Document:

Second Amended and Restated Pennsylvania Real Estate Investment Trust 2003

 Exhibit 10.3 

 
  
 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 
 SECOND AMENDED AND RESTATED
2003 EQUITY INCENTIVE PLAN 

  

 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 

SECOND AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN 
 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
			
	 1.
	 	PURPOSE	  	 	1	  
			
	 2.
	 	DEFINITIONS	  	 	1	  
			
	 3.
	 	ADMINISTRATION	  	 	5	  
			
	 4.
	 	EFFECTIVE DATE AND TERM OF PLAN	  	 	5	  
			
	 5.
	 	SHARES SUBJECT TO THE PLAN	  	 	6	  
			
	 6.
	 	ELIGIBILITY	  	 	6	  
			
	 7.
	 	TYPES OF AWARDS	  	 	6	  
			
	 7.1.
	 	Options	  	 	6	  
	 7.2.
	 	Share Appreciation Rights	  	 	7	  
	 7.3.
	 	Restricted Shares	  	 	8	  
	 7.4.
	 	Performance Shares; Performance Goals	  	 	9	  
	 7.5.
	 	Contract Shares	  	 	9	  
	 7.6.
	 	Bonus Shares	  	 	10	  
	 7.7.
	 	Dividend Equivalent Rights	  	 	10	  
			
	 8.
	 	EVENTS AFFECTING OUTSTANDING AWARDS	  	 	10	  
			
	 8.1.
	 	Termination of Service (Other Than by Death or Disability)	  	 	10	  
	 8.2.
	 	Death or Disability	  	 	10	  
	 8.3.
	 	Capital Adjustments	  	 	11	  
	 8.4.
	 	Certain Corporate Transactions	  	 	11	  
			
	 9.
	 	SUSPENSION, AMENDMENT OR TERMINATION OF THE PLAN	  	 	12	  
			
	 10.
	 	MISCELLANEOUS	  	 	12	  
			
	 10.1.
	 	Documentation of Awards	  	 	12	  
	 10.2.
	 	Rights as a Shareholder	  	 	12	  
	 10.3.
	 	Conditions on Delivery of Shares	  	 	12	  
	 10.4.
	 	Registration and Listing of Shares	  	 	13	  
	 10.5.
	 	Compliance with Rule 16b-3	  	 	13	  
	 10.6.
	 	Tax Withholding	  	 	13	  
	 10.7.
	 	Transferability of Awards	  	 	13	  
	 10.8.
	 	Registration.	  	 	13	  
	 10.9.
	 	Acquisitions	  	 	13	  
	 10.10.
	 	Employment Rights	  	 	13	  
	 10.11.
	 	Indemnification of Board and Committee.	  	 	14	  
	 10.12.
	 	Application of Funds	  	 	14	  
	 10.13.
	 	Governing Law	  	 	14	  

  
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 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 

SECOND AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN 
 Preamble 
 WHEREAS, Pennsylvania Real Estate Investment Trust (the
“Trust”) desires to continue to have the ability to award certain equity-based benefits to certain of the non-employee trustees and officers and other key employees of the Trust and its “Related Corporations” and “Subsidiary
Entities” (both as defined below); 
 WHEREAS, the Trust maintains the Plan (as defined below), and the Trust desires to
amend and restate the Plan, as hereinafter provided. 
 NOW, THEREFORE, the Plan is hereby amended and restated (subject to the
approval of the shareholders of the Trust) under the following terms and conditions: 
 Plan 

1. Purpose. The Plan is intended to provide a means whereby the Trust may grant ISOs, NQSOs, Restricted Shares, SARs, Performance
Shares, Contract Shares, Bonus Shares and/or DERs to Key Employees and Non-Employee Trustees. Thereby, the Trust expects to attract and retain such Key Employees and Non-Employee Trustees and to motivate them to exercise their best efforts on behalf
of the Trust and its Subsidiary Entities. 
 2. Definitions  

(a) “Annual Grant” shall have the meaning set forth in Section 7.3(c). 

(b) “Award” shall mean ISOs, NQSOs, Restricted Shares, SARs, Performance Shares, Contract Shares, Bonus
Shares and/or DERs awarded by the Committee to a Participant. 
 (c) “Award Agreement” shall
mean a written document evidencing the grant of an Award, as described in Section 10.1. 
 (d)
“Board” shall mean the Board of Trustees of the Trust. 
 (e) “Bonus Shares”
shall mean an Award that entitles the recipient to receive Shares without payment, as a bonus. 
 (f)
“Change in Control” shall mean: 
 (1) The acquisition by an individual, entity, or group
(within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30 percent or more of the combined voting power of the
then outstanding voting securities of the Trust entitled to vote generally in the election of trustees (the “Outstanding Shares”); provided, however, that the following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Trust unless, in connection therewith, a majority of the individuals who constitute the Board as of the date immediately preceding such transaction cease to constitute at least a majority of the Board; (ii) any
acquisition by the Trust; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Trust or any entity controlled by the Trust; (iv) any acquisition by any individual, entity, or group in
connection with a “Business Combination” (as defined in paragraph (3) below) that fails to qualify as a Change in Control pursuant to paragraphs (3) or (4) below; or (v) any acquisition by any Person entitled to
file Form 13G under the Exchange Act with respect to such acquisition; or 

  
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 (2) Individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a trustee subsequent to the date hereof whose appointment, election, or nomination for election by the
Trust’s shareholders was approved by a vote of at least a majority of the trustees then comprising the Incumbent Board (other than an appointment, election, or nomination of an individual whose initial assumption of office is in connection with
an actual or threatened election contest relating to the election of the trustees of the Trust) shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or 

(3) The consummation of a reorganization, merger, or consolidation, or sale or other disposition of all or substantially
all of the assets of the Trust (a “Business Combination”), in each case, if, following such Business Combination all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately
prior to such Business Combination beneficially own, directly or indirectly, less than 40 percent of, respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of trustees or directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Trust or all or
substantially all of the Trust’s assets either directly or through one or more subsidiaries) in substantially the same proportions as such beneficial owners held their ownership, immediately prior to such Business Combination of the Outstanding
Shares; or 
 (4) The consummation of a Business Combination, if, following such Business Combination all or
substantially all of the individuals and entities who were the beneficial owners of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, 40 percent or more but less than 60 percent of,
respectively, the then outstanding shares of equity securities and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting
from such Business Combination (including, without limitation, an entity which, as a result of such transaction, owns the Trust or all or substantially all of the Trust’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as such beneficial owners held their ownership, immediately prior to such Business Combination, of the Outstanding Shares, and (i) any Person (excluding any employee benefit plan (or related trust) of the
Trust or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30 percent or more of, respectively, the then outstanding shares of equity securities of the entity resulting from such Business Combination or
the combined voting power of the then outstanding voting securities of such entity except to the extent that such ownership existed prior to the Business Combination, or (ii) at least a majority of the members of the board of trustees or
directors of the entity resulting from such Business Combination were not members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination, or (iii) the
Chief Executive Officer of the Trust at the time of the execution of the initial agreement providing for such Business Combination is not appointed or elected to a comparable or higher position with the entity resulting from such Business
Combination, or (iv) the executive officers of the Trust holding the title of Executive Vice President or higher at the time of the execution of the initial agreement for such Business Combination constitute less than a majority of the
executive officers holding comparable or higher titles of the entity resulting from such Business Combination; or 
 (5) A complete liquidation or dissolution of the Trust. The consummation of a Business Combination, following which all or substantially all of the individuals and entities who were the beneficial owners
of the Outstanding Shares immediately prior to such Business Combination beneficially own, directly or indirectly, 60 percent or more of, respectively, the then outstanding shares of equity securities and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of trustees or directors, as the case may be, of the entity resulting from 

  
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such Business Combination (including, without limitation, an entity which, as a result of such transaction, owns the Trust or all or substantially all of the Trust’s assets either directly
or through one or more subsidiaries) shall not constitute a “Change in Control” unless following such transaction the provisions of paragraphs (1) or (2) are independently satisfied. 

(g) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(h) “Committee” shall mean the Trust’s Executive Compensation and Human Resources Committee, which
shall consist solely of not fewer than two trustees of the Trust who shall be appointed by, and serve at the pleasure of, the Board (taking into consideration the rules under section 16(b) of the Exchange Act and the requirements of section 162(m)
of the Code). 
 (i) “Contract Date” shall mean the date specified in the Award Agreement on
which a Participant is entitled to receive Contract Shares, provided he or she is still providing services to the Trust or one of its Subsidiary Entities on each date. 

(j) “Contract Shares” shall mean an Award that entitles the recipient to receive unrestricted Shares,
without payment, if the recipient is still providing services to the Trust or one of its Subsidiary Entities as of the future date specified in the Award Agreement. 

(k) “Disability” shall mean a Participant’s “permanent and total disability,” as defined
in section 22(e)(3) of the Code. 
 (l) “DER” shall mean a dividend equivalent right—i.e.,
an Award that entitles the recipient to receive a benefit in lieu of cash dividends that would be payable on any or all Shares subject to another Award granted to the Participant, or that would be payable on a number of notional Shares unrelated to
any other Award, in either case had such Shares been outstanding. 
 (m) “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended. 
 (n) “Fair Market Value” shall mean the
following, arrived at by a good faith determination of the Committee: 
 (1) if there are sales of Shares on a
national securities exchange or in an over-the-counter market on the date of grant (or on such other date as value must be determined), then the mean between the highest and lowest quoted selling price on such date; or 

(2) if there are no such sales of Shares on the date of grant (or on such other date as value must be determined) but
there are such sales on dates within a reasonable period both before and after such date, the weighted average of the means between the highest and lowest selling price on the nearest date before and the nearest date after such date on which there
were such sales; or 
 (3) if paragraphs (1) and (2) above are not applicable, then such other method
of determining fair market value as shall be adopted by the Committee. 
 Where the Fair Market Value of Shares is determined
under (2) above, the average shall be weighed inversely by the respective numbers of trading days between the dates of reported sales and the specified valuation date, in accordance with Treas. Reg. §20.2031-2(b)(1) or any successor
thereto. 
 (o) “ISO” shall mean an incentive stock option—i.e., an Option which, at the
time such Option is granted under the Plan, qualifies as an incentive stock option within the meaning of section 422 of the Code, unless the Award Agreement states that the Option will not be treated as an ISO. 

  
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 (p) “Key Employee” shall mean an officer or other key
employee of the Trust or one of its Subsidiary Entities, as determined by the Committee in its sole discretion. 

(q) “More-Than-10-Percent Shareholder” shall mean any person who at the time of grant owns, directly or
indirectly, or is deemed to own by reason of the attribution rules of section 424(d) of the Code, Shares possessing more than 10 percent of the total combined voting power of all classes of Shares of the Trust or of a Related Corporation.

 (r) “Non-Employee Trustee” shall mean a trustee of the Trust who is not an employee of the
Trust or of a Related Corporation or Subsidiary Entity. 
 (s) “NQSO” shall mean a nonqualified
stock option—i.e., an Option that, at the time such Option is granted to a Participant, does not meet the definition of an ISO, whether or not it is designated as a nonqualified stock option in the Award Agreement. 

(t) “Option” is an Award entitling the Participant on exercise thereof to purchase Shares at a specified
exercise price. 
 (u) “Participant” shall mean an individual who has been granted an Award
under the Plan. 
 (v) “Performance Shares” shall mean an Award that entitles the recipient to
receive Shares, without payment, following the attainment of designated individual or Corporate Performance Goals. 
 (w) “Performance Goals” shall mean goals deemed by the Committee to be important to the success of the Trust or any of its Subsidiary Entities. The Committee shall establish the specific
measures for each such goal at the time an Award is granted, if the Committee desires to condition the Award on the achievement of Performance Goals. In creating these measures, the Committee shall use one or more of the following business criteria:
funds from operations, return on assets, return on net assets, asset turnover, return on equity, return on capital, market price appreciation of Shares, economic value added, total shareholder return, net income, pre-tax income, earnings per Share,
operating profit margin, net income margin, sales margin, cash flow, market share, inventory turnover, sales growth, capacity utilization, increase in customer base, environmental health and safety, diversity, and/or quality. The business criteria
may be expressed in absolute terms or relative to the performance of other individuals or companies or an index. 
 (x) “Plan” shall mean this Second Amended and Restated Pennsylvania Real Estate Investment Trust 2003 Equity Incentive Plan, as set forth herein and as it may be amended from time to
time. 
 (y) “Related Corporation” shall mean either a “subsidiary corporation” of
the Trust (if any), as defined in section 424(f) of the Code, or the “parent corporation” of the Trust (if any), as defined in section 424(e) of the Code. 

(z) “Restricted Shares” shall mean an Award that grants the recipient Shares at no cost, subject to
whatever restrictions are determined by the Committee. 
 (aa) “SAR” shall mean a share
appreciation right—i.e., an Award entitling the recipient on exercise to receive an amount, in cash or Shares or a combination thereof (such form to be determined by the Committee), determined in whole or in part by reference to appreciation in
Share value. 
 (bb) “Securities Act” shall mean the Securities Act of 1933, as amended.

 (cc) “Shares” shall mean shares of beneficial interest in the Trust, par value $1.00 per
share. 
 (dd) “Short-Term Deferral Period” shall mean, with respect to an
amount (including Shares) payable pursuant to an Award, the 2 1/2-month period beginning on the day immediately following the last day of 

  
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the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture. In no event shall interest be payable to reflect a payment date after the
first day of the Short-Term Deferral Period. 
 (ee) “Subsidiary Entity” shall mean an
affiliate of the Trust that is controlled by the Trust, directly or indirectly, through one or more intermediaries. 
 (ff) “Trust” shall mean Pennsylvania Real Estate Investment Trust, a Pennsylvania business trust. 
 3. Administration  
 (a) The Plan shall be administered by
the Committee; provided, however, that the Board reserves the right to exercise from time to time the authority and discretion otherwise reserved herein to the Committee, and, in that case, the authority and discretion of the Board will be
coextensive with that of the Committee. Each member of the Committee, while serving as such, shall be deemed to be acting in his or her capacity as a trustee of the Trust. Acts approved by a majority of the members of the Committee at which a quorum
is present, or acts without a meeting reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee. Any authority of the Committee (except for the authority described in subsection
(b)(1)-(4) below) may be delegated to a plan administrator. 
 (b) The Committee shall have the authority:

 (1) to select the Key Employees and Non-Employee Trustees to be granted Awards under the Plan, and to grant
such Awards at such time or times as it may choose; 
 (2) to determine the type and size of each Award,
including the number of Shares subject to the Award; 
 (3) to determine the terms and conditions of each Award;

 (4) to amend an existing Award in whole or in part (including the extension of the exercise period for any
NQSO), subject to Sections 7.1(g) and 7.2(e), except that the Committee may not (i) lower the exercise price of any Option, (ii) lower the grant date Fair Market Value of any SAR or (iii) without the consent of the Participant holding
the Award, take any action under this clause if such action would adversely affect the rights of such Participant with respect to such Award; 
 (5) to adopt, amend, and rescind rules and regulations for the administration of the Plan; and 
 (6) to interpret the Plan and decide any questions and settle any controversies that may arise in connection with it. 
 Such determinations and actions of the Committee (or its delegate), and all other determinations and actions of the Committee (or its delegate) made or taken under authority granted by any provision of
the Plan, shall be conclusive and shall bind all parties. Nothing in this subsection (b) shall be construed as limiting the power of the Board or the Committee to make the adjustments described in Sections 8.3 and 8.4. 

4. Effective Date and Term of Plan  
 (a) Effective Date. The Plan was adopted by the Board and became effective on July 24, 2003, was approved by the shareholders of the Trust pursuant to Section 9(b) on November 11,
2003, was amended and restated and reapproved by shareholders effective June 3, 2010, and was further amended and restated, and submitted for reapproval by the shareholders effective June 7, 2012. 

  
 5 

 (b) Term of Plan for ISOs. No Awards may be granted under the Plan
after the tenth anniversary of the most recent date the Plan is approved by the shareholders of the Trust, but Awards previously granted may extend beyond that date. 
 5. Shares Subject to the Plan. The aggregate number of Shares that may be delivered under the Plan (pursuant to Options, SARs or otherwise) is 5,150,000 Shares (which number includes the Shares
that were available under the Pennsylvania Real Estate Investment Trust 1999 Equity Incentive Plan). Further, no Key Employee shall receive Options, Performance Shares and/or SARs for more than 250,000 Shares during any calendar year under the Plan.
However, the limits in the preceding two sentences shall be subject to the adjustment described in Section 8.3. Shares delivered under the Plan may be authorized but unissued Shares or reacquired Shares, and the Trust may purchase Shares
required for this purpose, from time to time, if it deems such purchase to be advisable. Any Shares subject to an Option which expires or otherwise terminates for any reason whatever (including, without limitation, the surrender thereof without
having been exercised), any Shares that are subject to an Award that are forfeited, any Shares not delivered to the Participant because they are withheld for, or remitted by the Participant for, the payment of taxes with respect to an Award or in
satisfaction of the exercise price of an Option, and any Shares subject to an Award which is payable in Shares or cash and that is satisfied in cash rather than in Shares, shall continue to be available for Awards under the Plan. However, if an
Option is cancelled, the Shares covered by the cancelled Option shall be counted against the maximum number of Shares specified above for which Options may be granted to a single Key Employee. 

6. Eligibility. The class of employees who shall be eligible to receive Awards (including ISOs) under the Plan shall be the Key
Employees (including any trustees of the Trust who are also Key Employees). The class of individuals who shall be eligible to receive Awards (other than ISOs) under the Plan shall be the Non-Employee Trustees. More than one Award may be granted to a
Participant under the Plan. 
 7. Types of Awards  

7.1. Options 
 (a) Kinds of Options. Both ISOs and NQSOs may be granted by the Committee under the Plan; however, ISOs may only be granted to Key Employees of the Trust or of a Related Corporation. Once an ISO
has been granted, no action by the Committee that would cause the Option to lose its status as an ISO under the Code will be effective without the consent of the Participant holding the Option. 

(b) $100,000 Limit. The aggregate Fair Market Value of the Shares with respect to which ISOs are exercisable for
the first time by a Key Employee during any calendar year (counting ISOs under this Plan and under any other stock option plan of the Trust or a Related Corporation) shall not exceed $100,000. If an Option intended as an ISO is granted to a Key
Employee and the Option may not be treated in whole or in part as an ISO pursuant to such $100,000 limit, the Option shall be treated as an ISO to the extent it may be so treated under the limit and as an NQSO as to the remainder. For purposes of
determining whether an ISO would cause the limit to be exceeded, ISOs shall be taken into account in the order granted. The annual limits set forth above for ISOs shall not apply to NQSOs. 

(c) Exercise Price. Except as provided in Section 10.10, the exercise price of an Option shall be determined
by the Committee, subject to the following: 
 (1) The exercise price of an ISO shall not be less than the
greater of (i) 100 percent (110 percent in the case of an ISO granted to a More-Than-10-Percent Shareholder) of the Fair Market Value of the Shares subject to the Option, determined as of the time the Option is granted, or (ii) the par
value per Share. 
 (2) The exercise price of an NQSO shall not be less than the greater of (i) 100%
percent of the Fair Market Value of the Shares subject to the Option, determined as of the time the Option is granted, or (ii) the par value per Share. 

  
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 (d) Term of Options. The term of each Option may not be more than 10
years (five years, in the case of an ISO granted to a More-Than-10-Percent Shareholder) from the date the Option was granted, or such earlier date as may be specified in the Award Agreement. 

(e) Exercise of Options. An Option shall become exercisable at such time or times, and on such conditions, as the
Committee may specify. The Committee may at any time and from time to time accelerate the time at which all or any part of the Option may be exercised. Any exercise of an Option must be in writing, signed by the proper person, and delivered or
mailed to the Trust, accompanied by (i) any other documents required by the Committee and (ii) payment in full in accordance with subsection (f) below for the number of Shares for which the Option is exercised (except that, in the
case of an exercise arrangement approved by the Committee and described in subsection (f)(3) below, payment may be made as soon as practicable after the exercise). Only full Shares shall be issued under the Plan, and any fractional Share that might
otherwise be issuable upon exercise of an Option granted hereunder shall be forfeited. 
 (f) Payment for
Shares. The Award Agreement shall set forth, from among the following alternatives, how the exercise price is to be paid: 
 (1) in cash or by check (acceptable to the Committee), bank draft, or money order payable to the order of the Trust; 

(2) in Shares previously acquired by the Participant; provided, however, that such Shares have been held by the
Participant for such period of time as required to be considered “mature” Shares for purposes of accounting treatment; 
 (3) by delivering a properly executed notice of exercise of the Option to the Trust and a broker, with irrevocable instructions to the broker promptly to deliver to the Trust the amount of sale or loan
proceeds necessary to pay the exercise price of the Option; or 
 (4) by any combination of the above-listed
forms of payment or such other means as the Committee may approve. 
 In the event the Option price is paid, in whole or in
part, with Shares, the portion of the Option price so paid shall be equal to the Fair Market Value on the date of exercise of the Option of the Shares surrendered in payment of such Option price. 

(g) No Repricing; No Dividend Equivalents. Repricing of Options shall not be permitted without the approval of the
shareholders of the Trust. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an Option to lower its exercise price (other than
on account of capital adjustments resulting from share splits, etc., as described in Section 8.3); (ii) any other action that is treated as a “repricing” under generally accepted accounting principles; and (iii) repurchasing
for cash or canceling an Option in exchange for another Award at a time when its exercise price is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange occurs in connection with an event set forth in
Section 8.4 (involving certain corporate transactions). Such cancellation and exchange will be considered a “repricing” regardless of whether it would be treated as a “repricing” under generally accepted accounting
principles and regardless of whether it is voluntary on the part of the Participant. Options shall not earn dividend equivalents. 
 7.2. Share Appreciation Rights  
 (a) Grant of Share
Appreciation Rights. SARs may be granted to a Key Employee or a Non-Employee Trustee by the Committee. SARs may be granted in tandem with, or independently of, Options granted under the Plan. An SAR granted in tandem with an Option that is not
an ISO may be granted either at or after the time the Option is granted. An SAR granted in tandem with an ISO may be granted only at the time the ISO is granted. 

  
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 (b) Nature of Share Appreciation Rights. An SAR entitles the
Participant to receive, with respect to each Share as to which the SAR is exercised, the excess of the Share’s Fair Market Value on the date of exercise over its Fair Market Value on the date the SAR was granted. Such excess shall be paid in
cash, Shares, or a combination thereof, as determined by the Committee. With respect to an SAR paid in Shares, the total number of Shares actually issued to a Participant with respect to such SAR, rather than the number of Shares subject to such
SAR, shall reduce the number of Shares available for issuance under the Plan. 
 (c) Rules Applicable to
Tandem Awards. When SARs are granted in tandem with Options, the number of SARs granted to a Participant that shall be exercisable during a specified period shall not exceed the number of Shares that the Participant may purchase upon the
exercise of the related Option during such period. Upon the exercise of an Option, the SAR relating to the Shares covered by such Option will terminate. Upon the exercise of an SAR, the related Option will terminate to the extent of an equal number
of Shares. The SAR will be exercisable only at such time or times, and to the extent, that the related Option is exercisable and will be exercisable in accordance with the procedure required for exercise of the related Option. The SAR will be
transferable only when the related Option is transferable, and under the same conditions. An SAR granted in tandem with an ISO may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the exercise price of such ISO.

 (d) Exercise of Independent Share Appreciation Rights. An SAR not granted in tandem with an Option
shall become exercisable at such time or times, and on such conditions, as the Committee may specify in the Award Agreement. The Committee may at any time accelerate the time at which all or any part of the SAR may be exercised. Any exercise of an
independent SAR must be in writing, signed by the proper person, and delivered or mailed to the Trust, accompanied by any other documents required by the Committee. 

(e) No Repricing; No Dividend Equivalents. Repricing of SARs shall not be permitted without the approval of the
shareholders of the Trust. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (i) changing the terms of an SAR to lower its exercise price (i.e., its
starting value) (other than on account of capital adjustments resulting from share splits, etc., as described in Section 8.3); (ii) any other action that is treated as a “repricing” under generally accepted accounting principles;
and (iii) repurchasing for cash or canceling an SAR in exchange for another Award at a time when its exercise price (i.e., its starting value) is greater than the Fair Market Value of the underlying Shares, unless the cancellation and exchange
occurs in connection with an event set forth in Section 8.4 (involving certain corporate transactions). Such cancellation and exchange will be considered a “repricing” regardless of whether it would be treated as a
“repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Participant. SARs shall not earn dividend equivalents. 

(f) Term of SARs. The term of each SAR may not be more than 10 years from the date the SAR was granted, or such
earlier date as may be specified in the Award Agreement. 
 7.3. Restricted Shares  

(a) General Requirements. Restricted Shares may be issued or transferred to a Key Employee or a Non-Employee
Trustee for no consideration. 
 (b) Restrictions. Except as otherwise specifically provided by the Plan,
Restricted Shares may not be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of, and if the Participant ceases to be an employee or a Non-Employee Trustee of any of the Trust or its Subsidiary Entities or any reason, shall
be forfeited to the Trust. These restrictions will lapse at such time or times, and on such conditions, as the Committee may specify in the Award Agreement. Upon the lapse of all restrictions, the Shares will cease to be Restricted Shares for
purposes of the Plan. The Committee may at any time accelerate the time at which the restrictions on all or any part of the Shares will lapse. 

  
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 (c) Annual Grant to Non-Employee Trustees. As of the first business
day following each Annual Meeting of Shareholders of the Trust (or, if the Shares do not trade on such business day, then as of the first trading day thereafter), such number of Restricted Shares as determined by the Board in its sole discretion
shall be issued automatically for no consideration to each Non-Employee Trustee then in service with the Trust. The automatic grant of Restricted Shares to each Non-Employee Trustee pursuant to the preceding sentence shall be referred to herein as
the “Annual Grant.” Restrictions with respect to Restricted Shares underlying Annual Grants will generally lapse with respect to one-third of the Restricted Shares on May 1 of each year following the applicable grant date (or, if such
May 1 is not a trading day, the trading day next preceding such May 1); provided, that such restrictions will immediately lapse in full upon the Participant’s death or Disability or upon the occurrence of a Change in Control. If, as
of the grant date of any Annual Grant, the number of Shares available for issuance under the Plan is insufficient to make all the Annual Grants then due to be issued pursuant to this Section 7.3(c), no Annual Grants will then be made and the
operation of this Section 7.3(c) will then be automatically suspended. 
 (d) Rights as a
Shareholder. Unless the Committee determines otherwise, a Participant who receives Restricted Shares shall have certain rights of a shareholder with respect to the Restricted Shares, including voting and dividend rights, subject to the
restrictions described in subsection (b) above and any other conditions imposed by the Committee at the time of grant. Unless the Committee determines otherwise, certificates evidencing Restricted Shares will remain in the possession of the
Trust until such Shares are free of all restrictions under the Plan. 
 (e) Notice of Tax Election. Any
Participant making an election under section 83(b) of the Code for the immediate recognition of income attributable to an Award of Restricted Shares must provide a copy thereof to the Trust within 10 days of the filing of such election with the
Internal Revenue Service. 
 7.4. Performance Shares; Performance Goals  

(a) Grant. The Committee may grant Performance Shares to any Key Employee or Non-Employee Trustee, conditioned
upon the meeting of designated Performance Goals. The Committee shall determine the number of Performance Shares to be granted. 
 (b) Performance Period and Performance Goals. When Performance Shares are granted, the Committee shall establish the performance period during which performance shall be measured, the Performance
Goals, and such other conditions of the Award as the Committee deems appropriate. 
 (c) Delivery of
Performance Shares. At the end of each performance period, the Committee shall determine to what extent the Performance Goals and other conditions of the Award have been met and the number of Shares, if any, to be delivered with respect to the
Award. Any Shares deliverable pursuant to this subsection (c) shall be delivered no later than the end of the Short-Term Deferral Period, except to the extent such delivery is deferred pursuant to a deferral arrangement that complies with
Section 409A of the Code and the final regulations issued thereunder or any amendment thereof or successor thereto. 
 7.5.
Contract Shares  
 (a) Grant. The Committee may grant Contract Shares to any Key Employee or
Non-Employee Trustee, conditioned upon the Participant’s continued provision of services to the Trust or one of its Subsidiary Entities through the date(s) specified in the Award Agreement. The Committee shall determine the number of Contract
Shares to be granted. 
 (b) Contract Dates. When Contract Shares are granted, the Committee shall
establish the Contract Date(s) on which the Contract Shares shall be delivered to the Participant, provided the Participant is still providing services to the Trust or one of its Subsidiary Entities on such date(s). 

  
 9 

 (c) Delivery of Contract Shares. If the Participant is still
providing services to the Trust or to one or more of its Subsidiary Entities as of the Contract Date(s), the Committee shall cause the Contract Shares to be delivered to the Participant in accordance with the terms of the Award Agreement.

 7.6. Bonus Shares. The Committee may grant Bonus Shares to any Key Employee or Non-Employee Trustee as a bonus to the
Key Employee or Non-Employee Trustee for services to the Trust or to one or more of its Subsidiary Entries. The Committee shall determine the number of Bonus Shares to be granted. 

7.7. Dividend Equivalent Rights. The Committee may provide for payment to a Key Employee or Non-Employee Trustee of DERs, either
currently or in the future, or for the investment of such DERs on behalf of the Participant; however, any dividend or dividend equivalent payments relating to awards that vest based on the achievement of one or more performance goals will only be
earned to the extent such performance goals are met. 
 8. Events Affecting Outstanding Awards  

8.1. Termination of Service (Other Than by Death or Disability) If a Participant ceases to be an employee or trustee of any of the Trust
and its Subsidiary Entities for any reason other than death or Disability, the following shall apply: 
 (a)
Except as otherwise stated in the Award Agreement, all Options and SARs held by the Participant that were not exercisable immediately prior to the Participant’s termination of service shall terminate at that time. Any Options or SARs that were
exercisable immediately prior to the termination of service will continue to be exercisable for three months (or for such longer period as the Award Agreement states), and shall thereupon terminate, unless the Award Agreement provides by its terms
for immediate termination or for termination in less than three months in the event of termination of service in specific circumstances. In no event, however, shall an Option or SAR remain exercisable beyond the latest date on which it could have
been exercised without regard to this Section. For purposes of this subsection (a), a termination of service shall not be deemed to have resulted by reason of a sick leave or other bona fide leave of absence approved for purposes of the Plan by the
Committee. 
 (b) Except as otherwise stated in the Award Agreement, all Restricted Shares held by the
Participant at the time of termination of service must be transferred to the Trust (and, in the event the certificates representing such Restricted Shares are held by the Trust, such Restricted Shares shall be so transferred without any further
action by the Participant), in accordance with Section 7.3. 
 (c) Except as otherwise stated in the Award
Agreement, all Performance Shares, Contract Shares and DERs to which the Participant was not irrevocably entitled prior to the termination of service shall be forfeited and the Award canceled as of the date of such termination of service.

 8.2. Death or Disability. If a Participant dies or terminates his or her services on account of a Disability, the
following shall apply: 
 (a) Except as otherwise stated in the Award Agreement, all Options and SARs held by a
Participant that were not exercisable immediately prior to the Participant’s death or termination of service on account of Disability shall terminate at the date of death or termination of service on account of Disability. Any Options or SARs
that were exercisable immediately prior to death or termination of service on account of Disability, as the case may be, will continue to be exercisable by the Participant or by the Participant’s legal representative (in the case of
Disability), or by the Participant’s executor or administrator or by the person or persons to whom the Option or SAR is transferred by will or the laws of descent and distribution (in the case of death), for the one-year period ending with the
first anniversary of the Participant’s death or termination of service on account of Disability (or for such shorter or longer period as may be provided in the Award Agreement), and shall thereupon terminate. In no event, however, shall an
Option or SAR remain exercisable beyond the latest date on which it could have been exercised without regard to this Section. 

  
 10 

 (b) Except as otherwise stated in the Award Agreement, all Restricted Shares
held by the Participant at the date of death or termination of service on account of Disability, as the case may be, must be transferred to the Trust (and, in the event the certificates representing such Restricted Shares are held by the Trust, such
Restricted Shares shall be so transferred without any further action by the Participant), in accordance with Section 7.3. 
 (c) Except as otherwise stated in the Award Agreement, all Performance Shares, Contract Shares and DERs to which the Participant was not irrevocably entitled prior to death or termination of service on
account of Disability, as the case may be, shall be forfeited and the Award canceled as of the date of death or termination of service on account of Disability. 
 8.3. Capital Adjustments. The maximum number of Shares that may be delivered under the Plan, the maximum number of SARs not in tandem with Options, the maximum number of DERs payable in notional
Shares that may be granted, and the maximum number of Shares with respect to which Options or SARs may be granted to any Key Employee under the Plan, all as stated in Section 5, and the number of Shares issuable upon the exercise or vesting of
outstanding Awards under the Plan (as well as the exercise price per Share under outstanding Options) shall be proportionately adjusted, as may be deemed appropriate by the Committee, to reflect any increase or decrease in the number of issued
Shares resulting from a subdivision (share-split), consolidation (reverse split), share dividend, or similar change in the capitalization of the Trust. No adjustment under this Section shall be made (i) to an outstanding ISO if such adjustment
would constitute a modification under section 424(h) of the Code, unless the Participant consents to such adjustment, and (ii) to an outstanding NQSO or SAR if such adjustment would constitute a modification under Treas. Reg.
§1.409A-1(b)(5)(v) or any amendment thereof or successor thereto unless the Participant consents to such adjustment. 

8.4. Certain Corporate Transactions  
 (a) In the event of a corporate transaction (as, for example, a merger, consolidation, acquisition of property or shares, separation, reorganization, or liquidation), each outstanding Award shall be
assumed by the surviving or successor entity; provided, however, that in the event of a proposed corporate transaction, the Committee may terminate all or a portion of any outstanding Award, effective upon the closing of the corporate transaction,
if it determines that such termination is in the best interests of the Trust. If the Committee decides to terminate outstanding Options or SARs, the Committee shall give each Participant holding an Option or SAR to be terminated not less than seven
days’ notice prior to any such termination, and any Option or SAR that is to be so terminated may be exercised (if and only to the extent that it is then exercisable) up to, and including the date immediately preceding such termination.
Further, the Committee, in its discretion, may (i) accelerate, in whole or in part, the date on which any or all Options and SARs become exercisable, (ii) remove the restrictions from the outstanding Restricted Shares, (iii) cause the
delivery of any Performance Shares, even if the associated Performance Goals have not been met, (iv) cause the delivery of any Contract Shares, even if the Contract Date(s) have not been reached, and/or (v) cause the payment of any DERs.
The Committee also may, in its discretion, change the terms of any outstanding Award to reflect any such corporate transaction; provided that, (i) in the case of ISOs, such change would not constitute a “modification” under section
424(h) of the Code unless the Participant consents to the change, and (ii) in the case of NQSOs and SARs, such change would not constitute a modification under Treas. Reg. §1.409A-1(b)(5)(v) or any amendment thereof or successor thereto
unless the Participant consents to the change. 
 (b) In lieu of the action described in subsection
(a) above, the Committee may, in its discretion, arrange to have the surviving or acquiring entity or affiliate grant to each Participant a replacement award which, in the judgment of the Committee, is substantially equivalent to the Award.

  
 11 

 9. Suspension, Amendment or Termination of the Plan  

(a) In General. The Board, pursuant to a written resolution, may from time to time suspend or terminate the Plan
or amend the Plan and any outstanding Award Agreement evidencing Annual Grants, and, except as provided in Sections 3(b)(4), 7.1(a), 7.1(g), 7.1(e), 7.2(e) and 8.4(a), the Committee may amend any outstanding Awards (other than Awards of Annual
Grants) in any respect whatsoever; except that, without the approval of the shareholders (given in the manner set forth in subsection (b) below)— 
 (1) no amendment may be made that would— 
 (A) change the
class of employees eligible to participate in the Plan with respect to ISOs; 
 (B) except as permitted under
Section 8.3, increase the maximum number of Shares with respect to which ISOs may be granted under the Plan; or 
 (C) extend the duration of the Plan under Section 4(b) with respect to any ISOs granted hereunder; 
 (2) no amendment may be made that would constitute a modification of the material terms of the “performance goal” within the meaning of Treas. Reg. §1.162-27(e)(4)(vi) or any successor
thereto (to the extent compliance with section 162(m) of the Code is desired); and 
 (3) no amendment may be
made that would require shareholder approval under the applicable rules of the New York Stock Exchange or as required under any other applicable law, rule or regulation. 
 Notwithstanding the foregoing, no such suspension, termination, or amendment shall materially impair the rights of any Participant holding an outstanding Award without the consent of such Participant.

 (b) Manner of Shareholder Approval. The approval of shareholders must be effected by a majority of the
votes cast (including abstentions, to the extent abstentions are counted as voting under applicable state law), in a separate vote at a duly held shareholders’ meeting at which a quorum representing a majority of all outstanding voting Shares
is, either in person or by proxy, present and voting on the Plan. 
 10. Miscellaneous  

10.1. Documentation of Awards. Awards shall be evidenced by such written Award Agreements as may be prescribed by the Committee
from time to time. Such instruments may be in the form of agreements to be executed by both the Participant and the Trust, or certificates, letters, or similar instruments, which need not be executed by the Participant but acceptance of which by the
Participant will evidence agreement by the Participant to the terms thereof. 
 10.2. Rights as a Shareholder. Except as
specifically provided by the Plan or an Award Agreement, the receipt of an Award shall not give a Participant rights as a shareholder; instead, the Participant shall obtain such rights, subject to any limitations imposed by the Plan or the Award
Agreement, upon the actual receipt of Shares. 
 10.3. Conditions on Delivery of Shares. The Trust shall not deliver any
Shares pursuant to the Plan or remove restrictions from Shares previously delivered under the Plan (i) until all conditions of the Award have been satisfied or removed, (ii) until all applicable Federal and state laws and regulations have
been complied with, and (iii) if the outstanding Shares are at the time of such delivery listed on any stock exchange, until the Shares to be delivered have been listed or authorized to be listed on such exchange. If an Award is exercised by
the Participant’s legal representative, the Trust will be under no obligation to deliver Shares pursuant to such exercise until the Trust is satisfied as to the authority of such representative. 

  
 12 

 10.4. Registration and Listing of Shares. If the Trust shall deem it necessary to
register under the Securities Act or any other applicable statute any Shares purchased or otherwise delivered under this Plan, or to qualify any such Shares for an exemption from any such statutes, the Trust shall take such action at its own
expense. Purchases and grants of Shares hereunder shall be postponed as necessary pending any such action. 
 10.5.
Compliance with Rule 16b-3. All elections and transactions under this Plan by persons subject to Rule 16b-3, promulgated under section 16(b) of the Exchange Act, or any successor to such Rule, are intended to comply with at least one of
the exemptive conditions under such Rule. The Committee shall establish such administrative guidelines to facilitate compliance with at least one such exemptive condition under Rule 16b-3 as the Committee may deem necessary or appropriate.

 10.6. Tax Withholding  
 (a) Obligation to Withhold. The Trust shall withhold from any cash payment made pursuant to an Award an amount sufficient to satisfy all Federal, state, and local withholding tax requirements (the
“withholding requirements”). In the case of an Award pursuant to which Shares may be delivered, the Committee may require that the Participant or other appropriate person remit to the Trust an amount sufficient to satisfy the withholding
requirements, or make other arrangements satisfactory to the Committee with regard to such requirements, prior to the delivery of any Shares. 
 (b) Election to Withhold Shares. The Committee, in its discretion, may permit or require the Participant to satisfy the withholding requirements, in whole or in part, by electing to have the Trust
withhold Shares (or by returning previously acquired Shares to the Trust); provided, however, that the Trust may limit the number of Shares withheld to satisfy the tax withholding requirements to the extent necessary to avoid adverse accounting
consequences. Shares shall be valued, for purposes of this subsection (b), at their Fair Market Value (determined as of the date an amount is includible in income by the Participant (the “Determination Date”), rather than the date of
grant). The Committee shall adopt such withholding rules as it deems necessary to carry out the provisions of this Section. 

10.7. Transferability of Awards. No ISO may be transferred other than by will or by the laws of descent and distribution. No other
Award may be transferred, except to the extent permitted in the applicable Award Agreement, which may be only for no consideration, or by will or the laws of descent and distribution. During a Participant’s lifetime, an Award requiring exercise
may be exercised only by the Participant (or in the event of the Participant’s incapacity, by the person or persons legally appointed to act on the Participant’s behalf). 

10.8. Registration. If the Participant is married at the time Shares are delivered and if the Participant so requests at such
time, the certificate or certificates for such Shares shall be registered in the name of the Participant and the Participant’s spouse, jointly, with right of survivorship. 

10.9. Acquisitions. Notwithstanding any other provision of this Plan, Awards may be granted hereunder in substitution for awards
held by directors, trustees and key employees of another entity that engages in a merger, consolidation, acquisition of assets, or similar transaction with the Trust or a Related Corporation, provided the terms of the substitute Awards so granted
conform to the terms set forth in this Plan (except that the exercise price of any substituted Option—whether an ISO or an NQSO—may be adjusted according to the provisions of section 424(a) of the Code, if the grant of such substituted
Option is pursuant to a transaction described in such section of the Code). 
 10.10. Employment Rights. Neither the
adoption of the Plan nor the grant of Awards will confer on any person any right to continued employment by the Trust or any of its Subsidiary Entities or affect in any way the right of any of the foregoing to terminate an employment relationship at
any time. 

  
 13 

 10.11. Indemnification of Board and Committee. Without limiting any other rights of
indemnification that they may have from the Trust or any of its Subsidiary Entities, the members of the Board and the members of the Committee shall be indemnified by the Trust against all costs and expenses reasonably incurred by them in connection
with any claim, action, suit, or proceeding to which they or any of them may be a party by reason of any action taken or failure to act under, or in connection with, the Plan or any Award granted thereunder, and against all amounts paid by them in
settlement thereof (provided such settlement is approved by legal counsel selected by the Trust) or paid by them in satisfaction of a judgment in any such action, suit, or proceeding, except a judgment based upon a finding of willful misconduct or
recklessness on their part. Upon the making or institution of any such claim, action, suit, or proceeding, the Board or Committee member shall notify the Trust in writing, giving the Trust an opportunity, at its own expense, to handle and defend the
same before such Board or Committee member undertakes to handle it on his or her own behalf. The provisions of this Section shall not give members of the Board or the Committee greater rights than they would have under the Trust’s by-laws or
Pennsylvania law. 
 10.12. Application of Funds. Any cash proceeds received by the Trust from the sale of Shares
pursuant to Awards granted under the Plan shall be added to the general funds of the Trust. Any Shares received in payment for additional Shares upon exercise of an Option shall become treasury shares. 

10.13. Governing Law. The Plan shall be governed by the applicable Code provisions to the maximum extent possible. Otherwise, the
laws of the Commonwealth of Pennsylvania (without reference to the principles of conflict of laws) shall govern the operation of, and the rights of Key Employees or Non-Employee Trustees under, the Plan and Awards granted hereunder. 

IN WITNESS WHEREOF, Pennsylvania Real Estate Investment Trust has caused this Plan to be duly executed this 26 day of April, 2012.

  

			
	 PENNSYLVANIA REAL ESTATE
 INVESTMENT TRUST

		
	By:	 	/s/ Bruce Goldman
	Title:	 	Executive Vice President and General Counsel

  
 14Fifth Supplemental Indenture

Table of Contents

 Exhibit 4.6 
 AMERICAN FINANCIAL GROUP, INC. 
 Issuer 

TO 
 U.S. BANK
NATIONAL ASSOCIATION 
 Trustee 
 FIFTH SUPPLEMENTAL INDENTURE 
 DATED AS OF JUNE 12, 2012 

6-3/8% SENIOR NOTES 
 DUE JUNE 12, 2042 
  

Table of Contents

 TABLE OF CONTENTS1 

 

							
	 	  	 	  	Page	 
	Article I    6-3/8% SENIOR NOTES 	  	 	1	  
	Section 1.01	  	 Establishment
	  	 	1	  
	Section 1.02	  	 Definitions
	  	 	2	  
	Section 1.03	  	 Payment of Principal and Interest
	  	 	2	  
	Section 1.04	  	 Denominations
	  	 	3	  
	Section 1.05	  	 Global Securities
	  	 	3	  
	Section 1.06	  	 Redemption at the Option of the Company
	  	 	3	  
	Section 1.07	  	 Governing Law
	  	 	3	  
	Section 1.08	  	 Registration, Registration of Transfer and Exchange
	  	 	3	  
	Section 1.09	  	 Title; Payment and Terms 
	  	 	5	  
	Section 1.10	  	 Mutilated, Destroyed, Lost and Stolen Debt Securities
	  	 	6	  
	Section 1.11	  	 Events of Default
	  	 	7	  
	Section 1.12	  	 Acceleration of Maturity; Rescission and Annulment
	  	 	8	  
	Section 1.13	  	 Acceptance of Appointment by Successor
	  	 	9	  
	Section 1.14	  	 Supplemental Indentures With Consent of Holders
	  	 	10	  
	Section 1.15	  	 Maintenance of Properties
	  	 	11	  
	Section 1.16	  	 Corporate Existence
	  	 	11	  
	Section 1.17	  	 Limitations on Liens
	  	 	11	  
	Section 1.18	  	 Debt Securities Redeemed in Part
	  	 	12	  
		
	Article II    MISCELLANEOUS PROVISIONS 	  	 	12	  
	Section 2.01	  	 Recitals by Company
	  	 	12	  
	Section 2.02	  	Ratification and Incorporation of Indenture; Application of Fourth Supplemental Indenture to other Series of Debt Securities	  	 	12	  
	Section 2.03	  	 Executed in Counterparts
	  	 	12	  

  
  

1 This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of
its terms and provisions. 

Table of Contents

 THIS FIFTH SUPPLEMENTAL INDENTURE is made as of the 12th day of June, 2012, among AMERICAN FINANCIAL GROUP, INC., an Ohio
corporation, Great American Insurance Tower, 301 East Fourth Street, Cincinnati, Ohio 45202 (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, (formerly known as Star Bank, N.A.) a national banking association, as trustee (the
“Trustee”). 
 WITNESSETH: 
 WHEREAS, the Company has heretofore entered into an Indenture, dated as of November 12, 1997, as supplemented by the Supplemental Indenture dated as of December 3, 1997, the Second Supplemental
Indenture dated as of February 3, 2004, the Third Supplement Indenture dated as of June 17, 2009 and the Fourth Supplement Indenture dated as of September 27, 2010 (collectively, the “Indenture”) with U.S. Bank National
Association, as trustee; 
 WHEREAS, the Indenture is incorporated herein by this reference; 

WHEREAS, under the Indenture, a new series of Debt Securities may at any time be established by the Board of Directors of the Company in
accordance with the provisions of the Indenture and the conditions, limitations and restrictions on the terms of such series may be established by a supplemental indenture executed by the Company and the Trustee; 

WHEREAS, the Company proposes to create under the Indenture a new series of Debt Securities; 

WHEREAS, additional Debt Securities of other series hereafter established, except as may be limited in the Indenture as at the time
supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified, and that such series of Debt Securities hereafter established or any series of Debt Securities established prior to the
date hereof shall not be subject to the provisions of this Fifth Supplemental Indenture unless expressly provided in the Board Resolution, supplemental indenture or other documentation, as permitted by the Indenture, establishing such series of Debt
Securities; and 
 WHEREAS, all conditions necessary to authorize the execution and delivery of this Fifth Supplemental
Indenture and to make it a valid and binding obligation of the Company have been done or performed. 
 NOW, THEREFORE, in
consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 

ARTICLE I 
 6-3/8% SENIOR NOTES 
 Section 1.01
Establishment. There is hereby established a new series of Debt Securities to be issued under the Indenture, to be designated as the Company’s 6-3/8% Senior Notes due June 12, 2042 (the “Senior Notes”). 

There are to be authenticated and delivered Senior Notes, initially limited in aggregate principal amount of $200,000,000 (or up to
$230,000,000 if the underwriters exercise in full their option to purchase additional Senior Notes pursuant to the Purchase Agreement by and among the Company and Banc of America Securities LLC, UBS Investment Bank and Wells Fargo Securities, LLC
dated June 7, 2012), and no further Senior Notes shall be authenticated and delivered except as provided by Section 2.1, 

Table of Contents

 
3.5, 3.6, 9.6 and 11.7 of the Indenture; provided further, that the aggregate principal amount of the Senior Notes may be increased in the future, without the consent of the Holders of the Senior
Notes, on the same terms and with the same CUSIP number as the Senior Notes, provided that such further Senior Notes are fungible for U.S. federal income tax purposes with such previously issued Senior Notes. The Senior Notes shall be issued in
definitive fully registered form. 
 The Senior Notes shall be issued in the form of one Global Security in substantially the
form set out in Exhibit A hereto. The U.S. Depositary with respect to the Senior Notes shall be The Depository Trust Company. 

The form of the Trustee’s Certificate of Authentication for the Senior Notes shall be in substantially the form set forth in Exhibit
B hereto. 
 Each Senior Note shall be dated the date of authentication thereof and shall bear interest from the date of
original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for. 

Section 1.02 Definitions. (a) The following defined terms used herein shall, unless the
context otherwise requires, have the meanings specified below. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture. 

“Final Maturity” means June 12, 2042. 
 “Interest Payment Date” means March 12, June 12, September 12 and December 12 of each year. 

“Place of Payment” means New York, New York. 
 “Regular Record Date” means February 27, May 27, August 27 and November 27; as the case may be, next preceding the relevant Interest Payment Date. 

Section 1.03 Payment of Principal and Interest. The entire outstanding principal amount of the
Senior Notes shall be due and payable, unless accelerated, redeemed or required to be repurchased pursuant to the Indenture, at Final Maturity. The unpaid principal amount of the Senior Notes shall bear interest at the rate of 6-3/8% per annum
until paid or duly provided for. Interest shall be paid quarterly in arrears on each Interest Payment Date, commencing September 12, 2012, to the Person in whose name the Senior Notes are registered on the Regular Record Date for such Interest
Payment Date, provided that interest payable at Final Maturity will be paid to the Person to whom principal is payable. Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such
Regular Record Date and may be paid as provided in Section 3.7 of the Indenture. 
 Payments of interest on the Senior
Notes will include interest accrued to but excluding the respective Interest Payment Dates. Interest payments for the Senior Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months. In the event that any date on which
interest is payable on the Senior Notes is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day that is a Business Day, except that, notwithstanding Section 1.13 of the Indenture, if
such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. No interest will
accrue due to any delay in payment on the amount so payable for the period from such Interest Payment Date to the date payment is made. 

  

- 2 - 

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 Payment of the principal and interest due at Final Maturity of the Senior Notes shall be
made at the office or agency of the Company maintained for that purpose in the Place of Payment, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided,
however, that, at the option of the Company, interest may be paid by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register; provided, further, that payment to the U.S. Depositary or any
successor depositary may be made by wire transfer to the account designated by the U.S. Depositary or such successor depositary in writing. 
 Section 1.04 Denominations. The Senior Notes may be issued in denominations of $25.00, or any integral multiple of $25.00 in excess thereof. 

Section 1.05 Global Securities. The Senior Notes will be issued in the form of one or more Global
Securities registered in the name of the U.S. Depositary or its nominee. Except under the limited circumstances described below, Senior Notes represented by the Global Security will not be exchangeable for, and will not otherwise be issuable as,
Senior Notes in definitive form. The Global Securities described above may not be transferred except as a whole by the U.S. Depositary to a nominee of such U.S. Depositary or by a nominee of such U.S. Depositary to such depositary or another nominee
of such U.S. Depositary or by such U.S. Depositary or any other such nominee to a successor U.S. Depositary or a nominee of such successor U.S. Depositary. 
 Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Senior Note shall be
exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the U.S. Depositary or its nominee or to a successor U.S. Depositary or its nominee. The rights of Holders of such Global Security shall
be exercised only through the U.S. Depositary. 
 A Global Security shall be exchangeable for Senior Notes registered in the
names of Persons other than the U.S. Depositary or its nominee only as provided by Section 3.5 of the Indenture. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Senior Notes registered in
such names as the U.S. Depositary shall direct. 
 Section 1.06 Redemption at the Option of
the Company. The Senior Notes may not be redeemed prior to June 12, 2017. On or after June 12, 2017, the Company, at its option, may redeem the Senior Notes, in whole at any time or in part from time to time, at 100% of their principal
amount, plus accrued interest to, but excluding, the date of redemption. 
 Section 1.07
Governing Law. Section 1.12 of the Indenture is hereby amended and restated to read in its entirety as follows: 

“SECTION 1.12 Governing Law. 
 THIS INDENTURE AND THE DEBT SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW RULES OF SUCH STATE. THIS INDENTURE IS
SUBJECT TO THE PROVISIONS OF THE TRUST INDENTURE ACT OF 1939, AS AMENDED, THAT ARE REQUIRED TO BE PART OF THIS INDENTURE AND SHALL, TO THE EXTENT APPLICABLE, BE GOVERNED BY SUCH PROVISIONS.” 

Section 1.08 Registration, Registration of Transfer and Exchange. Section 3.5 of the Indenture
is hereby amended and restated to read in its entirety as follows: 

  

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 “SECTION 3.5 Registration, Registration of Transfer and Exchange. The Company
shall keep or cause to be kept for the Debt Securities of each series a register (the register maintained in such office being herein sometimes referred to as the “Debt Security Register”) in which, subject to such reasonable regulations
as it may prescribe, the Company shall provide for the registration, registration of transfer and exchange of Debt Securities. The Trustee is hereby initially appointed “Debt Security Registrar” for such purposes. 

Upon surrender for registration of transfer of any Debt Security of any particular series at the office or agency of the Company in a
Place of Payment for that series, the Company shall execute, and the Trustee for the Debt Securities of each series shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Debt Securities of any
authorized denominations, and of a like Stated Maturity and of a like series and aggregate principal amount and with like terms and conditions. 
 Except as set forth below, at the option of the Holder, Debt Securities of any particular series may be exchanged for other Debt Securities of any authorized denominations, and of a like Stated Maturity
and of a like series and aggregate principal amount and with like terms and conditions, upon surrender of the Debt Securities to be exchanged at such office or agency. Whenever any Debt Securities are so surrendered for exchange, the Company shall
execute, and the Trustee for such Debt Securities shall authenticate and deliver, the Debt Securities which the Holder making the exchange is entitled to receive. 
 All Debt Securities issued upon any registration of transfer or exchange of Debt Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Debt Securities surrendered upon such registration of transfer or exchange. 
 Every Debt Security
presented or surrendered for registration of transfer or exchange shall (if so required by the Company or the Trustee for such Debt Security) be duly endorsed, or be accompanied by a written instrument of transfer in form reasonably satisfactory to
the Company and the Debt Security Registrar for such series duly executed by the Holder thereof or his attorney duly authorized in writing. 
 No service charge shall be made for any registration of transfer or exchange of Debt Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of Debt Securities, other than exchanges pursuant to Section 3.4, 9.6, 11.3 or 11.7 not involving any transfer. 

Notwithstanding any other provision of this Section, unless and until it is exchanged in whole or in part for Debt Securities in
definitive form, a Global Security representing all or a portion of the Debt Securities of a series may not be transferred except as a whole by the U.S. Depositary for such series to a nominee of such U.S. Depositary or by a nominee of such U.S.
Depositary to such depositary or another nominee of such U.S. Depositary or by such U.S. Depositary or any other such nominee to a successor U.S. Depositary for such series or a nominee of such successor U.S. Depositary. 

If at any time the U.S. Depositary for the Debt Securities of a series notifies the Company that it is unwilling or unable to continue as
U.S. Depositary for the Debt Securities of such series or if at any time the U.S. Depositary for Debt Securities of such series shall no longer be a clearing agency registered and in good standing under the Exchange Act or other applicable statute
or regulation, the Company shall appoint a successor U.S. Depositary for the Debt Securities of such series. If a successor U.S. Depositary for the Debt Securities is not appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Debt Securities of such series, will authenticate and deliver, Debt Securities of such
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amount equal to the principal amount of the Global Security or Securities representing such series in exchange for such Global Security or Securities. 

The Company may at any time and in its sole discretion determine that the Debt Securities of any series issued in the form of one or more
Global Securities shall no longer be represented by such Global Security or Securities. In such event, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Debt Securities of
such series, will authenticate and deliver, Debt Securities of such series in definitive form and in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such series in exchange for such
Global Security or Securities. 
 If the Debt Securities of any series shall have been issued in the form of one or more Global
Securities and if an Event of Default with respect to the Debt Securities of such series shall have occurred and be continuing, the Company will promptly execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery
of definitive Debt Securities of such series, will authenticate and deliver Debt Securities of such series in definitive form and in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such
series in exchange for such Global Security or Securities. 
 The U.S. Depositary for such series of Debt Securities may
surrender a Global Security for such series of Debt Securities in exchange in whole or in part for Debt Securities of such series of like tenor and terms and in definitive form on such terms as are acceptable to the Company and such U.S. Depositary.
Thereupon, the Company shall execute and the Trustee shall authenticate and deliver, without charge: 
 (1) to each Person
specified by the U.S. Depositary a new Debt Security or Securities of the same series, of like tenor and terms and of any authorized denomination as requested by such Person in an aggregate principal amount equal to and in exchange for such
Person’s beneficial interest in the Global Security; and 
 (2) to the U.S. Depositary a new Global Security in a
denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of the Debt Securities delivered to Holders thereof. 

Upon the exchange of a Global Security for Debt Securities in definitive form, such Global Security shall be canceled by the Trustee.
Definitive Debt Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in such authorized denominations as the U.S. Depositary for such Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such definitive Debt Securities to the Persons in whose names such Debt Securities are so registered.” 

Section 1.09 Title; Payment and Terms. The last paragraph of Section 3.1 of the Indenture is
hereby amended and restated to read in its entirety as follows: 
 “All Debt Securities of any particular series shall be
substantially identical except as to denomination, rate of interest, Stated Maturity and the date from which interest, if any, shall accrue, and except as may otherwise be provided in or pursuant to such Board Resolution relating thereto. The terms
of such Debt Securities, as set forth above, may be determined by the Company from time to time if so provided in or established pursuant to the authority granted in a Board Resolution. Any of the terms of

  

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the Debt Securities, as set forth above, may be made dependent upon facts ascertainable outside the Board Resolution provided that the manner in which said facts shall operate upon the terms is
set forth in the Board Resolution. All Debt Securities of any one series need not be issued at the same time, and unless otherwise provided, a series may be reopened, without notice to or the consent of the registered holders of such Debt
Securities, for issuances of additional Debt Securities of such series. Such additional Debt Securities will rank pari passu with the outstanding Debt Securities of such series in all material respects, or in all respects except for
the issue date and public offering price or payment of interest accruing prior to the issue date of such additional Debt Securities or except for the first payment of interest following the issue date of such additional Debt Securities, and so that
such additional Debt Securities may be consolidated and form a single series with the outstanding Debt Securities of such series and have the same terms as to status, redemption or otherwise as the outstanding Debt Securities of such series;
provided that such additional Debt Securities are fungible for U.S. federal income tax purposes with such previously issued Debt Securities” 
 Section 1.10 Mutilated, Destroyed, Lost and Stolen Debt Securities. Section 3.6 of the Indenture is hereby amended and restated to read in its entirety as
follows: 
 “SECTION 3.6 Mutilated, Destroyed, Lost and Stolen Debt Securities. If (i) any mutilated Debt
Security is surrendered to the Trustee for such Debt Security, or the Company and the Trustee for a Debt Security receive evidence to their satisfaction of the destruction, loss or theft of any Debt Security, and (ii) there is delivered to the
Company, the Debt Security Registrar and such Trustee such security or indemnity as may be reasonably required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or such Trustee that
such Debt Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request such Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Debt Security or in exchange for such mutilated
Debt Security, a new Debt Security of the same series and in a like principal amount and of a like Stated Maturity and with like terms and conditions and bearing a number not contemporaneously outstanding. 

In case any such mutilated, destroyed, lost or stolen Debt Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Debt Security, pay such Debt Security (without surrender thereof except in the case of a mutilated Debt Security) if the applicant for such payment shall furnish to the Company, the Debt Security Registrar
and the Trustee for such Debt Security such security or indemnity as may be reasonably required by them to save each of them harmless, and in case of destruction, loss or theft, evidence reasonably satisfactory to the Company and such Trustee and
any agent of either of them of the destruction, loss or theft of such Debt Security and the ownership thereof. 
 Upon the
issuance of any new Debt Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including all fees and
expenses of the Trustee and the Debt Security Registrar for such Debt Security) connected therewith. 
 Every new Debt Security
of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Debt Security or in exchange for any mutilated Debt Security shall constitute an original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Debt Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Debt Securities of the same series, duly issued
hereunder. 

  

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 The provisions of this Section are exclusive and shall preclude (to the extent lawful) the
assertion of any Holder of all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Debt Securities.” 
 Section 1.11 Events of Default. Section 5.1 of the Indenture is hereby amended and restated to read in its entirety as follows: 

“SECTION 5.1 Events of Default. “Event of Default” wherever used herein with respect to any particular series of
Debt Securities, unless otherwise specified in the Debt Security or the Board Resolution with respect to that series of Debt Securities, means any one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

(1) default in the payment of any installment of interest upon any Debt Security of that series 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) any Debt Security of that series at its Maturity; or 
 (3) default in the performance of, or breach of, any covenant or
warranty of the Company in respect of any Debt Security of that series contained in this Indenture or in such Debt Securities (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically
dealt with or which expressly has been included in this Indenture solely for the benefit of Debt Securities of a series other than that series) or in the applicable Board Resolution under which such series is issued as contemplated by
Section 3.1 and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee for the Debt Securities of such series or to the Company and such Trustee
by the Holders of at least 25% in principal amount of the Outstanding Debt Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or 
 (4) if an event of default with respect to any other series of Debt Securities or as defined in any mortgage,
indenture, security agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any Indebtedness of the Company for money borrowed in excess of $10 million principal amount, whether such Indebtedness
now exists or shall hereafter be created, shall happen and, if such Indebtedness is not already matured in accordance with its terms, shall result in such Indebtedness becoming or being declared due and payable prior to the date on which it would
otherwise become due and payable, and such acceleration shall not have been rescinded or annulled or such Indebtedness shall not have been discharged, in either case, within a period of ten days after there has been given, by registered or certified
mail in the manner set forth in Section 1.5, to the Company by the Trustee for the Debt Securities of that particular series referred to in the first clause of this Section 5.1 or to the Company and such Trustee by the Holders of at least
25% in principal amount of the Outstanding Debt Securities of that particular series referred to in the first clause of this Section 5.1 a written notice specifying such event of default and requiring the Company to cause such acceleration to
be rescinded or annulled or to cause such Indebtedness to be discharged and stating that such notice is a “Notice of Default” hereunder; provided, that if prior to the entry of judgment in favor of the Trustee, such default under such
indenture or instrument shall be remedied or cured by the Company or waived by the holders of such Indebtedness, then the Event of Default hereunder shall be deemed likewise to have been remedied, cured or waived; and provided, further, however,
that, subject to the provisions of Sections 6.1 and 6.2, such Trustee shall not be deemed to have knowledge of such default unless either 

  

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(A) a Responsible Officer of such Trustee assigned to its Corporate Trust Office shall have actual knowledge of such default or (B) the Trustee shall have received written notice thereof
from the Company, from the Holders of 10% or more in principal amount of the Outstanding Debt Securities of such other series, from the holder of any such Indebtedness or from the trustee under any such mortgage, indenture, security agreement or
other instrument; or 
 (5) the entry against the Company of one or more judgments, decrees or orders by a court having
jurisdiction in the premises from which no appeal may be or is taken for the payment of money, either individually or in the aggregate, in excess of $10 million and the continuance of such judgment, decree or order unsatisfied and in effect for any
period of 60 consecutive days without a stay of execution and there has been given, by registered or certified mail in the manner set forth in Section 1.5, to the Company by the Trustee for the Debt Securities of such series or to the Company
and such Trustee by the Holders of at least 25% in principal amount of the Outstanding Debt Securities of such series a written notice specifying such entry and continuance of such judgment, decree or order and stating that such notice is a
“Notice of Default” hereunder; provided, however, that subject to the provisions of Sections 6.1 and 6.2, such Trustee shall not be deemed to have knowledge of such entry and continuance of such judgment, decree or order unless either
(A) a Responsible Officer of such Trustee assigned to its Corporate Trust Office shall have actual knowledge thereof or (B) the Trustee shall have received written notice thereof from the Company or from the Holders of 10% or more in
principal amount of the Outstanding Debt Securities of such series; or 
 (6) the Company shall commence any case or proceeding
seeking to have an order for relief entered on its behalf as debtor or to adjudicate it as bankrupt or insolvent or seeking reorganization, liquidation, dissolution, winding-up, arrangement, composition or readjustment of its debts or any other
relief under any bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement, composition, readjustment of debt or other similar act or law of any jurisdiction, domestic or foreign, now or hereafter existing; or the Company shall
apply for a receiver, custodian or trustee (other than any trustee appointed as a mortgagee or secured party in connection with the issuance of indebtedness for borrowed money of the Company) of it or for all or a substantial part of its property;
or the Company shall make a general assignment for the benefit of creditors; or the Company shall take any corporate action in furtherance of any of the foregoing; or 
 (7) any case or proceeding against the Company shall be commenced seeking to have an order for relief entered against it or to adjudicate it as bankrupt or insolvent or seeking reorganization,
liquidation, dissolution, winding-up, arrangement, composition or readjustment of its debts or any other relief under any bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement, composition, readjustment of debt or other
similar act or law of any jurisdiction, domestic or foreign, now or hereafter existing; or a receiver, custodian or trustee (other than any trustee appointed as a mortgagee or secured party in connection with the issuance of indebtedness for
borrowed money of the Company) of the Company or for all or a substantial part of its property shall be appointed in any such case or proceeding; and such case or proceeding (A) results in the entry of an order for relief or a similar order
against it or (B) 
shall continue unstayed and in effect for a period of 60 consecutive days.” 
 Section 1.12
Acceleration of Maturity; Rescission and Annulment. Section 5.2 of the Indenture is hereby amended and restated to read in its entirety as follows: 
 “SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. If an Event of Default (other than an Event of Default specified in Section 5.1(6) or (7)) with respect to any particular
series of Debt Securities occurs and is continuing, then and in every such case either the Trustee for the Debt Securities of such series or the Holders of not less than 25% in principal amount of the Outstanding Debt Securities of that series may
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Securities, such lesser amount as may be provided for in the terms of that series) of all the Debt Securities of that series to be due and payable immediately, by a notice in writing to the
Company (and to such Trustee if given by Holders), and upon any such declaration of acceleration such principal or such lesser amount, as the case may be, together with accrued interest and all other amounts owing hereunder, shall become immediately
due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived. 
 If an
Event of Default specified in Sections 5.1(6) or (7) occurs and is continuing, such principal or such lesser amount, as the case may be, together with accrued interest and all other amounts owing hereunder, on the Debt Securities of that series
shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. 

At any time after such a declaration of acceleration has been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee for the Debt Securities of any series as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Debt Securities of that series, by written notice to the Company and such
Trustee, may rescind and annul such declaration and its consequences if: 
 (1) the Company has paid or deposited with such
Trustee a sum sufficient to pay 
 (A) all overdue interest on all Debt Securities of that series; 

(B) the principal of (and premium, if any, on) any Debt Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon from the date such principal became due at a rate per annum equal to the rate borne by the Debt Securities of such series (or, in the case of Discounted Debt Securities, the Debt Securities’
Yield to Maturity), to the extent that the payment of such interest shall be legally enforceable; 
 (C) to the extent that
payment of such interest is lawful, interest upon overdue interest at a rate per annum equal to the rate borne by the Debt Securities of such series (or, in the case of Discounted Debt Securities, the Debt Securities’ Yield to Maturity);

 (D) all sums paid or advanced by such Trustee hereunder and the reasonable compensation, expenses, disbursements and advances
of such Trustee, its agents and counsel and all other amounts due to such Trustee under; and 
 (2) all Events of Default with
respect to the Debt Securities of such series, other than the nonpayment of the principal of Debt Securities of that series which has become due solely by such acceleration, have been cured or waived as provided in Section 5.13. No such
rescission shall affect any subsequent default or impair any right consequent thereon.” 

Section 1.13 Acceptance of Appointment by Successor. Paragraph (a) of Section 6.11 of
the Indenture is hereby amended and restated to read in its entirety as follows: 
 “SECTION 6.11 Acceptance of
Appointment by Successor. 
 (a) Every such successor Trustee appointed hereunder with respect to the Debt Securities of any
series shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee
without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of 

  

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the Company or the successor Trustee, such retiring Trustee shall, upon payment of its reasonable charges, execute and deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject to the lien provided for in Section 6.7.” 

Section 1.14 Supplemental Indentures With Consent of Holders. Section 9.2 of the Indenture is
hereby amended and restated to read in its entirety as follows: 
 “SECTION 9.2 Supplemental Indentures With Consent of
Holders. The Company, when authorized by a Board Resolution, and the Trustee for the Debt Securities of any or all series may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of such Debt Securities under this Indenture, but only with the consent of the Holders of more than 50% in aggregate principal
amount of the Outstanding Debt Securities of each series of Debt Securities then Outstanding affected thereby, in each case by Act of said Holders of Debt Securities of each such series delivered to the Company and the Trustee for Debt Securities of
each such series; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Debt Security affected thereby: 
 (1) change the Stated Maturity of the principal of, or any installment of principal of or interest or premium, if any, on, any Debt Security, or reduce the principal amount thereof or the rate of interest
thereon, if any, or any premium or other amounts payable upon the redemption thereof, or reduce the amount of the principal of a Discounted Debt Security that would be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 5.2, or change the Place of Payment, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date); or

 (2) reduce the percentage in principal amount of the Outstanding Debt Securities of any particular series, the consent of
whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in
this Indenture; or 
 (3) modify any of the provisions of this Section or Section 5.13 or 10.7, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Debt Security affected thereby; provided, however, that this clause shall not be deemed to require the
consent of any Holder of a Debt Security with respect to changes in the references to “the Trustee” and concomitant changes in this Section and Section 10.7, or the deletion of this proviso, in accordance with the requirements of
Section 6.9, 6.11(b) and 9.1(6); or 
 (4) change the Redemption Price; or 

(5) change the date prior to which no redemption may be made; or 

(6) make the principal of, or premium, if any, or interest on, any Debt Security payable in anything other than United States Dollars.

 A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly
been included solely for the benefit of one or more particular series of Debt Securities, or which modifies the rights of the Holders of Debt Securities of such series with respect 

  

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to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Debt Securities of any other series. 

It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance thereof. “ 

Section 1.15 Maintenance of Properties. Section 10.5 of the Indenture is hereby amended and
restated to read in its entirety as follows: 
 “SECTION 10.5 Maintenance of Properties. The Company shall cause all
its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the reasonable judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the operation and maintenance of any of its properties if such discontinuance is, in the reasonable judgment of the Company desirable in the conduct of its business and not
disadvantageous in any material respect to the Holders.” 
 Section 1.16 Corporate
Existence. Section 10.6 of the Indenture is hereby amended and restated to read in its entirety as follows: 

“SECTION 10.6 Corporate Existence. Subject to Article 8, the Company shall do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any right or franchise if the Board of Directors shall reasonably
determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Holders; and provided, further, however, that the foregoing
shall not prohibit a sale, transfer or conveyance of a Subsidiary or any of its assets in compliance with the terms of this Indenture.” 
 Section 1.17 Limitations on Liens. The following provisions shall be applicable with respect to the Senior Notes: 

Limitation on Liens. The Issuer and its Restricted Subsidiaries shall not issue, assume, incur, suffer to exist or guarantee any
indebtedness for borrowed money secured by a mortgage, pledge, lien or other encumbrance, directly or indirectly, upon any shares of the Voting Stock of a Restricted Subsidiary which shares are owned by the Issuer or its Restricted Subsidiaries
without effectively providing that the Senior Notes shall be secured equally and ratably with, or prior to, any such secured indebtedness so long as such indebtedness remains outstanding. This paragraph shall not apply to a mortgage, pledge, lien or
other encumbrance on shares of Voting Stock of any Person existing at the time such Person becomes a Restricted Subsidiary and any extensions, renewals or replacements thereof. 

“Consolidated Total Assets” means as of any date of determination, the amount of total assets shown on the consolidated balance
sheet of the Issuer and its consolidated subsidiaries contained in the most recent annual or quarterly report filed with the Commission, or if the Issuer is not then subject to the Securities Exchange Act of 1934, the most recent annual or quarterly
report to shareholders and, in respect of any Subsidiary as of any date of determination, the amount of total assets of such Subsidiary and its consolidated subsidiaries shown on the consolidated balance sheet of such Subsidiary from which such
consolidated balance sheet of the Issuer and its consolidated Subsidiaries was derived. 

  

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 “Restricted Subsidiaries” means (1) Great American Life Insurance Company
and Great American Insurance Company; (2) any other present or future subsidiary of the Issuer, the Consolidated Total Assets of which constitute at least 20% of the Issuer’s Consolidated Total Assets; and (3) any Person which is a
successor, by merger or otherwise, to substantially all the business or properties of any such subsidiary referred to or described in the foregoing clauses (1) and (2). 
 “Voting Stock” means shares of any class or classes having general voting power under ordinary circumstances to elect a majority of the board of directors, managers or trustees of the
corporation in question, provided that, for the purposes hereof, shares which carry only the right to vote conditionally on the happening of an event shall not be considered voting shares whether or not such event shall have happened. 

Section 1.18 Debt Securities Redeemed in Part. Section 11.7 of the Indenture is hereby
amended and restated to read in its entirety as follows: 
 “SECTION 11.7 Debt Securities Redeemed in Part. Any Debt
Security which is to be redeemed only in part shall be surrendered at the Place of Payment (with, if the Company or the Trustee for such Debt Security so requires, due endorsement by, or a written instrument of transfer in form reasonably
satisfactory to the Company and the Debt Security Registrar for such Debt Security duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute and such Trustee shall authenticate and deliver to the
Holder of such Debt Security without service charge, a new Debt Security or Debt Securities, of any authorized denomination as requested by such Holder, of the same series and having the same terms and provisions and in an aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the Debt Security so surrendered.” 
 
ARTICLE II 
 MISCELLANEOUS PROVISIONS 
 Section 2.01 Recitals by Company. The recitals in this Fifth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions
contained in the Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Senior Notes and of this Fifth Supplemental Indenture as fully and with like effect as if set forth
herein in full. 
 Section 2.02 Ratification and Incorporation of Indenture; Application of
Fifth Supplemental Indenture to other Series of Debt Securities. As supplemented hereby, the Indenture is in all respects ratified and confirmed, solely with respect to the Senior Notes, and the Indenture and this Fifth Supplemental Indenture,
solely with respect to the Senior Notes shall be read, taken and construed as one and the same instrument. This Fifth Supplemental Indenture shall not apply to any series of Debt Securities outstanding on the date hereof or established in the future
under the Indenture unless expressly provided in the Board Resolution, supplemental indenture or other documentation, as provided in the Indenture, establishing such series of Debt Securities. 

Section 2.03 Executed in Counterparts. This Fifth Supplemental Indenture may be simultaneously
executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

  

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 IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name
and behalf by its duly authorized officers, all as of the day and year first above written by its duly authorized officers, all as of the day and year first above written. 

 

			
	AMERICAN FINANCIAL GROUP, INC.
		
	By:	 	/s/ Karl J. Grafe
		 	Karl J. Grafe
		 	Vice President

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as Trustee

		
	By:	 	/s/ William E. Sicking
		 	 William E. Sicking
 Vice
President and Trust Officer

  

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 EXHIBIT A 
 FORM OF SENIOR NOTE 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A U.S. DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE U.S. DEPOSITARY TO A NOMINEE OF THE U.S. DEPOSITARY, OR BY A NOMINEE OF THE U.S. DEPOSITARY TO THE U.S. DEPOSITARY OR ANOTHER NOMINEE OF THE U.S. DEPOSITARY, OR BY THE U.S. DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR U.S. DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR U.S. DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW)
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	 No. R-1

CUSIP No. 025932401

ISIN No. US0259324012
	  	8,000,000 Senior Notes

 American Financial Group, Inc. 
 6-3/8% Senior Notes Due June 12, 2042 
 Principal Amount Per Senior Note:
$25.00 
 American Financial Group, Inc., an Ohio corporation (hereinafter called the “Company”, which term includes
any successor corporation under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal amount of each Senior Note evidenced hereby (Two Hundred Million Dollars
($200,000,000) in the aggregate) on June 12, 2042, and to pay interest thereon from June 12, 2012 or from the most recent date to which interest has been paid or duly provided for, quarterly on
March 12, June 12, September 12 and December 12 in each year (each, an “Interest Payment Date”), commencing September 12, 2012, at the rate of 6-3/8% per annum, until the principal amount of each
Senior Note evidenced hereby is paid or duly made available for payment. Interest on the Senior Notes shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest so payable and punctually paid or duly provided
for on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this certificate is registered at the close of business on the Regular Record Date for such interest, which shall be the
February 27, May 27, August 27 and November 27 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date shall forthwith cease to be payable to the registered Holder hereof on the relevant Regular Record Date by virtue of having been such Holder, and may be paid to the Person in

  
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whose name this certificate is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
each Person in whose name a certificate evidencing Senior Notes (defined below) is registered not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Senior Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in such Indenture. 
 Payment of the principal of and the interest on the Senior Notes evidenced hereby will be made at the office or agency of the Company maintained for that purpose in the Place of Payment, in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at the option of the Company, interest may be paid by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register; provided, further, that payment to The Depository Trust Company (“DTC”) or any successor depositary may be made by wire transfer to the account designated by DTC or
such successor depositary in writing. 
 This certificate evidences part of a duly authorized issue of unsecured and
unsubordinated indebtedness of the Company (the “Debt Securities”) issued and to be issued in one or more series under an Indenture dated as of November 12, 1997 (herein called, together with all indentures supplemental thereto, the
“Indenture”) between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders of the Debt Securities, and of the terms upon which the Debt
Securities are, and are to be, authenticated and delivered. This certificate evidences Debt Securities of the series designated on the face hereof (each, a “Senior Note”), limited to $200,000,000; provided, that the aggregate principal
amount of the Senior Notes may be increased in the future, without the consent of the Holders of the Senior Notes, on the same terms and with the same CUSIP number as the Senior Notes, provided that such further Senior Notes are fungible for U.S.
federal income tax purposes with such previously issued Senior Notes. 
 The Senior Notes may not be redeemed prior to
June 12, 2017. On or after June 12, 2017, the Company, at its option, may redeem the Senior Notes, in whole at any time or in part from time to time, at 100% of their principal amount, plus accrued interest to, but excluding, the date of
redemption. 
 Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to
each Person in whose name a certificate evidencing Senior Notes to be redeemed is registered at its registered address. Unless the Company defaults in payment of the redemption price, on and after the redemption date interest will cease to accrue on
such Senior Notes called for redemption. 
 Except as provided above, the Senior Notes are not redeemable by the Company prior
to maturity and are not subject to any sinking fund. If an Event of Default with respect to the Senior Notes shall occur and be continuing, the principal amount of the Senior Notes shall be immediately, or may be declared, as appropriate, due and
payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series issued under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Securities of any series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their 

  
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consequences. Any such consent or waiver by the Holder of this certificate shall be conclusive and binding upon such Holder and upon all future Holders of this certificate and of any Senior Notes
evidenced by a certificate issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this certificate. 

No reference herein to the Indenture and no provision of this certificate or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and interest on the Senior Notes evidenced by this certificate, at the times, place and rate, and in the coin or currency, herein and in the Indenture prescribed. 

As provided in the Indenture and subject to certain limitations set forth therein and in this certificate, the transfer of the Senior
Notes evidenced by this certificate may be registered on the Security Register upon surrender of this certificate for registration of transfer at the office or agency of the Company maintained for the purpose in any place where the principal of and
interest on the Senior Notes are payable, duly endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or by his attorney duly
authorized in writing, and thereupon one or more new certificates evidencing Senior Notes of authorized denominations, and of a like series and aggregate principal amount, and with like terms and conditions will be issued to the designated
transferee or transferees. 
 The Senior Notes are issuable only in registered form without coupons in denominations of $25.00,
or any integral multiple of $25.00 in excess thereof, all as more fully provided in the Indenture. As provided in the Indenture, and subject to certain limitations set forth in the Indenture, and in this certificate, this certificate is exchangeable
for a like aggregate principal amount of Senior Notes of this series in different authorized denominations, as requested by the Holders surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith, other than in certain cases provided in the Indenture. 
 Prior to due presentment of this certificate 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 certificate is registered as the owner of the Senior Notes evidenced hereby for all the purpose of receiving
payment of principal of and (subject to Section 3.7 of the Indenture) interest, if any, on these Senior Note and for all purposes whatsoever, whether or not such Senior Notes be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary. 
 This certificate shall be governed by and construed in accordance with the laws
of the State of New York without regard to the conflicts of laws rules of such state. 
 All terms used in this certificate
which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 Unless the certificate of
authentication hereon has been executed by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this certificate shall not be entitled to any benefits under the Indenture or be valid or
obligatory for any purpose. 

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

			
	AMERICAN FINANCIAL GROUP, INC.
		
	By:	 	 
		 	Keith A. Jensen
		 	Senior Vice President

  

			
		
	Attest:	 	 
		 	Karl J. Grafe
		 	Vice President and Secretary

  
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 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Debt Securities of the series designated herein described in the within-mentioned Indenture. 

Dated: June 12, 2012 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as Trustee

		
	By:	 	 
		 	Authorized Officer

 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 TEN - as joint tenants with right of survivorship and not as tenants in common
	  	 UNIF GIFT MIN ACT -           
Custodian           

                   
                        (Cust)               
(Minor)
 Under Uniform Gifts to Minors Act
                

                   
                                         
   (State)

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

FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s), assign(s) 
 and transfer(s) unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE                                       
   
  
  

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE 

 
 the Senior Notes evidenced by the within
certificate and all rights thereunder, hereby irrevocably constituting and
appointing                                       
   to transfer said Senior Notes on the books of the Company with full power of substitution in the premises. 
 Dated:
                                         
                                         
                                       

 

	Notice:	The signature to this assignment must correspond with the name as it appears upon the face of the within certificate in every particular, without alteration or
enlargement or any change whatever. 

  
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 EXHIBIT B 
 CERTIFICATE OF AUTHENTICATION 
 This is one of the Debt Securities, of the series
designated herein, described in the within-mentioned Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as Trustee

		
	By:	 	 
		 	Authorized Officer

  
 B-1

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