c) If any Global Note has been executed by one of the Issuing Bank’s officers who was duly
authorized for such purpose but who is not so designated at the time said Global Note is to be
paid, the Fiscal and Paying Agent is authorized and will pay the Global Note notwithstanding that
the authority of said officer has been terminated between the time of execution and the time of
payment.

          (d) In the event a discrepancy exists between the instructions as originally received by the
Fiscal and Paying Agent and any subsequent written confirmation thereof, such original instructions
will be deemed controlling, provided that the Fiscal and Paying Agent gives written notice to the
Issuing Bank of such discrepancy promptly upon the receipt of such written confirmation identifying
such discrepancy.

          (e) The Fiscal and Paying Agent at any time may consult with its counsel (which includes
in-house counsel) concerning its duties hereunder and it shall be free to act in good faith in
reliance upon the advice of such counsel and shall be relieved of any liability under this
Agreement in so acting.

          (f) All instructions must be received by the Fiscal and Paying Agent by 11 a.m., New York
time, on the second Business Day preceding the Original Issue Date. For purposes hereof, the term
“Business Day” shall mean any day that is not a Saturday or Sunday and that, in The City of New
York is not a day on which banking institutions or trust companies are generally authorized or
obligated by law or executive order to close.

          (g) The Fiscal and Paying Agent shall incur no liability to the Issuing Bank and may
conclusively rely, in acting hereunder upon instructions contemplated hereby which the recipient
thereof believed in good faith to have been given by an Authorized Representative.

          (h) Each instruction given to the Fiscal and Paying Agent in accordance with this Section 2.3
shall constitute a representation and warranty to the Fiscal and Paying Agent by the Issuing Bank
that the issuance and delivery of the Bank Note or Bank Notes to which the instruction relates have
been duly and validly authorized by the Issuing Bank, that such Bank Note or Bank Notes when
completed, countersigned, authenticated and delivered pursuant hereto, will constitute valid and
legally binding obligations of the Issuing Bank, and that the Fiscal and Paying Agent’s appointment
to act for the Issuing Bank hereunder has been duly authorized by all necessary corporate action of
the Issuing Bank.

          Section 2.4 Denominations. Except as provided in Section 2.5(b), the Bank Notes shall
be issuable only in book-entry form, without coupons. Bank Notes will be issuable in denominations
of $250,000 and integral multiples of $1,000 in excess thereof.

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          Section 2.5 Proceeds of Sale of the Bank Notes; Resignation by DTC.

          (a) Funds received in payment for Bank Notes issued by the Issuing Bank shall be credited to
an account of the Issuing Bank, as instructed in writing by the Issuing Bank.

          If at any time (i) DTC notifies the Issuing Bank that it is unwilling or unable to continue as
Depository for the Bank Notes or if DTC ceases to be a clearing agency registered under the
Securities Exchange Act of 1934, as amended, and a successor depository is not appointed by the
Issuing Bank within ninety days after the effective date of DTC’s ceasing to act as depository for
the Bank Notes or (ii) the Issuing Bank, at its option, notifies the Fiscal and Paying Agent in
writing that it elects to cause the issuance of Bank Notes in definitive form, the Issuing Bank
will execute and the Fiscal and Paying Agent will, upon the execution of the then standard form of
the Fiscal and Paying Agent’s agreement for certificated securities, if any, and upon receipt of
instructions in writing from the Issuing Bank, authenticate and deliver Bank Notes of like tenor
and terms in definitive form in an aggregate principal amount equal to the principal amount of the
Global Notes then outstanding in exchange for such Global Notes. Any such certificated Bank Notes
will be issued in fully registered form to the persons designated by DTC as the beneficial owners
thereof, without coupons, in denominations of $250,000 or any amount in excess thereof which is an
integral multiple of $1,000.

          Section 2.6 Registration; Registration of Transfer and Exchange. The Fiscal and
Paying Agent shall, so long as any of the Bank Notes remain outstanding, maintain all records as
may be customary, including all forms of transfer for the Global Notes as provided to it and shall:

          (a) Keep at its Corporate Trust Office at 101 Barclay Street, Floor 21W, New York, NY 10286,
Attn: Corporate Trust Administration (the “Corporate Trust Office”), registers (the “Note
Registers”) in such form as the Fiscal and Paying Agent may determine, in which, subject to such
reasonable regulations as it may prescribe, it shall provide for the registration of the Bank Notes
and of transfers thereof.

          (b) Maintain records showing for each outstanding Bank Note the principal amount, maturity
date, interest rate or Interest Rate Basis and other terms thereof; the date of original issue and
all subsequent transfers and consolidations or exchanges; provided that the Fiscal and Paying Agent
shall have no responsibility or liability for any aspect of the records relating to or payments
made on account of beneficial ownership interests in a Global Note or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests, and it shall be fully
protected in acting or refraining from acting on any such information provided by DTC.

          (c) Provide that all Bank Notes presented for transfer shall be endorsed or be accompanied by
a written instrument of transfer.

          (d) Provide that each Bank Note shall bear an Original Issue Date which shall remain the same
for all Bank Notes subsequently issued upon transfer, exchange or substitution of such original
Bank Note regardless of the date of issuance of any such subsequently issued Bank Note; provided
that the Interest Accrual Date for a Bank Note issued subsequently upon

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exchange of a Bank Note or in lieu of a destroyed, lost or stolen Bank Note shall be the most
recent Interest Payment Date to which interest has been paid or duly provided for on the
predecessor Bank Note. The Fiscal and Paying Agent shall not be required to register the transfer
of or exchange any Bank Note during the period of 15 days preceding any Interest Payment Date, date
of redemption, date of repayment or Stated Maturity. In addition, the Fiscal and Paying Agent
shall not be required (i) to register the transfer of or to exchange any Bank Notes for a period of
15 days immediately preceding any date fixed for selection of Bank Notes to be redeemed or (ii) to
register the transfer of or to exchange any Bank Notes selected for redemption, except the
unredeemed portion of any Bank Note redeemed in part.

          Section 2.7 Persons Deemed Owners. Prior to due presentment of a Bank Note for
registration or transfer, the Issuing Bank and the Fiscal and Paying Agent and any other agent of
the Issuing Bank or the Fiscal and Paying Agent may treat the person in whose name such Bank Note
is registered as the owner of the Bank Note for the purpose of receiving payments of principal and
interest, if any, and neither all other purposes whatsoever, whether or not such Bank Note be
overdue, and neither of such Issuing Bank’s agent or the Fiscal and Paying Agent or any agents
thereof shall be affected by notice to the contrary.

          Section 2.8 Cancellation of Unissued Bank Notes. Promptly upon the written request of
the Issuing Bank; the Fiscal and Paying Agent shall cancel and return to the Issuing Bank all
unissued Bank Notes so requested in its possession.

          Section 2.9 Mutilated, Lost, Stolen or Destroyed Bank Notes. The Fiscal and Paying
Agent shall cooperate in the replacement of mutilated, lost, stolen or destroyed Bank Notes in
accordance with the custom and usage of the financial industry.

          Section 2.10 CUSIP Numbers. The Issuing Bank in issuing the Securities may use
“CUSIP” numbers (if then generally in use), and, if so, the Fiscal and Paying Agent shall use
“CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness of such numbers either
as printed on the Bank Notes or as contained in any notice of a redemption and that reliance may be
placed only on the other identification numbers printed on the Bank Notes, and any such redemption
shall be not affected by any defect in or omission of such numbers. The Issuing Bank will promptly
notify the Fiscal and Paying Agent of any change in the “CUSIP” numbers.

ARTICLE III

THE FISCAL AND PAYING AGENT

          Section 3.1 Payment of Bank Notes. Payment of principal, premium (if any) and
interest on the Bank Notes shall be made by the Fiscal and Paying Agent to DTC or a nominee of DTC
(the “Registered Holder”) of the Bank Notes in the manner and on the dates specified in the Bank
Notes from immediately available funds deposited by the Issuing Bank with the Fiscal and Paying
Agent for such payments as provided in Section 3.3. The Fiscal and Paying Agent shall have no
obligation to use its own funds or otherwise incur any financial liability for any such payment or
for any other purpose pursuant to this Agreement.

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          Section 3.2 Information Regarding Amounts Payable. The Fiscal and Paying Agent shall,
as soon as practicable after each Record Date for the payment of interest (other than interest
payable at maturity) on any Bank Note notify the Issuing Bank of the interest to be paid on such
Bank Note on the related Interest Payment Date. In addition, the Fiscal and Paying Agent shall (i)
on or about the first Business Day of each month furnish to the Issuing Bank a list showing for
each Bank Note which matures in the next succeeding month the principal and interest payable at
maturity of such Bank Note (other than the interest on any Floating Rate Note with an interest rate
which resets after such date of delivery) and (ii) notify the Issuing Bank of the interest payable
at maturity of any such Floating Rate Note as soon as practicable after the final Interest
Determination Date (as defined in such Bank Note) for such Floating Rate Note.

          Section 3.3 Deposit of Funds. Each Issuing Bank shall deposit or cause to be
deposited by 9:30 a.m., New York time, with the Fiscal and Paying Agent (i) on each Interest
Payment Date of a Bank Note an amount in immediately available funds sufficient to pay the interest
due on such date and (ii) on the Maturity Date or Redemption Date (if any) of each such Bank Note
(as such terms are defined in such Bank Note) an amount in immediately available funds sufficient
to pay the principal of such Bank Note, the premium due thereon (if any) and the interest accrued
thereon to such Maturity Date or Redemption Date (if any). The Issuing Bank will make such payment
on such Bank Notes by instructing the Fiscal and Paying Agent in writing to withdraw funds from an
account maintained by the Issuing Bank at the Fiscal and Paying Agent.

          Section 3.4 Money for Bank Note Payments to Be Held in Trust.

          (a) Subject to the provisions of subsection (b) of this Section 3.4, all money deposited with
the Fiscal and Paying Agent pursuant to Section 3.3 shall be held by it in trust for the benefit of
the person or persons entitled thereto until such money is paid to such person or persons in
accordance with the provisions of the Bank Notes and this Agreement or otherwise disposed of as
provided herein but such money need not be segregated from other funds except to the extent
required by law.

          (b) Any money deposited with the Fiscal and Paying Agent for the payment of the principal of,
premium (if any) or interest on any Bank Note that remains unclaimed for two years after such
principal, premium (if any) or interest has become due and payable shall be paid to the Issuing
Bank and the Registered Holder shall thereafter, as an unsecured general creditor, look only to the
Issuing Bank for payment thereof, and all liability of the Fiscal and Paying Agent with respect to
such money shall thereupon cease.

          Section 3.5 Miscellaneous. Notwithstanding anything to the contrary herein,

          (a) in paying Bank Notes hereunder, the Fiscal and Paying Agent shall be acting as a conduit
and shall not be paying Bank Notes for its own account, and in the absence of written notice from
the Issuing Bank, the Fiscal and Paying Agent shall be entitled to assume that any such Bank Note
presented to it, or deemed presented to it, for payment, is entitled to be so paid;

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          (b) the Fiscal and Paying Agent may become a purchaser, holder, transferor or may otherwise
own, hold or transfer any beneficial interest in any Bank Notes and may commence or join in any
action which a beneficial owner of a Bank Note is entitled to take without any conflict with its
responsibilities pursuant to this Agreement;

          (c) the Fiscal and Paying Agent shall not be required to invest any moneys delivered to it
pursuant to this Agreement;

          (d) the Fiscal and Paying Agent shall have no liability for interest on any moneys received or
held by it hereunder;

          (e) the Fiscal and Paying Agent shall not be responsible for the correctness of any recital
herein or in the Bank Notes or in any offering materials and makes no representations as to the
validity of the Bank Notes and shall incur no responsibility in respect thereto;

          (f) the Fiscal and Paying Agent shall be fully protected in acting upon any notice, order,
requisition, request, consent, certificate, order, opinion (including an opinion of counsel),
affidavit, letter, telegram or other paper or document whether in its original or facsimile form in
good faith deemed by it to be genuine and correct and to have been signed or sent by the proper
person or persons;

          (g) any action taken by the Fiscal and Paying Agent pursuant to this Agreement or the
Additional Agreements upon the request or authority or consent of any person who at the time of
making such request or giving such authority or consent is the Registered Holder of any Bank Note
shall be conclusive and binding upon all future Registered Holders of the same Bank Note and all
Bank Notes issued in exchange therefor or in place thereof;

          (h) no provision of this Agreement shall require the Fiscal and Paying Agent to expend or risk
its own funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers;

          (i) the Fiscal and Paying Agent may consult with counsel of its selection and the advice of
such counsel or any opinion of counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;

          (j) the Fiscal and Paying Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement at the request or direction of any of the Holders pursuant to
this Agreement, unless such Holders shall have offered to the Fiscal and Paying Agent security or
indemnity satisfactory to the Fiscal and Paying Agent against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction;

          (k) the Fiscal and Paying Agent shall not be liable for any action taken, suffered, or omitted
to be taken by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Agreement; and

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          (l) in no event shall the Fiscal and Paying Agent be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or
indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Fiscal and Paying Agent
shall use reasonable efforts which are consistent with accepted practices in the banking industry
to resume performance as soon as practicable under the circumstances.

ARTICLE IV

CALCULATION OF INTEREST

          Section 4.1 Calculation of Floating Interest. The Fiscal and Paying Agent is hereby
designated as calculation agent (in such capacity, the “Calculation Agent”) for the purpose of
calculating the Commercial Paper Rate, the Fed Funds Rate, the Prime Rate, LIBOR, the Treasury
Rate, the CD Rate and the CMT Rate all in accordance with the terms of the Floating Rate Notes.
Such duties shall be “Additional Responsibilities” as defined in Section 3.5 hereof.

          Section 4.2 Notice of Floating Rate Calculations. As promptly as practicable after
each Interest Determination Date for a Floating Rate Note, the Calculation Agent will notify the
Issuing Bank if it has outstanding Floating Rate Notes of the interest rate which will become
effective on the next Interest Reset Date and shall provide the Issuing Bank with the calculations
used to determine such rate. Upon the written request of the Registered Holder of a Floating Rate
Note, the Calculation Agent will provide to such Registered Holder the interest rate then in effect
and, if determined, the interest rate which will become effective on the next Interest Reset Date
with respect to such Floating Rate Note.

ARTICLE V

LIABILITY AND INDEMNIFICATION

          Section 5.1 Liability. The Fiscal and Paying Agent’s duties are ministerial in nature
and the Fiscal and Paying Agent shall not have any liability hereunder except in the case of its
own gross negligence or willful misconduct. IN NO EVENT SHALL THE FISCAL AND PAYING AGENT BE
LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, EVEN IF THE FISCAL
AND PAYING AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF LIABILITY
WILL APPLY REGARDLESS OF THE FORM OF ACTION, INCLUDING WITHOUT LIMITATION, BREACH OF THIS CONTRACT
OR TORT (INCLUDING NEGLIGENCE). The duties and obligations of the Fiscal and Paying Agent shall be
determined by the express provisions of this Agreement and it shall not be liable except for the
performance of such duties and obligations as are specifically set forth herein and no implied
covenants or obligations shall be read into this Agreement against it. The Fiscal and Paying Agent
shall have no responsibility in the case of any default by the Issuing Bank in the performance of
the covenants contained in the Bank Notes. The Fiscal and Paying Agent may refuse to perform any
duty or exercise any right or power hereunder unless it receives indemnity reasonably satisfactory
to it against any related loss, liability claim, damage or expense. The Fiscal and

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Paying Agent shall not be required to ascertain whether any issuance or sale of Bank Notes (or
any amendment or termination of this Agreement) has been duly authorized or is in compliance with
any other agreement to which the Issuing Bank is a party (whether or not the Fiscal and Paying
Agent is also a party to such other agreements). Notwithstanding anything to the contrary herein,
the Fiscal and Paying Agent shall not be responsible for any misconduct or negligence on the part
of any agent, correspondent, attorney or receiver appointed with due care by it hereunder. The
Fiscal and Paying Agent shall have no liability whatsoever to any person or entity if any Agent
fails to pay the Issuing Bank, in whole or in part, for any Bank Note purchased by or through such
Agent.

          Section 5.2 Indemnification. The Issuing Bank agrees to fully indemnify and hold
harmless the Fiscal and Paying Agent and any predecessor Fiscal and Paying Agent, its officers,
directors, employees and agents from and against all losses, liabilities, obligations, claims,
damages, costs and expenses of any kind or nature whatsoever (including, without limitation,
reasonable legal fees and expenses) relating to or arising out of its performance of the Fiscal and
Paying Agent’s duties under this Agreement, except to the extent they are caused by the gross
negligence or willful misconduct of the Fiscal and Paying Agent or its officers, directors or
employees. In the event of the resignation or removal of the Fiscal and Paying Agent, any
successor to the performance of the obligations of the Fiscal and Paying Agent as specified in this
Agreement shall be entitled to rely upon this indemnity and neither said successor shall be
entitled to a separate indemnity from the Fiscal and Paying Agent. These indemnification
obligations shall survive the termination of this Agreement and shall survive the resignation or
removal of the Fiscal and Paying Agent while remaining applicable to any action taken or omitted by
the Fiscal and Paying Agent while acting pursuant to this Agreement and/or the Additional
Agreements.

ARTICLE VI

RESIGNATION OR REMOVAL OF FISCAL AND PAYING AGENT

          Section 6.1 Resignation or Removal. The Fiscal and Paying Agent may at any time
resign from its duties hereunder by giving written notice of resignation to the Issuing Bank
specifying the date on which such resignation shall become effective; provided, however, that such
date shall not be less than ten Business Days after such notice is given to the Issuing Bank. The
Issuing Bank may at any time terminate this Agreement by giving written notice of such termination
to the Fiscal and Paying Agent specifying the date on which such termination shall be effective;
provided, however, that such date shall be not less than ten Business Days after such notice is
given to the Fiscal and Paying Agent. Any termination or resignation hereunder shall not affect
the Fiscal and Paying Agent’s right to the payment of fees earned or charges incurred (including
counsel fees and expenses) through the effective date of such termination or resignation, as the
case may be or for any other amounts owed to it hereunder.

          Section 6.2 Successor Fiscal and Paying Agent. Upon the effective date of such
resignation or termination, the Fiscal and Paying Agent shall deliver any money then held by it
pursuant to Section 3.4(a) to the successor appointed by the Issuing Bank to serve as Fiscal and
Paying Agent for the Bank Notes and all liability of the predecessor Fiscal and Paying Agent with
respect to such money shall thereupon cease. If an instrument of acceptance by a successor Fiscal
and Paying Agent shall not have been delivered to the Fiscal and Paying Agent within 30

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days after the giving of such notice of resignation, the resigning Fiscal and Paying Agent may
petition, at the expense of the Issuing Bank, any court of competent jurisdiction for the
appointment of a successor Fiscal and Paying Agent with respect to the Bank Notes of such series.
The Fiscal and Paying Agent shall also provide such successor with a copy of its records relating
to the Bank Notes as such successor shall reasonably request. However, the Fiscal and Paying Agent
shall not be required to deliver such materials to any location outside the United States of
America and may retain copies of any records turned over for archival purposes. If such successor
has not been appointed by the effective date of such resignation or termination, the Fiscal and
Paying Agent shall pay such money and deliver such records to the issuing Bank with the same effect
as though such payment were made pursuant to Section 3.4(b). The delivery, transfer and assignment
of such moneys and records by the Fiscal and Paying Agent to its successor or the Issuing Bank, as
the case may be, shall be sufficient, without the requirement of any additional act or the
requirement of any indemnity to be given by the Fiscal and Paying Agent, to relieve the Fiscal and
Paying Agent of all further responsibility for the exercise of the rights or the performance of the
obligations vested in the Fiscal and Paying Agent pursuant to this Agreement.

          Section 6.3 Successor by Merger, etc. Any corporation or association into which the
Fiscal and Paying Agent may be converted or merged, or with which it may be consolidated, or to
which it may sell or transfer its corporate trust business as a whole or substantially as a whole,
or any corporation or association resulting from any such conversion, sale, merger, consolidation
or transfer, shall be and become successor Fiscal and Paying Agent (including performing the duties
of Calculation Agent) hereunder, shall assume all of the obligations hereunder of the predecessor
Fiscal and Paying Agent and shall be invested with all of the rights, powers, trusts, duties and
obligations of the Fiscal and Paying Agent hereunder, without the execution or filing of any
instrument or any further act. The Fiscal and Paying Agent shall provide notice to the Issuing
Bank of any such conversion, merger, consolidation, sale or transfer as soon as practicable after
the Fiscal and Paying Agent obtains knowledge that such event will occur or has occurred.

ARTICLE VII

MISCELLANEOUS

          Section 7.1 Compensation of the Fiscal and Paying Agent. The Issuing Bank agrees to
pay the Fiscal and Paying Agent compensation for all services rendered by the Fiscal and Paying
Agent hereunder to the Issuing Bank in such amounts and payable at such times as the Issuing Bank
and the Fiscal and Paying Agent may agree to from time to time in writing and to promptly reimburse
the Fiscal and Paying Agent for all out-of-pocket expenses (including counsel fees and expenses),
and disbursements incurred by the Fiscal and Paying Agent in the performance of its duties
hereunder and under the Additional Agreements. The obligation of the Issuing Bank pursuant to this
Section 7.1 shall survive the termination of this Agreement, including any termination pursuant to
any federal or state bankruptcy law, to the extent enforceable under applicable law.

          Section 7.2 Reliance on Opinions of Counsel. The Fiscal and Paying Agent shall have
no liability to the Issuing Bank in respect of an action taken or omitted by the Fiscal

-10-

 

and Paying Agent in good faith in reliance on any advice or opinion of its counsel, including
in-house counsel.

          Section 7.3 Bank Notes Held by Fiscal and Paying Agent. The Fiscal and Paying Agent,
in its individual or other capacity, may become the owner or pledgee of Bank Notes with the same
rights it would have if it were not acting as Fiscal and Paying Agent hereunder.

          Section 7.4 Notices. Notices and other communications hereunder shall (except to the
extent otherwise expressly provided) be in writing (which may be by facsimile) and shall be
addressed as follows, or to such other addresses as the parties hereto shall specify from time to
time.

          If to the Issuing Bank:

Associated Bank, National Association

1200 Hansen Road

Green Bay, WI 54304

Attention: Corporate Counsel

Facsimile: 920 491-7010

          If to the Fiscal and Paying Agent:

The Bank of New York Trust Company, N.A.

c/o BNY Midwest Trust Company

2 North LaSalle Street

Suite 1020

Chicago, IL 60602

Attention: Corporate Trust Administration

Facsimile: 312 827-8542

All notices shall be deemed given when received

          Section 7.5 Parties. Except for rights arising under Section 3.4(a), this Agreement
is solely for the benefit of the parties hereto and their successors and assigns and nothing
herein, express or implied, shall give to any other person including, without limitation, any
direct or beneficial owner of Bank Notes, any benefits or any legal or equitable right, remedy or
claim under this Agreement.

          Section 7.6 Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

          Section 7.7 Separability. In case any provision in this Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

-11-

 

          Section 7.8 Effect of Headings. The table of contents and the article and section
headings herein are for convenience of reference only and shall not affect the construction hereof.

          Section 7.9 Defined Terms. Terms defined in the administrative procedures attached
hereto as Exhibit D and used herein are as therein defined unless otherwise defined herein or in
the Bank Notes.

          Section 7.10 Amendments, Modifications. No amendment or modification of any provision
of this Agreement or any Additional Agreement shall be effective unless the same shall be in
writing and signed by all the parties hereto or thereto as applicable. Any such amendment or
modification shall be effective only in the specific instance and for the purpose for which given.

          Section 7.11 Laws of Other Jurisdictions. The Fiscal and Paying Agent shall be under
no obligation to keep itself apprised of or comply with any laws other than the laws of the State
of New York and the United States. To the extent that the Issuing Bank requires that the laws of
any other jurisdiction be complied with, the Fiscal and Paying Agent shall be entitled to
conclusively rely on, and in so relying shall be held harmless by, the Issuing Bank as to the
requirements of such laws and shall not be required to make any independent investigation of such
laws or their requirements.

          Section 7.12 Actions Due on Saturdays, Sundays and Holidays. If any date on which a
payment, notice or other action required by this Agreement or any Additional Agreement falls on
other than a Business Day, then that action or payment need not be taken or made on such date, but
may be taken or made on the next succeeding Business Day on which the Fiscal and Paying Agent is
open for business with the same force and effect as if made on such date.

          Section 7.13 Agreement to Pay Attorneys’ Fees and Other Expenses. In the event the
Issuing Bank shall default under any of the provisions of this Agreement and/or any Additional
Agreement affecting the rights or duties of the Fiscal and Paying Agent and the Fiscal and Paying
Agent shall employ attorneys or incur other expenses for the enforcement of performance or
observance of any such obligation or agreement, the Issuing Bank agrees that it will on demand
therefor pay to the Fiscal and Paying Agent the reasonable fees and expenses of such attorneys and
such other reasonable expenses incurred by the Fiscal and Paying Agent.

          Section 7.14 Survival. The Fiscal and Paying Agent’s rights to compensation,
reimbursement and indemnification shall survive the termination of this Agreement and any
Additional Agreements.

          Section 7.15 Force Majeure. The Fiscal and Paying Agent shall not be liable for any
failure or delays arising out of conditions beyond its reasonable control including, but not
limited to work stoppages, fires, civil disobedience, riots, rebellions, storms, electrical,
mechanical, computer or communications facilities failures, acts of God and similar occurrences.

          Section 7.16 Remedies. Unless otherwise specified herein, in the event that either
party breaches or violates any of the obligations contained in this Agreement, the other

-12-

 

party shall be entitled to exercise any right and seek any remedy available to it either at
law or in equity, including without limitation, damages and injunctive relief; the exercise of any
right or the seeking of any remedy shall not preclude the concurrent or subsequent exercise of any
other right or the seeking of any other remedy, and all rights and remedies shall be cumulative.

          Section 7.17 No Implied Waivers. The right of any party under any provision of this
Agreement shall not be affected by its prior failure to require the performance by any other party
under such provision or any other provision of this Agreement, nor shall the waiver by any party of
a breach of any provision hereof constitute a waiver of any succeeding breach of the same or any
other provision or constitute a waiver of the provision itself or any other provision.

          Section 7.18 Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original but both or all of which, when taken together, shall constitute
but one instrument, and shall become effective when copies hereof which, when taken together, bear
the signatures of each of the parties hereto, shall be delivered to each of the parties hereto.

          Section 7.19 Term. This Agreement shall remain in full force and effect until the
earlier to occur of (i) such time as the principal of and premium, if any, and interest on all the
Bank Notes shall have been paid, (ii) the effective date of the resignation or termination of the
Fiscal and Paying Agent, and (iii) the effective date of DTC’s resignation if the Issuing Bank
appoints no successor depository.

          Section 7.20 Times. All times referred to herein shall be the time in effect in New
York, New York.

          Section 7.21 Communications by Electronic Medium; Funds Transfer. The parties have
instituted a computer linkup through which the Issuing Bank may give the Fiscal and Paying Agent
instructions in connection with this Agreement. The parties’ computers shall be linked via a
telephone line. The Issuing Bank will gain access to the computer linkup by using the telephone
number associated with such telephone line. The Fiscal and Paying Agent shall exercise due care to
preserve the confidentiality of such telephone number and the other security procedures it utilizes
in connection with the computer linkup to prevent the use of such computer linkup by unauthorized
persons (and in this connection it is understood and agreed that the implementation by the Fiscal
and Paying Agent of its normal procedures for maintaining the confidentiality of information
relating to its customers shall constitute fulfillment of its obligation to exercise due care) but
shall not otherwise be under any liability or have any responsibility of any kind for any loss
incurred or damage suffered by the Issuing Bank by reason or in consequence of any unauthorized
person gaining access to or otherwise making use of the computer linkup.

          (a) The Issuing Bank shall safeguard the telephone number for the computer linkup and shall
distribute it only to authorized personnel. The Fiscal and Paying Agent shall not be liable for
any loss to the Issuing Bank arising from the Issuing Bank’s failure to safeguard the telephone
number. All communications from the Issuing Bank to the Fiscal and Paying Agent must be preceded
by a telephone call from an Authorized Representative. The Issuing Bank

-13-

 

agrees that the
transmission of an instruction via the computer linkup shall be equivalent to the giving of a duly
authorized written and signed instruction which the Fiscal and Paying Agent may act upon. Any
instruction received by the Fiscal and Paying Agent via the computer linkup will be deemed to be an
instruction of the Issuing Bank and the Issuing Bank shall be obligated therefor. The Issuing Bank
agrees that the Fiscal and Paying Agent’s security procedures described herein meet its needs and
are commercially reasonable. The Fiscal and Paying Agent may vary such security procedures from
time to time, after giving notice thereof to the Issuing Bank.

          (b) Should the Fiscal and Paying Agent be required in the performance of the Agreement to make
any funds transfer (as that term is defined in Article 4A of the Uniform Commercial Code as in
effect in New York (“Article 4A”)) for or at the request of the Issuing Bank, the following shall
apply:

               (i) Other than to verify an instruction to transfer funds (a “payment order”) received by the
Issuing Bank pursuant to the Fiscal and Paying Agent’s security procedures, the Fiscal and Paying
Agent shall not be responsible for investigating any errors or inconsistencies in any payment
order.

               (ii) If by reason of the use of an identifying number provided to the Fiscal and Paying Agent
by the Issuing Bank, a party other than the beneficiary of the Issuing Bank’s payment order is paid
or funds are transferred to a bank other than the one intended by the Issuing Bank to receive such
payment order, either as the beneficiary’s bank or an intermediary bank to be used in connection
with such transfer, the Issuing Bank shall remain liable to pay such payment order so long as the
Fiscal and Paying Agent shall have properly transmitted the identifying number provided.

               (iii) The Issuing Bank shall promptly notify the Fiscal and Paying Agent of any discrepancies,
unauthorized or erroneous transactions or other errors relating to any payment orders once such
payment orders have been confirmed to the Issuing Bank by the Fiscal and Paying Agent.

               (iv) The Issuing Bank may issue instructions to the Fiscal and Paying Agent to cancel or amend
any payment order issued pursuant to this Agreement. The Fiscal and
Paying Agent agrees to act upon such instructions so long as (x) the Fiscal and Paying Agent
has received such instructions prior to the execution of such payment order and in sufficient time
to permit it to take the action called for and (y) the authenticity of such instructions to amend
or cancel is verified pursuant to the security procedures. The Fiscal and Paying Agent reserves
the right at any time, and from time to time, when requested to amend a payment order, to cancel
such payment order and to require the Issuing Bank to submit a new payment order to the Fiscal and
Paying Agent. Should any cancellation or amendment of a payment order be received by the Fiscal
and Paying Agent after the execution of such order, the Fiscal and Paying Agent shall take such
reasonable steps as are available to it to amend, recall, reverse or revoke such payment order, but
it shall not be liable for any failure to achieve the amendment, recall, reversal or revocation
thereof. Should the Fiscal and Paying Agent elect to cancel or amend a payment order, it may
require an indemnity and bond or security acceptable to it.

-14-

 

               (v) If any payment order is transmitted through any funds transfer system, including, but not
limited to, the Clearing House Interbank Payment System (“CHIPS”) or the Automated Clearing House
System (the “ACH system”), the Issuing Bank shall be subject to the rules of such funds transfer
system in effect at the time such transfer is made. If the Issuing Bank receives any credit
entries through the ACH system, such credit may be reversed by the Fiscal and Paying Agent if final
settlement does not occur.

               (vi) Should the Fiscal and Paying Agent be negligent or engage in willful misconduct and be
required to pay the Issuing Bank interest in connection with a payment order, such interest shall
be computed based on the Rules on Interbank Compensation of The New York Clearing House Association
(the “Compensation Rules”) as in effect from time to time for all circumstances to which such
Compensation Rules apply. In any circumstance not subject to such Compensation Rules, the rate
shall be as provided in Article 4A.

               (vii) In executing any payment order, the Fiscal and Paying Agent may use the services of
correspondent or intermediary banks, funds-transfer systems, telecommunication companies and other
entities of similar purpose. While the Fiscal and Paying Agent shall use due care in the selection
of all such entities, they are not the Fiscal and Paying Agent’s agents and the Fiscal and Paying
Agent will not be responsible for their acts or omissions with regard to any payment orders.

               (viii) The Issuing Bank agrees to be bound by any forthcoming reasonable standard terms and
conditions of the Fiscal and Paying Agent concerning funds transfers. The Fiscal and Paying Agent
will send these terms and conditions to the Issuing Bank as soon as they become finalized. These
terms and conditions will be applicable to this Agreement.

-15-

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on their
behalf by representatives duly authorized thereunto, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	ASSOCIATED BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joseph T. Dutkiewicz
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST	 	 
	 	 	COMPANY, N.A., as Fiscal and Paying Agent	 	 
	 

	 	By:
	 	/s/ Roxane Ellwanger	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 

-16-

 

EXHIBIT A-1 TO

FISCAL AND PAYING

AGENCY AGREEMENT

(Short-Term Fixed)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM THIS NOTE 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 THE 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 CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER OR EXCHANGE AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY
PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THIS BANK NOTE IS A DIRECT, UNCONDITIONAL UNSECURED AND UNSUBORDINATED GENERAL OBLIGATION OF THE
BANK. THE OBLIGATION EVIDENCED BY THIS BANK NOTE RANKS PARI PASSU WITH ALL OTHER UNSECURED AND
UNSUBORDINATED OBLIGATIONS OF THE BANK, EXCEPT OBLIGATIONS INCLUDING DEPOSITS THAT ARE SUBJECT TO
ANY PRIORITIES OR PREFERENCES UNDER APPLICABLE LAW.

THIS BANK NOTE DOES NOT EVIDENCE A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY.

THIS BANK NOTE MUST BE SOLD IN MINIMUM DENOMINATIONS OF $250,000 AND IS NOT EXCHANGEABLE FOR NOTES
IN SMALLER DENOMINATIONS.

	 	 	 	 	 	 	 
	REGISTERED

	 	 	 	REGISTERED
	NO. FX
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	CUSIP
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

2

FIXED RATE NOTE

[INSERT NAME OF THE ISSUING BANK]

	 	 	 
	ORIGINAL ISSUE DATE:

	 	INTEREST RATE:
	 
	 	 
	STATED MATURITY:

	 	NUMBER OF DAYS:
	 
	 	 
	REDEMPTION DATES:
	 	 
	 
	 	 
	REDEMPTION PRICE:

	 	REPAYMENT DATE(S):
	 
	 	 
	OTHER REDEMPTION TERMS:

	 	REPAYMENT PRICE:
	 
	 	 
	OTHER TERMS:

	 	OTHER REPAYMENT TERMS:
	 
	 	 
	ORIGINAL ISSUE DISCOUNT NOTE:
	 	 

	 	 	 	 	 
	Yes

	 	No
	 	 
	o

	 	o	 	 

If this Note was issued with “original issue discount” for purposes of Section 1273 of the Internal
Revenue Code of 1986, as amended, the following shall be completed:

	 	 	 	 	 
	 

	 	TOTAL AMOUNT OF OID:
	 	ISSUE PRICE (expressed as a
percentage of
aggregate principal amount):
	 
	 	 	 	 
	YIELD TO MATURITY:

	 	SHORT ACCRUAL
	 	METHOD USED TO
	(compounded ___)

	 	PERIOD OID:
	 	DETERMINE YIELD FOR
	 

	 	 	 	SHORT ACCRUAL PERIOD:

	 	 	 	 	 
	 

	 	          Approximate
	 	Exact
	 
	 	 	 	 
	 

	 	o
	 	o

[Insert name of the Issuing Bank] (the “Bank”, which term includes any successor thereof) for value
received, hereby promises to pay the sum of ___U.S. dollars ($___) to CEDE & CO.
(the “Registered Holder”) as the nominee of The Depository Trust Company (“DTC”) as custodian for
participants each acting for themselves and as nominee or custodian for others, including trusts,
pension and retirement plans and accounts, fiduciaries, custodians and nominees (the
“Participants”) on the Stated Maturity and to pay interest on the Stated Maturity.

 

3

Interest on this Note shall accrue from and including the Original Issue Date specified herein, to
but excluding the Stated Maturity specified herein, at the per annum rate shown herein calculated
on the basis of the actual number of days elapsed divided by a 360-day year. Interest shall be
payable in arrears on the Stated Maturity. If the Stated Maturity does not fall on a Business Day,
payment of interest and principal due on the Stated Maturity will be made on the next succeeding
Business Day with the same force and effect as if made on the Stated Maturity, and no interest
shall be payable on the amount so payable for the period from, including and after such Stated
Maturity. Interest and principal on this Note shall be paid by the Bank at Maturity to the person
in whose name this Note is registered at the opening of business on the Stated Maturity.

For purposes of this Note, “Business Day” means any day that is not a Saturday or Sunday and that
is not a day on which banking institutions are authorized or obligated by law or executive order to
close in The City of New York, New York and the City of Green Bay, Wisconsin.

Principal and interest on Notes will be paid in immediately available funds to the Registered
Holder.

The Registered Holder may declare the principal amount of, and accrued interest on, this Note to be
due and payable immediately if an Event of Default with respect to this Note shall have occurred
and be continuing at the time of such declaration. Any Event of Default with respect to this Note
may be waived by the Registered Holder.

For purposes of this Note, an “Event of Default” shall mean any one of the following events:

	 	(1)	 	default in the payment of any interest upon the Note when it becomes
due and payable, and continuance of such default for a period of 30 days; or
	 
	 	(2)	 	default in the payment of the principal of (or premium, if any, on) the
Note when due; or
	 
	 	(3)	 	default in the performance of any covenant or agreement of the Bank
contained in the Note which continues for 60 days after receipt of written notice
given by the Registered Holder; or
	 
	 	(4)	 	the Bank shall consent to the appointment of a conservator or receiver
or liquidator or trustee or other similar official in any insolvency, receivership,
liquidation, readjustment of debt, marshaling of assets and liabilities or similar
proceedings of or relating to the Bank or relating to all or substantially all of
its property; or a decree or order of a court or agency or supervisory authority
having jurisdiction in the premises for the appointment of a conservator or
receiver or liquidator or trustee or other similar official in any insolvency,
receivership, liquidation, readjustment of debt, marshaling of assets and
liabilities or similar proceedings, or for the winding-up or liquidation of its
affairs, shall have been entered against the Bank and such decree or order shall
have remained in force undischarged or unstayed for a period of 60 consecutive

 

4

	 	 	 	days; or the Bank shall file a petition to take advantage of any applicable
insolvency or reorganization statute.

This Note may be subject to repayment at the option of the Registered Holder hereof on the
Repayment Date(s) indicated on the face hereof. If no such date is set forth on the face hereof,
this Note may not be so repaid at the option of the Registered Holder hereof prior to maturity. On
each Repayment Date, if any, this Note shall be repayable in whole or in part in increments of
$1,000 (provided that any remaining principal hereof shall be at least $250,000) at the option of
the Registered Holder hereof at a repayment price equal to 100% of the principal amount to be
repaid, or if this Note is an Original Issue Discount Note (as specified on the face hereof), the
applicable Repayment Price specified on the face hereof, together in the case of any such repayment
with interest thereon payable to the Repayment Date. For this Note to be repaid in whole or in
part at the option of the Registered Holder hereof, the Fiscal and Paying Agent must receive, at
its address set forth below, not more than 45, nor less than 30, days prior to a Repayment Date, if
any, either (i) this Note accompanied by the form entitled “Option to Elect Repayment” below duly
completed, or (ii) a facsimile transmission or letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial bank or trust
company in the United States of America setting forth the name of the Registered Holder, the
principal amount of this Note, the principal amount of this Note to be repaid, the certificate
number or a description of the tenor and terms of the Note, a statement that the option to elect
repayment is being exercised thereby and a guaranty that the Note to be repaid with the form
entitled “Option to Elect Repayment” on the Note duly completed will be received by the Fiscal and
Paying Agent not later than five Business Days after the date of such facsimile transmission or
letter and such Note and form duly completed are received by the Fiscal and Paying Agent by such
fifth Business Day. Exercise of such repayment option by the Registered Holder hereof shall be
irrevocable, except a Registered Holder tendering after receipt of a notice of an extension of
maturity.

If so provided on the face of this Note, this Note may be redeemed by the Bank on any Redemption
Date (or range of Redemption Dates) so indicated on the face hereof. If no Redemption Date (or
range of Redemption Dates) is set forth on the face hereof, this Note may not be redeemed prior to
its Stated Maturity. If one or more Redemption Dates (or ranges of Redemption Dates) are so
specified, this Note is subject to redemption at the option of the Bank, upon notice to the
Registered Holder at its address in the note registers of the Fiscal and Paying Agent by
first-class mail, not less than 30 nor more than 45 days prior to the Redemption Date specified in
such notice, at the applicable redemption price specified on the face hereof (expressed as a
percentage of the principal amount of this Note) together in the case of any such redemption with
accrued interest to the Redemption Date. The Bank may elect to redeem less than the entire
principal amount hereof; provided, that the principal amount, if any, of this Note that remains
outstanding after such redemption is an Authorized Denomination. In the event of any redemption in
part, the Bank will not be required to (i) issue, register the transfer of, or exchange any Note
during a period beginning at the opening of business 15 days before the day of the mailing of the
notice of redemption of Notes selected for redemption and ending at the close of business on the
date of mailing of the relevant notice of redemption or (ii) register the transfer or exchange of
any Note, or any portion thereof, called for redemption, except the unredeemed portion of any Note
being redeemed in part.

 

5

All notices to the Bank under this Note shall be in writing and addressed to the Fiscal and Paying
Agent at 101 Barclay Street, Floor 21 West, New York, NY 10286, Attention: Debt Operations
Department, Floor 7E, or to such other address as the Bank may notify the Registered Holder.

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

The Notes of this Series are issuable only in registered form without interest coupons in
denominations of $250,000 and integral multiples of $1,000 in excess thereof (each an “Authorized
Denomination”)

 

6

IN WITNESS WHEREOF, the Bank has caused this Note to be duly executed and countersigned as of the
date set forth herein.

This Note is not valid for any purpose until countersigned by the Agent or such other institution
as may be appointed by the Bank and the certificate of authentication affixed hereon.

	 	 	 
	Countersigned for

	 	[INSERT NAME OF ISSUING BANK]
	authentication only
	 	 
	The Bank of New York Trust Company, N.A.,
	 	 
	as Fiscal and Paying Agent
	 	 

	 	 	 	 	 	 	 
	By

	 	 	 	By	 	 
	 

	 	 
	 	 	 	 
	 

	 	Authorized Signature
	 	 	 	Authorized Signature

 

7

OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request (s) and instruct (s) the Bank to repay the within Note
(or portion thereof specified below) pursuant to its terms at a price equal to the Repayment Price,
together with interest to the repayment date, to the undersigned, at

 

 

(Please print or typewrite name and address of the Undersigned)

For this Note to be repaid the Fiscal and Paying Agent must receive at its Corporate Trust Office,
located at [           ], Attention: [           ], or at such other place or places of which the Bank shall from time
to time notify the Holder of the within Note, not more than 45, nor less than 30, days prior to a
Repayment Date, if any, shown on the face of the within Note, either (i) this Note with this
“Option to Elect Repayment” form duly completed, or (ii) a telegram, telex, facsimile transmission
or letter from a member of a national securities exchange or the National Association of Securities
Dealers, Inc. or a commercial bank or trust company in the United States of America setting forth
the name of the Registered Holder of the Note, the principal amount of the Note, the principal
amount of the Note to be repaid, the certificate number or a description of the tenor and terms of
the Note, a statement that the option to elect repayment is being exercised thereby and a guaranty
that the Note to be repaid with the form entitled “Option to Elect Repayment” duly completed will
be received by the Fiscal and Paying Agent not later than five Business Days after the date of such
telegram, telex, facsimile transmission or letter and such Note and form duly completed are
received by the Fiscal and Paying Agent by such fifth Business Day.

If less than the entire principal amount of the within Note is to be repaid, specify the
portion thereof (which shall be increments of $1,000) which the Holder elects to have repaid:
$___; and specify the denomination or denominations (which shall be $250,000 or an integral
multiple of $1,000 in excess of $250,000) of the Notes to be reissued to the Holder for the portion
of the within Note not being repaid (in the absence of any such specification, one such Note will
be issued for the portion not being repaid): $___.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	Note: The signature on this Option to Elect Repayment must correspond with the name as written
upon the face of this Note in every particular without alteration or enlargement.

[Insert signature guarantee medallion language.]

 

8

 

ABBREVIATIONS

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

	 	 	 	 	 	 	 
	 	 	TEN COM – as tenants in common
	 
	 	 	 	 	 	 
	 	 	TEN ENT – as tenants by the entireties
	 
	 	 	 	 	 	 
	 	 	JT ENT – as joint tenants with right of survivorship and not as tenants in common
	 
	 	 	 	 	 	 
	 	 	UNIF TRANS MIN F
	 

	 	 	 	 	 	 
	 

	 	 	 	(Cust)                                                                           (Minor)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Custodian under Uniform Transfer to Minors Act	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(State)	 	 

Additional abbreviations may 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 Note, and all rights thereunder, hereby irrevocably constituting and appointing

 

to transfer said Note on the books of the within Bank, with full power of substitution in the
premises.

Dated:___

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular, without alteration or enlargement or any change whatever and
must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Fiscal
and Paying Agent, which requirements include membership or participation in STAMP or such other
“signature guaranty program” as may be determined by the Fiscal and Paying Agent in addition to or in substitution for STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.

 

 

EXHIBIT A-2 TO

FISCAL AND PAYING

AGENCY AGREEMENT

(Medium-Term Fixed)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM THIS NOTE 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 THE 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 CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER OR EXCHANGE AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY
PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

[SENIOR NOTE: THIS BANK NOTE IS A DIRECT, UNCONDITIONAL, UNSECURED AND UNSUBORDINATED GENERAL
OBLIGATION OF THE BANK. THE OBLIGATION EVIDENCED BY THIS BANK NOTE RANKS PARI PASSU WITH ALL OTHER
UNSECURED AND UNSUBORDINATED OBLIGATIONS OF THE BANK, EXCEPT OBLIGATIONS, INCLUDING DEPOSITS, THAT
ARE SUBJECT TO ANY PRIORITIES OR PREFERENCES UNDER APPLICABLE LAW.]

[SUBORDINATED NOTE: THE OBLIGATION EVIDENCED BY THIS BANK NOTE IS AN OBLIGATION OF THE BANK AND IS
SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND GENERAL CREDITORS OF THE BANK, IS INELIGIBLE AS
COLLATERAL FOR A LOAN BY THE BANK AND IS NOT SECURED.]

THIS BANK NOTE DOES NOT EVIDENCE A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY.

THIS BANK NOTE MUST BE SOLD IN MINIMUM DENOMINATIONS OF $250,000 AND IS NOT EXCHANGEABLE FOR NOTES
IN SMALLER DENOMINATIONS.

	 	 	 
	REGISTERED

	 	REGISTERED
	 
	 	 
	NO. FX___
	 	 

 

2

	 	 	 
	CUSIP_________
	 	 
	 
	 	 

FIXED RATE NOTE

[INSERT NAME OF ISSUING BANK]

	 	 	 
	ORIGINAL ISSUE DATE:

	 	INTEREST RATE:
	 
	 	 
	STATED MATURITY:

	 	REGULAR RECORD DATES:
	 
	 	 
	REDEMPTION DATES:
	 	INTEREST PAYMENT DATES:
	 
	 	 
	REDEMPTION PRICE:

	 	 
	 
	 	 
	OTHER REDEMPTION TERMS:

	 	REPAYMENT DATE(S):
	 
	 	 
	OTHER TERMS:

	 	REPAYMENT PRICE:
	 
	 	 
	ORIGINAL ISSUE DISCOUNT NOTE:
	 	 

	 	 	 	 	 
	Yes

	 	No
	 	 
	o

	 	o	 	 

If this Note was issued with “original issue discount” for purposes of Section 1273 of the Internal
Revenue Code of 1986, as amended, the following shall be completed:

	 	 	 	 	 
	 

	 	TOTAL AMOUNT OF OID:
	 	ISSUE PRICE (expressed as a
percentage of
aggregate principal amount):
	 
	 	 	 	 
	YIELD TO MATURITY:

(compounded ___)

	 	SHORT ACCRUAL OID:
	 	METHOD USED TO

DETERMINE YIELD

FOR SHORT ACCRUAL PERIOD:

	 	 	 	 	 
	 

	 	          Approximate
	 	Exact
	 
	 	 	 	 
	 

	 	o
	 	o

[insert name of Issuing Bank] (the “Bank”, which term includes any successor thereof) for value
received, hereby promises to pay the sum of
        U.S. dollars
($       ) to CEDE & CO. (the “Registered
Holder”) as the nominee of The Depository Trust Company (“DTC”) as custodian for participants each
acting for themselves and as nominee or custodian for others, including trusts, pension and
retirement plans and accounts, fiduciaries, custodians and

 

3

nominees (the “Participants”) on the Stated Maturity and to pay interest on a regular periodic
basis as specified herein.

Interest on this Note shall accrue from and including the most recent Interest Payment Date
specified herein to which interest has been paid or, if no interest has been paid on this Note,
from and including, the Original Issue Date specified herein, to but excluding the next Interest
Payment Date, the last such Interest Payment Date being the Stated Maturity specified herein, at
the per annum rate shown herein calculated on the basis of a 360-day year consisting of twelve
30-day months and shall be payable in arrears on Interest Payment Dates and on the Stated Maturity.
If payment of interest and principal due on any Interest Payment Date, including the Stated
Maturity, does not fall on a Business Day, such payment will be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment Date or the Stated
Maturity, as the case may be, and no interest shall be payable on the amount so payable for the
period from, including and after such Interest Payment Date or the Stated Maturity, as the case may
be. Interest, other than interest payable on the Stated Maturity, shall be paid by the Bank on
each Interest Payment Date to the person in whose name this Note is registered at the close of
business on the Regular Record Date; provided, however, that if the Original Issue Date of this
Note is between a Record Date and the applicable Interest Payment Date, the initial payment of
interest with respect to this Note will be payable on the Interest Payment Date following the next
succeeding Regular Record Date to the Registered Holder of this Note on such next succeeding Record
Date. For purposes of this Note, “Business Day” means any day, that is not a Saturday or Sunday,
and that is not a day on which banking institutions are authorized or obligated by law or executive
order to close in The City of New York, New York or in the City of Green Bay, Wisconsin.

Principal, premium, if any and interest payments on Notes will be paid in immediately available
funds to the Registered Holder.

The Registered Holder may declare the principal amount of, and accrued interest on, this Note to be
due and payable immediately if an Event of Default with respect to the Note shall have occurred and
be continuing at the time of such declaration. Any Event of Default with respect to this Note may
be waived by the Registered Holder.

[Senior Notes: For purposes of this Note, an “Event of Default” shall mean any one of the following
events:

	 	•	 	default in the payment of any interest upon the Note when it becomes due and payable,
and continuance of such default for a period of 30 days; or
	 
	 	•	 	default in the payment of the principal of (or premium, if any, on) the Note when due;
or
	 
	 	•	 	default in the performance of any covenant or agreement of the Bank contained in the
Note which continues for 60 days after receipt of written notice given by the Registered
Holder; or
	 
	 	•	 	the Bank shall consent to the appointment of a conservator or receiver or liquidator or

 

4

trustee or other similar official in any insolvency, readjustment of debt, marshaling of
assets and liabilities or similar proceedings of or relating to the Bank or of or relating
to all or substantially all of its property; or a decree or order of a court or agency or
supervisory authority having jurisdiction in the premises for the appointment of a
conservator or receiver or liquidator or trustee or other similar official in any
insolvency, readjustment of debt, marshaling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have been entered
against the Bank and such decree or order shall have remained in force undischarged or
unstayed for a period of 60 consecutive days; or the Bank shall file a petition to take
advantage of any applicable insolvency or reorganization statute.]

[Subordinated Notes: For purposes of this Note, an “Event of Default” shall occur if the Bank shall
consent to the appointment of a conservator or receiver or liquidator or trustee or other similar
official in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar
proceedings of or relating to the Bank or of or relating to all or substantially all of its
property; or a decree or order of a court or agency or supervisory authority having jurisdiction in
the premises for the appointment of a conservator or receiver or liquidator or trustee or other
similar official in any insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered
against the Bank and such decree or order shall have remained in force undischarged or unstayed for
a period of 60 consecutive days; or the Bank shall file a petition to take advantage of any
applicable insolvency or reorganization statute.

The holder of this Note, by its acceptance hereof, agrees that the indebtedness of the Bank
evidenced by this Note; including the principal, premium, if any, and interest, is unsecured and
subordinate and junior in right of payment to the Bank’s obligations to its depositors, its
obligations under banker’s acceptances and letters of credit, and its obligations to its other
creditors (including any obligations to any Federal Reserve Bank and the FDIC), whether outstanding
at the time this Note is issued or thereafter incurred (except any obligations which by their
express terms rank on a parity with or junior to this Note), and that in the case of any insolvency
proceedings, receivership, conservatorship, reorganization, readjustment of debt, marshaling of
assets and liabilities or similar proceedings or any liquidation or winding up of or relating to
the Bank, whether voluntary or involuntary, all such obligations

(except obligations which rank on parity with or junior to this Note) shall be entitled to be paid
in full before any payment shall be made on account of the principal of, premium, if any, or
interest on this Note. In the event of any such proceeding, after payment in full of all sums
owing with respect to such prior obligations, the holder of this Note, together with the holders of
any obligations of the Bank ranking on a parity with this Note, shall be entitled to be paid pro
rata from the remaining assets of the Bank the unpaid principal of, the unpaid premium, if any, and
the unpaid interest on, this Note or such other obligations before any payment or other
distribution, whether in cash, property, or otherwise, shall be made on account of any capital
stock or any obligations of the Bank ranking junior to this Note.

This Note contains no limitation on the amount of senior debt, deposits or other obligations that
rank senior to this Note that maybe hereafter incurred or assumed by the Bank.]

 

5

This Note may be subject to repayment at the option of the Registered Holder hereof on the
Repayment Date(s) indicated on the face hereof. If no such date is set forth on the face hereof,
this Note may not be so repaid at the option of the Registered Holder hereof prior to maturity. On
each Repayment Date, if any, this Note shall be repayable in whole or in part in increments of
$1,000 (provided that any remaining principal hereof shall be at least $250,000) at the option of
the Registered Holder hereof at a repayment price equal to 100% of the principal amount to be
repaid, or if this Note is an Original Issue Discount Note (as specified on the face hereof), the
applicable Repayment Price specified on the face hereof, together in the case of any such repayment
with interest thereon payable to the Repayment Date, but interest installments due prior to the
Repayment Date will be payable to the Registered Holder as of the relevant Regular Record Date or
special record date. For this Note to be repaid in whole or in part at the option of the
Registered Holder hereof, the Fiscal and Paying Agent must receive, at its address set forth below,
not more than 45, nor less than 30, days prior to a Repayment Date, if any, either (i) this Note
accompanied by the form entitled “Option to Elect Repayment” below duly completed, or (ii) a
telegram, telex, facsimile transmission or letter from a member of a national securities exchange
or the National Association of Securities Dealers, Inc. or a commercial bank or trust company in
the United States of America setting forth the name of the Registered Holder, the principal amount
of this Note, the principal amount of this Note to be repaid, the certificate number or a
description of the tenor and terms of the Note, a statement that the option to elect repayment is
being exercised thereby and a guaranty that the Note to be repaid with the form entitled “Option to
Elect Repayment” on the Note duly completed will be received by the Fiscal and Paying Agent not
later than five Business Days after the date of such facsimile transmission or letter and such Note
and form duly completed are received by the Fiscal and Paying Agent by such fifth Business Day.
Exercise of such repayment option by the Registered Holder hereof shall be irrevocable, except a
Registered Holder tendering after receipt of a notice of an extension of maturity.

If so provided on the face of this Note, this Note may be redeemed by the Bank on any Redemption
Date (or range of Redemption Dates) so indicated on the face hereof. If no Redemption Date (or
range of Redemption Dates) is set forth on the face hereof, this Note may not be redeemed prior to
its Stated Maturity. If one or more Redemption Dates (or ranges of Redemption Dates) are so
specified, this Note is subject to redemption at the option of the Bank, upon notice by first-class
mail, not less than 30 nor more than 45 days prior to the Redemption Date specified in such notice,
at the applicable redemption price specified on the face hereof (expressed as a percentage of the
principal amount of this Note) together in the case of any such redemption with accrued interest to
the Redemption Date, but interest installments due prior to the Redemption Date will be payable to
the Registered Holder on the relevant Regular Record Date if the Redemption Date is an Interest
Payment Date. The Bank may elect to redeem less than the entire principal amount hereof; provided,
that the principal amount, if any, of this Note that remains outstanding after such redemption is
an Authorized Denomination. In the event of any redemption in part, the Bank will not be required
to (i) issue, register the transfer of, or exchange any Note during a period beginning at the
opening of business 15 days before the day of the mailing of the notice of redemption of Notes
selected for redemption and ending at the close of business on the date of mailing of the relevant
notice of redemption or (ii) register the transfer or exchange of any Note, or any portion thereof,
called for redemption, except the unredeemed portion of any Note being redeemed in part.

 

6

All notices to the Bank under this Note shall be in writing or addressed to the Fiscal and Paying
Agent at [        ], Attention: [        ], or to such other address as the Bank may notify the Registered
Holder.

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

The Notes of this series are issuable only in registered form without interest coupons in
denominations of $250,000 and integral multiples of $1,000 in excess thereof (each an “Authorized
Denomination”).

IN WITNESS WHEREOF, the Bank has caused this Note to be duly executed and countersigned as of
the date set forth herein.

This Note is not valid for any purpose until countersigned by the Fiscal and Paying Agent or such
other institution as may be appointed by the Bank and the certificate of authentication affixed
hereon.

	 	 	 
	Countersigned for
authentication only

THE BANK OF NEW YORK TRUST COMPANY,

  N.A., AS FISCAL AND PAYING AGENT

	 	[INSERT NAME OF ISSUING BANK]

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Authorized Signature
	 	 	 	 	 	Authorized Signature	 	 

 

 

 7 

OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request(s) and instruct(s) the Bank to repay the within Note (or
portion thereof specified below) pursuant to its terms at a price equal to the Repayment Price,
together with interest to the repayment date, to the undersigned, at

 

 

(Please print or typewrite name and address of the Undersigned)

For this Note to be repaid the Fiscal and Paying Agent must receive at its Corporate Trust Office,
located at [          ], Attention: [          ], or at such other place or places of which the Bank shall from time
to time notify the Holder of the within Note, not more than 45, nor less than 30, days prior to a
Repayment Date, if any, shown on the face of the within Note, either (i) this Note with this
“Option to Elect Repayment” form duly completed, or (ii) a telegram, telex, facsimile transmission
or letter from a member of a national securities exchange or the National Association of Securities
Dealers, Inc. or a commercial bank or trust company in the United States of America setting forth
the name of the Registered Holder of the Note, the principal amount of the Note, the principal
amount of the Note to be repaid, the certificate number or a description of the tenor and terms of
the Note, a statement that the option to elect repayment is being exercised thereby and a guaranty
that the Note to be repaid with the form entitled “Option to Elect Repayment” duly completed will
be received by the Fiscal and Paying Agent not later than five Business Days after the date of such
telegram, telex, facsimile transmission or letter and such Note and form duly completed are
received by the Fiscal and Paying Agent by such fifth Business Day.

If less than the entire principal amount of the within Note is to be repaid, specify the portion
thereof (which shall be increments of $1,000) which the Holder elects to have repaid: $                     ; and
specify the denomination or denominations (which shall be $250,000 or an integral multiple of
$1,000 in excess of $250,000) of the Notes to be reissued to the Holder for the portion of the
within Note not being repaid (in the absence of any such specification, one such Note will be
issued for the portion not being repaid): $                     .

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Note: The signature on this Option to Elect Repayment
must correspond with the name as written upon the face
of this Note in every particular without alteration or
enlargement.

 

8

 

ABBREVIATIONS

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

	 	 	 	 	 	 	 	 	 
	 	 	TEN COM – as tenants in common	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TEN ENT – as tenants by the entireties	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TT ENT – as joint tenants with right of survivorship and not as tenants in common
	 
	 	 	 	 	 	 	 	 
	 	 	UNIF TRANS MIN ACT –	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	(Cust)
	 	(Minor)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Custodian under Uniform Transfer to Minors Act
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	(State)
	 	 

Additional abbreviations may 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 Note, and all rights thereunder, hereby irrevocably constituting and appointing

 

to transfer said Note on the books of the within Bank, with full power of substitution in the
premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular, without alteration or enlargement or any change whatever and
must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Fiscal
and Paying Agent, which requirements include membership or participation in STAMP or such other
“signature guaranty program” as may be determined by the Fiscal and Paying Agent in addition to or
in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

 

EXHIBIT B-1 TO

FISCAL AND PAYING

AGENCY AGREEMENT

(Short-Term Floating)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE 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 THE 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 CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER OR EXCHANGE AND ANY CERTIFICATE ISSUED IS REGISTERED IN

THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

THIS BANK NOTE IS A DIRECT, UNCONDITIONAL, UNSECURED AND UNSUBORDINATED GENERAL OBLIGATION OF THE
BANK. THE OBLIGATION EVIDENCED BY THIS BANK NOTE RANKS PARI PASSU WITH ALL OTHER UNSECURED AND
UNSUBORDINATED OBLIGATIONS OF THE BANK, EXCEPT OBLIGATIONS, INCLUDING DEPOSITS, THAT ARE SUBJECT TO
ANY PRIORITIES OR PREFERENCES UNDER APPLICABLE LAW.

THIS BANK NOTE DOES NOT EVIDENCE A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY.

THIS BANK NOTE MUST BE SOLD IN MINIMUM DENOMINATIONS OF $250,000 AND IS NOT EXCHANGEABLE FOR NOTES
IN SMALLER DENOMINATIONS.

	 	 	 	 	 	 	 
	REGISTERED	 	 	 	REGISTERED
	 
	 	 	 	 	 	 
	No. FLR.
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	CUSIP
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

 

 

 2 

FLOATING RATE NOTE

[INSERT NAME OF THE ISSUING BANK]

	 	 	 
	ORIGINAL ISSUE DATE:

	 	STATED MATURITY:
	 
	 	 
	INITIAL INTEREST RATE:

	 	SPREAD:
	 
	 	 
	INDEX MATURITY:

	 	SPREAD MULTIPLIER:
	 
	 	 
	INTEREST RATE BASIS:

	 	REGULAR RECORD DATES:
	 
	 	 
	MAXIMUM INTEREST RATE:

	 	INTEREST PAYMENT DATES:
	 
	 	 
	MINIMUM INTEREST RATE:

	 	INTEREST DETERMINATION DATES:
	 
	 	 
	INTEREST RESET DATES:

	 	CALCULATION DATE:
	 
	 	 
	REPAYMENT DATE(S):

	 	REDEMPTION DATES:
	 
	 	 
	REPAYMENT PRICE:

	 	REDEMPTION PRICE:
	 
	 	 
	OTHER REPAYMENT TERMS:

	 	OTHER REDEMPTION TERMS:
	 
	 	 
	ORIGINAL ISSUE DISCOUNT NOTE:
	 	 

	 	 	 	 	 
	Yes

	 	No
	 	 
	o

	 	o	 	 

If this Note was issued with “original issue discount” for purposes of Section 1273 of the Internal
Revenue Code of 1986, as amended, the following shall be completed:

	 	 	 	 	 
	 

	 	TOTAL AMOUNT
	 	ISSUE PRICE (expressed as a
	 

	 	OF OID:
	 	percentage of aggregate
	 

	 	 	 	principal amount):
	 
	 	 	 	 
	YIELD TO MATURITY:

	 	SHORT ACCRUAL
	 	METHOD USED TO
	(compounded ___)

	 	OID:
	 	DETERMINE YIELD FOR
	 

	 	 	 	SHORT ACCRUAL PERIOD:
	 
	 	 	 	 

	 	 	 	 	 
	 

	 	Approximate
	 	Exact
	 

	 	o     
	 	o

[insert name of the Issuing Bank] (the “Bank”, which term includes any successor thereof) for value
received, hereby promises to pay the sum of,                     U.S. dollars ($,                     )

 

3

to CEDE & CO. (the “Registered
Holder”) as nominee of The Depository Trust Company
(“DTC”) as custodian for participants each acting for themselves and as nominee or custodian for
others, including trusts, pension and retirement plans and accounts, fiduciaries, custodians and
nominees (the “Participants”) on the Stated Maturity and to pay interest on the Stated Maturity.

Interest on this Note shall be payable monthly, quarterly, semiannually, or annually on each
Interest Payment Date specified herein and on the Stated Maturity specified herein at a rate per
annum equal to the Initial Interest Rate specified herein until the first Interest Reset Date
specified herein following the Original Issue Date specified herein and thereafter at a rate
determined in accordance with the provisions herein under the heading(s) “Determination of
Commercial Paper Rate”, “Determination of CD Rate”, “Determination of Fed Funds Rate”,
“Determination of LIBOR”, “Determination of Treasury Rate”, “Determination of Prime Rate” or
“Determination of CMT Rate”, depending upon whether the Interest Rate Basis is Commercial Paper
Rate, CD Rate, Fed. Funds Rate, LIBOR, Treasury Rate, Prime Rate, or CMT Rate to the person in
whose name this Note is registered at the close of business on the Regular Record Date whether or
not a Business Day (as defined herein); provided, however, that if the Original Issue Date is
between a Regular Record Date and an Interest Payment Date, interest payments will commence on the
Interest Payment Date following the next succeeding Regular Record
Date; and provided, further,
that if an Interest Payment Date or Interest Reset Date would fall on a day that is not a Business
Day, such Interest Payment Date or Interest Reset Date shall be the following day that is a
Business Day, except that if the Interest Rate Basis is LIBOR, where such following Business Day
falls in the next calendar month, such Interest Payment Date or Interest Reset Date shall be the
next preceding day that is a Business Day. “Business Day” means any day that is not a Saturday or
Sunday and that is not a day on which banking institutions are authorized or obligated by law or
executive order to close in the City of New York, New York and the City of Green Bay, Wisconsin; or
with respect to LIBOR Notes, is also a London Business Day. “London Business Day” means any day on
which dealings in deposits in U.S. dollars are transacted in the London interbank market.

Principal, premium, if any, and interest payments on Notes will be paid in immediately available
funds to the Registered Holder.

The Registered Holder may declare the principal amount of, and accrued interest on, this Note to be
due and payable immediately if an Event of Default with respect to this Note shall have occurred
and be continuing at the time of such declaration. Any Event of Default with respect to this Note
may be waived by the Registered Holder.

For purposes of this Note, an “Event of Default” shall mean any one of the following events:

	 	(1)	 	default in the payment of any interest upon the Note when it becomes due and
payable, and continuance of such default for a period of 30 days; or
	 
	 	(2)	 	default in the payment of the principal of (or premium, if any, on) the Note
when due; or

 

4

	 	(3)	 	default in the performance of any covenant or agreement of the Bank contained
in the Note which continues for 60 days after receipt of written notice given by the
Registered Holder hereof; or
	 
	 	(4)	 	the Bank shall consent to the appointment of a conservator or receiver or
liquidator or trustee or other similar official in any insolvency, receivership,
liquidation, readjustment of debt, marshaling of assets and liabilities or similar
proceedings of or relating to the Bank or of or relating to all or substantially all of
its property; or a decree or order of a court or agency or supervisory authority having
jurisdiction in the premises for the appointment of a conservator or receiver or
liquidator or trustee or other similar official in any insolvency, receivership,
liquidation, readjustment of debt, marshaling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have been
entered against the Bank and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 consecutive days; or the Bank shall file a
petition to take advantage of any applicable insolvency or reorganization statute.]

All notices to the Bank under this Note shall be in writing and addressed to the Fiscal and Paying
Agent at [          ], Attention: [          ], or to such other address as the Bank may notify the Registered
Holder.

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

No interest will accrue on this Note after its maturity.

Interest:

Interest payable with respect to each interest payment period shall accrue to but not include the
applicable Interest Payment Date or the Stated Maturity, as the case may be. Accrued interest
hereon from the Issue Date or from the last date to which interest shall have been paid, as the
case may be, shall be an amount calculated by multiplying the face amount hereof by an accrued
interest factor. Such accrued interest factor shall be computed by adding the interest factors
calculated for each day from the Original Issue Date or from the last date to which interest shall
have been paid, as the case may be, to the date for which accrued interest is being calculated.
The interest factor for each such day shall be computed by dividing the interest rate applicable to
such day by 360 if the Interest Rate Basis is the Commercial Paper Rate, CD Rate, Fed Funds Rate,
LIBOR or Prime Rate, as indicated herein, or by the actual number of days in the year if the
Interest Rate Basis is the Treasury Rate or CMT Rate, as indicated herein.

The rate of interest borne by this Note will be reset daily, weekly, monthly, quarterly,
semiannually or annually, as specified above. The “Interest Reset Date” will be the date specified
above; provided, however, that the interest rate in effect from the Original Issue Date to the
first Interest Reset Date will be the “Initial Interest Rate” (as specified herein). Each such
adjusted rate shall be applicable on and after the Interest Reset Date to which it relates, to, but
not including, the next succeeding Interest Reset Date, or until the Stated Maturity, as the case
may be. If any, Interest Reset Date would otherwise be a day that is not a Business Day, such
Interest Reset Date shall be postponed to the next succeeding day that is a Business Day, except
that in the case of a

 

5

LIBOR Note, where such following Business Day is in the next succeeding calendar month, such
Interest Reset Date shall be the immediately preceding Business Day.

Determination of Commercial Paper Rate:

If the Interest Rate Basis specified on the face hereof is the Commercial Paper Rate, the interest
rate with respect to this Note for any Interest Reset Date shall be the Commercial Paper Rate plus
or minus the Spread, if any, and/or multiplied by the Spread Multiplier, if any, as specified on
the face hereof, as determined on the applicable Interest Determination Date.

“Commercial Paper Rate” means, with respect to any Interest Determination Date, the Money Market
Yield (as defined below) on such date of the rate quoted on a discount basis for commercial paper
having the Index Maturity specified on the face hereof as published in H.15(519) under the heading
“Commercial Paper-Nonfinancial.” In the event that such rate is not published by 3:00 P.M., New
York City time, on the Calculation Date pertaining to such Commercial Paper Interest Determination
Date, then the Commercial Paper Rate shall be the Money Market Yield on such Commercial Paper
Interest Determination Date of the rate of commercial paper of the specified Index Maturity as
published in H.15 Daily Update (as hereinafter defined) under the heading “Commercial
Paper-Nonfinancial” (with an Index Maturity of one month or three months being deemed to be
equivalent to an Index Maturity of 30 days or 90 days, respectively). If such rate is published
neither in H.15(519) nor in H.15 Daily Update by 3:00 P.M., New York City time, on such Calculation
Date, the Commercial Paper Rate for that Commercial Paper Interest Determination Date shall be
calculated by the Calculation Agent and shall be the Money Market Yield of the arithmetic mean of
the offered rates as of 11:00 A.M., New York City time, on that Commercial Paper Interest
Determination Date, of three leading dealers of commercial paper in The City of New York selected
by the Calculation Agent for commercial paper of the specified Index Maturity placed for an
industrial issuer whose senior unsecured bond rating is “AA,” or the equivalent, from a nationally
recognized securities rating agency; provided, however, that if the dealers selected as aforesaid
by the Calculation Agent are not quoting as mentioned in this sentence, the Commercial Paper Rate
with respect to such Commercial Paper Interest Determination Date will be the Commercial Paper Rate
in effect on such date.

“H.15 Daily Update” means the daily update of H.15(519), available through the world-wide-web site
of the Board of Governors of the Federal Reserve System at
http://www.bog.frb.fed.us/releases/l5/update, or any successor site or publication.

     “Money Market Yield” shall be a yield (expressed as a percentage) calculated in accordance
with the following formula:

	 	 	 	 	 	 	 	 	 	 	 
	Money Market Yield

	 	=
	 	D x 360___
	 	x 100
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	360 – (DxM)	 	 	 	 	 	 

where “D” refers to the per annum rate for commercial paper quoted on a bank discount basis and
expressed as a decimal and “M” refers to the actual number of days in the interest period for which
interest is being calculated.

 

6

Determination of CD Rate:

If the Interest Rate Basis specified on the face hereof is the CD Rate, the interest rate with
respect to this Note for any Interest Reset Date shall be the CD Rate plus or minus the Spread, if
any, and/or multiplied by the Spread Multiplier, if any, as specified on the face hereof, as
determined on the applicable Interest Determination Date.

“CD Rate” means, with respect to any Interest Determination Date, the rate on such date for
negotiable certificates of deposit having the Index Maturity specified on the face hereof as
published in H.15(519) under the heading “CDs (Secondary Market)”. In the event that such rate is
not so published before 3:00 P.M., New York City time, on the Calculation Date pertaining to such
CD Interest Determination Date, the CD Rate will be the rate on such CD Interest Determination Date
for negotiable certificates of deposit having the Index Maturity specified on the face hereof as
published in H.15 Daily Update, under the caption “CDs (Secondary Market).” If such rate is
published neither in H.15(519) nor H.15 Daily Update by 3:00 P.M., New York City time, on such
Calculation Date, the CD Rate for such CD Interest Determination Date will be calculated by the
Calculation Agent and will be the arithmetic mean of the secondary market offered rates as of 10:00
A.M., New York City time, on such CD Interest Determination Date, of three leading nonbank dealers
of negotiable U.S. dollar certificates of deposit in The City of New York (which may include one or
more of the Agents) selected by the Calculation Agent for negotiable certificates of deposit in a
denomination of $5,000,000 of the four highest rated banks (as rated by two nationally recognized
rating agencies) of the 25 largest United States banks ranked by asset size based on the most
recent year-end survey published in The American Banker (or a comparable publication) with a
remaining maturity closest to the Index Maturity specified on the face hereof; provided, however,
that if the dealers selected as aforesaid by the Calculation Agent are not quoting as mentioned in
this sentence, the CD Rate determined on such CD Interest Determination Date will be the CD Rate in
effect on such date.

Determination of Fed Funds Rate:

If the Interest Rate Basis specified on the face hereof is the Fed Funds Rate, the interest rate
with respect to this Note for any Interest Reset Date shall be the Fed Funds Rate plus or minus the
Spread, if any, and/or multiplied by the Spread Multiplier, if any, as specified on the face
hereof, as determined on the applicable Interest Determination Date.

“Fed Funds Rate” means, with respect to any Interest Determination Date, the rate on such date for
Federal Funds having the Index Maturity as specified on the face hereof as published in H.15(519)
under the heading “Federal Funds (Effective)”, as such rate is displayed on Telerate Page 120. In
the event that such rate does not appear on Telerate Page 120 or is not published by 3:00 P.M., New
York City time, on the Calculation Date pertaining to such Fed Funds Interest Determination Date,
the Fed Funds Rate will be the rate on such Fed Funds Interest Determination Date for Federal Funds
having the specified Index Maturity as published in H.15 Daily Update under the heading “Federal
Funds (Effective Rate).” If by 3:00 P.M., New York City time, on the Calculation Date pertaining to
such Fed Funds Interest Determination Date such rate does not appear on Telerate Page 120 or is not
yet published in either H.15(519) or H.15 Daily Update, then the Fed Funds Rate on such Fed Funds
Interest Determination Date will be calculated by the

 

7

Calculation Agent and will be the arithmetic
mean of the rates as of 9:00 A.M. New York City time, on such Fed Funds Interest Determination Date
for the last transaction in overnight Federal Funds arranged by three leading brokers of Federal
Funds transactions in The City of New York selected by the
Calculation Agent; provided, however,
that if the brokers selected as aforesaid by Calculation Agent are not quoting as mentioned in this sentence, the Fed Funds Rate with
respect to such Fed Funds Interest Determination Date will be the Fed Funds Rate in effect on such
date.

Determination of LIBOR:

If the Interest Rate Basis specified on the face hereof is LIBOR, the interest rate with respect to
this Note for any Interest Reset Date shall be LIBOR plus or minus the Spread, if any, and/or
multiplied by the Spread Multiplier, if any, as specified on the face hereof, as determined on the
applicable Interest Determination Date.

“LIBOR” will be determined by the Calculation Agent in accordance with the following provisions:

     (a) LIBOR will be either the rate for deposits in U.S. dollars having the Index
Maturity designated on the face hereof commencing on the second London Business Day
immediately following that LIBOR Interest Determination Date, that appears on the Telerate
Page 3750, as of 11:00 A.M., London time, on that LIBOR Interest Determination Date (“LIBOR
Telerate”) or (ii) the arithmetic mean of the offered rates for deposits in U.S. dollars
having the Index Maturity designated on the face hereof, commencing on the second London
Business Day immediately following that LIBOR Interest Determination Date, that appear on
the Reuters Screen LIBO Page as of 11:00 A.M., London time, on that LIBOR Interest
Determination Date, if at least two such offered rates appear on the Reuters Screen LIBO
Page (“LIBOR Reuters”). “Telerate Page 3750” means the display designated as page “3750” on
the Telerate Service (or such other page as may replace the 3750 page on that service or
such other service or services as may be nominated by the British Bankers’ Association for
the purpose of displaying London interbank offered rates for U.S. dollar deposits).
“Reuters Screen LIBO Page” means the display designated as page “LIBO” on the Reuters
Monitor Money Rates Service (or such other page as may replace the LIBO page on that service
for the purpose of displaying London interbank offered rates of major banks). If neither
LIBOR Telerate nor LIBOR Reuters is specified on the face hereof, LIBOR will be determined
as if LIBOR Telerate had been specified. If no rate appears on the Telerate Page 3750, or
if fewer than two offered rates appear on the Reuters Screen LIBO Page, as applicable, LIBOR
in respect of that LIBOR Interest Determination Date will be determined as if the parties
had specified the rate described in (b) below.

     (b) With respect to a LIBOR Interest Determination Date on which no rate appears on
Telerate Page 3750, as specified in (a)(i) above, or on which fewer than two offered rates
appear on the Reuters Screen LIBO Page, as specified in (a)(ii) above, as applicable, LIBOR
will be determined on the basis of the rates at which deposits in U.S. dollars having the
Index Maturity designated on the face hereof are offered at approximately 11:00 A.M., London
time, on that LIBOR Interest Determination Date by

 

8

four major banks in the London interbank
market selected by the Calculation Agent (“LIBOR Reference Banks”) to prime banks in the
London interbank market commencing on the second London Business Day immediately following
that LIBOR Interest Determination Date and in a principal amount equal to an amount of not
less than $1,000,000 that is representative for a single transaction in such market at such
time. The
Calculation Agent will request the principal London office of each of the LIBOR
Reference Banks to provide a quotation of its rate. If at least two such quotations are
provided, LIBOR in respect of that LIBOR Interest Determination Date will be the arithmetic
mean of such quotations. If fewer than two quotations are provided, LIBOR in respect of
that LIBOR Interest Determination Date will be the arithmetic mean of the rates quoted at
approximately 11:00 A.M., New York City time, on that LIBOR Interest Determination Date by
three major banks in The City of New York selected by the Calculation Agent for loans in
U.S. dollars to leading European banks having the Index Maturity designated on the face
hereof commencing on the second London Business Day immediately following that LIBOR
Interest Determination Date and in a principal amount equal to an amount of not less than $
1,000,000 that is representative for a single transaction in such market at such time;
provided, however, that if the banks selected as aforesaid by the Calculation Agent are not
quoting as mentioned in this sentence, LIBOR with respect to such LIBOR Interest
Determination Date will be the rate of LIBOR in effect on such date.

Determination of Treasury Rate:

If the Interest Rate Basis specified on the face hereof is the Treasury Rate, the interest rate
with respect to this Note for any Interest Reset Date shall be the Treasury Rate plus or minus the
Spread, if any, and/or multiplied by the Spread Multiplier, if any, as specified on the face
hereof, as determined on the applicable Interest Determination Date.

“Treasury Rate” means, with respect to any Interest Determination Date, the rate from the auction
held on such Treasury Rate Interest Determination Date (the “Auction”) of direct obligations of the
United States (“Treasury Bills”) having the Index Maturity specified on the face hereof under the
caption “INVESTMENT RATE” on the display on Telerate on page 56 (or any other page as may replace
such page on such service) (“Telerate Page 56”) or page 57 (or any other page as may replace such
page on such service (“Telerate Page 57”) or, if not so published by 3:00 P.M., New York City time,
on the related Calculation Date, the Bond Equivalent Yield (as hereinafter defined) of the rate for
such Treasury Bills as published in H.15 Daily Update under the caption “U.S. Government
Securities/Treasury Bills/Auction High” or, if not so published by 3:00 P.M., New York City time,
on the related Calculation Date, the Bond Equivalent Yield of the auction rate of such Treasury
Bills as announced by the United States Department of Treasury. In the event that the auction rate
of Treasury Bills having the Index Maturity specified on the face hereof is not so announced by the
United States Department of the Treasury, or if no such auction is held, then the Treasury Rate
will be the Bond Equivalent Yield of the rate on such Treasury Rate Interest Determination Date of
Treasury Bills having the Index Maturity specified on the face hereof as published in H.15(519)
under the caption “U.S. Government Securities/Treasury Bills/Secondary Market” or, if not yet
published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on such
Treasury Rate Interest Determination Date of such Treasury

 

9

Bills as published in H.15 Daily Update
under the caption “U.S. Government Securities, Treasury Bills/Secondary Market.” If such rate is
not yet published in H.15(519) or H.15 Daily Update, then the Treasury Rate will be calculated by
the Calculation Agent and will be the Bond Equivalent Yield of the arithmetic mean of the secondary
market bid rates, as of approximately 3:30 P.M., New York City time, on such Treasury Rate Interest
Determination Date, of three primary United States government securities dealers (which may include
one or more of the
Agents) selected by the Calculation Agent, for the Issue of Treasury Bills with a remaining
maturity closest to the Index Maturity specified on the face hereof; provided, however, that if the
dealers so selected by the calculation Agent are not quoting as mentioned in this sentence, the
Treasury Rate determined as of such Treasury Rate Interest Determination Date will be the Treasury
Rate in effect on such Treasury Rate Interest Determination Date.

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 	 	 	 	 	 	 
	Bond Equivalent Yield

	 	=
	 	D x N
	 	x 100
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	360 – (DxM)	 	 	 	 	 	 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in
the applicable Interest Reset Period.

Determination of Prime Rate:

If the Interest Rate Basis specified on the face hereof is the Prime Rate, the interest rate with
respect to this Note for any Interest Reset Date shall be the Prime Rate plus or minus the Spread,
if any, and/or multiplied by the Spread multiplier, if any, as specified on the face hereof, as
determined on the applicable Interest Determination Date.

“Prime Rate” for each such Interest Reset Date will be determined as of the Interest Determination
Date and will be the rate as such rate is published in H.15(519) under the heading “Bank Prime
Loan” In the event that such rate is not published by 3:00 P.M., New York City time, on the related
Calculation Date, then the Prime Rate shall be the rate on such Prime Rate Interest Determination
Date as published in H.15 Daily Update opposite the caption “Bank Prime Loan”. In the event that
such rate is not published by 3:00 P.M., New York City time, on the related Calculation Date, in
either H.15(519) or H.15 Daily Update, then the Prime Rate shall be the arithmetic mean of the
rates of interest publicly announced by each bank that appears on the Reuters Screen USPRIME 1 Page
(as defined below) as such bank’s prime rate or base lending rate as in effect for such Prime Rate
Interest Determination Date. If fewer than four such rates but more than one such rate appear on

 

10

the Reuters Screen USPRIME 1 Page for such Prime Rate Interest Determination Date, the Prime Rate
shall be the arithmetic mean of the prime rates quoted on the basis of the actual number of days in
the year divided by a 360-day year as of the close of business on such Prime Rate Interest
Determination Date by three, or two if only two such rates are quoted, major money center banks in
The City of New York (which may include affiliates of certain of the Agents) selected by the
Calculation Agent. If fewer than two such rates appear on the Reuters Screen USPRIME 1 Page, the
Prime Rate will be determined by the Calculation Agent on the basis of the rates furnished in The
City of New York by three, or two if only two such rates are quoted, substitute banks or trust
companies organized and doing business under the laws of the United States, or any state thereof,
having total equity capital of at least $500 million and being subject to supervision or
examination by a federal or state banking authority, selected by the Calculation Agent to provide
such rate or rates; provided, however, that if fewer than two such substitute banks or trust
companies selected as aforesaid are quoting as mentioned in this sentence,
the Prime Rate determined as of such Prime Rate Interest Determination Date shall be the Prime Rate
in effect on such Prime Rate Interest Determination Date.

“Reuters Screen USPRIME 1 Page” means the display on the Reuters Monitor Money Rates Service on the
“USPRIME 1” page (or such other page as may replace the Reuters Screen USPRIME 1 Page on that
service for the purpose of displaying prime rates or base lending rates of major United States
banks).

Determination of CMT Rate:

If the Interest Rate Basis specified on the face hereof is the CMT Rate, the interest rate with
respect to this Note for any Interest Reset Date shall be the CMT Rate plus or minus the Spread, if
any, and/or multiplied by the Spread Multiplier, if any, as specified on the face hereof, as
determined on the applicable Interest Determination Date.

“CMT Rate” means, with respect to any Interest Determination Date, the rate displayed on the
Designated CMT Telerate Page (as defined below) under the caption “... Treasury Constant Maturities
 ... Federal Reserve Board Release H.15 ... Mondays Approximately 3:45 P.M.,” under the column for
the Designated CMT Maturity Index (as defined below) for (i) if the Designated CMT Telerate Page is
7051, the rate on such Interest Determination Date and (ii) if the Designated CMT Telerate Page is
7052, the week, or the month, as applicable, ended immediately preceding the week in which the
applicable Interest Determination Date occurs. If such rate is no longer displayed on the relevant
page, or if not displayed by 3:00 P.M., New York City time, on the Calculation Date pertaining to
such Interest Determination Date, then the CMT Rate for such Interest Determination Date will be
such treasury constant maturity rate for the Designated CMT Maturity Index as published in the
relevant H.15(519). If such rate is no longer published, or if not published by 3:00 P.M., New
York City time, on the Calculation Date pertaining to such Interest Determination Date, then the
CMT Rate for such Interest Determination Date will be such treasury constant maturity rate for the
Designated CMT Maturity Index (or other United States Treasury rate for the Designated CMT Maturity
Index) for the Interest Determination Date with respect to such Interest Reset Date as may then be
published by either the Federal Reserve Board or the United States Department of the Treasury that
the Calculation Agent determines to be comparable to the rate formerly displayed on the Designated
CMT Telerate Page and published in the relevant H.15(519). If such information is not provided by
3:00 P.M., New York City time, on the Calculation Date pertaining to such Interest Determination
Date, then the CMT Rate for the Interest Determination Date will be calculated by the Calculation
Agent and will be a yield to maturity, based on the arithmetic mean of the secondary market closing
offer side prices as of approximately 3:30 P.M., New York City time, on the Interest Determination
Date reported, according to their written records, by three leading primary United States
government securities

 

 

11

dealers (each, a “Reference Dealer”) in The City of New York selected by the Calculation Agent
(from five such Reference Dealers selected by the Calculation Agent and eliminating the highest
quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the
event of equality, one of the lowest)), for the most recently issued direct noncallable fixed rate
obligations of the United States (“Treasury Notes”) with an original maturity of approximately the
Designated CMT Maturity Index and a remaining term to maturity of not less than such Designated CMT
Maturity Index minus one year. If the Calculation Agent cannot obtain three such Treasury Note
quotations, the CMT Rate for such Interest Determination Date will be calculated by the Calculation
Agent and will be a yield to maturity based on the arithmetic mean of the secondary market offer
side prices as of approximately 3:30 P.M., New York City time, on the Interest Determination Date
of three Reference Dealers in The City of New York (from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of equality, one of
the highest) and the lowest quotation (or, in the event of equality, one of the lowest)), for
Treasury Notes with an original maturity of the number of years that is the next highest to the
Designated CMT Maturity Index and a remaining term to maturity closest to the Designated CMT
Maturity Index and in an amount of at least $100,000,000. If three or four (and not five) of such
Reference Dealers are quoting as described above, then the CMT Rate will be based on the arithmetic
mean of the offer prices obtained and neither the highest nor the lowest of such quotes will be
eliminated; provided however, that if fewer than three Reference Dealers selected by the
Calculation Agent are quoting as described herein, the CMT Rate will be the CMT Rate in effect on
such Interest Determination Date. If two Treasury Notes with an original maturity as described in
the third preceding sentence, have remaining terms to maturity equally close to the Designated CMT
Maturity Index, the quotes for the CMT Rate Note with the shorter remaining term to maturity will
be used.

“Designated CMT Telerate Page” means the display on the Dow Jones Telerate Service on the page
specified on the face hereof (or any other page as may replace such page on that service for the
purpose of displaying Treasury Constant Maturities as published in H.15(519)) for the purpose of
displaying Treasury Constant Maturities as published in H.15(519). If no such page is specified on
the face hereof, the Designated CMT Telerate Page shall be 7052, for the most recent week.

“Designated CMT Maturity Index” means the original period to maturity of the Treasury Notes
specified on the face hereof, with respect to which the CMT Rate will be calculated. If no such
maturity is specified on the face hereof, the Designated CMT Maturity Index shall be two years.

General

Notwithstanding the determination of the interest rate as provided above, the interest rate on this
Note for any interest period shall not be greater than the Maximum Interest Rate, if any, and/or
less than the Minimum Interest Rate, if any, specified on the face hereof. The interest rate on
this Note will in no event be higher than the maximum rate permitted under applicable state law as
the same may be modified by United States law of general application.

The Calculation Agent will, upon the request of the beneficial owner of this Note, provide the
interest rate then in effect and, if determined, the interest rate which will become effective as a
result of a determination made with respect to the most recent Interest Determination Date with

 

12

respect to this Note. Unless changed by the Bank, in its sole discretion, the Fiscal and Paying
Agent will act as Calculation Agent for this Note and thereafter the Calculation Agent shall be
such agent as selected by the Bank. The Bank shall notify the Registered Holder and the Depository
Trust Company of any change in Calculation Agent.

The Interest Determination Date pertaining to an Interest Reset Date will be the second Business
Day preceding such Interest Reset Date for all Notes other than Notes with an Interest Reset Basis
of LIBOR or the Treasury Rate. If the Interest Rate Basis specified on the face hereof is LIBOR,
the Interest Determination Date pertaining to an Interest Reset Date will be the second London
Business Day next preceding such Interest Reset Date. If the Interest Rate Basis specified on the
face hereof is the Treasury Rate, the Interest Determination Date pertaining to an Interest Reset
Date will be the day of the week in which such Interest Reset Date falls on which Treasury Bills
would normally be auctioned (generally, Monday). If as the result of a legal holiday, an auction
is held on the preceding Friday, such Friday will be the Interest Determination Date pertaining to
the Interest Reset Date occurring in the next succeeding week. If an auction date shall fall on
any Interest Reset Date for a Treasury Rate Note, then such Interest Reset Date shall instead be
the first Business Day immediately following such auction.

All dollar amounts used in or resulting from any calculation will be rounded to the nearest cent
with one-half cent being rounded upward. Unless otherwise specified herein, all percentages
resulting from any calculation will be rounded, if necessary, to the nearest one-hundred thousandth
of a percent, with five one-millionths of a percent rounded upwards, e.g., 9.876545% (or .09876545)
being rounded to 9.87655% (or .0987655) and 9.876544% (or .09876544) being rounded to 9.87654% (or
 .0987654).

The “Calculation Date”, where applicable, pertaining to an Interest Determination Date is the
earlier of (i) the tenth calendar day after such Interest Determination Date, or if such day is not
a Business Day, the next succeeding Business Day or (ii) the Business Day immediately preceding the
applicable Interest Payment Date or Stated Maturity, as the case may be.

The Notes of this series are issuable only in registered form without coupon in denominations of
$250,000 and integral multiples of $1,000 in excess thereof (each an “Authorized Denomination”).

 

13

This Note may be subject to repayment at the option of the Registered Holder hereof on the
Repayment Date(s) indicated on the face hereof. If no such date is set forth on the face hereof,
this Note may not be so repaid at the option of the Registered Holder hereof prior to Stated
Maturity. On each Repayment Date, if any, this Note shall be repayable in whole or in part in
increments of $1,000 (provided that any remaining principal hereof shall be at least $250,000) at
the option of the Registered Holder hereof at a repayment price equal to l00% of the principal
amount to be repaid, or if this Note is an Original Issue Discount Note (as specified on the face
hereof), the applicable Repayment Price specified on the face hereof, together in the case of any
such repayment with interest thereon payable to the Repayment Date, but interest installments due
prior to the Repayment Date will be payable to the Registered Holder on the relevant Regular Record
Date or special record date. For this Note to be repaid in whole or in part at the option of the
Registered Holder hereof, the Fiscal and Paying Agent must receive, at its address set forth below,
not more than 45, nor less than 30, days prior to an Repayment Date, if any, either (i) this Note
accompanied by the form entitled “Option to Elect Repayment” below duly completed, or (ii) a
facsimile transmission or letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or trust company in the United States
of America setting forth the name of the Registered Holder, the principal amount of the Note, the
principal amount of the Note to be repaid, the certificate number or a description of the tenor and
terms of the Note, a statement that the option to elect repayment is being exercised thereby and a
guaranty that the Note to be repaid with the form entitled “Option to Elect Repayment” on the Note
duly completed will be received by the Fiscal and Paying Agent not later than five Business Days
after the date of such facsimile transmission or letter and such Note and form duly completed are
received by the Fiscal and Paying Agent by such fifth Business Day. Exercise of such repayment
option by the Registered Holder hereof shall be irrevocable, except a Registered Holder tendering
after receipt of a notice of an extension of maturity.

If so provided on the face of this Note, this Note may be redeemed by the Bank on any Redemption
Date (or range of Redemption Dates) so indicated on the face hereof. If no Redemption Date (or
range of Redemption Dates) is set forth on the face hereof, this Note may not be redeemed prior to
its Stated Maturity. If one or more Redemption Dates (or ranges of Redemption Dates) are so
specified, this Note is subject to redemption at the option of the Bank, upon notice to the
Registered Holder at its address in the Note Registers of the Fiscal and Paying Agent by
first-class mail, not less than 30 nor more than 45 days prior to the Redemption Date specified in
such notice, at the applicable redemption price specified on the face hereof (expressed as a
percentage of the principal amount of this Note) together in the case of any such redemption with
accrued interest to the Redemption Date, but interest installments due will be payable to the
Registered Holder on the relevant Regular Record Date if the Redemption Date is an Interest Payment
Date. The Bank may elect to redeem less than the entire principal amount hereof; provided, that
the principal amount, if any, of this Note that remains outstanding after such redemption is an
Authorized Denomination. In the event of any redemption in part, the Bank will not be required to
(i) issue, register the transfer of, or exchange any Note during a period beginning at the opening
of business 15 days before the day of the mailing of the notice of redemption of Notes selected for
redemption and ending at the close of business on the date of mailing of the relevant notice of
redemption or (ii) register the transfer or exchange of any Note, or any portion thereof, called
for redemption, except the unredeemed portion of any Note being redeemed in part.

 

14

IN WITNESS WHEREOF, the Bank has caused this Note to be duly executed and countersigned as of the
date set forth herein.

This Note is not valid for any purpose until countersigned by the Fiscal and Paying Agent or such
other institution as may be appointed by the Bank and the certificate of authentication affixed
hereon.

	 	 	 
	Countersigned for

	 	[INSERT NAME OF ISSUING BANK]
	authentication only
	 	 
	THE BANK OF NEW YORK TRUST COMPANY,
	 	 
	N.A., AS FISCAL AND PAYING AGENT
	 	 

	 	 	 	 	 	 	 
	By

	 	 	 	By	 	 
	 

	 	 
	 	 	 	 
	 

	 	Authorized Signature
	 	 	 	Authorized Signature

 

15

OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request(s) and instruct(s) the Bank to repay the within Note (or
portion thereof specified below) pursuant to its terms at a price equal to the Repayment Price,
together with interest to the repayment date, to the undersigned, at

 

 

(Please print or typewrite name and address of the Undersigned)

For this Note to be repaid the Fiscal and Paying Agent must receive at its Corporate Trust Office,
located at [           ], Attention: [           ], or at such other place or places of which the Bank shall from time
to time notify the Holder of the within Note, not more than 45, nor less than 30, days prior to an
Optional Repayment Date, if any, shown on the face of the within Note, either (i) this Note with
this “Option to Elect Repayment” form duly completed, or (ii) a telegram, telex, facsimile
transmission or letter from a member of a national securities exchange or the National Association
of Securities Dealers, Inc. or a commercial bank or trust company in the United States of America
setting forth the name of the Registered Holder of the Note, the principal amount of the Note, the
principal amount of the Note to be repaid, the certificate number or a description of the tenor and
terms of the Note, a statement that the option to elect repayment is being exercised thereby and a
guaranty that the Note to be repaid with this form entitled “Option to Elect Repayment” duly
completed will be received by the Fiscal and Paying Agent not later than five Business Days after
the date of such telegram, telex, facsimile transmission or letter and such Note and form duly
completed are received by the Fiscal and Paying Agent by such fifth Business Day.

If less than the entire principal amount of the within Note is to be repaid, specify the portion
thereof (which shall be increments of $1,000) which the Holder elects to have repaid: $                    ; and
specify the denomination or denominations (which shall be $250,000 or an integral multiple of
$1,000 in excess of $250,000) of the Notes to be reissued to the Holder for the portion of the
within Note not being repaid (in the absence of any such specification, one such Note will be
issued for the portion not being repaid): $                     .

	 	 	 
	Date:                                        

	 	 

Note: The signature on this Option to Elect Repayment
must correspond with the name as written upon the face of this
Note in every particular without alteration or enlargement.

 

16

 

ABBREVIATIONS

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

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

	 	 	 	 	 
	 	 	TEN COM – as tenants in common
	 
	 	 	 	 
	 	 	TEN ENT – as tenants by the entireties
	 
	 	 	 	 
	 	 	JT ENT – as joint tenants with right of survivorship and not as tenants in common
	 
	 	 	 	 
	 

	 	UNIF TRANS MIN F	 	 
	 

	 	 	 
	 

	 	 	(Cust)	 (Minor)                
	 
	 	 	 	 
	 

	 	 	 	Custodian under Uniform Transfer to Minors Act
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	                                                            (State)

Additional abbreviations may 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 Note, and all rights thereunder, hereby irrevocably constituting and appointing

 

to transfer said Note on the books of the within Bank, with full power of substitution in the premises.

	 	 	 
	Dated:                                         
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular, without alteration or enlargement or any change whatever and
must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Fiscal
and Paying Agent, which requirements include membership or participation in
STAMP or such other “signature guaranty program” as may be determined by the Fiscal and Paying
Agent in addition to or in substitution for STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

EXHIBIT B-2 TO

FISCAL AND PAYING

AGENCY AGREEMENT

(Medium-Term Floating)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE 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 THE 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 CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER OR EXCHANGE AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY
PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

[SENIOR NOTE: THIS BANK NOTE IS A DIRECT, UNCONDITIONAL, UNSECURED AND UNSUBORDINATED GENERAL
OBLIGATION OF THE BANK. THE OBLIGATION EVIDENCED BY THIS BANK NOTE RANKS PARI PASSU WITH ALL OTHER
UNSECURED AND UNSUBORDINATED OBLIGATIONS OF THE BANK, EXCEPT OBLIGATIONS, INCLUDING DEPOSITS, THAT
ARE SUBJECT TO ANY PRIORITIES OR PREFERENCES UNDER APPLICABLE LAW.]

[SUBORDINATED NOTE: THE OBLIGATION EVIDENCED BY THIS BANK NOTE IS AN OBLIGATION OF THE BANK AND IS
SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND GENERAL CREDITORS OF THE BANK, IS INELIGIBLE AS
COLLATERAL FOR A LOAN BY THE BANK AND IS NOT SECURED.]

THIS BANK NOTE DOES NOT EVIDENCE A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY.

THIS BANK NOTE MUST BE SOLD IN MINIMUM DENOMINATIONS OF $250,000 AND IS NOT EXCHANGEABLE FOR NOTES
IN SMALLER DENOMINATIONS.

	 	 	 
	REGISTERED

	 	REGISTERED
	 
	 	 
	No. FLR.                                         
	 	 
	 
	 	 
	CUSIP                                         
	 	 

 

2

FLOATING RATE NOTE

[INSERT NAME OF THE ISSUING BANK]

	 	 	 
	ORIGINAL ISSUE DATE:

	 	STATING MATURITY:
	 
	 	 
	INITIAL INTEREST RATE:

	 	SPREAD:
	 
	 	 
	INDEX MATURITY:

	 	SPREAD MULTIPLIER:
	 
	 	 
	INTEREST RATE BASIS:

	 	REGULAR RECORD DATES:
	 
	 	 
	MAXIMUM INTEREST RATE:

	 	INTEREST PAYMENT DATES:
	 
	 	 
	MINIMUM INTEREST RATE:

	 	INTEREST DETERMINATION DATES:
	 
	 	 
	INTEREST RESET DATES:

	 	CALCULATION DATE:
	 
	 	 
	REPAYMENT DATE(S):

	 	REDEMPTION DATES:
	 
	 	 
	REPAYMENT PRICE:

	 	REDEMPTION PRICE:
	 
	 	 
	OTHER REPAYMENT TERMS:

	 	OTHER REDEMPTION TERMS:
	 
	 	 
	OTHER TERMS:
	 	 
	 
	 	 
	ORIGINAL ISSUE DISCOUNT NOTE:
	 	 

	 	 	 	 	 
	Yes

	 	No
	 	 
	o

	 	o	 	 

If this Note was issued with “original issue discount” for purposes of Section 1273 of the Internal
Revenue Code of 1986, as amended, the following shall be completed:

	 	 	 	 	 	 	 
	 	 	TOTAL AMOUNT OF:

OID:	 	ISSUE PRICE (expressed as a
percentage of aggregate principal
amount):
	 
	 	 	 	 	 	 
	YIELD TO MATURITY:

(compounded _______)	 	SHORT ACCRUAL

PERIOD OID:	 	METHOD USED TO DETERMINE

YIELD FOR SHORT ACCRUAL PERIOD:
	 
	 	 	 	 	 	 
	 

	 	 	 	Approximate
	 	Exact
	 

	 	 	 	o
	 	o

[insert name of the Issuing Bank] (the “Bank”, which term includes any successor thereof) for value
received, hereby promises to pay the sum of                      U.S. dollars ($                    ) to CEDE & CO. (the “Registered
Holder”) as nominee of The Depository Trust Company (“DTC”) as custodian for participants each
acting for themselves and as nominee or custodian for others,

 

  3

including trusts, pension and retirement plans and accounts, fiduciaries, custodians and nominees
(the “Participants”) on the Stated Maturity and to pay interest on a regular periodic basis as
specified herein.

Interest on this Note shall be payable monthly, quarterly, semiannually, or annually on each
Interest Payment Date specified herein and on the Stated Maturity specified herein at a rate per
annum equal to the Initial Interest Rate specified herein until the first Interest Reset Date
specified herein following the Original Issue Date specified herein and thereafter at a rate
determined in accordance with the provisions herein under the heading(s) “Determination of
Commercial Paper Rate”, “Determination of CD Rate”, “Determination of Fed Funds Rate”,
“Determination of LIBOR”, “Determination of Treasury Rate”, “Determination of Prime Rate” or
“Determination of CMT Rate”, depending upon whether the Interest Rate Basis is Commercial Paper
Rate, CD Rate, Fed. Funds Rate, LIBOR, Treasury Rate, Prime Rate, CD Rate, CMT Rate, to the person
in whose name this Note is registered at the close of business on the Regular Record Date whether
or not a Business Day (as defined herein); provided, however, that if the Original
Issue Date is between a Regular Record Date and an Interest Payment Date, interest payments will
commence on the Interest Payment Date following the next succeeding Regular Record Date; and
provided, further, that if an Interest Payment Date or Interest Reset Date would
fall on a day that is not a Business Day, such Interest Payment Date or Interest Reset Date shall
be the following day that is a Business Day, except that if the Interest Rate Basis is LIBOR, where
such following Business Day falls in the next calendar month, such Interest Payment Date or
Interest Reset Date shall be the next preceding day that is a Business Day. “Business Day” means
any day that is not a Saturday or Sunday and that is not a day on which banking institutions are
authorized or obligated by law or executive order to close in the City of New York, New York and
the City of Green Bay, Wisconsin; or with respect to LIBOR Notes, is also a London Business Day.
“London Business Day” means any day on which dealings in deposits in U.S. dollars are transacted in
the London interbank market.

Principal, premium, if any, and interest payments on Notes will be paid in immediately available
funds to the Registered Holder.

The Registered Holder may declare the principal amount of, and accrued interest on, this Note to be
due and payable immediately if an Event of Default with respect to this Note shall have occurred
and be continuing at the time of such declaration. Any Event of Default with respect to this Note
may be waived by the Registered Holder.

[Senior Notes: For purposes of this Note, an “Event of Default” shall mean any one of the following
events:

	 	(1)	 	default in the payment of any interest upon the Note when it becomes
due and payable, and continuance of such default for a period of 30 days; or
	 
	 	(2)	 	default in the payment of the principal of (or premium, if any, on) the
Note when due; or
	 
	 	(3)	 	default in the performance of any covenant or agreement of the Bank
contained in the Note which continues for 60 days after receipt of written notice
given by

 

4

	 	 	 	the Registered Holder hereof; or
	 
	 	(4)	 	the Bank shall consent to the appointment of a conservator or receiver
or liquidator or trustee or other similar official in any insolvency, receivership,
liquidation, readjustment of debt, marshaling of assets and liabilities or similar
proceedings of or relating to the Bank or of or relating to all or substantially
all of its property; or a decree or order of a court or agency or supervisory
authority having jurisdiction in the premises for the appointment of a conservator
or receiver or liquidator or trustee or other similar official in any insolvency,
receivership, liquidation, readjustment of debt, marshaling of assets and
liabilities or similar proceedings, or for the winding-up or liquidation of its
affairs, shall have been entered against the Bank and such decree or order shall
have remained in force undischarged or unstayed for a period of 60 consecutive
days; or the Bank shall file a petition to take advantage of any applicable
insolvency or reorganization statute.]

[Subordinated Notes: For purposes of this Note, an “Event of Default” shall occur if the Bank
shall consent to the appointment of a conservator or receiver or liquidator or trustee or other
similar official in any insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings of or relating to the Bank or of or relating to all or substantially all of its
property; or a decree or order of a court or agency or supervisory authority having jurisdiction in
the premises for the appointment of a conservator or receiver or liquidator or trustee or other
similar official in any insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered
against the Bank and such decree or order shall have remained in force undischarged or unstayed for
a period of 60 consecutive days; or the Bank shall file a petition to take advantage of any
applicable insolvency or reorganization statute.

The holder of this Note, by its acceptance hereof, agrees that the indebtedness of the Bank
evidenced by this Note, including the principal, premium, if any, and interest, is unsecured and
subordinate and junior in right of payment to the Bank’s obligations to its depositors, its
obligations under banker’s acceptances and letters of credit, and its obligations to its other
creditors (including any obligations to any Federal Reserve Bank and the FDIC ), whether
outstanding at the time this Note is issued or thereafter incurred (except any obligations which by
their express terms rank on a parity with or junior to this Note), and that in the case of any
insolvency proceedings, receivership, conservatorship, reorganization, readjustment of debt,
marshaling of assets and liabilities or similar proceedings or any liquidation or winding up of or
relating to the Bank, whether voluntary or involuntary, all such obligations (except obligations
which rank on parity with or junior to this Note) shall be entitled to be paid in full before any
payment shall be made on account of the principal of, premium, if any, or interest on this Note.
In the event of any such proceeding, after payment in full of all sums owing with respect to such
prior obligations, the holder of this Note, together with the holders of any obligations of the
Bank ranking on a parity with this Note, shall be entitled to be paid pro rata from the remaining
assets of the Bank the unpaid principal of, the unpaid premium, if any, and the unpaid interest on,
this Note or such other obligations before any payment or other distribution, whether in cash,
property, or

 

5

otherwise, shall be made on account of any capital stock or any obligations of the Bank ranking
junior to this Note.

This Note contains no limitation on the amount of senior debt, deposits or other obligations that
rank senior to this Note that maybe hereafter incurred or assumed by the Bank.]

All notices to the Bank under this Note shall be in writing and addressed to the Fiscal and Paying
Agent at [            ], Attention: [           ], or to such other address as the Bank may notify the Registered
Holder.

This Note shall be governed by and construed in accordance with the laws of the State of New York.
No interest will accrue on this Note after its maturity.

Interest:

Interest payable with respect to each interest payment period shall accrue to but not include the
applicable Interest Payment Date or the Stated Maturity, as the case may be. Accrued interest
hereon from the Issue Date or from the last date to which interest shall have been paid, as the
case may be, shall be an amount calculated by multiplying the face amount hereof by an accrued
interest factor. Such accrued interest factor shall be computed by adding the interest factors
calculated for each day from the Original Issue Date or from the last date to which interest shall
have been paid, as the case may be, to the date for which accrued interest is being calculated.
The interest factor for each such day shall be computed by dividing the interest rate applicable to
such day by 360 if the Interest Rate Basis is the Commercial Paper Rate, CD Rate, Fed Funds Rate,
LIBOR or Prime Rate, as indicated herein, or by the actual number of days in the year if the
Interest Rate Basis is the Treasury Rate or CMT Rate, as indicated herein.

The rate of interest borne by this Note will be reset daily, weekly, monthly, quarterly,
semiannually or annually, as specified above. The “Interest Reset Date” will be the date specified
above; provided, however, that the interest rate in effect from the Original Issue
Date to the first Interest Reset Date will be the “Initial Interest Rate” (as specified herein).
Each such adjusted rate shall be applicable on and after the Interest Reset Date to which it
relates, to, but not including, the next succeeding Interest Reset Date, or until the Stated
Maturity, as the case may be. If any Interest Reset Date would otherwise be a day that is not a
Business Day, such Interest Reset Date shall be postponed to the next succeeding day that is a
Business Day, except that in the case of a LIBOR Note, where such following Business Day is in the
next succeeding calendar month, such Interest Reset Date shall be the immediately preceding
Business Day.

Determination of Commercial Paper Rate:

If the Interest Rate Basis specified on the face hereof is the Commercial Paper Rate, the interest
rate with respect to this Note for any Interest Reset Date shall be the Commercial Paper Rate plus
or minus the Spread, if any, and/or multiplied by the Spread Multiplier, if any, as specified on
the face hereof, as determined on the applicable Interest Determination Date.

“Commercial Paper Rate” means, with respect to any Interest Determination Date, the Money Market
Yield (as defined below) on such date of the rate quoted on a discount basis for

 

6

commercial paper having the Index Maturity specified on the face hereof as published in H.15(519)
under the heading “Commercial Paper-Nonfinancial.” In the event that such rate is not published by
3:00 P.M., New York City time, on the Calculation Date pertaining to such Commercial Paper Interest
Determination Date, then the Commercial Paper Rate shall be the Money Market Yield on such
Commercial Paper Interest Determination Date of the rate of commercial paper of the specified Index
Maturity as published in H.15 Daily Update (as hereinafter defined) under the heading “Commercial
Paper-Nonfinancial” (with an Index Maturity of one month or three months being deemed to be
equivalent to an Index Maturity of 30 days or 90 days, respectively). If such rate is published
neither in H.15(519) nor in H.15 Daily Update by 3:00 P.M., New York City time, on such Calculation
Date, the Commercial Paper Rate for that Commercial Paper Interest Determination Date shall be
calculated by the Calculation Agent and shall be the Money Market Yield of the arithmetic mean of
the offered rates as of 11:00 A.M., New York City time, on that Commercial Paper Interest
Determination Date, of three leading dealers of commercial paper in The City of New York selected
by the Calculation Agent for commercial paper of the specified Index Maturity placed for an
industrial issuer whose senior unsecured bond rating is “AA,” or the equivalent, from a nationally
recognized securities rating agency; provided, however, that if the dealers selected as aforesaid
by the Calculation Agent are not quoting as mentioned in this sentence, the Commercial Paper Rate
with respect to such Commercial Paper Interest Determination Date will be the Commercial Paper Rate
in effect on such date.

“H.15 Daily Update” means the daily update of H.15(519), available through the world-wide-web site
of the Board of Governors of the Federal Reserve System at
http://www.bog.frb.fed.us/releases/h15/update, or any successor site or publication.

“Money Market Yield” shall be a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 
	Money Market Yield =

	 	D x 360
	 	x 100
	 

	 	 	 	 
	 

	 	360 – (D x M)	 	 

where “D” refers to the per annum rate for commercial paper quoted on a bank discount basis and
expressed as a decimal and “M” refers to the actual number of days in the interest period for which
interest is being calculated.

Determination of CD Rate:

If the Interest Rate Basis specified on the face hereof is the CD Rate, the interest rate with
respect to this Note for any Interest Reset Date shall be the CD Rate plus or minus the Spread, if
any, and/or multiplied by the Spread Multiplier, if any, as specified on the face hereof, as
determined on the applicable Interest Determination Date.

“CD Rate” means, with respect to any Interest Determination Date, the rate on such date for
negotiable certificates of deposit having the Index Maturity specified on the face hereof as
published in H.15(519) under the heading “CDs (Secondary Market)”. In the event that such rate is
not so published before 3:00 P.M., New York City time, on the Calculation Date pertaining to

 

7

such CD Interest Determination Date, the CD Rate will be the rate on such CD Interest Determination
Date for negotiable certificates of deposit having the Index Maturity specified on the face hereof
as published in H.15 Daily Update, under the caption “CDs (Secondary Market).” If such rate is
published neither in H.15(519) nor H.15 Daily Update by 3:00 P.M., New York City time, on such
Calculation Date, the CD Rate for such CD Interest Determination Date will be calculated by the
Calculation Agent and will be the arithmetic mean of the secondary market offered rates as of 10:00
A.M., New York City time, on such CD Interest Determination Date, of three leading nonbank dealers
of negotiable U.S. dollar certificates of deposit in The City of New York (which may include one or
more of the Agents) selected by the Calculation Agent for negotiable certificates of deposit in a
denomination of $5,000,000 of the four highest rated banks (as rated by two nationally recognized
rating agencies) of the 25 largest United States banks ranked by asset size based on the most
recent year-end survey published in The American Banker (or a comparable publication) with a
remaining maturity closest to the Index Maturity specified on the face hereof; provided, however,
that if the dealers selected as aforesaid by the Calculation Agent are not quoting as mentioned in
this sentence, the CD Rate determined on such CD Interest Determination Date will be the CD Rate in
effect on such date.

Determination of Fed Funds Rate:

If the Interest Rate Basis specified on the face hereof is the Fed Funds Rate, the interest rate
with respect to this Note for any Interest Reset Date shall be the Fed Funds Rate plus or minus the
Spread, if any, and/or multiplied by the Spread Multiplier, if any, as specified on the face
hereof, as determined on the applicable Interest Determination Date.

“Fed Funds Rate” means, with respect to any Interest Determination Date, the rate on such date for
Federal Funds having the Index Maturity as specified on the face hereof as published in H.15(519)
under the heading “Federal Funds (Effective)”, as such rate is displayed on Telerate Page 120. In
the event that such rate does not appear on Telerate Page 120 or is not published by 3:00 P.M., New
York City time, on the Calculation Date pertaining to such Fed Funds Interest Determination Date,
the Fed Funds Rate will be the rate on such Fed Funds Interest Determination Date for Federal Funds
having the specified Index Maturity as published in H.15 Daily Update under the heading “Federal
Funds (Effective Rate).” If by 3:00 P.M., New York City time, on the Calculation Date pertaining to
such Fed Funds Interest Determination Date such rate does not appear on Telerate Page 120 or is not
yet published in either H.15(519) or H.15 Daily Update, then the Fed Funds Rate on such Fed Funds
Interest Determination Date will be calculated by the Calculation Agent and will be the arithmetic
mean of the rates as of 9:00 A.M. New York City time, on such Fed Funds Interest Determination Date
for the last transaction in overnight Federal Funds arranged by three leading brokers of Federal
Funds transactions in The City of New York selected by the Calculation Agent; provided, however,
that if the brokers selected as aforesaid by the Calculation Agent are not quoting as mentioned in
this sentence, the Fed Funds Rate with respect to such Fed Funds Interest Determination Date will
be the Fed Funds Rate in effect on such date.

Determination of LIBOR:

 

8

If the Interest Rate Basis specified on the face hereof is LIBOR, the interest rate with respect to
this Note for any Interest Reset Date shall be LIBOR plus or minus the Spread, if any, and/or
multiplied by the Spread Multiplier, if any, as specified on the face hereof, as determined on the
applicable Interest Determination Date.

“LIBOR” will be determined by the Calculation Agent in accordance with the following provisions:

     (a) LIBOR will be either the rate for deposits in U.S. dollars having the Index
Maturity designated on the face hereof commencing on the second London Business Day
immediately following that LIBOR Interest Determination Date, that appears on the Telerate
Page 3750, as of 11:00 A.M., London time, on that LIBOR Interest Determination Date (“LIBOR
Telerate”) or (ii) the arithmetic mean of the offered rates for deposits in U.S. dollars
having the Index Maturity designated on the face hereof, commencing on the second London
Business Day immediately following that LIBOR Interest Determination Date, that appear on
the Reuters Screen LIBO Page as of 11:00 A.M., London time, on that LIBOR Interest
Determination Date, if at least two such offered rates appear on the Reuters Screen LIBO
Page (“LIBOR Reuters”). “Telerate Page 3750” means the display designated as page “3750” on
the Telerate Service (or such other page as may replace the 3750 page on that service or
such other service or services as may be nominated by the British Bankers’ Association for
the purpose of displaying London interbank offered rates for U.S. dollar deposits).
“Reuters Screen LIBO Page” means the display designated as page “LIBO” on the Reuters
Monitor Money Rates Service (or such other page as may replace the LIBO page on that service
for the purpose of displaying London interbank offered rates of major banks). If neither
LIBOR Telerate nor LIBOR Reuters is specified on the face hereof, LIBOR will be determined
as if LIBOR Telerate had been specified. If no rate appears on the Telerate Page 3750, or
if fewer than two offered rates appear on the Reuters Screen LIBO Page, as applicable, LIBOR
in respect of that LIBOR Interest Determination Date will be determined as if the parties
had specified the rate described in (b) below.

     (b) With respect to a LIBOR Interest Determination Date on which no rate appears on
Telerate Page 3750, as specified in (a)(i) above, or on which fewer than two offered rates
appear on the Reuters Screen LIBO Page, as specified in (a)(ii) above, as applicable, LIBOR
will be determined on the basis of the rates at which deposits in U.S. dollars having the
Index Maturity designated on the face hereof are offered at approximately 11:00 A.M., London
time, on that LIBOR Interest Determination Date by four major banks in the London interbank
market selected by the Calculation Agent (“LIBOR Reference Banks”) to prime banks in the
London interbank market commencing on the second London Business Day immediately following
that LIBOR Interest Determination Date and in a principal amount equal to an amount of not
less than $1,000,000 that is representative for a single transaction in such market at such
time. The Calculation Agent will request the principal London office of each of the LIBOR
Reference Banks to provide a quotation of its rate. If at least two such quotations are
provided, LIBOR in respect of that LIBOR Interest Determination Date will be the arithmetic
mean of such quotations. If fewer than two quotations are provided, LIBOR in

 

9

respect of that LIBOR Interest Determination Date will be the arithmetic mean of the
rates quoted at approximately 11:00 A.M., New York City time, on that LIBOR Interest
Determination Date by three major banks in The City of New York selected by the Calculation
Agent for loans in U.S. dollars to leading European banks having the Index Maturity
designated on the face hereof commencing on the second London Business Day immediately
following that LIBOR Interest Determination Date and in a principal amount equal to an
amount of not less than $1,000,000 that is representative for a single transaction in such
market at such time; provided, however, that if the banks selected as aforesaid by the
Calculation Agent are not quoting as mentioned in this sentence, LIBOR with respect to such
LIBOR Interest Determination Date will be the rate of LIBOR in effect on such date.

Determination of Treasury Rate:

If the Interest Rate Basis specified on the face hereof is the Treasury Rate, the interest rate
with respect to this Note for any Interest Reset Date shall be the Treasury Rate plus or minus the
Spread, if any, and/or multiplied by the Spread Multiplier, if any, as specified on the face
hereof, as determined on the applicable Interest Determination Date.

“Treasury Rate” means, with respect to any Interest Determination Date, the rate from the auction
held on such Treasury Rate Interest Determination Date (the “Auction”) of direct obligations of the
United States (“Treasury Bills”) having the Index Maturity specified on the face hereof under the
caption “INVESTMENT RATE” on the display on Telerate on page 56 (or any other page as may replace
such page on such service) (“Telerate Page 56”) or page 57 (or any other page as may replace such
page on such service (“Telerate Page 57”) or, if not so published by 3:00 P.M., New York City time,
on the related Calculation Date, the Bond Equivalent Yield (as hereinafter defined) of the rate for
such Treasury Bills as published in H.15 Daily Update under the caption “U.S. Government
Securities/Treasury Bills/Auction High” or, if not so published by 3:00 P.M., New York City time,
on the related Calculation Date, the Bond Equivalent Yield of the auction rate of such Treasury
Bills as announced by the United States Department of Treasury. In the event that the auction rate
of Treasury Bills having the Index Maturity specified on the face hereof is not so announced by the
United States Department of the Treasury, or if no such auction is held, then the Treasury Rate
will be the Bond Equivalent Yield of the rate on such Treasury Rate Interest Determination Date of
Treasury Bills having the Index Maturity specified on the face hereof as published in H.15(519)
under the caption “U.S. Government Securities/Treasury Bills/Secondary Market” or, if not yet
published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on such
Treasury Rate Interest Determination Date of such Treasury Bills as published in H.15 Daily Update
under the caption “U.S. Government Securities Treasury Bills/Secondary Market.” If such rate is not
yet published in H.15(519) or H.15 Daily Update, then the Treasury Rate will be calculated by the
Calculation Agent and will be the Bond Equivalent Yield of the arithmetic mean of the secondary
market bid rates, as of approximately 3:30 P.M., New York City time, on such Treasury Rate Interest
Determination Date, of three primary United States government securities dealers (which may include
one or more of the Agents) selected by the Calculation Agent, for the Issue of Treasury Bills with
a remaining maturity closest to the Index Maturity specified on the face hereof; provided, however,
that if the dealers so selected by the calculation Agent are not quoting as mentioned in this
sentence, the

 

10

Treasury Rate determined as of such Treasury Rate Interest Determination Date will be the Treasury
Rate in effect on such Treasury Rate Interest Determination Date.

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 
	Bond Equivalent Yield =

	 	D x N
	 	x 100
	 

	 	 	 	 
	 

	 	360 – (D x M)	 	 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in
the applicable Interest Reset Period.

Determination of Prime Rate:

If the Interest Rate Basis specified on the face hereof is the Prime Rate, the interest rate with
respect to this Note for any Interest Reset Date shall be the Prime Rate plus or minus the Spread,
if any, and/or multiplied by the Spread multiplier, if any, as specified on the face hereof, as
determined on the applicable Interest Determination Date.

“Prime Rate” for each such Interest Reset Date will be determined as of the Interest Determination
Date and will be the rate as such rate is published in H.15(519) under the heading “Bank Prime
Loan.” In the event that such rate is not published by 3:00 P.M., New York City time, on the
related Calculation Date, then the Prime Rate shall be the rate on such Prime Rate Interest
Determination Date as published in H.15 Daily Update opposite the caption “Bank Prime Loan”. In
the event that such rate is not published by 3:00 P.M., New York City time, on the related
Calculation Date, in either H.15(519) or H.15 Daily Update, then the Prime Rate shall be the
arithmetic mean of the rates of interest publicly announced by each bank that appears on the
Reuters Screen USPRIME 1 Page (as defined below) as such bank’s prime rate or base lending rate as
in effect for such Prime Rate Interest Determination Date. If fewer than four such rates but more
than one such rate appear on the Reuters Screen USPRIME 1 Page for such Prime Rate Interest
Determination Date, the Prime Rate shall be the arithmetic mean of the prime rates quoted on the
basis of the actual number of days in the year divided by a 360-day year as of the close of
business on such Prime Rate Interest Determination Date by three, or two if only two such rates are
quoted, major money center banks in The City of New York (which may include affiliates of certain
of the Agents) selected by the Calculation Agent. If fewer than two such rates appear on the
Reuters Screen USPRIME 1 Page, the Prime Rate will be determined by the Calculation Agent on the
basis of the rates furnished in The City of New York by three, or two if only two such rates are
quoted, substitute banks or trust companies organized and doing business under the laws of the
United States, or any state thereof, having total equity capital of at least $500 million and being
subject to supervision or examination by a federal or state banking authority, selected by the
Calculation Agent to provide such rate or rates; provided, however, that if fewer than two such
substitute banks or trust companies selected as aforesaid are quoting as mentioned in this
sentence, the Prime Rate determined as of such Prime Rate Interest Determination Date shall be the
Prime Rate in effect on such Prime Rate Interest Determination Date.

 

11

“Reuters Screen USPRIME 1 Page” means the display on the Reuters Monitor Money Rates Service on the
“USPRIME 1” page (or such other page as may replace the Reuters Screen USPRIME 1 Page on that
service for the purpose of displaying prime rates or base lending rates of major United States
banks).

Determination of CMT Rate:

If the Interest Rate Basis specified on the face hereof is the CMT Rate, the interest rate with
respect to this Note for any Interest Reset Date shall be the CMT Rate plus or minus the Spread, if
any, and/or multiplied by the Spread Multiplier, if any, as specified on the face hereof, as
determined on the applicable Interest Determination Date.

“CMT Rate” means, with respect to any Interest Determination Date, the rate displayed on the
Designated CMT Telerate Page (as defined below) under the caption “... Treasury Constant Maturities
.... Federal Reserve Board Release H.15 ... Mondays Approximately 3:45 P.M.,” under the column for
the Designated CMT Maturity Index (as defined below) for (i) if the Designated CMT Telerate Page is
7051, the rate on such Interest Determination Date and (ii) if the Designated CMT Telerate Page is
7052, the week, or the month, as applicable, ended immediately preceding the week in which the
applicable Interest Determination Date occurs. If such rate is no longer displayed on the relevant
page, or if not displayed by 3:00 P.M., New York City time, on the Calculation Date pertaining to
such Interest Determination Date, then the CMT Rate for such Interest Determination Date will be
such treasury constant maturity rate for the Designated CMT Maturity Index as published in the
relevant H.15(519). If such rate is no longer published, or if not published by 3:00 P.M., New
York City time, on the Calculation Date pertaining to such Interest Determination Date, then the
CMT Rate for such Interest Determination Date will be such treasury constant maturity rate for the
Designated CMT Maturity Index (or other United States Treasury rate for the Designated CMT Maturity
Index) for the Interest Determination Date with respect to such Interest Reset Date as may then be
published by either the Federal Reserve Board or the United States Department of the Treasury that
the Calculation Agent determines to be comparable to the rate formerly displayed on the Designated
CMT Telerate Page and published in the relevant H.15(519). If such information is not provided by
3:00 P.M., New York City time, on the Calculation Date pertaining to such Interest Determination
Date, then the CMT Rate for the Interest Determination Date will be calculated by the Calculation
Agent and will be a yield to maturity, based on the arithmetic mean of the secondary market closing
offer side prices as of approximately 3:30 P.M., New York City time, on the Interest Determination
Date reported, according to their written records, by three leading primary United States
government securities dealers (each, a “Reference Dealer”) in The City of New York selected by the
Calculation Agent (from five such Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation (or, in the event of equality, one of the highest) and the lowest
quotation (or, in the event of equality, one of the lowest)), for the most recently issued direct
noncallable fixed rate obligations of the United States (“Treasury Notes”) with an original
maturity of approximately the Designated CMT Maturity Index and a remaining term to maturity of not
less than such Designated CMT Maturity Index minus one year. If the Calculation Agent cannot
obtain three such Treasury Note quotations, the CMT Rate for such Interest Determination Date will
be calculated by the Calculation Agent and will be a yield to maturity based on the arithmetic mean
of the secondary market offer side prices as of approximately 3:30 P.M., New York City time, on

 

12

the Interest Determination Date of three Reference Dealers in The City of New York (from five such
Reference Dealers selected by the Calculation Agent and eliminating the highest quotation (or, in
the event of equality, one of the highest) and the lowest quotation (or, in the event of equality,
one of the lowest)), for Treasury Notes with an original maturity of the number of years that is
the next highest to the Designated CMT Maturity Index and a remaining term to maturity closest to
the Designated CMT Maturity Index and in an amount
 of at least $100,000,000. If three or four (and
not five) of such Reference Dealers are quoting as described above, then the CMT Rate will be based
on the arithmetic mean of the offer prices obtained and neither the highest nor the lowest of such
quotes will be eliminated; provided however, that if fewer than three Reference Dealers selected by
the Calculation Agent are quoting as described herein, the CMT Rate will be the CMT Rate in effect
on such Interest Determination Date. If two Treasury Notes with an original maturity as described
in the third preceding sentence, have remaining terms to maturity equally close to the Designated
CMT Maturity Index, the quotes for the CMT Rate Note with the shorter remaining term to maturity
will be used.

“Designated CMT Telerate Page” means the display on the Dow Jones Telerate Service on the page
specified on the face hereof (or any other page as may replace such page on that service for the
purpose of displaying Treasury Constant Maturities as published in H.15(519)) for the purpose of
displaying Treasury Constant Maturities as published in H.15(519). If no such page is specified on
the face hereof, the Designated CMT Telerate Page shall be 7052, for the most recent week.

“Designated CMT Maturity Index” means the original period to maturity of the Treasury Notes
specified on the face hereof, with respect to which the CMT Rate will be calculated. If no such
maturity is specified on the face hereof, the Designated CMT Maturity Index shall be two years.

General

Notwithstanding the determination of the interest rate as provided above, the interest rate on this
Note for any interest period shall not be greater than the Maximum Interest Rate, if any, and/or
less than the Minimum Interest Rate, if any, specified on the face hereof. The interest rate on
this Note will in no event be higher than the maximum rate permitted under applicable state law as
the same may be modified by United States law of general application.

The Calculation Agent will, upon the request of the beneficial owner of this Note, provide the
interest rate then in effect and, if determined, the interest rate which will become effective as a
result of a determination made with respect to the most recent Interest Determination Date with
respect to this Note. Unless changed by the Bank, in its sole discretion, the Fiscal and Paying
Agent will act as Calculation Agent for this Note and thereafter the Calculation Agent shall be
such agent as selected by the Bank. The Bank shall notify the Registered Holder and the Depository
Trust Company of any change in Calculation Agent.

The Interest Determination Date pertaining to an Interest Reset Date will be the second Business
Day preceding such Interest Reset Date for all Notes other than Notes with an Interest Reset Basis
of LIBOR or the Treasury Rate. If the Interest Rate Basis specified on the face hereof is LIBOR,
the Interest Determination Date pertaining to an Interest Reset Date will be the second London
Business Day next preceding such Interest Reset Date. If the Interest Rate Basis specified on the
face hereof is the Treasury Rate, the Interest Determination Date pertaining to an Interest Reset

 

13

Date will be the day of the week in which such Interest Reset Date falls on which Treasury Bills
would normally be auctioned (generally, Monday). If as the result of a legal holiday, an auction
is held on the preceding Friday, such Friday will be the Interest Determination Date pertaining to
the Interest Reset Date occurring in the next succeeding week. If an auction date shall fall on
any Interest Reset Date for a Treasury Rate Note, then such Interest Reset Date shall instead be
the first Business Day immediately following such auction.

All dollar amounts used in or resulting from any calculation will be rounded to the nearest cent
with one-half cent being rounded upward. Unless otherwise specified herein, all percentages
resulting from any calculation will be rounded, if necessary, to the nearest one-hundred thousandth
of a percent, with five one-millionths of a percent rounded upwards, e.g., 9.876545% (or .09876545)
being rounded to 9.87655% (or .0987655) and 9.876544% (or .09876544) being rounded to 9.87654% (or
..0987654).

The “Calculation Date”, where applicable, pertaining to an Interest Determination Date is the
earlier of (i) the tenth calendar day after such Interest Determination Date, or if such day is not
a Business Day, the next succeeding Business Day or (ii) the Business Day immediately preceding the
applicable Interest Payment Date or Stated Maturity, as the case may be.

The Notes of this series are issuable only in registered form without coupon in denominations of
$250,000 and integral multiples of $1,000 in excess thereof (each an “Authorized Denomination”).

This Note may be subject to repayment at the option of the Registered Holder hereof on the
Repayment Date(s) indicated on the face hereof. If no such date is set forth on the face hereof,
this Note may not be so repaid at the option of the Registered Holder hereof prior to Stated
Maturity. On each Repayment Date, if any, this Note shall be repayable in whole or in part in
increments of $1,000 (provided that any remaining principal hereof shall be at least $250,000) at
the option of the Registered Holder hereof at a repayment price equal to 100% of the principal
amount to be repaid, or if this Note is an Original Issue Discount Note (as specified on the face
hereof), the applicable Repayment Price specified on the face hereof, together in the case of any
such repayment with interest thereon payable to the Repayment Date, but interest installments due
prior to the Repayment Date will be payable to the Registered Holder on the relevant Regular Record
Date or special record date. For this Note to be repaid in whole or in part at the option of the
Registered Holder hereof, the Fiscal and Paying Agent must receive, at its address set forth below,
not more than 45, nor less than 30, days prior to an Repayment Date, if any, either (i) this Note
accompanied by the form entitled “Option to Elect Repayment” below duly completed, or (ii) a
facsimile transmission or letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or trust company in the United States
of America setting forth the name of the Registered Holder, the principal amount of the Note, the
principal amount of the Note to be repaid, the certificate number or a description of the tenor and
terms of the Note, a statement that the option to elect repayment is being exercised thereby and a
guaranty that the Note to be repaid with the form entitled “Option to Elect Repayment” on the Note
duly completed will be received by the Fiscal and Paying Agent not later than five Business Days
after the date of such facsimile transmission or letter and such Note and form duly completed are
received by the Fiscal and Paying Agent by such fifth Business Day.

 

14

Exercise of such repayment option by the Registered Holder hereof shall be irrevocable, except a
Registered Holder tendering after receipt of a notice of an extension of maturity.

If so provided on the face of this Note, this Note may be redeemed by the Bank on any Redemption
Date (or range of Redemption Dates) so indicated on the face hereof. If no Redemption Date (or
range of Redemption Dates) is set forth on the face hereof, this Note may not be redeemed prior to
its Stated Maturity. If one or more Redemption Dates (or ranges of Redemption Dates) are so
specified, this Note is subject to redemption at the option of the Bank, upon notice to the
Registered Holder at its address in the Note Registers of the Fiscal and Paying Agent by
first-class mail, not less than 30 nor more than 45 days prior to the Redemption Date specified in
such notice, at the applicable redemption price specified on the face hereof (expressed as a
percentage of the principal amount of this Note) together in the case of any such redemption with
accrued interest to the Redemption Date, but interest installments due will be payable to the
Registered Holder on the relevant Regular Record Date if the Redemption Date is an Interest Payment
Date. The Bank may elect to redeem less than the entire principal amount hereof; provided, that
the principal amount, if any, of this Note that remains outstanding after such redemption is an
Authorized Denomination. In the event of any redemption in part, the Bank will not be required to
(i) issue, register the transfer of, or exchange any Note during a period beginning at the opening
of business 15 days before the day of the mailing of the notice of redemption of Notes selected for
redemption and ending at the close of business on the date of mailing of the relevant notice of
redemption or (ii) register the transfer or exchange of any Note, or any portion thereof, called
for redemption, except the unredeemed portion of any Note being redeemed in part.

 

15

IN WITNESS WHEREOF, the Bank has caused this Note to be duly executed and countersigned as of the
date set forth herein.

This Note is not valid for any purpose until countersigned by the Fiscal and Paying Agent or such
other institution as may be appointed by the Bank and the certificate of authentication affixed
hereon.

	 	 	 
	Countersigned for

	 	[INSERT NAME OF ISSUING BANK]
	authentication only
	 	 

THE BANK OF NEW YORK TRUST COMPANY,

N.A., AS FISCAL AND PAYING AGENT

	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Authorized Signature
	 	 	 	 	 	Authorized Signature

 

16

OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably request(s) and instruct(s) the Bank to repay the within Note (or
portion thereof specified below) pursuant to its terms at a price equal to the Repayment Price,
together with interest to the repayment date, to the undersigned, at

 

 

 

(Please print or typewrite name and address of the Undersigned)

For this Note to be repaid the Fiscal and Paying Agent must receive at its Corporate Trust Office,
located at [          ], Attention: [           ], or at such other place or places of which the Bank shall from time
to time notify the Holder of the within Note, not more than 45, nor less than 30, days prior to an
Optional Repayment Date, if any, shown on the face of the within Note, either (i) this Note with
this “Option to Elect Repayment” form duly completed, or (ii) a telegram, telex, facsimile
transmission or letter from a member of a national securities exchange or the National Association
of Securities Dealers, Inc. or a commercial bank or trust company in the United States of America
setting forth the name of the Registered Holder of the Note, the principal amount of the Note, the
principal amount of the Note to be repaid, the certificate number or a description of the tenor and
terms of the Note, a statement that the option to elect repayment is being exercised thereby and a
guaranty that the Note to be repaid with this form entitled “Option to Elect Repayment” duly
completed will be received by the Fiscal and Paying Agent not later than five Business Days after
the date of such telegram, telex, facsimile transmission or letter and such Note and form duly
completed are received by the Fiscal and Paying Agent by such fifth Business Day.

If less than the entire principal amount of the within Note is to be repaid, specify the portion
thereof (which shall be increments of $1,000) which the Holder elects to have repaid: $           ; and
specify the denomination or denominations (which shall be $250,000 or an integral multiple of
$1,000 in excess of $250,000) of the Notes to be reissued to the Holder for the portion of the
within Note not being repaid (in the absence of any such specification, one such Note will be
issued for the portion not being repaid):
$           .

	 	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	Note: The signature on this Option to Elect
Repayment must correspond with the name as written
upon the face of this Note in every particular without
alteration or enlargement.

 

17

 

ABBREVIATIONS

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

TEN COM – as tenants in common

TEN ENT – as tenants by the entireties

JT ENT – as joint tenants with right of survivorship and not as tenants in common

	 	 	 	 	 	 	 	 	 
	 

	 	UNIT TRANS MIN F	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	 	(Cust)
	 	(Minor)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	Custodian dunder Uniform Transfer to Minors Act	 	 
	 	 	 	 	 	 
	 	 	 	 	(State)
	 	 

Additional abbreviations may 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 Note, and all rights thereunder, hereby irrevocably constituting and appointing

 

to transfer said Note on the books of the within Bank, with full power of substitution in the
premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular, without alteration or enlargement or any change whatever and
must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Fiscal
and Paying Agent, which requirements include membership or participation in STAMP or such other
“signature guaranty program” as may be determined by the Fiscal and
Paying Agent in addition to or in substitution for STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.

 

EXHIBIT C TO

FISCAL AND PAYING

AGENCY AGREEMENT

Certificate of Authorized Representatives

     The undersigned certifies that pursuant to resolutions adopted by the Board of Directors of
Associated Bank, National Association, (the “Bank”), and with respect to the Bank Notes (the “Bank
Notes”), set forth below is a list of persons who have been duly elected or appointed and have been
duly qualified as, and on this day are, “Authorized Representatives” pursuant to Section 2.2 of the
Fiscal and Paying Agency Agreement, dated as of September 30, 2005 (the “Fiscal and Paying Agency
Agreement”), between the Banks and The Bank of New York Trust Company, N.A., as Fiscal and Paying
Agent (in such capacity, the “Fiscal and Paying Agent”), and such Authorized Representatives are
the persons authorized to provide the Fiscal and Paying Agent with instructions in accordance with
Section 2.2 of the Fiscal and Paying Agency Agreement and to execute Bank Notes on behalf of the
Bank by manual or facsimile signature authorization, and that each signature appearing below is the
person’s genuine signature.

	 	 	 	 	 
	Name
	 	Title
	 	Signature
	 
	 	 
	 	 

     IN WITNESS WHEREOF, I have hereunto signed my name.

Date:__________________________ , 2005

	 	 	 
	 

	 	 
	 

	 	Secretary

 

 

EXHIBIT D TO

FISCAL AND PAYING

AGENCY AGREEMENT

     The Administrative Procedure with respect to the Bank Notes shall be as set forth in Annex II
to the Distribution Agreement dated September 30, 2005, a copy of which procedure is attached to
this Exhibit D.EX-4.1

 

Exhibit 4.1

THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE AND MAY
NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH
SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE
TERMS AND CONDITIONS SPECIFIED IN THIS WARRANT.

RETAIL VENTURES, INC.

			
	 	 	 
	AMENDED COMMON STOCK PURCHASE WARRANT No. W-6
	 	July 5, 2005

Warrant to Purchase

1,388,752 Shares of RVI Common Stock (plus up to 685,417 additional

Shares of RVI Common Stock under Section 3.1(b) hereof, if applicable)

or 328,915 DSW Class A Shares

(subject to adjustment as set forth herein)

          RETAIL VENTURES, INC., an Ohio corporation (the “Company”), for value received, hereby
certifies that CERBERUS PARTNERS, L.P., a Delaware limited partnership, or its registered assigns
(the “Holder”), is entitled to purchase from the Company that number of duly authorized,
validly issued, fully paid and nonassessable shares of Common Shares, no par value per share, of
the Company (the “Common Stock”) equal to the Common Stock Exercise Amount (as defined
below) or, in the alternative, after the consummation of a Qualifying IPO (as defined below) but
prior to the consummation of a Spin-Off (as defined below) and the satisfaction of the Company’s
obligations pursuant to Section 3.3(b), and in the Holder’s discretion, that number of shares of
DSW Stock (as defined below) equal to the DSW Stock Exercise Amount (as defined below) owned by the
Company, in each case, at a purchase price equal to the applicable Purchase Price (as defined
below), at any time or from time to time but prior to 5:00 P.M., New York City time, on June 11,
2012 (the “Expiration Date”), all subject to the terms, conditions and adjustments set
forth below in this Warrant (this “Warrant”); provided, that the purchase price per
share of Common Stock or DSW Stock, as the case may be, hereunder shall not in any event be less
than the par value of such Common Stock or DSW Stock, as applicable. For the avoidance of doubt,
in the case of an exercise for DSW Stock, this Warrant shall initially be exercisable only for
Class A Shares (as defined below). This Warrant amends that certain warrant dated July 5, 2005,
issued by the Company to the Holder, which amended and restated that certain warrant dated as of
September 26, 2002, issued by the Company to the Holder.

 

 

          1. DEFINITIONS. As used herein, unless the context otherwise requires, the following
terms shall have the meanings indicated:

          “Additional Shares of Common Stock” shall mean all shares (including treasury shares)
of Common Stock issued or sold (or, pursuant to Section 3.2(b) or 3.5(b), deemed to be issued) by
the Company after September 26, 2002, whether or not subsequently reacquired or retired by the
Company, other than

          (a) (i) shares of Common Stock issued upon the exercise of the Term Loan Warrants and (ii)
such additional number of shares of Common Stock as may become issuable upon the exercise of the
Term Loan Warrants by reason of adjustments required pursuant to the anti-dilution provisions
applicable to the Term Loan Warrants as in effect on the date hereof or on the date of original
issuance;

          (b) up to 5,000,000 shares of Common Stock (and following June 11, 2007, up to an additional
5,000,000 shares of Common Stock) that are issued to Persons other than Affiliates of the Company,
including (i) shares of Common Stock or options exercisable therefor, issued or to be issued under
the Company’s 2000 Stock Option Plan as in effect on September 26, 2002 or under any other employee
stock option or purchase plan or plans, or pursuant to compensatory or incentive agreements, for
officers, employees or consultants of the Company or any of its Subsidiaries, in each case adopted
or assumed after such date by the Company’s Board of Directors; provided in each case that
the exercise or purchase price for any such share shall not be less than 95% of the fair market
value (determined in good faith by the Company’s Board of Directors) of the Common Stock on the
date of the grant, and such additional number of shares as may become issuable pursuant to the
terms of any such plans by reason of adjustments required pursuant to antidilution provisions
applicable to such securities in order to reflect any subdivision or combination of Common Stock,
by reclassification or otherwise, or any dividend on Common Stock payable in Common Stock, (ii)
shares of restricted stock issued by the Company to executive officers of the Company, and (iii)
shares of Common Stock issued by the Company as charitable gifts; and provided,
however, that all options that are issued and expire unexercised because the vesting
requirements thereof are not satisfied shall not be included in the issued shares pursuant to this
(b);

          (c) up to 2,153,000 shares of Common Stock issued pursuant to options that are granted to
executive officers of the Company or its Subsidiaries under the Company’s 2000 Stock Option Plan as
in effect on September 26, 2002 at an exercise price of no less than $4.50 per share and such
additional number of shares as may become issuable pursuant to the terms of any such options under
the terms of such plan by reason of adjustments required pursuant to antidilution provisions
applicable to such securities in order to reflect any subdivision or combination of Common Stock,
by reclassification or otherwise, or any dividend on Common Stock payable in Common Stock;
provided, however, that all options that are issued and expire unexercised because
the vesting requirements thereof are not satisfied shall not be included in the issued shares
pursuant to this (c); and

          (d) (i) shares of Common Stock issued upon exercise of the Conversion Warrants and (ii) such
additional number of shares of Common Stock as may become issuable upon the exercise of the
Conversion Warrants by reason of adjustments required pursuant to

2

 

anti-dilution provisions applicable to the Conversion Warrants as in effect on the date hereof or
on the date of original issuance.

          “Additional Shares of DSW Stock” shall mean all shares (including treasury shares) of
DSW Stock issued or sold (or, pursuant to Section 3.2(b) or 3.5(b), deemed to be issued) by DSW
after the closing date of a Qualifying IPO (and for the avoidance of doubt shall not include shares
issued pursuant to the over-allotment option in such Qualifying IPO after such closing date),
whether or not subsequently reacquired or retired by DSW, other than

          (a) (i) shares of DSW Stock issued upon the exercise of the Term Loan Warrants and (ii)
such number of additional shares of DSW Stock as may become issuable upon the exercise of
the Term Loan Warrants by reason of adjustments required pursuant to the antidilution
provisions applicable to the Term Loan Warrants as in effect on the date hereof or on the
date of original issuance; or

          (b) (i) shares of DSW Stock issued upon exercise of the Conversion Warrants and (ii)
such additional number of shares as may become issuable upon the exercise of the Conversion
Warrants by reason of adjustments required pursuant to antidilution provisions applicable to
the Conversion Warrants as in effect on September 26, 2002 or on the date hereof; or

          (c) shares of DSW Stock, shares of restricted stock, options exercisable for DSW Stock,
or any other securities or interests (including shares of DSW Stock issued upon conversion,
settlement or exercise of any such options, securities or other interests), issued or to be
issued under the DSW Inc. Equity Incentive Plan or any other employee stock option or
purchase plan or plans, or pursuant to compensatory or incentive agreements, for officers,
directors, employees or consultants of the Company, DSW or any of its respective
Subsidiaries, and such additional number of shares as may become issuable pursuant to the
terms of any such plans by reason of adjustments required pursuant to antidilution
provisions applicable to such securities in order to reflect any subdivision or combination
of DSW Stock, by reclassification or otherwise, or any dividend or distribution on DSW Stock
payable in DSW Stock or other equity securities or interests; or

          (d) shares of Class A Shares issued upon exchange of Class B Shares.

          “Aggregate Purchase Price” shall have the meaning set forth in Section 2.1(a).

          “Business Day” shall mean any day other than a Saturday or a Sunday or any day on
which national banks are authorized or required by law to close. Any reference to “days” (unless
Business Days are specified) shall mean calendar days.

          “Class A Shares” means the shares of the Class A common shares, no par value, of DSW.

          “Class B Shares” means the shares of the Class B common shares, no par value, of DSW.

3

 

          “Commission” shall mean the Securities and Exchange Commission or any successor agency
having jurisdiction to enforce the Securities Act.

          “Common Stock” shall have the meaning assigned to it in the introduction to this
Warrant, such term to include any stock into which such Common Stock shall have been changed or any
stock resulting from any reclassification of such Common Stock, and all other stock of any class or
classes (however designated) of the Company the holders of which have the right, without limitation
as to amount, either to all or to a share of the balance of current dividends and liquidating
dividends after the payment of dividends and distributions on any shares entitled to preference.

          “Common Stock Exercise Amount” shall initially mean the Initial Common Stock Exercise
Amount, as the same may be adjusted and readjusted pursuant to Section 3 hereof; and shall be
reduced upon each exercise of this Warrant (i) if exercised for Common Stock, by such number of
shares of Common Stock for which this Warrant is then being exercised or (ii) if exercised for DSW
Stock, by the Corresponding Common Stock Number applicable to the number of shares of DSW Stock for
which this Warrant is then being exercised.

          “Common Stock Purchase Price” shall mean initially $4.50 per share, subject to
adjustment and readjustment from time to time as provided in Section 3, and, as so adjusted or
readjusted, shall remain in effect until a further adjustment or readjustment thereof is required
by Section 3.

          “Company” shall have the meaning assigned to it in the introduction to this Warrant,
such term to include any corporation or other entity which shall succeed to or assume the
obligations of the Company hereunder in compliance with Section 4.

          “Conversion” shall have the meaning assigned to it in Section 3.1(b).

          “Conversion Warrants” means those certain warrants issued as of the date hereof in
connection with an amendment and restatement of the Convertible Facility.

          “Convertible Facility” shall mean that certain Amended and Restated Senior
Subordinated Convertible Loan Agreement, dated as of June 11, 2002, among the Company, CPLP and
SSC, as amended by Amendment No. 1 to Amended and Restated Senior Convertible Loan Agreement, dated
as of June 11, 2002, and by Amendment No. 2 to Amended and Restated Senior Convertible Loan
Agreement, dated as of October 7, 2003, and by Amendment No. 3 to Amended and Restated Senior
Convertible Loan Agreement, dated as of December 29, 2004, and as amended and restated by the
Second Amended and Restated Senior Loan Agreement, dated as of July 5, 2005 (as amended,
supplemented, restated otherwise modified through the date hereof).

          “Convertible Securities” shall mean any evidences of indebtedness, shares of stock
(other than Common Stock or DSW Stock) or other securities directly or indirectly convertible into
or exchangeable for, in the case of the Company, Additional Shares of Common Stock or, in the case
of DSW, Additional Shares of DSW Stock.

4

 

          “Corresponding Common Stock Number” shall mean, with respect to a specified number of
shares of DSW Stock, the number of shares of Common Stock obtained by dividing: (i) the product of
(A) the number of shares of DSW Stock with respect to which such determination is being made and
(B) the DSW Stock Purchase Price by (ii) the Common Stock Purchase Price; rounding up in the case
of any fractional share.

          “Corresponding DSW Stock Number” shall mean, with respect to a specified number of
shares of Common Stock, the number of shares of DSW Stock obtained by dividing (i) the product of
(A) the number of shares of Common Stock with respect to which such determination is being made and
(B) the Common Stock Purchase Price by (ii) the DSW Stock Purchase Price; rounding up in the case
of any fractional share.

          “CPLP” shall mean Cerberus Partners, L.P., or its assignees.

          “Current Market Price” shall mean, with respect to a security, on any date specified
herein, the average of the daily Market Price of such security during the 10 consecutive trading
days before such date, except that, if on any such date the shares of such security are not listed
or admitted for trading on any national securities exchange or quoted in the over-the-counter
market, the Current Market Price shall be the Market Price on such date.

          “DSW” shall mean DSW Inc., an Ohio corporation.

          “DSW Registration Rights Agreement” shall mean the registration rights agreement,
dated as of the date hereof, among DSW and the Initial Holders.

          “DSW Stock” shall mean shares of Class A Shares, such term to include any stock into
which such DSW Stock shall have been changed or any stock resulting from any reclassification of
such DSW Stock, and all other stock of any class or classes (however designated) of DSW the holders
of which have the right, without limitation as to amount, either to all or to a share of the
balance of current dividends and liquidating dividends after the payment of dividends and
distributions on any shares entitled to preference.

          “DSW Stock Exercise Amount” shall initially mean the Initial DSW Stock Exercise
Amount, as the same may be adjusted and readjusted pursuant to Section 3 hereof; and shall be
reduced upon each exercise of this Warrant (i) if exercised for DSW Stock, by such number of shares
of DSW Stock for which this Warrant is then being exercised or (ii) if exercised for Common Stock,
by the Corresponding DSW Stock Number applicable to the number of shares of Common Stock for which
this Warrant is then being exercised.

          “DSW Stock Purchase Price” shall mean initially, the IPO Price, subject to adjustment
and readjustment from time to time as provided in Section 3, and, as so adjusted or readjusted,
shall remain in effect until a further adjustment or readjustment thereof is required by Section 3.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations thereunder, or any successor statute.

5

 

          “Expiration Date” shall have the meaning assigned to it in the introduction to this
Warrant.

          “Fair Value” shall mean, on any date specified herein (i) in the case of cash, the
dollar amount thereof, (ii) in the case of a security, the Current Market Price, and (iii) in all
other cases, the fair value thereof (as of a date which is within 20 days of the date as of which
the determination is to be made) determined in good faith by a committee of the Company’s Board of
Directors consisting of directors who are not Affiliates of the Company, SSC or the Holder;
provided, however, that at the reasonable request of the Holder, the Fair Value shall be
determined in good faith by an independent investment banking firm selected jointly by the Company
and the Holder or, if that selection cannot be made within 10 days, by an independent investment
banking firm selected by the American Arbitration Association in accordance with its rules, and
provided, further, that the Company shall pay all of the reasonable fees and expenses of
any third parties incurred in connection with determining the Fair Value.

          “Financing Agreement” shall mean that certain Financing Agreement, dated as of June
11, 2002, among the Company, certain Affiliates of the Company, CPLP and SSC, as subsequently
amended and modified through the date hereof.

          “Holder” shall have the meaning assigned to it in the introduction to this Warrant.

          “Initial Common Stock Exercise Amount” means 1,388,752 shares.

          “Initial DSW Stock Exercise Amount” shall mean the number of shares of DSW Stock
obtained by dividing (i) the product of (A) 1,388,752 and $4.50 by (ii) the IPO Price; rounding up
for any fractional share, which such amount is equal to 328,915 shares.

          “Initial Holders” shall mean CPLP and SSC.

          “IPO Effective Date” means the date on which a Qualifying IPO is consummated in
accordance with the terms set forth in (i) Section 4.02 of the Convertible Facility and (ii) the
Form S-1 Registration Statement as filed with the SEC on June 28, 2005 as amended from time to
time.

          “IPO Price” means the price at which a share of DSW Stock is initially offered to the
public in a Qualifying IPO as set forth on the cover page to the prospectus in such IPO, or $19.00
per share.

          “Lien” shall have the meaning set forth in the Convertible Facility.

          “Market Price” shall mean, on any date specified herein, with respect to any security,
the amount per share of such security equal to (i) the last reported sale price of such security,
regular way, on such date or, in case no such sale takes place on such date, the average of the
closing bid and asked prices thereof regular way on such date, in either case as officially
reported on the principal national securities exchange on which such security is then listed or
admitted for trading, (ii) if such security is not then listed or admitted for trading on any
national securities exchange but is designated as a national market system security by the NASD,
the last

6

 

reported trading price of such security on such date, (iii) if there shall have been no
trading on such date or if such security is not so designated, the average of the closing bid and
asked prices of such security on such date as shown by the NASD automated quotation system, (iv) if
trading in such security is quoted in the over-the-counter market, the average of the closing bid
and asked prices of the security on such date as shown on the OTC Bulletin Board, or (v) if such
security is not then listed or admitted for trading on any national exchange or quoted in the
over-the-counter market, the fair value thereof (as of a date which is within 20 days of the date
as of which the determination is to be made) determined in good faith by a committee of the
Company’s Board of Directors consisting of directors who are not Affiliates of the Company, SSC or
the Holder; provided, however, that at the request of the Holder, the Market Price
shall be determined in good faith by an independent investment banking firm selected jointly by the
Company and the Holder or, if that selection cannot be made within 10 days, by an independent
investment banking firm selected by the American Arbitration Association in accordance with its
rules, and provided, further, that the Company shall pay all of the fees and expenses of
any third parties incurred in connection with determining the Market Price.

          “NASD” shall mean the National Association of Securities Dealers, Inc.

          “New Issuance Price” shall have the meaning set forth in Section 3.2.

          “Options” shall mean any rights, options or warrants to subscribe for, purchase or
otherwise acquire, in the case of the Company, Additional Shares of Common Stock or Convertible
Securities of the Company, and, in the case of DSW, Additional Shares of DSW Stock or Convertible
Securities of DSW.

          “Original Issuance Date” means September 26, 2002.

          “Other Securities” shall mean any stock (other than Common Stock or DSW Stock) and
other securities of the Company or DSW, as applicable, or any other Person (corporate or otherwise)
which the holders of the Term Loan Warrants at any time shall be entitled to receive, or shall have
received, upon the exercise of the Term Loan Warrants, in lieu of or in addition to Common Stock or
DSW Stock, or which at any time shall be issuable or shall have been issued in exchange for or in
replacement of Common Stock or DSW Stock or Other Securities pursuant to Section 4 or otherwise.

          “Permitted Lien” shall have the meaning set forth in the Convertible Facility.

          “Person” shall mean any individual, firm, partnership, corporation, trust, joint
venture, association, joint stock company, limited liability company, unincorporated organization
or any other entity or organization, including a government or agency or political subdivision
thereof, and shall include any successor (by merger or otherwise) of such entity.

          “Purchase Price” shall mean, with respect to the Common Stock, the Common Stock
Purchase Price, and with respect to the DSW Stock, the DSW Stock Purchase Price, as applicable.

7

 

          “Qualifying IPO” shall mean an initial public offering of DSW (a) in which the sale
price of the Class A Shares sold in the initial public offering shall reflect the fair market value
of such shares at the time of the initial public offering as determined by the Company’s Board of
Directors; (b) from which the net proceeds are sufficient to repay in full all obligations
outstanding under the Financing Agreement and $25,000,000 of the principal amount under the
Convertible Facility; and (c) which is consummated on or prior to December 31, 2005.

          “Registration Rights Agreement” shall mean the Second Amended and Restated
Registration Rights Agreement, dated as of the date hereof, among the Company and the Initial
Holders.

          “Restricted Securities” shall mean (i) any Term Loan Warrants bearing the applicable
legend set forth in Section 10.1, (ii) any shares of Common Stock or DSW Stock (or Other
Securities) issued or issuable upon the exercise of Term Loan Warrants which are (or, upon
issuance, will be) evidenced by a certificate or certificates bearing the applicable legend set
forth in Section 10.1, and (iii) any shares of Common Stock or DSW Stock (or Other Securities)
issued subsequent to the exercise of any of the Term Loan Warrants as a dividend or other
distribution with respect to, or resulting from a subdivision of the outstanding shares of Common
Stock or DSW Stock (or Other Securities) into a greater number of shares by reclassification, stock
splits or otherwise, or in exchange for or in replacement of the Common Stock or DSW Stock (or
Other Securities) issued upon such exercise, which are evidenced by a certificate or certificates
bearing the applicable legend set forth in Section 10.1.

          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time,
and the rules and regulations thereunder, or any successor statute.

          “Spin-Off” shall have the meaning assigned to it in Section 3.3.

          “SSC” shall mean Schottenstein Stores Corporation.

          “Term Loan Warrants” shall mean all warrants initially issued pursuant to the
Financing Agreement (as amended and restated), including this Warrant.

          “Warrant” shall have the meaning assigned to it in the introduction to this Warrant.

          “Warrant Shares” means (a) the shares of Common Stock or DSW Stock issued or issuable
upon exercise of this Warrant in accordance with Section 2, (b) all other securities or other
property issued or issuable upon any such exercise or exchange in accordance with this Warrant and
(c) any securities of the Company or DSW distributed with respect to the securities referred to in
the preceding clauses (a) and (b).

          2. EXERCISE OF WARRANT.

          2.1. Manner of Exercise; Payment of the Purchase Price. (a) This Warrant may be
exercised by the Holder hereof, in whole or in part, at any time or from time to time prior to the
Expiration Date, by surrendering to the Company at its principal office this Warrant, with

8

 

the form of Election to Purchase Shares attached hereto as Exhibit A, or (provided that the
Company has not consummated a Spin-Off and satisfied its obligation pursuant to Section 3.3(b)) if
this Warrant is being exercised for Shares of DSW Stock, Exhibit B (or a reasonable facsimile
thereof) duly executed by the Holder and accompanied by payment of the applicable Purchase Price
for the number of shares of Common Stock or, after the consummation of a Qualifying IPO (provided
that the Company has not consummated a Spin-Off and satisfied its obligations pursuant to Section
3.3(b), DSW Stock specified in such form (the “Aggregate Purchase Price”). Any partial
exercise of this Warrant shall be for a whole number of Warrant Shares only.

          (b) Payment of the Aggregate Purchase Price may be made as follows (or by any combination of
the following): (i) in United States currency by cash or delivery of a certified check or bank
draft payable to the order of the Company or by wire transfer to the Company, (ii) by cancellation
of such number of Warrant Shares otherwise issuable to the Holder upon such exercise as shall be
specified for cancellation in such Election to Purchase Shares, such that the excess of the
aggregate Current Market Price of such specified number and type of shares on the date of exercise
over the portion of the Aggregate Purchase Price attributable to such shares shall equal the
Aggregate Purchase Price attributable to the shares of Common Stock or DSW Stock, as the case may
be, to be issued upon such exercise, in which case such excess amount shall be deemed to have been
paid to the Company and the number of shares issuable upon such exercise shall be reduced by such
number specified for cancellation, or (iii) by surrender to the Company for cancellation
certificates representing shares of Common Stock or transfer to the Company certificates
representing shares of DSW Stock owned by the Holder (properly endorsed for transfer in blank)
having a Current Market Price on the date of Warrant exercise equal to the Aggregate Purchase
Price.

          (c) Upon the consummation of a Spin-Off and the satisfaction of the Company’s obligations to
make the distribution to the Holder required by Section 3.3(b), this Warrant shall no longer be
exercisable for shares of DSW Stock and the Holder shall not be entitled to the pro rata share of
the dividend or distribution pursuant to Section 3.3(a) in respect of such Spin-Off and
distribution; provided, however, that this Warrant shall continue to be exercisable for shares of
Common Stock without any adjustment to the Common Stock Purchase Price or Common Stock Exercise
Amount as a result of such Spin-Off and distribution to the holders of the Term Loan Warrants and
Conversion Warrants.

          (d) Notwithstanding anything herein to the contrary, the Holder agrees that this Warrant shall
not be exercisable for shares of DSW Stock from and after the record date for a Spin-Off (as set
forth in the notice provided to the Holder pursuant to Section 8 hereof) until the earliest to
occur of (i) the abandonment of the Spin-Off, (ii) the date that is 60 days after the record date
for such Spin-Off and (iii) two Business Days prior to the Expiration Date of this Warrant.

          2.2. When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the Business Day in the case of Common
Stock and on the next succeeding Business Day in the case of DSW Stock on which this Warrant shall
have been surrendered to, and the Purchase Price shall have been received by, the Company as
provided in Section 2.1, and, to the extent permitted by law, at such time the

9

 

Person or Persons in whose name or names any certificate or certificates for shares of Common
Stock (or Other Securities of the Company) in the case of an exercise of this Warrant for Common
Stock shall be issuable upon such exercise as provided in Section 2.3 shall be deemed to have
become the holder or holders of record thereof for all purposes.

          2.3. Delivery of Stock Certificates, etc.; Charges, Taxes and Expenses. (a) As
soon as practicable after each exercise of this Warrant, in whole or in part, and in any event
within two Business Days thereafter in the case of Common Stock and within three Business Days in
the case of DSW Stock, the Company shall cause to be issued, in the case of Common Stock, and shall
use reasonable best efforts to cause to be transferred, in the case of DSW Stock, in the name of
and delivered to the Holder hereof or, subject to Section 10, as the Holder may direct,

          (i) a certificate or certificates for the number and type of Warrant Shares (or Other
Securities) to which the Holder shall be entitled upon such exercise, and any cash payment in
lieu of any fractional shares, as provided in Section 12.5 hereof, and

          (ii) in case such exercise is for less than all of the Warrant Shares purchasable under
this Warrant, a new Warrant or Warrants of like tenor, for the balance of the Warrant Shares
purchasable hereunder.

          (b) Issuance of certificates for Warrant Shares upon the exercise of this Warrant shall be
made without charge to the Holder hereof for any issue or transfer tax or other incidental expense,
in respect of the issuance or transfer of such certificates, all of which such taxes and expenses
shall be paid by the Company; provided, however, that the Company shall not be
required to pay any tax that may be payable in respect of any issuance of any Warrant or any
certificate for, or any other evidence of ownership of, Warrant Shares in a name other than that of
the Holder of this Warrant being exercised or exchanged.

          (c) Upon delivery of notice of exercise of this Warrant for shares of DSW Stock, the Company
shall promptly effect the exchange of a sufficient number of Class B Shares for Class A Shares so
as to permit the transfer of Class A Shares to the Holder in the manner and time periods provided
in paragraph (a) of this Section 2.3.

          2.4. Tax Basis. The Company and the Holder shall mutually agree as to the tax basis
of this Warrant for purposes of the Internal Revenue Code of 1986, as amended, and the treatment of
this Warrant under such Code by each of the Company and the Holder shall be consistent with such
agreement.

          2.5. Limitations on Exercises; Beneficial Ownership. The Company shall not effect the
exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the
extent that after giving effect to such exercise, such Holder (together with such Holder’s
affiliates) would beneficially own in excess of 9.99% of the shares of Common Stock or 9.99% of the
shares of DSW Stock outstanding immediately after giving effect to such exercise. For purposes of
the foregoing sentence, the aggregate number of shares of Common Stock or DSW Stock, as the case
may be, beneficially owned by such Person and its affiliates shall include the number of such
shares of Common Stock or DSW Stock, as applicable, issuable upon

10

 

exercise of this Warrant with respect to which the determination of such sentence is being
made, but shall exclude such shares of Common Stock or DSW Stock, as applicable, which would be
issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned
by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company or DSW beneficially owned by such Person and its
affiliates (including, without limitation, any convertible notes or convertible preferred stock or
warrants) subject to a limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended. For purposes of this Warrant, in determining the number of outstanding shares of
Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected
in the most recent of the following: (1) the Company’s most recent Form 10-K, Form 10-Q, Current
Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case
may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company
or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For purposes
of this Warrant, in determining the number of outstanding shares of DSW Stock, the Holder may rely
on the number of outstanding shares of DSW Stock as reflected in the most recent of the following:
(1) DSW’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with
the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement
by DSW or (3) any other notice by the DSW or its transfer agent setting forth the number of shares
of DSW Stock outstanding. For any reason at any time, upon the written or oral request of the
Holder, the Company shall within one Business Day confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding or similarly use its reasonable best efforts to
cause DSW to confirm the number of shares of DSW Stock then outstanding. In any case, the number
of outstanding shares of Common Stock or DSW Stock shall be determined after giving effect to the
conversion or exercise of securities of the Company or DSW, as the case may be, including the
Conversion Warrants, by the Holder and its affiliates since the date as of which such number of
outstanding shares of Common Stock or DSW Stock was reported.

          3. ADJUSTMENT OF PURCHASE PRICE AND WARRANT SHARES ISSUABLE UPON EXERCISE.

          3.1. Adjustment of Number of Shares.

          (a) Upon each adjustment of the Common Stock Purchase Price or the DSW Stock Purchase Price as
a result of the calculations made in this Section 3, this Warrant shall thereafter evidence the
right to receive, at the adjusted Purchase Price, that number of shares of Common Stock or DSW
Stock, as the case may be, (calculated to the nearest one-hundredth) obtained by dividing (i) the
product of the aggregate number of such shares covered by this Warrant immediately prior to such
adjustment and the applicable Purchase Price in effect immediately prior to such adjustment of the
Purchase Price by (ii) the applicable Purchase Price in effect immediately after such adjustment of
the Purchase Price. For the avoidance of doubt, adjustments to the Common Stock Purchase Price
shall result in an adjustment only in the number of shares of Common Stock issuable hereunder and
an adjustment to the DSW Stock

11

 

Purchase Price shall result in an adjustment only in the number of shares of DSW Stock
issuable hereunder.

          (b) In the event that, prior to the exercise in full of this Warrant, the Company issues any
shares of Common Stock upon the conversion of Convertible Securities outstanding as of the Original
Issuance Date (including, without limitation, upon exercise of the Conversion Warrants) (a
“Conversion”), the number of shares of Common Stock issuable upon the exercise of this
Warrant (whether or not this Warrant has been partially exercised) shall be automatically increased
by the number of shares equal to 4.1125% of the shares of Common Stock issued upon such Conversion,
and the Purchase Price shall not be adjusted in connection with such increase. Any adjustments
made to the Purchase Price or the number of shares of Common Stock issuable upon exercise of the
Warrant prior to such Conversion shall be made as if the Warrant were initially exercisable for
such increased number of shares. Upon each such Conversion, the Company shall promptly deliver to
the Holder the report required by Section 7 hereof. For the avoidance of doubt, this section
3.1(b) shall only apply to exercise of this Warrant for Common Stock and a corresponding increase
shall not be made with respect to DSW Stock.

          3.2. Adjustment of Purchase Price for New Issuances.

          (a) Issuance of Additional Shares. If at any time or from time to time after the date
hereof, the Company shall issue or sell Additional Shares of Common Stock or, DSW shall issue
Additional Shares of DSW Stock (including, in each case, Additional Shares of Common Stock or
Additional Shares of DSW Stock, as applicable, deemed to be issued pursuant to Section 3.2(b) and
excluding shares issued pursuant to Section 3.3 and 3.4) without consideration or for a
consideration per share less than the applicable Purchase Price in effect immediately prior to such
issue or sale (the “New Issuance Price”), then, and in each such case, subject to Section
3.8, in the case of an issuance of Additional Shares of Common Stock the Common Stock Purchase
Price or, in the case of an issuance of Additional Shares of DSW Stock, the DSW Stock Purchase
Price, shall be reduced concurrently with such issue or sale, to the applicable New Issuance Price.
For the avoidance of doubt, issuances of Additional Shares of Common Stock shall result in an
adjustment only to the Common Stock Purchase Price and issuances of Additional Shares of DSW Stock
shall result in an adjustment only to the DSW Stock Purchase Price.

          (b) Treatment of Options and Convertible Securities. Shares of Additional Shares of
Common Stock or Additional Shares of DSW Stock shall be deemed issued if the Company or DSW, as
applicable, at any time or from time to time after the date hereof shall issue, sell, grant or
assume, or shall fix a record date for the determination of holders of any class of securities of
the Company or DSW, as the case may be, entitled to receive, any Options or Convertible Securities
(whether or not the rights thereunder are immediately exercisable) for a consideration per share
(determined pursuant to Section 3.6) that is less than, in the case of Additional Shares of Common
Stock, the Common Stock Purchase Price or, in the case of Additional Shares of DSW Stock, the DSW
Stock Purchase Price, in effect on the date of and immediately prior to such issue, sale, grant or
assumption or immediately prior to the close of business on such record date (or, if the Common
Stock or DSW Stock, as applicable, trades on an ex-dividend basis, on the date prior to the
commencement of ex-dividend trading). Such issuance shall be deemed to occur (i) as of the time of
such issue, sale, grant or assumption of the

12

 

Convertible Securities or Options or (ii) in case such a record date shall have been fixed, as
of the close of business on such record date (or, if the Common Stock or DSW Stock, as applicable,
trades on an ex-dividend basis, on the date prior to the commencement of ex-dividend trading). No
further adjustment of the Purchase Price shall be made upon the subsequent issuance of shares of
Common Stock or DSW Stock, as the case may be, upon the exercise of such Options or the conversion
or exchange of such Convertible Securities.

          (c) In addition, for the avoidance of doubt, after the consummation of a Spin-Off and
satisfaction of the Company’s obligations to make the distribution to the Holder required by
Section 3.3(b), no adjustment shall be made pursuant to this Section 3.2 as a result of an issuance
by DSW of Additional Shares of DSW Stock.

          3.3. Extraordinary Dividends and Distributions; Payment of Dividend in Case of
Spin-Off.

          (a) Subject to Section 3.3(b), if the Company or DSW at any time or from time to time after
the date hereof shall declare, order, pay or make a dividend or other distribution (including,
without limitation, any distribution of other or additional stock or other securities or property
or Options by way of dividend or spin-off, reclassification, recapitalization or similar corporate
rearrangement) on, in the case of the Company, the Common Stock or, in the case of DSW, the DSW
Stock, other than (a) a dividend payable in shares of Common Stock or, in the case of DSW, DSW
Stock, subject to Section 3.4, or (b) a regularly scheduled cash dividend payable out of
consolidated earnings or earned surplus, determined in accordance with generally accepted
accounting principles or (c) a deemed issuance of Additional Shares of Common Stock or Additional
Shares of DSW Stock pursuant to Section 3.2(b), in each such case, subject to Section 3.8, adequate
provision shall be made so that the Holder shall receive, upon Warrant exercise for such type of
Warrant Shares, a pro rata share of such dividend or other distribution based upon the maximum
number of shares of Common Stock or DSW Stock, as applicable, at the time issuable to the Holder
(determined without regard to whether the Warrant is exercisable at such time). For the avoidance
of doubt, subject to Section 3.3(b), dividends and distributions pursuant to this Section 3.3(a)
with respect to DSW Stock shall only be receivable upon exercise by a Holder of this Warrant for
DSW Stock (and only with respect to the number of shares of DSW Stock for which this Warrant is
exercised) and dividends and distributions with respect to Common Stock shall only be receivable
upon exercise by a Holder of this Warrant for Common Stock (and only with respect to the number of
shares of Common Stock for which this Warrant is exercised). In addition, for the avoidance of
doubt, after the consummation of a Spin-Off and satisfaction of the Company’s obligations to make
the distribution to the Holder required by Section 3.3(b), no adjustment shall be made pursuant to
this Section 3.3(a) as a result of an issuance by DSW of Additional Shares of DSW Stock.

          (b) Notwithstanding anything in this Warrant to the contrary, if the Company shall make any
distribution of all shares of DSW Stock owned by it to its shareholders (a “Spin-Off”),
then the Holder of this Warrant shall receive, and the Company shall deliver to the Holder, upon
consummation of the Spin-Off, that number of shares of DSW Stock which the Holder would have
received in such Spin-Off had the Holder exercised this Warrant, immediately prior to the record
date for such Spin-Off, for the greatest number of shares of Common Stock for which this Warrant
was then exercisable but only with respect to the portion of the Warrant that

13

 

remains unexercised on the date of such distribution without regard to any limit on
exercisability set forth in Section 2.5 or otherwise in this Warrant or any comparable provision in
the Conversion Warrants. Such shares of DSW Stock shall be distributed to the Holder without
payment therefor by the Holder to the Company and without any action of any kind required by the
Holder to the Company. Upon the consummation of a Spin-Off and receipt by the Holder of the DSW
Stock as provided for in this Section 3.3(b), this Warrant shall no longer be exercisable for
shares of DSW Stock and shall only be exercisable for Common Stock in accordance with Section
2.1(c). The Holder shall be entitled to at least 90 days’ prior written notice of the record date
for any Spin-Off.

          3.4. Treatment of Stock Dividends, Stock Splits, etc. In case the Company or DSW at
any time or from time to time after the date hereof, shall declare or pay any dividend on, in the
case of the Company, the Common Stock payable in Common Stock or, in the case of DSW, the DSW Stock
payable in DSW Stock, or shall effect a subdivision of the outstanding shares, in the case of the
Company, of Common Stock or, in the case of DSW, of DSW Stock, into a greater number of such
shares (by reclassification or otherwise than by payment of a dividend in Common Stock or DSW
Stock), then, and in each such case, the number of shares of Common Stock or DSW Stock, as the case
may be, obtainable upon exercise of this Warrant shall be proportionately increased and the
applicable Purchase Price shall be proportionately decreased. In case the Company or DSW at any
time or from time to time after the date hereof, shall effect any combination or consolidation of
the outstanding shares of, in the case of the Company, Common Stock or, in the case of DSW, DSW
Stock, into a lesser number of such shares, then, and in each such case, the number of shares of
Common Stock or DSW Stock, as the case may be, obtainable upon exercise of this Warrant shall be
proportionately decreased and the applicable Purchase Price shall be proportionately increased.
Any adjustment made under this Section shall become effective (a) in the case of any such dividend,
immediately after the close of business on the record date for the determination of holders of any
class of securities entitled to receive such dividend, or (b) in the case of any such subdivision,
at the close of business on the day immediately prior to the day upon which such corporate action
becomes effective. For the avoidance of doubt, after the consummation of a Spin-Off and
satisfaction of the Company’s obligations to make the distribution to the Holder required by
Section 3.3(b) no adjustment shall be made pursuant to this Section 3.4 for any dividend or
subdivision or consolidation or combination that is effected by DSW.

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          3.5. Adjustment of Purchase Price for Other Issuances.

          (a) Issuance of Additional Shares. If at any time or from time to time after the date
hereof, the Company shall issue or sell Additional Shares of Common Stock or DSW shall issue or
sell Additional Shares of DSW Stock, (including Additional Shares of Common Stock or Additional
Shares of DSW Stock, as the case may be, deemed to be issued pursuant to Section 3.5(b)) for a
consideration per share less than the Current Market Price thereof but greater than the applicable
Purchase Price in effect immediately prior to such issue or sale, then, and in each such case,
subject to Section 3.8, the applicable Purchase Price shall be reduced concurrently with such issue
or sale, to a price (calculated to the nearest .01 of a cent) determined by multiplying such
applicable Purchase Price by a fraction

               (x) The numerator of which shall be the sum of (i) the number of shares of, in the case of the
issuance of Additional Shares of Common Stock, Common Stock or, in the case of an issuance of
Additional Shares of DSW Stock, DSW Stock, outstanding immediately prior to such issue or sale and
(ii) the number of shares of, in the case of the issuance of Additional Shares of Common Stock,
Common Stock or, in the case of an issuance of Additional Shares of DSW Stock, DSW Stock, which the
aggregate consideration received by the Company or DSW, as applicable, for the total number of such
Additional Shares of Common Stock or Additional Shares of DSW Stock, as the case may be, so issued
or sold would purchase at the Current Market Price thereof, and

               (y) The denominator of which shall be the number of shares of, in the case of the issuance of
Additional Shares of Common Stock, Common Stock, or, in the case of an issuance of Additional
Shares of DSW Stock, of DSW Stock, outstanding immediately after such issue or sale,
provided that, for the purposes of this Section 3.5, (x) immediately after any Additional
Shares of Common Stock or Additional Shares of DSW Stock are deemed to have been issued pursuant to
Section 3.5(b), such additional shares shall be deemed to be outstanding, and (y) treasury shares
shall not be deemed to be outstanding.

          (b) Treatment of Options and Convertible Securities. In case the Company or DSW at
any time or from time to time after the date hereof, shall issue, sell, grant or assume, or shall
fix a record date for the determination of holders of any class of securities of the Company or
DSW, as the case may be, entitled to receive, any Options or Convertible Securities (other than
those excluded from the definition of Additional Shares of Common Stock or the definition of
Additional Shares of DSW Stock) (whether or not the rights thereunder are immediately exercisable)
and the consideration per share (determined pursuant to Section 3.6) of the shares issuable upon
the exercise of such Options or, in the case of Convertible Securities and the Options therefor,
the conversion or exchange of such Convertible Securities would be less than the Current Market
Price thereof but greater than the applicable Purchase Price in effect on the date of and
immediately prior to such issue, sale, grant or assumption or immediately prior to the close of
business on such record date (or, if the Common Stock or DSW Stock, as applicable, trades on an
ex-dividend basis, on the date prior to the commencement of ex-dividend trading), then, and in each
such case, the maximum number of Additional Shares of Common Stock or Additional Shares of DSW
Stock (as set forth in the instrument relating thereto, without regard to any provisions contained
therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or,
in the case of Convertible Securities and Options therefor, the

15

 

conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares
of Common Stock or Additional Shares of DSW Stock, as the case may be, issued for the purposes of
Section 3.5 as of the time of such issue, sale, grant or assumption or, in case such a record date
shall have been fixed, as of the close of business on such record date (or, if the Common Stock or
DSW Stock, as applicable, trades on an ex-dividend basis, on the date prior to the commencement of
ex-dividend trading, provided, that in any such case in which Additional Shares of Common
Stock or Additional Shares of DSW Stock are deemed to be issued:

     (i) whether or not the Additional Shares of Common Stock or Additional Shares of DSW
Stock underlying such Options or Convertible Securities are deemed to be issued, no further
adjustment of the applicable Purchase Price shall be made upon the subsequent issue or sale
of Convertible Securities or shares of Common Stock or DSW Stock upon the exercise of such
Options or the conversion or exchange of such Convertible Securities, except in the case of
any such Options or Convertible Securities which contain provisions requiring an adjustment,
subsequent to the date of the issue or sale thereof, of the number of Additional Shares of
Common Stock or Additional Shares of DSW Stock as issuable upon the exercise of such Options
or the conversion or exchange of such Convertible Securities by reason of (x) a change of
control of the Company or DSW, (y) the acquisition by any Person or group of Persons of any
specified number or percentage of the voting securities of the Company or (z) any similar
event or occurrence, each such case to be deemed hereunder to involve a separate issuance of
Additional Shares of Common Stock, Additional Shares of DSW Stock, Options or Convertible
Securities, as the case may be;

     (ii) if such Options or Convertible Securities by their terms provide, with the passage
of time or otherwise, for any increase in the consideration payable to the Company or DSW, or
decrease in the number of Additional Shares of Common Stock or Additional Shares of DSW Stock
issuable, upon the exercise, conversion or exchange thereof (by change of rate or otherwise),
the Purchase Price computed upon the original issue, sale, grant or assumption thereof (or
upon the occurrence of the record date, or date prior to the commencement of ex-dividend
trading, as the case may be, with respect thereto), and any subsequent adjustments based
thereon, shall, upon any such increase or decrease becoming effective, be recomputed to
reflect such increase or decrease insofar as it affects such Options, or the rights of
conversion or exchange under such Convertible Securities, which are outstanding at such time;

     (iii) upon the expiration (or purchase by the Company or DSW, as the case may be, and
cancellation or retirement) of any such Options which shall not have been exercised or the
expiration of any rights of conversion or exchange under any such Convertible Securities
which (or purchase by the Company or DSW, as applicable, and cancellation or retirement of
any such Convertible Securities the rights of conversion or exchange under which) shall not
have been exercised, the applicable Purchase Price computed upon the original issue, sale,
grant or assumption thereof (or upon the occurrence of the record date, or date prior to the
commencement of ex-dividend trading, as the case may be, with respect thereto), and any
subsequent adjustments based thereon,

16

 

shall, upon such expiration (or such cancellation or retirement, as the case may be), be
recomputed as if:

     (x) in the case of Options for Common Stock or DSW Stock, or Convertible
Securities, the only Additional Shares of Common Stock or Additional Shares of DSW
Stock, issued or sold were the Additional Shares of Common Stock or Additional
Shares of DSW Stock, if any, actually issued or sold upon the exercise of such
Options or the conversion or exchange of such Convertible Securities and the
consideration received therefor was the consideration actually received by the
Company or DSW, as the case may be, for the issue, sale, grant or assumption of all
such Options, whether or not exercised, plus the consideration actually received by
the Company or DSW, as the case may be, upon such exercise, or for the issue or sale
of all such Convertible Securities which were actually converted or exchanged, plus
the additional consideration, if any, actually received by the Company or DSW, as
the case may be, upon such conversion or exchange, and

     (y) in the case of Options for Convertible Securities, only the Convertible
Securities, if any, actually issued or sold upon the exercise of such Options were
issued at the time of the issue or sale, grant or assumption of such Options, and
the consideration received by the Company or DSW, as the case may be, for the
Additional Shares of Common Stock or Additional Shares of DSW Stock, deemed to have
then been issued was the consideration actually received by the Company or DSW, as
the case may be, for the issue, sale, grant or assumption of all such Options,
whether or not exercised, plus the consideration deemed to have been received by the
Company or DSW, as the case may be, (pursuant to Section 3.6) upon the issue or sale
of such Convertible Securities with respect to which such Options were actually
exercised; and

     (iv) no readjustment pursuant to subdivision (ii) or (iii) above shall have the effect
of decreasing the applicable Purchase Price by an amount in excess of the amount of the
adjustment thereof originally made in respect of the issue, sale, grant or assumption of such
Options or Convertible Securities.

          (c) For the avoidance of doubt, after the consummation of a Spin-Off and satisfaction of the
Company’s obligations to make the distribution required by Section 3.3(b), no adjustment shall be
made pursuant to this Section 3.5 as a result of any issuance by DSW of Additional Shares of DSW
Stock.

          3.6. Computation of Consideration. For the purposes of this Section 3,

          (a) the consideration for the issue or sale of any Additional Shares of Common Stock or
Additional Shares of DSW Stock shall, irrespective of the accounting treatment of such
consideration,

          (i) insofar as it consists of cash, be computed at the gross cash proceeds to the
Company or DSW, as the case may be, without deducting any expenses

17

 

paid or incurred by such company, or any commissions or compensations paid or
concessions or discounts allowed to underwriters, dealers or others performing similar
services in connection with such issue or sale,

          (ii) insofar as it consists of property (including securities) other than cash, be
computed at the Fair Value thereof at the time of such issue or sale, and

          (iii) in case Additional Shares of Common Stock or Additional Shares of DSW Stock are
issued or sold together with other stock or securities or other assets of the Company or DSW,
as the case may be, for a consideration which covers both, be the portion of such
consideration so received, computed as provided in clauses (i) and (ii) above, allocable to
such Additional Shares of Common Stock or Additional Shares of DSW Stock, such allocation to
be determined in the same manner that the Fair Value of property not consisting of cash or
securities is to be determined as provided in the definition of “Fair Value” herein; and

          (b) Additional Shares of Common Stock or Additional Shares of DSW Stock deemed to have been
issued pursuant to Sections 3.2(b) and 3.5(b), relating to Options and Convertible Securities,
shall be deemed to have been issued for a consideration per share determined by dividing

          (i) the total amount, if any, received and receivable by the Company or DSW, as
applicable, as consideration for the issue, sale, grant or assumption of the Options or
Convertible Securities in question, plus the minimum aggregate amount of additional
consideration (as set forth in the instruments relating thereto, without regard to any
provision contained therein for a subsequent adjustment of such consideration to protect
against dilution) payable to the Company or DSW, as the case may be, upon the exercise in
full of such Options or the conversion or exchange of such Convertible Securities or, in the
case of Options for Convertible Securities, the exercise of such Options for Convertible
Securities and the conversion or exchange of such Convertible Securities, in each case
computing such consideration as provided in the foregoing subclause (a),

by

          (ii) the maximum number of shares of Common Stock or DSW Stock, as applicable, (as set
forth in the instruments relating thereto, without regard to any provision contained therein
for a subsequent adjustment of such number to protect against dilution) issuable upon the
exercise of such Options or the conversion or exchange of such Convertible Securities.

          3.7. Dilution in Case of Other Securities. In case any Other Securities shall be
issued or sold or shall become subject to issue or sale upon the conversion or exchange of any
stock (or Other Securities) of the Company or DSW (or any issuer of Other Securities or any other
Person referred to in Section 4) or to subscription, purchase or other acquisition pursuant to any
Options issued or granted by the Company or DSW (or any such other issuer or Person) for a
consideration such as to dilute, on a basis consistent with the standards established in the other

18

 

provisions of this Section 3, the purchase rights, if any, with respect to such Other
Securities, granted by this Warrant, then, and in each such case, the computations, adjustments and
readjustments provided for in this Section 3 with respect to the applicable Purchase Price shall be
made as nearly as possible in the manner so provided and applied to determine the amount of Other
Securities from time to time receivable upon the exercise of the Warrants, so as to protect the
holders of the Warrants against the effect of such dilution.

          3.8. De Minimis Adjustments. If the amount of any adjustment of the Purchase Price
required pursuant to Section 3.5 would be less than one tenth (1/10) of one percent (1%) of such
Purchase Price in effect at the time such adjustment is otherwise so required to be made, such
amount shall be carried forward and adjustment with respect thereto made at the time of and
together with any subsequent adjustment which, together with such amount and any other amount or
amounts so carried forward, shall aggregate a change in such Purchase Price of at least one tenth
(1/10) of one percent (1%) of such Purchase Price. All calculations under this Warrant shall be
made to the nearest one-hundredth of a share.

          3.9. Abandoned Dividend or Distribution. If the Company shall take a record of the
holders of Common Stock or, if DSW shall take a record of the holders of DSW Stock for the purpose
of entitling them to receive a dividend or other distribution (which results in an adjustment to
the applicable Purchase Price under the terms of this Warrant) and shall, thereafter, and before
such dividend or distribution is paid or delivered to shareholders entitled thereto, legally
abandon its plan to pay or deliver such dividend or distribution, then any adjustment made to the
applicable Purchase Price by reason of the taking of such record shall be reversed, and any
subsequent adjustments, based thereon, shall be recomputed; provided, however, that no
additional Purchase Price or any other adjustment shall be required with regard to Warrant Shares
that have been issued upon exercise of the Warrant prior to such abandonment.

          3.10. Ownership of DSW Stock. The Company shall at all times while this Warrant is
outstanding, but only prior to the consummation of a Spin-Off and satisfaction of the Company’s
obligations pursuant to Section 3.3(b), retain ownership of at least that number of shares of DSW
Stock sufficient to permit exercise in full of this Warrant and any other outstanding Conversion
Warrants and Term Loan Warrants for shares of DSW Stock without regard to any limit on
exercisability set forth in Section 2.5 or otherwise in this Warrant or any comparable provision in
the Conversion Warrants. The Company shall take all actions necessary such that the shares of DSW
Stock required hereby to be owned by it shall remain free of all Liens, other than Permitted Liens.

          4. CONSOLIDATION, MERGER, ETC.

          4.1. By the Company. In case the Company after the date hereof (a) shall consolidate
with or merge into any other Person and shall not be the continuing or surviving corporation of
such consolidation or merger, or (b) shall permit any other Person to consolidate with or merge
into the Company and the Company shall be the continuing or surviving Person but, in connection
with such consolidation or merger, the Common Stock or Other Securities of the Company shall be
changed into or exchanged for stock or other securities of any other Person or cash or any other
property, or (c) shall transfer all or substantially all of its properties or assets to any other
Person, or (d) shall effect a capital reorganization or reclassification of the Common

19

 

Stock or Other Securities of the Company (other than a capital reorganization or
reclassification for which adjustment in the Purchase Price and the number of shares of Common
Stock obtainable upon exercise of this Warrant is provided in Section 3.4), then, and in the case
of each such transaction, proper provision shall be made so that, upon the basis and the terms and
in the manner provided in this Warrant, the Holder of this Warrant, upon the exercise hereof for
Common Stock at any time after the consummation of such transaction, shall be entitled to receive
(at the aggregate Common Stock Purchase Price in effect at the time of such consummation for all
Common Stock or Other Securities issuable upon such exercise immediately prior to such
consummation), in lieu of the Common Stock or Other Securities issuable upon such exercise prior to
such consummation, the highest amount of securities, cash or other property to which such Holder
would actually have been entitled as a shareholder upon such consummation if such Holder had
exercised this Warrant for Common Stock immediately prior thereto, subject to adjustments
(subsequent to such consummation) as nearly equivalent as possible to the adjustments provided for
in Sections 3 through 5, provided that if a purchase, tender or exchange offer shall have
been made to and accepted by the holders of more than 50% of the outstanding shares of Common
Stock, and if the Holder so designates in a notice given to the Company on or before the date
immediately preceding the date of the consummation of such transaction, the Holder of this Warrant
shall be entitled to receive the highest amount of securities, cash or other property to which it
would actually have been entitled as a shareholder if the Holder of this Warrant had exercised this
Warrant, including the payment of the Purchase Price in accordance with Section 2.1(b) hereof,
prior to the expiration of such purchase, tender or exchange offer and accepted such offer, subject
to adjustments (from and after the consummation of such purchase, tender or exchange offer) as
nearly equivalent as possible to the adjustments provided for in Section 3 through 5.

          4.2. By DSW. In case DSW after the date hereof, but prior to the consummation of a
Spin-Off and satisfaction of the Company’s obligations pursuant to Section 3.3(b), (a) shall
consolidate with or merge into any other Person and shall not be the continuing or surviving
corporation of such consolidation or merger, or (b) shall permit any other Person to consolidate
with or merge into DSW and DSW shall be the continuing or surviving Person but, in connection with
such consolidation or merger, the DSW Stock or Other Securities of DSW shall be changed into or
exchanged for stock or other securities of any other Person or cash or any other property, or (c)
shall transfer all or substantially all of its properties or assets to any other Person, or (d)
shall effect a capital reorganization or reclassification of the DSW Stock or Other Securities of
DSW (other than a capital reorganization or reclassification for which adjustment in the Purchase
Price and the number of shares of DSW Stock obtainable upon exercise of this Warrant is provided in
Section 3.4), then, the Holder of this Warrant, upon the exercise hereof for DSW Stock at any time
after the consummation of such transaction, shall be entitled to receive (at the aggregate DSW
Stock Purchase Price in effect at the time of such consummation for all DSW Stock or Other
Securities issuable upon such exercise immediately prior to such consummation), in lieu of the DSW
Stock or Other Securities issuable upon such exercise prior to such consummation, the highest
amount of securities, cash or other property to which such Holder would actually have been entitled
as a shareholder upon such consummation if such Holder had exercised this Warrant for DSW Stock
immediately prior thereto, subject to adjustments (subsequent to such consummation) as nearly
equivalent as possible to the adjustments provided for in Sections 3 through 5.

20

 

          4.3. Assumption of Obligations. Notwithstanding anything contained in this Warrant or
in the Financing Agreement to the contrary, the Company shall not effect, and, prior to the
consummation of a Spin-Off and satisfaction of the Company’s obligations pursuant to Section
3.3(b), shall not consent to the effecting by DSW of, any of the transactions described in clauses
(a) through (d) of Section 4.1 and Section 4.2, respectively, unless, prior to the consummation
thereof, each Person (other than the Company or DSW (as the case may be)), which may be required to
deliver any stock, securities, cash or property upon the exercise of this Warrant as provided
herein shall assume, by written instrument delivered to, and reasonably satisfactory to, the Holder
of this Warrant, (a) the obligations of the Company under this Warrant (and if the Company shall
survive the consummation of such transaction, such assumption shall be in addition to, and shall
not release the Company from, any continuing obligations of the Company, under this Warrant), (b)
the obligations of the Company under the Registration Rights Agreement or the obligations of DSW
under the DSW Registration Rights Agreement, and (c) the obligation of the Company to deliver to
the Holder such shares of stock, securities, cash or property as, in accordance with the foregoing
provisions of this Section 4, the Holder may be entitled to receive. Unless expressly stated
herein, nothing in this Section 4 shall be deemed to authorize the Company to enter into, or to
consent to the entering by DSW into, any transaction.

          5. OTHER DILUTIVE EVENTS. In case any event shall occur as to which the provisions of
Section 3 or Section 4 hereof are not strictly applicable or if strictly applicable would not
fairly protect the purchase rights of the Holder in accordance with the essential intent and
principles of such Sections, then in each such case, the Board of Directors of the Company shall
make an adjustment in the application of such provisions, in accordance with such essential intent
and principles, so as to preserve, without dilution, the purchase rights represented by this
Warrant.

          6. NO DILUTION OR IMPAIRMENT. The Company shall not, (i) by amendment of its articles
of incorporation or through any consolidation, merger, reorganization, transfer of assets,
dissolution, issue or sale of securities or any other voluntary action, or (ii) prior to the
consummation of a Spin-Off and satisfaction of the Company’s obligations pursuant to Section
3.3(b), by consent to or approval of any amendment of DSW’s articles of incorporation or any
consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale of securities
or any other voluntary action by DSW, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Warrant against dilution or other impairment. Without
limiting the generality of the foregoing, the Company (a) shall not permit the par value of any
shares of stock receivable upon the exercise of this Warrant to exceed the amount payable therefor
upon such exercise, (b) shall take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of stock, in the case
of Common Stock, or transfer shares of DSW Stock, in the case of DSW Stock, free from all liens,
security interests, encumbrances (in each of the foregoing cases, other than those imposed by the
Holder), taxes, preemptive rights and charges on the exercise of the Warrants from time to time
outstanding, and (c) shall not take any action, or consent to the taking or approval of any action
by DSW, which results in any adjustment of the Purchase Price if the total number of Warrant Shares
issuable after the action upon the exercise of all of the

21

 

Warrants would exceed the total number of shares of Common Stock then authorized by the
Company’s articles of organization, or, in the case of shares of DSW Stock, the number of shares of
DSW Stock owned by the Company and available for the purpose of issue upon such exercise.

          7. ACCOUNTANTS’ REPORT. In each case of any adjustment or readjustment in the number
of the Warrant Shares issuable upon the exercise of this Warrant or in the applicable Purchase
Price, including, without limitation, pursuant to Section 3.1, 3.2, 3.4 or 3.5, the Company at its
sole expense shall promptly (after becoming aware of an adjustment with respect to the DSW Stock)
compute such adjustment or readjustment in accordance with the terms of this Warrant and prepare a
report setting forth such adjustment or readjustment and showing in reasonable detail the method of
calculation thereof and the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or to be received by the Company for any Additional
Shares of Common Stock or by DSW for any Additional Shares of DSW Stock issued or sold or deemed to
have been issued under Section 3, (b) the number of shares of Common Stock or DSW Stock outstanding
or deemed to be outstanding, and (c) the applicable Purchase Price in effect immediately prior to
such issue or sale and as adjusted and readjusted (if required by Section 3) on account thereof.
The Company shall forthwith mail a copy of each such report to the Holder. In the event that the
Holder disagrees with such report, the Company shall cause independent certified public accountants
of recognized national standing (which may be the regular auditors of the Company) selected by the
Company to review and verify or revise such computation (other than any computation of the Fair
Value of property) and report. The Company shall also keep copies of all such reports at its
principal office and shall cause the same to be available for inspection at such office during
normal business hours by the Holder.

          8. NOTICES OF CORPORATE ACTION. In the event of:

          (a) any taking by the Company or, prior to the consummation of a Spin-Off and satisfaction of
the Company’s obligations pursuant to Section 3.3(b), DSW, of a record of the holders of any class
of securities for the purpose of determining the holders thereof who are entitled to receive any
dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any
shares of stock of any class or any other securities or property, or to receive any other right, or

          (b) any capital reorganization of the Company or, prior to the consummation of a Spin-Off and
satisfaction of the Company’s obligations pursuant to Section 3.3(b), DSW, any reclassification or
recapitalization of the capital stock of the Company or, prior to the consummation of a Spin-Off
and satisfaction of the Company’s obligations pursuant to Section 3.3(b), DSW, any consolidation or
merger involving the Company or, so long as no Spin-Off shall have occurred, DSW and any other
Person, any transaction or series of transactions in which more than 50% of the voting securities
of the Company are transferred to another Person, or any transfer, sale or other disposition of all
or substantially all the assets of the Company or, prior to the consummation of a Spin-Off and
satisfaction of the Company’s obligations pursuant to Section 3.3(b), DSW to any other Person, or

22

 

          (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company or,
prior to the consummation of a Spin-Off and satisfaction of the Company’s obligations pursuant to
Section 3.3(b), DSW, or

          (d) any Spin-Off, or

          (e) the exercise by the Company of any right or remedy with respect to its Lien on the capital
stock of DSW,

the Company shall mail to each holder of a Warrant a notice specifying (i) the date or expected
date on which any such record is to be taken for the purpose of such dividend, distribution or
right, and the amount and character of such dividend, distribution or right, and (ii) the date or
expected date on which any such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, sale, disposition, dissolution, liquidation or winding-up is to take place and
the time, if any such time is to be fixed, as of which the holders of record of Common Stock or DSW
Stock (or Other Securities) shall be entitled to exchange their shares of Common Stock or DSW Stock
(or Other Securities) for the securities or other property deliverable upon such reorganization,
reclassification, recapitalization, consolidation, merger, transfer, dissolution, liquidation or
winding-up. Such notice shall be mailed at least 20 days prior to the date therein specified, and
in the case of a Spin-off, such notice shall be mailed at least 90 days prior to the record date of
such Spin-Off.

          9. REGISTRATION OF STOCK. If any shares of Common Stock required to be reserved for
purposes of exercise of this Warrant require registration with or approval of any governmental
authority under any federal or state law (other than the Securities Act) before such shares may be
issued or transferred upon exercise, the Company shall, at its expense and as expeditiously as
possible, use its best efforts to cause such shares to be duly registered or approved, as the case
may be. At any such time as Common Stock is listed on any national securities exchange, the
Company shall, at its expense, obtain promptly and maintain the approval for listing on each such
exchange, upon official notice of issuance, the shares of Common Stock issuable upon exercise of
the then outstanding Warrants and maintain the listing of such shares after their issuance; and the
Company shall also list on such national securities exchange, register under the Exchange Act and
maintain such listing of, any Other Securities of the Company that at any time are issuable upon
exercise of the Warrants, if and at the time that any securities of the same class shall be listed
on such national securities exchange by the Company.

          10. RESTRICTIONS ON TRANSFER.

          10.1. Restrictive Legends. Except as otherwise permitted by this Section 10, each
Warrant (including each Warrant issued upon the transfer of any Warrant) shall be stamped or
otherwise imprinted with a legend in substantially the following form:

     “THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED OR

23

 

OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. THIS WARRANT
AND SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
COMPLIANCE WITH THE TERMS AND CONDITIONS SPECIFIED IN THIS WARRANT.”

Except as otherwise permitted by this Section 10, each certificate for Common Stock or DSW Stock
(or Other Securities) issued upon the exercise of any Warrant, and each certificate issued upon the
transfer of any such Common Stock or DSW Stock (or Other Securities), shall be stamped or otherwise
imprinted with a legend in substantially the following form:

     “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE, AND MAY
NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT AND
SUCH LAWS.”

          10.2. Transfer to Comply With the Securities Act. Restricted Securities may not be
sold, assigned, pledged, hypothecated, encumbered or in any manner transferred or disposed of (a
“Transfer”), in whole or in part, except in compliance with the provisions of the
Securities Act and state securities or Blue Sky laws and the terms and conditions hereof.

          10.3. Notice of Transfer. Each Holder shall, prior to any Transfer of any Warrants,
give written notice to the Company of such Holder’s intention to Transfer.

          10.4. Termination of Restrictions. The restrictions imposed by this Section 10 on the
transferability of Restricted Securities shall cease and terminate as to any particular Restricted
Securities (a) when a registration statement with respect to the sale of such securities shall have
been declared effective under the Securities Act and such securities shall have been disposed of in
accordance with such registration statement, (b) when such securities are sold pursuant to Rule 144
(or any similar provision then in force) under the Securities Act, or (c) when, in the reasonable
opinion of both counsel for the Holder and counsel for the Company or DSW, as applicable, such
restrictions are no longer required or necessary in order to protect the Company or DSW, as
applicable, against a violation of the Securities Act upon any sale or other disposition of such
securities without registration thereunder. Whenever such restrictions shall cease and terminate
as to any Restricted Securities of the Company, the Holder shall be entitled to receive from the
Company, without expense, new securities of like tenor not bearing the applicable legends required
by Section 10.1.

          10.5. Exempt Transfers. The restrictions on the transfer of this Warrant or the
Warrant Shares set forth in this Section 10 shall not apply to any transfer to an affiliate of the

24

 

Holder or to any transfer to any other Person, provided that such transfer is made in
compliance with the provisions of the Securities Act and state securities laws.

          11. RESERVATION OF STOCK, ETC. The Company shall at all times reserve and keep
available, solely for issuance (in the case of Common Stock) or transfer and delivery upon exercise
of this Warrant, the number of shares of Common Stock, DSW Stock (which, for the avoidance of
doubt, may be Class B Shares) or Other Securities from time to time issuable or transferable upon
exercise of this Warrant without regard to any limit on exercisability set forth in Section 2.5 or
otherwise in this Warrant or any comparable provision in the Conversion Warrants. The Company
shall cause all shares of Common Stock, or Other Securities of the Company issuable and shall use
its reasonable best efforts to cause all shares of DSW Stock transferable, upon exercise of any
Warrants to be duly authorized and, when issued or transferred upon such exercise, to be validly
issued and, in the case of shares, fully paid and nonassessable, with no liability on the part of
the holders thereof, and, in the case of all securities, shall be free from all liens, security
interests, encumbrances (in each of the foregoing cases, other than those imposed by the Holder),
taxes, preemptive rights and charges. The transfer agent for the Common Stock, and every
subsequent transfer agent for any shares of the Company’s capital stock issuable upon the exercise
of any of the purchase rights represented by this Warrant, are hereby irrevocably authorized and
directed at all times until the Expiration Date to reserve such number of authorized and unissued
shares as shall be requisite for such purpose. The Company shall keep copies of this Warrant on
file with the transfer agent for the Common Stock and with every subsequent transfer agent for any
shares of the Company’s capital stock issuable upon the exercise of the rights of purchase
represented by this Warrant. The Company shall supply such transfer agent with duly executed stock
certificates for such purpose. All Warrants surrendered upon the exercise of the rights thereby
evidenced shall be canceled, and such canceled Warrants shall constitute sufficient evidence of the
number of shares of common stock, if exercised for Common Stock, which have been issued upon the
exercise of such Warrants. Subsequent to the Expiration Date, no shares of stock need be reserved
in respect of any unexercised Warrant.

          12. REGISTRATION AND TRANSFER OF WARRANTS, ETC.

          12.1. Warrant Register; Ownership of Warrants. Each Warrant issued by the Company
shall be numbered and shall be registered in a warrant register (the “Warrant Register”) as it is
issued and transferred, which Warrant Register shall be maintained by the Company at its principal
office or, at the Company’s election and expense, by a Warrant agent or the transfer agent. The
Company shall be entitled to treat the registered Holder of any Warrant on the Warrant Register as
the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or
other claim to or interest in such Warrant on the part of any other Person, and shall not be
affected by any notice to the contrary, except that, if and when any Warrant is properly assigned
in blank, the Company may (but shall not be obligated to) treat the bearer thereof as the owner of
such Warrant for all purposes. Subject to Section 10, a Warrant, if properly assigned, may be
exercised by a new holder without a new Warrant first having been issued.

          12.2. Transfer of Warrants. Subject to compliance with Section 10, if applicable,
this Warrant and all rights hereunder are transferable in whole or in part, without

25

 

charge to the Holder hereof, upon surrender of this Warrant with a properly executed Form of
Assignment attached hereto as Exhibit C at the principal office of the Company. Upon any partial
transfer, the Company shall at its expense issue and deliver to the Holder a new Warrant of like
tenor, in the name of the Holder, which shall be exercisable for such number of shares of Common
Stock with respect to which rights under this Warrant were not so transferred.

          12.3. Replacement of Warrants. On receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement reasonably satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender of such Warrant to the Company at its principal office and cancellation
thereof, the Company at its expense shall execute and deliver, in lieu thereof, a new Warrant of
like tenor.

          12.4. Adjustments to Purchase Price and Number of Shares. Notwithstanding any
adjustment in the Purchase Price or in the number or kind of Warrant Shares purchasable upon
exercise of this Warrant, any Warrant theretofore or thereafter issued may continue to express the
same number and kind of Warrant Shares as are stated in this Warrant, as initially issued.

          12.5. Fractional Shares. Notwithstanding any adjustment pursuant to Section 3 in the
number of Warrant Shares covered by this Warrant or any other provision of this Warrant, the
Company shall not be required to issue or transfer fractions of shares upon exercise of this
Warrant or to distribute certificates which evidence fractional shares. In lieu of fractional
shares, the Company shall make payment to the Holder, at the time of exercise of this Warrant as
herein provided, in an amount in cash equal to such fraction multiplied by the Current Market Price
of a share of Common Stock or DSW Stock, as applicable, on the date of Warrant exercise.

          13. SECURITIES ACT MATTERS. The Holder represents and warrants to the Company as of
the Original Issuance Date and as of date hereof that:

          (a) The Holder is acquiring this Warrant for its own account, without a view to, or sale in
connection with, the distribution thereof. The Holder has no present agreement, undertaking,
arrangement, commitment or obligation providing for the disposition of the Warrant or the Warrant
Shares, all without prejudice, however, to the right of the Holder at any time, in accordance with
this Warrant, lawfully to sell or otherwise to dispose of all or any part of the Warrant or Warrant
Shares held by it;

          (b) The Holder is an “accredited investor” within the meaning of Regulation D under the
Securities Act. The Holder has not retained, utilized or been represented by any broker or finder
in connection with the transactions contemplated by this Warrant;

          (c) The Holder acknowledges that, subject to the Registration Rights Agreement and the DSW
Registration Rights Agreement (A) the Warrants and the Warrant Shares have not been registered
under the Securities Act, in reliance on the non-public offering exemption contained in Section
4(2) of the Securities Act and Regulation D thereunder; (B) because the Warrants and the Warrant
Shares are not so registered, the Holder must bear the

26

 

economic risk of holding this Warrant and the Warrant Shares for an indefinite period of time
unless the Warrants and the Warrant Shares are subsequently registered under the Securities Act or
an exemption from such registration is available with respect thereto; (C) Rule 144 under the
Securities Act may or may not be available for resales of the Warrants or the Warrant Shares in the
future and, if so, may only be available for sales in limited amounts; (D) there is presently no
trading market for the Warrants and there is no assurance that such market will exist in the
future; and (E) while there is presently a trading market for the Warrant Shares, there is no
assurance that such market will be in existence in the future; and

          (d) If the Holder decides to dispose of this Warrant or the Warrant Shares, which it does not
now contemplate, the Holder can do so only in accordance and in compliance with the Securities Act
and Rule 144 or another exemption from the registration requirements of the Securities Act, as then
in effect or through an effective registration statement under the Securities Act.

          14. REMEDIES; SPECIFIC PERFORMANCE. The Company stipulates that there would be no
adequate remedy at law to any Holder in the event of any default or threatened default by the
Company in the performance of or compliance with any of the terms of this Warrant and accordingly,
the Company agrees that, in addition to any other remedy to which the Holder may be entitled at law
or in equity, the Holder shall be entitled to seek to compel specific performance of the
obligations of the Company under this Warrant, without the posting of any bond, in accordance with
the terms and conditions of this Warrant in any court of the United States or any State thereof
having jurisdiction, and if any action should be brought in equity to enforce any of the provisions
of this Warrant, the Company shall not raise the defense that there is an adequate remedy at law.
Except as otherwise provided by law, a delay or omission by the Holder hereto in exercising any
right or remedy accruing upon any such breach shall not impair the right or remedy or constitute a
waiver of or acquiescence in any such breach. No remedy shall be exclusive of any other remedy.
All available remedies shall be cumulative.

          15. NO RIGHTS OR LIABILITIES AS SHAREHOLDER. Nothing contained in this Warrant shall
be construed as conferring upon the Holder hereof any rights as a shareholder of the Company or as
imposing any obligation on the Holder to purchase any securities or as imposing any liabilities on
the Holder as a shareholder of the Company, whether such obligation or liabilities are asserted by
the Company or by creditors of the Company.

          16. NOTICES. All notices and other communications (and deliveries) provided for or
permitted hereunder shall be made in writing by hand delivery, telecopier, any
nationally-recognized courier guaranteeing overnight delivery or first class registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

	 	 	 
	If to the Company:

	 	Retail Ventures Inc.
	 

	 	3241 Westerville Road
	 

	 	Columbus, OH 43224
	 

	 	Attn: James McGrady, Chief Financial Officer
	 

	 	Fax No. (614) 473-2721

27

 

	 	 	 
	with copies to:

	 	Retail Ventures, Inc.
	 

	 	3241 Westerville Road
	 

	 	Columbus, OH 43224
	 

	 	Attn: General Counsel
	 

	 	Fax No. (614) 337-4682
	 
	 	 
	If to Holder:

	 	Cerberus Partners, L.P.
	 

	 	299 Park Avenue
	 

	 	Floor 22
	 

	 	New York, NY 10171
	 

	 	Attn: Lenard Tessler
	 

	 	Fax No. (212) 421-2958
	 
	 	 
	with copies to:

	 	Schulte Roth & Zabel LLP
	 

	 	919 Third Avenue
	 

	 	New York, NY 10022
	 

	 	Attn: Stuart D. Freedman, Esq.
	 

	 	Fax No. (212) 593-5955

          All such notices and communications (and deliveries) shall be deemed to have been duly given:
at the time delivered by hand, if personally delivered; when receipt is acknowledged, if
telecopied; on the next Business Day, if timely delivered to a courier guaranteeing overnight
delivery; and five days after being deposited in the mail, if sent first class or certified mail,
return receipt requested, postage prepaid; provided, that the exercise of any Warrant shall
be effective in the manner provided in Section 2.

          17. AMENDMENTS. This Warrant and any term hereof may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the provisions hereof may
not be given, except by written instrument duly executed by the Company and the Holder.

          18. DESCRIPTIVE HEADINGS, ETC. The headings in this Warrant are for convenience of
reference only and shall not limit or otherwise affect the meaning of terms contained herein.
Unless the context of this Warrant otherwise requires: (1) words of any gender shall be deemed to
include each other gender; (2) words using the singular or plural number shall also include the
plural or singular number, respectively; (3) the words “hereof”, “herein” and “hereunder” and words
of similar import when used in this Warrant shall refer to this Warrant as a whole and not to any
particular provision of this Warrant, and Section and paragraph references are to the Sections and
paragraphs of this Warrant unless otherwise specified; (4) the word “including” and words of
similar import when used in this Warrant shall mean “including, without limitation,” unless
otherwise specified; (5) “or” is not exclusive; and (6) provisions apply to successive events and
transactions.

          19. GOVERNING LAW. This Agreement shall be governed by and construed in accordance
with the law of the State of New York.

          20. REGISTRATION RIGHTS AGREEMENT. The shares of Common Stock (and Other Securities
of the Company) issuable upon exercise of this Warrant shall

28

 

constitute Registrable Securities (as such term is defined in the Registration Rights
Agreement). The shares of DSW Stock issuable upon exercise of this Warrant shall constitute
Registrable Securities (as such term is defined in the DSW Registration Rights Agreement). Each
Holder shall be entitled to all of the benefits afforded to a holder of any such Registrable
Securities under the Registration Rights Agreement and such Holder, by its acceptance of this
Warrant, agrees to be bound by and to comply with the terms and conditions of the Registration
Rights Agreement and the DSW Registration Rights Agreement, applicable to such Holder as a holder
of such Registrable Securities. In addition to the foregoing, to the extent the Holder exercises
this Warrant into DSW Stock within 180 days of a Qualifying IPO, such Holder agrees not to transfer
such Warrant Shares until the date that is 181 days after the closing date of such Qualifying IPO.

          21. EXPIRATION. The right to exercise this Warrant shall expire at 5:00 p.m., New
York City time, on June 11, 2012.

          22. COSTS AND ATTORNEYS’ FEES. In the event that any action, suit or other proceeding
is instituted concerning or arising out of this Warrant, the Company agrees and the Holder, by
taking and holding this Warrant agrees, that the prevailing party shall recover from the
non-prevailing party all of such prevailing party’s costs and reasonable attorneys’ fees incurred
in each and every such action, suit or other proceeding, including any and all appeals or petitions
therefrom.

[Remainder of this page intentionally left blank]

29

 

          IN WITNESS WHEREOF, the Company has executed and delivered this Warrant as of the date first
above written.

	 	 	 	 	 
	 	RETAIL VENTURES, INC.

 	 
	 	By:  	/s/ James A. McGrady
 	 
	 	Name:  	James A. McGrady 	 
	 	Title:  	Chief Financial Officer 	 

30

 

	 	 	 	 	 

	 	 	 
	 

	 	EXHIBIT A to
	 

	 	Common Stock Purchase Warrant

FORM OF

ELECTION TO PURCHASE SHARES OF COMMON STOCK

          The
undersigned hereby irrevocably elects to exercise the Warrant to
purchase ______ Common
Shares, no par value per share (“Common Stock”), of RETAIL VENTURES, INC. and hereby makes payment
of $______ therefor [or] makes payment by reduction pursuant to Section 2.1(b)(ii) of the Warrant
of the number of shares of Common Stock otherwise issuable to the Holder upon Warrant exercise by
___ shares [or] makes payment therefor by delivery of the following Common Stock Certificates of
the Company (properly endorsed for transfer in blank) for cancellation by the Company pursuant to
Section 2.1(b)(iii) of the Warrant, certificates of which are
attached hereto for
cancellation _______________
[list certificates by number and amount]. The undersigned hereby requests that certificates for
such shares be issued and delivered as follows:

	 	 	 
	ISSUE TO:
	 	 
	 

	 	 

(NAME)

 

(ADDRESS, INCLUDING ZIP CODE)

 

(SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

	 	 	 
	DELIVER TO:
	 	 
	 

	 	 

(NAME)

 

(ADDRESS, INCLUDING ZIP CODE)

          If the number of shares of Common Stock purchased (and/or reduced) hereby is less than the
number of shares of Common Stock covered by the Warrant, the undersigned requests that a new
Warrant representing the number of shares of Common Stock not so purchased (or reduced) be issued
and delivered as follows:

	 	 	 
	ISSUE TO:
	 	 
	 

	 	 

(NAME OF HOLDER)

 

(ADDRESS, INCLUDING ZIP CODE)

	 	 	 
	DELIVER TO:
	 	 
	 

	 	 

(NAME OF HOLDER)

 

(ADDRESS, INCLUDING ZIP CODE)

	 	 	 
	Dated:                                                             , 20___

	 	NAME OF HOLDER

	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

31

 

	 	 	 
	 

	 	EXHIBIT B to
	 

	 	Common Stock Purchase Warrant

FORM OF

ELECTION TO PURCHASE SHARES OF DSW STOCK

          The
undersigned hereby irrevocably elects to exercise the Warrant to purchase ___ Class A
Common Shares, no par value, of DSW Inc. (“DSW Stock”) and
hereby makes payment of $______
therefor [or] makes payment by reduction pursuant to Section 2.1(b)(ii) of the Warrant of the
number of shares of DSW Stock otherwise issuable to the Holder upon
Warrant exercise by ___ shares
[or] makes payment therefor by delivery of the following DSW Stock Certificates of DSW Inc.
(properly endorsed for transfer in blank) for transfer to the Company pursuant to Section
2.1(b)(iii) of the Warrant, certificates of which are attached hereto
for
cancellation _______________ [list
certificates by number and amount]. The undersigned hereby requests that certificates for such
shares be issued and delivered as follows:

	 	 	 
	ISSUE TO:
	 	 
	 

	 	 

(NAME)

 

(ADDRESS, INCLUDING ZIP CODE)

 

(SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

	 	 	 
	DELIVER TO:
	 	 
	 

	 	 

(NAME)

 

(ADDRESS, INCLUDING ZIP CODE)

     If the number of shares of DSW Stock purchased (and/or reduced) hereby is less than the number
of shares of DSW Stock covered by the Warrant, the undersigned requests that a new Warrant
representing the number of shares of DSW Stock not so purchased (or reduced) be issued and
delivered as follows:

	 	 	 
	ISSUE TO:
	 	 
	 

	 	 

(NAME OF HOLDER)

 

(ADDRESS, INCLUDING ZIP CODE)

	 	 	 
	DELIVER TO:
	 	 
	 

	 	 

(NAME OF HOLDER)

 

(ADDRESS, INCLUDING ZIP CODE)

	 	 	 
	Dated:                                                             , 20___

	 	NAME OF HOLDER

	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

32

 

	 	 	 
	 

	 	EXHIBIT C to
	 

	 	Common Stock Purchase Warrant

FORM OF ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto the Assignee named below all of the
rights of the undersigned to purchase Common Shares, no par value per
share (“Common Stock”) of RETAIL VENTURES, INC. (the “Company”)
or, after the consummation of a Qualifying IPO (as defined in the Warrant) but prior to the consummation of a Spin-Off (as defined in
the Warrant) and satisfaction of the Company’s obligations pursuant to Section 3.3(b) and at its election, Class A common shares no
par value per share (“DSW Stock”) of DSW Inc. owned by the Company, and represented by the Warrant, with respect to the number of
shares of Common Stock and DSW Stock set forth below:

	 	 	 	 	 	 	 
	Name of	 	 	 	No. of Shares of	 	No. of Shares of
	Assignee	 	Address	 	Common Stock	 	DSW Stock
	 
	 	 	 	 	 	 

and does
hereby irrevocably constitute and appoint
______ Attorney to make such transfer on the books of maintained for that
purpose, with full power of substitution in the premises.

	 	 	 
	Dated:                                                              , 20___

	 	NAME OF HOLDER

	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

33

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