Document:

exv10w5

 

Exhibit 10.5

GUARANTY

     This Guaranty (“Guaranty”) is entered into as of June 30, 2005, by Boundless Motor Sports
Racing, Inc., a Colorado corporation (“Guarantor”), for the benefit of Richard F. Murphy
(“Murphy”).

     WHEREAS, in order to induce Murphy to enter into that certain Asset Purchase Agreement, dated
as of the date hereof (the “Purchase Agreement”), by and among Volusia Speedway Park, Inc., a
Florida corporation, Murphy and Volusia Operations, LLC, a Florida limited liability company and a
wholly-owned subsidiary of Guarantor (“Purchaser”), Murphy has required that Guarantor guaranty the
payment of: any and all amounts owed by Purchaser to Murphy under that certain Promissory Note, of
even date herewith, in the original principal amount of $2,000,000 (the “Note”), which Note was
issued by Purchaser to Murphy in connection with the Purchase Agreement; and

     WHEREAS, Guarantor will derive a specific benefit from the Purchase Agreement and desires to
guarantee the payment of: any and all amounts owed by Purchaser under the Note (collectively, the
“Obligations”);

     NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Guarantor hereby guarantees to Murphy the payment of all Obligations, on the
following terms:

     1. Continuing Guaranty. Upon the occurrence of an event of default (as provided for
in the Note), Guarantor hereby guarantees and promises to pay on written demand to Murphy, in
lawful money of the United States, all of the Obligations. This Guaranty is given in consideration
for credit and other financial accommodations made by Murphy to Purchaser.

     2. Waivers. Except as provided in Section 1 above, Guarantor hereby waives:

          (a) presentment for payment;

          (b) notice of dishonor, demand, protest, and notice thereof as to any instrument, and all
other notices and demands to which Guarantor might be entitled;

          (c) any right to require Murphy to institute suit against, or to exhaust its rights and
remedies against, Purchaser or any other person, or to proceed against any property of any kind
which secures all or any part of the Obligations, or to exercise any right of offset or other right
with respect to any reserves, credits or deposit accounts held by or maintained with Murphy or any
indebtedness of Murphy to Purchaser, or to exercise any other right or power, or pursue any other
remedy Murphy may have;

          (d) any defense arising by reason of any failure of Murphy to obtain, perfect, maintain or
keep in force any security interest in, or lien or encumbrance upon, any property of Purchaser or
any other person;

          (e) any defense based upon any failure of Murphy to give Guarantor notice of any sale or other
disposition of any property securing any or all of the Obligations, or any defects

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in any such
notice that may be given, or any failure of Murphy to comply with any provision of applicable law
in enforcing any security interest in or lien upon any property securing any or all
of the Obligations including, but not limited to, any failure by Murphy to dispose of any
property securing any or all of the Obligations in a commercially reasonable manner;

          (f) any defense based upon or arising out of any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding commenced by or against
Purchaser or any other guarantor or any endorser, co-maker or other person, including without
limitation any discharge of, or bar against collecting, any of the Obligations (including without
limitation any interest thereon), in or as a result of any such proceeding; and

          (g) the benefit of any and all statutes of limitation with respect to any action based upon,
arising out of or related to this Guaranty.

If any claim is ever made upon Murphy for repayment or recovery of any amount or amounts received
by Murphy in payment of or on account of any of the Obligations, because of any claim that any such
payment constituted a preferential transfer or fraudulent conveyance, or for any other reason
whatsoever, and Murphy repays all or part of said amount by reason of any judgment, decree or order
of any court or administrative body having jurisdiction over Murphy or any of its property, or by
reason of any settlement or compromise of any such claim effected by Murphy with any such claimant
(including without limitation Purchaser), then and in any such event, Guarantor agrees that any
such judgment, decree, order, settlement and compromise shall be binding upon Guarantor,
notwithstanding any revocation or release of this Guaranty or the cancellation of any note or other
instrument evidencing any of the Obligations, or any release of any of the Obligations, and the
Guarantor shall be and remain liable to Murphy under this Guaranty for the amount so repaid or
recovered, to the same extent as if such amount had never originally been received by Murphy, and
the provisions of this sentence shall survive, and continue in effect, notwithstanding any
revocation or release of this Guaranty.

     3. Consents. Guarantor hereby consents and agrees that, without notice to or by
Guarantor and without affecting or impairing in any way the obligations or liability of Guarantor
hereunder, Murphy may, from time to time before or after revocation of this Guaranty, do any one or
more of the following in Murphy’s sole and absolute discretion: (a) accelerate, accept partial
payments of, compromise or settle, renew, extend the time for the payment, discharge, or
performance of, refuse to enforce, and release all or any parties to, any or all of the
Obligations; (b) grant any other indulgence to Purchaser or any other person in respect of any or
all of the Obligations or any other matter; (c) accept, release, waive, surrender, enforce,
exchange, modify, impair, or extend the time for the performance, discharge, or payment of, any and
all property of any kind securing any or all of the Obligations or any guaranty of any or all of
the Obligations, or on which Murphy at any time may have a lien, or refuse to enforce its rights or
make any compromise or settlement or agreement therefor in respect of any or all of such property;
(d) substitute or add, or take any action or omit to take any action which results in the release
of, any one or more endorsers or guarantors of all or any part of the Obligations, including,
without limitation one or more parties to this Guaranty, regardless of any destruction or
impairment of any right of contribution or other right of Guarantor; (e) amend, alter or change in
any respect whatsoever any term or provision relating to any or all of the Obligations, including
the rate of interest thereon; (f) apply any sums received from Purchaser, any other guarantor,
endorser, or co-signer, or from the disposition of any collateral or security, to any indebtedness
whatsoever owing from such person or secured by such collateral or security, in such manner and
order as

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Murphy determines in its sole discretion, and regardless of whether such indebtedness is
part of the Obligation, is secured, or is due and payable; (g) apply any sums received from
Guarantor or
from the disposition of any collateral or security securing the obligations of Guarantor, to
any of the Obligations in such manner and order as Murphy determines in its sole discretion,
regardless of whether or not such Obligations is secured or is due and payable. Guarantor consents
and agrees that Murphy shall be under no obligation to marshal any assets in favor of Guarantor, or
against or in payment of any or all of the Obligations. Without limiting the generality of the
foregoing, Murphy shall have no obligation to monitor, verify, audit, examine, or obtain or
maintain any insurance with respect to, any property securing any or all of the Obligations.

     4. Representations and Warranties. Guarantor hereby represents and warrants that (a)
it is in Guarantor’s direct interest to assist Purchaser in procuring credit, because Purchaser is
an affiliate of Guarantor and has a direct business relationship with Guarantor, (b) this Guaranty
has been duly and validly authorized, executed and delivered and constitutes the valid and binding
obligation of Guarantor, enforceable in accordance with its terms, and (c) the execution and
delivery of this Guaranty does not violate or constitute a default under (with or without the
giving of notice, the passage of time, or both) any order, judgment, decree, instrument or
agreement to which Guarantor is a party or by which it or its assets are affected or bound.

     5. Costs. Whether or not suit be instituted, Guarantor agrees to reimburse Murphy on
demand for all reasonable attorneys’ fees and all other reasonable costs and expenses incurred by
Murphy in enforcing this Guaranty, or arising out of or relating in any way to this Guaranty. In
the event either Murphy or Guarantor files any lawsuit against the other predicated on a breach of
this Guaranty, the prevailing party in such action shall be entitled to recover its reasonable
attorneys’ fees and costs of suit from the non-prevailing party.

     6. Notices. Any notice which a party shall be required or shall desire to give to the
other hereunder shall be given as provided in the Purchase Agreement.

     7. Severability. If any provision of this Guaranty or the application thereof to any
party or circumstance is held invalid, void, inoperative or unenforceable, the remainder of this
Guaranty and the application of such provision to other parties or circumstances shall not be
affected thereby, the provisions of this Guaranty being severable in any such instance.

     8. General Provisions. Murphy shall have the right to seek recourse against Guarantor
to the full extent provided for herein and in any other instrument or agreement evidencing
obligations of Guarantor to Murphy, and against Purchaser to the full extent of the Obligations.
No election in one form of action or proceeding, or against any party, or on any obligation, shall
constitute a waiver of Murphy’s right to proceed in any other form of action or proceeding or
against any other party. The failure of Murphy to enforce any of the provisions of this Guaranty
at any time or for any period of time shall not be construed to be a waiver of any such provision
or the right thereafter to enforce the same. All remedies hereunder shall be cumulative and shall
be in addition to all rights, powers and remedies given to Murphy by law or under any other
instrument or agreement. Time is of the essence in the performance by Guarantor of each and every
obligation under this Guaranty. This Guaranty is the entire and only agreement between Guarantor
and Murphy with respect to the guaranty of the Obligations of Purchaser by Guarantor, and all
representations, warranties, agreements, or undertakings heretofore or contemporaneously made,
which are not set forth herein, are superseded hereby. No course of dealings between the parties,
no usage of the trade, and no parol or extrinsic evidence of any nature shall be used or be
relevant to supplement or explain or modify any term

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or provision of this Guaranty. There are no
conditions to the full effectiveness of this Guaranty. The terms and provisions hereof may not be
waived, altered, modified, or amended except in a
writing executed by Guarantor and a duly authorized officer of Murphy. All rights, benefits
and privileges hereunder shall inure to the benefit of and be enforceable by Murphy and its
successors and assigns and shall be binding upon Guarantor and his heirs, executors,
administrators, personal representatives, successors and assigns. Neither the bankruptcy of
Guarantor nor notice thereof to Murphy shall terminate this Guaranty, and, notwithstanding such
bankruptcy, this Guaranty shall continue in full force and effect with respect to all Obligations,
including without limitation Obligations incurred or created after the bankruptcy of Guarantor and
notice thereof to Murphy. Section headings are used herein for convenience only. Guarantor
acknowledges that the same may not describe completely the subject matter of the applicable
Section, and the same shall not be used in any manner to construe, limit, define or interpret any
term or provision hereof.

     9. Choice of Law. THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF FLORIDA, WITHOUT REGARD TO ITS CHOICE OF LAWS PROVISIONS.

     IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first above written.

	 	 	 	 	 
	 	BOUNDLESS MOTOR SPORTS RACING, INC.

 	 
	 	By:  	/s/ Brian Carter
 	 
	 	 	Brian Carter, Vice President 	 
	 	 	 	 
	 

4LEHMAN BROTHERS HOLDINGS INC.

                     Absolute Buffer Notes Due July 7, 2008,
                 Linked to the Dow Jones EURO STOXX 50(SM) Index

Number R-1                                                           $14,730,000
ISIN US 524908NJ55                                               CUSIP 524908NJ5

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 Stated 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 $1,000 principal
amount of the Securities represented hereby, an amount equal to the Maturity
Payment Amount. THE SECURITIES REPRESENTED HEREBY SHALL NOT BEAR ANY INTEREST.

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

                                                                               2

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET
FORTH ON THE REVERSE HEREOF WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

         "EURO STOXX" and "EURO STOXX 50" are trademarks of STOXX Limited and
"Dow Jones EURO STOXX 50 Index" is a service mark of Dow Jones & Company, Inc.
and have been licensed for use by the Company. The Securities, linked to the
performance of the Dow Jones EURO STOXX 50 Index, are not sponsored, endorsed,
sold or promoted by STOXX Limited or Dow Jones & Company, Inc. and STOXX Limited
and Dow Jones & Company, Inc. 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 Vice Chairman, its
President, 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:   July 7, 2005                   LEHMAN BROTHERS HOLDINGS INC.

                                        By:   /s/ James J. Killerlane III
                                            --------------------------------
                                            James J. Killerlane III
                                            Vice President

                                        Attest:   /s/ Jin Lee
                                                ----------------------------
                                                Jin Lee
                                                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.

Dated: July 7, 2005

CITIBANK, N.A.
  as Trustee

By:   /s/  Wafaa Orfy
    --------------------------------
    Name: Wafaa Orfy
    Title:  Authorized Signatory

                                                                               4

                               Reverse of Security

         This Security is one of a duly authorized series of Securities of the
Company designated as Absolute Buffer Notes Due July 7, 2008, Linked to the Dow
Jones EURO STOXX 50(SM) Index (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 Maturity Payment Amount, at the request of the Trustee, shall be
determined by the Calculation Agent pursuant to the Calculation Agency
Agreement.

         All percentages resulting from any calculation with respect to the
Securities will be rounded at the Calculation Agent's discretion.

         The Trustee shall fully rely on the determination by the Calculation
Agent of the Maturity Payment Amount and shall have no duty to make any such
determination.

         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 the Maturity Payment Amount calculated as though the
date of acceleration was the Stated Maturity Date and the date five Business
Days prior thereto was the Valuation Date.

         The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than 66 2/3% 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

                                                                               5

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 $1,000 and any whole
multiples of $1,000.

         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
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

                                                                               6

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 intends to treat, and by purchasing this Security, the
holder agrees to treat, for all tax purposes, this Security as a financial
contract for cash settlement, rather than as a debt instrument.

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

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

         "AMEX" shall mean the American Stock Exchange LLC.

         "Business Day", notwithstanding any provision in the Indenture, shall
mean any day that is not a Saturday, a Sunday or a day on which the NYSE, Nasdaq
or AMEX is not open for trading or banking institutions or trust companies in
the City of New York are authorized or obligated by law or executive order to
close.

         "Calculation Agency Agreement" shall mean the Calculation Agency
Agreement, dated as of July 7, 2005, 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 Maturity Payment Amount, which term shall, unless the context otherwise
requires, include its successors and assigns. The initial Calculation Agent
shall be Lehman Brothers Inc.

         "Close of Trading" shall mean, in respect of any Relevant Exchange, the
scheduled weekday closing time on a day on which the Relevant Exchange is
scheduled to be open for trading for its respective regular trading session,
without regard to after hours or any other trading outside of the regular
trading session hours.

         "Closing Index Level" shall mean, with respect to any day, in the case
of the Index or the Successor Index, the closing level of the Index or the
Successor Index, as the case may be, as reported by STOXX Limited or the
publisher of the Successor Index, as the case may be, on such day or as
determined by the Calculation Agent pursuant to the Calculation Agency
Agreement.

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

         "Exchange Business Day" shall mean any day on which the Index or the
Successor Index is published by its publisher or is otherwise determined by the
Calculation Agent pursuant to the Calculation Agency Agreement.

                                                                               7

         "Final Index Level" shall equal the Closing Index Level on the
Valuation Date.

         "Final Index Return" shall equal the following:

                     Final Index Level - Initial Index Level
                     ---------------------------------------
                               Initial Index Level

         "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" shall mean the Dow Jones EURO STOXX 50(SM) Index, as
calculated, published and disseminated by STOXX Limited.

         "Initial Index Level" shall equal 3178.56, the Closing Index Level on
June 29, 2005.

         "Market Disruption Event", with respect to the Index or any Successor
Index shall mean any of the following events has occurred on any day as
determined by the Calculation Agent in its sole discretion:

     (1) A material suspension of or limitation imposed on trading relating to
     the securities that then comprise 20% or more of the Index or any Successor
     Index, by the Relevant Exchanges on which those securities are traded, at
     any time during the one-hour period that ends at the Close of Trading on
     such day, whether by reason of movements in price exceeding limits
     permitted by that Relevant Exchange or otherwise.

     (2) A material suspension of, or limitation imposed on, trading in futures
     or options contracts relating to the Index or any Successor Index by the
     primary exchange on which those futures or options contracts are traded, at
     any time during the one-hour period that ends at the Close of Trading on
     such day, whether by reason of movements in price exceeding limits
     permitted by the exchanges or otherwise.

     (3) Any event, other than an early closure, that disrupts or impairs the
     ability of market participants in general to effect transactions in, or
     obtain market values for, the securities that then comprise 20% or more of
     the Index or any Successor Index on the Relevant Exchanges on which those
     securities are traded, at any time during the one-hour period that ends at
     the Close of Trading on that day.

     (4) Any event, other than an early closure, that disrupts or impairs the
     ability of market participants in general to effect transactions in, or
     obtain market values for, the futures or options contracts relating to the
     Index or any Successor Index on the primary exchange or quotation system on
     which those futures or options contracts are traded at any time during the
     one-hour period that ends at the Close of Trading on that day.

     (5) The closure of the Relevant Exchanges on which securities that then
     comprise 20% or more of the Index or any Successor Index are traded or on
     which futures or

                                                                               8

     options contracts relating to the Index or any Successor Index are traded
     prior to its scheduled closing time unless the earlier closing time is
     announced by the Relevant Exchanges at least one hour prior to the earlier
     of (i) the actual closing time for the regular trading session on the
     Relevant Exchanges and (ii) the submission deadline for orders to be
     entered into the Relevant Exchanges for execution at the Close of Trading
     on that day.

For purposes of determining whether a Market Disruption Event has occurred, the
relevant percentage contribution of a security to the level of the Index or any
Successor Index will be based on a comparison of (x) the portion of the level of
the Index or Successor Index attributable to that security and (y) the overall
level of the Index or Successor Index, in each case immediately before the
occurrence of the Market Disruption Event.

         "Maturity Payment Amount" for each $1,000 principal amount of
Securities, shall equal:

          o    If the Final Index Return is not negative, $1,000 + ($1,000 x the
               Upside Participation Rate x the Final Index Return).

          o    If the Final Index Return is negative and the Final Index Level
               is equal to or greater than the Threshold Level, $1,000 + ($1,000
               x the absolute value of the Final Index Return).

          o    If the Final Index Return is negative and the Final Index Level
               is less than the Threshold Level, $1,000 + ($1,000 x the Final
               Index Return).

         If requested by the Trustee, the Maturity Payment Amount shall be
determined by the Calculation Agent pursuant to the Calculation Agency
Agreement.

         "Nasdaq" shall mean The Nasdaq Stock Market, Inc.

         "NYSE" shall mean The New York Stock Exchange, Inc.

         "Place of Payment" shall mean the place or places where the principal
of (and premium, if any) and interest, if any, on the Securities are payable.

         "Relevant Exchange" shall mean, for any security (or any combination
thereof then underlying the 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.

         "Stated Maturity Date" shall mean July 7, 2008 (or if July 7, 2008 is
not a Business Day, on the next Business Day); provided, that if a Market
Disruption Event occurs on

                                                                               9

the Valuation Date, the Stated Maturity Date shall be the fifth Business Day
following the date that the Final Index Level on the postponed Valuation Date is
determined.

         "Successor Index" shall mean such successor or substitute index as the
Calculation Agent may select pursuant to the Calculation Agency Agreement upon
discontinuance of the Index.

         "Threshold Level" shall mean 2542.848, as it may be adjusted from time
to time by the Calculation Agent to the extent it believes appropriate, in a
manner consistent with the adjustments to the method of calculation of the Index
or a Successor Index described in the Calculation Agency Agreement.

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

         "Upside Participation Rate" shall mean 130%.

         "Valuation Date" shall mean June 27, 2008; provided, that if a Market
Disruption Event occurs on such day, then the Valuation Date shall be the next
following Exchange Business Day on which no Market Disruption Event occurs;
provided, however, if a Market Disruption Event occurs on each of the eight
Exchange Business Days following the originally scheduled Valuation Date, then
(a) that eighth Exchange Business Day shall be deemed the Valuation Date and (b)
the Calculation Agent shall determine the Final Index Level based upon its good
faith estimate of the level of the Index on that eighth Exchange Business Day.

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

                        --------------------------------

         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:

<TABLE>

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         Act
            of Survivorship and not as              --------------------------------------
            tenants in common                                      (State)
</TABLE>

         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-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]