Document:

Form of Bank of America Corporation Subordinated InterNote

 EXHIBIT 4.7 
 BANK OF AMERICA CORPORATION 
 Subordinated InterNotes® 
 MASTER REGISTERED GLOBAL SUBORDINATED NOTE 
 This Note is a Global Note
within the meaning of the Amended and Restated Indenture dated as of July 1, 2001, as it may be amended or supplemented from time to time (the “Indenture”), between Bank of America Corporation and The Bank of New York Mellon Trust
Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as successor trustee (the “Trustee”) under the Indenture and is registered in the name of Cede & Co., as the nominee of The Depository Trust Company (55 Water
Street, New York, New York) (“DTC”). This Note is not exchangeable for definitive or other Notes registered in the name of a person other than DTC or its nominee, except in the limited circumstances described in the Indenture or in this
Note, and no transfer of this Note (other than a transfer as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of DTC or by DTC or any such nominee to a successor depository or a nominee of such successor
depository) may be registered except in the limited circumstances described in the Indenture. 
 Unless this Note is presented
by an authorized representative of DTC to Bank of America Corporation or its agent for registration of transfer, exchange or payment, and this Note is registered in the name of CEDE & CO., or such other name as requested by an authorized
representative of DTC, and unless any payment is made to CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, since the registered owner hereof, CEDE & CO., has an interest
herein. 
 THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
ANY OTHER GOVERNMENTAL AGENCY AND IS NOT AN OBLIGATION OF OR GUARANTEED BY BANK OF AMERICA, N.A. OR ANY OTHER BANKING OR NONBANKING AFFILIATE OF BANK OF AMERICA CORPORATION. 

THE INDEBTEDNESS OF BANK OF AMERICA CORPORATION EVIDENCED BY THIS NOTE, INCLUDING THE PRINCIPAL AND INTEREST THEREON, IS, TO THE
EXTENT AND IN THE MANNER SET FORTH IN THE INDENTURE, SUBORDINATE AND JUNIOR IN RIGHT OF PAYMENT TO BANK OF AMERICA CORPORATION’S OBLIGATIONS TO HOLDERS OF SENIOR INDEBTEDNESS, AS DEFINED IN THE INDENTURE, AND EACH HOLDER OF THIS NOTE, BY THE
ACCEPTANCE HEREOF, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS OF THE INDENTURE. 
  

 

  
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 This Note represents one or more obligations of Bank of America
Corporation, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which term includes any successor Person under the Indenture), which may be issued by the Company from time
to time in one or more offerings up to the aggregate principal amount of senior and subordinated retail medium-term notes (the “InterNotes®”) authorized by the Company’s board of directors, or a duly authorized committee thereof or appointed thereby, to be issued (each such obligation, a
“Supplemental Obligation”). The terms of each Supplemental Obligation are and will be reflected in this Note and in a prospectus supplement and/or pricing supplement to the Company’s prospectus, dated July 15, 2011, relating to
such Supplemental Obligation, which prospectus and supplement(s) are or will be on file with the Trustee, and which supplement(s) is (are) identified on Schedule 1 hereto (each such prospectus supplement and pricing supplement, if any,
together with such prospectus, a “Pricing Supplement”). With respect to each Supplemental Obligation, the provisions of the applicable Pricing Supplement hereby are incorporated by reference herein and are deemed to be a part of this Note
as of the Original Issue Date specified on Schedule 1. Each reference to “this Note” includes and shall be deemed to refer to each Supplemental Obligation. 
 With respect to each Supplemental Obligation, every term of this Note is subject to modification, amendment or elimination through the incorporation by reference of the applicable Pricing Supplement,
whether or not the phrase “unless otherwise provided in the Pricing Supplement” or language of similar import precedes the term of this Note so modified, amended or eliminated. It is the intent of the parties hereto that, in the case of
any conflict between the terms of a Pricing Supplement and the terms herein, the terms of the Pricing Supplement shall control over the terms herein with respect to the relevant Supplemental Obligation. Without limiting the foregoing, in the case of
each Supplemental Obligation, holders of beneficial interests in this Note are directed to the applicable Pricing Supplement for a description of certain terms of such Supplemental Obligation, including, as applicable, the manner of determining the
principal amount of and interest, if any, on such Supplemental Obligation, the dates, if any, on which the principal amount of and interest, if any, on such Supplemental Obligation is determined and payable, the amount payable upon any acceleration
of such Supplemental Obligation and the principal amount of such Supplemental Obligation deemed to be Outstanding (as defined in the Indenture) for purposes of determining whether holders of the requisite principal amount of Notes have made or given
any request, demand, authorization, direction, notice, consent, waiver or other action under the Indenture. 
 This Note is a
“Master Note,” which term means a Global Note that provides for incorporation therein of the terms of Supplemental Obligations by reference to the applicable Pricing Supplements, substantially as contemplated herein. 

 
  

The Company, for value received, hereby promises to pay to CEDE & CO., as nominee for DTC, or its registered assigns, the
principal amount specified in the applicable Pricing Supplement, as adjusted in accordance with Schedule 1 hereto, on the Maturity Date specified in 

  
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the applicable Pricing Supplement (except to the extent redeemed or repaid prior to the Maturity Date), and to pay interest thereon (i) in accordance with the provisions set forth on the
reverse hereof in Section 2(a), if the InterNotes® are Fixed Rate Notes (as defined on the reverse hereof),
(ii) in accordance with the provisions set forth on the reverse hereof under the Section 2(b), if the
InterNotes® are Floating Rate Notes (as defined on the reverse hereof), or (iii) in accordance with the
provisions set forth in the applicable Pricing Supplement, if the InterNotes® are Indexed Notes (as defined on
the reverse hereof). “Maturity,” when used herein, means the date on which the principal of the applicable series of InterNotes®, or an installment of principal thereon, becomes due and payable in full in accordance with the terms of this Note and the Indenture, whether at the Maturity Date or
by declaration of acceleration, call for redemption, prepayment at the holder’s option or otherwise. 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will be paid to the
person in whose name this Note (or one or more predecessor Notes evidencing all or a portion of the same debt as this Note) is registered, unless otherwise specified in the applicable Pricing Supplement, at the close of business on the first day of
the calendar month in which such Interest Payment Date occurs, whether or not such day is a Business Day (referred to herein as the “Regular Record Date”), except that the Regular Record Date for the final payment of interest shall be the
final Interest Payment Date; provided, however, that the first payment of interest on any series of
InterNotes® with an Original Issue Date between a Regular Record Date and an Interest Payment Date or on an
Interest Payment Date will be made on the Interest Payment Date following the next Regular Record Date to the person in whose name this Note is registered at the close of business on such next Regular Record Date; and provided,
further, that interest payable on the Maturity Date, on a date of redemption or repayment or in connection with the exercise of the Survivor’s Option (as described on the reverse hereof) will be payable to the person to whom the
principal hereof shall be payable. The principal so payable, and punctually paid or duly provided for, at Maturity will be paid to the person in whose name this Note is registered at the time of payment by the Trustee. Any such interest or principal
not punctually paid or duly provided for shall be payable as provided in this Note and in the Indenture. 
 Payment of principal
of, and premium, if any, and interest on, this Note due at Maturity will be made in immediately available funds upon presentation and surrender of this Note at the office of the Trustee maintained for that purpose, and in accordance with the
procedures of DTC or any successor depository; provided, that this Note is presented to the Trustee in time for the Trustee to make such payment in accordance with its normal procedures. Payments of interest on this Note (other than at
Maturity) will be made by wire transfer to such account as has been appropriately designated to the Trustee by the person entitled to such payments. 
 The Company will pay any administrative costs imposed by any bank in making payments in immediately available funds, but any tax, assessment or governmental charge imposed upon payments hereunder,
including, without limitation, any withholding tax, will be borne by the holder hereof. 
 Reference is made to the further
provisions of this Note set forth on the reverse hereof and in the applicable Pricing Supplement, which provisions shall have the same effect as though 

  
 3 

 
fully set forth herein. In the event of any conflict between the provisions contained herein or on the reverse hereof and the provisions contained in the applicable Pricing Supplement, the latter
shall control. References herein to “this Note,” “hereof,” “herein” and comparable terms shall include the applicable Pricing Supplement. 
 Unless the certificate of authentication hereon has been executed by the Trustee (or other authentication agent duly appointed in accordance with the Indenture), by manual signature of an authorized
signatory, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Remainder of page intentionally left blank.] 

  
 4 

 IN WITNESS WHEREOF, Bank of America Corporation has caused this instrument to be duly
executed on its behalf, by manual or facsimile signature. 
  

							
	Dated:             , 2011	 	BANK OF AMERICA CORPORATION
				
		 		 	By:	 	  

		 		 	Name:	 	  

		 		 	Title:	 	  

 CORPORATE SEAL 
  

			
	ATTEST:
		
	By:	 	  

	Title:	 	Assistant Secretary

  
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 CERTIFICATE OF AUTHENTICATION 

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

 

							
	Dated:             , 2011	 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
				
		 		 	By:	 	  

		 		 		 	Authorized Signatory

  
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 [Reverse of Note] 

BANK OF AMERICA CORPORATION 
 Subordinated InterNotes® 

MASTER REGISTERED GLOBAL SUBORDINATED NOTE 

SECTION 1. General. This Note represents the Company’s duly authorized subordinated notes to be issued in
one or more series under the Indenture and to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company and the Trustee thereunder and the holders of the
Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The term Trustee shall include any additional or successor trustee appointed in such capacity by the Company in accordance with the terms of the
Indenture. Each series of InterNotes® (each, a “Series”) also will be issued pursuant to the
Prospectus dated July 15, 2011 (the “Prospectus”) and may have different issue and Maturity Dates, bear interest at different rates and vary in such other ways as provided in the Indenture and described in the Prospectus. The specific
terms of each issuance of InterNotes® will be described in a Pricing Supplement. 

The Company initially has appointed the Trustee to act as the Paying Agent, Note Registrar and transfer agent for the
InterNotes®. This Note may be presented or surrendered for payment, and notices, designations or requests in
respect of payments with respect to this Note may be served, at the corporate trust office of the Trustee, located at 10161 Centurion Parkway, Jacksonville, Florida 32256, or such other locations as may be specified by the Trustee and notified to
the Company and the registered holder of this Note. 
 Unless specified otherwise in the applicable Pricing
Supplement, the InterNotes® will not be subject to a sinking fund. 

SECTION 2. Interest Provisions. 
 (a) Fixed Rate Notes. If a Series of InterNotes® bears
interest at a fixed rate (the “Fixed Rate Notes”), the Company will pay interest on the principal amount specified in the applicable Pricing Supplement (as adjusted in accordance with Schedule 1 hereto) on each Interest Payment Date
specified in such Pricing Supplement and at Maturity, commencing on the first Interest Payment Date following the Original Issue Date specified in the applicable Pricing Supplement, except as provided on the face hereof, until payment of such
principal sum has been made or duly provided for. 
 Payments of interest will include interest accrued from, and including, the
most recent Interest Payment Date to which interest on the Series of Fixed Rate Notes has been paid or duly provided for (or, unless otherwise specified in the applicable Pricing Supplement, if no interest has been paid or duly provided for, from,
and including, the Original Issue Date specified in the applicable Pricing Supplement) to, but excluding, the relevant Interest Payment Date or Maturity Date for such Series of Fixed Rate Notes, as the case may be. 

  
 7 

 Unless otherwise specified in the applicable Pricing Supplement, if a
Series of Fixed Rate Notes has an original maturity of less than one year, interest (including payments for partial periods) will be computed and paid on the basis of the actual number of days elapsed divided by 360. Unless otherwise specified in
the applicable Pricing Supplement, if a Series of Fixed Rate Notes has an original maturity of one year or more, interest (including payments for partial periods) will be computed on the basis of a 360-day year of twelve 30-day months. 

Unless otherwise specified in the applicable Pricing Supplement, if any Interest Payment Date or the Maturity Date of a Series of Fixed
Rate Notes falls on a day that is not a Business Day, the related payment of principal, premium, if any, or interest on that Series will be made on the next succeeding Business Day with the same force and effect as if made on the date such payments
were due, and no additional interest will accrue in respect of the amount so payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be. 

(b) Floating Rate Notes. If a Series of InterNotes® bears interest at a floating rate (the “Floating Rate Notes”), the Company will pay interest on the principal amount specified in the applicable Pricing
Supplement (as adjusted in accordance with Schedule 1 hereto) on each Interest Payment Date specified in the applicable Pricing Supplement and at Maturity, commencing on the first Interest Payment Date following the Original Issue Date
specified in the applicable Pricing Supplement, except as provided on the face hereof, at a rate per annum determined in accordance with the provisions hereof and the applicable Pricing Supplement, until payment of such principal sum has been made
or duly provided for. 
 Payments of interest hereon will include interest accrued from, and including, the most recent Interest
Payment Date to which interest on the Series of Floating Rate Notes has been paid or duly provided for (or, unless otherwise provided in the applicable Pricing Supplement, if no interest has been paid or duly provided for, from and including the
Original Issue Date) to, but excluding, the relevant Interest Payment Date or Maturity Date, as the case may be (each such period, an “Interest Period”). 

As set forth in the applicable Pricing Supplement, a Series of Floating Rate Notes may have either or both of the
following: (i) a maximum numerical interest rate limitation, or ceiling, on the rate at which interest may accrue during any Interest Period (“Maximum Interest Rate”); or (ii) a minimum numerical interest rate limitation, or
floor, on the rate at which interest may accrue during any Interest Period (“Minimum Interest Rate”); provided, however, that the interest rate on such Series of InterNotes® will in no event be higher than the maximum rate permitted by applicable law. 
 The Base Rate (as defined herein) with respect to a Series of Floating Rate Notes may be (i) the federal funds rate, (ii) the London interbank offered rate, or “LIBOR,” (iii) the
prime rate, (iv) the treasury rate or (v) such other rate as is described in the applicable Pricing Supplement. 

Except as described below, a Series of Floating Rate Notes will bear interest at the rate determined by reference to the appropriate
interest rate basis (the “Base Rate”) and Index Maturity, each as specified in the applicable Pricing Supplement, (i) plus or minus the Spread, if any, specified in the applicable Pricing Supplement and/or (ii) multiplied by the
Spread Multiplier, if any, specified in the applicable Pricing Supplement. The interest rate in effect 

  
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during an Interest Period will be the rate determined by the Calculation Agent specified in the applicable Pricing Supplement on the “calculation date” by reference to the Interest
Determination Date (as described below). 
 The “calculation date” pertaining to any Interest Determination Date will
be the date by which the Calculation Agent specified in the applicable Pricing Supplement computes the amount of interest owed on the relevant Series of Floating Rate Notes for the related Interest Period. Unless otherwise specified in the
applicable Pricing Supplement, the “calculation date” will be the earlier of (a) the tenth calendar day after the related Interest Determination Date or, if that date is not a Business Day, the next succeeding Business Day; or
(b) the Business Day immediately preceding the applicable Interest Payment Date or the Maturity Date or the date of redemption or the date of prepayment, as the case may be. 

The interest rate in effect on each day shall be (a) if such day is an Interest Reset Date, the interest rate determined as of the
Interest Determination Date pertaining to such Interest Reset Date or (b) if such day is not an Interest Reset Date, the interest rate determined as of the Interest Determination Date pertaining to the immediately preceding Interest Reset Date.
Unless otherwise specified herein or in the applicable Pricing Supplement, if any Interest Reset Date specified in the applicable Pricing Supplement (including the Initial Interest Reset Date, as specified in the applicable Pricing Supplement) falls
on a day that is not a Business Day, the Interest Reset Date will be postponed to the next day that is a Business Day, except that, unless otherwise specified in the applicable Pricing Supplement, in the case of a Series of Floating Rate Notes with
LIBOR as its Base Rate, if the next Business Day is in the next succeeding calendar month, the Interest Reset Date will be the immediately preceding Business Day. The Interest Reset Dates are subject to adjustment as described below. 

Unless otherwise specified in the applicable Pricing Supplement: (i) the “Interest Determination Date” with respect to any
Series of Floating Rate Notes that has the federal funds rate or the prime rate as its Base Rate will be the Business Day immediately preceding the related Interest Reset Date; (ii) the “Interest Determination Date” with respect to
any Series of Floating Rate Notes that has LIBOR as its Base Rate will be the second London Banking Day preceding the related Interest Reset Date; and (iii) the “Interest Determination Date” with respect to any Series of Floating Rate
Notes that has the treasury rate as its Base Rate will be the day of the week in which the related Interest Reset Date falls on which Treasury bills of the Index Maturity specified in the Pricing Supplement normally would be auctioned;
provided, however, that if an auction is held on the Friday of the week preceding the related Interest Reset Date, the related “Interest Determination Date” shall be such preceding Friday; and provided, further,
that if an auction is held on any Interest Reset Date then the Interest Reset Date shall instead be the first Business Day following such auction. 
 For a Series of Floating Rate Notes whose interest rate is determined by reference to two or more Base Rates, unless otherwise specified in the applicable Pricing Supplement, the “Interest
Determination Date” shall be the most recent Business Day that is at least two Business Days prior to the applicable Interest Reset Date for that Series of Floating Rate Notes on which each Base Rate is determinable. 

  
 9 

 Unless otherwise specified in the applicable Pricing Supplement, if any Interest Payment
Date falls on a day that is not a Business Day, the related payment of interest will be made on the next succeeding Business Day. However, unless otherwise specified in the applicable Pricing Supplement, if a Series of Floating Rate Notes has LIBOR
as its Base Rate, if an Interest Payment Date falls on a date that is not a Business Day, and the next Business Day is in the next calendar month, the Interest Payment Date will be the immediately preceding Business Day. In each such case, except
for the Interest Payment Date falling on the Maturity Date, the Interest Periods and the Interest Reset Dates will be adjusted accordingly to calculate the amount of interest payable on the Series of Floating Rate Notes. Unless otherwise specified
in the applicable Pricing Supplement, if the Maturity Date of a Series of Floating Rate Notes falls on a day that is not a Business Day, the related payment of principal of, or premium, if any, or interest on, that Series of Floating Rate Notes will
be made on the next succeeding Business Day with the same force and effect as if made on the date such payments were due, and no additional interest will accrue in respect of the amount so payable for the period from and after the Maturity Date.

 Accrued interest on a Series of Floating Rate Notes will be calculated by multiplying the principal amount of that Series by
an accrued interest factor. The accrued interest factor is the sum of the interest factors calculated for each day in the period for which accrued interest is being calculated. Unless otherwise indicated in the applicable Pricing Supplement, the
daily interest factor will be computed on the basis of a 360-day year of twelve 30-day months if the Day Count Convention specified in the applicable Pricing Supplement is “30/360” for the period specified thereunder, or on the basis of
the actual number of days in the Interest Period divided by 360 if the Day Count Convention specified in the applicable Pricing Supplement is “Actual/360” for the period specified thereunder, or on the basis of the actual number of days in
the Interest Period divided by 365, or in the case of an Interest Payment Date falling in a leap year, 366, if the Day Count Convention specified in the applicable Pricing Supplement is “Actual/Actual” for the period specified thereunder.
If no Day Count Convention is specified in the applicable Pricing Supplement, the daily interest factor will be computed and interest will be paid (including payments for partial periods) as follows: (i) for Floating Rate Notes that have the
federal funds rate, LIBOR, the prime rate or any other rate other than the treasury rate as a Base Rate, as if “Actual/360” had been specified in the applicable Pricing Supplement; and (ii) for Floating Rate Notes that have the
treasury rate as a Base Rate, as if “Actual/Actual” had been specified in the applicable Pricing Supplement. 
 All
amounts used in or resulting from any calculation on this Note will be rounded to the nearest cent, with one-half cent or one-half of a corresponding hundredth of a unit or more being rounded upward. Unless otherwise specified in the applicable
Pricing Supplement, all percentages resulting from any calculation are rounded to the nearest one hundred-thousandth of a percent, with five one-millionths of a percentage point rounded upward. For example, 9.876545% (or .09876545) will be rounded
to 9.87655% (or .0987655). 
 Notwithstanding the calculations determined as specified below, the interest rate hereon shall not
be greater than the Maximum Interest Rate, if any, or less than the Minimum Interest Rate, if any, specified in the applicable Pricing Supplement. 

  
 10 

 The Calculation Agent shall calculate the interest rate on the applicable Series of Floating
Rate Notes in accordance with the procedures described below on or before each calculation date. At the request of the registered holder hereof, the Calculation Agent will provide to such holder the interest rate a Series of Floating Rate Notes then
in effect and, if determined, the interest rate which will become effective as of the next Interest Reset Date. 

Determination of LIBOR. LIBOR for any Interest Determination Date will be the arithmetic mean of the offered rates for deposits in
the relevant Index Currency having the Index Maturity described in the applicable Pricing Supplement, commencing on the related Interest Reset Date, as the rates appear on the Reuters LIBOR screen page designated in the applicable Pricing Supplement
as of 11:00 A.M., London time, on that Interest Determination Date, if at least two offered rates appear on the designated LIBOR page, except that, if the designated LIBOR Reuters page only provides for a single rate, that single rate will be used.

 If fewer than two of the rates described above appears on that page or no rate appears on any page on which only one rate
normally appears, then the Calculation Agent will determine LIBOR as follows: 
  

	 	•	 	 The Calculation Agent will select four major banks in the London interbank market, after consultation with the Company. On the Interest Determination
Date, those four banks will be requested to provide their offered quotations for deposits in the relevant Index Currency having an Index Maturity specified in the applicable Pricing Supplement commencing on the Interest Reset Date to prime banks in
the London interbank market at approximately 11:00 A.M., London time. 

  

	 	•	 	 If at least two quotations are provided, the Calculation Agent will determine LIBOR as the arithmetic mean of those quotations.

  

	 	•	 	 If fewer than two quotations are provided, the Calculation Agent will select, after consultation with the Company, three major banks in New York City.
On the Interest Determination Date, those three banks will be requested to provide their offered quotations for loans in the relevant Index Currency having an Index Maturity specified in the applicable Pricing Supplement commencing on the Interest
Reset Date to leading European banks at approximately 11:00 A.M., New York time. The Calculation Agent will determine LIBOR as the average of those quotations. 

 

	 	•	 	 If fewer than three New York City banks selected by the Calculation Agent are quoting rates, LIBOR for that interest period will remain LIBOR then in
effect on the Interest Determination Date. 

 Determination of Treasury Rate. The “treasury
rate” for any Interest Determination Date is the rate set at the auction of direct obligations of the United States (“Treasury bills”) having the Index Maturity described in the applicable Pricing Supplement, as specified under
the caption “Investment Rate” on the display on Reuters, or any successor service, on page USAUCTION 10 or USAUCTION 11 or any other page as may replace such page. 

  
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 The following procedures will be followed if the treasury rate cannot be determined as
described above: 
  

	 	•	 	 If the rate is not displayed on Reuters on page USAUCTION 10 or USAUCTION 11 or any other page as may replace such page by 3:00 P.M., New York City
time, on the related calculation date, the treasury rate will be the rate of Treasury bills as published in H.15 Daily Update, or another recognized electronic source for the purpose of displaying the applicable rate, under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market.” 

  

	 	•	 	 If the alternative rate described in the paragraph immediately above is not published by 3:00 P.M., New York City time, on the related calculation
date, the treasury rate will be the bond equivalent yield, as defined below, of the auction rate of the applicable Treasury bills as announced by the U.S. Department of the Treasury. 

 

	 	•	 	 If the alternative rate described in the paragraph immediately above is not announced by the U.S. Department of the Treasury, or if the auction is not
held, the treasury rate will be the bond equivalent yield of the rate on the particular Interest Determination Date of the applicable Treasury bills as published in H.15(519) under the caption “U.S. Government Securities/Treasury
Bills/Secondary Market.” 

  

	 	•	 	 If the alternative rate described in the paragraph immediately above is not published by 3:00 P.M., New York City time, on the related calculation
date, the treasury rate will be the rate on the particular Interest Determination Date of the applicable Treasury bills as published in H.15 Daily Update, or another recognized electronic source used for the purpose of displaying the applicable
rate, under the caption “U.S. Government Securities/Treasury Bills/Secondary Market.” 

  

	 	•	 	 If the alternative rate described in the paragraph immediately above is not published by 3:00 P.M., New York City time, on the related calculation
date, the treasury rate will be the rate on the particular Interest Determination Date calculated by the Calculation Agent as the bond equivalent yield of the arithmetic mean of the secondary market bid rates, as of approximately 3:30 P.M., New York
City time, on that Interest Determination Date, of three primary U.S. government securities dealers, selected by the Calculation Agent, after consultation with the Company, for the issue of Treasury bills with a remaining maturity closest to the
particular Index Maturity. 

  

	 	•	 	 If the dealers selected by the Calculation Agent are not quoting as described in the paragraph immediately above, the treasury rate will be the
treasury rate in effect on the particular Interest Determination Date. 

 The bond equivalent will be
calculated using the following formula: 
  

					
	Bond Equivalent Yield =	 	 D x N
	  	x 100
	 	360 – (D x M)	  

 where “D” refers to the applicable annual rate for Treasury bills quoted on a bank discount basis and expressed
as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in the applicable interest period. 
 “H.15(519)” means the weekly statistical release designated as H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System. 

  
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 “H.15 Daily Update” means the daily update of H.15(519), available through
the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov/releases/h15/update, or any successor site or publication. 
 Determination of Federal Funds Rate. The “federal funds rate” for any Interest Determination Date will be as follows: 

 

	 	•	 	 if “Federal Funds (Effective) Rate” is specified in the applicable Pricing Supplement, the federal funds rate will be the rate on that
Interest Determination Date for U.S. dollar federal funds, as published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Reuters, or any successor service, on page FEDFUNDS1 or any other page as may replace the
specified page on that service (“Reuters Page FEDFUNDS1”), or if such rate is not published in H.15(519) by 3:00 P.M., New York City time, on the related calculation date or does not appear on Reuters Page FEDFUNDS1, the federal
funds rate will be the rate on that Interest Determination Date, as published in H.15 Daily Update, or any other recognized electronic source for the purposes of displaying the applicable rate, under the caption “Federal Funds
(Effective).” If the alternate rate described in the preceding sentence is not published in H.15 Daily Update, or other recognized electronic source for the purpose of displaying the applicable rate, by 3:00 P.M., New York City time, on the
related calculation date, then the Calculation Agent will determine the federal funds rate to be the average of the rates for the last transaction in overnight U.S. dollar federal funds, quoted prior to 9:00 A.M., New York City time, on the business
day following that Interest Determination Date, by each of three leading brokers of U.S. dollar federal funds transactions in New York City, selected by the Calculation Agent, after consultation with the Company; provided, however, if
fewer than three brokers selected by the Calculation Agent are quoting as described above, the federal funds rate will be the federal funds rate then in effect on that Interest Determination Date. 

 

	 	•	 	 if “Federal Funds Open Rate” is specified in the applicable Pricing Supplement, the federal funds rate will be the rate on that
Interest Determination Date for U.S. dollar federal funds transactions among member of the U.S. Federal Reserve System arranged by federal funds brokers on such day, under the heading “Federal Funds” for the applicable Index Maturity and
opposite the caption “Open” and displayed on Reuters, or any successor service, on page 5 or any other page as may replace the specified page on that service (“Reuters Page 5”), or if such rate does not appear on Reuters
Page 5 by 3:00 P.M., New York City time, on the related calculation date, the federal funds rate will be the rate on that Interest Determination Date displayed on FFPREBON Index page on Bloomberg L.P. (“Bloomberg”), which is the Fed
Funds Opening Rate as reported by Prebon Yamane (or a successor) on Bloomberg. If the alternate rate described in the preceding sentence is not displayed on FFPREBON Index page on Bloomberg, or any other recognized electronic source for the purpose
of displaying the applicable rate, by 3:00 P.M., New York City time, on the related calculation date, then the Calculation Agent will determine the federal funds rate to be the average of the rates for the last transaction in overnight U.S. dollar
federal 

  
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funds, quoted prior to 9:00 A.M., New York City time, on that Interest Determination Date, by each of three leading brokers of U.S. dollar federal funds transactions in New York City, selected by
the Calculation Agent, after consultation with the Company; provided, however, if fewer than three brokers selected by the Calculation Agent are quoting as described above, the federal funds rate will be the federal funds rate then in
effect on that Interest Determination Date. 

  

	 	•	 	 if “Federal Funds Target Rate” is specified in the applicable Pricing Supplement, the federal funds rate will be the rate on that
Interest Determination Date for U.S. dollar federal funds displayed on the FDTR Index page on Bloomberg. If such rate does not appear on the FDTR Index page on Bloomberg by 3:00 P.M., New York City time, on the calculation date, the federal funds
rate for such Interest Determination Date will be the rate for that day appearing on Reuters, or any successor service, on page USFFTARGET= or any other page as may replace the specified page on that service (“Reuters Page
USFFTARGET=”). If such rate does not appear on the FDTR Index page on Bloomberg or is not displayed on Reuters Page USFFTARGET= by 3:00 P.M., New York City time, on the related calculation date, then the Calculation Agent will determine the
federal funds rate to be the average of the rates for the last transaction in overnight U.S. dollar federal funds, quoted prior to 9:00 A.M., New York City time, on that Interest Determination Date, by each of three leading brokers of U.S. dollar
federal funds transactions in New York City, selected by the Calculation Agent, after consultation with the Company; provided, however, if fewer than three brokers selected by the Calculation Agent are quoting as described above, the
federal funds rate will be the federal funds rate then in effect on that Interest Determination Date. 

Determination of Prime Rate. The “prime rate” for any Interest Determination Date is the prime rate or base lending rate
on that date, as published in H.15(519) prior to 3:00 P.M., New York City time, on the related calculation date, under the caption “Bank Prime Loan.” 
 The following procedures will be followed if the prime rate cannot be determined as described above: 
  

	 	•	 	 If the rate is not published in H.15(519) by 3:00 P.M., New York City time, on the related calculation date, then the prime rate will be the rate as
published in H.15 Daily Update, or any other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “Bank Prime Loan.” 

 

	 	•	 	 If the alternative rate described above is not published in H.15 Daily Update or another recognized electronic source by 3:00 P.M., New York City time,
on the related calculation date, then the Calculation Agent will determine the prime rate to be the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters screen US PRIME 1, as defined below, as that
bank’s prime rate or base lending rate as in effect as of 11:00 A.M., New York City time, on that Interest Determination Date. 

  

	 	•	 	 If fewer than four rates appear on the Reuters screen US PRIME 1 for that Interest Determination Date, by 3:00 P.M., New York City time, then the
Calculation Agent will determine the prime rate to be the average of the prime rates or 

  
 14 

	 	 
base lending rates furnished in New York City by three substitute banks or trust companies (all organized under the laws of the United States or any of its states and having total equity capital
of at least U.S.$500,000,000) selected by the Calculation Agent, after consultation with the Company. 

  

	 	•	 	 If the banks selected by the Calculation Agent are not quoting as described above, the prime rate will remain the prime rate then in effect on the
Interest Determination Date. 

 “Reuters screen US PRIME 1” means the display designated as
page “US PRIME 1” on the Reuters Monitor Money Rates Service (or any other page as may replace the US PRIME 1 page on that service for the purpose of displaying prime rates or base lending rates of major U.S. banks). 

(c) Indexed Notes. If interest on a Series of InterNotes® is determined by reference, either directly or indirectly, to the price, performance or levels of one or more securities, currencies or composite currencies, interest
rates, inflation rates stock or other indices, or other formulae, financial or market measures or reference assets (the “Indexed Notes”), interest for a specified period shall be calculated as set forth in the applicable Pricing
Supplement. 
 SECTION 3. Amortizing Notes. If a Series of InterNotes® is designated as “Amortizing Notes” in the applicable Pricing Supplement, the Company will make payments
combining principal and interest on the dates and in the amounts set forth in the applicable Pricing Supplement. Payments made on an Amortizing Note will be applied first to interest due and payable on each such payment date and then to the
reduction of the Outstanding Face Amount. The term “Outstanding Face Amount” means, at any time, the amount of unpaid principal a Series of Amortizing Notes at such time. 

SECTION 4. Original Issue Discount Note. If a Series of InterNotes® is designated as “Original Issue Discount Notes” in the applicable Pricing Supplement, then, unless
otherwise specified therein, the amount payable to the holder of that Series of InterNotes® in the event of
redemption, repayment or acceleration of Maturity will be the Amortized Face Amount (as defined below) of the applicable Series of InterNotes® as of the date of such event. The “Amortized Face Amount” shall be the amount equal to (a) the issue price (as set forth in the applicable Pricing
Supplement) plus (b) the original issue discount amortized from the Original Issue Date of that Series of
InterNotes® to the date as of which the Amortized Face Amount is calculated, as specified in the applicable
Pricing Supplement. 
 SECTION 5. Optional Redemption. If so specified in the applicable Pricing
Supplement, a Series of InterNotes® may be redeemed at the option of the Company on any Interest Payment Date
(unless otherwise specified in the applicable Pricing Supplement) on and after the Initial Redemption Date, if any, specified in the applicable Pricing Supplement (each, a “Redemption Date”). IF NO INITIAL REDEMPTION DATE IS SET FORTH
IN THE APPLICABLE PRICING SUPPLEMENT, THAT SERIES OF INTERNOTES® MAY NOT BE REDEEMED AT THE OPTION OF THE
COMPANY PRIOR TO THE MATURITY DATE. If so specified in the applicable Pricing Supplement, on and after the Initial Redemption Date, if any, a Series of InterNotes® may be redeemed at any time in whole or from time to time in part (in increments of the Minimum Denomination, as defined below) at the option of the Company at a
redemption price of 100% of the principal amount of that Series of InterNotes®

  
 15 

 
being redeemed (unless a different redemption price is specified in the applicable Pricing Supplement), together with accrued and unpaid interest on that Series of InterNotes® payable at the applicable rate or rates borne by that Series of InterNotes® to, but excluding, the Redemption Date, on notice given in accordance with the Indenture not less than 30 calendar
days nor more than 60 calendar days prior to the Redemption Date. The notice will take the form of a certificate signed by the Company specifying: 
  

	 	•	 	 the date fixed for redemption; 

  

	 	•	 	 the redemption price; 

  

	 	•	 	 the CUSIP numbers of the Series of InterNotes® to be redeemed; 

  

	 	•	 	 the amount to be redeemed, if less than all of the Series of InterNotes® is to be redeemed; 

  

	 	•	 	 the place of payment for the Series of InterNotes® to be redeemed; 

  

	 	•	 	 that interest accrued on the Series of InterNotes® to be redeemed will be paid as specified in the notice; and 

  

	 	•	 	 that on and after the date fixed for redemption, interest will cease to accrue on the Notes to be redeemed. 

So long as DTC (or a successor depository) is the record holder of a Series of InterNotes®, the Company will deliver any redemption notice only to DTC (or a successor depository). 

In the event of redemption of a Series of InterNotes® in part only, the unredeemed portion thereof shall be at least the minimum authorized denomination (the “Minimum Denomination”) specified in the applicable
Pricing Supplement, or if no such Minimum Denomination is so specified, U.S. $1,000. In the event of redemption of a Series of InterNotes® in part only, the unredeemed portion of that Series of InterNotes® shall continue to be represented by this Note and the applicable Pricing Supplement, subject to modifications specified on Schedule 1 attached hereto. Unless
otherwise specified above, if less than all of a Series of InterNotes® is to be redeemed, the Trustee shall
select, pro rata or by lot or in such other manner as the Trustee shall deem fair and appropriate, the amount of that Series of InterNotes® to be redeemed. 
 From
and after any Redemption Date, if monies for the redemption of a Series of InterNotes® (or portion thereof)
shall have been made available for redemption on such Redemption Date, that Series of InterNotes® (or such
portion thereof) shall cease to bear interest and the holder’s only right with respect to that Series of
InterNotes® (or such portion thereof) shall be to receive payment of the principal amount of such Series being
redeemed (or, if the Series of InterNotes® is issued as “Original Issue Discount Notes” as specified
in the applicable Pricing Supplement, the amortized face amount thereof) and, if appropriate, all unpaid interest accrued to such Redemption Date. 
 SECTION 6. Optional Repayment. If so specified in the applicable Pricing Supplement, a Series of InterNotes® will be repayable prior to the Maturity Date at the option of the registered holder on the optional repayment date(s), if any, specified in the applicable Pricing
Supplement (each, an “Optional Repayment Date”). IF NO OPTIONAL REPAYMENT DATES ARE SET FORTH IN THE APPLICABLE PRICING SUPPLEMENT, THAT SERIES OF INTERNOTES® MAY NOT BE SO REPAID AT THE OPTION OF THE HOLDER HEREOF PRIOR TO THE MATURITY DATE. Unless otherwise specified in the applicable

  
 16 

 
Pricing Supplement, on any Optional Repayment Date, if any, a Series of InterNotes® shall be repayable in whole or in part at the option of the holder at a repayment price equal to 100% of the principal amount to be repaid, together with accrued and
unpaid interest payable at the applicable rate or rates borne by that Series of InterNotes® to, but excluding,
the date of repayment; provided, however, that, in the event of repayment of a Series of
InterNotes® in part only, the unrepaid portion of such Series of InterNotes® shall be at least the Minimum Denomination specified in the applicable Pricing Supplement, or if no such Minimum
Denomination is so specified, U.S. $1,000. For a Series of InterNotes® to be repaid in whole or in part at the
option of the holder on any Optional Repayment Date, a notice, with the form attached hereto entitled “Option to Elect Repayment” duly completed, shall have been received by the Company and the Trustee in accordance with the terms of the
Indenture. Such notice shall be delivered at least 30 but not more than 60 calendar days prior to such holder’s Optional Repayment Date. In the event of repayment of a Series of InterNotes® in part only, the portion of that Series of InterNotes® that is not repaid shall continue to be represented by this Note and the applicable Pricing Supplement, subject to modifications specified on Schedule 1
attached hereto. Exercise of such repayment option by the holder hereof shall be irrevocable. 
 From and
after any Optional Repayment Date, if monies for the repayment of a Series of InterNotes® (or portion thereof)
shall have been made available for repayment on such Optional Repayment Date, that Series of InterNotes® (or
such portion thereof) shall cease to bear interest and the holder’s only right with respect to that Series of
InterNotes® (or such portion thereof) shall be to receive payment of the principal amount of the Series of
InterNotes® being repaid (or, if the Series of InterNotes® is issued as “Original Issue Discount Notes” as specified in the applicable Pricing Supplement, the amortized face amount thereof) and, if appropriate, all
unpaid interest accrued to such Optional Repayment Date. 
 SECTION 7. Survivor’s Option. If the
applicable Pricing Supplement provides that the Survivor’s Option (as defined in the Indenture) is applicable to a Series of InterNotes®, the Representative (defined below) of a deceased beneficial owner interests in that Series of InterNotes® shall be entitled to repayment of the deceased beneficial owner’s interests in that Series of InterNotes® following the death of the beneficial owner. Unless specifically provided in the applicable Pricing Supplement, the Survivor’s Option may not be exercised unless
the deceased beneficial owner’s interests in that Series of InterNotes® were acquired by the beneficial
owner at least six months prior to such election. 
 If the Survivor’s Option is applicable to a Series
of InterNotes®, upon the valid exercise of the Survivor’s Option, the Company shall repay the deceased
beneficial owner’s interests in that Series of InterNotes® (or portion thereof), properly tendered for
repayment by or on behalf of the person (the “Representative”) that has authority to act on behalf of the deceased beneficial owner of a Series of InterNotes® under the laws of the appropriate jurisdiction (including, without limitation, the personal representative or executor of the deceased beneficial owner or the
surviving joint owner with the deceased beneficial owner) at a price equal to 100% of the principal amount of the deceased beneficial owner’s beneficial interests in such Series of InterNotes® plus accrued and unpaid interest to the date of such repayment, subject to the following limitations: 

  
 17 

 (a) The Company, in its sole discretion, may limit (i) the
aggregate principal amount of InterNotes® of all Series as to which exercises of the Survivor’s Option
shall be accepted by the Company from all Representatives of deceased beneficial owners in any calendar year (the “Annual Put Limitation”) to an amount equal to the greater of $2,000,000 or 2% of the Outstanding principal amount of all
InterNotes® issued under the Indenture and the Amended and Restated Senior Indenture dated as of July 1,
2001, between the Company and the Trustee, as of the end of the most recent calendar year, or such greater amount as the Company, in its sole discretion, may determine for any calendar year, and (ii) the aggregate principal amount of InterNotes® as to which exercises of the Survivor’s Option shall be accepted by the Company from the Representative of any
individual deceased beneficial owner of a Series of InterNotes® in any calendar year to $250,000, or such
greater amount as the Company, in its sole discretion, may determine for any calendar year (the “Individual Put Limitation”). 
 (b) The Company shall not make principal repayments pursuant to exercises of the Survivor’s Option in amounts that are less than $1,000, and the principal amount of such Series of InterNotes® remaining Outstanding after repayment pursuant to exercise of the Survivor’s Option must be at least $1,000.
If, however, the original principal amount of a Series of InterNotes® was less than $1,000, the Representative
of the deceased beneficial owner of such Series of InterNotes® may exercise the Survivor’s Option, but only
for the full principal amount of such Series of InterNotes®. 

(c) Any Series of InterNotes® (or portion thereof) tendered pursuant to a valid exercise of the Survivor’s Option may not be withdrawn. 

Each Series of InterNotes® (or portion thereof) that is tendered pursuant to valid exercise of the Survivor’s Option shall be accepted in the order that such Series of InterNotes® was received by the Trustee, except for any Series of InterNotes® (or portion thereof) the acceptance of which would contravene (i) the Annual Put Limitation, if applied, or (ii) the Individual Put Limitation, if applied,
with respect to the relevant individual deceased beneficial owner. If, as of the end of any calendar year, the aggregate principal amount of InterNotes® that have been tendered pursuant to the valid exercise of the Survivor’s Option during such year has exceeded either the Annual Put Limitation, if applied, or
the Individual Put Limitation, if applied, for such year, any exercise(s) of the Survivor’s Option with respect to a Series of InterNotes® (or portion of such Series of
InterNotes®) not accepted during such calendar year because such acceptance would have contravened either such
limitation, if applied, shall be deemed to be tendered in the following calendar year in the order all such Series of
InterNotes® (or portion of such Series of InterNotes®) were originally tendered. Any Series of InterNotes® (or portion thereof) accepted for repayment pursuant to exercise of the Survivor’s Option shall be repaid on the first Interest Payment Date that occurs 20 or
more calendar days after the date of such acceptance. In the event that a Series of InterNotes® (or any portion
thereof) tendered for repayment or repurchase pursuant to valid exercise of the Survivor’s Option is not accepted, the Trustee shall deliver a notice by first class mail to the registered holder thereof, at its last known address as indicated
in the Note Register, that states the reason such Series of InterNotes® (or portion thereof) has not been
accepted for payment. 

  
 18 

 In order for a Survivor’s Option to be validly exercised with
respect to any Series of InterNotes® (or portion thereof), the Trustee must receive from the Representative:
(i) a written request for repayment signed by the Representative, and such signature must be guaranteed by a member firm of a registered national securities exchange or of the Financial Industry Regulatory Authority, Inc. or a commercial bank
or trust company having an office or correspondent in the United States, (ii) tender of a note (or portion thereof) to be repaid (if such Series of InterNotes® is issued in certificated form), (iii) appropriate evidence satisfactory to the Trustee that (A) the deceased was the beneficial owner of such Series of
InterNotes® at the time of death and the interest in such Series of InterNotes® was acquired by the deceased beneficial owner at least six months prior to the request for repayment, (B) the
death of such beneficial owner has occurred, and the date of such death, and (C) the Representative has authority to act on behalf of the deceased beneficial owner, (iv) if applicable, a properly executed assignment or endorsement,
(v) if the beneficial ownership interest in such Series of InterNotes® is held by a nominee of the deceased
beneficial owner, a certificate satisfactory to the Trustee from such nominee attesting to the deceased’s beneficial ownership of such Series of InterNotes®, (vi) tax waivers and such other instruments or documents that the Trustee reasonably requires in order to establish the validity of the beneficial ownership of
the Series of InterNotes® and the claimant’s entitlement to payment, and (vii) any additional
information the Trustee requires to evidence satisfaction of any conditions to the exercise of such Survivor’s Option or to document beneficial ownership or authority to make the election and to cause the repayment of such Series of InterNotes®. Subject to the Company’s right hereunder to limit the aggregate principal amount of InterNotes® as to which exercises of the Survivor’s Option shall be accepted in any one calendar year, all questions as to
the eligibility or validity of any exercise of the Survivor’s Option will be determined by the Trustee, in its sole discretion, which determination shall be final and binding on all parties. 

The death of a person holding a beneficial ownership interest in a Series of InterNotes® as a joint tenant or tenant by the entirety with another person, or as a tenant in common with the deceased
holder’s spouse, will be deemed the death of the beneficial owner of the Series of InterNotes®, and the
entire principal amount of the interests in such Series of InterNotes® so held shall be subject to repayment.
However, the death of a person holding a beneficial ownership interest in a Series of InterNotes® as tenant in
common with a person other than such deceased holder’s spouse will be deemed the death of a beneficial owner only with respect to the deceased person’s interest in the Series of InterNotes® and only the deceased beneficial owner’s percentage interest in the principal amount of the Series of
InterNotes® will be subject to repayment. The death of a person who, during his or her lifetime, was entitled to
substantially all of the beneficial ownership interests in a Series of InterNotes® will be deemed the death of
the beneficial owner of such Series of InterNotes® for purposes of this provision, regardless of whether such
beneficial owner was the registered holder of the Series of InterNotes®, if such beneficial ownership interest
can be established to the satisfaction of the Trustee. Such beneficial ownership interest will be deemed to exist in typical cases of nominee ownership, ownership under the Uniform Transfers to Minors Act or Uniform Gifts to Minors Act, community
property or other joint ownership arrangements between a husband and wife. In addition, the beneficial ownership interest will be deemed to exist in custodial and trust arrangements where one person has all of the beneficial ownership interest in
the Series of InterNotes® during his or her lifetime. 

  
 19 

 For purposes of the Survivor’s Option, a person shall be deemed to
have had a “beneficial ownership interest” in a Series of InterNotes® if such person had the right,
immediately prior to such person’s death, to receive the proceeds from the disposition of such Series of
InterNotes®, as well as the right to receive payment of the principal of such Series of InterNotes®. 
 Since each Series of InterNotes® will be represented by this Note
(except in the limited circumstances described in the Indenture), DTC (or a successor depository) or its nominee shall be the holder of each Series of InterNotes® and therefore shall be the only entity that can exercise the Survivor’s Option. To obtain repayment pursuant to exercise of the Survivor’s Option with
respect to a Series of InterNotes®, the Representative must provide to the broker or other entity through which
the beneficial interest in such Series of InterNotes® is held by the deceased beneficial owner (i) the
documents described in the third preceding paragraph and (ii) instructions to such broker or other entity to notify DTC of such Representative’s desire to obtain repayment pursuant to exercise of the Survivor’s Option. Such broker or
other entity shall provide to the Trustee (a) the documents received from the Representative referred to in clause (i) of the preceding sentence and (b) a certificate satisfactory to the Trustee from such broker or other entity
stating that it represents the deceased beneficial owner. Such broker or other entity shall be responsible for disbursing any payments it receives pursuant to exercise of the Survivor’s Option to the appropriate Representative. 

SECTION 8. Modification and Waivers. The Indenture permits, with certain exceptions as therein provided, the
amendment of the Indenture and the modification of the rights and obligations of the Company and the rights of the holders of the InterNotes® under the Indenture at any time by the Company with the consent of the holders of not less than 66 2/3% in aggregate principal amount of the InterNotes® of all Series then outstanding under the Indenture and affected by such amendment and modification. The Indenture
also contains provisions permitting the holders of a majority in aggregate principal amount of InterNotes® of
each Series then outstanding under the Indenture and affected thereby, on behalf of the holders of all such
InterNotes®, to waive compliance by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the holder of such
InterNotes® shall be conclusive and binding upon such holder and upon all future holders of those InterNotes® and of any InterNotes® issued upon the registration of transfer thereof or in exchange therefor or in lieu hereof whether or not notation of such consent or waiver is made upon such
InterNotes®. The determination of whether particular
InterNotes® are “outstanding” will be made in accordance with the Indenture. 

Any new Global Note authenticated and delivered after the execution of any agreement modifying, amending or
supplementing this Note may bear a notation in a form approved by the Company as to any matter provided for in such modification, amendment or supplement to the Indenture or the InterNotes®. Any new Global Note so modified as to conform, in the opinion of the Company, to any provisions contained in any such modification, amendment or supplement may be
prepared by the Company, authenticated by the Trustee and delivered in exchange for this Note. 
 SECTION 9.
Subordination. Each Series of InterNotes® issued under the Indenture and evidenced by this Note, and the
principal, premium (if any), interest or other amounts payable (if any) on such Series of InterNotes®, shall be,
to the extent set forth in the Indenture, 

  
 20 

 
subordinate and junior in right of payment to its obligations to holders of Senior Indebtedness (as defined in the Indenture), and each holder of a Series of InterNotes®, by the acceptance hereof, agrees to and shall be bound by such provisions of the Indenture. 

SECTION 10. Obligations Unconditional. No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal, premium, if any, and interest on each Series of InterNotes® at the times, place and rate, and in the coin or currency, prescribed in this Note and in the applicable Pricing Supplement. 

SECTION 11. Successor to Company. The Company may not consolidate or merge with or into any other corporation or sell or convey
all or substantially all of its assets to any person, unless (i) the Company shall be the continuing corporation, or the successor corporation (if other than the Company) shall be a corporation organized and existing under the laws of the
United States of America or a state thereof, and such corporation shall expressly assume all the Company’s obligations under the Indenture; and (ii) immediately after giving effect to such transaction, the Company or such successor
corporation is not in default in the performance of any covenant or condition under the Indenture. 
 Upon consolidation,
merger, sale or transfer as described above, the resulting or acquiring entity shall be substituted for the Company in the Indenture with the same effect as if it had been an original party to the Indenture, and the successor entity may exercise the
Company’s right and powers under the Indenture. 
 SECTION 12. Minimum Denominations. Each
Series of InterNotes® may be issued, whether on the original issue date or upon registration of transfer or
partial redemption or repayment of such Series of InterNotes®, may be issued only in a Minimum Denomination as
specified in the applicable Pricing Supplement, or if no Minimum Denomination is so specified, in minimum denominations of U.S.$1,000 and any integral multiple of U.S.$1,000 in excess thereof. 

SECTION 13. Registration of Transfer. As provided in the Indenture and subject to certain limitations as therein set forth, the
transfer of this Note is registrable in the register maintained by the Note Registrar, upon surrender of this Note for registration of transfer at the office or agency of the Company designated by it pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee or the Note Registrar requiring such written instrument of transfer duly executed by, the registered holder hereof or his attorney duly authorized in
writing, and thereupon one or more new notes will be issued to the designated transferee or transferees. 
 This Note may be
exchanged in whole, but not in part, for security-printed definitive Notes, only under the circumstances described in the Indenture. In any such instance, an owner of a beneficial interest in this Note will be entitled to physical delivery in
definitive form of notes equal in principal amount to such beneficial interest and to have such notes registered in its name. Unless otherwise set forth above, notes so issued in definitive form will be issued in Minimum Denominations only and will
be issued in registered form only, without coupons. 

  
 21 

 Subject to the terms of the Indenture, if the notes are held in definitive form, a holder
may exchange its notes for other notes of the same Series in an equal aggregate principal amount and in Minimum Denominations. 

Notes in definitive form may be presented for registration of transfer at the office of the Note Registrar or at the office of any
transfer agent that the Company may designate and maintain. The Note Registrar or the transfer agent will make the transfer or registration only if it is satisfied with the documents of title and identity of the person making the request. The
Company may change the Note Registrar or the transfer agent or approve a change in the location through which the Note Registrar or transfer agent acts at any time, except that the Company will be required to maintain a Note Registrar and transfer
agent in each place of payment for the notes of a Series. At any time, the Company may designate additional transfer agents for a Series. 
 The Company will not be required to (a) issue, exchange, or register the transfer of any notes if it has exercised its right to redeem the notes of any Series for a period of 15 calendar days before
the redemption date, or (b) exchange or register the transfer of any notes of a Series that were selected, called, or are being called for redemption, except the unredeemed portion of notes of that Series, if being redeemed in part. 

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. 
 Prior to due presentment of this
Note for registration of transfer, the Company, the Trustee, and any agent of the Company or the Trustee may treat the person in whose name this Note is registered as the owner hereof for all purposes, whether not this Note be overdue, and neither
the Company, the Trustee, nor any such agent shall be affected by notice to the contrary, except as required by applicable law. 
 SECTION 14. Events of Default. If an Event of Default (defined in the Indenture as certain events involving the bankruptcy of the Company) shall occur with respect to a Series of InterNotes®, the principal of all InterNotes® of all series affected thereby may be declared due and payable in the manner and with the effect provided in the Indenture. THERE IS NO RIGHT OF ACCELERATION PROVIDED
IN THE INDENTURE IN CASE OF A DEFAULT IN THE PAYMENT OF PRINCIPAL OR INTEREST, OR THE PERFORMANCE OF ANY OTHER COVENANT OF THE COMPANY. 
 SECTION 15. Defeasance. Unless otherwise specified in the applicable Pricing Supplement, the provisions of Section 12.05 of the Indenture shall not apply to the relevant Series of InterNotes®. 
 SECTION 16. Currency for Amounts Payable. Unless otherwise provided herein or in the applicable Pricing Supplement, the principal, premium, if any, interest and any other amounts payable on a
Series of InterNotes® are payable in U.S. dollars. 

  
 22 

 SECTION 17. Mutilated, Defaced, Destroyed, Lost or Stolen Notes. In case this Note or
any definitive notes issued in certificated form in exchange for beneficial interests in this Note in accordance with the Indenture (referred to herein as “Certificated Notes”) shall at any time become mutilated, defaced, destroyed, lost
or stolen, and this Note or a Certificated Note or evidence of the loss, theft or destruction hereof or thereof satisfactory to the Company and the Note Registrar and such other documents or proof as may be required by the Company and the Note
Registrar shall be delivered to the Note Registrar, the Note Registrar shall issue a new Note or Certificated Note in exchange and substitution for the mutilated or defaced Note or Certificated Note or in lieu of the Note or Certificated Note
destroyed, lost or stolen but, in the case of any destroyed, lost or stolen Note or Certificated Note, only upon receipt of evidence satisfactory to the Company and the Note Registrar that this Note or Certificated Note was destroyed, stolen or
lost, and, if required, upon receipt of indemnity satisfactory to the Company and the Note Registrar. Upon the issuance of any substituted Note or Certificated Note, the Company may require the payment of a sum sufficient to cover all expenses and
reasonable charges connected with the preparation and delivery of a new Note or Certificated Note. If any Note or Certificated Note which has matured or has been redeemed or repaid or is about to mature or to be redeemed or repaid shall become
mutilated, defaced, destroyed, lost or stolen, the Company may, instead of issuing a substitute Note or Certificated Note, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated or defaced Note or
Certificated Note) upon compliance by the holder with the provisions of this paragraph. 
 SECTION 18.
Miscellaneous. No recourse shall be had for the payment of principal of (and premium, if any) or interest on, a Series of InterNotes® for any claim based hereon, or otherwise in respect hereof, against any shareholder, employee, agent, officer or director, as such, past, present or future, of the
Company or of any successor organization, either directly or through the Company or any successor organization, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 

SECTION 19. Defined Terms. All terms used in this Note which are defined in the Indenture or the Prospectus and are not otherwise
defined in this Note shall have the meanings assigned to them in the Indenture or the Prospectus, as applicable. 
 Unless
specified otherwise in the applicable Pricing Supplement, “Business Day” means, a day that meets all the following requirements: 
 (a) for all Series of InterNotes®, is any weekday that is not a
legal holiday in New York City or Charlotte, North Carolina, or any other place of payment of the applicable Note, and is not a date on which banking institutions in those cities are authorized or required by law or regulation to be closed; and

 (b) for any Series of InterNotes® where the base rate is LIBOR, also is a day on which commercial banks are open for business (including dealings in the Index Currency specified in the Pricing
Supplement) in London, England. 

  
 23 

 SECTION 20. GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, NOTWITHSTANDING ANY OTHERWISE APPLICABLE CONFLICTS OF LAWS PROVISIONS AND ALL APPLICABLE UNITED STATES FEDERAL LAWS AND REGULATIONS. 

  
 24 

 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 —	 	  
	 	as Custodian for	 	  

		 	 (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 hereby
 sell(s), assign(s) and transfer(s) unto
	 	

  

			
	PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE	  	

  

					
	            /            /     
       	 		  	  

		 		  	Please print or type name and address, including zip code of assignee

 

	
	  

	the within Note of BANK OF AMERICA CORPORATION and all rights thereunder and does hereby irrevocably constitute and
appoint

  

	
	  

					
		 	  
	  	Attorney
	
	to transfer the said Note on the books of the within-named Company, with full power of substitution in the
premises

  

			
	Dated:                     	  	
	SIGNATURE GUARANTEED:	  	  

		  	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of this Note

  
 25 

 OPTION TO ELECT REPAYMENT 

The undersigned hereby irrevocably request(s) and instruct(s) the Company to repay a Series of InterNotes® (or portion thereof specified below), CUSIP No.
                     pursuant to its terms at a price equal to the principal amount of that Series together with interest to the repayment
date, to the undersigned, at
                                        
(Please print or typewrite name and address of the undersigned). 
 For that Series of InterNotes® to be repaid, the Trustee (or the Paying Agent on behalf of the Trustee) must receive at
                    , or at such other place or places of which the Company shall from time to time notify the holder of InterNotes®, not more than 60 nor less than 30 days prior to a Repayment Date, if any, set forth in the Pricing Supplement for
such Series of InterNotes®, this “Option to Elect Repayment” form duly completed. 

If less than the entire principal amount of the Series of
InterNotes® is to be repaid, specify the portion thereof (which shall be in increments of the Minimum
Denomination) which the holder elects to have repaid and specify the denomination or denominations (which shall be $             or an integral multiple of the Minimum Denomination
in excess of $            ) of the Series of
InterNotes® to be issued to the holder for the portion not being repaid. 

 

					
	$                             
  	 		 	  

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

  
 26 

 Schedule 1 

 

																			
	 Prospectus
Supplement
and/or

Pricing
Supplement
No.
	  	Principal
Amount of
Supplemental
Obligation	  	Original
Issue
Date	  	Fixed,
Floating
or
Indexed
Note	  	Base Rate
or Index
Reference	  	Amortizing/
Original
Issue
Discount
Note
	  	Increase
(Decrease)
in
Principal
Amount	  	Transfer/
Redemption/
Repayment	  	Date
of
Increase
(Decrease)
or Transfer/
Redemption/
Repayment	  	Trustee
Notation
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  	

  
 272004 Stock Option and Grant Plan

 Exhibit 10.1 
 DEMANDWARE, INC. 
 2004 Stock Option and Grant Plan 

 

	SECTION 1.	GENERAL PURPOSE OF THE PLAN; DEFINITIONS 

 The name of the plan is the Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”). The purpose of the Plan is to encourage and enable the officers, employees, directors, consultants and
other key persons of Demandware, Inc., a Delaware corporation (the “Company”) and its Subsidiaries, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary
interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company, thereby stimulating their efforts on the
Company’s behalf and strengthening their desire to remain with the Company. 
 The following terms shall be defined as set
forth below: 
 “Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 “Award” or “Awards,” except where referring to a particular category of grant under the Plan,
shall include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing. 
 “Board” means the Board of Directors of the Company or its successor entity. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 

“Committee” has the meaning specified in Section 2. 

“Effective Date” means the date on which the Plan is approved by stockholders as set forth at the end of this Plan.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder. 
 “Fair Market value” of the Stock on any given date means the fair market value of the
Stock determined in good faith by the Committee; provided, however, that (i) if the Stock trades on a national securities exchange, the Fair Market Value on any given dale is the closing sale price on such date; (ii) if the
Stock does not trade on any national securities exchange but is 

 
admitted to trading on the National Association of Securities Dealers, Inc. Automated Quotation System (“NASDAQ”), the Fair Market Value on any given date is the closing sale price as
reported by NASDAQ on such date; or if no such closing sale price information is available, the average of the highest bid and lowest asked prices for the Stock reported on such date. For any date that is not a trading day, the Fair Market Value of
the Stock for such date will be determined by using the closing sale price or the average of the highest bid and lowest asked prices, as appropriate, for the immediately preceding trading day. The Committee can substitute a particular time of day or
other measure of closing sale price if appropriate because of changes in exchange or market procedures. Notwithstanding the foregoing, if the date for which Fair Market Value is determined is the first day when trading prices for the Stock are
reported on NASDAQ or trading on a national securities exchange, the Fair Market Value shall be the “Price to the Public” (or equivalent) set forth on the cover page for the final prospectus relating to the Company’s Initial Public
Offering. 
 “Incentive Stock Option” means any Stock Option designated and qualified as an “incentive
stock option” as defined in Section 422 of the Code. 
 “Initial Public Offering” means the
consummation of the first fully underwritten, firm commitment public offering pursuant to an effective registration statement under the Act covering the offer and sale by the Company of its equity securities, as a result of or following which the
Stock shall he publicly held. 
 “Non-Qualified Stock Option” means any Stock Option that is not an Incentive
Stock Option. 
 “Option” or “Stock Option” means any option to purchase shares of Stock
granted pursuant to Section 5. 
 “Restricted Stock Award’ means Awards granted pursuant to
Section 6. 
 “stock” means the Common Stock, par value $0.001 per share, of the Company, subject to
adjustments pursuant to Section 3. 
 “Subsidiary” means any corporation or other entity (other than the
Company) in any unbroken chain of corporations or other entities beginning with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns stock or other interests possessing 50 percent
or more of the economic interest or 50 percent or more of the total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain. 

“Unrestricted Stock Award” means any Award granted pursuant to Section 7. 

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS 

(a) Administration of Plan. The Plan shall be administered by the Board, or at the discretion of the Board, by a committee of the
Board, comprised of not less than three Directors. 

  
 2 

 
All references herein to the Committee shall be deemed to refer to the group then responsible for administration of the Plan at the relevant time (i.e., either the Board of Directors or a
committee or committees of the Board, as applicable). 
 (b) Powers of Committee. The Committee shall have the power and
authority to grant Awards consistent with the terms of the Plan, including the power and authority: 
 (i) to
select the individuals to whom Awards may from time to time be granted; 
 (ii) to determine the time or times of
grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any combination of the foregoing, granted to any one or more grantees; 

(iii) to determine the number of shares of Stock to be covered by any Award; 

(iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the
terms of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 

(v) to accelerate at any time the exercisability or vesting of all or any portion of any Award; 

(vi) to impose any limitations on Awards granted under the Plan, including limitations on transfers, repurchase provisions
and the like and to exercise repurchase rights or obligations; 
 (vii) subject to the provisions of
Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; 
 (viii) to
determine at any time whether, to what extent, and under what circumstances distribution or the receipt of Stock and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the grantee and whether
and to what extent the Company shall pay or credit amounts constituting interest (at rates determined by the Committee) or dividends or deemed dividends on such deferrals; and 

(ix) at any lime to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for
its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instrument); to make all determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 
 All
decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan grantees. 

  
 3 

 (c) Indemnification. Neither the Board nor the Committee, nor any member of either or
any delegatee thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Committee (and any delegatee thereof) shall be entitled
in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law
and/or under any directors’ and officers’ liability insurance coverage which may be in effect from time to time. 
 SECTION 3.
STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION 
 (a) Stock Issuable. The maximum number of shares of
Stock reserved and available for issuance under the Plan shall be 2,000,000 shares of Stock, subject to adjustment as provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying any Awards which are forfeited,
cancelled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. Subject to such overall limitation,
shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that from and after the date the Company becomes subject to the deduction limit imposed by Section 162(m) of the Code, Stock Options
with respect to no more than 500,000 shares of Stock may be granted to any one individual grantee during any one calendar year period. The shares available for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock
reacquired by the Company and held in its treasury. 
 (b) Changes in Stock. Subject to Section 3(c) hereof, if, as
a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are increased or decreased or are
exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Stock
or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for a different number or kind of securities of
the Company or any successor entity (or a parent or subsidiary thereof), the Committee shall make an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, (ii) the number of Stock
Options that can be granted to any one individual grantee, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price per share subject to each outstanding
Award, and (v) the exercise price and/or exchange price for each share subject to any then outstanding Stock Options under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock
Options ) as to which such Stock Options remain exercisable. The adjustment by the Committee shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the Committee
in its discretion may make a cash payment in lieu of fractional shares. 

  
 4 

 The Committee may also adjust the number of shares subject to outstanding Awards and the
exercise price and the terms of outstanding Awards to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or dispositions of Stock or property or any other event if it is determined
by the Committee that such adjustment is appropriate to avoid distortion in the operation of the Plan, provided that no such adjustment shall be made in the case of an Incentive Stock Option, without the consent of the grantee, if it
would constitute a modification, extension or renewal of the Option within the meaning of Section 424(h) of the Code. 

(c) Mergers and Other Sale Events. In the case of and subject to the consummation of (i) the dissolution or liquidation of
the Company, (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or consolidation in which the outstanding shares of Stock are
converted into or exchanged for securities of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity
immediately upon completion of such transaction, (iv) the sale of all or a majority of the outstanding capital stock of the Company to an unrelated person or entity (other than any financing transaction of the Company (whether private or
public)) or (v) any other transaction in which, the owners of the Company’s outstanding voting power prior to such transaction do not own at least a majority of the outstanding voting power of the successor entity immediately upon
completion of the transaction (other than any financing transaction of the Company (whether private or public)) (in each case, regardless of the form thereof, a “Sale Event”), unless otherwise provided in the Award agreement, the Plan and
all outstanding Options issued hereunder shall terminate upon the effective time of any such Sale Event, unless provision is made in connection with such transaction in the sole discretion of the parties thereto for the assumption or continuation of
Options theretofore granted (after taking into account any acceleration hereunder) by the successor entity, or the substitution of such Options with new Options of the successor entity or a parent or subsidiary thereof, with such adjustment as to
the number and kind of shares and the per share exercise prices as such parties shall agree (after taking into account any acceleration if any, hereunder). In the event of such termination, each grantee shall be permitted, within a specified period
of time prior to the consummation of the Sale Event as determined by the Committee, to exercise all outstanding Options held by such grantee which are then exercisable or will become exercisable as of the effective time of the Sale Event; provided,
however, that the exercise of Options not exercisable prior to the Sale Event shall be subject to the consummation of the Sale Event. (The treatment of Restricted Stock Award in connection with any such transaction shall be as specified in the
relevant Award agreement.) 
 (d) Substitute Awards. The Committee may grant Awards under the Plan in substitution for
stock and stock based awards held by employees, directors or other key persons of another corporation in connection with a merger or consolidation of the employing corporation with the Company or a Subsidiary or the acquisition by the Company or a
Subsidiary of property or stock of the employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances. Any substitute Awards granted
under the Plan shall not count against the share limitation set forth in Section 3(a). 

  
 5 

 SECTION 4. ELIGIBILITY 

Grantees in the Plan will be such full or part-time officers, employees, directors, consultants and other key persons (including
prospective employees) of the Company and its Subsidiaries who are responsible for, or contribute to, the management, growth or profitability of the Company and its Subsidiaries as are selected from time to time by the Committee in its sole
discretion. 
 SECTION 5. STOCK OPTIONS 
 Any Stock Option granted under the Plan shall be pursuant to a Stock Option Agreement which shall be in such form as the Committee may from time to time approve. Option agreements need not be identical.

 Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock
Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock
Option, it shall be deemed a Non-Qualified Stock Option. 
 No Incentive Stock Option shall be granted under the Plan after the
date which is ten years from the date the Plan is approved by the Board. 
 (a) Terms of Stock Options. Stock Options
granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable. If the Committee so determines,
Stock Options may be granted in lieu of cash compensation at the grantee’s election, subject to such terms and conditions as the Committee may establish, as well as in addition to other compensation. 

(i) Exercise Price. The exercise price per share for the Stock covered by a Stock Option shall be determined by the
Committee at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant in the case of Incentive Stock Options. If an employee owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation and an incentive Stock Option is granted to such employee, the option price of such
Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date. 
 (ii)
Option Term. The term of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than ten years after the date the Stock Option is granted. If an employee owns or is deemed to own (by reason of the
attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the
term of such Stock Option shall be no more than five years from the date of grant. 

  
 6 

 (iii) Exercisability; Rights of a Stockholder. Stock Options shall
become exercisable at such time or times, whether or not in installments, as shall be determined by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability of all or any portion of any Stock Option. An
optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 (iv) Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the
purchase price may be made by one or more of the following methods to the extent provided in the Award agreement or as otherwise provided by the Committee: 
 (A) In cash, by certified or bank check, or other instrument acceptable to the Committee in U.S. funds payable to the order of the Company in an amount equal to the purchase price of such shares of Stock
with respect to which such Stock Option is exercised; 
 (B) By the optionee delivering to the Company a
promissory note if the Board has expressly authorized the loan of funds to the optionee for the purpose of enabling or assisting the optionee to effect the exercise of his or her Stock Option: provided that at least so much of the exercise price as
represents the par value of the Stock shall be paid other than with a promissory note if otherwise required by state law; 
 (C) If permitted by the Committee, through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market or have been beneficially owned by
the optionee for at least six months and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date; 

(D) If permitted by the Committee, by the optionee delivering to the Company a properly executed exercise notice together
with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase price; provided that in the event the optionee chooses to pay the purchase price as so
provided, the optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of such payment procedure. 

Payment instruments will be received subject to collection. No certificates for shares of Stock so purchased will be issued to optionee
until the Company has completed all steps required by law to be taken in connection with the issuance and sale of the shares, including without limitation (i) receipt of a representation from the optionee at the time of exercise of the Option
that the optionee is purchasing the shares for the optionee’s own account and not with a view to any sale or distribution thereof, (ii) the legending of any certificate representing the shares to evidence the foregoing representations and
restrictions, and (iii) obtaining from optionee payment or provision for all withholding taxes due as a result of the exercise of the Option. The delivery of certificates representing the shares of Stock to be purchased pursuant to the exercise

  
 7 

 
of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his or her stead in accordance with the provisions of the Stock Option) by the Company of the full
purchase price for such shares and the fulfillment of any other requirements contained in the Option Award agreement or applicable provisions of laws. In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock
through the attestation method, the shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of shares attested to. 
 (b) Annual Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined
as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee
during any calendar year shall not exceed $100,000. To the extent that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option. 
 (c) Non-transferability of Options. No Stock Option shall be transferable by the optionee otherwise than by will or by the laws of descent and distribution and all Stock Options shall be
exercisable, during the optionee’s lifetime, only by the optionee, or by the optionee’s legal representative or guardian in the event of the optionee’s incapacity. Notwithstanding the foregoing, the Committee, in its sole discretion,
may provide in the Award agreement regarding a given Option that the optionee may transfer, without consideration for the transfer, his or her Non-Qualified Stock Options to members of his or her immediate family, to trusts for the benefit of such
family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Option. 

SECTION 6. RESTRICTED STOCK AWARDS 
 (a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award pursuant to which the Company may, in its sole discretion, grant or sell, at such purchase price as determined by the
Committee, in its sole discretion, shares of Stock subject to such restrictions and conditions as the Committee may determine at the time of grant (“Restricted Stock”), which purchase price shall be payable in cash or other form of
consideration acceptable to the Committee. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. The terms and conditions of each such agreement shall
be determined by the Committee, and such terms and conditions may differ among individual Awards and grantees. 
 (b) Rights
as a Stockholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock,
subject to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the Committee shall otherwise determine, certificates evidencing the Restricted Stock shall remain in the possession of the Company until
such Restricted Stock is vested as provided in 

  
 8 

 
subsection (d) below of this Section, and the grantee shall be required, as a condition of the grant, to deliver to the Company a stock power endorsed in blank. 

(c) Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except
as specifically provided herein or in the Restricted Stock Award agreement. If a grantee’s employment (or other service relationship) with the Company and its Subsidiaries terminates under the conditions specified in the relevant instrument
relating to the Award, or upon such other event or events as may be staled in the instrument evidencing the Award, the Company or its assigns shall have the right or shall agree, as may be specified in the relevant instrument, to repurchase some or
all of the shares of Stock subject to the Award at such purchase price as is set forth in such instrument. 
 (d) Vesting of
Restricted Stock. The Committee at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which Restricted Stock shall become vested, subject to such
further rights of the Company or its assigns as may be specified in the instrument evidencing the Restricted Stock Award. 
 (e)
Waiver, Deferral and Reinvestment of Dividends. The Restricted Stock Award agreement may require or permit the immediate payment, waiver, deferral or investment of dividends paid on the Restricted Stock. 

SECTION 7. UNRESTRICTED STOCK AWARDS 
 (a) Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion, grant (or sell at par value or such higher purchase price determined by the Committee) an Unrestricted Stock
Award to any grantee, pursuant to which such grantee may receive shares of Stock free of any vesting restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding
sentence in respect of past services or other valid consideration, or in lieu of any cash compensation due to such individual. 

(b) Elections to Receive Unrestricted Stock In Lieu of Compensation. Upon the request of a grantee and with the consent of the
Committee, each such grantee may, pursuant to an advance written election delivered to the Company no later than the date specified by the Committee, receive a portion of the cash compensation otherwise due to such grantee in the form of shares of
Unrestricted Stock either currently or on a deferred basis. 
 (c) Restrictions on Transfers. The right to receive shares
of Unrestricted Stock on a deferred basis may not be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution. 
 SECTION 8. TAX WITHHOLDING 
 (a) Payment by Grantee. Each
grantee shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the 

  
 9 

 
Company, or make arrangements satisfactory to the Committee regarding payment of, any federal, state, or local taxes of any kind required by law to be withheld with respect to such income. The
Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver stock certificates to any grantee is
subject to and conditioned on tax obligations being satisfied by the grantee. 
 (b) Payment in Stock. Subject to
approval by the Committee, a grantee may elect to have the minimum required tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a number of
shares with an aggregate Fair Market Value (as of the dale the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock owned by the grantee with an aggregate Fair Market Value
(as of the date the withholding is effected) that would satisfy the minimum withholding amount due. 
 SECTION 9. TRANSFER, LEAVE OF
ABSENCE, ETC. 
 For purposes of the Plan, the following events shall not be deemed a termination of employment:

 (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary
to another; or 
 (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the
Company, if the employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing. 

SECTION 10. AMENDMENTS AND TERMINATION 
 The Board may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award (or provide substitute Awards at the same or reduced exercise or
purchase price or with no exercise or purchase price in a manner not inconsistent with the terms of the Plan), but such price, if any, must satisfy the requirements which would apply to the substitute or amended Award if it were then initially
granted under this Plan for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent. If and to the extent determined by
the Committee to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code, Plan amendments shall be subject to approval by the Company’s stockholders who are eligible
to vote at a meeting of stockholders. Nothing in this Section 10 shall limit the Board’s or Committee’s authority to take any action permitted pursuant to Section 3(c). 

  
 10 

 SECTION 11. STATUS OF PLAN 

With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received
by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Committee may authorize
the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the
foregoing sentence. 
 SECTION 12. GENERAL PROVISIONS 
 (a) No Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring Stock pursuant to an Award to represent to and agree with the Company in writing that such
person is acquiring the shares without a view to distribution thereof. No shares of Stock shall be issued pursuant to an Award until all applicable securities law and other legal and stock exchange or similar requirements have been satisfied. The
Committee may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 
 (b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have
mailed such certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company. 
 (c) Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and
such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Subsidiary.

 (d) Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such
Company’s insider-trading-policy-related restrictions, terms and conditions as may be established by the Committee, or in accordance with policies set by the Committee, from time to time. 

(e) Loans to Award Recipients. The Company shall have the authority to make loans to recipients of Awards hereunder (including to
facilitate the purchase of shares) and shall further have the authority to issue shares for promissory notes hereunder. 
 (f)
Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any
such designation shall be on a form provided for that purpose by the Administrator and shall not be effective until received by the Administrator. If no beneficiary has been designated by a deceased grantee, or if the

  
 11 

 
designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate. 
 SECTION 13. EFFECTIVE DATE OF PLAN 
 This Plan shall become effective
upon approval by the stockholders in accordance with applicable law. Subject to such approval by the stockholders and to the requirement that no Stock may be issued hereunder prior to such approval, Stock Options and other Awards may be granted
hereunder on and after adoption of this Plan by the Board. 
 SECTION 14. GOVERNING LAW 

This Plan and all Awards and actions taken thereunder shall be governed by Delaware law, applied without regard to conflict of law
principles. 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	August 4, 2004
		
	APPROVED BY STOCKHOLDERS:	  	August 4, 2004

  
 12 

 FIRST AMENDMENT 

TO 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), as follows: 
 That Section 3 (a) of the Plan is hereby amended by deleting the first sentence
of Section 3(a) and substituting therefore the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 2,250,000 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	May 12, 2005
		
	ADOPTED BY STOCKHOLDERS:	  	May 13, 2005

 SECOND AMENDMENT 

TO 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), as follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefore the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 2,750,000 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

											
	ADOPTED BY BOARD OF DIRECTORS:	  	September 16, 2005
		
	ADOPTED BY STOCKHOLDERS:	  	September 16, 2005

 THIRD AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), ad follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 4,750,000 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

											
	ADOPTED BY BOARD OF DIRECTORS:	  	December 20, 2005
		
	ADOPTED BY STOCKHOLDERS:	  	December 20, 2005

 FOURTH AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), as follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 7,050,000 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

													
	ADOPTED BY BOARD OF DIRECTORS:	  	May 11, 2006
		
	ADOPTED BY STOCKHOLDERS:	  	May 11, 2006

 FIFTH AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), ad follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 10,050,000 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	August 2, 2007
		
	ADOPTED BY STOCKHOLDERS:	  	August 2, 2007

 SIXTH AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), ad follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 14,718,646 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	April 7, 2009
		
	ADOPTED BY STOCKHOLDERS:	  	April 13, 2009

 SEVENTH AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), ad follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 19,057,668 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	February 11, 2010
		
	ADOPTED BY STOCKHOLDERS:	  	February 11, 2010

 EIGHTH AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), ad follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock
reserved and available for issuance under the Plan shall be 19,919,242 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	March 25, 2010
		
	ADOPTED BY STOCKHOLDERS:	  	March 25, 2010

 NINTH AMENDMENT 

TO THE 

DEMANDWARE, INC. 2004 STOCK OPTION AND GRANT PLAN 
 The Demandware, Inc. 2004 Stock Option and Grant Plan (the “Plan”) is hereby amended by the Board of Directors and stockholders of Demandware, Inc., a Delaware corporation (the
“Company”), ad follows: 
 That Section 3(a) of the Plan is hereby amended by deleting the first sentence of
Section 3(a) and substituting therefor the following: 
 “The maximum number of shares of Stock reserved and available
for issuance under the Plan shall be 21,344,242 shares of Stock, subject to adjustment as provided in Section 3(b).” 
  

			
	ADOPTED BY BOARD OF DIRECTORS:	  	July 6, 2011
		
	ADOPTED BY STOCKHOLDERS:	  	July 7, 2011

 DEMANDWARE, INC. 

2004 STOCK OPTION AND GRANT PLAN (AS AMENDED) 
 SUB-PLAN FOR FRANCE 
  

	1.	Purpose of Sub Plan. 

 This Demandware, Inc. Sub Plan for France (the “Sub Plan”) of the Demandware, Inc. 2004 Stock Option and Grant Plan was established by the Board for the purpose of granting options
which are intended to qualify for the favorable income tax and social tax treatment in France applicable to options granted under Sections L. 225-177 to L. 225-186 of the French Commercial Code (“French Qualified Stock
Option”). The additional terms and conditions detailed below are to be read in conjunction with the rules of the Demandware, Inc. 2004 Stock Option and Grant Plan (as amended) (the “Plan”). To the extent that the
terms and conditions of this Sub Plan conflict with the terms and conditions set forth in the Plan or any French Qualified Stock Option Agreement, the terms and conditions of this Sub Plan shall prevail. 

 

	2.	Administration. 

Notwithstanding any other provision of the Plan, unless otherwise agreed by the Board or the Committee, options will be exercisable under
the vesting schedule set out in the French Qualified Stock Option Agreement for employees subject to taxation under the laws of France. Notwithstanding any other provision of the Plan, the Board is authorized to unilaterally accelerate, reduce, lift
or cancel vesting of any option granted under this Sub Plan, as may be necessary or desirable to comply with the French applicable social or tax laws. Furthermore, the Board or the Committee has the absolute discretion to impose a restriction of up
to three years on the sale of shares issued as a result of an option exercise. Notwithstanding any other provision of the Plan, the exercise price shall remain unchanged. In addition, the exercise price can only be adjusted upon the occurrence of
the events specified under the July 24, 1966 corporate law (section 208-5) in accordance with French law, and the total number of options granted and remaining unexercised (outstanding options) will never cover a number of shares exceeding
one-third of the share capital of Demandware, Inc. 
  

	3.	Definitions. 

 For
purposes of this Sub Plan, a Group company is a company having the following capital links with the granting Company: 
 (a) at
least 10% of the subsidiary capital is held, directly or indirectly, by the granting Company, or 
 (b) the subsidiary directly
or indirectly holds at least 10% of the granting Company’s capital, or 
 (c) at least 50% of the subsidiary’s capital
is held, directly or indirectly by a company 

 
which holds, directly or indirectly, at least 50% of the granting Company’s capital. 
  

	4.	Eligibility. 

Options may not be issued under this Sub Plan to employees or executives owning upon the date of grant more than ten percent (10%) of
the Company’s capital shares. Notwithstanding any other provision of the Plan, options may only be granted to individuals (hereafter the “beneficiaries” or “Participants”): 

(a) being subject to taxation in France and having an employment contract under French Law either with the granting Company, a subsidiary
of the granting Company or a Group company as defined above, upon the date of grant; and/or 
 (b) to non-employed directors
having a management function (the “président-directeur general,” the “directeur-général,” the “members of the “directoire”) of a subsidiary of the granting Company or a Group company as defined
in Section 3 of this Sub Plan, upon the date of grant. 
  

	5.	Option Price. 

Notwithstanding any other provision of the Plan, the Board can set the exercise price of any Options granted under this Sub Plan as the
greater of fair market value on the date of grant or 80% of the average stock exchange price during the twenty days preceding the related grant or 80% of the average repurchase price of its own shares held by the Company to be allocated to
beneficiaries. 
  

	6.	Timing of Option Grant. 

 Notwithstanding any other provision of the Plan, options granted within the following time periods shall be deemed not to have been granted under this Sub Plan: 

(a) twenty (20) day period following a distribution of dividends or a capital increase of the Company shall not be deemed to have
been granted under this Sub Plan, 
 (b) during the period of time between the ten stock exchange sessions preceding and
following the date consolidated accounts are made public, or if no consolidated accounts, the date of publication of annual accounts, and 
 (c) during the period of time between the date the Company becomes aware of information which would have a significant impact on the Company’s shares and the date after the end of ten stock exchange
sessions following the date upon which the information is made public (pursuant to Article 70 of the bill modifying the last paragraph of Article 208-1 of law 66-537 of 24 July 1966).

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