Document:

exv4w1

 

Exhibit
4.1

 

 

FULTON FINANCIAL CORPORATION

TO

WILMINGTON TRUST COMPANY,

AS TRUSTEE

 

FIRST SUPPLEMENTAL INDENTURE

 

5.75% SUBORDINATED NOTES

DUE 2017

Dated as of May 1, 2007

 

 

 

 

     FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”) dated as of May 1, 2007
among Fulton Financial Corporation, a Pennsylvania corporation, as issuer (the “Corporation”), and
Wilmington Trust Company, a Delaware banking corporation, as trustee (the “Trustee”).

RECITALS OF THE CORPORATION

     WHEREAS, the Corporation and the Trustee have executed and delivered to the Trustee an
Indenture dated as of May 1, 2007 (the “Indenture”);

     WHEREAS, Section 2.01 of the Indenture provides that the aggregate principal amount of all
subordinated notes that may be issued, authenticated and delivered under the Indenture is
unlimited;

     WHEREAS, Section 2.01 of the Indenture also provides for the issuance from time to time of
subordinated notes of the Corporation in one or more series;

     WHEREAS, the Corporation desires by this First Supplemental Indenture to create a series of
subordinated notes to be issuable under the Indenture, as supplemented by this First Supplemental
Indenture, which are to be designated and limited in aggregate principal amount as specified in
this First Supplemental Indenture, which are to have the terms and provisions as specified in this
First Supplemental Indenture, which are to be referred to as the Corporation’s
5.75% Subordinated Notes due May 1, 2017 (the “Notes”); and

     WHEREAS, all things necessary to make the Notes, when executed by the Corporation and
authenticated and delivered hereunder and duly issued by the Corporation, the valid obligations of
the Corporation, and to make this First Supplemental Indenture a valid and binding agreement of the
Corporation, have been done.

     NOW THEREFORE, in consideration of the premises provided for herein, the Corporation and the
Trustee hereby agree that the following Sections of this First Supplemental Indenture supplement
the Indenture to provide for the issuance of Notes proposed to be issued thereunder on the date of
this First Supplemental Indenture:

     SECTION 1. Definitions. Capitalized terms used herein and not defined herein have the
meanings ascribed to such terms in the Indenture.

     SECTION 2. Issuance of Notes.

     (a) The Notes shall be a series of subordinated notes designated “5.75% Subordinated Notes due
2017” of the Corporation, and the form thereof shall be substantially as set forth in Exhibit
A hereto, which is incorporated into and shall be deemed a part of this First Supplemental
Indenture, with such appropriate insertions, omissions, substitutions and other variations as are
required or permitted by the Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be required to comply with
the rules of any securities exchange or as may, consistently herewith, be determined by the
officers of the Corporation executing such Notes, as evidenced by their
execution of the Notes.

2

 

     The Trustee shall, upon receipt of a Corporation Order to do so, authenticate and deliver
Notes for original issue in an aggregate principal amount of up to $100,000,000, without any
further action by the Corporation. The aggregate principal amount of Notes that may be
authenticated and delivered under the Indenture may not exceed the amount set forth in the
foregoing sentence, except for Notes authenticated and delivered upon registration of transfer of,
or in exchange for, or in lieu of, other Notes pursuant to Sections 2.08, 2.09, 2.10 or 9.04 of the
Indenture.

     (b) The principal of the Notes shall bear interest at the rate of 5.75% per annum from May 1,
2007 (the “Issue Date”) or from the most recent Interest Payment Date on which interest has been
paid or duly provided for, payable semiannually in arrears on May 1 and November 1 of each year
(each, an “Interest Payment Date”), beginning on November 1, 2007, to the Persons in whose names
the Notes are registered at the close of business on immediately preceding Regular Record Date. The
Maturity Date of the Notes is May 1, 2017.

     (c) No Notes may be issued with original issue discount for United States Federal income tax
purposes.

     (d) The principal of, and premium, if any, and interest, if any, on the Notes shall be payable
at Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19890-1600, Attention: Corporate Capital Markets Division, Fulton Financial Corporation
Subordinated Notes.

     (e) The Notes shall be issued as a Global Note.

     SECTION 3. Forms of Notes. Each certificate representing the Notes that is issued
after the date hereof shall refer to this First Supplemental Indenture.

     SECTION 4. This First Supplemental Indenture. This First Supplemental Indenture shall
be construed as supplemental to the Indenture and shall form a part of it with respect to the Notes
only, and the Indenture is hereby incorporated by reference herein and each is hereby ratified,
approved and confirmed.

     SECTION 5. GOVERNING LAW. THIS FIRST SUPPLEMENTAL INDENTURE AND THE NOTES SHALL EACH
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES OF SAID STATE OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

     SECTION 6. Conflict of any Provision of this First Supplemental Indenture with the Trust
Indenture Act. If and to the extent that any provision of this First Supplemental Indenture
limits, qualifies or conflicts with a provision required under the terms of the Trust Indenture
Act, such Trust Indenture Act provision shall control.

3

 

     SECTION 7. Counterparts. This First Supplemental Indenture may be executed in two or
more counterparts, each of which shall constitute an original, but all of which when taken together
shall constitute but one instrument.

     SECTION 8. Headings. The headings of this First Supplemental Indenture are for
reference only and shall not limit or otherwise affect the meaning hereof.

     SECTION 9. Acceptance by Trustee. The Trustee accepts the amendments to the Indenture
effected by this First Supplemental Indenture and agrees to execute the trusts created by the
Indenture as hereby amended, but only upon the terms and conditions set forth in this First
Supplemental Indenture and the Indenture. The recitals herein contained are made by the Corporation
and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The
Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this First Supplemental Indenture.

     SECTION 10. Separability. In case any one or more of the provisions contained in this
First Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect any other
provisions of this First Supplemental Indenture, but this First Supplemental Indenture shall be
construed as if such invalid or illegal or unenforceable provision had never been contained herein.

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed by their respective authorized officers as of the date first written above.

	 	 	 	 	 
	 

	 	FULTON FINANCIAL	 	 
	 

	 	CORPORATION, as Issuer	 	 
	 	 	 	 	 
	 
	 	/s/ Charles J. Nugent	 	 
	 

	 	 

Name: Charles J. Nugent
	 	 
	 

	 	Title:   Senior Executive Vice President and
Chief Financial Officer	 
	 
	 

	 	WILMINGTON TRUST

COMPANY, as Trustee	 	 
	 
	 
	 	/s/ Denise M. Green	 	 
	 

	 	 

Name: Denise M. Green
	 	 
	 

	 	Title:   Vice President	 	 

5

 

EXHIBIT A

(FORM OF FACE OF NOTE)

     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS
NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER
THAN A TRANSFER OF THIS NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR
ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE CORPORATION (AS
DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE
& CO., HAS AN INTEREST HEREIN.

     ANY PURCHASER OR HOLDER OF THE NOTES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (I) NO PORTION OF THE
ASSETS USED BY IT TO ACQUIRE AND HOLD THE NOTES CONSTITUTES ASSETS OF ANY EMPLOYEE BENEFIT PLAN
SUBJECT TO SECTION 406 OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), ANY PLAN, ACCOUNT OR OTHER ARRANGEMENT SUBJECT TO SECTION 4975 OF THE U.S.
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS UNDER ANY FEDERAL,
STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR
THE CODE (COLLECTIVELY, “SIMILAR LAWS”), OR ANY ENTITY WHOSE UNDERLYING ASSETS ARE
CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT OR (II) THE PURCHASE
AND HOLDING OF THE NOTES WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION UNDER ANY APPLICABLE SIMILAR LAW.

     THE NOTES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000 AND
MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF NOTES IN A DENOMINATION OF LESS
THAN $1,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED

6

 

TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
NOT TO BE THE HOLDER OF SUCH NOTES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
PAYMENTS ON SUCH NOTES, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST
WHATSOEVER IN SUCH NOTES.

     THE NOTES DO NOT EVIDENCE SAVINGS ACCOUNTS OR DEPOSITS AND ARE NOT INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

7

 

FULTON FINANCIAL CORPORATION

CUSIP No.: 360271 AH3

$100,000,000

   5.75% SUBORDINATED NOTE DUE MAY 1, 2017

     Interest

     Fulton Financial Corporation, a Pennsylvania corporation (the “Corporation,” which term
includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to Cede & Co. or registered assigns, the principal sum of $100,000,000 (One
Hundred Million Dollars) on May 1, 2017 (the “Maturity Date”) and to pay interest on the
outstanding principal amount hereof from May 1, 2007 or from the most recent interest payment date
(each such date, an “Interest Payment Date”) to which interest has been paid or duly provided for,
semi-annually in arrears on May 1 and November 1 of each year, beginning November 1, 2007, at the
rate of 5.75% per annum, until the principal hereof shall have become due and payable, and on any
overdue principal and on any overdue installment of interest (without duplication and to the extent
that payment of such interest is enforceable under applicable law) at the same rate per annum
compounded semi-annually. The amount of interest payable hereon shall be computed on the basis of a
360-day year of twelve 30-day months. If an Interest Payment Date or the Maturity Date falls on a
day that is not a Business Day (as defined in the Indenture), the related payment of principal or
interest will be paid on the next Business Day, with the same force and effect as if made on such
date, and no interest on such payments will accrue from and after such Interest Payment Date or
Maturity Date, as the case may be.

     Method of Payment

     The interest installment so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or
one or more Predecessor Notes, as defined in said Indenture) is registered at the close of business
on the regular record date for such interest installment, which shall be at the close of business
on the 15th calendar day (whether or not a Business Day) prior to the applicable Interest Payment
Date. Any such interest installment not punctually paid or duly provided for shall forthwith cease
to be payable to the holders on such Regular Record Date and may be paid to the Person in whose
name this Note (or one or more Predecessor Notes) is registered at the close of business on a
special record date to be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the 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 of this series may be listed, and upon
such notice as may be required by such exchange, all as more fully provided in the Indenture.
Interest payable on the Maturity Date of the Notes of this series will be paid to the registered
holder to whom the principal is payable.

8

 

     Paying Agent and Register

     The principal of and interest on this Note shall be payable at the office or agency of the
Trustee maintained for that purpose in any coin or currency of the United States of America that at
the time of payment is legal tender for payment of public and private debts; provided,
however, that payment of interest may be made at the option of the Corporation by (i) check
mailed to the holder at such address as shall appear in the Note Register or (ii) transfer to an
account maintained by the Person entitled thereto, provided that proper written transfer
instructions have been received by the relevant record date.

     Subordination

     The indebtedness evidenced by this Note is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all Allocable Amounts on
Senior Indebtedness, and this Note is issued subject to the provisions of the Indenture with
respect thereto. Each holder of this Note, by accepting the same, (a) agrees to and shall be bound
by such provisions, (b) authorizes and directs the Trustee on his or her behalf to take such action
as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and
(c) appoints the Trustee his or her attorney-in-fact for any and all such purposes. Each holder
hereof, by his or her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of Senior
Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such
holder upon said provisions.

     Any default on a payment under the Corporation’s 5.35% Subordinated Notes due April 1, 2015
(the “2015 Notes”), which rank pari passu to this Note, or a breach by the Corporation of a
covenant under the indenture under which the 2015 Notes were issued (the “2015 Notes Indenture”)
that results in a default or event of default under the 2015 Notes Indenture, will prohibit the
Corporation from making any payment on this Note unless the Corporation either cures the default or
event of default or, if such default is a payment default, makes payments on the 2015 Notes, this
Note and any future series of notes issued under the Indenture on a pro rata basis.

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

     The provisions of this Note are continued on the reverse side hereof and such provisions shall
for all purposes have the same effect as though fully set forth at this place.

9

 

     IN WITNESS WHEREOF, the Corporation has caused this instrument to be duly executed this
1st day of May, 2007

	 	 	 	 	 	 	 
	 	 	FULTON FINANCIAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

CERTIFICATE OF AUTHENTICATION

     This represents Notes of Fulton Financial Corporation referred to in the within-mentioned
Indenture.

	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,	 	 
	 

	 	not in its individual capacity but solely as

Trustee
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	Dated: May 1, 2007	 	 	 	 

10

 

(FORM OF REVERSE OF NOTE)

     This Note is one of the Notes of the Corporation (herein sometimes referred to as the
“Notes”), all issued or to be issued in one or more series under and pursuant to an Indenture,
dated as of May 1, 2007, duly executed and delivered between the Corporation and
Wilmington Trust Company, as Trustee (the “Trustee”), and
the First Supplemental Indenture thereto, dated
as of May 1, 2007 (together, the “Indenture”), duly executed and delivered between the
Corporation and the Trustee, to which Indenture and First Supplemental Indenture reference is
hereby made for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Corporation and the holders of the Notes. This Note is
one of the series designated on the face hereof. The Notes are unlimited in aggregate principal
amount as specified in the Indenture.

     Defaults and Remedies

     In case an Event of Default (as defined in the Indenture) shall have occurred and be
continuing, the principal of all of the Notes of this series shall become due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

     There is no right of acceleration of payment in the case of any Default (as defined in the
Indenture), including any default in the payment of principal or interest on the Notes or the
performance by the Corporation of its other obligations under the Notes of this series.

     Amendment, Supplement and Waiver

     The Indenture contains provisions permitting the Corporation and the Trustee, with the consent
of the holders of a majority in aggregate principal amount of the
Notes of this series affected at the time
Outstanding (as defined in the Indenture), to execute supplemental indentures for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or of modifying in any manner the rights of the holders of
the Notes of this series; provided,
however, that no such supplemental indenture shall, without the consent of each holder of
Notes of this series then Outstanding and affected thereby, (i) change the Maturity Date of this Note or provide
for the redemption of this Note prior to such Maturity Date, or reduce the rate or extend the time
of payment of interest hereon, or reduce the principal amount hereof or make the principal hereof
or any interest hereon payable in any coin or currency other than U.S. dollars, or impair or affect
the right of any holder of Notes to institute suit for payment hereof, or (ii) reduce the aforesaid
percentage of Notes the holders of which are required to consent to any such supplemental
indenture. The Indenture also contains provisions permitting the holders of a majority in aggregate
principal amount of the Notes of this series at the time Outstanding and affected thereby, on behalf of all of the
holders of the Notes of this series, to waive any past default in the performance of any of the covenants
contained in the Indenture, or established pursuant to the Indenture, and its consequences, except
a default in the payment of the principal of or interest on any of
the Notes of this series or a default in
respect of any covenant or provision under which the Indenture cannot be modified or amended
without the consent of each holder of Notes of this series then Outstanding. Any such consent or waiver by the
holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and of any Note issued in
exchange herefor or in place hereof (whether by registration of transfer

11

 

or otherwise), irrespective of whether or not any 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 Corporation, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time and place and at the rate and in the money
herein prescribed.

     Limitation on Dividends

     The Corporation has agreed that it will not (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the
Corporation’s capital stock, (ii) make any payment of principal of or interest, if any, on or
repay, repurchase or redeem any debt securities of the Corporation that rank pari passu with or
junior in right of payment to this Note other than such payments, repayments, repurchases or
redemptions of debt securities of the Corporation that rank equal with this Note that are made on a
pro rata basis with payments, repayments or repurchases on this Note or (iii) make any guarantee
payments with respect to any guarantee by the Corporation of the debt securities of any Subsidiary
of the Corporation if such guarantee ranks pari passu with or junior in right of payment to this
Note (other than (a) dividends or distributions in shares of, or options, warrants or rights to
subscribe for or purchase shares of, Common Stock, (b) any declaration of a dividend in connection
with the implementation of a stockholders’ rights plan, or the issuance of stock under any such
plan in the future, or the redemption or repurchase of any such rights pursuant thereto, (c) as a
result of a reclassification of the Corporation’s capital stock or the exchange or conversion of
one class or series of the Corporation’s capital stock for another class or series of the
Corporation’s capital stock, (d) the purchase of fractional interests in shares of the
Corporation’s capital stock pursuant to the conversion or exchange provisions of such capital stock
or the security being converted or exchanged and (e) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Corporation’s benefit or compensation plans for
its directors, officers or employees or any of the Corporation’s dividend reinvestment plans), if
at such time there shall have occurred any event, act or condition that (a) is a Default or an
Event of Default and (b) in respect of which the Corporation shall not have taken reasonable steps
to cure.

     Denominations; Transfer; Exchange

     The Notes of this series are issuable only in registered form without coupons in minimum
denominations of $1,000 and multiples of $1,000 in excess thereof. As provided in the Indenture,
this Note is transferable by the holder hereof on the Note Register of the Corporation, upon
surrender of this Note for registration of transfer at the office or agency of the Corporation in
New York, New York or Wilmington, Delaware accompanied by a written instrument or instruments of
transfer in form satisfactory to the Corporation or the Trustee duly executed by the holder hereof
or his or her 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. No service charge will be made for any such registration
of transfer, but the Corporation may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.

12

 

     Prior to due presentment for registration of transfer of this Note, the Corporation, the
Trustee, any authenticating agent, any paying agent, any transfer agent and any security registrar
may deem and treat the holder hereof as the absolute owner hereof (whether or not this Note shall
be overdue and notwithstanding any notice of ownership or writing hereon made by anyone other than
the security registrar for the Notes of this series) for the purpose of receiving payment of or on
account of the principal hereof and (subject to the Indenture) interest due hereon and for all
other purposes, and none of the Corporation, the Trustee, any authenticating agent, any paying
agent, any transfer agent or any security registrar shall be affected by any notice to the
contrary.

     No Recourse Against Others

     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,
against any incorporator, stockholder, employee, officer or director, as such, past, present or
future, of the Corporation or of any successor Person, 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 issuance hereof,
expressly waived and released.

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

     Governing Law

     THE INDENTURE AND THIS NOTE SHALL EACH BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES OF SAID STATE OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

     Abbreviations

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

	 	 	 
	TEN CON — as tenants in common

	 	TEN ENT — as tenants in the entireties
	 
	 	 
	JT TEN — as joint tenants with
right of survival

	 	UNIF GIFT MIN ACT — under Uniform Gift
to Minors Act and not as tenants

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

13exv10w1

 

Exhibit 10.1

SENIOR EXECUTIVE OFFICER SEVERANCE AGREEMENT

     THIS SENIOR EXECUTIVE OFFICER SEVERANCE AGREEMENT is made as of March 26, 2007, between
TELEFLEX INCORPORATED (the “Company”) and Kevin K. Gordon (“Executive”).

Background

     A. Executive is employed by the Company as the Company’s Executive Vice President and Chief
Financial Officer.

     B. The purpose of this Agreement is to provide for certain severance compensation and benefits
to be paid or provided to Executive in the event of the termination of his employment under
circumstances specified herein and to provide also for certain commitments by Executive respecting
the Company.

Terms

     THE PARTIES, in consideration of the mutual covenants hereinafter set forth, and intending to
be legally bound hereby, agree as follows:

     1. Definitions. The following terms used in this Agreement with initial capital
letters have the respective meanings specified therefor in this Section.

     “Affiliate” of any Person means any other Person that controls, is controlled by or is
under common control with the first mentioned Person.

     “Agreement” preceded by the word “this” means this Senior Executive Officer Severance
Agreement, as amended at any relevant time.

     “Annual Incentive Plan” means the Management Incentive Plan (MIP) or Executive
Incentive Plan (EIP) of the Company providing for the payment of annual bonuses to certain
employees of the Company, including Executive, as such Plans may be amended from time to time or,
if such Plans shall be discontinued, any similar Plan or Plans in effect at any relevant time.

     “Base Salary” of Executive means the annualized base rate of salary paid to Executive
as such may be increased from time to time.

     “Cause” means (a) misappropriation of funds, (b) conviction of a crime involving moral
turpitude, or (c) gross negligence in the performance of duties, which gross negligence has had a
material adverse effect on the business, operations, assets, properties or financial condition of
the Company and its subsidiaries taken as a whole.

 

 

     “Change of Control Severance Agreement” means the Executive Severance Agreement, dated
June 21, 2005, between Executive and the Company, relating to termination of employment of
Executive after the occurrence of a Change of Control of the Company (defined in such Agreement).

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commencement Date” with respect to the commencement of any compensation or provision
of benefits pursuant to this Agreement means the first day of the seventh month beginning after the
Termination Date; provided that if it shall be determined that earlier payment or provision of such
compensation or benefits is permissible under Section 409A of the Code, “Commencement Date” shall
mean the earliest such permissible date.

     “Confidential Information” has the meaning specified therefor in Section 9.

     “Employment” means substantially full time employment of Executive by the Company or
any of its Affiliates.

     “Good Reason” means the occurrence of one or more of the following:

          (a) A change of the principal office or work place assigned to Executive to a location more
than 25 miles distant from its location immediately prior to such change.

          (b) A material reduction by the Company of the executive title, duties, responsibilities,
authority, status, reporting relationship or executive position of Executive; provided that if the
Company sells or otherwise disposes of any part of its business or assets or otherwise diminishes
or changes the character of its business, the change in the magnitude or character of the Company’s
business resulting therefrom will not itself be deemed to be a reduction of Executive’s
responsibilities, authority or status within the meaning of this clause (b).

          (c) A reduction of Executive’s Base Salary or a material reduction in the Executive’s annual
target incentive opportunity under the Annual Incentive Plan.

     “Health Care Continuation Period” means the period commencing on the Termination Date
and ending on the earlier of (i) the last day of the Severance Compensation Period or (ii) the
first date on which Executive is eligible to participate in a health care plan maintained by
another employer.

     “Insurance Benefits Period” means the period commencing on the Commencement Date and
ending on the earlier of (i) the last day of the Severance Compensation Period or (ii) the first
date on which Executive is eligible to participate in a life and/or accident insurance plan
maintained by another employer.

     “Notice of Termination” has the meaning specified therefor in Section 3.

2

 

     “Performance Period” applicable to any compensation payable (in cash or other
property) under any Plan, the amount or value of which is determined by reference to the
performance of participants or the Company or the fulfillment of specified conditions or goals,
means the period of time over which such performance is measured or the period of time in which
such conditions or performance goals must be fulfilled.

     “Person” means an individual, a corporation or other entity or a government or
governmental agency or institution.

     “Plan” means a plan of the Company for the payment of compensation or provision of
benefits to employees in which plan Executive is or was, at all times relevant to the provisions of
this Agreement, a participant or eligible to participate.

     “Prorated Amount” has the meaning specified therefor in Section 4(c).

     “Release” has the meaning specified therefor in Section 7.

     “Severance Compensation Period” means the 18 month period commencing on the day after
the Termination Date, provided that for each completed year of full-time employment by Executive
from and after January 1, 2007, one additional month shall be added to the Severance Compensation
Period not to exceed an additional six months.

     “Termination Date” means the date specified in a Notice of Termination complying with
the provisions of Section 3, as such Notice of Termination may be amended by mutual consent of the
parties.

     “Termination of Employment” means a cessation of Employment other than such a
cessation occurring (i) by reason of Executive’s death or disability or (ii) under circumstances
which entitle Executive to receive severance compensation and benefits pursuant to the Change of
Control Severance Agreement.

     “Year of Termination” means the Year in which Executive’s Termination Date occurs.

     “Year” means a fiscal year of the Company.

     2. Continued Employment of Executive. The parties acknowledge that Executive’s
employment by the Company is at will and, except as the parties may hereafter agree in writing,
such employment may be terminated by either party at any time, subject only to the giving of prior
notice pursuant to Section 3. Nothing in this Agreement shall be construed as giving Executive any
right to continue in the employ of the Company.

     3. Notice of Termination of Employment. The party initiating any Termination of
Employment shall give notice thereof to the other party (a “Notice of Termination”). A Notice of
Termination shall (i) state with reasonable particularity the reasons for such Termination of
Employment, if any, which are relevant to Executive’s right to receive compensation and

3

 

benefits pursuant to this Agreement and (ii) specify the date such Termination of Employment shall
become effective which, without the consent of such other party, shall not be earlier than 30 days
after the date of such Notice of Termination.

     4. Compensation upon Termination of Employment. Subject to the terms of Sections 6
and 7, upon Termination of Employment (i) by the Company other than for Cause or (ii) by Executive
within 3 months after the occurrence of a Good Reason, Executive will receive from the Company the
following payments and benefits:

          (a) Cash Bonuses for Years Preceding the Year of Termination. If any cash bonus
pursuant to an Annual Incentive Plan in respect of a Performance Period which ended before the Year
of Termination shall not have been paid to Executive on or before the Termination Date, the Company
will pay Executive, promptly after the Termination Date, such bonus in the amount of Executive’s
award earned for the Performance Period; provided, however, that if any such Annual Incentive Plan
requires, as a condition to eligibility for payment, that a participant be employed by the Company
on the date payment is made, then payment of the bonus under such Annual Incentive Plan for the
Performance Period ended before the Year of Termination shall be made on the Commencement Date.

          (b) Continuation of Base Salary. The Company will pay Executive (i) on the
Commencement Date an amount equal to seven-twelfths of Executive’s Base Salary as in effect
immediately prior to the Termination Date, and (ii) each month thereafter during the Severance
Compensation Period an amount equal to one-twelfth of Executive’s Base Salary as in effect
immediately prior to the Termination Date.

          (c) Payment of Annual Incentive Plan Award for Performance Period Not Completed Before the
Termination Date. If the Termination Date occurs before the last day, but after completion of
at least six months, of a Performance Period under the Annual Incentive Plan, the Company will pay
Executive the Prorated Amount of Executive’s award under the Annual Incentive Plan for that
Performance Period. The amount of the award, from which the Prorated Amount is derived, shall be
determined based on the degree to which each performance goal on which such award is based has been
achieved at the end of the Performance Period (provided that any individual performance component
shall be equal to the target award amount for such component). The “Prorated Amount” of the award
means an amount equal to the portion of the award which bears the same ratio to the amount of the
award as the portion of such Performance Period expired immediately before the Termination Date
bears to the entire period of such Performance Period.

          (d) Vehicle Allowance. The Company will provide Executive with a vehicle allowance
equal to the reasonably equivalent value for the use of the vehicle then utilized by Executive for
the Severance Compensation Period. The Company shall pay Executive (i) an amount equal to seven
times the applicable monthly allowance on the Commencement Date and (ii) an amount equal to the
applicable monthly allowance each month thereafter for which the vehicle allowance is provided.

4

 

          (e) Outplacement. The Company shall reimburse Executive for expenses incurred for
outplacement services during the Severance Compensation Period, up to a maximum aggregate amount of
$20,000, which services shall be provided by an outplacement agency selected by Executive.

          (f) Health Care Coverage. During the Health Care Continuation Period (i) the Company
will provide health care coverage under the Company’s health care Plan for Executive and
Executive’s spouse and dependents comparable to the health care coverage Executive last elected to
receive under such Plan as an employee, subject to modifications from time to time to the coverage
under such Plan which apply generally to executive officers of the Company, or (ii) at the
Company’s election, in lien of the health care coverage described in clause (i), the Company will
pay Executive cash monthly in an amount equal to Executive’s after-tax cost to obtain comparable
health insurance coverage from commercial sources. The aggregate premium cost of providing such
coverage will be borne by the Company and Executive in accordance with the Company’s policy then in
effect for employee cost sharing, on substantially the same terms as would be applicable to an
executive officer of the Company. The COBRA health care continuation coverage period under Section
4980B of the Code shall begin at the end of the Health Care Continuation Period.

          (g) Life and Accident Insurance. Subject to the terms, limitations and exclusions of
the Plan or Plans for provision of life and accident insurance and the Company’s related policies
of group insurance, (i) during the Insurance Benefits Period the Company will provide life and
accident insurance coverage for Executive comparable to the life and accident insurance coverage
which Executive last elected to receive as an employee under the applicable Plan for such benefits,
subject to modifications from time to time of the coverage available under such Plan or related
insurance policies which are applicable generally to executive officers of the Company, and (ii) on
the Commencement Date the Company will reimburse Executive for the Company’s share (determined in
accordance with the next sentence) of any premiums paid by Executive for such life and accident
insurance during the period from the Termination Date to the Commencement Date. The cost of
providing such insurance will be borne by the Company and Executive in accordance with the
Company’s policy then in effect for employee participation in premiums, on substantially the same
terms as would be applicable to an executive officer of the Company. The Company shall pay its
share of such premiums to the applicable insurance carrier(s) on the due date(s) established by
such carrier(s), but in no event later than the last day of the calendar year in which such due
date(s) occurs.

     5. Deductions and Taxes. Amounts payable by the Company pursuant to this Agreement
shall be paid net of (i) taxes withheld by the Company in accordance with the requirements of law
and (ii) deductions for the portion of the cost of certain benefits to be borne by Executive
pursuant to Sections 4(f) and (g).

     6. Compensation and Benefits Pursuant to Other Agreements and Plans. Nothing in this
Agreement is intended to diminish or otherwise affect Executive’s right to receive from the Company
all compensation payable to Executive by the Company in respect of his Employment
prior to the Termination Date pursuant to any agreement with the Company (other than this
Agreement) or any Plan.

5

 

     7. Executive’s General Release. As a condition to the obligations of the Company to
pay severance compensation and provide benefits pursuant to Section 4, the Company shall have
received from Executive immediately following the Termination Date a general release in
substantially the form of Exhibit A executed by Executive (the “Release”), and Executive shall not
thereafter revoke the Release. If Executive fails to execute, or if Executive revokes, the
Release, no payments or benefits shall thereafter be made or provided to Executive pursuant to this
Agreement, and Executive shall be required to reimburse to the Company any payments or benefits
received by Executive pursuant to this Agreement, but Executive’s obligations pursuant to Sections
8 and 9 shall continue in force.

     8. Confidential Information. Executive acknowledges that, by reason of Executive’s
employment by and service to the Company, Executive has had and will continue to have access to
confidential information of the Company and its Affiliates, including information and knowledge
pertaining to products and services offered, innovations, designs, ideas, plans, trade secrets,
proprietary information, distribution and sales methods and systems, sales and profit figures,
customer and client lists, and relationships between the Company and its Affiliates and other
distributors, customers, clients, suppliers and others who have business dealings with the Company
and its Affiliates (“Confidential Information”). Executive acknowledges that such Confidential
Information is a valuable and unique asset of the Company, and Executive covenants that (except in
connection with the good faith performance of his duties while employed by the Company) Executive
will not, either during or after Executive’s employment by the Company, disclose any such
Confidential Information to any Person for any reason whatsoever without the prior written
authorization of the Company, unless such information is in the public domain through no fault of
Executive or except as may be required by law or in a judicial or administrative proceeding.
Notwithstanding anything to the contrary herein, each of the parties (and each employee,
representative, or other agent of such parties) may disclose to any Person, without limitation of
any kind, the federal income tax treatment and federal income tax structure of the transactions
contemplated hereby and all materials (including opinions or other tax analyses) that are provided
to such party relating to such tax treatment and tax structure.

     9. Restrictive Covenants.

          (a) Covenant Not to Compete.

               (i) Executive agrees that, for a period of eighteen (18) months after the Termination Date
(the “Non-Compete Period”), Executive will not, at any time, directly or indirectly, engage in, or
have any interest on behalf of himself or others in any person or business other than the Company
(whether as an employee, officer, director, agent, security holder, creditor, partner, joint
venturer, beneficiary under a trust, investor, consultant or otherwise) that engages in similar
business activities to the Company in a particular market and product line, and in the specific
geographic areas in which the Company is engaged or has been engaged in the preceding twelve (12)
months for that particular market and product line (the “Business Activities”).

6

 

               (ii) Notwithstanding the foregoing, Executive may (A) engage, participate or invest in, or be
employed by, an entity that is engaged in the Business Activities (a “Competing Entity”) so long
as (1) the Annual Revenues derived by the Company from the Business Activities in which the
Competing Entity is engaged do not exceed $50 million in the aggregate and (2) the Annual Revenues
derived by the Competing Entity from the Business Activities do not exceed $50 million in the
aggregate; (B) engage, participate or invest in, or be employed by, a Competing Entity so long as
the Business Activities for which Executive has oversight do not exceed five percent (5%) of the
total Annual Revenues of such Competing Entity; or (C) acquire solely as an investment not more
than 2% of any class of securities of any competing entity if such class of securities is listed on
a national securities exchange or on the Nasdaq system, so long as Executive remains a passive
investor in such entity. For purposes of this Section 9(a)(ii), the term “Annual Revenues” shall
mean annual revenues for the most recently completed fiscal year.

          (b) Hiring of Employees. During the Non-Compete Period, the Executive agrees that
Executive will not directly or indirectly solicit for employment, or hire or offer employment to,
(i) any employee of the Company unless the Company first terminates the employment of such
employee, or (ii) any person who at any time during the one hundred eighty (180) day period prior
to the Termination Date was an employee of the Company.

          (c) Non-Solicitation. Executive hereby agrees that, during the Non-Compete Period,
Executive will not directly or indirectly call on or solicit for the purpose of diverting or taking
away from the Company (including, by divulging any Confidential Information to any competitor or
potential competitor of the Company) any person or entity who is at the Termination Date, or at any
time during the twelve (12) month period prior to the Termination Date had been, a customer of the
Company with whom the Executive had direct personal contact as a representative of the Company or a
potential customer whose identity is known to Executive at the Termination Date as one whom the
Company was actively soliciting as a potential customer within six months prior to the Termination
Date.

          (d) Return of Company Property. Upon a Termination of Employment Executive will
deliver to the person designated by the Company all originals and copies of all documents and
property of the Company in Executive’s possession, under Executive’s control, or to which Executive
may have access. The Executive will not reproduce or appropriate for Executive’s own use, or for
the use of others, any Confidential Information.

     10. Equitable and Other Relief; Consent to Jurisdiction of Pennsylvania Courts.

          (a) Executive acknowledges that the restrictions contained in Sections 8 and 9 are reasonable
and necessary to protect the legitimate interests of the Company and its Affiliates, that the
Company would not have entered into this Agreement in the absence of such restrictions, and that
any violation of any provision of that Section will result in irreparable injury to the Company.
Executive represents and acknowledges that (i) Executive has been advised by the Company to consult
Executive’s own legal counsel in respect of this Agreement and (ii) Executive has had full opportunity, prior to execution of this Agreement, to review
thoroughly this Agreement with Executive’s counsel.

7

 

          (b) Executive agrees that the Company shall be entitled to preliminary and permanent
injunctive relief, without the necessity of proving actual damages, as well as an equitable
accounting of all earnings, profits and other benefits arising from any violation of Sections 8 or
9, which rights shall be cumulative and in addition to any other rights or remedies to which the
Company may be entitled under applicable law. Without limiting the foregoing, Executive also
agrees that payment of the compensation and benefits payable under Section 4 may be automatically
ceased in the event of a material breach of the covenants of Sections 8 or 9, provided the Company
gives Executive written notice of such breach, specifying in reasonable detail the circumstances
constituting such material breach.

          (c) Executive irrevocably and unconditionally (i) agrees that any suit, action or other legal
proceeding arising out of Sections 8 or 9 hereof, including any action commenced by the Company for
preliminary and permanent injunctive relief or other equitable relief, may be brought in a United
States District Court in Pennsylvania, or if such court does not have jurisdiction or will not
accept jurisdiction, in any court of general jurisdiction in or around Philadelphia, Pennsylvania,
(ii) consents to the non-exclusive jurisdiction of any such court in any such suit, action or
proceeding, and (iii) waives any objection which Executive may have to the laying of venue of any
such suit, action or proceeding in any such court. Executive also irrevocably and unconditionally
consents to receive service of any process, pleadings, notices or other papers in a manner provided
for in Section 14 for the giving of notices.

     11. Enforcement. It is the intent of the parties that Executive not be required to
incur any expenses associated with the enforcement of Executive’s rights under this Agreement by
arbitration, litigation or other legal action, because the cost and expense thereof would
substantially detract from the benefits intended to be extended to Executive hereunder.
Accordingly, the Company will pay Executive the amount necessary to reimburse Executive in full for
all expenses (including all attorneys’ fees and legal expenses) incurred by Executive in attempting
to enforce any of the obligations of the Company under this Agreement, without regard to outcome,
unless the lawsuit brought by Executive is determined to be frivolous by a court of final
jurisdiction.

     12. No Obligation to Mitigate Company’s Obligations. Executive will not be required
to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other
employment or otherwise, nor shall the amount of any payment or benefit provided for herein be
reduced by any compensation earned by other employment or otherwise, except to the extent provided
in Subsections 4(f) and 4(g).

     13. No Set-Off. Except as provided in Sections 7 and 10(b), the Company’s obligation
to make the payments, and otherwise perform its obligations, provided for in this Agreement shall
not be diminished or delayed by reason of any set-off, counterclaim, recoupment or similar claim
which the Company may have against Executive or others.

     14. Notices. All notices and other communications given pursuant to or in connection
with this Agreement shall be in writing and delivered (which may be by telefax or other
electronic transmission) to a party at the following address, or to such other address as such
party may hereafter specify by notice to the other party:

8

 

If to the Company, to:

Teleflex Incorporated

155 S. Limerick Road

Limerick, PA 19468

Attention: General Counsel

If to Executive, to:

Kevin K. Gordon

            
           
            
           
              

  
             
           
            
           
           

     15. Governing Law. This Agreement will be governed by the law of Pennsylvania,
excluding any conflicts or choice of law rule or principle that might otherwise refer to the
substantive law of another jurisdiction for the construction, or determination of the validity or
effect, of this Agreement.

     16. Parties in Interest. This Agreement, including specifically the covenants of
Sections 8 and 9, will be binding upon and inure to the benefit of the parties and their respective
heirs, successors and assigns.

     17. Entire Agreement. This Agreement and the Change of Control Severance Agreement
contain the entire agreement between the parties with respect to the right of Executive to receive
severance compensation upon the termination of his Employment, and such Agreements supersede any
prior agreements or understandings between the parties relating to the subject matter of the Change
of Control Severance Agreement or this Agreement.

     18. Amendment or Modification. No amendment or modification of or supplement to this
Agreement will be effective unless it is in writing and duly executed by the party to be charged
thereunder.

     19. Construction. The following principles of construction will apply to this
Agreement:

          (a) Unless otherwise expressly stated in connection therewith, a reference in this Agreement
to a “Section,” “Exhibit” or “party” refers to a Section of, or an Exhibit or a party to, this
Agreement.

          (b) The word “including” means “including without limitation.”

     20. Headings and Titles. The headings and titles of Sections and the like in this
Agreement are inserted for convenience of reference only, form no part of this Agreement and shall
not be considered for purposes of interpreting or construing any provision hereof.

9

 

     EXECUTED as of the date first above written.

	 	 	 	 	 
	 	TELEFLEX INCORPORATED

 	 
	 	By:  	     /s/ Jeffrey P. Black
 	 
	 	 	     Jeffrey P. Black 	 
	 	 	     President and Chief Executive
     Officer 	 
	 
	 	 	 	 
	 	 	     /s/ Kevin K. Gordon
 	 
	 	 	Kevin K. Gordon 	 
	 	 	 
	 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]