Document:

Retirement, Transition and Release Agreement

 

RETIREMENT, TRANSITION AND RELEASE AGREEMENT

     THIS RETIREMENT, TRANSITION AND RELEASE AGREEMENT (this “Release”) is made on this 6th day of
May, 2008 (the “Effective Date”) by and between ROBERT MEERS (the “Executive”) lululemon athletica
canada inc. (formerly, Lululemon Athletica Inc.), a company incorporated under the laws of British
Columbia (the “Subsidiary”), and lululemon athletica, inc., a company incorporated under the laws
of Delaware (the “Company”).

     WHEREAS, the Executive has announced his intent to resign as a member of the Board of
Directors of the Company, and as an officer and director of all the Company’s affiliates,
immediately prior to the Company’s 2008 annual meeting of stockholders (presently scheduled for
June 4, 2008) and to retire from employment with the Company on June 30, 2008 (the “Termination
Date”) (the period beginning on the Effective Date and ending on the Termination Date is
hereinafter referred to as the “Transition Period”); and

     WHEREAS, the Subsidiary and the Executive are parties to that certain employment agreement
dated December 5, 2005, pursuant to which the Executive agreed to serve as the Chief Executive
Officer of the Subsidiary in exchange for certain rights and benefits (the “Employment Agreement”)
and the Executive is also employed as the Chief Executive Officer of the Company; and

     WHEREAS, the Company granted to the Executive two non-qualified stock options (each, an
“Option,” and collectively, the “Options”), which Options apply with respect to an aggregate of
2,787,224 shares of the Company’s common stock; and

     WHEREAS, the Options are evidenced by a Non-Qualified Stock Option Agreement between the
Company and the Executive dated November 28, 2007 with respect to 501,802 shares of the Company’s
common stock and a Non-Qualified Stock Option Agreement between the Company and the Executive dated
November 28, 2007 with respect 2,285,422 shares of the Company’s common stock (each, an “Option
Agreement,” and collectively, the “Option Agreements”); and

     WHEREAS, the Executive has executed a Fixed Option Exercise Date Election dated December 24,
2007 with respect to each Option (each, a “409A Election” and collection, the “409A Elections”);
and

     WHEREAS, the Executive is willing to assist the Company in the transition of his duties to
other Company employees through the Termination Date; and

     WHEREAS, the Company has agreed to provide the Executive with certain additional rights,
subject to the execution of and compliance with this Release and a Second Release (as described
below).

     NOW THEREFORE, in consideration of these premises and the mutual promises contained herein,
and intending to be legally bound hereby, the parties agree as follows:

 

 

     1.     Transition Period; Cessation of Service.

          1.1.     During the Transition Period, the Executive will continue to provide services to the
Company as the Chief Executive Officer of the Company and will devote substantially all his
business time and services to the Company. During the Transition Period, Executive will continue
to be paid his base salary and participate in the Company’s group insurance programs, in the manner
and to the extent provided in Sections 1.1 and 2.4 of the Employment Agreement.

          1.2.     The Executive hereby resigns from the Board of Directors of the Company (and as an
officer and director of all the Company’s affiliates) effective immediately prior to the
commencement of the Company’s 2008 annual meeting of stockholders (currently scheduled for June 4,
2008) or, if such annual meeting has not occurred prior the Termination Date, effective 12:01 a.m.
(EST) on the Termination Date.

          1.3.     The Executive hereby resigns from employment with the Company and all the Company’s
affiliates (and resigns his position as Chief Executive Officer of the Company) effective 12:01
a.m. (EST) on the Termination Date.

          1.4.     The Executive will execute such additional written confirmations of the resignations set
out in Sections 1.2 and 1.3 as shall be reasonably requested by the Company.

          1.5.     The Company will reimburse the Executive for any life insurance and disability insurance
premiums (pro rata through the Termination Date) and any reasonable business expenses as provided
under Sections 2.6 and 3 of the Employment Agreement, within 30 days of submission of proper
invoices.

          1.6.     As
soon as administratively practicable following the Termination Date, but in any event no
later than 30 days following the Termination Date, the Executive will vacate the Company-provided
apartment currently used by him and return his Company-provided automobile.

          1.7.     Following the Termination Date, the Company, through its carrier, will provide the
Executive with information and notice of his rights to elect to continue Executive’s group health
care coverage under the Company’s health and welfare benefit plans, at his own expense, pursuant to
the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985.

          1.8.     For the period beginning on the Termination Date and ending on January 31, 2009, the
Executive agrees that, during normal business hours, he will remain available via telephone and,
with reasonable advance notice, for limited in-person meetings, to assist in an orderly transition
of his duties to other employees of the Company. The Executive further agrees that during the
two-year period following the Termination Date, he will cooperate with the Company, its affiliates
and their counsel with respect to the Company’s defense of any litigation, investigations, or
governmental proceedings that relates in any way to the Executive’s period of service with the
Company or its affiliates. The Company will promptly reimburse the Executive for all reasonable
and documented expenses incurred in connection with providing his cooperation under this Section
1.8.

-2-

 

     2.     Consideration; Acknowledgements.

          2.1.     The Executive will be entitled to receive a special cash bonus from the Company in
respect of the Company’s 2008 fiscal year of up to US$ 219,113, based on the Company’s and the
Executive’s performance for such fiscal year under the Company’s 2008 Executive Bonus Plan
(assuming the Executive achieved the highest possible rating under such plan during such period and
assuming the same level of financial goal achievement as applies to other executives under the 2008
Executive Bonus Plan). Such bonus payable under this Section 2.1 will be paid on April 1, 2009 and
will be subject to withholding by the Company for all applicable taxes.

          2.2.     The Executive acknowledges that, other than the Options, he does not hold any options to
acquire capital stock of the Company or its affiliates.

          2.3.     The Options are presently vested and exercisable with respect to 70% of the shares
subject thereto (351,261 shares and 1,599,795 shares, respectively), including those portions of
the Options described in Section 5(a)(iii) of each Option Agreement. The Executive acknowledges
that the post-termination exercise of the portions of the Options discussed in this paragraph
continue to be governed by Section 7 of the Company’s 2007 Equity Incentive Plan (the “Plan”).
Therefore, assuming the cessation of his employment occurs at the time and in the manner described
above in Section 1, those portions of the Options discussed in this paragraph will expire
on the 90th day following the Termination Date, to the extent not exercised on or prior
to that date.

          2.4.     The Company agrees that the Options will become vested with respect to an additional 7.5%
of the shares subject thereto (37,635 shares and 171,407 shares, respectively) on the Effective
Date. However, in compliance with Treas. Reg. § 1.409A-3(i)(2), the portions of the Options
discussed in this paragraph will be exercisable only during the period beginning six months after
the Termination Date and ending March 15, 2009 and, to the extent not exercised during that period,
will then expire. The preceding sentence amends and supersedes Section 3(c) of each 409A Election.

          2.5.     The portions of the Options not discussed in the preceding two paragraphs (with respect
to 112,906 shares and 514,220 shares, respectively) are hereby terminated.

          2.6.     The Executive hereby acknowledges and agrees that the payment and rights described in
Sections 2.1 and 2.4 above are contingent on (i) his execution and delivery of, and
compliance with, this Release, (ii) his execution and delivery of a release agreement substantially
in the form attached hereto as Exhibit A (the “Second Release”) within 21 days following
the Termination Date, and (iii) his compliance in all material respects with that Second Release
and the restrictive covenants contained in Section 6 of the Employment Agreement (the “Restrictive
Covenants”). For avoidance of doubt, if Executive revokes this Release or the Second Release, or
breaches any of the Restrictive Covenants in any material respects, he will have no right (x) to
receive the payment described above in Section 2.1, or (y) to exercise those portions of
the Options described above in Section 2.4, and those portions of the Options will instead
expire immediately.

-3-

 

          2.7.     The Executive acknowledges that except as otherwise specifically provided herein: (i) he
has no further entitlement under the Employment Agreement (including, without limitation, Sections
2 and 5 of the Employment Agreement), other than rights to indemnification under Section 4 of the
Employment Agreement, (ii) the cessation of his employment by the Company and its affiliates will
not entitle him to any severance pay or benefits under the Employment Agreement or under any other
severance or similar arrangement maintained by the Company or any of its affiliates, and (iii)
neither the Company nor any of its affiliates have or will have any liability or obligation to him.
The Executive further acknowledges that, in the absence of his execution of this Release and the
Second Release, the payment and rights specified above in Sections 2.1 and 2.4 would not
otherwise be due to him.

          2.8.     The Company hereby consents to the termination of the Non-Discretionary Option Exercise
and Sale Plan adopted by him on December 24, 2007 (the “10b5-1 Plan”) effective as of 12:01 a.m. on
June 18, 2008 and, following such termination, to the sale by the Executive of any shares of
Company common stock obtained through the exercise of stock options, subject to compliance during
the Transition Period with the Company’s Policy Statement on Dealing with Company Information,
Including Inside Information and Securities Insider Trading for Directors, Executive Officers,
Senior Managers and Finance Department (the “Policy”), which consent shall be deemed to satisfy the
pre-clearance procedures of the Policy. The Executive agrees not to sell any shares of the
Company’s common stock prior to 12:01 a.m. on June 18, 2008 except pursuant to the 10b5-1 Plan.
The Company hereby acknowledges and agrees that the Policy shall not apply to the Executive after
the Termination Date (it being understood by the Executive that notwithstanding the foregoing the
Executive will remain subject to applicable United States and Canadian securities laws that, among
other things, prohibit trading on material non-public information, whether acquired prior to or
following the Termination Date).

     3.     Release and Covenant Not to Sue.

          3.1.     The Executive hereby fully and forever releases and discharges the Company, the
Subsidiary, and all of their respective predecessors and successors, assigns, stockholders,
affiliates, officers, directors, trustees, employees, agents and attorneys, past and present (each
such person or entity is referred to as a “Released Person”) from any and all claims,
demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations,
controversies, debts, costs, expenses, damages, judgments, orders and liabilities, of whatever kind
or nature, direct or indirect, in law, equity or otherwise, whether known or unknown, arising
through the date of this Release, out of the Executive’s employment by the Company or its
affiliates or the cessation thereof, including, but not limited to, any claims for relief or causes
of action under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., or any other
federal, state or local statute, ordinance or regulation regarding discrimination in employment and
any claims, demands or actions based upon alleged wrongful or retaliatory discharge or breach of
contract under any state or federal law or any claim for damages, notice, payment in lieu of
notice, loss of benefits including long term and short term disability, pension issues, bonus,
profit sharing, stock distribution, stock purchase rights, overtime pay, vacation pay or any claims
under the British Columbia Employment Standards Act or Human Rights Code.

-4-

 

          3.2.     The Executive expressly represents that he has not filed a lawsuit or initiated any other
administrative proceeding against a Released Person and that he has not assigned any claim against
a Released Person. The Executive further promises not to initiate a lawsuit or to bring any other
claim against the other arising out of or in any way related to the Executive’s employment by the
Company or its affiliates or the cessation of that employment. This Release will not prevent the
Executive from filing a charge with the Equal Employment Opportunity Commission (or similar state
agency) or participating in any investigation conducted by the Equal Employment Opportunity
Commission (or similar state agency); provided, however, that any claims by the Executive for
personal relief in connection with such a charge or investigation (such as reinstatement or
monetary damages) would be barred.

          3.3.     The foregoing will not be deemed to release the Company or the Subsidiary from (i) claims
solely to enforce this Release, or (ii) claims for indemnification under the Company’s Certificate
of Incorporation, as amended to date, or under applicable law including, without limitation,
section 2802 of the California Labor Code.

          3.4.     The Company and the Subsidiary hereby fully and forever release and discharge the
Executive from any and all claims, demands, liens, agreements, contracts, covenants, actions,
suits, causes of action, obligations, controversies, debts, costs, expenses, damages, judgments,
orders and liabilities, of whatever kind or nature, direct or indirect, in law, equity or
otherwise, whether known or unknown, arising through the date of this Release, out of the
Executive’s employment by the Company or its affiliates.

          3.5.     The Company and the Subsidiary each expressly represents that it has not filed a lawsuit
or initiated any other administrative proceeding against the Executive and that it has not assigned
any claim against the Executive. The Company and the Subsidiary each further promises not to
initiate a lawsuit or to bring any other claim against the Executive arising out of or in any way
related to the Executive’s employment by the Company or its affiliates or the cessation of that
employment.

          3.6.     The foregoing will not be deemed to release the Executive from claims solely to enforce
this Release.

     4.     Restrictive Covenants.   The Executive acknowledges that the Restrictive Covenants
will survive the cessation of his employment. The Executive affirms that those Restrictive
Covenants are reasonable and necessary to protect the legitimate interests of the Company, the
Subsidiary and their affiliates, that he received adequate consideration in exchange for agreeing
to those restrictions and that he will abide by those restrictions. Notwithstanding Section 7.7 of
this Release, the provisions of Section 7.4 of the Employment Agreement will continue to apply to
any matter relating to the Restrictive Covenants.

     5.     Non-Disparagement.   The Executive will not disparage any Released Person or
otherwise take any action that could reasonably be expected to adversely affect the personal or
professional reputation of any Released Person. The Company and Subsidiary will not disparage the
Executive or otherwise take any action that could reasonably be expected to adversely affect the
personal or professional reputation of the Executive.

-5-

 

     6.     Rescission Right.   The Executive expressly acknowledges and recites that (a) he has
read and understands the terms of this Release in its entirety, (b) he has entered into this
Release knowingly and voluntarily, without any duress or coercion; (c) he has been advised orally
and is hereby advised in writing to consult with an attorney with respect to this Release before
signing it; (d) he was provided twenty-one (21) calendar days after receipt of the Release to
consider its terms before signing it; and (e) he is provided seven (7) calendar days from the date
of signing to terminate and revoke this Release, in which case this Release shall be unenforceable,
null and void. The Executive may revoke this Release during those seven (7) days by providing
written notice of revocation to:

lululemon athletica inc.

2285 Clark Drive

Vancouver, British Columbia

Fax: (604) 874-6124

Attention: CFO

     7.     Miscellaneous.

          7.1.     No Admission of Liability.   This Release is not to be construed as an admission
of any violation of any federal, state or local statute, ordinance or regulation or of any duty
owed by the Company or the Subsidiary to the Executive or of any duty owed by the Executive to the
Company or the Subsidiary. There have been no such violations, and each of the parties
specifically denies any such violations.

          7.2.     No Reinstatement.   The Executive agrees that he will not apply for reinstatement
with the Company or its affiliates, nor seek in any way to be reinstated, re-employed or re-hired
by the Company or its affiliates after the Termination Date.

          7.3.     Successors and Assigns.   This Release shall inure to the benefit of and be
binding upon the Company, the Subsidiary, and the Executive and their respective successors,
permitted assigns, executors, administrators and heirs. The Executive may not make any assignment
of this Release or any interest herein, by operation of law or otherwise. The Company and the
Subsidiary may assign this Release to any successor to all or substantially all of their respective
assets or business by means of liquidation, dissolution, merger, consolidation, transfer of assets,
or otherwise.

          7.4.     Severability.   Whenever possible, each provision of this Release will be
interpreted in such manner as to be effective and valid under applicable law. However, if any
provision of this Release is held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability will not affect any other provision, and this Release
will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision
had never been herein contained.

          7.5.     Entire Agreement; Amendments.   Except as otherwise provided herein, this Release
contains the entire agreement and understanding of the parties hereto relating to the subject
matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the subject matter hereof. This
Release may not be changed or modified, except by an agreement in writing signed by each of
the parties hereto.

-6-

 

          7.6.     Waivers.   The waiver by either party of any right hereunder or of any breach by
the other party will not be deemed a waiver of any other right hereunder or of any other breach by
the other party. No waiver will be deemed to have occurred unless set forth in a writing. No
waiver will constitute a continuing waiver unless specifically stated, and any waiver will operate
only as to the specific term or condition waived.

          7.7.     Governing Law and Enforcement.   This Release shall be governed by and construed
in accordance with the laws of the State of Delaware without regard to the principles of conflicts
of laws.

          7.8.     Counterparts and Facsimiles.   This Release may be executed, including execution
by facsimile signature, in multiple counterparts, each of which shall be deemed an original, and
all of which together shall be deemed to be one and the same instrument.

[signature page follows]

-7-

 

     IN WITNESS WHEREOF, the Company has caused this Release to be executed by its duly authorized
officer, and the Executive has executed this Release, in each case on the date first above written.

	 	 	 	 	 
	 	 
lululemon athletica inc.

 	 
	 	By:  	/s/  John E. Currie 	 
	 	 	John E. Currie, Executive Vice President and 	 
	 	 	Chief Financial Officer 	 
	 
 
	 	lululemon athletica canada inc.

 	 
	 	By:  	/s/  John E. Currie 	 
	 	 	John E. Currie, Executive Vice President and 	 
	 	 	Chief Financial Officer 	 
	 
 
 
	 	ROBERT MEERS

 	 
	 	/s/  Robert Meers 	 

-8-

 

	 	 	 	 	 

EXHIBIT A

SECOND RELEASE

     THIS SECOND RELEASE is for and in consideration of the rights to be provided to Robert Meers
(the “Executive”) in connection with the Retirement, Transition and Release Agreement dated May 6,
2008 by and between lululemon athletica inc. (the “Company”), lululemon athletica canada inc. (the
“Subsidiary”)and the Executive (the “First Release”), which rights are conditioned on the
Executive’s execution and delivery of this Second Release:

     1.     Consideration.   The Executive acknowledges that: (i) the payment and rights set
forth in Sections 2.1 and 2.4 of the First Release constitute full satisfaction of all his
rights under the First Release, (ii) except as otherwise provided specifically in the First
Release, he has no entitlement under the Employment Agreement (as defined in the First Release) or
any severance or similar arrangement maintained by the Company or the Subsidiary, and (iii) except
as otherwise provided specifically in the First Release, neither the Company nor any of its
affiliates has nor will have any other liability or obligation to him. The Executive further
acknowledges that, in the absence of his execution of this Second Release, the payment and rights
described in Sections 2.1 and 2.4 of the First Release would not otherwise be due to him.

     2.     Release and Covenant Not to Sue.   The Executive hereby fully and forever releases
and discharges the Company, the Subsidiary and all of their respective predecessors and successors,
assigns, stockholders, affiliates, officers, directors, trustees, employees, agents and attorneys,
past and present (each such person or entity is referred to as a “Released Person”) from any and
all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action,
obligations, controversies, debts, costs, expenses, damages, judgments, orders and liabilities, of
whatever kind or nature, direct or indirect, in law, equity or otherwise, whether known or unknown,
arising through the date of this Second Release, out of the Executive’s employment by the Company
or its affiliates, or the cessation thereof, including, but not limited to, any claims for relief
or causes of action under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. or any
other federal, state or local statute, ordinance or regulation regarding discrimination in
employment and any claims, demands or actions based upon alleged wrongful or retaliatory discharge
or breach of contract under any state or federal law, or any claim for damages, notice, payment in
lieu of notice, wrongful dismissal, severance pay, loss of benefits including long term and short
term disability, pension issues, bonus, profit sharing, stock distribution, stock purchase rights,
overtime pay, vacation pay or any claims under the British Columbia Employment Standards Act or
Human Rights Code.

          2.1.     The Executive expressly represents that he has not filed a lawsuit or initiated any other
administrative proceeding against a Released Person and that he has not assigned any claim against
a Released Person. The Executive further promises not to initiate a lawsuit or to bring any other
claim against the other arising out of or in any way related to the Executive’s employment by the
Company or its affiliates or the cessation of that employment. This Second Release will not
prevent the Executive from filing a charge with the Equal Employment Opportunity Commission (or
similar state agency) or participating in any investigation conducted by the Equal Employment
Opportunity Commission (or similar state agency); provided, however, that any claims by the
Executive for personal relief in connection
with such a charge or investigation (such as reinstatement or monetary damages) would be
barred.

A-1

 

          2.2.     The foregoing will not be deemed to release the Company or the Subsidiary from (i) claims
solely to enforce the First Release or (ii) claims for indemnification under the Company’s
Certificate of Incorporation, as amended to date, or under applicable law including, without
limitation, section 2802 of the California Labor Code.

     3.     Rescission Right.   The Executive expressly acknowledges and recites that (a) he has
read and understands the terms of this Second Release in its entirety, (b) he has entered into this
Second Release knowingly and voluntarily, without any duress or coercion; (c) he has been advised
orally and is hereby advised in writing to consult with an attorney with respect to this Second
Release before signing it; (d) he was provided twenty-one (21) calendar days after receipt of the
Second Release to consider its terms before signing it; and (e) he is provided seven (7) calendar
days from the date of signing to terminate and revoke this Second Release, in which case this
Second Release shall be unenforceable, null and void. The Executive may revoke this Second Release
during those seven (7) days by providing written notice of revocation to:

lululemon athletica inc.

2285 Clark Drive

Vancouver, British Columbia

Fax: (604) 874-6124

Attention: CFO

     4.     Miscellaneous.

          4.1.     No Admission of Liability.   This Second Release is not to be construed as an
admission of any violation of any provincial or federal statute, ordinance or regulation or of any
duty owed by the Company or the Subsidiary to the Executive or of any duty owed by the Executive to
the Company or the Subsidiary. There have been no such violations, and each of the parties
specifically denies any such violations.

          4.2.     [Intentionally Omitted.]

          4.3.     Successors and Assigns.   This Second Release shall inure to the benefit of the
Company and the Subsidiary and any successor to all or substantially all of their respective assets
or business by means of liquidation, dissolution, merger, consolidation, transfer of assets, or
otherwise.

          4.4.     Severability.   Whenever possible, each provision of this Second Release will be
interpreted in such manner as to be effective and valid under applicable law. However, if any
provision of this Second Release is held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability will not affect any other provision, and this
Second Release will be reformed, construed and enforced as though the invalid, illegal or
unenforceable provision had never been herein contained.

A-2

 

          4.5.     Governing Law.   This Release shall be governed by, and enforced in accordance
with, the laws of the State of Delaware, without regard to the application of the principles of
conflicts of laws.

          IN WITNESS WHEREOF and intending to be legally bound, the Executive has executed this Second
Release on the                 day of                        , 2008.

ROBERT MEERS

 

A-3EX-4.1

 

Exhibit 4.1

          This Security is a Global Security within the meaning of the Indenture (as defined on the
Reverse of this Security) hereinafter referred to and is registered in the name of The Depository
Trust Company (the “Depository”) or a nominee of the Depository. This Security is exchangeable for
Securities registered in the name of a person other than the Depository or its nominee only in the
limited circumstances described in the Indenture and may not be transferred except as a whole by
the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository. Unless this Security is presented by an authorized
representative of the Depository (55 Water Street, New York) to The Chubb Corporation or its agent
for registration of transfer, exchange or payment, and any Security issued is registered in the
name of Cede & Co. or such other name as requested by an authorized representative of the
Depository and any payment hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

	 	 	 
	No. 1

	 	Principal Amount: $500,000,000
	Issue Date: May 6, 2008

	 	CUSIP: 171232AR2
	 

	 	ISIN: US171232AR24

THE CHUBB CORPORATION

5.75% Senior Notes due 2018

          THE CHUBB CORPORATION, a corporation organized and existing under the laws of New Jersey
(hereinafter called the “Company”, which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of five hundred million dollars ($500,000,000) as may be revised from
time to time on Schedule I hereto, and all accrued and unpaid interest thereof on May 15, 2018, or
if such day is not a Business Day, the following Business Day, and to pay interest thereon from and
including May 6, 2008, or from and including the most recent Interest Payment Date on which
interest has been paid or duly provided for, semi-annually in arrears on November 15 and May 15 of
each year, commencing on November 15, 2008, at the rate of 5.75% per annum to and including May 15,
2018 or earlier redemption date of this Security (each such date, an “Interest Payment Date”).

          The amount of interest payable for any full semi-annual period will be computed on the basis
of a 360-day year consisting of twelve 30-day months. The amount of interest payable for any period
shorter than a full semi-annual period for which interest is computed will be computed on the basis
of a 30-day month and, for any period less than a month, on the basis of the actual number of days
elapsed per 30-day month. In the event that any Interest Payment Date or the maturity date is not
a Business Day, then payment of the interest or principal payable on such date will be made on the
next succeeding day that is a Business Day with the same force

 

 

and effect as if made on the date the payment was originally payable and without any interest or
other payment in respect of the delay.

          The interest installment so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security
is registered on the first Business Day of the month in which the Interest Payment Date falls or on
any other day more than one and less than sixty Business Days prior to such Interest Payment Date
that the Company chooses (such day, an “Alternate Record Date”); provided that the Company shall
provide written notice of such Alternate Record Date to the Trustee not less than ten Business Days
prior to the Alternate Record Date.

          A “Business Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on which
banking institutions in The City of New York are authorized or required by law or executive order
to remain closed or (iii) a day on which the Corporate Trust Office of the Trustee is closed for
business.

          Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the United States, 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 payment
of interest may be made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the securities register or (ii) by wire transfer in immediately available
funds at such place and to such bank account as may be designated by the Person entitled thereto as
specified in the securities register in writing not less than ten days before the relevant Interest
Payment Date.

          The Company and, by acceptance of this Security or a beneficial interest in this Security,
each Holder hereof and any person acquiring a beneficial interest herein, agree to treat this
Security as indebtedness for United States federal income tax purposes.

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

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

2

 

In WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 
	 	THE CHUBB CORPORATION

 	 
	 	By:  	/s/ Michael O’Reilly	 
	 	 	Name:  	Michael O’Reilly	 
	 	 	Title:    Vice Chairman and CFO	 
	 
	 	 	 
	 	By:  	/s/ Douglas A. Nordstrom	 
	 	 	Name:  	Douglas A. Nordstrom	 
	 	 	Title:    Treasurer and Vice President	 
	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

THE BANK OF NEW YORK TRUST COMPANY, N.A.

 	 
	 	By:  	/s/ Benita A. Vaughn	 
	 	 	Name:  	Benita A. Vaughn	 
	 	 	Title:  
Dated:	Authorized Signatory
May 6, 2008	 
	 

3

 

REVERSE OF SENIOR NOTES

          This Security is one of a duly authorized issue of securities of the Company, issued and to be
issued in one or more series under the indenture, dated as of October 25, 1989 between the Company
and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Trust Company, N.A., as
successor to Bank One Trust Company, N.A. (formerly the First National Bank of Chicago)), as
trustee (the “Trustee”), as amended and supplemented through the date hereof (the “Indenture”), to
which Indenture and all other indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Securities, and of the terms upon which the Securities
are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are
issuable in series that may vary as to amount, date of maturity, rate of interest, rank and in any
other respect provided in the Indenture.

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

          The Securities will be redeemable in whole at any time or in part from time to time, at the
Company’s option, at a redemption price equal to the greater of:

	 	•	 	100% of the principal amount of the Security to be redeemed; and
	 
	 	•	 	the sum of the present values of the remaining scheduled payments of
principal and interest on the Security to be redeemed (exclusive of
accrued and unpaid interest to the redemption date) discounted to the
redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at a discount rate equal to the
Treasury Rate plus 0.30%,

          in each case plus accrued and unpaid interest to the redemption date.

          For the purposes of the preceding paragraph:

	 	•	 	“Treasury Rate” means the semi-annual equivalent yield to
maturity of the Treasury Security that corresponds to the
Treasury Price (calculated in accordance with standard market
practice and computed as of the second trading day preceding the
redemption date);
	 
	 	•	 	“Treasury Security” means the United States Treasury security
that the Treasury Dealer determines would be appropriate to use,
at the time of determination and in accordance with standard
market practice, in pricing the Security being redeemed in a
tender offer based on a spread to United States Treasury yields;
	 
	 	•	 	“Treasury Price” means the bid-side price for the Treasury
Security as of the third trading day preceding the redemption
date, as set forth in the daily statistical release (or any
successor release) published by the Wall Street Journal in the
table entitled “Treasury Bonds, Notes and Bills,” as determined
by the Treasury Dealer except that: (i) if that release (or any
successor release) is not published or does not contain that

4

 

	 	 	 	price information on that trading day; or (ii) if the Treasury
Dealer determines that the price information is not reasonably
reflective of the actual bid-side price of the Treasury Security
prevailing at 3:30 p.m., New York City time, on that trading
day, then Treasury Price will instead mean the bid-side price
for the Treasury Security at or around 3:30 p.m., New York City
time, on that trading day (expressed on a next trading day
settlement basis) as determined by the Treasury Dealer through
such alternative means as are commercially reasonable under the
circumstances; and
	 
	 	•	 	“Treasury Dealer” means Citigroup Global Markets Inc. (or its
successor) or, if Citigroup Global Markets Inc. (or its
successor) refuses to act as Treasury Dealer for this purpose or
ceases to be a primary U.S. Government securities dealer,
another nationally recognized investment banking firm that is a
primary U.S. Government securities dealer specified by the
Company for these purposes.

          Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder of the Securities to be redeemed at its registered address. Unless
the Company defaults in payment of the redemption price, on and after the redemption date, interest
will cease to accrue on the Securities or portions thereof called for redemption.

          The Company will not be required (i) to issue, register the transfer of or exchange any
Securities during a period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of the Securities selected for redemption and ending at the close
of business on the day of such mailing, or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of such
Securities being redeemed in part.

          No sinking fund is provided for the Securities. The Indenture contains provisions for
satisfaction, discharge and defeasance of the entire indebtedness of this Security upon compliance
by the Company with certain conditions set forth in the Indenture, which conditions apply to this
Security.

          In case an Event of Default, as defined in the Indenture, with respect to the Securities,
shall have occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

          The Indenture contains provisions permitting the Company and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Securities at the time
Outstanding (as defined in the Indenture) of all series to be affected (voting as one class),
evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the Holders of the Securities of
each such series; provided, however, that no such supplemental indenture shall (i) extend the final
maturity of any Security, or reduce the principal amount thereof or any premium thereon, or reduce
the rate or extend the time of payment of any interest thereon, or reduce any amount payable on
redemption thereof, or reduce the amount of the principal of an Original Issue

5

 

Discount Security that would be due and payable upon an acceleration of the maturity thereof or
provable in bankruptcy, or change the currency of payments of principal, premium, if any, or
interest, or extend the time or reduce the amount of any payment to any sinking fund or analogous
obligation relating to any Security, or impair or affect the rights of any Holder to institute suit
for the payment thereof, without the consent of the Holder of each Security so affected, or (ii)
reduce the aforesaid percentage of Securities, the Holders of which are required to consent to any
such supplemental indenture, without the consent of the Holder of each Security affected or (iii)
reduce the percentage of Securities of this series outstanding necessary to consent to waive any
past default under the Indenture to less than a majority, without the consent of the Holder of each
Security so affected, or (iv) modify the provisions of the sections of the Indenture dealing with
supplementary indentures or waivers of covenants, except to increase any such percentage or to
provide that certain other provisions of the Indenture cannot be modified or waived without the
consent of the Holder of each Security affected thereby, provided, however, that this clause shall
not be deemed to require the consent of any Holder with respect to changes in the references to
“the Trustee” and concomitant changes in such sections of the Indenture or the deletion of this
proviso, in accordance with the requirements of the Indenture. It is also provided in the
Indenture that, with respect to certain defaults or Events of Default regarding the Securities of
any series, prior to any declaration accelerating the maturity of such Securities, the Holders of a
majority in aggregate principal amount Outstanding of the Securities of such series (or, in the
case of certain defaults or Events of Default, all or certain series of the Securities) may on
behalf of the Holders of all the Securities of such series (or all or certain series of the
Securities, as the case may be) waive any such past default or Event of Default and its
consequences. The preceding sentence shall not, however, apply to a default in the payment of the
principal of or premium, if any, or interest on any of the Securities. Any such consent or waiver
by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive
and binding upon such Holder and upon all future Holders and owners of this Security and any
Security which may be issued in exchange or substitution herefor, irrespective of whether or not
any notation thereof is made upon this Security or such other Securities.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

          Upon due presentment for registration of transfer of this Security at the office or agency of
the Company in the Borough of Manhattan, The City of New York, a new Security or Securities of
authorized denominations for an equal aggregate principal amount will be issued to the transferee
in exchange therefor, subject to the limitations provided in the Indenture, without charge except
for any tax or other governmental charge imposed in connection therewith.

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

6

 

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

          The Securities are issuable only in registered form without coupons in minimum denominations
of $1,000 and any integral multiples of $1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities are exchangeable for a like aggregate
principal amount of Securities of a different authorized denomination, as requested by the Holder
surrendering the same.

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

          This is one of the Securities referred to in the within mentioned Indenture.

7

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Security to:

 

 

 

(Insert assignee’s social security or tax identification number)

 

 

(Insert address and zip code of assignee)

agent to transfer this Security on the books of the Securities Registrar. The agent may substitute
another to act for him or her.

	 	 	 
	Dated:

	 	Signature:
	 
	 	 
	 

	 	Signature Guarantee:

(Sign exactly as your name appears on the other side of this Security)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Securities Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Securities Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 

 

SCHEDULE I

SCHEDULE OF PRINCIPAL AMOUNT REDUCTIONS

Principal amount of Securities outstanding represented by this certificate as of May 6, 2008:
$500,000,000

Thereafter, the following decreases have been made:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Notation Made by or
	 	 	Principal Amount	 	Principal Amount	 	on Behalf of the
	Date of Redemption	 	Redeemed	 	Remaining	 	Trustee
	 
	 	 
	 	 
	 	 

9

 

    This Security is a Global Security within the meaning of the
    Indenture (as defined on the Reverse of this Security)
    hereinafter referred to and is registered in the name of The
    Depository Trust Company (the “Depository”) or a
    nominee of the Depository. This Security is exchangeable for
    Securities registered in the name of a person other than the
    Depository or its nominee only in the limited circumstances
    described in the Indenture and may not be transferred except as
    a whole by the Depository to a nominee of the Depository or by a
    nominee of the Depository to the Depository or another nominee
    of the Depository. Unless this Security is presented by an
    authorized representative of the Depository (55 Water Street,
    New York) to The Chubb Corporation or its agent for registration
    of transfer, exchange or payment, and any Security issued is
    registered in the name of Cede & Co. or such other
    name as requested by an authorized representative of the
    Depository and any payment hereon is made to Cede &
    Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
    OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered
    owner hereof, Cede & Co., has an interest herein.

 

	 	 	 
	

    No. 2

	
 
	
    Principal Amount:  $100,000,000

	

    Issue Date: May 6, 2008

	
 
	
    CUSIP: 171232AR2

	
 
	
 
	
    ISIN: US171232AR24

 

    THE CHUBB
    CORPORATION

 

    5.75% Senior Notes due 2018

 

    THE CHUBB CORPORATION, a corporation organized and existing
    under the laws of New Jersey (hereinafter called the
    “Company”, which term includes any successor Person
    under the Indenture hereinafter referred to), for value
    received, hereby promises to pay to CEDE & CO., or
    registered assigns, the principal sum of one hundred million
    dollars ($100,000,000) as may be revised from time to time on
    Schedule I hereto, and all accrued and unpaid interest
    thereof on May 15, 2018, or if such day is not a Business
    Day, the following Business Day, and to pay interest thereon
    from and including May 6, 2008, or from and including the
    most recent Interest Payment Date on which interest has been
    paid or duly provided for, semi-annually in arrears on November
    15 and May 15 of each year, commencing on November 15,
    2008, at the rate of 5.75% per annum to and including
    May 15, 2018 or earlier redemption date of this Security
    (each such date, an “Interest Payment Date”).

 

    The amount of interest payable for any full semi-annual period
    will be computed on the basis of a
    360-day year
    consisting of twelve
    30-day
    months. The amount of interest payable for any period shorter
    than a full semi-annual period for which interest is computed
    will be computed on the basis of a
    30-day month
    and, for any period less than a month, on the basis of the
    actual number of days elapsed per
    30-day
    month. In the event that any Interest Payment Date or the
    maturity date is not a Business Day, then payment of the
    interest or principal payable on such date will be made on the
    next succeeding day that is a Business Day with the same force

    

    1

 

    and effect as if made on the date the payment was originally
    payable and without any interest or other payment in respect of
    the delay.

 

    The interest installment so payable, and punctually paid or duly
    provided for, on any Interest Payment Date will, as provided in
    the Indenture, be paid to the Person in whose name this Security
    is registered on the first Business Day of the month in which
    the Interest Payment Date falls or on any other day more than
    one and less than sixty Business Days prior to such Interest
    Payment Date that the Company chooses (such day, an
    “Alternate Record Date”); provided that the Company
    shall provide written notice of such Alternate Record Date to
    the Trustee not less than ten Business Days prior to the
    Alternate Record Date.

 

    A “Business Day” shall mean any day other than
    (i) a Saturday or Sunday, (ii) a day on which banking
    institutions in The City of New York are authorized or required
    by law or executive order to remain closed or (iii) a day
    on which the Corporate Trust Office of the Trustee is
    closed for business.

 

    Payment of the principal of (and premium, if any) and interest
    on this Security will be made at the office or agency of the
    Company maintained for that purpose in the United States, 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 payment of interest may be made (i) by check mailed
    to the address of the Person entitled thereto as such address
    shall appear in the securities register or (ii) by wire
    transfer in immediately available funds at such place and to
    such bank account as may be designated by the Person entitled
    thereto as specified in the securities register in writing not
    less than ten days before the relevant Interest Payment Date.

 

    The Company and, by acceptance of this Security or a beneficial
    interest in this Security, each Holder hereof and any person
    acquiring a beneficial interest herein, agree to treat this
    Security as indebtedness for United States federal income tax
    purposes.

 

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

 

    Unless the certificate of authentication hereon has been
    executed by the Trustee referred to on the reverse hereof by
    manual signature, this Security shall not be entitled to any
    benefit under the Indenture or be valid or obligatory for any
    purpose.

    

    2

 

    In WITNESS WHEREOF, the Company has caused this instrument to be
    duly executed.

 

    THE CHUBB
    CORPORATION

			
	 	    By: 
	
    /s/  Michael
    O’Reilly

    Name: Michael O’Reilly

    Title:  Vice Chairman and CFO

 

			
	 	    By: 
	
    /s/  Douglas
    A. Nordstrom

    Name: Douglas A. Nordstrom

    Title:  Treasurer and Vice President

 

    TRUSTEE’S
    CERTIFICATE OF AUTHENTICATION

 

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

 

    THE BANK OF NEW YORK TRUST 

COMPANY, N.A.

 

			
	 	    By: 
	
    /s/  Benita
    A. Vaughn

    Name: Benita A. Vaughn

    Title:  Authorized Signatory

    Dated: May 6, 2008

    

    3

 

    REVERSE
    OF SENIOR NOTES

 

    This Security is one of a duly authorized issue of securities of
    the Company, issued and to be issued in one or more series under
    the indenture, dated as of October 25, 1989 between the
    Company and The Bank of New York Trust Company, N.A. (as
    successor to JPMorgan Trust Company, N.A., as successor to
    Bank One Trust Company, N.A. (formerly the First National
    Bank of Chicago)), as trustee (the “Trustee”), as
    amended and supplemented through the date hereof (the
    “Indenture”), to which Indenture and all other
    indentures supplemental thereto reference is hereby made for a
    statement of the respective rights, limitations of rights,
    duties and immunities thereunder of the Trustee, the Company and
    the Holders of the Securities, and of the terms upon which the
    Securities are, and are to be, authenticated and delivered. By
    the terms of the Indenture, the Securities are issuable in
    series that may vary as to amount, date of maturity, rate of
    interest, rank and in any other respect provided in the
    Indenture.

 

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

 

    The Securities will be redeemable in whole at any time or in
    part from time to time, at the Company’s option, at a
    redemption price equal to the greater of:

 

			
	 	    • 
	
    100% of the principal amount of the Security to be redeemed; and

    

	 
	 	    • 
	
    the sum of the present values of the remaining scheduled
    payments of principal and interest on the Security to be
    redeemed (exclusive of accrued and unpaid interest to the
    redemption date) discounted to the redemption date on a
    semi-annual basis (assuming a
    360-day year
    consisting of twelve
    30-day
    months) at a discount rate equal to the Treasury Rate plus 0.30%,

 

         in each case plus accrued and
    unpaid interest to the redemption date.

 

    For the purposes of the preceding paragraph:

 

			
	 	    • 
	
    “Treasury Rate” means the semi-annual equivalent yield
    to maturity of the Treasury Security that corresponds to the
    Treasury Price (calculated in accordance with standard market
    practice and computed as of the second trading day preceding the
    redemption date);

    

	 
	 	    • 
	
    “Treasury Security” means the United States Treasury
    security that the Treasury Dealer determines would be
    appropriate to use, at the time of determination and in
    accordance with standard market practice, in pricing the
    Security being redeemed in a tender offer based on a spread to
    United States Treasury yields;

    

	 
	 	    • 
	
    “Treasury Price” means the bid-side price for the
    Treasury Security as of the third trading day preceding the
    redemption date, as set forth in the daily statistical release
    (or any successor release) published by the Wall Street Journal
    in the table entitled “Treasury Bonds, Notes and
    Bills,” as determined by the Treasury Dealer except that:
    (i) if that release (or any successor release) is not
    published or does not contain that

    

    4

 

			
	 	      
	
    price information on that
    trading day; or (ii) if the Treasury Dealer determines that
    the price information is not reasonably reflective of the actual
    bid-side price of the Treasury Security prevailing at
    3:30 p.m., New York City time, on that trading day, then
    Treasury Price will instead mean the bid-side price for the
    Treasury Security at or around 3:30 p.m., New York City
    time, on that trading day (expressed on a next trading day
    settlement basis) as determined by the Treasury Dealer through
    such alternative means as are commercially reasonable under the
    circumstances; and

 

			
	 	    • 
	
    “Treasury Dealer” means Citigroup Global Markets Inc.
    (or its successor) or, if Citigroup Global Markets Inc. (or its
    successor) refuses to act as Treasury Dealer for this purpose or
    ceases to be a primary U.S. Government securities dealer,
    another nationally recognized investment banking firm that is a
    primary U.S. Government securities dealer specified by the
    Company for these purposes.

 

    Notice of any redemption will be mailed at least 30 days
    but not more than 60 days before the redemption date to
    each Holder of the Securities to be redeemed at its registered
    address. Unless the Company defaults in payment of the
    redemption price, on and after the redemption date, interest
    will cease to accrue on the Securities or portions thereof
    called for redemption.

 

    The Company will not be required (i) to issue, register the
    transfer of or exchange any Securities during a period beginning
    at the opening of business 15 days before the day of the
    mailing of a notice of redemption of the Securities selected for
    redemption and ending at the close of business on the day of
    such mailing, or (ii) to register the transfer of or
    exchange any Security so selected for redemption in whole or in
    part, except the unredeemed portion of such Securities being
    redeemed in part.

 

    No sinking fund is provided for the Securities. The Indenture
    contains provisions for satisfaction, discharge and defeasance
    of the entire indebtedness of this Security upon compliance by
    the Company with certain conditions set forth in the Indenture,
    which conditions apply to this Security.

 

    In case an Event of Default, as defined in the Indenture, with
    respect to the Securities, shall have occurred and be
    continuing, the principal hereof may be declared, and upon such
    declaration shall become, due and payable, in the manner, with
    the effect and subject to the conditions provided in the
    Indenture.

 

    The Indenture contains provisions permitting the Company and the
    Trustee, with the consent of the Holders of not less than a
    majority in aggregate principal amount of the Securities at the
    time Outstanding (as defined in the Indenture) of all series to
    be affected (voting as one class), evidenced as in the Indenture
    provided, to execute supplemental indentures adding any
    provisions to or changing in any manner or eliminating any of
    the provisions of the Indenture or of any supplemental indenture
    or modifying in any manner the rights of the Holders of the
    Securities of each such series; provided, however, that no such
    supplemental indenture shall (i) extend the final maturity
    of any Security, or reduce the principal amount thereof or any
    premium thereon, or reduce the rate or extend the time of
    payment of any interest thereon, or reduce any amount payable on
    redemption thereof, or reduce the amount of the principal of an
    Original Issue

    

    5

 

    Discount Security that would be due and payable
    upon an acceleration of the maturity thereof or provable in bankruptcy, or change the currency of payments of
    principal, premium, if any, or interest, or extend the time or
    reduce the amount of any payment to any sinking fund or
    analogous obligation relating to any Security, or impair or
    affect the rights of any Holder to institute suit for the
    payment thereof, without the consent of the Holder of each
    Security so affected, or (ii) reduce the aforesaid
    percentage of Securities, the Holders of which are required to
    consent to any such supplemental indenture, without the consent
    of the Holder of each Security affected or (iii) reduce the
    percentage of Securities of this series outstanding necessary to
    consent to waive any past default under the Indenture to less
    than a majority, without the consent of the Holder of each
    Security so affected, or (iv) modify the provisions of the
    sections of the Indenture dealing with supplementary indentures
    or waivers of covenants, except to increase any such percentage
    or to provide that certain other provisions of the Indenture
    cannot be modified or waived without the consent of the Holder
    of each Security affected thereby, provided, however, that this
    clause shall not be deemed to require the consent of any Holder
    with respect to changes in the references to “the
    Trustee” and concomitant changes in such sections of the
    Indenture or the deletion of this proviso, in accordance with
    the requirements of the Indenture. It is also provided in the
    Indenture that, with respect to certain defaults or Events of
    Default regarding the Securities of any series, prior to any
    declaration accelerating the maturity of such Securities, the
    Holders of a majority in aggregate principal amount Outstanding
    of the Securities of such series (or, in the case of certain
    defaults or Events of Default, all or certain series of the
    Securities) may on behalf of the Holders of all the Securities
    of such series (or all or certain series of the Securities, as
    the case may be) waive any such past default or Event of Default
    and its consequences. The preceding sentence shall not, however,
    apply to a default in the payment of the principal of or
    premium, if any, or interest on any of the Securities. Any such
    consent or waiver by the Holder of this Security (unless revoked
    as provided in the Indenture) shall be conclusive and binding
    upon such Holder and upon all future Holders and owners of this
    Security and any Security which may be issued in exchange or
    substitution herefor, irrespective of whether or not any
    notation thereof is made upon this Security or such other
    Securities.

 

    No reference herein to the Indenture and no provision of this
    Security or of the Indenture shall alter or impair the
    obligation of the Company, which is absolute and unconditional,
    to pay the principal of (and premium, if any) and interest on
    this Security at the times, place and rate, and in the coin or
    currency, herein prescribed.

 

    Upon due presentment for registration of transfer of this
    Security at the office or agency of the Company in the Borough
    of Manhattan, The City of New York, a new Security or Securities
    of authorized denominations for an equal aggregate principal
    amount will be issued to the transferee in exchange therefor,
    subject to the limitations provided in the Indenture, without
    charge except for any tax or other governmental charge imposed
    in connection therewith.

 

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

    

    6

 

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

 

    The Securities are issuable only in registered form without
    coupons in minimum denominations of $1,000 and any integral
    multiples of $1,000 in excess thereof. As provided in the
    Indenture and subject to certain limitations therein set forth,
    Securities are exchangeable for a like aggregate principal
    amount of Securities of a different authorized denomination, as
    requested by the Holder surrendering the same.

 

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

 

    This is one of the Securities referred to in the within
    mentioned Indenture.

    

    7

 

    ASSIGNMENT

 

    FOR VALUE RECEIVED, the undersigned assigns and transfers this
    Security to:

    (Insert assignee’s social security or tax identification
    number)

    (Insert address and zip code of assignee)

 

    agent to transfer this Security on the books of the Securities
    Registrar. The agent may substitute another to act for him or
    her.

 

    Dated:

    Signature:

 

    Signature Guarantee:

 

    (Sign exactly as your name appears on the other side of this
    Security)

 

    Signatures must be guaranteed by an “eligible guarantor
    institution” meeting the requirements of the Securities
    Registrar, which requirements include membership or
    participation in the Security Transfer Agent Medallion Program
    (“STAMP”) or such other “signature guarantee
    program” as may be determined by the Securities Registrar
    in addition to, or in substitution for, STAMP, all in accordance
    with the Securities Exchange Act of 1934, as amended.

    

    8

 

    SCHEDULE I

 

    SCHEDULE OF
    PRINCIPAL AMOUNT REDUCTIONS

 

    Principal amount of Securities outstanding represented by this
    certificate as of May 6, 2008: $100,000,000

 

    Thereafter, the following decreases have been made:

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Notation Made by or

    

	
 
	
 
	
    Principal Amount

    
	
 
	
    Principal Amount

    
	
 
	
    on Behalf of the

    

	

    Date of Redemption

	
 
	
    Redeemed
	
 
	
    Remaining
	
 
	
    Trustee

    

    9

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