Document:

Exhibit
10.1

FIRST AMENDMENT TO CREDIT
AGREEMENT

FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of
March 26, 2007, among KENEXA TECHNOLOGY, INC., a Pennsylvania corporation (the “Borrower”),
the several banks and other financial institutions parties to the Credit
Agreement (as hereinafter defined) (collectively, the “Lenders”), and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent for
the Lenders (in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

WHEREAS, the Borrower, the Lenders and the Administrative
Agent are parties to a Credit Agreement, dated as of November 13, 2006 (as
heretofore amended, supplemented or otherwise modified, the “Credit
Agreement”);

WHEREAS, prior to
the date hereof, the Borrower repaid the principal of the Term Loans in full;
and

WHEREAS, the Lenders and the
Borrower have agreed to (a) increase the amount of the Revolving Credit
Commitments from $25,000,000 to $50,000,000, (b) change the Revolving Credit
Termination Date to three (3) years from the date hereof, (c) change the
pricing for Revolving Credit Loans and for Commitment Fees, (d) modify the
definition of Permitted Acquisitions, (e) delete the requirement in Section
5.17 that the Borrower obtain a Hedge Agreement, (f) waive any violation of
Section 6.16 of the Credit Agreement arising from the acquisition by the Parent
of the stock of Psychometric Services Limited (“Psychometric Services”),
and (g) make certain other modifications to the Credit Agreement, in each case
on and subject to the terms hereof.

NOW, THEREFORE, in
consideration of the foregoing and for other consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

1.             Defined Terms.  Unless
otherwise defined herein, terms defined in the Credit Agreement are used herein
(including in the Recitals) as therein defined.

2.             Term
Loans.  Prior to the date
hereof, the Borrower paid to the Administrative Agent, for the benefit of the
Term Loan Lenders, the outstanding principal amount of the Term Loans.  On the date hereof, the Borrower shall pay to
the Administrative Agent, for the benefit of the Term Loan Lenders, all accrued
interest on the Term Loans.  After giving
effect to such payments, the Term Loan Facility shall be paid in full and the
only outstanding Facility under the Credit Agreement shall be the Revolving
Credit Facility.  In furtherance thereof,
effective as of the Effective Date (as defined in Paragraph 11 below):  (a) (i) clause (f) of the definition of the
term “Indebtedness” contained in Section 1.1 of the Credit Agreement, (ii)
clause (a) of the definition of the term “Subordinated Debt” contained in
Section 1.1 of the Credit Agreement, and (iii) subsection 5.1(i) of the Credit
Agreement, are each hereby amended by deleting the phrase “the later of the
Revolving Credit Termination Date and the Term Loan Maturity Date” and
inserting each time in lieu thereof the phrase “the Revolving 

Credit Termination Date”
and (b) clause (A) of the second sentence of Section 9.6(e) of the Credit
Agreement is hereby amended by deleting the phrase “and Term Loan Note”.  From and after the Effective Date, CIFC
Funding 2006-III, Ltd. shall cease to be a party to the Credit Agreement but
shall continue to be entitled to the benefit of subsections 2.13, 2.14, 2.15,
5.14(c) and 9.5 (to the extent that such Lender’s entitlement to such benefits
arose out of such Lender’s position as a Term Loan Lender).

3.             Increase in Revolving
Credit Commitments; New Revolving Credit Notes.

(a)           Increase in
Revolving Credit Commitments.  The
Revolving Credit Commitments are hereby increased from Twenty-Five Million
($25,000,000) to Fifty Million ($50,000,000). 
In furtherance thereof, effective as of the Effective Date (a) the
definition of the term “Revolving Credit Commitments” contained in Section 1.1
of the Credit Agreement is hereby amended by adding at the end thereto a new
sentence which shall read as follows:  “From
and after the effective date of the First Amendment to this Agreement, the
aggregate amount of the Revolving Credit Commitments shall be $50,000,000” and (b)
Schedule I to the Credit Agreement is amended and restated to read as set forth
on Exhibit A hereto.

(b)           New Revolving
Credit Notes.  On the Effective Date
(as defined herein), the Borrower shall deliver to the Administrative Agent a
new Revolving Credit Note in favor of each Revolving Credit Lender whose
Revolving Credit Commitment has changed in a principal amount equal to such
Lender’s new Revolving Credit Commitment (each a “New Revolving Credit Note”
and, collectively, the “New Revolving Credit Notes”).  Such New Revolving Credit Note shall be in
substitution for each such Revolving Credit Lender’s existing Revolving Credit
Note.  Promptly thereafter, the
Administrative Agent shall deliver to each Revolving Credit Lender whose
Revolving Credit Commitment has changed such Lender’s New Revolving Credit
Note, and such Lender shall return to the Administrative Agent its existing
Revolving Credit Note.  The
Administrative Agent shall then deliver such replaced Revolving Credit Notes
delivered to the Administrative Agent to the Borrower for cancellation.

4.             Change in Maturity Date of
Revolving Credit Facility. 
Effective as of the Effective Date, the definition of the term “Revolving
Credit Termination Date” is hereby amended by deleting the date “November 12,
2011” and inserting in lieu thereof the date “March 26, 2010”.  As a result, the maturity date of the
Revolving Credit Facility shall be three (3) years from the Effective Date.

5.             Change in Pricing.  (a)  Applicable
Commitment Fee Percentage.  Effective
as of the Effective Date, the chart contained in the definition of the term “Applicable
Commitment Fee Percentage” in Section 1.1 of the Credit Agreement is hereby
deleted and the following chart is hereby inserted in lieu thereof:

	
  Level

  	
   

  	
  Total Net Leverage Ratio

  	
   

  	
  Applicable Commitment

  Fee Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than or equal to 1.00 to 1.0

  	
   

  	
  0.125%

  	
   

  

 

 2
 

 

	
  Level

  	
   

  	
  Total Net Leverage Ratio

  	
   

  	
  Applicable Commitment

  Fee Percentage

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II

  	
   

  	
  Greater than 1.00 to 1.0, but less

  than or equal to 1.50 to 1.0

  	
   

  	
  0.150%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III

  	
   

  	
  Greater than 1.50 to 1.0, but less

  than or equal to 2.0 to 1.0

  	
   

  	
  0.200%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV

  	
   

  	
  Greater than 2.0 to 1.0, but less

  than or equal to 2.5 to 1.0

  	
   

  	
  0.250%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V

  	
   

  	
  Greater than 2.5 to 1.0, but less

  than or equal to 3.0 to 1.0

  	
   

  	
  0.300%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI

  	
   

  	
  Greater than 3.0 to 1.0

  	
   

  	
  0.350%

  

 

In addition, effective as of the Effective Date,
clause (b) to the proviso to the definition of “Applicable Commitment Fee
Percentage” is hereby amended by deleting the words “Level V” and inserting in
lieu thereof the words “Level VI”.

(b)           Applicable Margin.  Effective as of the Effective Date, the chart
contained in paragraph (a) of the definition of the term “Applicable Margin”
contained in Section 1.1 of the Credit Agreement (relating to Revolving
Credit Loans) is hereby deleted and the following chart is hereby inserted in
lieu thereof:

	
  Level

  	
   

  	
  Total Net Leverage Ratio

  	
   

  	
  Applicable Margin —

  Base Rate Loans

  	
   

  	
  Applicable Margin — 

  Eurodollar Loans

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than or equal to 1.00 to 1.0

  	
   

  	
  0.00%

  	
   

  	
  1.25%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II

  	
   

  	
  Greater than 1.00 to 1.0, but

  less than or equal to 1.50 to 1.0

  	
   

  	
  0.00%

  	
   

  	
  1.50%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III

  	
   

  	
  Greater than 1.50 to 1.0, but

  less than or equal to 2.0 to 1.0

  	
   

  	
  0.25%

  	
   

  	
  1.75%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV

  	
   

  	
  Greater than 2.0 to 1.0, but

  less than or equal to 2.5 to 1.0

  	
   

  	
  0.50%

  	
   

  	
  2.00%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V

  	
   

  	
  Greater than 2.5 to 1.0, but

  less than or equal to 3.0 to 1.0

  	
   

  	
  0.75%

  	
   

  	
  2.25%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI

  	
   

  	
  Greater than 3.0 to 1.0

  	
   

  	
  1.00%

  	
   

  	
  2.50%

  

 

 3
 

In addition, effective as of the Effective Date, clause (b) to the
proviso in paragraph (a) of the definition of “Applicable Margin” is hereby
amended by deleting the phrase “Level V” and inserting in lieu thereof the
phrase “Level VI”.

6.             Modifications of Certain Definitions.  (a) 
From and after the Effective Date, the second proviso in the definition
of “Permitted Acquisitions” is hereby deleted in its entirety and the following
is inserted in lieu thereof:

; provided  further, that approval of the Required Lenders
shall be required for any such acquisition if (a) at the time of and after
giving effect to such acquisition, the Parent and its Subsidiaries have on
deposit, in the aggregate, less than $15,000,000 in cash and Cash Equivalents
in Unrestricted Investment Accounts or (b) the Total Leverage Ratio calculated
as of the end of the immediately preceding fiscal quarter for which financial
statements have been delivered to the Lenders on a pro  forma
basis (i.e., after giving effect to such Permitted Acquisition and the
borrowing of any Indebtedness in connection therewith as if consummated on the
last day of such fiscal quarter) shall not exceed 2.50 to 1.0.

(b)           Clause (a) of the
definition of “Permitted Investments” is amended by deleting the phrase “clause
(o)” therein and inserting the phrase “clause (p)” in lieu thereof.

(c)           The definition of
the term “Consideration” contained in Section 1.1 of the Credit Agreement
is hereby deleted in its entirety and the following is inserted in lieu
thereof:

“Consideration”:  with
respect to any acquisition, the aggregate consideration paid or proposed to be
paid by the Borrower and its Subsidiaries with respect to such acquisition
(including earnouts, payments under non-compete arrangements and any assumption
of Indebtedness).

7.             Hedge Agreements.  From and after the Effective Date, the
Borrower shall no longer be required to obtain a Hedge Agreement, although the
Borrower may elect in its discretion to do so to the extent permitted by
Section 6.2 of the Credit Agreement.  In
furtherance thereof (a) Section 5.17 of the Credit Agreement is hereby deleted
in its entirety and the following is inserted in lieu thereof:  “5.17 [INTENTIONALLY LEFT BLANK]” and (b)
Section 6.2(a) is hereby amended by deleting the phrase “and Indebtedness
relating to Hedge Agreements required pursuant to Section 5.17” and
substituting in lieu thereof the phrase “and Hedge Agreements with a Lender or
Affiliate thereof.”

8.             Parent Activities.  From and after the Effective Date, Section
6.16 of the Credit Agreement is amended and restated to read in full as
follows:

6.16                           Limitation
on Activities of Parent.  Permit the
Parent to (a) own any property other than Capital Stock of the Borrower and
property ancillary 

 4
 

thereto, (b) engage in any business other than
business incidental to its ownership of Capital Stock of the Borrower or (c)
have any liabilities other than (i) liabilities incurred in the ordinary course
of business and (ii) liabilities under (A) the £114,000 promissory note payable
in 2007, (B) the £728,519 promissory note payable in 2008 and (C) the
£687,282  promissory note payable in 2009
in each case (x) issued by the Parent in connection with the Parent’s
acquisition of 100% of the Capital Stock of Psychometric Services Limited, a
private limited company formed under the laws of England and Wales, and (y)
under the documents in effect on the “Effective Date” of the First Amendment to
this Agreement copies of which were provided to the Administrative Agent prior
to such date.

9.             Waivers.  On or about November 20, 2006, the Parent
acquired 100% of the Capital Stock of Psychometric Services Limited, a private
limited company formed under the laws of England and Wales, for a purchase
price of approximately £2,658,552 (the “Acquisition”), consisting of
£896,990 paid in cash, £331,763 of Capital Stock of the Parent, £114,000 in the
form of a promissory note payable in 2007, £728,519 in the form of a promissory
note payable in 2008 and £687,282 in the form of a promissory note payable in
2009 (collectively, the “Parent Notes”). 
The Acquisition may have breached the provisions of Section 6.16 of the
Credit Agreement, which limits the activities of the Parent.  In addition, the Borrower has breached Section
6.6 of the Credit Agreement by failing to provide the Administrative Agent with
the financial statements of Psychometric Services required by such section
within 30 days following the consummation of the Acquisition (the “FS
Delivery Breach”).  The Lenders
hereby waive (i) the FS Delivery Breach (and any related Defaults or Events of
Default) caused as a result thereof and (ii) any breach of Section 6.16 of the
Credit Agreement (and any related Defaults or Events of Default) caused as a
result of the stock of Psychometric Services being acquired by the Parent and
not the Borrower or a Subsidiary thereof, the issuance by the Parent of the
notes referred to in subsection 6.16(c) of the Credit Agreement (as such
subsection is amended pursuant to Paragraph 8 above) and actions taken by the
Parent on or before the date hereof in connection with the acquisiton of
Psychometric Services, provided  that, on or before the Effective
Date (a) the financial statements of Psychometric Services required by Section
6.6 of the Credit Agreement shall have been delivered to the Administrative
Agent, (b) the stock of Psychometric Services shall have been transferred to
the Borrower, (c) copies of the Parent Notes shall have been delivered to the
Administrative Agent, (d) the Parent shall be in compliance with Section 6.16,
and (e) the Borrower shall have complied with Section 5.15 of the Credit
Agreement with respect to the acquisition of Psychometric Services, including
pledging 65% of the stock of Psychometric Services.

10.           Representations and
Warranties.  The Borrower
hereby represents and warrants to the Lenders and the Administrative Agent
that:

(a)           After
giving effect to the provisions of this Amendment, there exists no Default or
Event of Default under the Credit Agreement.

(b)           The
representations and warranties made in the Loan Documents are true and correct
in all material respects on and as of the date hereof as if made on and as of
the date hereof, except that any such representation and warranty that is given
as of a particular 

 5
 

date or period and relates solely to such date or period is true and
correct in all material respects as of such date or period.

(c)           Each of the Borrower
and the other Loan Parties has all requisite power and authority, corporate or
otherwise, to enter into and perform its obligations under this Amendment, the
New Revolving Credit Notes, the Consent and Agreement of Guarantors attached
hereto (the “Consent and Agreement of Guarantors”) and any other Loan
Documents to which it is a party and to fulfill its obligations set forth
herein and therein.  The execution,
delivery and performance of this Amendment, the borrowings under the Credit
Agreement as amended hereby and the execution and delivery of the New Revolving
Credit Notes and the other Loan Documents to which the Borrower or any other
Loan Party is a party have been duly authorized by all requisite corporate or
other action and will not violate or constitute a default under any Requirement
of Law, or of any indenture, note, loan or credit agreement, license or any
other agreement, lease or instrument to which the Parent or any of its
Subsidiaries is a party or by which the Parent or any of its Subsidiaries or
any of its or their Properties are bound. 
This Amendment, the New Revolving Credit Notes, the Consent and
Agreement of Guarantors and the other Loan Documents have each been duly
executed and delivered by each Loan Party party thereto.  This Amendment, the New Revolving Credit
Notes, the Consent and Agreement of Guarantors and the other Loan Documents
issued or to be issued hereunder constitute, the authorized, valid and legally
binding obligations of the Borrower or other Loan Party(ies) party thereto
enforceable in accordance with their respective terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws or
equitable principles from time to time in effect relating to or affecting the
rights of creditors generally.

(d)           No
consent or approval of any trustee or holder of any indebtedness, nor any
authorization, consent, approval, license, exemption of or registration,
declaration or filing with any court or governmental department, commission,
board, bureau, agency or instrumentality, domestic or foreign, is or will be
necessary to the valid execution and delivery of this Amendment, the New
Revolving Credit Notes, the Consent and Agreement of Guarantors or the other
Loan Documents or the consummation by the Borrower or the other Loan Parties of
the transactions contemplated by this Amendment, except such as have been
obtained.

(e)           The making and
performance of this Amendment, the Revolving Credit Notes, the Consent and
Agreement of Guarantors and the other documents or instruments executed in
connection herewith will not (i) violate any provision of any law or
regulation, federal, state or local, or the certificate or articles of
incorporation, bylaws, certificate or articles of organization or operating
agreement (as applicable) of the Borrower or any Guarantor, (ii) result in any
breach or violation of, or constitute a default or require the obtaining of any
consent under, any agreement or instrument by which the Borrower or any
Guarantor or its or their property may be bound, or (iii) affect the validity,
perfection or priority of the interests of the Administrative Agent, for the
benefit of the Lenders, in any collateral securing the Obligations.

(f)            Attached as
Schedule I hereto is a true and correct organizational chart of the Parent and
all of its Subsidiaries, including the Borrower, as of the Effective Date.  There are no Domestic Subsidiaries of the
Borrower that are not Guarantors.

 6
 

11.           Conditions
Precedent.  This Amendment
shall become effective on the date that the Administrative Agent shall have
received the following, all of which shall be in form and substance
satisfactory to the Administrative Agent and its counsel (such date, the “Effective
Date”):

(a)           This Amendment duly
executed and delivered by the Borrower, the Administrative Agent and the Lenders;

(b)           The New Revolving
Credit Notes duly executed and delivered by the Borrower;

(c)           The Consent and
Agreement of Guarantors, a form of which is attached as Exhibit B hereto, duly
executed and delivered by the Guarantors;

(d)           The First Amendment
to the Pledge Agreement among the Borrower, Kenexa BrassRing, Inc. and the
Administrative Agent, duly executed and delivered by the Borrower and Kenexa
BrassRing, Inc.;

(e)           the stock
certificates evidencing (i) 65% of the Capital Stock of Kenexa Testing Limited
(f/k/a Psychometric Services Limited) and (ii) 100% of the Capital Stock of
Kenexa Puerto Rico, Inc., in each case, together with stock powers with respect
thereto duly executed in blank by the Borrower;

(f)            Copies of
resolutions of the Boards of Directors of the Borrower and each Guarantor approving
and adopting this Amendment, the New Revolving Credit Notes, the Consent and
Agreement of Guarantors, the other documents and instruments executed in
connection herewith, the transactions contemplated herein and authorizing
execution and delivery hereof and thereof, certified by a secretary or
assistant secretary of the Borrower or such Guarantor to be true and correct
and in full force and effect as of the Effective Date;

(g)           The Administrative
Agent shall have received the executed legal opinion of Pepper Hamilton, LLP,
counsel to the Borrower and the other Loan Parties, and the opinion of local
Colorado counsel.  Such opinion shall be
addressed to the Lenders and the Administrative Agent and cover such matters
incident to the transactions contemplated by this Amendment as the
Administrative Agent may reasonably require; and

(h)           The Borrower shall
have paid to the Administrative Agent for the benefit of the Term Loan Lenders
all accrued interest on the Term Loans.

12.           Affirmations.  The Borrower hereby: (a) affirms all the
provisions of the Credit Agreement and the other Loan Documents, as
supplemented and amended hereby, (b) agrees that the terms and conditions of
the Credit Agreement and the other Loan Documents shall continue in full force
and effect as supplemented and amended hereby, (c) acknowledges, confirms and
reaffirms that the collateral pledged under the Loan Document continues to
secure the Obligations, including those arising under the Credit Agreement, as
amended hereby, and (d) acknowledges and agrees that it has no defense,
set-off, counterclaim or challenge against the payment of any sums currently
owing under the Loan Documents or the enforcement of any of the terms or
conditions thereof.

 7
 

13.           Limited
Effect.  Except as
expressly modified hereby, the Credit Agreement and the other Loan Documents
shall continue to be, and shall remain, unaltered and in full force and effect
in accordance with their terms.  None of
the waivers contained in Paragraph 9 hereof shall be deemed to operate as a
future waiver or modification of the provisions of the Credit Agreement or any
of the other Loan Documents or as a waiver or modification of any other term,
condition or covenant of the Credit Agreement or any of the other Loan
Documents, or a waiver of any Event of Default or Default other than as
specifically described in Paragraph 9 hereof.

14.           Release.  Recognizing and in consideration of the
Lenders’ agreements set forth herein, the Borrower and each Guarantor hereby
waives and releases each Lender, each Agent and each of their respective
Affiliates and the officers, directors, employees, agents, and advisors of such
Persons and such Affiliates from any liability, suit, damage, claim, loss or
expense of any kind or nature whatsoever and howsoever arising that the
Borrower or such Guarantor ever had or now has against any of them through and
including the date hereof arising out of or relating to any acts or omissions
with respect to this Amendment, the Credit Agreement, the other Loan Documents
or any other matters described or referred to herein or therein or related
hereto or thereto.

15.           Integration.  This Amendment constitutes the sole agreement
of the parties with respect to the terms hereof and shall supersede all oral
negotiations and the terms of prior writings with respect thereto.

16.           Severability.  Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

17.          Miscellaneous.

(a)           Expenses.  The Borrower agrees to pay all of the
Administrative Agent’s reasonable out-of-pocket fees and expenses incurred in
connection with the preparation, negotiation and execution of this Amendment
and the other documents executed in connection herewith, including without
limitation, the reasonable fees and expenses of counsel to the Administrative
Agent.

(b)           Governing
Law.  This Amendment shall be
governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania.

(c)           Successor
and Assigns.  This Amendment shall
inure to the benefit of, and be binding upon, the parties hereto and their
respective successors and assigns.

(d)           Counterparts.  This Amendment may be executed in one or more
counterparts, each of which shall be deemed to be an original, and all of which
shall constitute one and the same instrument.

 8
 

(e)           Headings.  The headings of any paragraph of this
Amendment are for convenience only and shall not be used to interpret any
provision hereof.

(f)            Modifications.  No modification hereof or any agreement referred
to herein shall be binding or enforceable unless in writing and signed on
behalf of the party against whom enforcement is sought.

[Signatures
to Follow]

 9
 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be duly executed and delivered by their
proper and duly authorized officers as of the day and year first above written.

 

	
  

  	
  KENEXA
  TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DONALD F.
  VOLK

  
	
   

  	
   

  	
  Name: Donald F. Volk

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  PNC
  BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Administrative Agent, Issuing Bank and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JEFFREY M.
  PRICKITT

  
	
   

  	
   

  	
  Name: Jeffrey M. Prickitt

  
	
   

  	
   

  	
  Title: Vice President

  

 

 10Exhibit 4.01

LEHMAN BROTHERS HOLDINGS INC.

100% Principal Protection Notes Linked to a
Global Index Basket Due March 31, 2011

	
  Number R-1

  	
   

  	
  $32,000,000

  	
   

  
	
  ISIN US52520W5647

  	
   

  	
  CUSIP 52520W564

  	
   

  

 

See Reverse for Certain Definitions

THIS SECURITY (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 THEREOF.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS SECURITY 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 SUCH DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. 
UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TO LEHMAN BROTHERS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

LEHMAN BROTHERS HOLDINGS INC., a corporation
duly organized and existing under the laws of the State of Delaware
(hereinafter called the “Company”), for value received, hereby promises
to pay to CEDE & CO. or registered assigns, at the office or agency of the
Company in the Borough of Manhattan, The City of New York, on the Maturity
Date, in such coin or currency of the United States of America at the time of
payment shall be legal tender for the payment of public and private debts, for
each $10 principal amount of the Securities represented hereby, an amount equal
to the Payment at Maturity. THE SECURITIES REPRESENTED HEREBY SHALL NOT BEAR
ANY INTEREST.

Any amount payable on the Maturity Date
hereon will be paid only upon presentation and surrender of this Security.

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS
OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF WHICH FURTHER 

 2

PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME
EFFECT AS IF SET FORTH AT THIS PLACE.

Each Basket Index is a
trademark of the sponsor of such Basket Index and has been licensed for use by
the Company.  The Securities, linked to
the performance of the Basket Indices, are not sponsored, endorsed, sold or
promoted by the sponsors of the Basket Indices and the sponsors of the Basket
Indices make no representation regarding the advisability of investing in the
Securities.

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

 3

 

IN WITNESS WHEREOF, Lehman Brothers Holdings
Inc. has caused this instrument to be signed by its Chairman of the Board, its
President, its Vice Chairman, its Chief Financial Officer, one of its Vice
Presidents or its Treasurer, by manual or facsimile signature under its
corporate seal, attested by its Secretary or one of its Assistant Secretaries
by manual or facsimile signature.

	
  Dated: March 30, 2007 

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  [SEAL]

  	
   

  	
  LEHMAN BROTHERS HOLDINGS INC.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
  /s/ James J. Killerlane III

  	
   

  
	
   

  	
   

  	
  Vice President

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Attest:

  	
  /s/ Aaron Guth

  	
   

  	 

	
   

  	
   

  	
  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.

	
  CITIBANK, N.A.

  	
   

  	
   

  
	
  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Wafaa Orfy

  	
   

  	
   

  
	
  Authorized Officer

  	
   

  	
   

  
				

 

 4

 

Reverse of Security

This Security is one of a duly authorized
series of Securities of the Company designated as 100% Principal Protection
Notes Linked to a Global Index Basket Due March 31, 2011 (herein called the “Securities”).  The Company may, without the consent of the
holders of the Securities, create and issue additional notes ranking equally
with the Securities and otherwise similar in all respects so that such further
notes shall be consolidated and form a single series with the Securities;
provided that no additional notes can be issued if an Event of Default has
occurred with respect to the Securities. 
This series of Securities is one of an indefinite number of series of
debt securities of the Company, issued and to be issued under an indenture,
dated as of September 1, 1987, as amended (herein called the “Indenture”),
duly executed and delivered by the Company and Citibank N.A., as trustee
(herein called the “Trustee”, which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities.

The Payment at Maturity, at the request of
the Trustee, shall be determined by the Calculation Agent pursuant to the
Calculation Agency Agreement.  The
Trustee shall fully rely on the determination by the Calculation Agent of the
Payment at Maturity and shall have no duty to make any such determination.  The Calculation Agent will provide written notice
to the Trustee at its New York office, on which notice the Trustee may
conclusively rely, of the Payment at Maturity on or prior to 11:00 a.m. on the
Business Day preceding the Maturity Date.

All calculations with respect to the Basket
Ending Level and the Basket Return (including each Index Return) will be
rounded to the nearest one hundred-thousandth, with five one-millionths rounded
upward (e.g., .876545 would be
rounded to .87655); all dollar amounts related to determination of the
Additional Amount payable at maturity, if any, per $10 principal amount note
will be rounded to the nearest ten-thousandth, with five one
hundred-thousandths rounded upward (e.g.,
..76545 would be rounded up to .7655); and all dollar amounts paid on the
aggregate principal amount of Notes per Holder will be rounded to the nearest
cent, with one-half cent rounded upward.

This Security is not subject to any sinking
fund.

If an Event of Default with respect to the
Securities shall occur and be continuing, the amounts payable on all of the
Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.  The amount
payable to the Holder hereof upon any acceleration permitted under the
Indenture will be equal to $10.00, plus the Additional Amount.  The Additional Amount will be calculated as
though the date of acceleration were the Maturity Date and the fifth Business
Day immediately preceding the date of acceleration were the Final Valuation
Date.  If the maturity of the Notes is accelerated
because of an Event of Default, the Company shall, or shall cause the
Calculation Agent to, provide written notice to the Trustee at its New York
office, on which notice the Trustee may conclusively rely, and to The
Depository Trust Company of the cash amount due with respect to the Notes as
promptly as possible and in no event later than two Business Days after the
date of acceleration.

 5

 

The Indenture contains provisions permitting the
Company and the Trustee, with the consent of the holders of not less than 662/3% in aggregate principal amount of each
series of Securities at the time Outstanding to be affected (each series voting
as a class), evidenced as in the Indenture provided, to execute supplemental
indentures adding any provisions to, or changing in any manner or eliminating
any of the provisions of the Indenture or of any supplemental indenture or modifying
in any manner the rights of the holders of the Securities of all such series; provided, however,
that no such supplemental indenture shall, among other things, (i) change the
fixed maturity of any Security, or reduce the principal amount thereof, or reduce
the rate or extend the time of payment of interest thereon, if any, or reduce
any premium payable on redemption, or make the principal thereof, or premium,
if any, or interest thereon, if any, payable in any coin or currency other than
that hereinabove provided, without the consent of the holder of each Security
so affected, or (ii) change the place of payment on any Security, or impair the
right to institute suit for payment on any Security, or reduce the aforesaid
percentage of Securities, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of each
Security so affected.  It is also
provided in the Indenture that, prior to any declaration accelerating the
maturity of any series of Securities, the holders of a majority in aggregate
principal amount of the Securities of such series Outstanding may on behalf of
the holders of all the Securities of such series waive any past default or
Event of Default under the Indenture with respect to such series and its
consequences, except a default in the payment of interest, if any, or the
principal of, or premium, if any, on any of the Securities of such series, or
in the payment of any sinking fund installment or analogous obligation with
respect to Securities of such series. 
Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future holders and owners
of this Security and any Securities which may be issued in exchange or
substitution hereof, irrespective of whether or not any notation thereof is
made upon this Security or such other Securities.

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 amount with respect to this Security.

The Securities are issuable in denominations
of $10 and any whole multiples of $10.

The Company, the Trustee, and any agent of
the Company or of the Trustee may deem and treat the registered holder (the “Holder”)
hereof as the absolute owner of this Security (whether or not this Security
shall be overdue and notwithstanding any notation of ownership or other writing
hereon), for the purpose of receiving payment hereof, or on account hereof, and
for all other purposes and neither the Company nor the Trustee nor any agent of
the Company or of the Trustee shall be affected by any notice to the
contrary.  All such payments made to or
upon the order of such registered holder shall, to the extent of the sum or
sums paid, effectually satisfy and discharge liability for moneys payable on
this Security.

No recourse for the payment of the principal
of, premium, if any, or interest on this Security, or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any indenture
supplemental thereto or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as 

 6

such, past, present or future, of the Company or of
any successor corporation, either directly or through the Company or any
successor corporation, 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.

As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is
registrable in the Security Register, upon surrender of this Security for
registration of transfer at the Corporate Trust Office or agency in a Place of
Payment for this Security, 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 such Holder’s attorney duly
authorized in writing, and thereupon one or more new Securities of this series
or of like tenor and of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

The Company agrees, and by acceptance of
beneficial ownership interest in the Notes of this series, each Holder of such
Notes will be deemed to have agreed, for United States federal income tax
purposes, (i) to treat the Notes of this series as indebtedness that is subject
to Treas. Reg. Sec. 1.1275-4 (the “Contingent Payment Regulations”) and (ii) to
be bound by the Company’s determination of the “comparable yield” and “projected
payment schedule,” within the meaning of the Contingent Payment Regulations,
with respect to the Notes of this series. The Company has determined that the
comparable yield is an annual rate of 5.0675% compounded semiannually.  Based on the comparable yield, the projected
payment schedule per $10 note is $0.00 semi-annually and $12.2162 due at maturity.

THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

Definitions

Set forth below are definitions of the terms
used in this Security.

“Additional Amount”, as calculated by
the Calculation Agent, per $10 principal amount note paid at maturity shall
equal $10 x the Basket Return x the Participation Rate;  provided
that the Additional Amount will not be less than zero.

“Basket” shall mean
the basket of three indices to which the Securities are linked. The Basket
consists of the S&P 500® Index
(SPX), the Dow Jones EURO STOXX 50® Index
(SX5E) and the Nikkei 225SM Index
(NKY).

“Basket Closing Level”
as calculated by the Calculation Agent, is calculated as follows:

Basket Starting Level x [1 + (the sum of (Index
Return * Index Weighting) for all Basket Indices)]

 7

 

“Basket Ending Level,”
as calculated by the Calculation Agent, is equal to the Basket Closing Level on
the Final Valuation Date.

“Basket Index” refers to each of the
S&P 500® Index (SPX), the Dow Jones EURO STOXX 50® Index (SX5E) and the Nikkei 225SM Index (NKY).

“Basket Return” as
calculated by the Calculation Agent, is calculated as follows:

Basket Ending Level - Basket Starting Level

Basket Starting Level

“Basket Starting Level” shall be set
equal to 100 on the Trade Date.

“Business Day”, notwithstanding any
provision in the Indenture, shall mean any day that is not a Saturday or Sunday
and that is not a day on which banking institutions in the City of New York are
authorized or obligated by law to close.

“Calculation Agency Agreement” shall
mean the Calculation Agency Agreement, dated as of December 21, 2006 between
the Company and the Calculation Agent, as amended from time to time, or any
successor calculation agency agreement.

“Calculation Agent” shall mean the
person that has entered into an agreement with the Company providing for, among
other things, the determination of the Payment at Maturity, which term shall,
unless the context otherwise requires, include its successors and assigns.  The initial Calculation Agent shall be Lehman
Brothers Inc.

“Closing Price” of a security, on any
particular day, means the last reported sales price for that security on the
Relevant Exchange at the scheduled weekday closing time of the regular trading
session of the Relevant Exchange.  If,
however, the security is not listed or traded on a bulletin board, then the
Closing Price of the security will be determined using the average execution
price per share that an affiliate of the Company pays or receives upon the
purchase or sale of the security used to hedge the Company’s obligations under
the Notes.

“Company” shall have the meaning set
forth on the face of this Security.

“Final Valuation Date” shall mean
March 24, 2011; provided, that if the Final Valuation Date is not a
Trading Day or if there is a Market Disruption Event on such day, with respect
to a Basket Index, the Calculation Agent will:

·                  with respect to
each Basket Index for which such day is a Trading
Day and for which a Market Disruption Event has not
occurred, determine the closing level of such Basket Index for use in
calculating the Basket Index Ending Level by reference to the closing level of such Basket
Index on that Trading Day; and

·                  with respect to
each Basket Index for which such day is not a
Trading Day or for which a Market Disruption Event has
occurred, determine the closing level of such Basket Index for use in
calculating the Basket Index Ending Level by reference to the closing level of

 8

such
Basket Index on the next Trading Day for such Basket Index on which there is
not a Market Disruption Event; provided, however,
if a Market Disruption Event with respect to such Basket Index occurs on each
of the eight Trading Days following the originally scheduled Final Valuation
Date, then the Calculation Agent shall determine the Closing Level of such
Basket Index for use in calculating the Basket Index Ending Level in accordance with
the formula for and method of calculating the closing index level of such
Basket Index last in effect prior to commencement of the Market Disruption
Event (or prior to the non-Trading Day), using the closing price (or, if
trading in the relevant securities has been materially suspended or materially
limited, its good faith estimate of the closing price that would have prevailed
but for such suspension or limitation or non-Trading Day) on such eighth
scheduled Trading Day of each security most recently included in the Basket
Index.

“Holder” shall have
the meaning set forth on the reverse of this Security.

“Indenture” shall
have the meaning set forth on the reverse of this Security.

“Index Closing Level”, as determined
by the Calculation Agent, shall mean, with respect to any Trading Day, the
closing level of any Basket Index or any Successor Index, as the case may be, at the regular official
weekday close of the principal trading session of the Relevant Exchange or
market for the Index or the Successor Index, as the case may be, on such day, or as
determined by the Calculation Agent pursuant to the Calculation Agency
Agreement as described below under “Discontinuation of a
Basket Index; Alteration of Method of Calculation.”

“Index
Return,” as calculated by the Calculation Agent, is calculated as follows
for each Basket Index:

Index Ending Level - Index Starting Level
 Index
Starting Level

“Index
Starting Level” is the closing level of the Basket Index on March 23,
2007.  The Index Starting Level for each
of the three indices is as follows:

	
  

  	
  S&P 500® Index Nikkei 

  	
   

  	
  1436.11

  	
   

  
	
   

  	
  Dow Jones EURO STOXX 50® Index 

  	
   

  	
  4191.58

  	
   

  
	
   

  	
  225SM Index

  	
   

  	
  17480.61

  	
   

  

 

“Index Ending Level”
shall equal the Index closing level of a Basket Index on the Final Valuation
Date.

 “Index Weightings” shall mean the
weighting for the Basket Indices (each an “Index Weighting”).  The Index Weightings of the three Basket
Indices are as follows:

	
  

  	
  S&P 500® Index Nikkei 

  	
   

  	
  33.34%  

  
	
   

  	
  Dow Jones EURO STOXX 50® Index 

  	
   

  	
  33.33%  

  
	
   

  	
  225SM Index

  	
   

  	
  33.33%

  

 

 9

 

“Market Disruption Event”, with
respect to any of the Basket Indices (or any Successor Index) shall mean any of
the following events has occurred on any day as determined by the Calculation
Agent:

(1)           a suspension, absence
or material limitation of trading of stocks then constituting 20% or more of
the level of such Basket Index (or the relevant Successor Index) on the
Relevant Exchanges for such securities at any time during the one hour period
preceding the close of the principal trading session on such Relevant Exchange;

(2)           a breakdown or failure
in the price and trade reporting systems of the primary market of any Relevant
Exchange as a result of which the reported trading prices for stocks then
constituting 20% or more of the level of such Basket Index (or the relevant
Successor Index) at any time during the one hour period preceding the close of
the principal trading session on such Relevant Exchange are materially
inaccurate;

(3)           a suspension, absence
or material limitation of trading on any major securities exchange for trading
in futures or options contracts or exchange traded funds related to such Basket
Index (or the relevant Successor Index) at any time during the one hour period
preceding the close of, the principal trading session on such exchange; or

(4)           a decision to permanently
discontinue trading in the relevant futures or options contracts or exchange
traded funds;

For the purpose of
determining whether a Market Disruption Event exists at any time, if trading in
a security included in a Basket Index is materially suspended or materially
limited at that time, then the relevant percentage contribution of that
security to the level of such Basket Index shall be based on a comparison of:

(1)           the
portion of the level of such Basket Index attributable to that security relative
to

(2)           the
overall level of such Basket Index,

in each case immediately before that suspension or limitation.

 

For
purposes of determining whether a Market Disruption Event has occurred:

 

(1)           a limitation on the hours or number
of days of trading will not constitute a Market Disruption Event if it results
from an announced change in the regular business hours of the Relevant Exchange
or market;

(2)           limitations pursuant to the rules of
any Relevant Exchange similar to NYSE Rule 80B (or any applicable rule or
regulation enacted or promulgated by any other self-regulatory organization or
any government agency of scope similar to NYSE Rule 80B as determined by the
Calculation Agent in its sole discretion) on trading during significant market
fluctuations will constitute a suspension, absence or material limitation of
trading;

 10

 

(3)           a suspension of trading in futures or
options contracts on the Basket Index by the primary securities market trading
in such contracts by reason of (i) a price change exceeding limits set by such
exchange or market, (ii) an imbalance of orders relating to such contracts, or
(iii) a disparity in bid and ask quotes relating to such contracts, will, in each such case,
constitute a suspension, absence or material limitation of trading in futures
or options contracts related to the Basket Index; and

(4)           a suspension, absence or material
limitation of trading on any Relevant Exchange or on the primary market on
which futures or options contracts related to the Basket Index are traded will
not include any time when such market is itself closed for trading under
ordinary circumstances.

“Maturity Date” shall
mean March 31, 2011, unless that day is not a Business Day, in which case the
amount equal to the Payment at Maturity that would otherwise be made on the
scheduled Maturity Date will instead be due on the next succeeding Business Day
following such scheduled Maturity Date, with the same effect as if paid on the
scheduled Maturity Date; provided, that if due to a non-Trading Day or a
Market Disruption Event, the
Final Valuation Date is postponed so that it falls less than three Business
Days prior to the scheduled Maturity Date, the Maturity Date will be the third
Business Day following the Final Valuation Date, as postponed.

“NYSE” shall mean
The New York Stock Exchange, Inc.

“Participation Rate”
shall be equal to 109.4%.

“Payment at Maturity”, as calculated
by the Calculation Agent, shall equal a cash payment per $10 principal amount
note of $10 plus the Additional Amount (which may be zero).

“Place of Payment” shall mean the
place or places where the Payment at Maturity on the Securities is payable.

“Relevant Exchange” shall mean, for
any security (or any combination thereof) then included in any Basket Index or
any Successor Index, the primary exchange, quotation system (which includes
bulletin board services) or other market of trading for such security.

“Securities”
shall have the meaning set forth on the reverse of this Security.

“Security”
shall have the meaning set forth on the face of this Security.

“Successor Index” shall have the
meaning specified under “Discontinuation of a Basket
Index; Alteration of Method of Calculation” with respect to each Basket Index.

“Trade Date” shall mean March 23,
2007.

“Trading Day” means a day, as
determined by the Calculation Agent, on which trading is generally conducted on
(i) the Relevant Exchanges for securities included in the Basket Indices (or
the relevant Successor Indices) and (ii) the exchanges on which futures or
options

 11

 

contracts related to the Basket Indices are traded,
other than a day on which trading is scheduled to close prior to its regular
weekday closing time.

“Trustee” shall
have the meaning set forth on the reverse of this Security.

All terms used but not defined in this Security
are used herein as defined in the Calculation Agency Agreement or the
Indenture.

Calculation Agent

The Calculation Agent will determine, among other
things, the Basket Ending Level, the Basket Return, the Index Return for each
Basket Index, the Additional Amount, if any, and the amount that we will pay
you at maturity, as well as whether the Basket Ending Level is equal to or
greater than the Basket Starting Level and, if the notes bear interest, the
amount of interest payable, if any, on any Interest Payment Date. The
Calculation Agent will also be responsible for determining whether a Market Disruption
Event has occurred, whether any of the Basket Indices has been discontinued,
whether there has been a material change in the method of calculation of any of
the Basket Indices and, if the notes bear interest, whether a day is an
Interest Payment Date. All calculations, determinations and adjustments made by
the Calculation Agent will be at the sole discretion of the Calculation Agent
and will, in the absence of manifest error, be conclusive for all purposes and
binding on Holders and on the Company. The Company may appoint a different
Calculation Agent from time to time after the date of the original issue of the
Notes without the Holders’ consent and without notifying Holders.

Discontinuation of a Basket
Index; Alteration of Method of Calculation

S&P 500® Index

If S&P discontinues publication of the S&P
500® Index and S&P or another entity publishes a successor or substitute index that
the Calculation Agent determines, in its sole discretion, to be comparable to
the discontinued S&P 500® Index (a “Successor
Index”), then any Closing Level will be determined by reference to the level of
such Successor Index at the close of trading on the Relevant Exchange or market
for the Successor Index on the Observation 
Date. Upon any selection by the Calculation Agent of a Successor Index,
the Calculation Agent will cause written notice thereof to be promptly
furnished to the Trustee, to the Company and to the Holders.

If S&P discontinues publication of the S&P 500® Index prior to, and such discontinuation is continuing
on, the Final Valuation Date, and the Calculation Agent determines, in its sole
discretion, that no Successor Index is available at such time, or the
Calculation Agent has previously selected a Successor Index and publication of
such Successor Index is discontinued prior
to, and such discontinuation is continuing on, the Final Valuation  Date, or if S&P (or the publisher of any Successor Index) fails to calculate and publish a Closing Level
for the S&P 500® Index (or any Successor Index) on any date when it would ordinarily do so in
accordance with its customary practice, then the Calculation Agent will
determine the Closing Level for such date. The Closing Level will be computed
by the Calculation Agent in accordance with the formula for and method of
calculating the S&P 500® Index or Successor

 12

 

Index, as applicable, last in
effect prior to such discontinuation or failure to calculate or publish a Closing
Level for the S&P 500® Index or Successor Index, as applicable, using the Closing Price (or, if trading
in the relevant securities has been materially suspended or materially limited,
its good faith estimate of the Closing Price that would have prevailed but for
such suspension or limitation) at the close of the principal trading session on
such date of each security most recently composing the S&P 500® Index or Successor
Index, as
applicable.

If at any time the method of calculating the S&P 500® Index or a Successor
Index, or
the level thereof, is changed in a material respect, or if the S&P 500® Index or an S&P
500®  Successor Index is in any other way modified
so that the S&P 500® Index or such Successor Index does not, in the opinion of the Calculation Agent,
fairly represent the level of the S&P
500® Index or such Successor Index had such changes or modifications not been made,
then the Calculation Agent will, at the close of business in New York City on
each date on which the S&P
500® Index Closing Level is
to be determined, make such calculations and adjustments as, in the good faith
judgment of the Calculation Agent, may be necessary in order to arrive at a
level of a stock index comparable to the S&P 500® Index or such Successor Index, as the case may be, as if such changes or
modifications had not been made, and the Calculation Agent will calculate the
Closing Level with reference to the S&P 500® Index or such Successor Index, as adjusted. Accordingly, if the method of
calculating the S&P 500® Index or a
Successor S&P 500® Index is modified so that the level of the S&P 500® Index or such Successor Index is a fraction of what it would have been if there had
been no such modification (e.g., due to a
split in the Index), then the Calculation Agent will adjust its calculation of
the S&P 500® Index or such Successor Index in order to arrive at a level of the S&P 500® Index or such Successor Index as if there had been no such modification (e.g., as if such split had not occurred).

Dow Jones EURO STOXX 50® Index

If STOXX Limited discontinues publication of the Dow Jones EURO STOXX 50® Index and STOXX Limited or another entity publishes a
successor or substitute index that the Calculation Agent determines, in its
sole discretion, to be comparable to the discontinued Dow Jones EURO STOXX 50® Index (a “Successor
Index”),
then any Basket Closing Level will be determined by reference to the level of
such Successor Index at the close of trading
on the Relevant Exchange or market for the Successor Index on the Final Valuation Date. Upon any selection by the
Calculation Agent of a EURO
STOXX 50® Index Successor Index, the
Calculation Agent will cause written notice thereof to be promptly furnished to
the Trustee, to the Company and to the Holders.

If STOXX Limited discontinues publication of the
Index prior to, and such discontinuation is continuing on, the Final Valuation
Date, and the Calculation Agent determines, in its sole discretion, that no Successor Index is available at such time, or the Calculation
Agent has previously selected a EURO
STOXX 50®  Successor Index and publication of such Successor Index is discontinued prior to, and such
discontinuation is continuing on, the Final Valuation Date, or if STOXX Limited
(or the publisher of any Successor
Index) fails
to calculate and publish a Closing Level for the Dow Jones EURO STOXX 50® Index (or any Successor Index) on any date when it would ordinarily do so in
accordance with its customary practice, then the Calculation Agent will
determine the Closing Level for such date. The Closing Level will be computed
by the Calculation Agent in accordance with the formula

 

 13

for and method of calculating the Dow Jones EURO STOXX 50® Index or Successor
Index, as
applicable, last in effect prior to such discontinuation or failure to
calculate or publish a Closing Level for the Dow Jones EURO STOXX 50® Index or Successor Index, as applicable, using the Closing Price (or, if
trading in the relevant securities has been materially suspended or materially
limited, its good faith estimate of the Closing Price that would have prevailed
but for such suspension or limitation) at the close of the principal trading
session on such date of each security most recently composing the Dow Jones EURO STOXX 50® Index or Successor
Index, as
applicable.

If at any time the method of calculating the Dow Jones EURO STOXX 50® Index or a Successor
Index, or
the level thereof, is changed in a material respect, or if the Dow Jones EURO STOXX 50® Index or a Successor
Index is in
any other way modified so that the Dow
Jones EURO STOXX 50® Index or such Successor Index does not, in the opinion of the Calculation
Agent, fairly represent the level of the Dow Jones EURO STOXX 50® Index or such Successor Index had such changes or modifications not been made,
then the Calculation Agent will, at the close of business in New York City on
each date on which the Closing Level is to be determined, make such
calculations and adjustments as, in the good faith judgment of the Calculation
Agent, may be necessary in order to arrive at a level of a stock index
comparable to the Dow Jones EURO
STOXX 50® Index or such Successor Index, as the case may be, as if such changes or
modifications had not been made, and the Calculation Agent will calculate the
Closing Level with reference to the Dow Jones EURO STOXX 50® Index or such Successor Index, as adjusted. Accordingly, if the method of
calculating the Dow Jones EURO
STOXX 50® Index or a Successor Index is modified so that the level of the Dow Jones EURO STOXX 50® Index or such Successor Index is a fraction of what it would have been if there had
been no such modification (e.g., due to a
split in the Index), then the Calculation Agent will adjust its calculation of
the Dow Jones EURO STOXX 50® Index or such Successor Index in order to arrive at a level of the Dow Jones EURO STOXX 50® Index or such Successor Index as if there had been no such modification (e.g., as if such split had not occurred).

Nikkei 225SM Index

If Nikkei Inc. discontinues publication of the Nikkei 225SM Index and Nikkei Inc. or another entity publishes a
successor or substitute index that the Calculation Agent determines, in its
sole discretion, to be comparable to the discontinued Nikkei 225SM Index (a “Successor Index”), then any Nikkei 225SM Index Closing Level will
be determined by reference to the level of such Successor Index at the close of trading on the Relevant Exchange or
market for the Successor Index on the Final Valuation Date. Upon any selection
by the Calculation Agent of a Successor
Index, the
Calculation Agent will cause written notice thereof to be promptly furnished to
the Trustee, to the Company and to the Holders.

If Nikkei Inc. discontinues publication of the Nikkei 225SM Index prior to,
and such discontinuation is continuing on, the Final Valuation Date, and the
Calculation Agent determines, in its sole discretion, that no Successor Index is available at such time, or the Calculation
Agent has previously selected a Successor
Index and
publication of such Successor
Index is
discontinued prior to, and such discontinuation is continuing on, the Final
Valuation Date, or if Nikkei Inc. (or the publisher of any Successor Index) fails to calculate and publish a Closing Level
for the Nikkei 225SM Index (or any Successor Index) on any date when it would

 14

 

ordinarily do so in accordance with its customary
practice, then the Calculation Agent will determine the Closing Level for such
date. The Closing Level will be computed by the Calculation Agent in accordance
with the formula for and method of calculating the Nikkei 225SM Index or Successor
Index, as
applicable, last in effect prior to such discontinuation or failure to
calculate or publish an Closing Level for the Nikkei 225SM Index or Successor Index, as applicable, using the Closing Price (or, if
trading in the relevant securities has been materially suspended or materially
limited, its good faith estimate of the Closing Price that would have prevailed
but for such suspension or limitation) at the close of the principal trading
session on such date of each security most recently composing the Nikkei 225SM Index or Successor
Index, as
applicable.

If at any time the method of calculating the Nikkei 225SM Index or a Successor
Index, or
the level thereof, is changed in a material respect, or if the Nikkei 225SM Index or a Successor
Index is in
any other way modified so that the Nikkei
225SM Index or such Successor Index does not, in the opinion of the Calculation
Agent, fairly represent the level of the Nikkei 225SM Index or such Successor Index had such changes or modifications not been made,
then the Calculation Agent will, at the close of business in New York City on
each date on which the Closing Level is to be determined, make such
calculations and adjustments as, in the good faith judgment of the Calculation
Agent, may be necessary in order to arrive at a level of a stock index
comparable to the Nikkei 225SM Index or such Successor Index, as the case may be, as if such changes or modifications
had not been made, and the Calculation Agent will calculate the Closing Level
with reference to the Nikkei 225SM Index or such Successor Index, as adjusted. Accordingly, if the method of calculating
the Nikkei 225SM Index or a Successor Index is modified so that the level of the Nikkei 225SM Index or such Successor Index is a fraction of what it would have been if there had
been no such modification (e.g., due to a
split in the Index), then the Calculation Agent will adjust its calculation of
the Nikkei 225SM Index or such Successor Index in order to arrive at a level of the Nikkei 225SM Index or such Successor Index as if there had been no such modification (e.g., as if such split had not occurred).

 15

 

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

	
  TEN COM -

  	
   

  	
  as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT - ______ Custodian ______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
  (Minor)

  
	
  TEN ENT -

  	
   

  	
  as tenants by the entireties

  	
   

  	
  under Uniform Gifts to Minors

  
	
  JT TEN -

  	
   

  	
  as joint tenants with right of

  	
   

  	
  Act ______________________________________

  
	
   

  	
   

  	
  Survivorship and not as tenants in common

  	
   

  	
  (State)

  
	
   

  	
   

  	
   

  	
   

  	
   

  

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

	
  

  	
   

  	
   

  

 

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

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
   

   

  

  	
   

  

 

	
   

  
	
  (Name and Address of
  Assignee, including zip code, must be printed or typewritten.)

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  
	
   

  

Dated:

	
  

  	
   

  

 

NOTICE:  The signature to this assignment must
correspond with the name as it appears upon the face of the within Security in
every particular, without alteration or enlargement or any change whatever.

Signature(s) Guaranteed:

 

	
  

  	
   

  
	
   

  	
   

  
			

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN
ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED MEDALLION
SIGNATURE GUARANTEE PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]