Document:

ex10_28.htm

    Exhibit
10.28

     

    
 

    WARRANT
TO PURCHASE

    SHARES
OF

    ACCOUNTABILITIES,
INC.

     

    NEITHER
THIS WARRANT NOR ANY SECURITIES PURCHASABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES
LAWS.  THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO DISTRIBUTION OR RESALE, AND NEITHER THIS WARRANT NOR ANY SECURITIES
PURCHASABLE UPON EXERCISE HEREOF MAY BE SOLD OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE SECURITIES ACT OF
1933 AND ANY APPLICABLE STATE SECURITIES LAWS, OR EVIDENCE REASONABLY
SATISFACTORY TO THE CORPORATION THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT
AND LAWS.

     

    _________________________

     

    This is
to certify that, FOR VALUE RECEIVED, _________ (the
“Holder”) or registered assigns is entitled to purchase, subject to the
provisions of this Warrant, from Accountabilities, Inc., a Delaware corporation
(the “Corporation”), __________ shares of the Corporation’s Common Stock, $.0001
par value per share (the “Common Stock”), at an exercise price of _____ per
share (the “Warrant Price”), at any time prior to 5:00 p.m. New York City time
on January 10, 2011 (the “Expiration Date”), at which time this Warrant shall
expire and become void.  The number of shares to be received upon the
exercise of this Warrant and the price to be paid for each share shall be
adjusted from time to time as hereinafter set forth.  The shares or
other securities or property deliverable upon such exercise, as adjusted from
time to time, are hereinafter sometimes referred to as “Warrant Shares” and the
exercise price of a share in effect at any time and as adjusted from time to
time is hereinafter sometimes referred to as the “Warrant
Price.”  Unless the context otherwise requires, the term “Warrant” or
“Warrants” as used herein includes this Warrant and any other Warrant or
Warrants which may be issued pursuant to the provisions of this Warrant, whether
upon transfer, assignment, partial exercise, divisions, combinations, exchange
or otherwise, and the term “Holder” includes any transferee or transferees or
assignee or assignees of the Holder named above, all of whom shall be subject to
the provisions of this Warrant, and, when used with reference to Warrant Shares,
means the holder or holders of such Warrant Shares.

     

    Section
1. Exercise.  This
Warrant may be exercised in whole or in part at any time or from time to time
before 5:00 P.M., New York City Time, on the Expiration Date, or if such day is
a day on which Federal or State chartered banking institutions located in the
State of New Jersey are authorized by law to close, then on the next succeeding
day which shall not be such a day, by presentation and surrender hereof to the
Corporation at its principal office, with the Purchase Form annexed hereto duly
executed and accompanied by payment, in cash or certified or official bank check
payable to the order of the Corporation, of the aggregate Warrant Price for the
number of Warrant Shares specified in such form.  If this Warrant
should be exercised in part only, the Corporation shall, upon presentation of
this Warrant upon such exercise, execute and deliver a new Warrant, dated the
date hereof, evidencing the rights of the Holder thereof to purchase the balance
of the Warrant Shares purchasable hereunder under the same terms
and

     

    
      
         

      

      
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    conditions
as herein set forth.  Upon and as of receipt by the Corporation of
this Warrant at its office, in proper form for exercise and accompanied by
payment as herein provided, the Holder shall be deemed to be the holder of
record of the Warrant Shares issuable upon such exercise and admitted as a
shareholder of the Corporation, notwithstanding that the transfer books of the
Corporation shall then be closed.

     

    Section
2. Reservation of
Shares.  The Corporation hereby agrees that at all times until
expiration of this Warrant there shall be reserved for issuance and/or delivery
upon exercise of this Warrant such number of shares of Common Stock as shall be
required for issuance or delivery upon exercise of this Warrant.

     

    
      	
              Section
      3.  

            	
              Exchange or Loss of
      Warrant.

            

    

     

    3.1 This
Warrant is exchangeable, without expense, at the option of the Holder, upon
presentation and surrender hereof to the Corporation at its principal office,
for other Warrants of different denominations entitling the Holder thereof to
purchase in the aggregate the same number of Warrant Shares purchasable
hereunder on the same terms and conditions as herein set forth.

     

    3.2 Upon
receipt by the Corporation of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and (in the case of loss, theft or
destruction) of reasonably satisfactory indemnification, and upon surrender and
cancellation of this Warrant, if mutilated, the Corporation will execute and
deliver a new Warrant of like tenor and date and any such lost, stolen, or
destroyed Warrant shall thereupon become void.  Any such new Warrant
executed and delivered shall constitute an additional contractual obligation on
the part of the Corporation, whether or not the Warrant so lost, stolen,
destroyed or mutilated shall be at any time enforceable by anyone.

     

    Section
4. Adjustment of Warrant Price
and Number of Warrant Shares.  The Warrant Price and the number
and kind of securities purchasable upon the exercise of this Warrant shall be
subject to adjustment from time to time upon the happening of certain events or
as otherwise provided in this Section 4.  The Warrant Price in effect
at any time and the number and kind of securities purchasable upon exercise of
this Warrant shall be subject to adjustment as follows:

     

    4.1 Share Dividends,
Reclassification and Recapitalization.  In case the Corporation
shall (i) pay a dividend or make a distribution on all of its outstanding shares
of Common Stock in shares of Common Stock, (ii) subdivide, reclassify or
recapitalize its outstanding shares of Common Stock into a greater number of
shares, or (iii) combine, reclassify or recapitalize its outstanding shares of
Common Stock into a smaller number of shares, the Warrant Price in effect at the
time of the record date for such dividend or distribution or on the effective
date of such subdivision, combination, reclassification or recapitalization and
the number of shares issuable upon the exercise of this Warrant shall, if
necessary to give equitable effect to the Holder, be proportionately adjusted
and the Holder of any Warrant exercised after such date shall be entitled to
receive the aggregate number and kind of shares which, if such Warrant had been
exercised immediately prior to such time, the Holder would have owned upon such
exercise and been entitled to receive upon such dividend, subdivision,
combination, reclassification or

     

    
      
         

      

      
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    recapitalization.  Such
adjustment shall be made successively whenever any event listed in this Section
4.1 shall occur.

     

    4.2 Notice of
Adjustment.  Whenever the number of Warrant Shares purchasable
upon the exercise of this Warrant or the Warrant Price of such Warrant Shares is
adjusted, as herein provided, the Corporation shall file in the custody of its
Secretary or an Assistant Secretary at its principal office, an officer’s
certificate setting forth the number of Warrant Shares purchasable upon the
exercise of this Warrant and the Warrant Price of the Warrant Shares after such
adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was
made.  Each such officer’s certificate shall be made available at all
reasonable times for inspection by the Holder of this Warrant and the
Corporation shall, forthwith after each such adjustment, mail a copy of such
certificate to such Holder by first-class mail, postage prepaid.

     

    4.3 No Adjustment for
Distributions.  No adjustment in respect of any cash
distributions by the Corporation shall be made during the term of this Warrant
or upon exercise of this Warrant.

     

    4.4 Purchase Rights Upon
Reorganization, Merger, Consolidation, etc.  In the event of
any capital reorganization of the Company (other than an event referred to in
Section 4.1), or in case of the consolidation of the Company with, the merger of
the Company with or into or the sale of all or substantially all of the
properties and assets of the Company to any other person, if in connection
therewith consideration other than cash is payable to the company or holders of
Common Stock (or other securities or property purchasable upon exercise of this
Warrant) in exchange therefore, this Warrant shall remain subject to the terms
and conditions set forth in this Warrant and this Warrant shall, after such
capital reorganization, consolidation, merger or sale be convertible into the
number of shares of stock or other securities or assets to which a holder of the
number of shares of Common Stock receivable (at the time of such capital
reorganization, reclassification of such Common Stock, consolidation, merger or
sale) upon exercise of this Warrant would have been entitled if this Warrant had
been exercised immediately prior to such capital reorganization,
reclassification of such Common Stock, consolidation, merger or sale; and in any
such case, if necessary, the provisions set forth in this Warrant with respect
to the rights and interests thereafter of the Warrantholder shall be
appropriately adjusted so as to be applicable, as nearly as may reasonably be,
to any shares of stock or other securities or assets thereafter deliverable on
the exercise of this Warrant.  The Company shall not effect any such
consolidation, merger or sale, unless prior to or simultaneously with the
consummation thereof, the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such
assets or the appropriate corporation or entity shall assume, by written
instrument, the obligation to deliver to the Warrantholder the shares of stock,
securities or assets to which the Holder may be entitled pursuant to this
Section 2(e).

     

    4.5 Cash Transactions;
Dissolution.  Notwithstanding Section 4.4, (i) if the Company
merges or consolidates with, or sells all or substantially all of its property
and assets to, any other person and consideration is payable to holders of
Common Stock in exchange for their Common Stock in connection with such merger,
consolidation or sale which consists solely of cash, or (ii) in the event of the
dissolution, liquidation or winding up of the Company, then the Warrantholder
may exercise this Warrant immediately prior to such event and participate as
a

     

    
      
         

      

      
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    holder of
Common Stock (or other securities issuable upon exercise of this Warrant) with
respect to such event.  Upon receipt of such payment at the option of
the Warrantholder, if any, the rights of the Warrantholder shall terminate and
cease and this Warrant shall be deemed exercised in full.  In case of
any such merger, consolidation or sale of assets, the surviving or acquiring
person and, in the event of any dissolution, liquidation or winding up of the
Company, the Company, shall promptly, after receipt of this surrendered Warrant,
make payment by delivering a check in such amount as is appropriate (or, in the
case of consideration other than cash, such other consideration as is
appropriate) to such person as it may be directed in writing by the
Warrantholder surrendering this Warrant.

     

    Section
5. No Rights as Shareholder;
Notices to Shareholders.  Nothing contained in this Warrant
shall be construed as conferring upon the Holder or any transferee the right to
vote or to receive distributions or to consent or to receive notice as a
shareholder in respect of any meeting of shareholders for the election of
directors of the Corporation or any other matter, or any rights whatsoever as a
shareholder of the Corporation, prior to the valid exercise of this Warrant
..

     

    Section
6. Notice of Certain Proposed
Actions.  In case at any time after this Warrant becomes
exercisable the Corporation shall propose:

     

    (a) to pay or
make any distribution to all holders of its Common Stock; or

     

    (b) to issue
any rights, warrants or other securities to all holders of its Common Stock
entitling them to purchase any additional shares or any rights, warrants or
other securities; or

     

    (c) to effect
any reclassification or change of outstanding shares of Common Stock, or any
consolidation, merger, sale, lease or conveyance of property described in
Section 4; or

     

    (d) to effect
any liquidation, dissolution or winding-up of the Corporation;

     

    then, and
in any one or more of such cases, the Corporation shall give written notice
thereof, by registered mail, postage prepaid, to the Holder, at the Holder’s
address as it shall appear in the books and records of the Corporation, mailed
at least 10 days prior to the earlier to occur of (i) the date as of which the
holders of record of shares of Common Stock to be entitled to receive any such
distribution, rights, warrants or other securities are to be determined, or (ii)
the date on which any such reclassification, change of its outstanding shares of
Common Stock, consolidation, merger, sale, lease, conveyance of property,
liquidation, dissolution, or winding up is expected to become effective, and the
date as of which it is expected that holders of record of shares of its Common
Stock, as the case may be, shall be entitled to exchange their shares or
warrants for securities or other property, if any, deliverable upon such
reclassification, change of outstanding shares, consolidation, merger, sale,
lease, conveyance of property, liquidation, dissolution, or winding
up.

     

    
      
         

      

      
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    Section
7. Transfer to Comply with the
Securities Act of 1933.

     

    7.1 Neither
this Warrant nor the Warrant Shares may be sold or otherwise disposed of except
to a person who, in the opinion of counsel in form and substance satisfactory to
the Corporation, is a person to whom this Warrant or the Warrant Shares may be
legally transferred within the terms of this Warrant and without registration
and without the delivery of a current prospectus with respect thereto under the
Securities Act of 1933, as amended, and then only against receipt of an
agreement of such person to comply with the provisions of this Section 7 with
respect to any resale or other disposition of such Warrant or Warrant Shares
unless, in the opinion of counsel, such agreement is not required;
or

     

    7.2 Each
certificate for Warrant Shares, if any, or for any other security issued or
issuable upon exercise of this Warrant shall contain a legend on the face
thereof, in the form and substance satisfactory to counsel of the Corporation,
setting forth the restrictions on transfer thereof contained in Section 7.1
hereof.

     

    Section
8. Governing
Law.  This Warrant shall be construed in accordance with the
laws of Delaware applicable to contracts executed and to be performed wholly
within such state.

     

    Section
9. Notice.  Notices
and other communications to be given to the Holder of the Warrants evidenced by
this certificate shall be deemed to have been sufficiently given, if delivered
or mailed, addressed in the name and at the address of such owner appearing on
the records of the Corporation, and if mailed, sent registered or certified
mail, postage prepaid.  Notices or other communications to the
Corporation shall be deemed to have been sufficiently given if delivered by hand
or mailed postage prepaid, to the Corporation at  195 Route 9 South,
Suite 109, Manalapan, New Jersey 07726.

     

    IN
WITNESS WHEREOF, the Corporation has executed this Warrant as of the ___ day of
______,2008.

     

    ACCOUNTABILITIES, INC.

     

                                                                    By:

     Name:

     Title:

     

    

     

    

     

    
      
         

      

      
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    PURCHASE
FORM

     

    
      	
               
      

            	
              (To
      be executed by the holder of the Warrant if he (it) desires to exercise
      the Warrant in whole or in part)

            

    

     

    TO:
ACCOUNTABILITIES, INC.

     

    The
undersigned, whose Social Security or other identifying number is
___________________, hereby irrevocably elects the right of purchase represented
by the within Warrant for, and to purchase thereunder, __________________ Shares
provided for therein and tenders payment therewith to the order of
ACCOUNTABILITIES, INC., in the amount of $______________.  The
undersigned requests that certificates, if any, for such Shares be issued as
follows:

     

    Name:                                                                                                                    

     

    Address:                                                                                                                     

     

    Deliver
to:                                                                                                                     

     

    Address:                                                                                                                     

     

    and, if
said number of Shares shall not be all the Shares purchasable hereunder, that a
new Warrant for the balance remaining of the Shares purchasable under the within
Warrant be registered in the name of, and delivered to, the undersigned at the
address stated below:

     

    Address:                                                                                                                     

     

    
      	
              Dated:

            	
              Signature____________________________

            

    

     

    
      	
               
      

            	
              (Signature
      must conform in all respects to the name of the Holder of the Warrant,
      without alteration, enlargement or any change whatsoever, and the
      signature must be guaranteed in the usual
  manner).

            

    

     

    Signature
Guaranteed:

    6EX-4.2

 

Exhibit
4.2

EXECUTION VERSION

GLOBAL SECURITY

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

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF DTC OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE
OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR SUCH NOMINEE, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

6.300% Senior Note due March 15, 2018

CUSIP: 416515 AU8

			
	 	 	 
	No. R-1
	 	$500,000,000

     THE HARTFORD FINANCIAL SERVICES GROUP, INC., a corporation organized and existing under the
laws of Delaware (hereinafter 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 FIVE HUNDRED MILLION U.S. Dollars on March 15,
2018, and to pay interest thereon from March 4, 2008 or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, semi-annually in arrears on March 15 and
September 15 in each year, commencing September 15, 2008, at the rate of 6.300% per annum, on the
basis of a 360-day year consisting of twelve 30-day months, until the principal hereof is paid or
duly provided for or made available for payment, and (to the extent that the payment of such
interest shall be legally enforceable) at the rate of 6.300% per annum on any overdue principal and
premium and on any overdue installment of interest.

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     The interest 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 (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. 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.

     Payment of the principal of (and premium, if any) and any interest on this Security will be
made at the office or agency of the Company maintained for that purpose in The City of New York, 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.

     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.

     Any additional Securities issued under the same CUSIP as this Security shall be fungible with
this Security for U.S. federal income tax purposes.

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     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed as of the date
below.

Dated: March 4, 2008

	 	 	 	 	 	 	 
	 	 	THE HARTFORD FINANCIAL SERVICES GROUP, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John N. Giamalis	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	John N. Giamalis	 	 
	 

	 	Title:
	 	Senior Vice President and Treasurer	 	 

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Certificate of Authentication

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

Dated: March 4, 2008

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

as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard C. Tarnas	 	 
	 

	 	 	 	 	 	 
	 	 	Authorized Signatory	 	 

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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
April 11, 2007 as supplemented and amended from time to time (herein called the “Indenture”),
between the Company and The Bank of New York Trust Company N.A., as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a 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 $500,000,000.

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

     The Company shall have the right, at its option, to redeem this Security, in whole or in part,
at any time and from time to time, at a redemption price equal to the greater of:

     1. 100% of the principal amount of the Securities of this series to be redeemed; or

     2. the sum of the present values of the remaining scheduled payments of principal and interest
on the Securities of this series to be redeemed (exclusive of interest accrued 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 the then current Treasury Rate plus 40 basis points.

In each case, the Company shall pay accrued and unpaid interest on the principal amount being
redeemed to the Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term (“Remaining
Life”) of the Securities of this series 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 such Securities.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the
Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains
fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

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     “Independent Investment Banker” means one of the Reference Treasury Dealers that the Company
appoints to act as the Independent Investment Banker from time to time.

     “Reference Treasury Dealer” means (1) each of Goldman, Sachs & Co., J.P. Morgan Securities
Inc. and one other primary U.S. Government securities dealer in New York City (“Primary Treasury
Dealer”) selected by Wachovia Capital Markets, LLC, and their respective successors, unless any of
them ceases to be a Primary Treasury Dealer, in which case the Company shall substitute another
Primary Treasury Dealer and (2) 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, the average, as determined by the Independent Investment Banker, 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 Independent Investment Banker by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such
Redemption Date.

     “Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to:
(1) the yield, under the heading which represents the average for the immediately preceding week,
appearing in the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of the Federal Reserve
System and which establishes yields on actively traded United States Treasury securities adjusted
to constant maturity under the caption “Treasury Constant Maturities,” for the maturity
corresponding to the Comparable Treasury Issue; provided that, if no maturity is within three
months before or after the Remaining Life of the Securities of this series to be redeemed, yields
for the two published maturities most closely corresponding to the Comparable Treasury Issue shall
be determined and the Treasury Rate shall be interpolated or extrapolated from those yields on a
straight line basis, rounding to the nearest month; or (2) if such release (or any successor
release) is not published during the week preceding the calculation date or does not contain such
yields, the rate per year equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, calculated 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. The Treasury Rate shall be calculated on the third Business Day preceding the Redemption
Date.

     Notice of redemption shall be mailed at least 30 but not more than 60 days before the
Redemption Date to each Holder of Securities of this series to be redeemed at its registered
address. The notice of redemption for such Securities shall state, among other things, the amount
of Securities of this series to be redeemed, the Redemption Date, the manner in which the
redemption price shall be calculated and the place or places that payment shall be made upon
presentation and surrender of such Securities to be redeemed. Unless the Company defaults in the
payment of the redemption price together with accrued interest, interest will cease to accrue on
any Securities of this series that

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have been called for redemption on the Redemption Date. The Company shall notify the Trustee of the
redemption price promptly after the calculation thereof and the Trustee shall have no
responsibility for such calculation.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

     Installments of accrued and unpaid interest whose Stated Maturity is on or prior to the
Redemption Date will be payable to the Holders of the Securities of this series, or one or more
Predecessor Securities, registered as such at the close of business on the relevant Regular Record
Dates according to their terms.

     The Indenture contains provisions for satisfaction, discharge and defeasance of the entire
indebtedness on this security, upon compliance by the Company with certain conditions set forth
therein.

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

     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.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable,

3

 

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 $2,000 and integral multiples of $1,000 in excess 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.

     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.

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

4

 

ABBREVIATIONS

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

	 	 	 	 	 
	TEN COM 

	 	–
	 	as tenants in common
	 
	 	 	 	 
	TEN ENT

	 	–
	 	as tenants by the entireties
	 
	 	 	 	 
	JT TEN

	 	–
	 	as joint tenants with right of survivorship and not as
tenants in common

	 	 	 	 	 	 	 
	UNIF GIFT MIN ACT –

	 	 	 	Custodian
	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Minor)
	 	 	 	(Cust)

	 	 	 
	Under Uniform Gifts to Minors Act
	 	 
	 

	 	 
	 

	 	(State)

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

 

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

	 	 	 
	 
	 	 
	 	 	 
	[PLEASE INSERT SOCIAL SECURITY OR OTHER

	 
	IDENTIFYING NUMBER OF ASSIGNEE]
	 	 

 

 

 

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

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

5

 

Dated:                    

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Security in every particular without alteration or enlargement or any change whatsoever.

6

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