Document:

Exhibit

KIMBERLY-CLARK CORPORATION
EXECUTIVE SEVERANCE PLAN
As
Amended and Restated
As of December 31, 2017
1.Preamble and Statement of Purpose.  The purpose of this Plan is to assure the Corporation that it will have the continued dedication of, and the availability of objective advice and counsel from, key executives of the Corporation notwithstanding the possibility, threat or occurrence of a change of control of the Corporation.
In the event the Corporation receives any proposal from a third person concerning a possible business combination with the Corporation, or acquisition of the Corporation’s equity securities, or otherwise considers or pursues a transaction that could lead to a change of control, the Committee believes it imperative that the Corporation and the Board of Directors of the Corporation (the “Board”) be able to rely upon key executives to continue in their positions and be available for advice, if requested, without concern that those individuals might be distracted by the personal uncertainties and risks created by such a possibility.
Should the Corporation receive or consider any such proposal or transaction, in addition to their regular duties, such key executives may be called upon to assist in the assessment of the proposal or transaction, to advise management and the Board as to whether the proposal or transaction would be in the best interest of the Corporation and its stockholders, and to take such other actions as the Board might determine to be appropriate.
2.Definitions.  As used in this Plan, the following terms shall have the following respective meanings:
(a)Agreements:  Executive Severance Agreements in substantially the forms approved by the Committee and attached hereto as Exhibit A (for Tier I Participants) or Exhibit B (for Tier II Participants) which provide for participation and payment under this Plan.
(b)Annual Bonus Amount:  For any Participant, the three year average of the annual awards paid to the Participant under the Kimberly-Clark Corporation Executive Officer Achievement Award Program or the Kimberly-Clark Corporation Management Achievement Award Program, as applicable, or any successor or additional plan (the “Bonus Program”).  The three year average of the annual awards paid to the Participant will be determined based on the higher of the three year period consisting of either (i) the year in which the Relevant Date occurred (or, if the bonus is not yet paid as of the Relevant Date, for the preceding year) and the two preceding years or, (ii) the year of the Qualified Termination of Employment (or, if the bonus is not yet paid as of the Qualified Termination of Employment, for the preceding year) and the two preceding years. If a Participant has been paid less than three years of annual awards the Annual Bonus Amount will be determined based on the average dollar amount of the annual awards paid in prior years to the Participant under the Bonus Program.  If a Participant has not received any prior payment of annual awards, the Annual Bonus Amount under the Bonus Program will be determined as follows:
(i)    For a Participant classified at the Corporation’s Grade 1 through 4 level, as defined by the Corporation’s compensation department, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the prior three year period to other employees at the same grade level. 

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(ii)    For a Participant who is an Executive Officer, as that term is used in Rule 3b-7 of the Securities Exchange Act of 1934 as amended from time to time, except for the Chief Executive Officer of the Corporation, (“Executive Officers”), the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the prior three year period to Executive Officers.
(iii)    For the Chief Executive Officer of the Corporation, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the prior three year period to the previous Chief Executive Officer(s) of the Corporation.
Notwithstanding anything in this Plan to the contrary, this definition may be amended at the discretion of the Committee to allow any amounts payable by the Corporation to comply with the definition of performance based compensation under Section 162(m) of the Code or any successor section (including the rules and regulations promulgated thereunder). 
(c)Cause:  The term “Cause” shall mean any of the following:
(i)    the commission by the Participant of a felony;
(ii)    the Participant’s dishonesty, habitual neglect or incompetence in the management of the affairs of the Corporation; or
(iii)    the refusal or failure by the Participant to act in accordance with any lawful directive or order of the Corporation, or an act or failure to act by the Participant which is in bad faith and which is detrimental to the Corporation.
(d)Change of Control:  A “Change of Control” shall be deemed to  have taken place upon the first of the following to occur:  (i) a third person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, acquires shares of the Corporation having 30% or more of the total number of votes that may be cast for the election of directors of the Corporation; or (ii) as the result of any cash tender or exchange offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions (a “Transaction”), the persons who were directors of the Corporation before the Transaction shall cease to constitute a majority of the Board of Directors of the Corporation or any successor to the Corporation.
(e)Code:  The Internal Revenue Code of 1986, as amended.
(f)Committee:  The Management Development and Compensation Committee of the Board.
(g)Corporation:   Kimberly-Clark Corporation and any successor thereto that assumes this Plan and the Agreements pursuant to Section 12 below.
(h)Eligible Executive:  Those key executives of the Corporation and its Subsidiaries who are from time to time designated by the Committee as, or who pursuant to criteria established by the Board or the Committee are, eligible to receive an Agreement.
(i)Equity Plans:  The Kimberly-Clark Corporation 2011 Equity Participation Plan, the Kimberly-Clark Corporation 2001 Equity Participation Plan, and any successor or additional plans under which a Participant receives stock options, restricted stock or other equity-based compensation. 

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(j)Excise Tax:  The excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.
(k)Fair Market Value:  With respect to any publicly traded equity security, the reported closing price of such security on the relevant date as reported on the composite list used by The Wall Street Journal for reporting stock prices, or, if no such sale shall have been made on that day, on the last preceding day on which there was such a sale; and with respect to any other property, the fair market value thereof as determined by the Committee in good faith.
(l)Good Reason:  Termination by the Participant for “Good Reason” shall mean the Separation from Service during the two year time period following the initial existence (without the Participant’s express written consent) of any one of the following conditions:
(i)A material diminution in the Participant’s base compensation.
(ii)A material diminution in the Participant’s authority, duties or responsibilities.
(iii)A material diminution in the authority, duties, or responsibilities of the supervisor to whom the Participant is required to report, including a requirement that a Participant report to a corporate officer or employee instead of reporting directly to the board of directors of the Corporation.
(iv)A material diminution in the budget over which the Participant retains authority.
(v)A material change in the geographic location at which the Participant must perform the services.
(vi)    Any other action or inaction that constitutes a material breach by the Corporation of any agreement under which the Participant provides services.
The Participant must provide notice to the Corporation of the existence of any of the above conditions within a period not to exceed 90 days of the initial existence of the condition, upon the notice of which the Corporation must be provided a period of at least 30 days during which it may remedy the condition and not be required to pay the amount.
The Participant’s right to terminate the Participant’s employment for Good Reason shall not be affected by the Participant’s incapacity due to physical or mental illness.  The Participant’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.
(m)Multiplier:  For a Tier I Participant, two; and for a Tier II Participant, one.
(n)Net After Tax Receipt:  The Value of a Payment, net of all taxes imposed on a Participant with respect thereto under Sections 1 and 4999 of the Code, under Section 3121 of the Code, and any state and local income taxes, determined by applying the highest marginal rate under Section 1 of the Code which applied to the Participant’s taxable income for the immediately preceding taxable year.
(o)Participant:  An Eligible Executive who is a party to an Agreement which has not been terminated in accordance with the terms of this Plan.

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(p)Payment:  Any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of a Participant, whether paid or payable pursuant to this Plan or otherwise.
(q)Qualified Termination of Employment:  The Participant’s  Separation from Service with the Corporation and/or its Subsidiaries either (i) within the two (2) year period following a Change of Control of the Corporation (A) by the Corporation without Cause or, (B) by the Participant with Good Reason, or (ii) by the Corporation without Cause before a Change of Control, if a Change of Control occurs within one year after such Separation from Service and it is reasonably demonstrated by the Participant that such Separation from Service was at the request of a third party that had taken steps reasonably calculated to effect a Change of Control or otherwise arose in connection with or in anticipation of a Change of Control.  A transfer of employment for administrative purposes among the Corporation and its Subsidiaries shall not be deemed a Qualified Termination of Employment, but if such a transfer results in the occurrence of Good Reason, the affected Participant shall have the right to Separate from Service for Good Reason and such separation shall be a Qualified Termination of Employment.
(r)Reduced Amount:  With respect to a Participant, the greatest aggregate amount of Separation Payments which (a) is less than the sum of all Separation Payments and (b) results in aggregate Net After Tax Receipts which are equal to or greater than the Net After Tax Receipts which would result if the Participant were paid the sum of all Separation Payments.
(s)Relevant Date:  In the case of a Qualified Termination of Employment as described in clause (ii) of the definition of “Qualified Termination of Employment,” the date of such Qualified Termination of Employment and, in all other cases, the date of the Change of Control.
(t) Separation from Service:  Termination of employment with the Corporation or a Subsidiary.  A Separation from Service will be deemed to have occurred if the Participant’s services with the Corporation or a Subsidiary is  reduced to an annual rate that is 20 percent or less of the services rendered, on average, during the immediately preceding three years of employment (or if  employed less than three years, such lesser period).
(u)Separation Payment:  With respect to a Participant, a Payment paid or payable to the Participant pursuant to this Plan or an Agreement (disregarding Section 9 of this Plan).
(v)Severance Period:  For a Tier I Participant, the period of two years  beginning on the date of the Qualified Termination of Employment; and for a Tier II Participant, the period of one year beginning on the date of the Qualified Termination of Employment.
(w)Subsidiary:  Any domestic or foreign corporation at least twenty percent (20%) of whose shares normally entitled to vote in electing directors is owned directly or indirectly by the Corporation or by other Subsidiaries, provided, however, that “at least fifty percent (50%)” shall replace “at least twenty percent (20%)” where there is not a legitimate business criteria for using such lower percentage.
(x)Tier I Participant:  A Participant whose Agreement indicates that he or she is a Tier I Participant.

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(y)Tier II Participant:  A Participant whose Agreement indicates that he or she is a Tier II Participant.
(z)Value:  With respect to a Payment, the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, or any other applicable date, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code.
3.Participation; Agreements.  Eligible Executives shall be proffered an Agreement and upon execution and delivery thereof by the Eligible Executive evidencing such Eligible Executive’s agreement not to voluntarily leave the employ of the Corporation and its Subsidiaries and to continue to render services during the pendency of any threatened Change of Control of the Corporation, such Eligible Executive shall become a Participant.  Each Agreement shall indicate whether the Participant to whom it is proffered will be a Tier I Participant or a Tier II Participant.  A Participant shall cease to be a Participant in the Plan upon the termination of the Participant’s Agreement in accordance with its terms.
4.Separation from Service of Participants.  Nothing in this Plan shall be deemed to entitle a Participant to continued employment with the Corporation and its Subsidiaries and the rights of the Corporation to separate a Participant from service shall continue as fully as though this Plan were not in effect, provided that any Qualified Termination of Employment shall entitle the Participant to the benefits herein provided.  In addition, nothing in this Plan shall be deemed to entitle a Participant under this Plan to any rights, or to payments under this Plan, with respect to any plan in which the Participant was not a participant prior to a Qualified Termination of Employment.
5.Payments Upon Qualified Termination of Employment.  In the event of a Qualified Termination of Employment of a Participant, a lump sum cash payment or payments shall be made to such Participant as compensation for services rendered, in an amount or amounts (subject to any applicable payroll or other taxes required to be withheld) equal to the sum of the amounts specified in subsections (a) through (f) below, such payments to be made within 10 days following the later of the date of Separation from Service or the date of the Change of Control except to the extent not yet calculable, in which case such portions shall be paid as soon as practicable following the ability to calculate the amount.  Notwithstanding the foregoing, except as provided in Section 9, all amounts payable under the terms of this Plan shall be payable no later than March 15 of the year following the later of the date of Separation from Service or the date of the Change of Control.  Notwithstanding anything in this Section 5 to the contrary, any amounts which are payable due to amounts the Executive would have been entitled under a deferred compensation plan required to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder, such amounts shall be payable at the date it would have been payable if the Executive were entitled to this amount under the terms of the deferred compensation plan.
(a)    Salary Plus Incentive Compensation.  A lump sum amount equal to the Multiplier times the sum of (a) the Participant’s annual base salary at the rate in effect immediately prior to the Relevant Date or, if higher, immediately before the Qualified Termination of Employment and (b) the Annual Bonus Amount;
(b)    Equity Participation Plan - Option Shares.  (i) Except with respect to incentive stock options outstanding at the effective date of the Participant’s  Agreement for which the Option Price is lower than the Fair Market Value of the Stock at such date, all stock options that were granted to the Participant under any of the Equity Plans, including but not limited to any substitute plans adopted prior to the Relevant Date (or any successor or additional plan), that were outstanding both on the Relevant Date and immediately before the Qualified Termination of Employment, shall vest and become exercisable and the Qualified Termination of Employment of the Participant shall be deemed a retirement for purposes of exercising the 

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stock options under the terms of the Equity Plans, and (ii) notwithstanding the foregoing, with respect to Incentive Stock Options that were outstanding at the effective date of the Participant’s Agreement for which the Option Price is lower than the Fair Market Value of the Stock at such date, and which were forfeited upon the Participant’s Separation from Service, a lump sum amount equal to the excess of (I) the aggregate Fair Market Value on the date of termination of the shares of common stock of the Corporation or other equity security then subject to such Incentive Stock Options over (II) the aggregate option price for such shares or other equity security;
(c)    Restricted Stock.  A lump sum amount equal to the sum of (i) with respect to restricted shares and/or restricted share units granted to the Participant under any of the Equity Plans that were outstanding but not vested on the Relevant Date where such vesting of restricted shares and/or restricted share units was not determined by the attainment of performance goals, and which are forfeited as a result of the Participant's Separation from Service, an amount equal to the Fair Market Value of an equivalent number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) on the date of Separation from Service, and (ii) with respect to restricted shares and/or restricted share units granted to the Participant under any of the Equity Plans that were outstanding but not vested on the Relevant Date where such vesting of restricted shares and/or restricted share units was determined by the attainment of performance goals, and which are forfeited as a result of the Participant's Separation from Service, an amount equal to the Average PRSU Payout multiplied by the Fair Market Value of an equivalent number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) based on the number of PRSU grants which are forfeited due to the Qualified Termination of Employment. The Participant will also be paid an amount equal to the equivalent of the amount of any dividends and other distributions which would have been paid on the number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) determined based on the Average PRSU Payout determined under this section. The forfeited restricted shares and/or restricted share units determined by the attainment of performance goals according to a schedule determined by the Committee will not be paid. For purposes of this subsection (c) the Average PRSU Payout shall mean the three year average of the target percentage paid with respect to the restricted shares and/or restricted share units determined by the attainment of performance goals (the “PRSU’s”) awards paid to the Participant under the Equity Plans, or any successor or additional plan.  The three year average of the PRSU’s paid to the Participant will be determined based on the higher of two target percentage averages computed during alternative three year periods consisting of either (i) the year in which the Relevant Date occurred (or, if the award is not yet paid as of the Relevant Date, for the preceding year) and the two preceding years or, (ii) the year of the Qualified Termination of Employment (or, if the award is not yet paid as of the Qualified Termination of Employment, for the preceding year) and the two preceding years. If a Participant has been paid less than three years of PRSU’s the three year average of the PRSU’s paid to the Participant will be determined based on the average target percentage of the PRSU’s paid in prior years to the Participant under the Equity Plans, or any successor or additional plan.  If a Participant has not received any prior payment of PRSU’s, the Average PRSU Payout under the Equity Plans, or any successor or additional plan, will be determined as follows:

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(i)    For a Participant classified at the Corporation’s Grade 1 through 4 level, as defined by the Corporation’s compensation department, the Average PRSU Payout shall be calculated based on the prior three year average  target percentage of the PRSU’s paid to other employees at the same grade level. 
(ii)    For a Participant who is an Executive Officer, the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to Executive Officers.  
(iii)    For the Chief Executive Officer of the Corporation, the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to the previous Chief Executive Officer(s) of the Corporation.  
Notwithstanding anything in this Plan to the contrary, this definition may be amended at the discretion of the Committee to allow any amounts payable by the Corporation to comply with the definition of performance based compensation under Section 162(m) of the Code or any successor section (including the rules and regulations promulgated thereunder);
(d)    Successor or Additional Stock Appreciation Right, Incentive Compensation, and Bonus Plan.  A lump sum amount equal to the payment to which the Participant would have been entitled had all amounts awarded or granted to the Participant, vested or matured, under any stock appreciation right, incentive compensation, and bonus plans, which are adopted after the effective date of the Participant’s Agreement and in which the Participant participates immediately prior to the Relevant Date, including but not limited to any substitute plans adopted prior to the Relevant Date (or any successor or additional plan), which had not vested or matured as of the date of Separation from Service and will not vest or mature as a result of the Participant’s Separation from Service, such payment to be determined as though such award or grant had vested or matured on the date of termination of the Participant’s employment; 
(e)    401(k) and Profit Sharing Plan. A lump sum amount equal to (a) in the case of a Tier I Participant, the Participant’s maximum matching contribution and an assumed target profit sharing contribution under the Kimberly-Clark Corporation 401(k) and Profit Sharing  Plan (or any successor or additional plans) and the Kimberly-Clark Corporation Retirement Contribution Excess Benefit Program (or any successor or additional plans) (individually the “EBP” and collectively, the “401(k) and Profit Sharing Plan”) to which the Participant would have been entitled if he had remained employed by the Corporation for the Severance Period at the rate of annual compensation specified in Section 5(a) above except that the Annual Bonus Amount shall be treated as earned for the year in which separation occurred and the balance of the Severance Period and no award actually earned in, and paid for, the year in which termination occurred shall be considered, plus (b) for all Participants who participate in the Kimberly-Clark International Retirement Plan and who do not participate in the 401(k) and Profit Sharing  Plan, a lump sum amount equal to the Participant’s maximum cash contribution under the Kimberly-Clark International Retirement Plan to which the Participant would have been entitled if he had remained employed by the Corporation for the Severance Period at the rate of annual compensation specified in Section 5(a) above except that the Annual Bonus Amount shall be treated as earned for the year in which separation occurred and the balance of the 

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Severance Period and no award actually earned in, and paid for, the year in which termination occurred shall be considered; and 
(f)    Medical and Dental Benefits.  A lump sum amount equal to (a) the amount of the monthly premiums that the Participant would be required to pay, if he or she elected “COBRA” continuation coverage under the medical and dental plans of the Corporation in which the Participant was participating immediately before the Qualified Termination of Employment, based upon the premium rates in effect as of the date of the Qualified Termination of Employment, times (b) for a Tier I Participant, 24, and for a Tier II Participant, 12.
6.Other Terms and Conditions.  The Agreement to be entered into pursuant to this Plan shall contain such other terms, provisions and conditions not inconsistent with this Plan as shall be determined by the Committee.  Where appearing in this Plan or the Agreement, the masculine shall include the feminine and the plural shall include the singular, unless the context clearly indicates otherwise. Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of section 409A of the Code, to the extent applicable, or an exemption thereunder, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code.  Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with section 409A of the Code or an exemption thereunder and, if necessary, any such provision shall be deemed amended to comply with section 409A of the Code and regulations thereunder.  If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.  All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under section 409A of the Code.  For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments shall be treated as the right to a series of separate payments.  In no event may Participant, directly or indirectly, designate the calendar year of payment.  Further, to the extent that any amounts payable under this Agreement constitutes non-qualified deferred compensation subject to section 409A of the Code, notwithstanding any provision of this Agreement to the contrary, (i) in no event shall the Participant’s execution of the Release, directly or indirectly, result in the Participant’s designation of the calendar year of payment, and (ii) if such non-qualified deferred compensation payment that is subject to the Participant’s execution of the Release could be made in more than one taxable year, payment shall commence in the later taxable year.  To the maximum extent permitted under section 409A of the Code, the severance benefits payable under this Agreement are intended to comply with the “short-term deferral exception” under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii).  If Participant is a “specified employee” (as that term is used in section 409A of the Code and regulations and other guidance issued thereunder) on the date of Participant’s separation from service, any severance benefits payable under this Agreement that constitute non-qualified deferred compensation subject to section 409A of the Code shall be delayed until the earlier of (i) the first business day following the six-month anniversary of the date of Participant’s separation from service, or (ii) the date of Participant’s death.  On the earlier of (x) the first business day following the six-month anniversary of the date of Participant’s separation from service, or (y) Participant’s death, the Corporation shall pay Participant (or Participant’s estate or beneficiaries) a lump-sum payment equal to all payments deferred pursuant to the preceding sentence. No action or failure to act pursuant to this Subsection shall subject the Corporation nor any affiliate thereof to any claim, liability or 

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expense, and neither the Corporation nor any affiliate thereof shall have any obligation to indemnify or otherwise protect the Participant from the obligation to pay any taxes pursuant to section 409A of the Code.
7.Non-Assignability.  Each Participant’s rights under this Plan shall be non-transferable except by will or by the laws of descent and distribution.
8.Unfunded Plan.  The Plan shall be unfunded.  Neither the Corporation nor the Board shall be required to segregate any assets that may at any time be represented by benefits under the Plan.  Neither the Corporation nor the Board shall be deemed to be a trustee of any amounts to be paid under the Plan.  Any liability of the Corporation to any Participant with respect to any benefit shall be based solely upon any contractual obligations created by the Plan and the Agreement; no such obligation shall be deemed to be secured by any pledge or any encumbrance on any property of the Corporation.
9.Certain Reduction of Payments by the Corporation.  
(a)Anything in this Plan to the contrary notwithstanding, in the event Deloitte & Touche LLP or such other certified public accounting firm designated by the Corporation (the “Accounting Firm”) shall determine that receipt of all Payments would subject a Participant to tax under Section 4999 of the Code, it shall determine whether some amount of Separation Payments would meet the definition of a “Reduced Amount.”  If the Accounting Firm determines that there is a Reduced Amount, the aggregate Separation Payments shall be reduced to such Reduced Amount.  All fees payable to the Accounting Firm with respect to this Section 9 shall be paid solely by the Corporation.
(b)If the Accounting Firm determines that aggregate Separation Payments should be reduced to the Reduced Amount, the Separation Payments that are not required to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder shall be eliminated or reduced (as long as after such election the Value of the aggregate Separation Payments equals the Reduced Amount) and shall notify the Participant promptly of such election.  All determinations made by the Accounting Firm under this Section shall be binding upon the Corporation and the Participant and shall be made as promptly as practicable. Following such determination, the Corporation shall pay to or distribute for the benefit of the Participant such Separation Payments as are then due to the Participant under Section 5 of this Plan and shall promptly pay to or distribute for the benefit of the Participant in the future such Separation Payments as become due to the Participant under this Plan. Notwithstanding the prior sentence, such determination by the Accounting Firm shall be made within 60 days, and the payment by the Corporation shall be made within 90 days, of the later of a Separation from Service of the Executive or the date of the Change of Control (or, if earlier, March 15 of the year following the later of the date of Separation from Service or the date of the Change of Control).
(c)While it is the intention of the Corporation to reduce the amounts payable or distributable to a Participant hereunder only if the aggregate Net After Tax Receipts to the Participant would thereby be increased, as a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Corporation to or for the benefit of a Participant pursuant to this Plan which should not have been so paid or  distributed (“Overpayment”) or that additional amounts which will have not been paid or distributed by the Corporation to or for the benefit of a Participant pursuant to this Plan could have been so 

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paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder.  In the event that the Accounting Firm determines that an Overpayment has been made, based upon the assertion of a deficiency by the Internal Revenue Service against the Corporation or the Participant which the Accounting Firm believes has a high probability of success, any such benefit of a Participant shall be treated for all purposes as a loan to the Participant which the Participant shall repay to the Corporation together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no such loan shall be deemed to have been made and no amount shall be payable by a Participant to the Corporation if and to the extent such deemed loan and payment would not either reduce the amount on which the Participant is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes.  In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Corporation to or for the benefit of the Participant together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.  Notwithstanding anything in this Plan or any Agreement to the contrary, the payment will be conditioned upon the Overpayment or Underpayment meeting the requirements of Section 409A of the Code and the regulations promulgated thereunder.
10.No Duty to Mitigate.  In no event shall any Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Participant under any of the provisions of this Plan, and such amounts shall not be reduced whether or not the Participant obtains other employment.  In the event of a Qualified Termination of Employment, the Participant shall not be entitled to receive any severance benefits that would otherwise be available to the Participant under the Kimberly-Clark Corporation Severance Pay Plan (or any successor or additional plan), or any other severance program sponsored by the Corporation and/or any of its Subsidiaries and the aggregate Separation Payment shall be reduced by the amount of any other severance payments otherwise payable to the Participant, whether under local law, any severance plan or offer letter or other individual agreement.
11.Termination and Amendment of this Plan.  The Committee shall have power at any time, in its discretion, to amend, abandon or terminate this Plan, in whole or in part; except that no amendment, abandonment or termination shall impair or abridge the obligations of the Corporation under any Agreements previously entered into pursuant to this Plan except as expressly permitted by the terms of such Agreements.  
12.Successors.  The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its business and/or assets to assume expressly and agree to perform this Plan and the Agreements in the same manner and to the same extent that the Corporation would be required to perform them if no such succession had taken place.  
13.Effective Date.  This amended and restated Plan shall become effective on December 31, 2017.

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Exhibit A
Tier I Agreement
KIMBERLY-CLARK CORPORATION
Executive Severance Agreement 
As of December 31, 2017
AGREEMENT made effective as of the 31st day of December, 2017, between   KIMBERLY-CLARK CORPORATION, a Delaware corporation, and ______ (the “Executive”).
W I T N E S S E T H:
WHEREAS, the Committee has approved the Corporation entering into severance agreements with key executives of the Corporation and its subsidiaries pursuant to the Executive Severance Plan (the “Plan”); and
WHEREAS, the Executive is a key executive of the Corporation or one of its subsidiaries and has been selected by the Committee as a key executive to be an Executive under the Plan; and
WHEREAS, should the Corporation receive or learn of any proposal by or from a third person concerning a possible business combination with, or acquisition of equity securities of, the Corporation, or should the Corporation otherwise consider or pursue a transaction that could lead to a change of control, the Committee believes it imperative that the Corporation and the Board be able to rely upon the Executive to continue in the Executive’s position, and that they be able to receive and rely upon the Executive’s advice, if they request it, as to the best interests of the Corporation and its stockholders, without concern that the Executive might be distracted by the personal uncertainties and risks created by such a possibility; and
WHEREAS, should the Corporation receive or consider any such proposal or transaction, in addition to the Executive’s regular duties, the Executive may be called upon to assist in the assessment of the proposal or transaction, advise management and the Board as to whether the proposal or transaction would be in the best interest of the Corporation and its stockholders, and to take such other actions as the Board might determine to be appropriate;
NOW, THEREFORE, to assure the Corporation that it will have the continued dedication of the Executive and the availability of the Executive’s advice and counsel notwithstanding the possibility, threat or occurrence of such a proposal or transaction, and to induce the Executive to remain in the employ of the Corporation, and for other good and valuable consideration, the Corporation and the Executive agree as follows:
In the event a third person, in order to effect a Change of Control (as hereinafter defined), begins a tender or exchange offer, circulates a proxy to stockholders, or takes other steps, or in the event the Corporation considers taking, or decides to take, steps that are expected to lead to a Change of Control, the Executive agrees that the Executive will not voluntarily leave the employ of the Corporation, and will render the services contemplated in the recitals to this Agreement and the Plan, until the efforts by the third party or the Corporation to effect a Change of Control are abandoned or until a Change of Control has occurred.
1.Lump-Sum Cash Payment.  In the event of a Qualified Termination of Employment (as hereinafter defined) the Corporation will pay to the Executive, as compensation for services rendered to the 

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Corporation a lump-sum cash amount or amounts (subject to any applicable payroll or other taxes required to be withheld) calculated by adding the amounts specified in subparagraphs (a) through (f) below, such payments to be made within 10 days following the later of the date of Separation from Service or the date of the Change of Control, except to the extent not yet calculable, in which case such portions shall be paid as soon as practicable following the ability to calculate the amount.  Notwithstanding the foregoing, except as provided in Paragraph 5, all amounts payable under the terms of the Plan shall be payable no later than March 15 of the year following the later of the date of Separation from Service or the date of the Change of Control.  Notwithstanding anything in this Paragraph 1 to the contrary, any amounts which are payable due to amounts the Executive would have been entitled under a deferred compensation plan required to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder, such amounts shall be payable at the date it would have been payable if the Executive were entitled to this amount under the terms of the deferred compensation plan.
(a)Salary plus Incentive Compensation.  A lump sum amount equal to two times the sum of (a) the Executive’s annual base salary at the rate in effect immediately prior to the Relevant Date or, if higher, immediately before the Qualified Termination of Employment and (b) the Annual Bonus Amount;
(b)Equity Participation Plan Option Shares.  (a) Except with respect to incentive stock options outstanding at the effective date of the Executive’s Agreement for which the Option Price is lower than the Fair Market Value of the Stock at such date, all stock options that were granted to the Executive under any of the Equity Plans, including but not limited to any substitute plans adopted prior to the Relevant Date (or any successor or additional plan), that were outstanding both on the Relevant Date and immediately before the Qualified Termination of Employment, shall vest and become exercisable and the Qualified Termination of Employment of the Executive shall be deemed a retirement for purposes of exercising the stock options under the terms of the Equity Plans, and (b) notwithstanding the foregoing, with respect to Incentive Stock Options that were outstanding at the effective date of the Executive’s Agreement for which the Option Price is lower than the Fair Market Value of the Stock at such date, and which were forfeited upon the Executive’s Separation from Service, a lump sum amount equal to the excess of (I) the aggregate Fair Market Value on the date of separation of the shares of common stock of the Corporation or other equity security then subject to such Incentive Stock Options over (II) the aggregate option price for such shares or other equity security;
(c)Restricted Stock.  A lump sum amount equal to the sum of (i) with respect to restricted shares and/or restricted share units granted to the Executive under any of the Equity Plans that were outstanding but not vested on the Relevant Date, where such vesting of restricted shares and/or restricted share units was not determined by the attainment of performance goals, and which are forfeited as a result of the Executive’s Separation from Service, an amount equal to the Fair Market Value of an equivalent number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) on the date of Separation of Service, and (ii)  with respect to restricted shares and/or restricted share units granted to the Executive under any of the Equity Plans that were outstanding but not vested on the Relevant Date where such vesting of restricted shares and/or restricted share units was determined 

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by the attainment of performance goals, and which are forfeited as a result of the Executive's Separation from Service, an amount equal to the Average PRSU Payout multiplied by the Fair Market Value of an equivalent number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) based on the number of PRSU grants which are forfeited due to the Qualified Termination of Employment. The Executive will also be paid an amount equal to the equivalent of the amount of any dividends and other distributions which would have been paid on the number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) determined based on the Average PRSU Payout determined under this section.  The forfeited restricted shares and/or restricted share units determined by the attainment of performance goals according to a schedule determined by the Committee will not be paid. For purposes of this subsection (iii) the Average PRSU Payout shall mean the three year average of the target percentage paid with respect to the restricted shares and/or restricted share units determined by the attainment of performance goals (the “PRSU’s”) awards paid to the Executive under the Equity Plans, or any successor or additional plan.  The three year average of the PRSU’s paid to the Executive will be determined based on the higher of two target percentage averages computed during alternative three year periods consisting of either (i) the year in which the Relevant Date occurred (or, if the award is not yet paid as of the Relevant Date, for the preceding year) and the two preceding years or, (ii) the year of the Qualified Termination of Employment (or, if the award is not yet paid as of the Qualified Termination of Employment, for the preceding year) and the two preceding years.  If an Executive has been paid less than three years of PRSU’s the three year average of the PRSU’s paid to the Executive will be determined based on the average target percentage of the PRSU’s paid in prior years to the Executive under the Equity Plans, or any successor or additional plan.  If an Executive has not received any prior payment of PRSU’s, the Average PRSU Payout under the Equity Plans, or any successor or additional plan, will be determined as follows:
(1)    For an Executive classified at the Corporation’s Grade 1 through 4 level, as defined by the Corporation’s compensation department, the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to other employees at the same grade level.
(2)    For an Executive who is an Executive Officer, as that term is used in Rule 3b-7 of the Securities Exchange Act of 1934 as amended from time to time, except for the Chief Executive Officer of the Corporation, (“Executive Officers”), the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to the Executive Officer.  
(3)    For the Chief Executive Officer of the Corporation, the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to the previous Chief Executive Officer(s) of the Corporation.  
Notwithstanding anything in the Plan to the contrary, this definition may be amended at the discretion of the Committee to allow any amounts payable by the 

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Corporation to comply with the definition of performance based compensation under section 162(m) of the Code or any successor section (including the rules and regulations promulgated thereunder);  
(d)Successor or Additional Stock Appreciation Right, Incentive Compensation, and Bonus Plan.  A lump sum amount equal to the payment to which the Executive would have been entitled had all amounts awarded or granted to the Executive, vested or matured, under any stock appreciation right, incentive compensation, and bonus plans,  which are adopted after the effective date of the Executive’s Agreement and in which the Executive participates immediately prior to the Relevant Date, including but not limited to any substitute plans adopted prior to the Relevant Date (or any successor or additional plan), which had not vested or matured as of the date of Separation of Service and will not vest or mature as a result of the Executive’s Separation from Service, such payment to be determined as though such award or grant had vested or matured on the date of the Executive’s Separation from Service;  
(e)401(k) and Profit Sharing Plan.  A lump sum amount equal to (a) the Executive’s maximum matching contribution and an assumed target profit sharing contribution under the Kimberly-Clark Corporation 401(k) and Profit Sharing  Plan (or any successor or additional plans) and the Kimberly-Clark Corporation Retirement Contribution Excess Benefit Program (or any successor or additional plans) (individually the “EBP” and collectively, the “401(k) and Profit Sharing  Plan”) to which the Executive would have been entitled if he had remained employed by the Corporation for the Severance Period at the rate of annual compensation specified in subparagraph (a) of Paragraph 1 above except that the Annual Bonus Amount shall be treated as earned for the year in which separation of service occurred and the balance of the Severance Period and no award actually earned in, and paid for, the year in which separation of service occurred shall be considered, plus (b) for any Executive who participates in the Kimberly-Clark International Retirement Plan and who does not participate in the 401(k) and Profit Sharing  Plan, a lump sum amount equal to the Executive’s maximum cash contribution under the Kimberly-Clark International Retirement Plan to which the Executive would have been entitled if he had remained employed by the Corporation for the Severance Period at the rate of annual compensation specified in Section 5(a) above except that the Annual Bonus Amount shall be treated as earned for the year in which separation occurred and the balance of the Severance Period and no award actually earned in, and paid for, the year in which termination occurred shall be considered; and
(f)Medical and Dental Benefits.  A lump sum amount equal to (a) the amount of the monthly premiums that the Executive would be required to pay, if he or she elected “COBRA” continuation coverage under the medical and dental plans of the Corporation in which the Executive was participating immediately before the Qualified Termination of Employment, based upon the premium rates in effect as of the date of the Qualified Termination of Employment, times (b) 24.
2.Other Matters.
(a)Severance Pay Plan Payments.  In the event of a Qualified Termination of Employment, the Executive shall not be entitled to receive any severance benefits that would otherwise be available to 

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the Executive under the Kimberly-Clark Corporation Severance Pay Plan (or any successor or additional plan), or any other severance program sponsored by the Corporation and/or any of its Subsidiaries and the aggregate Separation Payment shall be reduced by the amount of any other severance payments otherwise payable to the Executive, whether under local law, any severance plan or offer letter or other individual agreement.  
(b)Participation in Employee Benefit Plans.  The Executive’s participation in savings, retirement, profit sharing, stock option, and/or stock appreciation rights plans of the Corporation and/or any of its Subsidiaries shall continue only through the last day of the Executive’s employment.  Any terminating distributions and/or vested rights under such plans shall be governed by the terms of those respective plans.  Furthermore, the Executive’s participation in any insurance plans of the Corporation and rights to any other fringe benefits shall except as otherwise specifically provided in such plans or corporate policy, terminate as of the close of the Executive’s last day of employment, except to the extent specifically provided to the contrary in this Agreement.  Nothing in this Agreement shall be deemed to entitle the Executive to any rights, or to payments under this Agreement, with respect to any employee benefit plan in which the Executive was not a participant prior to a Qualified Termination of Employment.
(c)Continuing Obligations.  The Executive shall retain in confidence any confidential information known to the Executive concerning the Corporation and its business so long as such information is not publicly disclosed.
(d)No Guarantee of Employment.  Nothing in this Agreement shall be deemed to entitle the Executive to continued employment with the Corporation or any of its Subsidiaries and the rights of the Corporation and its Subsidiaries to terminate the employment of the Executive shall continue as fully as if this Agreement were not in effect; provided that any Qualified Termination of Employment shall entitle the Executive to the benefits herein provided.
(e)Agreement to Comply with Section 409A of the Code.  Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of section 409A of the Code, to the extent applicable, or an exemption thereunder, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code.  Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with section 409A of the Code or an exemption thereunder and, if necessary, any such provision shall be deemed amended to comply with section 409A of the Code and regulations thereunder.  If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.  All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under section 409A of the Code.  For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments shall be treated as the right to a series of separate payments.  In no event may Executive, directly or indirectly, designate the calendar year of payment.  Further, to the extent that 

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any amounts payable under this Agreement constitutes non-qualified deferred compensation subject to section 409A of the Code, notwithstanding any provision of this Agreement to the contrary, (i) in no event shall the Executive’s execution of the Release, directly or indirectly, result in the Executive’s designation of the calendar year of payment, and (ii) if such non-qualified deferred compensation payment that is subject to the Executive’s execution of the Release could be made in more than one taxable year, payment shall commence in the later taxable year.  To the maximum extent permitted under section 409A of the Code, the severance benefits payable under this Agreement are intended to comply with the “short-term deferral exception” under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii).  If Executive is a “specified employee” (as that term is used in section 409A of the Code and regulations and other guidance issued thereunder) on the date of Executive’s separation from service, any severance benefits payable under this Agreement that constitute non-qualified deferred compensation subject to section 409A of the Code shall be delayed until the earlier of (i) the first business day following the six-month anniversary of the date of Executive’s separation from service, or (ii) the date of Executive’s death.  On the earlier of (x) the first business day following the six-month anniversary of the date of Executive’s separation from service, or (y) Executive’s death, the Corporation shall pay Executive (or Executive’s estate or beneficiaries) a lump-sum payment equal to all payments deferred pursuant to the preceding sentence. No action or failure to act pursuant to this Subsection shall subject the Corporation nor any affiliate thereof to any claim, liability or expense, and neither the Corporation nor any affiliate thereof shall have any obligation to indemnify or otherwise protect the Executive from the obligation to pay any taxes pursuant to section 409A of the Code.
3.Definition of Change of Control.  For the purpose of this Agreement, a “Change of Control” shall be deemed to have taken place upon the first of the following to occur after the date of this Agreement:  (i) a third person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, acquires shares of the Corporation having 30% or more of the total number of votes that may be cast for the election of directors of the Corporation; or (ii) as the result of any cash tender or exchange offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions (a “Transaction”), the persons who were directors of the Corporation before the Transaction shall cease to constitute a majority of the Board of Directors of the Corporation or any successor to the Corporation. 
4.Definition of Subsidiary.  For purposes of this Agreement, a “Subsidiary” shall mean any domestic or foreign corporation at least twenty percent (20%) of whose shares normally entitled to vote in electing directors is owned directly or indirectly by the Corporation or by other Subsidiaries, provided, however, that “at least fifty percent (50%)” shall replace “at least twenty percent (20%)” where there is not a legitimate business criteria for using such lower percentage. 
5.Certain Reduction of Payments by the Corporation.
(a)Anything in this Agreement to the contrary notwithstanding, in the event Deloitte & Touche LLP or such other certified public accounting firm designated by the Corporation (the “Accounting Firm”) shall determine that receipt of all Payments would subject the Executive to tax under Section 

6

4999 of the Code, it shall determine whether some amount of Separation Payments would meet the definition of a “Reduced Amount.”  If the Accounting Firm determines that there is a Reduced Amount, the aggregate Separation Payment shall be reduced to such Reduced Amount.  All fees payable to the Accounting Firm with respect to this Paragraph 5 shall be paid solely by the Corporation.
(b)If the Accounting Firm determines that aggregate Separation Payments should be reduced to the Reduced Amount, the Separation Payments that are not required to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder shall be eliminated or reduced (as long as after such election the Value of the aggregate Separation Payments equals the Reduced Amount).  All determinations made by the Accounting Firm under this paragraph shall be binding upon the Corporation and the Executive, and shall be made as promptly as practicable. Following such determination, the Corporation shall pay to or distribute for the benefit of the Executive such Separation Payments as are then due to the Executive under this Agreement, and shall promptly pay to or distribute for the benefit of the Executive in the future such Separation Payments as become due to the Executive under this Agreement.  Notwithstanding the prior sentence, such determination by the Accounting Firm shall be made within 60 days, and the payment by the Corporation shall be made within 90 days, of the later of a Separation from Service of the Executive or the date of the Change of Control (or, if earlier, March 15 of the year following the later of the date of Separation from Service or the date of the Change of Control).
(c)While it is the intention of the Corporation to reduce the amounts payable or distributable to the Executive hereunder only if the aggregate Net After Tax Receipts to the Executive would thereby be increased, as a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Corporation to or for the benefit of the Executive pursuant to this Agreement which should not have been so paid or distributed (“Overpayment”), or that additional amounts which will have not been paid or distributed by the Corporation to or for the benefit of the Executive pursuant to this Agreement could have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm determines that an Overpayment has been made, based upon the assertion of a deficiency by the Internal Revenue Service against the Corporation or the Executive which the Accounting Firm believes has a high probability of success, any such benefit of the Executive shall be treated for all purposes as a loan to the Executive which the Executive shall repay to the Corporation, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no such loan shall be deemed to have been made and no amount shall be payable by the Executive to the Corporation if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code, or generate a refund of such taxes.  In the event the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Corporation to or for the benefit of the Executive together with interest at the applicable federal rate provided for in 

7

Section 7872(f)(2) of the Code.  Notwithstanding anything in this Agreement to the contrary payment will be conditioned upon the Overpayment or Underpayment meeting the requirements of Section 409A of the Code and the regulations promulgated thereunder.
6.Definitions.
(a)Annual Bonus Amount:  The three year average of the annual awards paid to the Executive under the Kimberly-Clark Corporation Executive Officer Achievement Award Program or the Kimberly-Clark Corporation Management Achievement Award Program, as applicable, or any successor or additional plan (the “Bonus Program”).  The three year average of the annual awards paid to the Executive will be determined based on the higher of the three year period consisting of either (i) the year in which the Relevant Date occurred (or, if the bonus is not yet paid as of the Relevant Date, for the preceding year) and the two preceding years or, (ii) the year of the Qualified Termination of Employment (or, if the bonus is not yet paid as of the Qualified Termination of Employment, for the preceding year) and the two preceding years. If an Executive has been paid less than three years of annual awards the Annual Bonus Amount will be determined based on the average dollar amount of the annual awards paid in prior years to the Executive under the Bonus Program.  If an Executive has not received any prior payment of annual awards, the Annual Bonus Amount under the Bonus Program will be determined as follows:
(i)    For an Executive classified at the Corporation’s Grade 1 through 4 level, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the three year period to other employees at the same grade level.
(ii)    For an Executive Officer, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the three year period to Executive Officers.
(iii)    For the Chief Executive Officer of the Corporation, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over a three year period to the previous Chief Executive Officer(s) of the Corporation.
Notwithstanding anything in this Agreement to the contrary, this definition may be amended at the discretion of the Committee consistent with any amendment of the definition of Annual Bonus Amount under the Plan to allow any amounts payable by the Corporation to comply with the definition of performance based compensation under section 162(m) of the Code or any successor section (including the rules and regulations promulgated thereunder). 
(b)Board:  The Board of Directors of the Corporation.
(c)Cause:  The term “Cause” shall mean any of the following:
(i)the commission by the Executive of a felony;
(ii)the Executive’s dishonesty, habitual neglect or incompetence in the management of the affairs of the Corporation; or

8

(iii)the refusal or failure by the Executive to act in accordance with any lawful directive or order of the Corporation, or an act or failure to act by the Executive which is in bad faith and which is detrimental to the Corporation.
(d)Code:  The Internal Revenue Code of 1986, as amended.
(e)Committee: The Management Development and Compensation Committee of the Board of Directors of the Corporation.
(f)Corporation:  Kimberly-Clark Corporation and any successor thereto that assumes the Plan and the Agreements pursuant to Paragraph 7.(e) below.
(g)Equity Plans:  The Kimberly-Clark Corporation 2011 Equity Participation Plan, the Kimberly-Clark Corporation 2001 Equity Participation Plan, and any successor or additional plans under which the Executive receives stock options, restricted stock or other equity-based compensation. 
(h)Excise Tax:  The excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.
(i)Fair Market Value:  With respect to any publicly traded equity security, the reported closing price of such security on the relevant date as reported on the composite list used by The Wall Street Journal for reporting stock prices, or, if no such sale shall have been made on that day, on the last preceding day on which there was such a sale; and with respect to any other property, the fair market value thereof as determined by the Committee in good faith.
(j)Good Reason:  Termination by the Executive for “Good Reason” shall mean the separation from service during the two year time period following the initial existence (without the Executive’s express written consent) of any one of the following conditions:
(i)    A material diminution in the Executive’s base compensation.
(ii)    A material diminution in the Executive’s authority, duties, or responsibilities.
(iii)    A material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a requirement that a Executive report to a corporate officer or employee instead of reporting directly to the board of directors of the Corporation.
(iv)    A material diminution in the budget over which the Executive retains authority.
(v)    A material change in the geographic location at which the Executive must perform the services.
(vi)    Any other action or inaction that constitutes a material breach by the Corporation of any agreement under which the Executive provides services.
The Executive must provide notice to the Corporation of the existence of any of the above conditions within a period not to exceed 90 days of the initial existence of the condition, upon the 

9

notice of which the Corporation must be provided a period of at least 30 days during which it may remedy the condition and not be required to pay the amount.
The Executive’s right to terminate the Executive’s employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness.  The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.
(k)Net After Tax Receipt:  The Value of a Payment, net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code, under Section 3121 of the Code, and any state and local income taxes, determined by applying the highest marginal rate under Section 1 of the Code which applied to the Executive’s taxable income for the immediately preceding taxable year.
(l)Qualified Termination of Employment:  The Executive’s Separation from Service with the Corporation and/or its Subsidiaries either (i) within the two (2) year period following a Change of Control of the Corporation (A) by the Corporation without Cause or, (B) by the Executive with Good Reason, or (ii) by the Corporation without Cause before a Change of Control, if a Change of Control occurs within one year after such Separation from Service and it is reasonably demonstrated by the Executive that such Separation from Service was at the request of a third party that had taken steps reasonably calculated to effect a Change of Control or otherwise arose in connection with or in anticipation of a Change of Control.  A transfer of employment for administrative purposes among the Corporation and its Subsidiaries shall not be deemed a Qualified Termination of Employment, but if such a transfer results in the occurrence of Good Reason, the Executive shall have the right to terminate employment for Good Reason and such separation shall be a Qualified Termination of Employment.
(m)Reduced Amount:  The greatest aggregate amount of Separation Payments which (a) is less than the sum of all Separation Payments and (b) results in aggregate Net After Tax Receipts which are equal to or greater than the Net After Tax Receipts which would result if the Executive were paid the sum of all Separation Payments.
(n)Relevant Date:  In the case of a Qualified Termination of Employment as described in clause (ii) of the definition of “Qualified Termination of Employment,” the date of such Qualified Termination of Employment and, in all other cases, the date of the Change of Control.
(o)Separation from Service.  Termination of employment with the Corporation or a Subsidiary.  A Separation from Service will be deemed to have occurred if the Executive’s services with the Corporation or a Subsidiary is reduced to an annual rate that is 20 percent or less of the services rendered, on average, during the immediately preceding three years of employment (or if employed less than three years, such lesser period).
(p)Separation Payment:  A Payment paid or payable to the Executive pursuant to the Plan or this Agreement.

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(q)Severance Period:  The period of two years beginning on the date of the Qualified Termination of Employment.
(r)Value:  With respect to a Payment, the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, or any other applicable date, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code.
7.General.
(a)No Duty to Mitigate.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of the Plan, and such amounts shall not be reduced whether or not the Executive obtains other employment.  
(b)Indemnification.  If litigation shall be brought to enforce or interpret any provision contained herein, the Corporation hereby agrees to indemnify the Executive for the Executive’s reasonable attorney’s fees and disbursements incurred in such litigation, and hereby agrees to pay prejudgment interest on any money judgment obtained by the Executive calculated at Citibank’s (or any successor entity) prime rate of interest in effect from time to time from the date that payment(s) to the Executive should have been made under this Agreement.  The reimbursement of an attorney’s fees and disbursements incurred in such litigation will be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.
(c)Payment Obligations Absolute.  The Corporation’s obligation to pay the Executive the compensation and to make the arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including without limitation, any set-off, counterclaim, recoupment, defense or other right which the Corporation may have against the Executive or anyone else.  All amounts payable by the Corporation hereunder shall be paid without notice or demand.  Except as expressly provided herein, the Corporation waives all rights which it may now have or may hereafter have conferred upon it, by statute or otherwise, to terminate, cancel or rescind this Agreement in whole or in part.  Each and every payment made hereunder by the Corporation shall be final and the Corporation will not seek to recover all or any part of such payment from the Executive or from whosoever may be entitled thereto, for any reason whatsoever.
(d)Unfunded Obligation.  The obligation of the Corporation under this Agreement shall be unfunded.  The Corporation shall not be required to segregate any assets that may at any time be represented by benefits under this Agreement.  The Corporation shall not be deemed to be a trustee of any amounts to be paid under this Agreement.  Any liability of the Corporation to the Executive with respect to any benefit shall be based solely upon any contractual obligations created hereunder; no such obligation shall be deemed to be secured by any pledge or any encumbrance on any property of the Corporation.
(e)Successors.  This Agreement shall be binding upon and inure to the benefit of the Executive and the Executive’s estate, and the Corporation and any successor of the Corporation, but neither this Agreement nor any rights arising hereunder may be assigned or pledged by the Executive.  The 

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Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its business and/or assets to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform it if no such succession had taken place.  
(f)Severability.  Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
(g)Controlling Law.  This Agreement shall in all respects be governed by, and construed in accordance with, the laws of the State of Delaware.  Where appearing in this Agreement, the masculine shall include the feminine and the plural shall include the singular, unless the context clearly indicates otherwise.
(h)Entire Agreement.  The Executive and the Corporation acknowledge that upon its effective date, this Agreement supersedes any and all prior agreements between the Executive and the Corporation under the Plan as in effect at this time or at any prior time.  From and after the Relevant Date, except as specifically provided herein, this Agreement shall supersede any other agreement between the parties with respect to severance pay and benefits.  Notwithstanding the foregoing, any previously executed noncompetition agreement shall continue in effect following the execution of this Agreement and the Relevant Date.
(i)Termination.  This Agreement shall terminate on the third anniversary of the effective date hereof unless either (1) a Change of Control occurs on or before such third anniversary or (2) the Committee determines to extend this Agreement for an additional three-year term or such shorter period as it determines to be appropriate.  Notwithstanding the foregoing, if at the time when this Agreement would otherwise terminate, a third party has taken steps reasonably calculated to effect a Change of Control or a Change of Control is otherwise under consideration, then this Agreement shall automatically continue in effect until (A) a Change of Control occurs, in which event this Agreement shall thereafter remain in effect in accordance with its terms, or (B) the Board makes a good faith determination that in its opinion, the efforts by the third party or the Corporation to effect a Change of Control have been abandoned, at which time the Agreement shall terminate unless it is extended pursuant to clause (2) of the preceding sentence.  

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IN WITNESS WHEREOF, the parties have executed this Agreement on the ______ day of ________________________, 20____.

	
					
	 
	 
	 
	 

	 
	 
	 
	 
	Executive

	
					
	 
	 
	 
	KIMBERLY-CLARK CORPORATION

	 
	 
	 
	 
	 

	 
	 
	By:
	 

	 
	 
	 
	 
	 

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Exhibit B
Tier II Agreement
KIMBERLY-CLARK CORPORATION
Executive Severance Agreement 
As of December 31, 2017
AGREEMENT made effective as of the 31st day of December, 2017, between      KIMBERLY-CLARK CORPORATION, a Delaware corporation, and _____ (the “Executive”).
W I T N E S S E T H:
WHEREAS, the Committee has approved the Corporation entering into severance agreements with key executives of the Corporation and its subsidiaries pursuant to the Executive Severance Plan (the “Plan”); and
WHEREAS, the Executive is a key executive of the Corporation or one of its subsidiaries and has been selected by the Committee as a key executive to be an Executive under the Plan; and
WHEREAS, should the Corporation receive or learn of any proposal by or from a third person concerning a possible business combination with, or acquisition of equity securities of, the Corporation, or should the Corporation otherwise consider or pursue a transaction that could lead to a change of control, the Committee believes it imperative that the Corporation and the Board be able to rely upon the Executive to continue in the Executive’s position, and that they be able to receive and rely upon the Executive’s advice, if they request it, as to the best interests of the Corporation and its stockholders, without concern that the Executive might be distracted by the personal uncertainties and risks created by such a possibility; and
WHEREAS, should the Corporation receive or consider any such proposal or transaction, in addition to the Executive’s regular duties, the Executive may be called upon to assist in the assessment of the proposal or transaction, advise management and the Board as to whether the proposal or transaction would be in the best interest of the Corporation and its stockholders, and to take such other actions as the Board might determine to be appropriate;
NOW, THEREFORE, to assure the Corporation that it will have the continued dedication of the Executive and the availability of the Executive’s advice and counsel notwithstanding the possibility, threat or occurrence of such a proposal or transaction, and to induce the Executive to remain in the employ of the Corporation, and for other good and valuable consideration, the Corporation and the Executive agree as follows:
In the event a third person, in order to effect a Change of Control (as hereinafter defined), begins a tender or exchange offer, circulates a proxy to stockholders, or takes other steps, or in the event the Corporation considers taking, or decides to take, steps that are expected to lead to a Change of Control, the Executive agrees that the Executive will not voluntarily leave the employ of the Corporation, and will render the services contemplated in the recitals to this Agreement and the Plan, until the efforts by the third party or the Corporation to effect a Change of Control are abandoned or until a Change of Control has occurred.
1.Lump-Sum Cash Payment.  In the event of a Qualified Termination of Employment (as hereinafter defined) the Corporation will pay to the Executive, as compensation for services rendered to the Corporation a lump-sum cash amount or amounts (subject to any applicable payroll or other taxes required to be 

1

withheld) calculated by adding the amounts specified in subparagraphs (a) through (f) below, such payments to be made within 10 days following the later of the date of Separation from Service or the date of the Change of Control, except to the extent not yet calculable, in which case such portions shall be paid as soon as practicable following the ability to calculate the amount.  Notwithstanding the foregoing, except as provided in Paragraph 5, all amounts payable under the terms of the Plan shall be payable no later than March 15 of the year following the later of the date of Separation from Service or the date of the Change of Control.  Notwithstanding anything in this Paragraph 1 to the contrary, any amounts which are payable due to amounts the Executive would have been entitled under a deferred compensation plan required to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder, such amounts shall be payable at the date it would have been payable if the Executive were entitled to this amount under the terms of the deferred compensation plan. 
(a)Salary plus Incentive Compensation.  A lump sum amount equal to the sum of (a) the Executive’s annual base salary at the rate in effect immediately prior to the Relevant Date or, if higher, immediately before the Qualified Termination of Employment and (b) the Annual Bonus Amount;
(b)Equity Participation Plan - Option Shares.  (a) Except with respect to incentive stock options outstanding at the effective date of the Executive’s Agreement for which the Option Price is lower than the Fair Market Value of the Stock at such date,  all stock options that were granted to the Executive under any of the Equity Plans, including but not limited to any substitute plans adopted prior to the Relevant Date (or any successor or additional plan),  that were outstanding both on the Relevant Date and immediately before the Qualified Termination of Employment, shall vest and become exercisable and the Qualified Termination of Employment of the Executive shall be deemed a retirement for purposes of exercising the stock options under the terms of the Equity Plans, and (b) notwithstanding the foregoing, with respect to Incentive Stock Options that were outstanding at the effective date of the Executive’s Agreement for which the Option Price is lower than the Fair Market Value of the Stock at such date, and which were forfeited upon the Executive’s Separation from Service, a lump sum amount equal to the excess of (I) the aggregate Fair Market Value on the date of separation of the shares of common stock of the Corporation or other equity security then subject to such Incentive Stock Options over (II) the aggregate option price for such shares or other equity security;
(c)Restricted Stock.  A lump sum amount equal to the sum of (i) with respect to restricted shares and/or restricted share units granted to the Executive under any of the Equity Plans that were outstanding but not vested on the Relevant Date, where such vesting of restricted shares and/or restricted share units was not determined by the attainment of performance goals, and which are forfeited as a result of the Executive’s Separation from Service, an amount equal to the Fair Market Value of an equivalent number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) on the date of Separation of Service, and (ii)  with respect to restricted shares and/or restricted share units granted to the Executive under any of the Equity Plans that were outstanding but not vested on the Relevant Date where such vesting of restricted shares and/or restricted share units was determined by the attainment of performance goals, and which are forfeited as a result of the Executive's 

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Separation from Service, an amount equal to the Average PRSU Payout multiplied by the Fair Market Value of an equivalent number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) based on the number of PRSU grants which are forfeited due to the Qualified Termination of Employment. The Executive will also be paid an amount equal to the equivalent of the amount of any dividends and other distributions which would have been paid on the number of shares of common stock of the Corporation (or such other equity security into which the restricted shares and/or restricted share units has been converted) determined based on the Average PRSU Payout determined under this section.  The forfeited restricted shares and/or restricted share units determined by the attainment of performance goals according to a schedule determined by the Committee will not be paid. For purposes of this subsection (iii) the Average PRSU Payout shall mean the three year average of the target percentage paid with respect to the restricted shares and/or restricted share units determined by the attainment of performance goals (the “PRSU’s”) awards paid to the Executive under the Equity Plans, or any successor or additional plan.  The three year average of the PRSU’s paid to the Executive will be determined based on the higher of two target percentage averages computed during alternative three year periods consisting of either (i) the year in which the Relevant Date occurred (or, if the award is not yet paid as of the Relevant Date, for the preceding year) and the two preceding years or, (ii) the year of the Qualified Termination of Employment (or, if the award is not yet paid as of the Qualified Termination of Employment, for the preceding year) and the two preceding years.  If an Executive has been paid less than three years of PRSU’s the three year average of the PRSU’s paid to the Executive will be determined based on the average target percentage of the PRSU’s paid in prior years to the Executive under the Equity Plans, or any successor or additional plan.  If an Executive has not received any prior payment of PRSU’s, the Average PRSU Payout under the Equity Plans, or any successor or additional plan, will be determined as follows:
(1)    For an Executive classified at the Corporation’s Grade 1 through 4 level, as defined by the Corporation’s compensation department, the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to other employees at the same grade level.
(2)    For an Executive who is an Executive Officer, as that term is used in Rule 3b-7 of the Securities Exchange Act of 1934 as amended from time to time, except for the Chief Executive Officer of the Corporation, (“Executive Officers”), the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to Executive Officers.
(3)    For the Chief Executive Officer of the Corporation, the Average PRSU Payout shall be calculated based on the prior three year average target percentage of the PRSU’s paid to the previous Chief Executive Officer(s) of the Corporation.
Notwithstanding anything in the Plan to the contrary, this definition may be amended at the discretion of the Committee to allow any amounts payable by the Corporation to comply with the 

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definition of performance based compensation under section 162(m) of the Code or any successor section (including the rules and regulations promulgated thereunder);
(d)Successor or Additional Stock Appreciation Right, Incentive Compensation, and Bonus Plan.  A lump sum amount equal to the payment to which the Executive would have been entitled had all amounts awarded or granted to the Executive, vested or matured, under any stock appreciation right, incentive compensation, and bonus plans,  which are adopted after the effective date of the Executive’s Agreement and in which the Executive participates immediately prior to the Relevant Date, including but not limited to any substitute plans adopted prior to the Relevant Date (or any successor or additional plan), which had not vested or matured as of the date of Separation from Service and will not vest or mature as a result of the Executive’s Separation from Service, such payment to be determined as though such award or grant had vested or matured on the date of the Executive’s Separation from Service; and 
(e)Medical and Dental Benefits.  A lump sum amount equal to (a) the amount of the monthly premiums that the Executive would be required to pay, if he or she elected “COBRA” continuation coverage under the medical and dental plans of the Corporation in which the Executive was participating immediately before the Qualified Termination of Employment, based upon the premium rates in effect as of the date of the Qualified Termination of Employment, times (b) 12.
2.Other Matters.
(a)Severance Pay Plan Payments.  In the event of a Qualified Termination of Employment, the Executive shall not be entitled to receive any severance benefits that would otherwise be available to the Executive under the Kimberly-Clark Corporation Severance Pay Plan (or any successor or additional plan), or any other severance program sponsored by the Corporation and/or any of its Subsidiaries and the aggregate Separation Payment shall be reduced by the amount of any other severance payments otherwise payable to the Executive, whether under local law, any severance plan or offer letter or other individual agreement.  
(b)Participation in Employee Benefit Plans.  The Executive’s participation in savings, retirement, profit sharing, stock option, and/or stock appreciation rights plans of the Corporation and/or any of its Subsidiaries shall continue only through the last day of the Executive’s employment.  Any terminating distributions and/or vested rights under such plans shall be governed by the terms of those respective plans.  Furthermore, the Executive’s participation in any insurance plans of the Corporation and rights to any other fringe benefits shall except as otherwise specifically provided in such plans or corporate policy, terminate as of the close of the Executive’s last day of employment, except to the extent specifically provided to the contrary in this Agreement.  Nothing in this Agreement shall be deemed to entitle the Executive to any rights, or to payments under this Agreement, with respect to any employee benefit plan in which the Executive was not a participant prior to a Qualified Termination of Employment.
(c)Continuing Obligations.  The Executive shall retain in confidence any confidential information known to the Executive concerning the Corporation and its business so long as such information is not publicly disclosed.

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(d)No Guarantee of Employment.  Nothing in this Agreement shall be deemed to entitle the Executive to continued employment with the Corporation or any of its Subsidiaries and the rights of the Corporation and its Subsidiaries to terminate the employment of the Executive shall continue as fully as if this Agreement were not in effect; provided that any Qualified Termination of Employment shall entitle the Executive to the benefits herein provided.
(e)Agreement to Comply with Section 409A of the Code.  Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of section 409A of the Code, to the extent applicable, or an exemption thereunder, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code.  Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with section 409A of the Code or an exemption thereunder and, if necessary, any such provision shall be deemed amended to comply with section 409A of the Code and regulations thereunder.  If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.  All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under section 409A of the Code.  For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments shall be treated as the right to a series of separate payments.  In no event may Executive, directly or indirectly, designate the calendar year of payment.  Further, to the extent that any amounts payable under this Agreement constitutes non-qualified deferred compensation subject to section 409A of the Code, notwithstanding any provision of this Agreement to the contrary, (i) in no event shall the Executive’s execution of the Release, directly or indirectly, result in the Executive’s designation of the calendar year of payment, and (ii) if such non-qualified deferred compensation payment that is subject to the Executive’s execution of the Release could be made in more than one taxable year, payment shall commence in the later taxable year.  To the maximum extent permitted under section 409A of the Code, the severance benefits payable under this Agreement are intended to comply with the “short-term deferral exception” under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii).  If Executive is a “specified employee” (as that term is used in section 409A of the Code and regulations and other guidance issued thereunder) on the date of Executive’s separation from service, any severance benefits payable under this Agreement that constitute non-qualified deferred compensation subject to section 409A of the Code shall be delayed until the earlier of (i) the first business day following the six-month anniversary of the date of Executive’s separation from service, or (ii) the date of Executive’s death.  On the earlier of (x) the first business day following the six-month anniversary of the date of Executive’s separation from service, or (y) Executive’s death, the Corporation shall pay Executive (or Executive’s estate or beneficiaries) a lump-sum payment equal to all payments deferred pursuant to the preceding sentence. No action or failure to act pursuant to this Subsection shall subject the Corporation nor any affiliate thereof to any claim, liability or expense, and neither the Corporation 

5

nor any affiliate thereof shall have any obligation to indemnify or otherwise protect the Executive from the obligation to pay any taxes pursuant to section 409A of the Code.
3.Definition of Change of Control.  For the purpose of this Agreement, a “Change of Control” shall be deemed to have taken place upon the first of the following to occur after the date of this Agreement:  (i) a third person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, acquires shares of the Corporation having 30% or more of the total number of votes that may be cast for the election of directors of the Corporation; or (ii) as the result of any cash tender or exchange offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions (a “Transaction”), the persons who were directors of the Corporation before the Transaction shall cease to constitute a majority of the Board of Directors of the Corporation or any successor to the Corporation.
4.Definition of Subsidiary.  For purposes of this Agreement, a “Subsidiary” shall mean any domestic or foreign corporation at least twenty percent (20%) of whose shares normally entitled to vote in electing directors is owned directly or indirectly by the Corporation or by other Subsidiaries, provided, however, that “at least fifty percent (50%)” shall replace “at least twenty percent (20%)” where there is not a legitimate business criteria for using such lower percentage. 
5.Certain Reduction of Payments by the Corporation .
(a)Anything in this Agreement to the contrary notwithstanding, in the event Deloitte & Touche LLP or such other certified public accounting firm designated by the Corporation (the “Accounting Firm”) shall determine that receipt of all Payments would subject the Executive to tax under Section 4999 of the Code, it shall determine whether some amount of Separation Payments would meet the definition of a “Reduced Amount.”  If the Accounting Firm determines that there is a Reduced Amount, the aggregate Separation Payment shall be reduced to such Reduced Amount.  All fees payable to the Accounting Firm with respect to this Paragraph 5 shall be paid solely by the Corporation.
(b)If the Accounting Firm determines that aggregate Separation Payments should be reduced to the Reduced Amount, the Separation Payments that are not required to meet the requirements of Section 409A of the Code and the regulations promulgated thereunder shall be eliminated or reduced (as long as after such election the Value of the aggregate Separation Payments equals the Reduced Amount).  All determinations made by the Accounting Firm under this paragraph shall be binding upon the Corporation and the Executive, and shall be made as promptly as practicable. Following such determination, the Corporation shall pay to or distribute for the benefit of the Executive such Separation Payments as are then due to the Executive under this Agreement, and shall promptly pay to or distribute for the benefit of the Executive in the future such Separation Payments as become due to the Executive under this Agreement. Notwithstanding the prior sentence, such determination by the Accounting Firm shall be made within 60 days, and the payment by the Corporation shall be made within 90 days, of the later of a Separation from Service of the Executive or the date of the Change of Control.   
While it is the intention of the Corporation to reduce the amounts payable or distributable to the Executive hereunder only if the aggregate Net After Tax Receipts to the Executive would thereby be 

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increased, as a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Corporation to or for the benefit of the Executive pursuant to this Agreement which should not have been so paid or distributed (“Overpayment”), or that additional amounts which will have not been paid or distributed by the Corporation to or for the benefit of the Executive pursuant to this Agreement could have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm determines that an Overpayment has been made, based upon the assertion of a deficiency by the Internal Revenue Service against the Corporation or the Executive which the Accounting Firm believes has a high probability of success, any such benefit of the Executive shall be treated for all purposes as a loan to the Executive which the Executive shall repay to the Corporation, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no such loan shall be deemed to have been made and no amount shall be payable by the Executive to the Corporation if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code, or generate a refund of such taxes.  In the event the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Corporation to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.
(c)Notwithstanding anything in this Agreement to the contrary, payment will be conditioned upon the Overpayment or Underpayment meeting the requirements of Section 409A of the Code and the regulations promulgated thereunder.
6.Definitions.
(a)Annual Bonus Amount:  The three year average of the annual awards paid to the Executive under the Kimberly-Clark Corporation Executive Officer Achievement Award Program or the Kimberly-Clark Corporation Management Achievement Award Program, as applicable, or any successor or additional plan (the “Bonus Program”).  The three year average of the annual awards paid to the Executive will be determined based on the higher of the three year period consisting of either (i) the year in which the Relevant Date occurred (or, if the bonus is not yet paid as of the Relevant Date, for the preceding year) and the two preceding years or, (ii) the year of the Qualified Termination of Employment (or, if the bonus is not yet paid as of the Qualified Termination of Employment, for the preceding year) and the two preceding years. If an Executive has been paid less than three years of annual awards the Annual Bonus Amount will be determined based on the average dollar amount of the annual awards paid in prior years to the Executive under the Bonus Program.  If an Executive has not received any prior payment of annual awards, the Annual Bonus Amount under the Bonus Program will be determined as follows:

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(1)    For an Executive classified at the Corporation’s Grade 1 through 4 level, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the three year period to other employees at the same grade level.
(2)    For an Executive Officer, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over the three year period to Executive Officers.
(3)    For the Chief Executive Officer of the Corporation, the Annual Bonus Amount shall be based on the average dollar amount of the annual awards paid over a three year period to the previous Chief Executive Officer(s) of the Corporation.
Notwithstanding anything in this Agreement to the contrary, this definition may be amended at the discretion of the Committee consistent with any amendment of the definition of Annual Bonus Amount under the Plan to allow any amounts payable by the Corporation to comply with the definition of performance based compensation under section 162(m) of the Code or any successor section (including the rules and regulations promulgated thereunder).
(b)Board:  The Board of Directors of the Corporation.
(c)Cause:  The term “Cause” shall mean any of the following:
(i)the commission by the Executive of a felony;
(ii)the Executive’s dishonesty, habitual neglect or incompetence in the management of the affairs of the Corporation; or
(iii)the refusal or failure by the Executive to act in accordance with any lawful directive or order of the Corporation, or an act or failure to act by the Executive which is in bad faith and which is detrimental to the Corporation.
(d)Code:  The Internal Revenue Code of 1986, as amended.
(e)Committee: The Management Development and Compensation Committee of the Board of Directors of the Corporation.
(f)Corporation:  Kimberly-Clark Corporation and any successor thereto that assumes the Plan and the Agreements pursuant to Paragraph 7.(e) below.
(g)Equity Plans:  The Kimberly-Clark Corporation 2011 Equity Participation Plan, the Kimberly-Clark Corporation 2001 Equity Participation Plan, and any successor or additional plans under which the Executive receives stock options, restricted stock or other equity-based compensation. 
(h)Excise Tax:  The excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.
(i)Fair Market Value:  With respect to any publicly traded equity security, the reported closing price of such security on the relevant date as reported on the composite list used by The Wall Street Journal for reporting stock prices, or, if no such sale shall have been made on that day, on the last 

8

preceding day on which there was such a sale; and with respect to any other property, the fair market value thereof as determined by the Committee in good faith.
(j)Good Reason:  Termination by the Executive for “Good Reason” shall mean the separation from service during the two year time period following the initial existence (without the Executive’s express written consent) of any one of the following conditions:
(a)    A material diminution in the Executive’s base compensation.
(b)    A material diminution in the Executive’s authority, duties, or responsibilities.
(c)    A material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a requirement that a Executive report to a corporate officer or employee instead of reporting directly to the board of directors of the Corporation.
(d)    A material diminution in the budget over which the Executive retains authority.
(e)    A material change in the geographic location at which the Executive must perform the services.
(f)    Any other action or inaction that constitutes a material breach by the Corporation of any agreement under which the Executive provides services.
The Executive must provide notice to the Corporation of the existence of any of the above conditions within a period not to exceed 90 days of the initial existence of the condition, upon the notice of which the Corporation must be provided a period of at least 30 days during which it may remedy the condition and not be required to pay the amount.
The Executive’s right to terminate the Executive’s employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness.  The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.
(k)Net After Tax Receipt:  The Value of a Payment, net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code, under Section 3121 of the Code, and any state and local income taxes, determined by applying the highest marginal rate under Section 1 of the Code which applied to the Executive’s taxable income for the immediately preceding taxable year.
(l)Qualified Termination of Employment:  The Executive’s Separation from Service with the Corporation and/or its Subsidiaries either (i) within the two (2) year period following a Change of Control of the Corporation (A) by the Corporation without Cause or (B) by the Executive with Good Reason, or (ii) by the Corporation without Cause before a Change of Control, if a Change of Control occurs within one year after such Separation from Service and it is reasonably demonstrated by the Executive that such Separation from Service was at the request of a third party that had taken steps reasonably calculated to effect a Change of Control or otherwise arose in connection with or in anticipation of a Change of Control.  A transfer of employment for administrative purposes among 

9

the Corporation and its Subsidiaries shall not be deemed a Qualified Termination of Employment, but if such a transfer results in the occurrence of Good Reason, the Executive shall have the right to terminate employment for Good Reason and such separation shall be a Qualified Termination of Employment.
(m)Reduced Amount:  The greatest aggregate amount of Separation Payments which (a) is less than the sum of all Separation Payments and (b) results in aggregate Net After Tax Receipts which are equal to or greater than the Net After Tax Receipts which would result if the Executive were paid the sum of all Separation Payments.
(n)Relevant Date:  In the case of a Qualified Termination of Employment as described in clause (ii) of the definition of “Qualified Termination of Employment,” the date of such Qualified Termination of Employment and, in all other cases, the date of the Change of Control.
(o)Separation from Service:  Termination of employment with the Corporation or a Subsidiary.  A Separation from Service will be deemed to have occurred if the Executive’s services with the Corporation or a Subsidiary is reduced to an annual rate that is 20 percent or less of the services rendered, on average, during the immediately preceding three years of employment (or if employed less than three years, such lesser period).
(p)Separation Payment:  A Payment paid or payable to the Executive pursuant to the Plan or this Agreement. 
(q)Severance Period:  The period of one year beginning on the date of the Qualified Termination of Employment.
(r)Value:  With respect to a Payment, the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code or any other applicable date, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code.
7.General.
(a)No Duty to Mitigate.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of the Plan, and such amounts shall not be reduced whether or not the Executive obtains other employment.  
(b)Indemnification.  If litigation shall be brought to enforce or interpret any provision contained herein, the Corporation hereby agrees to indemnify the Executive for the Executive’s reasonable attorney’s fees and disbursements incurred in such litigation, and hereby agrees to pay prejudgment interest on any money judgment obtained by the Executive calculated at Citibank’s (or any successor entity) prime rate of interest in effect from time to time from the date that payment(s) to the Executive should have been made under this Agreement.  The reimbursement of an attorney’s fees and disbursements incurred in such litigation will be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.

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(c)Payment Obligations Absolute.  The Corporation’s obligation to pay the Executive the compensation and to make the arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including without limitation, any set-off, counterclaim, recoupment, defense or other right which the Corporation may have against the Executive or anyone else.  All amounts payable by the Corporation hereunder shall be paid without notice or demand.  Except as expressly provided herein, the Corporation waives all rights which it may now have or may hereafter have conferred upon it, by statute or otherwise, to terminate, cancel or rescind this Agreement in whole or in part.  Each and every payment made hereunder by the Corporation shall be final and the Corporation will not seek to recover all or any part of such payment from the Executive or from whosoever may be entitled thereto, for any reason whatsoever.
(d)Unfunded Obligation.  The obligation of the Corporation under this Agreement shall be unfunded.  The Corporation shall not be required to segregate any assets that may at any time be represented by benefits under this Agreement.  The Corporation shall not be deemed to be a trustee of any amounts to be paid under this Agreement.  Any liability of the Corporation to the Executive with respect to any benefit shall be based solely upon any contractual obligations created hereunder; no such obligation shall be deemed to be secured by any pledge or any encumbrance on any property of the Corporation.
(e)Successors.  This Agreement shall be binding upon and inure to the benefit of the Executive and the Executive’s estate, and the Corporation and any successor of the Corporation, but neither this Agreement nor any rights arising hereunder may be assigned or pledged by the Executive.  The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of its business and/or assets to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform it if no such succession had taken place.  
(f)Severability.  Any provision in this Agreement which is prohibited or unenforceable in any jurisdiction shall as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
(g)Controlling Law.  This Agreement shall in all respects be governed by, and construed in accordance with, the laws of the State of Delaware.  Where appearing in this Agreement, the masculine shall include the feminine and the plural shall include the singular, unless the context clearly indicates otherwise.
(h)Entire Agreement.  The Executive and the Corporation acknowledge that upon its effective date, this Agreement supersedes any and all prior agreements between the Executive and the Corporation under the Plan as in effect at this time or at any prior time.  From and after the Relevant Date, except as specifically provided herein, this Agreement shall supersede any other agreement between the parties with respect to severance pay and benefits.  Notwithstanding the foregoing, any 

11

previously executed noncompetition agreement shall continue in effect following the execution of this Agreement and the Relevant Date.
(i)Termination.  This Agreement shall terminate on the third anniversary of the effective date hereof unless either (1) a Change of Control occurs on or before such third anniversary or (2) the Committee or the Chief Executive Officer of the Corporation determines to extend this Agreement for an additional three-year term or such shorter period as the Committee or the Chief Executive Officer of the Corporation determines to be appropriate.  Notwithstanding the foregoing, if at the time when this Agreement would otherwise terminate, a third party has taken steps reasonably calculated to effect a Change of Control or a Change of Control is otherwise under consideration, then this Agreement shall automatically continue in effect until (A) a Change of Control occurs, in which event this Agreement shall thereafter remain in effect in accordance with its terms, or (B) the Board makes a good faith determination that in its opinion, the efforts by the third party or the Corporation to effect a Change of Control have been abandoned, at which time the Agreement shall terminate unless it is extended pursuant to clause (2) of the preceding sentence.  

IN WITNESS WHEREOF, the parties have executed this Agreement on the ______ day of ________________________, 20____.

	
					
	 
	 
	 
	 

	 
	 
	 
	 
	Executive

	
					
	 
	 
	 
	KIMBERLY-CLARK CORPORATION

	 
	 
	 
	 
	 

	 
	 
	By:
	 

	 
	 
	 
	 
	 

12EXHIBIT 4-y

 

[FORM
OF FACE OF NOTE]

FLOATING RATE SENIOR NOTE

 

	REGISTERED	[PRINCIPAL AMOUNT] 
	No.   FLR	CUSIP:

 

Unless this certificate is
presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) to the issuer
or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede &
Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to
Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered
owner hereof, Cede & Co., has an interest herein.1

 

THIS NOTE HAS NOT BEEN
AND WILL NOT BE REGISTERED UNDER THE FINANCIAL INSTRUMENTS AND EXCHANGE ACT OF JAPAN (LAW NO.25 OF 1948, AS AMENDED, THE
“FIEA”). THIS NOTE MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN JAPAN OR TO OR FOR THE ACCOUNT OR
BENEFIT OF ANY RESIDENT OF JAPAN (AS DEFINED UNDER ITEM 5, PARAGRAPH 1, ARTICLE 6 OF THE FOREIGN EXCHANGE AND FOREIGN TRADE
ACT (LAW NO. 228 OF 1949, AS AMENDED)) OR TO OTHERS FOR RE-OFFERING OR RESALE, DIRECTLY OR INDIRECTLY, IN JAPAN OR TO OR FOR
THE ACCOUNT OR BENEFIT OF A RESIDENT OF JAPAN, EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF AND
OTHERWISE IN COMPLIANCE WITH THE FIEA AND ANY OTHER APPLICABLE LAWS, REGULATIONS AND MINISTERIAL GUIDELINES OF
JAPAN.2

 

 

1 Applies only if this Note is a Registered
Global Security. 

2 If this Note is offered in Japan or denominated
in Japanese Yen, appropriate legends need to be added.

 

     

     

    

MORGAN
STANLEY FLOATING

RATE
SENIOR NOTE 

SENIOR GLOBAL MEDIUM-TERM
NOTE, SERIES I

 

	BASE RATE:	ORIGINAL ISSUE DATE:	MATURITY DATE:
	INDEX MATURITY:	INTEREST ACCRUAL DATE:	INTEREST PAYMENT DATE(S):
	SPREAD (PLUS OR MINUS):	INITIAL INTEREST RATE:	INTEREST PAYMENT PERIOD:
	SPREAD MULTIPLIER:	INITIAL INTEREST RESET DATE:	INTEREST RESET PERIOD:
	REPORTING SERVICE:	MAXIMUM INTEREST RATE:	INTEREST RESET DATE(S):
	INDEX CURRENCY:	MINIMUM INTEREST RATE:	CALCULATION AGENT:
	EXCHANGE RATE AGENT: [MORGAN STANLEY & CO. LLC]	INITIAL REDEMPTION DATE:	SPECIFIED CURRENCY:
	 	INITIAL REDEMPTION PERCENTAGE:	IF
    SPECIFIED CURRENCY OTHER THAN U.S. DOLLARS, OPTION TO ELECT PAYMENT IN U.S. DOLLARS: [YES]3
	 	ANNUAL REDEMPTION PERCENTAGE REDUCTION:	DESIGNATED CMT REUTERS PAGE:
	 	OPTIONAL REPAYMENT DATE(S):	DESIGNATED CMT MATURITY INDEX:
	 	REDEMPTION
    NOTICE PERIOD: 4	 
	 	TAX
    REDEMPTION AND PAYMENT OF ADDITIONAL AMOUNTS: [NO]5	 
	 	IF YES, STATE INITIAL OFFERING DATE: [N/A]	
        OTHER PROVISIONS6:

         

        The Holder of this Note and the owner of
        any beneficial interest herein, by their purchase of this Note or such beneficial interest herein, are hereby deemed to
        have consented to any amendment to this Note that conforms the terms of this Note to the terms as set forth in Pricing
        Supplement No.______ dated ____[, as amended by Amendment No.thereto dated]7, and the prospectus
        supplement [, any index supplement or other supplement] and prospectus referred to therein, each related to this Note
        and filed with the Securities and Exchange Commission, and the Trustee is hereby authorized to enter into any such amendment
        to this Note without any further consent thereto of the Holder hereof or of such owner.

         

     2

     

    

 

3 Applies if this is a Registered Global
Security, unless arrangements are made with DTC outside of existing Letters of Representations, as has been the case in the past.

4 Applicable if other than 30-60 calendar
days. If this is a Registered Global Security, minimum notice period is [10] calendar days [current DTC limitation].

5 Default provision
is NO. Indicate YES only for certain notes issued on a global basis if specified in pricing supplement.

6 Specify if this Note is subject to contingent
payment and, if so, the manner of calculating such payment.

7 Applicable if there is an amendment to
the pricing supplement filed with the Securities and Exchange Commission prior to settlement of this Note.

 

     3

     

    

Morgan Stanley, a
Delaware corporation (together with its successors and assigns, the “Issuer”), for value received, hereby
promises to pay _____ to, or registered assignees, the principal [sum of _____]8 [amount specified in Schedule
A hereto]9 [the amount of cash, as determined in accordance with the provisions set forth under “[Payment
at Maturity]” above, due with respect to the principal sum of _____]10 on the Maturity Date specified
above (except to the extent redeemed or repaid prior to maturity) and to pay interest thereon from and including the
Interest Accrual Date specified above at a rate per annum equal to the Initial Interest Rate specified above or determined
in accordance with the provisions specified on the reverse hereof until the Initial Interest Reset Date specified above,
and thereafter at a rate per annum determined in accordance with the provisions specified on the reverse hereof until
the principal hereof is paid or duly made available for payment. Unless such rate is otherwise specified on the face hereof,
the Calculation Agent shall determine the Initial Interest Rate for this Note in accordance with the provisions specified on
the reverse hereof. The Issuer will pay interest in arrears weekly, monthly, quarterly, semiannually or annually as
specified above as the Interest Payment Period on each Interest Payment Date (as specified above), commencing with the first
Interest Payment Date next succeeding the Interest Accrual Date specified above, and on the Maturity Date (or any redemption
or repayment date); provided, however, that if the Interest Accrual Date occurs between a Record Date, as defined below, and
the next succeeding Interest Payment Date, interest payments will commence on the second Interest Payment Date succeeding
the Interest Accrual Date to the registered holder of this Note on the Record Date with respect to such second Interest
Payment Date; and provided, further, that if an Interest Payment Date (other than the Maturity Date or redemption or
repayment date) would fall on a day that is not a Business Day, as defined on the reverse hereof, such Interest Payment Date
shall be the following day that is a Business Day, except that if the Base Rate specified above is LIBOR or EURIBOR and such
next Business Day falls in the next calendar month, such Interest Payment Date shall be the immediately preceding day that is
a Business Day; and provided, further, that if the Maturity Date or redemption or repayment date would fall on a day that is
not a Business Day, such payment shall be made on the following day that is a Business Day and no interest shall accrue for
the period from and after such Maturity Date or redemption or repayment date.

 

Interest on this Note will
accrue from and including the most recent date to which interest has been paid or duly provided for, or, if no interest has been
paid or duly provided for, from and including the Interest Accrual Date, until but excluding the date the principal hereof has
been paid or duly made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, subject to certain exceptions described herein, be paid to the person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the date [one Business Day prior to such Interest Payment Date]11
[15 calendar days prior to such Interest Payment Date (whether or not a Business Day)]12 (each such date, a “Record
Date”); provided, however, that interest payable at maturity (or any redemption or repayment date) shall be payable to the
person to whom the principal hereof shall be payable.

 

Payment of the
principal of, premium, if any, and interest on this Note due at maturity (or any redemption or repayment date), unless this
Note is denominated in a Specified Currency other than U.S. dollars and is to be paid in whole or in part in such Specified
Currency, will be made in immediately available funds upon surrender of this Note at the office or agency of the Paying
Agent, as defined on the reverse hereof, maintained for that purpose in the Borough of Manhattan, The City of New York, or at
such other paying agency as the Issuer may determine, in U.S. dollars. U.S. dollar payments of interest, other than interest
due at maturity or on any date of redemption or repayment, will be made by U.S. dollar check mailed to the address of the
person entitled thereto as such address shall appear in the Note register. A holder of U.S. $10,000,000 (or the equivalent in
a Specified Currency) or more in aggregate principal amount of Notes having the same Interest Payment Date, the interest on
which is payable in U.S. dollars, shall be entitled to receive payments of interest, other than interest due at maturity or
on any date of redemption or repayment, by wire transfer of immediately available funds if appropriate wire transfer
instructions have been received by the Paying Agent in writing not less than 15 calendar days prior to the applicable
Interest Payment Date.

 

 

8 Applies if this Note is not issued as
part of, or in relation to, a Unit.

9 Applies if this Note is issued as part
of, or in relation to, a Unit. 

10 Applies if this Note has contingent payment.

11 Applies only for a Registered Global
Security. 

12 Applies for a Registered Note that is
not in global form.

 

     4

     

    

If this Note is denominated
in a Specified Currency other than U.S. dollars, and the holder does not elect (in whole or in part) to receive payment in U.S.
dollars pursuant to the next succeeding paragraph, payments of principal, premium, if any, and interest with regard to this Note
will be made by wire transfer of immediately available funds to an account maintained by the holder hereof with a bank located
outside the United States if appropriate wire transfer instructions have been received by the Paying Agent in writing [not less
than 15 calendar days prior to the applicable payment date]13 [, with respect to payments of interest, on or prior
to the fifth Business Day prior to the applicable Record Date and, with respect to payments of principal or any premium, at least
ten Business Days prior to the Maturity Date or any redemption or repayment date, as the case may be]14; provided that,
if payment of principal, premium, if any, or interest with regard to this Note is payable in euro, the account must be a euro
account in a country for which the euro is the lawful currency, provided, further, that if such wire transfer instructions are
not received, such payments will be made by check payable in such Specified Currency mailed to the address of the person entitled
thereto as such address shall appear in the Note register; and provided, further, that payment of the principal of, premium, if
any, and interest on this Note due at maturity (or on any redemption or repayment date) will be made upon surrender of this Note
at the office or agency referred to in the preceding paragraph.

 

If so indicated on the face
hereof, the holder of this Note, if denominated in a Specified Currency other than U.S. dollars, may elect to receive all or a
portion of payments on this Note in U.S. dollars by transmitting a written request to the Paying Agent, on or prior to the fifth
Business Day prior to such Record Date or at least ten Business Days prior to the Maturity Date or any redemption or repayment
date, as the case may be. Such election shall remain in effect unless such request is revoked by written notice to the Paying Agent
as to all or a portion of payments on this Note at least five Business Days prior to such Record Date, for payments of interest,
or at least ten calendar days prior to the Maturity Date or any redemption or repayment date, for payments of principal, as the
case may be.

 

If the holder elects to
receive all or a portion of payments of principal of, premium, if any, and interest on this Note, if denominated in a
Specified Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate Agent (as defined on the reverse hereof) will
convert such payments into U.S. dollars. In the event of such an election, payment in respect of this Note will be based upon
the exchange rate as determined by the Exchange Rate Agent based on the highest bid quotation in The City of New York
received by such Exchange Rate Agent at approximately 11:00 a.m., New York City time, on the second Business Day preceding
the applicable payment date from three recognized foreign exchange dealers (one of which may be the Exchange Rate Agent
unless such Exchange Rate Agent is an affiliate of the Issuer) for the purchase by the quoting dealer of the Specified
Currency for U.S. dollars for settlement on such payment date in the amount of the Specified Currency payable in the absence
of such an election to such holder and at which the applicable dealer commits to execute a contract. If such bid quotations
are not available, such payment will be made in the Specified Currency. All currency exchange costs will be borne by the
holder of this Note by deductions from such payments.

 

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

 

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

 

 

13 Applies for a Registered Note that is
not in global form.

14 Applies only for a Registered Global
Security.

 

     5

     

    

IN WITNESS WHEREOF, the Issuer has caused this Note
to be duly executed.

 

 

	DATED:	MORGAN STANLEY
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title: 	 

 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION 

This is one of the Notes referred

to in the within-mentioned 

Senior Indenture.

 

THE BANK OF NEW YORK MELLON,
as Trustee

 

	By:	 
	 	Authorized Signatory

     6

     

    

[FORM OF REVERSE OF NOTE]

SENIOR GLOBAL MEDIUM-TERM
NOTES, SERIES I

 

This Note is one of a
duly authorized issue of Senior Global Medium-Term Notes, Series I (the “Notes”), of the Issuer. The Notes are
issuable under a Senior Indenture, dated as of November 1, 2004, between the Issuer and The Bank of New York Mellon, a New
York banking corporation (as successor Trustee to JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank)), as
Trustee (the “Trustee,” which term includes any successor trustee under the Senior Indenture) as supplemented by
a First Supplemental Senior Indenture dated as of September 4, 2007, a Second Supplemental Senior Indenture dated as of
January 4, 2008, a Third Supplemental Senior Indenture dated as of September 10, 2008, a Fourth Supplemental Senior Indenture
dated as of December 1, 2008, a Fifth Supplemental Senior Indenture dated as of April 1, 2009, a Sixth Supplemental Senior
Indenture dated as of September 16, 2011, a Seventh Supplemental Senior Indenture dated as of November 21, 2011, an Eighth
Supplemental Senior Indenture dated as of May 4, 2012, a Ninth Supplemental Senior Indenture dated as of March 10, 2014 and a
Tenth Supplemental Senior Indenture dated as of January 11, 2017 (as the same may be further amended or supplemented from
time to time, the “Senior Indenture”), to which Senior Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities of the
Issuer, the Trustee and holders of the Notes and the terms upon which the Notes are, and are to be, authenticated and
delivered. The Issuer has appointed The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A.) at its
corporate trust office in The City of New York as the paying agent (the “Paying Agent,” which term includes any
additional or successor Paying Agent appointed by the Issuer) with respect to the Notes. The terms of individual Notes may
vary with respect to interest rates, interest rate formulas, issue dates, maturity dates, or otherwise, all as provided in
the Senior Indenture. To the extent not inconsistent herewith, the terms of the Senior Indenture are hereby incorporated by
reference herein.

 

Unless otherwise indicated
on the face hereof, this Note will not be subject to any sinking fund and, unless otherwise provided on the face hereof in accordance
with the provisions of the following two paragraphs, will not be redeemable or subject to repayment at the option of the holder
prior to maturity.

 

If so indicated on the face
hereof, this Note may be redeemed in whole or in part at the option of the Issuer on or after the Initial Redemption Date specified
on the face hereof on the terms set forth on the face hereof, together with interest accrued and unpaid hereon to the date of redemption.
If this Note is subject to “Annual Redemption Percentage Reduction,” the Initial Redemption Percentage indicated on
the face hereof will be reduced on each anniversary of the Initial Redemption Date by the Annual Redemption Percentage Reduction
specified on the face hereof until the redemption price of this Note is 100% of the principal amount hereof, together with interest
accrued and unpaid hereon to the date of redemption. Notice of redemption shall be mailed to the registered holders of the Notes
designated for redemption at their addresses as the same shall appear on the Note register not less than 30 nor more than 60 calendar
days prior to the date fixed for redemption or within the Redemption Notice Period specified on the face hereof, subject to all
the conditions and provisions of the Senior Indenture. In the event of redemption of this Note in part only, a new Note or Notes
for the amount of the unredeemed portion hereof shall be issued in the name of the holder hereof upon the cancellation hereof.

 

If so indicated on the
face of this Note, this Note will be subject to repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional Repayment Date, this Note will be repayable in
whole or in part in increments of $1,000 or, if this Note is denominated in a Specified Currency other than U.S. dollars, in
increments of 1,000 units of such Specified Currency (provided that any remaining principal amount hereof shall not be less
than the minimum authorized denomination hereof) at the option of the holder hereof at a price equal to 100% of the principal
amount to be repaid, together with interest accrued and unpaid hereon to the date of repayment. For this Note to be repaid at
the option of the holder hereof, the Paying Agent must receive at its corporate trust office in the Borough of Manhattan, The
City of New York, at least 15 but not more than 30 calendar days prior to the date of repayment, (i) this Note with the form
entitled “Option to Elect Repayment” below duly completed or (ii) a telegram, telex, facsimile transmission or a
letter from a member of a national securities exchange or the Financial Industry Regulatory Authority, Inc. or a commercial
bank or a trust company in the United States setting forth the name of the holder of this Note, the principal amount hereof,
the certificate number of this Note or a description of this Note’s tenor and terms, the principal amount hereof to be
repaid, a statement that the option to elect repayment is being exercised thereby and a guarantee that this Note, together
with the form entitled “Option to Elect Repayment” duly completed, will be received by the Paying Agent not later
than the fifth Business Day after the date of such telegram, telex,

 

     7

     

    

facsimile transmission or letter; provided, that
such telegram, telex, facsimile transmission or letter shall only be effective if this Note and form duly completed are received
by the Paying Agent by such fifth Business Day. Exercise of such repayment option by the holder hereof shall be irrevocable. In
the event of repayment of this Note in part only, a new Note or Notes for the amount of the unpaid portion hereof shall be issued
in the name of the holder hereof upon the cancellation hereof.

 

If the face hereof indicates
that this Note is subject to “Tax Redemption and Payment of Additional Amounts,” this Note may be redeemed, as a whole,
at the option of the Issuer at any time prior to maturity, upon the giving of a notice of redemption as described below, at a redemption
price equal to 100% of the principal amount hereof, together with accrued interest to the date fixed for redemption, if the Issuer
determines that, as a result of any change in or amendment to the laws (including a holding, judgment or as ordered by a court
of competent jurisdiction), or any regulations or rulings promulgated thereunder, of the United States or of any political subdivision
or taxing authority thereof or therein affecting taxation, or any change in official position regarding the application or interpretation
of such laws, regulations or rulings, which change or amendment occurs, becomes effective or, in the case of a change in official
position, is announced on or after the Initial Offering Date hereof, the Issuer has or will become obligated to pay Additional
Amounts, as defined below, with respect to this Note as described below. Prior to the giving of any notice of redemption pursuant
to this paragraph, the Issuer shall deliver to the Trustee (i) a certificate stating that the Issuer is entitled to effect such
redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer to so redeem
have occurred, and (ii) an opinion of independent legal counsel satisfactory to the Trustee to such effect based on such statement
of facts; provided that no such notice of redemption shall be given earlier than 60 calendar days prior to the earliest date on
which the Issuer would be obligated to pay such Additional Amounts if a payment in respect of this Note were then due.

 

Notice of redemption will
be given not less than 30 nor more than 60 calendar days prior to the date fixed for redemption or within the Redemption Notice
Period specified on the face hereof, which date and the applicable redemption price will be specified in the notice.

 

If the face hereof indicates
that this Note is subject to “Tax Redemption and Payment of Additional Amounts,” the Issuer will, subject to certain
exceptions and limitations set forth below, pay such additional amounts (the “Additional Amounts”) to the holder of
this Note with respect to any interest in this Note held by a beneficial owner who is a U.S. Alien as may be necessary in order
that every net payment of the principal of and interest on this Note and any other amounts payable on this Note, after withholding
or deduction for or on account of any present or future tax, assessment or governmental charge imposed upon or as a result of such
payment by the United States, or any political subdivision or taxing authority of or in the United States, will not be less than
the amount provided for in this Note to be then due and payable. The Issuer will not, however, make any payment of Additional Amounts
to the holder of this Note with respect to any interest in this Note held by any beneficial owner who is a U.S. Alien for or on
account of:

 

		•	any present or future tax, assessment or other governmental charge that would not have been so
imposed but for

 

		o	the existence of any present or former connection between the beneficial
owner of an interest in this Note, or between a fiduciary, settlor, beneficiary, member or shareholder of the beneficial owner,
if the beneficial owner is an estate, a trust, a partnership or a corporation for U.S. federal income tax purposes, and the United
States, including, without limitation, the beneficial owner, or the fiduciary, settlor, beneficiary, member or shareholder, being
or having been a citizen or resident of the United States or being or having been engaged in the conduct of a trade or business
or present in the United States or having, or having had, a permanent establishment in the United States; or

 

		o	the presentation by or on behalf of the beneficial owner of an interest in
this Note for payment on a date more than 15 days after the date on which payment became due and payable or the date on which payment
of this Note is duly provided for, whichever occurs later;

 

		•	any estate, inheritance, gift, sales, transfer, excise or personal property tax or any similar
tax, assessment or governmental charge;

 

		•	any tax, assessment or other governmental charge imposed by reason of the beneficial owner’s
past or present status as a controlled foreign corporation or passive foreign investment company with respect to the United States
or as a corporation that accumulates earnings to avoid U.S. federal income tax or as a private

 

     8

     

    

foundation or other tax-exempt
organization;

 

		•	any tax, assessment or other governmental charge that is payable otherwise
than by withholding or deduction from payments on or in respect of this Note;

 

		•	any tax, assessment or other governmental charge required to be withheld
by any Paying Agent from any payment of principal of, or interest on, this Note, if payment can be made without withholding by
at least one other Paying Agent;

 

		•	any tax, assessment or other governmental charge imposed solely because
the beneficial owner of an interest in this Note (1) is a bank purchasing this Note in the ordinary course of its lending business
or (2) is a bank that is neither (A) buying this Note for investment purposes nor (B) buying this Note for resale to a third party
that either is not a bank or holding this Note for investment purposes only;

 

		•	any tax, assessment or other governmental charge that would not have been
imposed but for the failure to comply with certification, information or other reporting requirements concerning the nationality,
residence, identity or connection with the United States of the beneficial owner of an interest in this Note, if compliance is
required by statute or by regulation of the United States or of any political subdivision or taxing authority of or in the United
States as a precondition to relief or exemption from the tax, assessment or other governmental charge;

 

		•	any tax, assessment or other governmental charge imposed
or collected pursuant to Sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”),
any intergovernmental agreements entered into in connection with the implementation of such sections 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;

 

		•	any tax, assessment or other governmental charge imposed pursuant to Section
871(m) of the Code and any applicable Treasury regulations promulgated thereunder or published administrative guidance implementing
such section;

 

		•	any tax, assessment or other governmental charge imposed by reason of the
beneficial owner’s past or present status as the actual or constructive owner of 10% or more of the total combined voting
power of all classes of stock entitled to vote of the Issuer or as a direct or indirect subsidiary of the Issuer; or

 

		•	any combination of the items listed above.

 

In addition, the Issuer will not be required to make
any payment of Additional Amounts with respect to any interest in this Note presented for payment:

 

		•	where such withholding or deduction is imposed on a payment to an individual
and is required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European
Union Directive on the taxation of savings; or

 

		•	by or on behalf of a beneficial owner who would have been able to avoid
such withholding or deduction by presenting this Note to another Paying Agent in a member state of the European Union.

 

Nor will the Issuer pay Additional
Amounts with respect to any payment with respect to any interest in this Note to a U.S. Alien who is a fiduciary or partnership
or other than the sole beneficial owner of the payment to the extent the payment would be required by the laws of the United States
(or any political subdivision of the United States) to be included in the income, for tax purposes, of a beneficiary or settlor
with respect to the fiduciary or a member of the partnership or a beneficial owner who would not have been entitled to the Additional
Amounts had the beneficiary, settlor, member or beneficial owner held its interest in this Note directly.

 

This Note will bear interest
at the rate determined in accordance with the applicable provisions below by reference to the Base Rate shown on the face hereof
based on the Index Maturity, if any, shown on the face hereof (i) plus or minus the Spread, if any, and/or (ii) multiplied by the
Spread Multiplier, if any, specified on the face hereof. Commencing with the Initial Interest Reset Date specified on the face
hereof, the rate at which interest on

 

     9

     

    

this
Note is payable shall be reset as of each Interest Reset Date specified on the face hereof (as used herein, the term
“Interest Reset Date” shall include the Initial Interest Reset Date). For the purpose of determining the Initial
Interest Rate, references in this paragraph, the next succeeding paragraph and, if applicable, clauses (i) and (ii) under
“Determination of EURIBOR” below to Interest Reset Date shall be deemed to mean the Original Issue Date. The
determination of the rate of interest at which this Note will be reset on any Interest Reset Date shall be made on the
Interest Determination Date (as defined below) pertaining to such Interest Reset Dates. The Interest Reset Dates will be the
Interest Reset Dates specified on the face hereof; provided, however, that (a) the interest rate in effect for the period
from the Interest Accrual Date to the Initial Interest Reset Date will be the Initial Interest Rate and (b) unless otherwise
specified on the face hereof, the interest rate in effect for the ten calendar days immediately prior to maturity, redemption
or repayment will be that in effect on the tenth calendar day preceding such maturity, redemption or repayment date. If any
Interest Reset Date would otherwise be a day that is not a Business Day, such Interest Reset Date shall be postponed to the
next succeeding day that is a Business Day, except that if the Base Rate specified on the face hereof is LIBOR or EURIBOR and
such Business Day is in the next succeeding calendar month, such Interest Reset Date shall be the immediately preceding
Business Day. As used herein, “Business Day” means any day, other than a Saturday or Sunday, (a) that is neither
a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close (x) in The
City of New York or (y) if this Note is denominated in a Specified Currency other than U.S. dollars, euro or Australian
dollars, in the principal financial center of the country of the Specified Currency, or (z) if this Note is denominated in
Australian dollars, in Sydney and (b) if this Note is denominated in euro, that is also a day on which the Trans-European
Automated Real-time Gross Settlement Express Transfer payment system (“TARGET”), which utilizes a single shared
platform and was launched on November 19, 2007, is open for the settlement of payment in euro (a “TARGET Settlement
Day”).

 

The
Interest Determination Date pertaining to an Interest Reset Date for Notes bearing interest calculated by reference to the Federal
Funds Rate, Federal Funds (Open) Rate and Prime Rate shall be on the Business Day prior to the Interest Reset Date. The Interest
Determination Date pertaining to an Interest Reset Date for Notes bearing interest calculated by reference to the Commercial Paper
Rate and CMT Rate will be the second Business Day prior to such Interest Reset Date. The Interest Determination Date pertaining
to an Interest Reset Date for Notes bearing interest calculated by reference to the CMS Rate will be the second U.S. Government
Securities Business Day (as defined herein) prior to such Interest Reset Date. The Interest Determination Date pertaining to an
Interest Reset Date for Notes bearing interest calculated by reference to EURIBOR (or to LIBOR when the Index Currency is euros)
shall be the second TARGET Settlement Day prior to such Interest Reset Date. The Interest Determination Date pertaining to an
Interest Reset Date for Notes bearing interest calculated by reference to LIBOR (other than for LIBOR Notes for which the Index
Currency is euros) shall be the second London Banking Day prior to such Interest Reset Date, except that the Interest Determination
Date pertaining to an Interest Reset Date for a LIBOR Note for which the Index Currency is pounds sterling will be such Interest
Reset Date. As used herein, “London Banking Day” means any day on which dealings in deposits in the Index Currency
(as defined herein) are transacted in the London interbank market. The Interest Determination Date pertaining to an Interest Reset
Date for Notes bearing interest calculated by reference to the Treasury Rate shall be the day of the week in which such Interest
Reset Date falls on which Treasury bills normally would be auctioned. Treasury Bills are normally sold at auction on Monday of
each week, unless that day is a legal holiday, in which case the auction is normally held on the following Tuesday, except that
the auction may be held on the preceding Friday; provided, however, that if an auction is held on the Friday of the week preceding
such Interest Reset Date, the Interest Determination Date shall be such preceding Friday; and provided, further, that if an auction
shall fall on any Interest Reset Date, then the Interest Reset Date shall instead be the first Business Day following the date
of such auction. The Interest Determination Date pertaining to an Interest Reset Date for Notes bearing interest calculated by
reference to two or more base rates will be the latest Business Day that is at least two Business Days before the Interest Reset
Date for the applicable Note on which each base rate is determinable.
  

Unless otherwise specified on
the face hereof, the “Calculation Date” pertaining to an Interest Determination Date, including the Interest Determination
Date as of which the Initial Interest Rate is determined, will be the earlier of (i) the tenth calendar day after such Interest
Determination Date or, if such day is not a Business Day, the next succeeding Business Day, or (ii) the Business Day immediately
preceding the applicable Interest Payment Date or Maturity Date (or, with respect to any principal amount to be redeemed or repaid,
any redemption or repayment date), as the case may be.

 

Determination of
Commercial Paper Rate. If the Base Rate specified on the face hereof is the “Commercial Paper Rate,” for any
Interest Determination Date, the Commercial Paper Rate with respect to this Note shall be the Money Market Yield (as defined
herein), calculated as described below, of the rate on that date for U.S. dollar commercial paper having the Index Maturity
specified on the face hereof, as that rate is published in the H.15 Daily

 

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Update, under the heading “Commercial Paper —
Nonfinancial.”

 

The following procedures shall
be followed if the Commercial Paper Rate cannot be determined as described above:

 

(i) If by 3:00 p.m., New
York City time, on that Calculation Date the above rate is not yet published in the H.15 Daily Update, or other recognized electronic
source used for the purpose of displaying the applicable rate, then the Calculation Agent shall determine the Commercial Paper
Rate to be the Money Market Yield of the arithmetic mean of the offered rates as of 11:00 a.m., New York City time, on that Interest
Determination Date of three leading dealers of U.S. dollar commercial paper in The City of New York, which may include the initial
dealer and its affiliates, selected by the Calculation Agent (after consultation with the Issuer), for commercial paper of the
Index Maturity specified on the face hereof, placed for an industrial issuer whose bond rating is “Aa,” or the equivalent,
from a nationally recognized statistical rating agency.

 

(ii) If the dealers selected
by the Calculation Agent are not quoting as set forth in (ii) above, the Commercial Paper Rate for that Interest Determination
Date shall remain the Commercial Paper Rate for the immediately preceding Interest Reset Period, or, if there was no Interest Reset
Period, the rate of interest payable shall be the Initial Interest Rate.

 

The “Money Market Yield” shall be a yield
calculated in accordance with the following formula:

 

 

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

 

Determination of
EURIBOR. If the Base Rate specified on the face hereof is “EURIBOR,” for any Interest Determination Date, EURIBOR
with respect to this Note shall be the rate for deposits in euros as sponsored, calculated and published jointly by the
European Banking Federation and ACI — The Financial Market Association, or any company established by the joint
sponsors for purposes of compiling and publishing those rates, for the Index Maturity specified on the face hereof as that
rate appears on the display on Thomson Reuters Eikon (“Reuters”), or any successor service, on page EURIBOR01 or
any other page as may replace page EURIBOR01 on that service

 

(“Reuters Page EURIBOR01”) as of 11:00 a.m.,
Brussels time.

 

The following procedures shall be followed if the rate
cannot be determined as described above:

 

(i) If the above rate does
not appear, the Calculation Agent shall request the principal Euro-zone office of each of four major banks in the Euro-zone interbank
market, as selected by the Calculation Agent (after consultation with the Issuer), to provide the Calculation Agent with its offered
rate for deposits in euros, at approximately 11:00 a.m., Brussels time, on the Interest Determination Date, to prime banks in the
Euro-zone interbank market for the Index Maturity specified on the face hereof commencing on the applicable Interest Reset Date,
and in a principal amount not less than the equivalent of U.S.$1 million in euro that is representative of a single transaction
in euro, in that market at that time. If at least two quotations are provided, EURIBOR shall be the arithmetic mean of those quotations.

 

(ii) If fewer than two quotations
are provided, EURIBOR shall be the arithmetic mean of the rates quoted by four major banks in the Euro-zone interbank market, as
selected by the Calculation Agent (after consultation with

 

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the Issuer), at approximately 11:00 a.m., Brussels
time, on the applicable Interest Reset Date for loans in euro to leading European banks for a period of time equivalent to the
Index Maturity specified on the face hereof commencing on that Interest Reset Date in a principal amount not less than the equivalent
of U.S.$1 million in euro.

 

(iii) If the banks so selected
by the Calculation Agent are not quoting as set forth above, EURIBOR for that Interest Determination Date shall remain EURIBOR
for the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall
be the Initial Interest Rate.

 

“Euro-zone” means
the region comprised of Member States of the European Union that adopt the single currency in accordance with the relevant treaty
of the European Union, as amended.

 

Determination of the Federal
Funds Rate. If the Base Rate specified on the face hereof is the “Federal Funds Rate,” for any Interest Determination
Date, the Federal Funds Rate with respect to this Note shall be the rate on that date for U.S. dollar federal funds as published
in the H.15 Daily Update under the heading “Federal Funds (Effective)” as displayed on Reuters, or any successor service,
on page FEDFUNDS1 or any other page as may replace the applicable page on that service (“Reuters Page FEDFUNDS1”).

 

The following procedures shall be followed if
the Federal Funds Rate cannot be determined as described above:

 

 (i) If the above rate is not published
by 3:00 p.m., New York City time, on the Calculation Date, the Federal Funds Rate shall be the rate on that Interest Determination
Date as published in the H.15 Daily Update, or other recognized electronic source used for the purpose of displaying the applicable
rate, under the heading “Federal Funds (Effective).”

 

(ii) If the above rate is
not yet published in the H.15 Daily Update, or other recognized electronic source used for the purpose of displaying the applicable
rate, by 3:00 p.m., New York City time, on the Calculation Date, the Calculation Agent shall determine the Federal Funds Rate to
be the arithmetic mean of the rates for the last transaction in overnight U.S. dollar federal funds prior to 9:00 a.m., New York
City time, on that Interest Determination Date, quoted by each of three leading brokers of U.S. dollar federal funds transactions
in The City of New York, which may include the initial dealer and its affiliates, selected by the Calculation Agent (after consultation
with the Issuer).

 

(iii)
If the brokers selected by the Calculation Agent are not quoting as set forth in (ii) above, the Federal Funds Rate for that Interest
Determination Date shall remain the Federal Funds Rate for the immediately preceding Interest Reset Period, or, if there was no
Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

 

Determination of Federal Funds
(Open) Rate. If the Base Rate specified on the face hereof is the “Federal Funds (Open) Rate,” for any Interest Determination
Date, the Federal Funds (Open) Rate with respect to this Note shall be the Federal Funds Rate on that date set forth opposite the
caption “Open” as displayed on Reuters, or any successor service, on page 5 or any other page as may replace the applicable
page on that service (“Reuters Page 5”).

 

The following procedures shall
be followed if the Federal Funds (Open) Rate cannot be determined as described above:

 

		•	If the above rate is not published by 3:00 p.m., New York City time, on the Calculation Date,
the Federal Funds (Open) Rate will be the rate on that Interest Determination Date displayed on FFPREBON Index Page on Bloomberg
L.P. (“Bloomberg”), which is the Fed Funds Opening Rate as reported by Prebon Yamane, or any successor service, on
Bloomberg.

 

		•	If the above rate is not displayed on the FFPREBON Index Page on Bloomberg, or other recognized
electronic source used for the purpose of displaying the applicable rate, by 3:00 p.m., New York City time, on the Calculation
Date, the Calculation Agent will determine the Federal Funds (Open) Rate to be the arithmetic mean of the rates for the last transaction
in overnight U.S. dollar federal funds prior to 9:00 a.m., New York City time, on that Interest Determination Date, quoted by each
of three leading brokers of U.S. dollar federal funds transactions in The City of New York, which may include the agent and its
affiliates, selected by the Calculation Agent, after consultation with the Issuer.

 

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		•	If the brokers selected by the Calculation Agent are not quoting as set forth above, the Federal
Funds (Open) Rate for that Interest Determination Date shall remain the Federal Funds (Open) Rate for the immediately preceding
Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable will be the Initial Interest Rate.

 

Determination of LIBOR. If
the Base Rate specified on the face hereof is “LIBOR,” LIBOR with respect to this Note shall be based on London Interbank
Offered Rate. The Calculation Agent shall determine LIBOR for each Interest Determination Date as follows:

 

(i) LIBOR means, for any Interest
Determination Date, the arithmetic mean of the offered rates for deposits in the Index Currency having the Index Maturity designated
on the face hereof, commencing on the second London Banking Day immediately following that Interest Determination Date or, if pounds
sterling is the Index Currency, commencing on that Interest Determination Date, that appear on the Designated LIBOR Page as of
11:00 a.m., London time, on that Interest Determination Date, if at least two offered rates appear on the Designated LIBOR Page
(as defined below), provided that if the specified Designated LIBOR Page by its terms provides only for a single rate, that single
rate shall be used.

 

(ii) If (a) fewer than
two offered rates appear or (b) no rate appears and the Designated LIBOR Page by its terms provides only for a single rate,
then the Calculation Agent shall request the principal London offices of each of four major reference banks in the London
interbank market, as selected by the Calculation Agent, after consultation with the Issuer, to provide the Calculation Agent
with its offered quotation for deposits in the Index Currency for the period of the Index Maturity specified on the face
hereof commencing on the second London Banking Day immediately following the Interest Determination Date or, if pounds
sterling is the Index Currency, commencing on that Interest Determination Date, to prime banks in the London interbank market
at approximately 11:00 a.m., London time, on that Interest Determination Date and in a principal amount that is
representative of a single transaction in that Index Currency in that market at that time. If at least two quotations are
provided, LIBOR determined on that Interest Determination Date shall be the arithmetic mean of those quotations.

 

(iii) If fewer than two quotations
are provided, as described in the prior paragraph, LIBOR shall be determined for the applicable Interest Reset Date as the arithmetic
mean of the rates quoted at approximately 11:00 a.m., or some other time specified on the face hereof, in the applicable principal
financial center for the country of the Index Currency on that Interest Reset Date, by three major banks in that principal financial
center selected by the Calculation Agent (after consultation with the Issuer) for loans in the Index Currency to leading European
banks, having the Index Maturity specified on the face hereof and in a principal amount that is representative of a single transaction
in that Index Currency in that market at that time.

 

(iv) If the banks so selected
by the Calculation Agent are not quoting as set forth above, LIBOR for that Interest Determination Date shall remain LIBOR for
the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall
be the Initial Interest Rate.

 

The “Index Currency”
means the currency specified on the face hereof as the currency for which LIBOR shall be calculated, or, if the euro is substituted
for that currency, the Index Currency shall be the euro. If that currency is not specified on the face hereof, the Index Currency
shall be U.S. dollars.

 

“Designated LIBOR Page”
means the display on Reuters, or any successor service, on page LIBOR01, or any other page as may replace that page on that service,
for the purpose of displaying the London interbank rates of major banks for the applicable Index Currency.

 

Determination of Prime Rate.
If the Base Rate specified on the face hereof is “Prime Rate,” for any Interest Determination Date, the Prime Rate
with respect to this Note shall be the rate on that date as published in the H.15 Daily Update under the heading “Bank Prime
Loan.”

 

The following procedures shall be followed if the Prime
Rate cannot be determined as described above:

 

     13

     

    

(i) If the above rate is not
published in the H.15 Daily Update by 3:00 p.m., New York City time, on the Calculation Date, the Calculation Agent shall determine
the Prime Rate to be the arithmetic mean of the rates of interest publicly announced by each bank that appears on the Reuters Page
US PRIME 1, as defined below, as that bank’s Prime Rate or base lending rate as in effect for that Interest Determination
Date.

 

(ii)
If fewer than four rates for that Interest Determination Date appear on the Reuters Page US PRIME 1 by 3:00 p.m., New York City
time, on the Calculation Date, the Calculation Agent shall determine the Prime Rate to be the arithmetic mean of the Prime Rates
quoted on the basis of the actual number of days in the year divided by 360 as of the close of business on that Interest Determination
Date by at least three major banks in The City of New York, which may include affiliates of the initial dealer, selected by the
Calculation Agent (after consultation with the Issuer).

 

(iii) If the banks selected
by the Calculation Agent are not quoting as set forth above, the Prime Rate for that Interest Determination Date shall remain the
Prime Rate for the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest
payable shall be the Initial Interest Rate.

 

“Reuters Page US PRIME
1” means the display designated as page “US PRIME 1” on Reuters, or any successor service, or any other page
as may replace the US PRIME 1 page on that service for the purpose of displaying prime rates or base lending rates of major U.S.
banks.

 

Determination of Treasury Rate. If
the Base Rate specified on the face hereof is “Treasury Rate,” the Treasury Rate with respect to this Note shall
be:

 

(i) the rate from the Auction
held on the applicable Interest Determination Date (the “Auction”) of direct obligations of the United States (“Treasury
Bills”) having the Index Maturity specified on the face hereof as that rate appears under the caption “INVEST RATE”
on the display on Reuters, or any successor service, on page USAUCTION10 or any other page as may replace page USAUCTION10 on that
service (“Reuters Page USAUCTION10”), or on page USAUCTION11 or any other page as may replace page USAUCTION11 on that
service (“Reuters Page USAUCTION11”); or

 

(ii) if the rate described
in (i) above is not published by 3:00 p.m., New York City time, on the related Calculation Date, the Bond Equivalent Yield of the
Auction rate of the applicable Treasury Bills, announced by the United States Department of the Treasury; or

 

(iii) if the rate described in (ii)
above is not announced by the United States Department of the Treasury, or if the Auction is not held, the Bond Equivalent
Yield of the Auction rate on the applicable Interest Determination Date of Treasury Bills having the Index Maturity specified
on the face hereof published in the H.15 Daily Update, or other recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”;
or

 

(iv) if the rate described
in (iii) above is not so published by 3:00 p.m., New York City time, on the related Calculation Date, the rate on the applicable
Interest Determination Date calculated by the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary
market bid rates, as of approximately 3:30 p.m., New York City time, on the applicable Interest Determination Date, of three primary
U.S. government securities dealers, which may include the initial dealer and its affiliates, selected by the Calculation Agent,
for the issue of Treasury Bills with a remaining maturity closest to the Index Maturity specified on the face hereof; or

 

(v) if the dealers
selected by the Calculation Agent are not quoting as described in (iv), the Treasury Rate for the immediately preceding
Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest
Rate.

 

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

 

     14

     

    

 

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

 

Determination of CMT Rate. If the Base Rate
specified on the face hereof is the “CMT Rate,” for any Interest Determination Date, the CMT Rate with respect to this
Note shall be any of the following rates published by the Federal Reserve System Board of Governors, or its successor, on its website
or in another recognized electronic source, as the yield is displayed for Treasury securities at “constant maturity”
under the column for the Designated CMT Maturity Index, as defined below, for:

 

(1) the rate on that Interest Determination Date, if
the Designated CMT Reuters Page is FRBCMT; and

 

(2) the week or the month, as applicable, ended
immediately preceding the week in which the related Interest Determination Date occurs, if the Designated CMT Reuters Page is
FEDCMT.

 

The following procedures shall be followed if the CMT
Rate cannot be determined as described above:

 

(i) If the above rate is no
longer displayed on the relevant page, or if not published by 3:00 p.m., New York City time, on the related Calculation Date, then
the CMT Rate shall be the Treasury Constant Maturities Rate for the Designated CMT Maturity Index or other U.S. Treasury rate for
the Designated CMT Maturity Index on the Interest Determination Date for the related Interest Reset Date as may then be published
by either the Board of Governors of the Federal Reserve System or the United States Department of the Treasury that the Calculation
Agent determines to be comparable to the rate formerly displayed on the Designated CMT Reuters Page and published on the website
of the Federal Reserve System Board of Governors or in another recognized electronic source.

 

(ii) If the rate
described in (i) above is not provided by 3:00 p.m., New York City time, on the related Calculation Date, then the
Calculation Agent shall determine the CMT Rate to be a yield to maturity, based on the arithmetic mean of the secondary
market closing offer side prices as of approximately 3:30 p.m., New York City time, on the Interest Determination Date,
reported, according to their written records, by three leading primary U.S. government securities dealers (“Reference
Dealers”) in The City of New York, which may include the initial dealer or its affiliates, selected by the Calculation
Agent as described in the following sentence. The Calculation Agent shall select five Reference Dealers (after consultation
with the Issuer) and shall eliminate the highest quotation or, in the event of equality, one of the highest, and the lowest
quotation or, in the event of equality, one of the lowest, for the most recently issued direct noncallable fixed rate
obligations of the United States (“Treasury Notes”) with an original maturity of approximately the Designated CMT
Maturity Index, a remaining term to maturity of no more than 1 year shorter than that Designated CMT Maturity Index and in a
principal amount that is representative for a single transaction in the securities in that market at that time. If two
Treasury Notes with an original maturity as described above have remaining terms to maturity equally close to the Designated
CMT Maturity Index, the quotes for the Treasury Note with the shorter remaining term to maturity shall be used.

 

(iii) If the Calculation Agent
cannot obtain three Treasury Notes quotations as described in (ii) above, the Calculation Agent shall determine the CMT Rate to
be a yield to maturity based on the arithmetic mean of the secondary market offer side prices as of approximately 3:30 p.m., New
York City time, on the Interest Determination Date of three Reference Dealers in The City of New York, selected using the same
method described in (ii) above, for Treasury Notes with an original maturity equal to the number of years closest to but not less
than the Designated CMT Maturity Index and a remaining term to maturity closest to the Designated CMT Maturity Index and in a principal
amount that is representative for a single transaction in the securities in that market at that time.

 

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(iv) If three or four, and
not five, of the Reference Dealers are quoting as described in (iii) above, then the CMT Rate for that Interest Determination Date
shall be based on the arithmetic mean of the offer prices obtained and neither the highest nor the lowest of those quotes shall
be eliminated.

 

(v) If fewer than three Reference
Dealers selected by the Calculation Agent are quoting as described in (iii) above, the CMT Rate for that Interest Determination
Date shall remain the CMT Rate for the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period,
the rate of interest payable shall be the Initial Interest Rate.

 

“Designated CMT Reuters
Page” means the display on Reuters, or any successor service, on the page designated on the face hereof or any other page
as may replace that page on that service for the purpose of displaying Treasury Constant Maturities published by the Federal Reserve
System Board of Governors, or its successor, on its website or in another recognized electronic source. If no Reuters page is specified
on the face hereof, the Designated CMT Reuters Page shall be FEDCMT, for the most recent week.

 

“Designated
CMT Maturity Index” means the original period to maturity of the U.S. Treasury securities, which is either 1, 2, 3, 5, 7,
10, 20 or 30 years, as specified on the face hereof, for which the CMT Rate shall be calculated. If no maturity is specified on
the face hereof, the Designated CMT Maturity Index shall be two years.

 

Determination of CMS Rate.
If the Base Rate specified on the face hereof is a “CMS Rate,” for any Interest Determination Date, the CMS Rate with
respect to this Note shall be the fixed rate of interest payable on an interest rate swap having the index maturity specified as
reported on Reuters Page ICESWAP1 or any successor page thereto at approximately 11:00 a.m. New York City time for such day.

 

The following procedures shall be followed if the CMS
Rate cannot be determined as described above:

 

(i) If
the rate is not displayed by approximately 11:00 a.m. New York City time on the Reuters Page ICESWAP1 on any day on which such
rate must be determined, such rate for such day will be determined on the basis of the mid-market semi-annual swap rate quotations
to the Calculation Agent provided by five leading swap dealers in the New York City interbank market (the “Reference Banks”)
at approximately 11:00 a.m., New York City time, on such day, and, for this purpose, the mid-market semi-annual swap rate means
the mean of the bid and offered rates for the semi-annual fixed leg, calculated on a 30/360 day count basis, of a fixed-for-floating
U.S. Dollar interest rate swap transaction with a term equal to the applicable maturity commencing on such day and in a representative
amount with an acknowledged dealer of good credit in the swap market, where the floating leg, calculated on an actual/360 day count
basis, is equivalent to the index rate that is then used in the calculation of the CMS Rate with a designated maturity of three
months. The Calculation Agent shall request the principal New York City office of each of the Reference Banks to provide a quotation
of its rate.

 

(ii) If
at least three quotations are provided, the rate for that day shall be the arithmetic mean of the quotations, eliminating the highest
quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the
lowest).

 

(iii)
If fewer than three quotations are provided as requested, the affected rate shall be determined by the Calculation Agent in good
faith and in a commercially reasonable manner.

 

“U.S. Government Securities
Business Day” means any day except for a Saturday, Sunday or a day on which The Securities Industry and Financial Markets
Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in
U.S. government securities.

 

Notwithstanding the foregoing,
the interest rate hereon shall not be greater than the Maximum Interest Rate, if any, or less than the Minimum Interest Rate, if
any, specified on the face hereof. The Calculation Agent shall calculate the interest rate hereon in accordance with the foregoing
on or before each Calculation Date. The interest rate on this Note will in no event be higher than the maximum rate permitted by
New York law, as the same may be modified by United States Federal law of general application.

 

At the
request of the holder hereof, the Calculation Agent will provide to the holder hereof the interest rate hereon then in effect and,
if determined, the interest rate that will become effective as of the next Interest Reset Date.

 

Unless otherwise indicated
on the face hereof, interest payments on this Note shall be the amount of interest accrued from and including the Interest Accrual
Date or from and including the last date to which interest has been

 

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paid
or duly provided for to but excluding the Interest Payment Dates or the Maturity Date (or any earlier redemption or
repayment date), as the case may be. Accrued interest hereon shall be an amount calculated by multiplying the face amount
hereof by an accrued interest factor. Such accrued interest factor shall be computed by adding the interest factor calculated
for each day in the period for which interest is being paid. The interest factor for each such date shall be computed by
dividing the interest rate applicable to such day (i) by 360 if the Base Rate is Commercial Paper Rate, EURIBOR, Federal
Funds Rate, Federal Funds (Open) Rate, Prime Rate, CMS Rate or LIBOR (except if the Index Currency is pounds sterling); (ii)
by 365 if the Base Rate is LIBOR and the Index Currency is pounds sterling; or (iii) by the actual number of days in the year
if the Base Rate is the Treasury Rate or the CMT Rate. All percentages resulting from any calculation of the rate of interest
on this Note will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point (with .000005% being
rounded up to .00001%) and all U.S. dollar amounts used in or resulting from such calculation on this Note will be rounded to
the nearest cent, with one- half cent rounded upward. All Japanese Yen amounts used in or resulting from such calculations
will be rounded downwards to the next lower whole Japanese Yen amount. All amounts denominated in any other currency used in
or resulting from such calculations will be rounded to the nearest two decimal places in such currency, with .005 being
rounded up to .01. The interest rate in effect on any Interest Reset Date will be the applicable rate as reset on such date.
The interest rate applicable to any other day is the interest rate from the immediately preceding Interest Reset Date (or, if
none, the Initial Interest Rate).

 

This Note and all the obligations
of the Issuer hereunder are direct, unsecured obligations of the Issuer and rank without preference or priority among themselves
and pari passu with all other existing and future unsecured and unsubordinated indebtedness of the Issuer, subject to certain statutory
exceptions in the event of liquidation upon insolvency.

 

This Note, and any Note
or Notes issued upon transfer or exchange hereof, is issuable only in fully registered form, without coupons, and, if
denominated in U.S. dollars, unless otherwise stated above, is issuable only in denominations of U.S. $1,000 and any integral
multiple of U.S. $1,000 in excess thereof. If this Note is denominated in a Specified Currency other than U.S. dollars, then,
unless a higher minimum denomination is required by applicable law, it is issuable only in denominations of the equivalent of
U.S. $1,000 (rounded to an integral multiple of 1,000 units of such Specified Currency), or any amount in excess thereof
which is an integral multiple of 1,000 units of such Specified Currency, as determined by reference to the noon dollar buying
rate in The City of New York for cable transfers of such Specified Currency published by the Federal Reserve Bank of New York
(the “Market Exchange Rate”) on the Business Day immediately preceding the date of issuance.

 

The Trustee has been appointed
registrar for the Notes (the “Registrar,” which term includes any successor registrar appointed by the Issuer), and
the Registrar will maintain at its office in The City of New York a register for the registration and transfer of Notes. This
Note may be transferred at the aforesaid office of the Registrar by surrendering this Note for cancellation, accompanied by a
written instrument of transfer in form satisfactory to the Issuer and the Registrar and duly executed by the registered holder
hereof in person or by the holder’s attorney duly authorized in writing, and thereupon the Registrar shall issue in the
name of the transferee or transferees, in exchange herefor, a new Note or Notes having identical terms and provisions and having
a like aggregate principal amount in authorized denominations, subject to the terms and conditions set forth herein; provided,
however, that the Registrar will not be required (i) to register the transfer of or exchange any Note that has been called for
redemption in whole or in part, except the unredeemed portion of Notes being redeemed in part, (ii) to register the transfer of
or exchange any Note if the holder thereof has exercised his right, if any, to require the Issuer to repurchase such Note in whole
or in part, except the portion of such Note not required to be repurchased, or (iii) to register the transfer of or exchange Notes
to the extent and during the period so provided in the Senior Indenture with respect to the redemption of Notes. Notes are exchangeable
at said office for other Notes of other authorized denominations of equal aggregate principal amount having identical terms and
provisions. All such exchanges and transfers of Notes will be free of charge, but the Issuer may require payment of a sum sufficient
to cover any tax or other governmental charge in connection therewith. All Notes surrendered for exchange shall be accompanied
by a written instrument of transfer in form satisfactory to the Issuer and the Registrar and executed by the registered holder
in person or by the holder’s attorney duly authorized in writing. The date of registration of any Note delivered upon any
exchange or transfer of Notes shall be such that no gain or loss of interest results from such exchange or transfer.

 

In case this Note shall at
any time become mutilated, defaced or be destroyed, lost or stolen and this Note or evidence of the loss, theft or destruction
thereof (together with the indemnity hereinafter referred to and such other

 

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documents
or proof as may be required in the premises) shall be delivered to the Trustee, the Issuer in its discretion may execute a new
Note of like tenor in exchange for this Note, but, if this Note is destroyed, lost or stolen, only upon receipt of evidence satisfactory
to the Trustee and the Issuer that this Note was destroyed or lost or stolen and, if required, upon receipt also of indemnity
satisfactory to each of them. All expenses and reasonable charges associated with procuring such indemnity and with the preparation,
authentication and delivery of a new Note shall be borne by the owner of the Note mutilated, defaced, destroyed, lost or stolen.

 

The Senior Indenture
provides that (a) if an Event of Default (as defined in the Senior Indenture) due to the default in payment of principal of,
premium, if any, or interest on any series of debt securities issued under the Senior Indenture, including the series of
Notes of which this Note forms a part, shall have occurred and be continuing, either the Trustee or the holders of not less
than 25% in aggregate principal amount of the outstanding debt securities of each affected series, voting as one class, by
notice in writing to the Issuer and to the Trustee, if given by the securityholders, may then declare the principal of all
debt securities of all such series and interest accrued thereon to be due and payable immediately and (b) if an Event of
Default due to certain events of bankruptcy, insolvency or reorganization of the Issuer shall have occurred and be
continuing, either the Trustee or the holders of not less than 25% in aggregate principal amount of all outstanding debt
securities issued under the Senior Indenture, voting as one class, by notice in writing to the Issuer and to the Trustee, if
given by the securityholders, may declare the principal of all such debt securities and interest accrued thereon to be due
and payable immediately, but upon certain conditions such declarations may be annulled and past defaults may be waived
(except a continuing default in payment of principal, premium, if any, or interest on such debt securities) by the holders of
a majority in aggregate principal amount of the debt securities of all affected series then outstanding.

 

The Senior Indenture
permits the Issuer and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount
of the debt securities of all series issued under the Senior Indenture then outstanding and affected (voting as one class),
to execute supplemental indentures adding any provisions to or changing in any manner the rights of the holders of each
series so affected; provided that the Issuer and the Trustee may not, without the consent of the holder of each outstanding
debt security affected thereby, (i) extend the final maturity of any such debt security, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption
thereof, or change the currency of payment thereof, or reduce the amount of any original issue discount security payable upon
acceleration or provable in bankruptcy, or modify or amend the provisions for conversion of any currency into any other
currency, or modify or amend the provisions for conversion or exchange of the debt security for securities of the Issuer or
other entities or for other property or the cash value of the property (other than as provided in the antidilution provisions
or other similar adjustment provisions of the debt securities or otherwise in accordance with the terms thereof), or alter
certain provisions of the Senior Indenture relating to debt securities not denominated in U.S. dollars or impair or affect
the rights of any holder of any series to institute suit for the payment thereof or (ii) reduce the aforesaid percentage in
principal amount of debt securities of any series the consent of the holders of which is required for any such supplemental
indenture.

 

Except as set forth
below, if the principal of, premium, if any, or interest on this Note is payable in a Specified Currency other than U.S.
dollars and such Specified Currency is not available to the Issuer for making payments hereon due to the imposition of
exchange controls or other circumstances beyond the control of the Issuer or is no longer used by the government of the
country issuing such currency or for the settlement of transactions by public institutions within the international banking
community, then the Issuer will be entitled to satisfy its obligations to the holder of this Note by making such payments in
U.S. dollars on the basis of the Market Exchange Rate on the date of such payment or, if the Market Exchange Rate is not
available on such date, as of the most recent practicable date; provided, however, that if the euro has been substituted for
such Specified Currency, the Issuer may at its option (or shall, if so required by applicable law) without the consent of the
holder of this Note effect the payment of principal of, premium, if any, or interest on any Note denominated in such
Specified Currency in euro in lieu of such Specified Currency in conformity with legally applicable measures taken pursuant
to, or by virtue of, the Treaty establishing the European Community, as amended. Any payment made under such circumstances in
U.S. dollars or euro where the required payment is in an unavailable Specified Currency will not constitute an Event of
Default. If such Market Exchange Rate is not then available to the Issuer or is not published for a particular Specified
Currency, the Market Exchange Rate will be based on the highest bid quotation in The City of New York received by the
Exchange Rate Agent at approximately 11:00 a.m., New York City time, on the second Business Day preceding the date of such
payment from three recognized foreign exchange dealers (the “Exchange Dealers”) for the purchase by the quoting
Exchange Dealer of the Specified Currency for U.S. dollars for settlement on the payment date, in the

 

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aggregate amount of the Specified Currency payable
to those holders or beneficial owners of Notes and at which the applicable Exchange Dealer commits to execute a contract. One of
the Exchange Dealers providing quotations may be the Exchange Rate Agent unless the Exchange Rate Agent is an affiliate of the
Issuer. If those bid quotations are not available, the Exchange Rate Agent shall determine the market exchange rate at its sole
discretion.

 

The “Exchange Rate Agent”
shall be Morgan Stanley & Co. LLC, unless otherwise indicated on the face hereof. All determinations referred to above made
by, or on behalf of, the Issuer or by, or on behalf of, the Exchange Rate Agent shall be at such entity’s sole discretion
and shall, in the absence of manifest error, be conclusive for all purposes and binding on holders of Notes.

 

So long as this Note
shall be outstanding, the Issuer will cause to be maintained an office or agency for the payment of the principal of,
premium, if any, and interest on this Note as herein provided in the Borough of Manhattan, The City of New York, and an
office or agency in said Borough of Manhattan for the registration, transfer and exchange as aforesaid of the Notes. The
Issuer may designate other agencies for the payment of said principal, premium and interest at such place or places (subject
to applicable laws and regulations) as the Issuer may decide. So long as there shall be such an agency, the Issuer shall keep
the Trustee advised of the names and locations of such agencies, if any are so designated. If any European Union Directive on
the taxation of savings comes into force, the Issuer will, to the extent possible as a matter of law, maintain a Paying Agent
in a Member State of the European Union that will not be obligated to withhold or deduct tax pursuant to any such Directive
or any law implementing or complying with, or introduced in order to conform to, such Directive.

 

With respect to moneys
paid by the Issuer and held by the Trustee or any Paying Agent for payment of the principal of, premium, if any, or interest
on any Notes that remain unclaimed at the end of two years after such principal, interest or premium shall have become due
and payable (whether at maturity or upon call for redemption or otherwise), (i) the Trustee or such Paying Agent shall notify
the holders of such Notes that such moneys shall be repaid to the Issuer and any person claiming such moneys shall thereafter
look only to the Issuer for payment thereof and (ii) such moneys shall be so repaid to the Issuer. Upon such repayment all
liability of the Trustee or such Paying Agent with respect to such moneys shall thereupon cease, without, however, limiting
in any way any obligation that the Issuer may have to pay the principal of, premium, if any, or interest on this Note as the
same shall become due.

 

No provision of this Note
or of the Senior Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on this Note at the time, place, and rate, and in the coin or currency, herein prescribed
unless otherwise agreed between the Issuer and the registered holder of this Note.

 

Prior to due presentment of
this Note for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the holder
in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of the
Issuer, the Trustee or any such agent shall be affected by notice to the contrary.

 

No recourse shall be had for
the payment of the principal of, premium, if any, or interest on this Note, for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Senior Indenture or any indenture supplemental thereto, against any incorporator, shareholder,
officer or director, as such, past, present or future, of the Issuer or of any successor corporation, either directly or through
the Issuer or any successor corporation, 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 part of the consideration for
the issue hereof, expressly waived and released.

 

This Note shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

 

As used herein, the term
“U.S. Alien” means any person who is, for U.S. federal income tax purposes, (i) a nonresident alien individual, (ii)
a foreign corporation, (iii) a nonresident alien fiduciary of a foreign estate or trust or (iv) a foreign partnership one or more
members of which is, for U.S. federal income tax purposes, a nonresident alien individual, a foreign corporation or a nonresident
alien fiduciary of a foreign estate or trust.

 

All terms used in this Note
which are defined in the Senior Indenture and not otherwise defined herein shall

 

     19

     

    

have
the meanings assigned to them in the Senior Indenture.

 

     20

     

    

ABBREVIATIONS

 

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

 

	TEN COM	-	as tenants in common
	 	 	 
	TEN ENT	-	as tenants by the entireties
	 	 	 
	JT TEN	-	as joint tenants with right of survivorship and not as tenants in common

 

	UNIF GIFT MIN ACT	-	 	Custodian	 
	 		(Minor)	 	(Cust)

 

	Under Uniform Gifts to Minors Act	 
	 	(State)

 

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

 

 

 

 

     21

     

    

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

 

	 
	[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

 

 

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

 

 

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

 

	 	 
	Dated:    	 

 

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

 

 

     22

     

    

OPTION TO ELECT REPAYMENT

 

The
undersigned hereby irrevocably requests and instructs the Issuer to repay the within Note (or portion thereof specified below)
pursuant to its terms at a price equal to the principal amount thereof, together with interest to the Optional Repayment Date,
to the undersigned at

 

	 
	 
	 
	 
	 
	(Please print or
typewrite name and address of the undersigned)

 

 

If less than the entire principal
amount of the within Note is to be repaid, specify the portion thereof which the holder elects to have repaid: ___________________
; and specify the denomination or denominations (which shall not be less than the minimum authorized denomination) of the Notes
to be issued to the holder for the portion of the within Note not being repaid (in the absence of any such specification, one
such Note will be issued for the portion not being repaid): _________________________ .

 

	Dated:	 	NOTICE: The signature on this Option to Elect Repayment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement.

     23

     

    

[SCHEDULE A]15

 

GLOBAL
NOTE SCHEDULE OF EXCHANGES

 

The initial principal amount
of this Note is $_________________ . [In accordance with the [Unit Agreement dated [ ], 20[__] among the Issuer, The Bank of New
York Mellon, as Unit Agent, as Collateral Agent and as Trustee under the Indenture referred to therein and the Holders from time
to time of the Units described therein] [the Unit Agreement Without Holders’ Obligations dated as of [ ], 20[__], between
the Company and The Bank of New York Mellon, as Unit Agent, as Trustee and Paying Agent under the Indenture referred to therein,
and as Warrant Agent under the Warrant Agreement referred to therein], the following (A) reductions of the principal amount of
this Note by cancellation upon the application of such amount to the settlement of Purchase Contracts or the exercise of Warrants
or for any other reason or (B) exchanges of portions of this Note for an interest in a Note that has been separated from a Unit
(a “Separated Note”) have been made:]16 [The following (A) reductions of the principal amount of this Note
by cancellation upon the application of such amount to the settlement of Purchase Contracts or the exercise of Warrants or for
any other reason or (B) exchanges of an interest in a Note that is part of a Unit (an “Attached Unit Note”) for an
interest in this Note have been made:]17

 

	
        Date of Exchange or

        Cancellation

         
	 	
        Principal Amount

        Cancelled

	 	
        Principal Amount

        Exchanged For

        

        Separated Note (13)

	 	
        Reduced Principal Amount Outstanding
        Following Such Exchange or

        Cancellation

	 	
        Principal Amount of Attached Unit Note
        Exchanged For Interest

        in this Note(14)

	 	
        Increased Principal Amount of this Note
        Outstanding Following

        Such Exchange(14)

	 	
        Notation Made by or on

        Behalf of Paying Agent

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

15 Schedule A needed only if this Note is
issued as part of, or in relation to, a Unit. 

16 Applies only if this Note remains part
of a Unit.

17 Applies only if this Note has been separated
from a Unit.

 

     24

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