Document:

ex10-1.htm

Exhibit 10.1

 

DIRECTOR’S AGREEMENT

THIS AGREEMENT (this “Agreement”) is made effective as of August 6, 2010 (“Effective Date”), by and between UTEC, Inc., a Nevada corporation (the “Company”), with its principal office located at 7230 Indian Creek Ln, Ste 201, Las Vegas, NV 89149, and _____________ (“Director”), a resident of the State of ________.

Recitals

A.  Director was appointed as a member of the Company’s Board of Directors (the “Board of Directors”) effective July 30, 2010 (the “Appointment Date”); and

B.  The Company has required, as a condition for service on its Board of Directors, that all members of the Board of Directors enter into an agreement that delineates the rights, duties and responsibilities of such members of the Board of Directors; and

C.  The Company and Director agree that this Agreement provides important directives outlining the duties, obligations, responsibilities and rights that are expected of members of the Board of Directors and Director desires to serve thereon in compliance with the requirements of this Agreement and the Company’s Articles of Incorporation, as amended (the “Articles”), and Bylaws, as amended from time to time (“Bylaws”):

Agreement

NOW, THEREFORE, intending to be legally bound, the parties agree as follows:

1.  Term.

                (a)  Subject to the provisions set forth herein, the term of this Agreement shall be deemed to commence on the Effective Date and shall continue until the election, qualification and assumption of office by Director’s successor as a member of the Board of Directors, unless earlier terminated by Director’s resignation or removal as a director of the Company as provided in the Articles, Bylaws and applicable law.

(b)  Notwithstanding anything in this Agreement to the contrary, the term of this Agreement will terminate if Director is not re-elected at the next annual or special meeting of stockholders of the Company for the election of directors (“Stockholder’s Meeting”).

(c) In the event that Director is re-elected or otherwise serves as a member of the Board of Directors after the next Stockholder’s Meeting, then, unless a new agreement pertaining to his role as a member of the Board of Directors is entered into specifically superseding the provisions of this Agreement, this Agreement shall be deemed to remain in full force and effect for so long as Director serves as a member of the Board of Directors.

2.  Directorship and Responsibilities.

(a)  Directorship. Director shall serve as a member of the Board of Directors subject to the terms and conditions of this Agreement. Director shall perform such duties and responsibilities as are normally related to such directorship in accordance with the Company’s Bylaws and applicable law, including those services described on Exhibit A, (the “Services”). Director hereby agrees to use his best efforts to provide the Services. Director shall comply with all statutes, rules, regulations and orders of any governmental or quasi-governmental authority, which are applicable to the performance of the Services, and Company’s rules, regulations, and practices as they may from time-to-time be adopted or modified.

(b)  Other Activities.  Director may be employed by another entity, may serve on other boards of directors or advisory boards, and may engage in any other business activity (whether or not pursued for pecuniary advantage), as long as such outside activities do not violate Director’s obligations under this Agreement or Director’s fiduciary obligations to the stockholders.  As of the date of this Agreement, Director is employed by the entities, and serves on the board of directors or advisory boards, set forth in Exhibit B. The beneficial ownership by Director of less than a 6% interest in an entity, by itself, shall not constitute a violation of this duty.

 

 

  

  

  

 

(c)  No Conflicts.  Director represents that, to the best of his knowledge, Director has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, and Director agrees not to enter into any agreement or obligation that could create such a conflict, without the approval of the Company’s Chief Executive Officer or a majority of the members of the Board of Directors.

                (d)  Disclosure of Conflicts.  If, at any time, Director is required to make any disclosure or take any action that may conflict with any of the provisions of this Agreement, Director shall promptly notify the Company’s Chief Executive Officer or the Board of Directors of such obligation, prior to making such disclosure or taking such action.

(e)  Covenant Not to Disparage.  Director hereby irrevocably covenants and agrees that during the term of this Agreement and after its termination, he will refrain from making any remarks that could be construed by anyone, under any circumstances, as disparaging, directly or indirectly, specifically, through innuendo or by inference, whether or not true, about the Company, its constituent members, or its officers, directors, stockholders, employees, agent or affiliates, whether related to the business of the Company, to other business or financial matters or to personal matters.

(f)  Unauthorized Acts. Director hereby covenants and agrees that he will not do any act or incur any obligation on behalf of the Company of any kind whatsoever, except as expressly authorized by the Board of Directors or by the Company’s stockholders pursuant to duly adopted action thereby.

                3.   Compensation and Benefits.

(a)  Director’s Fee.  In consideration of the services to be rendered under this Agreement, Company shall pay Director a fee at the rate of $1,000 per meeting (the “Director’s Fee”).

(b)  Stock and Stock Options.

(i) Equity Award.  The Company hereby grants to Director, effective as of the Effective Date, as an incentive for entering into this Agreement two million (2,000,000) shares of the Company’s common stock (the “Securities”).

(ii) Discretionary Grants.  In addition to the Securities granted herein to Director, at the sole discretion of the Board of Directors or any compensation committee of thereof, Director shall be eligible for grants of stock options and other equity awards of a level commensurate with his position and similar to other members of the Board of Directors, subject to such terms and conditions as approved by the Board of Directors or any compensation committee thereof.

(c)  Benefits.  To the extent Director is also an executive officer of the Company, the Company will provide Director with any additional benefits as may be made generally available by Company to its senior executives, or employees now or in the future.

(d)  Expenses.  The Company shall reimburse Director for all reasonable business expenses incurred in the performance of his duties hereunder in accordance with the Company’s expense reimbursement guidelines.

                (e)  Indemnification.  The Company will defend, indemnify and hold Director harmless from all liabilities, suits, judgments, fines, penalties or disabilities, including expenses associated directly therewith (e.g., legal fees, court costs, investigative costs, witness fees, etc.) resulting from any reasonable actions taken by him in good faith on behalf of the Company, its affiliates or for other persons or entities at the request of the Board of Directors, except for intentional misconduct, gross negligence and fraud, to the fullest extent legally permitted, and in conjunction therewith, shall make reasonable efforts that all required expenditures are made in a manner making it unnecessary for Director to incur any out of pocket expenses; provided, however, that Director permits the Company to select and supervise all personnel involved in such defense and that Director waives any conflicts of interest that such personnel may have as a result of also representing the Company, its stockholders or other personnel and agrees to hold the Company harmless from any matters involving such representation, except such as involve fraud or bad faith.

 

  

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(f)  Records.  Director shall have reasonable access to the Company’s books and records, as necessary to enable Director to fulfill his obligations as a director of the Company.

4.  Exempt Nature of Securities to be Issued.  The Securities will be issued without registration under the provisions of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”) or the securities regulatory laws and regulations of the State of Nevada (the “Nevada Act”) or the State of Kansas (the “Kansas Act”) pursuant to exemptions provided under Section 4(2) and 4(6) of the Securities Act and comparable provisions of the Nevada Act and Kansas Act.

(a)  All of the Securities will bear legends restricting their transfer, sale, conveyance or hypothecation unless such Securities are either registered under the provisions of Section 5 of the Securities Act and under the Nevada Act and Kansas Act or an opinion of legal counsel, in form and substance satisfactory to legal counsel to the Company is provided to the Company’s legal counsel to the effect that such registration is not required as a result of applicable exemptions thereto; and

(b)  The Company’s transfer agent shall be instructed not to transfer any of the Securities unless the Company’s advises it that such transfer is in compliance with all applicable laws.

5.  Warranties, Representations and Covenants of Director.

(a)  Warranties and Representations.

(i) Director has full power and authority to execute this Agreement, to make the representations, warranties and covenants herein contained and to perform all of the obligations hereunder.

(ii) Director has no present plan or intention to sell, transfer, exchange, pledge or otherwise dispose of, including by means of a distribution by a partnership to its partners, or a corporation to its stockholders, or any other transaction which results in a reduction in the risk of ownership of any of the securities of the Company that Director currently owns or may acquire during the term of this Agreement, including the Securities, or any securities that may be paid as a dividend or otherwise distributed thereon with respect thereto or issued or delivered in exchange or substitution therefore. Director does not presently have reason to anticipate a change in such intention.

(iii) Director hereby: (1) acknowledges that Director or his advisors have examined information concerning the Company contained in the Company’s business plan, as well as the Company’s books and records and have questioned the Company’s officers and directors as to such matters involving the Company as Director deemed appropriate, (2) acknowledges that he has received all the information he has requested from the Company and he considers necessary or appropriate for deciding whether to acquire the Securities, (3) represents that he has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities and to obtain any additional information necessary to verify the accuracy of such information and (4) further represents that he has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risk of this investment.

(iv)  Director acknowledges that investment in the Securities involves a high degree of risk, and represents that he is able, without materially impairing his financial condition, to hold the Securities for an indefinite period of time and to suffer a complete loss of his investment.

(v)  If any of Director’s representations in this Agreement cease to be true at any time during the term of this Agreement, Director will deliver to the Company’s legal counsel a written statement to that effect, specifying the nature of the change, which shall be signed by Director.

(b)  Transfer or Encumbrance.

(i)  Director agrees not to transfer, sell, exchange, pledge or otherwise dispose of or encumber any of the Company’s Securities acquired or to make any offer or agreement relating thereto unless in accordance with the Company’s code of ethics, insider trading policy (and other applicable Company policies) and applicable law.

 

 

  

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(ii)  No transactions permitted pursuant to Section 5(a) shall be effected until:

(1)  Legal counsel representing Director (which legal counsel is reasonably satisfactory to the Company ) shall have advised the Company in a written opinion letter satisfactory to the Company and the Company’s legal counsel, and upon which the Company and its legal counsel may rely, that no registration under the Securities Act or applicable state blue sky laws is required in connection with the proposed sale, transfer or other disposition and that all requirements under the Exchange Act, including Sections 13 and 16 thereof have been complied with; or

(2)  A registration statement under the Securities Act covering the Company’s securities proposed to be sold, transferred or otherwise disposed of, describing the manner and terms of the proposed sale, transfer or other disposition, and containing a current prospectus, shall have been filed with the Commission and made effective under the Securities Act; or

(3)  An authorized representative of the Commission shall have rendered written advice to Director (sought by Director or Director’s legal counsel, with a copy thereof and all other related communications delivered to the Company) to the effect that the Commission would take no action, or that the staff of the Commission would not recommend that the Commission take any action, with respect to the proposed disposition if consummated; or

(4) The Company’s legal counsel and President shall have specifically consented to the transaction in writing pursuant to authority delegated in a specific resolution of the Board of Directors.

(iii)  The Company will not be required (1) to transfer on its books any Securities that have been sold or otherwise transferred in violation of any of the provisions of this Agreement, or (2) to treat as owner of such Securities, or to accord the right to vote or pay dividends, to any purchaser or other transferee to whom such Securities have been so transferred.

(iv) Director agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.  Director understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Securities, together with any other legends that may be required by state or federal securities laws, the Articles or Bylaws, any other agreement between Director and the Company or any agreement between Director and any third party:

THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).  THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT.

(c)  No Proxy Solicitations.  Director will not, and will not permit any entity under his control to:

(i) Solicit proxies or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) with respect to any meetings of the Company’s stockholders;

(ii) Initiate a stockholders’ vote or action by consent of the Company’s stockholders with respect to any stockholders’ action; or

(iii) Become a member of a “group” (as such term is used in Section 13(d) of the Exchange Act) with respect to any voting securities of the Company.

 

 

  

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(d)  Further Assurances.  Director agrees and covenants that at any time and from time to time Director will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Agreement and to comply with state or federal securities laws or other regulatory approvals.

(e)  No Limitation on Discretion as Director.  This Section 5 is intended solely to apply to the exercise by Director in his individual capacity of rights attaching to ownership of the Company’s securities, and nothing herein shall be deemed to apply to, or to limit in any manner the discretion of Director with respect to, any action which may be taken or omitted by his acting in his fiduciary capacity as a member of the Board of Directors or any committee thereof.

6.  Termination.

(a)  Right to Terminate.  At any time, Director may be removed as provided in the Articles, Bylaws and applicable law. Director may resign as director as provided in Company’s Articles, Bylaws, and applicable law. Notwithstanding anything to the contrary contained in or arising from this Agreement or any statements, policies, or practices of Company, neither Director nor Company shall be required to provide any advance notice or any reason or cause for termination of Director’s status as a director, except as provided in Company’s Articles, Bylaws, and applicable law.

                (b)  Effect of Termination as Director.  Upon termination of Director’s status as a director of the Company, this Agreement will terminate. The Company shall pay to Director all compensation and benefits to which Director is entitled up through the date of termination. Thereafter, all of Company’s obligations under this Agreement shall cease, except as provided in Section 7(c).

7.  Termination Obligations.

                (a)  Return of Property.  Director agrees that all property, including, without limitation, all equipment, devices, tangible proprietary information, documents, data, records, disks, computer files, proposals, lists, correspondence, notes, contracts, computer-generated materials or other materials, other documents or property, reproductions of any aforementioned items provided to or prepared by Director incident to, and pursuant in the performance of, the Services to the Company, or Confidential Information (as defined below) that Director may have in Director’s possession or control belong to the Company and shall be promptly returned upon termination of this Agreement or upon the Company’s earlier request.

                (b)  Cooperation.  Director agrees that following any termination of this Agreement, he shall cooperate with Company in the winding up or transferring to other directors of any pending work and shall also cooperate with Company (to the extent allowed by law, and at Company’s expense) in the defense of any action brought by any third party against the Company that relates to the Services.

(c)  Payment of Accrued Obligations.  Upon termination of this Agreement, all obligations of the Company to Director will cease, other than the obligation to pay Director any accrued Director’s Fee for Services rendered through to the date of termination and any accrued but unpaid reasonable business expenses incurred in the performance of the Services as of the date of termination.  The Company shall pay Director any such accrued obligations within thirty (30) days of termination.

(d)  General.  The Company and Director agree that their obligations under this Section, as well as Section 8 and Section 2(e), shall survive the termination of this Agreement.

8.  Nondisclosure Obligations.

(a)  Confidentiality. Director shall maintain in confidence and shall not, directly or indirectly, disclose or use, either during or after the term of this Agreement, any Confidential Information (as defined below) belonging to the Company, whether or not it is in written or permanent form, except to the extent necessary to perform the Services, as required by a lawful government order or subpoena, or as authorized in writing by the Company. These nondisclosure obligations also apply to proprietary and confidential information belonging to customers and suppliers of the Company, and other third parties, learned by Director as a result of performing the Services.

  

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(b)  “Confidential Information” means all information pertaining in any manner to the business of the Company, unless:

(i)  the information is or becomes publicly known through lawful means;

(ii)  the information was part of Director’s general knowledge prior to his relationship with Company; or

                                (iii)  the information is disclosed to Director without restriction by a third party who rightfully possesses the information and did not learn of it from Company.

                9.  Dispute Resolution.

                (a)  The parties agree that any suit, action, or proceeding between Director (and his attorneys, successors, and assigns) and the Company (and its affiliates, stockholders, directors, officers, employees, members, agents, successors, attorneys, and assigns) relating to the Services or the termination of those Services shall be determined by an independent arbitrator appointed by the American Arbitration Association. In connection with the appointment of an arbitrator, both parties agree to submit the question to final and binding arbitration by an appointee of the American Arbitration Association and to cooperate with the arbitrator, with all costs of arbitration paid by the Company.

Both the Company and Director shall be precluded from bringing or raising in court or another forum any dispute that was or could have been submitted to binding arbitration.  This arbitration requirement does not apply to claims for any provisional or injunctive relief remedies as set forth in any Nevada statute or law.  The parties irrevocably agree to submit to the jurisdiction of the federal and state courts within the County of Sedgwick, Kansas for any injunctive relief and in connection with any suit arising out of the confirmation or enforcement of any award rendered by the arbitrator, and waive any defense based on forum non convenience or improper venue with respect thereto.

THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF DIRECTOR’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF DIRECTOR’S RELATIONSHIP WITH THE COMPANY.

                (b) Attorneys’ Fees.  Should any litigation, arbitration or other proceeding be commenced between the parties concerning the rights or obligations of the parties under this Agreement, the party prevailing in such proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its attorneys’ fees in such proceeding. This amount shall be determined by the court in such proceeding or in a separate action brought for that purpose.

                (c)  Costs of Enforcement.  In addition to any amount received as attorneys’ fees, the prevailing party also shall be entitled to receive from the party held to be liable, an amount equal to the attorneys’ fees and costs incurred in enforcing any judgment against such party. This Section is severable from the other provisions of this Agreement and survives any judgment and is not deemed merged into any judgment.

                10.  Entire Agreement.

This Agreement is intended to be the final, complete, and exclusive statement of the terms of Director’s relationship solely with respect to his position as Director of the Company. This Agreement entirely supersedes and may not be contradicted by evidence of any prior or contemporaneous statements or agreements pertaining to Director’s relationship as Director.

 

                11.   Amendments; Waivers.

                This Agreement may not be amended except by a writing signed by Director and by a duly authorized representative of the Company other than Director. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.

 

 

  

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12.   Assignment.

Director agrees that Director will not assign any rights or obligations under this Agreement, with the exception of Director’s ability to assign rights with respect to the Securities to the extent permitted by applicable law. Nothing in this Agreement shall prevent the consolidation, merger or sale of Company or a sale of all or substantially all of its assets.

13.  Severability.

If any provision of this Agreement shall be held by a court or arbitrator to be invalid, unenforceable, or void, such provision shall be enforced to fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect. In the event that the time period or scope of any provision is declared by a court or arbitrator of competent jurisdiction to exceed the maximum time period or scope that such court or arbitrator deems enforceable, then such court or arbitrator shall reduce the time period or scope to the maximum time period or scope permitted by law.  If any one or more provisions of this Agreement shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make such provision or its application valid and enforceable.

14.  Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regards to principles of conflicts of law.

15.   Interpretation.

This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement.

16.   Binding Agreement.

Each party represents and warrants to the other that the person(s) signing this Agreement below has authority to bind the party to this Agreement and that this Agreement will legally bind both the Company and Director. This Agreement will be binding upon and benefit the parties and their heirs, administrators, executors, successors and permitted assigns. To the extent that the practices, policies, or procedures of Company, now or in the future, are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control. Any subsequent change in Director’s responsibilities or compensation as Director will not affect the validity or scope of the remainder of this Agreement.

17.   Director Acknowledgment.

Director acknowledges Director has had the opportunity to consult legal counsel concerning this Agreement, that Director has read and understands the Agreement, that Director is fully aware of its legal effect, and that Director has entered into it freely based on his own judgment and not on any representations or promises other than those contained in this Agreement.  Director acknowledges that Director has not relied and will not rely upon the Company or the Company’s legal counsel with respect to any tax consequences related to the terms and conditions of this Agreement.  Director assumes full responsibility for all such consequences and for the preparation and filing of all tax returns and elections which may or must be filed in connection with this Agreement.

18.   Counterparts.

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile or PDF copies shall be considered originals for all purposes.

 

 

  

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IN WITNESS WHEREOF, the parties have executed this Director’s Agreement as of the date first above written.

 

	
UTEC, Inc.

	  	
DIRECTOR

	  	  	  
	  	  	  
	
By:

	  	  	  
	 	Kenneth B. Liebscher, President	 	[Name]

 

 

  

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EXHIBIT A

DESCRIPTION OF SERVICES

Responsibilities as Director

Director shall have all responsibilities of a Director of the Company imposed by Nevada or applicable law, the Articles and Bylaws. These responsibilities shall include, but shall not be limited to, the following:

1.  Attendance.  Use best efforts to attend scheduled meetings of Company's Board of Directors;

2.  Act as a Fiduciary.  Represent the stockholders and the interests of Company as a fiduciary; and

3.  Participation.  Participate as a full voting member of Company's Board of Directors in setting overall objectives, approving plans and programs of operation, formulating general policies, offering advice and counsel, serving on Board Committees, and reviewing management performance.

 

 

  

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EXHIBIT B

AUTHORIZED ACTIVITIES

 

 

10Form of Global Security

 Exhibit 4.2 

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

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO BARCLAYS BANK PLC, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 BY PURCHASING THIS SECURITY, THE HOLDER AGREES TO CHARACTERIZE THIS SECURITY FOR
ALL U.S. FEDERAL INCOME TAX PURPOSES AS PROVIDED IN SECTION 10 ON THE FACE OF THIS SECURITY. 

			
	CUSIP No. 06740L485	  	ISIN: US06740L4858

Common Code: [            ] 

BARCLAYS BANK PLC 

GLOBAL MEDIUM-TERM NOTES, SERIES A 
  

 

iPath®
 US Treasury Flattener ETN 
 due August 13, 2020 

The following terms apply to this Security. Capitalized terms that are not defined the first time they are used in this Security shall
have the meanings indicated elsewhere in this Security. 

 

 Face Amount: $[            ]
equal to [            ] Securities at $50 per Security 
 Index:
Barclays Capital US Treasury 2Y/10Y Yield Curve IndexTM 
 Inception Date: August 9, 2010 

Original Issue Date: August 12, 2010 

Interest Rate: The principal of this Security shall not bear interest. 

Denomination: $50 
 Payment at
Maturity: On the Maturity Date, unless such Securities were previously redeemed on a Redemption Date as provided under “Early Redemption”, the Company shall redeem this Security by paying to the Holder a cash payment per Security equal
to the Closing Indicative Note Value on the Final Valuation Date. 
 Closing Indicative Note Value: The Closing Indicative Note Value for
each Security on the Inception Date will equal $50. On each subsequent calendar day until the Maturity Date or an Early Redemption Date with respect to such Security, the

 
Closing Indicative Note Value for such Security will equal (1) the Closing Indicative Note Value on the immediately preceding calendar day plus (2) the Daily Index Performance
Amount plus (3) the Daily Interest minus (4) the Daily Investor Fee; provided that if such calculation results in a negative value, the Closing Indicative Note Value will be $0. If the Securities undergo a split or
reverse split, the Closing Indicative Note Value will be adjusted accordingly. 
 Daily Index Performance Amount: The Daily Index
Performance Amount for each Security on the Inception Date and on any calendar day that is not an Index Business Day will equal $0. On any other Index Business Day, the Daily Index Performance Amount for each Security will equal (1) the product
of (a) the Index Multiplier times (b) the difference of (i) the closing level of the Index on such Index Business Day minus (ii) the closing level of the Index on the immediately preceding Index Business Day
minus (2) the Index Rolling Cost on such Index Business Day. 

  
 (Face of Security
continued on next page) 
  

 –2– 

 Index Multiplier: –$0.10 

Index Rolling Cost: On any calendar day that is not a Roll Day, the Index Rolling Cost for each Security will equal $0. On any Roll Day, the Index
Rolling Cost for each Security will equal $0.01. 
 Daily Interest: The Daily Interest for each Security on the Inception Date will equal
$0. On each subsequent calendar day until the Maturity Date or an Early Redemption Date with respect to such Security, the Daily Interest for such Security will equal (1) the Closing Indicative Note Value on the immediately preceding calendar
day times (2) the T-Bill rate divided by (3) 360. 
 T-Bill Rate: The T-Bill Rate will equal the most recent
weekly investment rate for 28-day U.S. Treasury bills effective on the preceding Business Day in New York City as published on Bloomberg under the ticker symbol “USB4WIR”. 

Daily Investor Fee: The Daily Investor Fee for each Security on the Inception Date will equal $0. On each subsequent calendar day until the
Maturity Date or an Early Redemption Date with respect to such Security, the Daily Investor Fee for such Security will equal (1) the Closing Indicative Note Value on the immediately preceding calendar day times (2) the Fee Rate
divided by (3) 365. 

 

 Fee Rate: 0.75%. 

Early Redemption: The Holder may, subject to the notification requirements provided under Section 5(a) hereof, require the Company to redeem
the Holder’s Securities in whole or in part on any Early Redemption Date during the term of the Securities (“Holder Redemption”). If the Holder requires the Company to redeem the 

Holder’s Securities on any Early Redemption Date, the Holder will receive a cash payment per Security equal to the applicable Closing Indicative Note
Value on the applicable Valuation Date. The Company shall not be required to redeem fewer than 50,000 Securities at one time, provided that the Company may from time to time in its sole discretion reduce, in part or in whole, this minimum
redemption amount on a consistent basis for all Holders who hold Securities at the time the reduction becomes effective. 
 Calculation
Agent: Barclays Bank PLC 
 Defeasance: Neither full defeasance nor covenant defeasance applies to this Security. 

Listing: NYSE Arca stock exchange 

  
 (Face of Security
continued on next page) 
  

 –3– 

 The Barclays Capital US Treasury 2Y/10Y Yield Curve IndexTM is a trademark of
Barclays Bank PLC (the “index sponsor”). 
 The index sponsor does not guarantee the accuracy and/or completeness of the Index, any
data included therein, or any data from which it is based, and the index sponsor shall have no liability for any errors, omissions, or interruptions therein. 

The index sponsor makes no warranty, express or implied, as to the results to be obtained from the use of the Index. The index sponsor makes no express
or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall the index
sponsor have liability for any special, punitive, indirect or consequential damages, lost profits, loss of opportunity or other financial loss, even if notified of the possibility of such damages. 

Neither the index sponsor nor any of its affiliates or subsidiaries or any of their respective directors, officers, employees, representatives, delegates
or agents shall have any responsibility to any person (whether as a result of negligence or otherwise) for any determination made or anything done (or omitted to be determined or done) in respect of the Index or publication of the level of the Index
(or failure to publish such value) and any use to which any person may put the Index or the level of the Index. In addition, although the index sponsor reserves the right to make adjustments to correct previously incorrectly published information,
including but not limited to the level of the Index, the index sponsor is under no obligation to do so and shall have no liability in respect of any errors or omissions. 

Nothing in this disclaimer shall exclude or limit liability to the extent such exclusion or limitation is not permitted by law. 

OTHER TERMS: 
 All terms
used in this Security that are not defined in this Security but are defined in the Indenture referred to on the reverse of this Security shall have the meanings assigned to them in the Indenture. Section headings on the face of this Security are for
convenience only and shall not affect the construction of this Security. 
 “Business Day” means a Monday,
Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions in New York City or London generally are authorized or obligated by law, regulation or executive order to close. 

“Default Amount” means, on any day, an amount in U.S. dollars, as determined by the Calculation Agent in its sole
discretion, equal to the cost of having a Qualified Financial Institution (selected as provided below) expressly assume the due and punctual payment of the principal of this Security, and the performance or observance of every covenant hereof and of
the Indenture on the part of the Company to be performed or observed with respect to this Security (or to undertake other obligations providing substantially equivalent economic value to the Holder of this Security as the Company’s obligations
hereunder). Such cost will equal (i) the lowest amount that a Qualified Financial Institution would charge to effect such assumption (or 

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 –4– 

 
undertaking) plus (ii) the reasonable expenses (including reasonable attorneys’ fees) incurred by the Holder of this Security in preparing any documentation necessary for such
assumption (or undertaking). During the Default Quotation Period, each Holder of this Security and the Company may request a Qualified Financial Institution to provide a quotation of the amount it would charge to effect such assumption (or
undertaking). If either party obtains a quotation, it must notify the other party in writing of the quotation. The amount referred to in clause (i) of this paragraph will equal the lowest (or, if there is only one, the only) quotation so
obtained, and as to which notice is so given, during the Default Quotation Period; provided that, with respect to any quotation, the party not obtaining the quotation may object, on reasonable and significant grounds, to the effectuation of
such assumption (or undertaking) by the Qualified Financial Institution providing such quotation and notify the other party in writing of such grounds within two Business Days after the last day of the Default Quotation Period, in which case that
quotation will be disregarded in determining the Default Amount. The “Default Quotation Period” shall be the period beginning on the day the Default Amount first becomes due and ending on the third Business Day after such due date,
unless no such quotation is obtained, or unless every such quotation so obtained is objected to within five Business Days after such due date as provided above, in which case the Default Quotation Period will continue until the third Business Day
after the first Business Day on which prompt notice of a quotation is given as provided above, unless such quotation is objected to as provided above within five Business Days after such first Business Day, in which case, the Default Quotation
Period will continue as provided in this sentence. Notwithstanding the foregoing, if the Default Quotation Period (and the subsequent two Business Day objection period) has not ended prior to the Final Valuation Date, then the Default Amount will
equal the Face Amount. 
 “Early Redemption Date” means the third Business Day following each Valuation Date,
other than the Final Valuation Date. The final Early Redemption Date will be the third Business Day following the Valuation Date that is immediately prior to the Final Valuation Date. 

“Final Valuation Date” means August 10, 2020, or if such date is not a Trading Day, the next succeeding Trading
Day; provided, however, that if the Calculation Agent determines that a Market Disruption Event occurs or is continuing on such date, the Final Valuation Date will be the first following Trading Day on which the Calculation Agent
determines that a Market Disruption Event does not occur and is not continuing, provided that in no event will the Final Valuation Date be postponed by more than five Trading Days. 

“Index Business Day” means a day on which the Chicago Board of Trade (“CBOT”) is open for business.

 “Index Component” means, with respect to the Securities, the 2-year Treasury futures contracts and 10-year
Treasury futures contracts underlying the Index, as traded on CBOT, as described in the Prospectus. 
 “Index
Sponsor” means Barclays Capital, a division of Barclays Bank PLC. 
 “Market Disruption Event” means,
with respect to the Securities, in the opinion of the Calculation Agent and determined in its sole discretion: (i) a material limitation, suspension or disruption in the trading of any Index Component which results in a failure by the trading

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 –5– 

 
facility on which the relevant contract is traded to report a daily contract reference price (the price of the relevant contract that is used as a reference or benchmark by market participants);
(ii) the daily contract reference price for any Index Component has increased or decreased from the previous day’s daily contract reference price by the maximum amount permitted under the applicable rules or procedures of the relevant
trading facility; (iii) failure by the Index Sponsor to publish the closing value of the Index or of the applicable trading facility or other price source to announce or publish the daily contract reference price for one of more Index
Components; (iv) any other event, if the Calculation Agent determines in its sole discretion that the event materially interferes with the ability of Barclays Bank PLC or the ability of any affiliates of Barclays Bank PLC to unwind all or a
material portion of a hedge with respect to the Securities that Barclays Bank PLC or any of its affiliates have effected or may effect. The following events will not be Market Disruption Events: (a) a limitation on the hours or numbers of days
of trading on a trading facility on which any Index Component is traded, but only if the limitation results from an announced change in the regular business hours of the relevant market; or (b) a decision by a trading facility to permanently
discontinue trading in any Index Component. 
 “Maturity Date” means August 13, 2020, provided that
if such date is not a Business Day, the Maturity Date will be the next succeeding Business Day; provided, however, that if the fifth Business Day preceding August 13, 2020 does not qualify as the Final Valuation Date referred to above,
then the Maturity Date will be the fifth Business Day following the Final Valuation Date. 
 “Qualified Financial
Institution” means, at any time, a financial institution organized under the laws of any jurisdiction in the United States of America or Europe that at such time has outstanding debt obligations with a stated maturity of one year or less
from the date of issue and rated A-1 or higher by Standard & Poor’s, a division of The McGraw Hill Companies, Inc., Ratings Group (or any successor) or P-1 or higher by Moody’s Investors Service, Inc. (or any successor) or, in
either case, such other comparable rating, if any, then used by such rating agency. 
 “Roll Day” means each of
the three Index business Days before the last Index Business Day in each of the months of February, May, August and November in any given year. 

“Successor Index” means any substitute index approved by the Calculation Agent as a Successor Index pursuant to
Section 3 hereof. 
 “Trading Day” means a trading day for the Securities on which (i) it is an Index
Business Day, (ii) trading is generally conducted on NYSE Arca and (iii) it is a Business Day in New York City, in each case as determined by the Calculation Agent in its sole discretion. 

“Valuation Date” means each Business Day from August 9, 2010 to August 10, 2020, inclusive (subject to the
occurrence of a Market Disruption Event), or if such date is not a Trading Day, the next succeeding Trading Day, not to exceed five Business Days. 
  

 
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 1.    Promise to Pay at Maturity or Upon Early Redemption

 Barclays Bank PLC, a public limited company duly organized and existing under the laws of England and Wales (herein called the
“Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay (or cause to be paid) to Cede & Co., as nominee for The Depository Trust Company,
or registered assigns, the amount as calculated and provided under (i) “Early Redemption” and elsewhere on the face this Security on the applicable Early Redemption Date, in the case of any Securities in respect of the which the
Holder exercises such Holder’s right to require the Company to redeem such Holder’s Securities prior to the Early Maturity Date, or in the case the Company exercises its right to redeem the Securities under “Issuer Redemption”,
or (ii) “Payment at Maturity” and elsewhere on the face of this Security on the Maturity Date, in the case of all other Securities. 

2.    Payment of Interest 

The principal of this Security shall not bear interest. 

3.    Discontinuance or Modification of the Index; Market Disruption Event 

If the Index Sponsor discontinues publication of the Index and it or any other person or entity publishes an index that the Calculation
Agent determines is comparable to the discontinued Index and approves as a Successor Index, then the Calculation Agent will determine the value of the Index on the applicable Valuation Date and the amount payable on the Maturity Date or any
Redemption Date by reference to such Successor Index. 
 If the Calculation Agent determines that the publication of the Index
is discontinued and that there is no Successor Index, or that the closing value of the Index is not available because of a Market Disruption Event or for any other reason, on any Valuation Date, or if for any other reason the Index is not available
to the Company or the Calculation Agent on any Valuation Date, the Calculation Agent will determine the amount payable by a computation methodology that the Calculation Agent determines will as closely as reasonably possible replicate the Index.

 If the Calculation Agent determines that the Index, the Index Components or the method of calculating the Index has been
changed at any time in any respect, including, without limitation, any addition, deletion or substitution and any reweighting or rebalancing of the Index Components, and whether the change is made by the Index Sponsor under its existing policies or
following a modification of those policies, is due to the publication of a Successor Index, is due to events affecting one or more of the Index Components, or is due to any other reason, then the Calculation Agent will be permitted (but shall not be
required) to make such adjustments to the Index or method of calculating the Index as it believes are appropriate to ensure that the value of the Index used to determine the amount payable on the Maturity Date or on an Early Redemption Date is
equitable. 
 The Calculation Agent shall have the right to postpone a Valuation Date, and thus the determination of the value
of the Index, if the Calculation Agent determines that, on such 
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 –7– 

 
Valuation Date, a Market Disruption Event occurs or is continuing in respect of any Index Component. If such a postponement occurs, the Index Components unaffected by the Market Disruption Event
shall be determined on the scheduled Valuation Date and the Calculation Agent shall determine the value of the affected Index Component by using the closing value of the Index Component on the first Trading Day after that day on which no Market
Disruption Event occurs or is continuing with respect to the Index Component. In no event, however, may the Calculation Agent postpone a Valuation Date by more than five Trading Days. 

In the event that a Valuation Date is postponed until the fifth Trading Day following the scheduled Valuation Date, but a Market
Disruption Event occurs and is continuing on such day, that day shall nevertheless be a Valuation Date, and the Calculation Agent shall determine the value of the Index on such day by a good faith estimate of the value of the Index that would have
prevailed in the absence of a Market Disruption Event. 
 The Calculation Agent shall have the right to make all determinations
and adjustments with respect to the Index in its sole discretion. 
 4.    Payment at Maturity or Upon
Early Redemption 
 The payment of this Security that becomes due and payable on the Maturity Date or on an Early Redemption
Date, as the case may be, shall be the cash amount that must be paid to redeem this Security as provided above under “Payment at Maturity” and “Early Redemption”, respectively. The payment of this Security that becomes due and
payable upon acceleration of the Maturity Date hereof after an Event of Default has occurred pursuant to the Indenture shall be the Default Amount. When the principal referred to in either of the two preceding sentences has been paid as provided
herein (or such payment has been made available), the principal of this Security shall be deemed to have been paid in full, whether or not this Security shall have been surrendered for payment or cancellation. References to the payment at maturity
or upon early redemption of this Security on any day shall be deemed to mean the payment of cash that is payable on such day as provided in this Security. Notwithstanding the foregoing, solely for the purpose of determining whether any consent,
waiver, notice or other action to be given or taken by Holders of Securities pursuant to the Indenture has been given or taken by Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security
will be deemed to equal the Face Amount. This Security shall cease to be Outstanding as provided in the definition of such term in the Indenture when the principal of this Security shall be deemed to have been paid in full as provided above.

 In the event that payment at maturity is deferred beyond August 13, 2020, penalty interest will not accrue or be payable
with respect to that deferred payment. 
 5.    Redemption Mechanics 

Subject to the minimum redemption amount provided under “Early Redemption”, the Holder may require the Company to redeem the
Holder’s Securities on any Early Redemption Date during the term of the Securities provided that such Holder (i) delivers a notice of holder redemption to the Company via electronic mail by no later than 4:00 p.m. New York

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 –8– 

 
time on the Business Day prior to the applicable Valuation Date; (ii) delivers a signed confirmation of holder redemption to the Company via facsimile by no later than 5:00 p.m. New York
time on the same day; (iii) instructs the Holder’s DTC custodian to book a delivery versus payment trade with respect to the Holder’s Securities on the applicable Valuation Date at a price per Security equal to the applicable Closing
Indicative Note Value, facing Barclays Capital DTC 5101; and (iv) causes the Holder’s DTC custodian to deliver the trade as booked for settlement via DTC at or prior to 10:00 a.m. New York time on the applicable Early Redemption Date,
which shall be the third Business Day following the applicable Valuation Date (other than the Final Valuation Date). The final Early Redemption Date shall be the third Business Day following the Valuation Date that is immediately prior to the Final
Valuation Date. 
 6.    Role of Calculation Agent 

The Calculation Agent will be solely responsible for all determinations and calculations regarding the value of the Securities, including
at maturity or upon early redemption; Market Disruption Events; Business Days; Trading Days; the Daily Index Performance Amount, the Investor Fee; the Default Amount; the Closing Indicative Note Value of the Securities on any Valuation Date, the
closing value of the Index on the Inception Date and on any Valuation Date; the Maturity Date; Early Redemption Dates; the amount payable on the Securities and all such other matters as may be specified elsewhere herein as matters to be determined
by the Calculation Agent. The Calculation Agent shall make all such determinations and calculations in its sole discretion, and absent manifest error, all determinations of the Calculation Agent shall be final and binding on the Company, the Holder
and all other Persons having an interest in this Security, without liability on the part of the Calculation Agent. 
 The
Company shall take such action as shall be necessary to ensure that there is, at all relevant times, a financial institution serving as the Calculation Agent hereunder. The Company may, in its sole discretion at any time and from time to time, upon
written notice to the Trustee, but without notice to the Holder of this Security, terminate the appointment of any Person serving as the Calculation Agent and appoint another Person (including any Affiliate of the Company) to serve as the
Calculation Agent. Insofar as this Security provides for the Calculation Agent to determine the value of the Index on any date or other information from any institution or other source, the Calculation Agent may do so from any source or sources of
the kind contemplated or otherwise permitted hereby notwithstanding that any one or more of such sources are the Calculation Agent, Affiliates of the Calculation Agent or Affiliates of the Company. 

7.    Payment 

Payment of any amount payable on this Security will be made in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. Payment will be made to an account designated by the Holder (in writing to the Company and the Trustee on or before the applicable Valuation Date) and acceptable to the Company or, if
no such account is designated and acceptable as aforesaid, at the office or agency of the Company maintained for that purpose in The City of New York, provided, however, that payment on the Maturity Date or any Early Redemption
Date shall be made only upon surrender of this Security at such office or agency (unless the Company waives 
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surrender). Notwithstanding the foregoing, if this Security is a Global Security, any payment may be made pursuant to the Applicable Procedures of the Depositary as permitted in said Indenture.

 8.    Reverse of this Security 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place. 
 9.    Certificate of
Authentication 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse
hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

10.    Prospectus 

Reference is made to (i) the Prospectus related to the Securities, dated February 10, 2009, (ii) the Prospectus Supplement,
dated March 1, 2010 and (iii) the Pricing Supplement, dated [                    ], 2010, (together, the
“Prospectus”). The terms and conditions of this Security as fully set forth in the Prospectus are hereby incorporated by reference in their entirety into this Security and binding upon the parties hereto. In the event of a conflict
between the terms of the Prospectus and the terms of this Security, the Prospectus will control and if the Prospectus provides for a specific United States tax characterization, by purchasing a Security, you agree (in the absence of a change in law,
an administrative determination or a judicial ruling to the contrary) to be bound for United States federal income tax purposes to such tax characterization. Copies of the Prospectus are available from the Company or any underwriter or any dealer
participating in the offering by calling toll free, 1-888-227-2275 (extension 2-3430). 
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page) 
  

 –10– 

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

 

			
	BARCLAYS BANK PLC
		
	By:	 	
		 	Name:
		 	Title:
		
	By:	 	
		 	Name:
		 	Title:

 This is one of the Securities
of the series designated herein and referred to in the Indenture. 
 Dated: 

 

			
	THE BANK OF NEW YORK MELLON
		
	By:	 	
		 	Name:
		 	Title:

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 –11– 

 (Reverse of Security) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”) issued and to be issued in
one or more series under an Indenture, dated as of September 16, 2004 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon, as
Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee, the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. Insofar as the provisions of the Indenture may conflict with the provisions
set forth on the face of this Security, the latter shall control for purposes of this Security. 
 This Security is one of the series designated
on the face hereof, initially limited to an aggregate initial offering price not to exceed $10,000,000,000 (or the equivalent thereof in any other currency or currencies or currency units), which amount was increased to $21,000,000,000 on
September 4, 2007 and may be further increased at the option of the Company if in the future it determines that it may wish to sell additional Securities of this series. References herein to “this series” mean the series
designated on the face hereof. 
 Payments under the Securities will be made without deduction or withholding for, or on account of, any and all
present or future income, stamp and other taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Taxes”) now or hereafter imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or
any political subdivision or authority thereof or therein having the power to tax (each a “Taxing Jurisdiction”), unless such deduction or withholding is required by law. If any such Taxes are at any time required by a Taxing
Jurisdiction to be deducted or withheld, the Company will, subject to the exceptions and limitations set forth in Section 10.04 of the Indenture, pay such additional amounts of the principal of such Security and any other amounts payable on
such Security (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holder of any Security, after such deduction or withholding, shall equal the amounts of the principal of such Security and any other
amounts payable on such Security which would have been payable in respect of such Security had no such deduction or withholding been required. 

If at any time the Company determines that as a result of a change in or amendment to the laws or regulations of a Taxing Jurisdiction (including any
treaty to which such Taxing Jurisdiction is a party), or a change in an official application or interpretation of such laws or regulations (including a decision of any court or tribunal), either generally or in relation to any particular Securities,
which change, amendment, application or interpretation becomes effective on or after the Original Issue Date in making any payment of, or in respect of, the principal amount of the Securities, the Company would 

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 –12– 

 
be required to pay any Additional Amounts with respect thereto, then the Securities will be redeemable upon not less than 35 nor more than 60 days’ notice by mail, at any time thereafter, in
whole but not in part, at the election of the Company as provided in the Indenture at a redemption price equal to the principal amount thereof. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of all series to be affected (considered together as one class for this purpose). The Indenture also contains provisions (i) permitting the Holders of a majority in aggregate principal amount of the Securities at the time
Outstanding of all series to be affected under the Indenture (considered together as one class for this purpose), on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture
and (ii) permitting the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of any series to be affected under the Indenture (with each such series considered separately for this purpose), on behalf of
the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

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

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 –13– 

 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to pay the principal of this Security as herein provided. 
 As
provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Senior Debt Security Register, upon surrender of this Security for registration of transfer at the office or agency
of the Company in any place where the principal of this Security is payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Senior Debt Security Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing. Thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or
transferees. 
 This Security, and any other Securities of this series and of like tenor, are issuable only in registered form without coupons
in denominations of any multiple of $50. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like
tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

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

This Security and the Indenture shall be governed by and construed in accordance with the laws of the State of New York. 

 

 –14–

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