Document:

Exhibit
4.1

	
  CUSIP NO. 421915 EH 8

  	
  PRINCIPAL AMOUNT

  
	
   

  	
   

  
	
   

  	
  $400,000,000

  

 

HEALTH
CARE PROPERTY INVESTORS, INC.

5.65%
SENIOR NOTES DUE 2013

THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING SET FORTH IN 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, UNLESS AND
UNTIL IT IS EXCHANGED FOR SECURITIES IN DEFINITIVE FORM AS AFORESAID, 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 OR BY THE DEPOSITARY OR ITS NOMINEE TO A SUCCESSOR DEPOSITARY
OR ITS NOMINEE.

UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), 55 WATER STREET, NEW YORK, NEW YORK TO THE ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS 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, SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

HEALTH
CARE PROPERTY INVESTORS, INC., a Maryland corporation (the “Company”, which
term shall include any successor under the Indenture hereinafter referred to),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of Four Hundred Million Dollars ($400,000,000) on
December 15, 2013, and to pay interest thereon from December 4, 2006 or from
the most recent interest payment date on which interest has been paid or duly
provided for, semi-annually in arrears on June 15 and December 15 (each, an “Interest
Payment Date”) of each year (or if such date is not a Business Day, on the next
Business Day thereafter; no interest will accrue on such payment for the period
from and after such Interest Payment Date to the date of such payment on the
next succeeding Business Day), commencing June 15, 2007, at the rate of 5.65%
per annum, until the entire principal amount hereof is paid or duly provided
for. 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 Holder
in whose name this Note (or one or more predecessor Notes) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the date that is 15 calendar days prior to such Interest Payment Date, whether
or not a Business Day.  Any such interest
not so punctually paid or duly provided for shall forthwith cease to be payable
to the Holder on such Regular Record Date, and may either be paid to the Holder
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 Holders
of Notes of this series not less than 10 days prior to such Special Record
Date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any

 

securities
exchange on which the Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.  Interest will be computed on the basis of a
360-day year of twelve 30-day months. Payments of principal, premium, if any,
and interest in respect of this Note will be made by the Company in immediately
available funds.

Payment
of the principal of and interest on this Note shall be payable at the Corporate
Trust Office of The Bank of New York, located at 101 Barclay Street, Floor 8 W,
New York, New York 10286 or at such other office or agency of the Company
maintained for that purpose in The City of New York, 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 Note 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.

Reference
is hereby made to the further provisions of this Note 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 by
manual signature of one of its authorized signatories, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 2

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal this 4th day of December, 2006.

	
   

  	
  Health Care Property Investors, Inc.,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mark Wallace

  
	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial

  
	
   

  	
   

  	
  Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Edward J. Henning

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice President, General Counsel

  	
   

  	
   

  
	
   

  	
  and Corporate Secretary

  	
   

  	
   

  
						

 

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION:

This
is one of the Notes of the series designated herein referred to in the
within-mentioned Indenture.

	
  The Bank of New York, as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

Dated: December 4, 2006

This
Note is one of a duly authorized issue of securities of the Company (herein
called the “Notes”), issued as a series of securities under an indenture dated
as of September 1, 1993 (the “Indenture”), between the Company and The Bank of
New York, as trustee (the “Trustee,” which term includes any successor trustee
under the Indenture with respect to the Notes), 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
the duly authorized series designated as the “5.65% Senior Notes Due 2013,”
originally limited (subject to exceptions provided in the Indenture) in
aggregate principal amount to $400,000,000; however, from time to time, without
giving notice or seeking consent of the Holders of the Notes, the Company may
issue additional Notes of this series having the same ranking, interest rate
and maturity and other terms as this Note. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

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

The
Notes are not subject to any sinking fund.

The
Notes may be redeemed, in whole or in part, at any time at the option of the
Company at a Redemption Price equal to the greater of: (1) 100% of the
principal amount of the Notes to be redeemed, or (2) the sum of the present
values of the remaining scheduled payments of principal and interest thereon
(exclusive of interest accrued to the Redemption Date) discounted to the
Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable treasury rate (as defined below) plus
20 basis points, plus accrued and unpaid interest on the amount being redeemed
to the Redemption Date.

“Treasury
rate” means, with respect to any Redemption Date:

·              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 (if no maturity is within three
months before or after the remaining life (as defined below), 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

·              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 for such Redemption Date.

The
treasury rate will be calculated by the Independent Investment Banker on the
third Business Day preceding the date fixed for redemption.

“Comparable
treasury issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term (“remaining
life”) of the Notes 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
term of such Notes.

“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 the Independent Investment
Banker obtains fewer than four such Reference Treasury Dealer Quotations, the
average of all such quotations.

“Independent
Investment Banker” means one of the Reference Treasury Dealers appointed by the
Company to act as the “Independent Investment Banker.”

“Reference
Treasury Dealers” means each of UBS Securities LLC, Barclays Capital Inc. and
J.P. Morgan Securities Inc. and their respective successors and two other
nationally recognized investment banking firms that are Primary Treasury Dealers
specified from time to time by the Company; provided, however, that if any of
the foregoing shall cease to be a primary US Government securities dealer in
the United States (a “Primary Treasury Dealer”), the Company shall substitute
therefor another nationally recognized investment banking firm that is a
Primary Treasury Dealer.

“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 City
time, on the third Business Day preceding such redemption date.

The
Company may redeem the Notes in increments of $1,000.  If the Company redeems less than all of the
Notes, the Trustee will select the Notes to be redeemed using a method it
considers fair and appropriate.  The
Company will cause notices of redemption to be mailed by first-class mail at
least 30 but not more than 60 days before the Redemption Date to each Holder of
Notes to be redeemed at its registered address.

If
this Note is to be redeemed in part only, the notice of redemption that relates
to this Note will state the portion of the principal amount thereof to be
redeemed.  The Company will issue a Note
in principal amount equal to the unredeemed portion of this Note in the name of
the Holder hereof upon cancellation of the original Note.  Any Notes called for redemption will

 

become
due on the Redemption Date.  On or after
the Redemption Date, interest will cease to accrue on the Notes or portions of
them called for redemption.

If
a Change of Control Repurchase Event (defined below) occurs, unless the Company
has previously exercised its right to otherwise redeem the Notes as described
above, the Company will make an offer to each Holder of Notes to repurchase all
or any part (in multiples of $1,000 principal amount) of that Holder’s Notes at
a repurchase price in cash equal to 101% of the aggregate principal amount of
Notes repurchased plus any accrued and unpaid interest on the Notes repurchased
to the date of repurchase. Within 30 days following any Change of Control
Repurchase Event or, at the Company’s option, prior to any Change of Control
(defined below), but after the public announcement of the Change of Control,
the Company will mail a notice to each Holder describing the transaction or
transactions that constitute or may constitute the Change of Control Repurchase
Event and offering to repurchase Notes on the payment date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed. The notice shall, if mailed prior to the
date of consummation of the Change of Control, state that the offer to
repurchase is conditioned on the Change of Control Repurchase Event occurring
on or prior to the payment date specified in the notice.

The
Company will comply with the requirements of Rule 14e-1 under the Securities
Exchange Act of 1934, as amended, (the “Exchange Act”), and any other
securities laws and regulations to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a
Change of Control Repurchase Event. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control Repurchase
Event provisions of the Notes, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under the Change of Control Repurchase Event provisions of the
Notes by virtue of such conflict.

On
the Change of Control Repurchase Event payment date, the Company will, to the
extent lawful:

(1)           accept for payment all Notes or
portions of Notes properly tendered pursuant to its offer;

(2)           deposit with the paying agent an
amount equal to the aggregate purchase price in respect of all Notes or
portions of Notes properly tendered; and

(3)           deliver or cause to be delivered to
the Trustee the Notes properly accepted, together with an officers’ certificate
stating the aggregate principal amount of Notes being purchased by the Company.

The
Paying Agent will promptly pay, from funds deposited by the Company for such
purpose, to each Holder of Notes properly tendered the purchase price for the
Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount
to any unpurchased portion of any Notes surrendered.

The
Company will not be required to make an offer to repurchase the Notes upon a
Change of Control Repurchase Event if a third party makes an offer in the
manner, at the times and otherwise in compliance with the requirements for an
offer made by the Company and such third party purchases all Notes properly
tendered and not withdrawn under its offer.

 

For
purposes of the Notes:

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

“Change
of Control” means the occurrence of any of the following:

(1)           the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the Company’s properties or assets and those of its
subsidiaries, taken as a whole, to any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), other than the Company or one of its
wholly owned subsidiaries; or

(2)           the adoption of a plan relating to
the liquidation or dissolution of the Company; or

(3)           the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of
which is that any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act), other than the Company or one of its wholly owned subsidiaries
(provided that this exception does not include any transaction in which public
stockholders cease to own Voting Stock entitling public stockholders to elect
the same percentage of the members of the Company’s board of directors as
public stockholders are entitled to elect on November 29, 2006), becomes the
beneficial owner, directly or indirectly, of more than 50% of the Company’s
Voting Stock, measured by voting power rather than number of shares; or

(4)           the first day on which a majority of
the members of the Company’s board of directors are not Continuing Directors.

Notwithstanding
the foregoing, a transaction effected to create a holding company for the
Company will not be deemed to involve a Change of Control if (1) pursuant to
such transaction the Company becomes a wholly owned subsidiary of such holding
company and (2) the holders of the Voting Stock of such holding company
immediately following such transaction are the same as the holders of the
Company’s Voting Stock immediately prior to such transaction.

“Continuing
Directors” means, as of any date of determination, any member of the Company’s
board of directors who:

(1)           was a member of such board of
directors on December 4, 2006; or

(2)           was nominated for election or elected
to the Company’s board of directors with the approval of a majority of the
Continuing Directors who were members of the Company’s board of directors at
the time of such nomination or election.

“Voting
Stock” as applied to stock of any person, means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such person having ordinary voting power for the election of the directors
(or the equivalent) of such person, other than shares, interests,
participations or other equivalents having such power only by reason of the
occurrence of a contingency.

“Below
Investment Grade Rating Event” means the Notes are rated below Investment Grade
by both Rating Agencies on any date from the date of the public notice of an
arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of a Change of Control
(which period shall be extended so long as the rating of the Notes is under
publicly announced consideration for possible downgrade by either

 

of
the Rating Agencies); provided that a Below Investment Grade Rating Event
otherwise arising by virtue of a particular reduction in rating shall not be
deemed to have occurred in respect of a particular Change of Control (and thus
shall not be deemed a Below Investment Grade Rating Event for purposes of the
definition of Change of Control Repurchase Event) if the Rating Agencies making
the reduction in rating to which this definition would otherwise apply do not
announce or publicly confirm or inform the Trustee in writing at its request
that the reduction was the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the applicable Change
of Control (whether or not the applicable Change of Control shall have occurred
at the time of the Below Investment Grade Rating Event).

“Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s) and BBB- or better by S&P (or its
equivalent under any successor rating categories of S&P) (or, in each case,
if such Rating Agency ceases to rate the Notes for reasons outside of the
Company’s control, the equivalent investment grade credit rating from any
Rating Agency selected by the Company as a replacement Rating Agency).

“Rating
Agency” means:

(1)           each of Moody’s and S&P; and

(2)           if either of Moody’s or S&P
ceases to rate the Notes or fails to make a rating of the Notes publicly
available for reasons outside of the Company’s control, a “nationally
recognized statistical rating organization” within the meaning of Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company as a
replacement agency for Moody’s or S&P, or both, as the case may be.

“Moody’s”
means Moody’s Investors Service, Inc.

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

As
provided in and subject to the provisions of the Indenture, the Holder of this
Note 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 Notes, the
Holders of not less than 25% in principal amount of the Notes 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 the Notes 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 Note for the enforcement of any payment of principal hereof or
any interest on or after the respective due dates expressed herein.

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 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 Outstanding Notes. The Indenture
also contains provisions permitting the Holders of not less than a majority in
principal amount of the Notes at the time Outstanding, on behalf of the

 

Holders
of all Notes, to waive compliance by the Company with certain provisions of the
Indenture. Furthermore, provisions in the Indenture permit the Holders of not
less than a majority of the aggregate principal amount of the Outstanding Notes
to waive, in certain circumstances, on behalf of all Holders of the Notes,
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 interest on, this Note
at the times, places and rate, and in the coin or currency, herein and in the
Indenture prescribed.

As
provided in the Indenture and subject to certain limitations set forth therein,
the transfer of this Note may be registered on the Security Register upon
surrender of this Note for registration of transfer at the office or agency of
the Company maintained for the purpose in any place where the principal of 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 by his attorney duly authorized
in writing, and thereupon one or more new Notes of this series, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

This
Note may be transferred, in whole but not in part, only to a nominee of DTC, or
by a nominee of DTC to DTC, or to a successor to DTC for such Global Security
selected or approved by the Company or to a nominee of such successor to DTC.
If at any time DTC notifies the Company that it is unwilling or unable to
continue as depositary for the Notes or if at any time DTC ceases to be a
clearing agency registered under the Exchange Act, if so required by applicable
law or regulation, the Company shall appoint a successor depositary with
respect to the Notes. If (a) a successor depositary for the Notes is not appointed
by the Company within 90 days after the Company receives such notice or becomes
aware of such unwillingness, inability or ineligibility, (b) an Event of
Default has occurred and is continuing and the beneficial owners representing a
majority in principal amount of the Notes advise DTC to cease acting as
depositary for such Notes, or (c) the Company, in its sole discretion,
determines at any time that all Notes (but not less than all) of this series
shall no longer be represented by such Global Note or Notes, then the Company
shall execute, and the Trustee shall authenticate and deliver, definitive Notes
of like series, rank, tenor and terms in definitive form in an aggregate
principal amount equal to the principal amount of such Note or Notes.

The
Notes are issuable only in registered form without coupons and may be sold in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, the Notes of
this series are exchangeable for a like aggregate principal amount of Notes of
this series in authorized denominations as requested by the Holders
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 the Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Company, the Trustee nor
any such agent shall be affected by notice to the contrary.

The
Indenture contains provisions whereby (i) the Indenture shall cease to be
of further effect with respect to the Notes (subject to the survival of certain
provisions thereof), (ii) the Company may be discharged from its
obligations with respect to the Notes (subject to certain exceptions), or
(iii) the Company may be released from its obligations under specified
covenants and agreements in the Indenture, in each case if the Company
satisfies certain conditions provided in the Indenture.

No
recourse shall be had for the payment of the principal of or interest on this
Note, or for any claim based hereon, or otherwise in respect hereof, or based
on or in respect of the Indenture or any indenture supplemental thereto,
against any past, present or future stockholder, employee, officer or director,
as such, of the Company or of any successor, either directly or through the
Company or any successor, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

THE
INDENTURE AND THE NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF
THE STATE OF CALIFORNIA, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF SAID STATE.

Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Company has caused CUSIP numbers to be printed
on the Notes as a convenience to the Holders of the Notes. No representation is
made as to the correctness or accuracy of such CUSIP numbers as printed on the
Notes, and reliance may be placed only on the other identification numbers
printed hereon.

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

 

ASSIGNMENT
FORM

FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY

SELLS, ASSIGNS AND TRANSFERS TO

PLEASE
INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

	
   

  
	
   

  
	
   

  
	
  (Please Print or Typewrite
  Name and Address

  
	
  including Zip
  Code of Assignee)

  
	
   

  
	
  the within Note of

  	
   

  	
  and

  	
   

  	
  hereby does irrevocably
  constitute and appoint

  
	
   

  

 

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

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

NOTICE:
The signature to this assignment must correspond with the name as it appears on
the first page of the within Note in every particular, without alteration or
enlargement or any change whatever.Exhibit 4.01

[FACE OF NOTE]

Unless this certificate is presented by an authorized
representative of The Depository Trust Company (55 Water Street, New York, New
York) 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 is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.

 

	
  REGISTERED 

  	
  CUSIP: 22541FEG7

  
	
   

  	
   

  
	
  NO. 1

  	
  PRINCIPAL AMOUNT: $850,000

  

 

	
  CREDIT SUISSE (USA), INC.

  ProNotes Linked to the Value of a Global Basket of Indices

  
	
  due November 30,
  2010

  

 

CREDIT SUISSE (USA), INC., a Delaware corporation (the
“Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede
& Co., or registered assigns, at the office or agency of the Company in New
York, New York, the Redemption Amount (as defined on the reverse hereof) on the
maturity date (as defined on the reverse hereof), in the coin or currency of
the United States.

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

This Note shall not be valid or become obligatory for
any purpose until the certificate of authentication hereon shall have been
manually signed by the Trustee under the Indenture referred to on the reverse
hereof.

This Note will not pay
interest.

 F-1
 

 

 

 

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

	
  

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  [SEAL]

  	
  By:

  	
  /s/ Peter Feeney

  
	
   

  	
   

  	
  Name:  Peter Feeney

  
	
   

  	
   

  	
  Title:   Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Grace Koo

  
	
   

  	
   

  	
  Name: Grace Koo

  
	
   

  	
   

  	
  Title:Authorized Signatory

  

 

 

CERTIFICATE OF AUTHENTICATION

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

Dated: November 29, 2006

	
  

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as successor Trustee to

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James Heaney

  
	
   

  	
   

  	
  Name:

  	
  James Heaney

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  

 

 

 F-2

 

[REVERSE OF NOTE]

CREDIT SUISSE
(USA), INC.

ProNotes Linked to the Value of a Global Basket of Indices

due November 30, 2010

This Note is one
of a duly authorized issue of debentures, notes, bonds or other evidences of
indebtedness of the Company (the “Securities”) of the series hereinafter
specified, all issued or to be issued under and pursuant to a senior indenture,
dated as of June 1, 2001 (the “Indenture”), between the Company and the Bank of
New York (the “Trustee”), as successor Trustee to JPMorgan Chase Bank, to which
Indenture and all indentures supplemental thereto reference is hereby made for
a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company, and the Holders of the Securities.  The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase or analogous funds (if any) and may
otherwise vary as provided in the Indenture. 
This Note is one of a series designated as the ProNotes Linked to the Value
of a Global Basket of Indices due November 30, 2010 (the “Note”).

This Note will not
pay interest.

This Note is
payable in the manner, with the effect and subject to the conditions provided
in the Indenture.

If a payment date
is not a business day as defined in the Indenture at a place of payment,
payment may be made at that place on the next succeeding day that is a business
day, and no interest shall accrue for the intervening period.

The Indenture
provides that, without prior notice to any Holders, the Company and the Trustee
may amend the Indenture and the Securities of any series with the written
consent of the Holders of a majority in principal amount of the outstanding
Securities of all series affected by such amendment (all such series voting as
one class), and the Holders of a majority in principal amount of the
outstanding Securities of all series affected thereby (all such series voting
as one class) may waive future compliance by the Company with any provision of
the Indenture or the Securities of such series by written notice to the
Trustee; provided that, without the consent of each Holder of the Securities of
each series affected thereby, an amendment or waiver, including a waiver of
past defaults, may not: (i) extend the stated maturity of the Principal of, or
any sinking fund obligation or any installment of interest on, such Holder’s
Security, or reduce the principal amount thereof or the rate of interest
thereon (including any amount in respect of original issue discount), or any
premium payable with respect thereto, or adversely affect the rights of such
Holder under any mandatory redemption or repurchase provision or any right of
redemption or repurchase at the option of such Holder, or reduce the amount of
the Principal of an Original Issue Discount Security that would be due and
payable upon an acceleration of the maturity thereof or the amount thereof
provable in bankruptcy, or change any place of payment where, or the currency
in which, any Security of such series or any

 R-1
 

 

premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement
of any such payment on or after the due date therefor; (ii) reduce the
percentage in principal amount of outstanding Securities of the relevant series
the consent of whose Holders is required for any such supplemental indenture,
for any waiver of compliance with certain provisions of the Indenture or
certain Defaults and their consequences provided for in the Indenture; (iii)
waive a Default in the payment of Principal of or interest on any Security of
such Holder; or (iv) modify any of the provisions of the Indenture governing
supplemental indentures with the consent of Securityholders except to increase
any such percentage or to provide that certain other provisions of the
Indenture cannot be modified or waived without the consent of the Holder of
each outstanding Security affected thereby.

The Indenture
provides that, subject to certain conditions, the Holders of at least a
majority in principal amount (or, if any Securities are Original Issue Discount
Securities, such portion of the Principal as is then accelerable) of the
outstanding Securities of all series affected (voting as a single class), by
notice to the Trustee, may waive an existing Default or Event of Default with
respect to the Securities of such series and its consequences, except a Default
in the payment of Principal of or interest on any Security or in respect of a
covenant or provision of the Indenture which cannot be modified or amended
without the consent of the Holder of each outstanding Security affected.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default with respect to the Securities of such
series arising therefrom shall be deemed to have been cured, for every purpose
of the Indenture; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereto.

The Indenture
provides that a series of Securities may include one or more tranches (each a “tranche”)
of Securities, including Securities issued in a Periodic Offering.  The Securities of different tranches may have
one or more different terms, including authentication dates and public offering
prices, but all the Securities within each such tranche shall have identical
terms, including authentication date and public offering price.  Notwithstanding any other provision of the
Indenture, subject to certain exceptions, with respect to sections of the
Indenture concerning the execution, authentication and terms of the Securities,
redemption of the Securities, Events of Default of the Securities, defeasance
of the Securities and amendment of the Indenture, if any series of Securities
includes more than one tranche, all provisions of such sections applicable to
any series of Securities shall be deemed equally applicable to each tranche of
any series of Securities in the same manner as though originally designated a
series unless otherwise provided with respect to such series or tranche
pursuant to a board resolution or a supplemental indenture establishing such
series or tranche.

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 Redemption Amount of this Note in the manner, at the
place, at the time and in the coin or currency herein prescribed.

The Securities are
issuable initially only in registered form without coupons in denominations of
$10,000 and any integral multiples of $1,000 in excess of that amount at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, and in the manner and subject to the limitations provided in the
Indenture.

 R-2
 

 

The Securities
will not be redeemable at the option of the Company prior to maturity.

The Company will
not be required to pay any Additional Amounts on the Securities.

Maturity Date

The maturity date
of the Securities is November 30, 2010 (the “maturity date”); however, if a
market disruption event exists on the final valuation date, as determined by
the Calculation Agent, the maturity date will be the later of November 30,
2010, and the fifth business day following the date on which the final basket
level is calculated.

Redemption Amount

The Company will
redeem the Securities at maturity for a Redemption Amount in cash that will be
equal to the principal amount of the Securities multiplied by the sum of 1 plus
the basket return, calculated as set forth below (the “Redemption Amount”).  If the final basket level is greater than the
initial basket level, the basket return will equal the percentage increase of
the basket.  If the final basket level is
equal to or less than the initial basket level, the basket return will equal
zero, and the Redemption Amount will be equal to the principal amount of the
Securities at maturity.

How the basket
return will be calculated depends on whether the final basket level is greater
than or less than or equal to the initial basket level:

·              If the final basket level is
greater than the initial basket level, then the basket return will equal:

	
  105%*

  	
   

  	
  final basket level—initial basket level

  	
   

  
	
   

  	
   

  	
  initial basket level

  	
   

  

 

Thus, if the final basket level is greater than the initial basket
level, the basket return will be a positive number, in which case the
Redemption Amount will be greater than the principal amount of the Securities
at maturity.

·                                          If
the final basket level is less than or equal to the initial basket level, then
the basket return will equal zero, and the Redemption Amount will equal the
principal amount of the Securities.

For purposes of
calculating the basket return, the basket level on any valuation date will be
equal to the sum of:

(i)                                     the
product of (x) 0.25, the weighting of the S&P 500 Index in the basket, and
(y) the closing level of the S&P 500 Index on that valuation date divided
by 1406.09, the closing level of the S&P 500 Index on November 22, 2006,
the index business day immediately following the date the Securities are priced
for initial sale to the public (the “trade date”);

 R-3
 

 

 

(ii)                                  the
product of (x) 0.30, the weighting of the EURO STOXX 50 Index in the basket,
and (y) the closing level of the EURO STOXX 50 Index on that valuation date
divided by 4094.97, the closing level of the EURO STOXX 50 Index on November
22, 2006, the index business day immediately following the trade date;

(iii)                               the product of (x)
0.1875, the weighting of the FTSE 100 Index in the basket, and (y) the closing
level of the FTSE 100 Index on that valuation date divided by 6160.30, the
closing level of the FTSE 100 Index on November 22, 2006, the index business
day immediately following the trade date;

(iv)                              the
product of (x) 0.1875, the weighting of the Nikkei 225 Index in the basket, and
(y) the closing level of the Nikkei 225 Index on that valuation date divided by
15914.23, the closing level of the Nikkei 225 Index on November 22, 2006, the
index business day immediately following the trade date; and

(v)                                 the
product of (x) 0.075, the weighting of the S&P/ASX 200 Index in the basket,
and (y) the closing level of the S&P/ASX 200 Index on that valuation date
divided by 5445.70, the closing level of the S&P/ASX 200 Index on November
22, 2006, the index business day immediately following the trade date.

The “initial
basket level” equals 1.0.

The “final basket
level” will equal the arithmetic average of the basket levels on the valuation
dates.

The “basket” is
comprised of the following “reference indices”: 
the S&P 500 Index; the EURO STOXX 50 Index; the FTSE 100 Index; the
Nikkei 225 Index; and the S&P/ASX 200 Index.

The “closing level”
for any reference index will be, on any relevant index business day, the level
of that reference index determined by the Calculation Agent as of the “valuation
time” for that reference index, which is the time as of which the sponsor of
such reference index calculates the closing level of that reference index on
such index business day, as such level is calculated and published by such
sponsor.

The “valuation
dates” will be the 22nd day of each month from and including September 22, 2010
through and including November 22, 2010, which will be the “final valuation
date”, subject to a postponement if a market disruption event occurs on a
valuation date.

A “business day”
means a day, other than a Saturday, Sunday or a day on which banking
institutions in New York, New York are generally authorized or obligated by
law, regulation or executive order to close and that is also an index business
day.

 R-4
 

 

An “index business
day” with respect to any reference index is any day that is (or, but for the
occurrence of a market disruption event, would have been) a day on which
trading is generally conducted on the applicable exchanges and related
exchanges (each as defined below), other than a day on which one or more of the
applicable exchanges or related exchanges is scheduled to close prior to its
regular weekday closing time. “Exchange,” with respect to any reference index
means the principal exchange on which any stock underlying that reference index
is traded. “Related exchange” means any exchange on which futures or options
contracts relating to that reference index are traded.

Market Disruption Events

A “market
disruption event” is, in respect of any reference index, the occurrence or
existence on any index business day for that reference index during the
one-half hour period that ends at the relevant valuation time, of any
suspension of or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the relevant exchange or otherwise) on:

(a) the exchanges
in securities that comprise 20% or more of the level of the relevant reference
index based on a comparison of (1) the portion of the level of the reference
index attributable to each security in which trading is, in the determination
of the Calculation Agent, materially suspended or materially limited relative
to (2) the overall level of the reference index, in the case of (1) or (2)
immediately before that suspension or limitation;

(b) a related
exchange in options contracts on the relevant reference index; or

(c) a related
exchange in futures contracts on the relevant reference index;

in the case of
(a), (b) or (c) if, in the determination of the Calculation Agent, such
suspension or limitation is material.

If the Calculation
Agent determines that a market disruption event exists in respect of a reference
index on a valuation date, then that valuation date for such reference index
will be postponed to the first succeeding index business day for that reference
index on which the Calculation Agent determines that no market disruption event
exists in respect of such reference index, unless in respect of the valuation
date the Calculation Agent determines that a market disruption event exists in
respect of such reference index on each of the five index business days
immediately following the scheduled valuation date.  In that case, (a) the fifth succeeding index
business day following the scheduled valuation date will be deemed to be the
valuation date for such reference index, notwithstanding the market disruption
event in respect of such reference index, and (b) the Calculation Agent will
determine the index level for that reference index on that deemed valuation
date in accordance with the formula for and method of calculating that
reference index last in effect prior to the commencement of the market disruption
event in respect of such reference index using exchange traded prices on the
relevant exchanges (as determined by the Calculation Agent in its sole and
absolute discretion) or, if trading in any security or securities comprising
such reference index has been materially suspended or materially limited, its
good faith estimate of the prices that would have prevailed on the exchanges
(as determined by the Calculation Agent in its sole and absolute discretion)
but for the suspension or limitation, as of the valuation time on that deemed
valuation date, of each such

 R-5
 

 

security comprising such
reference index (subject to the provisions described below regarding
adjustments to the calculation of the reference indices” below).  The valuation date or dates, as the case may
be, for each reference index not affected by a market disruption event shall be
the scheduled valuation date or dates, as the case may be.

In the event that
a market disruption event exists in respect of a reference index on the
valuation date, the maturity date of the Securities will be postponed to the
fifth business day following the day as of which the closing level on the
valuation date for each reference index has been calculated.  No interest or other payment will be payable
because of any such postponement of the maturity date.

Adjustments to the calculation of
the reference indices

If any of the
reference indices is (a) not calculated and announced by its sponsor but is
calculated and announced by a successor acceptable to the Calculation Agent or
(b) replaced by a successor index using, in the determination of the
Calculation Agent, the same or a substantially similar formula for and method
of calculation as used in such reference index, then such reference index will
be deemed to be the index so calculated and announced by that successor sponsor
or that successor index, as the case may be.

Upon any selection
by the Calculation Agent of a successor index, the Calculation Agent will cause
notice to be furnished to the Company and the Trustee, which will provide
notice of the selection of the successor index to the registered holders of the
Securities in the manner set forth in the prospectus.

If (x) on or prior
to a valuation date any index sponsor makes, in the determination of the Calculation
Agent, a material change in the formula for or the method of calculating a
reference index or in any other way materially modifies a reference index
(other than a modification prescribed in that formula or method to maintain
such reference index in the event of changes in constituent stocks and
capitalization and other routine events) or (y) on any valuation date an index
sponsor (or a successor sponsor) fails to calculate and announce a reference
index, then the Calculation Agent will calculate the Redemption Amount using,
in lieu of a published level for such reference index, the level for such
reference index as at the valuation time on the valuation date as determined by
the Calculation Agent in accordance with the formula for and method of calculating
such reference index last in effect prior to that change or failure, but using
only those securities that comprised such reference index immediately prior to
that change or failure.

Events of Default and
Acceleration

In case an Event
of Default (as defined in the Indenture) with respect to the Securities shall
have occurred and be continuing, the amount declared due and payable upon any
acceleration of the Securities (in accordance with the acceleration provisions
set forth in the prospectus) will be determined by the Calculation Agent and
will equal, for each security, the arithmetic average, as determined by the
Calculation Agent, of the fair market value of the Securities as determined by
at least three but not more than five broker-dealers (which may include Credit
Suisse Securities (USA) LLC or any of the Company’s other subsidiaries or
affiliates) as will make such fair market value determinations available to the
Calculation Agent.

 R-6
 

 

The Company, the
Trustee and any agent of the Company or the Trustee may deem and treat the
registered Holder hereof as the absolute owner of this Note (whether or not
this Note shall be overdue and notwithstanding any notation of ownership or
other writing hereon) for the purpose of receiving payment of, or on account
of, the Redemption Amount hereof, and for all other purposes, and neither the
Company nor the Trustee nor any agent of the Company or the Trustee shall be
affected by any notice to the contrary.

No recourse under
or upon any obligation, covenant or agreement contained in the Indenture or any
indenture supplemental thereto or in any Note, or because of any indebtedness
evidenced thereby, shall be had against any incorporator as such, or against
any past, present or future stockholder, officer, director or employee, as
such, of the Company or of any successor, either directly or through the
Company or any successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released
by the acceptance hereof and as part of the consideration for the issue hereof.

The Calculation
Agent for the Securities (the “Calculation Agent”) is Credit Suisse
International.  The calculations and
determinations of the Calculation Agent will be final and binding upon all
parties (except in the case of manifest error). 
The Calculation Agent will have no responsibility for good faith errors
or omissions in its calculations and determinations, whether caused by
negligence or otherwise.

Terms used herein
that are defined in the Indenture and not otherwise defined herein shall have
the respective meanings assigned thereto in the Indenture.

The laws of the State of
New York (without regard to conflicts of laws principles thereof) shall govern
this Note.

 R-7
 

 

 

	
   

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

  
	
   

  
	
  [PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING
  NUMBER OF ASSIGNEE]

  
	
   

  
	
   

  
	
   

  
	
  [PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING
  ZIP CODE, OF ASSIGNEE]

  
	
   

  
	
   

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

  
	
   

  
	
   

  	
  Attorney to 

  
	
  transfer such Note on  the books of the Issuer, with full power of
  substitution in the premises.

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
  Signature:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NOTICE:The signature to this assignment must
  correspond with the name as written upon the face of the within Note in every
  particular without alteration or enlargement or any change whatsoever.

  
						

 

 

 R-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]