Document:

Third Supplemental Indenture, dated May 3, 2007

Table of Contents

 EXHIBIT 4.1 
  
  

 6.60% Fixed to Floating Rate
Long Term Subordinated Notes (LoTSSM) 
 due 2067 
 THIRD SUPPLEMENTAL INDENTURE 
 Dated as of May 3, 2007 
 between

 EVEREST REINSURANCE HOLDINGS, INC. 
 and 
 THE BANK OF NEW YORK 
 as Trustee 
 Supplemental to Junior Subordinated Indenture 
 Dated as of November 14, 2002 
  

  

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Table of Contents 
  

					
	 	  	 	  	Page
	
	
ARTICLE I
	
	
DEFINITIONS
			
	 Section 1.01.
	  	 
Definitions
	  	1
	
	
ARTICLE II
	
	
GENERAL TERMS AND CONDITIONS OF THE LOTSSM
			
	 Section 2.01.
	  	
Designation, Principal Amount and Authorized Denominations	  	7
	 Section 2.02.
	  	
Repayment.	  	7
	 Section 2.03.
	  	
Form	  	10
	 Section 2.04.
	  	
Rate of Interest; Interest Payment Date.	  	11
	 Section 2.05.
	  	
Interest Deferral	  	11
	 Section 2.06.
	  	
Events of Default	  	12
	 Section 2.07.
	  	
Securities Registrar; Paying Agent; Delegation of Trustee Duties.	  	13
	 Section 2.08.
	  	
No Sinking Fund	  	14
	 Section 2.09.
	  	
Defeasance	  	14
	
	
ARTICLE III
	
	
COVENANTS
			
	 Section 3.01.
	  	
Dividend and Other Payment Stoppages 	  	14
	
	
ARTICLE IV
	
	
REDEMPTION OF THE LOTSSM
			
	 Section 4.01.
	  	
Redemption	  	15
	 Section 4.02.
	  	
Redemption Price	  	16
	
	
ARTICLE V
	
	
REPAYMENT OF LOTSSM
			
	 Section 5.01.
	  	
Repayments	  	16
	 Section 5.02.
	  	
Selection of the LoTSSM to be Repaid	  	16
	 Section 5.03.
	  	
Notice of Repayment	  	16
	 Section 5.04.
	  	
Deposit of Repayment Amount	  	17
	 Section 5.05.
	  	
Repayment of LoTSSM	  	17

  

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ARTICLE VI
	
	
SUPPLEMENTAL INDENTURES
			
	 Section 6.01.
	  	
Supplemental Indentures Without Consent of Holders 	  	18
	
	
ARTICLE VII
	
	
SUBORDINATION
	
	
ARTICLE VIII
	
	
MISCELLANEOUS
			
	 Section 8.01.
	  	
Effectiveness	  	19
	 Section 8.02.
	  	
Effect of Recitals	  	19
	 Section 8.03.
	  	
Ratification of Indenture	  	19
	 Section 8.04.
	  	
Tax Treatment	  	19
	 Section 8.05.
	  	
Governing Law	  	20
	 Section 8.06.
	  	
Severability	  	20

  

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 THIRD SUPPLEMENTAL INDENTURE, dated as of May 3, 2007 (the “Third Supplemental
Indenture”), between Everest Reinsurance Holdings, Inc., a Delaware corporation (the “Corporation”), having its principal office at 477 Martinsville Road, P.O. Box 830, Liberty Corner, NJ 07938, and THE BANK OF
NEW YORK, a New York banking corporation (successor to JPMorgan Chase Bank), as trustee (hereinafter called the “Trustee”). 
 RECITALS OF THE CORPORATION 
 The Corporation and the Trustee entered into an Indenture, dated as of November 14, 2002 (as it
may from time to time be supplemented or amended, the “Indenture”). Section 9.1 of the Indenture provides that the Corporation and the Trustee may, without the consent of any Holder, enter into a supplemental indenture to
establish the form or terms of Securities of any series as permitted by Section 2.1 or 3.1 thereof. 
 Pursuant to Sections 2.1 and
3.1 of the Indenture, the Corporation desires to provide for the establishment of a series of Securities under the Indenture, and the form and terms thereof, as hereinafter set forth. 
 The Corporation has requested that the Trustee execute and deliver this Third Supplemental Indenture. The Corporation has delivered to the Trustee an
Opinion of Counsel and an Officers’ Certificate pursuant to Sections 1.2, 3.3 and 9.3 of the Indenture to the effect, among other things, that all conditions precedent provided for in the Indenture to the Trustee’s execution and
delivery of this Third Supplemental Indenture have been complied with. All acts and things necessary have been done and performed to make this Third Supplemental Indenture enforceable in accordance with its terms, and the execution and delivery of
this Third Supplemental Indenture has been duly authorized in all respects. 
 NOW,
THEREFORE: For and in consideration of the premises and the purchase of the LoTSSM (as herein defined) by the
Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the LoTSSM, as follows: 
 
ARTICLE I 
 
DEFINITIONS 
 Section 1.01. 
Definitions. For all purposes of this Third Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
 (a) The terms defined in the Indenture (as defined herein) have the same meaning when used in this Third Supplemental Indenture unless otherwise defined
herein. 
 (b) The terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the
singular. 
 (c) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this
Third Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision, and any reference to an Article, Section or other subdivision refers to an Article, Section or other subdivision of this Third Supplemental
Indenture. 

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 (d) Any reference herein to “interest” shall include any Additional Interest. 
 In addition, the following terms used in this Third Supplemental Indenture have the following respective meanings: 
 “Applicable Spread” means 0.50% in the case of a Tax Event or a Rating Agency Event and 0.25% in all other cases. 
 “Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in The City of New
York are authorized or required by law or executive order to remain closed, (iii) a day on which the corporate trust office of the Trustee is closed or (iv) on or after May 15, 2017, a day that is not a London Banking Day. 

“Calculation Agent” means, with respect to the LoTSSM, The Bank of New York, or any other firm appointed by the Corporation, acting as calculation agent in respect of the
LoTSSM. 
 “Commercially Reasonable Efforts” to sell Qualifying Capital Securities means commercially reasonable efforts to complete the offer and sale of Qualifying Capital Securities to Persons other than Subsidiaries in public
offerings or private placements. The Corporation shall not be considered to have made Commercially Reasonable Efforts to effect a sale of Qualifying Capital Securities if it determines not to pursue or complete such sale due to pricing coupon,
dividend rate or dilution considerations. 
 “Corporation” means the Person named as the “Corporation” in the
first paragraph of this instrument until a successor corporation, partnership or trust shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Corporation” shall mean such successor corporation,
partnership or trust. 
 “Deferral Period” means the period
commencing on an Interest Payment Date with respect to which the Corporation elects to defer interest pursuant to Section 2.05 and ending on the earlier of (i) the tenth anniversary of that Interest Payment Date and (ii) the next
Interest Payment Date on which the Corporation has paid all deferred and unpaid amounts (including compounded interest on such deferred amounts) and all other accrued interest on the LoTSSM. 
 “Final Maturity Date” has the
meaning specified in Section 2.02(b). 
 “Fixed Rate Interest Period” means the period beginning on and including
May 3, 2007 and ending on but excluding May 15, 2017. 
 “Floating Rate Interest Period” means the period
beginning on and including May 15, 2017 and ending on but excluding the next Interest Payment Date and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next Interest Payment Date.

 “Third Supplemental Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more agreements supplemental hereto. 
 “Indenture” has the meaning specified in the
Recitals. 
 “Interest Payment Dates” shall have the meaning specified in Section 2.04. 
  

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 “Interest Period” means a Semi-Annual Interest Period or a Floating Rate Interest
Period, as the case may be. 
 “LIBOR Determination Date” means the second London Banking Day immediately preceding the
first day of the relevant Floating Rate Interest Period. 
 “London Banking Day” means any day on which commercial banks are
open for general business (including dealings in deposits in U.S. dollars) in London. 
 “LoTSSM” has the meaning specified
in Section 2.01. 
 “Make-Whole Redemption Price” means
the present value of a principal payment on May 15, 2017 and scheduled payments of interest that would have accrued from the Redemption Date to May 15, 2017 on the LoTSSM being redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal
to the Treasury Rate (as determined and provided to the Corporation by the Treasury Dealer) plus the Applicable Spread, plus accrued and unpaid interest to the Redemption Date, determined by the Treasury Dealer. 
 “Market Disruption Event” means, with respect to the issuance or sale of Qualifying Capital Securities pursuant to Section 2.02,
the occurrence or existence of any of the following events or sets of circumstances: 
 (i) Trading in securities generally,
or shares of the Corporation’s or the Parent’s securities specifically, on the New York Stock Exchange or any other national securities exchange, or in the over-the-counter market on which the Qualifying Capital Securities are then listed
or traded is suspended or the settlement of such trading generally is materially disrupted or minimum prices are established on any such exchange or market by the Commission, by the relevant exchange or by any other regulatory body or governmental
agency having jurisdiction and such suspension, disruption, or the establishment of such minimum price, has a material adverse effect on trading in, and the issuance and sale of, Qualifying Capital Securities; 
 (ii) The Corporation would be required to obtain the consent or approval of the Parent’s shareholders or a regulatory body
(including, without limitation, any securities exchange) or governmental authority to issue or sell Qualifying Capital Securities pursuant to Section 2.02 and such consent or approval has not yet been obtained notwithstanding the
Corporation’s commercially reasonable efforts to obtain such consent or approval; 
 (iii) A banking moratorium occurs or
shall have been declared by the federal or state authorities of the United States such that market trading in the Qualifying Capital Securities is disrupted or has ceased; 
 (iv) A material disruption shall have occurred in commercial banking or securities settlement or clearance services in the United States
such that market trading in the Qualifying Capital Securities is disrupted or has ceased; 
 (v) The United States shall have
become engaged in hostilities, there shall have been an escalation in hostilities involving the United States, there shall have been a declaration of a national emergency or war by the United States or there shall have occurred any other national or

  

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international calamity or crisis such that market trading in the Qualifying Capital Securities is disrupted or has ceased; 
 (vi) There shall have occurred such a material adverse change in general domestic or international economic, political or financial
conditions, including, without limitation, as a result of terrorist activities, or the effect of international conditions on the financial markets in the United States shall be such that trading in Qualifying Capital Securities shall have been
materially disrupted or has ceased; 
 (vii) An event occurs and is continuing as a result of which the offering document for
such offer and sale of Qualifying Capital Securities would, in the reasonable judgment of the Corporation, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and either (x) the disclosure of that event at such time, in the reasonable judgment of the Corporation, is not otherwise required by law and would have a material adverse effect on the business of the
Corporation or the Parent or (y) the disclosure relates to a previously undisclosed, proposed or pending material business transaction, provided that no single suspension period contemplated by this clause (vii) shall exceed
90 consecutive days and multiple suspension periods contemplated by this clause (vii) shall not exceed an aggregate of 180 days in any 360-day period; or 
 (viii) The Corporation reasonably believes that the offering document for such offer and sale of Qualifying Capital Securities would not
be in compliance with a rule or regulation of the Commission (for reasons other than those referred to in clause (vii) above), and the Corporation determines that it is unable to comply with such rule or regulation or such compliance is unduly
burdensome, provided that no single suspension period contemplated by this clause (viii) shall exceed 90 consecutive days and multiple suspension periods contemplated by this clause (viii) shall not exceed an aggregate of
180 days in any 360-day period. 
 “Parent” means Everest Re Group, Ltd., a Bermuda corporation. 
 “Parity Securities” means debt securities or guarantees of the Corporation that
rank upon liquidation, dissolution or winding-up of the Corporation on a parity with the LoTSSM. 
 “Qualifying Capital Securities” has the meaning specified in the Replacement Capital Covenant. 
 “Qualifying Preferred Stock” has the meaning specified in the Replacement Capital Covenant. 
 “Quarterly Interest Payment Date” shall have the meaning specified in Section 2.04. 
 “Rating Agency Event” means a change by any nationally recognized statistical
rating organization within the meaning of Rule 15c3-1 under the Exchange Act that currently publishes a rating for the Corporation (in this definition, a “rating agency”) to its equity credit criteria for securities such as the
LoTSSM, as such criteria was in effect on April 26, 2007 (in this definition, the “current
criteria”), which change results in (x) the length of time for which such current criteria are scheduled to be in effect being shortened with respect to the LoTSSM, or (y) a lower equity credit being given to the LoTSSM as of the date of such change than the equity credit that would have been assigned to the LoTSSM as of the date of such change by such rating agency pursuant to its current criteria. 
  

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 “Regular Record Date” means (i) with respect to a Semi-Annual Interest Payment
Date, the May 1 or November 1, as the case may be (whether or not a Business Day), next preceding the relevant Interest Payment Date, and (ii) with respect any Quarterly Interest Payment Date, the
February 1, May 1, August 1 or November 1 as the case may be (whether or not a Business Day), next preceding the relevant Interest Payment Date. 
 “Repayment Date” means the Scheduled Maturity Date and each Quarterly Interest
Payment Date thereafter until the Corporation shall have repaid or redeemed all of the LoTSSM. 
 “Replacement Capital Covenant” means the Replacement Capital Covenant, dated as of May 3, 2007, by the Corporation, as the same may
be amended or supplemented from time to time in accordance with the provisions thereof and Section 2.02(a)(vii). 
 “Reuters
Page LIBOR01” means the display so designated on the Reuters 3000 Xtra (or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purpose of displaying
rates or prices comparable to the London Interbank Offered rate for U.S. dollar deposits). 
 “Scheduled Maturity Date” has
the meaning specified in Section 2.02(a)(i). 
 “Securities
Registrar” means, with respect to the LoTSSM, The Bank of New York, or any other firm appointed by the
Corporation, acting as securities registrar for the LoTSSM. 
 “Securities Registrar Office” means the office of the applicable Securities Registrar at which at any particular time its corporate
agency business shall principally be administered, which office at the date hereof in the case of The Bank of New York, in its capacity as Securities Registrar under the Indenture, is located at 101 Barclay Street, New York, New York 10286.

 “Semi-Annual Interest Payment Date” shall have the meaning specified in Section 2.04. 
 “Semi-Annual Interest Period” means the period beginning on and including May 3, 2007 and ending on but excluding the first
Interest Payment Date and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next Interest Payment Date until May 15, 2017. 
 “Tax Event” means the receipt by the Corporation of an opinion of counsel
experienced in such matters to the effect that, as a result of any: (i) amendment to, clarification of, or change (including any prospective change) in the laws or regulations of the United States or any political subdivision or taxing
authority of or in the United States that is effective on or after April 26, 2007, (ii) proposed change in those laws or regulations that is announced after April 26, 2007, (iii) official administrative decision or judicial
decision or administrative action or other official pronouncement (including a private letter ruling, technical advice memorandum or other similar pronouncement) by any court, government agency or regulatory authority interpreting or applying those
laws or regulations that is announced on or after May 3, 2007, or (iv) threatened challenge asserted in connection with an audit of the Corporation or any of its Subsidiaries, or a threatened challenge asserted in writing against any tax
payer that has raised capital through the issuance of securities that are substantially similar to the LoTSSM that
occurs on or after May 3, 2007, there is more than an insubstantial risk that interest payable by the Corporation on the LoTSSM is not, or within 90 days of the date of such opinion will not be, deductible by the Corporation, in whole or in part, for United States federal income tax purposes. 
  

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 “Trading Day” means any day except for a Saturday, Sunday or a day on which the
Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities. 
 “Three-Month LIBOR” means, with respect to any Floating Rate Interest Period, the rate (expressed as a percentage per annum) for
deposits in U.S. dollars for a three-month period commencing on the first day of that Floating Rate Interest Period that appears on Reuters Page LIBOR01 as of 11:00 a.m., London time, on the LIBOR Determination Date for that Floating Rate
Interest Period. If such rate does not appear on Reuters Page LIBOR01, Three-Month LIBOR will be determined on the basis of the rates at which deposits in U.S. dollars for a three-month period commencing on the first day of that Floating Rate
Interest Period and in a principal amount of not less than $1,000,000 are offered to prime banks in the London interbank market by four major banks in the London interbank market selected by the Calculation Agent (after consultation with the
Corporation), at approximately 11:00 a.m., London time, on the LIBOR Determination Date for that Floating Rate Interest Period. The Calculation Agent will request the principal London office of each of these banks to provide a quotation of its
rate. If at least two such quotations are provided, Three-Month LIBOR with respect to that Floating Rate Interest Period will be the arithmetic mean (rounded upward if necessary to the nearest whole multiple of 0.00001%) of such quotations. If fewer
than two quotations are provided, Three-Month LIBOR with respect to that Floating Rate Interest Period will be the arithmetic mean (rounded upward if necessary to the nearest whole multiple of 0.00001%) of the rates quoted by three major banks in
New York City selected by the Calculation Agent (after consultation with the Corporation), at approximately 11:00 a.m., New York City time, on the first day of that Floating Rate Interest Period for loans in U.S. dollars to leading European
banks for a three-month period commencing on the first day of that Floating Rate Interest Period and in a principal amount of not less than $1,000,000. However, if fewer than three banks selected by the Calculation Agent to provide quotations are
quoting as described above, Three-Month LIBOR for that Floating Rate Interest Period will be the same as Three-Month LIBOR as determined for the previous Floating Rate Interest Period or, in the case of the Floating Rate Interest Period beginning on
May 15, 2017, 5.215%. The establishment of Three-Month LIBOR for each Floating Rate Interest Period by the Calculation Agent shall (in the absence of manifest error) be final and binding. 
 “Treasury Dealer” means Citigroup Global Markets Inc. (or its successor) or, if Citigroup Global Markets Inc. (or its successor) refuses
to act as Treasury Dealer for the purpose of determining the Make-Whole Redemption Price or ceases to be a primary U.S. Government securities dealer, another nationally recognized investment banking firm that is a primary U.S. Government securities
dealer specified by the Corporation for these purposes. 
 “Treasury Price” means, with respect to a Redemption Date, the
bid-side price for the Treasury Security as of the third Trading Day preceding the Redemption Date, as set forth in the daily statistical release (or any successor release) published by the Wall Street Journal in the table entitled “Treasury
Bonds, Notes, and Bills,” as determined by the Treasury Dealer, except that: (i) if that release (or any successor release) is not published or does not contain that price information on that Trading Day, or (ii) if the Treasury
Dealer determines that the price information is not reasonably reflective of the actual bid-side price of the Treasury Security prevailing at 3:30 p.m., New York City time, on that Trading Day, then “Treasury Price” will
instead mean the bid-side price for the Treasury Security at or around 3:30 p.m., New York City time, on that Trading Day (expressed on a next Trading Day settlement basis) as determined by the Treasury Dealer through such alternative means as
are commercially reasonable under the circumstances. 
  

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 “Treasury Rate” means, with respect to a Redemption Date, the semi-annual equivalent
yield to maturity of the Treasury Security that corresponds to the Treasury Price (calculated by the Treasury Dealer in accordance with standard market practice and computed as of the second Trading Day preceding the Redemption Date). 
 “Treasury Security” means the United States Treasury security that the Treasury
Dealer determines would be appropriate to use, at the time of determination and in accordance with standard market practice, in pricing the LoTSSM being redeemed in a tender offer based on a spread to United States Treasury yields. 
 
ARTICLE II 
 
GENERAL TERMS AND CONDITIONS OF THE LoTSSM 
 Section 2.01. 
Designation, Principal Amount and Authorized Denominations. (a) Designation. Pursuant to Sections 2.1 and 3.1 of the Indenture, there is hereby established a series of Securities of the Corporation
designated as the 6.60% Fixed to Floating Rate Long Term Subordinated Notes (LoTSSM) due 2067 (the
“LoTSSM”), the principal amount of which to
be issued shall be in accordance with Section 2.01(b) and as set forth in any Corporation Order for the authentication and delivery of LoTSSM pursuant to the Indenture, and the form and terms of which shall be as set forth hereinafter. 
 (b) Principal Amount. LoTSSM in an initial aggregate principal amount of $400,000,000 shall, upon execution of this Third Supplemental Indenture, be executed by the Corporation and
delivered to the Trustee or an Authenticating Agent for authentication, and the Trustee or an Authenticating Agent shall thereupon authenticate and deliver said LoTSSM in accordance with a Corporation Order. Additional LoTSSM may be issued pursuant to this Third Supplemental Indenture on the same terms and conditions as the LoTSSM issued under this Third Supplemental Indenture in all respects, except for any difference in the issue date, issue price and interest accrued prior to the issue date of the additional LoTSSM, and with the same CUSIP number as the LoTSSM theretofore issued under this Third Supplemental Indenture so long as such additional LoTSSM are fungible for U.S. tax purposes with the LoTSSM issued as of the date of this Third Supplemental Indenture. Any additional LoTSSM issued
under this Third Supplemental Indenture will rank equally and ratably in right of payment with the LoTSSM issued on
the date of this Third Supplemental Indenture and together will be treated as a single series of LoTSSM for all
purposes under the Indenture and this Third Supplemental Indenture. 
 (c)
Authorized Denominations. The denominations in which LoTSSM shall be issuable is $1,000 principal amount and
integral multiples thereof. 
 Section 2.02. 
Repayment. 
 (a) Scheduled Maturity Date. 
 (i) The principal amount of, and all accrued and unpaid interest on, the
LoTSSM shall be payable in full on May 15, 2037 or, if such day is not a Business Day, the following Business
Day (the “Scheduled Maturity Date”); provided, however, that in the event the Corporation has delivered an Officers’ Certificate to the Trustee pursuant to clause (v) of this Section 2.02(a) in connection with
the Scheduled Maturity Date, (x) the principal amount of LoTSSM payable on the Scheduled Maturity Date, if any,
shall be the principal amount set forth in the notice of 

  

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repayment, if any, accompanying such Officers’ Certificate, (y) such principal amount of LoTSSM shall be repaid on the Scheduled Maturity Date pursuant to Article V, and (z) subject to clause (ii) of this Section 2.02(a), the
remaining LoTSSM shall remain Outstanding and shall be payable on the immediately succeeding Quarterly Interest
Payment Date or such earlier date on which they are redeemed pursuant to Article IV, become due and payable pursuant to Section 5.2 of the Indenture or on the Final Maturity Date. The entire principal amount of the LoTSSM Outstanding will be due and payable on the Scheduled Maturity Date in the event the Corporation does not deliver an
Officers’ Certificate to the Trustee on or before the 10th Business Day immediately preceding the Scheduled
Maturity Date. All accrued and unpaid interest, including deferred interest and Additional Interest on the principal amount of any Outstanding LoTSSM shall be due and payable on the date the Corporation repays such principal amount of the Outstanding LoTSSM. 
 (ii) In the event
the Corporation has delivered an Officers’ Certificate to the Trustee pursuant to clause (v) of this Section 2.02(a) in connection with any Quarterly Interest Payment Date, the principal amount of the LoTSSM repayable on such Quarterly Interest Payment Date shall be the principal amount set forth in the notice of repayment, if any,
accompanying such Officers’ Certificate, and shall be repaid on such Quarterly Interest Payment Date pursuant to Article V, and the remaining principal amount of the LoTSSM shall remain Outstanding and shall be payable on the immediately succeeding Quarterly Interest Payment Date (subject to the next succeeding sentence) or such
earlier date on which such principal amount of the LoTSSM is redeemed pursuant to Article IV, become due and
payable pursuant to Section 5.2 of the Indenture or on the Final Maturity Date. The entire principal amount of the LoTSSM Outstanding will be due and payable on any Quarterly Interest Payment Date in the event the Corporation does not deliver an Officers’ Certificate to the Trustee on or before the 10th Business Day immediately preceding such Interest Payment Date. All accrued and unpaid interest, including deferred interest and Additional Interest on
the principal amount of any Outstanding LoTSSM shall be due and payable on the date the Corporation repays such
principal amount of the Outstanding LoTSSM. 
 (iii) The obligation of the Corporation to repay the LoTSSM pursuant to this Section 2.02(a) on any date prior to the Final Maturity Date shall be subject to its obligations under
Article XIV of the Indenture to the holders of Senior Indebtedness. 
 (iv) Until the LoTSSM are paid in full: 
 (A) the Corporation shall use Commercially Reasonable Efforts, subject to a Market
Disruption Event, to raise sufficient proceeds from the issuance of Qualifying Capital Securities during a 180-day period ending on a date determined by the Corporation not more than 15 and not less than 10 Business Days prior to the Scheduled
Maturity Date to permit repayment of the LoTSSM in full on the Scheduled Maturity Date pursuant to clause (i)
of this Section 2.02(a); and 
 (B) if the Corporation is unable
for any reason to raise sufficient proceeds from the issuance of Qualifying Capital Securities to permit repayment in full of the LoTSSM on the Scheduled Maturity Date (as required by clause (A) immediately above) or any subsequent Quarterly Interest Payment Date, the Corporation shall use Commercially Reasonable Efforts, subject to a Market Disruption
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period ending on a date determined by the Corporation not more than 15 and not less than 10 Business Days prior to the following Quarterly Interest
Payment Date to permit repayment of the LoTSSM in full on such following Quarterly Interest Payment Date pursuant to
clause (i)(z) of this Section 2.02(a); and 
 (C) the
Corporation shall repay a principal amount of the LoTSsm equal to the net proceeds from the issuance of Qualifying
Capital Securities as provided in clause (vi) of this Section 2.02(a) and shall not be entitled or obligated to repay any LoTSSM on the Scheduled Maturity Date or any Quarterly Interest Payment Date except to the extent of such net proceeds. If such net proceeds are not in an integral multiple of $1,000, such repayment shall be in a principal amount
equal to the next lower such integral multiple. If the Corporation fails to deliver to the Trustee the Officers’ Certificate referred to in clause (i) or (ii) of this Section 2.02 by the times provided for herein, the entire
Outstanding principal amount of the LoTSSM shall become due and payable on the Repayment Date notwithstanding the
amount of such net proceeds the Corporation has actually received and the Trustee shall have no duty to investigate the amount of such proceeds the Corporation has actually received. 
 (v) The Corporation shall, if the principal amount to be repaid exceeds the net
proceeds it has received from the issuance of Qualifying Capital Securities pursuant to clause (iv) of this Section 2.02(a) in connection with any Repayment Date, deliver an Officers’ Certificate to the Trustee (which Officers’
Certificate shall be forwarded by the Trustee to each Holder of LoTSSM) on the date determined by the Corporation
pursuant to clause (iv)(A) or (B) of this Section 2.02(a) stating the amount of net proceeds, if any, it received pursuant to clause (iv) above in connection with such Repayment Date. The Corporation shall be excused from its
obligation to use Commercially Reasonable Efforts to sell Qualifying Capital Securities pursuant to clause (iv) of this Section 2.02(a) if such Officers’ Certificate further certifies that: (A) a Market Disruption Event was
existing during the 180-day period preceding the date of such Officers’ Certificate or, in the case of any Repayment Date after the Scheduled Maturity Date, the 90-day period preceding the date of such Officers’ Certificate; and
(B) either (a) the Market Disruption Event continued for the entire 180-day period or 90-day period, as the case may be, or (b) the Market Disruption Event continued for only part of the period but the Corporation was unable after
Commercially Reasonable Efforts to raise sufficient net proceeds during the rest of that period to permit repayment of the LoTSSM in full. Each Officers’ Certificate delivered pursuant to this clause (v), unless no principal amount of LoTSSM is to be repaid on the applicable Repayment Date, shall be accompanied by a notice of repayment pursuant to Section 5.01 setting forth the principal amount of the LoTSSM to be repaid on such Repayment Date, if any, which amount shall be determined after giving effect to clause (vi) of this Section 2.02(a).

 (vi) If the Corporation is obligated to sell Qualifying Capital
Securities and make payments on any outstanding Parity Securities in addition to the LoTSSM, then on any date and
for any period such payments will be made on those other Outstanding securities having the same scheduled maturity date as the LoTSSM, pro rata in accordance with their respective outstanding principal amounts and no such payment shall be made on any other securities having a later scheduled maturity date until the principal of and all accrued and unpaid
interest on the LoTSSM has been paid in full. If the amount of net proceeds that the Corporation raises from the
sale of Qualifying Capital Securities during the relevant 180-day or 90-day period is less than $5 million, the Corporation will not be required to repay any LoTSSM on the Scheduled Maturity Date or the next Quarterly Interest Payment Date, as applicable. On the next Interest Payment Date as of 

  

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which the amount of net proceeds that the Corporation has raised during the 180-day period preceding the date determined by the Corporation pursuant to
clause (iv)(A) or (B) of this Section 2.02(a) (or, if shorter, the period since the Corporation last repaid any principal amount of LoTSSM) is at least $5 million, the Corporation will be required to repay a principal amount of the LoTSSM equal to the entire net proceeds from the sale of Qualifying Capital Securities during such 180-day or shorter period. 
 (vii) The Corporation shall not amend the Replacement Capital Covenant to impose
additional restrictions on the type or amount of Qualifying Capital Securities that the Corporation may include for purposes of determining whether or to what extent the Corporation may repay, redeem or purchase the LoTSSM, except with the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding
LoTSSM. Except as aforesaid, the Corporation may amend or supplement the Replacement Capital Covenant in accordance
with its terms and without the consent of any Holders of the LoTSSM. 
 (b) Final Maturity Date. The principal of, and all accrued and unpaid interest on, all
Outstanding LoTSSM shall be due and payable on May 1, 2067 or, if such date is not a Business Day, the
following Business Day (the “Final Maturity Date”), regardless of the amount of Qualifying Capital Securities the Corporation may have issued and sold by that time. 
 Section 2.03. 
Form. The LoTSSM shall be substantially in the form of Exhibit A attached hereto
and shall be issued in fully registered form without interest coupons. Principal of and interest on the LoTSSM will
be payable, the transfer of such LoTSSM will be registrable and such LoTSSM will be exchangeable for LoTSSM bearing identical terms and provisions, and notices and demands to or upon the Corporation in respect of the LoTSSM and the Indenture may be served at the Corporate Trust Office of the Trustee, and the Corporation appoints the Trustee as its agent for the foregoing purposes, provided that payment of interest may be made at the option of
the Corporation by check mailed to the Holders at such address as shall appear in the Securities Register or by wire transfer in immediately available funds to the bank account number of the Holders specified in writing by the Holders not less than
10 days before the relevant Interest Payment Date and entered in the Securities Register by the Securities Registrar. The LoTSSM may be presented for registration of transfer or exchange at the Securities Registrar Office. The LoTSSM are initially solely issuable as Global Securities. Registered LoTSSM shall be physically
transferred to all beneficial owners in definitive form in exchange for their beneficial interests in a Global Security if the Depositary with respect to such Global Securities notifies the Corporation that it is unwilling or unable to continue as
Depositary for such Global Security or the Depositary ceases to be a clearing agency registered under the Exchange Act, as the case may be, and a successor Depositary is not appointed by the Corporation within 90 days of such notice.

 In addition, beneficial interests in the Global Securities may be exchanged for
definitive certificated LoTSSM upon request by or on behalf of the Depositary in accordance with customary
procedures following the request of a beneficial owner seeking to exercise or enforce its rights under such LoTSSM.
If the Corporation determines at any time that the LoTSSM shall no longer be represented by a Global Security, the
Corporation shall inform the Depositary of such determination who will, in turn, notify participants of their right to withdraw their beneficial interest from the Global Security. If such participants then elect to withdraw their beneficial
interests, the Corporation shall issue certificates in definitive form in exchange for such beneficial interests in the Global Security. Any Global Security, or portion thereof, that is exchangeable pursuant to this Section 2.03 shall be
exchangeable for LoTSSM certificates, as the case may be, registered in the names directed by the Depositary.

  

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 Section 2.04. 
Rate of Interest; Interest Payment Date. 
 (a)
Interest during the Fixed Rate Interest Period. The LoTSSM shall bear interest from and including May 3,
2007 to but excluding May 15, 2017 or any earlier Redemption Date of the LoTSSM, at the rate of 6.60% per
annum, payable as set forth in clause (b) below computed on the basis of a 360-day year comprised of twelve 30-day months. Subject to the other provisions hereof, interest on the LoTSSM during the Fixed Rate Interest Period shall be payable semi-annually in arrears on May 15 and November 15 of each year, commencing on
November 15, 2007 and ending on May 15, 2017 (each such date, a “Semi-Annual Interest Payment Date”). If a scheduled Semi-Annual Interest Payment Date is not a Business Day, the interest payment due on that date shall be
postponed to the next succeeding day that is a Business Day, and no interest will accrue as a result of that postponement 
 (b) Interest during the Floating Rate Interest Period. Commencing on May 15, 2017, the
LoTSSM shall accrue interest at an annual rate of Three-Month LIBOR plus 2.385% (the “Floating
Rate”). The amount of Floating Rate interest payable on the LoTSSM for any Floating Rate Interest Period
will be computed on the basis of a 360-day year and the actual number of days elapsed in the period. Subject to the other provisions hereof, interest on the LoTSSM during the Floating Rate Interest Period shall be payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, commencing on August 15, 2017
(each such date, a “Quarterly Interest Payment Date” and, together with Semi-Annual Interest Payment Dates, each, an “Interest Payment Date”). If a scheduled Quarterly Interest Payment Date is not a Business Day,
such Quarterly Interest Payment Date shall be postponed to the next succeeding day that is a Business Day; provided that if such Business Day is in the next succeeding calendar month, such Quarterly Interest Payment Date shall be the
immediately preceding Business Day. 
 (c) Amounts scheduled for payment but not paid
upon any Interest Payment Date, including amounts not required to be paid due to deferral under the terms of this Third Supplemental Indenture, shall bear Additional Interest, compounded on each Interest Payment Date until paid, from the originally
scheduled payment date therefor at the rate then borne by the LoTSSM. Interest will accrue from and including the
last date in respect of which interest has been paid or duly provided for to but excluding the Interest Payment Date on which the interest is actually paid, except as otherwise provided above with respect to extensions to the next Business Day.

 (d) Interest will be payable to the Persons in whose name the LoTSSM are registered at the close of business on the Regular Record Date for the related Interest Payment Date, except that interest
payable at Maturity shall be paid to the Person to whom principal is paid. 
 Section
2.05. 
Interest Deferral. Solely for purposes of the LoTSSM, the first sentence of the
first paragraph and the entire second and third paragraphs of Section 3.12 of the Indenture shall be deleted and replaced by the following: 
 (a) Option to Defer Interest Payments. 
 (i) So long
as no Event of Default with respect to the LoTSSM has occurred and is continuing, the Corporation shall have the
right at one or more times to defer the payment of interest on the LoTSSM for one or more consecutive Interest
Periods that do not exceed 10 years, provided that no Deferral Period shall extend beyond the Final Maturity Date, the earlier accelerated maturity date of the LoTSSM or other repayment or redemption in full of the LoTSSM. If the Corporation has paid all deferred interest (including Additional Interest) on the LoTSSM, the 

  

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Corporation shall have the right to elect to begin a new Deferral Period pursuant to this Section 2.05. 
 (ii) At the end of any Deferral Period, the Corporation shall pay all deferred
interest on the LoTSSM to the Persons in whose names the LoTSSM are registered in the Securities Register at the close of business on the Regular Record Date with respect to the Interest Payment Date at the end of such
Deferral Period, except as otherwise provided in Section 2.04(d). 
 (iii) The Company may elect to make partial payments
of interest on any Interest Payment Date during any Deferral Period. 
 (b) 
Notice of Deferral. The Corporation shall give written notice of its election to commence or continue any Deferral Period to the Trustee and the Holders of the LoTSSM at least one Business Day and not more than 60 Business Days prior to the next Interest Payment Date. Notice of the Corporation’s election of a Deferral
Period shall be given to the Trustee and each Holder of LoTSSM at such Holder’s address appearing in the
Security Register by first-class mail, postage prepaid. 
 Section 2.06. Events of
Default. (a) (i) Solely for purposes of the LoTSSM, clauses (1) through (3) of
Section 5.1 of the Indenture shall be deleted and replaced by the following: 
  

	 	 (1)
	 default in the payment of interest, including Additional Interest, in full on any LoTSSM for a period of 30 days after the conclusion of a 10-year period following the commencement of any Deferral Period;

  

	 	 (2)
	 default in the payment of principal on the LoTSSM when due, upon redemption, upon a declaration of acceleration, or otherwise, subject to the limitations set forth in Section 2.02 of the Third
Supplemental Indenture to the Indenture; 

  

	 	(3)	[reserved]; 

 (ii) Solely for purposes of the LoTSSM, the first paragraph of Section 5.2 of
the Indenture (beginning with the word “If” and ending with the word “payable.”) shall be deleted and replaced by the following: 
 If an Event of Default specified in clauses (1) or (2) of this
Section 5.1, as amended by Section 2.06 of the Third Supplemental Indenture, with respect to the LoTSSM
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the Outstanding LoTSSM may declare the principal amount of all of the Outstanding LoTSSM
and interest accrued thereon, if any, to be due and payable immediately, by a notice in writing to the Corporation (and to the Trustee if given by the Holders), and upon any such declaration such amount shall become immediately due and payable.

 If an Event of Default specified in clauses (4) or (5) of
Section 5.1, as amended by Section 2.06 of the Third Supplemental Indenture, with respect to the LoTSSM
occurs and is continuing, then the principal amount of all of the Outstanding LoTSSM and interest accrued thereon,
if any, shall automatically become due and payable immediately, without any declaration or other action on the part of the Trustee or any Holder. 
  

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 (b) Solely for purposes of the LoTSSM, clauses (1) and (2) of the first paragraph of Section 5.3 of the Indenture shall be deleted and replaced by
the following: 
  

	 	 (1)
	 default is made in the payment of interest, including Additional Interest, in full on any LoTSSM for a period of 30 days after the conclusion of a 10-year period following the commencement of any Deferral Period, or

  

	 	 (2)
	 default is made in the payment of principal on the LoTSSM when due, upon redemption, upon a declaration of acceleration, or otherwise, subject to the limitations set forth in Section 2.02 of the Third
Supplemental Indenture to the Indenture, 

 (c) The Trustee shall
provide to the Holders of the LoTSSM such notices as it shall from time to time provide with respect to the
LoTSSM under Section 6.2 of the Indenture. 
 (d) Notwithstanding anything to the contrary in the Indenture or this Third Supplemental
Indenture, the Trustee shall have no right or obligation under the Indenture or otherwise to exercise any remedies on behalf of the Holders of the LoTSSM with respect to any default, the breach of which would not constitute an Event of Default with respect to the LoTSSM unless and except to the extent directed in writing to do so by the Holders of a majority in principal amount of the Outstanding LoTSSM in accordance with and subject to the conditions set forth in Sections 5.12 and 6.3(e) of the Indenture. In connection with any such exercise of
remedies, the Trustee shall be entitled to the same immunities and protections and remedial rights (other than acceleration) as if such default were an Event of Default. The Trustee may conclusively assume that Sections 2.05 of this Third
Supplemental Indenture have been complied with unless the Corporation or the Holders of 25% in aggregate principal amount of the LoTSSM have given the Trustee written notice to the contrary. 
 (e) For the avoidance of doubt, and without prejudice to any other remedies that may be available to the Trustee or the Holders of the LoTSSM under the Indenture, no breach by the Corporation of any covenant or obligation under the Indenture with respect to the LoTSSM or the terms of the LoTSSM or the terms of this Third Supplemental Indenture, including the Corporation’s obligations under clause (iv) of Section 2.02(a) or Section 2.05, shall be an Event of Default with respect to the LoTSSM, other than those specified in this Section 2.06; and except as provided herein and in the Indenture with respect to the
occurrence and during the continuance of an Event of Default with respect to the LoTSSM, and as provided in
Section 2.06(c), the Trustee shall be under no duty or obligation to exercise any remedies or otherwise take any action in respect of any other default that may occur under or in respect of this Third Supplemental Indenture or the Indenture.

 (f) The Corporation shall not enter into any supplemental indenture with the
Trustee to add any additional event of default with respect to the LoTSSM to the definition of Event of Default
without the consent of the Holders of at least a majority in aggregate principal amount of Outstanding LoTSSM.

 Section 2.07. 
Securities Registrar; Paying Agent; Delegation of Trustee Duties. 
 (a) The Corporation appoints The Bank of New York, as Securities Registrar and Paying Agent with respect to the LoTSSM. 
  

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 (b) Notwithstanding any provision contained herein, to the extent permitted by applicable law, the
Trustee may delegate its duty to provide such notices and to perform such other duties as may be required to be provided or performed by the Trustee under the Indenture, and, to the extent such obligation has been so delegated, the Trustee shall not
be responsible for monitoring the compliance of, nor be liable for the default, negligence or misconduct of, any such designee. 
 Section 2.08. 
No Sinking Fund. The LoTSSM shall not be subject to any sinking fund or analogous
provisions. 
 Section 2.09. 
Defeasance. Pursuant to Section 13.1 of the Indenture, the Corporation designates that the defeasance provided for under Sections 13.2 and 13.3 of the Indenture shall apply to the LoTSSM. 
 
ARTICLE III 
 
COVENANTS 
 Section 3.01. 
Dividend and Other Payment Stoppages. Solely for purposes of the LoTSSM, the second
and third sentences of the first paragraph of Section 3.12 of the Indenture shall not apply. So long as any LoTSSM remain Outstanding, if an Event of Default with respect to the LoTSSM shall have occurred and then
be continuing or if the Corporation has given notice of its election to defer interest payments on the LoTSSM but
the related Deferral Period has not yet commenced or a Deferral Period is continuing, the Corporation shall not, and shall not permit any Subsidiary of the Corporation to: 
 (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of capital
stock of the Corporation; 
 (b) make any payment of principal of, or interest or
premium, if any, on or repay, purchase or redeem any Parity Securities or any of the Corporation’s debt securities that rank upon the Corporation’s liquidation, dissolution or winding up junior to the LoTSSM; or 
 (c) make any guarantee payments regarding any guarantee issued by the Corporation of securities of
any Subsidiaries if the guarantee ranks upon the Corporation’s liquidation, dissolution or winding up junior to the LoTSSM; 
 provided, however, that the restrictions in clauses (a), (b) and (c) above do not apply to: 
 (i) any purchase, redemption or other acquisition of shares of its capital stock by the Corporation in connection with (A) any
employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more of its employees, officers, directors, consultants or independent contractors, (B) a dividend reinvestment or shareholder purchase plan,
(C) the satisfaction of the Corporation’s obligations pursuant to any contract entered into in the ordinary course of business prior to the beginning of the applicable Deferral Period, or (D) the issuance of the Corporation’s
capital stock, or securities convertible into or exercisable for such capital stock, as consideration in an acquisition transaction the definitive agreement for which is entered into prior to the applicable Deferral Period; 
 (ii) any dividend or distribution by any Subsidiary to the Corporation or any of its other Subsidiaries; 
  

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 (iii) any exchange, redemption or conversion of any class or series of the
Corporation’s capital stock, or the capital stock of one of its Subsidiaries, for any other class or series of its capital stock, or of any class or series of its indebtedness for any class or series of its capital stock; 
 (iv) any purchase of fractional interests in shares of the Corporation’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the securities being converted or exchanged; 
 (v) any declaration of a dividend in
connection with any shareholder rights plan, or the issuance of rights, stock or other property under any shareholder rights plan, or the redemption or purchase of rights pursuant thereto; 
 (vi) any dividend in the form of stock, warrants, options or other rights where the dividend stock or stock issuable upon exercise of such
warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock; 
 (vii) any payment of current or deferred interest on Parity Securities that is made
pro rata to the amounts due on such Parity Securities and the LoTSSM and any payments of deferred interest on Parity
Securities that, if not made, would cause the Corporation to breach the terms of the instrument governing such Parity Securities; or 
 (viii) any payment of principal in respect of Parity Securities having the same
scheduled maturity date as the LoTSSM, as required under a provision of such other Parity Securities that is
substantially the same as the provisions in Section 2.02, and that is made on a pro rata basis among one or more series of Parity Securities (including the LoTSSM) having such a provision and the LoTSSM. 
 
ARTICLE IV 
 
REDEMPTION OF THE LOTSSM 
 Section 4.01. 
Redemption. The LoTSSM shall be redeemable in accordance with Article XI of the
Indenture, except to the extent otherwise provided in this Third Supplemental Indenture: 
 (a) in whole or in part, at the
Corporation’s option, at any time on or after May 15, 2017, including on or after the Scheduled Maturity Date, at the applicable Redemption Price; or 
 (b) in whole but not in part, at the Corporation’s option, at any time prior to May 15, 2017, at the applicable Redemption Price; 
 provided that no partial redemption pursuant to Section 4.01(a) shall be effected (x) unless at
least $25 million aggregate principal amount of the LoTSSM, excluding any LoTSSM held by the Corporation or any of its affiliates, remains Outstanding after giving effect to such redemption and (y) if
the principal amount of the LoTSSM has been accelerated and such acceleration has not been rescinded or unless all
accrued and unpaid interest, including deferred interest, has been paid in full on all Outstanding LoTSSM for all
interest periods terminating on or before the Redemption Date. 
  

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 Section 4.02. 
Redemption Price. The Redemption Price for any redemption pursuant to Section 4.01(a) or (b) will be equal to (1) in the case of any redemption on or after May 15, 2017, 100% of the principal
amount of the LoTSSM being redeemed plus accrued and unpaid interest to the Redemption Date or (2) in the case
of any redemption prior to May 15, 2017, the greater of (i) 100% of the principal amount of the LoTSSM
being redeemed, plus accrued and unpaid interest to the Redemption Date and (ii) the Make-Whole Redemption Price. 
 The Corporation
shall give the Trustee notice of any Redemption Price for a redemption under Section 4.01(b) promptly after the calculation thereof and the Trustee shall not be responsible for any such calculation. 
 
ARTICLE V 
 
REPAYMENT OF LOTSSM 
 Section 5.01. 
Repayments. The Corporation shall notify the Trustee of the principal amount of LoTSSM to be repaid on any Repayment Date pursuant to Section 2.02(a) on the date determined by the Corporation pursuant to clause (iv)(A) or (B) of Section 2.02(a). 
 Section 5.02. 
Selection of the LoTSSM to be Repaid. If less than all the LoTSSM are to be repaid on any Repayment Date (unless the LoTSSM are issued in the form of a Global Security), the particular LoTSSM to be repaid shall be selected not more than 15 Business Days prior to such Repayment Date by the Trustee, from the Outstanding LoTSSM not previously repaid or called for redemption or repayment, by lot or such other method as the Trustee shall deem fair and
appropriate and which may provide for the selection for repayment of a portion of the principal amount of any LoTSSM, provided that the portion of the principal amount of any LoTSSM not repaid shall be in an
authorized denomination (which shall not be less than the minimum authorized denomination). 
 The Trustee shall promptly notify the Corporation in writing of the LoTSSM selected
for partial repayment and the principal amount thereof to be repaid. For all purposes hereof, unless the context otherwise requires, all provisions relating to the repayment of LoTSSM shall relate, in the case of any LoTSSM repaid or to be repaid only in part, to the portion of the principal amount of such LoTSSM which
has been or is to be repaid. 
 Section 5.03. 
Notice of Repayment. Notice of repayment shall be in substantially the form accompanying the Officers’ Certificate delivered to the Trustee under Section 2.02(a)(i) or (ii), as applicable, and shall be given
by first-class mail, postage prepaid, mailed not earlier than the 15th Business Day, and not later than the
10th Business Day, prior to the Repayment Date, to each Holder of LoTSSM to be repaid, at the address of such Holder as it appears in the Security Register. 
 Each notice of repayment shall identify the LoTSSM to be repaid (including the LoTSSM’s CUSIP number, if a CUSIP number has been assigned to the LoTSSM) and shall state:

 (a) the Repayment Date; 
 (b) if less than all Outstanding LoTSSM are to be repaid, the identification (and, in the case of partial repayment, the respective principal amounts) of the particular LoTSSM to be repaid; 
  

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 (c) that on the Repayment Date, the principal
amount of the LoTSSM to be repaid will become due and payable upon each such LoTSSM or portion thereof, and that interest thereon, if any, shall cease to accrue on and after said date; and 
 (d) the place or places where such LoTSSM are to be surrendered for payment of the principal amount thereof. 
 Notice of repayment shall be given by the Corporation, or upon Corporation Request given to the
Trustee in sufficient time in the opinion of the Trustee to permit the Trustee to give such notice on a timely basis, by the Trustee in the name and at the expense of the Corporation and shall be irrevocable. The notice if mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether or not the Holders receive such notice. In any case, a failure to give such notice by mail or any defect in the notice to any Holder of any LoTSSM designated for repayment as a whole or in part shall not affect the validity of the proceedings for the repayment of any other
LoTSSM. 
 Section 5.04. 
Deposit of Repayment Amount. On or prior to 11:00 a.m., New York City time, on the Repayment Date specified in the notice of repayment given as provided in Section 5.03, the Corporation will deposit with the
Trustee or with one or more Paying Agents (or if the Corporation is acting as its own Paying Agent, the Corporation will segregate and hold in trust as provided in Section 10.3 of the Indenture) an amount of money, in immediately available
funds, sufficient to pay the principal amount of, and any accrued interest on, all the LoTSSM which are to be repaid
on that date. 
 Section 5.05. 
Repayment of LoTSSM. If any
notice of repayment has been given as provided in Section 5.03, the LoTSSM or portion of the LoTSSM with respect to which such notice has been given shall become due and payable on the date and at the place or places stated in
such notice. On presentation and surrender of such LoTSSM at a Place of Payment in said notice specified, the said
LoTSSM or the specified portions thereof shall be paid by the Corporation at their principal amount, together with
accrued interest to but excluding the Repayment Date; provided that installments of interest whose Stated Maturity is prior to the Repayment Date will be payable to the Holders of such LoTSSM, registered as such at the close of business on the relevant Regular Record Dates according to their terms and the provisions of Section 10.1 of the
Indenture and Section 2.04(d). Upon presentation of any LoTSSM repaid in part only, the Corporation shall
execute and the Trustee shall authenticate and make available for delivery to the Holders thereof, at the expense of the Corporation, a new LoTSSM, of authorized denominations, in aggregate principal amount equal to the portion of the LoTSSM not repaid and so presented and having the same Scheduled Maturity Date and other terms. If a Global Security is so surrendered, such new LoTSSM will also be a new Global Security. 
 If any LoTSSM required to be repaid shall not be so repaid upon surrender thereof, the principal of such LoTSSM shall, until paid, bear interest from the applicable Repayment Date at the rate prescribed therefor in the LoTSSM. 
  

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ARTICLE VI 
 
SUPPLEMENTAL INDENTURES 
 Section 6.01. 
Supplemental Indentures Without Consent of Holders. Solely for purposes of the LoTSSM, clause (5) of Section 9.1 of the Indenture shall not apply. 
 
ARTICLE VII 
 
SUBORDINATION 
 Section 7.01. The subordination
provisions of Article XIV of the Indenture will apply to the LoTSSM, except that for the purposes of the
LoTSSM (but not for the purposes of any other Securities unless specifically set forth in the terms of such
Securities), “Senior Indebtedness” shall mean the principal of, premium, if any, and unpaid interest on the following, whether outstanding at the date hereof or thereafter incurred or created: 
 (i) all obligations of the Corporation (other than obligations pursuant to the Indenture and the Securities of any series) for money
borrowed; 
 (ii) all obligations of the Corporation evidenced by notes, debentures, bonds or other similar instruments,
including obligations incurred in connection with the acquisition of property, assets or businesses and including all other debt securities issued by the Corporation to any trust or a trustee of such trust, or to a partnership or other Affiliate
that acts as a financing vehicle for the Corporation, in connection with the issuance of securities by such vehicles; 
 (iii)
all obligations of the Corporation under leases required or permitted to be capitalized under generally accepted accounting principles applicable to the Corporation; 
 (iv) all reimbursement obligations of the Corporation with respect to letters of credit, bankers’ acceptances or similar facilities
issued for the account of the Corporation; 
 (v) all obligations of the Corporation issued or assumed as the deferred
purchase price of property or services, including all obligations under master lease transactions pursuant to which the Corporation or any Subsidiary has agreed to be treated as owner of the subject property for federal income tax purposes (but
excluding trade accounts payable or accrued liabilities arising in the ordinary course of business); 
 (vi) all payment
obligations of the Corporation under interest rate swap or similar agreements or foreign currency hedge, exchange or similar agreements at the time of determination, including any such obligations incurred solely to act as a hedge against increases
in interest rates that may occur under the terms of other outstanding variable or floating rate indebtedness of the Corporation; 
 (vii) all obligations of the types referred to in clauses (i) through (vi) above of another Person and all dividends of another Person the payment of which, in either case, the Corporation has assumed or guaranteed or for which
the Corporation is responsible or liable, directly or indirectly, jointly or severally, as obligor, guarantor or otherwise; 
  

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 (viii) all obligations of the types referred to in clauses (i) through (vii) of
another Person secured by any lien on any of the properties or assets of the Corporation (whether or not such obligation is assumed by the Corporation), the amount of such obligation being deemed to be the lesser of the value of such property or
asset or the amount of the obligation so secured; 
 (ix) all compensation, reimbursement and indemnification obligations of
the Corporation to the Trustee pursuant to this Indenture; and 
 (x) all amendments, modifications, renewals, extensions,
refinancings, replacements and refundings of any of the foregoing types of indebtedness. 
 Notwithstanding the foregoing, for the purposes of the LoTSSM (but not for the purposes of any other
Securities unless specifically set forth in the terms of such Securities), “Senior Indebtedness” will exclude the following: 
 (1) indebtedness incurred for the purchase of goods, materials or property, or for services obtained in the ordinary course of business or for other liabilities arising in the ordinary course of business; 

(2) any obligation which by its terms expressly provides that it is not superior in right of payment to the Securities of any series;
and 
 (3) any indebtedness of the Corporation owed to a Subsidiary. 
 
ARTICLE VIII 
 
MISCELLANEOUS 
 Section 8.01. 
Effectiveness. This Third Supplemental Indenture will become effective upon its execution and delivery. 
 Section 8.02. 
Effect of Recitals. The recitals contained herein and in the LoTSSM, except the
Trustee’s certificates of authentication, shall be taken as the statements of the Corporation, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the
validity or sufficiency of this Third Supplemental Indenture or of the LoTSSM. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the Corporation of the LoTSSM or the
proceeds thereof. 
 Section 8.03. 
Ratification of Indenture. The Indenture as supplemented by this Third Supplemental Indenture, is in all respects ratified and confirmed, and this Third Supplemental Indenture shall be deemed part of the Indenture in
the manner and to the extent herein and therein provided. 
 Section 8.04. 
Tax Treatment. The Corporation agrees, and by acceptance of a LoTSSM or a beneficial
interest in a LoTSSM each Holder of a LoTSSM and any person acquiring a beneficial interest in a LoTSSM agrees, to treat the LoTSSM as indebtedness for United States
federal income tax purposes. 
  

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 Section 8.05. 
Governing Law. This Third Supplemental Indenture, the Indenture as supplemented hereby and the LoTSSM shall be governed by and construed in accordance with the laws of the State of New York without regard to conflicts of laws principles thereof. 
 Section 8.06. 
Severability. In case any provision in this Third Supplemental Indenture, the Indenture as supplemented hereby or in the LoTSSM shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 * * * 
 This instrument may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed
as of the day and year first above written. 
  

					
	EVEREST REINSURANCE
HOLDINGS, INC.
		
	 By:  
	 	/S/ CRAIG E. EISENACHER
		 	 
		 	Name:  	 	Craig E. Eisenacher
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

					
	Attest:  	 	 /S/ SANJOY MUKHERJEE

		 	Name:  	 	Sanjoy Mukherjee
		 	Title:	 	Senior Vice President, General Counsel and Corporate Secretary

  

					
	THE BANK OF NEW YORK,
as Trustee
		
	 By:
	 	/S/ JAMES HEANEY
		 	 
		 	Name:  	 	James Heaney
		 	Title:	 	Vice President

Table of Contents

 EXHIBIT A 
 [FACE OF LOTSSM] 
 [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) OR A NOMINEE OF THE DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS SECURITY IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (55 WATER STREET, NEW YORK) TO EVEREST REINSURANCE HOLDINGS, INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]* 
 EVEREST REINSURANCE HOLDINGS, INC. 
 6.60% Fixed to Floating Rate Long Term Subordinated Note (LOTSSM) due 2067 
  

			
	 No.
 Issue Date:
	  	 CUSIP: 299808AE5
 Principal Amount: $        

 EVEREST REINSURANCE HOLDINGS, INC., a corporation organized and existing under the laws of
Delaware (hereinafter called the “Corporation”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to [CEDE & CO]*, or registered assigns, the
principal sum of Dollars ($        ), [as such principal sum may be reduced from time to time as set forth on Schedule I hereto]*, and all accrued and unpaid interest thereon on May 15, 2037, or if
such day is not a Business Day, the following Business Day (the “Scheduled Maturity Date”) or any subsequent Interest Payment Date (as hereinafter defined) to the extent set forth in the Third Supplemental Indenture (as hereinafter
defined). If that amount is not paid in full on the 
  

	*	 Insert in Global Securities only. 

  

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Scheduled Maturity Date or any subsequent Interest Payment Date, the remaining amount, together with accrued and unpaid interest thereon, will be due and
payable on the Final Maturity Date. The Final Maturity Date will be May 1, 2067, or if such day is not a Business Day, the following Business Day. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to those
terms in the Indenture (as hereinafter defined). 
 The Corporation further promises to pay interest on said Outstanding principal sum from
and including May 3, 2007, or from and including the most recent Interest Payment Date on which interest has been paid or duly provided for, semi-annually (subject to deferral as set forth herein and in the Third Supplemental Indenture) in
arrears on May 15 and November 15 of each year, commencing on November 15, 2007, at the rate of 6.60% per annum (computed on the basis of a 360-day year comprised of twelve 30-day months) to but excluding May 15, 2017 or an
earlier Redemption Date of this Security, and thereafter to pay interest on said Outstanding principal sum quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, commencing on August 15, 2017
(each such date and, together with the May 15 and November 15 of each year in the case of semi-annual payments, an “Interest Payment Date”), at a floating annual rate equal to Three-Month LIBOR plus 2.385% (computed on the basis
of a 360-day year and the actual number of days elapsed), until the principal hereof shall have become due and payable, plus Additional Interest, if any, until the principal hereof is paid or duly provided for or made available for payment. Accrued
interest that is not paid on the applicable Interest Payment Date, including interest deferred pursuant to Section 2.05 of the Third Supplemental Indenture, will bear Additional Interest, to the extent permitted by law, at the interest rate in
effect for this Security from time to time, from the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date. In the event that any Semi-Annual Interest Payment Date on which interest is payable on this Security is not a
Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day with the same force and effect as if made on the date the payment was originally payable, and no interest will accrue as a
result of that postponement. In the event that any Quarterly Interest Payment Date on which interest is payable on this Security is not a Business Day, then such Quarterly Interest Payment Date shall be postponed to the next succeeding day that is a
Business Day, provided that if such Business Day is in the next succeeding calendar month, such Quarterly Interest Payment Date shall be the immediately preceding Business Day. Interest will accrue to but excluding the date that interest is actually
paid. A “Business Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed, (iii) a
day on which the corporate trust office of the Trustee, is closed for business or (iv) on or after May 15, 2017, a day that is not a London Banking Day. The interest installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date next preceding the relevant Interest Payment Date, which, with respect to a
Semi-Annual Interest Payment Date, shall be May 1 or November 1, as the case may be, immediately preceding such Semi-Annual Interest Payment Date and, with respect to a 

  

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Quarterly Interest Payment Date, February 1, May 1, August 1 or November 1, as the case may be, preceding such Quarterly Interest Payment
Date. Any such interest installment not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security is registered at the close
of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided
in the Indenture. 
 So long as no Event of Default with respect to the Securities of this series has occurred and is continuing, the
Corporation shall have the right at any time or from time to time during the term of this Security to defer payment of interest on this Security for one or more consecutive interest payment periods (each a “Deferral Period”) that do not
exceed 10 years, during which Deferral Periods the Corporation shall have the right, subject to Section 2.05 of the Third Supplemental Indenture, to make partial payments of interest on any Interest Payment Date, and at the end of which
the Corporation shall pay all interest then accrued and unpaid (together with Additional Interest thereon to the extent permitted by applicable law); provided, however, that no Deferral Period shall extend beyond the Final Maturity Date, or the
earlier accelerated maturity date of this Security or other repayment or redemption in full of this Security. Upon the termination of any Deferral Period and upon the payment of all deferred interest then due, the Corporation may elect to begin a
new Deferral Period, subject to the above requirements. Deferred interest on this Security will bear interest at the then applicable interest rate, compounded on each Interest Payment Date, subject to applicable law. No interest shall be due and
payable during a Deferral Period except at the end thereof. 
 So long as any
Securities of this series remain Outstanding, if an Event of Default with respect to the LoTSSM shall have occurred
and then be continuing or if the Corporation has given notice of its election to defer interest payments on the Securities of this series but the related Deferral Period has not yet commenced or a Deferral Period is continuing, the Corporation shall
not, and shall not permit any Subsidiary of the Corporation to, (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of the Corporation’s capital
stock, (ii) make any payment of principal of, or interest or premium, if any, on or repay, purchase or redeem any Parity Securities or any debt securities of the Corporation that rank upon the Corporation’s liquidation, dissolution or
winding-up junior to this Security or (iii) make any guarantee payments regarding any guarantee issued by the Corporation of the securities of any Subsidiary if the guarantee ranks upon the Corporation’s liquidation, dissolution or
winding-up junior to this Security (other than (a) any purchase, redemption or other acquisition of shares of the Corporation’s capital stock by the Corporation in connection with (1) any employment contract, benefit plan or other
similar arrangement with or for the benefit of any one or more of its employees, officers, directors, consultants or 

  

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independent contractors, (2) a dividend reinvestment or shareholder purchase plan, (3) the satisfaction of the Corporation’s obligations
pursuant to any contract the definitive agreement for which is entered into in the ordinary course of business prior to the beginning of the applicable Deferral Period, or (4) the issuance of the Corporation’s capital stock, or securities
convertible into or exercisable for such capital stock, as consideration in an acquisition transaction entered into prior to the applicable Deferral Period, (b) any dividend or distribution by any Subsidiary to the Corporation or any of its
other Subsidiaries, (c) any exchange, redemption or conversion of any class or series of the Corporation’s capital stock, or the capital stock of one of its Subsidiaries, for any other class or series of its capital stock, or of any class
or series of its indebtedness for any class or series of its capital stock, (d) any purchase of fractional interests in shares of the Corporation’s capital stock pursuant to the conversion or exchange provisions of such capital stock or
the securities being converted or exchanged, (e) any declaration of a dividend in connection with any shareholder rights plan, or the issuance of rights, stock or other property under any shareholder rights plan, or the redemption or purchase
of rights pursuant thereto, (f) any dividend in the form of stock, warrants, options or other rights where the dividend stock or stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks equally with or junior to such stock, (g) any payment of current or deferred interest on Parity Securities that is made pro rata to the amounts due on such Parity Securities and this Security and any payments of
deferred interest on Parity Securities that, if not made, would cause the Corporation to breach the terms of the instrument governing such Parity Securities; or (h) any payment of principal in respect of Parity Securities having the same
scheduled maturity date as this Security, as required under a provision of such other Parity Securities that is substantially the same as the provisions in Section 2.02 of the Third Supplemental Indenture, and that is made on a pro rata basis
among one or more series of Parity Securities (including this Security) having such a provision and this Security). 
 The Corporation shall give written notice of its election to commence or continue any Deferral Period to the Trustee and the Holders of the LoTSSM at least one Business Day and not more than 60 Business Days prior to the next Interest Payment Date. Notice of the Corporation’s election of a Deferral
Period shall be given to the Trustee and each Holder of the LoTSSM at such Holder’s address appearing in the
Security Register by first-class mail, postage prepaid. 
 Payment of the principal of (and premium, if any) and interest on this Security
will be made at the office or agency of the Corporation maintained for that purpose in the United States, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Corporation payment of interest may be made (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Securities Register or (ii) by wire transfer in
immediately available funds at such place and to such bank account as may be designated by the Person entitled thereto as specified in the Securities Register; provided that the Paying Agent shall have 

  

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received satisfactory wire transfer instruction at least 10 days prior to the relevant Interest Payment Date. 
 The indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness as defined in Section 7.01 of the Third Supplemental Indenture, and this Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the same,
(a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee
his attorney-in-fact for any and all such purposes. Each Holder hereof, by his acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness,
whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions. 
 The Corporation and, by
acceptance of this Security or a beneficial interest in this Security, each Holder hereof and any person acquiring a beneficial interest herein, agree to treat this Security as indebtedness for United States federal income tax purposes. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

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 IN WITNESS WHEREOF, EVEREST REINSURANCE HOLDINGS, INC. has caused this instrument to be duly executed.

 Dated: 
  

			
	EVEREST REINSURANCE HOLDINGS, INC.
		
	By:	 	  
		 	 Name:    Craig E. Eisenacher
 Title:      Executive Vice President and

		 	               Chief Financial Officer

  
 Attest: 
  

			
	
		
	  	 	  
	 Name:    Sanjoy Mukherjee
 Title:      Senior Vice President, General

	               Counsel and Corporate Secretary

  
 Trustee’s Certificate of Authentication

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

			
	THE BANK OF NEW YORK,
	
	as Trustee
		
	 By:
	 	
		 	 
		 	Authorized Signatory

  

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 [REVERSE OF LOTSSM] 
 This Security is one of a duly authorized issue of securities of the Corporation (herein called the “Securities”), issued and to be issued in one or more series under the Junior Subordinated Indenture, dated as of
November 14, 2002 (herein called the “Base Indenture”), between the Corporation and The Bank of New York (successor to JPMorgan Chase Bank), as trustee (the “Trustee”), as amended and supplemented by the Third Supplemental
Indenture, dated as of May 3, 2007, between the Corporation and the Trustee (the “Third Supplemental Indenture”, and together with the Base Indenture, the “Indenture”), to which Indenture and all other indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Trustee, the Corporation and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are issuable in series that may vary as to amount, date of maturity, rate of interest, rank and in any other respect provided in the Indenture.
This Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $400,000,000. 
 All
terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 To the extent
that any provision of this Security conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. 
 The Securities of this series shall be redeemable at the option of the Corporation in accordance
with the terms of the Indenture. In particular, the LoTSSM are redeemable: 
 (a) in whole or in part, at the Corporation’s option at any time on or after May 15, 2017, including on or after the Scheduled Maturity Date,
at the applicable Redemption Price; or 
 (b) in whole but not in part at the Corporation’s option, at any time prior to May 15,
2017, at the applicable Redemption Price; 
 provided that no partial redemption shall be effected (x) unless at least $25 million aggregate
principal amount of the Securities of this series, excluding any Securities of this series held by the Corporation or any of its affiliates, remains Outstanding after giving effect to such redemption and (y) if the principal amount of the
Securities of this series has been accelerated and such acceleration has not been rescinded or unless all accrued and unpaid interest, including deferred interest, has been paid in full on all Outstanding Securities for all interest periods
terminating on or before the Redemption Date. 
 No sinking fund is provided for the Securities of this series. 
  

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 The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of this
Security upon compliance by the Corporation with certain conditions set forth in the Indenture. 
 The Indenture permits, with certain
exceptions as therein provided, the Corporation and the Trustee at any time to enter into a supplemental indenture or indentures for the purpose of modifying in any manner the rights and obligations of the Corporation and of the Holders of the
Securities, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series to be affected by such supplemental indenture. The Indenture also contains provisions permitting Holders of
specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Corporation 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 this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
 As provided in and subject to the provisions of the Indenture, if an Event of Default with respect to the Securities at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than 25% in aggregate principal amount of the Outstanding Securities may declare the entire principal amount and all accrued but unpaid interest of all the Outstanding Securities to be due and payable immediately, by a notice in
writing to the Corporation (and to the Trustee if given by Holders), and upon such declaration, such amount shall become immediately due and payable. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 
 As provided
in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Securities Register, upon surrender of this Security for registration of transfer at the office or agency of the Corporation
maintained under Section 10.2 of the Indenture duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Securities Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities, of like tenor of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for
any such registration of transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  

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 The Corporation, the Trustee and any agent of the Corporation or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Corporation, the Trustee nor any such agent shall be affected by notice to the contrary. 
 The Securities are issuable only in registered form without coupons in minimum denominations of $1,000 and any integral multiples of $1,000 in excess
thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities are exchangeable for a like aggregate principal amount of Securities of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF. 
  

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 ASSIGNMENT 
  

	
	 FOR VALUE RECEIVED, the undersigned assigns and transfers this Security
to:

	 
	 
	 
	 
	(Insert assignee’s social security
or tax identification number)
	 
	 
	(Insert address and zip code of
assignee)

 agent to transfer this Security on the books of the Securities Registrar. The agent may substitute another to act
for him or her. 
  

			
	 Dated:
	 	Signature:
		 	Signature Guarantee:

 (Sign exactly as your name appears on the other side of this Security) 
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Securities Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Securities Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended. 
  

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 SCHEDULE I * 
 SCHEDULE OF PRINCIPAL AMOUNT REDUCTIONS 
 Principal amount of Securities outstanding represented by this certificate as of
May 3, 2007: 
 $400,000,000 
 Thereafter, the following
decreases have been made: 
  

							
	 Date of Redemption
or Repurchase
	 	 Principal
Amount
Redeemed or
Repurchased
	 	 Principal
Amount
Remaining
	 	 Notation Made
by or
on Behalf
of
the
Trustee

		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	

  

	*	Insert in Global Securities only. 

  

 -11-Arch Chemicals, Inc. Employee Deferral Plan

 EXHIBIT 10.1 
 ARCH CHEMICALS, INC. 
 EMPLOYEE DEFERRAL PLAN 
 As Amended and Restated January 30, 2003 
 And as amended through April 26,
2007 
  

	1.	PURPOSE 

 The purpose of this Arch Chemicals,
Inc. Employee Deferral Plan (the “Plan”) is to provide eligible employees of Arch Chemicals, Inc. and its subsidiaries and affiliates with an opportunity to defer compensation earned or to be earned by them as a means of saving for
retirement or other future purposes. 
  

	2.	DEFINITIONS 

 The following definitions shall
be applicable throughout the Plan: 
 “Accounting Date” means with respect to the Arch Stock Account, each December 31,
March 31, June 30 and September 30 and with respect to all other Investment Accounts, such date determined by Corporate Human Resources but not less than quarterly. 
 “Administrator” means the Vice President, Human Resources or his or her delegate. 
 “Arch Stock Account” means the account or subaccount, as the case may be, of a Participant’s Compensation Account to which Arch Stock
Units are credited. 
 “Arch Stock Unit(s)” means the share equivalents (including fractions) credited to the Arch Stock Account of
a Participant’s Compensation Account pursuant to Section 6, with one Arch Stock Unit equal to one share of Arch Common Stock. 
 “Beneficiary” means the person(s) designated by the Participant in accordance with Section 10. 
 “Board”
means the Board of Directors of the Company. 
 “Cash Account” means the account or subaccount, as the case may be, of a
Participant’s Compensation Account to which compensation has been or is to be credited in the form of cash and which is to earn interest at the Rate of Interest as provided herein. 
 “Change in Control” means that any of the following events shall have occurred: 
 (i) the Company ceases to be, directly or indirectly, owned by at least 1,000 shareholders; 

 (ii) a person, partnership, joint venture, corporation or other entity, or two or more of any of the
foregoing acting as a group (or a “person” within the meaning of Section 13(d)(3) of the Exchange Act), other than the Company, a majority-owned subsidiary of the Company or an employee benefit plan of the Company or such subsidiary
(or such plan’s related trust), become(s) the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act) of 20% or more of the then outstanding voting stock of the Company; 
 (iii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Company’s Board (together with any
new director whose election by the Company’s Board or whose nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the directors then in office; 
 (iv) all or substantially all of the business of the Company is disposed of pursuant to a merger, consolidation or other transaction in which the Company
is not the surviving corporation or the Company combines with another company and is the surviving corporation (unless the shareholders of the Company immediately following such merger, consolidation, combination, or other transaction beneficially
own, directly or indirectly, more than 50% of the aggregate voting stock or other ownership interests of (x) the entity or entities, if any, that succeed to the business of the Company or (y) the combined company); or 
 (v) the shareholders of the Company approve a sale of all or substantially all of the assets of the Company or a liquidation or dissolution of the
Company. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 “Committee” means the Compensation Committee (or its successor) of the Board. 
 “Common Stock” means the Company’s common stock, $1.00 par value per share. 
 “Company” means Arch Chemicals, Inc., a Virginia corporation, its divisions and subsidiaries, and any successor thereto. 
 “Compensation” means any employee compensation which represents salary, severance pay, bonus, or any other incentive plan payout, in the form
of cash or stock, including but not limited to payouts or payment distributions from the Arch Chemicals, Inc. 1999 Long Term Incentive Plan but excluding stock resulting from employee stock option exercises and excluding other incentive payouts
which the Administrator prospectively determines to be not eligible to be deferred under this Plan. 
  

 2 

 “Compensation Account” means the account and any of its subaccounts established under the Plan
to which the Participant’s Deferred Compensation is credited and which has a specific distribution schedule that was specified by a Participant as provided in this Plan and was permitted by Corporate Human Resources. 
 “Corporate Human Resources” means the Corporate Human Resources Department of the Company. 
 “Credit Date” means with respect to Deferred Compensation, such date as designated by Corporate Human Resources that Deferred Compensation
shall be credited to the Compensation Account. 
 “Deferred Compensation” means the Compensation elected by the Participant to be
deferred pursuant to the Plan. 
 “Distribution” means the distribution of all outstanding shares of Common Stock to the
shareholders of Olin. 
 “Distribution Date” means the dividend payment date fixed by the Board of Directors of Olin for the
Distribution. 
 “Election” means a Participant’s delivery of a written notice of election to Corporate Human Resources
electing to defer payment of all or a portion of his or her Compensation. 
 “Employee” means a full-time salaried employee (which
term shall be deemed to include officers) on the active payroll of the Company and its affiliates who has at least 1182 Hay Points and who has been selected by the Administrator, and if required, approved by the Committee, to participate in this
Plan. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Fair Market Value” means, with respect to a date, on a per share or unit basis, (i) with respect to Common Stock or Olin Common Stock or
phantom shares of Common Stock or Olin Common Stock, the average of the high and the low price of a share of Common Stock or Olin Common Stock, as the case may be, as reported on the consolidated tape of the New York Stock Exchange (or such other
primary exchange on which such stock is traded) (“Exchange”) on such date or if the Exchange is closed on such date, the next succeeding date on which it is open and (ii) with respect to other investment vehicles, the closing or unit
price or net asset value of such vehicle, as the case may be, on such date. 
  

 3 

 “Fiscal Year” means that annual period commencing January 1 and ending the following
December 31. 
 “Hardship” means a severe financial hardship to the Participant resulting from a sudden and unexpected illness
or accident of the Participant or of a dependent of the Participant (as defined in Code Section 152(a)), a Participant’s loss of property due to casualty, or other similar, extraordinary and unforeseeable circumstance arising as a result
of events beyond the control of the Participant, which is not relieved (i) through reimbursement or compensation by insurance or otherwise, (ii) by liquidation of the Participant’s assets, to the extent the liquidation of assets would
not itself cause severe hardship, or (iii) by cessation of deferrals under this Plan. 
 “Investment Account” means the
account or subaccount, as the case may be, of a Participant’s Compensation Account that is invested in a particular investment vehicle offered under this Plan. 
 “Olin” means Olin Corporation, a Virginia corporation and any successor thereto. 
 “Olin
Common Stock” means shares of common stock of Olin, par value $1.00 per share. 
 “Olin Employee” means an employee of Olin.

 “Olin Employee Deferral Plan” means the Olin Corporation Employee Deferral Plan. 
 “Olin Stock Account” means the account or subaccount, as the case may be, of a Participant’s Compensation Account to which Olin Stock
Units are credited upon transfer from the Olin Employee Deferral Plan and from time to time. 
 “Olin Stock Unit(s)” means the
share equivalents credited to the Olin Stock Account of a Participant’s Compensation Account pursuant to Section 6, with one Olin Stock Unit equal to one share of Olin Common Stock. 
 “Participant” means an Employee selected by the Administrator and if required, approved by the Committee, to participate in the Plan and who
has elected to defer payment of all or a portion of his or her Compensation under the Plan. “Participant” shall also include any person who had an account under the Olin Employee Deferral Plan which has been transferred to this Plan.

 “Plan” means this Arch Chemicals, Inc. Employee Deferral Plan. 
 “Rate of Interest” means the rate of interest for the quarterly period ending with the Accounting Date equal to (i) the Company’s
before-tax cost of borrowing as determined from 

  

 4 

 
time to time by the Chief Financial Officer, Controller or Treasurer (or in the event there is no such borrowing, the Federal Reserve A1/P1 Composite rate
for 90-day commercial paper plus 10 basis points as determined by such officer) or (ii) such other rate as the Board or the Committee may select prospectively from time to time. 
 “Section 16(b) Employee” means an Employee or former Employee who is subject to Section 16(b) of the Exchange Act. 
 “Stock Account” means an account or subaccount, as the case may be, of a Participant’s Compensation Account to which shares of Common
Stock or Olin Common Stock have been or are to be credited in the form of Arch Stock Units and Olin Stock Units, which shall include the Arch Stock Account and the Olin Stock Account. 
 “Stock-based Compensation” means Compensation that is being paid out in the form of shares of Common Stock (excluding stock options), such as
retention stock units, performance shares and restricted stock units. 
 “Termination” means retirement from the Company or
termination of services as an Employee for any other reason. 
  

	3.	SHARES; ADJUSTMENTS IN EVENT OF CHANGES IN CAPITALIZATION 

 (a) Shares Authorized for Issuance. There shall be reserved for issuance under the Plan 25,000 shares of Common Stock, subject to adjustment pursuant to subsection (b) below. 
 (b) Adjustments in Certain Events. In the event of any change in the outstanding Common Stock of the Company or Olin Common Stock by reason of any
stock split, share dividend, recapitalization, merger, consolidation, reorganization, combination, or exchange or reclassification of shares, split-up, split-off, spin-off, liquidation or other similar change in capitalization, or any distribution
to common shareholders other than cash dividends, the number or kind of shares or Arch Stock Units or Olin Stock Units, as the case may be that may be issued or credited under the Plan shall be adjusted by the Committee so that the proportionate
interest of the Participants shall be maintained as before the occurrence of such event. Such adjustment shall be conclusive and binding for all purposes of the Plan. 
  

	4.	ELIGIBILITY 

 The Administrator shall have
the authority to select among any Employees those Employees who shall be eligible to participate in the Plan. Deferrals to a Stock Account by Section 16(b) Employees must be approved by the Committee in advance of the deferral. 
  

 5 

	5.	ADMINISTRATION 

 Full power and authority to construe,
interpret and administer the Plan shall be vested in the Committee (and its delegate). This power and authority includes, but is not limited to, selecting compensation eligible for deferral, establishing deferral terms and conditions and
adopting modifications, amendments and procedures as may be deemed necessary, appropriate or convenient by the Committee or its delegate, as the case may be, subject to Section 15. Decisions of the Committee (and its delegate) and the
Administrator shall be final, conclusive and binding upon all parties. Day-to-day administration of the Plan shall be the responsibility of Corporate Human Resources or its delegate. Notwithstanding the foregoing, to the extent required for
transactions under the Plan to qualify for the exemptions available under Rule 16b-3 promulgated under the Exchange Act, all actions relating to persons subject to Section 16 of the Exchange Act may be taken by the Board or the Committee (or
any other committee or subcommittee of the Board composed of two or more members, each of whom is a “non-employee director” within the meaning of Exchange Act Rule 16b-3) and, to the extent required for compensation realized under the Plan
to be deductible by the Company pursuant to Section 162(m) of the Code, all actions relating to such compensation (and awards thereof) may be taken by the Committee (or any other committee or subcommittee of the Board composed of two or more
members, each of whom is an “outside director” within the meaning of Code Section 162(m)). 
  

	6.	PARTICIPANT ACCOUNTS 

 (a) Compensation
Accounts. Upon election to participate in the Plan, there shall be established a Compensation Account for the Participant to which there shall be credited any Deferred Compensation as of the Credit Date for such deferral. Corporate Human
Resources may limit the number of Compensation Accounts a Participant may establish. For each type of Compensation Account, the Plan shall provide for a Cash Account, an Arch Stock Account and such other Investment Accounts as may be established
from time to time hereunder. Stock-based Compensation may only be deferred to an Arch Stock Account. The Committee and the Administrator each may establish from time to time other types of Investment Accounts reflecting different investment options.
Each Participant’s Investment Account shall be credited (or debited) on each Accounting Date with income (or loss) based on a hypothetical investment in any one or more of the investment options available under the Plan, as prescribed by the
Plan, the Committee or Corporate Human Resources. Gains, losses and other elements of determining value shall be determined substantially on the basis of a hypothetical investment in the various investment options, as determined and applied in the
manner deemed appropriate by the Committee or Corporate Human Resources. 
 (b) Arch Stock Account. If a Participant elects to invest
all or any portion of his or her Deferred Compensation in an Arch Stock Account, that portion of the Participant’s Compensation Account shall be credited on the Credit Date with Arch Stock Units equal to the number of shares of Common Stock
(including fractions of a share determined to three 

  

 6 

 
decimal places) that could have been purchased with the amount of such Deferred Compensation at the Fair Market Value on the Credit Date; provided that in
the case of Stock-based Compensation, the Arch Stock Account shall be credited with the number of Arch Stock Units equal to the number of shares being paid out as the Stock-based Compensation. 
 (c) Dividends and Interest. Each time a cash dividend is paid on Common Stock or Olin Common Stock, a Participant who has shares of such stock
credited to his or her Stock Account shall receive a credit in applicable Stock Units for such dividends on the dividend payment date to his or her applicable Stock Account. The number of additional Arch Stock Units or Olin Stock Units (rounded to
the nearest one-thousandth of a share) credited to the applicable Stock Account will be determined by dividing (i) the product of (a) the dollar value of the cash dividend declared in respect of a share of Common Stock or Olin Common
Stock, as applicable, multiplied by (b) the number of Stock Units credited to the Participant’s applicable Stock Account as of the dividend record date by (ii) the Fair Market Value of a share of Common Stock or Olin Common Stock, as
applicable, on the dividend payment date. 
 The Cash Account of a Participant shall be credited on each Accounting Date with interest for
the quarter ending on such date, payable at the Rate of Interest on such date. 
 Other Investment Accounts shall be credited with income (or
loss) as appropriate based on the hypothetical investment vehicle as the Committee or Corporate Human Resources determines from time to time. 
 After January 30, 2003, deferrals of salary may not be made directly to the Stock Accounts. 
 (d) Adjustment for
Distribution. As of the Distribution Date, the cash account and stock account held under the Olin Employee Deferral Plan of each Arch Employee (after giving effect to the adjustment described in Section 6(e) of the Olin Employee Deferral
Plan) shall be transferred to this Plan. 
 Except as provided in Section 6(c) with respect to dividends or in Section 3, no
additional contributions or additions may be made to a Participant’s Olin Stock Account after the Distribution Date. 
 (e) Plan
Remains Unfunded. Amounts credited to a Compensation Account shall remain a part of the general funds of the Company and nothing contained in this Plan shall be deemed to create a trust or fund of any kind or create any fiduciary relationship.
Nothing contained herein shall be deemed to give any Participant any ownership or other proprietary, security or other rights in any funds, stock or assets owned or possessed by the Company, whether or not earmarked for the Company’s own
purposes as a reserve or fund to be utilized 

  

 7 

 
by the Company for the discharge of its obligations hereunder. To the extent that any person acquires a right to receive payments or distributions from the
Company under this Plan, such right shall be no greater than the right of any unsecured creditor of the Company. Nothing herein shall prohibit the establishment of a grantor or rabbi trust with respect to the Plan. 
  

	7.	MANNER OF ELECTION 

 (a) General. Any
Employee selected by the Administrator to participate in the Plan may elect to do so in any Fiscal Year by delivering to Corporate Human Resources a written notice on a form prescribed by Corporate Human Resources electing to defer payment of all or
a portion (in 1% increments or other increments, amounts or formulae so prescribed by Corporate Human Resources) of his or her Compensation (an “Election”) to existing or new Compensation Accounts; provided Section 16(b) Employees who
elect to defer to an Arch Stock Account must have the prior approval of the Committee. Such Election shall specify whether the payout for any new Compensation Account to be established shall be in a lump sum or in annual installments (not to exceed
20). Separate elections may be made with respect to each Compensation Account. The Election must be filed on or before December 31 (or such earlier date as established by the Administrator) in order to be effective for amounts earned in
the immediately succeeding Fiscal Year. An effective Election may not be revoked or modified (except as otherwise stated herein) with respect to a Fiscal Year for which such Election is effective. 
 (b) Changes in Election. A Participant will be allowed to change the Election as provided herein. Any change with respect to the terms of a
Participant’s Election for (i) amount or form of any future deferral hereunder may be made at any time prior to such Compensation being earned and (ii) the timing (which change may not accelerate a distribution date) or amount of
payments from any Compensation Account shall only be effective if made at least six months prior to the payout and in the calendar year prior to the calendar year payout is to occur; provided, if the Administrator so determines, for each
Compensation Account established under the Plan shall be permitted only one change in the scheduled distribution date during the life of such account; provided further no timing change may be made to a Compensation Account which the Participant has
scheduled to be distributed on or beginning at the Participant’s Termination. As the Administrator determines, the Administrator may adopt additional restrictions on changes in election which may be more or less restrictive than those provided
herein. The most recent prior elections and beneficiary designations applicable to the Olin Employee Deferral Plan shall govern this Plan unless changed subsequent to the Distribution or is inconsistent with this Plan. 
  

	8.	MANNER OF PAYMENT 

 (a) Form of
Payment. In accordance with the Participant’s Election, amounts credited to a Participant’s Compensation Account will be paid in a lump sum or in the form of annual installments. Notwithstanding the foregoing, the Administrator may
elect to pay 

  

 8 

 
out all of any portion of a Compensation Account of a Participant in a lump sum regardless of any election made by a Participant except in the case of a
Compensation Account of the Administrator where such election for a lump sum shall only be made by the Chief Executive Officer of the Company or the Committee. Except as provided in Section 11, in the case of distributions from the Arch Stock
Account (unless the Administrator, or in the case of a Section 16(b) Employee, the Committee, decides it shall be in the form of cash), distributions shall be in shares of Common Stock and in case of distributions from any other Compensation
Account (including the Olin Stock Account), distributions shall be in the form of cash (unless the Committee decides it shall be in the form of shares of Common Stock), in each case to the Participant or, in the event of his or her death, to the
Beneficiary.1 If a Participant elects to receive payment in installments, the payment period shall not exceed 20
years. Payment dates shall be January 1 or July 1 pursuant to Participant’s Election. 
 (b) Calculation for Payments
in Cash. The amount of any cash distribution to be made in installments with respect to a Compensation Account (other than the Stock Account) will be determined by multiplying (i) the balance in such Compensation Account on the payment date
by (ii) a fraction, the numerator of which is one and the denominator of which is the number of installments in which distributions remain to be made (including the current distribution). If a Stock Account is to be paid out in cash, the amount
of any cash distribution to be made in installments with respect to Arch or Olin Stock Units will be determined by (i) multiplying the number of Arch Stock Units or Olin Stock Units attributable to such installment (determined as hereinafter
provided) by (ii) the Fair Market Value of a share of Common Stock or Olin Common Stock, as applicable, on the fifth business day immediately prior to the date on which such installment is to be paid. The number of Arch Stock Units or Olin
Stock Units, as applicable, attributable to an installment shall be determined by multiplying (i) the current number of Arch Stock Units or Olin Stock Units in the applicable Stock Account by (ii) a fraction, the numerator of which is one
and the denominator of which is the number of installments in which distributions remain to be made (including the current distribution). 
 (c) Calculation for Payments in Stock. The amount of any stock distribution to be made in installments with respect to the amount of a Compensation Account invested in the Arch Stock Account shall be determined by multiplying
(i) the current number of Arch Stock Units by (ii) a fraction, the numerator of which is one and the denominator of which is the number of installments in which distributions remain to be made (including the current distribution). If a
Compensation Account (other than the Arch Stock Account) is to be paid out in shares of Common Stock, the amount of any stock distribution to be made in installments with respect to such Compensation Account shall be determined by dividing the
amount of cash attributable to such installment (determined as provided above) by the Fair Market Value of the Common Stock on the fifth business day immediately prior to the date on which such installment is to be paid. 

	1	Complier’s Note: Effective January 30, 2003 and unless changed by the Committee, the Committee has determined that all Arch Stock Accounts when distributed, shall be paid
out in the form of cash. 

  

 9 

 (d) Fractional Shares; Required Withholding. Only whole numbers of shares of Common Stock will be
issued, with any fractional shares to be paid in cash. To the extent required by law, taxes shall be withheld from payouts of the Compensation Account, provided that if a fractional share results after withholding, such fractional share shall be
withheld as additional tax. 
  

	9.	COMMENCEMENT OF PAYMENTS; WITHDRAWALS 

 Subject to Section 11, payments of amounts deferred pursuant to a valid Election shall commence (i) with respect to a lump sum, on January 1 or July 1 as indicated in a Participant’s Election and (ii) with
respect to annual installments, on January 1 or July 1 of the first calendar year of deferred payment as selected by a Participant in his or her Election. If a Participant dies prior to the first deferred payment specified in an Election
or prior to completion of all installments, payments shall commence to the Participant’s Beneficiary on the first or next payment date so specified, unless the Administrator elects otherwise to provide for a lump-sum distribution of the
deceased Participant’s Compensation Accounts. In the event a Participant who is actively employed by the Company or its subsidiary suffers a Hardship, such Participant may apply to the Administrator for withdrawal of amounts held in all the
Participant’s Compensation Accounts. The amount of the withdrawal shall not be less than $500.00 and shall be limited to the amount required to meet the need created by the Hardship. The Administrator shall in his or her discretion determine
whether a Hardship exists and the amount that may be withdrawn to satisfy the Hardship. Withdrawals shall be made prorata from all Compensation Accounts other than the Arch Stock Account which may only be withdrawn from after all other accounts are
depleted. 
  

	10.	BENEFICIARY DESIGNATION 

 A Participant may
designate one or more persons to whom payments are to be made if the Participant dies before receiving payment of any or all amounts due hereunder. A designation of Beneficiary will be effective only after the signed Election is filed with Corporate
Human Resources while the Participant is alive and will cancel all designations of Beneficiary signed and filed earlier. If Corporate Human Resources so permits, Beneficiaries may be designated for each type of Compensation that is deferred or
Compensation Account. If the Participant fails to designate a Beneficiary as provided above, the remaining unpaid amounts shall be paid in one lump sum to the estate of such Participant. If all Beneficiaries of the Participant die before the
Participant or before complete payment of all amounts due hereunder, the remaining unpaid amounts shall be paid in one lump sum to the estate of the last to die of such Beneficiaries. A Participant may, at any time prior to death, elect to change
the designation of a Beneficiary. 
  

 10 

	11.	CHANGE IN CONTROL 

 Notwithstanding any
provision of this Plan to the contrary, if a Change in Control occurs, each Participant who has a Termination within two years following such Change in Control shall receive an automatic lump-sum cash distribution of all amounts accrued in the
Participant’s Compensation Account not later than 15 days after the date of such Participant’s Termination. For this purpose, the balance in the portion of a Participant’s Compensation Account invested in the Arch Stock Account shall
be determined by multiplying the number of applicable Stock Units by the highest of (a) the highest Fair Market Value of Common Stock on any date within the period commencing 30 days prior to such Change in Control and ending on the date of the
Change in Control, (b) the Fair Market Value of the Common Stock the date of Termination, and (c) if the Change in Control of the Company occurs as a result of a tender or exchange offer or consummation of a corporate transaction, then the
highest price paid per share of Common Stock or Olin Common Stock, as applicable, pursuant thereto. Any consideration other than cash forming a part or all of the consideration for Common Stock to be paid pursuant to the applicable transaction shall
be valued at the valuation price thereon determined by the Board or Committee. 
 In addition, if a Change in Control has occurred, the
Company shall reimburse a Participant for the legal fees and expenses incurred thereafter if the Participant is required after the Change in Control to seek to obtain or enforce any right to distribution under this Section 11. In such case and
in the event that it is determined that such Participant is properly entitled to a cash distribution hereunder, such Participant shall also be entitled to interest thereon payable in an amount equivalent to the prime rate of interest as announced
from time to time by Citibank, N.A. from the date such distribution should have been made to and including the date it is made. 
 Notwithstanding any provision of this Plan to the contrary, this Section 11 as applied to any Participant may not be amended or modified to the detriment of a Participant after a Change in Control occurs without the written consent of
such Participant. 
  

	12.	TRANSFERS AMONG ACCOUNTS 

 Participants may
transfer account balances between and among the various Compensation Accounts and Investment Accounts within a Compensation Account from time to time and in such amounts in each case in accordance with procedures established from time to time by
Corporate Human Resources; provided no amounts may be transferred into the Olin Stock Account and no amounts may be transferred either from a Compensation Account that is scheduled to be distributed on a Termination or from a Compensation Account
that has a later scheduled distribution date to a Compensation Account with an earlier scheduled distribution date. Additionally, Section 16(b) Employees may not transfer amounts out of or into the Arch Stock Account without complying with
Section 16(b) of the Exchange Act. The Administrator may establish from time to time blackout periods applicable to either all Participants or to all Section 16(b) Employees during which no transfers may occur among all or certain
Compensation or Investment Accounts. 
  

 11 

	13.	INALIENABILITY OF BENEFITS 

 The interests of
the Participants and their Beneficiaries under the Plan may not in any way be voluntarily or involuntarily transferred, alienated or assigned, nor subject to attachment, execution, garnishment or other such equitable or legal process. A Participant
or Beneficiary cannot waive the provisions of this Section 13. 
  

	14.	GOVERNING LAW 

 The provisions of this plan
shall be interpreted and construed in accordance with the laws of the State of Connecticut, except to the extent preempted by Federal law. 
  

	15.	AMENDMENTS 

 The Committee may terminate this Plan at any
time without the prior approval of the Board. The Committee (and its delegate) may amend or alter this Plan at any time without the prior approval of the Board (and in the case of its delegate, the Committee); provided, however, that the Committee
(and its delegate) may not, without approval by the Board increase the number of securities that may be issued under the Plan (except as provided in Section 3(b)). No amendment or modification may impair the rights of a Participant to receive
amounts accrued in the Participant’s Compensation Account at the time of the effectiveness of the amendment or modification. Notwithstanding the foregoing, (1) the Board or the Committee (or any other Committee or subcommittee of the Board
composed of two or more members, each of whom is a “non-employee director” within the meaning of Exchange Act Rule 16b-3) shall be required to approve any amendment that, if not approved by the Board or Committee or any such committee or
subcommittee, would adversely affect the qualification of transactions under the Plan for the exemptions available under Rule 16b-3 promulgated under the Exchange Act with respect to persons subject to Section 16 of the Exchange Act and
(2) the Committee (or any other committee or subcommittee of the Board composed of two or more members, each of whom is an “outside director” within the meaning of Code Section 162(m)), shall be required to approve any amendment
that, if not approved by such committee or subcommittee, would adversely affect the deductibility under Section 162(m) of the Code with respect to compensation payable under the Plan. 
  

	16.	SECTION 16b COMPLIANCE 

 It is the intention
of the Company that all transactions under the Plan be exempt from liability imposed by Section 16(b) of the Exchange Act. Therefore, if any transaction under the Plan is found not to be in compliance with an exemption from such
Section 16(b), the provision of the Plan governing such transaction shall be deemed amended so that the 

  

 12 

 
transaction does so comply and is so exempt, to the extent permitted by law and deemed advisable by the Committee, and in all events the Plan shall be
construed in favor of its meeting the requirements of an exemption. 
  

	17.	EFFECTIVE DATE 

 The Plan shall become
effective as of the Distribution Date. 
  

 13

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