Document:

Exhibit

Exhibit 10.01

EXECUTIVE TRANSITION AGREEMENT
This Executive Transition Agreement (“Agreement”) is made by and between Tom Reilly (“Executive”) and Cloudera, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”) and is effective as of the date it is signed by the Parties (the “Effective Date”).
RECITALS
WHEREAS, Executive is currently the Chief Executive Officer (“CEO”) and an employee of the Company;
WHEREAS, Executive intends to resign and retire his employment with the Company on the final day of the Transition Period (as defined in Section 2 below), or on such earlier date that is determined by the Company (the “Termination Date”); and
WHEREAS, Executive and Company both wish to ensure an orderly transition of Executive’s duties and responsibilities throughout the Transition Period;
NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows:
COVENANTS
1.    Executive’s Termination.  Executive will resign his employment with the Company on the Termination Date, and the Company shall process his termination accordingly.  Executive agrees to execute any documentation reasonably necessary to confirm Executive’s termination of employment consistent with the terms hereof.  Executive agrees to resign all positions he may hold with the Company and any of its subsidiaries or affiliated entities (including as a member of the Board of Directors of the Company (the “Board”)) effective no later than the Termination Date.
2.    Transition Period and Services. Beginning on the Effective Date and through and including July 31, 2019 (the “Transition Period”), Executive agrees to provide the following transition services (the “Transition Services”):  (1) continue to serve as the Company’s Chief Executive Officer until such time as the Board determines that Executive shall no longer serve in such capacity and (2) provide reasonable transition services to the Company as the Company may request, including, but not limited to, assistance in the hiring of, and transitioning of Executive’s responsibilities to, a new or interim chief executive officer of the Company.  Executive’s employment during the period Executive provides the Transition Services shall continue to be “at‐will,” meaning the Company and Executive are both free to terminate Executive’s employment with or without cause or notice.  During the period Executive provides the Transition Services, Executive shall continue to receive his salary at the same rate and frequency that he was receiving his salary immediately prior to the Transition Period, and shall continue to be eligible to participate in then‐available Company benefit programs at the same level as he would have been eligible to participate in such programs as of immediately prior to the Transition Period, subject to the terms and conditions, including eligibility requirements, of such programs.  If, at any time during the period Executive provides the Transition Services, the Company appoints a new chief executive officer, Executive will take all steps necessary at the Company’s request to relinquish the title of chief executive officer, resign from the Board and continue providing such Transition Services. It is agreed that Executive’s failure to be re‐nominated or elected to the Board shall not 

constitute a breach of this Agreement or termination of Executive’s employment without Cause for purposes of this Agreement.
3.    Accrued Compensation.  Notwithstanding anything to the contrary in this Agreement, in connection with any termination of employment, the Company shall pay Executive’s earned but unpaid base salary and other vested but unpaid cash entitlements, including unused earned vacation pay (if applicable) and unreimbursed documented business expenses incurred by Executive through and including the Termination Date (collectively “Accrued Compensation and Expenses”).  In addition, Executive shall be entitled to any other vested benefits earned by Executive for the period through and including the Termination Date under any other employee benefit plans and arrangements maintained by the Company, in accordance with the terms of such plans and arrangements (collectively “Accrued Benefits”).  Any Accrued Compensation and Expenses to which Executive is entitled shall be paid to Executive in cash as soon as administratively practicable after the Termination Date, and, in any event, no later than two and one‐half (2‐1/2) months after the end of the taxable year of Executive in which the termination occurs or at such earlier time as may be required by applicable law.  Any Accrued Benefits to which Executive is entitled shall be paid to Executive as provided in the relevant plans and arrangements.
4.    Severance Payments.  In consideration of the Transition Services and the Release, and in connection with and in exchange for the Parties’ promises herein, upon the termination of Executive’s employment (other than for Cause) on the last day of the Transition Period, or if prior to the end of the Transition Period, Executive’s employment with the Company is terminated by the Company other than for Cause, or Executive resigns his employment at the written request of the Company if such request is not for Cause (each, a “Qualifying Termination” and the date of termination of employment upon such Qualifying Termination, the “Qualifying Termination Date”), and subject to Executive’s execution and non‐revocation of a Release (as defined below) by the Release Deadline (as defined below), Executive will be entitled to the following: 
(a)    Base Salary and Bonus.  
(i)    An amount equal to the sum of (i) $500,000.00, which amount is equal to Executive’s base salary at the annual rate currently in effect, plus (ii) $500,000.00, which amount is equal to Executive’s annual target bonus for the Company’s current fiscal year (the “Target Bonus”).    
(ii)    An amount equal to the product of (i) the Target Bonus and (ii) a fraction, the numerator of which is the number of days for which the Executive was employed by the Company during the current bonus period (which is the Company’s current fiscal year ending January 31, 2020) and the denominator of which is the total number of calendar days in such current bonus period.
(b)    Health Care Benefit.  If the Executive elects to continue his health insurance coverage under COBRA following the termination of his employment, then, subject to Section 8 below, the Company shall pay the Executive’s monthly premium under COBRA on behalf of the Executive for the Executive’s continued coverage under the Company’s health, dental and vision plans, including coverage for the Executive’s eligible dependents, until the earliest of (i) twenty-four (24) months following the Termination Date; (ii) the date when the Executive receives similar coverage with a new employer or (iii) the expiration of the Executive’s continuation coverage under COBRA.  For purposes of this Agreement, “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.  Notwithstanding the foregoing, if the Company, in its sole discretion, determines that it cannot provide the foregoing subsidy of COBRA coverage without potentially violating or causing the Company to incur additional expense as a result of noncompliance with applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company instead shall provide to Executive a taxable monthly payment in an amount equal to the 

monthly COBRA premium that Executive would be required to pay to continue the group health coverage in effect on the Termination Date (which amount shall be based on the premium for the first month of COBRA coverage) which payments shall be made regardless of whether Executive elects COBRA continuation coverage and shall commence on the later of (A) the first day of the month following the month in which Executive’s Termination Date occurs and (B) the effective date of the Company’s determination of violation of applicable law, and shall end on the earlier of (x) the effective date on which Executive becomes covered by a health, dental or vision insurance plan of a subsequent employer, and (y) the last day of the twenty-four (24) month period following the Termination Date, provided that, any taxable payments under this section will not be paid before the first business day occurring after the thirtieth (30th) day following the Termination Date and, once they commence, will include any unpaid amounts accrued from the Termination Date (to the extent not otherwise satisfied with continuation coverage).  Executive shall have no right to an additional gross‐up payment to account for the fact that such COBRA premium amounts are paid on an after‐tax basis.
(c)    Equity.  Executive will continue to vest in his Equity Awards (as defined below) in accordance with the terms thereof through the end of the Transition Period, provided Executive remains employed and continues to provide the Transition Services on the applicable vesting dates applicable thereto.  Upon Executive’s Qualifying Termination (i) each of Executive’s then‐outstanding unvested Equity Awards, shall accelerate and become vested and exercisable with respect to 100% of the then‐unvested shares subject to the applicable Equity Awards and (ii) Executive will be permitted to exercise any vested shares subject to Equity Awards that are stock options to purchase shares of Company common stock (after giving effect to the foregoing acceleration of vesting) until 12 months following the Termination Date, but in no event later than the date on which the Option would expire had Executive remained employed.  Executive shall be permitted to pay both the exercise price and any related tax withholding amounts due upon exercise of a stock option by having the Company withhold the number of shares of Company common stock that would otherwise be issued upon exercise that have a fair market value on the date of exercise equal to the exercise price and the related tax withholding amounts due provided that (i) the fair market value on the date of exercise is $10.00 or less or (ii) the exercise occurs no later than the seven calendar days immediately following the Q2 FY20 earnings call.  
For purposes of this Agreement, “Equity Awards” means all options to purchase shares of Company common stock as well as any and all other stock‐based awards granted to the Executive, including but not limited to stock bonus awards, restricted stock and restricted stock units, that are outstanding as of the Effective Date, as are listed on Exhibit A hereto.  Executive agrees that he is not entitled to receive any Equity Awards in addition to those that are outstanding as of the Effective Date.  
Executive will receive the cash severance payments pursuant this Section 4 in a lump‐sum that will be made (or with respect to the COBRA payment, will commence) on the tenth (10th) day following the effectiveness of the Release.
For purposes of this Agreement, “Cause” shall have the meaning set forth in the Severance and Change in Control Agreement (as defined below).
If, prior to the end of the Transition Period, Executive resigns his employment absent a written request of the Company to do so, or is terminated by the Company for Cause, he will not be entitled to any of the benefits in this Section 4, any further salary, bonus or other cash compensation, other than the Accrued Compensation and Expenses and the Accrued Benefits.
5.    All Payments.  Executive understands and agrees that except as expressly provided for this Agreement, Executive shall not be entitled to any other consideration, separation or change in control benefits, 

including, but not limited to, any severance payments, equity acceleration benefits or any other severance benefits provided for in the Offer Letter dated May 22, 2013 between Executive and the Company (the “Offer Letter”), the Severance and Change in Control Agreement by and between Executive and the Company dated December 13, 2016 (the “Severance and Change in Control Agreement”) or the agreements evidencing the Equity Awards.
6.    Non-Disparagement.  In addition to any other existing obligations regarding non‐disparagement, (i) Executive shall not make, directly or indirectly, any negative or disparaging statements or comments, either as fact or as opinion about the Company or its products, services, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral statement and (ii) the Company will use its best efforts to ensure that the Company’s current executive officers and Board members shall not make, directly or indirectly, any negative or disparaging statements or comments, either as fact or as opinion about Executive, with any written or oral statement.  Nothing in this section shall prohibit Executive or the Company or its executive officers or Board from providing truthful information in response to a subpoena or other legal process.
7.    Company Proprietary and Confidential Information & Other Policies.  Executive hereby acknowledges that he will continue to be bound by the Company Employment, Confidential Information and Intellectual Property Assignment Agreement dated June 17, 2013 (the “CIIA”).  Executive will continue to be bound by and comply fully with the Company’s, insider trading policy, code of conduct, and any other policies and programs adopted by the Company regulating the behavior of its employees.  Executive confirms that upon his termination, Executive will deliver to the Company all documents and data of any nature containing or pertaining to such information and that Executive has not taken or retained, whether in electronic or hard copy form, any such documents or data or any reproduction thereof.  
8.    Conditions to Receipt of Severance & Other Benefits.  The receipt of applicable severance payments and benefits or acceleration benefits pursuant to Section 4 will be subject to Executive signing the release of claims attached hereto as Exhibit B (the “Release”) and satisfying all conditions to make the Release effective by no later than thirty (30) days after the Executive’s Qualifying Termination Date (the “Release Deadline”), provided, however, that the Release does not release any of Executive’s rights to indemnification or fiduciary insurance pursuant to the Company’s Certificate of Incorporation, Bylaws or other agreements with the Company, including the Indemnity Agreement (as defined below).
9.    Indemnification. For the avoidance of doubt, Executive will continue to be covered by the Indemnity Agreement, dated June 18, 2013 (the “Indemnity Agreement”), and remain named as an insured on the director and officer liability insurance policy currently maintained by the Company, or as may be maintained by the Company from time to time, with respect to actions taken while an officer or director of the Company pursuant to the terms of such agreement and policy. 
10.    Protected Rights.  Executive understands that nothing in the Release, or otherwise in this Agreement, limits his ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local government agency or commission (“Government Agencies”).  Executive further understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.  This Agreement does not limit Executive’s right to receive an award for information provided to any Government Agencies.  

11.    Defend Trade Secrets Act.  Executive acknowledges and understands that, pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), he will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company or its affiliates that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to his attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  Executive further acknowledges and understands that if he files a lawsuit for retaliation for reporting a suspected violation of law, he may disclose the trade secret to his attorney and use the trade secret information in the court proceeding if he (x) files any document containing the trade secret under seal, and (y) does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement, or any other agreement with or policy of the Company or its affiliates (including Exhibit B hereto), is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. 
12.    Arbitration.  Executive and the Company agree to submit to mandatory binding arbitration, in San Mateo County, California, before a single neutral arbitrator, any and all claims arising out of or related to this Agreement and Executive’s employment with the Company and the termination thereof, except that each party may, at its or his option, seek injunctive relief in court related to the improper use, disclosure or misappropriation of a party’s proprietary, confidential or trade secret information.  EXECUTIVE AND THE COMPANY HEREBY WAIVE ANY RIGHTS TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS.  This agreement to arbitrate does not restrict Executive’s right to file administrative claims Executive may bring before any government agency where, as a matter of law, the parties may not restrict Executive’s ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor).  However, Executive and the Company agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.  The arbitration shall be conducted through the American Arbitration Association (the “AAA”), provided that, the arbitrator shall have no authority to make any ruling or judgment that would confer any rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company upon Executive or any third party.  The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based.  The arbitration will be conducted in accordance with the AAA employment arbitration rules then in effect.  The AAA rules may be found and reviewed at http://www.adr.org.  If Executive is unable to access these rules, Executive will be provided with a hardcopy.  The parties acknowledge that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement.
13.    Attorneys’ Fees.  If any action is brought to enforce the terms of this Agreement, the prevailing Party will be entitled to recover its reasonable attorneys’ fees, costs and expenses from the other party, in addition to any other relief to which the prevailing Party may be entitled.
14.    No Admission of Liability.  This Agreement is not and shall not be construed or contended by Executive to be an admission or evidence of any wrongdoing or liability on the part of the Company, its representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates, divisions, successors or assigns.  This Agreement shall be afforded the maximum protection allowable under Federal Rule of Evidence 408 and/or any other state or federal provisions of similar effect.
15.    Complete and Voluntary Agreement.  This Agreement, together with Exhibit B, constitute the entire agreement between Executive and the Company with respect to the subject matter hereof and, supersedes the Offer Letter, the Severance and Change in Control Agreement and other all prior negotiations 

and agreements, whether written or oral, relating to such subject matter, with the exception of the CIIA, the equity plans and equity agreements under which the Equity Awards are granted, in each case as modified herein.  Executive acknowledges that neither the Company nor its agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this Agreement for the purpose of inducing Executive to execute the Agreement, and Executive acknowledges that Executive has executed this Agreement in reliance only upon such promises, representations and warranties as are contained herein, and is executing this Agreement voluntarily, free of any duress or coercion.
16.    Severability.  The provisions of this Agreement are severable, and if any part of it is found to be invalid or unenforceable, the other parts shall remain fully valid and enforceable.  Specifically, should a court, arbitrator, or government agency conclude that:  Section 6 (Non-Disparagement) is invalid or unenforceable in whole or in part, it is the intention of the Parties that the remaining subsections (or portions thereof) of this Agreement, including Section 4 (Severance Payments), shall remain fully valid and enforceable.
17.    Modification; Counterparts; Facsimile/PDF Signatures.  It is expressly agreed that this Agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement that specifically refers to this Agreement, executed by authorized representatives of each of the parties to this Agreement.  This Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument.  Execution of a facsimile or PDF copy shall have the same force and effect as execution of an original, and a copy of a signature will be equally admissible in any legal proceeding as if an original.
18.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California.
19.    Taxes.  All payments made under this Agreement will be subject to reduction to reflect taxes or other charges required to be withheld by law.  
To the extent (i) any payments to which Executive becomes entitled under this Agreement, or any agreement or plan referenced herein, in connection with Executive’s termination of employment with the Company constitute deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) Executive is deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)‐month period measured from the date of Executive’s “separation from service” (as such term is at the time defined in regulations under Section 409A of the Code) with the Company; or (ii) the date of Executive’s death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Executive, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral.  Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to Executive or Executive’s beneficiary in one lump sum (without interest). Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in‐kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in‐kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which Executive incurred such expenses, and in 

no event shall any right to reimbursement or the provision of any in‐kind benefit be subject to liquidation or exchange for another benefit.  To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent.  To the extent any payment under this Agreement may be classified as a “short‐term deferral” within the meaning of Section 409A, such payment shall be deemed a short‐term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this Agreement (or referenced in this Agreement), and each installment thereof, are intended to constitute separate payments for purposes of Section 1.409A‐2(b)(2) of the regulations under Section 409A.  Any termination of Executive’s employment is intended to constitute a separation from service and will be determined consistent with the rules relating to a “separation from service” as such term is defined in Treasury Regulation Section 1.409A‐1.  
[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below:

	
					
	EXECUTIVE
	 
	 
	CLOUDERA, INC.
	 

	 
	 
	 
	 
	 

	/s/ Tom Reilly
	 
	 
	/s/ Martin Cole
	 

	Tom Reilly
	 
	 
	Martin Cole
	 

	 
	 
	 
	Chairman of the Board of Directors

	 
	 
	 
	 
	 

	June 5, 2019
	 
	 
	June 5, 2019
	 

[SIGNATURE PAGE TO EXECUTIVE TRANSITION AGREEMENT]

Exhibit A
List of Outstanding Equity Awards
	
				
	Date of Grant
	Award Type
	Total Outstanding as of 
June 5, 2019
	Exercise Price

	6/28/2013
	Non-Qualified Stock Option
	7,304,755
	$3.21

	3/26/2015
	Incentive Stock Option
	18,471
	$16.24

	3/26/2015
	Non-Qualified Stock Option
	70,529
	$16.24

	3/26/2015
	Restricted Stock Unit
	25,875
	N/A

	3/17/2016
	Restricted Stock Unit
	66,667
	N/A

	3/8/2017
	Restricted Stock Unit
	150,000
	N/A

	3/23/2018
	Restricted Stock Unit
	247,500
	N/A

	2/12/2019
	Restricted Stock Unit
	426,913
	N/A

Exhibit B
Release

In consideration of the termination benefits (the “Benefits”) provided and to be provided to me by Cloudera, Inc., or any successor thereof (the “Company”) pursuant to my Executive Transition Agreement with the Company dated on or about June 5, 2019 (the “Agreement”) and in connection with the termination of my employment, I agree to the following general release (the “Release”).  
1.    On behalf of myself, my heirs, executors, administrators, successors, and assigns, I hereby fully and forever generally release and discharge Company, its current, former and future parents, subsidiaries, affiliated companies, related entities, employee benefit plans, and, in such capacities, their fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and assigns (collectively, the “Company”) from any and all claims, causes of action, and liabilities up through the date of my execution of the Release.  The claims subject to this release include, but are not limited to, those relating to my employment with Company and/or any predecessor to Company and the termination of such employment.  All such claims (including related attorneys’ fees and costs) are barred without regard to whether those claims are based on any alleged breach of a duty arising in statute, contract, or tort.  This expressly includes waiver and release of any rights and claims arising under any and all laws, rules, regulations, and ordinances, including, but not limited to: Title VII of the Civil Rights Act of 1964; the Older Workers Benefit Protection Act; the Americans With Disabilities Act; the Age Discrimination in Employment Act; the Fair Labor Standards Act; the National Labor Relations Act; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the Workers Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act (if applicable); the provisions of the California Labor Code (if applicable); the Equal Pay Act of 1963; and any similar law of any other state or governmental entity.  The parties agree to apply California law in interpreting the Release.  Accordingly, I further waive any rights under Section 1542 of the Civil Code of the State of California or any similar state statute.  Section 1542 states: “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that if known to him or her would have materially affected his or her settlement with the debtor or released party.”  This Release does not extend to, and has no effect upon, any benefits that have accrued or equity that has vested, and to which I have become vested or otherwise entitled to, under the Agreement, any employee benefit plan, program or policy sponsored or maintained by the Company, or to my right to indemnification by the Company, including under the Indemnity Agreement, dated June 18, 2013 (the “Indemnity Agreement”), and continued coverage by the Company’s director’s and officer’s insurance.
2.    In understanding the terms of the Release and my rights, I have been advised to consult with an attorney of my choice prior to executing the Release.  I understand that nothing in the Release shall prohibit me from exercising legal rights that are, as a matter of law, not subject to waiver such as: (a) my rights under applicable workers’ compensation laws; (b) my right, if any, to seek unemployment benefits; (c) my right to indemnity under California Labor Code Section 2802 or other applicable state‐law right to indemnity; and (d) my right to file a charge or complaint with a government agency such as but not limited to the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department of Labor, the California Department of Fair Employment and Housing, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local government agency or commission (“Government Agencies”).  I further understand that this Release and my Agreement do not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.  This Release and my Agreement does not limit my right to 

receive an award for information provided to any Government Agencies.  Moreover, I will continue to be indemnified for my actions taken while employed by the Company to the same extent as other former directors and officers of the Company under the Company’s Certificate of Incorporation and Bylaws and the Indemnity Agreement, and I will continue to be covered by the Company’s directors and officers liability insurance policy as in effect from time to time to the same extent as other former directors and officers of the Company, each subject to the requirements of the laws of the State of Delaware.  To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be resolved through binding arbitration as set forth below, and the arbitration provision set forth in my Agreement.  
3.    I understand and agree that Company will not provide me with the Benefits unless I execute the Release.  I also understand that I have received or will receive, regardless of the execution of the Release, all wages owed to me together with any accrued but unused vacation pay, less applicable withholdings and deductions, earned through my termination date.
4.    As part of my existing and continuing obligations to Company, I have returned to Company all Company documents (and all copies thereof) and other Company property that I have had in my possession at any time, including but not limited to Company files, notes, drawings, records, business plans and forecasts, financial information, specification, computer‐recorded information, tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of Company (and all reproductions thereof).  I understand that, even if I did not sign the Release, (x) I am still bound by any and all confidential/proprietary/trade secret information, non‐disclosure and inventions assignment agreement(s) signed by me in connection with my employment with Company, or with a predecessor or successor of Company pursuant to the terms of such agreement(s) and (y) I am still bound by the covenants of Section 6 of the Agreement.
5.    I represent and warrant that I am the sole owner of all claims relating to my employment with Company and/or with any predecessor of Company, and that I have not assigned or transferred any claims relating to my employment to any other person or entity.
6.    I agree to keep the Benefits and the provisions of the Release confidential and not to reveal its contents to anyone except my lawyer, my spouse or other immediate family member, and/or my financial consultant, or as required by legal process or applicable law unless and until they become publicly available.
7.    I understand and agree that the Release shall not be construed at any time as an admission of liability or wrongdoing by either Company or myself.
8.    I agree to submit to mandatory binding arbitration, in San Mateo County, California, before a single neutral arbitrator, any and all claims arising out of or related to this Release and my employment with the Company and the termination thereof, except that I may, at my option, seek injunctive relief in court related to the improper use, disclosure or misappropriation of a party’s proprietary, confidential or trade secret information.  I HEREBY WAIVE ANY RIGHTS TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS.  This agreement to arbitrate does not restrict my right to file administrative claims I may bring before any government agency where, as a matter of law, the parties may not restrict my ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor).  However, I agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.  The arbitration shall be conducted through the American Arbitration Association (the “AAA”), provided that, the arbitrator shall have no authority to make any ruling or judgment that would confer any rights with respect to the trade 

secrets, confidential and proprietary information or other intellectual property of the Company upon me or any third party.  The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based.  The arbitration will be conducted in accordance with the AAA employment arbitration rules then in effect.  The AAA rules may be found and reviewed at http://www.adr.org.  If I am unable to access these rules, I will be provided with a hardcopy.  I acknowledge that I am hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Release.
9.    I agree that I have had at least twenty‐one (21) calendar days in which to consider whether to execute the Release, no one hurried me into executing the Release during that period, and no one coerced me into executing the Release.  I understand that the offer of the Benefits and the Release shall expire on the twenty‐second (22nd) calendar day after my employment termination date if I have not accepted it by that time.  I further understand that Company’s obligations under the Release shall not become effective or enforceable until the eighth (8th) calendar day after the date I sign the Release provided that I have timely delivered it to Company (the “Release Effective Date”) and that in the seven (7) day period following the date I deliver a signed copy of the Release to Company I understand that I may revoke my acceptance of the Release.  I understand that the Benefits will become available to me at such time after the Release Effective Date, as specified in the Agreement.
10.    In executing the Release, I acknowledge that I have not relied upon any statement made by Company, or any of its representatives or employees, with regard to the Release unless the representation is specifically included herein.  Furthermore, the Release contains our entire understanding regarding eligibility for Benefits and supersedes any or all prior representation and agreement regarding the subject matter of the Release.  However, the Release does not modify, amend or supersede written Company agreements that are consistent with enforceable provisions of this Release such as my Agreement, proprietary information and invention assignment agreement, and any stock, stock option and/or stock purchase agreements between Company and me.  Once effective and enforceable, this agreement can only be changed by another written agreement signed by me and an authorized representative of Company.
11.    Should any provision of the Release be determined by an arbitrator, court of competent jurisdiction, or government agency to be wholly or partially invalid or unenforceable, the legality, validity and enforceability of the remaining parts, terms, or provisions are intended to remain in full force and effect. Specifically, should a court, arbitrator, or agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general release and the waiver of unknown claims above shall otherwise remain effective to release any and all other claims.  I acknowledge that I have obtained sufficient information to intelligently exercise my own judgment regarding the terms of the Release before executing the Release.
12.    The Benefits provided and to be provided to me by the Company consist of the benefits and payments in accordance with Section 4 of the Agreement.
[SIGNATURE PAGE TO GENERAL RELEASE AGREEMENT FOLLOWS]

EMPLOYEE’S ACCEPTANCE OF RELEASE
BEFORE SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING:  I HAVE READ THE RELEASE, I UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS.  I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.
EFFECTIVE UPON EXECUTION BY EMPLOYEE AND THE COMPANY.

	
	
	Date delivered to employee June 5, 2019.
Executed this 5th day of June, 2019.

	
	
	/s/ Thomas Reilly

	Your Signature

	 

	Thomas Reilly

	Your Name (Please Print)

	
	
	Agreed and Accepted:

	 

	Cloudera, Inc.

	 

	 

	/s/ Martin Cole

	By: Martin Cole

	Date: June 5, 2019

[SIGNATURE PAGE TO GENERAL RELEASE AGREEMENT]EX-4.1

 Exhibit 4.1 

ILLINOIS TOOL WORKS INC. 

Officers’ Certificate Pursuant to 

Sections 2.01 and 2.04 of the Indenture 

Michael M. Larsen, Senior Vice President & Chief Financial Officer, and David O. Livingston, Vice President Business
Development & Treasury, of Illinois Tool Works Inc., a Delaware corporation (the “Company”), each certify, pursuant to Sections 2.01 and 2.04 of the Indenture dated as of November 1, 1986, as supplemented by the First
Supplemental Indenture dated as of May 1, 1990 (the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as successor Trustee, that, pursuant to authority granted by the Board of Directors of
the Company to the undersigned and certain other officers of the Company in resolutions duly adopted on August 4, 2017, the terms and form of the Company’s (i) 0.250% Notes due 2024 (the “2024 Notes”), (ii) 0.625% Notes
due 2027 (the “2027 Notes”), and (iii) 1.000% Notes due 2031 (the “2031 Notes” and together with the 2024 Notes and the 2027 Notes, the “Notes”) shall be as set forth below. Capitalized terms not
defined herein shall have the meanings ascribed to them in the Indenture. 
 1. The 2024 Notes shall be designated as “0.250% Notes due
2024.” The 2027 Notes shall be designated as “0.625% Notes due 2027.” The 2031 Notes shall be designated as “1.000% Notes due 2031.” 

2. The aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture pursuant to this Officers’
Certificate (not including Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of other Notes pursuant to Sections 2.06, 2.07, 2.08, 3.02 or 10.04 of the Indenture) initially shall be not more than
€600,000,000 in the case of the 2024 Notes, €500,000,000 in the case of the 2027 Notes, and €500,000,000 in the case of the 2031 Notes. The Company shall have the right from time to time, without the consent of the existing Holders of
Notes of the applicable series, to create and issue additional notes of such series with the same terms and conditions as the 2024 Notes, the 2027 Notes, or the 2031 Notes, as applicable, except, in each case, for the issue date, issue price and the
first payment of interest thereon (“Additional Notes”), provided that, with respect to such applicable series of Notes, if the Additional Notes are not fungible with the previously outstanding Notes of such series for U.S. federal income
tax purposes, such Additional Notes will have a separate ISIN and Common Code. Additional Notes of any series will be consolidated with and will form a single series with the previously outstanding Notes of such series. 

3. Each Note shall bear interest from and including the most recent Interest Payment Date to which interest on such Note (or any predecessor
Note) has been paid or provided for, or if no interest has been paid, from and including June 5, 2019, at the rate of 0.250% per annum for the 2024 Notes, 0.625% per annum for the 2027 Notes, and 1.000% per annum for the 2031 

 
Notes, in each case until the principal thereof is paid or made available for payment. Interest shall be payable on each Interest Payment Date and at Stated Maturity. Interest payments shall be
in the amount of interest accrued to, but excluding, the relevant Interest Payment Date or Stated Maturity, as applicable. If any Interest Payment Date, Stated Maturity or any redemption date is not a Business Day, then the related payment for such
Interest Payment Date, Stated Maturity or redemption date shall be paid on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date, Stated Maturity or redemption date, as the case may be, and no
further interest shall accrue as a result of such delay. Interest shall be payable to the person in whose name a Note (or any predecessor Note) is registered at the close of business on the Record Date next preceding each Interest Payment Date;
provided, however, that interest payable at Stated Maturity shall be payable to the person to whom principal shall be payable. 
 The
Interest Payment Dates for the 2024 Notes and the 2027 Notes shall be December 5 of each year, beginning on December 5, 2019, and the Interest Payment Dates for the 2031 Notes shall be June 5 of each year, beginning on June 5,
2020. The Record Date for interest payable on the 2024 and 2027 Notes, in each case, shall be the close of business on December 1 next preceding the respective Interest Payment Date. The Record Date for interest payable on the 2031 Notes shall
be the close of business on June 1 next preceding the respective Interest Payment Date. Interest on the Notes shall be computed on the basis of (i) the actual number of days in the period for which interest is being calculated and
(ii) the actual number of days from (and including) the last date on which interest was paid on such Notes (or June 5, 2019, if no interest has been paid on such Notes), to (but excluding) the next scheduled Interest Payment Date. This
payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 
 4.
The Stated Maturity of the Notes shall be December 5, 2024 in the case of the 2024 Notes, December 5, 2027 for the 2027 Notes, and June 5, 2031 for the 2031 Notes. 

5. The 2024 Notes, 2027 Notes and 2031 Notes shall be substantially in the form attached to this Certificate as
Exhibit A, Exhibit B, and Exhibit C, respectively. 
 6. The 2024 Notes, the 2027 Notes, and the 2031
Notes may be redeemed (i) in whole or in part from time to time at the option of the Company before the applicable date of Stated Maturity and (ii) in whole, but not in part, at the option of the Company upon certain changes with respect
to taxation, in each case at the prices and on the terms set forth in the forms of Note attached to this Certificate as Exhibit A, Exhibit B, and Exhibit C, respectively. 

7. The Notes shall be sold by the Company to J.P. Morgan Securities plc and Citigroup Global Markets Limited, acting as representatives of the
several underwriters (collectively, the “Underwriters”), pursuant to the Underwriting Agreement, dated May 29, 2019 with the Company, at a price equal to 99.362% of the aggregate principal amount of the 2024 Notes, 98.943% of
the aggregate principal amount of the 2027 Notes, and 98.532% of the aggregate principal amount of the 2031 Notes. The initial public offering price of the Notes shall be 99.662% of the aggregate principal amount of the 2024 Notes, 99.343% of the
aggregate principal amount of the 2027 Notes, and 98.982% of the aggregate principal amount of the 2031 Notes, plus accrued interest, if any, from the date of original issue. 

  
 2 

 8. The Notes shall not be entitled to any sinking, purchase or analogous fund, and the
Company shall not be obligated to redeem or purchase the Notes at the option of any Holder thereof. 
 9. The Notes shall be issued in
minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof. 
 10. The Paying Agent for the Notes shall
initially be The Bank of New York Mellon, London Branch (the “Paying Agent”). The Registrar for the Notes shall initially be The Bank of New York Mellon Trust Company, N.A. (the “Registrar”). Notwithstanding the
foregoing, the Company may change the Paying Agent or Registrar, in accordance with the terms of the Indenture. 
 11. Payments of principal
of and any premium or interest on the Notes, when payable, shall be made in immediately available funds at the office of the Paying Agent or any other location the Company may designate from time to time. On the date of this Certificate, the office
of the Paying Agent is located at One Canada Square, London E14 5AL, United Kingdom, Attention: Corporate Trust. Payments of interest on each Note (other than interest payable at Stated Maturity) shall be made by wire transfer in immediately
available funds, provided that the Company may elect that the payment of interest may be made by wire transfer or check mailed to the registered address of the person entitled thereto as it appears on the security register. Notwithstanding the
foregoing, if the registered owner of the Notes is a common depositary of Euroclear and Clearstream (as defined below) or their nominee, payments of principal and interest shall be made in accordance with the requirements of Euroclear and
Clearstream. 
 12. On the date of this certificate, the office of the Registrar, where the Notes may be presented for registration of
transfer and exchange, and where notices and demands to or upon the Company in respect of such Notes or the Indenture may be served, is located at 2 North LaSalle Street, Suite 700, Chicago, Illinois 60602, United States of America. 

13. Section 12.02 of the Indenture shall be fully applicable to the Notes, except that, with respect to the Notes, the term “Holder,”
as used in Sections 12.02(a)(4) and 12.02(b)(5) of the Indenture, shall be understood to refer to “beneficial owners” of the Notes. 

14. Each series of the Notes shall be issued as fully registered Global Securities. Each such Global Security will be deposited with, or on
behalf of, a common depositary, and registered in the name of the nominee of the common depositary for the accounts of Clearstream Banking, société anonyme (“Clearstream”), and Euroclear Bank, S.A./N.V.
(“Euroclear”). So long as the Notes are represented by such Global Securities in accordance with the Indenture, beneficial owners of interests in such Global Securities may not exchange such interests for Definitive Securities (as defined
in Paragraph 18 of this Certificate) except as otherwise expressly provided in the Indenture. 

  
 3 

 15. The aggregate principal amount of each Global Security may from time to time be
increased or decreased by adjustments made on the records of the Note Custodian (as defined in Paragraph 18 of this Certificate), as provided herein and in the Indenture. 

16. All payments of interest and principal, including payments made upon any redemption of the Notes, will be payable in euros. If, on or after
the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then-member states of the European Monetary
Union that have adopted the euro as their currency for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made in U.S. dollars until the euro is
again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be converted into U.S. dollars on the basis of the most recently available market exchange rate for euros. Any payment in respect of the
Notes so made in U.S. dollars will not constitute an event of default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for effecting such currency conversions. 

17. The Company will pay additional amounts on the 2024 Notes, the 2027 Notes, and the 2031 Notes as provided for, and subject to the
exceptions and limitations set forth, in the forms of Note attached to this Certificate as Exhibit A, Exhibit B, and Exhibit C, respectively. 

18. Definitions. Certain capitalized terms used in this Certificate and not defined in the Indenture have the following meanings: 

“Business Day” means any day, other than a Saturday or Sunday, (1) which is not a day on which banking institutions in
The City of New York or London are authorized or required by law or executive order to close and (2) on which the Trans-European Automated Real-time Gross Settlement Express Transfer system (the “TARGET2 system”), or any successor
thereto, operates. 
 “Definitive Securities” means any Security issued in fully-registered certificated form pursuant to
Section 2.03 of the Indenture (other than a Global Security), which shall be substantially in the form of Exhibit A, Exhibit B or Exhibit C, as applicable, with appropriate legends as specified therein. 

“Federal Republic of Germany obligations” means direct noncallable obligations of the Federal Republic of Germany,
noncallable obligations the payment of the principal of and interest on which is fully guaranteed by the Federal Republic of Germany, and noncallable obligations on which the full faith and credit of the Federal Republic of Germany is pledged to the
payment of the principal thereof and interest thereon. 

  
 4 

 “Note Custodian” means the custodian with respect to any Global Note
appointed by the common depositary, or any successor Person thereto, and shall initially be the The Bank of New York Mellon, London Branch. 

“Securities Act” means the Securities Act of 1933, as amended. 

“United States” means the United States of America, the states of the United States, and the District of Columbia. 

“United States person” means any individual who is a citizen or resident of the United States for U.S. federal income tax
purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia, or any estate the income of which is subject to United States federal
income taxation regardless of its source, or a trust that (1) is subject to the primary supervision of a United States court and the control of one or more “United States persons” (within the meaning of section 7701(a)(30) of the
United States Internal Revenue Code of 1986, as amended (the “Code”)), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes. 

Each of the undersigned certifies that there is no Event of Default existing on the date hereof, and no event which with notice or lapse of
time or both could become an Event of Default has occurred and is continuing on the date hereof. 
 Each of the undersigned states that all
conditions precedent provided for in the Indenture relating to delivery of the executed Notes to the Trustee for authentication and delivery have been complied with. 

Each of the undersigned further states that he has read the provisions of the Indenture relating to the issuance of the Notes and the
definitions relating thereto; that the statements made in this Certificate are based upon an examination of the provisions of the Indenture and upon the relevant books and records of the Company; that he has, in his opinion, made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not the conditions included in such provisions have been complied with; and that, in his opinion, such conditions have been complied with. 

[Signature Page Follows] 

  
 5 

 IN WITNESS WHEREOF, the undersigned have executed this Certificate as of this 5th day of
June, 2019. 
  

			
		
	By:	 	 /s/ Michael M. Larsen

	Name:	 	Michael M. Larsen
	Title:	 	Senior Vice President &
		 	Chief Financial Officer
		
	By:	 	 /s/ Randall J. Scheuneman

	Name:	 	Randall J. Scheuneman
	Title:	 	Vice President &
		 	Chief Accounting Officer

 (Signature Page to Officers’ Certificate Pursuant to Sections 2.01 and 2.04 of the Indenture)

 EXHIBIT A 

FORM OF 2024 NOTE 

 THIS IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. 

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM
(“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE COMMON DEPOSITARY OF EUROCLEAR/CLEARSTREAM OR TO
A SUCCESSOR COMMON DEPOSITARY OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO IN THE ADDITIONAL TERMS
ATTACHED HERETO. 

 FORM OF 

ILLINOIS TOOL WORKS INC. 

0.250% NOTE DUE 2024 

Principal Amount €600,000,000 

as revised by the Schedule of Increases and 

Decreases in Global Security attached hereto 
  

			
	No. 001	  	June 5, 2019
		
		  	ISIN NO. XS1843435253
		
		  	Common Code: 184343525

 ILLINOIS TOOL WORKS INC., a corporation incorporated under the laws of the State of Delaware (hereinafter called the
“Company”), for value received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, as nominee of The Bank of New York Mellon, London Branch, a common depositary for Euroclear Bank S.A./N.V. and Clearstream
Banking, or its registered assigns, the principal sum of SIX HUNDRED MILLION EUROS (€600,000,000) subject to adjustment from time to time as reflected on the Schedule of Increases and Decreases in Global Security attached hereto on
December 5, 2024 (“Stated Maturity”) at the office or agency of the Company in London, United Kingdom or such other location or locations as may be provided for pursuant to the Indenture referred to herein, in such unified coin or
currency of the European Monetary Union as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum, in arrears, from and including the most recent Interest Payment Date (as
defined below) to which interest has been paid or duly provided for (or if no interest has been paid, from and including June 5, 2019), to, but excluding, December 5 of each year (the “Interest Payment Date”), beginning on
December 5, 2019, at the rate of 0.250% per annum, at said offices or agencies, in like coin or currency, to, but excluding, the date on which said principal sum is paid in full. The Record Date with respect to each Interest Payment Date shall
be the close of business on December 1 (whether or not a Business Day) next preceding the Interest Payment Date. Interest payable at Stated Maturity shall be payable to the person to whom principal shall be payable. If any Interest Payment
Date, Stated Maturity or any redemption date is not a Business Day, then the related payment for such Interest Payment Date, Stated Maturity or redemption date shall be paid on the next succeeding Business Day with the same force and effect as if
made on such Interest Payment Date, Stated Maturity or redemption date, as the case may be, and no further interest shall accrue as a result of such delay. The interest payable on any Interest Payment Date (other than interest payable at Stated
Maturity) will be made by wire transfer in immediately available funds, provided that the Company may elect that the payment of interest may be made by wire transfer or by check mailed to the registered address of the person entitled thereto as it
appears on the security register. Notwithstanding the foregoing, if the registered owner of the Securities is a common depositary of Euroclear/Clearstream or its nominee, payments of principal and interest shall be made in accordance with the
requirements of Euroclear/Clearstream. 
 If, on or after the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls
or other circumstances beyond the Company’s control or if the euro is no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public
institutions of or within the international banking community, then all payments will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be
converted into U.S. dollars on the basis of the most recently available market exchange rate for euros. Any such payment so made in U.S. dollars will not constitute an event of default under this Security or the Indenture. Neither the Trustee nor
the Paying Agent shall have any responsibility for effecting such currency conversions. 
 The further provisions of this Security are continued in an
attachment hereto and such continued provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Security shall
not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee under the Indenture referred to herein. 

[signature page follows] 

  
 A-1 

 IN WITNESS WHEREOF, ILLINOIS TOOL WORKS INC. has caused this Security to be manually signed by its duly
authorized officers and its corporate seal to be affixed hereto. 
  

							
		 		 	ILLINOIS TOOL WORKS INC.
				
		 		 	By:	 	  

		 		 	Name:	 	Michael M. Larsen
		 		 	Title:	 	Senior Vice President & Chief Financial Officer
				
	[SEAL]	 		 		 	
				
		 		 	By:	 	  

		 		 	Name:	 	Randall J. Scheuneman
		 		 	Title:	 	Vice President & Chief Accounting Officer
				
		 		 	By:	 	  

		 		 	Name:	 	Janet O. Love
		 		 	Title:	 	Chief Governance Counsel & Assistant Secretary

  
 A-2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein issued under the within-mentioned Indenture. 

 

							
		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
				
	Dated: June 5, 2019	 		 	By:	 	          

		 		 		 	Authorized Signature

 THE ADDITIONAL TERMS ATTACHED HERETO ARE INCORPORATED BY REFERENCE HEREIN AND DEEMED TO BE A PART HEREOF. 

  
 A-3 

 ADDITIONAL TERMS OF 

ILLINOIS TOOL WORKS INC. 

0.250% NOTE DUE 2024 
 This Security is one
of a duly authorized issue of the Securities of Illinois Tool Works Inc., a Delaware corporation (the “Company”), designated as its 0.250% Notes due 2024 (individually, a “Security” and collectively, the “Securities”),
issued under and pursuant to an Indenture dated as of November 1, 1986 and supplemented by a First Supplemental Indenture dated as of May 1, 1990 (the “Indenture”), duly executed and delivered by the Company and The Bank of New
York Mellon Trust Company, N.A., as successor trustee (the “Trustee”). The terms of the Securities include those stated in the Indenture and in the Officers’ Certificate dated June 5, 2019 (the “Officers’
Certificate”) establishing certain terms of the Securities pursuant to the Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “TIA”), and those set forth in this Security. This
Security is subject to all such terms, and Holders are referred to the Indenture, the Officers’ Certificate and the TIA for a statement of all such terms. All terms used in this Security that are defined in the Indenture or in the
Officers’ Certificate shall have the meanings assigned to them therein. The Securities are unsecured general obligations of the Company. 
 The
Securities are initially limited to the aggregate principal amount of Six Hundred Million Euros (€600,000,000), as specified in the Officers’ Certificate. The Company may from time to time, without the consent of the existing Holders of
Securities, create and issue additional Securities with the same terms and conditions as the Securities, except for the issue date, issue price and the first payment of interest thereon, provided that if such additional Securities are not fungible
with the Securities for U.S. federal income tax purposes, such additional Securities will have a separate ISIN and Common Code. Additional Securities so issued will be consolidated with and will form a single series with the Securities. 

Payment of Additional Amounts 
 All payments of principal
and interest on the Securities by the Company will be made free and clear of and without withholding or deduction for or on account of any present or future tax, assessment or other governmental charge imposed by the United States (or any political
subdivision or taxing authority thereof or therein having power to tax) (a “Relevant Taxing Jurisdiction”), unless the withholding of such taxes, assessments or other governmental charge is required by law or the official interpretation or
administration thereof. The Company will, subject to the exceptions and limitations set forth below, pay as additional interest on the Securities such additional amounts (the “additional amounts”) as are necessary in order that the net
payment by the Company of the principal of and interest on such Securities to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment or other governmental charge
imposed by any Relevant Taxing Jurisdiction, will not be less than the amount provided in such Securities to be then due and payable; provided, however, that the foregoing obligation to pay additional amounts shall not apply: 

 

	 	1.	 to any tax, assessment or other governmental charge that is imposed by reason of the Holder (or the beneficial
owner for whose benefit such Holder holds such Security), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a person holding a power over an estate or trust
administered by a fiduciary holder, being considered as: 

  

	 	a.	 being or having been engaged in a trade or business in a Relevant Taxing Jurisdiction or having or having had a
permanent establishment in a Relevant Taxing Jurisdiction; 

  

	 	b.	 having a current or former connection with the Relevant Taxing Jurisdiction (other than a connection arising
solely as a result of the ownership of such Securities, the receipt of any payment or the enforcement of any rights hereunder), including being or having been a citizen or resident of the Relevant Taxing Jurisdiction; 

 

	 	c.	 being or having been a personal holding company, a passive foreign investment company or a controlled foreign
corporation for United States income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax; 

  

	 	d.	 being or having been a “10-percent shareholder” of the
Company as defined in section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision; or 

  

	 	e.	 being or having been a bank receiving payments on an extension of credit made pursuant to a loan agreement
entered into in the ordinary course of its trade or business, as described in section 881(c)(3)(A) of the Code or any successor provisions; 

  
 A-4 

	 	2.	 to any Holder that is not the sole beneficial owner of such Securities, or a portion of such Securities, or
that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or
limited liability company would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment; 

 

	 	3.	 to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the
Holder, beneficial owner or any other person to (a) submit an applicable United States Internal Revenue Service (“IRS”) Form W-8 (with any required attachments) to establish the status as a non-United States person as required for purposes of the portfolio interest exemption or IRS Form W-9 to establish the status as a United States person, or comply with other
certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with a Relevant Taxing Jurisdiction of the Holder or beneficial owner of such Securities, if compliance is required by
statute, by regulation of the Relevant Taxing Jurisdiction or by an applicable income tax treaty to which the Relevant Taxing Jurisdiction is a party as a precondition to exemption from such tax, assessment or other governmental charge; or
(b) comply with any information gathering and reporting requirements or take any similar action (including entering into any agreement with the IRS), in each case, that is required to obtain the maximum available exemption from withholding by a
Relevant Taxing Jurisdiction that is available to payments received by or on behalf of the Holder or beneficial owner; 

  

	 	4.	 to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the
Company or a paying agent from the payment; 

  

	 	5.	 to any tax, assessment or other governmental charge that would not have been imposed or withheld but for a
change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later; 

 

	 	6.	 to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or
similar tax, assessment or other governmental charge; 

  

	 	7.	 to any tax, assessment or other governmental charge required to be withheld by any paying agent from any
payment of principal of or interest on any Security, if such payment can be made without such withholding by at least one other paying agent; 

  

	 	8.	 to any tax, assessment or other governmental charge that would not have been imposed or levied but for the
presentation by the Holder of any Security, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs
later; 

  

	 	9.	 to any tax, assessment or other governmental charge imposed under sections 1471 through 1474 of the Code as of
the issue date (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b) of the Code or any fiscal or regulatory legislation, rules or
practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; or 

  

	 	10.	 in the case of any combination of items (1) through (9) above. 

The Securities are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to the
Securities. Except as specifically provided hereunder, the Company will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any
government or political subdivision. 
 Under the terms of the Indenture, the Company may consolidate or merge with another corporation or sell, convey or
lease all or substantially all of the Company’s assets to another corporation or entity, in accordance with Article 11 thereof. Pursuant to, and in accordance with, the terms of the Indenture, the successor or acquiring corporation or entity
must expressly assume all of the Company’s responsibilities and liabilities under 

  
 A-5 

 
the Indenture, including the payment of all amounts due on the Securities and performance of all the covenants. For the purpose of the Securities, it shall be understood that any obligation to
pay Additional Amounts shall be determined mutatis mutandis, by treating the jurisdiction under the laws of which such successor or acquiring corporation or entity is organized and any political subdivision or taxing authority as therein
having the power to tax, as a Relevant Taxing Jurisdiction. 
 In case an Event of Default, as defined in the Indenture, relating to the Securities shall
have occurred and be continuing, the principal hereof may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the provisions contained in the Indenture. The Indenture provides that,
prior to the declaration of maturity of the Securities upon the occurrence of an Event of Default relating to the Securities, the Holders of a majority in aggregate principal amount at Stated Maturity of the Securities at the time outstanding may on
behalf of the Holders of all of the Securities waive any past default under the Indenture relating to the Securities and its consequences, except a default in the payment of the principal of and premium, if any, or interest on any of the Securities.
Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and of any Security issued upon the
registration of transfer hereof or in exchange or substitution herefor, irrespective of whether or not any notation of such consent or waiver is made upon this Security or such other Securities. 

If, on or after the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the
Company’s control or if the euro is no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the
international banking community, then all payments will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be converted into U.S. dollars on the
basis of the most recently available market exchange rate for euros. Any such payment so made in U.S. dollars will not constitute an Event of Default under the Securities or the Indenture. 

This Security may be redeemed at the Company’s option, in whole or in part, on any date that is prior to September 5, 2024 at a redemption price
(calculated by the Company) equal to the greater of (i) 100% of the principal amount of the Securities to be redeemed on the date of redemption or (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of
principal and interest on the Securities to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable
Comparable Government Bond Rate (as defined below) plus 15 basis points, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding the redemption date. 

At any time on or after September 5, 2024, the Company may also redeem some or all of the Securities, at the Company’s option, at a redemption price
equal to 100% of the principal amount of the Securities being redeemed on the date of redemption, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the redemption date. 

“Comparable Government Bond Rate” means, with respect to any redemption date, the price, expressed as a percentage (rounded to three decimal places,
with 0.0005 being rounded upwards), at which the gross redemption yield on the Securities to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross
redemption yield on such Business Day of the Comparable Government Bond (as defined below) on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an
independent investment bank selected by the Company. 
 “Comparable Government Bond” means, in relation to any Comparable Government Bond Rate
calculation, at the discretion of an independent investment bank selected by the Company, a German government bond whose maturity is closest to the maturity of the Securities to be redeemed, or if such independent investment bank in its discretion
determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company, determine to
be appropriate for determining the Comparable Government Bond Rate. 
 “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that, if such redemption date is not an Interest Payment Date
with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon to such redemption date. 

Redemption for Tax Reasons 
 If, (a) as a result of
any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of any Relevant Taxing Jurisdiction, or any change in, or amendments to, an official position regarding the application or interpretation of such
laws, regulations or rulings (including by virtue of a holding, judgment or order by a court of competent jurisdiction or a change in published administrative practice), which change or amendment is announced or becomes effective on or after the
date hereof, the Company becomes or, based on a written opinion of independent counsel selected by the Company, is likely to become obligated to pay additional amounts as described herein under the heading “Payment of Additional Amounts”
with respect to the Securities, or (b) any act is taken by a Relevant Taxing Jurisdiction on or after the date hereof whether or not such act is taken with respect to the Company or any affiliate, that results in the Company being required or,
based upon a written opinion of independent counsel selected by the Company, being likely to be required to pay such additional amounts, then the Company may at any time at the Company’s option redeem, in whole, but not in part, the Securities
on not less than 15 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on the Securities being redeemed to, but excluding, the redemption date. 

Notice of redemption will be mailed to Holders of Securities to be redeemed by first-class mail (or otherwise transmitted in accordance with the applicable
procedures of Euroclear/Clearstream) at least 30 and not more than 60 days prior to the date fixed for redemption. Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the
Securities or portions 

  
 A-6 

 
thereof called for redemption. On or before the redemption date, the Company will deposit with the paying agent or set aside, segregate and hold in trust (if the Company is acting as paying
agent), funds sufficient to pay the redemption price of, and accrued and unpaid interest on, the Securities to be redeemed on that redemption date. If fewer than all of the Securities are to be redeemed, the Trustee will select, not more than 60
days prior to the redemption date, the particular Securities or portions thereof for redemption from the outstanding Securities not previously called by such method as the Trustee deems fair and appropriate and in accordance with the applicable
procedures of the common depositary; provided, however, that no Securities of a principal amount of €100,000 or less shall be redeemed in part. 

Except as otherwise specifically provided herein, the Securities may not be redeemed before the Stated Maturity and shall not be entitled to any sinking,
purchase or analogous fund, nor shall the Company be obligated to redeem or purchase the Securities at the option of any Holder thereof. 
 The Indenture
contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time outstanding, evidenced as provided in the Indenture, to execute
supplemental indentures which, if they pertain specifically to the Securities, may add any provisions to or change in any manner or eliminate any of the provisions of the Indenture relating to the Securities or of any supplemental indenture relating
to the Securities or modify in any manner the rights of the Holders of the Securities; provided, however, that no such supplemental indenture shall (i) extend the Stated Maturity of any Security, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of any interest thereon, or reduce any premium payable upon the redemption thereof, or change the currency in which any Security is payable, without the consent of the Holder of each Security so
affected, or (ii) reduce the aforesaid majority in aggregate principal amount of Securities, the consent of the Holders of which is required for any such supplemental indenture relating to the Securities, without the consent of the Holders of
all Securities then outstanding. 
 The Company may terminate all of its obligations under the Securities and the Indenture as it relates to the Securities,
with certain limited exceptions described in the Indenture, by (i) irrevocably depositing in trust with the Trustee money or Federal Republic of Germany obligations (as defined below) (or a combination thereof) sufficient to pay principal of
and any premium or interest on the Securities at Stated Maturity or upon the Securities’ earlier redemption, as the case may be, and (ii) complying with certain other conditions specified in the Indenture. Alternatively, the Company may,
upon the making of such deposit and the satisfaction of certain conditions specified in the Indenture, omit to comply with its covenants in the Indenture relating to creation of secured indebtedness (Section 4.05 of the Indenture), sale and
lease-back transactions (Section 4.06 of the Indenture), and transactions involving a merger or consolidation of the Company into or with any other corporation or a sale, conveyance or lease of the property of the Company substantially as an
entirety to any other corporation or entity (Article Eleven), and such omission shall not be an Event of Default with respect to the Securities. 
 The
Securities are issuable as registered Securities without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. At the office or agency to be maintained by the Company in Chicago, Illinois, United
States or at such other location or locations as may be provided for in the Indenture, and in the manner and subject to the limitations provided in the Indenture, Securities may be exchanged by the Holder thereof without charge except for any tax or
other governmental charge imposed in respect thereof, for a like aggregate principal amount at Stated Maturity of Securities of other authorized denominations. 

Subject to the limitations provided in the Indenture, the Officers’ Certificate and herein, this Security is transferable and the registration of the
transfer hereof may be effected by the registered Holder hereof or by his attorney duly authorized in writing upon due presentment for registration of transfer at the office or agency of the Company in Chicago, Illinois, United States or at such
other location or locations as may be provided for in the Indenture, but only in the manner and subject to the limitations provided in the Indenture, the Officers’ Certificate and herein, without charge except for any tax or other governmental
charge imposed in relation thereto. Upon any such registration of transfer, a new Security or Securities of authorized denominations for a like aggregate principal amount at Stated Maturity will be issued to the transferee in exchange therefor. 

Prior to due presentment for registration of transfer of this Security, the Company, the Trustee, any paying agent and the Security Registrar may deem and
treat the registered Holder hereof as the absolute owner hereof (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon made by any person), for the purpose of receiving payment as herein
provided and for all other purposes, and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary. 

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or of any successor corporation, either directly
or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as a condition of and part of the
consideration for the issue hereof, expressly waived and released. 
 The Indenture and this Security shall be governed by and construed in accordance with
the laws of the State of Illinois. 

  
 A-7 

 [FORM OF TRANSFER NOTICE] 

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

 

					
		
	 Insert Taxpayer Identification No.
	 	
			
	  
	 		 	
	
	Please print or typewrite name and address including zip code of assignee
			
	  
	 		 	

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

 

							
	Date:	 		 		 	
		 	  
	 		 	  

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

 Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature
guarantor acceptable to the Trustee. 

  
 A-8 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of decrease
in Principal Amount
of this Global Note	  	Amount of increase
in Principal Amount
of this Global Note	  	Principal Amount of
this Global Note
following such
decrease or increase	  	Signature of
authorized signatory
of Trustee or Note
Custodian

 EXHIBIT B 

FORM OF 2027 NOTE 

 THIS IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. 

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM
(“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE COMMON DEPOSITARY OF EUROCLEAR/CLEARSTREAM OR TO
A SUCCESSOR COMMON DEPOSITARY OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO IN THE ADDITIONAL TERMS
ATTACHED HERETO. 

 FORM OF 

ILLINOIS TOOL WORKS INC. 

0.625% NOTE DUE 2027 

Principal Amount €500,000,000 

as revised by the Schedule of Increases and 

Decreases in Global Security attached hereto 
  

			
	No. 001	  	June 5, 2019
		
		  	ISIN NO. XS1843435170
		
		  	Common Code: 184343517

 ILLINOIS TOOL WORKS INC., a corporation incorporated under the laws of the State of Delaware (hereinafter called the
“Company”), for value received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, as nominee of The Bank of New York Mellon, London Branch, a common depositary for Euroclear Bank S.A./N.V. and Clearstream
Banking, or its registered assigns, the principal sum of FIVE HUNDRED MILLION EUROS (€500,000,000) subject to adjustment from time to time as reflected on the Schedule of Increases and Decreases in Global Security attached hereto on
December 5, 2027 (“Stated Maturity”) at the office or agency of the Company in London, United Kingdom or such other location or locations as may be provided for pursuant to the Indenture referred to herein, in such unified coin or
currency of the European Monetary Union as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum, in arrears, from and including the most recent Interest Payment Date (as
defined below) to which interest has been paid or duly provided for (or if no interest has been paid, from and including June 5, 2019), to, but excluding, December 5 of each year (the “Interest Payment Date”), beginning on
December 5, 2019, at the rate of 0.625% per annum, at said offices or agencies, in like coin or currency, to, but excluding, the date on which said principal sum is paid in full. The Record Date with respect to each Interest Payment Date shall
be the close of business on December 1 (whether or not a Business Day) next preceding the Interest Payment Date. Interest payable at Stated Maturity shall be payable to the person to whom principal shall be payable. If any Interest Payment
Date, Stated Maturity or any redemption date is not a Business Day, then the related payment for such Interest Payment Date, Stated Maturity or redemption date shall be paid on the next succeeding Business Day with the same force and effect as if
made on such Interest Payment Date, Stated Maturity or redemption date, as the case may be, and no further interest shall accrue as a result of such delay. The interest payable on any Interest Payment Date (other than interest payable at Stated
Maturity) will be made by wire transfer in immediately available funds, provided that the Company may elect that the payment of interest may be made by wire transfer or by check mailed to the registered address of the person entitled thereto as it
appears on the security register. Notwithstanding the foregoing, if the registered owner of the Securities is a common depositary of Euroclear/Clearstream or its nominee, payments of principal and interest shall be made in accordance with the
requirements of Euroclear/Clearstream. 
 If, on or after the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls
or other circumstances beyond the Company’s control or if the euro is no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public
institutions of or within the international banking community, then all payments will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be
converted into U.S. dollars on the basis of the most recently available market exchange rate for euros. Any such payment so made in U.S. dollars will not constitute an event of default under this Security or the Indenture. Neither the Trustee nor
the Paying Agent shall have any responsibility for effecting such currency conversions. 
 The further provisions of this Security are continued in an
attachment hereto and such continued provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Security shall
not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee under the Indenture referred to herein. 

[signature page follows] 

  
 B-1 

 IN WITNESS WHEREOF, ILLINOIS TOOL WORKS INC. has caused this Security to be manually signed by its duly
authorized officers and its corporate seal to be affixed hereto. 
  

							
		 		 	ILLINOIS TOOL WORKS INC.
				
		 		 	By:	 	  

		 		 	Name:	 	Michael M. Larsen
		 		 	Title:	 	Senior Vice President & Chief Financial Officer
				
	[SEAL]	 		 		 	
				
		 		 	By:	 	  

		 		 	Name:	 	Randall J. Scheuneman
		 		 	Title:	 	Vice President & Chief Accounting Officer
				
		 		 	By:	 	  

		 		 	Name:	 	Janet O. Love
		 		 	Title:	 	Chief Governance Counsel & Assistant Secretary

  
 B-2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein issued under the within-mentioned Indenture. 

 

							
		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
				
	Dated: June 5, 2019	 		 	By:	 	  

		 		 		 	Authorized Signature

 THE ADDITIONAL TERMS ATTACHED HERETO ARE INCORPORATED BY REFERENCE HEREIN AND DEEMED TO BE A PART HEREOF. 

  
 B-3 

 ADDITIONAL TERMS OF 

ILLINOIS TOOL WORKS INC. 

0.625% NOTE DUE 2027 
 This Security is one
of a duly authorized issue of the Securities of Illinois Tool Works Inc., a Delaware corporation (the “Company”), designated as its 0.625% Notes due 2027 (individually, a “Security” and collectively, the “Securities”),
issued under and pursuant to an Indenture dated as of November 1, 1986 and supplemented by a First Supplemental Indenture dated as of May 1, 1990 (the “Indenture”), duly executed and delivered by the Company and The Bank of New
York Mellon Trust Company, N.A., as successor trustee (the “Trustee”). The terms of the Securities include those stated in the Indenture and in the Officers’ Certificate dated June 5, 2019 (the “Officers’
Certificate”) establishing certain terms of the Securities pursuant to the Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “TIA”), and those set forth in this Security. This
Security is subject to all such terms, and Holders are referred to the Indenture, the Officers’ Certificate and the TIA for a statement of all such terms. All terms used in this Security that are defined in the Indenture or in the
Officers’ Certificate shall have the meanings assigned to them therein. The Securities are unsecured general obligations of the Company. 
 The
Securities are initially limited to the aggregate principal amount of Five Hundred Million Euros (€500,000,000), as specified in the Officers’ Certificate. The Company may from time to time, without the consent of the existing Holders of
Securities, create and issue additional Securities with the same terms and conditions as the Securities, except for the issue date, issue price and the first payment of interest thereon, provided that if such additional Securities are not fungible
with the Securities for U.S. federal income tax purposes, such additional Securities will have a separate ISIN and Common Code. Additional Securities so issued will be consolidated with and will form a single series with the Securities. 

Payment of Additional Amounts 
 All payments of principal
and interest on the Securities by the Company will be made free and clear of and without withholding or deduction for or on account of any present or future tax, assessment or other governmental charge imposed by the United States (or any political
subdivision or taxing authority thereof or therein having power to tax) (a “Relevant Taxing Jurisdiction”), unless the withholding of such taxes, assessments or other governmental charge is required by law or the official interpretation or
administration thereof. The Company will, subject to the exceptions and limitations set forth below, pay as additional interest on the Securities such additional amounts (the “additional amounts”) as are necessary in order that the net
payment by the Company of the principal of and interest on such Securities to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment or other governmental charge
imposed by any Relevant Taxing Jurisdiction, will not be less than the amount provided in such Securities to be then due and payable; provided, however, that the foregoing obligation to pay additional amounts shall not apply: 

 

	 	11.	 to any tax, assessment or other governmental charge that is imposed by reason of the Holder (or the beneficial
owner for whose benefit such Holder holds such Security), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a person holding a power over an estate or trust
administered by a fiduciary holder, being considered as: 

  

	 	a.	 being or having been engaged in a trade or business in a Relevant Taxing Jurisdiction or having or having had a
permanent establishment in a Relevant Taxing Jurisdiction; 

  

	 	b.	 having a current or former connection with the Relevant Taxing Jurisdiction (other than a connection arising
solely as a result of the ownership of such Securities, the receipt of any payment or the enforcement of any rights hereunder), including being or having been a citizen or resident of the Relevant Taxing Jurisdiction; 

 

	 	c.	 being or having been a personal holding company, a passive foreign investment company or a controlled foreign
corporation for United States income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax; 

  

	 	d.	 being or having been a “10-percent shareholder” of the
Company as defined in section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision; or 

  

	 	e.	 being or having been a bank receiving payments on an extension of credit made pursuant to a loan agreement
entered into in the ordinary course of its trade or business, as described in section 881(c)(3)(A) of the Code or any successor provisions; 

  
 B-4 

	 	12.	 to any Holder that is not the sole beneficial owner of such Securities, or a portion of such Securities, or
that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or
limited liability company would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment; 

 

	 	13.	 to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the
Holder, beneficial owner or any other person to (a) submit an applicable United States Internal Revenue Service (“IRS”) Form W-8 (with any required attachments) to establish the status as a non-United States person as required for purposes of the portfolio interest exemption or IRS Form W-9 to establish the status as a United States person, or comply with other
certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with a Relevant Taxing Jurisdiction of the Holder or beneficial owner of such Securities, if compliance is required by
statute, by regulation of the Relevant Taxing Jurisdiction or by an applicable income tax treaty to which the Relevant Taxing Jurisdiction is a party as a precondition to exemption from such tax, assessment or other governmental charge; or
(b) comply with any information gathering and reporting requirements or take any similar action (including entering into any agreement with the IRS), in each case, that is required to obtain the maximum available exemption from withholding by a
Relevant Taxing Jurisdiction that is available to payments received by or on behalf of the Holder or beneficial owner; 

  

	 	14.	 to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the
Company or a paying agent from the payment; 

  

	 	15.	 to any tax, assessment or other governmental charge that would not have been imposed or withheld but for a
change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later; 

 

	 	16.	 to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or
similar tax, assessment or other governmental charge; 

  

	 	17.	 to any tax, assessment or other governmental charge required to be withheld by any paying agent from any
payment of principal of or interest on any Security, if such payment can be made without such withholding by at least one other paying agent; 

  

	 	18.	 to any tax, assessment or other governmental charge that would not have been imposed or levied but for the
presentation by the Holder of any Security, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs
later; 

  

	 	19.	 to any tax, assessment or other governmental charge imposed under sections 1471 through 1474 of the Code as of
the issue date (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b) of the Code or any fiscal or regulatory legislation, rules or
practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; or 

  

	 	20.	 in the case of any combination of items (1) through (9) above. 

The Securities are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to the
Securities. Except as specifically provided hereunder, the Company will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any
government or political subdivision. 
 Under the terms of the Indenture, the Company may consolidate or merge with another corporation or sell, convey or
lease all or substantially all of the Company’s assets to another corporation or entity, in accordance with Article 11 thereof. Pursuant to, and in accordance with, the terms of the Indenture, the successor or acquiring corporation or entity
must expressly assume all of the Company’s responsibilities and liabilities under 

  
 B-5 

 
the Indenture, including the payment of all amounts due on the Securities and performance of all the covenants. For the purpose of the Securities, it shall be understood that any obligation to
pay Additional Amounts shall be determined mutatis mutandis, by treating the jurisdiction under the laws of which such successor or acquiring corporation or entity is organized and any political subdivision or taxing authority as therein
having the power to tax, as a Relevant Taxing Jurisdiction. 
 In case an Event of Default, as defined in the Indenture, relating to the Securities shall
have occurred and be continuing, the principal hereof may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the provisions contained in the Indenture. The Indenture provides that,
prior to the declaration of maturity of the Securities upon the occurrence of an Event of Default relating to the Securities, the Holders of a majority in aggregate principal amount at Stated Maturity of the Securities at the time outstanding may on
behalf of the Holders of all of the Securities waive any past default under the Indenture relating to the Securities and its consequences, except a default in the payment of the principal of and premium, if any, or interest on any of the Securities.
Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and of any Security issued upon the
registration of transfer hereof or in exchange or substitution herefor, irrespective of whether or not any notation of such consent or waiver is made upon this Security or such other Securities. 

If, on or after the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the
Company’s control or if the euro is no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the
international banking community, then all payments will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be converted into U.S. dollars on the
basis of the most recently available market exchange rate for euros. Any such payment so made in U.S. dollars will not constitute an Event of Default under the Securities or the Indenture. 

This Security may be redeemed at the Company’s option, in whole or in part, on any date that is prior to September 5, 2027 at a redemption price
(calculated by the Company) equal to the greater of (i) 100% of the principal amount of the Securities to be redeemed on the date of redemption or (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of
principal and interest on the Securities to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable
Comparable Government Bond Rate (as defined below) plus 20 basis points, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding the redemption date. 

At any time on or after September 5, 2027, the Company may also redeem some or all of the Securities, at the Company’s option, at a redemption price
equal to 100% of the principal amount of the Securities being redeemed on the date of redemption, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the redemption date. 

“Comparable Government Bond Rate” means, with respect to any redemption date, the price, expressed as a percentage (rounded to three decimal places,
with 0.0005 being rounded upwards), at which the gross redemption yield on the Securities to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross
redemption yield on such Business Day of the Comparable Government Bond (as defined below) on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an
independent investment bank selected by the Company. 
 “Comparable Government Bond” means, in relation to any Comparable Government Bond Rate
calculation, at the discretion of an independent investment bank selected by the Company, a German government bond whose maturity is closest to the maturity of the Securities to be redeemed, or if such independent investment bank in its discretion
determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company, determine to
be appropriate for determining the Comparable Government Bond Rate. 
 “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that, if such redemption date is not an Interest Payment Date
with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon to such redemption date. 

Redemption for Tax Reasons 
 If, (a) as a result of
any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of any Relevant Taxing Jurisdiction, or any change in, or amendments to, an official position regarding the application or interpretation of such
laws, regulations or rulings (including by virtue of a holding, judgment or order by a court of competent jurisdiction or a change in published administrative practice), which change or amendment is announced or becomes effective on or after the
date hereof, the Company becomes or, based on a written opinion of independent counsel selected by the Company, is likely to become obligated to pay additional amounts as described herein under the heading “Payment of Additional Amounts”
with respect to the Securities, or (b) any act is taken by a Relevant Taxing Jurisdiction on or after the date hereof whether or not such act is taken with respect to the Company or any affiliate, that results in the Company being required or,
based upon a written opinion of independent counsel selected by the Company, being likely to be required to pay such additional amounts, then the Company may at any time at the Company’s option redeem, in whole, but not in part, the Securities
on not less than 15 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on the Securities being redeemed to, but excluding, the redemption date. 

Notice of redemption will be mailed to Holders of Securities to be redeemed by first-class mail (or otherwise transmitted in accordance with the applicable
procedures of Euroclear/Clearstream) at least 30 and not more than 60 days prior to the date fixed for redemption. Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the
Securities or portions 

  
 B-6 

 
thereof called for redemption. On or before the redemption date, the Company will deposit with the paying agent or set aside, segregate and hold in trust (if the Company is acting as paying
agent), funds sufficient to pay the redemption price of, and accrued and unpaid interest on, the Securities to be redeemed on that redemption date. If fewer than all of the Securities are to be redeemed, the Trustee will select, not more than 60
days prior to the redemption date, the particular Securities or portions thereof for redemption from the outstanding Securities not previously called by such method as the Trustee deems fair and appropriate and in accordance with the applicable
procedures of the common depositary; provided, however, that no Securities of a principal amount of €100,000 or less shall be redeemed in part. 

Except as otherwise specifically provided herein, the Securities may not be redeemed before the Stated Maturity and shall not be entitled to any sinking,
purchase or analogous fund, nor shall the Company be obligated to redeem or purchase the Securities at the option of any Holder thereof. 
 The Indenture
contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time outstanding, evidenced as provided in the Indenture, to execute
supplemental indentures which, if they pertain specifically to the Securities, may add any provisions to or change in any manner or eliminate any of the provisions of the Indenture relating to the Securities or of any supplemental indenture relating
to the Securities or modify in any manner the rights of the Holders of the Securities; provided, however, that no such supplemental indenture shall (i) extend the Stated Maturity of any Security, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of any interest thereon, or reduce any premium payable upon the redemption thereof, or change the currency in which any Security is payable, without the consent of the Holder of each Security so
affected, or (ii) reduce the aforesaid majority in aggregate principal amount of Securities, the consent of the Holders of which is required for any such supplemental indenture relating to the Securities, without the consent of the Holders of
all Securities then outstanding. 
 The Company may terminate all of its obligations under the Securities and the Indenture as it relates to the Securities,
with certain limited exceptions described in the Indenture, by (i) irrevocably depositing in trust with the Trustee money or Federal Republic of Germany obligations (as defined below) (or a combination thereof) sufficient to pay principal of
and any premium or interest on the Securities at Stated Maturity or upon the Securities’ earlier redemption, as the case may be, and (ii) complying with certain other conditions specified in the Indenture. Alternatively, the Company may,
upon the making of such deposit and the satisfaction of certain conditions specified in the Indenture, omit to comply with its covenants in the Indenture relating to creation of secured indebtedness (Section 4.05 of the Indenture), sale and
lease-back transactions (Section 4.06 of the Indenture), and transactions involving a merger or consolidation of the Company into or with any other corporation or a sale, conveyance or lease of the property of the Company substantially as an
entirety to any other corporation or entity (Article Eleven), and such omission shall not be an Event of Default with respect to the Securities. 
 The
Securities are issuable as registered Securities without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. At the office or agency to be maintained by the Company in Chicago, Illinois, United
States or at such other location or locations as may be provided for in the Indenture, and in the manner and subject to the limitations provided in the Indenture, Securities may be exchanged by the Holder thereof without charge except for any tax or
other governmental charge imposed in respect thereof, for a like aggregate principal amount at Stated Maturity of Securities of other authorized denominations. 

Subject to the limitations provided in the Indenture, the Officers’ Certificate and herein, this Security is transferable and the registration of the
transfer hereof may be effected by the registered Holder hereof or by his attorney duly authorized in writing upon due presentment for registration of transfer at the office or agency of the Company in Chicago, Illinois, United States or at such
other location or locations as may be provided for in the Indenture, but only in the manner and subject to the limitations provided in the Indenture, the Officers’ Certificate and herein, without charge except for any tax or other governmental
charge imposed in relation thereto. Upon any such registration of transfer, a new Security or Securities of authorized denominations for a like aggregate principal amount at Stated Maturity will be issued to the transferee in exchange therefor. 

Prior to due presentment for registration of transfer of this Security, the Company, the Trustee, any paying agent and the Security Registrar may deem and
treat the registered Holder hereof as the absolute owner hereof (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon made by any person), for the purpose of receiving payment as herein
provided and for all other purposes, and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary. 

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or of any successor corporation, either directly
or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as a condition of and part of the
consideration for the issue hereof, expressly waived and released. 
 The Indenture and this Security shall be governed by and construed in accordance with
the laws of the State of Illinois. 

  
 B-7 

 [FORM OF TRANSFER NOTICE] 

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

 

					
		
	Insert Taxpayer Identification No.	 	
			
	  
	 		 	
	
	Please print or typewrite name and address including zip code of assignee
			
	  
	 		 	

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

							
	Date:	 		 		 	
		 	  
	 		 	  

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

 Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature
guarantor acceptable to the Trustee. 

  
 B-8 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of decrease
in Principal Amount
of this Global Note	  	Amount of increase
in Principal Amount
of this Global Note	  	Principal Amount of
this Global Note
following such
decrease or increase	  	Signature of
authorized signatory
of Trustee or Note
Custodian

  

 EXHIBIT C 

FORM OF 2031 NOTE 

  

 THIS IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. 

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM
(“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE COMMON DEPOSITARY OF EUROCLEAR/CLEARSTREAM OR TO
A SUCCESSOR COMMON DEPOSITARY OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO IN THE ADDITIONAL TERMS
ATTACHED HERETO. 

  

 FORM OF 

ILLINOIS TOOL WORKS INC. 

1.000% NOTE DUE 2031 

Principal Amount €500,000,000 

as revised by the Schedule of Increases and 

Decreases in Global Security attached hereto 
  

			
	No. 001	  	June 5, 2019
		
		  	ISIN NO. XS1843434793
		
		  	Common Code: 184343479

 ILLINOIS TOOL WORKS INC., a corporation incorporated under the laws of the State of Delaware (hereinafter called the
“Company”), for value received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, as nominee of The Bank of New York Mellon, London Branch, a common depositary for Euroclear Bank S.A./N.V. and Clearstream
Banking, or its registered assigns, the principal sum of FIVE HUNDRED MILLION EUROS (€500,000,000) subject to adjustment from time to time as reflected on the Schedule of Increases and Decreases in Global Security attached hereto on
June 5, 2031 (“Stated Maturity”) at the office or agency of the Company in London, United Kingdom or such other location or locations as may be provided for pursuant to the Indenture referred to herein, in such unified coin or
currency of the European Monetary Union as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum, in arrears, from and including the most recent Interest Payment Date (as
defined below) to which interest has been paid or duly provided for (or if no interest has been paid, from and including June 5, 2019), to, but excluding, June 5 of each year (the “Interest Payment Date”), beginning on
June 5, 2020, at the rate of 1.000% per annum, at said offices or agencies, in like coin or currency, to, but excluding, the date on which said principal sum is paid in full. The Record Date with respect to each Interest Payment Date shall be
the close of business on June 1 (whether or not a Business Day) next preceding the Interest Payment Date. Interest payable at Stated Maturity shall be payable to the person to whom principal shall be payable. If any Interest Payment Date,
Stated Maturity or any redemption date is not a Business Day, then the related payment for such Interest Payment Date, Stated Maturity or redemption date shall be paid on the next succeeding Business Day with the same force and effect as if made on
such Interest Payment Date, Stated Maturity or redemption date, as the case may be, and no further interest shall accrue as a result of such delay. The interest payable on any Interest Payment Date (other than interest payable at Stated Maturity)
will be made by wire transfer in immediately available funds, provided that the Company may elect that the payment of interest may be made by wire transfer or by check mailed to the registered address of the person entitled thereto as it appears on
the security register. Notwithstanding the foregoing, if the registered owner of the Securities is a common depositary of Euroclear/Clearstream or its nominee, payments of principal and interest shall be made in accordance with the requirements of
Euroclear/Clearstream. 
 If, on or after the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls or other
circumstances beyond the Company’s control or if the euro is no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions
of or within the international banking community, then all payments will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be converted into U.S.
dollars on the basis of the most recently available market exchange rate for euros. Any such payment so made in U.S. dollars will not constitute an event of default under this Security or the Indenture. Neither the Trustee nor the Paying Agent shall
have any responsibility for effecting such currency conversions. 
 The further provisions of this Security are continued in an attachment hereto and such
continued provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Security shall not be valid or become
obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee under the Indenture referred to herein. 

[signature page follows] 

  
 C-1 

 IN WITNESS WHEREOF, ILLINOIS TOOL WORKS INC. has caused this Security to be manually signed by its duly
authorized officers and its corporate seal to be affixed hereto. 
  

							
		 		 	ILLINOIS TOOL WORKS INC.
				
		 		 	By:	 	  

		 		 	Name:	 	Michael M. Larsen
		 		 	Title:	 	Senior Vice President & Chief Financial Officer
				
	[SEAL]	 		 		 	
				
		 		 	By:	 	  

		 		 	Name:	 	Randall J. Scheuneman
		 		 	Title:	 	Vice President & Chief Accounting Officer
				
		 		 	By:	 	  

		 		 	Name:	 	Janet O. Love
		 		 	Title:	 	Chief Governance Counsel & Assistant Secretary

  
 C-2 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein issued under the within-mentioned Indenture. 

 

							
		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
				
	Dated: June 5, 2019	 		 	By:	 	  

		 		 		 	Authorized Signature

 THE ADDITIONAL TERMS ATTACHED HERETO ARE INCORPORATED BY REFERENCE HEREIN AND DEEMED TO BE A PART HEREOF. 

  
 C-3 

 ADDITIONAL TERMS OF 

ILLINOIS TOOL WORKS INC. 

1.000% NOTE DUE 2031 
 This Security is one
of a duly authorized issue of the Securities of Illinois Tool Works Inc., a Delaware corporation (the “Company”), designated as its 1.000% Notes due 2031 (individually, a “Security” and collectively, the “Securities”),
issued under and pursuant to an Indenture dated as of November 1, 1986 and supplemented by a First Supplemental Indenture dated as of May 1, 1990 (the “Indenture”), duly executed and delivered by the Company and The Bank of New
York Mellon Trust Company, N.A., as successor trustee (the “Trustee”). The terms of the Securities include those stated in the Indenture and in the Officers’ Certificate dated June 5, 2019 (the “Officers’
Certificate”) establishing certain terms of the Securities pursuant to the Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “TIA”), and those set forth in this Security. This
Security is subject to all such terms, and Holders are referred to the Indenture, the Officers’ Certificate and the TIA for a statement of all such terms. All terms used in this Security that are defined in the Indenture or in the
Officers’ Certificate shall have the meanings assigned to them therein. The Securities are unsecured general obligations of the Company. 
 The
Securities are initially limited to the aggregate principal amount of Five Hundred Million Euros (€500,000,000), as specified in the Officers’ Certificate. The Company may from time to time, without the consent of the existing Holders of
Securities, create and issue additional Securities with the same terms and conditions as the Securities, except for the issue date, issue price and the first payment of interest thereon, provided that if such additional Securities are not fungible
with the Securities for U.S. federal income tax purposes, such additional Securities will have a separate ISIN and Common Code. Additional Securities so issued will be consolidated with and will form a single series with the Securities. 

Payment of Additional Amounts 
 All payments of principal
and interest on the Securities by the Company will be made free and clear of and without withholding or deduction for or on account of any present or future tax, assessment or other governmental charge imposed by the United States (or any political
subdivision or taxing authority thereof or therein having power to tax) (a “Relevant Taxing Jurisdiction”), unless the withholding of such taxes, assessments or other governmental charge is required by law or the official interpretation or
administration thereof. The Company will, subject to the exceptions and limitations set forth below, pay as additional interest on the Securities such additional amounts (the “additional amounts”) as are necessary in order that the net
payment by the Company of the principal of and interest on such Securities to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment or other governmental charge
imposed by any Relevant Taxing Jurisdiction, will not be less than the amount provided in such Securities to be then due and payable; provided, however, that the foregoing obligation to pay additional amounts shall not apply: 

 

	 	21.	 to any tax, assessment or other governmental charge that is imposed by reason of the Holder (or the beneficial
owner for whose benefit such Holder holds such Security), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust, partnership or corporation, or a person holding a power over an estate or trust
administered by a fiduciary holder, being considered as: 

  

	 	a.	 being or having been engaged in a trade or business in a Relevant Taxing Jurisdiction or having or having had a
permanent establishment in a Relevant Taxing Jurisdiction; 

  

	 	b.	 having a current or former connection with the Relevant Taxing Jurisdiction (other than a connection arising
solely as a result of the ownership of such Securities, the receipt of any payment or the enforcement of any rights hereunder), including being or having been a citizen or resident of the Relevant Taxing Jurisdiction; 

 

	 	c.	 being or having been a personal holding company, a passive foreign investment company or a controlled foreign
corporation for United States income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax; 

  

	 	d.	 being or having been a “10-percent shareholder” of the
Company as defined in section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision; or 

  

	 	e.	 being or having been a bank receiving payments on an extension of credit made pursuant to a loan agreement
entered into in the ordinary course of its trade or business, as described in section 881(c)(3)(A) of the Code or any successor provisions; 

  
 C-4 

	 	22.	 to any Holder that is not the sole beneficial owner of such Securities, or a portion of such Securities, or
that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or
limited liability company would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment; 

 

	 	23.	 to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the
Holder, beneficial owner or any other person to (a) submit an applicable United States Internal Revenue Service (“IRS”) Form W-8 (with any required attachments) to establish the status as a non-United States person as required for purposes of the portfolio interest exemption or IRS Form W-9 to establish the status as a United States person, or comply with other
certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with a Relevant Taxing Jurisdiction of the Holder or beneficial owner of such Securities, if compliance is required by
statute, by regulation of the Relevant Taxing Jurisdiction or by an applicable income tax treaty to which the Relevant Taxing Jurisdiction is a party as a precondition to exemption from such tax, assessment or other governmental charge; or (b)
comply with any information gathering and reporting requirements or take any similar action (including entering into any agreement with the IRS), in each case, that is required to obtain the maximum available exemption from withholding by a Relevant
Taxing Jurisdiction that is available to payments received by or on behalf of the Holder or beneficial owner; 

  

	 	24.	 to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the
Company or a paying agent from the payment; 

  

	 	25.	 to any tax, assessment or other governmental charge that would not have been imposed or withheld but for a
change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later; 

 

	 	26.	 to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or
similar tax, assessment or other governmental charge; 

  

	 	27.	 to any tax, assessment or other governmental charge required to be withheld by any paying agent from any
payment of principal of or interest on any Security, if such payment can be made without such withholding by at least one other paying agent; 

  

	 	28.	 to any tax, assessment or other governmental charge that would not have been imposed or levied but for the
presentation by the Holder of any Security, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs
later; 

  

	 	29.	 to any tax, assessment or other governmental charge imposed under sections 1471 through 1474 of the Code as of
the issue date (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to section 1471(b) of the Code or any fiscal or regulatory legislation, rules or
practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; or 

  

	 	30.	 in the case of any combination of items (1) through (9) above. 

The Securities are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to the
Securities. Except as specifically provided hereunder, the Company will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any
government or political subdivision. 
 Under the terms of the Indenture, the Company may consolidate or merge with another corporation or sell, convey or
lease all or substantially all of the Company’s assets to another corporation or entity, in accordance with Article 11 thereof. Pursuant to, and in accordance with, the terms of the Indenture, the successor or acquiring corporation or entity
must expressly assume all of the Company’s responsibilities and liabilities under 

  
 C-5 

 
the Indenture, including the payment of all amounts due on the Securities and performance of all the covenants. For the purpose of the Securities, it shall be understood that any obligation to
pay Additional Amounts shall be determined mutatis mutandis, by treating the jurisdiction under the laws of which such successor or acquiring corporation or entity is organized and any political subdivision or taxing authority as therein
having the power to tax, as a Relevant Taxing Jurisdiction. 
 In case an Event of Default, as defined in the Indenture, relating to the Securities shall
have occurred and be continuing, the principal hereof may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the provisions contained in the Indenture. The Indenture provides that,
prior to the declaration of maturity of the Securities upon the occurrence of an Event of Default relating to the Securities, the Holders of a majority in aggregate principal amount at Stated Maturity of the Securities at the time outstanding may on
behalf of the Holders of all of the Securities waive any past default under the Indenture relating to the Securities and its consequences, except a default in the payment of the principal of and premium, if any, or interest on any of the Securities.
Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and of any Security issued upon the
registration of transfer hereof or in exchange or substitution herefor, irrespective of whether or not any notation of such consent or waiver is made upon this Security or such other Securities. 

If, on or after the date hereof, the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the
Company’s control or if the euro is no longer being used by the then-member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the
international banking community, then all payments will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euros will be converted into U.S. dollars on the
basis of the most recently available market exchange rate for euros. Any such payment so made in U.S. dollars will not constitute an Event of Default under the Securities or the Indenture. 

This Security may be redeemed at the Company’s option, in whole or in part, on any date that is prior to March 5, 2031 at a redemption price
(calculated by the Company) equal to the greater of (i) 100% of the principal amount of the Securities to be redeemed on the date of redemption or (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of
principal and interest on the Securities to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable
Comparable Government Bond Rate (as defined below) plus 20 basis points, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding the redemption date. 

At any time on or after March 5, 2031, the Company may also redeem some or all of the Securities, at the Company’s option, at a redemption price
equal to 100% of the principal amount of the Securities being redeemed on the date of redemption, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the redemption date. 

“Comparable Government Bond Rate” means, with respect to any redemption date, the price, expressed as a percentage (rounded to three decimal places,
with 0.0005 being rounded upwards), at which the gross redemption yield on the Securities to be redeemed, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross
redemption yield on such Business Day of the Comparable Government Bond (as defined below) on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an
independent investment bank selected by the Company. 
 “Comparable Government Bond” means, in relation to any Comparable Government Bond Rate
calculation, at the discretion of an independent investment bank selected by the Company, a German government bond whose maturity is closest to the maturity of the Securities to be redeemed, or if such independent investment bank in its discretion
determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company, determine to
be appropriate for determining the Comparable Government Bond Rate. 
 “Remaining Scheduled Payments” means, with respect to each Security to be
redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that, if such redemption date is not an Interest Payment Date
with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon to such redemption date. 

Redemption for Tax Reasons 
 If, (a) as a result of
any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of any Relevant Taxing Jurisdiction, or any change in, or amendments to, an official position regarding the application or interpretation of such
laws, regulations or rulings (including by virtue of a holding, judgment or order by a court of competent jurisdiction or a change in published administrative practice), which change or amendment is announced or becomes effective on or after the
date hereof, the Company becomes or, based on a written opinion of independent counsel selected by the Company, is likely to become obligated to pay additional amounts as described herein under the heading “Payment of Additional Amounts”
with respect to the Securities, or (b) any act is taken by a Relevant Taxing Jurisdiction on or after the date hereof whether or not such act is taken with respect to the Company or any affiliate, that results in the Company being required or,
based upon a written opinion of independent counsel selected by the Company, being likely to be required to pay such additional amounts, then the Company may at any time at the Company’s option redeem, in whole, but not in part, the Securities
on not less than 15 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on the Securities being redeemed to, but excluding, the redemption date. 

Notice of redemption will be mailed to Holders of Securities to be redeemed by first-class mail (or otherwise transmitted in accordance with the applicable
procedures of Euroclear/Clearstream) at least 30 and not more than 60 days prior to the date fixed for redemption. Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the
Securities or portions 

  
 C-6 

 
thereof called for redemption. On or before the redemption date, the Company will deposit with the paying agent or set aside, segregate and hold in trust (if the Company is acting as paying
agent), funds sufficient to pay the redemption price of, and accrued and unpaid interest on, the Securities to be redeemed on that redemption date. If fewer than all of the Securities are to be redeemed, the Trustee will select, not more than 60
days prior to the redemption date, the particular Securities or portions thereof for redemption from the outstanding Securities not previously called by such method as the Trustee deems fair and appropriate and in accordance with the applicable
procedures of the common depositary; provided, however, that no Securities of a principal amount of €100,000 or less shall be redeemed in part. 

Except as otherwise specifically provided herein, the Securities may not be redeemed before the Stated Maturity and shall not be entitled to any sinking,
purchase or analogous fund, nor shall the Company be obligated to redeem or purchase the Securities at the option of any Holder thereof. 
 The Indenture
contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities at the time outstanding, evidenced as provided in the Indenture, to execute
supplemental indentures which, if they pertain specifically to the Securities, may add any provisions to or change in any manner or eliminate any of the provisions of the Indenture relating to the Securities or of any supplemental indenture relating
to the Securities or modify in any manner the rights of the Holders of the Securities; provided, however, that no such supplemental indenture shall (i) extend the Stated Maturity of any Security, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of any interest thereon, or reduce any premium payable upon the redemption thereof, or change the currency in which any Security is payable, without the consent of the Holder of each Security so
affected, or (ii) reduce the aforesaid majority in aggregate principal amount of Securities, the consent of the Holders of which is required for any such supplemental indenture relating to the Securities, without the consent of the Holders of
all Securities then outstanding. 
 The Company may terminate all of its obligations under the Securities and the Indenture as it relates to the Securities,
with certain limited exceptions described in the Indenture, by (i) irrevocably depositing in trust with the Trustee money or Federal Republic of Germany obligations (as defined below) (or a combination thereof) sufficient to pay principal of
and any premium or interest on the Securities at Stated Maturity or upon the Securities’ earlier redemption, as the case may be, and (ii) complying with certain other conditions specified in the Indenture. Alternatively, the Company may,
upon the making of such deposit and the satisfaction of certain conditions specified in the Indenture, omit to comply with its covenants in the Indenture relating to creation of secured indebtedness (Section 4.05 of the Indenture), sale and
lease-back transactions (Section 4.06 of the Indenture), and transactions involving a merger or consolidation of the Company into or with any other corporation or a sale, conveyance or lease of the property of the Company substantially as an
entirety to any other corporation or entity (Article Eleven), and such omission shall not be an Event of Default with respect to the Securities. 
 The
Securities are issuable as registered Securities without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. At the office or agency to be maintained by the Company in Chicago, Illinois, United
States or at such other location or locations as may be provided for in the Indenture, and in the manner and subject to the limitations provided in the Indenture, Securities may be exchanged by the Holder thereof without charge except for any tax or
other governmental charge imposed in respect thereof, for a like aggregate principal amount at Stated Maturity of Securities of other authorized denominations. 

Subject to the limitations provided in the Indenture, the Officers’ Certificate and herein, this Security is transferable and the registration of the
transfer hereof may be effected by the registered Holder hereof or by his attorney duly authorized in writing upon due presentment for registration of transfer at the office or agency of the Company in Chicago, Illinois, United States or at such
other location or locations as may be provided for in the Indenture, but only in the manner and subject to the limitations provided in the Indenture, the Officers’ Certificate and herein, without charge except for any tax or other governmental
charge imposed in relation thereto. Upon any such registration of transfer, a new Security or Securities of authorized denominations for a like aggregate principal amount at Stated Maturity will be issued to the transferee in exchange therefor. 

Prior to due presentment for registration of transfer of this Security, the Company, the Trustee, any paying agent and the Security Registrar may deem and
treat the registered Holder hereof as the absolute owner hereof (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon made by any person), for the purpose of receiving payment as herein
provided and for all other purposes, and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary. 

No recourse shall be had for the payment of the principal of or the interest on this Security, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or of any successor corporation, either directly
or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as a condition of and part of the
consideration for the issue hereof, expressly waived and released. 
 The Indenture and this Security shall be governed by and construed in accordance with
the laws of the State of Illinois. 

  
 C-7 

 [FORM OF TRANSFER NOTICE] 

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

 

					
		
	Insert Taxpayer Identification No.	 	
			
	  
	 		 	
	
	Please print or typewrite name and address including zip code of assignee
			
	  
	 		 	

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

							
	Date:	 		 		 	
		 	  
	 		 	  

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

 Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature
guarantor acceptable to the Trustee. 

  
 C-8 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Global Security have been made: 
  

									
	 Date of Exchange
	  	Amount of decrease
in Principal Amount
of this Global Note	  	Amount of increase
in Principal Amount
of this Global Note	  	Principal Amount of
this Global Note
following such
decrease or increase	  	Signature of
authorized signatory
of Trustee or Note
Custodian

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