Document:

FORM OF GLOBAL NOTE

 Exhibit 4(b) 
  
 Form of Global Note 
  
 This Note is a global security and is registered in the name of Chase Nominees Limited, as nominee of the common depositary, JPMorgan Chase Bank, London
Branch (the “Common Depositary”), for Clearstream Banking, Societé Anonyme (“Clearstream”) and Euroclear Bank S.A./N.V. (“Euroclear”). Unless and until this Note is exchanged for Notes in definitive form, this
Note may not be transferred except as a whole by the Common Depositary or a nominee of the Common Depositary to the Common Depositary or another depositary or by the Common Depositary or any such nominee to a successor depositary or a nominee of
such successor depositary. 
  
 WAL-MART STORES, INC. 
  
 5.25% NOTES DUE 2035 
  

			
	Number A-1	 	ISIN No.: XS0202077953   
	£1,000,000,000	 	Common Code: 020207795

  
 WAL-MART STORES, INC.,
a corporation duly organized and existing under the laws of the State of Delaware, and any successor corporation pursuant to the Indenture (herein referred to as the “Company”), for value received, hereby promises to pay to CHASE NOMINEES
LIMITED or registered assigns, the principal sum of ONE BILLION POUNDS STERLING on September 28, 2035 in such coin or currency of the United Kingdom as at the time of payment shall be legal tender for the payment of public and private debts, and to
pay interest, computed on the basis of a 360-day year of twelve 30-day months, semi-annually in arrears on March 28 and September 28 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest
Payment Date”), commencing on March 28, 2005, on said principal sum in like coin or currency, at the rate per annum specified in the title of this Note from September 29, 2004 or from the most recent March 28 or September 28 to which interest
has been paid or duly provided for. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will be paid to the person in whose name this Note is registered (the “holder”) at the close of business on
the preceding March 15, in the case of an Interest Payment Date of March 28, and on the preceding September 15, in the case of an Interest Payment Date of September 28 (each, a “Record Date”). The term “Business Day” shall mean
any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are generally authorized or required by law or regulation to close in The City of New York or London. 
  
 Reference is made to the further provisions of this Note set forth on the
succeeding sections hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
  

 This Note shall not be valid or become obligatory for any purpose until the certificate of authentication
hereon shall have been signed by the Trustee under the Indenture referred to in Section 1 hereof. 
  
 IN WITNESS WHEREOF, the Company has caused this instrument to be signed by its Chairman of the Board, its Vice Chairman, its President or one of its Vice
Presidents by manual or facsimile signature under its corporate seal, attested by its Secretary, one of its Assistant Secretaries, its Treasurer or one of its Assistant Treasurers by manual or facsimile signature. 
  

											
	 	 	 	 	 	 	 Wal-Mart Stores, Inc.

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
				
	[SEAL]	 	 	 	Attest:	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  
 Dated: September 29, 2004 

 
 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Securities of the series designated herein referred to in
the within-mentioned Indenture. 
  

											
	 	 	 	 	 	 	 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as successor-in-interest to
Bank One Trust Company, NA, as Trustee

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Authorized Signatory

  

 WAL-MART STORES, INC. 
  
 5.25% NOTES DUE 2035 
  
 1. Indenture; Notes. This Note is one of a duly authorized series of Securities of the Company designated as the “5.25% Notes Due 2035”
(the “Notes”), initially issued in an aggregate principal amount of £1,000,000,000 on September 29, 2004. Such series of Securities has been established pursuant to, and is one of an indefinite number of series of debt securities of
the Company, issued or issuable under and pursuant to, the Indenture, dated as of December 11, 2002 (the “Indenture”), duly executed and delivered by the Company, as Issuer and J.P. Morgan Trust Company, National Association, as successor
in interest to Bank One Trust Company, NA, as Trustee (the “Trustee”), to which the Indenture and all indentures supplemental thereto reference is hereby made for a statement of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the holders of the Notes and of the terms upon which this Note is, and is to be, authenticated and delivered. The terms, conditions and provisions of the Notes are those stated in the Indenture,
those made part of the Indenture by reference to the U.S. Trust Indenture Act of 1939, as amended, and those set forth in this Note. To the extent that the terms, conditions and other provisions of this Note modify, supplement or are inconsistent
with those of the Indenture, then the terms, conditions and other provisions of this Note shall govern. 
  
 All capitalized terms which are used but not defined in this Note shall have the meanings assigned to them in the Indenture. 
  
 The Company may, without the consent of the holders, issue and sell
additional Securities ranking equally with the Notes and otherwise identical in all respects (except for their date of issue, issue price and the date from which interest payments thereon shall accrue) so that such additional Securities shall be
consolidated and form a single series with the Notes; provided, however, that no additional Securities of any existing or new series may be issued under the Indenture if an Event of Default has occurred and remains uncured thereunder.

  
 2. Ranking. The Notes shall constitute the senior,
unsecured and unsubordinated debt obligations of the Company and shall rank equally in right of payment among themselves and with all other existing and future senior, unsecured and unsubordinated debt obligations of the Company. 
  
 3. Payment of Overdue Amounts. The Company shall pay interest,
calculated on the basis of a 360-day year of twelve 30-day months, on overdue principal and overdue installments of interest, if any, from time to time on demand at the interest rate borne by the Notes to the extent lawful. 
  
 4. Optional Redemption. (a) The Notes may be redeemed by the Company
in whole or in part on any date (such date, the “Redemption Date”) to be fixed by the Company, at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) as determined by the
Calculation Agent, the price at which the yield on the outstanding principal amount of the Notes on the Reference Date is equal to the yield on the Benchmark Gilt as of that date as determined by reference to the middle-market price on the 

  

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Benchmark Gilt at 3:00 p.m., London time, on that date (such greater price, the “Redemption Price”), in either case, plus accrued and unpaid
interest on the Notes to be redeemed up to, but excluding the Redemption Date. 
  
 “Benchmark Gilt” means the 4.25% Treasury Stock due March 7, 2036 or such other U.K. government stock as the Calculation Agent, with the advice of three brokers and/or gilt-edged market makers or three other
persons operating in the U.K. gilt-edged market that may be chosen by the Calculation Agent, may determine from time to time to be the most appropriate benchmark U.K. government stock for the Notes. 
  
 “Calculation Agent” means J.P. Morgan Trust Company, National
Association, or any successor entity. 
  
 “Reference
Date” means the date that is the first dealing day in London prior to the publication of the notice of redemption referred to in Section 4(b) below. 
  
 (b) The Company shall give notice of any redemption between 30 and 60 days preceding the Redemption Date to each holder of the Notes to be redeemed,
pursuant to Section 17 hereof. 
  
 (c) In the event the Company
redeems any amount of the Notes that is less than the total principal amount then outstanding, selection of the Notes for redemption shall be made by the Trustee on a pro rata basis, by lot or by any other method as the Trustee in its sole
discretion deems to be fair and appropriate, provided, however, that no Note of £1,000 in original principal amount or less shall be redeemed in part. If this Note is to be redeemed in part only, the notice of redemption relating to
this Note will state the portion of the principal amount hereof to be redeemed. A new Note in principal amount equal to the unredeemed portion hereof shall be issued and delivered to the Trustee, or its nominee, upon cancellation of this Note.

  
 (d) Unless the Company defaults in payment of the Redemption
Price of the Notes, on and after the Redemption Date interest shall cease to accrue on this Note or the portion hereof called for redemption. 
  
 (e) If the Company elects to redeem the Notes, in whole or in part, pursuant to this Section 4, then it shall give notice to the holders pursuant to
Section 17 hereof. 
  
 The notice of redemption shall specify the
following: 
  
 (i) the Redemption Date;

  
 (ii) a brief statement to the effect that the
Notes are being redeemed at the option of the Company pursuant to this Section 4; 
  
 (iii) the aggregate principal amount of the Notes to be redeemed, and if such amount is less than the aggregate principal amount of the
Notes then outstanding, the manner of selection of the Notes to be redeemed; 
  

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 (iv) that on the Redemption Date, the Redemption Price, plus accrued but unpaid interest
on the Notes to be redeemed, if any, will become due and payable; 
  
 (v) the amount of the Redemption Price and accrued but unpaid interest, if any, that will be due and payable on the Notes to be redeemed on the Redemption Date; 
  
 (vi) the place or places of payment of the amounts due under
clause (v) above; 
  
 (vii) that payment of the
amounts due under clause (v) above will be made upon presentation and surrender of the Notes to be redeemed; and 
  
 (viii) that, following the redemption of any or all of the Notes pursuant to this Section 4, interest shall cease to accrue on such
redeemed Notes. 
  
 The notice of redemption regarding the Notes
shall be, at the election of the Company, given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company. 
  

On or before the opening of business on any Redemption Date, the Company shall deposit with the Trustee or with the U.S. Paying Agent (as defined
herein), London Paying Agent (as defined herein) or the Irish Paying Agent (as defined herein) or, if the Company is acting as its own paying agent, segregate and hold in trust as provided in Section 5.03 of the Indenture, an amount of money
sufficient to pay the Redemption Price of, and except if the Redemption Date shall be an Interest Payment Date, accrued but unpaid interest on, the Notes to be redeemed on the Redemption Date. 
  
 The notice of redemption having been given as specified above, the Notes to
be so redeemed shall, on the Redemption Date, become due and payable at the Redemption Price, and from and after such date, unless the Company shall default in the payment of the Redemption Price and accrued but unpaid interest, if any, such Notes
shall cease to bear interest. Upon surrender of the Notes for redemption in accordance with such notice, such Notes shall be paid by the Company at the Redemption Price, together with accrued but unpaid interest, if any, to the Redemption Date.

  
 If any of the Notes, having been called for redemption, shall
not be so paid upon surrender thereof for redemption, the Redemption Price for the Notes to be redeemed shall, until paid, bear interest from the Redemption Date at the interest rate borne by this Note. 
  
 In the event of the redemption of the Notes in part only, this Note shall be
cancelled and the Company shall issue a Global Note to represent the Notes outstanding following the Redemption Date. 
  
 5. Payment of Additional Amounts; Redemption Upon a Tax Event. 
  
 (a) Payment of Additional Amounts. The Company shall pay to the holder of this Note who is a United States Alien (as defined below)
such additional amounts as may be necessary so that every net payment of principal of and interest on this Note to such holder, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge
imposed upon such holder by the United States of America or any taxing authority 

  

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thereof or therein, will not be less than the amount provided in the Notes to be then due and payable (such amounts, the “Additional Amounts”);
provided, however, that the Company shall not be required to make any payment of Additional Amounts for or on account of: 
  
 (i) any tax, assessment or other governmental charge that would not have been imposed but for (A) the existence of any present or former
connection between such holder, or between a fiduciary, settlor, beneficiary of, member or shareholder of, or possessor of a power over, such holder, if such holder is an estate, trust, partnership or corporation, and the United States including,
without limitation, such holder, or such fiduciary, settlor, beneficiary, member, shareholder or possessor, being or having been a citizen or resident of the United States of America or treated as a resident thereof or being or having been engaged
in trade or business or present in the United States of America, or (B) the presentation of this Note for payment on a date more than 30 days after the later of (x) the date on which such payment becomes due and payable and (y) the date on which
payment thereof is duly provided for; 
  
 (ii)
any estate, inheritance, gift, sales, transfer, excise, personal property or similar tax, assessment or other governmental charge; 
  
 (iii) any tax, assessment or other governmental charge imposed by reason of such holder’s past or present status as a passive foreign
investment company, a controlled foreign corporation, a personal holding company or foreign personal holding company with respect to the United States of America, or as a corporation which accumulates earnings to avoid United States federal income
tax; 
  
 (iii) any tax, assessment or other
governmental charge which is payable otherwise than by withholding from payment of principal of or interest on this Note; 
  
 (iv) 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 such payment can be made without withholding by any other paying agent; 
  
 (v) any tax, assessment or other governmental charge which would not have been imposed but for the failure to comply with certification,
information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of America of the holder or beneficial owner of this Note, if such compliance is required by statute or
by regulation of the United States Treasury Department as a precondition to relief or exemption from such tax, assessment or other governmental charge; 
  
 (vi) any tax, assessment or other governmental charge imposed on interest received by (A) a 10% shareholder (as defined in Section
871(h)(3)(B) of the United States Internal Revenue Code of 1986, as amended (the “Code”), and the regulations that may be promulgated thereunder) of the Company or (B) a controlled foreign corporation with respect to the Company within the
meaning of the Code; 
  

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 (vii) any withholding or deduction that is imposed on a payment to an individual and is
required to be made pursuant to that European Union Directive relating to the taxation of savings adopted on June 3, 2003 by the European Union’s Economic and Financial Affairs Council, or any law implementing or complying with, or introduced
in order to conform to, such Directive; or 
  
 (viii) any combination of items (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) in this Section 5(a); 
  
 nor shall any Additional Amounts be paid to any holder who is a fiduciary, partnership or other than the sole beneficial owner of this Note to the extent that a
beneficiary or settlor with respect to such fiduciary, or a member of such partnership or a beneficial owner thereof would not have been entitled to the payment of such Additional Amounts had such beneficiary, settlor, member or beneficial owner
been the holder. 
  
 “United States Alien” means any
corporation, partnership, individual or fiduciary that is, as to the United States of America, a foreign corporation, a non-resident alien individual who has not made a valid election to be treated as a United States resident, a non-resident
fiduciary of a foreign estate or trust, or a foreign partnership one or more of the members of which is, as to the United States of America, a foreign corporation, a non-resident alien individual or a non-resident fiduciary of a foreign estate or
trust. 
  
 (b) Redemption Upon a Tax Event. The Notes may
be redeemed at the option of the Company in whole, but not in part, on a date (such date, the “Tax Redemption Date”) to be fixed by the Company on not more than 60 days’ and not less than 30 days’ notice, at a redemption price
equal to 100% of the principal amount of the Notes (the “Tax Redemption Price”) plus accrued but unpaid interest, if any, thereon, if the Company determines that as a result of any change in or amendment to the laws, treaties, regulations
or rulings of the United States of America or any political subdivision or taxing authority thereof, or any proposed change in such laws, treaties, regulations or rulings, or any change in the official application, enforcement or interpretation of
such laws, treaties, regulations or rulings, including a holding by a court of competent jurisdiction in the United States of America, or any other action, other than an action predicated on laws generally known on or before September 22, 2004
except for proposals before the U.S. Congress before such date, taken by any taxing authority or a court of competent jurisdiction in the United States of America, or the official proposal of any such action, whether or not such action or proposal
was taken or made with respect to the Company, (A) the Company has or will become obligated to pay Additional Amounts or (B) there is a substantial possibility that the Company will be required to pay such Additional Amounts. 
  
 Prior to the publication of any notice of redemption pursuant to Section 17
hereof, the Company shall deliver to the Trustee (1) an Officers’ Certificate stating that the Company is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the rights of the
Company to so redeem have occurred and (2) an Opinion of Counsel to such effect based on such statement of facts. 
  
 If the Company elects to redeem the Notes pursuant to this Section 5(b), then it shall give notice to the holders pursuant to Section 17 hereof.

  

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 The notice of redemption, shall specify the following: 
  
 (ii) the Tax Redemption Date; 
  
 (ii) a brief statement to the effect that the Notes are
being redeemed at the option of the Company pursuant to this Section 5(b) and a brief statement of the facts permitting such redemption; 
  
 (iii) that on the Tax Redemption Date, the Tax Redemption Price, plus accrued but unpaid interest on the Notes, if any, will become due
and payable; 
  
 (iv) the amount of the Tax
Redemption Price and accrued but unpaid interest, if any, that will be due and payable on the Notes on the Tax Redemption Date; 
  
 (v) the place or places of payment of the amounts due under clause (iv) above; 
  
 (vi) that payment of the amounts due under clause (iv) above
will be made upon presentation and surrender of the Notes; and 
  
 (vii) that, following the redemption of the Notes pursuant to this Section 5(b), interest shall cease to accrue thereon. 
  
 The notice of redemption regarding the Notes shall be, at the election of the Company, given by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company. 
  
 On or
before the opening of business on any Tax Redemption Date, the Company shall deposit with the Trustee or with the U.S. Paying Agent, London Paying Agent or the Irish Paying Agent or, if the Company is acting as its own paying agent, segregate and
hold in trust as provided in Section 5.03 of the Indenture, an amount of money sufficient to pay the Tax Redemption Price of, and except if the Tax Redemption Date shall be an Interest Payment Date, accrued but unpaid interest on, the Notes to be
redeemed on the Tax Redemption Date. 
  
 The notice of redemption
having been given as specified above, the Notes shall, on the Tax Redemption Date, become due and payable at the Tax Redemption Price, and from and after such date, unless the Company shall default in the payment of the Tax Redemption Price and
accrued but unpaid interest, if any, the Notes shall cease to bear interest. Upon surrender of the Notes for redemption in accordance with such notice, the Notes shall be paid by the Company at the Tax Redemption Price, together with accrued but
unpaid interest, if any, to the Tax Redemption Date. 
  
 If the
Notes, having been called for redemption, shall not be so paid upon surrender thereof for redemption, the Tax Redemption Price shall, until paid, bear interest from the Tax Redemption Date at the interest rate borne by this Note. 
  
 6. Re-Denomination in Euro. If, prior to the maturity of the Notes,
the United Kingdom adopts the euro as its lawful currency in accordance with the Treaty establishing European Communities, as amended from time to time, the Notes will be re- 

  

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denominated into euro, and the regulations of the European Commission relating to the euro shall apply to the Notes. The circumstances and consequences
described in this Section 6 will not entitle the Company, the Trustee or any holder of the Notes to redeem early, rescind, or receive notice relating to the Notes, repudiate the terms of the Notes or the Indenture, raise any defense, request any
compensation or make any claim, nor will these circumstances and consequences affect any of the Company’s other obligations under the Notes or the Indenture. 
  
 7. Place and Method of Payment. Subject to the last paragraph of Section 13 hereof, the Company shall pay principal
(and Redemption Price or Tax Redemption Price, if any) of and interest on the Notes at the office or agency of the U.S. Paying Agent in the Borough of Manhattan, The City of New York and of the London Paying Agent in London and, for so long as the
Notes are listed on the Irish Stock Exchange, of the Irish Paying Agent in Dublin, Ireland; provided, however, that at the option of the Company, the Company may pay interest by check mailed to the person entitled thereto at such
person’s address as it appears on the Registry for the Notes. 
  
 8. Defeasance of the Notes. Sections 11.02, 11.03 and 11.04 of the Indenture shall apply to the Notes. 
  
 9. No Redemption; Sinking Fund. The Notes are not redeemable prior to maturity, other than as set forth in Section 4 and Section 5(b) hereof, and
are not subject to a sinking fund. 
  
 10. Amendment and
Modification. Article Nine of the Indenture contains provisions for the amendment or modification of the Indenture and the Notes without the consent of the holders in certain circumstances and requiring the consent of holders of not less than a
majority in aggregate principal amount of the Notes and Securities of other series that would be affected in certain other circumstances. However, the Indenture requires the consent of each holder of the Notes and Securities of other series that
would be affected for certain specified amendments or modifications of the Indenture and the Notes. These provisions of the Indenture, which provide for, among other things, the execution of supplemental indentures, are applicable to the Notes.

  
 11. Default; Waiver. If an Event of Default with
respect to the Notes shall occur and be continuing, then either the Trustee or the Holders of not less than 25% in aggregate principal amount of the Notes of this series then Outstanding may declare the aggregate principal amount of the Notes of
this series to be immediately due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. The Indenture provides that in the event of such a declaration, the holders of a majority in aggregate principal
amount of all of the Notes of this series then outstanding, voting as a separate class, in accordance with the provisions of, and in the circumstances provided by, the Indenture, may rescind and annul the declaration and its consequences and the
related default and its consequences may be waived with respect to all of the Notes. 
  
 12. Absolute Obligation. No reference herein to the Indenture and no provisions of the Notes or of the Indenture shall alter or impair the obligation of the Company, 

  

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which is absolute and unconditional, to pay the principal of and interest on this Note at the place, at the time and in the coin or currency herein
prescribed. 
  
 13. Form and Denominations; Global Notes;
Definitive Notes. The Notes are being issued in registered form without coupons in denominations of £1,000 and multiples of £1,000 in excess thereof. The Notes are being issued in the form of a global note (the “Global
Note”), evidencing all or any portion of the Notes and registered in the name of the Common Depositary or its nominee (including their respective successors) as common depositary for Clearstream and Euroclear under the Indenture. The Notes
shall be issued in certificated form (each, a “Definitive Note”) only in the following limited circumstances: (1) the Common Depositary is no longer willing or able to discharge its responsibilities properly, and neither the trustee nor
the Company have appointed a qualified successor within 90 days after the Company receives such notice or becomes aware of such ineligibility or (2) the Company delivers to the Trustee a Company Order to the effect that this Note shall be
exchangeable for Definitive Notes, in each such case this Note shall be exchangeable for Definitive Notes in an equal aggregate principal amount. Such Definitive Notes shall be registered in such name or names as the Depositary shall instruct the
Trustee. 
  
 14. Registration, Transfer and Exchange. As
provided in the Indenture and subject to certain limitations therein set forth, the Company shall provide for the registration of the Notes and the transfer and exchange of the Notes, whether in global or certificated form. At the option of the
holders, either at the office or agency to be designated and maintained by the Company for such purpose in the Borough of Manhattan, The City of New York or in London or, so long as the Notes are listed on the Irish Stock Exchange, in Dublin,
Ireland, or at any of such other offices or agencies as may be designated and maintained by the Company for such purpose pursuant to the provisions of the Indenture, and in the manner and subject to the limitations provided in the Indenture, but
without the payment of any service charge, except for any tax or other governmental charges imposed in connection therewith subject to Section 5 hereof, the Notes may be transferred or exchanged for an equal aggregate principal amount of the Notes
of like tenor and of other authorized denominations upon surrender and cancellation of the Notes upon any such transfer. 
  
 The Company, the Trustee, and any agent of the Company or of the Trustee may deem and treat the holder as the absolute owner of this Note (whether or not
the Notes shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payments hereon, or on account hereof, and for all other purposes, and neither the Company nor the Trustee nor any agent
of the Company or of the Trustee shall be affected by any notice to the contrary. All such payments made to or upon the order of such holder shall, to the extent of the amount or amounts paid, effectually satisfy and discharge liability for moneys
payable on this Note. 
  
 Notwithstanding the preceding paragraphs
of this Section 14, any registration of transfer or exchange of a Global Note shall be subject to the terms of the legend appearing on the initial page thereof. 
  

15. No Recourse Against Others. No recourse under or upon any obligation, covenant or agreement of the Company arising under or set forth in the
Notes or under the 

  

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Indenture, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation, either directly or through the Company 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, any and all such personal liability, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director, as such,
being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 
  
 16. Appointment of Agents. J.P. Morgan Trust Company, National Association is hereby appointed the registrar for the purpose of registering the
Notes and transfers and exchanges of the Notes pursuant to the Indenture and this Note (the “Registrar”), paying agent pursuant to Section 3.04 of the Indenture (the “U.S. Paying Agent”) and transfer agent (the “U.S.
Transfer Agent”) with respect to the Notes in the United States at its offices in the Borough of Manhattan, The City of New York. 
  
 JPMorgan Chase Bank, London Branch is hereby appointed paying agent pursuant to Section 3.04 of the Indenture (the “London Paying Agent”) and
transfer agent (the “London Transfer Agent”) with respect to the Notes in the United Kingdom at its offices in London. 
  
 JPMorgan Bank (Ireland) PLC has been appointed, in connection with the listing of the Notes on the Irish Stock Exchange, the paying agent pursuant to
Section 3.04 of the Indenture (the “Irish Paying Agent”), and the transfer agent (the “Irish Transfer Agent”) with respect to the Notes in Ireland, and has its main office at JPMorgan House, International Financial Service
Centre, Dublin 1, Ireland. 
  
 If for any reason JPMorgan Bank
(Ireland) PLC shall not continue as Irish Paying Agent or Irish Transfer Agent and the Notes remain listed on the Irish Stock Exchange, the Company shall appoint a substitute Irish Paying Agent or Irish Transfer Agent, as the case may be, with an
office in Ireland, in accordance with the rules then in effect of the Irish Stock Exchange and the provisions of the Indenture, including Section 3.04 thereof, and the Notes. Following the appointment of the substitute Irish Paying Agent or Irish
Transfer Agent, as the case may be, the Company shall give the holders of the Notes notice of such appointment pursuant to Section 17 hereof. 
  
 17. Notices. If the Company is required to give notice to the holders of the Notes pursuant to the terms of the Indenture, then it shall do so by
the means and in the manner set forth in Section 1.06 of the Indenture. 
  
 In addition, the Company shall give notices to the holders of the Notes by publication in a leading daily newspaper in The City of New York and in London and, so long as the Notes are listed on the Irish Stock Exchange, in Ireland.
Initially, such publication shall be made in The City of New York in The Wall Street Journal, in London in the Financial Times and in Ireland in the Irish Times. Any such notice shall be deemed to have been given on the date of
publication or, if published more than once, on the date of the first publication. 
  

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 18. Separability. In case any provision of the Indenture or the Notes shall, for any reason, be
held to be invalid, illegal or unenforceable, then the validity, legality and enforceability of the remaining provisions thereof and hereof shall not in any way be affected or impaired thereby. 
  
 19. GOVERNING LAW. THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  

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 ASSIGNMENT FORM 
  

To assign this Note, fill in the form below: 
  
 For the value received, the undersigned hereby assigns and transfers the within Note, and all rights thereunder, to: 
  

 (Insert assignee’s
legal name) 
  

 (Insert assignee’s social security or tax identification number) 
  

 (Print or type assignee’s name, address and zip code) 
  

  

  
 and irrevocably appoints 
  

  
 to transfer
this Note on the books of Wal-Mart Stores, Inc. The agent may substitute another to act for it. 
  

			
		
	Your Signature:	 	 
	 	 	(Sign exactly as your name appears on the face of this Note)

  
 Date:
                     
  
 Signature Guarantee 
  
 The signature(s) should be Guaranteed by an Eligible Guarantor Institution pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. 

 
 * * * * * 
  
 The following abbreviations, when used in the inscription on the face of the within Note, 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 ENT -
	  	 as joint tenants with right of
 survivorship and not as
 tenants in common

  

																	
	 	 	 UNIF GIFT MIN ACT -
	 	 	 	Custodian	 	 	 	under the Uniform Gifts to Minors Act	 	 	  	 	  	 
	 	 	 	 	(Cust)	 	 	 	(Minor)	 	 	 	 (State)
	  	 	  	 

  
 Additional abbreviations may also be
used although not in the above list.Employment Agreement

 Exhibit 10.16(q) 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is made and entered into by and between MICHAEL S. ZARRIELLO (“Executive”) and
RURAL/METRO CORPORATION, its subsidiaries, affiliates, joint ventures and partnerships (“Rural/Metro”). The Effective Date of this Agreement is June 2, 2004. 
  
 R E C I T A L S 
  
 A. The Board of Directors of Rural/Metro believes it is in the best interests of Rural/Metro to employ Executive as the Senior Vice
President and Chief Financial Officer of Rural/Metro. The Board of Directors believes that Executive is, and is expected to continue to be, a key contributor to the success of Rural/Metro. Due to Executive’s experience, Executive has particular
skills and knowledge that the Board of Directors believes is imperative to retain for the benefit of Rural/Metro, its customers and all of its financial stakeholders. 
  
 B. Rural/Metro has decided to offer Executive an employment agreement, the terms and provisions of which are
set forth below. Rural/Metro and Executive each desire to enter into this Agreement and, by doing so, mutually establish and maintain a meaningful long-term commitment to each other based upon the terms and provisions herein. 
  
 NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

  
 1. POSITION AND DUTIES.

  
 Executive will be employed as the Senior
Vice President and Chief Financial Officer of Rural/Metro and shall have a primary reporting relationship to the Chief Executive Officer (“CEO”), with accountability to the Board of Directors of Rural/Metro (the “Board”)
generally acting through its Audit Committee (the “Audit Committee”). Executive shall perform the duties of his position, as determined by the CEO and the Board, in accordance with the policies, practices and bylaws of Rural/Metro. For the
duration of his employment, Executive shall attend all meetings of the Board of Directors and Audit Committee as and when requested by the Board of Directors or the Audit Committee. Executive shall serve Rural/Metro faithfully, loyally, honestly and
to the best of his ability. Executive will devote his best efforts to the performance of his duties for, and in the business and affairs of, Rural/Metro. Rural/Metro reserves the right, in its sole discretion, to change or modify Executive’s
position, title and duties during the term of this Agreement, subject to Executive’s rights under Section 6. 

 2. COMPENSATION. 
  
 A. Base Salary. 
  
 As of the Effective Date, Executive’s annual
compensation will be Three Hundred Four Thousand Five Hundred Dollars ($304,500) (“Base Salary”). Executive’s Base Salary will be paid in substantially equal periodic installments in accordance with Rural/Metro’s
generally-applicable payroll practices. Executive’s Base Salary will be reviewed at least annually in accordance with Rural/Metro’s executive compensation review policies and practices. 
  
 3. MANAGEMENT INCENTIVE PROGRAM. 
  
 Executive shall be eligible to participate in the
Rural/Metro Management Incentive Program or any other incentive compensation program maintained by Rural/Metro from time to time (“MIP”) and to receive such additional compensation as may be provided by the MIP. As of the date of this
Agreement, the maximum potential incentive compensation (or bonus) to which Executive may become entitled under the current Management Incentive Program is forty-five percent of Executive’s Base Salary, which percentage may be adjusted at any
time by Rural/Metro subject to the limitations set forth in Section 6(A). Notwithstanding anything to the contrary in the MIP regarding eligibility in the event of termination of employment: (i) in the event Executive’s employment is terminated
without Cause as set forth in Section 5(B) of this Agreement, is terminated for Good Reason as set forth in Section 6(A) of this Agreement, or is terminated by reason of death or Disability as set forth in Section 7 of this Agreement, then Executive
shall be paid a pro-rata portion of the compensation awarded (or to be awarded, as the case may be) pursuant to the MIP for the MIP plan year in which such termination occurs, which pro-rata portion (a) shall be calculated by dividing the annual MIP
award amount (as determined pursuant to the last sentence of this Section 3), if any, by 365 days and multiplying that quotient by the number of days during the MIP plan year that Executive was employed through the date of termination, and (b) shall
be paid at such time as is determined pursuant to the MIP; and (ii) in the event Executive’s employment is terminated for Cause as set forth in Section 5(A) of this Agreement or is terminated without Good Reason as set forth in Section 6(B) of
this Agreement, then Executive shall not be eligible to receive compensation awarded pursuant to the MIP. In determining the partial-year MIP award (if any), it is intended that (i) accomplishment of quantitative goals shall be evaluated based on
full-year financial performance; and (ii) accomplishment of so-called “soft” goals shall be evaluated in good faith in a manner consistent with similar evaluations in prior years based on Executive’s performance through the date of
termination of active employment. Notwithstanding the foregoing, Executive acknowledges the discretionary nature of the MIP. 
  

 Page 2 of 16 

 4. TERM AND TERMINATION. 
  
 This Agreement will continue in full force and effect until
it is terminated by the parties. This Agreement may be terminated in any of the following ways: (a) it may be renegotiated and replaced by a written agreement signed by both parties; (b) Rural/Metro may elect to terminate this Agreement with or
without “Cause”, as defined below; (c) Executive may elect to terminate this Agreement with or without “Good Reason”, as defined below; (d) either party may serve notice on the other of its desire to terminate this Agreement at
the end of the “Initial Term” or any “Renewal Term”, or (e) this Agreement may terminate automatically upon Executive’s death or Disability pursuant to Section 7. 
  
 The “Initial Term” of this Agreement shall expire by its terms three (3) years from the Effective
Date, unless sooner terminated in accordance with the provisions of this Agreement. This Agreement will be renewed at the end of the Initial Term for additional one-year periods (a “Renewal Term”), unless either party serves notice of its
desire not to renew this Agreement on the other. Such notice must be given at least sixty (60) days before the end of the Initial Term or the applicable Renewal Term. 
  
 If Rural/Metro notifies Executive of its desire not to renew this Agreement pursuant to this Section 4 and
at the time of such notification Rural/Metro does not have “Cause” to terminate this Agreement pursuant to Section 5A, Executive shall receive Severance Benefits pursuant to Section 8. 
  
 5. TERMINATION BY RURAL/METRO 
  
 A. Termination For Cause. 
  
 Rural/Metro may terminate this Agreement and
Executive’s employment for Cause at any time upon written notice. This means that Rural/Metro has the right to terminate the employment relationship for Cause at any time should there be Cause to do so. 
  
 For purposes of this Agreement, “Cause” shall be
limited to discharge resulting from a determination by an affirmative vote of 75% of the Board of Directors then in office that Executive: (a) has been convicted of (or has pleaded guilty or no contest to) a felony involving dishonesty, fraud, theft
or embezzlement; (b) has repeatedly failed or refused, in a material respect to follow reasonable policies or directives established by Rural/Metro, if the failure or refusal has not been cured within thirty (30) days after Rural/Metro has provided
written notice to Executive of the specific conduct constituting such failure or refusal; (c) has willfully and persistently failed or refused to attend to material duties or obligations imposed upon him under this Agreement, if the failure or
refusal has not been cured within thirty (30) days after Rural/Metro has provided written notice to Executive of the specific conduct constituting such failure or refusal; or (d) has misrepresented or concealed a material fact for purposes of

  

 Page 3 of 16 

 securing employment with Rural/Metro or this Employment Agreement. The existence of “Cause”
shall be determined by Rural/Metro’s Board of Directors acting in good faith after prior notice to Executive and after providing Executive with an opportunity to be heard in a meeting with the Board of Directors. 
  
 Because Executive is in a position which involves great
responsibilities, Rural/Metro is not required to utilize its progressive discipline policy. In addition, no generally applicable grievance policy shall apply to grievances by Executive regarding his employment relationship with Rural/Metro.

  
 If this Agreement and Executive’s
employment is terminated for Cause, Executive shall receive no Severance Benefits. 
  
 B. Termination Without Cause. 
  
 Rural/Metro also may terminate this Agreement and Executive’s employment without Cause at any time after providing Executive with sixty (60) days advance written notice. In the event this
Agreement and Executive’s employment are terminated by Rural/Metro without Cause, Executive shall receive the Severance Benefits pursuant to Section 8. Rural/Metro may place Executive on a paid administrative leave, and bar or restrict
Executive’s access to Rural/Metro facilities, contemporaneously with or at any time following the delivery of the written notice to Executive. For the avoidance of doubt, any action by Rural/Metro pursuant to the foregoing sentence shall not
constitute Good Reason or otherwise constitute a breach of this Agreement by Rural/Metro, and the foregoing sentence or any action by Rural/Metro pursuant thereto shall in no way limit or reduce the rights of Rural/Metro as provided elsewhere
herein. 
  
 6. TERMINATION BY EXECUTIVE.

  
 Executive may terminate this Agreement
and his employment with or without “Good Reason” in accordance with the provisions of this Section 6. 
  
 A. Termination For Good Reason. 
  
 Executive may terminate this Agreement and his employment for “Good Reason” by giving written notice to Rural/Metro within sixty
(60) days, or such longer period as may be agreed to in writing by Rural/Metro, of Executive’s receipt of notice of the occurrence of any event constituting “Good Reason”, as described below. 
  
 Executive shall have “Good Reason” to terminate
this Agreement and his employment upon the occurrence of any of the following events: (a) Executive is assigned duties inconsistent with the positions, duties, responsibility and status of the Senior Vice President and Chief Financial Officer of
Rural/Metro; (b) Executive is required to relocate to an employment location that is more than fifty (50) 
  

 Page 4 of 16 

 miles from his current employment location (which the parties agree is Rural/Metro’s present
Scottsdale headquarters); (c) Executive’s Base Salary rate is reduced to a level that is at least ten percent (10%) less than the salary paid to Executive during the immediately prior calendar year, unless Executive has agreed to said reduction
or unless Rural/Metro makes an across-the-board reduction that applies to all executives; or (d) the potential incentive compensation (or bonus) to which Executive may become entitled under the MIP at any level of performance by Executive or
Rural/Metro is reduced by ten percent (10%) or more as compared to the immediately prior year, unless Executive has agreed to said reduction or unless Rural/Metro makes an across-the-board reduction that applies to all executives. The following
example (which is provided solely as an example) illustrates the operation of subpart (d) of the immediately preceding sentence: If Executive’s maximum potential incentive compensation is reduced to 35% or less of Executive’s Base Salary
in a year immediately following a year in which Executive’s maximum potential incentive compensation was 45% of Executive’s Base Salary, the reduction equals 10% or more, and Employee would have Good Reason. 
  
 Notwithstanding the above provisions, Executive shall not
have “Good Reason” to terminate this Agreement and his employment if, within thirty (30) days of the written notice of Good Reason provided to Rural/Metro by Executive, Rural/Metro corrects, remedies or reverses any event which resulted in
Good Reason. 
  
 If Executive terminates this
Agreement and his employment for Good Reason, Executive shall be entitled to receive Severance Benefits pursuant to Section 8. 
  
 B. Termination Without Good Reason. 
  
 Executive also may terminate this Agreement and his employment without Good Reason at any time by giving
sixty (60) days notice to Rural/Metro. If Executive terminates this Agreement and his employment without Good Reason, Executive shall not receive Severance Benefits pursuant to Section 8. 
  
 C. Administrative Leave. 
  
 Rural/Metro may place Executive on a paid administrative leave, and bar or restrict Executive’s access
to Rural/Metro facilities, contemporaneously with or at any time following the delivery of the written notice of termination by Executive pursuant to Section 6A or 6B. For the avoidance of doubt, any action by Rural/Metro pursuant to the foregoing
sentence shall not constitute Good Reason or otherwise constitute a breach of this Agreement by Rural/Metro, and the foregoing sentence or any action by Rural/Metro pursuant thereto shall in no way limit or reduce the rights of Rural/Metro as
provided elsewhere herein. 
  

 Page 5 of 16 

 7. DEATH OR DISABILITY. 
  
 This Agreement will terminate automatically on
Executive’s death. Any compensation or other amounts due to Executive for services rendered prior to his death shall be paid to Executive’s surviving spouse, or if Executive does not leave a surviving spouse, to Executive’s estate. If
Executive is receiving Severance Benefits or is entitled to payment of an MIP award pursuant to Section 3 at the time of his death, then any unpaid Base Salary component of Executive’s Severance Benefits and MIP award shall be paid to
Executive’s surviving spouse, or if Executive does not leave a surviving spouse, to Executive’s estate, for the balance of the Severance Period (as defined in Section 8) remaining at the time of Executive’s death. In addition, if, at
the time of his death, Executive is receiving Severance Benefits that include the continuation of health, medical, dental, vision or pharmaceutical insurance benefits (as described in Section 8), and Executive’s surviving spouse and/or family
member(s) is covered by such health, medical, dental, vision or pharmaceutical insurance benefits through Rural/Metro at the time of Executive’s death, then such coverage of Executive’s surviving spouse and/or family member(s) shall
continue throughout the balance of the Severance Period. No other benefits shall be payable to Executive’s heirs pursuant to this Agreement, but amounts may be payable pursuant to any life insurance or other benefit plans maintained by
Rural/Metro. 
  
 In the event Executive becomes
“Disabled,” Executive’s employment hereunder and Rural/Metro’s obligation to pay Executive’s Base Salary (less any amounts payable to Executive pursuant to any long-term disability insurance policy paid for by Rural/Metro)
shall continue for a period of six (6) months from the date as of which Executive is determined to have become Disabled, at which point, Executive’s employment hereunder shall automatically cease and terminate. Executive shall be considered
“Disabled” or to be suffering from a “Disability” for purposes of this Section 7 if Executive is unable, after any reasonable accommodations required by the Americans with Disabilities Act or other applicable law, to perform the
essential functions of his position because of a physical or mental impairment. In the absence of agreement between Rural/Metro and Executive as to whether Executive is Disabled or suffering from a Disability (and the date as of which Executive
became Disabled), such determinations shall be made by a licensed physician selected by Rural/Metro. If a licensed physician selected by Executive disagrees with the determination of the physician selected by Rural/Metro, the two physicians shall
select a third physician. The decision of the third physician concerning whether Executive is Disabled or suffering from a Disability (and the date as of which Executive became Disabled) shall be binding and conclusive on all interested parties.

  

 Page 6 of 16 

 8. SEVERANCE BENEFITS. 
  
 If during the Initial Term or any Renewal Term, this
Agreement and Executive’s employment are terminated without Cause by Rural/Metro as set forth in Section 5B prior to the last day of the Initial Term or any Renewal Term, or if Executive elects to terminate this Agreement for Good Reason as set
forth in Section 6A, Executive shall receive the “Severance Benefits” provided by this Section. In addition, Executive also shall receive the Severance Benefits if his employment is terminated due to Disability as set forth in Section 7 or
due to Rural/Metro’s non-renewal of this Agreement as set forth in Section 4. 
  
 The Severance Benefits shall begin immediately following the effective date of termination of employment and, except as otherwise provided herein, will continue to be payable for a period (the
“Benefit Period”) of twenty-four (24) months thereafter. 
  
 The Executive’s Severance Benefits shall consist of the continuation of Executive’s then Base Salary for duration of the Benefit Period, less lawfully required withholdings, and shall be paid in accordance
with Rural/Metro’s generally-applicable payroll practices. Such Severance Benefits shall be paid in lieu of any accrued vacation time, but shall not be in lieu of any MIP award or other incentive compensation due to Executive for services
rendered prior to the date of termination. The Severance Benefits also shall consist of the continuation of any health, medical, dental, vision or pharmaceutical coverage that Executive was participating in as of the last day of active employment.
These coverages shall be continued under COBRA beginning the first day of the month following the effective termination date and shall continue for the duration of the Benefit Period provided that Executive satisfactorily complies with all COBRA
election requirements. During the Benefit Period, Executive shall continue to pay the same premiums paid as of the last day of active employment. Executive’s life insurance coverage may be converted to an individual policy within 30 days of the
effective termination date. Upon conversion, the cost of maintaining an individual policy resides with Executive. If a particular insurance benefit may not be continued for any reason, Rural/Metro shall pay a “Benefit Allowance” to the
Executive. The “Benefit Allowance” will equal 145% of the cost to Rural/Metro of providing the unavailable insurance benefit to a similarly situated employee. The Benefit Allowance shall be paid on a monthly basis or in a single lump sum.
The cost of providing the unavailable benefit to a similarly situated employee and whether the Benefit Allowance will be paid in monthly installments or in a lump sum will be determined by Rural/Metro in the exercise of its discretion. 

 
 If Executive voluntarily terminates this Agreement and his
employment without Good Reason prior to the end of the Initial Term or any Renewal Term, or if Rural/Metro terminates the Agreement and Executive’s employment for Cause, no Severance Benefits shall be paid to Executive. No Severance Benefits
are payable in the event of Executive’s death, except as expressly set forth in Section 7 above. 
  

 Page 7 of 16 

 Severance Benefits will cease if Executive elects to forgo future Severance Benefits
pursuant to Section 11G in order to avoid any further restrictions on his ability to engage in a competing business or to solicit employees or clients. If Executive makes an election pursuant to Section 11G, the Severance Benefits will cease as of
the effective date of the election. 
  
 Severance
Benefits and Executive’s right to exercise any stock options also shall immediately cease if Executive commits a material violation of any of the terms of this Agreement relating to confidentiality and non-disclosure, as set forth in Section
10, or the Covenant-Not-To-Compete, as set forth in Section 11. Only material violations will result in the loss of Severance Benefits and the ability to exercise stock options. 
  
 The payment of Severance Benefits shall not be affected by whether Executive seeks or obtains other
employment. Executive shall have no obligation to seek or obtain other employment and Executive’s Severance Benefits shall not be impacted by Executive’s failure to “mitigate.” 
  
 In order to receive the Severance Benefits, Executive must
execute any release reasonably requested by Rural/Metro of claims that Executive may have in connection with his employment with Rural/Metro. 
  
 9. BENEFITS. 
  
 A. Benefit Plans, Insurance, Options, etc. 
  
 Executive will be entitled to participate in any benefit plans, including, but not limited to, retirement
plans, stock option plans, equity compensation or incentive plans, disability plans, life insurance plans and health, medical, dental, vision and pharmaceutical plans available to other Rural/Metro executive employees, subject to any restrictions
(including waiting periods) specified in said plans. With respect to the determination of the amount of any such stock option or other Equity (as defined in Section 8 above) awards next occurring after the date of this Agreement, Rural/Metro shall,
at such time as it can and does consider Executive for an award under such plans, take into consideration the fact that Executive did not receive stock options or other Equity at the time he was hired or through the date of this Agreement due to the
expiration and non-replacement of Rural/Metro’s 1992 Stock Option Plan. During the term of this Agreement and for a period of six years thereafter, Rural/Metro shall maintain Directors and Officers insurance policy(ies) providing coverage
(subject to the terms of such policy) for the acts and omissions of Executive during the term of his employment. 
  

 Page 8 of 16 

 B. Vacation. 
  
 Executive is entitled to four (4) weeks of paid vacation per calendar year, with such vacation to be
scheduled and taken in accordance with Rural/Metro’s standard vacation policies. If Executive does not take the full vacation available in any year, the unused vacation may not be carried over to the next calendar year, and Executive will not
be compensated for it. 
  
 10.
CONFIDENTIALITY; NON-DISCLOSURE; OWNERSHIP OF WORK. 
  
 A. Confidentiality; Non-Disclosure. 
  
 During the course of his employment, Executive will become exposed to a substantial amount of confidential and proprietary information, including, but not limited to, financial information,
annual reports, audited and unaudited financial reports, operational budgets and strategies, methods of operation, customer lists, strategic plans, business plans, marketing plans and strategies, new business strategies, merger and acquisition
strategies, management systems programs, computer systems, personnel and compensation information and payroll data, and other such reports, documents or information (collectively the “Confidential and Proprietary Information”). In the
event his employment is terminated by either party for any reason, Executive promises that he will not, retain, take with him or make any copies of such Confidential and Proprietary Information in any form, format, or manner whatsoever (including
computer print-outs, computer tapes, floppy disks, CD-ROMs, etc.) nor will he disclose the same in whole or in part to any person or entity, in any manner either directly or indirectly. Excluded from this Agreement is information that (i) is or
becomes publicly known through no violation of this Agreement, (ii) is lawfully received by the Executive from any third party without restriction on disclosure or use, (iii) is required to be disclosed by law, or (iv) is expressly approved in
writing by Rural/Metro for release or other use by the Executive. The provisions of this paragraph shall survive the termination of this Agreement. 
  
 B. Ownership of Work, Materials and Documents. 
  
 All records, reports, notes, compilations, software, programs, designs and/or other recorded or created
matters, copies thereof or reproductions, in whatever media form, relating to Rural/Metro’s trade secrets, operations, activities, or business, made or received by Executive during any past, present or future employment with Executive are and
shall be works made for hire and are, or shall become the exclusive property of Rural/Metro. Failure to return Rural/Metro’s property, whether during the term of this Agreement or after its termination, shall be a breach of this Agreement. The
provisions of this paragraph shall survive the termination of this Agreement. 
  

 Page 9 of 16 

 11. COVENANT-NOT-TO-COMPETE. 
  
 A. Interests to be Protected. 
  
 The parties acknowledge that during the term of his
employment, Executive will perform essential services for Rural/Metro, its employees and shareholders, and for clients of Rural/Metro. Therefore, Executive will be given an opportunity to meet, work with and develop close working relationships with
Rural/Metro’s clients on a first-hand basis and will gain valuable insight as to the clients’ operations, personnel and need for services. In addition, Executive will be exposed to, have access to, and be required to work with, a
considerable amount of Rural/Metro’s Confidential and Proprietary Information. 
  
 The parties also expressly recognize and acknowledge that the personnel of Rural/Metro have been trained by, and are valuable to Rural/Metro, and that if Rural/Metro must hire new personnel or
retrain existing personnel to fill vacancies it will incur substantial expense in recruiting and training such personnel. The parties expressly recognize that should Executive compete with Rural/Metro in any manner whatsoever, it could seriously
impair the goodwill and diminish the value of Rural/Metro’s business. 
  
 The parties acknowledge that this covenant has an extended duration; however, they agree that this covenant is reasonable and it is necessary for the protection of Rural/Metro. 
  
 For these and other reasons, and the fact that there are many
other employment opportunities available to Executive if he should terminate, the parties are in full and complete agreement that the following restrictive covenants (which together are referred to as the “Covenant-Not-To-Compete”) are
fair and reasonable and are freely, voluntarily and knowingly entered into. Further, each party has been given the opportunity to consult with independent legal counsel before entering into this Agreement. 
  
 B. Devotion to Employment. 
  
 Executive shall devote substantially all his business time
and efforts to the performance of his duties on behalf of Rural/Metro. During his term of employment, Executive shall not at any time or place or to any extent whatsoever, either directly or indirectly, without the express written consent of
Rural/Metro, engage in any outside employment, or in any activity competitive with or adverse to Rural/Metro’s business, practice or affairs, whether alone or as partner, officer, director, employee, shareholder of any corporation or as a
trustee, fiduciary, consultant or other representative. This is not intended to prohibit Executive from engaging in nonprofessional activities such as personal investments or conducting to a reasonable extent private business affairs which may
include other boards of directors’ 
  

 Page 10 of 16 

 activity, as long as they do not conflict with Rural/Metro. Participation to a reasonable extent in
civic, social or community activities is encouraged. Notwithstanding anything herein to the contrary, any non-Rural/Metro activities shall be conducted in compliance with Rural/Metro’s corporate governance policies and other policies and
procedures as in effect from time to time. 
  
 C. Non-Solicitation of Clients. 
  
 During the term of Executive’s employment with Rural/Metro and for a period, after the termination of employment with Rural/Metro, equal to two (2) years (the “Non-Compete Period”), regardless of who initiates the termination
and for whatever reason, Executive shall not directly or indirectly, for himself, or on behalf of, or in conjunction with, any other person(s), company, partnership, corporation, or governmental entity, in any manner whatsoever, call upon, contact,
encourage, handle or solicit client(s) of Rural/Metro with whom he has worked as an employee of Rural/Metro at any time prior to termination, or at the time of termination, for the purpose of soliciting or selling such customer the same, similar, or
related services that he provided on behalf of Rural/Metro. 
  
 D. Non-Solicitation of Employees. 
  
 During the term of Executive’s employment with Rural/Metro and for the Non-Compete Period, regardless of who initiates the termination and for any reason, Executive shall not knowingly,
directly or indirectly, for himself, or on behalf of, or in conjunction with, any other person(s), company, partnership, corporation, or governmental entity, seek to hire, and/or hire any of Rural/Metro’s personnel or employees for the purpose
of having such employee engage in services that are the same, similar or related to the services that such employee provided for Rural/Metro. 
  
 E. Competing Business. 
  
 During the term of this Agreement and for the Non-Compete Period, regardless of who initiates the termination and for any reason,
Executive shall not, directly or indirectly, for himself, or on behalf of, or in conjunction with, any other person(s), company, partnership, corporation, or governmental entity, in any manner whatsoever, engage in the same or similar business as
Rural/Metro, which would be in direct competition with any Rural/Metro line of business, in any geographical service area where Rural/Metro is engaged in business, or was considering engaging in business at any time prior to the termination or at
the time of the termination. For the purposes of this provision, the term “competition” shall mean directly or indirectly engaging in or having a substantial interest in a business or operation which is, or will be, performing the same
services provided by Rural/Metro. 
  

 Page 11 of 16 

 F. Extension of Period. 
  
 Executive agrees that the Non-Compete Period referred to in
subsections C, D and E shall be extended for a period of time equal to the duration of any breach of this Agreement by Executive, but in no event longer than six (6) months. 
  
 G. Election to Shorten Period. 
  
 Executive may elect to shorten the Non-Compete Period referred to in subsections C, D and E to any period of
at least twelve (12) months, provided that Executive is not in breach of such subsections at the time of such election. In order to make this election, Executive must provide Rural/Metro with written notice at least sixty (60) days prior to the
expiration of the shortened period. As provided in Section 8, if Executive makes this election, any Severance Benefits provided by Section 8 will be discontinued as of the effective date of the election. 
  
 H. Automatic Reduction of Period. 

 
 The Non-Compete Period referred to in subsections C, D
and E shall be shortened to twelve (12) months if Executive is not entitled to receive Severance Benefits pursuant to Section 8 at the time of his termination of employment. 
  
 I. Judicial Amendment. 
  
 If the scope of any provision of this Agreement is found by the Court to be too broad to permit enforcement
to its full extent, then such provision shall be enforced to the maximum extent permitted by law. The parties agree that the scope of any provision of this Agreement may be modified by a judge in any proceeding to enforce this Agreement, so that
such provision can be enforced to the maximum extent permitted by law. If any provision of this Agreement is found to be invalid or unenforceable for any reason, it shall not affect the validity of the remaining provisions of this Agreement.

  
 J. Injunctive Relief, Damages and
Forfeiture. 
  
 Due to the nature of
Executive’s position with Rural/Metro, and with full realization that a violation of Sections 10 and 11 will cause immediate and irreparable injury and damage, which is not readily measurable, and to protect Rural/Metro’s interests,
Executive understands and agrees that in addition to instituting legal proceedings to recover damages resulting from a breach of this Agreement, Rural/Metro may seek to enforce this Agreement with an action for injunctive relief, to cease or prevent
any actual or threatened violation of this Agreement on the part of Executive. Likewise, Executive can seek injunctive relief for any action Executive may elect to bring relating to Sections 10 and 11. 
  

 Page 12 of 16 

 K. Survival. 
  
 The provisions of this Section 11 shall survive the termination of this Agreement. 
  
 12. BUSINESS EXPENSES. 
  
 Rural/Metro will reimburse Executive for any and all
necessary, customary, and usual expenses, properly receipted in accordance with Rural/Metro’s policies, incurred by Executive on behalf of Rural/Metro. 
  
 13. AMENDMENTS. 
  
 This Agreement, the Executive’s Indemnity Agreement, Stock Option Agreements (if any), and the Executive’s Change of Control
Agreement constitute the entire agreement between the parties as to the subject matter hereof, and all prior Employment Agreements are being terminated as of the Effective Date. Accordingly, there are no side agreements or verbal agreements other
than those which are stated above. Any amendment, modification or change in this Agreement must be done so in writing and signed by both parties. Nothing in this Agreement is intended to alter or modify Executive’s Indemnity Agreement or Stock
Option Agreements (if any), which shall continue in full force and effect following the execution of this Agreement. 
  
 14. SEVERABILITY. 
  
 In the event a court or arbitrator declares that any provision of this Agreement is invalid or unenforceable, it shall not affect or
invalidate any of the remaining provisions. Further, the court shall have the authority to re-write that portion of the Agreement it deems unenforceable, to make it enforceable. 
  
 15. GOVERNING LAW. 
  
 The law of the State of Arizona shall govern the interpretation and application of all of the provisions of
this Agreement. 
  
 16. DISPUTE
RESOLUTION. 
  
 A. Mediation.

  
 Any and all disputes arising under,
pertaining to or touching upon this Agreement or the statutory rights or obligations of either party hereto, shall, if not settled by negotiation, be subject to non-binding mediation before an independent mediator selected by the parties pursuant to
Section 16D. Notwithstanding the foregoing, either Executive or Rural/Metro may seek preliminary judicial relief based upon a belief that such action may be necessary to avoid irreparable damage during the pendency of 
  

 Page 13 of 16 

 the proceedings described in this Section 16. Any demand for mediation shall be made in writing and
served upon the other party to the dispute, by certified mail, return receipt requested, at the business address of Rural/Metro, or at the last known residence address of Executive, respectively. The demand shall set forth with reasonable
specificity the basis of the dispute and the relief sought. The mediation hearing will occur at a time and place convenient (and mutually agreeable) to the parties within thirty (30) days of the date of selection or appointment of the mediator.

  
 B. Arbitration. 
  
 In the event that the dispute is not settled through
mediation, the parties shall then proceed to binding arbitration before a single independent arbitrator selected pursuant to Section 18D. The mediator shall not serve as arbitrator. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, ALL DISPUTES
INVOLVING ALLEGED UNLAWFUL EMPLOYMENT DISCRIMINATION, BREACH OF CONTRACT OR POLICY, OR EMPLOYMENT TORT COMMITTED BY RURAL/METRO OR A REPRESENTATIVE OF RURAL/METRO, INCLUDING CLAIMS OF VIOLATIONS OF FEDERAL OR STATE DISCRIMINATION STATUTES OR PUBLIC
POLICY, SHALL BE RESOLVED PURSUANT TO THIS AGREEMENT AND THERE SHALL BE NO RECOURSE TO COURT, WITH OR WITHOUT A JURY TRIAL. The arbitration hearing shall occur at a time and place convenient (and mutually agreeable to) the parties within thirty (30)
days of selection or appointment of the arbitrator. If Rural/Metro has adopted a policy that is applicable to arbitrations with executives, the arbitration shall be conducted in accordance with said policy to the extent that the policy is consistent
with this Agreement and the Federal Arbitration Act, 9 U.S.C. §§ 1-16. If no such policy has been adopted, the arbitration shall be governed by the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association (“AAA”) in effect on the date of the first notice of demand for arbitration. The arbitrator shall issue written findings of fact and conclusions of law, and an award, within thirty (30) days of the date of the hearing unless
the parties otherwise agree. 
  
 C.
Damages. 
  
 In cases of breach of
contract or policy, damages shall be limited to contract damages. In cases of discrimination claims prohibited by statute, the arbitrator may direct payment consistent with the applicable statute. In cases of employment tort, the arbitrator may
award punitive damages if proved by clear and convincing evidence. The arbitrator may award fees to the prevailing party and assess costs of the arbitration to the non-prevailing party. Issues of procedure, arbitrability, or confirmation of award
shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, except that Court review of the arbitrator’s award shall be that of an appellate court reviewing a decision of a trial judge sitting without a jury. 
  

 Page 14 of 16 

 D. Selection of Mediators or Arbitrators. 
  
 The parties shall select the mediator or arbitrator from a
panel list made available by the AAA. If the parties are unable to agree to a mediator or arbitrator within thirty (30) days of receipt of a demand for mediation or arbitration, the mediator or arbitrator will be chosen by alternatively striking
from a list of five (5) mediators or arbitrators obtained by Rural/Metro from AAA. Executive shall have the first strike. 
  
 17. MISCELLANEOUS. 
  
 A. Non-Waiver. 
  
 The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this
Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms,
covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party. 
  
 B.
Construction; Counterparts. 
  
 This
Agreement shall be construed fairly as to both parties and not in favor of or against either party, regardless of which party prepared the Agreement. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an
original, and all such counterparts shall constitute but one instrument. 
  
 C. Notices. 
  
 All notices required or permitted to be given hereunder shall be deemed given when delivered in person, or three (3) business days after being placed in the hands of a courier service (e.g., DHL or Federal Express)
prepaid or faxed provided that a confirming copy is delivered forthwith as herein provided, addressed, when to Executive, at the last known mailing address in Rural/Metro’s human resources files, and, when to Rural/Metro, at the mailing address
of the corporate headquarters and to the attention of Rural/Metro’s Chief Executive Officer, and/or to such other respective addresses and/or addressees as may be designated by notice given in accordance with the provisions of this Section.

  
 [Signature Page Immediately Follows] 
  

 Page 15 of 16 

 IN WITNESS WHEREOF, Rural/Metro and Executive have executed this Agreement. 

 

					
	 EXECUTIVE
	 	 RURAL/METRO CORPORATION

			
	 /s/ Michael S. Zarriello

	 	 By:
	 	 /s/ Jack Brucker

	 Michael S. Zarriello
	 	 	 	 Jack Brucker

	 Senior Vice President and Chief Financial
Officer
	 	 	 	 Chief Executive Officer and President

			
	 	 	 By:
	 	 /s/ Mary Anne Carpenter

	 	 	 	 	 Mary Anne Carpenter

	 	 	 	 	 Chair, Compensation Committee

  

 Page 16 of 16

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