Document:

EX-4.2

 

EXHIBIT 4.2

Form of
Note

This Security is a Global Security within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depositary or a nominee of a Depositary. This Security is
exchangeable for Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture and may not be transferred
except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary.

 

 

Form of Note

MEDCO HEALTH SOLUTIONS, INC.

 

6.125% Notes due 2013

			
	 	 	 
	No. [      ]
	 	 
	CUSIP No. 58405U AE 2
	 	$

     MEDCO HEALTH SOLUTIONS, INC., a corporation duly organized and existing under the laws of
Delaware (herein called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to, or registered
assigns, the principal sum of                      HUNDRED MILLION DOLLARS ($                    ) on March 15, 2013, and
to pay interest thereon from March 18, 2008, semi-annually on March 15 and September 15 in each
year, commencing September 15, 2008, at the rate of 6.125% per annum, until the principal hereof is
paid or made available for payment. Interest on this Security shall be calculated on a pro rata
basis using twelve 30-day months and a 360-day year. 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 Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the February 28 or
August 31 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior
to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture.

     Payment of the principal of and interest on this Security shall be payable at the Corporate
Trust Office of U.S. Bank Trust National Association, located at 100 Wall Street, Suite 1600, New
York, NY 10005 or at such other office or agency of the Company maintained for that purpose in New
York, NY, in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at
the option of the Company, interest may be paid by check mailed to the address of the person
entitled thereto as such address shall appear on the Security Register or by transfer to an account
maintained by the payee with a bank located in the United States; and, provided,
further, that so long as this Security is registered in the name of DTC or its nominee,
principal and interest payments will be paid to DTC or its nominee, as the Holder, by wire transfer
in same-day funds.

 

 

     For purposes of the Indenture, “business day” means each Monday, Tuesday, Wednesday, Thursday
and Friday that is not a day on which banking institutions in New York City are authorized or
obligated by law or executive order to close.

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

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     The Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York.

     All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

 

 

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

Dated:

	 	 	 	 	 
	 	MEDCO HEALTH SOLUTIONS, INC.

 	 
	 	By:  	 	 
	 	 	Peter Gaylord 	 
	 	 	Senior Vice President and Treasurer 	 
	 

	 	 	 	 	 
	Attest:

 	 	 
	By:  	 	 	 
	 	Lori B. Marino 	 	 
	 	Assistant Secretary 	 	 
	 

Dated:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

	 	 	 	 	 

Reverse of Security

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
March 18, 2008 (herein called the “Indenture”), from the Company to U.S. Bank Trust National
Association, as trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which the 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 Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof, limited in aggregate principal amount to                      HUNDRED
MILLION DOLLARS ($                    ) except for Securities authenticated and delivered upon registration or
transfer of, or in exchange for, or in lieu of, Securities pursuant to Sections 304, 305, 306, 906
or 1107 and subject to the right of the Company to “re-open” the Series of Securities.

     The Securities of this series are subject to redemption upon not less than 30 days’ but not
more than 60 days’ notice by mail, at any time, as a whole or in part, at the election of the
Company, at a Redemption Price equal to the greater of (i) 100% of the principal amount, together
in the case of any such redemption with accrued and unpaid interest to the Redemption Date and (ii)
the Make-Whole Amount for the Securities. On and after any redemption date (unless we default in
the payment of the redemption price and accrued interest) interest will cease to accrue on the
notes of portions of them called for redemption.

     “Make-Whole Amount” means the sum, as determined by a Quotation Agent (defined below), of the
present values of the principal amount of the notes to be redeemed, together with scheduled
payments of interest (exclusive of interest to the redemption date) from the redemption date to the
stated maturity of the notes discounted to the redemption date on a semi-annual basis, assuming a
360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate (defined below),
plus accrued and unpaid interest on the principal amount of the notes being redeemed to the
redemption date.

     “Adjusted Treasury Rate” means, with respect to any redemption date, (i) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15 (519)” or any successor publication which
is published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (as
defined below) (if no maturity is within three months before or after the remaining term of the
notes, yields for the two published maturities most closely corresponding to the Comparable
Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or
extrapolated from such yields on a straight-line basis, rounding to the nearest month) or (ii) if
such release (or any successor release) is not published during the week preceding the calculation
date or does not contain such yields, the rate per year equal to the semi-annual equivalent yield
to maturity of the Comparable Treasury Issue assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the

 

 

Comparable Treasury Price for such redemption date, in each case calculated on the third
business day preceding the redemption date, plus 0.50%.

     “Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent
as having a maturity comparable to the remaining term from the redemption date to the stated
maturity of the notes that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the notes.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term from the redemption date to
the Stated Maturity of the Securities that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Securities.

     “Comparable Treasury Price” means, with respect to any redemption date, if clause (ii) of the
definition of Adjusted Treasury Rate is applicable, the average of three, or such lesser number as
is obtained by the Trustee, Reference Treasury Dealer Quotations for such redemption date.

     “Quotation Agent” means one Reference Treasury Dealer selected by the Company.

     “Reference Treasury Dealer” means Citigroup Global Markets Inc., J.P. Morgan Securities Inc.,
Banc of America Securities LLC or Barclays Capital Inc., and any successor thereto or any other
primary United States Government securities dealers selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by a Reference Treasury Dealer, of the bid and
asking prices for the Comparable Treasury Issue, expressed in each case as a percentage of its
principal amount, quoted in writing to the trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day preceding such redemption date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The interest rate payable on the Securities of this series are subject to adjustments from
time to time if either Moody’s Investors Service, Inc or its successor (“Moody’s”) or Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or its successor (“S&P”)
downgrades (or subsequently upgrades) the debt rating assigned to the notes of that series, in the
manner described below.

     If the rating from Moody’s of the notes of a series is decreased to a rating set forth in the
immediately following table, the interest rate on the notes of that series will increase from the

 

 

interest rate payable on the notes of that series on the date of their issuance by the
percentage set forth opposite that rating:

	 	 	 	 	 
	Rating	 	Percentage	 
	 
	 
	 	 	 	 
	Ba1
	 	 	0.25	%
	Ba2
	 	 	0.50	%
	Ba3
	 	 	0.75	%
	B1 or below
	 	 	1.00	%

     If the rating from S&P of the notes of a series is decreased to a rating set forth in the
immediately following table, the interest rate on the notes of that series will increase from the
interest rate payable on the notes of that series on the date of their issuance by the percentage
set forth opposite that rating:

	 	 	 	 	 
	Rating	 	Percentage	 
	 
	 	 	 	 
	BB+
	 	 	0.25	%
	BB
	 	 	0.50	%
	BB-
	 	 	0.75	%
	B+ or below
	 	 	1.00	%

     If at any time the interest rate on the notes of a series has been adjusted upward and either
Moody’s or S&P, as the case may be, subsequently increases its rating of the notes of that series
to any of the threshold ratings set forth above, the interest rate on the notes of that series will
be decreased such that the interest rate for the notes of that series equals the interest rate
payable on the notes of that series on the date of their issuance plus the percentages set forth
opposite the ratings from the tables above in effect immediately following the increase. If Moody’s
subsequently increases its rating of the notes of a series to Baa3 or higher, and S&P increases its
rating to BBB- or higher the interest rate on the notes of that series will be decreased to the
interest rate payable on the notes of that series on the date of their issuance. In addition, the
interest rates on the notes of each series will permanently cease to be subject to any adjustment
described above (notwithstanding any subsequent decrease in the ratings by either or both rating
agencies) if the notes of that series become rated A2 and A or higher by Moody’s and S&P,
respectively (or one of these ratings if the notes are only rated by one rating agency).

     Each adjustment required by any decrease or increase in a rating set forth above, whether
occasioned by the action of Moody’s or S&P, shall be made independent of any and all other
adjustments. In no event shall (1) the interest rate for the notes be reduced to below the interest
rate payable on the notes on the date of their issuance or (2) the total increase in the interest
rate on the notes exceed 2.00% above the interest rate payable on the notes on the date of their
issuance.

 

 

     If either Moody’s or S&P ceases to provide a rating of the notes, any subsequent increase or
decrease in the interest rate of the notes necessitated by a reduction or increase in the rating by
the agency continuing to provide the rating shall be twice the percentage set forth in the
applicable table above. No adjustments in the interest rate of the notes shall be made solely as a
result of either Moody’s or S&P ceasing to provide a rating. If both Moody’s and S&P cease to
provide a rating of the notes, the interest rate on the notes will increase to, or remain at, as
the case may be, 2.00% above the interest rate payable on the notes on the date of their issuance.

     Any interest rate increase or decrease described above will take effect from the first day of
the interest period during which a rating change requires an adjustment in the interest rate.

     If the interest rate payable on the notes is increased as described above the term “interest,”
as used with respect to the notes, will be deemed to include any such additional interest unless
the context otherwise requires.

     If a Change of Control Triggering Event occurs, unless we have exercised our right to redeem
the notes as described under “Optional Redemption,” each holder of notes will have the right to
require us to purchase all or a portion of such holder’s notes at a purchase price equal to 101% of
the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase,
subject to the rights of holders of notes on the relevant record date to receive interest due on
the relevant interest payment date.

     “Change of Control Payment” means a purchase price in cash equal to 101% of the principal
amount of such Notes plus accrued and unpaid interest thereon, if any, to the date of repurchase,
subject to the rights of Holders of Notes on the relevant record date to receive interest due on
the relevant Interest Payment Date.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     The Change of Control Offer will be made in accordance with the terms specified in the
Indenture.

     The Indenture contains provisions for defeasance at any time of the entire outstanding
indebtedness of this Security and certain restrictive covenants and Events of Default with respect
to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities

 

 

of each series at the time Outstanding, on behalf of the Holders of all Securities of such
series, to waive compliance by the 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 Security shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security 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 Security at the times, place and rate,
and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
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 Security 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 Securities 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.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $2000 and integral multiples of $1,000 above that amount. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.

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

 

 

     Prior to due presentment of this Security 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
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

 

 

Option of Holder to Elect Purchase

If you want to elect to have this Security purchased by the Company pursuant to the Indenture,
check the box below:

o

If you want to elect to have only part of the Security purchased by the Company pursuant to the
Indenture, state the amount you elect to have purchased:

$                    

Date:                     

	 	 	 	 	 
	 	 	 
	 	Your Signature:  	
 	 
	 	 	(Sign exactly as your name appears on       	 
	 	 	the face of this Security) 	 
	 
	 	 	 
	 	Tax Identification No.:  	
 	 
	 	 	 	 
	 	 	 	 
	 

Signature Guarantee:**                                                                      
                                                        

 

**   Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee)

 

 

Assignment Form

To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to: 
 

 

Assignee’s social security or tax I.D. number:  

Assignee’s name, address and zip code:  

 

and irrevocably appoint                                                              as agent to transfer this Security on
 the books of the Company. The agent
may substitute another to act for him.

Date:  

Your Signature:  

                                         (Sign exactly as your name appears on the face of this Security)

Signature Guarantee:  

                                         (Participant in a Recognized Signature Guaranty Medallion Program)EX-4.3

 

EXHIBIT 4.3

Form
of Note

This Security is a Global Security within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depositary or a nominee of a Depositary. This Security is
exchangeable for Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture and may not be transferred
except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary.

 

 

Form of Note

MEDCO HEALTH SOLUTIONS, INC.
 

7.125% Notes due 2018

			
	 	 	 
	No. [     ]	 	 
	CUSIP No: 58405U AD 4
	 	$          

     MEDCO HEALTH SOLUTIONS, INC., a corporation duly organized and existing under the laws of
Delaware (herein called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to, or registered
assigns, the principal sum of                      HUNDRED MILLION DOLLARS ($          ) on March 15, 2018, and to pay
interest thereon from March 18, 2008, semi-annually on March 15 and September 15 in each year,
commencing September 15, 2008, at the rate of 7.125% per annum, until the principal hereof is paid
or made available for payment. Interest on this Security shall be calculated on a pro rata basis
using twelve 30-day months and a 360-day year. 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 Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the February 28 or
August 31 (whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Securities of this series not less than 10 days prior
to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture.

     Payment of the principal of and interest on this Security shall be payable at the Corporate
Trust Office of U.S. Bank Trust National Association, located at 100 Wall Street, Suite 1600, New
York, NY 10005 or at such other office or agency of the Company maintained for that purpose in New
York, NY, in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts; provided, however, that at
the option of the Company, interest may be paid by check mailed to the address of the person
entitled thereto as such address shall appear on the Security Register or by transfer to an account
maintained by the payee with a bank located in the United States; and, provided,
further, that so long as this Security is registered in the name of DTC or its nominee,
principal and interest payments will be paid to DTC or its nominee, as the Holder, by wire transfer
in same-day funds.

     For purposes of the Indenture, “business day” means each Monday, Tuesday, Wednesday, Thursday
and Friday that is not a day on which banking institutions in New York City are authorized or
obligated by law or executive order to close.

 

 

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

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     The Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York.

     All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

 

 

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

Dated:

	 	 	 	 	 
	 	MEDCO HEALTH SOLUTIONS, INC.

 	 
	 	By:  	 	 
	 	 	Peter Gaylord 	 
	 	 	Senior Vice President and Treasurer 	 

	 	 	 	 	 
	Attest:

 	 	 
	By:  	 	 	 
	 	Lori B. Marino 	 	 
	 	Assistant Secretary 	 	 

Dated:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION,

As Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

 

 

Reverse of Security

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
March 18, 2008 (herein called the “Indenture”), from the Company to U.S. Bank Trust National
Association, as trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which the 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 Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof, limited in aggregate principal amount to                      HUNDRED
MILLION DOLLARS ($          ) except for Securities authenticated and delivered upon registration or
transfer of, or in exchange for, or in lieu of, Securities pursuant to Sections 304, 305, 306, 906
or 1107 and subject to the right of the Company to “re-open” the Series of Securities.

     The Securities of this series are subject to redemption upon not less than 30 days’ but not
more than 60 days’ notice by mail, at any time, as a whole or in part, at the election of the
Company, at a Redemption Price equal to the greater of (i) 100% of the principal amount, together
in the case of any such redemption with accrued and unpaid interest to the Redemption Date and (ii)
the Make-Whole Amount for the Securities. On and after any redemption date (unless we default in
the payment of the redemption price and accrued interest) interest will cease to accrue on the
notes of portions of them called for redemption.

     “Make-Whole Amount” means the sum, as determined by a Quotation Agent (defined below), of the
present values of the principal amount of the notes to be redeemed, together with scheduled
payments of interest (exclusive of interest to the redemption date) from the redemption date to the
stated maturity of the notes discounted to the redemption date on a semi-annual basis, assuming a
360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate (defined below),
plus accrued and unpaid interest on the principal amount of the notes being redeemed to the
redemption date.

     “Adjusted Treasury Rate” means, with respect to any redemption date, (i) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15 (519)” or any successor publication which
is published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (as
defined below) (if no maturity is within three months before or after the remaining term of the
notes, yields for the two published maturities most closely corresponding to the Comparable
Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or
extrapolated from such yields on a straight-line basis, rounding to the nearest month) or (ii) if
such release (or any successor release) is not published during the week preceding the calculation
date or does not contain such yields, the rate per year equal to the semi-annual equivalent yield
to maturity of the Comparable Treasury Issue assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the

 

 

Comparable Treasury Price for such redemption date, in each case calculated on the third
business day preceding the redemption date, plus 0.50%.

     “Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent
as having a maturity comparable to the remaining term from the redemption date to the stated
maturity of the notes that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the notes.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term from the redemption date to
the Stated Maturity of the Securities that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Securities.

     “Comparable Treasury Price” means, with respect to any redemption date, if clause (ii) of the
definition of Adjusted Treasury Rate is applicable, the average of three, or such lesser number as
is obtained by the Trustee, Reference Treasury Dealer Quotations for such redemption date.

     “Quotation Agent” means one Reference Treasury Dealer selected by the Company.

     “Reference Treasury Dealer” means Citigroup Global Markets Inc., J.P. Morgan Securities Inc.,
Banc of America Securities LLC or Barclays Capital Inc., and any successor thereto or any other
primary United States Government securities dealers selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by a Reference Treasury Dealer, of the bid and
asking prices for the Comparable Treasury Issue, expressed in each case as a percentage of its
principal amount, quoted in writing to the trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day preceding such redemption date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The interest rate payable on the Securities of this series are subject to adjustments from
time to time if either Moody’s Investors Service, Inc or its successor (“Moody’s”) or Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or its successor (“S&P”)
downgrades (or subsequently upgrades) the debt rating assigned to the notes of that series, in the
manner described below.

     If the rating from Moody’s of the notes of a series is decreased to a rating set forth in the
immediately following table, the interest rate on the notes of that series will increase from the

 

 

interest rate payable on the notes of that series on the date of their issuance by the
percentage set forth opposite that rating:

	 	 	 	 	 
	Rating	 	Percentage
	 
	 
	 	 	 	 
	Ba1
	 	 	0.25	%
	Ba2
	 	 	0.50	%
	Ba3
	 	 	0.75	%
	B1 or below
	 	 	1.00	%

     If the rating from S&P of the notes of a series is decreased to a rating set forth in the
immediately following table, the interest rate on the notes of that series will increase from the
interest rate payable on the notes of that series on the date of their issuance by the percentage
set forth opposite that rating:

	 	 	 	 	 
	Rating	 	Percentage
	 
	 	 	 	 
	BB+
	 	 	0.25	%
	BB
	 	 	0.50	%
	BB-
	 	 	0.75	%
	B+ or below
	 	 	1.00	%

     If at any time the interest rate on the notes of a series has been adjusted upward and either
Moody’s or S&P, as the case may be, subsequently increases its rating of the notes of that series
to any of the threshold ratings set forth above, the interest rate on the notes of that series will
be decreased such that the interest rate for the notes of that series equals the interest rate
payable on the notes of that series on the date of their issuance plus the percentages set forth
opposite the ratings from the tables above in effect immediately following the increase. If Moody’s
subsequently increases its rating of the notes of a series to Baa3 or higher, and S&P increases its
rating to BBB- or higher the interest rate on the notes of that series will be decreased to the
interest rate payable on the notes of that series on the date of their issuance. In addition, the
interest rates on the notes of each series will permanently cease to be subject to any adjustment
described above (notwithstanding any subsequent decrease in the ratings by either or both rating
agencies) if the notes of that series become rated A2 and A or higher by Moody’s and S&P,
respectively (or one of these ratings if the notes are only rated by one rating agency).

     Each adjustment required by any decrease or increase in a rating set forth above, whether
occasioned by the action of Moody’s or S&P, shall be made independent of any and all other
adjustments. In no event shall (1) the interest rate for the notes be reduced to below the interest
rate payable on the notes on the date of their issuance or (2) the total increase in the interest
rate on the notes exceed 2.00% above the interest rate payable on the notes on the date of their
issuance.

 

 

     If either Moody’s or S&P ceases to provide a rating of the notes, any subsequent increase or
decrease in the interest rate of the notes necessitated by a reduction or increase in the rating by
the agency continuing to provide the rating shall be twice the percentage set forth in the
applicable table above. No adjustments in the interest rate of the notes shall be made solely as a
result of either Moody’s or S&P ceasing to provide a rating. If both Moody’s and S&P cease to
provide a rating of the notes, the interest rate on the notes will increase to, or remain at, as
the case may be, 2.00% above the interest rate payable on the notes on the date of their issuance.

     Any interest rate increase or decrease described above will take effect from the first day of
the interest period during which a rating change requires an adjustment in the interest rate.

     If the interest rate payable on the notes is increased as described above the term “interest,”
as used with respect to the notes, will be deemed to include any such additional interest unless
the context otherwise requires.

     If a Change of Control Triggering Event occurs, unless we have exercised our right to redeem
the notes as described under “Optional Redemption,” each holder of notes will have the right to
require us to purchase all or a portion of such holder’s notes at a purchase price equal to 101% of
the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase,
subject to the rights of holders of notes on the relevant record date to receive interest due on
the relevant interest payment date.

     “Change of Control Payment” means a purchase price in cash equal to 101% of the principal
amount of such Notes plus accrued and unpaid interest thereon, if any, to the date of repurchase,
subject to the rights of Holders of Notes on the relevant record date to receive interest due on
the relevant Interest Payment Date.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     The Change of Control Offer will be made in accordance with the terms specified in the
Indenture.

     The Indenture contains provisions for defeasance at any time of the entire outstanding
indebtedness of this Security and certain restrictive covenants and Events of Default with respect
to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities

 

 

of each series at the time Outstanding, on behalf of the Holders of all Securities of such
series, to waive compliance by the 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 Security shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security 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 Security at the times, place and rate,
and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
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 Security 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 Securities 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.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $2000 and integral multiples of $1,000 above that amount. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.

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

 

 

     Prior to due presentment of this Security 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
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

 

 

Option of Holder to Elect Purchase

If you want to elect to have this Security purchased by the Company pursuant to the Indenture,
check the box below:

o

If you want to elect to have only part of the Security purchased by the Company pursuant to the
Indenture, state the amount you elect to have purchased:

$                    

Date:                               

	 	 	 	 	 
	 	Your Signature:
 	 
	 	 	(Sign exactly as your name appears on the
face of this Security)
 
	 
	 	Tax Identification No.: 	 	 

	 	 	 	 	 
	 
	Signature Guarantee:**
 	 	 	 
	 

 

			
	**	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee)

 

 

Assignment Form

	To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to:  	     

 

	Assignee’s social security or tax I.D. number:  	     

	Assignee’s name, address and zip code:  	     

	 

and irrevocably appoint       

                         
                          
                             as agent to transfer this Security on the books of the Company. The agent
may substitute another to act for him.

Date:                               
          

	 	 	 	 	 
	Your Signature: 	 	 
	 	 	(Sign exactly as your name appears on the face of this Security) 
	 
	Signature Guarantee: 	 	 
	 	 	(Participant in a Recognized Signature Guaranty Medallion Program)

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