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COPART, INC.
EXECUTIVE INCENTIVE COMPENSATION PLAN

1.Purposes of the Plan.  The Plan is intended to increase stockholder value and the success of the Company by motivating Employees to (a) perform to the best of their abilities and (b) achieve the Company’s objectives.

2.Definitions.

2.1    “Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period, subject to the authority of the Administrator (as defined in Section 3) under Section 4.4.

2.2    “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint ventures) that, from time to time and at the time of any determination, directly or indirectly, is in control of or is controlled by the Company.

2.3    “Board” means the Board of Directors of the Company.

2.4    “Bonus Pool” means the pool of funds available for distribution to Participants.  Subject to the terms of the Plan, the Administrator establishes the Bonus Pool for each Performance Period.

2.5    “Code” means the U.S. Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder will include such section or regulation, any valid regulation or formal guidance of general or direct applicability promulgated under such section or regulation, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

2.6    “Committee” means a committee appointed by the Board (pursuant to Section 3) to administer the Plan.

2.7    “Company” means Copart, Inc., a Delaware corporation, or any successor thereto.

2.8    “Company Group” means the Company and any Parents, Subsidiaries, and Affiliates.

2.9    “Disability” means a permanent and total disability determined in accordance with uniform and nondiscriminatory standards adopted by the Administrator from time to time.

2.10    “Employee” means any executive, officer, or other employee of the Company Group, whether such individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan.

2.11    “Fiscal Year” means the fiscal year of the Company.

2.12    “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).

2.13    “Participant” means as to any Performance Period, an Employee who has been selected by the Administrator for participation in the Plan for that Performance Period.

2.14    “Performance Period” means the period of time for the measurement of the performance criteria that must be met to receive an Actual Award, as determined by the Administrator.  A Performance Period may be divided into one or more shorter periods if, for example, but not by way of limitation, the Administrator desires to measure some performance criteria over 12 months and other criteria over 3 months.

2.15    “Plan” means this Executive Incentive Compensation Plan (including any appendix attached hereto), as may be amended from time to time.

2.16    “Section 409A” means Section 409A of the Code and/or any state law equivalent as each may be amended or promulgated from time to time.

2.17    “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f), in relation to the Company.

2.18    “Target Award” means the target award, at 100% of target level performance achievement, payable under the Plan to a Participant for a Performance Period, as determined by the Administrator in accordance with Section 4.2.

2.19    “Tax Withholdings” means tax, social insurance and social security liability or premium obligations in connection with the awards under the Plan, including without limitation: (a) all federal, state, and local income, employment and any other taxes (including the Participant’s U.S. Federal Insurance Contributions Act (FICA) obligation) that are required to be withheld by the Company Group, (b) the Participant’s and, to the extent required by the Company Group, the fringe benefit tax liability of the Company Group associated with an award under the Plan, and (c) any other taxes or social insurance or social security liabilities or premium the responsibility for which the Participant has, or has agreed to bear, with respect to such award under the Plan.

2.20    “Termination of Employment” means a cessation of the employee-employer relationship between an Employee and the Company Group, including without limitation a termination by resignation, discharge, death, Disability, retirement, or the disaffiliation of a Parent, Subsidiary or Affiliate.  For purposes of the Plan, transfer of employment of a Participant between any members of the Company Group (for example, between the Company and a Subsidiary) will not be deemed a Termination of Employment.

3.    Administration of the Plan.

3.1    Administrator.  The Plan will be administered by the Board or a Committee (the “Administrator”).  To the extent necessary or desirable to satisfy applicable laws, the Committee acting as the Administrator will consist of not less than 2 members of the Board.  The members 

of any Committee will be appointed from time to time by, and serve at the pleasure of, the Board.  The Board may retain the authority to administer the Plan concurrently with a Committee and may revoke the delegation of some or all authority previously delegated.  Different Administrators may administer the Plan with respect to different groups of Employees.  Unless and until the Board otherwise determines, the Board’s Compensation Committee will administer the Plan.

3.2    Administrator Authority.  It will be the duty of the Administrator to administer the Plan in accordance with the Plan’s provisions.  The Administrator will have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees will be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and sub‐plans as are necessary or appropriate to permit participation in the Plan by Employees who are non‐U.S. nationals or employed outside of the U.S. or to qualify awards for special tax treatment under the laws of jurisdictions other than the U.S., (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules.  Any determinations and decisions made or to be made by the Administrator pursuant to the provisions of the Plan, unless specified otherwise by the Administrator, will be in the Administrator’s sole discretion.

3.3    Decisions Binding.  All determinations and decisions made by the Administrator and/or any delegate of the Administrator pursuant to the provisions of the Plan will be final, conclusive, and binding on all persons, and will be given the maximum deference permitted by law.

3.4    Delegation by Administrator.  The Administrator, on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company.  Such delegation may be revoked at any time.

3.5    Indemnification.  Each person who is or will have been a member of the Administrator will be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she will give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.

4.    Selection of Participants and Determination of Awards.

4.1    Selection of Participants.  The Administrator will select the Employees who will be Participants for any Performance Period.  Participation in the Plan will be on a Performance Period by Performance Period basis.  Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Performance Periods.  No Employee will have the right to be selected to receive an award under this Plan or, if so selected, to be selected to receive a future award.

4.2    Determination of Target Awards.  The Administrator may establish a Target Award for each Participant (which may be expressed as a percentage of a Participant’s average annual base salary for the Performance Period or a fixed dollar amount or such other amount or based on such other formula or factors as the Administrator determines).

4.3    Bonus Pool.  Each Performance Period, the Administrator may establish a Bonus Pool, which pool may be established before, during or after the applicable Performance Period.  Actual Awards will be paid from the Bonus Pool (if a Bonus Pool has been established).

4.4    Discretion to Modify Awards.  Notwithstanding any contrary provision of the Plan, the Administrator, at any time prior to payment of an Actual Award, may: (a) increase, reduce or eliminate a Participant’s Actual Award, and/or (b) increase, reduce or eliminate the amount allocated to the Bonus Pool.  The Actual Award may be below, at or above the Target Award, as determined by the Administrator.  The Administrator may determine the amount of any increase, reduction, or elimination based on such factors as it deems relevant and will not be required to establish any allocation or weighting with respect to the factors it considers.

4.5    Discretion to Determine Criteria.  Notwithstanding any contrary provision of the Plan, the Administrator will determine the performance goals, if any, applicable to any Target Award (or portion thereof) which may include, without limitation, goals related to: sales bookings; business divestitures and acquisitions; capital raising; cash flow; cash position; contract awards or backlog; corporate transactions; customer renewals; customer retention rates from an acquired company, subsidiary, business unit or division; earnings (which may include any calculation of earnings, including but not limited to earnings before interest and taxes, earnings before taxes, earnings before interest, taxes, depreciation and amortization and net taxes); earnings per share; expenses; financial milestones; gross margin; growth in stockholder value relative to the moving average of the S&P 500 Index or another index; internal rate of return; leadership development or succession planning; market share; net income; net profit; net sales; new product or business development; new product innovation; number of customers; operating cash flow; operating expenses; operating income; operating margin; overhead or other expense reduction; patents; procurement; product release timelines; productivity; profit; regulatory milestones or regulatory-related goals; retained earnings; return on assets; return on capital; return on equity; return on investment; return on sales; revenue; revenue growth; sales results; sales growth; savings; stock price; time to market; total stockholder return; working capital; unadjusted or adjusted actual contract value; unadjusted or adjusted total contract value; and individual objectives such as peer reviews or other subjective or objective criteria.  As determined by the Administrator, the performance goals may be based on U.S. generally accepted accounting principles (“GAAP”) or non‐GAAP results and any actual results may be adjusted by the Administrator for one-time items or unbudgeted or unexpected items and/or 

payments of Actual Awards under the Plan when determining whether the performance goals have been met.  The performance goals may be based on any factors the Administrator determines relevant, including without limitation on an individual, divisional, portfolio, project, business unit, segment, or Company-wide basis.  Any criteria used may be measured on such basis as the Administrator determines, including without limitation: (a) in absolute terms, (b) in combination with another performance goal or goals (for example, but not by way of limitation, as a ratio or matrix), (c) in relative terms (including, but not limited to, results for other periods, passage of time and/or against another company or companies or an index or indices), (d) on a per-share basis, (e) against the performance of the Company as a whole or a segment of the Company and/or (f) on a pre-tax or after-tax basis.  The performance goals may differ from Participant to Participant and from award to award.  Failure to meet the applicable performance goals will result in a failure to earn the Target Award, except as provided in Section 4.4.  The Administrator also may determine that a Target Award (or portion thereof) will not have a performance goal associated with it but instead will be granted (if at all) as determined by the Administrator.

5.    Payment of Awards.

5.1    Right to Receive Payment.  Each Actual Award will be paid solely from the general assets of the Company Group.  Nothing in this Plan will be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which the Participant may be entitled.
                        
5.2    Timing of Payment.  Payment of each Actual Award will be made as soon as practicable after the end of the Performance Period to which the Actual Award relates and after the Actual Award is approved by the Administrator, but in no event after the later of (a) the 15th day of the 3rd month of the Fiscal Year immediately following the Fiscal Year in which the Participant’s Actual Award first becomes no longer subject to a substantial risk of forfeiture, and (b) March 15 of the calendar year immediately following the calendar year in which the Participant’s Actual Award first becomes no longer subject to a substantial risk of forfeiture.  Unless otherwise determined by the Administrator, to earn an Actual Award a Participant must be employed by the Company Group on the date the Actual Award is paid, and in all cases subject to the Administrator’s discretion pursuant to Section 4.4.

5.3    Form of Payment.  Each Actual Award generally will be paid in cash (or its equivalent) in a single lump sum.  The Administrator reserves the right to settle an Actual Award with a grant of an equity award with such terms and conditions, including any vesting requirements, as determined by the Administrator.

5.4    Payment in the Event of Death or Disability.  If a Termination of Employment occurs due to a Participant’s death or Disability prior to payment of an Actual Award that the Administrator has determined will be paid for a prior Performance Period, then the Actual Award will be paid to the Participant or the Participant’s estate, as the case may be, subject to the Administrator’s discretion pursuant to Section 4.4.

6.    General Provisions.

6.1    Tax Matters.

6.1.1    Section 409A.  It is the intent that this Plan be exempt from or comply with the requirements of Section 409A so that none of the payments to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms will be interpreted to be so exempt or so comply.  Each payment under this Plan is intended to constitute a separate payment for purposes of Treasury Regulations Section 1.409A‐2(b)(2).  In no event will the Company Group have any liability, obligation, or responsibility to reimburse, indemnify or hold harmless any Participant or other Employee for any taxes, penalties or interest imposed, or other costs incurred, as a result of Section 409A.

6.1.2    Tax Withholdings.  The Company Group will have the right and authority to deduct from any Actual Award all applicable Tax Withholdings.  Prior to the payment of an Actual Award or such earlier time as any Tax Withholdings are due, the Company Group is permitted to deduct or withhold, or require a Participant to remit to the Company Group, an amount sufficient to satisfy any Tax Withholdings with respect to such Actual Award.

6.2    No Effect on Employment or Service.  Neither the Plan nor any award under the Plan will confer upon a Participant any right regarding continuing the Participant’s relationship as an Employee or other service provider to the Company Group, nor will they interfere with or limit in any way the right of the Company Group or the Participant to terminate such relationship at any time, with or without cause, to the extent permitted by applicable laws.

6.3    Forfeiture Events.

6.3.1    Clawback Policy; Applicable Laws.  All awards under the Plan will be subject to reduction, cancellation, forfeiture, or recoupment in accordance with any clawback policy that the Company Group is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable laws.  In addition, the Administrator may impose such other clawback, recovery or recoupment provisions with respect to an award under the Plan as the Administrator determines necessary or appropriate, including without limitation a reacquisition right in respect of previously acquired cash, stock, or other property provided with respect to an award.  Unless this Section 6.3.1 is specifically mentioned and waived in a written agreement between a Participant and a member of the Company Group or other document, no recovery of compensation under a clawback policy will give the Participant the right to resign for “good reason” or “constructive termination” (or similar term) under any agreement with a member of the Company Group.

6.3.2    Additional Forfeiture Terms.  The Administrator may specify when providing for an award under the Plan that the Participant’s rights, payments, and benefits with respect to the award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of the award.  Such events may include, without limitation, 

termination of the Participant’s status as an Employee for “cause” or any act by a Participant, whether before or after the Participant’s status as an Employee terminates, that would constitute “cause.”

6.3.3    Accounting Restatements.  If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any Participant who knowingly or through gross negligence engaged in the misconduct, or who knowingly or through gross negligence failed to prevent the misconduct, and any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, will reimburse the Company Group the amount of any payment with respect to an award earned or accrued during the 12-month period following the first public issuance or filing with the U.S. Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement.

6.4    Successors.  All obligations of the Company under the Plan, with respect to awards under the Plan, will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company.

6.5    Nontransferability of Awards.  No award under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and except as provided in Section 5.3.  All rights with respect to an award granted to a Participant will be available during his or her lifetime only to the Participant.

7.    Amendment, Termination, and Duration.

7.1    Amendment, Suspension, or Termination.  The Administrator may amend or terminate the Plan, or any part thereof, at any time and for any reason.  The amendment, suspension or termination of the Plan will not, without the consent of the Participant, alter or impair any rights or obligations under any Actual Award earned by such Participant.  No award may be granted during any period of suspension or after termination of the Plan.

7.2    Duration of Plan.  The Plan will commence on the date first adopted by the Board or the Compensation Committee of the Board, and subject to Section 7.1 (regarding the Administrator’s right to amend or terminate the Plan), will remain in effect thereafter until terminated.

8.    Legal Construction.

8.1    Gender and Number.  Unless otherwise indicated by the context, any feminine term used herein also will include the masculine and any masculine term used herein also will include the feminine; the plural will include the singular and the singular will include the plural.

8.2    Severability.  If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason in any jurisdiction or as to any Participant, such invalidity, illegality, or unenforceability will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the invalid, illegal, or unenforceable provision had not been included.

8.3    Governing Law.  The Plan and all awards will be construed in accordance with and governed by the laws of the State of Texas, but without regard to its conflict of law provisions.

8.4    Bonus Plan.  The Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulations section 2510.3‐2(c) and will be construed and administered in accordance with such intention.

8.5    Headings.  Headings are provided herein for convenience only and will not serve as a basis for interpretation or construction of the Plan.

8.6    Compliance with Applicable Laws.  Awards under the Plan (including without limitation the granting of such awards) will be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

*         *         *Exhibit 4.1

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN
THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY.
THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES HEREINAFTER DESCRIBED AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF
THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO ANOTHER NOMINEE OF THE DEPOSITORY.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY 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 SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREON, CEDE & CO., HAS AN INTEREST
HEREIN.

 

CATERPILLAR INC.

 

1.900% SENIOR NOTES DUE 2031

 

	
        REGISTERED

        NO. 001
	 	
         

        $

	 	 	 
	 	 	
        CUSIP 149123 CK5

        ISIN US149123CK50

 

CATERPILLAR INC.,
a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company,”
which term includes any successor corporations under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., as nominee for The Depository Trust Company, or registered assigns, the principal sum of
($         ) on March 12, 2031, subject to advancement as provided in Annex A hereto, and to pay interest thereon from March 12,
2021, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
March 12 and September 12 of each year, commencing September 12, 2021, at the rate of 1.900% per annum, until the principal
hereof is paid or made available for payment and (to the extent that the payment of such interest shall be legally
enforceable) at the rate per annum borne by this Security on any overdue principal and on any overdue installment of
interest. If an Interest Payment Date or maturity date is not a Business Day, interest or principal will be paid on the next
Business Day. However, interest on the payments will not accrue for the period from the original payment date to the date the
payment is made. Interest will be calculated based on a 360-day year consisting of twelve 30-day months. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the 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
February 25 or August 28, as the case may be, immediately preceding such Interest Payment Date (whether or not a Business
Day). 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 due at Maturity in United States dollars will be made in immediately available funds to the depository
or its nominee, provided that this Security is presented to the Trustee in time for the Trustee to make such payment in
accordance with its normal procedures. Payment of interest (other than interest payable at Maturity) on this Security in United
States dollars will be made by transfer of immediately available funds to the depository or its nominee.

 

This Security shall
not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually signed
by or on behalf of the Trustee under the Indenture.

 

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 May 1, 1987 (as supplemented, the “Indenture”), between the Company
and U.S. Bank National Association (as successor to Citibank, N.A., as successor to First National Bank of Chicago), as trustee
(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 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 initially in aggregate
principal amount to $500,000,000.

 

The Company may from
time to time, without notice to or the consent of the Holders of the Securities, create and issue further securities having the
same terms as the Securities in all respects (except for the issue date, issue price, payment of interest accruing prior to the
issue date of the Securities and, in some cases, the initial interest payment date of the Securities), so that such additional
securities may be consolidated and form a single series with the Securities and have the same terms as to status, redemption or
otherwise as the Securities. If the additional securities are not fungible with the previously outstanding Securities for United
States federal income tax purposes, such additional securities will have a separate CUSIP number.

 

The Securities shall
have the redemption features summarized in Annex A to this Global Security.

 

The provisions for
defeasance and covenant defeasance set forth in Sections 1302 and 1303 of the Indenture, respectively, will apply to the Securities
of this series.

 

    2 

     

    

 

If any 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 not less than 66 2/3% 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.

 

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 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 and herein set forth, the transfer of this Security is registrable 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 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, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

 

This Security is a
Global Security and shall be exchangeable for Securities registered in the names of Persons other than the depository with respect
to this Global Security or its nominee only if (a) such depository notifies the Company that it is unwilling or unable to continue
as depository for this Global Security or at any time ceases to be a clearing agency registered as such under the Securities Exchange
Act of 1934, as amended, (b) the Company executes and delivers to the Trustee a Company Order that this Global Security shall be
exchangeable or (c) there shall have occurred and be continuing an Event of Default with respect to the Securities. If this Global
Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for Securities issuable in a minimum denomination
of $2,000 and integral multiples of $1,000 in excess thereof, registered in such names as such depository shall direct.

 

The Securities of
this series are issuable only in registered form without coupons and when not represented by one or more Global Securities, (a)
will be issuable in a minimum denomination of $2,000 and integral multiples of $1,000 in excess thereof and (b) as provided in
the Indenture and subject to certain limitations therein set forth, will be exchangeable for a like aggregate principal amount
of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same.

 

    3 

     

    

 

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.

 

This Security shall
be governed by the laws of the State of New York.

 

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

 

*      *      *

 

    4 

     

    

 

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

 

Dated: March 12, 2021

 

[SEAL]

 

	 	CATERPILLAR INC.
	 	 
	 	By:  	 
	 	 	Richard D. Moore
	 	 	Treasurer

 

	Attest:	 
	 	 
	By:  	 	 
	 	Barbara Thomas	 
	 	Assistant Secretary	 

 

     

     

    

 

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 NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By	 
	 	 	Name:
	 	 	Title: 

 

     

     

    

 

ANNEX A TO GLOBAL SECURITY

 

Optional Redemption

 

At any time prior to December 12, 2030
(three months prior to the maturity date), this Security may be redeemed in whole at any time or in part from time to time, at
the Company’s option, at a redemption price equal to the greater of:

 

		·	100% of the principal amount of the Securities to be redeemed, or

 

		·	the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed,
from the date of redemption to December 12, 2030, discounted to the date of redemption on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the applicable Treasury Rate plus 10 basis points,

 

in each case, plus accrued and unpaid interest
on the principal amount being redeemed to, but not including, the redemption date.

 

At any time on or after December 12, 2030
(three months prior to the maturity date), this Security may be redeemed in whole at any time or in part from time to time, at
the Company’s option, at a redemption price equal to 100% of the principal amount of the Securities to be redeemed, plus
accrued and unpaid interest on the principal amount being redeemed to, but not including, the redemption date.

 

“Business Day”
means any calendar day that is not a Saturday, Sunday or legal holiday in New York, New York and on which commercial banks are
open for business in New York, New York.

 

“Comparable Treasury
Issue” means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable
to the remaining term (“Remaining Life”) of the Securities to be redeemed 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 Life of such Securities.

 

“Comparable Treasury
Price” means (1) the average of five Reference Treasury Dealer Quotations for such redemption date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if, after seeking at least five Reference Treasury Dealer Quotations and
excluding the highest and lowest Reference Treasury Dealer Quotations, the Independent Investment Banker obtains fewer than five
such Reference Dealer Quotations, the average of all such quotations.

 

“Independent
Investment Banker” means any of BofA Securities, Inc., J.P. Morgan Securities LLC, or MUFG Securities Americas Inc. and any
of their respective successors, as appointed by the Company, or, if any of the foregoing is unwilling or unable to select the Comparable
Treasury Issue, a nationally recognized investment banking institution which is a Primary Treasury Dealer appointed by the Company.

 

    A-1 

     

    

 

“Primary Treasury
Dealer” means a primary U.S. government securities dealer in New York, New York.

 

“Reference Treasury
Dealer” means (1) any of BofA Securities, Inc., J.P. Morgan Securities LLC or a Primary Treasury Dealer as appointed by MUFG
Securities Americas Inc. and any of their respective successors, as appointed by the Company, provided, however, that if any of
the foregoing shall cease to be a primary U.S. government securities dealer (a “Primary Treasury Dealer”), the Company
will substitute for such dealer another Primary Treasury Dealer, and (2) any other nationally recognized Primary Treasury Dealer
selected by the Independent Investment Banker and acceptable to the Company.

 

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

 

“Treasury Rate”
means, with respect to any redemption date, (1) 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 United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,”
for the maturity corresponding to the Comparable Treasury Issue (or, if no maturity is within three months before or after the
Remaining Life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined
and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest
month), or (2) 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 annum equal to the semi-annual equivalent yield-to-maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price of such redemption date. The Treasury Rate will be calculated on the third Business Day preceding the redemption
date.

 

Holders of the Securities
to be redeemed will receive notice thereof by first-class mail at least 30 and not more than 60 days before the date fixed for
redemption. If fewer than all of the Securities are to be redeemed, the Trustee will select the particular Securities or portions
thereof for redemption from the outstanding Securities not previously called, pro rata or by lot, or in such other manner as the
Company shall direct.

 

    A-2

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