Document:

Exhibit
4.02

[FORM OF NOTE]

[FACE OF NOTE]

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, exchange or
payment, 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.

	
  REGISTERED

  	
   

  	
  CUSIP:

  
	
   

  	
   

  	
   

  
	
  NO. 1

  	
   

  	
  PRINCIPAL AMOUNT: $

  

 

CREDIT SUISSE
(USA), INC.

Reverse Convertible Securities Linked to [          ]

due [          ]

CREDIT SUISSE (USA), INC., a Delaware corporation (the
“Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede
& Co., or registered assigns, at the office or agency of the Company in New
York, New York, the Redemption Amount (as defined on the reverse hereof) on the
Maturity Date (as defined on the reverse hereof), in the coin or currency of
the United States and to pay a coupon of [          ]% per annum on the principal
amount from [DATE].  The coupon payment
will be payable quarterly in arrears on [DATE[S]].

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

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

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

	
  

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:   Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:   Authorized
  Signatory

  

 

 

CERTIFICATE OF AUTHENTICATION

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

Dated:  

	
   

  	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
   

  	
  as successor Trustee to

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE, N.A.,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  Authorized
  Signatory

  

 

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[REVERSE OF NOTE]

CREDIT SUISSE (USA), INC.

Reverse Convertible Securities Linked to [          ]

due [          ]

This Note is one
of a duly authorized issue of debentures, notes, bonds or other evidences of
indebtedness of the Company (the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to a senior indenture,
dated as of June 1, 2001 (the “Indenture”), between the Company and the Bank of
New York (the “Trustee”), as successor Trustee to JPMorgan Chase Bank, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company, and the Holders of the
Securities.  The Securities may be issued
in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption provisions (if
any), may be subject to different sinking, purchase or analogous funds (if any)
and may otherwise vary as provided in the Indenture.  This Note is one of a series designated as
the Reverse Convertible Securities Linked to [          ] due [DATE] (the “Note”).

A coupon will be payable on this Note of [          ]% per annum on the principal
amount from [DATE].  The coupon payment
will be payable quarterly in arrears on [DATE[S]].

This Note is payable in the manner, with the effect
and subject to the conditions provided in the Indenture.

If a payment date is not a business day as defined in
the Indenture at a place of payment, payment may be made at that place on the
next succeeding day that is a business day, and no interest shall accrue for
the intervening period.

The Indenture provides that, without prior notice to
any Holders, the Company and the Trustee may amend the Indenture and the
Securities of any series with the written consent of the Holders of a majority
in principal amount of the outstanding Securities of all series affected by
such amendment (all such series voting as one class), and the Holders of a
majority in principal amount of the outstanding Securities of all series
affected thereby (all such series voting as one class) may waive future compliance
by the Company with any provision of the Indenture or the Securities of such
series by written notice to the Trustee; provided that, without the consent of
each Holder of the Securities of each series affected thereby, an amendment or
waiver, including a waiver of past defaults, may not: (i) extend the stated
maturity of the Principal of, or any sinking fund obligation or any installment
of interest on, such Holder’s Security, or reduce the principal amount thereof
or the rate of interest thereon (including any amount in respect of original
issue discount), or any premium payable with respect thereto, or adversely
affect the rights of such Holder under any mandatory redemption or repurchase
provision or any right of redemption or repurchase at the option of such
Holder, or reduce the amount of the Principal of an Original Issue Discount
Security that would be due and payable upon an acceleration of the maturity
thereof or the amount thereof provable in bankruptcy, or change any place of
payment where, or the currency in which, any Security of such series or any

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premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement
of any such payment on or after the due date therefor; (ii) reduce the
percentage in principal amount of outstanding Securities of the relevant series
the consent of whose Holders is required for any such supplemental indenture,
for any waiver of compliance with certain provisions of the Indenture or
certain Defaults and their consequences provided for in the Indenture; (iii)
waive a Default in the payment of Principal of or interest on any Security of
such Holder; or (iv) modify any of the provisions of the Indenture governing
supplemental indentures with the consent of Securityholders except to increase
any such percentage or to provide that certain other provisions of the
Indenture cannot be modified or waived without the consent of the Holder of
each outstanding Security affected thereby.

The Indenture provides that, subject to certain conditions,
the Holders of at least a majority in principal amount (or, if any Securities
are Original Issue Discount Securities, such portion of the Principal as is
then accelerable) of the outstanding Securities of all series affected (voting
as a single class), by notice to the Trustee, may waive an existing Default or
Event of Default with respect to the Securities of such series and its
consequences, except a Default in the payment of Principal of or interest on
any Security or in respect of a covenant or provision of the Indenture which
cannot be modified or amended without the consent of the Holder of each
outstanding Security affected.  Upon any
such waiver, such Default shall cease to exist, and any Event of Default with
respect to the Securities of such series arising therefrom shall be deemed to
have been cured, for every purpose of the Indenture; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any
right consequent thereto.

The Indenture provides that a series of Securities may
include one or more tranches (each a “tranche”) of Securities, including
Securities issued in a Periodic Offering. 
The Securities of different tranches may have one or more different
terms, including authentication dates and public offering prices, but all the
Securities within each such tranche shall have identical terms, including
authentication date and public offering price. 
Notwithstanding any other provision of the Indenture, subject to certain
exceptions, with respect to sections of the Indenture concerning the execution,
authentication and terms of the Securities, redemption of the Securities,
Events of Default of the Securities, defeasance of the Securities and amendment
of the Indenture, if any series of Securities includes more than one tranche,
all provisions of such sections applicable to any series of Securities shall be
deemed equally applicable to each tranche of any series of Securities in the
same manner as though originally designated a series unless otherwise provided
with respect to such series or tranche pursuant to a board resolution or a
supplemental indenture establishing such series or tranche.

No reference herein to the Indenture and no provision
of this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Redemption Amount of
this Note in the manner, at the place, at the time and in the coin or currency
herein prescribed.

The Securities are issuable initially only in
registered form without coupons in denominations of $[          ] and any integral multiples of
$[          ] in excess of that amount at
the office or agency of the Company in the Borough of Manhattan, The City of
New York, and in the manner and subject to the limitations provided in the
Indenture.

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The Securities will not be redeemable at the option of
the Company prior to maturity.

The Company will not be required to pay any Additional
Amounts on the Securities.

Maturity
Date

The Maturity Date of the Securities is [     
    ] (the “Maturity Date”);
however, if a market disruption event exists on the Valuation Date, as
determined by the Calculation Agent, the Maturity Date will be the later of
[          ], and the [          ] business day following the date on
which the closing price for the reference shares is calculated.

Redemption
Amount

The Company will redeem the Securities at maturity for
a redemption amount in cash that will be based on the performance of the
reference shares during the term of the Securities (the “redemption amount”):

(1)          If
the closing price of the reference shares on the New York Stock Exchange (the “relevant
exchange”) is not less than the knock-in level, which is [          ] % of the Initial Share Price, on
any day from but not including [DATE], which is the initial setting date, to
and including [DATE] (the “Valuation Date”), the redemption amount will equal a
cash payment equal to 100% of the principal amount of the Securities.

(2)          If
(i) the closing price of the reference shares on the relevant exchange is less
than the knock-in level on any day from but not including the initial setting
date, to and including the Valuation Date and (ii) the closing price of the
reference shares on the relevant exchange on the Valuation Date (the “Final
Share Price”), is greater than or equal to the Initial Share Price, the
redemption amount will equal a cash payment equal to 100% of the principal
amount of the Securities.

(3)          Otherwise,
the redemption amount will be the physical delivery amount.  The physical delivery amount will be the
number of reference shares per $1,000 principal amount of Securities equal to
$1,000 divided by the Initial Share Price. 
The market value of the physical delivery amount will be less than the
principal amount of the Securities and may be zero.

The “Initial Share Price” is $[          ].

A “business day” means a day, other than a Saturday,
Sunday or a day on which banking institutions in New York, New York are
generally authorized or obligated by law, regulation or executive order to
close and that is also a Trading Day.

A “trading day” means any day, as determined by the
Calculation Agent, on which trading is generally conducted for reference shares
(or, but for the occurrence of a market disruption event, would have been
generally conducted) on the relevant exchange and for options

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and other derivative instruments on the reference
shares on the Chicago Mercantile Exchange and the Chicago Board Options
Exchange, collectively, the “related exchanges”, other than a day on which the
relevant exchange or the related exchanges are scheduled to close prior to
their regular weekday closing time.

Market
Disruption Events

For the reference shares, or in the case of reference
shares that are American Depositary Receipts (ADRs), for both the reference
shares and the underlying ordinary shares represented by such reference shares,
if no Final Share Price is available on the Valuation Date because of a market
disruption event, as determined by the Calculation Agent in its sole
discretion, the Calculation Agent may postpone the calculation of the Final
Share Price until the earlier of the date such market disruption event has
ceased or three trading days after the Valuation Date, as the case may be. On
such third trading day, in the event there still exists a market disruption
event, the Calculation Agent will determine the Final Share Price using its
good faith estimate of the value for the reference shares as of the closing
time on the relevant exchange on such date. If a market disruption event exists
on the Valuation Date, the Maturity Date of the Securities will be the later of
the original Maturity Date and the third business day following the day on
which the Final Share Price is calculated. No interest will accrue or other
payment be payable because of any postponement of the Maturity Date.

A “market disruption event” means the occurrence or
existence of any suspension of or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by any relevant exchange or
market or otherwise) of, or the unavailability, through a recognized system of
public dissemination of transaction information, of accurate price, volume or
related information in respect of (a) the reference shares (b) any options or
futures contracts, or any options on such futures contracts, relating to the
reference shares, or (c) in the case of reference shares that are ADRs, the
underlying ordinary shares represented by such ADRs or any options or futures
contracts, or any options on such futures contracts, relating to such
underlying shares, if, in each case, in the determination of the Calculation
Agent, in its sole discretion, any such suspension, limitation or
unavailability is material.

For purposes of determining whether a market
disruption event has occurred: (1) a limitation on the hours or number of days
of trading will not constitute a market disruption event if it results from an
announced change in the regular business hours of the relevant exchange; (2) a
decision permanently to discontinue trading in the relevant options or futures
contract will not constitute a market disruption event; (3) limitations
pursuant to New York Stock Exchange Rule 80A—Index Arbitrage Trading
Restrictions (or any applicable rule or regulation enacted or promulgated by
the New York Stock Exchange, any other self-regulatory organization or the
Securities and Exchange Commission (“SEC”) of similar scope as determined by
the Calculation Agent) on trading during significant market fluctuations will
constitute a market disruption event; (4) a suspension of trading in an options
contract on the reference shares by the primary securities market trading in
such options, if available, by reason of (x) a price change exceeding limits
set by such securities exchange or market, (y) an imbalance of orders relating
to such contracts or (z) a disparity in bid and ask quotes relating to such
contracts will constitute a suspension or material limitation of trading in
options contracts related to the reference shares notwithstanding that such
suspension or material limitation is less than two hours; (5) a 

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suspension, absence or
material limitation of trading on the primary securities market on which
options contracts related to the reference shares are traded will not include
any time when such securities market is itself closed for trading under
ordinary circumstances; and (6) a “suspension or material limitation” on an
exchange or in a market will include a suspension or material limitation of
trading by one class of investors provided that such suspension continues for
more than two hours of trading or during the last one-half hour period
preceding the close of trading on the relevant exchange or market (but will not
include limitations imposed on certain types of trading under New York Stock
Exchange Rule 80A or any applicable rule or regulation enacted or promulgated
by the New York Stock Exchange, NASDAQ, any other self-regulatory organization
or the SEC of a similar scope or as a replacement for Rule 80A, as determined
by the Calculation Agent) and will not include any time when such exchange or
market is closed for trading as part of such exchange’s or market’s regularly
scheduled business hours.

Antidilution
Adjustments

General

The Calculation Agent will adjust the Initial Share Price
and the physical delivery amount if certain corporate actions and other events
described below (each of which, an “adjustment event”), occur, and the
Calculation Agent determines that such adjustment event has a diluting or
concentrative effect on the theoretical value of the reference shares.  Set forth below are examples of how
adjustment events may lead to adjustments to the Initial Share Price and the
physical delivery amount.

For purposes of the antidilution adjustments described
herein, if the pricing supplement specifies that the reference shares are ADRs,
the Calculation Agent will make the specified antidilution adjustments if an
adjustment event occurs with respect to reference shares or to the ordinary
shares underlying such ADRs (as if those underlying shares were the reference
shares for purposes of the antidilution adjustments). The Calculation Agent
will also make an antidilution adjustment for reference shares that are ADRs if
the number of ordinary shares represented by one ADR changes from the ratio in
existence on the initial setting date.

Upon the occurrence of an adjustment event that the
Calculation Agent determines has a diluting or concentrative effect on the
theoretical value of the reference shares, for purposes only of determining
whether (i) the closing price of the reference shares is less than the knock-in
level and (ii) the Final Share Price is less than the Initial Share Price, the
Calculation Agent will typically adjust the Initial Share Price according to
the following formula:

	
  

  	
  adjusted initial share price = initial share price X  prior
  physical delivery amount

  	
   

  
	
  

  	
   

  	
  adjusted physical delivery amount

  	
   

  
				

 

and may, when appropriate, also adjust the knock-in level.

The physical delivery amount will be adjusted by the
Calculation Agent as set forth in the specific examples below.

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The adjustments described below do not cover all events
that could affect the value of the Securities.

Adjustments

If an adjustment event occurs and the Calculation Agent
determines that the event has a diluting or concentrative effect on the
theoretical value of the reference shares, the Calculation Agent will calculate
a corresponding adjustment to the Initial Share Price and the physical delivery
amount as the Calculation Agent determines appropriate to account for that
diluting or concentrative effect. The Calculation Agent will also determine the
effective date of that adjustment, and the replacement of the reference shares,
if applicable, in the event of consolidation or merger. Upon making any such
adjustment, the Calculation Agent will give notice as soon as practicable to
the Trustee, stating the adjustment of the Initial Share Price and physical
delivery amount.

If more than one adjustment event occurs, the Calculation
Agent will make an adjustment for each such adjustment event in the order in
which they occur, and on a cumulative basis. 
Accordingly, having adjusted the Initial Share Price and the physical
delivery amount for the first such adjustment event, the Calculation Agent will
adjust the Initial Share Price and the physical delivery amount for the second
adjustment event, applying the required adjustment to the Initial Share Price
and the physical delivery amount as already adjusted for the first adjustment
event, and so on for each subsequent adjustment event.

The Calculation Agent will not have to adjust the Initial
Share Price and the physical delivery amount for any adjustment event unless the adjustment would result in a
change to the Initial Share Price or the physical delivery amount of at least
0.1% in the Initial Share Price or the physical delivery amount that would
apply without the adjustment.  The
Initial Share Price and the physical delivery amount resulting from any adjustment
would be rounded up or down, as appropriate, to, in the case of the Initial
Share Price, the nearest cent, and, in the case of the physical delivery
amount, the nearest thousandth, with one-half cent and five ten-thousandths,
respectively, being rounded upwards.

If an adjustment event requiring antidilution adjustment
occurs, the Calculation Agent will make any adjustments with a view to
offsetting, to the extent practical, any change in the Holders’ economic
position relative to the Securities that results solely from that event.  The Calculation Agent may, in its sole
discretion, modify any antidilution adjustments as necessary to ensure an
equitable result.

The Calculation Agent has sole discretion in making all
determinations with respect to antidilution adjustments, including any
determination as to whether an adjustment event requiring an antidilution
adjustment has occurred, as to the nature of the adjustment required and how it
will be made.  In the absence of manifest
error, those determinations will be conclusive for all purposes and will be
binding on the Holders and the Company, without any liability on the part of
the Calculation Agent.  Upon written
request, the Calculation Agent will provide information about any adjustments
it makes.

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Events requiring an antidilution
adjustment

The following is a list of adjustment events that may
require an antidilution adjustment:

(a)                                  a subdivision, consolidation
or reclassification of the reference shares or a free distribution or dividend
of any reference shares to existing holders of reference shares by way of
bonus, capitalization or similar issue;

(b)                                 a dividend or other
distribution to existing holders of reference shares of (i) the reference
shares, (ii) other share capital or securities granting the right to payment of
dividends equally or proportionately with such payments to holders of the
reference shares or (iii) any other type of securities, rights or warrants in
any case for payment (in cash or otherwise) at less than the prevailing market price
as determined by the Calculation Agent;

(c)                                  the declaration by the
issuer of the reference shares of an extraordinary or special dividend or other
distribution whether in cash or reference shares or other assets;

(d)                                 a repurchase of its common
stock by the issuer of the reference shares whether out of profits or capital
and whether the consideration for such repurchase is cash, securities or
otherwise;

(e)                                  a consolidation of the
issuer of the reference shares with another company or merger of the issuer of
the reference shares with another company;

(f)                                    a
change by the issuer of reference shares that are ADRs of the ratio of
underlying ordinary shares represented by one ADR; and

(g)                                 any other similar event that
may have a diluting or concentrative effect on the theoretical value of the
reference shares.

Certain
adjustment events are discussed in greater detail below.

Stock splits

A stock split is an increase in the number of a corporation’s
outstanding shares of stock without any change in its stockholders’ equity.

If the reference shares are subject to a stock split, the
Calculation Agent will adjust the physical delivery amount to equal the sum of
the prior physical delivery amount—i.e., the physical delivery amount before
that adjustment—and the product of (i) the number of additional shares issued
in the stock split with respect to each of the reference shares times (ii) the
prior physical delivery amount.

Reverse stock splits

A reverse stock split is a decrease in the number of a
corporation’s outstanding shares of stock without any change in its
stockholders’ equity.

If the reference shares are subject to a reverse stock
split, the Calculation Agent will adjust the physical delivery amount to equal
the product of the prior physical delivery amount 

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and the quotient of (i) the number of reference shares
outstanding immediately after the reverse stock split becomes effective divided
by (ii) the number of reference shares outstanding immediately before the
reverse stock split becomes effective.

Stock dividends

In a stock dividend, a corporation issues additional shares
of its stock to all holders of its outstanding stock in proportion to the
shares they own.

If the reference shares are subject to a stock dividend
payable in the reference shares, then the Calculation Agent will adjust the
physical delivery amount to equal the sum of the prior physical delivery amount
and the product of (i) the number of additional shares issued in the stock
dividend with respect to each of the reference shares times (ii) the prior
physical delivery amount.

Other dividends and distributions

If the issuer of the reference shares declares a dividend
to be distributed to holders of record of the reference shares as of a date
falling in the period that begins on the day immediately following the
Valuation Date and ends on the day immediately prior to the Maturity Date, any
such dividend will not be paid to Holders.

The physical delivery amount will not be adjusted to
reflect any dividends or distributions paid with respect to the reference
shares, other than (i) stock dividends described above; (ii) issuances of
transferable rights and warrants as described in “—Transferable rights and
warrants” below; and (iii) extraordinary dividends as described below.

A dividend or other distribution with respect to the
reference shares will be deemed to be an “extraordinary dividend” if its per
share value exceeds that of the immediately preceding non-extraordinary
dividend, if any, for the reference shares by an amount equal to at least 10.00%
of the market price of the reference shares on the business day before the
ex-dividend date for the extraordinary dividend.  The ex-dividend date for any dividend or
other distribution is the first day on which the reference shares trade without
the right to receive that dividend or distribution.  If an extraordinary dividend occurs, the
Calculation Agent will adjust the physical delivery amount to equal the product
of (1) the prior physical delivery amount times (2) a fraction, the numerator
of which is the market price of the reference shares on the business day before
the ex-dividend date and the denominator of which is the amount by which that
market price exceeds the extraordinary dividend adjustment amount.  The “extraordinary dividend adjustment amount”
with respect to an extraordinary dividend for the reference shares equals:  (i) for an extraordinary dividend that is
paid in lieu of a regular quarterly dividend, the amount of the extraordinary
dividend per share of the reference shares minus the amount per share of the
immediately preceding dividend, if any, that was not an extraordinary dividend
for the reference shares, or (ii) for an extraordinary dividend that is not
paid in lieu of a regular quarterly dividend, the amount per share of the extraordinary
dividend.

To the extent an extraordinary dividend is not paid in
cash, the value of the non-cash component will be determined by the Calculation
Agent.  A distribution on the reference
shares that is a dividend payable in the reference shares, an issuance of
rights or warrants or a spin-off 

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event and that is also an extraordinary dividend will
result in an adjustment to the physical delivery amount only as described in “Stock
dividends” above, “Transferable rights and warrants” below or “Reorganization
events” below, as the case may be, and not as described here.

Transferable rights and warrants

If the issuer of the reference shares issues transferable
rights or warrants to all holders of the reference shares to subscribe for or
purchase the reference shares at an exercise price per share that is less than
the market price of the reference shares on the business day before the
ex-dividend date for the issuance, then the physical delivery amount will be
adjusted by multiplying the prior physical delivery amount by the following
fraction:  (i) the numerator will be the
sum of the number of reference shares outstanding at the close of business on
the day before that ex-dividend date and the total number of additional
reference shares offered for subscription or purchase under those transferable
rights or warrants, and (ii) the denominator will be the sum of the number of
reference shares outstanding at the close of business on the day before that
ex-dividend date and the product of (1) the total number of additional
reference shares offered for subscription or purchase under the transferable
rights or warrants times (2) the exercise price of those transferable rights or
warrants divided by the market price on the business day before that
ex-dividend date.

Reorganization events

Any of the following
shall constitute a reorganization event: 
(i) the reference shares are reclassified or changed, including, without
limitation, as a result of the issuance of any tracking stock by the issuer of
the reference shares, (ii) the issuer of the reference shares has been subject
to any merger, combination or consolidation and is not the surviving entity,
(iii) the issuer of the reference shares completes a statutory exchange of
securities with another corporation, (iv) the issuer of the reference shares is
liquidated, (v) the issuer of the reference shares issues to all of its
shareholders equity securities of an issuer other than the issuer of the
reference shares (other than in a transaction above) (a “spinoff stock”) or
(vi) the reference shares are the subject of a tender or exchange offer or
going private transaction on all of the outstanding shares.

Adjustments for reorganization events

If any reorganization
event occurs, in each case as a result of which the holders of the reference
shares receive any equity security listed on a national securities exchange or
traded on The Nasdaq Global Select Market (a “marketable security”), other
securities or other property, assets or cash (collectively “exchange property”),
for purposes of determining the physical delivery amount following the
effective date for such reorganization event (or, if applicable, in the case of
spinoff stock, the ex-dividend date for the distribution of such spinoff
stock), the physical delivery amount will be based on the following:

(a) if the reference
shares continue to be outstanding, the prior physical delivery amount (if
applicable, as reclassified upon the issuance of any tracking stock) on the
relevant date (taking into account any adjustments for any distributions
described under clause (c)(i) below);

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(b) for each marketable
security received in such reorganization event (each a “new stock”), including
the issuance of any tracking stock or spinoff stock or the receipt of any stock
received in exchange for the reference shares, the amount of new stock received
with respect to one share of the reference shares, as adjusted to the relevant
date (taking into account any adjustments for distributions described under
clause (c)(i) below); and

(c) for any cash and any
other property or securities other than marketable securities received in such
reorganization event (the “non-stock exchange property”), (i) if the combined
value of the amount of non-stock exchange property received per share of the reference
shares, as determined by the Calculation Agent in its sole discretion on the
effective date of such reorganization event (the “non-stock exchange property
value”), by holders of the reference shares is less than 25% of the closing
price of the reference shares on the trading day immediately prior to the
effective date of such reorganization event, an amount of the reference shares,
if applicable, and of any new stock received in connection with such
reorganization event, if applicable, in proportion to the relative closing
prices of the reference shares and any such new stock, and with an aggregate
value equal to the non-stock exchange property value, based on such closing
prices, in each case as determined by the Calculation Agent in its sole discretion
on the effective date of such reorganization event, or (ii) if the non-stock
exchange property value is equal to or exceeds 25% of the closing price of the
reference shares on the trading day immediately prior to the effective date
relating to such reorganization event or, if the reference shares are
surrendered exclusively for non-stock exchange property (in each case, an “alternate
stock event”), a number of shares of the alternate stock (as defined below)
with a value on the effective date of such reorganization event equal to the
non-stock exchange property value.  The “alternate
stock” will be the common stock of the company with a price volatility on the
measurement date (each as defined below) that is nearest (whether higher or
lower) to the price volatility of the reference shares, as selected by the
Calculation Agent from a group of five stocks then included in the S&P 500
Index (or, if publication of such index is discontinued, any successor or
substitute index selected by the Calculation Agent in its sole discretion). The
stocks from which the alternate stock is selected will be the five stocks with
the largest market capitalization among the stocks then included in the S&P
500 Index (or such successor index) with the same primary “Industry” Standard
Industrial Classification Code (“SIC Code”) as the issuer of the reference
shares; provided that if there are fewer than five stocks with the same primary
“Industry” SIC Code as the issuer of the reference shares, the Calculation
Agent will identify additional stocks then included in the S&P 500 Index
(or such successor index), from the following categories, selecting stocks, as
required, in each succeeding category in descending order of market
capitalization, beginning with the stock in each category with the largest
capitalization: first, stocks with the same primary “Industry Group”
classification as the issuer of the reference shares; second, stocks with the
same primary “Major Group” classification as the issuer of the reference
shares; and third, stocks with the same primary “Division” classification as
the issuer of the reference shares; provided, further, that none of the five
stocks from which the alternate stock will be selected will be a stock that is
subject to a trading restriction under the trading restriction policies of
Credit Suisse or any of its affiliates that would materially limit the ability
of Credit Suisse or any of its affiliates to hedge the Securities with respect
to such stock (a “hedging restriction”). “Industry,” “Industry Group,” “Major
Group” and “Division” have the meanings assigned by the Office of Management
and Budget, or any successor federal agency responsible for assigning SIC
codes. If the SIC Code system of classification is altered or abandoned, the
Calculation Agent may select an alternate classification system and implement
similar

 R-10
 

 

 

procedures.  “Price volatility” means the average
historical price volatility for the period of 100 trading days ending on the
trading day immediately prior to the first public announcement of the relevant
reorganization event (the “measurement date”) as such average historical price
volatility for such stock is displayed on Bloomberg screen Equity HVG (using
the settings N = 100 and Market: T) (or any successor thereto); provided that
if the price volatility of the reference shares or any stock identified in this
sub-paragraph is not then displayed on Bloomberg, then the Calculation Agent,
in its sole discretion, will determine the applicable price volatility.

In the case of a consummated
tender or exchange offer or going-private transaction involving consideration
of particular types, exchange property shall be deemed to include the amount of
cash or other property delivered by the offeror in the tender or exchange offer
(in an amount determined on the basis of the rate of exchange in such tender or
exchange offer or going-private transaction). 
In the event of a tender or exchange offer or a going-private
transaction with respect to exchange property in which an offeree may elect to
receive cash or other property, exchange property shall be deemed to include
the kind and amount of cash and other property received by offerees who elect
to receive cash.

If a reorganization event
occurs, the property distributed in the event will be substituted for the
common stock of the issuer of the reference shares as described above.  Consequently, references to the common stock
of the issuer of the reference shares mean any property that is distributed in
a reorganization event and comprises the adjusted physical delivery
amount.  Similarly, references to the
issuer of the reference shares mean any successor entity in a reorganization
event.

In the event that the
Calculation Agent determines that an adjustment should be made to the physical
delivery amount as a result of one or more events or circumstances not
otherwise described above (even if such event or circumstance is specifically
excluded from the operation of the provisions described above), the Calculation
Agent shall determine as soon as practicable what adjustment (if any) is fair
and reasonable to take account thereof.

Events of Default and Acceleration

In case an Event of Default (as defined in the
Indenture) with respect to the Securities shall have occurred and be
continuing, the amount declared due and payable upon any acceleration of the
Securities (in accordance with the acceleration provisions set forth in the
prospectus) will be determined by the Calculation Agent and will equal, for
each security, the arithmetic average, as determined by the Calculation Agent,
of the fair market value of the Securities as determined by at least three but
not more than five broker-dealers (which may include Credit Suisse Securities
(USA) LLC or any of the Company’s other subsidiaries or affiliates) as will
make such fair market value determinations available to the Calculation Agent.

The Company, the Trustee and any agent of the Company
or the Trustee may deem and treat the registered Holder hereof as the absolute
owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon) for the
purpose of receiving payment of, or on account of, the redemption amount
hereof, and for all other purposes, and neither the Company nor the Trustee nor
any agent of the Company or the Trustee shall be affected by any notice to the
contrary.

 R-11
 

 

 

No recourse under or upon any obligation, covenant or
agreement contained in the Indenture or any indenture supplemental thereto or
in any Note, or because of any indebtedness evidenced thereby, shall be had
against any incorporator as such, or against any past, present or future
stockholder, officer, director or employee, as such, of the Company or of any
successor, either directly or through the Company or any successor, under any
rule of law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.

The Calculation Agent for the Securities (the “Calculation
Agent”) is Credit Suisse International. 
The calculations and determinations of the Calculation Agent will be
final and binding upon all parties (except in the case of manifest error).  The Calculation Agent will have no
responsibility for good faith errors or omissions in its calculations and
determinations, whether caused by negligence or otherwise.

Terms used herein that are defined in the Indenture
and not otherwise defined herein shall have the respective meanings assigned
thereto in the Indenture.

The laws of the State of New York (without regard to
conflicts of laws principles thereof) shall govern this Note.

 R-12
 

 

 

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

  
	
   

  
	
  [PLEASE INSERT
  SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

  
	
   

  
	
   

  
	
  [PLEASE PRINT OR
  TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

  
	
   

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

  
	
   

  
	
   

  	
    Attorney
  to 

  
	
  transfer such
  Note on the books of the Issuer, with full power of substitution in the
  premises.

  

 

	
  

  	
   

  	
  Signature:

  
	
   

  	
   

  	
   

  
	
  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 whatsoever.

  
				

 

 

 R-13Exhibit
4.01

CUSIP
NO. 52517PP54

ISIN NO. US5217PP543

	
  REGISTERED

  	
   

  	
  PRINCIPAL
  AMOUNT: $3,000,000

  
	
  No. R-1

  	
   

  	
   

  

 

LEHMAN BROTHERS HOLDINGS INC.

MEDIUM-TERM NOTE, SERIES I

WEDDING CAKE CRUDE
OIL-LINKED NOTE
DUE NOVEMBER 30, 2007

This Note is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of the Depository or a
nominee of the Depository.  Unless this
certificate is presented by an authorized representative of The Depository
Trust Company (55 Water Street, New York, New York) to the Company (as defined
below) or its agent for registration of transfer, exchange or payment 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.

Unless and until it is exchanged in whole or in part for Notes in
certificated form (a “Certificated Note”), this Global Security may not be
transferred except as a whole by the Depository to a nominee of the Depository
or by a nominee of the Depository to 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.

 

LEHMAN BROTHERS HOLDINGS INC., a corporation duly
organized and existing under the laws of the State of Delaware (herein called
the “Company,” which term includes any successor corporation under the
Indenture referred to on the reverse hereof), for value received, hereby
promises to pay to CEDE & Co., or registered assigns, on the Maturity Date,
an amount equal to the
Redemption Amount.

The “Maturity Date” is November
30, 2007, or if such day is not a Business Day, on the next following Business
Day.

The “Redemption Amount” is the amount equal
to the sum of the principal amount of the Notes plus the Supplemental
Redemption Amount, if any.

The “Supplemental Redemption Amount” is a
single U.S. Dollar payment calculated by the Calculation Agent equal to the
principal amount of the Notes multiplied by:

(A) 18.0%, if Crude OilREF is strictly within the First Barrier Range on
each Exchange Business Day during the Observation Period;

(B) 11.0%, if Crude OilREF is outside the First Barrier Range on any
Exchange Business Day during the Observation Period, but strictly within the
Second Barrier Range on each Exchange Business Day during the Observation
Period;

(C) 5.0%, if Crude OilREF is outside the First Barrier Range and the
Second Barrier Range on any Exchange Business Day during the Observation
Period, but strictly within the Third Barrier Range on each Exchange Business
Day during the Observation Period; or

(D) 0%, if Crude OilREF is outside the First Barrier Range, the Second
Barrier and the Third Barrier Range on any Exchange Business Day during the
Observation Period.

The “Observation Period” is the period from
and including the Trade Date to and including the Valuation Date.

The “Trade Date” is November 17, 2006.

The “Valuation Date” is 5 Exchange Business
Days prior to the Maturity Date.

“Crude OilREF” is, for any Exchange
Business Day within the Observation Period, the Crude Oil Price on such
Exchange Business Day.

“Crude Oil” is light sweet crude
oil.

The “Crude Oil Price” is the
official settlement price of the Crude Oil Contract, expressed as the U.S.
dollar price per barrel of Crude Oil, as made public by the Relevant Exchange
(subject to the occurrence of a Disruption Event).

The “Crude Oil Contract” is the
first nearby month futures contract (or, in the case of the last trading day of
the first nearby month contract, the second nearby month contract) for Crude
Oil traded on the Relevant Exchange.

 2
 

 

For each “Barrier Range,” from
the Lower Barrier to the Upper Barrier as follows:

	
  Barrier Range

  	
   

  	
  Lower Barrier

  	
   

  	
  Upper Barrier

  
	
  First

  	
   

  	
  $47.4385 (equal
  to Crude Oil Strike * 85.0%)

  	
   

  	
  $64.1815 (equal
  to Crude Oil Strike * 115.0%)

  
	
  Second

  	
   

  	
  $45.7642 (equal
  to Crude Oil Strike * 82.0%)

  	
   

  	
  $65.8558 (equal
  to Crude Oil Strike * 118.0%)

  
	
  Third

  	
   

  	
  $40.7413 (equal
  to Crude Oil Strike * 73.0%)

  	
   

  	
  $70.8787 (equal
  to Crude Oil Strike * 127.0%)

  

 

The “Crude Oil Strike” is $55.81,
equal to the Crude Oil Price on the Trade Date.

The “Relevant Exchange” is the
NYMEX Division, or its successor, of the New York Mercantile Exchange, Inc., or
its successor; or, if NYMEX is no longer the principal exchange or trading
market for Crude Oil options or futures contracts, such other exchange or
principal trading market for Crude Oil as determined in good faith by the
Calculation Agent which serves as the source of prices for Crude Oil, and any
principal exchanges where options or futures contracts on Crude Oil are traded.

An “Exchange Business Day” is a
day, as determined by the Calculation Agent, on which the Relevant Exchange is
scheduled to be (or, but for the occurrence of a Disruption Event, would have
been) open for trading during its regular trading session (notwithstanding the
Relevant Exchange closing prior to its scheduled closing time).

If a Disruption Event identified
in clauses (A), (B) or (C) below is in effect on any Exchange Business Day
during the Observation Period to but excluding the earlier of (i) the Valuation
Date and (ii) the Exchange Business Day on which Crude OilREF was first outside the Third Barrier Range, the
Calculation Agent will determine Crude OilREF applicable to such Exchange Business Day in
accordance with the Fallback Price Determination.  If a Disruption Event identified in clauses
(D) or (E) below is in effect on any such Exchange Business Day, the
Calculation Agent will determine Crude OilREF applicable to such Exchange Business Day in
its sole and absolute discretion taking into account the latest available
quotation for the Crude Oil Price and any other information that in good faith
it deems relevant.

A “Disruption Event” means any of the following events as determined in
good faith by the Calculation Agent:

(A)          the suspension of or material limitation on trading
in the Crude Oil Contract or Crude Oil, or futures contracts or options related
to the Crude Oil Contract or Crude Oil, on the Relevant Exchange;

(B)           either (i) the failure of trading to commence, or
permanent discontinuance of trading, in the Crude Oil Contract or Crude Oil, or
futures contracts or options related to the Crude Oil Contract or Crude Oil, on
the Relevant Exchange, or (ii) the disappearance of, or of trading in, Crude
Oil;

 3
 

 

(C)           the failure of the Relevant Exchange
to publish the official daily settlement price for that day for the Crude Oil
Contract (or the information necessary for determining the settlement price);

(D)          the occurrence since the Trade Date of
a material change in the content, composition, or constitution of Crude Oil or
the Crude Oil Contract; or

(E)           the occurrence since the Trade Date
of a material change in the formula for or the method of calculating the
settlement price of the Crude Oil Contract.

For the purpose of determining
whether a Disruption Event has occurred:

(1)           a limitation on the hours in a trading day and/or number
of days of trading will not constitute a Disruption Event if it results from an
announced change in the regular business hours of the Relevant Exchange;

(2)           a suspension in trading on the Relevant Exchange (without
taking into account any extended or after-hours trading session), in the Crude
Oil Contract, by reason of a price change reflecting the maximum permitted price
change from the previous trading day’s settlement price will constitute a
Disruption Event; and

(3)           a suspension of or material limitation on trading on the
Relevant Exchange will not include any time when the Relevant Exchange is
closed for trading under ordinary circumstances.

In the event that the “Fallback
Price Determination” is invoked, the Calculation Agent will determine Crude OilREF applicable to the relevant Exchange Business
Day by requesting four leading dealers in Crude Oil (selected in the sole
discretion of the Calculation Agent) (the “Reference Dealers”) to provide price
quotations for the relevant Crude OilREF.  If at least two quotations are provided, the
relevant Crude OilREF will be the arithmetic mean of such
quotations.  If only one Reference Dealer
provides a price quotation, then the Calculation Agent, in its sole discretion,
will determine whether that quotation is reasonable to be used.  If the Calculation Agent determines that such
single price quotation is not reasonable to be used, or if no price quotation
is provided, the Calculation Agent will determine the relevant Crude OilREF in its sole and absolute discretion taking
into account the latest available quotation for the settlement price of the
Crude Oil Contract and any other information that in good faith it deems
relevant.

A “Business
Day”, notwithstanding any provision in the Indenture, is any day that is not is
not a Saturday or Sunday and that is not a day on which banking institutions in
New York City generally are authorized or obligated by law or executive order
to be closed.

The “Calculation
Agent” means Lehman Brothers Commodity Services Inc.

Except as provided below,
the Redemption Amount may, at the option of the Company, be made by check
mailed to the person entitled thereto at such person’s address as it appears on
the registry books of the Company.

Payment of any Redemption
Amount will be made in immediately available funds in accordance with the
normal procedures of the Trustee (or any duly appointed Paying Agent).

 4
 

 

The Company will pay any
administrative costs imposed by banks in making payments in immediately
available funds, but any tax, assessment or governmental charge imposed upon
payments hereunder, including, without limitation, any withholding tax, will be
borne by the Holder hereof.

References herein to “U.S. dollars” or “U.S.$” or “$”
or “USD” are to the coin or currency of the United States as at the time of
payment is legal tender for the payment of public and private debts.

REFERENCE IS HEREBY MADE TO
THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF.  SUCH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

This Note shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall have been
signed by the Trustee under the Indenture.

 5
 

 

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

Dated:  November 28, 2006

	
  [SEAL]

  	
  LEHMAN BROTHERS HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

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

	
  CITIBANK, N.A.

  
	
  as Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  

 

 6

 

[REVERSE
OF NOTE]

LEHMAN BROTHERS
HOLDINGS INC.

MEDIUM-TERM NOTES,
SERIES I
WEDDING CAKE CRUDE OIL-LINKED NOTE

DUE 
NOVEMBER 30 , 2007

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series I, Wedding
Cake Crude Oil-Linked Note (herein called the “Notes”).  The Notes are one of an
indefinite number of series of debt securities of the Company (collectively,
the “Securities”) issued or issuable under and pursuant to an indenture dated
as of September 1, 1987, as amended and supplemented (the “Indenture”), duly
executed and delivered by the Company and Citibank, N.A., as Trustee (herein
called the “Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the holders of the Securities. 
The separate series of Securities may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at
different rates, may be subject to different redemption provisions or
repurchase rights (if any), may be subject to different sinking, purchase or
analogous funds (if any), may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided.

Section 2.  Principal
Amount for Indenture Purposes.  For
the purpose of determining whether Holders of the requisite amount of Notes of
this series outstanding under the Indenture have made a demand, given a notice
or waiver or taken any other action, the principal amount of this Note will be
deemed to be the principal amount of this Note then outstanding.

Section 3.  Modification
and Waivers.  The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the
Holders of not less than 66-2/3% in aggregate principal amount of each series
of the Securities at the time Outstanding to be affected, evidenced as in the
Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the
holders of the Securities of all such series; provided, however, that no such
supplemental indenture shall, among other things, (i) change the fixed maturity
of any Security, or reduce the Redemption Amount or the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon
or reduce any premium or other amount payable on redemption, or make the
Redemption Amount or the principal amount thereof, premium or other amount
payable, if any, or interest thereon payable in any coin or currency other than
that herein above provided, without the consent of the Holder of each Security
so affected, or (ii) change the place of payment on any Security, or impair the
right to institute suit for payment on any Security, or reduce the aforesaid
percentage of Securities, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of each
Security so affected.  It is also
provided in the Indenture that, prior to any declaration accelerating the
maturity of any series of Securities, the holders of a majority in aggregate
principal amount of the Securities of such series

 

Outstanding
may on behalf of the holders of all the Securities of such series waive any
past default or Event of Default under the Indenture with respect to such
series and its consequences, except a default in the payment of interest, if
any, on the Redemption Amount or the principal amount, or premium, if any, on
any of the Securities of such series, or in the payment of any sinking fund
installment or analogous obligation with respect to Securities of such
series.  Any such consent or waiver by
the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future holders and owners of this Note and any Notes of this series
which may be issued in exchange or substitution herefor, irrespective of
whether or not any notation thereof is made upon this Note or such other Notes
of this series.

Section 4.  Obligations
Unconditional.  No reference herein
to the Indenture and no provisions of this Note or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the Supplemental Redemption Amount or the principal amount on this Note
at the place, at the respective times, at the rate, and in the coin or currency
herein prescribed.

Section 5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

Section 6.  Authorized
Form and Denominations.  The Notes of
this series are issuable in registered form, without coupons.  Each Note will be issued initially as either
a Global Security or a Certificated Note, at the option of the Company, in
denominations of $1,000 or whole multiples of $1,000, either at the office or
agency to be designated and maintained by the Company for such purpose in the
Borough of Manhattan, New York City, pursuant to the provisions of the
Indenture or at any of such other offices or agencies as may be designated and
maintained by the Company for such purpose pursuant to the provisions of the
Indenture, and in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, except for any tax or
other governmental charges imposed in connection therewith.  Notes of this series are exchangeable for a
like aggregate principal amount of Notes of this series of a different
authorized denomination, except that Global Securities will not be exchangeable
for Certificated Notes of this series.

Section 7.  Registration
of Transfer.  As provided in the
Indenture and subject to certain limitations as therein set forth, the transfer
of this Note is registrable in the Security Register, upon surrender of this
Note for registration of transfer, at the Corporate Trust Office or agency in a
Place of Payment for this Note, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar requiring such written instrument of transfer duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

If at any time the Depository notifies the Company
that it is unwilling or unable to continue as Depository or if at any time the
Depository shall no longer be eligible under the Indenture, the Company shall
appoint a successor Depository.  If a
successor Depository for the Notes of this series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such ineligibility, the Company will issue, and the Trustee will

 

authenticate
and deliver, Notes of this series in definitive form in an aggregate principal
amount equal to the principal amount of this Note.

No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith.

Prior to due presentment of this Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the person in whose name this Note is registered as the owner
hereof for all purposes, and neither the Company nor the Trustee nor any agent
of the Company or of the Trustee shall be affected by any notice to the
contrary.

Section 8.  Events
of Default.  If an Event of Default
with respect to Notes of this series shall occur and be continuing, the amount
that may be declared due and payable upon any acceleration of the notes will be
determined by the Calculation Agent and will equal, for each note, the
principal amount plus the Supplemental Redemption Amount (if any) deemed
to have accrued for the period from and including the Trade Date to but
excluding the date of early repayment calculated on the basis of a 360-day year
consisting of 12 months of 30 days each, and, in the case of an incomplete
month, the number of days elapsed.  If a bankruptcy proceeding is
commenced in respect of the Company, the claim of the beneficial owner of a note
will be capped at the principal amount plus the Supplemental Redemption
Amount (if any) deemed to have accrued for the period from and including
the Trade Date to but excluding the date of early repayment calculated on the
basis of a 360-day year consisting of 12 months of 30 days each, and, in the
case of an incomplete month, the number of days elapsed.

Section 9.  No
Recourse Against Certain Persons.  No
recourse for the payment of the Redemption Amount or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any Indenture
supplemental thereto or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

Section 10.  Defined
Terms.  All terms used but not
defined in this Note are used herein as defined in the Indenture.

Section 11.  GOVERNING LAW.  THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

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