Document:

Exhibit 4.2

 

THE
WALT DISNEY COMPANY

 

OFFICERS’
CERTIFICATE

 

Pursuant to Sections 2.1 and 2.3(a) of the
Indenture, dated as of September 24, 2001 (the “Indenture”), between The
Walt Disney Company, a Delaware corporation (the “Company”), and Wells Fargo Bank,
National Association, a national banking association, as trustee (the “Trustee”),
the undersigned Christine M. McCarthy and David K. Thompson, the Executive Vice
President-Corporate Real Estate, Sourcing, Alliances and Treasurer and Senior
Vice President-Deputy General Counsel-Corporate and Assistant Secretary of the
Company, respectively, hereby certify on behalf of the Company as follows:

 

(1) 
Authorization. The establishment of a
series of medium-term notes of the Company (the “Medium-Term Notes”) has been
approved and authorized in accordance with the provisions of the
Indenture.  The forms of Medium-Term
Notes attached hereto as Exhibits A, B, C and D have been approved and
authorized in accordance with the provisions of the Indenture.

 

(2) 
Compliance with Conditions Precedent.  All conditions precedent provided for in the
Indenture relating to the establishment of new forms and terms of the
Medium-Term Notes have been complied with.

 

(3)  Terms.  The terms of the series of Securities
established pursuant to this Officers’ Certificate shall be as follows:

 

(a)  Title.  The title of the series of Securities is the “Medium-Term
Notes, Series E” (the “Notes”).

 

(b) Aggregate Principal
Amount.  Subject to being
increased by the Company from time to time as shall be stated in a subsequent
Officers’ Certificate, the aggregate principal amount of the Notes which may be
authenticated and delivered pursuant to the Indenture (except for Notes (i) authenticated
and delivered upon registration or transfer of, or in exchange for, or in lieu
of, other Notes pursuant to Sections 2.8, 2.9, 2.11, 3.6, 9.5 and 10.3 of the
Indenture or (ii) which, pursuant to Section 2.4 of the Indenture,
are deemed never to have been authenticated and delivered) is $5,000,000,000 or
the equivalent thereof at the date of issue in one or more foreign or composite
currencies or currency units. The Company may from time to time, without the
consent of existing holders of Notes, issue additional Notes having the same
terms and conditions (including maturity and interest payment terms) as
previously issued Notes in all respects, 

 

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except for issue date, issue price and the first
payment of interest.  Additional Notes
issued in this manner will be fungible with the previously issued Notes to the
extent specified in the applicable Pricing Supplement.

 

(c)  Registered Securities in
Definitive or Book-Entry Form; Global Security; Depository.  Each Note will be issued in fully registered
book-entry form (a “Book-Entry Note”) or definitive form (a “Definitive Note”),
as set forth in the pricing supplement to the Prospectus and Prospectus
Supplement relating to such Note (the “Pricing Supplement”).  Upon issuance, all Notes in book-entry form
having the same original issue date, Stated Maturity and otherwise having
identical terms and provisions will be represented by a single global security
(each a “Global Security”); provided, however, that if by reason
of the foregoing a single Global Security would exceed $500,000,000 in
aggregate principal amount, one Global Security will be issued to represent
each $500,000,000 of aggregate principal amount and an additional Global
Security will be issued to represent any remaining principal amount.  The initial Depositary with respect to any
Global Security will be The Depository Trust Company, New York, New York.  So long as the Depositary for a Global
Security, or its nominee, is the registered owner of the Global Security, the
Depositary or its nominee, as the case may be, will be considered the sole
owner or holder of the Notes in book-entry form represented by such Global
Security for all purposes under the Indenture. 
Book-Entry Notes will not be exchangeable for Definitive Notes except
that, if the Depositary with respect to any Global Security or Securities is at
any time unwilling or unable to continue as Depositary and a successor
Depositary is not appointed by the Company within 90 days, the Company will
issue Definitive Notes in exchange for the Book-Entry Notes represented by any
such Global Security or Securities.  In
addition, the Company may at any time and in its sole discretion determine not
to have a Global Security or Securities, and, in such event, will issue
Definitive Notes in exchange for the Book Entry Notes represented by such
Global Security or Securities in accordance with the provisions of Section 2.8
of the Indenture.

 

(d)  Persons to Whom Interest
Payable.  Unless otherwise
specified in a Note or an applicable Pricing Supplement, interest will be
payable to the person in whose name a Note is registered at the close of
business (whether or not a Business Day) on the Regular Record Date with
respect to such payment of interest; provided, however, that interest payable
at Maturity will be payable to the person to whom principal is payable.

 

(e)  Business Day. “Business
Day” means any day, other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which commercial banks are authorized or required by law,
regulation or executive order to close in The City of New York; provided,
however, that with 

 

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respect to Notes the payment of which is to be made in
a Denominated Currency (as defined below) other than U.S. dollars, such day is
also not a day on which commercial banks are authorized or required by law,
regulation or executive order to close in the Principal Financial Center (as
defined below) of the country of such Denominated Currency; provided, however,
that, with respect to LIBOR Notes only, such day is also a London Business Day
(as defined below); and provided,  further, that with respect to
EURIBOR Notes and notes denominated in euros only, such day is also a TARGET
Business Day (as defined below).  “London
Business Day” means any day on which commercial banks are open for business
(including dealings in the LIBOR currency) in London.  “TARGET Business Day” means any day on which
the Trans-European Automated Real-Time Gross Settlement Express Transfer
(TARGET 2) System, which utilizes a single shared platform and which was
launched on November 19, 2007, is open. 
“U.S. Government Securities Business Day” means any day except for
Saturday, Sunday or a day on which the Bond Market Association recommends that
the fixed income departments of its members be closed for the entire day for
purposes of trading in U.S. government securities.  “Principal Financial Center” means, as
applicable, (i) the capital city of the country issuing the payment
currency, or (ii) the capital city of the country to which the LIBOR
currency relates; provided, however, that with respect to United States
dollars, Australian dollars, Canadian dollars, euros, South African rand and
Swiss francs, the “Principal Financial Center” shall be The City of New York,
Sydney, Toronto (solely in the case of the payment currency), London (solely in
the case of the LIBOR currency), Johannesburg and Zurich, respectively.

 

(f)  Stated Maturity; Extension of Maturity.

 

(i)            The Notes may be issued on different dates and the principal amount of
the Notes may be payable on different dates, as shall be set forth in the Note
or an applicable Pricing Supplement; provided that the date on which the
principal of any Note is payable will be on a Business Day no less than nine
months from the date of issue stated on the face thereof.

 

(ii)           The Pricing Supplement relating to each Note will indicate whether the
Company has the option to extend the Stated Maturity of such Note for one or
more whole year periods (each an “Extension Period”) up to but not beyond the
date (the “Final Maturity Date”) set forth in such Pricing Supplement and the
basis or formula, if any, for setting the interest rate or the Spread or Spread
Multiplier (as defined below), as the case may be, applicable to any such
Extension Period.

 

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The Company may exercise
such option with respect to a Note by notifying the Trustee of such exercise at
least 45 but not more than 60 days prior to the Stated Maturity of such Note in
effect prior to the exercise of such option (the “Original Stated Maturity Date”).  No later than 40 days prior to the Original
Stated Maturity Date, the Trustee will mail to the holder of such Note a notice
(the “Extension Notice”) relating to such Extension Period, first class,
postage prepaid, setting forth (i) the election of the Company to extend
the Stated Maturity of such Note, (ii) the new Stated Maturity, (iii) in
the case of a Fixed Rate Note, the interest rate applicable to the Extension
Period or, in the case of a Floating Rate Note, the Spread or Spread Multiplier
applicable to the Extension Period, and (iv) the provisions, if any, for
redemption during the Extension Period, including the date or dates on which or
the period or periods during which and the price or prices at which such
redemption may occur during the Extension Period. Upon the mailing by the
Trustee of an Extension Notice to the holder of a Note, the Stated Maturity of
such Note shall be extended automatically as set forth in the Extension Notice,
and, except as modified by the Extension Notice and as described in the next
paragraph, such Note will have the same terms as prior to the mailing of such
Extension Notice.

 

Notwithstanding the
foregoing, not later than 20 days prior to the Original Stated Maturity Date
for a Note, the Company may, at its option, revoke the interest rate, in the
case of a Fixed Rate Note, or the Spread or Spread Multiplier, in the case of a
Floating Rate Note, provided for in the Extension Notice and establish a higher
interest rate, in the case of a Fixed Rate Note, or a higher Spread or Spread
Multiplier, in the case of a Floating Rate Note, for the Extension Period by
mailing or causing the Trustee to mail notice of such higher interest rate or
higher Spread or Spread Multiplier, as the case may be, first class, postage
prepaid, to the holder of such Note. 
Such notice shall be irrevocable. 
All Notes with respect to which the Original Stated Maturity Date is
extended will bear such higher interest rate, in the case of a Fixed Rate Note,
or higher Spread or Spread Multiplier, in the case of a Floating Rate Note, for
the Extension Period.

 

If the Company elects to
extend the Stated Maturity of a Note, the holder of such Note may, if provided
for in the applicable Pricing Supplement, have the option to elect repurchase
of such Note by the Company on the Original Stated Maturity Date at a price
equal to the principal amount thereof plus accrued interest, if any, to such
date.  In order for a Note to be so
repurchased on the 

 

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Original Stated Maturity Date, the holder thereof must
follow the procedures set forth  under “Redemption
and Repurchase” in the Prospectus Supplement for repurchase at the option of the
holder, except that the period for delivery of the Note or notification to the
Trustee shall be at least 30 but not more than 35 Business Days prior to the
Original Stated Maturity Date and except that a holder who has tendered a Note
for repurchase pursuant to an extension notice may, by written notice to the
Trustee, revoke the tender for repayment until the close of business on the
tenth day prior to the Original Stated Maturity Date.

 

(g)           Rates of Interest; Interest
Payment Dates; Regular Record Dates; Accrual of Interest.

 

(i)            Rates of Interest.  Interest-bearing Notes will bear interest at
either a fixed rate (the “Fixed Rate Notes”) or a rate determined by reference
to one or more Base Rates (as defined below) which may be adjusted by a Spread
or Spread Multiplier (the “Floating Rate Notes”) specified in the applicable
Floating Rate Note or the applicable Pricing Supplement.  Discount Notes may be issued at significant
discounts from their principal amount payable at Stated Maturity and some
Discount Notes may be zero coupon Notes which will bear no interest, except in
the case of default in payment of principal upon acceleration or redemption (if
applicable), or may bear no interest for a specified period following the date
of issue.  Interest on each Fixed Rate
Note will be computed on the basis of a 360-day year of twelve 30-day months.

 

(ii)           Interest Payment Dates.  Unless otherwise specified in a Note and the
applicable Pricing Supplement, interest on Fixed Rate Notes will be payable
semiannually in arrears on February l and August 1 of each year,
commencing with the first Interest Payment Date next succeeding the date of
original issue, and at Maturity. Interest on Floating Rate Notes will be
payable in arrears on the Interest Payment Dates applicable to such Note and at
Maturity.  Notwithstanding the foregoing,
if the date of original issue of a Note is between a Regular Record Date and
the related Interest Payment Date, the first payment of interest on such Note
will be made on the Interest Payment Date immediately following the next
succeeding Regular Record Date to the registered holder on such next succeeding
Regular Record Date.

 

Except as provided below or
in the applicable Pricing Supplement, interest will be payable (1) in the
case of a Floating Rate Note which resets daily, weekly or monthly, other 

 

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than an Eleventh District Cost of Funds Rate Note (as
defined below), on the third Wednesday of each month or on the third Wednesday
of March, June, September and December of each year, as specified in
the applicable Floating Rate Note and in the applicable Pricing Supplement; (2) in
the case of an Eleventh District Cost of Funds Rate Note, on the first calendar
day of each March, June, September and December; (3) in the case of a
Floating Rate Note which resets quarterly, on the third Wednesday of March,
June, September and December of each year; (4) in the case of a
Floating Rate Note which resets semiannually, on the third Wednesday of each of
the two months specified in the Floating Rate Note and in the applicable
Pricing Supplement; and (5) in the case of a Floating Rate Note which
resets annually, on the third Wednesday of the month specified in the Floating
Rate Note and in the applicable Pricing Supplement; and, in each case, at
Maturity.

 

If any Interest Payment Date
(other than an Interest Payment Date occurring on the Maturity Date) for a
Floating Rate Note falls on a day that is not a Business Day with respect to
such Note, such Interest Payment Date will be postponed to the following day
that is a Business Day with respect to such Note, except that, in the case of a
LIBOR Note or a EURIBOR Note (or a Note for which LIBOR (as defined below) or
EURIBOR (as defined below) is the applicable Base Rate), if such Business Day
is in the next succeeding calendar month, such Interest Payment Date shall be
the immediately preceding day that is a Business Day with respect to such
Floating Rate Note.  If the Maturity of a
Floating Rate Note falls on a day that is not a Business Day with respect to
such Note, the payment of principal and interest may be made on the next
succeeding Business Day with respect to such Note, and no interest on such
payment shall accrue for the period from and after the Maturity.

 

If any Interest Payment Date
or Maturity of a Fixed Rate Note or if the Maturity of a Floating Rate Note
falls on a day that is not a Business Day with respect to such Fixed Rate Note
or Floating Rate Note, the payment due on such Interest Payment Date or at
Maturity will be made on the following day that is a Business Day with respect
to such Fixed Rate Note or Floating Rate Note as if it were made on the date
such payment was due and no interest shall accrue on the amount so payable for
the period from and after such Interest Payment Date or Maturity, as the case
may be.

 

(iii) Regular Record Dates. 
Unless otherwise specified in an applicable Pricing Supplement, with
respect to Fixed Rate Notes, 

 

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the Regular Record Dates for interest payable on each February l
and August 1 will be the immediately preceding January 15 and July 15
(whether or not a Business Day), respectively. 
Unless otherwise specified in a Floating Rate Note, the Regular Record Date
or Dates for interest payable on such Floating Rate Note will be the fifteenth
day (whether or not a Business Day) immediately preceding the related Interest
Payment Date or Dates.

 

(iv) Accrual of Interest. 
Unless otherwise specified in an applicable Pricing Supplement, each
Note will bear interest from the date of original issue at the rate per annum,
or, in the case of a Floating Rate Note, pursuant to the interest rate formula
stated therein, until the principal thereof is paid or made available for
payment.  Each interest payment shall be
the amount of interest accrued from and including the most recent Interest
Payment Date in respect of which interest has been paid or duly provided for
(or from and including the date of original issue if no interest has been paid
or duly provided for with respect to such Note) to but excluding the applicable
next succeeding Interest Payment Date or Maturity (an “Interest Accrual Period”).

 

(h)  Place of Payment;
Registration of Transfer and Exchange; Notices to Company.

 

(i)  Place of Payment. 
Payment of the principal of and interest on Definitive Notes will be
made at the office or agency of the Company maintained for that purpose,
initially designated to be the Corporate Trust Office of the Trustee in Los
Angeles, California, or at any additional offices or agencies designated by the
Company for such purpose; provided, however, that at the option
of the Company, payment of interest due (other than at Maturity) may be made by
check mailed to the address of the person entitled thereto as such address
shall appear in the register of Securities. 
Payments of principal and any interest on Notes in book-entry form
represented by a Global Security or Securities will be made by the Company
through the Trustee to the Depository or its nominee, as the case may be, as
the holder of the Global Security or Securities representing such Notes in
book-entry form.  Notwithstanding the
foregoing, the holder of any Note (if such holder holds $10,000,000 or more in
aggregate principal amount of the Notes) shall be entitled to receive payments
of interest on such Note by wire transfer of immediately available funds to the
account of the holder of such Note if appropriate wire transfer instructions
have been received in writing by the Trustee not less than 15 days prior to the
applicable Interest Payment Date.

 

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(ii)  Registration of Exchange and Transfer.  Definitive Notes may be presented for
exchange and registration of transfer at the office or agency of the Company
maintained for that purpose, initially designated to be the Corporate Trust
Office of the Trustee in Los Angeles, California, or at such additional offices
or agencies of any transfer agent hereafter designated by the Company for such
purpose.  Ownership of beneficial
interests in Notes in book-entry form represented by a Global Security or
Securities will be shown on, and the transfer of that ownership will be
effected only through, records maintained by the Depository and its
participants.  Owners of beneficial
interests in Notes in book-entry form represented by a Global Security or
Securities will not be considered the owners or holders of such Notes under the
Indenture.

 

(iii) Notices to Company. 
Notices and demands to or upon the Company in respect to the Notes and
the Indenture may be served at The Walt Disney Company, 500 S. Buena Vista
Street, Burbank, California 91521, Attention: Legal Department.

 

(i)  Optional Redemption.  If so provided in the Note or an applicable
Pricing Supplement, such Note may, prior to its Stated Maturity, be subject to
redemption, in whole or in part, at the option of the Company on the terms set
forth in the Note or the applicable Pricing Supplement, as the case may be.

 

(j)  Sinking Fund.  Unless otherwise specified in an applicable
Pricing Supplement, the Notes will not be subject to any sinking fund or
analogous provision.

 

(k)  Denominations.  Unless a different denomination is specified
in the applicable Pricing Supplement, the Notes are issuable in denominations
of U.S. $2,000 and any amount in excess thereof which is an integral multiple
of U.S. $1,000.

 

(l)  Principal and Interest
Payable in Dollars.  Unless
otherwise specified in a Note or an applicable Pricing Supplement providing for
payments of principal and interest to be made in one or more foreign or
composite currencies, the payment of the principal of and any interest on the
Notes will be payable in U.S. dollars.

 

(m)  Determination of Interest
on Floating Rate Notes.

 

(i)            Base Rates.  Unless otherwise specified in an applicable
Pricing Supplement, interest on a Floating Rate Note will 

 

8

 

be determined by reference to a “Base Rate,”
which may be one or more of the following: 
(l) the Commercial Paper Rate (as defined below), in which case
such Note will be a “Commercial Paper Rate Note”; (2) LIBOR, in which case
such Note will be a “LIBOR Note”; (3) the CD Rate (as defined below), in
which case such Note will be a “CD Rate Note”; (4) the Federal Funds Rate
(as defined below), in which case such Note will be a “Federal Funds Rate Note”;
(5) the Treasury Rate (as defined below), in which case such Note will be
a “Treasury Rate Note”; (6) the Prime Rate (as defined below), in which case
such Note will be a “Prime Rate Note”; (7) the CMT Rate (as defined
below), in which case such Note will be a “CMT Rate Note”; (8) the
Eleventh District Cost of Funds Rate (as defined below), in which case such
Note will be an “Eleventh District Cost of Funds Rate Note”; (9) EURIBOR
(as defined below), in which case such Note will be a EURIBOR Note; or (10) such
other Base Rate or interest rate formula as may be set forth in the applicable
Pricing Supplement.  In addition, a
Floating Rate Note may bear interest calculated by reference to the lowest of
two or more Base Rates determined in the same manner as the Base Rates are
determined for the types of Notes described above.  Each Floating Rate Note will specify the Base
Rate or Rates applicable thereto.

 

(ii)  Calculation of Rate by Reference to Base Rate and, as Applicable,
Spread, Spread Multiplier and Index Maturity. 
The interest rate on each Floating Rate Note will be
calculated by reference to the specified Base Rate or the lowest of two or more
specified Base Rates, in either case plus or minus the Spread, if any, or
multiplied by the Spread Multiplier, if any. The “Spread” is the number of
basis points to be added to or subtracted from the related Base Rate or Rates
applicable to such Floating Rate Note. 
The “Spread Multiplier” is the percentage of the related Base Rate or
Rates to be multiplied to determine the applicable interest rate on such
Floating Rate Note.  The “Index Maturity”
is the period to maturity of the instrument or obligation with respect to which
the related Base Rate or Rates are calculated. 
Each Floating Rate Note and the applicable Pricing Supplement will
specify the Index Maturity and the Spread or Spread Multiplier, if any,
applicable thereto.

 

(iii) Interest Reset Periods; Interest Reset Date.  Each Floating Rate Note and the applicable
Pricing Supplement will specify whether the rate of interest on such Floating
Rate Note will be reset daily, weekly, monthly, quarterly, semiannually or
annually (each, an “Interest Reset Date”) and the period between Interest 

 

9

 

Reset Dates (each, an “Interest Reset Period”).  Unless otherwise specified in a Floating Rate
Note and the applicable Pricing Supplement, the Interest Reset Date will be, in
the case of a Floating Rate Note which resets (l) daily, each Business
Day; (2) weekly, the Wednesday of each week (with the exception of weekly
reset Treasury Rate Notes, which reset the Tuesday of each week, except as
specified in paragraph (iv) below); (3) monthly, the third Wednesday
of each month, other than Eleventh District Cost of Funds Rate Notes, which
will reset the first calendar day of each month; (4) quarterly, the third
Wednesday of March, June, September and December of each year; (5) semiannually,
the third Wednesday of each of the two months specified in such Pricing
Supplement; and (6) annually, the third Wednesday of the month specified
in such Pricing Supplement.  If any
Interest Reset Date for any Floating Rate Note would otherwise be a day that is
not a Business Day, such Interest Reset Date will be postponed to the next
succeeding day that is a Business Day, except that in the case of a LIBOR Note
or a EURIBOR Note (or a Note for which LIBOR or EURIBOR is the applicable Base
Rate), if such Business Day is in the next succeeding calendar month, such
Interest Reset Date shall be the last Business Day in the preceding month.

 

(iv)  Interest Determination Date. 
The interest rate applicable to each Interest Reset Period commencing on
the Interest Reset Date or Dates with respect to such Interest Reset Period
will be the rate determined on the applicable “Interest Determination Date.”
Unless otherwise specified in an applicable Pricing Supplement, (a) the
Interest Determination Date with respect to a Commercial Paper Rate Note (the “Commercial
Paper Interest Determination Date”), a Federal Funds Rate Note (the “Federal
Funds Interest Determination Date”) and a Prime Rate Note (the “Prime Rate
Interest Determination Date”), will be the Business Day preceding each Interest
Reset Date, (b) the Interest Determination Date with respect to a CD Rate
Note (the “CD Interest Determination Date”) will be the second Business Day
preceding each Interest Reset Date, (c) the Interest Determination Date
with respect to a LIBOR Note (the “LIBOR Interest Determination Date”) will be
the second London Business Day preceding each Interest Reset Date, (d) the
Interest Determination Date with respect to a EURIBOR Note (the “EURIBOR
Interest Determination Date”) will be the second TARGET Business Day preceding
each Interest Reset Date, (e) the Interest Determination Date with respect
to an Eleventh District Cost of Funds Rate Note (the “Eleventh District Cost of
Funds Interest Determination Date”) will be the last working day of the month
immediately preceding each Interest 

 

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Reset Date on which the Federal Home Loan Bank of San
Francisco (the “FHLB of San Francisco”) publishes the Eleventh District Cost of
Funds Index and (f) the Interest Determination Date with respect to a CMT
Rate Note (the “CMT Interest Determination Date”) will be the second U.S.
Government Securities Business Day preceding each Interest Reset Date.  Unless otherwise specified in an applicable
Pricing Supplement, the Interest Determination Date with respect to a Treasury
Rate Note (the “Treasury Rate Interest Determination Date”), will be the day in
the week in which the Interest Reset Date falls on which day Treasury Bills (as
defined below) normally would be auctioned or, if no such auction is held for a
particular week, the first Business Day of that week; provided, however,
that if, as a result of a legal holiday, an auction is held on the Friday of
the week preceding the Interest Reset Date, the related Interest Determination
Date shall be such preceding Friday; and provided, further, that
if an auction shall fall on any Interest Reset Date, then the Interest Reset
Date shall instead be the first Business Day immediately following such
auction.  Unless otherwise specified in
the applicable Pricing Supplement, the Interest Determination Date pertaining
to a Note the interest rate of which is determined with reference to two or
more Base Rates will be the latest Business Day which is at least two Business
Days prior to such Interest Reset Date for such Note on which each Base Rate
shall be determinable.  Each Base Rate
shall be determined and compared on such date, and the applicable interest rate
shall take effect on the related Interest Reset Date.

 

(v) Maximum and Minimum Limits on Interest Rates.  Any Floating Rate Note and the applicable
Pricing Supplement may specify either or both a maximum limit and a minimum
limit on the rate at which interest may accrue during any Interest Accrual
Period. In addition to any maximum interest rate which may be applicable to any
Floating Rate Note, the interest rate on Floating Rate Notes will in no event
be higher than the maximum rate permitted by New York law, as the same may be
modified by United States law of general application.  This limit may not apply to Floating Rate
Notes in which $2,500,000 or more has been invested.

 

(vi) Initial Interest Rate; Interest Rate Thereafter in Effect.  The interest rate in effect with respect to a
Floating Rate Note on each day that is not an Interest Reset Date will be the
interest rate determined as of the Interest Determination Date pertaining to
the immediately preceding Interest Reset Date and the interest rate in effect
on any day that is an Interest Reset Date will

 

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be the interest rate determined as of the Interest Determination Date pertaining to such Interest Reset Date, subject in either case to applicable provisions of law and any maximum or minimum interest rate limitations referred to above; provided, however, that the interest rate in effect with respect to a Floating Rate Note for the period from the date of original issue to the first Interest Reset Date will be the rate specified as such therein and in the applicable Pricing Supplement (the “Initial Interest Rate”).

 

(vii)  Accrued Interest; Accrued Interest Factor.  With respect to each Floating Rate Note, accrued interest is calculated by multiplying its face amount by an accrued interest factor.  Such accrued interest factor is computed by adding the interest factor calculated for each day from the date of issue, or from the last date to which interest has been paid or duly provided for, to the date for which accrued interest is being calculated.  The interest factor for each such day is computed by dividing the interest rate applicable to such day by 360, in the case of Commercial Paper Rate Notes, LIBOR Notes, CD Rate Notes, Federal Funds Rate Notes, Prime Rate Notes, Eleventh District Cost of Funds Rate Notes and EURIBOR Notes and by the actual number of days in the year, in the case of Treasury Rate Notes and CMT Rate Notes. Unless otherwise specified in an applicable Pricing Supplement, the interest factor for Notes for which the interest rate is calculated with reference to two or more Base Rates will be calculated in each period in the same manner as if only the lowest of the applicable Base Rates specified in the applicable Pricing Supplement applied.

 

(viii) Rounding of Percentages. All percentages resulting from any calculation on Floating Rate Notes will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) will be rounded upward to 9.87655% (or .0987655)), and all amounts used in or resulting from such calculation on Floating Rate Notes will be rounded, in the case of United States dollars, to the nearest cent, or in the case of a foreign currency, to the nearest unit (with one-half cent or unit being rounded upward).

 

(ix) Calculation Agents; Calculation Date.  Unless otherwise specified in an applicable Pricing Supplement, the Trustee will be the “Calculation Agent” with respect to all Floating Rate Notes.  Upon the request of the holder of any Floating Rate Note, the Trustee will provide the interest rate then in effect and, if determined, the interest rate that will become effective as a result of

 

12

 

a determination made for the next Interest Reset Date with respect to such Floating Rate Note. If at any time the Trustee is not the Calculation Agent, the Company will notify the Trustee of each determination of the interest rate applicable to any such Floating Rate Note promptly after such determination is made by any successor Calculation Agent.  The “Calculation Date,” where applicable, pertaining to any Interest Determination Date is the date by which the applicable interest rate must be calculated and will be the earlier of (a) the tenth calendar day after such Interest Determination Date, or, if any such day is not a Business Day, the next succeeding Business Day and (b) the Business Day preceding the applicable Interest Payment Date or Maturity Date, as the case may be.

 

(x)           Calculation of Floating Rates.  The interest rate in effect with respect to a Floating Rate Note from the date of issue to the first Interest Reset Date will be the Initial Interest Rate.  The interest rate for each subsequent Interest Reset Date will be determined by the Calculation Agent as follows:

 

(A)          Commercial Paper Rate Notes.  Commercial Paper Rate Notes will bear interest at the interest rates (calculated with reference to the Commercial Paper Rate and the Spread or Spread Multiplier, if any) specified in such Commercial Paper Rate Notes and in an applicable Pricing Supplement.

 

(l) Unless otherwise specified in an applicable Pricing Supplement, “Commercial Paper Rate” means, with respect to any Commercial Paper Interest Determination Date, the Money Market Yield (as defined below) on such date of the rate for commercial paper having the Index Maturity specified in the applicable Pricing Supplement as published in H.15(519), under the heading “Commercial Paper-Nonfinancial.” In the event that such rate is not published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Commercial Paper Interest Determination Date, then the Commercial Paper Rate will be the Money Market Yield on such Commercial Paper Interest Determination Date of the rate for commercial paper of the Index Maturity specified in the applicable Pricing Supplement as published in H.15 Daily Update, or such other recognized 

 

13

 

electronic source used for the purpose of displaying the applicable rate, under the heading “Commercial Paper-Nonfinancial.” If such rate is not published in either H.15(519) or H.15 Daily Update by 3:00 P.M., New York City time, on such Calculation Date, then the Commercial Paper Rate will be calculated by the Calculation Agent and will be the Money Market Yield of the arithmetic mean of the offered rates, as of approximately 11:00 A.M., New York City time, on such Commercial Paper Interest Determination Date, of three leading dealers of United States dollar commercial paper in New York, New York (which may include one or more of the agents (the “Agents”) appointed by the Company from time to time to offer and sell the Notes or their affiliates) selected by the Calculation Agent (after consultation with the Company) for commercial paper of the specified Index Maturity placed for an industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized statistical rating agency; provided, however, that if the dealers selected as aforesaid by the Calculation Agent are not quoting offered rates as mentioned in this sentence, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such Commercial Paper Interest Determination Date.

 

(2)           “Money Market Yield” shall be a yield (expressed as a percentage) calculated in accordance with the following formula:

 

	
Money Market Yield =
  	
D X 360        
  	
X 100
  
	
 
  	
360 - (D X M)
  

 

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount basis and expressed as a decimal and “M” refers to the actual number of days in the interest period for which interest is being calculated.

 

“H.15(519)” as used in the calculation of Floating Rates means the weekly statistical release designated as H.15(519), or any successor 

 

14

 

publication, published by the Board of Governors of the Federal Reserve System.

 

“H.15 Daily Update” as used in the calculation of Floating Rates means the daily update of H.15(519), available through the world-wide-web site of the Board of Governors of the Federal Reserve System at http:/www.federalreserve.gov/releases/h15/update/h15upd.htm, or any successor site or publication.

 

(B)          LIBOR Notes.  LIBOR Notes will bear interest at the interest rates (calculated with reference to LIBOR and the Spread or Spread Multiplier, if any) specified in such LIBOR Notes and in an applicable Pricing Supplement. Unless otherwise specified in an applicable Pricing Supplement, “LIBOR” means the rate determined by the Calculation Agent in accordance with the following provisions:

 

(1)           With respect to a LIBOR Interest Determination Date, LIBOR will be the rate for deposits in the Index Currency having the Index Maturity designated in the applicable Pricing Supplement, commencing on the second London Business Day immediately following that LIBOR Interest Determination Date, that appears on the LIBOR Page (as defined below) as of 11:00 A.M., London time, on that LIBOR Interest Determination Date.  “LIBOR Page” means either, (a) the display on the page specified in the applicable Pricing Supplement for the purpose of displaying the London interbank rates of major banks for the Index Currency; or (b) if no such page is specified in the applicable Pricing Supplement as the method for calculating LIBOR, the display on Reuters (or any successor service) on the LIBOR 01 page (or any other page as may replace such page on such service) for the purpose of displaying the London interbank rates of major banks for the Index Currency.

 

(2)           If the rate referred to in (1) does not so appear on the LIBOR Page, LIBOR will be determined as of approximately 11:00 A.M., London time, on such LIBOR Interest Determination Date on the basis of the rate at which deposits in the applicable Index Currency having the Index Maturity specified in the applicable Pricing Supplement are offered by four major reference banks (which may include affiliates of the Agents) in the London interbank market selected by the Calculation Agent (after consultation with the Company) commencing on the second London Business Day immediately following such LIBOR Interest 

 

15

 

Determination Date and in a principal amount equal to an amount that is representative for a single transaction in such market at such time.  The Calculation Agent will request the principal London office of each of such banks to provide a quotation of its rate. If at least two such quotations are provided, then LIBOR for such LIBOR Interest Determination Date will be the arithmetic mean of such quotations.  If fewer than two quotations are provided, then LIBOR for such LIBOR Interest Determination Date will be the arithmetic mean of the rates quoted as of approximately 11:00 A.M. in the applicable Principal Financial Center on such LIBOR Interest Determination Date by three major banks (which may include affiliates of the Agents) in such Principal Financial Center selected by the Calculation Agent (after consultation with the Company) for loans in the applicable Index Currency to leading European banks having the specified Index Maturity, and in a principal amount equal to an amount of not less than $1,000,000 (or the equivalent in the Index Currency, if the Index Currency is not the U.S. dollar) and that is representative for a single transaction in such market at such time; provided, however, that if the banks selected as aforesaid by the Calculation Agent are not quoting as mentioned in this sentence, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such LIBOR Interest Determination Date.

 

“Index Currency” means the index currency (including composite currencies) specified in the applicable Pricing Supplement as the currency for which LIBOR shall be calculated.  If no such index currency is specified in the applicable Pricing Supplement, the Index Currency shall be U.S. dollars.

 

(C)  CD Rate Notes.  CD Rate Notes will bear interest at the interest rates (calculated with reference to the CD Rate and the Spread or Spread Multiplier, if any) specified in such CD Rate Notes and in an applicable Pricing Supplement.

 

Unless otherwise indicated in the applicable Pricing Supplement, “CD Rate” means, with respect to any CD Interest Determination Date, the rate on such date for negotiable certificates of deposit having the Index Maturity designated in the applicable Pricing Supplement as published in H.15(519) under the caption “CDs (secondary market)” or, if not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such CD Interest Determination Date, the CD Rate will be the rate on such CD Interest Determination Date for negotiable certificates of deposit 

 

16

 

of the Index Maturity as published in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “CDs (secondary market)”.  If by 3:00 P.M., New York City time, on the Calculation Date pertaining to such CD Interest Determination Date such rate is not yet published in either H.15(519) or H.15 Daily Update, then the CD Rate on such CD Interest Determination Date will be calculated by the Calculation Agent and will be the arithmetic mean of the secondary market offered rates as of 10:00 A.M., New York City time, on such CD Interest Determination Date, of three leading non-bank dealers in negotiable U.S. dollar certificates of deposit in The City of New York (which may include one or more of the Agents or their affiliates) selected by the Calculation Agent (after consultation with the Company) for negotiable certificates of deposit of major United States money market banks for negotiable United States certificates of deposit with a remaining maturity closest to the Index Maturity designated in the applicable Pricing Supplement in an amount that is representative for a single transaction in that market at that time; provided, however, that if the dealers selected as aforesaid by the Calculation Agent are not quoting offered rates as set forth above, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such CD Interest Determination Date.

 

(D)  Federal Funds Rate Notes.  Federal Funds Rate Notes will bear interest at the interest rates (calculated with reference to the Federal Funds Rate and the Spread or Spread Multiplier, if any) specified in such Federal Funds Rate Notes and in an applicable Pricing Supplement.

 

Unless otherwise indicated in the applicable Pricing Supplement, “Federal Funds Rate” means, with respect to any Federal Funds Interest Determination Date:

 

(1)           If the “Federal Funds (Effective) Rate” is specified in the applicable Pricing Supplement, the Federal Funds Rate will be the rate on such date for Federal Funds as published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Reuters (or any successor service) on page FEDFUNDS 1 (or any other page as may replace the specified page on that service) (“FEDFUNDS 1 Page”) or, if the rate does not so appear on FEDFUNDS 1 Page or is not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Federal Funds Interest Determination Date, the Federal Funds Rate will be the rate on such Federal Funds Interest Determination Date for United States dollar federal funds as published in H.15 Daily Update, or such 

 

17

 

other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “Federal Funds (Effective)”.

 

(2)           If “Federal Funds Open Rate” is specified in the applicable Pricing Supplement, the Federal Funds Rate will be the rate on that date set forth under the caption “Federal Funds” for the Index Maturity specified in the applicable Pricing Supplement  opposite the caption “Open” and displayed on Reuters (or any successor service) on page 5 (or any other page as may replace the specified page on that service) (“Reuters Page 5”) or, if the rate does not appear on Reuters Page 5 or is not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to that Federal Funds Interest Determination Date, the Federal Funds Rate will be the rate on that Federal Funds Interest Determination Date displayed on FFPREBON Index page on Bloomberg L.P. (“Bloomberg”), which is the Fed Funds Opening Rate as reported by Prebon Yamane (or a successor) on Bloomberg.

 

(3)           If “Federal Funds Target Rate” is specified in the applicable Pricing Supplement, the Federal Funds Rate will be the rate on that date for U.S. dollar federal funds displayed on the FDTR Index page on Bloomberg, or if the rate does not appear on the FDTR Index page on Bloomberg or is not so published by 3:00 P.M., New York City time, on the Calculation Date, the rate for that day appearing on Reuters (or any successor service) on page USFFTARGET= (or any other page as may replace the specified page on that service) (“Reuters Page USFFTARGET=“).

 

If, by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Federal Funds Interest Determination Date such rate referenced above is not yet published, the Federal Funds Rate for such Federal Funds Interest Determination Date will be calculated by the Calculation Agent and will be the arithmetic mean of the rates for the last transaction in overnight United States dollar Federal Funds arranged by three leading brokers of Federal Funds transactions in The City of New York (which may include one or more of the Agents or their affiliates), which brokers have been selected by the Calculation Agent (after consultation with the Company) as of 9:00 A.M., New York City time, on such Federal Funds Interest Determination Date; provided, however, that, if the brokers selected as aforesaid by the Calculation Agent are not quoting rates as set forth above, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such Federal Funds Interest Determination Date.

 

18

 

(E)  Treasury Rate Notes. Treasury Rate Notes will bear interest at the interest rates (calculated with reference to the Treasury Rate and the Spread or Spread Multiplier, if any) specified in such Treasury Rate Notes and in an applicable Pricing Supplement.

 

Unless otherwise specified in an applicable Pricing Supplement, “Treasury Rate” means, with respect to any Treasury Rate Interest Determination Date, the rate from the auction held on the Treasury Rate Interest Determination Date (the “Auction”) of direct obligations of the United States (“Treasury Bills”) having the Index Maturity specified in the applicable Pricing Supplement under the caption “INVEST RATE” on the display on Reuters (or any successor service) on page USAUCTION 10 (or any other page as may replace that page on that service) (“USAUCTION 10 Page”) or page USAUCTION 11 (or any other page as may replace that page on that service) (“USAUCTION 11 Page”), or, if not so displayed, on the Bloomberg service (or any successor service) on page AUCR 18 (or any other page as may replace that page on that service) or, if not published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Treasury Rate Interest Determination Date, the Bond Equivalent Yield (as defined below) of the auction rate for the applicable Treasury Bills as published in H.15 Daily Update, or another recognized electronic source used for the purpose of displaying the applicable rate, under the caption “U.S. Government Securities/Treasury Bills/Auction High”, or if the rate referred to in the preceding sentence is not so published by 3:00 P.M., New York City time, on such Calculation Date, the Treasury Rate for that Treasury Interest Determination Date will be the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills as announced by the United States Department of the Treasury, or if the rate referred to in the preceding sentence is not so announced by the United States Department of the Treasury, or if the Auction is not held, the Treasury Rate for that Treasury Rate Interest Determination Date will be the Bond Equivalent Yield of the rate on the Treasury Rate Interest Determination Date of the applicable Treasury Bills as published in H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or if the rate referred to in the preceding sentence is not so published by 3:00 P.M., New York City time, on such Calculation Date, the Treasury Rate for that Treasury Rate Interest Determination Date will be the rate on the Treasury Rate Interest Determination Date of the applicable Treasury Bills as published in H.15 Daily Update, or another recognized electronic source used for the purpose of displaying the applicable rate, under the 

 

19

 

caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or if the rate referred to in the preceding sentence is not so published by 3:00 P.M., New York City time, on such Calculation Date, the Treasury Rate for that Treasury Rate Interest Determination Date will be the rate on the Treasury Rate Interest Determination Date calculated by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market bid rates, as of approximately 3:30 P.M., New York City time, on such Treasury Rate Interest Determination Date, of three leading primary United States government securities dealers (which may include one or more of the Agents or their affiliates) selected by the Calculation Agent (after consultation with the Company), for the issue of Treasury Bills with a remaining maturity closest to the specified Index Maturity; provided, however, that if the dealers selected as aforesaid by the Calculation Agent are not quoting as set forth in this sentence, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such Treasury Rate Interest Determination Date.

 

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the following formula:

 

	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
D X N
  	
 
  	
 
  
	
Bond Equivalent Yield
  	
=
  	
               
  	
X
  	
100
  
	
 
  	
 
  	
360 - (D X M)
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  

 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount basis and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in the applicable interest reset period.

 

(F) Prime Rate Notes. Prime Rate Notes will bear interest at the interest rate (calculated with reference to the Prime Rate and the Spread or Spread Multiplier, if any) specified in such Prime Rate Notes and in an applicable Pricing Supplement, except that the initial interest rate for each Prime Rate Note will be the rate specified in the applicable Pricing Supplement.

 

Unless otherwise specified in an applicable Pricing Supplement, “Prime Rate” means, with respect to any Prime Rate 

 

20

 

Interest Determination Date, the rate published in H.15(519) for such date under the caption “Bank Prime Loan”, or if not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to that Prime Rate Interest Determination Date, the rate on that Prime Rate Interest Determination Date as published in H.15 Daily Update or such other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “Bank Prime Loan”.  If neither rate is so published by 3:00 P.M., New York City time, on the Calculation Date, the Prime Rate for such Prime Rate Interest Determination Date will be calculated by the Calculation Agent as the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters Screen USPRIME1 Page (as defined below) as the applicable bank’s prime rate or base lending rate as of 11:00 A.M., New York City time, on that Prime Rate Interest Determination Date, or if fewer than four rates are so published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on the Prime Rate Interest Determination Date calculated by the Calculation Agent as the arithmetic mean of the prime rates or base lending rates quoted on the basis of the actual number of days in the year divided by 360 as of the close of business on such Prime Rate Interest Determination Date by three major banks (which may include one or more of the Agents or their affiliates) in The City of New York selected by the Calculation Agent (after consultation with the Company); provided, however, that if the banks selected by the Calculation Agent are not quoting as mentioned above, the “Prime Rate” for the Interest Reset Period will be the same as the Prime Rate for the for the immediately preceding Interest Reset Period (or, if there was no such Interest Reset Period, the rate of interest payable on the Prime Rate Notes for which the Prime Rate is being determined shall be the Initial Interest Rate).  “Reuters Screen USPRIME1 Page” means the display on the Reuters Monitor Money Rates Service (or any successor service) on the “USPRIME 1” page (or any other page as may replace that page on that service) for the purpose of displaying prime rates or base lending rates of major United States banks.

 

(G)  CMT Rate Notes.  CMT Rate Notes will bear interest at the interest rate (calculated with reference to the CMT Rate and the Spread or Spread Multiplier, if any) specified in the CMT Rate Notes and in the applicable Pricing Supplement.

 

Unless otherwise specified in the applicable Pricing Supplement, “CMT Rate” means, with respect to any CMT Interest Determination Date relating to a CMT Rate Note or any Floating Rate Note for which the interest rate is determined with reference to the CMT Rate,

 

21

 

if Reuters Page FRBCMT is specified in the
applicable Pricing Supplement:

 

(a)           the percentage equal to the yield for United States Treasury securities
at “constant maturity” having the Index Maturity specified in the applicable
Pricing Supplement as published in H.15(519) under the caption “Treasury
Constant Maturities”, as the yield is displayed on Reuters (or any successor
service) on page FRBCMT (or any other page as may replace the
specified page on that service) (“Reuters Page FRBCMT”),  or if not so displayed, on the Bloomberg
service (or any successor service) on page NDX 7 (or any other page as
may replace the specified page on that service) (“Bloomberg Page NDX
7”), for that CMT Interest Determination Date, or

 

(b)           if the rate referred to in clause (a) does not so appear on
Reuters Page FRBCMT or Bloomberg Page NDX 7, as the case may be, the
percentage equal to the yield for United States Treasury securities at “constant
maturity” having the particular Index Maturity and for that CMT Interest Determination
Date as published in H.15(519) under the caption “Treasury Constant
Maturities”, or

 

(c)           if the rate referred to in clause (b) does not so appear in
H.15(519), the rate on that CMT Interest Determination Date for the period of
the particular Index Maturity as may then be published by either the Federal
Reserve System Board of Governors or the United States Department of the
Treasury that the Calculation Agent determines to be comparable to the rate
which would otherwise have been published in H.15(519), or

 

(d)           if the rate referred to in clause (c) is not so published, the
rate on that CMT Interest Determination Date calculated by the Calculation
Agent as a yield to maturity based on the arithmetic mean of the secondary
market bid prices at approximately 3:30 P.M., New York City time, on that
CMT Interest Determination Date of three leading primary United States
government securities dealers in The City of New York (which may include one or
more of the Agents or their affiliates) (each, a “Reference Dealer”), selected
by the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation, or, in the event of
equality, one of the highest, and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities with an
original maturity equal to the particular Index Maturity, a remaining term to
maturity no more than one year shorter 

 

22

 

than that Index Maturity and in a principal
amount that is representative for a single transaction in the securities in
that market at that time, or

 

(e)           if fewer than five but more than two of the prices referred to in
clause (d) are provided as requested, the rate on that CMT Interest
Determination Date calculated by the Calculation Agent based on the arithmetic
mean of the bid prices obtained and neither the highest nor the lowest of the
quotations shall be eliminated, or

 

(f)            if fewer than three prices referred to in clause (d) are
provided as requested, the rate on that CMT Interest Determination Date
calculated by the Calculation Agent as a yield to maturity based on the
arithmetic mean of the secondary market bid prices as of approximately
3:30 P.M., New York City time, on that CMT Interest Determination Date of
three Reference Dealers selected by the Calculation Agent from five Reference
Dealers selected by the Calculation Agent and eliminating the highest quotation
or, in the event of equality, one of the highest and the lowest quotation or,
in the event of equality, one of the lowest, for United States Treasury
securities with an original maturity closest to the particular Index Maturity,
a remaining term to maturity closest to that Index Maturity and in a principal
amount that is representative for a single transaction in the securities in
that market at that time, or

 

(g)           if fewer than five but more than two prices referred to in clause (f) are
provided as requested, the rate on that CMT Interest Determination Date calculated
by the Calculation Agent based on the arithmetic mean of the bid prices
obtained and neither the highest nor the lowest of the quotations will be
eliminated, or

 

(h)           if fewer than three prices referred to in clause (f) are
provided as requested, the CMT Rate in effect on that CMT Interest
Determination Date;

 

if Reuters Page FEDCMT is specified in the
applicable Pricing Supplement:

 

(a)           the percentage equal to the one-week or one-month, as specified in the
applicable Pricing Supplement, average yield for United States Treasury
securities at “constant maturity” having the Index Maturity specified in the
applicable Pricing Supplement as published in H.15(519) opposite the
caption “Treasury Constant Maturities”, as the yield is displayed on Reuters on
page FEDCMT (or any other page that may replace the specified page on

 

23

 

that service) (“Reuters Page FEDCMT”), or,
if not so displayed, on the Bloomberg service (or any successor service) on
Bloomberg Page NDX7,  for the week
or month, as applicable, ended immediately preceding the week or month, as
applicable,  in which that CMT Interest
Determination Date falls, or

 

(b)           if the rate referred to in clause (a) does not so appear on
Reuters Page FEDCMT or Bloomberg Page NDX 7, as the case may be, the
percentage equal to the one-week or one-month, as applicable, average yield for
United States Treasury securities at “constant maturity” having the particular
Index Maturity and for the week or month, as applicable, preceding that CMT
Interest Determination Date as published in H.15(519) opposite the caption
“Treasury Constant Maturities,” or

 

(c)           if the rate referred to in clause (b) does not so appear in
H.15(519), the one-week or one-month, as applicable, average yield for United
States Treasury securities at “constant maturity” having the particular index
maturity as otherwise announced by the Federal Reserve Bank of New York for the
week or month, as applicable, ended immediately preceding the week or month, as
applicable, in which that CMT Interest Determination Date falls, or

 

(d)           if the rate referred to in clause (c) is not so published, the
rate on that CMT Interest Determination Date calculated by the Calculation
Agent as a yield to maturity based on the arithmetic mean of the secondary
market bid prices at approximately 3:30 P.M., New York City time, on that
CMT Interest Determination Date of three Reference Dealers selected by the
Calculation Agent from five Reference Dealers selected by the Calculation Agent
and eliminating the highest quotation, or, in the event of equality, one of the
highest, and the lowest quotation or, in the event of equality, one of the
lowest, for United States Treasury securities with an original maturity equal
to the particular Index Maturity, a remaining term to maturity no more than
one year shorter than that Index Maturity and in a principal amount that
is representative for a single transaction in the securities in that market at
that time, or

 

(e)           if fewer than five but more than two of the prices referred to in
clause (d) are provided as requested, the rate on that CMT Interest
Determination Date calculated by the Calculation Agent based on the arithmetic
mean of the bid prices obtained and neither the highest nor the lowest of the
quotations shall be eliminated, or

 

24

 

(f)            if fewer than three prices referred to in clause (d) are
provided as requested, the rate on that CMT Interest Determination Date
calculated by the Calculation Agent as a yield to maturity based on the
arithmetic mean of the secondary market bid prices as of approximately
3:30 P.M., New York City time, on that CMT Interest Determination Date of
three Reference Dealers selected by the Calculation Agent from five Reference
Dealers selected by the Calculation Agent and eliminating the highest quotation
or, in the event of equality, one of the highest and the lowest quotation or,
in the event of equality, one of the lowest, for United States Treasury
securities with an original maturity greater than the particular Index
Maturity, a remaining term to maturity closest to that Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at the time, or

 

(g)           if fewer than five but more than two prices referred to in clause (f) are
provided as requested, the rate on that CMT Interest Determination Date
calculated by the Calculation Agent based on the arithmetic mean of the bid
prices obtained and neither the highest or the lowest of the quotations will be
eliminated, or

 

(h)           if fewer than three prices referred to in clause (f) are
provided as requested, the CMT Rate in effect on that CMT Interest
Determination Date.

 

If two United States Treasury securities with
an original maturity greater than the Index Maturity specified in the
applicable Pricing Supplement have remaining terms to maturity equally close to
the particular Index Maturity, the quotes for the United States Treasury
security with the shorter original remaining term to maturity will be used.

 

(H)  Eleventh District Cost of Funds Rate Notes. Eleventh
District Cost of Funds Rate Notes will bear interest at the interest rate
(calculated with reference to the Eleventh District Cost of Funds Rate and the
spread or spread multiplier, if any) specified in the Eleventh District Cost of
Funds Rate Notes and in the applicable Pricing Supplement.

 

Unless
otherwise specified in an applicable Pricing Supplement, the “Eleventh District
Cost of Funds Rate” means, with respect to any Eleventh District Cost of Funds
Interest Determination Date, the rate equal to the monthly weighted average
cost of funds for the calendar month immediately preceding the month 

 

25

 

in which such Eleventh District Cost of Funds
Interest Determination Date falls as set forth under the caption “11th District” on the display on
Reuters (or any successor service) on page COFI/ARMS (or any other page as
may replace the specified page on that service) (“COFI/ARMS Page”) or, if
not so displayed, on Bloomberg service (or any successor service) on page ALLX
COF (or any other page as may replace the specified page on that
service) (“Bloomberg Page ALLX COF”) in each case, as of 11:00 A.M.,
San Francisco time, on the Eleventh District Cost of Funds Interest
Determination Date. If such rate does not appear on the COFI/ARMS Page or
Bloomberg Page ALLX COF on any related Eleventh District Cost of Funds
Interest Determination Date, the Eleventh District Cost of Funds Rate for the
Eleventh District Cost of Funds Interest Determination Date will be the
Eleventh District Cost of Funds Rate Index, as defined below. If the FHLB of
San Francisco fails to announce the rate for the calendar month next preceding
the Eleventh District Cost of Funds Interest Determination Date, then the
Eleventh District Cost of Funds Rate for that date will be the Eleventh
District Cost of Funds Rate in effect on that Eleventh District Cost of Funds
Interest Determination Date.   The “Eleventh
District Cost of Funds Rate Index” will be the monthly weighted average cost of
funds paid by member institutions of the Eleventh Federal Home Loan Bank
District that the FHLB of San Francisco most recently announced as the cost of
funds for the calendar month immediately preceding the Eleventh District Cost
of Funds Interest Determination Date.

 

(I)  EURIBOR Notes. EURIBOR Notes will bear interest at the
interest rate (calculated with reference to the European Interbank Offered Rate
for deposits in euros, or EURIBOR, and the Spread or Spread Multiplier, if any)
specified in the EURIBOR Notes and in the applicable Pricing Supplement.

 

“EURIBOR” means the rate for
deposits in euros as sponsored, calculated and published jointly by the
European Banking Federation and ACI—The Financial Market Association, or any
company established by the joint sponsors for purposes of compiling and
publishing those rates, having the Index Maturity specified in the applicable
Pricing Supplement, commencing on the applicable Interest Reset Date, as that
rate appears on Reuters, or any successor service, on page EURIBOR01 or
any other page as may replace that specified page on that service (“Reuters
Page EURIBOR01”) as of 11:00 A.M., Brussels time, on the applicable
EURIBOR Interest Determination Date.  If
EURIBOR cannot be determined on a EURIBOR Interest Determination Date as
described 

 

26

 

above, then the Calculation Agent will determine
EURIBOR as follows:

 

The
Calculation Agent will select four major banks in the euro-zone interbank
market, which may include affiliates of the Agents. The Calculation Agent will
request that the principal euro-zone offices of those four selected banks
provide their offered quotations to prime banks in the euro-zone interbank
market at approximately 11:00 A.M., Brussels time, on the EURIBOR
Determination Date. These quotations shall be for deposits in euros for the
period of the specified Index Maturity, commencing on such Interest Reset Date.
Offered quotations must be based on a principal amount equal to at least
$1,000,000 or the approximate equivalent in euros that is representative of a
single transaction in such market at such time. If two or more quotations are
provided, EURIBOR for the Interest Reset Period will be the arithmetic mean of
the quotations. If fewer than two quotations are provided, the Calculation
Agent will select four major banks in the euro-zone, which may include
affiliates of the Agents, and follow the steps below.

 

(1)           The Calculation Agent will then determine EURIBOR for the Interest Reset
Period as the arithmetic mean of rates quoted by those four major banks in the
euro-zone to leading European banks at approximately 11:00 A.M., Brussels
time, on the EURIBOR Interest Determination Date. The rates quoted will be for
loans in euros, for the period of the specified Index Maturity, commencing on
the Interest Reset Date. Rates quoted must be based on a principal amount of at
least $1,000,000 or the approximate equivalent in euros that is representative
of a single transaction in such market at such time.

 

(2)           If the banks so selected by the Calculation Agent are not quoting rates
as described above, EURIBOR will be the EURIBOR in effect on the applicable
EURIBOR Determination Date.

 

“Euro-zone”
means the region comprised of member states of the European Union that adopt
the single currency in accordance with the Treaty establishing the European
Community, as amended by the Treaty on European Union.

 

(n) 
Renewable Notes.  Notes may be issued from time to time as
variable rate renewable notes (the “Renewable Notes”) that will bear interest
at the interest rate (calculated with reference to a Base Rate and the Spread 

 

27

 

or Spread Multiplier, if any) specified in the
Renewable Notes and in the applicable Pricing Supplement.

 

The Renewable Notes will mature on an Interest
Payment Date as specified in the applicable Pricing Supplement (the “Initial
Maturity Date”), unless the maturity of all or any portion of the principal
amount thereof is extended in accordance with the procedures described
below.  On the Interest Payment Dates
specified in the applicable Pricing Supplement (each such Interest Payment
Date, an “Election Date”), the maturity of the Renewable Notes will be extended
to the Interest Payment Date occurring twelve months after such Election Date,
unless the holder thereof elects to terminate the automatic extension of the
maturity of the Renewable Notes or of any portion thereof having a principal
amount of $2,000 or any multiple of $1,000 in excess thereof by delivering a
notice of such effect to the Trustee not less than nor more than the number of
days to be specified in the applicable Pricing Supplement prior to such Election
Date.  If no such notice period is
specified in the applicable Pricing Supplement, such notice shall be given no
less than 30 days nor more than 60 days prior to such Election Date.  Such option may be exercised with respect to
less than the entire principal amount of the Renewable Notes; provided
that the principal amount for which such option is not exercised is at least
$2,000 or any larger amount that is an integral multiple of $1,000.  Notwithstanding the foregoing, the maturity
of the Renewable Notes may not be extended beyond the Final Maturity Date, as
specified in the applicable Pricing Supplement (the “Final Maturity Date”).  If the holder elects to terminate the
automatic extension of the maturity of any portion of the principal amount of
the Renewable Notes and such election is not revoked as described below, such
portion will become due and payable on the Interest Payment Date falling six
months (unless another period is specified in the applicable Pricing
Supplement) after the Election Date prior to which the holder made such
election.

 

An election to terminate the automatic
extension of maturity may be revoked as to any portion of the Renewable Notes
having a principal amount of $2,000 or any multiple of $1,000 in excess thereof
by delivering a notice to such effect to the Trustee on any day following the
effective date of the election to terminate the automatic extension of maturity
and prior to the date 15 days before the date on which such portion would
otherwise mature.  Such a revocation may
be made for less than the entire principal amount of the Renewable Notes for
which the automatic extension of maturity has been terminated; provided
that the principal amount of the Renewable Notes for which the automatic
extension of maturity has been terminated and for which such a revocation has
not been made is at least $2,000 or any larger amount that is an integral
multiple of $1,000.  Notwithstanding the
foregoing, a revocation may not be made during the period from and 

 

28

 

including a Record Date to but excluding the
immediately succeeding Interest Payment Date.

 

An election to terminate the automatic
extension of the maturity of the Renewable Notes, if not revoked as described
above by the holder making the election or any subsequent holder, will be
binding upon such subsequent holder.

 

The Renewable Notes may be redeemed in whole or
in part at the option of the Company on the Interest Payment Dates in each year
specified in the applicable Pricing Supplement, commencing with the Interest
Payment Date specified in the applicable Pricing Supplement, at a redemption
price as stated in the applicable Pricing Supplement, together with accrued and
unpaid interest, if any, to the date of redemption.  Notwithstanding anything to the contrary in
the Prospectus Supplement, notice of redemption will be provided by mailing a
notice of such redemption to each holder by first class mail, postage prepaid,
at least 180 days (unless otherwise specified in the applicable Pricing
Supplement) prior to the date fixed for redemption.

 

(o) 
Amount Payable Upon Declaration of Maturity of
Discount Note.  With respect
to any Note which is a Discount Note, the portion of the principal amount of
any Discount Note which is payable upon redemption prior to the Stated Maturity
thereof or upon declaration of acceleration of the Stated Maturity thereof
pursuant to Section 6.2 of the Indenture will be as provided in the
applicable Note.

 

(p) 
Register of Securities; Paying Agent.  The register of the Securities for the Notes
will be initially maintained at the Corporate Trust Office of the Trustee.  The Company hereby appoints the Trustee as
the initial Paying Agent.

 

(q) 
Currency Indexed Notes.  Notes may be issued, from time to time, with
the principal amount payable on any principal payment date, or the amount of
interest payable on any Interest Payment Date, to be determined by reference to
the value of one or more currencies (or composite currencies or currency
units).  In such event, the currency or
currencies (or composite currencies or currency units) to which the principal
amount payable on any principal payment date or the amount of interest payable
on any Interest Payment Date is indexed, the currency in which the face amount
of the Note is denominated (the “Denominated Currency”), and the currency in
which principal and interest on the Note will be paid (the “Payment Currency”)
will be set forth in the applicable Pricing

 

29

 

Supplement. 
The Denominated Currency and the Payment Currency may be the same
currency or different currencies.  Unless
otherwise specified in the applicable Pricing Supplement, interest on currency
indexed Notes shall be paid in the Denominated Currency based on the face
amount of the Note at the rate per annum and on the dates set forth in the
applicable Pricing Supplement.  Currency
indexed Notes may include, but are not limited to, Notes of the types described
below.

 

(i)            Currency
Linked Securities (“CLS”).  CLS are Notes pursuant to which the principal
amount payable at Stated Maturity equals the Payment Currency equivalent at
Stated Maturity of a fixed amount of a designated currency (or composite
currency or currency units) (the “Indexed Currency”).  The Denominated Currency, the Indexed Currency
and the Payment Currency will be identified in the applicable Pricing
Supplement. In addition, the fixed amount of the Indexed Currency to which the
principal of the CLS is linked will be set forth in the applicable Pricing
Supplement for a specific representative face amount of the CLS as well as for
the aggregate face amount of all CLS forming part of the same issue.

 

If the Payment Currency and the Indexed
Currency are not the same, the Payment Currency equivalent of the Indexed
Currency amount on any date shall be determined in the manner specified in the
applicable Pricing Supplement.

 

(ii) Reverse Currency Linked
Securities (“Reverse CLS”). 
Reverse CLS are Notes pursuant to which the principal amount payable at
Stated Maturity equals the Payment Currency equivalent at Stated Maturity of a
fixed amount of a designated currency (or composite currencies or currency
units) (the “First Indexed Currency”) minus the amount of the Payment Currency
equivalent at Stated Maturity of a fixed amount of another designated currency
(or composite currency or currency units) (the “Second Indexed Currency”); provided,
however, that the minimum principal amount payable at Stated Maturity
shall be zero.

 

The Denominated Currency, the First and Second
Indexed Currencies and the Payment Currency will be identified in the
applicable Pricing Supplement.  In
addition, the fixed amounts of the First and Second Indexed Currencies to which
the principal of the Reverse CLS is linked shall be set forth in the applicable
Pricing Supplement for a specific representative face amount of the Reverse CLS
as well as for the aggregate face amount of all Reverse CLS forming part of the
same issue.

 

If the Payment Currency and the First Indexed
Currency or the Second Indexed Currency are not the same, the Payment Currency 

 

30

 

equivalent of the First Indexed Currency amount
or the Second Indexed Currency amount, as the case may be, on any date shall be
determined in the manner specified in the applicable Pricing Supplement.

 

(iii) Multicurrency Currency
Linked Securities (“Multicurrency CLS”).  Multicurrency CLS are Notes pursuant to which
the principal amount payable at Stated Maturity equals the Payment Currency
equivalent at Stated Maturity of a fixed amount of a designated currency (or
composite currency or currency units) (the “First Indexed Currency”) plus or
minus the Payment Currency equivalent at Stated Maturity of a fixed amount of a
second designated currency (or composite currency or currency units) (the “Second
Indexed Currency”) plus or minus the Payment Currency equivalent at Stated
Maturity of a fixed amount of a third designated currency (or composite
currency or currency units) (the “Third Indexed Currency”); provided, however,
that the minimum principal amount payable at Stated Maturity shall be zero.

 

The Denominated Currency, each Indexed
Currency, the Payment Currency and whether the fixed amounts of the Second and
Third Indexed Currencies are to be added or subtracted to determine the
principal amount payable at Stated Maturity of the Multicurrency CLS shall be
set forth in the applicable Pricing Supplement. 
In addition, the fixed amounts of the First, Second and Third Indexed
Currencies to which the principal of the Multicurrency CLS is linked shall be
set forth in the applicable Pricing Supplement for a specific representative
face amount of the Multicurrency CLS as well as for the aggregate face amount
of all Multicurrency CLS forming part of the same issue.  As used herein, “Added Indexed Currency”
means the First Indexed Currency and any other Indexed Currency that is added
to determine the principal amount payable at Maturity of the Multicurrency CLS
and a “Subtracted Indexed Currency” means an Indexed Currency that is
subtracted to determine the principal amount payable at Stated Maturity of the
Multicurrency CLS.

 

If any Added Index Currency or Subtracted Index
Currency is not the same as the Payment Currency, the Payment Currency
equivalent of such Added Indexed Currency amount or Subtracted Index Currency
amount, as the case may be, on any date shall be determined in the manner
specified in the applicable Pricing Supplement.

 

(r) 
Amount Payable Upon Declaration of Maturity — CLS,
Reverse CLS or Multicurrency CLS. 
If the principal amount payable at the Stated Maturity of any CLS,
Reverse CLS or Multicurrency CLS shall be declared due and payable prior to
such Stated Maturity, the amount payable with respect to such Note will be paid
in the Denominated Currency and will

 

31

 

equal the face amount of such Note plus accrued interest to but excluding the date of payment.

 

(s)  Commodity Linked Notes.  Notes may be issued, from time to time, with the principal amount payable on any principal payment date, or the amount of interest payable on any Interest Payment Date, to be determined by reference to one or more commodity prices, equity indices or other factors and on such other terms as may be set forth in the applicable Pricing Supplement.

 

(t)  Amortizing Notes.  Notes may be issued from time to time as Amortizing Notes (as defined below).  “Amortizing Notes” are Notes for which payments of principal and interest are made in equal installments over the life of the Note. Interest on each Amortizing Note will be computed on the basis of a 360-day year of twelve 30-day months. Payments with respect to Amortizing Notes will be applied first to interest due and payable thereon and then to the reduction of the unpaid principal amount thereof.  A table setting forth repayment information in respect of each Amortizing Note will be provided to the original purchaser and will be available upon request, to subsequent holders.

 

(u)  Persons to Establish Specific Terms.  The principal amount, any interest rate (or manner in which interest is to be determined), any Interest Payment Dates, any Regular Record Dates, the Stated Maturity, any Redemption Date or Dates (and if on any such Redemption Date a premium is to be paid by the Company, the amount of such premium) and any other relevant terms of any Note  

 

32

 

will be determined by any one of the persons whose name is set forth below.

 

	
NAME
  	
 
  	
OFFICE
  	
 
  	
SPECIMEN SIGNATURE
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
James A. Rasulo
  	
 
  	
Senior Executive Vice President and Chief Financial Officer
  	
 
  	
/s/ James A. Rasulo
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Christine M. McCarthy
  	
 
  	
Executive Vice President, Corporate Real Estate, Sourcing, Alliances and Treasurer
  	
 
  	
/s/ Christine M. McCarthy
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Jonathan S. Headley
  	
 
  	
Senior Vice President — Corporate Finance and Assistant Treasurer
  	
 
  	
/s/ Jonathan S. Headley
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Mitchell K. Polon
  	
 
  	
Vice President — Financial Risk Management, Corporate Treasury
  	
 
  	
/s/ Mitchell K. Polon
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Natacha J. Rafalski
  	
 
  	
Vice President — Corporate Finance
  	
 
  	
/s/ Natacha J. Rafalski
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Carlos A. Gomez
  	
 
  	
Director — Corporate Finance
  	
 
  	
/s/ Carlos A. Gomez
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Suet Lai
  	
 
  	
Vice President — Counsel
  	
 
  	
/s/ Suet Lai
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
David K. Thompson
  	
 
  	
Senior Vice President — Deputy General Counsel — Corporate and Assistant Secretary
  	
 
  	
/s/ David K. Thompson
  
	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
Joseph M. Santaniello
  	
 
  	
Senior Vice President — Assistant General Counsel and Assistant Secretary
  	
 
  	
/s/ Joseph M. Santaniello
  
	
 
  	
 
  	
 
  	
 
  

 

(v)  Forms. Unless and until another form is established pursuant to a subsequent Officers’ Certificate pursuant to Section 2.1 of the Indenture, the Discount Notes, the Fixed Rate Notes, the Floating Rate Notes and the Zero Coupon Notes will be in substantially the forms set forth in Exhibits A, B, C and D hereto, respectively, and may have such other terms as are provided herein.

 

(w)  Additional Amounts; Redemption. If so provided in the Note, the Company will pay additional amounts on such Note to any Holder who is a United States Alien (including any modification in the definition of such term), in respect of any tax, assessment or governmental charge withheld or deducted, all on the terms specified in such Note; further, if so provided in such Note, the Company will have the option to redeem such Note rather than pay additional amounts, all on the terms specified in such Note.

 

33

 

All capitalized terms used in this Officers’ Certificate and not defined herein shall have the meanings set forth in the Indenture.

 

Each of the undersigned, for himself, states that he has read and is familiar with the provisions of Article Two of the Indenture relating to the establishment of a series of Securities thereunder and the establishment of forms of Securities representing a series of Securities thereunder and, in each case, the definitions therein relating thereto; that he is generally familiar with the other provisions of the Indenture and with the affairs of the Company and its acts and proceedings and that the statements and opinions made by him in this Certificate are based upon such familiarity; and that he has made such examination or investigation as is necessary to enable him to determine whether or not the covenants and conditions referred to above have been complied with; and in his opinion, such covenants and conditions have been complied with.

 

34

 

IN WITNESS WHEREOF, the undersigned have hereunto signed this Certificate on behalf of the Company as of the 8th day of December, 2010

 

	
 
  	
THE WALT DISNEY COMPANY
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By: 
  	
/s/ Christine M. McCarthy
  
	
 
  	
 
  	
Name: 
  	
Christine M. McCarthy
  
	
 
  	
 
  	
Title: 
  	
Executive Vice President, Corporate Real Estate, Sourcing, Alliances and Treasurer
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By: 
  	
/s/ David K. Thompson
  
	
 
  	
 
  	
Name: 
  	
David K. Thompson
  
	
 
  	
 
  	
Title: 
  	
Senior Vice President - Deputy
  
	
 
  	
 
  	
 
  	
General Counsel — Corporate
  
	
 
  	
 
  	
 
  	
and Assistant Secretary
  

 

 

Exhibit “A”

 

	
REGISTERED
  	
 
  	
REGISTERED
  

 

	
NO.
  	
 
  	
MEDIUM-TERM NOTE, SERIES E

(Discount)
  	
 
  	
PRINCIPAL AMOUNT:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
CUSIP:
  

 

Unless and until it is exchanged in whole or in part for Notes in definitive form, this Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of  the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. Unless this certificate is presented by an authorized representative of The Depository Trust Company, New York, New York (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC and any payment is made to Cede & Co. or such other entity as requested by an authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

 

	
ORIGINAL ISSUE DATE:
  	
 
  	
ORIGINAL ISSUE DISCOUNT:
  
	
MATURITY DATE:
  	
 
  	
INTEREST RATE:
  
	
ORIGINAL ISSUE PRICE:
  	
 
  	
YIELD TO MATURITY:
  
	
INTEREST PAYMENT DATES:
  	
 
  	
REGULAR RECORD DATES:  
  ADDITIONAL AMOUNTS:
  

 

 

Date:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
  
	
 
  	
 
  
	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Authorized Signatory
  	
 
  

 

 

THE WALT DISNEY COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the Principal Amount specified above on the Maturity Date specified above and to pay interest thereon from the Original Issue Date specified above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears, in each year, commencing with the first Interest Payment Date next succeeding the Original Issue Date, at the rate per annum set forth above, until the principal hereof is paid or made available for payment; provided, however, that if the Original Issue Date of this Note is between a Regular Record Date and the related Interest Payment Date, the first payment of interest on this Note will be made on the Interest Payment Date immediately following the next succeeding Regular Record Date to the registered Holder on such next succeeding Regular Record Date. Interest payments for this Note will include interest accrued to but excluding the Interest Payment Date. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture (as defined below), be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date, as specified above (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date; provided, however, that interest payable at Maturity shall be payable to the Person to whom principal shall be payable. If any Interest Payment Date or Maturity with respect to this Note falls on a day that is not a Business Day, the payment due on such Interest Payment Date or at Maturity will be made on the following day that is a Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or Maturity, as the case may be. Except as otherwise provided in the Indenture, any interest not punctually paid or duly provided for on any Interest Payment Date (herein called “Defaulted Interest”) will forthwith cease to be payable to the Holder on the Regular Record Date with respect to such Interest Payment Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee (as defined below), notice of which shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. In the case of a default in payment of principal upon acceleration, redemption or at Stated Maturity, the Accreted Value (as defined below) of this Note at the date of such default in payment shall bear interest at the Yield to Maturity specified above plus 1% per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of such principal has been made or duly provided for. Interest will be computed on the basis of a 360-day year of twelve 30-day months and, in the case of interest payable pursuant to the immediately preceding sentence, will be compounded semiannually. Payment of the principal of and interest on this Note will be made at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company, payments of interest on this Note (other than at Maturity) may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities or by wire transfer of immediately available funds to the account of the Holder of this Note if appropriate wire transfer instructions have been received in writing by the Trustee not less than 15 days prior to the applicable payment date. Notwithstanding the foregoing, the Company will make payments of interest on any Interest Payment Date other than the Maturity Date to each registered Holder of $10,000,000 (or, if the payment currency is other than United States dollars, the equivalent thereof in the particular payment currency) or more in aggregate principal amount of definitive Notes (whether having identical or different terms and provisions) by wire transfer of immediately available funds if the applicable registered Holder has delivered appropriate wire transfer instructions in writing to the Trustee not less than 15 days prior to the particular Interest Payment Date.  Any wire transfer instructions received by the Trustee shall remain in effect until revoked by the applicable registered Holder.

 

The “Accreted Value” of this Note at any date (the “Calculation Date”) shall be equal to (i) the Original Issue Price of this Note specified above plus (ii) the accrued amortization of Original Issue Discount specified above attributable ratably on a daily basis to the period from and including the Original Issue Date specified 

 

 

above to but excluding the Calculation Date. The calculation of accrual of Original Issue Discount will be computed on the basis of a 360-day year of twelve 30-day months, compounded semiannually.

 

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

 

Unless the certificate of authentication hereon has been executed by the Trustee or its duly appointed co-authenticating agent by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

This Note is one of a duly authorized issue of securities (herein called the “Securities”) of the Company (which term includes any successor corporation under the Indenture hereinafter referred to) issued and to be issued pursuant to such Indenture. This Security is one of a series designated by the Company as its Medium-Term Notes, Series E (the “Notes”). The Indenture does not limit the aggregate principal amount of the Securities.

 

The Company issued this Note pursuant to an Indenture, dated as of September 24, 2001 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, a national banking association, 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 statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered.

 

The Notes are issuable as Registered Securities, without coupons, in denominations of $2,000 and any amount in excess thereof which is an integral multiple of $1,000. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of any authorized denomination, as requested by the Holder surrendering the same, upon surrender of the Note or Notes to be exchanged at any office or agency described below where Notes may be presented for registration of transfer.

 

The Company may from time to time, without the consent of existing Note Holders, issue additional Notes (“Additional Notes”) having the same terms and conditions (including maturity and interest payment terms) as previously issued Notes in all respects, except for issue date, issue price and the first payment of interest. Additional Notes issued in this manner will be fungible with the previously issued Notes to the extent specified in the applicable Pricing Supplement.

 

Except as provided below, this Note may not be redeemed prior to the Maturity Date set forth above.

 

In the event that this Note is subject to payment of Additional Amounts (as defined below) as specified above, all payments of principal and interest with respect to this Note will be made without withholding or deduction at the source for, or on account of, any present or future taxes, fees, duties, assessments or governmental charges of whatever nature imposed or levied by the United States or any political subdivision or taxing authority thereof or therein, unless such withholding or deduction is required by (i) the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision thereof or therein or (ii) an official position regarding the application, administration or enforcement of such laws, regulations or rulings (including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in the United States or any political subdivision thereof).

 

In the event this Note is subject to payment of Additional Amounts (as defined below) as specified above, the Company will, subject to certain exceptions and limitations set forth below, pay to the Holder hereof who is a United States Alien, as additional interest, such amounts (“Additional Amounts”) as may be necessary in order that every net payment on this Note (including payment of the principal of and interest on such this Note) by the Company or a Paying Agent, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such payment by the United States (or any political subdivision or taxing authority thereof or therein), will not be less than the amount provided in this 

 

 

Note to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts will not apply to:

 

(a)           any tax, assessment or other governmental charge that would not have been so imposed but for (i) the existence of any present or former connection between such Holder or beneficial owner of this Note (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such Holder, if such Holder is an estate or a trust, or a member or shareholder of such Holder, if such Holder is a partnership or corporation) and the United States or any political subdivision or taxing authority thereof or therein, including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident of the United States or treated as a resident thereof or being or having been engaged in a trade or business or present therein or having or having had a permanent establishment therein or (ii) such Holder’s or beneficial owner’s past or present status, as applicable (under prior or current law), as a personal holding company, foreign personal holding company, foreign private foundation or other foreign tax-exempt organization with respect to the United States, passive foreign investment company or controlled foreign corporation for United States tax purposes or corporation that accumulates earnings to avoid United States Federal income tax;

 

(b)           any estate, inheritance, gift, excise, sales, transfer, wealth or personal property tax or any similar tax, assessment or other governmental charge;

 

(c)           any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the Holder of this Note for payment more than 10 days after the date on which such payment became due and payable or the date on which payment thereof was duly provided for, whichever occurred later;

 

(d)           any tax, assessment or other governmental charge that is payable otherwise than by withholding from a payment on this Note;

 

(e)           any tax, assessment or other governmental charge required to be withheld by any Paying Agent from a payment on this Note, if such payment could be made without such withholding by any other Paying Agent;

 

(f)            any tax, assessment or other governmental charge that would not have been imposed but for a failure to comply with applicable certification, information, documentation, identification or other reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of this Note if such compliance is required by statute or regulation of the United States or by an applicable tax treaty to which the United States is a party as a precondition to relief or exemption from such tax, assessment or other governmental charge;

 

(g)           any tax, assessment or other governmental charge imposed on a Holder that actually or constructively owns 10 percent or more of the combined voting power of all classes of the Company’s stock or that is a bank receiving interest on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(h)           any withholding or deduction imposed on a payment to an individual where such withholding or deduction is required to be made pursuant to Council Directive 2003/48/EC or any other European Union Directive implementing the conclusions of the ECOFIN Council meeting of 26th — 27th November, 2000 on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive;

 

(i)            any tax, assessment, withholding, or deduction required by sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”), (or any Treasury Regulations or rulings promulgated thereunder); or

 

(j)            any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and (i);

 

 

nor shall Additional Amounts be paid with respect to a payment on this Note to a Holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to Additional Amounts (or payment of Additional Amounts would not have been necessary) had such beneficiary, settlor, member or beneficial owner been the Holder of this Note.

 

If (a) as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States (including of any political subdivision or taxing authority thereof or therein), or any change in the official application (including a ruling by a court of competent jurisdiction in the United States) or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the Original Issue Date of this Note, the Company becomes or will become obligated to pay Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note as described above, or (b) any act is taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) on or after the Original Issue Date of  this Note, whether or not such act is taken with respect to the Company or any affiliate, that results in a substantial likelihood that the Company will or may be required to pay such Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note, then the Company may, at its option, redeem, as a whole, but not in part, this Note and all other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note and all Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note on not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to the Accreted Value of such Notes at the date fixed for redemption, together with interest, if any, accrued thereon to the date fixed for redemption; provided that the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, not including substitution of the obligor under the Notes or any action that would entail a material cost to the Company. No redemption pursuant to (b) above may be made unless the Company shall have received an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) results in a substantial likelihood that it will or may be required to pay Additional Amounts described above and the Company shall have delivered to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem such Notes pursuant to their terms.

 

All notices of redemption shall state the Redemption Date, the Redemption Price, if fewer than all the outstanding Notes are to be redeemed, the identification of Notes to be redeemed, that on the Redemption Date the Redemption Price will become due and payable upon each Note, or portion thereof, to be redeemed, that interest on each Note, or portion thereof, called for redemption will cease to accrue on and including the Redemption Date and the place or places where Notes may be surrendered for redemption. However, payment of the Redemption Price, together with accrued interest to but excluding the Redemption Date, for a Note for which a redemption notice has been delivered is conditioned upon delivery of such Note (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) to the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, at any time (whether prior to, on or after the Redemption Date) after delivery of the redemption notice. Payment of the Redemption Price for the Notes (or portion thereof to be redeemed), together with accrued interest to the Redemption Date, will be made on the later of the Redemption Date or promptly following the time of delivery of the Note.

 

If an Event of Default with respect to the Notes shall occur and be continuing, a portion of the principal of this Note may be declared due and payable in the manner and with the effect provided in the Indenture. Such portion shall be equal to the Accreted Value of this Note at the time of such declaration. Upon payment (i) of such Accreted Value and (ii) of interest on any overdue Accreted Value (to the extent that the payment of such interest 

 

 

shall be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of and interest on this Note shall terminate.

 

The Indenture permits, in certain circumstances therein specified, the amendment thereof without the consent of the Holders of the Securities. The Indenture also permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations under the Indenture of the Company and the rights of Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or, subject to the provisions for satisfaction and discharge in Article Eight of the Indenture, of the Indenture, shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of Notes is registrable in the register of Securities, upon surrender of a Note for registration of transfer at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

No service charge shall be made by the Company, the Trustee or the Registrar for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith (other than exchanges pursuant to Sections 2.11, 3.6, 9.5 or 10.3 of the Indenture, not involving any transfer).

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, including without limitation, §§ 5-1401 and 5-1402 of the New York General Obligations Law and New York Civil Practice Law Rule 327(b).

 

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

 

 

IN WITNESS WHEREOF, The Walt Disney Company has caused this Instrument to be signed by the signature or facsimile signature of its Chairman of the Board, one of its Vice Chairmen, its President or one of its Vice Presidents, or its Treasurer or any Assistant Treasurer and attested by its Secretary or one of its Assistant Secretaries by his or her signature or a facsimile thereof, and its corporate seal or a facsimile of its corporate seal to be affixed hereunto or imprinted hereon.

 

	
(SEAL)
  	
 
  	
THE WALT DISNEY COMPANY
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
By:
  	
 
  
	
 
  	
 
  	
Name:  
  	
Christine M. McCarthy
  
	
 
  	
 
  	
Title:  
  	
Executive Vice President — Corporate Real Estate,  Sourcing, Alliances and Treasurer
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Attest:
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Name:
  	
Marsha L. Reed
  	
 
  	
 
  
	
Title:  
  	
Vice President-Governance Administration and  Assistant Secretary
  	
 
  	
 
  

 

 

ABBREVIATIONS

 

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

 

	
TEN COM o as tenants in common
  	
 
  	
UNIF GIFT MIN ACT                Custodian                
  
	
 
  	
 
  	
                                      (Cust.)                    (Minor)
  
	
 TEN ENT o as tenants by the entireties
  	
 
  	
 
  
	
 
  	
 
  	
Under Uniform Gifts to Minors Act
  
	
    JT TEN o as joint tenants with right
  	
 
  	
 
  
	
of survivorship and not as tenants
  	
 
  	
 
  
	
in common
  	
 
  	
(State)
  

 

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

 

 

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

 

Please Insert Social Security or Employer

Identification Number of Assignee

 

	
 

- -              |

 
  	
 
  

 

 

 

Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee

 

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing                                                                                                             attorney to transfer said Security on the books of the Company, with full power of substitution in the premises.

 

 

	
Dated:
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Signature
  

 

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

 

 

Exhibit “B”

 

	
REGISTERED
  	
 
  	
REGISTERED
  

 

	
NO. FXR-
  	
 
  	
MEDIUM-TERM NOTE, SERIES E

(Fixed Rate)
  	
 
  	
PRINCIPAL AMOUNT:
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
CUSIP:
  

 

Unless and until it is exchanged in whole or in part for Notes in definitive form, this Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. Unless this certificate is presented by an authorized representative of The Depository Trust Company, New York, New York (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC and any payment is made to Cede & Co. or such other entity as requested by an authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

 

	
ORIGINAL ISSUE DATE:
  	
 
  	
INTEREST RATE:
  
	
MATURITY DATE:
  	
 
  	
EARLIEST REDEMPTION DATE:
  
	
ORIGINAL ISSUE PRICE:
  	
 
  	
INTEREST PAYMENT DATES:
  
	
REGULAR RECORD DATES:
  	
 
  	
REDEMPTION PRICE:  
  ADDITIONAL AMOUNTS:
  

 

 

Date:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 

 

	
By:
  	
 
  	
 
  
	
 
  	
Authorized Signatory
  	
 
  

 

 

THE WALT DISNEY COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the Principal Amount specified above on the Maturity Date specified above and to pay interest thereon from the Original Issue Date specified above or from the most recent Interest Payment Date specified above to which interest has been paid or duly provided for, semiannually in arrears, in each year, commencing with the first Interest Payment Date next succeeding the Original Issue Date, at the Interest Rate per annum set forth above, until the principal hereof is paid or made available for payment; provided, however, that if the Original Issue Date of this Note is between a Regular Record Date specified above and the related Interest Payment Date, the first payment of interest on this Note will be made on the Interest Payment Date immediately following the next succeeding Regular Record Date to the registered Holder on such next succeeding Regular Record Date. Interest payments for this Note will include interest accrued to but excluding the Interest Payment Date. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture (as defined below), be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date set forth above (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date; provided, however, that interest payable at Maturity shall be payable to the Person to whom principal shall be payable. If any Interest Payment Date or Maturity with respect to this Note falls on a day that is not a Business Day, the payment due on such Interest Payment Date or at Maturity will be made on the following day that is a Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or Maturity, as the case may be.  Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day months.  Except as otherwise provided in the Indenture, any interest not punctually paid or duly provided for on any Interest Payment Date (herein called “Defaulted Interest”) will forthwith cease to be payable to the Holder on the Regular Record Date with respect to such Interest Payment Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee (as defined below), notice of which shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Payment of the principal of and interest on this Note will be made at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company, payments of interest on this Note (other than at Maturity) may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities or by wire transfer of immediately available funds to the account of the Holder of this Note if appropriate wire transfer instructions have been received in writing by the Trustee not less than 15 days prior to the applicable payment date. Notwithstanding the foregoing, the Company will make payments of interest on any Interest Payment Date other than the Maturity Date to each registered Holder of $10,000,000 (or, if the payment currency is other than United States dollars, the equivalent thereof in the particular payment currency) or more in aggregate principal amount of definitive Notes (whether having identical or different terms and provisions) by wire transfer of immediately available funds if the applicable registered Holder has delivered appropriate wire transfer instructions in writing to the Trustee not less than 15 days prior to the particular Interest Payment Date.  Any wire transfer instructions received by the Trustee shall remain in effect until revoked by the applicable registered Holder.

 

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

 

Unless the certificate of authentication hereon has been executed by the Trustee or its duly appointed co-authenticating agent by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

This Note is one of a duly authorized issue of securities (herein called the “Securities”) of the Company (which term includes any successor corporation under the Indenture hereinafter referred to) issued and to be 

 

 

issued pursuant to such Indenture. This Security is one of a series designated by the Company as its Medium-Term Notes, Series E (the “Notes”). The Indenture does not limit the aggregate principal amount of the Securities.

 

The Company issued this Note pursuant to an Indenture, dated as of September 24, 2001 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, a national banking association, 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 statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered.

 

The Notes are issuable as Registered Securities, without coupons, in denominations of $2,000 and any amount in excess thereof which is an integral multiple of $1,000. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of any authorized denomination, as requested by the Holder surrendering the same, upon surrender of the Note or Notes to be exchanged at any office or agency described below where Notes may be presented for registration of transfer.

 

The Company may from time to time, without the consent of existing Note Holders, issue additional Notes (“Additional Notes”) having the same terms and conditions (including maturity and interest payment terms) as previously issued Notes in all respects, except for issue date, issue price and the first payment of interest. Additional Notes issued in this manner will be fungible with the previously issued Notes to the extent specified in the applicable Pricing Supplement.

 

This Note may not be redeemed prior to the Earliest Redemption Date set forth above. If no Earliest Redemption Date is so set forth, this Note is not redeemable prior to the Maturity Date. This Note is redeemable at any time on or after the Earliest Redemption Date set forth above at the option of the Company, in whole or from time to time in part, upon not less than 30 nor more than 60 days’ notice mailed to the registered Holder hereof, at the Redemption Price equal to the amount set forth above, together in each case with accrued interest to but excluding the Redemption Date.  Notwithstanding the foregoing, in the event this Note is subject to the payment of Additional Amounts (as defined below) as specified above, then this Note may be redeemed on the terms and subject to the conditions set forth below regarding Additional Amounts.

 

Notwithstanding the preceding paragraph, installments of interest whose Stated Maturity is prior to the Redemption Date of any Note will be payable to the Holder of such Note, or one or more Predecessor Securities, of record at the close of business on the relevant Regular Record Dates referred to above, all as provided in the Indenture.

 

In the event that this Note is subject to payment of Additional Amounts (as defined below) as specified above, all payments of principal and interest with respect to this Note will be made without withholding or deduction at the source for, or on account of, any present or future taxes, fees, duties, assessments or governmental charges of whatever nature imposed or levied by the United States or any political subdivision or taxing authority thereof or therein, unless such withholding or deduction is required by (i) the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision thereof or therein or (ii) an official position regarding the application, administration or enforcement of such laws, regulations or rulings (including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in the United States or any political subdivision thereof).

 

In the event this Note is subject to payment of Additional Amounts (as defined below) as specified above, the Company will, subject to certain exceptions and limitations set forth below, pay to the Holder hereof who is a United States Alien, as additional interest, such amounts (“Additional Amounts”) as may be necessary in order that every net payment on this Note (including payment of the principal of and interest on such this Note) by the Company or a Paying Agent, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such payment by the United States (or any political subdivision or taxing authority thereof or therein), will not be less than the amount provided in this 

 

 

Note to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts will not apply to:

 

(a)           any tax, assessment or other governmental charge that would not have been so imposed but for (i) the existence of any present or former connection between such Holder or beneficial owner of this Note (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such Holder, if such Holder is an estate or a trust, or a member or shareholder of such Holder, if such Holder is a partnership or corporation) and the United States or any political subdivision or taxing authority thereof or therein, including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident of the United States or treated as a resident thereof or being or having been engaged in a trade or business or present therein or having or having had a permanent establishment therein or (ii) such Holder’s or beneficial owner’s past or present status, as applicable (under prior or current law), as a personal holding company, foreign personal holding company, foreign private foundation or other foreign tax-exempt organization with respect to the United States, passive foreign investment company or controlled foreign corporation for United States tax purposes or corporation that accumulates earnings to avoid United States Federal income tax;

 

(b)           any estate, inheritance, gift, excise, sales, transfer, wealth or personal property tax or any similar tax, assessment or other governmental charge;

 

(c)           any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the Holder of this Note for payment more than 10 days after the date on which such payment became due and payable or the date on which payment thereof was duly provided for, whichever occurred later;

 

(d)           any tax, assessment or other governmental charge that is payable otherwise than by withholding from a payment on this Note;

 

(e)           any tax, assessment or other governmental charge required to be withheld by any Paying Agent from a payment on this Note, if such payment could be made without such withholding by any other Paying Agent;

 

(f)            any tax, assessment or other governmental charge that would not have been imposed but for a failure to comply with applicable certification, information, documentation, identification or other reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of this Note if such compliance is required by statute or regulation of the United States or by an applicable tax treaty to which the United States is a party as a precondition to relief or exemption from such tax, assessment or other governmental charge;

 

(g)           any tax, assessment or other governmental charge imposed on a Holder that actually or constructively owns 10 percent or more of the combined voting power of all classes of the Company’s stock or that is a bank receiving interest on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(h)           any withholding or deduction imposed on a payment to an individual where such withholding or deduction is required to be made pursuant to Council Directive 2003/48/EC or any other European Union Directive implementing the conclusions of the ECOFIN Council meeting of 26th — 27th November, 2000 on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive;

 

(i)                                     any tax, assessment, withholding, or deduction required by sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”), (or any Treasury Regulations or rulings promulgated thereunder); or

 

(j)            any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and (i);

 

 

nor shall Additional Amounts be paid with respect to a payment on this Note to a Holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to Additional Amounts (or payment of Additional Amounts would not have been necessary) had such beneficiary, settlor, member or beneficial owner been the Holder of this Note.

 

If (a) as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States (including of any political subdivision or taxing authority thereof or therein), or any change in the official application (including a ruling by a court of competent jurisdiction in the United States) or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the Original Issue Date of this Note, the Company becomes or will become obligated to pay Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note as described above, or (b) any act is taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) on or after the Original Issue Date of this Note, whether or not such act is taken with respect to the Company or any affiliate, that results in a substantial likelihood that the Company will or may be required to pay such Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note, then the Company may, at its option, redeem, as a whole, but not in part, this Note and all other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note and all Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note on not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of such Notes, together with interest accrued thereon to the date fixed for redemption; provided that the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, not including substitution of the obligor under the Notes or any action that would entail a material cost to the Company. No redemption pursuant to (b) above may be made unless the Company shall have received an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) results in a substantial likelihood that it will or may be required to pay Additional Amounts described above and the Company shall have delivered to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem such Notes pursuant to their terms.

 

All notices of redemption shall state the Redemption Date, the Redemption Price, if fewer than all the outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of Notes to be redeemed, that on the Redemption Date the Redemption Price will become due and payable upon each Note, or portion thereof, to be redeemed, that interest on each Note, or portion thereof, called for redemption will cease to accrue on and including the Redemption Date and the place or places where Notes may be surrendered for redemption. However, payment of the Redemption Price, together with accrued interest to but excluding the Redemption Date, for a Note for which a redemption notice has been delivered is conditioned upon delivery of such Note (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) to the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, at any time (whether prior to, on or after the Redemption Date) after delivery of the redemption notice.  Payment of the Redemption Price for the Note (or portion thereof to be redeemed), together with accrued interest to the Redemption Date, will be made on the later of the Redemption Date or promptly following the time of delivery of the Note.  If fewer than all of the Notes with the same Original Issue Date, Interest Rate and Stated Maturity and all Additional Notes, if any, with the same Stated Maturity and Interest Rate as this Note are to be redeemed at any time, selection of such Notes for redemption will be made by the Trustee by such method as the Trustee shall deem fair and appropriate.

 

In the event of redemption of this Note in part only, a new Note or Notes of like tenor for the aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of this Note so surrendered will be issued in the name of the Holder hereof upon the cancellation hereof.

 

 

For all purposes of this Note and the Indenture, unless the context otherwise requires, all provisions relating to the redemption by the Company of Notes shall relate, in the case of any Notes redeemed or to be redeemed by the Company only in part, to the portion of the principal amount of such Notes which has been or is to be so redeemed.

 

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

 

The Indenture permits, in certain circumstances therein specified, the amendment thereof without the consent of the Holders of the Securities. The Indenture also permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations under the Indenture of the Company and the rights of Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or, subject to the provisions for satisfaction and discharge in Article Eight of the Indenture, of the Indenture, shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of Notes is registrable in the register of Securities, upon surrender of a Note for registration of transfer at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

No service charge shall be made by the Company, the Trustee or the Registrar for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith (other than exchanges pursuant to Sections 2.11, 3.6, 9.5 or 10.3 of the Indenture, not involving any transfer).

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, including without limitation, §§ 5-1401 and 5-1402 of the New York General Obligations Law and New York Civil Practice Law Rule 327(b).

 

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

 

 

IN WITNESS WHEREOF, The Walt Disney Company has caused this Instrument to be signed by the signature or facsimile signature of its Chairman of the Board, one of its Vice Chairmen, its President or one of its Vice Presidents, or its Treasurer or any Assistant Treasurer and attested by its Secretary or one of its Assistant Secretaries by his or her signature or a facsimile thereof, and its corporate seal or a facsimile of its corporate seal to be affixed hereunto or imprinted hereon.

 

	
(SEAL)
  	
THE WALT DISNEY COMPANY
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
By:
  	
 
  
	
 
  	
Name:  
  	
Christine M. McCarthy
  
	
 
  	
Title:  
  	
Executive Vice President-Corporate Real Estate,  Sourcing, Alliances and Treasurer
  
	
 
  	
 
  
	
 
  	
 
  
	
Attest:
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
 
  	
 
  
	
Name:  
  	
Marsha L. Reed
  	
 
  
	
Title:  
  	
Vice President-Governance Administration and  Assistant Secretary
  	
 
  

 

 

ABBREVIATIONS

 

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

 

	
TEN COM o as tenants in common
  	
 
  	
UNIF GIFT MIN ACT                Custodian               
  
	
 
  	
 
  	
                                     (Cust.)                   (Minor)
  
	
 TEN ENT o as tenants by the entireties
  	
 
  	
 
  
	
 
  	
 
  	
Under Uniform Gifts to Minors Act
  
	
    JT TEN o as joint tenants with right
  	
 
  	
 
  
	
of survivorship and not as tenants
  	
 
  	
 
  
	
in common
  	
 
  	
(State)
  

 

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

 

 

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

 

Please Insert Social Security or Employer

Identification Number of Assignee

 

	
 

- -              |

 
  	
 
  

 

 

 

Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee

 

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing                                                                                             attorney to transfer said Security on  the books of the Company, with full power of substitution in the premises.

 

 

	
Dated:
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Signature
  

 

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

 

 

Exhibit “C”

 

	
REGISTERED
  	
 
  	
REGISTERED
  

 

	
NO. FLR-
  	
 
  	
MEDIUM-TERM NOTE, SERIES E
  	
 
  	
PRINCIPAL AMOUNT:
  
	
 
  	
 
  	
(Floating Rate)
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
CUSIP:
  

 

Unless and until it is exchanged in whole or in part for Notes in definitive form, this Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. Unless this certificate is presented by an authorized representative of The Depository Trust Company, New York, New York (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC and any payment is made to Cede & Co. or such other entity as requested by an authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

 

	
ORIGINAL ISSUE DATE:
  	
 
  	
ORIGINAL ISSUE PRICE:
  
	
MATURITY DATE:
  	
 
  	
EARLIEST REDEMPTION DATE:
  
	
INITIAL MATURITY DATE (for Renewable Notes):
  	
 
  	
 
  
	
FINAL MATURITY DATE (for Renewable Notes):
  	
 
  	
 
  
	
INITIAL INTEREST RATE:
  	
 
  	
REDEMPTION PRICE:
  
	
BASE RATE OR RATES:
  	
 
  	
INTEREST PAYMENT DATES:
  
	
o COMMERCIAL PAPER RATE
  	
 
  	
 
  
	
o LIBOR Page:
  	
 
  	
REGULAR RECORD DATES:
  
	
o Reuters LIBOR 01
  	
 
  	
 
  
	
o Other (specify):
  	
 
  	
 
  
	
o Index Currency
  	
 
  	
 
  
	
o CD RATE
  	
 
  	
 
  
	
o FEDERAL FUNDS RATE
  	
 
  	
 
  
	
o Federal Funds (Effective) Rate
  	
 
  	
INTEREST PAYMENT PERIOD:
  
	
o Federal Funds Open Rate
  	
 
  	
 
  
	
o Federal Funds Target Rate
  	
 
  	
 
  
	
o TREASURY RATE
  	
 
  	
o Monthly
  
	
o PRIME RATE
  	
 
  	
o Quarterly
  
	
 
  	
 
  	
o Semiannually
  
	
o CMT RATE
  	
 
  	
o Annually
  
	
o Reuters Page FRBCMT
  	
 
  	
 
  
	
o Reuters Page FEDCMT
  	
 
  	
 
  
	
 
  	
 
  	
ADDITIONAL AMOUNTS:
  
	
o If Reuters Page FEDCMT:
  	
 
  	
 
  
	
o 1 Week
  	
 
  	
INTEREST RESET PERIOD:
  
	
o 1 Month
  	
 
  	
o Daily
  
	
o ELEVENTH DISTRICT COST OF FUNDS RATE
  	
 
  	
o Weekly
  
	
o EURIBOR
  	
 
  	
o Monthly
  
	
o OTHER: 
  	
 
  	
o Quarterly
  
	
INDEX MATURITY:
  	
 
  	
o Semiannually
  
	
o 1 Month
  	
 
  	
o Annually
  
	
o 3 Months
  	
 
  	
 
  
	
o 6 Months
  	
 
  	
INTEREST RESET DATES:
  
	
o 1 Year
  	
 
  	
 
  

 

 

	
SPREAD: plus              basis points
  	
 
  	
 
  
	
(Indicate plus or minus
  	
 
  	
 
  
	
and number of basis points)
  	
 
  	
 
  
	
SPREAD MULTIPLIER:
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
o OTHER:
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
MAXIMUM INTEREST RATE:  %
  	
 
  	
 
  
	
MINIMUM INTEREST RATE:  %
  	
 
  	
CALCULATION AGENT:
  
	
 
  	
 
  	
o WELLS FARGO BANK, NATIONAL ASSOCIATION
  
	
 
  	
 
  	
o
  
	
 
  	
 
  	
OTHER:
  

 

 

	
Dated:
  	
 
  	
 
  

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
  
	
 
  
	
 
  	
 
  	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Authorized Signatory
  	
 
  

 

 

THE WALT DISNEY COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the Principal Amount specified above on the Maturity Date specified above and to pay interest thereon from the Original Issue Date specified above or from the most recent Interest Payment Date specified above to which interest has been paid or duly provided for at a rate per annum equal to the Initial Interest Rate specified above until the first Interest Reset Date specified above following the Original Issue Date specified above and thereafter at a rate determined in accordance with the provisions below under the heading “Determination of Commercial Paper Rate,” “Determination of LIBOR,” “Determination of CD Rate,” “Determination of Federal Funds Rate,” “Determination of Treasury Rate,” “Determination of Prime Rate,” “Determination of CMT Rate,” “Determination of Eleventh District Cost of Funds Rate” or “Determination of EURIBOR” depending upon whether the applicable Base Rate specified above is the Commercial Paper Rate, LIBOR, CD Rate, Federal Funds Rate, Treasury Rate, Prime Rate, CMT Rate, Eleventh District Cost of Funds Rate or EURIBOR, which rate may be adjusted by adding or subtracting the Spread or multiplying the Base Rate by the Spread Multiplier depending on whether a Spread or Spread Multiplier is specified above, until the principal hereof is paid or duly made available for payment. The “Spread,” if any, is the number of basis points to be added to or subtracted from the Base Rate or Rates, as specified above, and the “Spread Multiplier,” if any, is the percentage of the Base Rate or Rates, as specified above, by which such Base Rate or Rates are to be multiplied. The “Index Maturity,” if any, is the period to maturity of the instrument or obligation with respect to which the related Base Rate or Rates are calculated, as designated above. If more than one Base Rate is specified above, the applicable Base Rate shall be the lowest of such Base Rates on the Interest Determination Date. The Company will pay interest in arrears monthly, quarterly, semiannually or annually as specified above under “Interest Payment Period,” commencing with the first Interest Payment Date specified above next succeeding the Original Issue Date and thereafter on the Interest Payment Dates as specified above, and at Maturity. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture (as defined below), be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date set forth above (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date; provided, however, that the interest payment at Maturity shall be payable to the Person to whom principal shall be payable. If the Maturity of this Note falls on a day that is not a Business Day, the payment of principal and interest may be made on the next succeeding Business Day, and no interest on such payment shall accrue for the period from and after the Maturity. Except as otherwise provided in the Indenture, any interest not punctually paid or duly provided for on any Interest Payment Date (herein called “Defaulted Interest”) will forthwith cease to be payable to the Holder on the Regular Record Date with respect to such Interest Payment Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee (as defined below), notice of which shall be given to Holders of Notes not less than ten days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Payment of the principal of and interest on this Note will be made at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company, payments of interest on this Note (other than at Maturity) may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities or by wire transfer of immediately available funds to the account of the Holder of this Note if appropriate wire transfer instructions have been received in writing by the Trustee not less than 15 days prior to the applicable payment date.  Notwithstanding the foregoing, the Company will make payments of interest on any Interest Payment Date other than the Maturity Date to each registered Holder of $10,000,000 (or, if the payment currency is other than United States dollars, the equivalent thereof in the particular payment currency) or more in aggregate principal amount of definitive Notes (whether having identical or different terms and provisions) by wire transfer of immediately available funds if the applicable registered Holder has delivered appropriate wire transfer instructions in writing to the Trustee not less than 15 days prior to the particular Interest Payment Date.  Any wire transfer instructions received by the Trustee shall remain in effect until revoked by the applicable registered Holder.

 

 

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

 

Unless the certificate of authentication hereon has been executed by the Trustee or its duly appointed co-authenticating agent by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

This Note is one of a duly authorized issue of securities (herein called the “Securities”) of the Company (which term includes any successor corporation under the Indenture hereinafter referred to) issued and to be issued pursuant to such Indenture. This Security is one of a series designated by the Company as its Medium-Term Notes, Series E (the “Notes”). The Indenture does not limit the aggregate principal amount of the Securities.

 

The Company issued this Note pursuant to an Indenture, dated as of September 24, 2001 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, a national banking association, 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 statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered.

 

The Notes are issuable as Registered Securities, without coupons, in denominations of $2,000 and any amount in excess thereof which is an integral multiple of $1,000. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of any authorized denomination, as requested by the Holder surrendering the same, upon surrender of the Note or Notes to be exchanged at any office or agency described below where Notes may be presented for registration of transfer.

 

The Company may from time to time, without the consent of existing Note Holders, issue additional Notes (“Additional Notes”) having the same terms and conditions (including maturity and interest payment terms) as previously issued Notes in all respects, except for issue date, issue price and the first payment of interest.  Additional Notes issued in this manner will be fungible with the previously issued Notes to the extent specified in the applicable Pricing Supplement.

 

This Note may not be redeemed prior to the Earliest Redemption Date set forth above. If no Earliest Redemption Date is so set forth, this Note is not redeemable prior to the Maturity Date. This Note is redeemable at any time on or after the Earliest Redemption Date set forth above at the option of the Company, in whole or from time to time in part, upon not less than 30 nor more than 60 days’ notice mailed to the registered Holder hereof, at the Redemption Price equal to the amount set forth above, together in each case with accrued interest to but excluding the Redemption Date. Notwithstanding the foregoing, in the event this Note is subject to the payment of Additional Amounts (as defined below) as specified above, then this Note may be redeemed on the terms and subject to the conditions set forth below regarding Additional Amounts.

 

Notwithstanding the preceding paragraph, installments of interest whose Stated Maturity is prior to the Redemption Date of any Note will be payable to the Holder of such Note, or one or more Predecessor Securities, of record at the close of business on the relevant Regular Record Dates referred to above, all as provided in the Indenture.

 

In the event that this Note is subject to payment of Additional Amounts (as defined below) as specified above, all payments of principal and interest with respect to this Note will be made without withholding or deduction at the source for, or on account of, any present or future taxes, fees, duties, assessments or governmental charges of whatever nature imposed or levied by the United States or any political subdivision or taxing authority thereof or therein, unless such withholding or deduction is required by (i) the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision thereof or therein or (ii) an official position regarding the application, administration or enforcement of such laws, regulations or rulings (including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in the United States or any political subdivision thereof).

 

 

In the event this Note is subject to payment of Additional Amounts (as defined below) as specified above, the Company will, subject to certain exceptions and limitations set forth below, pay to the Holder hereof who is a United States Alien, as additional interest, such amounts (“Additional Amounts”) as may be necessary in order that every net payment on this Note (including payment of the principal of and interest on such this Note) by the Company or a Paying Agent, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such payment by the United States (or any political subdivision or taxing authority thereof or therein), will not be less than the amount provided in this Note to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts will not apply to:

 

(a)           any tax, assessment or other governmental charge that would not have been so imposed but for (i) the existence of any present or former connection between such Holder or beneficial owner of this Note (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such Holder, if such Holder is an estate or a trust, or a member or shareholder of such Holder, if such Holder is a partnership or corporation) and the United States or any political subdivision or taxing authority thereof or therein, including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident of the United States or treated as a resident thereof or being or having been engaged in a trade or business or present therein or having or having had a permanent establishment therein or (ii) such Holder’s or beneficial owner’s past or present status, as applicable (under prior or current law), as a personal holding company, foreign personal holding company, foreign private foundation or other foreign tax-exempt organization with respect to the United States, passive foreign investment company or controlled foreign corporation for United States tax purposes or corporation that accumulates earnings to avoid United States Federal income tax;

 

(b)           any estate, inheritance, gift, excise, sales, transfer, wealth or personal property tax or any similar tax, assessment or other governmental charge;

 

(c)           any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the Holder of this Note for payment more than 10 days after the date on which such payment became due and payable or the date on which payment thereof was duly provided for, whichever occurred later;

 

(d)           any tax, assessment or other governmental charge that is payable otherwise than by withholding from a payment on this Note;

 

(e)           any tax, assessment or other governmental charge required to be withheld by any Paying Agent from a payment on this Note, if such payment could be made without such withholding by any other Paying Agent;

 

(f)            any tax, assessment or other governmental charge that would not have been imposed but for a failure to comply with applicable certification, information, documentation, identification or other reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of this Note if such compliance is required by statute or regulation of the United States or by an applicable tax treaty to which the United States is a party as a precondition to relief or exemption from such tax, assessment or other governmental charge;

 

(g)           any tax, assessment or other governmental charge imposed on a Holder that actually or constructively owns 10 percent or more of the combined voting power of all classes of the Company’s stock or that is a bank receiving interest on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(h)           any withholding or deduction imposed on a payment to an individual where such withholding or deduction is required to be made pursuant to Council Directive 2003/48/EC or any other European Union Directive implementing the conclusions of the ECOFIN Council meeting of 26th — 

 

 

27th November, 2000 on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive;

 

(i)           any tax, assessment, withholding, or deduction required by sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”), (or any Treasury Regulations or rulings promulgated thereunder); or

 

(j)            any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and (i);

 

nor shall Additional Amounts be paid with respect to a payment on this Note to a Holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to Additional Amounts (or payment of Additional Amounts would not have been necessary) had such beneficiary, settlor, member or beneficial owner been the Holder of this Note.

 

If (a) as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States (including of any political subdivision or taxing authority thereof or therein), or any change in the official application (including a ruling by a court of competent jurisdiction in the United States) or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the Original Issue Date of this Note, the Company becomes or will become obligated to pay Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note as described above, or (b) any act is taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) on or after the Original Issue Date of this Note, whether or not such act is taken with respect to the Company or any affiliate, that results in a substantial likelihood that the Company will or may be required to pay such Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note, then the Company may, at its option, redeem, as a whole, but not in part, this Note and all other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note and all Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note on not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of such Notes, together with interest accrued thereon to the date fixed for redemption; provided that the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, not including substitution of the obligor under the Notes or any action that would entail a material cost to the Company. No redemption pursuant to (b) above may be made unless the Company shall have received an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) results in a substantial likelihood that it will or may be required to pay Additional Amounts described above and the Company shall have delivered to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem such Notes pursuant to their terms.

 

All notices of redemption shall state the Redemption Date, the Redemption Price, if fewer than all the outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of Notes to be redeemed, that on and including the Redemption Date the Redemption Price will become due and payable upon each Note, or portion thereof, to be redeemed, that interest on each Note, or portion thereof, called for redemption will cease to accrue on the Redemption Date and the place or places where Notes may be surrendered for redemption. However, payment of the Redemption Price, together with accrued interest to but excluding the Redemption Date, for a Note for which a redemption notice has been delivered is conditioned upon delivery of such Note (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) to the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, at any time (whether prior to, on or after the Redemption Date) after delivery of the redemption notice.  Payment of the Redemption Price for the Note (or portion thereof to be redeemed), together with accrued interest to the Redemption Date, will be made on the later 

 

 

of the Redemption Date or promptly following the time of delivery of the Note.  If fewer than all of the Notes with the same Original Issue Date, Base Rate or Rates and Stated Maturity and all Additional Notes with the same Base Rate or Rates and Stated Maturity as this Note are to be redeemed at any time, selection of such Notes for redemption will be made by the Trustee by such method as the Trustee shall deem fair and appropriate.

 

In the event of redemption of this Note in part only, a new Note or Notes of like tenor for the aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of this Note so surrendered will be issued in the name of the Holder hereof upon the cancellation hereof.

 

For all purposes of this Note and the Indenture, unless the context otherwise requires, all provisions relating to the redemption by the Company of Notes shall relate, in the case of any Notes redeemed or to be redeemed by the Company only in part, to the portion of the principal amount of such Notes which has been or is to be so redeemed.

 

Commencing with the first Interest Reset Date specified above following the Original Issue Date, the rate at which interest on this Note is payable shall be adjusted daily, weekly, monthly, quarterly, semiannually or annually as specified above under “Interest Reset Period.” If any Interest Reset Date specified above would otherwise be a day that is not a Business Day, such Interest Reset Date shall be postponed to the next succeeding day that is a Business Day, except that if the rate of interest on this Note shall be determined with reference to the provisions under the heading “Determination of LIBOR” or “Determination of EURIBOR” below, and such Business Day is in the next succeeding calendar month, such Interest Reset Date shall be the last Business Day in the preceding month. If any Interest Payment Date (other than an Interest Payment Date occurring on the Maturity Date) specified above falls on a day that is not a Business Day, such Interest Payment Date shall be the following day that is a Business Day, except that if the rate of interest on the Note shall be determined with reference to the provisions under the heading “Determination of LIBOR” or “Determination of EURIBOR” below, and such Business Day is in the next succeeding calendar month, such Interest Payment Date shall be the immediately preceding day that is a Business Day. “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive order to close in The City of New York; provided, however, that with respect to Notes the payment of which is to be made in a denominated currency other than U.S. dollars only, such day is also not a day on which commercial banks are authorized or required by law, regulation or executive order to close in the Principal Financial Center of the country of such denominated currency; provided, however, that with respect to LIBOR Notes only, such day is also a London Business Day; and provided, further, that with respect to EURIBOR Notes and notes denominated in Euros only, such day is also a TARGET Business Day. “London Business Day” means any day on which commercial banks are open for business (including dealings in the LIBOR currency) in London.  “TARGET Business Day” means any day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET 2) System, which utilizes a single shared platform and which was launched on November 19, 2007, is open.  “U.S. Government Securities Business Day” means any day except for a Saturday, Sunday or a day on which the Bond Market Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.  “Principal Financial Center” means, as applicable: (a) the capital city of the country issuing the payment currency; or (b) the capital city of the country to which the LIBOR currency relates; provided, however, that with respect to United States dollars, Australian dollars, Canadian dollars, euros, South African rand and Swiss francs, the “Principal Financial Center” shall be The City of New York, Sydney, Toronto (solely in the case of the payment currency), London (solely in the case of the LIBOR currency), Johannesburg and Zurich, respectively. The interest rate applicable to each Interest Reset Period commencing on the Interest Reset Date or dates with respect to such Interest Reset Period will be the rate determined on the applicable “Interest Determination Date” determined as specified below. The rate of interest in effect with respect to this Note on each day that is not an Interest Reset Date will be the interest rate determined as of the Interest Determination Date pertaining to the immediately preceding Interest Reset Date and the interest rate in effect on any day that is an Interest Reset Date will be the interest rate determined as of the Interest Determination Date pertaining to such Interest Reset Date, subject in either case to any applicable provisions of law and any Maximum Interest Rate or Minimum Interest Rate limitations specified above; provided, however, that the interest rate in effect with respect to this Note for the period from the Original Issue Date to the first Interest Reset Date will be the Initial Interest Rate specified above.

 

 

In addition to any Maximum Interest Rate specified above, the interest rate on this Note will in no event be higher than the maximum rate permitted by New York law, as the same may be modified by United States law of general application.

 

All percentages resulting from any calculation on this Note will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upward, and all amounts used in or resulting from such calculation on this Note will be rounded, in the case of United States dollars, to the nearest cent, or in the case of a foreign currency, to the nearest unit (with one-half cent or unit being rounded upward).

 

Determination of Commercial Paper Rate.  If the Commercial Paper Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent specified above with reference to the Commercial Paper Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“Commercial Paper Rate” means, with respect to any Interest Determination Date specified below (a “Commercial Paper Interest Determination Date”), the Money Market Yield (as defined below) on such date of the rate for commercial paper having the Index Maturity specified above as published in H.15(519), under the heading “Commercial Paper-Nonfinancial.” In the event that such rate is not published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Commercial Paper Interest Determination Date, then the Commercial Paper Rate will be the Money Market Yield on such Commercial Paper Interest Determination Date of the rate for commercial paper of the Index Maturity specified above as published in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying the applicable rate, under the heading “Commercial Paper-Nonfinancial.” If such rate is not published in either H.15(519) or H.15 Daily Update by 3:00 P.M., New York City time, on such Calculation Date, then the Commercial Paper Rate will be calculated by the Calculation Agent and will be the Money Market Yield of the arithmetic mean of the offered rates, as of approximately 11:00 A.M., New York City time, on such Commercial Paper Interest Determination Date, of three leading dealers of United States dollar commercial paper in New York, New York (which may include one or more of the agents (the “Agents”) appointed by the Company from time to time to offer and sell the Notes or their affiliates) selected by the Calculation Agent (after consultation with the Company) for commercial paper of the Index Maturity specified above placed for an industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized statistical rating agency; provided, however, that if the dealers selected as aforesaid by the Calculation Agent are not quoting offered rates as mentioned in this sentence, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such Commercial Paper Interest Determination Date.

 

“Money Market Yield” shall be a yield (expressed as a percentage) calculated in accordance with the following formula:

 

	
Money Market Yield =
  	
D X 360
  	
X 100
  
	
 
  	
360 - (D X M)
  

 

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount basis and expressed as a decimal and “M” refers to the actual number of days in the interest period for which interest is being calculated.

 

“H.15(519)” as used herein means the weekly statistical release designated as H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System.

 

“H.15 Daily Update” as used herein means the daily update of H.15(519), available through the world-wide-web site of the Board of Governors of the Federal Reserve System at http:/www.federalreserve.gov/releases/h15/update/h15upd.htm, or any successor site or publication.

 

 

Determination of LIBOR.  If LIBOR is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to LIBOR and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

With respect to a LIBOR Interest Determination Date, LIBOR will be the rate for deposits in the Index Currency having the Index Maturity specified above, commencing on the second London Business Day immediately following that LIBOR Interest Determination Date, that appears on the LIBOR Page (as defined below) as of 11:00 A.M., London time, on that LIBOR Interest Determination Date.  “LIBOR Page” means either, (a) the display on the page specified above for the purpose of displaying the London interbank rates of major banks for the Index Currency; or (b) if no such page is specified above as the method for calculating LIBOR, the display on Reuters (or any successor service) on the LIBOR 01 page (or any other page as may replace such page on such service) for the purpose of displaying the London interbank rates of major banks for the Index Currency.

 

If  the rate referred to in the paragraph above does not so appear, LIBOR will be determined as of approximately 11:00 A.M., London time, on such LIBOR Interest Determination Date on the basis of the rate at which deposits in the applicable Index Currency having the Index Maturity specified above are offered by four major reference banks (which may include affiliates of the Agents) in the London interbank market selected by the Calculation Agent (after consultation with the Company) commencing on the second London Business Day immediately following such LIBOR Interest Determination Date and in a principal amount equal to an amount that is representative for a single transaction in such market at such time. The Calculation Agent will request the principal London office of each of such banks to provide a quotation of its rate. If at least two such quotations are provided, then LIBOR for such LIBOR Interest Determination Date will be the arithmetic mean of such quotations. If fewer than two quotations are provided, then LIBOR for such LIBOR Interest Determination Date will be the arithmetic mean of the rates quoted as of approximately 11:00 A.M. in the applicable Principal Financial Center (as defined above), on such LIBOR Interest Determination Date by three major banks (which may include affiliates of the Agents) in such Principal Financial Center selected by the Calculation Agent (after consultation with the Company) for loans in the applicable Index Currency to leading European banks having the specified Index Maturity, and in a principal amount equal to an amount of not less than $1,000,000 (or the equivalent in the Index Currency, if the Index Currency is not the U.S. dollar) and that is representative for a single transaction in such market at such time; provided, however, that if the banks selected as aforesaid by the Calculation Agent are not quoting as mentioned in this sentence, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such LIBOR Interest Determination Date.

 

“Index Currency” means the index currency (including composite currencies) specified above as the currency for which LIBOR shall be calculated.  If no such index currency is specified above, the Index Currency shall be U.S. dollars.

 

Determination of CD Rate.  If the CD Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the CD Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“CD Rate” means, with respect to any Interest Determination Date specified below (a “CD Interest Determination Date”), the rate on such date for negotiable certificates of deposit having the Index Maturity designated above, as such rate is published in H.15(519) under the caption “CDs (secondary market)” or, if not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such CD Interest Determination Date, the CD Rate will be the rate on such CD Interest Determination Date for negotiable certificates of deposit of the Index Maturity as published in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “CDs (secondary market)”. If by 3:00 P.M., New York City time, on the Calculation Date pertaining to such CD Interest Determination Date such rate is not yet published in either H.15(519) or H.15 Daily Update, then the CD Rate on such CD Interest Determination Date will be calculated by the Calculation Agent and will be the arithmetic mean of the secondary market offered rates as of 10:00 

 

 

A.M., New York City time, on such CD Interest Determination Date, of three leading non-bank dealers in negotiable U.S. dollar certificates of deposit in The City of New York (which may include one or more of the Agents or their affiliates) selected by the Calculation Agent (after consultation with the Company) for negotiable certificates of deposit of major United States money market banks for negotiable United States certificates of deposit with a remaining maturity closest to the Index Maturity specified above in an amount that is representative for a single transaction in that market at that time; provided, however, that if the dealers selected as aforesaid by the Calculation Agent are not quoting offered rates as set forth above, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such CD Interest Determination Date.

 

Determination of Federal Funds Rate.  If the Federal Funds Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the Federal Funds Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“Federal Funds Rate” means, with respect to any Federal Funds Interest Determination Date, (1) if the “Federal Funds (Effective) Rate” is specified above, the Federal Funds Rate will be the rate on such date for Federal Funds as published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Reuters (or any successor service) on page FEDFUNDS 1 (or any other page as may replace the specified page on that service) (“FEDFUNDS 1 Page”) or, if the rate does not so appear on FEDFUNDS 1 Page or is not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Federal Funds Interest Determination Date, the Federal Funds Rate will be the rate on such Federal Funds Interest Determination Date for United States dollar federal funds as published in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “Federal Funds (Effective)”; (2) if  “Federal Funds Open Rate” is specified above, the Federal Funds Rate will be the rate on that date set forth under the caption “Federal Funds” for the Index Maturity specified above opposite the caption “Open” and displayed on Reuters (or any successor service) on page 5 (or any other page as may replace the specified page on that service) (“Reuters Page 5”) or, if the rate does not appear on Reuters Page 5 or is not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to that Federal Funds Interest Determination Date, the Federal Funds Rate will be the rate on that Federal Funds Interest Determination Date displayed on FFPREBON Index page on Bloomberg L.P. (“Bloomberg”), which is the Fed Funds Opening Rate as reported by Prebon Yamane (or a successor) on Bloomberg; (3) if “Federal Funds Target Rate” is specified above, the Federal Funds Rate will be the rate on that date for U.S. dollar federal funds displayed on the FDTR Index page on Bloomberg, or if the rate does not appear on the FDTR Index page on Bloomberg or is not so published by 3:00 P.M., New York City time, on the Calculation Date, the rate for that day appearing on Reuters (or any successor service) on page USFFTARGET= (or any other page as may replace the specified page on that service) (“Reuters Page USFFTARGET=“). If, by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Federal Funds Interest Determination Date such rate referenced above is not yet published, the Federal Funds Rate for such Federal Funds Interest Determination Date will be calculated by the Calculation Agent and will be the arithmetic mean of the rates for the last transaction in overnight United States dollars Federal Funds arranged by three leading brokers of Federal Funds transactions in The City of New York (which may include one or more of the Agents or their affiliates), which brokers have been selected by the Calculation Agent (after consultation with the Company), as of 9:00 A.M., New York City time, on such Federal Funds Interest Determination Date; provided, however, that, if the brokers selected as aforesaid by the Calculation Agent are not quoting rates as set forth above, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such Federal Funds Interest Determination Date.

 

Determination of Treasury Rate.  If the Treasury Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the Treasury Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“Treasury Rate” means, with respect to any Treasury Rate Interest Determination Date, the rate from the auction held on the Treasury Rate Interest Determination Date (the “Auction”) of direct

 

 

obligations of the United States (“Treasury Bills”) having the Index Maturity specified above under the caption “INVEST RATE” on the display on Reuters (or any successor service) on page USAUCTION 10 (or any other page as may replace that page on that service) (“USAUCION 10 Page”) or page USAUCTION 11 (or any other page as may replace that page on that service) (“USAUCTION 11 Page”), or if not so displayed, on the Bloomberg service (or any successor service) on page AUCR 18 (or any other page as may replace that page on that service) or, if not published by 3:00 P.M., New York City time, on the Calculation Date pertaining to such Treasury Rate Interest Determination Date, the Bond Equivalent Yield (as defined below) of the auction rate for the applicable Treasury Bills as published in H.15 Daily Update, or another recognized electronic source used for the purpose of displaying the applicable rate, under the caption “U.S. Government Securities/Treasury Bills/Auction High”. If the rate referred to in the preceding sentence is not so published by 3:00 P.M., New York City time, on the related Calculation Date, the Treasury Rate for that Treasury Rate Interest Determination Date will be the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills as announced by the United States Department of the Treasury. If the rate referred to in the preceding sentence is not so announced by the United States Department of the Treasury, or if the Auction is not held, the Treasury Rate for that Treasury Rate Interest Determination Date will be the Bond Equivalent Yield of the rate on that Treasury Rate Interest Determination Date of the applicable Treasury Bills as published in H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”. If the rate referred to in the preceding sentence is not so published by 3:00 P.M., New York City time, on the related Calculation Date, the Treasury Rate for that Treasury Rate Interest Determination Date will be the rate on that Treasury Rate Interest Determination Date of the applicable Treasury Bills as published in H.15 Daily Update, or another recognized electronic source used for the purpose of displaying the applicable rate, under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”. If the rate referred to in the preceding sentence is not so published by 3:00 P.M., New York City time, on the related Calculation Date, the Treasury Rate for that Treasury Rate Interest Determination Date will be the rate on that Treasury Rate Interest Determination Date calculated by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market bid rates, as of approximately 3:30 P.M., New York City time, on such Treasury Rate Interest Determination Date, of three leading primary United States government securities dealers (which may include one or more of the Agents or their affiliates) selected by the Calculation Agent (after consultation with the Company), for the issue of Treasury Bills with a remaining maturity closest to the Index Maturity specified above; provided, however, that if the dealers selected as aforesaid by the Calculation Agent are not quoting as set forth in this sentence, the rate of interest in effect for the applicable period will be the same as the interest rate in effect on such Treasury Rate Interest Determination Date.

 

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the following formula:

 

	
Bond Equivalent Yield
  	
=
  	
D X N
  	
X
  	
   100
  
	
 
  	
 
  	
360 - (D X M)
  	
 
  	
 
  

 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount basis and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in the applicable Interest Reset Period.

 

Determination of Prime Rate.  If the Prime Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the Prime Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“Prime Rate” means, with respect to any Interest Determination Date specified below (a “Prime Rate Interest Determination Date”), the rate published in H.15(519) for such date under the caption “Bank Prime Loan” or, if not so published by 3:00 P.M., New York City time, on the Calculation Date pertaining to that Prime Rate Interest Determination Date, the rate on that Prime Rate Interest 

 

 

Determination Date as published in H.15 Daily Update or such other recognized electronic source used for the purpose of displaying the applicable rate, under the caption “Bank Prime Loan”.  If neither rate is so published by 3:00 P.M., New York City time, on the Calculation Date, the Prime Rate for such Prime Rate Interest Determination Date will be calculated by the Calculation Agent as the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters Screen USPRIME1 Page (as defined below) as the applicable bank’s prime rate or base lending rate as of 11:00 A.M., New York City time, on that Prime Rate Interest Determination Date, or if fewer than four rates are so published by 3:00 P.M., New York City time, on the related Calculation Date, the rate on the Prime Rate Interest Determination Date calculated by the Calculation Agent as the arithmetic mean of the prime rates or base lending rates quoted on the basis of the actual number of days in the year divided by 360 as of the close of business on such Prime Rate Interest Determination Date by three major banks (which may include one or more of the Agents or their affiliates) in The City of New York selected by the Calculation Agent (after consultation with the Company). If the banks selected by the Calculation Agent are not quoting as mentioned in the preceding sentence, the “Prime Rate” for the Interest Reset Period will be the same as the Prime Rate for the immediately preceding Interest Reset Period (or, if there was no such Interest Reset Period, the Initial Interest Rate specified above).  “Reuters Screen USPRIME1 Page” means the display on the Reuters Monitor Money Rates Service (or any successor service) on the “USPRIME 1” page (or any other page as may replace that page on that service) for the purpose of displaying prime rates or base lending rates of major United States banks.

 

Determination of CMT Rate.  If CMT Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the CMT Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“CMT Rate” means, with respect to any Interest Determination Date specified below (a “CMT Interest Determination Date”) relating to a CMT Rate Note or any Floating Rate Note for which the interest rate is determined with reference to the CMT Rate, if Reuters Page FRBCMT is specified above:

 

(a)           the percentage equal to the yield for United States Treasury securities at “constant maturity” having the Index Maturity specified above as published in H.15(519) under the caption “Treasury Constant Maturities”, as the yield is displayed on Reuters  (or any successor service) on page FRBCMT (or any other page as may replace the specified page on that service) (“Reuters Page FRBCMT”), or if not so displayed, on the Bloomberg service (or any successor service) on page NDX 7 (or any other page as may replace the specified page on that service) (“Bloomberg Page NDX 7”) for that CMT Interest Determination Date, or

 

(b)           if the rate referred to in clause (a) does not so appear on the Reuters Page FRBCMT or Bloomberg Page NDX 7, as the case may be, the percentage equal to the yield for United States Treasury securities at “constant maturity” having the particular Index Maturity and for that CMT Interest Determination Date as published in H.15(519) under the caption “Treasury Constant Maturities”, or

 

(c)           if the rate referred to in clause (b) does not so appear in H.15(519), the rate on that CMT Interest Determination Date for the period of the particular Index Maturity as may then be published by either the Federal Reserve System Board of Governors or the United States Department of the Treasury that the Calculation Agent determines to be comparable to the rate which would otherwise have been published in H.15(519), or

 

(d)           if the rate referred to in clause (c) is not so published, the rate on that CMT Interest Determination Date calculated by the Calculation Agent as a yield to maturity based on the arithmetic mean of the secondary market bid prices at approximately 3:30 P.M., New York City time, on that CMT Interest Determination Date of three leading primary United States government securities dealers in The City of New York (which may include one or more of the Agents or their affiliates) (each, a “Reference Dealer”), selected by the Calculation Agent from five Reference Dealers selected by the Calculation Agent and eliminating the highest quotation, or, in the event of equality, one of the highest, and the lowest quotation or, in the event of equality, one of the lowest, for United States Treasury securities with an original maturity equal to the particular Index Maturity, a remaining term to maturity no more than one year shorter than that Index 

 

 

Maturity and in a principal amount that is representative for a single transaction in the securities in that market at that time, or

 

(e)           if fewer than five but more than two of the prices referred to in clause (d) are provided as requested, the rate on that CMT Interest Determination Date calculated by the Calculation Agent based on the arithmetic mean of the bid prices obtained and neither the highest nor the lowest of the quotations shall be eliminated, or

 

(f)            if fewer than three prices referred to in clause (d) are provided as requested, the rate on that CMT Interest Determination Date calculated by the Calculation Agent as a yield to maturity based on the arithmetic mean of the secondary market bid prices as of approximately 3:30 P.M., New York City time, on that CMT Interest Determination Date of three Reference Dealers selected by the Calculation Agent from five Reference Dealers selected by the Calculation Agent and eliminating the highest quotation or, in the event of equality, one of the highest and the lowest quotation or, in the event of equality, one of the lowest, for United States Treasury securities with an original maturity closest to the particular Index Maturity, a remaining term to maturity closest to that Index Maturity and in a principal amount that is representative for a single transaction in the securities in that market at that time, or

 

(g)           if fewer than five but more than two prices referred to in clause (f) are provided as requested, the rate on that CMT Interest Determination Date calculated by the Calculation Agent based on the arithmetic mean of the bid prices obtained and neither the highest nor the lowest of the quotations will be eliminated, or

 

(h)           if fewer than three prices referred to in clause (f) are provided as requested, the CMT Rate in effect on that CMT Interest Determination Date;

 

if Reuters Page FEDCMT is specified above:

 

(a)           the percentage equal to the one-week or one-month, as specified above, average yield for United States Treasury securities at “constant maturity” having the Index Maturity specified above as published in H.15(519) opposite the caption “Treasury Constant Maturities”, as the yield is displayed on Reuters (or any successor service) on page FEDCMT (or any other page that may replace the specified page on that service) (“Reuters Page FEDCMT”), or if not so displayed, on the Bloomberg service (or any successor service) on Bloomberg Page NDX 7, for the week or month, as applicable, ended immediately preceding the week or month, as applicable, in which that CMT Interest Determination Date falls, or

 

(b)           if the rate referred to in clause (a) does not so appear on Reuters Page FEDCMT or Bloomberg page NDX 7, as the case may be, the percentage equal to the one-week or one-month, as applicable, average yield for United States Treasury securities at “constant maturity” having the particular Index Maturity and for the week or month, as applicable, preceding that CMT Interest Determination Date as published in H.15(519) opposite the caption “Treasury Constant Maturities,” or

 

(c)           if the rate referred to in clause (b) does not so appear in H.15(519), the one-week or one-month, as applicable, average yield for United States Treasury securities at “constant maturity” having the particular Index Maturity as otherwise announced by the Federal Reserve Bank of New York for the week or month, as applicable, ended immediately preceding the week or month, as applicable, in which that CMT Interest Determination Date falls, or

 

(d)           if the rate referred to in clause (c) is not so published, the rate on that CMT Interest Determination Date calculated by the Calculation Agent as a yield to maturity based on the arithmetic mean of the secondary market bid prices at approximately 3:30 P.M., New York City time, on that CMT Interest Determination Date of three Reference Dealers selected by the Calculation Agent from five Reference Dealers selected by the Calculation Agent and eliminating the highest quotation, or, in the event of equality, one of the highest, and the lowest quotation or, in the event of equality, one of the lowest, for United States Treasury securities with an original maturity equal to the particular Index Maturity, a remaining term to maturity no more than one year shorter than that Index Maturity and in a principal amount that is representative for a single transaction in the securities in that market at that time, or

 

 

(e)           if fewer than five but more than two of the prices referred to in clause (d) are provided as requested, the rate on that CMT Interest Determination Date calculated by the Calculation Agent based on the arithmetic mean of the bid prices obtained and neither the highest nor the lowest of the quotations shall be eliminated, or

 

(f)            if fewer than three prices referred to in clause (d) are provided as requested, the rate on that CMT Interest Determination Date calculated by the Calculation Agent as a yield to maturity based on the arithmetic mean of the secondary market bid prices as of approximately 3:30 P.M., New York City time, on that CMT Interest Determination Date of three Reference Dealers selected by the Calculation Agent from five Reference Dealers selected by the Calculation Agent and eliminating the highest quotation or, in the event of equality, one of the highest and the lowest quotation or, in the event of equality, one of the lowest, for United States Treasury securities with an original maturity greater than the particular Index Maturity, a remaining term to maturity closest to that Index Maturity and in a principal amount that is representative for a single transaction in the securities in that market at the time, or

 

(g)           if fewer than five but more than two prices referred to in clause (f) are provided as requested, the rate on that CMT Interest Determination Date calculated by the Calculation Agent based on the arithmetic mean of the bid prices obtained and neither the highest or the lowest of the quotations will be eliminated, or

 

(h)           if fewer than three prices referred to in clause (f) are provided as requested, the CMT Rate in effect on that CMT Interest Determination Date.

 

If two United States Treasury securities with an original maturity greater than the Index Maturity specified above have remaining terms to maturity equally close to the particular Index Maturity, the quotes for the United States Treasury security with the shorter original remaining term to maturity will be used.

 

Determination of Eleventh District Cost of Funds Rate.  If the Eleventh District Cost of Funds Rate is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the Eleventh District Cost of Funds Rate and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“Eleventh District Cost of Funds Rate” means, with respect to any Interest Determination Date specified below (an “Eleventh District Cost of Funds Interest Determination Date”), the rate equal to the monthly weighted average cost of funds for the calendar month immediately preceding the month in which the Eleventh District Cost of Funds Interest Determination Date falls as set forth under the caption “11th District” on the display on Reuters (or any successor service) on page COFI/ARMS (or any other page as may replace the specified page on that service) (“COFI/ARMS Page”), or  if not so displayed, on Bloomberg service (or any successor service) on page ALLX COF (or any other page as may replace the specified page on that service) (“Bloomberg page ALLX COF”) in each case, as of 11:00 A.M., San Francisco time, on the Eleventh District Cost of Funds Interest Determination Date. If such rate does not appear on the COFI/ARMS Page or Bloomberg Page ALLX COF on any related Eleventh District Cost of Funds Interest Determination Date, the Eleventh District Cost of Funds Rate for the Eleventh District Cost of Funds Interest Determination Date will be the Eleventh District Cost of Funds Rate Index, as defined below. If the FHLB of San Francisco fails to announce the rate for the calendar month next preceding the Eleventh District Cost of Funds Interest Determination Date, then the Eleventh District Cost of Funds Rate for that date will be the Eleventh District Cost of Funds Rate in effect on that Eleventh District Cost of Funds Interest Determination Date.

 

The “Eleventh District Cost of Funds Rate Index” will be the monthly weighted average cost of funds paid by member institutions of the Eleventh Federal Home Loan Bank District that the FHLB of San Francisco most recently announced as the cost of funds for the calendar month immediately preceding the Eleventh District Cost of Funds Interest Determination Date.

 

Determination of EURIBOR.  If EURIBOR is the Base Rate or one of the Base Rates specified above, the interest rate payable with respect to this Note shall be calculated by the Calculation Agent with reference to the European 

 

 

Interbank Offered Rate for deposits in euros, or EURIBOR, and the Spread or Spread Multiplier, if any, specified above, in accordance with the following provisions:

 

“EURIBOR” means the rate for deposits in euros as sponsored, calculated and published jointly by the European Banking Federation and ACI — The Financial Market Association, or any company established by the joint sponsors for purposes of compiling and publishing those rates, having the Index Maturity specified above, commencing on the  applicable Interest Reset Date, as that rate appears on Reuters, or any successor service, on page EURIBOR01 or any other page as may replace that specified page on that service (“Reuters Page EURIBOR01”) as of 11:00 A.M., Brussels time, on the applicable EURIBOR Interest Determination Date.  If EURIBOR cannot be determined on a EURIBOR Interest Determination Date as described in the preceding sentence, then the Calculation Agent will select four major banks in the Euro-zone interbank market, which may include affiliates of the Agents, and request that the principal Euro-zone offices of those four selected banks provide their offered quotations to prime banks in the Euro-zone interbank market at approximately 11:00 A.M., Brussels time, on the EURIBOR Interest Determination Date. These quotations shall be for deposits in Euros for the period of the specified Index Maturity, commencing on such Interest Reset Date. Offered quotations must be based on a principal amount equal to at least $1,000,000 or the approximate equivalent in Euros that is representative of a single transaction in such market at such time. If two or more quotations are provided, EURIBOR for the Interest Reset Period will be the arithmetic mean of the quotations. If fewer than two quotations are provided, the Calculation Agent will select four major banks in the Euro-zone, which may include affiliates of the Agents, and then determine EURIBOR for the Interest Reset Period as the arithmetic mean of rates quoted by those four major banks in the Euro-zone to leading European banks at approximately 11:00 A.M., Brussels time, on the EURIBOR Interest Determination Date. The rates quoted will be for loans in Euros, for the period of the specified Index Maturity, commencing on the Interest Reset Date. Rates quoted must be based on a principal amount of at least $1,000,000 or the approximate equivalent in Euros that is representative of a single transaction in such market at such time.  If the banks so selected by the Calculation Agent are not quoting rates as described above, EURIBOR will be the EURIBOR in effect on the applicable EURIBOR Interest Determination Date.

 

“Euro-zone” means the region comprised of member states of the European Union that adopt the single currency in accordance with the Treaty establishing the European Community, as amended by the Treaty on European Union.

 

Renewable Notes.  If this Note is designated as a Renewable Note above (a “Renewable Note”), the following provisions will apply:

 

A Renewable Note will bear interest at the Base Rate or Base Rates, as applicable, specified above and the interest rate payable with respect to a Renewable Note shall be calculated by the Calculation Agent with reference to the specified Base Rate or Base Rates and the Spread or Spread Multiplier, if any, specified above.

 

A Renewable Note will mature on an Interest Payment Date as specified above (the “Initial Maturity Date”), unless the maturity of all or any portion of the principal amount hereof is extended in accordance with the procedures described below.  On the Interest Payment Dates specified above (each such Interest Payment Date, an “Election Date”), the maturity of a Renewable Note will be extended to the Interest Payment Date occurring twelve months after such Election Date, unless the Holder hereof elects to terminate the automatic extension of the maturity of a Renewable Note or of any portion hereof having a principal amount of $2,000 or any multiple of $1,000 in excess thereof by delivering a notice to such effect to the Trustee not less than nor more than a number of days to be specified above prior to such Election Date. If no notice period is specified above, such notice shall be given no less than 30 days and no more than 60 days prior to such Election Date.  Such option may be exercised with respect to less than the entire principal amount of a Renewable Note; provided that the principal amount for which such option is not exercised is at least $2,000 or any larger amount that is an integral multiple of $1,000.  Notwithstanding the foregoing, the maturity of a Renewable Note may not be extended beyond the Final Maturity Date specified above (the “Final Maturity Date”). If the Holder hereof elects to terminate the automatic extension of the maturity of any portion of the principal amount of a Renewable Note and such 

 

 

election is not revoked as described below, such portion will become due and payable on the Interest Payment Date falling six months (unless another period is specified above) after the Election Date prior to which the Holder made such election.

 

An election to terminate the automatic extension of maturity may be revoked as to any portion of a Renewable Note having a principal amount of $2,000 or any multiple of $1,000 in excess thereof by delivering a notice to such effect to the Trustee on any day following the effective date of the election to terminate the automatic extension of maturity and prior to the date 15 days before the date on which such portion would otherwise mature.  Such a revocation may be made for less than the entire principal amount of a Renewable Note for which the automatic extension of maturity has been terminated; provided that the principal amount of a Renewable Note for which the automatic extension of maturity has been terminated and for which such a revocation has not been made is at least $2,000 or any larger amount that is an integral multiple of $1,000. Notwithstanding the foregoing, a revocation may not be made during the period from and including a Record Date to but excluding the immediately succeeding Interest Payment Date.

 

An election to terminate the automatic extension of the maturity of a Renewable Note, if not revoked as described above by the Holder hereof making the election or any subsequent Holder, will be binding upon such subsequent Holder.

 

A Renewable Note may be redeemed in whole or in part at the option of the Company on the Interest Payment Dates in each year specified above, commencing with the Interest Payment Date specified above, at a redemption price as stated above, together with accrued and unpaid interest to the date of redemption.  Notwithstanding anything to the contrary herein, notice of redemption will be provided by mailing a notice of such redemption to each Holder by first class mail, postage prepaid, at least 180 days (unless otherwise specified above) prior to the date fixed for redemption.

 

Applicable Interest Determination Date and Calculation Date.  The interest rate applicable to each Interest Reset Period commencing on the Interest Reset Date or Dates with respect to such Interest Reset Period will be the rate determined on the applicable “Interest Determination Date.” The Commercial Paper Interest  Determination  Date, the Federal Funds Interest Determination Date and the Prime Rate Interest Determination Date will be the Business Day preceding each Interest Reset Date.  The CD Interest Determination Date will be the second Business Day preceding such Interest Reset Date. The LIBOR Interest Determination Date will be the second London Business Day preceding such Interest Reset Date. The EURIBOR Interest Determination Date will be the second TARGET Business Day preceding such Interest Reset Date.  The Eleventh District Cost of Funds Interest Determination Date will be the last working day of the month immediately preceding each Interest Reset Date on which the Federal Home Loan Bank of San Francisco (the “FHLB of San Francisco”) publishes the Eleventh District Cost of Funds Index.  The CMT Interest Determination Date will be the second U.S. Government Securities Business Day preceding each such Interest Reset Date. The Treasury Rate Interest Determination Date will be the day in the week in which the Interest Reset Date falls on which day Treasury Bills would normally be auctioned or, if no such auction is held for a particular week, the first Business Day of that week; provided, however, that if, as a result of a legal holiday, an auction is held on the Friday of the week preceding the Interest Reset Date, the related Interest Determination Date shall be such preceding Friday; and provided, further, that if an auction shall fall on any Interest Reset Date, then the Interest Reset Date shall instead be the first Business Day immediately following such auction. The Interest Determination Date pertaining to a Note the interest rate of which is determined with reference to two or more Base Rates will be the latest Business Day which is at least two Business Days prior to such Interest Reset Date for such a Note on which each Base Rate shall be determinable. Each Base Rate shall be determined and compared on such date, and the applicable interest rate shall take effect on the related Interest Reset Date.

 

The “Calculation Date,” if applicable, pertaining to any Interest Determination Date, shall be the earlier of (a) the tenth calendar day after such Interest Determination Date, or, if any such day is not a Business Day, the next succeeding Business Day and (b) the Business Day preceding the applicable Interest Payment Date or Maturity Date, as the case may be. The Trustee will, upon the request of the Holder of this Note, provide to such Holder the interest rate hereon then in effect and, if determined, the interest rate that will become effective as a result of the determination made for the next Interest Reset Date.

 

 

The Calculation Agent shall calculate the interest rate on this Note in accordance with the foregoing rate or rates on or before each Calculation Date and shall promptly thereafter notify the Company of such interest rate. Any such calculation by the Calculation Agent shall be conclusive and binding on the Company, the Trustee and the Holder of this Note, absent manifest error.

 

Interest payments for this Note will include interest accrued to but excluding the Interest Payment Date. Accrued interest hereon from the Original Issue Date or from the last date to which interest hereon has been paid or duly provided for, as the case may be, shall be an amount calculated by multiplying the face amount hereof by an accrued interest factor. Such accrued interest factor shall be computed by adding the interest factor calculated for each day from the Original Issue Date or from the last date to which interest shall have been paid or duly provided for, to the date for which accrued interest is being calculated. The interest factor for each such day shall be computed by dividing the interest rate applicable to such day by 360, in the case of the Commercial Paper Rate, LIBOR, CD Rate, Federal Funds Rate, Prime Rate, Eleventh District Cost of Funds Rate and EURIBOR and by the actual number of days in the year, in the case of the Treasury Rate and CMT Rate. Unless otherwise specified above, if the interest rate for this Note is calculated with reference to two or more Base Rates, the interest factor for this Note will be calculated in each period in the same manner as if only the lowest of the applicable Base Rates applied.

 

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

 

The Indenture permits, in certain circumstances therein specified, the amendment thereof without the consent of the Holders of the Securities. The Indenture also permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations under the Indenture of the Company and the rights of Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or, subject to the provisions for satisfaction and discharge in Article Eight of the Indenture, of the Indenture, shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of Notes is registrable in the register of Securities, upon surrender of a Note for registration of transfer at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

No service charge shall be made by the Company, the Trustee or the Registrar for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith (other than exchanges pursuant to Sections 2.11, 3.6, 9.5 or 10.3 of the Indenture, not involving any transfer).

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for 

 

 

all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, including without limitation, §§ 5-1401 and 5-1402 of the New York General Obligations Law and New York Civil Practice Law Rule 327(b).

 

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

 

 

IN WITNESS WHEREOF, The Walt Disney Company has caused this Instrument to be signed by the signature or facsimile signature of its Chairman of the Board, one of its Vice Chairmen, its President or one of its Vice Presidents, or its Treasurer or any Assistant Treasurer and attested by its Secretary or one of its Assistant Secretaries by his or her signature or a facsimile thereof, and its corporate seal or a facsimile of its corporate seal to be affixed hereunto or imprinted hereon.

 

	
(SEAL)
  	
 
  	
THE WALT DISNEY COMPANY
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
By:
  	
 
  
	
 
  	
 
  	
Name:  
  	
Christine M. McCarthy
  
	
 
  	
 
  	
Title: 
  	
Executive Vice President- Corporate Real Estate,  Sourcing, Alliances and Treasurer
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Attest:
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Name:  
  	
Marsha L. Reed
  	
 
  	
 
  
	
Title: 
  	
Vice President-Governance Administration and  Assistant Secretary
  	
 
  	
 
  

 

 

ABBREVIATIONS

 

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

 

	
TEN COM
  	
o  as tenants in common  
  	
 
  	
UNIF GIFT MIN ACT           Custodian            
  
	
 
  	
 
  	
 
  	
(Cust.)              (Minor)
  
	
TEN ENT
  	
o  as tenants by the entireties      
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
Under Uniform Gifts to Minors Act                           
  
	
JT TEN
  	
o  as joint tenants with right                    
  	
 
  	
 
  
	
 
  	
of survivorship and not as tenants
  	
 
  	
 
  
	
 
  	
in common
  	
 
  	
(State)
  

 

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

 

 

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

 

Please Insert Social Security or Employer

Identification Number of Assignee

 

	
 

- -              |

 
  	
 
  

 

 

 

Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee

 

 

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

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

 

 

	
Dated:
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Signature
  

 

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

 

 

 

 

Exhibit “D”

 

	
REGISTERED
  	
 
  	
REGISTERED
  

 

	
NO.

 
  	
 
  	
MEDIUM-TERM NOTE, SERIES E

(Zero Coupon)
  	
 
  	
PRINCIPAL AMOUNT:

 
  
	
 
  	
 
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  	
 
  	
CUSIP:
  

 

Unless and until it is exchanged in whole or in part for Notes in definitive form, this Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. Unless this certificate is presented by an authorized representative of The Depository Trust Company, New York, New York (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC and any payment is made to Cede & Co. or such other entity as requested by an authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

 

	
ORIGINAL ISSUE DATE:
  	
ORIGINAL ISSUE PRICE:
  
	
MATURITY DATE:
  	
ORIGINAL ISSUE DISCOUNT:
  
	
 
  	
YIELD TO MATURITY:
  
	
 
  	
ADDITIONAL AMOUNTS:
  

 

 

Date:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
  
	
 
  
	
 
  
	
By:
  	
 
  	
 
  
	
 
  	
Authorized Signatory
  	
 
  

 

 

THE WALT DISNEY COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the Principal Amount specified above on the Maturity Date specified above. If Maturity with respect to this Note falls on a day that is not a Business Day, the payment due at Maturity will be made on the following day that is a Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after Maturity.  The principal of this Note shall not bear interest except in the case of a default in payment of principal upon acceleration, redemption or at Stated Maturity, and in such case, the Accreted Value (as defined below) of this Note at the date of such default in payment shall bear interest at the Yield to Maturity specified above plus 1% per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of such principal has been made or duly provided for. Such interest will be computed on the basis of a 360-day year of twelve 30-day months, compounded semiannually. Payment of the principal of and any such interest on this Note will be made at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company, payments of interest on this Note (other than at Maturity) may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities or by wire transfer of immediately available funds to the account of the Holder of this Note if appropriate wire transfer instructions have been received in writing by the Trustee not less than 15 days prior to the applicable payment date. Notwithstanding the foregoing, the Company will make payments of interest, if any, on any Interest Payment Date other than the Maturity Date to each registered Holder of $10,000,000 (or, if the payment currency is other than United States dollars, the equivalent thereof in the particular payment currency) or more in aggregate principal amount of definitive Notes (whether having identical or different terms and provisions) by wire transfer of immediately available funds if the applicable registered Holder has delivered appropriate wire transfer instructions in writing to the Trustee not less than 15 days prior to the particular Interest Payment Date.  Any wire transfer instructions received by the Trustee shall remain in effect until revoked by the applicable registered Holder.

 

The “Accreted Value” of this Note at any date (the “Calculation Date”) shall be equal to (i) the Original Issue Price of this Note specified above plus (ii) the accrued amortization of Original Issue Discount specified above attributable ratably on a daily basis to the period from and including the Original Issue Date specified above to but excluding the Calculation Date. The calculation of accrual of Original Issue Discount will be computed on the basis of a 360-day year of twelve 30-day months, compounded semiannually.

 

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

 

Unless the certificate of authentication hereon has been executed by the Trustee or its duly appointed co-authenticating agent by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

This Note is one of a duly authorized issue of securities (herein called the “Securities”) of the Company (which term includes any successor corporation under the Indenture hereinafter referred to) issued and to be issued pursuant to such Indenture. This Security is one of a series designated by the Company as its Medium-Term Notes, Series E (the “Notes”). The Indenture does not limit the aggregate principal amount of the Securities.

 

The Company issued this Note pursuant to an Indenture, dated as of September 24, 2001 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, a national banking association, 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 statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered.

 

 

The Notes are issuable as Registered Securities, without coupons, in denominations of $2,000 and any amount in excess thereof which is an integral multiple of $1,000. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of any authorized denomination, as requested by the Holder surrendering the same, upon surrender of the Note or Notes to be exchanged at any office or agency described below where Notes may be presented for registration of transfer.

 

The Company may from time to time, without the consent of existing Note Holders, issue additional Notes (“Additional Notes”) having the same terms and conditions (including maturity and interest payment terms) as previously issued Notes in all respects, except for issue date, issue price and the first payment of interest. Additional Notes issued in this manner will be fungible with the previously issued Notes to the extent specified in the applicable Pricing Supplement.

 

Except as provided below, this Note may not be redeemed prior to the Maturity Date set forth above.

 

In the event that this Note is subject to payment of Additional Amounts (as defined below) as specified above, all payments of principal and interest with respect to this Note will be made without withholding or deduction at the source for, or on account of, any present or future taxes, fees, duties, assessments or governmental charges of whatever nature imposed or levied by the United States or any political subdivision or taxing authority thereof or therein, unless such withholding or deduction is required by (i) the laws (or any regulations or rulings promulgated thereunder) of the United States or any political subdivision thereof or therein or (ii) an official position regarding the application, administration or enforcement of such laws, regulations or rulings (including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in the United States or any political subdivision thereof).

 

In the event this Note is subject to payment of Additional Amounts (as defined below) as specified above, the Company will, subject to certain exceptions and limitations set forth below, pay to the Holder hereof who is a United States Alien, as additional interest, such amounts (“Additional Amounts”) as may be necessary in order that every net payment on this Note (including payment of the principal of and interest on such this Note) by the Company or a Paying Agent, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such payment by the United States (or any political subdivision or taxing authority thereof or therein), will not be less than the amount provided in this Note to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts will not apply to:

 

(a)           any tax, assessment or other governmental charge that would not have been so imposed but for (i) the existence of any present or former connection between such Holder or beneficial owner of this Note (or between a fiduciary, settlor or beneficiary of, or a person holding a power over, such Holder, if such Holder is an estate or a trust, or a member or shareholder of such Holder, if such Holder is a partnership or corporation) and the United States or any political subdivision or taxing authority thereof or therein, including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, person holding a power, member or shareholder) being or having been a citizen or resident of the United States or treated as a resident thereof or being or having been engaged in a trade or business or present therein or having or having had a permanent establishment therein or (ii) such Holder’s or beneficial owner’s past or present status, as applicable (under prior or current law), as a personal holding company, foreign personal holding company, foreign private foundation or other foreign tax-exempt organization with respect to the United States, passive foreign investment company or controlled foreign corporation for United States tax purposes or corporation that accumulates earnings to avoid United States Federal income tax;

 

(b)           any estate, inheritance, gift, excise, sales, transfer, wealth or personal property tax or any similar tax, assessment or other governmental charge;

 

(c)           any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the Holder of this Note for payment more than 10 days after the 

 

 

date on which such payment became due and payable or the date on which payment thereof was duly provided for, whichever occurred later;

 

(d)           any tax, assessment or other governmental charge that is payable otherwise than by withholding from a payment on this Note;

 

(e)           any tax, assessment or other governmental charge required to be withheld by any Paying Agent from a payment on this Note, if such payment could be made without such withholding by any other Paying Agent;

 

(f)            any tax, assessment or other governmental charge that would not have been imposed but for a failure to comply with applicable certification, information, documentation, identification or other reporting requirements concerning the nationality, residence, identity or connection with the United States of the Holder or beneficial owner of this Note if such compliance is required by statute or regulation of the United States or by an applicable tax treaty to which the United States is a party as a precondition to relief or exemption from such tax, assessment or other governmental charge;

 

(g)           any tax, assessment or other governmental charge imposed on a Holder that actually or constructively owns 10 percent or more of the combined voting power of all classes of the Company’s stock or that is a bank receiving interest on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(h)           any withholding or deduction imposed on a payment to an individual where such withholding or deduction is required to be made pursuant to Council Directive 2003/48/EC or any other European Union Directive implementing the conclusions of the ECOFIN Council meeting of 26th — 27th November, 2000 on the taxation of savings income or any law implementing or complying with, or introduced in order to conform to, such Directive;

 

(i)            any tax, assessment, withholding, or deduction required by sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”), (or any Treasury Regulations or rulings promulgated thereunder); or

 

(j)            any combination of items (a), (b), (c), (d), (e), (f), (g), (h) and (i);

 

nor shall Additional Amounts be paid with respect to a payment on this Note to a Holder that is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner would not have been entitled to Additional Amounts (or payment of Additional Amounts would not have been necessary) had such beneficiary, settlor, member or beneficial owner been the Holder of this Note.

 

If (a) as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the United States (including of any political subdivision or taxing authority thereof or therein), or any change in the official application (including a ruling by a court of competent jurisdiction in the United States) or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the Original Issue Date of this Note, the Company becomes or will become obligated to pay Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note as described above, or (b) any act is taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) on or after the Original Issue Date of this Note, whether or not such act is taken with respect to the Company or any affiliate, that results in a substantial likelihood that the Company will or may be required to pay such Additional Amounts on this Note, on any other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note or on any Additional Notes, if any, with the same Stated Maturity and other terms (other than Original Issue Date, issue price and first payment of interest) as this Note, then the Company may, at its option, redeem, as a whole, but not in part, this Note and all other Notes with the same Original Issue Date, Stated Maturity and other terms as this Note and all Additional Notes, if any, with the same Stated Maturity and 

 

 

other terms (other than Original Issue Date, issue price and first payment of interest) as this Note on not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to the Accreted Value of such Notes at the date fixed for redemption, together with interest, if any, accrued thereon to the date fixed for redemption; provided that the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, not including substitution of the obligor under the Notes or any action that would entail a material cost to the Company. No redemption pursuant to (b) above may be made unless the Company shall have received an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States (including of any political subdivision or taxing authority thereof or therein) results in a substantial likelihood that it will or may be required to pay Additional Amounts described above and the Company shall have delivered to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem such Notes pursuant to their terms.

 

All notices of redemption shall state the Redemption Date, the Redemption Price, if fewer than all the outstanding Notes are to be redeemed, the identification of Notes to be redeemed, that on the Redemption Date the Redemption Price will become due and payable upon each Note, or portion thereof, to be redeemed, that interest on each Note, or portion thereof, called for redemption will cease to accrue on and including the Redemption Date and the place or places where Notes may be surrendered for redemption. However, payment of the Redemption Price, together with accrued interest to but excluding the Redemption Date, for a Note for which a redemption notice has been delivered is conditioned upon delivery of such Note (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) to the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, at any time (whether prior to, on or after the Redemption Date) after delivery of the redemption notice. Payment of the Redemption Price for the Notes (or portion thereof to be redeemed), together with accrued interest to the Redemption Date, will be made on the later of the Redemption Date or promptly following the time of delivery of the Note.

 

If an Event of Default with respect to the Notes shall occur and be continuing, a portion of the principal of this Note may be declared due and payable in the manner and with the effect provided in the Indenture. Such portion shall be equal to the Accreted Value of this Note at the time of such declaration. Upon payment (i) of such Accreted Value and (ii) of interest on any overdue Accreted Value (to the extent that the payment of such interest shall be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of and interest on this Note shall terminate.

 

The Indenture permits, in certain circumstances therein specified, the amendment thereof without the consent of the Holders of the Securities. The Indenture also permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations under the Indenture of the Company and the rights of Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or, subject to the provisions for satisfaction and discharge in Article Eight of the Indenture, of the Indenture, shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest, if any, on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of Notes is registrable in the register of Securities, upon surrender of a Note for registration of transfer at the office or agency of the Company maintained for that purpose, initially designated to be the Corporate Trust Office of the Trustee in Los Angeles, California, and at such additional offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

No service charge shall be made by the Company, the Trustee or the Registrar for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith (other than exchanges pursuant to Sections 2.11, 3.6, 9.5 or 10.3 of the Indenture, not involving any transfer).

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, including without limitation, §§ 5-1401 and 5-1402 of the New York General Obligations Law and New York Civil Practice Law Rule 327(b).

 

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

 

 

IN WITNESS WHEREOF, The Walt Disney Company has caused this Instrument to be signed by the signature or facsimile signature of its Chairman of the Board, one of its Vice Chairmen, its President or one of its Vice Presidents, or its Treasurer or any Assistant Treasurer and attested by its Secretary or one of its Assistant Secretaries by his or her signature or a facsimile thereof, and its corporate seal or a facsimile of its corporate seal to be affixed hereunto or imprinted hereon.

 

	
(SEAL)
  	
 
  	
THE WALT DISNEY COMPANY
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
By:
  	
 
  
	
 
  	
 
  	
Name:  
  	
Christine M. McCarthy
  
	
 
  	
 
  	
Title: 
  	
Executive Vice President-Corporate Real Estate,  Sourcing, Alliances and Treasurer
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Attest:
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
 
  	
 
  	
 
  
	
Name:
  	
 Marsha L. Reed
  	
 
  	
 
  
	
Title:  
  	
Vice President-Governance Administration and  Assistant Secretary
  	
 
  	
 
  

 

 

ABBREVIATIONS

 

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

 

	
TEN COM 
  	
o  as tenants in common  
  	
 
  	
UNIF GIFT MIN ACT           Custodian            
  
	
 
  	
 
  	
(Cust.)              (Minor)
  
	
TEN ENT 
  	
o  as tenants by the entireties      
  	
 
  	
 
  
	
 
  	
 
  	
Under Uniform Gifts to Minors Act                         
  
	
JT TEN 
  	
o  as joint tenants with right                    
  	
 
  	
 
  
	
of survivorship and not as tenants
  	
 
  	
 
  
	
in common
  	
 
  	
(State)
  

 

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

 

 

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

 

Please Insert Social Security or Employer

Identification Number of Assignee

 

	
 

- -              |

 
  	
 
  

 

 

 

Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee

 

 

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

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

 

	
Dated:
  	
 
  	
 
  	
 
  
	
 
  	
 
  	
Signature
  

 

NOTICE:               The signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever.Exhibit 10.12

 

SECOND AMENDMENT TO EMPLOYMENT
AGREEMENT

 

THIS
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”),
is made effective as of November 5, 2010, to the Employment Agreement
dated July 24, 2009, as amended by the First Amendment (the “Employment Agreement”), between
State Bank and Trust Company, a banking corporation organized under the laws of
the State of Georgia (the “Bank”), and
Joseph W. Evans, a resident of the State of Georgia (the “Employee”).

 

WHEREAS,
Employee and the Bank entered into the Employment Agreement which provides for
the terms and conditions of the Bank’s employment of Employee;

 

WHEREAS,
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and additional
guidance issued thereunder, requires that in order to avoid taxation and
penalties to the Employee, any deferred compensation paid by the Bank to the
Employee must comply with the requirements of Section 409A in form and
operation at all times on and after January 1, 2005; and

 

WHEREAS,
the Bank has administered the Employment Agreement in good faith compliance
with Section 409A, adopted the First Amendment with provisions to comply
with Section 409A, and now wishes to clarify the interpretation and
compliance with Section 409A in the form of an amendment to the Employment
Agreement.

 

NOW
THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the receipt and sufficient of which are hereby acknowledged, the
Bank and Employee hereby agree as follows:

 

1.             Section 1.7.2 of the
Employment Agreement is hereby amended by inserting a new subsection (d) at
the end:

 

“(d)         Notwithstanding the
foregoing, Employee must provide written notice to the Bank of the existence of
a condition described in subsections (a), (b), or (c) within 90 days of
the initial existence of such condition and Bank shall have 30 days to remedy
the condition before the Bank is required to pay under Section 3.”

 

2.             Section 1.11 of the
Employment Agreement is hereby amended by inserting the following language to
the end of Section 1.11:

 

“Notwithstanding
the provisions in this Section 1.11, Permanent Disability for purposes of
this Agreement must also be a disability within the meaning of Code Section 409A(a)(2)(A)(ii) and
409A(a)(2)(C) and Treas. Reg. Section 1.409A-3(a)(2).”

 

3.            Section 3.2.3 of the Employment Agreement is hereby amended by
substituting the section with:

 

 

“3.2.3     By
the Employee within the period commencing three (3) months prior to and
ending twelve (12) months after a Change in Control (the “Election Period”), provided
that the Employee shall give thirty (30) days’ written notice prior to the end
of the Election Period to the Bank of the Employee’s intention to terminate
this Agreement and shall terminate employment at the end of such 30-day period,
in which event the Bank shall be required to meet its obligations to the
Employee under Section 3.3.2 below.”

 

4.             Section 3.3.1 of the
Employment Agreement is hereby amended by substituting for the second sentence:

 

“In
addition, from the effective date of the termination pursuant to Section 3.2.1(b) or
Section 3.2.2(a), the Bank shall pay a monthly amount, subject to
applicable tax withholding, equal to what would be the Employee’s cost of COBRA
health continuation coverage for the Employee and eligible dependents for the
greater of twelve (12) months or the period during which the Employee and those
eligible dependents are entitled to COBRA health continuation coverage from the
Bank.”

 

5.            Section 3.3.2 of the
Employment Agreement is hereby amended by substituting for the second sentence:

 

“In
addition, from the effective date of the termination pursuant to Section 3.2.3
or Section 3.2.2(a), through the then unexpired portion of the Term (or,
if greater, for a period of twenty-four (24) months following the effective
date of the termination) (the “Severance Period”),
the Bank shall pay a monthly amount, subject to applicable tax withholding,
equal to what would be the Employee’s cost of COBRA health continuation
coverage for the Employee and eligible dependents for the greater of the
Severance Period or the period during which the Employee and those eligible
dependents are entitled to COBRA health continuation coverage from the Bank.”

 

6.            Section 3.3.4 of the
Employment Agreement is hereby amended by substituting the section with:

 

“3.3.4      For purposes of compliance with Code Section 409A:

 

(a)           It is intended that this
Agreement shall comply with the provisions of Code Section 409A and the
Treasury regulations relating thereto, or an exemption to Code Section 409A.  Any payments that qualify for the “short-term
deferral” exception shall be considered as paid first, then any payments that
qualify for the separation pay plan exception shall be considered as paid next,
then payments that qualify for any other exception under Section Code 409A
shall be paid under the applicable exception. 
For purposes of the limitations on nonqualified deferred compensation
under Code Section 409A, each payment of compensation under this Agreement
shall be treated as a separate payment of compensation for purposes of applying
the deferral election rules and the exclusion for certain short-term
deferral amounts under Code Section 409A. 
All payments to be made upon a termination of employment under this
Agreement that constitute non-qualified deferred compensation may only be made
upon a “separation from service” under Section Code 409A.  In no event may the Employee, directly or 

 

2

 

indirectly, designate the calendar year of any
payment under this Agreement.  To the
extent permitted under Code Section 409A or any Internal Revenue Service (“IRS”) or Treasury rules or
other guidance issued thereunder, the Bank may, in consultation with the
Employee, modify the Agreement in order to cause the provisions of the
Agreement to comply with the requirements of Code Section 409A, so as to
avoid the imposition of taxes and penalties on the Employee pursuant to Code Section 409A.

 

(b)           Notwithstanding anything to
the contrary in this Agreement, all reimbursements and in-kind benefits
provided under this Agreement shall be made or provided in accordance with the
requirements of Code Section 409A, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during the
Employee’s lifetime (or during a shorter period of time specified in this
Agreement), (ii) the amount of expenses eligible for reimbursement, or
in-kind benefits provided, during a calendar year may not affect the expenses
eligible for reimbursement, or in- kind benefits to be provided, in any other
calendar year, (iii) the reimbursement of an eligible expense will be made
no later than the last day of the calendar year following the year in which the
expense is incurred and (iv) the right to reimbursement or in-kind
benefits is not subject to liquidation or exchange for another benefit.

 

(c)           Notwithstanding any other
provision of this Agreement to the contrary and if applicable, if the Employee
is considered a “specified employee” for purposes of Code Section 409A (as
determined in accordance with the methodology established by the Bank as in
effect on the date of termination), (i) any payment or other benefit that
constitutes nonqualified deferred compensation within the meaning of Code Section 409A
that is otherwise due to the Employee under this Agreement during the six-month
period following his separation from service (as determined in accordance with
Code Section 409A) on account of his separation from service shall be
accumulated and paid to the Employee on the first business day of the seventh
month following his separation from service (the “Delayed
Payment Date”).  If the
Employee dies during the postponement period, the amounts and entitlements
delayed on account of Code Section 409A shall be paid to the personal
representative of his estate on the first to occur of the Delayed Payment Date
or 30 days after the date of the Employee’s death.”

 

7.             Terms defined in the
Employment Agreement shall have the same meaning herein unless otherwise
defined herein or unless the context clearly requires otherwise.

 

8.             Except as expressly amended
hereby, all terms, provisions, conditions and covenants contained in the
Employment Agreement are not modified by this Amendment and continue in full force
and effect as originally written.

 

[Signatures Appear on Following Page]

 

3

 

IN
WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and
delivered as of the date first written above.

 

	
   

  	
  “BANK”

  
	
   

  	
   

  
	
   

  	
  STATE
  BANK AND TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  J. Daniel Speight

  
	
   

  	
  Name:

  	
  J.
  Daniel Speight

  
	
   

  	
  Title:

  	
  Chief
  Operating Officer and Chief Financial Officer

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/ Kim M. Childers

  	
   

  	
   

  
	
  Name:

  	
  Kim
  M. Childers

  	
   

  	
   

  
	
  Title:

  	
  President
  and Chief Credit Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “EMPLOYEE”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Joseph W. Evans

  
	
   

  	
  Name:

  	
  Joseph
  W. Evans

  

 

4

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