Document:

exv4w1

EXHIBIT 4.1

U.S. BANCORP 

SECOND SUPPLEMENTAL INDENTURE

Dated as of March 13, 2009

Supplementing the Indenture, dated

as of October 1, 1991, between

U.S. Bancorp (successor to First Bank System, Inc.) and

Citibank, N.A., as Trustee as supplemented by

a

First Supplemental Indenture dated as of August 6, 2001

 

 

     THIS SECOND SUPPLEMENTAL INDENTURE, dated as of March 13, 2009 (the “Second Supplemental
Indenture”), is made by and between U.S. BANCORP, a Delaware Corporation (the “Company”), and
CITIBANK, N.A., a national banking association (the “Trustee”), under the Indenture referred to
herein.

WITNESSETH:

     WHEREAS, the Company and the Trustee previously executed and delivered an Indenture, dated as
of October 1, 1991 (the “Base Indenture”), as supplemented by a First Supplemental Indenture dated
as of August 6, 2001 (collectively, the “Indenture”);

     WHEREAS, pursuant to the Indenture, the Company has issued and the Trustee has authenticated
and delivered one or more series of the Company’s senior debt securities (the “Securities”) and
anticipates additional issues in the future;

     WHEREAS, the Company has determined that it is advisable and in the interests of the Company
and the Holders of its senior unsecured debt that one or more tranches of a series of Securities
designated as Medium-Term Notes (Senior), Series R be issued subject to a guarantee of the Federal
Deposit Insurance Corporation (the “FDIC”) pursuant to 12 C.F.R. Part 370 (as such regulations may
be amended or supplemented from time to time, the “FDIC Guarantee”);

     WHEREAS, as a condition to the FDIC Guarantee, the Company will enter into this Second
Supplemental Indenture on or prior to the issue date of the applicable Securities, which shall be
applicable only to those Securities issued subject to the FDIC Guarantee and only until the earlier
of the maturity date of the Securities subject to the FDIC Guarantee and June 30, 2012, or such
later time as may be required by the rules and regulations of the FDIC or any successor entity (the
“Termination Date”);

     WHEREAS, this Second Supplemental Indenture shall lapse and be without further effect upon the
later to occur of (a) payment in full of all Securities subject to the FDIC Guarantee or (b) the
Termination Date;

     WHEREAS, Section 901(7) of the Indenture provides that when authorized pursuant to a Board
Resolution, the Company and the Trustee may amend the Indenture without notice to or consent of the
Holders of the Securities in order to establish the form or terms of any series as permitted by
Sections 201 and 301 of the Indenture;

     WHEREAS, Section 301 of the Indenture provides that the Securities of any one Series (other
than Securities offered in a Periodic Offering) shall be identical except as otherwise provided in
any supplemental indenture;

     WHEREAS, the Securities subject to the FDIC Guarantee will be offered in a Periodic Offering
and/or will be subject to the terms of this Second Supplemental Indenture;

     WHEREAS, Section 901(9) of the Indenture provides that when authorized pursuant to a Board
Resolution, the Company and the Trustee may amend the Indenture without notice to or consent of the
Holders of the Securities in order to cure any ambiguity or to correct or supplement any provision
contained in the Indenture which may be defective or inconsistent with any other provisions
contained in the Indenture or to make such other provisions in regard to matters or questions
arising under the Indenture, provided such other provisions shall not adversely affect in any
material respect the interests of Holders of the Securities, including provisions necessary or
desirable to provide for or facilitate the administration of the trusts under the Indenture;

     WHEREAS, pursuant to Section 903 of the Indenture, the Trustee is fully protected in relying
on an Opinion of Counsel stating that execution of this Second Supplemental Indenture is authorized
or permitted by the Indenture, and based upon that reliance, the Trustee has agreed to enter into
this Second Supplemental Indenture; and

     WHEREAS, this Second Supplemental Indenture has been duly authorized by a Board Resolution and
all other all necessary corporate action on the part of the Company.

 

 

     NOW, THEREFORE, the Company and the Trustee agree as follows for the equal and ratable benefit
of the Holders of the Securities subject to the FDIC Guarantee:

ARTICLE I

SCOPE OF THIS SUPPLEMENTAL INDENTURE

          SECTION I.A The changes, modifications and supplements to the Indenture effected by this
Supplemental Indenture shall only be applicable with respect to, and govern the terms of, the
Securities subject to the FDIC Guarantee, and shall not apply to any other series of Securities.

ARTICLE II

ADDITIONAL TERMS

          SECTION II.A The Indenture is hereby amended by the insertion of a new Article Thirteen which
shall read as follows:

“ARTICLE THIRTEEN

FDIC Guarantee

     Section 1301. Federal Deposit Insurance Corporation Guaranteed Senior Unsecured Debt

          (a) Acknowledgement of the FDIC’s Debt Guarantee Program

               (i) The parties to this Indenture acknowledge that the Issuer has not opted out of the debt
guarantee program (the “TLG Program”) established by the FDIC’s Final Rule, 12 C.F.R. Part 370 (as
may be amended or supplemented from time to time, the “Rule”). The TLG Program applies to any
Securities issued on or after October 14, 2008 through June 30, 2009 (the “Effective Period”) that
constitute unsecured senior debt, as defined in the Rule and as to which the Company has not duly
made an election in accordance with Section 370.3(g) of the Rule and with respect to each such
Security, for the period from October 14, 2008 to the earlier of the date such Security matures
pursuant to the terms thereof and June 30, 2012 (the “Effective Period”). As a result, the
applicable Securities are guaranteed under the FDIC Temporary Liquidity Guarantee Program and are
backed by the full faith and credit of the United States. The details of the FDIC Guarantee are
provided in the FDIC’s regulations, 12 C.F.R. Part 370, and at the FDIC’s website,
www.fdic.gov/tlgp. The expiration date of the FDIC’s Guarantee is the earlier of the maturity date
of the applicable Securities or June 30, 2012.

                    The provisions of this Section shall be applicable only to any Securities issued under this
Indenture which affirmatively indicate that they are subject to the FDIC Guarantee and the security
certificate, note or other instrument evidencing each applicable Security shall bear a legend, upon
which the Representative (as defined below) shall be entitled to conclusively rely, to the effect
that such security certificate, note or other instrument is guaranteed by the FDIC under the TLG
Program.

               (ii) In connection with the Company’s participation in the TLG Program, any Authorized Officer
(as defined in, or appointed pursuant to, a Board Resolution) may affirmatively elect to exercise
the right to issue senior unsecured non-guaranteed debt with maturities beyond June 30, 2012
pursuant to, and as set forth in, 12 CFR §370.3(g), and to affirmatively identify such securities
in the applicable Securities certificate, note or other instrument.

               (iii) In the event of any conflict between the provisions of this Section 1301 and the rules
and regulations of the TLG Program, or the Master Agreement (and any amendments thereto) entered
into by the Company and the FDIC (the “Master Agreement”) with respect thereto, such rules and
regulations, and/or such Master Agreement shall control.

-2-

 

          (b) Representative

               (i) The Trustee is designated under this Indenture as the duly authorized representative of
the Holders for purposes of making claims and taking other permitted or required actions under the
TLG Program (the “Representative”). Any Holder may elect not to be represented by the
Representative by providing written notice of such election to the Representative (it being
understood that such election shall not affect the Trustee’s capacity hereunder except as the
Representative of such Holder under the TLG Program).

               (ii) Upon an uncured failure by the Company to make a timely payment of principal or interest
under any applicable Securities (a “Payment Default”), the Representative, on behalf of all Holders
of such Securities that are represented by the Representative, shall submit to the FDIC a demand
for payment by the FDIC of such unpaid principal and interest (i) in the case of any payment due by
the Issuer prior to the final maturity or redemption of such Securities, on the earlier of the date
that the applicable cure period ends (or if such date is not a Business Day, the immediately
succeeding Business Day) and 60 days following such Payment Default and (ii) in the case of any
payment due by the Issuer on the final maturity date or on a redemption date for such Securities,
on the Business Day following such final maturity date or redemption date (or if such date is not a
Business Day, the immediately succeeding Business Day). Such demand shall be accompanied by a
proof of claim, which shall include evidence, to the extent not previously provided in the Master
Agreement, in form and content satisfactory to the FDIC, of: (A) the Representative’s financial and
organizational capacity to act as Representative; (B) the Representative’s exclusive authority to
act on behalf of the Holder and its fiduciary responsibility to the Holder when acting as such, as
established by the terms of such Securities and the Indenture; (C) the occurrence of a payment
default; and (D) the authority to make an assignment of the Holder’s right, title, and interest in
such Securities to the FDIC and to effect the transfer to the FDIC of the Holder’s claim in any
insolvency proceeding. Such assignment shall include the right of the FDIC to receive any and all
distributions on such Securities from the proceeds of the receivership or bankruptcy estate. Any
demand under this paragraph shall be made in writing and directed to the Director, Division of
Resolution and Receiverships, Federal Deposit Insurance Corporation, Washington, D.C., and shall
include all supporting evidences as provided in this paragraph, and shall certify to the accuracy
thereof. Solely for the purpose of this paragraph, “Business Day” means any day that is not a
Saturday, a Sunday or a day on which banks are required or authorized by law to be closed in the
State of New York.

          (c) Subrogation

     The FDIC shall be subrogated to all of the rights of the Holders and the Representative under
this Indenture against the Company in respect of any amounts paid to the Holders, or for the
benefit of the Holders, by the FDIC pursuant to the TLG Program.

          (d) Agreement to Execute Assignment upon Guarantee Payment

               (i) The Holders hereby authorize the Representative, at such time as the FDIC shall commence
making any guarantee payments to the Representative for the benefit of the Holders pursuant to the
TLG Program, to execute an assignment substantially in the form attached to this Indenture as
Exhibit A pursuant to which the Representative shall assign to the FDIC its right as Representative
to receive any and all payments from the Company under this Indenture and under the applicable
Securities on behalf of the Holders. The Company hereby consents and agrees that the FDIC is an
acceptable transferee for all or any portion of the indebtedness hereunder and under the applicable
Securities for all purposes of this Indenture and upon any such assignment (or any assignment by
any Holder that elects not to be represented by the Representative, as provided above), the FDIC
shall be deemed a Holder under this Indenture for all purposes hereof, and the Company hereby
agrees to take such reasonable steps as are necessary to comply with any relevant provision of this
Indenture as a result of such assignment.

               (ii) If a Holder has exercised its right not to be represented by the Representative, such
Holder hereby agrees that, at such time as the FDIC shall commence making any guarantee payments to
such Holder pursuant to the TLG Program, such Holder shall execute an assignment in the form
attached as Exhibit A (or such other form as may be then required by the Rule), pursuant to which
such Holder shall assign to the FDIC its right to receive any and all payments from the Company
under this Indenture. The Company hereby consents and agrees that the FDIC is an acceptable
transferee for all or any portion of the indebtedness hereunder for all purposes of this Indenture
and upon any such assignment, the FDIC shall be deemed a holder under this Indenture for all
purposes thereof, and the

-3-

 

Company hereby agrees to take such reasonable steps as are necessary to comply with any
relevant provision of this Indenture as a result of such assignment.

          (e) Surrender of Senior Unsecured Debt Instrument to the FDIC

     If, at any time on or prior to the expiration of the Effective Period, payment in full
hereunder shall be made pursuant to the TLG Program on the outstanding principal and accrued
interest to such date of payment, the Holder shall, or the Holder shall cause the person or entity
in possession to, promptly surrender to the FDIC the security certificate, note or other instrument
evidencing such debt, if any.

          (f) Notice Obligations to FDIC of Payment Default

     If, at any time prior to the earlier of (i) full satisfaction of the payment obligations
hereunder, or (ii) expiration of the Effective Period, the Company is in default of any payment
obligation hereunder, including timely payment of any accrued and unpaid interest, without regard
to any cure period, the Representative covenants and agrees that it shall provide written notice to
the FDIC within one (1) Business Day of such payment default. Solely for the purpose of this
paragraph, “Business Day” means any day that is not a Saturday, a Sunday or a day on which banks
are required or authorized by law to be closed in the State of New York.

          (g) Ranking

     Any indebtedness of the Company to the FDIC arising under Section 2.03 of the Master Agreement
entered into by the Company and the FDIC in connection with the TLG Program will constitute a
senior unsecured general obligation of the Company, ranking pari passu with any indebtedness
hereunder.

          (h) Event of Default

     (i) Sections 501(1) and 501(2) of the Base Indenture shall not apply to the Securities
subject to the FDIC Guarantee and the following paragraphs shall hereby be inserted with respect to
the Securities subject to the FDIC Guarantee in lieu thereof:

     (1) default (a) by the Company in the payment of any interest upon the Securities of that
series subject to the FDIC Guarantee when it becomes due and payable, and continuance of such
default for a period of 30 days and (b) by the FDIC in the payment of interest, if any, upon
the Securities of that series subject to the FDIC Guarantee in accordance with the Temporary
Liquidity Guarantee Program (12 C.F.R. Part 370); or

     (2) default (a) by the Company in the payment of the principal of (or premium, if any,
on) the Securities of that series subject to the FDIC Guarantee at its Maturity and (b) by the
FDIC in the payment of the principal of (or premium, if any, on) the Securities of that series
subject to the FDIC Guarantee in accordance with the Temporary Liquidity Guarantee Program (12
C.F.R. Part 370); or

     (3) default by the Company (a) in the payment of interest on any other Securities of that
series not subject to the FDIC Guarantee when it becomes due and payable and continuance of
that default for a period of 30 days or (b) the payment of the principal of (or premium, if
any on) any other Securities of that series not subject to the FDIC Guarantee.

     (ii) The first paragraph of Section 502 of the Base Indenture shall not apply to the
Securities subject to the FDIC Guarantee and the following paragraph shall hereby be inserted with
respect to the Securities subject to the FDIC Guarantee in lieu thereof:

“If an Event of Default specified in Sections 501(1) or 501(2) with respect to Outstanding
Securities of any series 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 of that
series may declare the principal amount (or, if any of the Securities of that series are Original
Issue Discount Securities, such lesser portion of the principal amount of such Securities as may be
specified in the terms thereof) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and

-4-

 

upon any such declaration such principal amount (or specified portion thereof) shall become
immediately due and payable. In case of any other Event of Default, neither the Trustee nor the
Holders have a right to declare the principal amount of, premium, if any, or accrued interest on
the Security immediately due and payable;” and

     (iii) There shall not be deemed to be an Event of Default under Sections 501 of this Indenture
or under the applicable Securities which would permit or result in the acceleration of amounts due
hereunder, if such an Event of Default is due solely to the failure of the Company to make timely
payment hereunder or under the applicable Securities, provided that the FDIC is making timely
guarantee payments with respect to the debt obligations hereunder in accordance with 12 C.F.R Part
370.

     Without limiting the foregoing, the provisions of Section 501 of the Indenture shall not
result in any acceleration of the amounts due under any applicable Securities at any time at which
the FDIC is making such timely guarantee payments, or the Company is making the required payments
under such Securities.

          (i) No Modifications Without FDIC Consent

     Without the express written consent of the FDIC, the parties hereto agree not to amend,
modify, supplement or waive any provision in this Indenture that is related to the principal,
interest, payment, default or ranking of the indebtedness hereunder or that is required to be
included herein pursuant to the Master Agreement executed by the Company in connection with the TLG
Program.

          SECTION II.B The Indenture is hereby amended by the insertion of a new “Exhibit A” in the
form attached hereto.

          SECTION II.C The Securities issued under this Second Supplemental Indenture shall be in
substantially the forms set forth in Exhibits B-1, B-2 and B-3 hereto.

ARTICLE III

MISCELLANEOUS

          SECTION III.A Indenture Remains in Full Force and Effect. Except as supplemented hereby, all
provisions in the Indenture shall remain in full force and effect.

          SECTION III.B Indenture and Supplemental Indentures Construed Together. This Second
Supplemental Indenture is an indenture supplemental to and in implementation of the Indenture, and
the Indenture and this Second Supplemental Indenture shall henceforth be read and construed
together.

          SECTION III.C Confirmation and Preservation of Indenture. The Indenture as supplemented by
this Second Supplemental Indenture is in all respects confirmed and preserved.

          SECTION III.D Conflict with Trust Indenture Act. If any provision of this Second Supplemental
Indenture limits, qualifies or conflicts with any provision of the Trust Indenture Act (“TIA”) that
is required under the TIA to be part of and govern any provision of this Second Supplemental
Indenture, the provision of the TIA shall control. If any provision of this Second Supplemental
Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the
provision of the TIA shall be deemed to apply to the Indenture as so modified or to be excluded by
this Second Supplemental Indenture, as the case may be.

          SECTION III.D Severability. In case any provision in this Second Supplemental Indenture 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.

          SECTION III.E Terms Defined in the Indenture. All capitalized terms not otherwise defined
herein shall have the meanings ascribed to them in the Indenture.

          SECTION III.F Headings. The Article and Section headings of this Second Supplemental Indenture
have been inserted for convenience of reference only, are not to be considered part of this Second
Supplemental Indenture and shall in no way modify or restrict any of the terms or provisions
hereof.

-5-

 

          SECTION III.G Benefits of Second Supplemental Indenture, etc. Nothing in this Second
Supplemental Indenture or the Securities, express or implied, shall give to any Person, other than
the parties hereto and thereto and their successors hereunder and thereunder, the FDIC (to the
extent set forth herein) and the Holders of the Securities, any benefit of any legal or equitable
right, remedy or claim under the Indenture, this Second Supplemental Indenture or the Securities.

          SECTION III.H Certain Duties and Responsibilities of the Trustee.

               (a) In entering into this Second Supplemental Indenture, the Trustee shall be entitled to the
benefit of every provision of the Indenture relating to the conduct or affecting the liability or
affording protection to the Trustee, whether or not elsewhere herein so provided.

               (b) The recitals contained herein shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Second Supplemental Indenture.

          SECTION III.I Counterparts. The parties may sign any number of copies of this Second
Supplemental Indenture. Each signed copy shall be an original, but all of them together represent
the same agreement.

          SECTION III.J Governing Law. This Second Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York but without giving effect to
applicable principles of conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

          SECTION III.K Effective Date. This Second Supplemental Indenture shall be effective on the
date first set forth above.

[Signature page follows.]

-6-

 

          IN WITNESS WHEREOF, the parties have caused this Second Supplemental Indenture to be duly
executed effective as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	U.S. BANCORP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ Kenneth D. Nelson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Kenneth D. Nelson	 	 
	 

	 	Title:
	 	Executive Vice President and Corporate Treasurer
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CITIBANK, N.A.
as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ Karen Schluter	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Karen Schluter	 	 
	 

	 	Title:
	 	Vice President	 	 

-SP-

 

Exhibit A

FORM OF ASSIGNMENT1

     This Assignment is made pursuant to the terms of Section 1301(d) of the Indenture, dated as of
October 1, 1991, as amended from time to time (the “Agreement”), between Citibank, N.A. or
its successor hereunder (the “Representative”), acting on behalf of the Holders of the debt
issued under the Indenture who have not opted out of representation by the Representative (the
“Holders”), and U.S. Bancorp (the “Company”) with respect to the debt obligations
of the Company that are guaranteed under the TLG Program. Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned thereto in the Indenture.

     For value received, the Representative, on behalf of the Holders (the “Assignor”),
hereby assigns to the Federal Deposit Insurance Corporation (the “FDIC”), without recourse,
all of the Assignor’s respective rights, title and interest in and to: (a) the promissory note or
other instrument evidencing the debt issued under the Indenture (the “Note”); (b) the
Indenture pursuant to which the Note was issued; and (c) any other instrument or agreement executed
by the Company regarding obligations of the Company under the Note or the Indenture (collectively,
the “Assignment”).

     The Assignor hereby certifies that:

	 	1.	 	Without the FDIC’s prior written consent, the Assignor has not:

	 	(a)	 	agreed to any material amendment of the Note or the Indenture or to any
material deviation from the provisions thereof; or
	 
	 	(b)	 	accelerated the maturity of the Note.

[Instructions to the Assignor: If the Assignor has not assigned or transferred any interest in the
Note and related documentation, such Assignor must include the following representation.]

	 	2.	 	The Assignor has not assigned or otherwise transferred any interest in the Note or the
Indenture;

[Instructions to the Assignor: If the Assignor has assigned a partial interest in the Note and
related documentation, the Assignor must include the following representation.]

	 	2.	 	The Assignor has assigned part of its rights, title and interest in the Note and the
Indenture to                      pursuant to the                      agreement,
dated as of                     , 20   , between, as assignor, and                     , as
assignee, an executed copy of which is attached hereto.

     The Assignor acknowledges and agrees that this Assignment is subject to the Indenture and to
the following:

	 	1.	 	In the event the Assignor receives any payment under or related to the Note or the
Indenture from a party other than the FDIC (a “Non-FDIC Payment”):

	 	(a)	 	after the date of demand for a guarantee payment on the FDIC pursuant to 12
C.F.R. Part 370, but prior to the date of the FDIC’s first guarantee payment under the
Indenture pursuant to 12 C.F.R. Part 370, the Assignor shall promptly but in no event
later than five (5) Business Days after receipt notify the FDIC of the date and the
amount of such Non-FDIC Payment and shall apply such payment as

 

			
	1	 	This Form of Assignment shall be modified as
appropriate if the assignment is being made by an individual debt Holder
rather than the Representative or if the debt being assigned is not in
certificated form or otherwise represented by a written instrument.

A-1

 

	 	 	 	payment made by the Company, and not as a guarantee payment made by the FDIC, and
therefore, the amount of such payment shall be excluded from this Assignment; and
	 
	 	(b)	 	after the FDIC’s first guarantee payment under the Indenture, the Assignor
shall forward promptly to the FDIC such Non-FDIC Payment in accordance with the payment
instructions provided in writing by the FDIC.

	 	2.	 	Acceptance by the Assignor of payment pursuant to the TLG Program on behalf of the
Holders shall constitute a release by such Holders of any liability of the FDIC under the
TLG Program with respect to such payment.

     The Person who is executing this Assignment on behalf of the Assignor hereby represents and
warrants to the FDIC that he/she/it is duly authorized to do so.

A-2

 

     IN WITNESS WHEREOF, the Assignor has caused this instrument to be executed and delivered this
      day of                     , 20   .

	 	 	 	 	 	 	 
	 	 	Very truly yours,
[ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	          (Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	          (Print)	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	          (Print)	 	 

A-3

 

     Consented to and acknowledged by this       day of                     , 20   .

	 	 	 	 	 
	THE FEDERAL DEPOSIT INSURANCE CORPORATION
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	          (Signature)	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 

	 	          (Print)	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 

	 	          (Print)	 	 

A-4

 

Exhibit B-1

[Form of Global Fixed Rate Note]

B-1-1

 

This Note is a Global Security within the meaning of the Indenture referred to herein and is
registered in the name of a Depositary or a nominee of a Depositary. Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”) to the issuer or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name as is requested by
an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity
as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

THIS DEBT IS GUARANTEED UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION’S TEMPORARY LIQUIDITY
GUARANTEE PROGRAM AND IS BACKED BY THE FULL FAITH AND CREDIT OF THE UNITED STATES. THE DETAILS OF
THE FDIC GUARANTEE ARE PROVIDED IN THE FDIC’S REGULATIONS, 12 CFR PART 370, AND AT THE FDIC’S
WEBSITE, WWW.FDIC.GOV/TLGP. THE EXPIRATION DATE OF THE FDIC’S GUARANTEE IS THE EARLIER OF THE
MATURITY DATE OF THE DEBT OR JUNE 30, 2012. SUCH PROGRAM IS REFERRED TO HEREIN AS THE “TLG
PROGRAM.”

THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT AND IS NOT AN OBLIGATION OF OR GUARANTEED BY U.S.
BANCORP OR ANY OTHER BANKING OR NONBANKING AFFILIATE OF U.S. BANCORP.

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

THE SECOND SUPPLEMENTAL INDENTURE TO THE INDENTURE CONTAINS PROVISIONS APPLICABLE TO NOTES ISSUED
SUBJECT TO THE FDIC GUARANTEE, BUT ONLY FOR SO LONG AS THE FDIC GUARANTEE REMAINS IN EFFECT OR
UNTIL SUCH LATER TIME AS MAY BE REQUIRED BY THE RULES AND REGULATIONS OF THE FDIC OR ANY SUCCESSOR
ENTITY. THE PROVISIONS OF SECTION 1301 OF THE INDENTURE, AS SET FORTH IN SUCH SUPPLEMENTAL
INDENTURE, ARE APPLICABLE TO THIS NOTE, AND REFERENCE IS MADE TO SUCH SECTION 1301 FOR ADDITIONAL
PROVISIONS THAT GOVERN THIS NOTE.

THIS SECURITY IS GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION AND THE RIGHTS OF THE
HOLDER OF THIS NOTE ARE SUBJECT TO CERTAIN RIGHTS OF THE FDIC AS SET FORTH IN THIS NOTE AND THE
INDENTURE.

B-1-2

 

	 	 	 	 	 
	REGISTERED

No. RA-

	 	U.S. BANCORP

Medium-Term Note, Series R (Senior)

(Global Fixed Rate Note)

(Guaranteed under the FDIC’s

Temporary Liquidity Guarantee Program

(the “TLG Program”))
	 	REGISTERED

Principal Amount:

$

CUSIP

No.

	 	 	 
	ORIGINAL ISSUE DATE:

	 	MATURITY DATE:
	 
	 	 
	INTEREST RATE:

	 	REDEMPTION TERMS:
	 
	 	 
	SPECIFIED CURRENCY:

	 	OTHER TERMS:
	 

	 	FDIC guaranteed, as described below

     U.S. BANCORP, a corporation duly organized and existing under the laws of Delaware (herein
called the “Company”, which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to                      or registered assigns, the principal sum of                      DOLLARS ($                    ) on the
Maturity Date shown above or, together with any premium thereon, upon any applicable Redemption
Date, and to pay interest thereon from the Original Issue Date shown above or from and including
the most recent Interest Payment Date to which interest has been paid or duly provided for, on (but
excluding) each February 1 and August 1 or such other dates, if any, as are specified under “Other
Terms” above (the “Interest Payment Dates”), commencing with the Interest Payment Date immediately
following the Original Issue Date, at the rate per annum equal to the Interest Rate shown above,
until the principal hereof is paid or made available for payment; provided, however, that if the
Original Issue Date is between a Regular Record Date and an Interest Payment Date, interest
payments will be made on the Interest Payment Date following the next succeeding Regular Record
Date. The interest 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 Note (or one or
more predecessor Notes) is registered at the close of business on the Regular Record Date related
to the Interest Payment Date, which shall, unless otherwise specified under “Other Terms” above, be
the day (whether or not a Business Day) fifteen calendar days preceding each Interest Payment Date;
provided, however, that interest payable on the Maturity Date of this Note or any applicable
Redemption Date shall be payable to the Person to whom principal shall be payable. Any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder hereof on such Regular Record Date and may be paid to the Person in whose name this Note (or
one or more predecessor Notes) 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
the Holder of this Note not less than 10 days prior to such Special Record Date. In the event that
any Maturity Date or Redemption Date is not a Business Day, the principal otherwise payable on such
date will be paid on the next day that is a Business

B-1-3

 

Day with the same force and effect as if
made on such Maturity Date or Redemption Date, and no interest will accrue for the period from
and after that Maturity Date or Redemption Date, as applicable. In the event that any Interest
Payment Date is not a Business Day, such Interest Payment Date shall be postponed to the next day
that is a Business Day, and no interest will accrue with respect to the payment due on such
Interest Payment Date for the period from and after that Interest Payment Date to the next
succeeding Business Day. Payment of the principal of (and premium, if any) and interest on this
Note will be made to The Depository Trust Company, as depositary, or its nominee as the registered
owner of the global notes representing the book entry notes, provided, however, that the Company
may, at its option, pay interest on any Certificated Note, other than interest at maturity or upon
redemption, by mailing a check to the address of the Person entitled to payment as it appears on
the Security Register of the Company at the close of business on the Regular Record Date
corresponding to the relevant Interest Payment Date. A Holder of $10,000,000 (or the equivalent of
$10,000,000 in a currency other than U.S. dollars) or more in aggregate principal amount of Notes
of like tenor and term shall be entitled to receive payments by wire transfer of immediately
available funds, but only if appropriate wire transfer instructions have been received in writing
by the Trustee or the applicable Paying Agent not later than fifteen calendar days prior to the
applicable Interest Payment Date. Payment of the principal of (and premium, if any) and interest
on this Note due on the Maturity Date or any applicable Redemption Date will be made in immediately
available funds upon presentation of this Note. Interest on this Note shall be computed on the
basis of a 360-day year of twelve 30-day months.

     The principal of and any premium and interest on this Note are payable by the Company in the
Specified Currency for this Note. If the Specified Currency for this Note is other than U.S.
dollars, the Company will (unless otherwise specified on the face hereof) arrange to convert all
payments in respect of this Note into U.S. dollars in the manner described in the following
paragraph. If this Note has a Specified Currency other than U.S. dollars, the Holder may (if so
indicated on the face hereof) elect to receive all payments in respect of this Note in the
Specified Currency by delivery of a written notice to the Trustee or the applicable Paying Agent
not later than fifteen days prior to the applicable payment date, subject to certain exceptions.
That election will remain in effect until revoked by written notice to the Trustee or Paying Agent
received no later than fifteen calendar days prior to the applicable payment date.

     In case the Specified Currency on the face hereof is other than U.S. dollars, the amount of
any U.S. dollar payment will be based on the bid quoted by an exchange rate agent as of 11:00 a.m.,
London time, on the second day preceding the applicable payment date on which banks are open for
business in London and New York City, for the purchase of U.S. dollars with the Specified Currency
for settlement on the payment date of the aggregate amount of the Specified Currency payable to
Holders of Notes denominated in other than U.S. dollars and who are scheduled to receive U.S.
dollar payments. If this bid quotation is not available, such exchange rate agent will obtain a
bid quotation from a leading foreign exchange bank in London or New York City selected by such
exchange rate agent. If the bids are not available, payment of the aggregate amount due to all
Holders on the payment date will be in the Specified Currency. All currency exchange costs will be
borne by the Holder of this Note by deductions from such payments due such Holder.

B-1-4

 

     Reference is hereby made to the further provisions of this Note set forth on the reverse side
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 or on behalf of the
Trustee identified below, by manual signature, this Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

B-1-5

 

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

	 	 	 	 	 	 	 
	 	 	U.S. BANCORP	 	 
	 
	 	 	 	 	 	 
	Dated:

	 	By
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Assistant Secretary	 	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 
	 	 	 	 
	This is one of the Securities of the series
designated herein and issued pursuant to
the within-mentioned Indenture.	 	 
	 
	 	 	 	 
	CITIBANK, N.A.,
as Trustee	 	 
	 
	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	 
	 	 	 	 
	Or by	 	 
	 
	 	 	 	 
	U.S. BANK TRUST NATIONAL ASSOCIATION,

as Authenticating Agent
	 
	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	Authorized Officer	 	 

B-1-6

 

[Reverse Side of Note]

U.S. BANCORP

Medium-Term Note, Series R (Senior)

(Global Fixed Rate Note)

     This Note is one of a duly authorized issue of securities of the Company (herein called the
“Notes”), issued or to be issued in one or more series under an Indenture, dated as of October 1,
1991, as supplemented by a First Supplemental Indenture dated as of August 6, 2001 and a Second
Supplemental Indenture dated as of March 13, 2009 (together, the “Indenture”), between the Company
and Citibank, N.A., as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms
upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the
series designated herein. By the terms of the Indenture, additional Notes of this series and of
other separate series, which may vary as to date, amount, Stated Maturity, interest rate or method
of calculating the interest rate and in other respects as therein provided, may be issued in an
unlimited principal amount.

     By the acceptance of this Note, the Holder hereof hereby agrees to the appointment of the
Trustee as its representative (the “Representative”) for purposes of making claims and taking all
actions permitted or required under the TLG Program and in accordance with the terms of, and under
the circumstances set forth in, the Indenture. Any Holder may elect not to be represented by the
Representative by providing written notice of such election to the Representative (it being
understood that such election shall not affect the Trustee’s capacity under the Indenture except as
the representative of such Holder under the FDIC’s TLG Program).

     If possible Redemption Dates or periods within which Redemption Dates may occur and the
related Redemption Prices (expressed as percentages of the principal amount of this Note) are set
forth on the face hereof under “Redemption Terms”, this Note is subject to redemption prior to the
Maturity Date upon not less than 30 nor more than 60 days’ notice mailed to the Person in whose
name this Note is registered at such address as shall appear in the Security Register of the
Company, on any Redemption Date so specified or occurring within any period so specified, as a
whole or in part, at the election of the Company, at the applicable Redemption Price so specified,
together in the case of any such redemption with accrued interest, if any, to the Redemption Date;
provided, however, that installments of interest whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holder of this Note (or one or more predecessor Notes) at
the close of business on the relevant Record Dates referred to on the face hereof, all as provided
in the Indenture. In the event of redemption of less than all of the principal of this Note, a new
Note of this series and with similar terms, and of an authorized denomination representing the
unredeemed portion of this Note will be issued in the name of the Holder hereof upon the
cancellation hereof. Unless otherwise specified on the face hereof under “Redemption Terms,” this
Note is not subject to any sinking fund.

B-1-7

 

     If an Event of Default concerning: (1) default (a) by the Company in the payment of interest,
if any, upon the Notes when it becomes due and payable and continuance of such default for a period
of 30 days and (b) by the FDIC in the payment of interest, if any, upon the Notes in accordance
with the TLG Program (12 C.F.R. Part 370); or (2) default (a) by the Company in the payment of the
principal of (or premium, if any, on) the Notes on its Maturity Date and (b) by the FDIC in the
payment of the principal of (or premium, if any, on) the Note in accordance with the TLG Program
(12 C.F.R. Part 370) shall occur and is continuing, the principal of the Notes may be declared due
and payable in the manner and with the effect provided in the Indenture. Upon payment (i) of the
amount of principal so declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest shall be legally
enforceable), all of the Company’s obligations in respect of the payment of the principal of and
interest, if any, on the Notes shall terminate.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Notes of each series to be affected under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of not less than a majority in aggregate principal amount of the
Notes at the time Outstanding of each series to be affected and, for certain purposes, without the
consent of the Holders of any Notes at the time Outstanding; provided, however, that the express
written consent of the FDIC will be required to amend, modify or waive any provision of the Notes
which series are guaranteed by the FDIC pursuant to its TLG Program (12 C.F.R. Part 370), or the
provisions of the Indenture relating to principal, interest, default or ranking provisions of the
Notes; any provisions of the Notes or the Indenture required to be included by a “Master Agreement”
between the Company and the FDIC relating to the Company’s participation in the TLG Program (12
C.F.R. Part 370); or any other provision that would require the consent of all Holders of the
Notes. The Indenture also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Notes of each series at the time Outstanding, on behalf of the
Holders of all Notes of such series, to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note 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 Note.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of (and premium, if any) and interest on this Note 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 Note is registrable in the Security Register of the Company, upon surrender of
this Note for registration of transfer at the office or agency of the Company in any place where
the principal of (and premium, if any) and interest on this Note are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Notes of this series and of like tenor of authorized

B-1-8

 

denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     Unless otherwise set forth on the face hereof, under “Other Terms”, the Notes of this series
are issuable only in fully registered form without coupons in denominations of $2,000 or any amount
in excess of $2,000 which is an integral multiple of $1,000. As provided in the Indenture and
subject to certain limitations therein set forth, Notes of this series are exchangeable for a like
aggregate principal amount of Notes of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

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

     Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered in the Security Register as the owner hereof for all purposes, whether or not this Note
be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Note may have such additional or different terms as are set forth on the face hereof
under “Other Terms.” Any terms so set forth shall be deemed to modify and/or supersede, as
necessary, any other terms set forth in this Note.

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

     Unless otherwise defined herein, all terms used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

B-1-9

 

ABBREVIATIONS

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

	 	 	 	 	 	 	 	 	 
	TEN COM—as tenants in common
	TEN ENT—as tenants by the entireties
	JT TEN—as joint tenants with right of survivorship and not as tenants in common
	UNIF GIFT MIN ACT—	 	 	 	Custodian	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	(Cust)
	 	 	 	(Minor)	 	 
	 	 	under Uniform Gift to Minors Act	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	(State)
	 	 	 	 

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

B-1-10

 

ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE

 

(Name and address of assignee, including zip code, must be printed or typewritten)

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

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

	 	 	 	 	 
	Dated
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 

     NOTICE: The signature to this assignment must correspond with the name as written upon the
within Note in every particular, without alteration or enlargement or any change whatever and must
be guaranteed by a commercial bank or trust company having its principal office or a correspondent
in New York City or by a member of the New York Stock Exchange.

B-1-11

 

Exhibit B-2

[Form of Global Floating Rate Note]

B-2-1

 

This Note is a Global Security within the meaning of the Indenture referred to herein and is
registered in the name of a Depositary or a nominee of a Depositary. Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”) to the issuer or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name as is requested by
an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity
as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

THIS DEBT IS GUARANTEED UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION’S TEMPORARY LIQUIDITY
GUARANTEE PROGRAM AND IS BACKED BY THE FULL FAITH AND CREDIT OF THE UNITED STATES. THE DETAILS OF
THE FDIC GUARANTEE ARE PROVIDED IN THE FDIC’S REGULATIONS, 12 CFR PART 370, AND AT THE FDIC’S
WEBSITE, WWW.FDIC.GOV/TLGP. THE EXPIRATION DATE OF THE FDIC’S GUARANTEE IS THE EARLIER OF THE
MATURITY DATE OF THE DEBT OR JUNE 30, 2012. SUCH PROGRAM IS REFERRED TO HEREIN AS THE “TLG
PROGRAM.”

THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT AND IS NOT AN OBLIGATION OF OR GUARANTEED BY U.S.
BANCORP OR ANY OTHER BANKING OR NONBANKING AFFILIATE OF U.S. BANCORP.

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

THE SECOND SUPPLEMENTAL INDENTURE TO THE INDENTURE CONTAINS PROVISIONS APPLICABLE TO NOTES ISSUED
SUBJECT TO THE FDIC GUARANTEE, BUT ONLY FOR SO LONG AS THE FDIC GUARANTEE REMAINS IN EFFECT OR
UNTIL SUCH LATER TIME AS MAY BE REQUIRED BY THE RULES AND REGULATIONS OF THE FDIC OR ANY SUCCESSOR
ENTITY. THE PROVISIONS OF SECTION 1301 OF THE INDENTURE, AS SET FORTH IN SUCH SUPPLEMENTAL
INDENTURE, ARE APPLICABLE TO THIS NOTE, AND REFERENCE IS MADE TO SUCH SECTION 1301 FOR ADDITIONAL
PROVISIONS THAT GOVERN THIS NOTE.

THIS SECURITY IS GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION AND THE RIGHTS OF THE
HOLDER OF THIS NOTE ARE SUBJECT TO CERTAIN RIGHTS OF THE FDIC AS SET FORTH IN THIS NOTE AND THE
INDENTURE.

B-2-2

 

	 	 	 	 	 
	REGISTERED

No. RB-

	 	 
U.S. Bancorp

Medium-Term Note, Series R (Senior)

(Global Floating Rate Note)

(Guaranteed under the FDIC’s

Temporary Liquidity Guarantee Program

(the “TLG Program”))
	 	REGISTERED

Principal Amount:

$

CUSIP

No.

	 	 	 	 	 	 	 
	ORIGINAL ISSUE DATE:	 	MATURITY DATE:
	 
	 	 	 	 	 	 
	INITIAL INTEREST RATE:	 	SPREAD:
	 
	 	 	 	 	 	 
	BASE RATE (and, if applicable, related Interest Periods):	 	SPREAD MULTIPLIER:
	 
	 	 	 	 	 	 
	o	 	Commercial Paper Rate	 	REDEMPTION TERMS:
	o	 	Federal Funds Rate	 	 
	 

	 	o
	 	Federal Funds (Effective) Rate	 	 
	 

	 	o
	 	Federal Funds Open Rate	 	 
	 

	 	o
	 	Federal Funds Target Rate	 	 
	o	 	LIBOR	 	 
	o	 	EURIBOR	 	 
	o	 	Prime Rate	 	 
	o	 	CD Rate	 	 
	o	 	Treasury Rate	 	 
	o	 	CMT Rate	 	 
	 

	 	o
	 	Reuters Page FRBCMT	 	 
	 

	 	o
	 	Reuters Page FEDCMT	 	 
	 

	 	 	 	o One-Week o One-Month	 	 
	o	 	Other (see “Other Terms”)	 	OTHER TERMS: FDIC guaranteed, as described below
	 
	 	 	 	 	 	 
	INDEX MATURITY:	 	 
	 
	 	 	 	 	 	 
	MAXIMUM INTEREST RATE:	 	 
	 
	 	 	 	 	 	 
	MINIMUM INTEREST RATE:	 	 
	 
	 	 	 	 	 	 
	INTEREST RESET DATES:	 	 
	 
	 	 	 	 	 	 
	INTEREST PAYMENT DATES:	 	 
	 
	 	 	 	 	 	 
	INTEREST RESET PERIOD:	 	 
	 
	 	 	 	 	 	 
	SPECIFIED CURRENCY:	 	 
	 
	 	 	 	 	 	 
	DAY COUNT CONVENTION:	 	 
	o	 	30/360 for the period	 	 
	 	 	From            To           	 	 
	o	 	Actual/360 for the period	 	 
	 	 	From            To           	 	 
	o	 	Actual/Actual for the period	 	 
	 	 	From            To           	 	 

B-2-3

 

     U.S. BANCORP, a corporation duly organized and existing under the laws of Delaware (herein
called the “Company”, which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to                      or registered
assigns, the principal sum of                      DOLLARS
($                    ) on the Maturity Date shown above or, together with any premium thereon,
upon any applicable Redemption Date, and to pay interest thereon from the Original Issue Date shown
above or, except as otherwise specified below, from and including the most recent Interest Payment
Date to which interest has been paid or duly provided for, on each Interest Payment Date shown
above, commencing with the Interest Payment Date immediately following the Original Issue Date, at
the rate per annum determined in accordance with the provisions set forth on the reverse side
hereof relating to the applicable Base Rate specified above, until the principal hereof is paid or
made available for payment; provided, however, that if the Original Issue Date is between a Regular
Record Date and an Interest Payment Date, interest payments will be made on the Interest Payment
Date following the next succeeding Regular Record Date. The interest so payable and punctually
paid or duly provided for on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Note (or one or more predecessor Notes) is registered at the
close of business on the Regular Record Date related to the Interest Payment Date, which, unless
otherwise specified under “Other Terms” above, shall be the day (whether or not a Business Day)
fifteen calendar days preceding each Interest Payment Date; provided, however, that interest
payable on the Maturity Date of this Note or any applicable Redemption Date shall be payable to the
Person to whom principal shall be payable. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder hereof on such Regular Record Date
and may be paid to the Person in whose name this Note (or one or more predecessor Notes) 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 the Holder of this Note not
less than 10 days prior to such Special Record Date. In the event that any Maturity Date or
Redemption Date is not a Business Day, the principal otherwise payable on such date will be paid on
the next day that is a Business Day with the same force and effect as if made on such Maturity Date
or Redemption Date, as applicable. In the event that any Interest Payment Date is not a Business
Day, such Interest Payment Date shall be postponed to the next day that is a Business Day, provided
that, for LIBOR and EURIBOR notes, if such Business Day is in the next succeeding calendar month,
such Interest Payment Date shall be the immediately preceding Business Day. Payment of the
principal of (and premium, if any) and interest on this Note will be made to The Depository Trust
Company, as depositary, or its nominee as the registered owner of the global notes representing the
book entry notes, provided, however, that the Company may, at its option, pay interest on any
Certificated Note, other than interest at maturity or upon redemption, by mailing a check to the
address of the Person entitled to payment as it appears on the Security Register of the Company at
the close of business on the Regular Record Date corresponding to the relevant Interest Payment
Date. A Holder of $10,000,000 (or the equivalent of $10,000,000 in a currency other than U.S.
dollars) or more in aggregate principal amount of Notes of like tenor and term shall be entitled to
receive payments by wire transfer of immediately available funds, but only if appropriate wire
transfer instructions have been received in writing by the Trustee or the applicable Paying Agent
not later than fifteen calendar days prior to the applicable Interest Payment Date. Payment of the
principal of (and premium, if any) and interest on this Note due on the Maturity Date or any
applicable Redemption Date will be made in immediately available

B-2-4

 

funds. If possible Redemption Dates or periods within which Redemption Dates may occur and
the related Redemption Prices (expressed as percentages of the principal amount of this Note) are
set forth above under “Redemption Terms”, this Note is subject to redemption, in whole or in part,
at the option of the Company prior to the Maturity Date upon not less than 30 nor more than 60
days’ notice mailed to the registered holder of the Note.

     The principal of and any premium and interest on this Note are payable by the Company in the
Specified Currency for this Note. If the Specified Currency for this Note is other than U.S.
dollars, the Company will (unless otherwise specified on the face hereof) arrange to convert all
payments in respect of this Note into U.S. dollars in the manner described in the following
paragraph. If this Note has a Specified Currency other than U.S. dollars, the Holder may (if so
indicated on the face hereof) elect to receive all payments in respect of this Note in the
Specified Currency by delivery of a written notice to the Trustee or the applicable Paying Agent
not later than fifteen days prior to the applicable payment date. That election will remain in
effect until revoked by written notice to the Trustee or Paying Agent received no later than
fifteen calendar days prior to the applicable payment date.

     In case the Specified Currency on the face hereof is other than U.S. dollars, the amount of
any U.S. dollar payment will be based on the bid quoted by an exchange rate agent as of 11:00 a.m.,
London time, on the second day preceding the applicable payment date on which banks are open for
business in London and New York City, for the purchase of U.S. dollars with the Specified Currency
for settlement on the payment date of the aggregate amount of the Specified Currency payable to
Holders of Notes denominated in other than U.S. dollars and who are scheduled to receive U.S.
dollar payments. If this bid quotation is not available, such exchange rate agent will obtain a
bid quotation from a leading foreign exchange bank in London or New York City selected by such
exchange rate agent. If the bids are not available, payment of the aggregate amount due to all
Holders on the payment date will be in the Specified Currency. All currency exchange costs will be
borne by the Holder of this Note by deductions from such payments due such Holder.

     Reference is hereby made to the further provisions of this Note set forth on the reverse side
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 or on behalf of the
Trustee referred to below by manual signature, this Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

B-2-5

 

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

	 	 	 	 	 	 	 
	 	 	U.S. BANCORP	 	 
	 
	 	 	 	 	 	 
	Dated:

	 	By
	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest
	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Assistant Secretary	 	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 
	 	 	 	 
	This is one of the Securities of the series
designated herein and issued pursuant
to the within-mentioned Indenture.	 	 
	 
	 	 	 	 
	CITIBANK, N.A.,

as Trustee	 	 
	 
	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Authorized Signatory	 	 
	 
	 	 	 	 
	Or by	 	 
	 
	 	 	 	 
	U.S. BANK TRUST NATIONAL ASSOCIATION,

as Authenticating Agent
	 
	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	Authorized Officer	 	 

B-2-6

 

[Reverse Side of Note]

U.S. BANCORP

Medium-Term Note, Series R (Senior)

(Global Floating Rate Note)

     This Note is one of a duly authorized issue of securities of the Company (herein called the
“Notes”), issued or to be issued in one or more series under an Indenture, dated as of October 1,
1991, as supplemented by a First Supplemental Indenture dated as of August 6, 2001 and a Second
Supplemental Indenture dated as of March 13, 2009 (together, the “Indenture”), between the Company
and Citibank, N.A., as Trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes and the terms upon
which the Notes are, and are to be, authenticated and delivered. This Note is one of the series
designated herein. By the terms of the Indenture, additional Notes of this series and of other
separate series, which may vary as to date, amount, Stated Maturity, interest rate or method of
calculating the interest rate and in other respects as therein provided, may be issued in an
unlimited principal amount.

     By the acceptance of this Note, the Holder hereof hereby agrees to the appointment of the
Trustee as its representative (the “Representative”) for purposes of making claims and taking all
actions permitted or required under the TLG Program and in accordance with the terms of, and under
the circumstances set forth in, the Indenture. Any Holder may elect not to be represented by the
Representative by providing written notice of such election to the Representative (it being
understood that such election shall not affect the Trustee’s capacity under the Indenture except as
the representative of such Holder under the TLG Program).

     General

     The rate of interest for this Note will be determined by reference to one or more Base Rates
specified on the face hereof, which may be adjusted by a Spread and/or Spread Multiplier. The
“Spread” is the number of basis points, or one-hundredth of a percentage point, specified on the
face hereof to be added or subtracted from the Base Rate specified on the face hereof. The “Spread
Multiplier” is the percentage specified on the face hereof to be applied to the Base Rate specified
on the face hereof. This Note may also have either or both of the following: (i) a Maximum
Interest Rate, or ceiling, on the rate at which interest will accrue during any Interest Reset
Period; and (ii) a Minimum Interest Rate, or floor, on the rate at which interest will accrue
during any Interest Reset Period. Notwithstanding the foregoing, the interest rate per annum
hereon shall not be greater than the Maximum Interest Rate, if any, or less than the Minimum
Interest Rate, if any, specified on the face hereof. The interest rate on this Note will in no
event be higher than the maximum rate permitted by New York law as the same may be modified by
United States law of general application. Under present New York law, the maximum rate of interest
is 25% per annum on a simple interest basis. This limit may not apply to Notes in which $2,500,000
or more has been invested.

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     Commencing with the Interest Reset Date specified on the face hereof, first following the
Original Issue Date specified on the face hereof, the rate at which this Note bears interest will
be reset daily, weekly, monthly, quarterly, semi-annually or annually (such specified period, an
“Interest Reset Period,” and the date on which each such reset occurs, an “Interest Reset Date”).
Unless otherwise specified on the face hereof under “Other Terms,” the Interest Reset Date will be
as follows: in the case of Notes which are reset daily, each Business Day; in the case of Notes
(other than Treasury Rate Notes) which are reset weekly, the Wednesday of each week; in the case of
Treasury Rate Notes which are reset weekly, the Tuesday of each week (except if the auction date
falls on a Tuesday, then the next Business Day, as provided below); in the case of Notes which are
reset monthly, the third Wednesday of each month; in the case of Notes which are reset quarterly,
the third Wednesday of March, June, September and December of each year; in the case of Notes which
are reset semi-annually, the third Wednesday of the two months of each year as indicated on the
face hereof, by the Interest Reset Dates; and in the case of Notes which are reset annually, the
third Wednesday of the month of each year as indicated on the face hereof, by the Interest Reset
Dates. Unless otherwise specified on the face hereof, the interest rate determined with respect to
any Interest Determination Date (as defined below) will become effective on the next succeeding
Interest Reset Date; provided, however, that the interest rate in effect from the Original Issue
Date to the first Interest Reset Date with respect to this Note (the “Initial Interest Rate”) will
be as set forth on the face hereof. If any Interest Reset Date for any Note would otherwise be a
day that is not a Business Day, such Interest Reset Date shall be postponed to the next day that is
a Business Day, provided that, for LIBOR and EURIBOR notes, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately preceding Business
Day. Subject to applicable provisions of law and except as specified herein, on each Interest
Reset Date the rate of interest on this Note shall be the rate determined in accordance with the
provisions of the applicable heading below.

     As used herein, “Interest Determination Date” is the date that the Calculation Agent will
refer to, when determining the new interest rate at which the interest rate on a Floating Rate Note
will reset. Unless otherwise specified on the face hereof under “Other Terms,” the Interest
Determination Date pertaining to an Interest Reset Date for a Commercial Paper Rate Note, a CD Rate
Note, or a CMT Rate Note (the “Commercial Paper Rate Interest Determination Date”, the “CD Rate
Interest Determination Date”, and the “CMT Rate Interest Determination Date”, respectively) will be
the second Business Day before the Interest Reset Date; for Federal Funds Rate Notes and Prime Rate
Notes, the Business Day immediately preceding the related Interest Reset Date (the “Federal Funds
Rate Interest Determination Date” and the “Prime Rate Interest Determination Date”, respectively);
for EURIBOR Notes, the second TARGET Business Day before the Interest Reset Date (the “EURIBOR
Interest Determination Date”); and for LIBOR Notes, the second London Business Day before the
Interest Reset Date (the “LIBOR Interest Determination Date”). Unless otherwise specified on the
face hereof under “Other Terms,” the Interest Determination Date pertaining to an Interest Reset
Date for a Treasury Rate Note (the “Treasury Rate Interest Determination Date”) will be the
Business Day (other than the Interest Reset Date) on which Treasury Bills would normally be
auctioned in the week in which such Interest Reset Date falls. Treasury Bills are usually sold at
auction on Monday of each week, unless that day is a legal holiday, in which case the auction is
usually held on the following Tuesday, but the auction may be held on the preceding Friday. If, as
the result of a legal holiday, an auction is so held on the preceding Friday, that Friday will be
the Treasury Rate Interest Determination Date pertaining to the Interest Reset Date occurring in
the next week. If an

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auction falls on a day that is an Interest Reset Date for a Treasury Rate Note, the Interest
Reset Date will be the following Business Day. The Interest Determination Date for a Floating Rate
Note, which interest rate is determined by two or more Base Rates, will be the latest Business Day
which is at least two Business Days prior to the Interest Reset Date for such Floating Rate Note on
which each such Base Rate can be determined.

     Unless otherwise specified on the face hereof under “Other Terms,” interest payments on this
Note on an Interest Payment Date will accrue from and including the most recent Interest Payment
Date on which interest is paid or duly provided for, or if no interest is paid or duly provided
for, the date will be from and including the Original Issue Date or any other date specified on the
face hereof on which interest begins to accrue. Interest will accrue to, but excluding, the next
Interest Payment Date, or if earlier, the date on which the principal is paid or duly made
available for payment. Accrued interest is calculated by multiplying the face amount of this Note
by the applicable accrued interest factor (the “Accrued Interest Factor”). This Accrued Interest
Factor is the sum of the interest factors calculated for each day from the Original Issue Date or
from the last date to which interest has been paid or duly provided for to the date for which
accrued interest is being calculated. The interest factor for each such day is computed by
dividing the annual interest rate, expressed as a decimal, applicable to that day by 360 in the
case of Commercial Paper Rate Notes, Federal Funds Rate Notes, LIBOR Notes, EURIBOR Notes, Prime
Rate Notes, and CD Rate Notes, or by the actual number of days in the year in the case of Treasury
Rate Notes and CMT Rate Notes. The interest rate in effect on each day will be (i) if the day is
an Interest Reset Date, the interest rate for the Interest Determination Date related to the
Interest Reset Date or (ii) if the day is not an Interest Reset Date, the interest rate for the
Interest Determination Date related to the next preceding Interest Reset Date, subject in either
case to the Maximum Interest Rate or Minimum Interest Rate referred to on the face hereof.

     On or before the Calculation Date (as defined below), U.S. Bank Trust National Association, as
Calculation Agent (the “Calculation Agent”), will determine the interest rate in accordance with
the foregoing with respect to the applicable Base Rate and will notify the Paying Agent. The
Paying Agent will determine the Accrued Interest Factor applicable to this Note. The Paying Agent
will, upon the request of the Holder of this Note, provide the interest rate then in effect and the
interest rate which will become effective as a result of a determination made with respect to the
most recent Interest Determination Date with respect to this Note. The determinations of interest
rates made by the Calculation Agent shall, in the absence of manifest error, be conclusive and
binding, and neither the Trustee nor the Paying Agent shall have the duty to verify determinations
of interest rates made by the Calculation Agent. The determinations of Accrued Interest Factors
made by the Paying Agent shall be conclusive and binding. Unless otherwise specified on the face
hereof under “Other Terms,” the “Calculation Date” means the earlier of (i) the tenth calendar day
after such Interest Determination Date, or, if that day is not a Business Day, the following
Business Day, and (ii) the Business Day before the applicable Interest Payment Date, Maturity Date
or Redemption Date, as the case may be.

     Unless otherwise specified on the face hereof under “Other Terms,” all percentages resulting
from any calculation on this Note, will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded
upward. For example, 9.876545% (or .09876545) will be rounded to 9.87655% (or

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.0987655) and 9.876544% (or .09876544) will be rounded to 9.87654% (or .0987654)). All
calculations of the Accrued Interest Factor for any day on Floating Rate Notes will be rounded, if
necessary, to the nearest one hundred-millionth, with five one-billionths rounded upward (e.g.,
        .098765455 will be rounded to .09876546 and .098765454 will be rounded to .09876545). All dollar
amounts used in or resulting from calculation on this Note will be rounded to the nearest cent,
with one-half cent being rounded upward.

     Determination of Commercial Paper Rate

     If the Base Rate specified on the face hereof with respect to any Interest Period is the
Commercial Paper Rate, this Note is a “Commercial Paper Rate Note” with respect to such Interest
Period and the interest rate with respect to this Note for any Interest Reset Date relating to such
Interest Period shall be the Commercial Paper Rate as adjusted by the Spread and/or the Spread
Multiplier, if any, as specified on the face hereof, as determined on the applicable Commercial
Paper Rate Interest Determination Date. Commercial Paper Rate Notes will be subject to the Minimum
Interest Rate and Maximum Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” “Commercial Paper Rate”
means, with respect to any Commercial Paper Rate Interest Determination Date, the Money Market
Yield (calculated as described below) of the rate on that date for commercial paper having the
Index Maturity specified on the face hereof as published in “Statistical Release H.15(519),
Selected Interest Rates” or any successor publication of the Board of Governors of the Federal
Reserve System (“H.15 (519)”) under the heading “Commercial Paper — Nonfinancial.”

     The following procedures will be followed if the Commercial Paper Rate cannot be determined as
described above: (1) If the rate is not published by 3:00 p.m., New York City time, on the
Calculation Date relating to the Commercial Paper Rate Interest Determination Date, then the
Commercial Paper Rate will be the Money Market Yield of the rate on the Commercial Paper Rate
Interest Determination Date for commercial paper having the Index Maturity specified on the face
hereof as set forth in the daily update of H.15(519), available through the worldwide website of
the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/update, or any successor site or publication (the “H.15
Daily Update”) under the heading “Commercial Paper — Nonfinancial;” (2) If by 3:00 p.m., New York
City time, on the Calculation Date the rate is not published in either H.15(519) or the H.15 Daily
Update, then the Calculation Agent shall determine the Commercial Paper Rate to be the Money Market
Yield of the arithmetic mean of the offered rates as of 11:00 a.m., New York City time, on the
Commercial Paper Rate Interest Determination Date, of three leading dealers of commercial paper in
New York City selected by the Calculation Agent, after consultation with the Company, for
commercial paper having the Index Maturity specified on the face hereof placed for an industrial
issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized securities rating
agency; provided, however, that if the dealers selected by the Calculation Agent are not quoting as
described above in this sentence, the Commercial Paper Rate in effect immediately before the
Commercial Paper Rate Interest Determination Date will not change and will remain the Commercial
Paper Rate in effect on the Commercial Paper Rate Interest Determination Date.

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     “Money Market Yield” shall be a yield calculated in accordance with the following formula:

	 	 	 	 	 
	Money Market Yield =
	 	D x 360
	 	x 100
	 	 	 
	 	360 - (D x M)	 

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

     Determination of Federal Funds Rate

     If the Base Rate specified on the face hereof with respect to any Interest Period is the
Federal Funds Rate, this Note is a “Federal Funds Rate Note” with respect to such Interest Period
and the interest rate with respect to this Note for any Interest Reset Date relating to such
Interest Period shall be the Federal Funds Rate as adjusted by the Spread and/or Spread Multiplier,
if any, as specified on the face hereof, as determined on the applicable Federal Funds Rate
Interest Determination Date. Federal Funds Rate Notes will be subject to the Minimum Interest Rate
and Maximum Interest Rate, if any. The Federal Funds Rate will be calculated by reference to
either the Federal Funds (Effective) Rate, the Federal Funds Open Rate or the Federal Funds Target
Rate, as specified on the face hereof.

     Unless otherwise specified on the face hereof under “Other Terms,” “Federal Funds Rate” means
the rate determined by the Calculation Agent, with respect to any Federal Funds Rate Interest
Determination Date, in accordance with the following provisions:

     (1) If “Federal Funds (Effective) Rate” is the specified Federal Funds Rate on the face
hereof, the Federal Funds Rate as of the applicable Federal Funds Rate Interest Determination Date
shall be the rate with respect to such date for United States dollar federal funds as published in
H.15(519) opposite the caption “Federal Funds (Effective),” as such rate is displayed on Reuters on
page FEDFUNDS1 (or any other page as may replace such page on such service) (“Reuters Page
FEDFUNDS1”) under the heading “EFFECT,” or, if such rate is not so published by 3:00 p.m., New York
City time, on the Calculation Date, the rate with respect to such Federal Funds Rate Interest
Determination Date for United States dollar federal funds as published in H.15 Daily Update, or
such other recognized electronic source used for the purpose of displaying such rate, under the
caption “Federal funds (effective).” If such rate does not appear on Reuters Page FEDFUNDS1 or is
not yet published in H.15(519), H.15 Daily Update or another recognized electronic source by 3:00
p.m., New York City time, on the related Calculation Date, then the Federal Funds Rate with respect
to such Federal Funds Rate Interest Determination Date shall be calculated by the Calculation Agent
and will be the arithmetic mean of the rates for the last transaction in overnight United States
dollar federal funds arranged by three leading brokers of U.S. dollar federal funds transactions in
New York City (which may include the agents or their affiliates) selected by the Calculation Agent,
prior to 9:00 a.m., New York City time, on the Business Day following such Federal Funds Rate
Interest Determination Date; provided, however, that if the brokers so selected by the Calculation
Agent are not quoting as mentioned in this sentence, the Federal Funds Rate determined as of such
Federal Funds Rate

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Interest Determination Date will be the Federal Funds Rate in effect on such Federal Funds
Rate Interest Determination Date.

     (2) If “Federal Funds Open Rate” is the specified Federal Funds Rate on the face hereof, the
Federal Funds Rate as of the applicable Federal Funds Rate Interest Determination Date shall be the
rate on such date under the heading “Federal Funds” for the relevant Index Maturity and opposite
the caption “Open” as such rate is displayed on Reuters on page 5 (or any other page as may replace
such page on such service) (“Reuters Page 5”), or, if such rate does not appear on Reuters Page 5
by 3:00 p.m., New York City time, on the Calculation Date, the Federal Funds Rate for the Federal
Funds Rate Interest Determination Date will be the rate for that day displayed on FFPREBON Index
page on Bloomberg L.P. (“Bloomberg”), which is the Fed Funds Opening Rate as reported by Prebon
Yamane (or a successor) on Bloomberg. If such rate does not appear on Reuters Page 5 or is not
displayed on FFPREBON Index page on Bloomberg or another recognized electronic source by 3:00 p.m.,
New York City time, on the related Calculation Date, then the Federal Funds Rate on such Federal
Funds Rate Interest Determination Date shall be calculated by the Calculation Agent and will be the
arithmetic mean of the rates for the last transaction in overnight United States dollar federal
funds arranged by three leading brokers of United States dollar federal funds transactions in New
York City (which may include the agents or their affiliates) selected by the Calculation Agent
prior to 9:00 a.m., New York City time, on such Federal Funds Rate Interest Determination Date;
provided, however, that if the brokers so selected by the Calculation Agent are not quoting as
mentioned in this sentence, the Federal Funds Rate determined as of such Federal Funds Rate
Interest Determination Date will be the Federal Funds Rate in effect on such Federal Funds Rate
Interest Determination Date.

     (3) If “Federal Funds Target Rate” is the specified Federal Funds Rate on the face hereof, the
Federal Funds Rate as of the applicable Federal Funds Rate Interest Determination Date shall be the
rate on such date as displayed on the FDTR Index page on Bloomberg. If such rate does not appear
on the FDTR Index page on Bloomberg by 3:00 p.m., New York City time, on the Calculation Date, the
Federal Funds Rate for such Federal Funds Rate Interest Determination Date will be the rate for
that day appearing on Reuters Page USFFTARGET= (or any other page as may replace such page on such
service) (“Reuters Page USFFTARGET=”). If such rate does not appear on the FDTR Index page on
Bloomberg or is not displayed on Reuters Page USFFTARGET= by 3:00 p.m., New York City time, on the
related Calculation Date, then the Federal Funds Rate on such Federal Funds Rate Interest
Determination Date shall be calculated by the Calculation Agent and will be the arithmetic mean of
the rates for the last transaction in overnight United States dollar federal funds arranged by
three leading brokers of United States dollar federal funds transactions in New York City (which
may include the agents or their affiliates) selected by the Calculation Agent prior to 9:00 a.m.,
New York City time, on such Federal Funds Rate Interest Determination Date.

     Determination of LIBOR

     If the Base Rate specified on the face hereof with respect to any Interest Period is LIBOR,
this Note is a “LIBOR Note” with respect to such Interest Period and the interest rate with respect
to this Note for any Interest Reset Date relating to such Interest Period shall be LIBOR as
adjusted by the Spread and/or the Spread Multiplier, if any, as specified on the face

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hereof, as determined on the applicable LIBOR Interest Determination Date. LIBOR Notes will be
subject to the Minimum Interest Rate and Maximum Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” “LIBOR” will be determined
by the Calculation Agent with respect to each LIBOR Interest Determination Date in accordance with
the following provisions:

     (1) With respect to LIBOR Interest Determination Date, LIBOR will be the rate for deposits in
the Designated LIBOR Currency having the Index Maturity specified on the face hereof as such rate
is displayed on Reuters on page LIBOR01 (or any other page as may replace such page on such service
for the purpose of displaying the London interbank rates of major banks for the Designated LIBOR
Currency) (“Reuters Page LIBOR01”) as of 11:00 a.m., London time, on such LIBOR Interest
Determination Date. If no such rate so appears, LIBOR on such LIBOR Interest Determination Date
will be determined in accordance with provision described in clause (2) below.

     (2) With respect to LIBOR Interest Determination Date on which no rate is displayed on Reuters
Page LIBOR01 as specified in clause (1) above, the Calculation Agent shall request the principal
London offices of each of four major reference banks (which may include affiliates of the agents)
in the London interbank market, as selected by the Calculation Agent to provide the Calculation
Agent with its offered quotation for deposits in the Designated LIBOR Currency for the period of
the Index Maturity specified on the face hereof, commencing on the related Interest Reset Date, to
prime banks in the London interbank market at approximately 11:00 a.m., London time, on such LIBOR
Interest Determination Date and in a principal amount that is representative for a single
transaction in the Designated LIBOR Currency in such market at such time. If at least two such
quotations are so provided, then LIBOR on such LIBOR Interest Determination Date will be the
arithmetic mean calculated by the Calculation Agent of such quotations. If fewer than two such
quotations are so provided, then LIBOR on such LIBOR Interest Determination Date will be the
arithmetic mean calculated by the Calculation Agent of the rates quoted at approximately 11:00
a.m., in the applicable Principal Financial Center (as defined below), on such LIBOR Interest
Determination Date by three major banks (which may include affiliates of the agents) in such
Principal Financial Center selected by the Calculation Agent for loans in the Designated LIBOR
Currency to leading European banks, having the Index Maturity specified on the face hereof and in a
principal amount that is representative for a single transaction in the Designated LIBOR Currency
in such market at such time; provided, however, that if the banks so selected by the Calculation
Agent are not quoting as mentioned in this sentence, LIBOR determined as of such LIBOR Interest
Determination Date shall be LIBOR in effect on such LIBOR Interest Determination Date.

     As referenced above, “Designated LIBOR Currency” means the currency specified on the face
hereof as to which LIBOR shall be calculated or, if no such Designated LIBOR Currency is specified
on the face hereof, U.S. dollars. “Principal Financial Center” means (i) the capital city of the
country issuing the Designated LIBOR Currency or (ii) the capital city of the country to which the
Designated LIBOR Currency, if applicable, relates, except, in each case, that with respect to
United States dollars, Australian dollars, Canadian dollars, euro, New Zealand dollars, South
African rand and Swiss francs, the “Principal Financial Center” shall be New York City,

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Sydney, Toronto, London (solely in the case of the Designated LIBOR Currency), Wellington,
Johannesburg and Zurich, respectively.

     Determination of EURIBOR

     If the Base Rate specified on the face hereof with respect to any Interest Period is EURIBOR,
this Note is a “EURIBOR Note” with respect to such Interest Period and the interest rate with
respect to this Note for any Interest Reset Date relating to such Interest Period shall be the
EURIBOR Rate as adjusted by the Spread and/or Spread Multiplier, if any, as specified on the face
hereof, as determined on the applicable EURIBOR Interest Determination Date. EURIBOR Rate Notes
will be subject to the Minimum Interest Rate and Maximum Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” EURIBOR means, with respect
to any EURIBOR Interest Determination Date, a base rate equal to the interest rate for deposits in
euro designated as “EURIBOR” and sponsored jointly by the European Banking Federation and ACI —
the Financial Market Association, or any company established by the joint sponsors for purposes of
compiling and publishing that rate. EURIBOR will be determined in the following manner:

     (1) EURIBOR will be the offered rate for deposits in euro having the Index Maturity specified
on the face hereof, beginning on the second euro Business Day after such EURIBOR Interest
Determination Date, as that rate appears on Reuters Page EURIBOR 01 as of 11:00 a.m., Brussels
time, on such EURIBOR Interest Determination Date.

     (2) If the rate described above does not appear on Reuters Page EURIBOR 01, EURIBOR will be
determined on the basis of the rates, at approximately 11:00 a.m., Brussels time, on such EURIBOR
Interest Determination Date, at which deposits of the following kind are offered to prime banks in
the euro-zone interbank market by the principal euro-zone office of each of four major banks in
that market selected by the Calculation Agent: euro deposits having such EURIBOR Index Maturity,
beginning on such EURIBOR Interest Reset Date, and in a representative amount. The Calculation
Agent will request that the principal euro-zone office of each of these banks provide a quotation
of its rate. If at least two quotations are provided, EURIBOR for such EURIBOR Interest
Determination Date will be the arithmetic mean of the quotations.

     (3) If fewer than two quotations are provided as described above, EURIBOR for such EURIBOR
Interest Determination Date will be the arithmetic mean of the rates for loans of the following
kind to leading euro-zone banks quoted, at approximately 11:00 a.m., Brussels time on that EURIBOR
Interest Determination Date, by three major banks in the euro-zone selected by the Calculation
Agent: loans of euro having such EURIBOR Index Maturity, beginning on such EURIBOR Interest Reset
Date, and in an amount that is representative of a single transaction in euro in that market at the
time.

     (4) If fewer than three banks selected by the Calculation Agent are quoting as described
above, EURIBOR for the new Interest Period will be EURIBOR in effect for the prior

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Interest Period. If the initial Base Rate has been in effect for the prior Interest Period,
however, it will remain in effect for the new Interest Period.

     Determination of Prime Rate

     If the Base Rate specified on the face hereof with respect to any Interest Period is the Prime
Rate, this Note is a “Prime Rate Note” with respect to such Interest Period and the interest rate
with respect to this Note for any Interest Reset Date relating to such Interest Period shall be the
Prime Rate as adjusted by the Spread and/or Spread Multiplier, if any, as specified on the face
hereof, as determined on the applicable Prime Rate Interest Determination Date. Prime Rate Notes
will be subject to the Minimum Interest Rate and Maximum Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” “Prime Rate” means, with
respect to any Prime Rate Interest Determination Date, the rate on such date as such rate is
published in H.15(519) under the caption “Bank prime loan” or, if not published by 3:00 p.m., New
York City time, on the related Calculation Date, the rate on such Prime Rate Interest Determination
Date as published in H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying such rate, under the caption “Bank prime loan.” If such rate is not yet
published in H.15(519), H.15 Daily Update, or another recognized electronic source by 3:00 p.m.,
New York City time, on the related Calculation Date, then the Prime Rate shall be the arithmetic
mean calculated by the Calculation Agent of the rates of interest publicly announced by each bank
that appears on Reuters on page USPRIME1 (or any other page as may replace such page on such
service for the purpose of displaying prime rates or base lending rates of major United States
banks) (“Reuters Page USPRIME1”) as such bank’s prime rate or base lending rate as of 11:00 a.m.,
New York City time, on such Prime Rate Interest Determination Date. If fewer than four such rates
so appear on the Reuters Page USPRIME1 for such Prime Rate Interest Determination Date by 3:00
p.m., New York City time, on the related Calculation Date, then the Prime Rate shall be the
arithmetic mean calculated by the Calculation Agent of the prime rates or base lending rates quoted
on the basis of the actual number of days in the year divided by a 360-day year as of the close of
business on such Prime Rate Interest Determination Date by three major banks (which may include
affiliates of the dealers) in New York City selected by the Calculation Agent; provided, however,
that if the banks so selected by the Calculation Agent are not quoting as mentioned in this
sentence, the Prime Rate determined as of such Prime Rate Interest Determination Date will be the
Prime Rate in effect on such Prime Rate Interest Determination Date.

     “Reuters Page USPRIME1” means the display on the Reuters 3000 Xtra Service (or any successor
service) on the “USPRIME1 Page” (or such other page as may replace the USPRIME1 Page on such
service) for the purpose of displaying prime rates or base lending rates of major U.S. banks.

     Determination of the CD Rate

     If the Base Rate specified on the face hereof with respect to any Interest Period is the CD
Rate, this Note is a “CD Rate Note” with respect to such Interest Period and the interest rate with
respect to this Note for any Interest Reset Date relating to such Interest Period shall be the CD
Rate as adjusted by the Spread and/or the Spread Multiplier, as specified on the face hereof, as

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determined on the applicable CD Rate Interest Determination Date. CD Rate Notes will be
subject to the Minimum Interest Rate and Maximum Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” “CD Rate” means, with
respect to any CD Rate Interest Determination Date, the rate on that date for negotiable U.S.
dollar certificates of deposit having the Index Maturity specified on the face hereof as published
in H.15(519), under the heading “CDs (Secondary Market).” If the CD Rate cannot be determined in
this manner, the following procedures will apply:

     (1) If the rate described above is not published by 3:00 p.m., New York City time, on the
relevant Calculation Date, then the CD Rate will be the rate on that CD Rate Interest Determination
Date for negotiable U.S. dollar certificates of deposit having the specified Index Maturity as
published in H.15 Daily Update, or other recognized electronic sources used for the purpose of
displaying the applicable rate, under the caption “CDs (Secondary Market).”

     (2) If by 3:00 p.m., New York City time, on the applicable Calculation Date, that rate is not
published in either H.15(519), H.15 Daily Update or another recognized electronic source, the CD
Rate for that CD Rate Interest Determination Date will be calculated by the Calculation Agent and
will be the arithmetic mean of the secondary market offered rates as of 10:00 a.m., New York City
time, on that CD Rate Interest Determination Date, of three leading non-bank dealers in negotiable
U.S. dollar certificates of deposit in New York City, which may include one or more of the agents
or their affiliates, selected by the Calculation Agent, after consultation with us, for negotiable
U.S. dollar certificates of deposit of major U.S. money market banks for negotiable certificates of
deposit with a remaining maturity closest to the Index Maturity specified on the face hereof in an
amount that is representative for a single transaction in that market at that time.

     (3) If the dealer(s) selected as described above by the Calculation Agent are not quoting
rates as set forth above, the CD Rate for that CD interest rate determination date will be the CD
Rate in effect for the immediately preceding interest reset period, or if there was no interest
reset period, then the rate of interest payable will be the Initial Interest Rate.

     Determination of Treasury Rate

     If the Base Rate specified on the face hereof with respect to any Interest Period is the
Treasury Rate, this Note is a “Treasury Rate Note” with respect to such Interest Period and the
interest rate with respect to this Note for any Interest Reset Date relating to such Interest
Period shall be the Treasury Rate as adjusted by the Spread and/or the Spread Multiplier, if any,
as specified on the face hereof, as determined on the applicable Treasury Rate Interest
Determination Date. Treasury Rate Notes will be subject to the Minimum Interest Rate and Maximum
Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” “Treasury Rate” means, with
respect to any Treasury Rate Interest Determination Date, the rate from the auction held on such
Treasury Rate Interest Determination Date (the “Auction”) of direct obligations of the United
States (“Treasury Bills”) having the Index Maturity specified on the face hereof under the caption
“INVEST RATE” on the display on Reuters page USAUCTION10 (or any other

B-2-16

 

page as may replace such page on such service) or page USAUCTION11 (or any other page as may
replace such page on such service) or, if not so published at 3:00 p.m., New York City time, on the
related Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for such
Treasury Bills as published in H.15 Daily Update, or such other recognized electronic source used
for the purpose of displaying such rate, under the caption “U.S. Government Securities/Treasury
Bills/Auction High.” If such rate is not so published in the related H.15 Daily Update or another
recognized source by 3:00 p.m., New York City time, on the related Calculation Date, the Treasury
Rate on such Treasury Rate Interest Determination Date shall be the Bond Equivalent Yield of the
Auction rate of such Treasury Bills as announced by the United States Department of the Treasury.
In the event that such Auction rate is not so announced by the United States Department of the
Treasury on such Calculation Date, or if no such Auction is held, then the Treasury Rate on such
Treasury Rate Interest Determination Date shall be the Bond Equivalent Yield of the rate on such
Treasury Rate Interest Determination Date of Treasury Bills having the Index Maturity specified on
the face hereof as published in H.15(519) under the caption “U.S. government securities/treasury
bills/secondary market” or, if not yet published by 3:00 p.m., New York City time, on the related
Calculation Date, the rate on such Treasury Rate Interest Determination Date of such Treasury Bills
as published in H.15 Daily Update, or such other recognized electronic source used for the purpose
of displaying such rate, under the caption “U.S. government securities/treasury bills (secondary
market).” If such rate is not yet published in the H.15(519), H.15 Daily Update or another
recognized electronic source by 3:00 p.m., New York City time, on the related Calculation Date,
then the Treasury Rate on such Treasury Rate Interest Determination Date shall be calculated by the
Calculation Agent and shall be the Bond Equivalent Yield of the arithmetic mean of the secondary
market bid rates, as of approximately 3:30 p.m., New York City time, on such Treasury Rate Interest
Determination Date, of the three leading primary United States government securities dealers (which
may include the agents or their affiliates) selected by the Calculation Agent, for the issue of
Treasury Bills with a remaining maturity closest to the Index Maturity specified on the face
hereof; provided, however, that if the dealers so selected by the Calculation Agent are not quoting
as mentioned in this sentence, the Treasury Rate determined as of such Treasury Rate Interest
Determination Date will be the Treasury Rate in effect on such Treasury Rate Interest Determination
Date.

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

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

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

     Determination of CMT Rate

     If the Base Rate specified on the face hereof with respect to any Interest Period is the CMT
Rate, this Note is a “CMT Rate Note” with respect to such Interest Period and the interest rate
with respect to this Note for any Interest Reset Date relating to such Interest Period shall be

B-2-17

 

the CMT Rate as adjusted by the Spread and/or the Spread Multiplier, if any, as specified on
the face hereof, as determined on the applicable CMT Rate Interest Determination Date. CMT Rate
Notes will be subject to the Minimum Interest Rate and Maximum Interest Rate, if any.

     Unless otherwise specified on the face hereof under “Other Terms,” with respect to any CMT
Rate Interest Determination Date:

     (1) If “Reuters Page FRBCMT” is the specified CMT Reuters Page on the face hereof, the CMT
Rate on the CMT Rate Interest Determination Date shall be a percentage equal to the yield for
United States Treasury securities at “constant maturity” having the Index Maturity specified on the
face hereof as set forth in H.15(519) under the caption “Treasury constant maturities,” as such
yield is displayed on Reuters (or any successor service) on page FRBCMT (or any other page as may
replace such page on such service) (“Reuters Page FRBCMT”) for such CMT Rate Interest Determination
Date. If such rate does not appear on Reuters Page FRBCMT, the CMT Rate on such CMT Rate Interest
Determination Date shall be a percentage equal to the yield for United States Treasury securities
at “constant maturity” having the Index Maturity specified on the face hereof and for such CMT Rate
Interest Determination Date as set forth in H.15(519) under the caption “Treasury constant
maturities.” If such rate does not appear in H.15(519), the CMT Rate on such CMT Rate Interest
Determination Date shall be the rate for the period of the Index Maturity specified on the face
hereof as may then be published by either the Federal Reserve Board or the United States Department
of the Treasury that the Calculation Agent determines to be comparable to the rate that would
otherwise have been published in H.15(519). If the Federal Reserve Board or the United States
Department of the Treasury does not publish a yield on United States Treasury securities at
“constant maturity” having the Index Maturity specified on the face hereof for such CMT Rate
Interest Determination Date, the CMT Rate on such CMT Rate Interest Determination Date shall be
calculated by the Calculation Agent and shall be a yield-to-maturity based on the arithmetic mean
of the secondary market bid prices at approximately 3:30 p.m., New York City time, on such CMT Rate
Interest Determination Date of three leading primary United States government securities dealers in
New York City (which may include the agents or their affiliates) (each, a “Reference Dealer”)
selected by the Calculation Agent from five such Reference Dealers selected by the Calculation
Agent and eliminating the highest quotation (or, in the event of equality, one of the highest) and
the lowest quotation (or, in the event of equality, one of the lowest) for United States Treasury
securities with an original maturity equal to the Index Maturity specified on the face hereof, a
remaining term to maturity no more than one year shorter than such Index Maturity and in a
principal amount that is representative for a single transaction in such securities in such market
at such time. If fewer than three prices are provided as requested, the CMT Rate on such CMT Rate
Interest Determination Date shall be calculated by the Calculation Agent and shall be a
yield-to-maturity based on the arithmetic mean of the secondary market bid prices as of
approximately 3:30 p.m., New York City time, on such CMT Rate Interest Determination Date of three
Reference Dealers selected by the Calculation Agent from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of equality, one of
the highest) and the lowest quotation (or, in the event of equality, one of the lowest) for United
States Treasury securities with an original maturity greater than the Index Maturity specified on
the face hereof, a remaining term to maturity closest to such Index Maturity and in a principal
amount that is representative for a single transaction in such securities in such market at such
time. If two such United States Treasury securities with an original maturity greater than

B-2-18

 

the Index Maturity specified on the face hereof have remaining terms to maturity equally close
to such Index Maturity, the quotes for the treasury security with the shorter original term to
maturity will be used. If fewer than five but more than two such prices are provided as requested,
the CMT Rate on such CMT Rate Interest Determination Date shall be calculated by the Calculation
Agent and shall be based on the arithmetic mean of the bid prices obtained and neither the highest
nor the lowest of such quotations shall be eliminated; provided, however, that if fewer than three
such prices are provided as requested, the CMT Rate determined as of such CMT Rate Interest
Determination Date shall be the CMT Rate in effect on such CMT Rate Interest Determination Date.

     (2) If “Reuters Page FEDCMT” is the specified CMT Reuters Page on the face hereof, the CMT
Rate on the CMT Rate Interest Determination Date shall be a percentage equal to the one-week or
one-month, as specified on the face hereof, average yield for United States Treasury securities at
“constant maturity” having the Index Maturity specified on the face hereof as set forth in
H.15(519) opposite the caption “Treasury Constant Maturities,” as such yield is displayed on
Reuters on page FEDCMT (or any other page as may replace such page on such service) (“Reuters Page
FEDCMT”) for the week or month, as applicable, ended immediately preceding the week or month, as
applicable, in which such CMT Rate Interest Determination Date falls. If such rate does not
appear on Reuters Page FEDCMT, the CMT Rate on such CMT Rate Interest Determination Date shall be a
percentage equal to the one-week or one-month, as specified on the face hereof, average yield for
United States Treasury securities at “constant maturity” having the Index Maturity specified on the
face hereof for the week or month, as applicable, preceding such CMT Rate Interest Determination
Date as set forth in H.15(519) opposite the caption “Treasury Constant Maturities.” If such rate
does not appear in H.15(519), the CMT Rate on such CMT Rate Interest Determination Date shall be
the one-week or one-month, as specified on the face hereof, average yield for United States
Treasury securities at “constant maturity” having the Index Maturity specified on the face hereof
as otherwise announced by the Federal Reserve Bank of New York for the week or month, as
applicable, ended immediately preceding the week or month, as applicable, in which such CMT Rate
Interest Determination Date falls. If the Federal Reserve Bank of New York does not publish a
one-week or one-month, as specified on the face hereof, average yield on United States Treasury
securities at “constant maturity” having the Index Maturity specified on the face hereof for the
applicable week or month, the CMT Rate on such CMT Rate Interest Determination Date shall be
calculated by the Calculation Agent and shall be a yield-to-maturity based on the arithmetic mean
of the secondary market bid prices at approximately 3:30 p.m., New York City time, on such CMT Rate
Interest Determination Date of three Reference Dealers selected by the Calculation Agent from five
such Reference Dealers selected by the Calculation Agent and eliminating the highest quotation (or,
in the event of equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest) for United States Treasury securities with an original maturity equal
to the Index Maturity specified on the face hereof, a remaining term to maturity of no more than
one year shorter than such Index Maturity and in a principal amount that is representative for a
single transaction in such securities in such market at such time. If fewer than five but more
than two such prices are provided as requested, the CMT Rate on such CMT Rate Interest
Determination Date shall be the rate on the CMT Rate Interest Determination Date calculated by the
Calculation Agent based on the arithmetic mean of the bid prices obtained and neither the highest
nor the lowest of such quotation shall be eliminated. If fewer than three prices are provided as
requested, the CMT Rate on such CMT Rate Interest

B-2-19

 

Determination Date shall be calculated by the Calculation Agent and shall be a
yield-to-maturity based on the arithmetic mean of the secondary market bid prices as of
approximately 3:30 p.m., New York City time, on such CMT Rate Interest Determination Date of three
Reference Dealers selected by the Calculation Agent from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of equality, one of
the highest) and the lowest quotation (or, in the event of equality, one of the lowest) for United
States Treasury securities with an original maturity longer than the Index Maturity specified on
the face hereof, a remaining term to maturity closest to such Index Maturity and in a principal
amount that is representative for a single transaction in such securities in such market at such
time. If two United States Treasury securities with an original maturity greater than the Index
Maturity specified on the face hereof have remaining terms to maturity equally close to such Index
Maturity, the quotes for the Treasury security with the shorter original term to maturity will be
used. If fewer than five but more than two such prices are provided as requested, the CMT Rate on
such CMT Rate Interest Determination Date shall be the rate on the CMT Rate Interest Determination
Date calculated by the Calculation Agent based on the arithmetic mean of the bid prices obtained
and neither the highest nor lowest of such quotations shall be eliminated; provided, however, that
if fewer than three such prices are provided as requested, the CMT Rate determined as of such CMT
Rate determination date shall be the CMT Rate in effect on such CMT Rate Interest Determination
Date.

     Redemption

     If possible Redemption Dates or periods within which Redemption Dates may occur and the
related Redemption Prices (expressed as percentages of the principal amount of this Note) are set
forth on the face hereof under “Redemption Terms”, this Note is subject to redemption prior to the
Maturity Date upon not less than 30 nor more than 60 days’ notice mailed to the Person in whose
name this Note is registered at such address as shall appear in the Security Register of the
Company, on any Redemption Date so specified or occurring within any period so specified, as a
whole or in part, at the election of the Company, at the applicable Redemption Price so specified,
together with accrued interest, if any, to the Redemption Date; provided, however, that
installments of interest whose Stated Maturity is on or prior to such Redemption Date will be
payable in the case of any such redemption to the Holder of this Note (or one or more predecessor
Notes) at the close of business on the relevant Record Dates referred to above, all as provided in
the Indenture. In the event of redemption of less than all of the principal of this Note, a new
Note of this series and of like tenor of an authorized denomination for the unredeemed portion of
this Note will be issued in the name of the Holder hereof upon the cancellation hereof. Unless
otherwise specified on the face hereof, under “Redemption Terms”, this Note is not subject to any
sinking fund.

     Miscellaneous Provisions

     If an Event of Default concerning: (1) default (a) by the Company in the payment of interest,
if any, upon the Notes when it becomes due and payable and continuance of such default for a period
of 30 days and (b) by the FDIC in the payment of interest, if any, upon the Notes in accordance
with the TLG Program (12 C.F.R. Part 370); or (2) default (a) by the Company in the payment of the
principal of (or premium, if any, on) the Notes on its Maturity Date and (b) by the FDIC in the
payment of the principal of (or premium, if any, on) the Note in accordance with

B-2-20

 

the TLG Program (12 C.F.R. Part 370) shall occur and is continuing, the principal of the Notes
may be declared due and payable in the manner and with the effect provided in the Indenture. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of interest on any
overdue principal and overdue interest (in each case to the extent that the payment of such
interest shall be legally enforceable), all of the Company’s obligations in respect of the payment
of the principal of and interest, if any, on the Notes shall terminate.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Notes of each series to be affected under the Indenture at any time by the Company and the Trustee
with the consent of the Holders of not less than a majority in aggregate principal amount of the
Notes at the time Outstanding of each series to be affected and, for certain purposes, without the
consent of the Holders of any Notes at the time Outstanding; provided, however, that the express
written consent of the FDIC will be required to amend, modify or waive any provision of the Notes
which series are guaranteed by the FDIC pursuant to the TLG Program (12 C.F.R. Part 370), or the
provisions of the Indenture relating to principal, interest, default or ranking provisions of the
Notes; any provisions of the Notes or the Indenture required to be included by a “Master Agreement”
between the Company and the FDIC relating to the Company’s participation in the TLG Program (12
C.F.R. Part 370); or any other provision that would require the consent of all Holders of the
Notes. The Indenture also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Notes of each series at the time Outstanding, on behalf of the
Holders of all Notes of such series, to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of (and premium, if any) and interest on this Note 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 Note is registrable in the Security Register of the Company, upon surrender of
this Note for registration of transfer at the office or agency of the Company in any place where
the principal of (and premium, if any) and interest on this Note are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Notes of this series and of like tenor of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or
transferees.

     Unless otherwise set forth on the face hereof under “Other Terms,” the Notes of this series
are issuable only in fully registered form without coupons in denominations of $2,000 or any amount
in excess of $2,000 which is an integral multiple of $1,000. As provided in the Indenture and
subject to certain limitations therein set forth, Notes of this series are

B-2-21

 

exchangeable for a like aggregate principal amount of Notes of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.

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

     Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered in the Security Register as the owner hereof for all purposes, whether or not this Note
be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to
the contrary.

     This Note may have such additional or different terms as are set forth on the face hereof
under “Other Terms.” Any terms so set forth shall be deemed to modify and/or supersede, as
necessary, any other terms set forth in this Note.

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

     Unless otherwise defined herein, all terms used in this Note which are defined in the
Indenture shall have the respective meanings assigned to them in the Indenture.

B-2-22

 

ABBREVIATIONS

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

	 	 	 	 	 	 	 	 	 
	TEN COM—as tenants in common
	TEN ENT—as tenants by the entireties
	JT TEN—as joint tenants with right of survivorship and not as tenants in common
	UNF GIFT MIN ACT—
	 	 	 	Custodian	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	(Cust)	 	 	 	(Minor)	 	 
	 	 	under Uniform Gift to Minors Act	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	(State)
	 	 	 	 

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

B-2-23

 

ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE

 

(Name and address of assignee, including zip code, must be printed or typewritten)

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

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

	 	 	 	 	 
	Dated

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 	 	 
	 

	 	 	 	 

     NOTICE: The signature to this assignment must correspond with the name as written upon the
within Note in every particular, without alteration or enlargement or any change whatever and must
be guaranteed by a commercial bank or trust company having its principal office or a correspondent
in New York City or by a member of the New York Stock Exchange.

B-2-24

 

Exhibit B-3

[Form of Global Master Note]

B-3-1

 

This Note is a Global Security within the meaning of the Indenture referred to herein and is
registered in the name of a Depositary or a nominee of a Depositary. Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”) to the issuer or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name as is requested by
an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity
as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

THIS DEBT IS GUARANTEED UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION’S TEMPORARY LIQUIDITY
GUARANTEE PROGRAM AND IS BACKED BY THE FULL FAITH AND CREDIT OF THE UNITED STATES. THE DETAILS OF
THE FDIC GUARANTEE ARE PROVIDED IN THE FDIC’S REGULATIONS, 12 CFR PART 370, AND AT THE FDIC’S
WEBSITE, WWW.FDIC.GOV/TLGP. THE EXPIRATION DATE OF THE FDIC’S GUARANTEE IS THE EARLIER OF THE
MATURITY DATE OF THE DEBT OR JUNE 30, 2012. SUCH PROGRAM IS REFERRED TO HEREIN AS THE “TLG
PROGRAM.”

THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT AND IS NOT AN OBLIGATION OF OR GUARANTEED BY U.S.
BANCORP OR ANY OTHER BANKING OR NONBANKING AFFILIATE OF U.S. BANCORP.

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

THIS NOTE IS SOLD IN MINIMUM DENOMINATIONS AS NOTED HEREIN AND IN THE PRICING SUPPLEMENT ATTACHED
HERETO AND CANNOT BE EXCHANGED FOR NOTES IN SMALLER DENOMINATIONS. EACH OWNER OF A BENEFICIAL
INTEREST IN THIS NOTE IS REQUIRED TO HOLD A BENEFICIAL INTEREST OF A PRINCIPAL AMOUNT OF THIS NOTE
EQUAL TO THE MINIMUM AUTHORIZED DENOMINATION AT ALL TIMES.

THE SECOND SUPPLEMENTAL INDENTURE TO THE INDENTURE CONTAINS PROVISIONS APPLICABLE TO NOTES ISSUED
SUBJECT TO THE FDIC GUARANTEE, BUT ONLY FOR SO LONG AS THE FDIC GUARANTEE REMAINS IN EFFECT OR
UNTIL SUCH LATER TIME AS MAY BE REQUIRED BY THE RULES AND REGULATIONS OF THE FDIC OR ANY SUCCESSOR
ENTITY. THE PROVISIONS OF SECTION 15.11 OF THE INDENTURE, AS SET FORTH IN SUCH SUPPLEMENTAL
INDENTURE, ARE APPLICABLE TO THIS NOTE, AND REFERENCE IS MADE TO SUCH SECTION 15.11 FOR ADDITIONAL
PROVISIONS THAT GOVERN THIS NOTE.

THIS SECURITY IS GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION AND THE RIGHTS OF THE
HOLDER OF THIS NOTE ARE SUBJECT TO CERTAIN RIGHTS OF THE FDIC AS SET FORTH IN THIS NOTE AND THE
INDENTURE.

B-3-2

 

	 	 	 	 	 
	REGISTERED

No. RM-

	 	U.S. Bancorp

Medium-Term Note, Series R (Senior)

(Master Global Note)

(Guaranteed under the FDIC’s

Temporary Liquidity Guarantee Program

(the “TLG Program”))
	 	REGISTERED

     U.S. Bancorp (the “Issuer”), a corporation duly organized and existing under the laws of
Delaware, for value received, hereby promises to pay to Cede & Co. or its registered assigns: (i)
on each principal payment date, including each amortization date, redemption date, repayment date,
maturity date, and extended maturity date, as applicable, of each obligation identified on the
records of the Issuer (which records are maintained by U.S. Bank Trust National Association (the
“Issuing and Paying Agent”) as being evidenced by this Master Global Note, the principal amount
then due and payable for each such obligation, and (ii) on each interest payment date, if any, the
interest then due and payable on the principal amount for each such obligation. Payment shall be
made by wire transfer of United States dollars to the registered owner, or immediately available
funds or the equivalent to a party as authorized by the registered owner and in the currency other
than United States dollars as provided for in each such obligation, by the Issuing and Paying Agent
without the necessity of presentation and surrender of this Master Global Note.

     REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS MASTER GLOBAL NOTE SET FORTH ON THE
REVERSE HEREOF.

     This Master Global Note is a valid and binding obligation of the Issuer.

B-3-3

 

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

	 	 	 	 	 	 	 
	Dated:                     , 2009	 	U.S. BANCORP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 
	 	 	 	 
	This is one of the Securities of the series
designated herein and issued pursuant
to the within-mentioned Indenture.	 	 
	 
	 	 	 	 
	CITIBANK, N.A.,

as Trustee	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	 
	 	 	 	 
	Or by	 	 
	 
	 	 	 	 
	U.S. BANK TRUST NATIONAL ASSOCIATION,

as Authenticating Agent
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Authorized Officer	 	 

B-3-4

 

(Reverse Side of Note)

     This Master Global Note evidences certain indebtedness (the “Debt Obligations”) of the Issuer,
which shall form a part of the Issuer’s unsecured, unsubordinated medium-term notes, Series R due
nine months or more from the date of issue (“Series R”), all issued or to be issued under and
pursuant to an Indenture dated as of October 1, 1991 (the “Indenture”), duly executed and delivered
by the Issuer to Citibank, N.A., as trustee (the “Trustee”), to which Indenture and all indentures
supplemental thereto (including the Issuer’s Officer’s Certificate and Company Order, dated April
25, 2008, with respect to, among other things, the establishment of Medium-Term Notes, Series R
(Senior)) reference is hereby made for a description of the rights, duties and immunities
thereunder of the Issuer, the Trustee and the holders of the Debt Obligations. As provided in the
Indenture, the Debt Obligations may mature at different times, may bear interest, if any, at
different rates, may be subject to different redemption and repayment provisions, if any, may be
subject to different sinking, purchase, or analogous funds, if any, may be subject to different
covenants and events of default, and may otherwise vary as in the Indenture provided or permitted.
The Debt Obligations as evidenced by this Master Global Note aggregated with any other indebtedness
of the Issuer issued under Series R are unlimited.

     The Trustee has been designated as the duly authorized representative of the holder of the
Notes for purposes of making claims and taking other permitted or required actions under the TLG
Program (the “Representative”). Any Holder may elect not to be represented by the Representative by
providing written notice of such election to the Representative.

     Capitalized terms used herein that are not defined herein shall have the meanings assigned to
them in the Indenture.

     No reference herein to the Indenture and no provision of this Master Global Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional,
to pay the principal of, premium, if any, and interest, if any, on each Debt Obligation at the
times, places, and rates, and in the coin or currency, identified on the records of the Issuer.

     At the request of the registered owner, the Issuer shall promptly issue and deliver one or
more separate note certificates evidencing each Debt Obligation evidenced by this Master Global
Note. As of the date any such note certificate or certificates are issued, the Debt Obligations
which are evidenced thereby shall no longer be evidenced by this Master Global Note.

     Beneficial interests in the Debt Obligations evidenced by this Master Global Note are
exchangeable for definitive notes in registered form, of like tenor and of an equal aggregate
principal amount, only if (a) (i) The Depository Trust Company, as depositary (the “Depositary”),
notifies the Issuer that it is unwilling or unable to continue as Depositary for this Master Global
Note, or (ii) if at any time the Depositary ceases to be a clearing agency registered under the
Securities Exchange Act of 1934, as amended, and in either case, a successor depositary is not
appointed by the Issuer within 90 days after receiving notice or becoming aware the Depositary is
unwilling or unable to continue as Depositary or is no longer so registered; (b) in the case of any
other registered global note if (i) the clearing system(s) through which the notes are cleared and
settled is closed for business for a continuous period of 14 days, other than by reason of
holidays, statutory or otherwise; or (ii) the clearing system(s) through which the notes are
cleared and settled announces an intention to cease business permanently or does in fact do so; (c)
the Issuer in its sole discretion elects to issue definitive notes; or (d) after the occurrence of
an Event of Default relating to a Debt Obligation evidenced by this Master Global Note, beneficial
owners representing a majority in principal amount of such Debt Obligation advise the Depositary or
other clearing system(s) through its participants to cease acting as depositary for such Debt
Obligation evidenced by this Master Global Note. Any beneficial interests in such Debt Obligation
that are exchangeable pursuant to the preceding sentence shall be exchangeable in whole for
definitive notes in registered form, of like tenor and of an equal aggregate principal amount, in
minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof. Such
definitive notes shall be registered in the name or names of such person or persons as the
Depositary shall instruct the registrar.

     Prior to due presentment of this Master Global Note for registration of transfer, the Issuer,
the Trustee or any agent of the Issuer or the Trustee may treat the holder in whose name this
Master Global Note is registered as

B-3-5

 

the owner hereof for all purposes, whether or not this Master Global Note be overdue, and
neither the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary
except as required by applicable law.

B-3-6

 

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

 

(Name, Address, and Taxpayer Identification Number of Assignee)

the Master Global Note and all rights thereunder, hereby irrevocably constituting and appointing
                     attorney to transfer said Master Global Note on the books of the Issuer with full
power of substitution in the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	(Signature)
	Signature(s) Guaranteed:	 	NOTICE: The signature on this assignment must correspond with the name as
written upon the face of this Master Global Note, in every particular, without alteration or
enlargement or any change whatsoever.

B-3-7

 

U.S. BANCORP

RIDER TO MASTER GLOBAL NOTE DATED                     , 2009

Medium-Term Notes, Series R (Senior)

This RIDER forms a part of and is incorporated into the Master Global Note dated                     ,
2009, of U.S. Bancorp (the “Issuer”) registered in the name of Cede & Co, or its registered
assigns, evidencing the Issuer’s Debt Obligations.

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF SUCH MASTER GLOBAL NOTE (TOGETHER WITH THIS
RIDER, HEREIN REFERRED TO AS THIS “MASTER GLOBAL NOTE”) SET FORTH IN THE RECORDS OF THE ISSUER
MAINTAINED BY THE TRUSTEE, WHICH RECORDS CONSIST OF THE PRICING SUPPLEMENT(S) TO THE PROSPECTUS
SUPPLEMENT DATED APRIL 25, 2008 AND MARCH 10, 2009, AND PROSPECTUS DATED APRIL 17, 2008 (EACH, AS
IT MAY BE AMENDED OR SUPPLEMENTED, A “PRICING SUPPLEMENT”) RELATING TO EACH ISSUANCE OF DEBT
OBLIGATIONS, AS FILED BY THE ISSUER WITH THE SECURITIES AND EXCHANGE COMMISSION. SUCH FURTHER
PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH AT THIS PLACE.

Section 1. Defined Terms.

Unless otherwise defined herein, all terms used in this Master Global Note which are defined in the
Indenture shall have the respective meanings assigned to them in the Indenture.

Section 2. General.

This Master Global Note is a duly authorized issue of the series of notes of the Issuer designated
herein. By the terms of the Indenture, the Debt Obligations may mature at different times, may
bear interest, if any, at different rates, may be subject to different redemption and repayment
provisions, if any, may be subject to different sinking, purchase, or analogous funds, if any, may
be subject to different covenants and events of default, and may otherwise vary as in the Indenture
provided or permitted. The Debt Obligations aggregated with any other indebtedness of the Issuer
of this series are unlimited.

This Master Global Note may have such additional or different terms as are set forth in the
applicable Pricing Supplement(s). Any terms so set forth shall be deemed to modify and/or
supersede, as necessary, any other terms set forth in this Master Global Note.

Section 3. Payments of Principal and Interest.

Unless otherwise specified in the applicable Pricing Supplement, the issuer shall pay on the
Maturity date of each Debt Obligation, together with any premium thereon, upon any applicable
Redemption Date, and to pay interest thereon from the original issue date of such Debt Obligation
(the “Original Issue Date”), except as otherwise specified below, from and including the most
recent Interest Payment Date to which interest has been paid or duly provided for, on each
applicable Interest Payment Date, commencing with the Interest Payment Date immediately following
the Original Issue Date, at the applicable rate, until the principal of Debt Obligation is paid or
made available for payment; provided, however, that if the Original Issue Date is between a Regular
Record Date and an Interest Payment Date, interest payments will be made on the Interest Payment
Date following the next succeeding Regular Record Date. The interest 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 Master Global Note (or one or more predecessor Master Global
Notes) is registered at the close of business on the Regular Record Date related to the Interest
Payment Date, which, unless otherwise specified in the applicable Pricing Supplement, shall be the
day (whether or not a Business Day) fifteen calendar days preceding each Interest Payment Date;
provided, however,

B-3-8

 

that interest payable on the Maturity date of any Debt Obligation or any applicable Redemption Date
shall be payable to the Person to whom principal shall be payable. Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the holder of the this
Master Global Note on such Regular Record Date and may be paid to the Person in whose name this
Master Global Note (or one or more predecessor Notes) 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 the holder of this Master Global Note not less than 10 days prior to such
Special Record Date. In the event that any Maturity date or Redemption Date is not a Business Day,
the principal otherwise payable on such date will be paid on the next day that is a Business Day
with the same force and effect as if made on such Maturity date or Redemption Date, as applicable.
In the event that any Interest Payment Date is not a Business Day, such Interest Payment Date shall
be postponed to the next day that is a Business Day, provided that, for LIBOR Debt Obligations and
EURIBOR Debt Obligations, if such Business Day is in the next succeeding calendar month, such
Interest Payment Date shall be the immediately preceding Business Day. Payment of the principal of
(and premium, if any) and interest on this Master Global Note will be made to the Depository, or
its nominee, as the registered owner of this Master Global Note representing the Debt Obligations.
A holder of this Master Global Note holding $10,000,000 (or the equivalent of $10,000,000 in a
currency other than U.S. dollars) or more in aggregate principal amount of the Debt Obligations
shall be entitled to receive payments by wire transfer of immediately available funds, but only if
appropriate wire transfer instructions have been received in writing by the Trustee or the
applicable Paying Agent not later than the Regular Record Date. Payment of the principal of (and
premium, if any) and interest on this Master Global Note due on the Maturity date or any applicable
Redemption Date will be made in immediately available funds.

The principal of and any premium and interest on the Debt Obligations under this Master Global Note
are payable by the Issuer in the currency specified in the applicable Pricing Supplement. If the
specified currency is other than U.S. dollars, the Issuer will (unless otherwise specified in the
applicable Pricing Supplement) arrange to convert all payments in respect of the applicable Debt
Obligations under this Master Global Note into U.S. dollars in the manner described in the
following paragraph. If the specified currency is other than U.S. dollars, the holder may (if so
indicated in the applicable Pricing Supplement) elect to receive all payments in respect of
applicable Debt Obligations under this Master Global Note in the specified currency by delivery of
a written notice to the Trustee or the applicable Paying Agent not later than fifteen days prior
to the applicable payment date. That election will remain in effect until revoked by written
notice to the Trustee or Paying Agent received no later than fifteen calendar days prior to the
applicable payment date.

In case the specified currency is other than U.S. dollars, the amount of any U.S. dollar payment
will be based on the bid quoted by an exchange rate agent as of 11:00 a.m., London time, on the
second day preceding the applicable payment date on which banks are open for business in London and
New York City, for the purchase of U.S. dollars with the specified currency for settlement on the
payment date of the aggregate amount of the specified currency payable to the holder of this Master
Global Note. If this bid quotation is not available, such exchange rate agent will obtain a bid
quotation from a leading foreign exchange bank in London or New York City selected by such exchange
rate agent. If the bids are not available, payment of the aggregate amount due to the holder on
the payment date will be in the specified currency. All currency exchange costs will be borne by
the holder of this Master Global Note by deductions from such payments due such holder.

Section 4. Redemption.

If possible Redemption Dates or periods within which Redemption Dates may occur and the related
Redemption Prices (expressed as percentages of the principal amount of the applicable Debt
Obligations) are set forth in the applicable Pricing Supplement, such Debt Obligations are subject
to redemption prior to the Maturity date upon not less than 30 nor more than 60 days’ notice
mailed to the Person in whose name this Master Global Note is registered at such address as shall
appear in the Security Register of the Issuer, on any Redemption Date so specified or occurring
within any period so specified, as a whole or in part, at the election of the Issuer, at the
applicable Redemption Price so specified, together with accrued interest, if any, to the Redemption
Date; provided, however, that installments of interest whose Stated Maturity is on or prior to such
Redemption Date will be payable in the case of any such redemption to the holder of this Master
Global Note (or one or more predecessor Notes) at the close of business on the relevant record
dates referred to above, all as provided in the Indenture.

B-3-9

 

Section 5. Sinking Funds.

Unless otherwise specified in the applicable Pricing Supplement, the Debt Obligations under this
Master Global Note is not subject to any sinking fund.

Section 6. Principal Amount For Indenture Purposes.

For the purpose of determining whether holders of the requisite amount of the notes of Series R,
including the Debt Obligations as evidenced by this Master Global Note, outstanding under the
Indenture have made a demand, given a notice or waiver or taken any other action, the outstanding
principal amount of this Master Global Note shall be deemed to be the aggregate principal amount
outstanding of the Debt Obligations as evidenced by this Master Global Note.

Section 7. Modification and Waivers.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the holders of the notes
of each series, including the holders of the Debt Obligations, to be affected under the Indenture
at any time by the Issuer and the Trustee with the consent of the holders of not less than a
majority in aggregate principal amount of the notes at the time Outstanding of each series to be
affected and, for certain purposes, without the consent of the holders of any notes, including the
holders of Debt Obligations, at the time Outstanding. The Indenture also contains provisions
permitting the holders of specified percentages in aggregate principal amount of the Debt
Obligations of each series at the time Outstanding, on behalf of the holders of all Debt
Obligations of such series, to waive compliance by the Issuer 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 Master Global Note shall be conclusive and binding upon such holder
and upon all future holders of this Master Global Note and of any Master Global Note issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Master Global Note.

No reference herein to the Indenture and no provision of this Master Global Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional,
to pay the principal of (and premium, if any) and interest on this Master Global Note at the times,
place and rate, and in the coin or currency, herein prescribed.

Section 8. Authorized Form and Denominations.

Unless otherwise set forth in the applicable Pricing Supplement, the Debt Obligations of this
series are issuable only in fully registered form without coupons in denominations of $1,000 or any
amount in excess of $1,000 which is an integral multiple of $1,000. As provided in the Indenture
and subject to certain limitations therein set forth, Debt Obligations of this series are
exchangeable for a like aggregate principal amount of Debt Obligations of this series and of like
tenor of a different authorized denomination, as requested by the holder surrendering the same.

No service charge will be made for any such registration of transfer or exchange, but the Issuer
may require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith. The Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
the Person in whose name this Master Global Note is registered in the Security Register as the
owner hereof for all purposes, whether or not this Master Global Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the contrary.

Section 9. Registration of Transfer.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of
this Master Global Note is registrable in the Security Register of the Issuer, upon surrender of
this Master Global Note for registration of transfer at the office or agency of the Issuer in any
place where the principal of (and premium, if any) and interest on this Master Global Note are
payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Issuer and the Security Registrar duly executed by, the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Master Global Notes of this series and of like
tenor of

B-3-10

 

authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

Section 10. Events of Default.

If an Event of Default with respect to the Debt Obligations under this Master Global Note of this
series shall occur and be continuing, the principal of all such Debt Obligations under this Master
Global Notes may (subject to the conditions set forth in the Indenture) be declared due and payable
in the manner and with the effect provided in the Indenture; provided, however, that during the
time (a) the FDIC guarantee is in effect or (b) that guarantee payments are being made by the FDIC
to the Trustee or the Holders of this Master Global Note, no such Event of Default shall permit or
result in the acceleration of any amounts due under this Note or the Indenture.

Section 11. Governing Law.

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

B-3-11EX-10.2

Exhibit 10.2

EMPLOYMENT AGREEMENT

(Change of Control)

     This Employment Agreement (“Agreement”), dated as of                      is entered into between Noven
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and                      (the
“Executive”).

     The Board of Directors of the Company (the “Board”), has determined that it is in the
best interests of the Company and its shareholders to assure that the company will have the
continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a
Change of Control (as defined in Section 2) of the Company. The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and
risks created by a pending or threatened Change of Control and to encourage the Executive’s full
attention and dedication to the Company currently and in the event of any threatened or pending
Change of Control and to provide the Executive with compensation and benefits arrangements upon a
Change of Control which promote continued service of the Executive to the Company, thereby
potentially enhancing the value received by shareholders in the Change of Control, and which are
competitive with those of other corporations. Therefore, in order to accomplish these objectives,
the Board has caused the Company to enter into this Agreement.

     In consideration of the foregoing and the mutual promises contained below, and in
consideration of the Executive’s entry into non-competition covenants under the Confidentiality and
Invention Agreement or any other separate agreement with the Company, Executive and the Company
agree as set forth below.

     1. Certain Definitions.

     (a) “Effective Date” shall mean the first date during the Change of Control Period (as
defined in Section 1(b)) on which a Change of Control occurs. Anything in this Agreement to the
contrary notwithstanding, if a Change of Control occurs and if the Executive’s employment with the
Company is terminated prior to the date on which the Change of Control occurs, and if it is
reasonably demonstrated by the Executive that such termination of employment (i) was at the request
of a third party who has taken steps reasonably calculated to effect the Change of Control or (ii)
otherwise arose in connection with or in anticipation of the Change of Control, then for all
purposes of this Agreement the “Effective Date” shall mean the date immediately prior to the date
of such termination of employment.

     (b) “Change of Control Period” shall mean the period commencing on the date hereof and
ending on the third anniversary of such date; provided, however, that commencing on the date one
year after the date hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to
as the “Renewal Date”) the Change of Control Period may be extended by the Company so as to
terminate three years from such Renewal Date by the Company giving notice to the Executive that the
Change of Control Period shall be so extended.

 

 

     2. Change of Control. For the purpose of this Agreement, a “Change of
Control” shall mean the occurrence of one of the following events after the date of this
Agreement:

     (a) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934), (an “Acquiring Person”) shall acquire voting securities
of the Company and immediately thereafter is a beneficial owner (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934) of 40% or more of either (i) the then
outstanding shares of common stock of the Company or (ii) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however, that an
Acquiring Person shall not include the Company, any of its affiliated companies (as defined in
Section 4(b)(i) hereof), any employee benefit plan of the Company or its affiliated companies, or
any person or entity organized, appointed or established by the Company or its affiliated companies
for or pursuant to the terms of any such plan); or

     (b) During any period of two consecutive years, individuals who at the beginning of such
period constitute the Board, and any new director (other than a director who is a representative or
nominee of an Acquiring Person) whose election by the Board or nomination for election by the
Company’s shareholders was approved by a vote of at least a majority of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a majority of the Board; or

     (c) The shareholders of the Company approve a merger or consolidation of the Company with any
other corporation, and the merger or consolidation has been consummated, other than a merger or
consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent corporation (within the meaning of Section
424(e) of the Internal Revenue Code of 1986, as amended (the “Code”)) of such surviving
entity) at least a majority of the Outstanding Company Voting Securities, such surviving entity or
the parent corporation of such surviving entity outstanding immediately after such merger or
consolidation; or

     (d) the shareholders of the Company approve a plan of reorganization (other than a
reorganization under the United States Bankruptcy Code) or complete liquidation of the Company or
an agreement for the sale or disposition by the Company of all or substantially all of the
Company’s assets, and the Company has taken the first substantive step pursuant to the plan of
reorganization or complete liquidation or the sale or
disposition has been consummated; provided, however, that a Change of Control shall not be
deemed to have occurred in the event of: (i) a sale or conveyance in which the Company continues as
the ultimate parent holding company of an entity or entities that conduct all or substantially all
of the business or businesses formerly conducted by the Company, or (ii) any transaction undertaken
for the purpose of incorporating the Company under the laws of another jurisdiction, if such
transaction does not materially affect the beneficial ownership of the Company’s capital stock.

-2-

 

     3. Employment Period. The Company hereby agrees to continue the Executive in its
employ, and the Executive hereby agrees to remain in the employ of the Company, in accordance with
the terms and provisions of this Agreement, for the period commencing on the Effective Date and
ending on the second anniversary of such date (the “Employment Period”). The foregoing
notwithstanding, it shall not constitute a breach of this Section 3 for the employment of the
Executive to terminate in accordance with Section 5 prior to the end of the Employment Period.

     4. Terms of Employment.

     (a) Position and Duties.

          (i) During the Employment Period, (A) the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held, exercised and
assigned at any time during the 90-day period immediately preceding the Effective Date and (B) the
Executive’s services shall be performed at the location where the Executive was employed
immediately preceding the Effective Date or any office which is the headquarters of the Company and
is less than 35 miles from such location. For purposes of this Agreement, if Executive has
authority, duties and responsibilities that relate to the Company’s status as a publicly held
company immediately preceding the Effective Date, the Executive’s authority, duties and
responsibilities shall be deemed commensurate only if they continue to relate to the ultimate
parent corporation (whether or not that company is a publicly held company).

          (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote substantially full attention and
time during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities do not significantly interfere with the performance of the Executive’s
responsibilities as an employee of the Company (or as a director of the Company, if serving as
such), in accordance with this Agreement. It is expressly
understood and agreed that to the extent that any such activities have been conducted by the
Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the
Company.

-3-

 

     (b) Compensation.

          (i) Base Salary. During the Employment Period, the Executive shall receive an annual
base salary (“Annual Base Salary”), which shall be paid in equal installments on a monthly
or more frequent basis, at least equal to twelve times the highest monthly base salary paid or
payable to the Executive by the Company and its affiliated companies in respect of the twelve-month
period immediately preceding the month in which the Effective Date occurs. During the Employment
Period, the Annual Base Salary shall be reviewed at least annually and shall be increased at any
time and from time to time as shall be substantially consistent with increases in base salary
generally awarded in the ordinary course of business to other Peer Executives (as defined below) of
the Company and its affiliated companies. Any increase in Annual Base Salary shall not serve to
limit or reduce any other obligation to the Executive under this Agreement. Annual Base Salary
shall not be reduced after any such increase and the term Annual Base Salary as utilized in this
Agreement shall refer to Annual Base Salary as so increased. As used in this Agreement, the term
“affiliated companies” shall include any company controlled by, controlling or under common
control with the Company.

          (ii) Annual Bonus. In addition to Annual Base Salary, the Executive (A)
shall be awarded, for the fiscal year during which the Change of Control occurred and
the next following fiscal year during the Employment Period, an annual bonus (the
“Annual Bonus”) in cash at least equal to the average annualized (for any
fiscal year consisting of less than twelve full months or with respect to which the
Executive has been employed by the Company for less than twelve full months) bonus
paid or payable, including by reason of any deferral, to the Executive by the Company
and its affiliated companies in respect of the three fiscal years immediately
preceding the fiscal year in which the Effective Date occurs (the “Recent Average
Bonus”), and (B) shall be provided an opportunity to earn an Annual Bonus, for
any fiscal year beginning during the Employment Period after the end of the fiscal
years covered by clause (A), with the following terms:

	 	(a)	 	Target bonus payable for performance at a designated target
level which shall be a percentage of Annual Base Salary not less than the
percentage of Executive’s then annual base salary represented by Executive’s
highest target bonus amount established prior to the Change of Control and
with respect to the year in which the Change of Control occurred or, if no
annual bonus was established for that year, with respect to the immediately
preceding year
	 
	 	(b)	 	Bonus payable at amounts in excess of the target bonus for
performance at designated levels in excess of the designated target level,
consistent with the bonus program as in effect prior to the Change of Control

-4-

 

	 	(c)	 	Minimum bonus payable for performance at a designated
threshold level will equal 50% of target bonus, with bonus amounts payable
interpolated for performance between threshold and target
	 
	 	(d)	 	No bonus will be payable for performance below the designated
threshold level
	 
	 	(e)	 	The Board or its compensation committee shall determine the
performance requirements, but such requirements must be reasonably related to
the Company’s business plan, with the target performance level determined by
the Board or its compensation committee to be reasonably likely to be attained
(taking into account the business plan) and not more difficult to attain than
the target level of performance applicable to annual bonus opportunities of
other senior executives for that fiscal year, and the above-target performance
requirements and threshold performance requirements being specified for the
same type of performance and with levels that vary in difficulty of attainment
from the level of target performance by customary increments based on the most
favorable terms of the Company’s annual bonus program in effect in the three
fiscal years beginning immediately before the Change of Control.
	 
	 	(f)	 	Each such Annual Bonus shall be paid no later than the end
of the third month of the fiscal year next following the fiscal year for which
the Annual Bonus is awarded, unless the Executive shall elect to defer the
receipt of such Annual Bonus.

          (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the
Executive shall be entitled to participate in all incentive, savings and retirement plans,
practices, policies and programs applicable generally to other Peer Executives of the Company and
its affiliated companies, but in no event shall such plans, practice, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at any time during the
90-day period immediately preceding the Effective Date or if more favorable to the Executive, those
provided generally at any time after the Effective Date to other Peer Executives of the Company and
its affiliated companies.

-5-

 

          (iv) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible for participation in and shall receive
all benefits under welfare benefit plans, practices,
policies and programs provided by the Company and its affiliated companies (including, without
limitation, medical, prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans and programs) to the extent applicable
generally to other Peer Executives of the Company and its affiliated companies, but in no event
shall such plans, practices, policies and programs provide the Executive with benefits which are
less favorable, in the aggregate, than the most favorable of such plans, practices, policies and
programs in effect for the Executive at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally at any time after
the Effective Date to other Peer Executives of the Company and its affiliated companies.

          (v) Expenses. During the Employment Period, the Executive shall be entitled to
receive prompt reimbursement for all reasonable employment expenses incurred by the Executive in
accordance with the most favorable policies, practices and procedures of the Company and its
affiliated companies in effect for the Executive at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any
time thereafter with respect to other Peer Executives of the Company and its affiliated companies.

          (vi) Fringe Benefits. During the Employment Period, the Executive shall be entitled
to fringe benefits in accordance with the most favorable plans, practices, programs and policies of
the Company and its affiliated companies in effect for the Executive at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other Peer Executives of the Company and
its affiliated companies.

          (vii) Office and Support Staff. During the Employment Period, the Executive shall be
entitled to an office or offices of a size and with furnishings and other appointments, and to
exclusive personal secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies at any time during
the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive,
as provided generally at any time thereafter with respect to other Peer Executives of the Company
and its affiliated companies.

          (viii) Vacation. During the Employment Period, the Executive shall be entitled to
paid vacation in accordance with the most favorable plans, policies, programs and practices of the
Company and its affiliated companies as in effect for the Executive at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other Peer Executives of the Company and
its affiliated companies.

          (ix) “Peer Executives.” For purposes of this Agreement, references to “peer
executives of the Company and its affiliated companies” shall refer only to Executives based in the
United States.

-6-

 

     5. Termination of Employment.

     (a) Death or Disability. The Executive’s employment shall terminate automatically
upon the Executive’s death during the Employment Period. If the Company determines in good faith
that the Disability of the Executive has occurred during the Employment Period (pursuant to the
definition of Disability set forth below), it may give to the Executive written notice in
accordance with Section 12(b) of its intention to terminate the Executive’s employment. In such
event, the Executive’s employment with the Company shall terminate effective on the 30th day after
receipt of such notice by the Executive (the “Disability Effective Date”), provided that,
within the 30 days after such receipt, the Executive shall not have returned to full-time
performance of the Executive’s duties. For purposes of this Agreement, “Disability” shall
mean the absence of the Executive from the Executive’s duties with the Company on a full-time basis
for 180 consecutive business days as a result of incapacity due to mental or physical illness which
is determined to be total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

     (b) Cause. The Company may terminate the Executive’s employment during the Employment
Period for Cause. For purposes of this Agreement, “Cause” shall only mean (i) any material act or
acts of personal dishonesty taken by Executive which is either (x) at the expense of the Company,
or (y) reasonably likely to bring significant disrepute to the Company, (ii) subject to the
following sentences, any violation by Executive of Executive’s material obligations under this
Agreement (other than as a result of incapacity due to physical or mental illness) which is
demonstrably willful and deliberate on Executive’s part and which is not remedied within ten
business days after receipt of written notice from the Company, (iii) the conviction of Executive
for any criminal act which is a felony or a misdemeanor in each case involving moral turpitude, or
(iv) a material breach of Executive’s Confidentiality and Invention Agreement with the Company.
The requirement of written notice from the Company specifying the breach is mandatory, and shall
provide at least ten days for such breach to be remedied.

     (c) Good Reason. The Executive’s employment may be terminated during the Employment
Period by the Executive for Good Reason. For purposes of this Agreement, “Good Reason”
shall mean:

          (i) the assignment to the Executive of any duties inconsistent in any respect with the
Executive’s position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities as contemplated by Section 4(a) or any other action by the Company which
results in a diminution in such position (including any action which results in a diminution of
status, offices, titles and reporting levels or requirements), authority, duties or
responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith and which is remedied by the Company promptly after receipt of written notice
thereof given by the Executive;

-7-

 

          (ii) any failure by the Company to comply with any of the provisions of Section 4(b), other
than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of written notice thereof given by the Executive;

          (iii) the Company’s requiring the Executive to be based at any office or location other than
that described in Section 4(a)(i)(B);

          (iv) any purported termination by the Company of the Executive’s employment otherwise than as
expressly permitted by this Agreement; or

          (v) any failure by the Company to comply with and satisfy Section 11(c), provided that such
successor has received at least ten days prior written notice from the Company or the Executive of
the requirements of Section 11(c).

For purposes of this Section 5(c), (A) the requirement of written notice from the Executive
specifying the grounds for Good Reason is mandatory in all cases, but Good Reason will exist if the
Company fails to remedy any such grounds for Good Reason within ten days, and (B) any good faith
determination of “Good Reason” made by the Executive shall be conclusive.

     (d) Notice of Termination. Any termination by the Company for Cause, or by the
Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto
given in accordance with Section 12(b). For purposes of this Agreement, a “Notice of
Termination” means a written notice which (i) indicates the specific termination provision in
this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated and (iii) if the Date of Termination (as defined below) is other
than the date of receipt of such notice, specifies the termination date (which date shall be not
more than 15 days after the giving of such notice). The failure by the Executive or the Company to
set forth in the Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company hereunder or
preclude the Executive or the Company from asserting such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” means (i) if the Executive’s
employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of
receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii)
if the Executive’s employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the Executive of such
termination and (iii) if the Executive’s employment is terminated by reason of death or Disability,
the Date of Termination shall be the date of death of the Executive or the Disability Effective
Date, as the case may be.

-8-

 

     6. Obligations of the Company Upon Termination.

     (a) Good Reason; Other Than for Cause or Disability. If, during the Employment
Period, the Company shall terminate the Executive’s employment other than for Cause or Disability
or the Executive shall terminate employment for Good Reason:

          (i) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date
of Termination the aggregate of the following amounts:

               A. the sum of (1) the Executive’s Annual Base Salary through the Date of Termination to the
extent not theretofore paid, and (2) the product of (x) the greater of (i) the Annual Bonus paid or
payable, including by reason of any deferral, to the Executive (and annualized for any fiscal year
consisting of less than twelve full months or for which the Executive has been employed for less
than twelve full months) for the most recently completed fiscal year during the Employment Period,
if any, and (ii) the Recent Average Bonus (such greater amount shall be hereinafter referred to as
the “Highest Annual Bonus”) and (y) a fraction, the numerator of which is the number of
days in the current fiscal year through the Date of Termination, and the denominator of which is
365, (the sum of the amounts described in clauses (1) and (2) shall be hereinafter referred to as
the “Accrued Obligations”), and payments of deferred compensation pursuant to Section 6(e);
and

               B. the amount (such amount shall be hereinafter referred to as the “Severance Amount”)
equal to the product of (1) two and (2) the sum of (x) the Executive’s Annual Base Salary and (y)
the Highest Annual Bonus; and, provided further, that such amount shall be reduced by the present
value (determined as provided in Section 280G(d)(4) of the Code) of any other amount of severance
relating to salary or bonus continuation to be received by the Executive upon termination of
employment of the Executive under any agreement, severance plan, policy or arrangement of the
Company or its subsidiaries or affiliated companies; and

          (ii) for the remainder of the Employment Period, or such longer period as any plan, program,
practice or policy may provide, the Company shall continue benefits to the Executive and/or the
Executive’s family at least equal to those which would have been provided to them in accordance
with the plans, programs, practices and policies described in Section 4(b) (iv) and Section
4(b)(vi) if the Executive’s employment had not been terminated in accordance with the most
favorable plans, practices, programs or policies of the Company and its affiliated companies as in
effect and applicable generally to other Peer Executives and their families during the 90-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other Peer Executives of the Company and
its affiliated companies and their families, (such continuation of such benefits for the applicable
period herein set forth shall be hereinafter referred to as “Welfare Benefit Continuation). If the
Executive becomes re-employed with another
employer and is eligible to receive medical or other welfare benefits under another employer
provided plan, the medical and other welfare benefits described herein shall be secondary to those
provided under such other plan during such applicable period of eligibility. For purposes of
determining eligibility of the Executive for retiree benefits pursuant to such plans, practices,
programs and policies, the Executive shall be considered to have remained employed until the end of
the Employment Period and to have retired on the last day of such period; and

-9-

 

          (iii) to the extent not theretofore paid or provided, the Company shall timely pay or provide
to the Executive and/or the Executive’s family any other amounts or benefits required to be paid or
provided or which the Executive and/or the Executive’s family is eligible to receive pursuant to
this Agreement and under any plan, program, policy or practice or contract or agreement of the
Company and its affiliated companies as in effect and applicable generally to other Peer Executives
and their families during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally thereafter with respect to other peer executives
of the Company and its affiliated companies and their families (such other amounts and benefits
shall be hereinafter referred to as the “Other Benefits”).

          (iv) Except to the extent this benefit is provided under (ii) or (iii) above, the Company
shall provide Executive with outplacement benefits for a one-year period on terms consistent with
the highest level of such benefits provided under policies and practices in effect in the one year
period before the Change of Control, provided that Executive may elect within 15 days of
termination to receive, in lieu of such benefits, a cash payment equal to the present value of such
benefits.

          (v) If any benefit to be provided under (ii) or (iii) above cannot be so provided under the
terms of the plan or program, or legal limitations on such plan or program, in lieu of such benefit
the Company shall pay to Executive an amount in cash equivalent (on an after-tax basis from the
Executive’s point of view) to the Company’s cost of providing such benefit to Executive on an
individual basis, but assuming that any cost to the Executive under the plan or program would have
been borne by the Executive (in an equal dollar amount) under such individual arrangement.

     (b) Death. If the Executive’s employment is terminated by reason of the Executive’s
death during the Employment Period, employment under this Agreement shall terminate without further
obligations to the Executive’s legal representatives under this Agreement, other than for (i)
payment of Accrued Obligations (which shall be paid to the Executive’s estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date of Termination), payment of deferred
compensation obligations pursuant to Section 6(e), and the timely payment or provision of the
Welfare Benefit Continuation and Other Benefits (excluding, in each case, Death Benefits (as
defined below)) and (ii) payment to the Executive’s estate or beneficiary, as applicable, in a lump
sum in cash within 30 days of the Date of Termination of an amount equal to the present value
(determined as provided in Section 280G(d)(4) of the Code) of any cash amount to be
received by the Executive or the Executive’s family as a death benefit pursuant to the terms of any
plan, policy or arrangement of the Company and its affiliated companies, but not including any
proceeds of life insurance covering the Executive to the extent paid for directly or on a
contributory basis by the Executive (which shall be paid in any event as an Other Benefit) (the
benefits included in this clause (b) shall be hereinafter referred to as the “Death
Benefits”).

-10-

 

     (c) Disability. If the Executive’s employment is terminated by reason of the
Executive’s Disability during the Employment Period, employment under this Agreement shall
terminate without further obligations to the Executive under this Agreement, other than for (i)
payment of Accrued Obligations (which shall be paid to the Executive in a lump sum in cash within
30 days of the Date of Termination), payments of deferred compensation pursuant to Section 6(e),
and the timely payment or provision of the Welfare Benefit Continuation and Other Benefits
(excluding, in each case, Disability Benefits (as defined below)) and (ii) payment to the Executive
in a lump sum in cash within 30 days of the Date of Termination of an amount equal to the present
value (determined as provided in Section 280G(d)(4) of the Code) of any cash amount to be received
by the Executive as a disability benefit pursuant to the terms of any plan, policy or arrangement
of the Company and its affiliated companies, but not including any proceeds of disability insurance
covering the Executive to the extent paid for directly or on a contributory basis by the Executive
(which shall be paid in any event as an Other Benefit) (the benefits included in this clause (c)
shall be hereinafter referred to as the “Disability Benefits”).

     (d) Cause; Other than for Good Reason. If the Executive’s employment shall be
terminated for Cause during the Employment Period, employment under this Agreement shall terminate
without further obligations to the Executive under this Agreement, other than the obligation to pay
to the Executive Annual Base Salary through the Date of Termination and payments of deferred
compensation pursuant to Section 6(e) to the extent theretofore unpaid. If the Executive
terminates employment during the Employment Period, excluding a termination for Good Reason, this
Agreement shall terminate without further obligations to the Executive, other than for Accrued
Obligations and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.

     (e) Deferred Compensation Payouts. Upon any termination of employment, payments shall
be made to the Executive (or to Executive’s legal representatives following death) of vested
deferred compensation at such times as specified under the documents governing the deferred
compensation plan or arrangement, subject to applicable limitations under Code Section 409A to
ensure that no additional taxes apply thereunder.

     7. Non-exclusivity of Rights. Except as provided in Sections 6(a)(ii), 6(b), 6(c) and
6(d), nothing in this Agreement shall prevent or limit the Executive’s continuing
or future participation in any plan, program, policy or practice provided by the Company or any of
its affiliated companies and for which the Executive may qualify, nor shall anything herein limit
or otherwise affect such rights as the Executive may have under any contract or agreement with the
Company or any of its affiliated companies. Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or program of or any
contract or agreement with the Company or any of its affiliated companies at or subsequent to the
Date of Termination shall be payable in accordance with such plan, policy, practice or program or
contract or agreement except as explicitly modified by this Agreement.

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     8. Full Settlement: Resolution of Disputes.

     (a) The payment by the Company to the Executive of the amounts required by this Agreement
shall serve as a full settlement of any and all claims which the Executive may have against the
Company arising out of or in connection with the termination of the Executive’s employment by the
Company.

     (b) The Company’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other employment or take
any other action by way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and, except as provided in Section 6(a)(ii), such amounts shall not be
reduced whether or not the Executive obtains other employment. The Company agrees to pay promptly
as incurred, to the full extent permitted by law, all legal fees and expenses which the Executive
may reasonably incur as a result of any dispute or contest (regardless of the outcome thereof) by
the Company, the Executive or others of the validity or enforceability of, or liability under, any
provision of this Agreement or any guarantee of performance thereof (including as a result of any
dispute or contest by the Executive about the amount of any payment pursuant to this Agreement),
plus in each case interest on any delayed payment at the applicable Federal rate provided for in
Section 7872(f)(2)(A) of the Code.

     (c) If there shall be any dispute between the Company and the Executive (i) in the event of
any termination of the Executive’s employment by the Company, whether such termination was for
Cause, or (ii) in the event of any termination of employment by the Executive, whether Good Reason
existed, then, unless and until there is a final, nonappealable judgment by a court of competent
jurisdiction declaring that such termination was for Cause or that the determination by the
Executive of the existence of Good Reason was not made in good faith, the Company shall pay all
amounts, and provide all benefits, to the Executive and/or the Executive’s family or other
beneficiaries, as the case may be, that the Company would be required to pay or provide pursuant to
Section 6(a) as though such termination were by the Company without Cause or by the Executive with
Good Reason; provided, however, that the Company shall not be required
to pay any disputed amounts pursuant to this paragraph except upon receipt of an undertaking by or
on behalf of the Executive to repay all such amounts to which the Executive is ultimately adjudged
by such court not to be entitled.

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     9. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to or for the benefit of the Executive
(whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required under this Section 9)
(a “Payment”) would be subject to the excise tax imposed by section 4999 of the Code or any
interest or penalties are incurred by the Executive with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive shall be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and
Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.

     (b) Subject to the provisions of Section 9(c), all determinations required to be made under
this Section 9, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by Deloitte & Touche LLP (the “Accounting Firm”), which shall provide detailed
supporting calculations both to the Company and the Executive within 15 business days of the
receipt of notice from the Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 9, shall be paid by the Company to the Executive within five
days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that
no Excise Tax is payable by the Executive, it shall furnish the Executive with a written opinion
that failure to report the Excise Tax on the Executive’s applicable federal income tax return would
not result in the imposition of a negligence or similar penalty. Any determination by the
Accounting Firm shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been
made by the Company should have been made (“Underpayment”), consistent with the
calculations required to be made hereunder. In the event that the Company exhausts its remedies
pursuant to Section 9(c) and the Executive thereafter is required to make a
payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that
has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit
of the Executive.

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     (c) The Executive shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than ten business days after
the Executive is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on which it gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive shall: (i) give the
Company any information reasonably requested by the Company relating to such claim, (ii) take such
action in connection with contesting such claim as the Company shall reasonably request in writing
from time to time, including, without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company, (iii) cooperate with the Company in
good faith in order effectively to contest such claim, and (iv) permit the Company to participate
in any proceedings relating to such claim; provided, however, that the Company shall bear and pay
directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses. Without limitation
on the foregoing provisions of this Section 9(c), the Company shall control all proceedings taken
in connection with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and
sue for a refund or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Executive, on an interest-free basis and
shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such advance; and further provided
that any extension of the statute of limitations relating to payment of taxes for the taxable year
of the Executive with respect to which such contested amount is claimed to be due is limited solely
to such contested amount. Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall
be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 9(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 9(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 9(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and
the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid.

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     10. Confidential Information. The Executive shall hold in a fiduciary capacity for
the benefit of the Company all secret or confidential information, knowledge or data relating to
the Company or any of its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive’s employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement). After termination
of the Executive’s employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of this Section 10
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

     11. Successors.

     (a) This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive other than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

     (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or
otherwise.

     12. Compliance with Code Section 409A.

     (a) General. It is the intention of both the Company and the Executive that benefits
and rights to which Executive could be entitled pursuant to this Agreement comply with Section 409A
of the Code and the Treasury Regulations and other guidance promulgated or issued thereunder
(“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and
the provisions of this Agreement shall be construed in a manner consistent with that intention. If
Executive or the Company believes, at any time, that any such benefit or right that is subject to
Section 409A does not so comply, it shall promptly advise the other and shall negotiate reasonably
and in good faith to amend the terms of such benefits and rights such that they comply with Section
409A (with the most limited possible economic effect on Executive and on the Company).

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     (b) Distributions on Account of Separation from Service. If and to the extent
required to comply with Section 409A, no payment or benefit required to be paid under this
Agreement on account of termination of Executive’s employment shall be made unless and until
Executive incurs a “separation from service” within the meaning of Section 409A.

     (c) Six Month Delay for Specified Employees. If Executive is a “specified employee,”
then no payment or benefit that is payable on account of Executive’s “separation from service,” as
that term is defined for purposes of Section 409A, shall be made before the date that is six months
after Executive’s “separation from service” (or, if earlier, the date of Executive’s death, to the
extent that such payment or benefit constitutes deferred compensation (or may be nonqualified
deferred compensation) under Section 409A and such deferral is required to comply with the
requirements of Section 409A. For purposes of this Section, Executive shall be considered to be a
“specified employee” if, at the time of his or her separation from service, Executive is a “key
employee,” within the meaning of Section 416(i) of the Code, of the Company (or any person or
entity with whom the Company would be considered a single employer under Section 414(b) or Section
414(c) of the Code) any stock in which is publicly traded on an established securities market or
otherwise.

     (d) No Acceleration of Payments. Neither the Company nor Executive, individually or
in combination, may accelerate any payment or benefit that is subject to Section 409A, except in
compliance with Section 409A and the provisions of this Agreement, and no amount that is subject to
Section 409A shall be paid prior to the earliest date on which it may be paid without violating
Section 409A.

     13. Miscellaneous.

     (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Florida, without reference to principles of conflict of laws. The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives. Notwithstanding the foregoing, the parties hereto
agree without the requirement of further consent that this Agreement will be amended, to the extent
required, to comply with the requirements of section 409A of the Code and applicable regulations.

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     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

	 	 	 
	If to the Executive:

	 	To the Executive’s most recent address

according to the Company’s records.
	 
	 	 
	If to the Company:

	 	Noven Pharmaceuticals, Inc.
	 

	 	11960
S.W. 144th Street
	 

	 	Miami, Florida 33186
	 

	 	Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal, state
or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision hereof or any other provision of this Agreement or the failure to assert any right the
Executive or the Company may have hereunder, including, without limitation, the right of the
Executive to terminate employment for Good Reason pursuant to Section 5(c)(i)-(v), shall not be
deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

     (f) The Executive and the Company acknowledge that, except as may otherwise be provided under
any other written agreement between the Executive and the
Company, the employment of the Executive by the Company is “at will” and, prior to the Effective
Date, may be terminated by either the Executive or the Company at any time. Moreover, if prior to
the Effective Date, the Executive’s employment with the Company terminates, then the Executive
shall have no further rights under this Agreement. From and after the Effective Date, this
Agreement shall supersede any prior agreement between the parties with respect to the subject
matter hereof.

     (g) This Agreement shall supersede and replace any Employment Agreement (Change in Control)
between the Company and Executive dated prior to the date of this Agreement.

-17-

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board, the Company has caused these presents to be executed in its name on
its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 	Noven Pharmaceuticals, Inc.

 	 
	 	/s/
 	 
	 	Peter Brandt 	 
	 	President & Chief Executive Officer 	 
	 
	 	 	 
	 	      /s/
 	 
	 	[                    ] 	 
	 	Executive 	 
	 

-18-

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