Document:

exv4wbwi

 

Exhibit 4.b.i.

RESOLUTIONS OF THE PRICING COMMITTEE

OF THE BOARD OF DIRECTORS OF

MASCO CORPORATION

March 9, 2007

     WHEREAS, Masco Corporation, a Delaware corporation (the “Company”) the Company has filed a
Registration Statement (No. 333-140970) on Form S-3 with the Securities and Exchange Commission,
which is in effect;

     WHEREAS, the Company desires to create two series of securities under the Indenture dated as
of February 12, 2001, as supplemented by the Supplemental Indenture dated as of November 30, 2006
(the “Indenture”), with The Bank of New York Trust Company, N. A. (as successor trustee under
agreement originally with Bank One Trust Company, National Association) (the “Trustee”), providing
for the issuance from time to time of unsecured debentures, notes or other evidences of
indebtedness of this Company (“Securities”) in one or more series under such Indenture; and

     WHEREAS, capitalized terms used in these resolutions and not otherwise defined are used with
the same meaning ascribed to such terms in the Indenture;

     THEREFORE, BE IT RESOLVED, that there is established a series of Securities under the
Indenture, the terms of which shall be as follows:

2010 Notes

	 	1.	 	The Securities of one series shall be designated as the “Floating Rate Notes Due
2010.”
	 
	 	2.	 	The aggregate principal amount of Securities of such series which may be
authenticated and delivered under the Indenture is limited to Three Hundred Million Dollars
($300,000,000), except for Securities of such series authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of, other Securities of such
series pursuant to Sections 3.04, 3.05, 3.06, 9.06 or 11.07 of the Indenture.
	 
	 	3.	 	The date on which the principal of the Securities of such series shall be payable
is March 12, 2010. Such Securities are not subject to any sinking fund.
	 
	 	4.	 	The Securities of such series shall bear interest at a floating rate equal to three month
USD LIBOR plus 0.30% per annum, payable quarterly in arrears on March 12, June 12, September 12 and
December 12 of each year, commencing on June 12, 2007 to the person in whose names the notes are
registered at the close of business on the 15th day preceding the interest payment

 

 

date (other than in the case of maturity, in which case interest will be payable to the person
to whom the principal shall be payable). The interest determination date for an interest period
will be the second London business day preceding that interest period.

        5.        The Securities of such series shall be issued initially in the form of global
securities registered in the name of Cede & Co., as nominee of The Depository Trust Company
(“DTC”), and will be held by the Trustee as custodian for DTC. The Securities shall be
subject to the procedures of DTC and will not be issued in definitive registered form.

        6.        The principal of and interest on the Securities of such series shall be payable at
the office or agency of this Company maintained for such purpose in Chicago, Illinois or at
any other office or agency designated by the Company for such purpose pursuant to the
Indenture.

        7.        The Securities of such series shall be issuable in denominations of One Thousand
Dollars ($1,000) and any integral multiples thereof.

        8.        The Securities of such series shall be issuable at a purchase price of 99.6% of the
principal amount thereof, plus accrued interest, if any, from March 14, 2007, such that
this Company shall receive Two Hundred Ninety Eight Million Eight Hundred Thousand Dollars
($298,800,000) after an underwriting discount of One Million Two Hundred Thousand Dollars
($1,200,000).

        9.        The Securities of such series shall be subject to Defeasance and discharge pursuant
to Section 4.02 of the Indenture and to Covenant Defeasance pursuant to Section 10.06 of
the Indenture with respect to any term, provision or condition set forth in any negative or
restrictive covenant of the Company applicable to the Securities.

      
  10.        The Securities of such series
shall be subject to the following change of control
repurchase event:

        If a Change of Control Repurchase Event occurs, the Company will make an offer to each
holder of Securities to repurchase all or any part (in integral multiples of $1,000) of
that holders’ Securities at a repurchase price in cash equal to 101% of the aggregate
principal amount of Securities repurchased plus any accrued and unpaid interest on the
Securities repurchased to the date of purchase. Within 30 days following any Change of
Control Repurchase Event or, at the Company’s option, prior to any Change of Control, but
after the public announcement of the Change of Control, the Company will mail a notice to
each holder, with a copy to the Trustee, describing the transaction or transactions that
constitute or may constitute the Change of Control Repurchase Event and offering to
repurchase Securities on the payment date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice

 

 

is mailed. The notice shall, if mailed prior to the date of consummation of the Change of
Control, state that the offer to purchase is conditioned on the Change of Control
Repurchase Event occurring on or prior to the payment date specified in the notice. The
Company will comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the
repurchase of the Securities as a result of a Change of Control Repurchase Event. To the
extent that the provisions of any securities laws or regulations conflict with the Change
of Control Repurchase Event provisions of the Securities, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its
obligations under the Change of Control Repurchase Event provisions of the Securities by
virtue of such conflict.

	 	 	 	On the Change of Control Repurchase Event payment date, the Company will, to the
extent lawful:

	 	1.	 	accept for payment all Securities or portions of Securities
properly tendered pursuant to the Company’s offer;
	 
	 	2.	 	deposit with the paying agent an amount equal to the
aggregate purchase price in respect of all Securities or portions of
Securities properly tendered; and
	 
	 	3.	 	deliver or cause to be delivered to the Trustee the
Securities properly accepted, together with an officers’ certificate stating
the aggregate principal amount of Securities being purchased by the Company.

The paying agent will promptly mail to each holder of Securities properly tendered the
purchase price for the Securities, and the Trustee will promptly authenticate and mail (or
cause to be transferred by book-entry) to each holder a new Security equal in principal
amount to any unpurchased portion of any Securities surrendered; provided that each new
Security will be in a principal amount of $1,000 or an integral multiple of $1,000.

              The Company will not be required to make an offer to repurchase the Securities upon a
Change of Control Repurchase Event if a third party makes an offer in the manner, at the
times and otherwise in compliance with the requirements for an offer made by the Company
and such third party purchases all Securities properly tendered and not withdrawn under it
offer.

              “Below Investment Grade Rating Event” means the Securities are rated below investment
grade by both Rating Agencies on any date from the date of the public notice of an
arrangement that could result in a Change of Control until the end of the 60-day period
following public notice of the occurrence of a Change of

 

 

Control (which period shall be extended so long as the rating of the Securities is under
publicly announced consideration for possible downgrade by either of the Rating Agencies);
provided that a Below Investment Grade Rating Event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect of a
particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating
Event for purposes of the definition of Change of Control Repurchase Event hereunder) if
the rating agencies making the reduction in rating to which this definition would otherwise
apply do not announce or publicly confirm or inform the Trustee in writing at its request
that the reduction was the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control shall have occurred at the time of the
Below Investment Grade rating Event).

     “Change of Control” means the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as that
term is used in Section 13(d)(3) of the Exchange Act), becomes the beneficial owner,
directly or indirectly, of more than 50% of the Company’s voting stock, measured by voting
power rather than number of shares.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent
under any successor rating categories of Moody’s); a rating of BBB- or better by S&P (or
its equivalent under any successor rating categories of S&P); and the equivalent investment
grade credit rating from any additional rating agency or rating agencies selected by the
Company.

     “Moody’s” means Moody’s Investors Service Inc.

     “Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P
ceases to rate the Securities or fails to make a rating of the Securities publicly
available for reasons outside of its control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act,
selected by the Company (as certified by a resolution of the Board of Directors) as a
replacement agency for Moody’s or S&P, or both, as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc..

     “Voting Stock” of any specified person (as that term is used in Section 13(d)(3) of
the Exchange Act) as of any date means the capital stock of such person that is at the time
entitled to vote generally in the election of the board of directors of such person.

 

 

     (....)

     FURTHER RESOLVED, that the Securities of each such series are declared to be issued under the
Indenture and subject to the provisions hereof;

     FURTHER RESOLVED, that the Chairman of the Board, the President or any Vice President of the
Company is authorized to execute, on the Company’s behalf and in its name, and the Secretary or any
Assistant Secretary of the Company is authorized to attest to such execution and under the
Company’s seal (which may be in the form of a facsimile of the Company’s seal), $300,000,000
aggregate principal amount of the Floating Rate Notes Due 2010 (the “2010 Notes”) and $300,000,000
of the 5.85% Notes Due 2017 (the “2017 Notes”) (and in addition, in each case, Securities to
replace lost, stolen, mutilated or destroyed Securities and Securities required for exchange,
substitution or transfer, all as provided in the Indenture) and to deliver such Securities to the
Trustee for authentication, and the Trustee is authorized and directed thereupon to authenticate
and deliver the same to or upon the written order of this Company as provided in the Indenture;

     FURTHER RESOLVED, that the signatures of the Company officers so authorized to execute the
Securities of such series may be the manual or facsimile signatures of the present or any future
authorized officers and may be imprinted or otherwise reproduced thereon, and the Company for such
purpose adopts each facsimile signature as binding upon it notwithstanding the fact that at the
time the respective Securities shall be authenticated and delivered or disposed of, the individual
so signing shall have ceased to hold such office;

     FURTHER RESOLVED, that Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc. are appointed joint book-running managers of the
underwriters for the issuance and sale of the Securities of such series, and the Chairman of the
Board, the President or any Vice President of the Company is authorized, in the Company’s name and
on its behalf, to execute and deliver an Underwriting Agreement, substantially in the form
heretofore approved by the Company’s Board of Directors, with the underwriters, with such changes
and insertions therein as are appropriate to conform such Underwriting Agreement to the terms set
forth herein or otherwise as the officer executing such Underwriting Agreement shall approve and as
are not inconsistent with these resolutions, such approval to be conclusively evidenced by such
officer’s execution and delivery of the Underwriting Agreement;

     FURTHER RESOLVED, that The Bank of New York Trust Company, N. A., the Trustee under the
Indenture, is appointed trustee for Securities of such series, and as Agent of this Company for the
purpose of effecting the registration, transfer and exchange of the Securities of such series as
provided in the Indenture, and the corporate trust office of The Bank of New York Trust Company, N.
A., in Chicago, Illinois is designated pursuant to the Indenture as the office or agency of the
Company where such

 

 

Securities may be presented for registration, transfer and exchange and where notices and
demands to or upon this Company in respect of the Securities and the Indenture may be served;

     FURTHER RESOLVED, that The Bank of New York Trust Company, N. A. is appointed Paying Agent of
this Company for the payment of interest on and principal of the Securities of such series, and
Calculation Agent for the purpose of calculating the applicable interest rate or rates of the 2010
Notes in accordance with the terms of such Securities and the Indenture, and the corporate trust
office of The Bank of New York Trust Company, N. A., is designated, pursuant to the Indenture, as
the office or agency of the Company where Securities may be presented for payment; and

     FURTHER RESOLVED, that each of the Company’s officers is authorized and directed, on behalf of
the Company and in its name, to do or cause to be done everything such officer deems advisable to
effect the sale and delivery of the Securities of such series pursuant to the Underwriting
Agreement and otherwise to carry out the Company’s obligations under the Underwriting Agreement,
and to do or cause to be done everything and to execute and deliver all documents as such officer
deems advisable in connection with the execution and delivery of the Underwriting Agreement and the
execution, authentication and delivery of such Securities (including, without limiting the
generality of the foregoing, delivery to the Trustee of the Securities for authentication and of
requests or orders for the authentication and delivery of Securities).

 

 

FACE OF GLOBAL SECURITY

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, 55 WATER STREET, NEW YORK, NEW YORK (THE “DEPOSITARY”), TO MASCO CORPORATION OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

 

MASCO CORPORATION

Floating Rate Notes Due 2010

	 	 	 	 	 
	CUSIP No. 574599BE5

	 	$	300,000,000	 
	No. R-1
	 	 	 	 

     Masco Corporation, a corporation duly organized and existing under the laws of Delaware
(herein called the “Company,” which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered
assigns, the principal sum of Three Hundred Million Dollars on March 12, 2010 (the “Maturity
Date”), and to pay a floating interest rate, subject to adjustment as provided herein, quarterly in
arrears on March 12, June 12, September 12 and December 12 (each an “Interest Payment Date”), and
on the Maturity Date. If any of the Interest Payment Dates listed above falls on a day that is not
a LIBOR Business Day, as defined herein, the Company will postpone the Interest Payment Date to the
next succeeding LIBOR Business Day unless that LIBOR Business Day is in the next succeeding
calendar month, in which case the Interest Payment Date will be the immediately preceding LIBOR
Business Day. Interest on the Securities will be computed on the basis of a 360 day year for the
actual number of days elapsed. Payment of the principal of and interest on this Security will be
made at the office or agency of the Company maintained for that purpose, in such coin or currency
of the United States of America as at the time of payment shall be legal tender for the payment of
public and private debts. At the option of the Company, interest may be paid by check to the
registered holder hereof entitled thereto at his last address as it appears on the registry books,
and principal may be paid by check to the registered holder or other person entitled thereto
against surrender of this Security.

     Interest on the Securities will accrue from, and including March 14, 2007, to, and excluding,
the first Interest Payment Date and then from, and including, the immediately preceding Interest
Payment Date to which interest has been paid or duly provided for to, but excluding, the next
Interest Payment Date or the Maturity Date, as the case may be. Each of these periods is referred
to herein as an “Interest Period.” The amount of accrued interest that the Company will pay for
any Interest Period will be calculated by multiplying the face amount of the Security by the
accrued interest factor. The accrued interest factor is computed by adding the interest factor
calculated for each day from March 14, 2007, or from the last date the Company paid interest, to
the date for which accrued interest is calculated. The interest factor for each day will be
computed by dividing the interest rate applicable to that day by 360.

2

 

     If the Maturity Date of the Securities falls on a day that is not a LIBOR Business Day, the
Company will pay principal and interest on the next succeeding LIBOR Business Day, and that payment
will be deemed as made on the date that the payment was due. No interest will accrue on the
payment for the period from and after the Maturity Date to the date the Company makes the payment on the next succeeding LIBOR Business
Day.

     The interest payable by the Company on a Security on any Interest Payment Date, subject to
certain exceptions, will be paid to the person in whose name the Security is registered at the
close of business on the fifteenth calendar day, whether or not a LIBOR Business Day, immediately
preceding the Interest Payment Date (the “Regular Record Date”). Interest that the Company pays on
the Maturity Date, will be payable to the person to whom the principal will be payable.

     “LIBOR Business Day” means any day except a Saturday, a Sunday or a legal holiday in The City
of New York on which banking institutions are authorized or required by law, regulation or
executive order to close; provided that the day is also a London Business Day. “London Business
Day” means any day on which dealings in United States dollars are transacted in the London
interbank market.

     The interest rate on the Securities will be calculated by the calculation agent appointed by
the Company and will be equal to LIBOR plus 0.30%. The calculation agent will reset the interest
rate on each Interest Payment Date, and on March 14, 2007, each of which is referred to herein as
an interest reset date (“Interest Reset Date”). The second London Business Day preceding an
Interest Reset Date will be the interest determination date (“Interest Determination Date”) for
that Interest Reset Date. The interest rate in effect 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. 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 that Interest Reset Date.

     “LIBOR” will be determined by the calculation agent in accordance with the following
provisions:

     (a) With respect to any Interest Determination Date, LIBOR will be the rate for deposits
in the United States dollars having a maturity of three months commencing on the first day of
the applicable interest period that appears on the Reuters Page LIBOR01 as of 11:00 A.M.,
London time, on the Interest Determination Date. If no rate appears, LIBOR, in respect to that
Interest Determination Date, will be determined in accordance with the provisions described in
(b) below.

3

 

     (b) With respect to an Interest Determination Date on which no rate appears on Reuters
Page LIBOR01, as specified in (a) above, the calculation agent (after consultation with the
Company) will request the principal London offices of each of four major reference banks in the
London interbank market, as selected by the calculation agent, to provide the calculation agent
with its offered quotation for deposits in United States dollars for the period of three
months, commencing on the first day of the applicable interest period, to prime banks in the
London interbank market at approximately 11:00 A.M., London time, on that Interest
Determination Date and in a principal amount that is representative for a single transaction in
United States dollars in that market at that time. If at least two quotations are provided, then
LIBOR on the Interest Determination Date will be the arithmetic mean of those quotations. If
fewer than two quotations are provided, then LIBOR on the Interest Determination Date will be
the arithmetic mean of the rates quoted at approximately 11:00 A.M., in The City of New York,
on the Interest Determination Date by three major banks (which may include Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities
Inc.) in The City of New York selected by the calculation agent for loans in United States
dollars to leading European banks, having a three-month maturity and in a principal amount that
is representative for a single transaction in United States dollars in that market at that
time; provided, however, that if the banks selected by the calculation agent are not providing
quotations in the manner described by this sentence, LIBOR determined as of that Interest
Determination Date will be LIBOR in effect on that Interest Determination Date.

     “Reuters Page LIBOR01” means the display designated as “LIBOR01” on Reuters 3000 Xtra (or any
successor service) (or such other page as may replace Page LIBOR01 on Reuters 3000 Xtra) or any
successor service, for the purpose of displaying the London interbank rates of major banks for
United States dollars.

     Any such interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (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,
notice whereof shall be given to Holders of Securities of this series 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 Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture.

     The Securities will constitute part of the Company’s senior debt and will rank on a parity
with all of its other unsecured and unsubordinated debt.

4

 

     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.

5

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

Dated: March 14, 2007

	 	 	 	 	 
	 	MASCO CORPORATION

 	 
	 	By:  	
 	 
	 	 	Richard A. Manoogian 	 
	 	 	Chairman of the Board and
Chief Executive Officer 	 
	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 

	 	 

Eugene A. Gargaro, Jr.

Vice President and Secretary
	 	 

6

 

FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Date of Authentication: March 14, 2007

	 	 	 	 	 
	 	The Bank of New York Trust Company,
N.A.

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

7

 

REVERSE OF SECURITY

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
February 12, 2001 as supplemented by the Supplemental Indenture dated as of November 30, 2006
(herein called the “Indenture”), between the Company and The Bank of New York Trust Company, N.A.
(as successor under agreement originally with Bank One Trust Company, National 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 the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of a series
designated on the face hereof, initially limited in aggregate principal amount to $300,000,000.

     If a Change of Control Repurchase Event occurs, the Company will make an offer to the Holders
of Securities to repurchase all or any part (in integral multiples of $1,000) of that Holders’
Securities at a repurchase price in cash equal to 101% of the aggregate principal amount of
Securities repurchased plus any accrued and unpaid interest on the Securities repurchased to the
date of purchase. Within 30 days following any Change of Control Repurchase Event or, at the
Company’s option, prior to any Change of Control, but after the public announcement of the Change
of Control, the Company will mail a notice to each Holder, with a copy to the Trustee, describing
the transaction or transactions that constitute or may constitute the Change of Control Repurchase
Event and offering to repurchase Securities on the Payment Date specified in the notice, which date
will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The
notice shall, if mailed prior to the date of consummation of the Change of Control, state that the
offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to
the Payment Date specified in the notice. The Company will comply with the requirements of Rule
14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other
securities laws and regulations thereunder to the extent those laws and regulations are applicable
in connection with the repurchase of the Securities as a result of a Change of Control Repurchase
Event. To the extent that the provisions of any securities laws or regulations conflict with the
Change of Control Repurchase Event provisions of the Securities, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under the Change of Control Repurchase Event provisions of the Securities by virtue of such
conflict.

     On the Change of Control Repurchase Event Payment Date, the Company will, to the extent
lawful:

8

 

	 	1.	 	accept for payment all Securities or portions of Securities properly
tendered pursuant to the Company’s offer;
	 
	 	2.	 	deposit with the Paying Agent an amount equal to the aggregate purchase
price in respect of all Securities or portions of Securities properly tendered; and
	 
	 	3.	 	deliver or cause to be delivered to the Trustee the Securities properly
accepted, together with an officers’ certificate stating the aggregate principal
amount of Securities being purchased by the Company.

               The Paying Agent will promptly mail to each Holder of Securities properly tendered the
purchase price for the Securities, and the Trustee will promptly authenticate and mail (or cause to
be transferred by book-entry) to each holder a new Security equal in principal amount to any
unpurchased portion of any Securities surrendered; provided that each new Security will be in a
principal amount of $1,000 or an integral multiple of $1,000.

               The Company will not be required to make an offer to repurchase the Securities upon a Change
of Control Repurchase Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Securities properly tendered and not withdrawn under its offer.

               “Below Investment Grade Rating Event” means the Securities are rated below investment grade by
both Rating Agencies on any date from the date of the public notice of an arrangement that could
result in a Change of Control until the end of the 60-day period following public notice of the
occurrence of a Change of Control (which period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade by either of the rating
agencies); provided that a below investment grade rating event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes
of the definition of Change of Control Repurchase Event hereunder) if the rating agencies making
the reduction in rating to which this definition would otherwise apply do not announce or publicly
confirm or inform the Trustee in writing at its request that the reduction was the result, in whole
or in part, of any event or circumstance comprised of or arising as a result of, or in respect of,
the applicable Change of Control (whether or not the applicable Change of Control shall have
occurred at the time of the Below Investment Grade Rating Event).

               “Change of Control” means the consummation of any transaction (including, without limitation,
any merger or consolidation) the result of which is that any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act),

9

 

becomes the beneficial owner, directly or indirectly, of
more than 50% of the Company’s voting stock, measured by voting power rather than number of shares.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent under
any successor rating categories of S&P); and the equivalent investment grade credit rating from any
additional Rating Agency or Rating Agencies selected by the Company.

     “Moody’s” means Moody’s Investors Service Inc.

     “Paying Agent” means The Bank of New York Trust Company, N.A.

     “Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases
to rate the Securities or fails to make a rating of the Securities publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as
certified by a resolution of the Company’s board of directors) as a replacement agency for Moody’s
or S&P, or both, as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     “Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) as of any date means the capital stock of such person that is at the time entitled to
vote generally in the election of the board of directors of such person.

     This Security will be subject to defeasance and discharge and to defeasance of certain
obligations as set forth in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the 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 principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all 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 Security shall be

10

 

conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security 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 Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event
of Default with respect to the Securities of this series, the Holders of not less than 25% in
principal amount of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders
of a majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein.

     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 herein provided, and at the
times, place and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations set forth therein and on the
face of this Security, the transfer of this Security is registrable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency of the Company in
any place where the principal of (and premium, if any) and interest on this Security are payable,
duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

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

11

 

     No service charge shall be made 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.

     Prior to due presentment of this Security 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
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

12exv4wbwii

 

Exhibit 4.b.ii.

RESOLUTIONS OF THE PRICING COMMITTEE

OF THE BOARD OF DIRECTORS OF

MASCO CORPORATION

March 9, 2007

     WHEREAS, Masco Corporation, a Delaware corporation (the “Company”) the Company has filed a
Registration Statement (No. 333-140970) on Form S-3 with the Securities and Exchange Commission,
which is in effect;

     WHEREAS, the Company desires to create two series of securities under the Indenture dated as
of February 12, 2001, as supplemented by the Supplemental Indenture dated as of November 30, 2006
(the “Indenture”), with The Bank of New York Trust Company, N. A. (as successor trustee under
agreement originally with Bank One Trust Company, National Association) (the “Trustee”), providing
for the issuance from time to time of unsecured debentures, notes or other evidences of
indebtedness of this Company (“Securities”) in one or more series under such Indenture; and

     WHEREAS, capitalized terms used in these resolutions and not otherwise defined are used with
the same meaning ascribed to such terms in the Indenture;

     THEREFORE, BE IT RESOLVED, that there is established a series of Securities under the
Indenture, the terms of which shall be as follows:

     (....)

     2017 Notes

     1. The Securities of one series shall be designated as the “5.85% Notes Due 2017.”

     2. The aggregate principal amount of Securities of such series which may be
authenticated and delivered under the Indenture is limited to Three Hundred Million
($300,000,000), except for Securities of such series authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of, other Securities of such
series pursuant to Sections 3.04, 3.05, 3.06, 9.06 or 11.07 of the Indenture.

     3. The date on which the principal of the Securities of such series shall be payable
is March 15, 2017. Such Securities are not subject to any sinking fund.

     4. The Securities of such series shall bear interest from March 14, 2007 at the rate
of 5.85% per annum, payable semi-annually in arrears on March 15 and September 15 of each
year commencing on September 15, 2007 until the

 

 

principal there of is paid or made available for payment. The March 1 and September 1
(whether or not a business day), as the case may be, next preceding each such interest
payment date shall be the “record date” for the determination of holders to who interest is
payable

     5. The Securities of such series shall be issued initially in the form of global
securities registered in the name of Cede & Co., as nominee of The Depository Trust Company
(“DTC”), and will be held by the Trustee as custodian for DTC. The Securities shall be
subject to the procedures of DTC and will not be issued in definitive registered form.

     6. The principal of and interest on the Securities of such series shall be payable at
the office or agency of this Company maintained for such purpose in Chicago, Illinois or at
any other office or agency designated by the Company for such purpose pursuant to the
Indenture.

     7. The Securities of such series shall be subject to redemption in whole or in part
prior to maturity, at the Company’s option, at a redemption price established in accordance
with current market practice, substantially as follows: the redemption price shall be
equal to the greater of (i) 100% of the principal amount of the Securities plus accrued
interest to the redemption date, or (ii) the sum of the present values of the remaining
principal amount and scheduled payments of interest on the Securities of such series to be
redeemed (other than accrued interest to the redemption date), discounted to the redemption
date on a semi-annual basis at the appropriate treasury rate plus 20 basis points plus
accrued interest to the redemption date.

     8. The Securities of such series shall be issuable in denominations of One Thousand
Dollars ($1,000) and any integral multiples thereof.

     9. The Securities of such series of shall be issuable at a price such that this
Company shall receive Two Hundred Ninety Six Million Nine Hundred Ninety Four Thousand
Dollars ($296,994,000) after an underwriting discount of One Million Nine Hundred Fifty
Thousand Dollars ($1,950,000).

     10. The Securities of such series shall be subject to Defeasance and discharge
pursuant to Section 4.02 of the Indenture and to Covenant Defeasance pursuant to Section
10.06 of the Indenture with respect to any term, provision or condition set forth in any
negative or restrictive covenant of the Company applicable to the Securities.

     11. The Securities shall be subject to the following change of control repurchase
event:

            If a Change of Control Repurchase Event occurs, the Company will make an offer to each
holder of Securities to repurchase all or any part (in

 

 

integral multiples of $1,000) of that holders’ Securities at a repurchase price in cash
equal to 101% of the aggregate principal amount of Securities repurchased plus any accrued
and unpaid interest on the Securities repurchased to the date of purchase. Within 30 days
following any Change of Control Repurchase Event or, at the Company’s option, prior to any
Change of Control, but after the public announcement of the Change of Control, the Company
will mail a notice to each holder, with a copy to the Trustee, describing the transaction
or transactions that constitute or may constitute the Change of Control Repurchase Event
and offering to repurchase Securities on the payment date specified in the notice, which
date will be no earlier than 30 days and no later than 60 days from the date such notice is
mailed. The notice shall, if mailed prior to the date of consummation of the Change of
Control, state that the offer to purchase is conditioned on the Change of Control
Repurchase Event occurring on or prior to the payment date specified in the notice. The
Company will comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the
repurchase of the Securities as a result of a Change of Control Repurchase Event. To the
extent that the provisions of any securities laws or regulations conflict with the Change
of Control Repurchase Event provisions of the Securities, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its
obligations under the Change of Control Repurchase Event provisions of the Securities by
virtue of such conflict.

     On the Change of Control Repurchase Event payment date, the Company will, to the
extent lawful:

	 	1.	 	accept for payment all Securities or portions of Securities properly tendered
pursuant to the Company’s offer;
	 
	 	2.	 	deposit with the paying agent an amount equal to the aggregate purchase price in
respect of all Securities or portions of Securities properly tendered; and
	 
	 	3.	 	deliver or cause to be delivered to the Trustee the Securities properly
accepted, together with an officers’ certificate stating the aggregate principal
amount of Securities being purchased by the Company.

The paying agent will promptly mail to each holder of Securities properly tendered the
purchase price for the Securities, and the Trustee will promptly authenticate and mail (or
cause to be transferred by book-entry) to each holder a new Security equal in principal
amount to any unpurchased portion of any Securities surrendered; provided that each new
Security will be in a principal amount of $1,000 or an integral multiple of $1,000.

 

 

     The Company will not be required to make an offer to repurchase the Securities upon a
Change of Control Repurchase Event if a third party makes an offer in the manner, at the
times and otherwise in compliance with the requirements for an offer made by the Company
and such third party purchases all Securities properly tendered and not withdrawn under it
offer.

     “Below Investment Grade Rating Event” means the Securities are rated below investment
grade by both Rating Agencies on any date from the date of the public notice of an
arrangement that could result in a Change of Control until the end of the 60-day period
following public notice of the occurrence of a Change of Control (which period shall be
extended so long as the rating of the Securities is under publicly announced consideration
for possible downgrade by either of the Rating Agencies); provided that a Below Investment
Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall
not be deemed to have occurred in respect of a particular Change of Control (and thus shall
not be deemed a Below Investment Grade Rating Event for purposes of the definition of
Change of Control Repurchase Event hereunder) if the rating agencies making the reduction
in rating to which this definition would otherwise apply do not announce or publicly
confirm or inform the Trustee in writing at its request that the reduction was the result,
in whole or in part, of any event or circumstance comprised of or arising as a result of,
or in respect of, the applicable Change of Control (whether or not the applicable Change of
Control shall have occurred at the time of the Below Investment Grade rating Event).

     “Change of Control” means the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any “person” (as that
term is used in Section 13(d)(3) of the Exchange Act), becomes the beneficial owner,
directly or indirectly, of more than 50% of the Company’s voting stock, measured by voting
power rather than number of shares.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent
under any successor rating categories of Moody’s); a rating of BBB- or better by S&P (or
its equivalent under any successor rating categories of S&P); and the equivalent investment
grade credit rating from any additional rating agency or rating agencies selected by the
Company.

     “Moody’s” means Moody’s Investors Service Inc.

     “Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P
ceases to rate the Securities or fails to make a rating of the Securities publicly
available for reasons outside of its control, a “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act,
selected by the Company (as certified by a

 

 

resolution of the Board of Directors) as a replacement agency for Moody’s or S&P, or both,
as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc.

     “Voting Stock” of any specified person (as that term is used in Section 13(d)(3) of
the Exchange Act) as of any date means the capital stock of such person that is at the time
entitled to vote generally in the election of the board of directors of such person.

     FURTHER RESOLVED, that the Securities of each such series are declared to be issued under the
Indenture and subject to the provisions hereof;

     FURTHER RESOLVED, that the Chairman of the Board, the President or any Vice President of the
Company is authorized to execute, on the Company’s behalf and in its name, and the Secretary or any
Assistant Secretary of the Company is authorized to attest to such execution and under the
Company’s seal (which may be in the form of a facsimile of the Company’s seal), $300,000,000
aggregate principal amount of the Floating Rate Notes Due 2010 (the “2010 Notes”) and $300,000,000
of the 5.85% Notes Due 2017 (the “2017 Notes”) (and in addition, in each case, Securities to
replace lost, stolen, mutilated or destroyed Securities and Securities required for exchange,
substitution or transfer, all as provided in the Indenture) and to deliver such Securities to the
Trustee for authentication, and the Trustee is authorized and directed thereupon to authenticate
and deliver the same to or upon the written order of this Company as provided in the Indenture;

     FURTHER RESOLVED, that the signatures of the Company officers so authorized to execute the
Securities of such series may be the manual or facsimile signatures of the present or any future
authorized officers and may be imprinted or otherwise reproduced thereon, and the Company for such
purpose adopts each facsimile signature as binding upon it notwithstanding the fact that at the
time the respective Securities shall be authenticated and delivered or disposed of, the individual
so signing shall have ceased to hold such office;

     FURTHER RESOLVED, that Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc. are appointed joint book-running managers of the
underwriters for the issuance and sale of the Securities of such series, and the Chairman of the
Board, the President or any Vice President of the Company is authorized, in the Company’s name and
on its behalf, to execute and deliver an Underwriting Agreement, substantially in the form
heretofore approved by the Company’s Board of Directors, with the underwriters, with such changes
and insertions therein as are appropriate to conform such Underwriting Agreement to the terms set
forth herein or otherwise as the officer executing such Underwriting Agreement shall approve and as
are not inconsistent with these resolutions, such approval to be

 

 

conclusively evidenced by such officer’s execution and delivery of the Underwriting Agreement;

     FURTHER RESOLVED, that The Bank of New York Trust Company, N. A., the Trustee under the
Indenture, is appointed trustee for Securities of such series, and as Agent of this Company for the
purpose of effecting the registration, transfer and exchange of the Securities of such series as
provided in the Indenture, and the corporate trust office of The Bank of New York Trust Company, N.
A., in Chicago, Illinois is designated pursuant to the Indenture as the office or agency of the
Company where such Securities may be presented for registration, transfer and exchange and where
notices and demands to or upon this Company in respect of the Securities and the Indenture may be
served;

     FURTHER RESOLVED, that The Bank of New York Trust Company, N. A. is appointed Paying Agent of
this Company for the payment of interest on and principal of the Securities of such series, and
Calculation Agent for the purpose of calculating the applicable interest rate or rates of the 2010
Notes in accordance with the terms of such Securities and the Indenture, and the corporate trust
office of The Bank of New York Trust Company, N. A., is designated, pursuant to the Indenture, as
the office or agency of the Company where Securities may be presented for payment; and

     FURTHER RESOLVED, that each of the Company’s officers is authorized and directed, on behalf of
the Company and in its name, to do or cause to be done everything such officer deems advisable to
effect the sale and delivery of the Securities of such series pursuant to the Underwriting
Agreement and otherwise to carry out the Company’s obligations under the Underwriting Agreement,
and to do or cause to be done everything and to execute and deliver all documents as such officer
deems advisable in connection with the execution and delivery of the Underwriting Agreement and the
execution, authentication and delivery of such Securities (including, without limiting the
generality of the foregoing, delivery to the Trustee of the Securities for authentication and of
requests or orders for the authentication and delivery of Securities).

 

 

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, 55 WATER STREET, NEW YORK, NEW YORK (THE “DEPOSITARY”), TO MASCO CORPORATION OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

MASCO CORPORATION

5.85% Notes Due 2017

	 	 	 	 	 
	CUSIP No. 574599BF2

	 	$	300,000,000	 
	No. R-1
	 	 	 	 

     Masco Corporation, a corporation duly organized and existing under the laws of Delaware
(herein called the “Company,” which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered
assigns, the principal sum of Three Hundred Million Dollars on March 15, 2017, and to pay interest
thereon from March 14, 2007 or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on September 15 and March 15 in each year, commencing
September 15, 2007, at the rate of 5.85% per annum, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the March 1 or September 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date; provided, however,
that interest payable at maturity will be payable to the person to whom the principal hereof will
be payable. Any such interest not so punctually paid or duly provided for will forthwith cease to
be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (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,
notice whereof shall be given to Holders of Securities of this series 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 Securities of this series may be
listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. Interest on the Securities shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.

     Payment of the principal of (and premium, if any) and any such interest on this Security will
be made at the office or agency of the Company maintained for that purpose, 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 by check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register.

     The Securities will constitute part of the Company’s senior debt and will rank on a parity
with all of its other unsecured and unsubordinated debt.

     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 under its
corporate seal.

Dated: March 14, 2007

	 	 	 	 	 	 	 
	 	 	MASCO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Richard A. Manoogian
	 	  
	 

	 	 	 	Chairman of the Board and
Chief Executive Officer	 	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 

	 	 

Eugene A. Gargaro, Jr.
	 	  
	 

	 	Vice President and Secretary	 	 

3

 

FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Date of Authentication: March 14, 2007

	 	 	 	 	 	 	 
	 	 	The Bank of New York
Trust Company, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Officer
	 	  

4

 

REVERSE OF SECURITY

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
February 12, 2001 as supplemented by the Supplemental Indenture dated as of November 30, 2006
(herein called the “Indenture”), between the Company and The Bank of New York Trust Company, N.A.
(as successor under agreement originally with Bank One Trust Company, National 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 the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, initially limited in aggregate principal amount to $300,000,000.

     The Securities will be redeemable at the option of the Company, in whole at any time or in
part from time to time (each, a “Redemption Date”) at a redemption price equal to the greater of
(i) 100% of their principal amount plus accrued interest to the Redemption Date and (ii) the sum,
as determined by the Independent Investment Banker, of the present values of the principal amount
and the remaining scheduled payments of interest on the Securities to be redeemed (exclusive of
interest accrued to such Redemption Date), discounted from the scheduled payment dates to the
Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 25 basis points plus accrued but unpaid interest thereon to the
Redemption Date. Notwithstanding the foregoing, installments of interest on Securities that are
due and payable on an interest payment date falling on or prior to the relevant Redemption Date
will be payable to the holders of such Securities registered as such at the close of business on
the relevant record date according to their terms and the provisions of the Indenture.

     If a Change of Control Repurchase Event occurs, unless the Company has exercised its right to
redeem the Securities, the Company will make an offer to the Holders of Securities to repurchase
all or any part (in integral multiples of $1,000) of that Holders’ Securities at a repurchase price
in cash equal to 101% of the aggregate principal amount of Securities repurchased plus any accrued
and unpaid interest on the Securities repurchased to the date of purchase. Within 30 days following
any Change of Control Repurchase Event or, at the Company’s option, prior to any Change of Control,
but after the public announcement of the Change of Control, the Company will mail a notice to each
Holder, with a copy to the Trustee, describing the transaction or transactions that constitute or
may constitute the Change of Control Repurchase Event and offering to repurchase Securities on the
Payment Date specified in the notice, which date will be no earlier than

5

 

30 days and no later than
60 days from the date such notice is mailed. The notice shall, if mailed prior to the date of
consummation of the Change of Control, state that the offer to purchase is conditioned on the
Change of Control Repurchase Event occurring on or prior to the Payment Date specified in the
notice. The Company will
comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with the repurchase of the
Securities as a result of a Change of Control Repurchase Event. To the extent that the provisions
of any securities laws or regulations conflict with the Change of Control Repurchase Event
provisions of the Securities, the Company will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under the Change of Control
Repurchase Event provisions of the Securities by virtue of such conflict.

     On the Change of Control Repurchase Event Payment Date, the Company will, to the extent
lawful:

	 	1.	 	accept for payment all Securities or portions of Securities properly
tendered pursuant to the Company’s offer;
	 
	 	2.	 	deposit with the Paying Agent an amount equal to the aggregate purchase
price in respect of all Securities or portions of Securities properly tendered; and
	 
	 	3.	 	deliver or cause to be delivered to the Trustee the Securities properly
accepted, together with an officers’ certificate stating the aggregate principal
amount of Securities being purchased by the Company.

     The Paying Agent will promptly mail to each Holder of Securities properly tendered the
purchase price for the Securities, and the Trustee will promptly authenticate and mail (or cause to
be transferred by book-entry) to each holder a new Security equal in principal amount to any
unpurchased portion of any Securities surrendered; provided that each new Security will be in a
principal amount of $1,000 or an integral multiple of $1,000.

     The Company will not be required to make an offer to repurchase the Securities upon a Change
of Control Repurchase Event if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for an offer made by the Company and such third party
purchases all Securities properly tendered and not withdrawn under its offer.

     “Below Investment Grade Rating Event” means the Securities are rated below investment grade by
both Rating Agencies on any date from the date of the public notice of an arrangement that could
result in a Change of Control until the end of the 60-day period following public notice of the
occurrence of a Change of

6

 

Control (which period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade by either of the rating
agencies); provided that a below investment grade rating event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes
of the definition of Change of Control Repurchase Event hereunder) if the
rating agencies making the reduction in rating to which this definition would otherwise apply
do not announce or publicly confirm or inform the Trustee in writing at its request that the
reduction was the result, in whole or in part, of any event or circumstance comprised of or arising
as a result of, or in respect of, the applicable Change of Control (whether or not the applicable
Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).

     “Change of Control” means the consummation of any transaction (including, without limitation,
any merger or consolidation) the result of which is that any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), becomes the beneficial owner, directly or indirectly, of
more than 50% of the Company’s voting stock, measured by voting power rather than number of shares.

     “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Securities to be redeemed.

     “Comparable Treasury Price” means, with respect to any Redemption Date, the average of the
Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or if the Trustee obtains fewer than three such
Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Trustee after consultation with the Company.

     “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any
successor rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent under
any successor rating categories of S&P); and the equivalent investment grade credit rating from any
additional Rating Agency or Rating Agencies selected by the Company.

7

 

     “Moody’s” means Moody’s Investors Service Inc.

     “Paying Agent” means the The Bank of New York Trust Company, N.A.

     “Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases
to rate the Securities or fails to make a rating of the Securities publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as
certified by a resolution of the Company’s
board of directors) as a replacement agency for Moody’s or S&P, or both, as the case may be.

     “Reference Treasury Dealer” means (a) each of Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and their respective
successors, unless either of them ceases to be a primary U.S. Government securities dealer in New
York City (a “Primary Treasury Dealer”), in which case the Company shall substitute another Primary
Treasury Dealer; and (b) any other Primary Treasury Dealer selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date for the Securities, the average, as determined by the Trustee, of the bid
and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.
New York City time, on the third Business Day preceding such Redemption Date.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated on the third
Business Day preceding such Redemption Date using a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable Treasury price for such
Redemption Date.

     “Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the
Exchange Act) as of any date means the capital stock of such person that is at the time entitled to
vote generally in the election of the board of directors of such person.

     This Security will be subject to defeasance and discharge and to defeasance of certain
obligations as set forth in the Indenture.

8

 

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the 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 principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all 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 Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security 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 Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

     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 herein provided, and 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 and on face of this
Security, the transfer of this Security is registrable in the Security Register, upon surrender of
this Security for registration of transfer at the office or agency of the Company in any place
where the principal of (and premium, if any) and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed by, the Holder hereof or his attorney duly

9

 

authorized in
writing, and thereupon one or more new Securities of this series, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated transferee or
transferees.

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

     No service charge shall be made 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.

     Prior to due presentment of this Security 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
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

10

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