Document:

Exhibit 4.2

 

SUPPLEMENTAL INDENTURE NO. 1

 

Dated as of October 23, 2015

 

4.750% Notes due 2045

 

SUPPLEMENTAL INDENTURE NO. 1, dated as of October 23, 2015, between FedEx Corporation, a Delaware corporation (the “Company”), the Guarantors referred to in the Indenture below (the “Guarantors”) and Wells Fargo Bank, National Association, as trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered an Indenture, dated as of October 23, 2015 (as amended or supplemented to date, the “Indenture”), to provide for the issuance by the Company from time to time, and the guarantee by the Guarantors, of the Company’s senior unsecured debt securities;

 

WHEREAS, Section 9.01(b) of the Indenture permits execution of supplemental indentures without the consent of any Holders for the purpose of adding to the covenants of the Company or any Guarantor for the benefit of the Holders of less than all series of Securities so long as such supplemental indenture states that such covenant is expressly being included solely for the benefit of one or more particular series of Securities;

 

WHEREAS, Section 9.01(j) of the Indenture permits execution of supplemental indentures for the purpose of establishing the form or terms of Securities of any series as permitted by Sections 2.01 and 3.01 of the Indenture without the consent of any Holders;

 

WHEREAS, the entry into this Supplemental Indenture No. 1 by the parties hereto is authorized by the provisions of the Indenture;

 

WHEREAS, the Change of Control Repurchase Event (as defined herein) covenant, as set forth below, is expressly being included solely for the benefit of the 2045 Notes (as defined herein); and

 

WHEREAS, all things necessary to make the 2045 Notes, when executed by the Company and authenticated and delivered hereunder and under the Indenture, duly issued by the Company and to make this Supplemental Indenture No. 1 a valid and binding agreement of the Company and the Guarantors, in accordance with the terms hereof and thereof, have been done.

 

NOW, THEREFORE, for and in consideration of the premises and the purchase of the 2045 Notes by the Holders, the Company, the Guarantors and the

 

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Trustee mutually covenant and agree, for the equal and proportionate benefit of the respective Holders from time to time of the 2045 Notes as follows:

ARTICLE 1
 RELATION TO THE INDENTURE; DEFINITIONS AND
 OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Relation to the Indenture.  This Supplemental Indenture No. 1 constitutes an integral part of the Indenture.

 

Section 1.02.  Definitions and Other Provisions of General Application.  For all purposes of this Supplemental Indenture No. 1 unless otherwise specified herein:

 

(a)           all terms defined in this Supplemental Indenture No. 1 which are used and not otherwise defined herein shall have the meanings they are given in the Indenture; and

 

(b)           the provisions of general application stated in Section 1.01 of the Indenture shall apply to this Supplemental Indenture No. 1, except that the words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Supplemental Indenture No. 1 as a whole and not to the Indenture or any particular Article, Section or other subdivision of the Indenture or this Supplemental Indenture No. 1.

 

ARTICLE 2
 THE SERIES OF NOTES

 

Section 2.01.  Title.  There shall be a series of Securities designated the 4.750% Notes due 2045 (the “2045 Notes”).

 

Section 2.02.  Principal Amounts.  The initial aggregate principal amount of the 2045 Notes that may be authenticated and delivered under this Supplemental Indenture No. 1 shall not exceed $1,250,000,000 (except for 2045 Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other 2045 Notes pursuant to Section 3.04, 3.05, 3.06, 9.06 or 11.07 of the Indenture and except for any 2045 Notes which pursuant to Section 3.03 of the Indenture are deemed never to have been authenticated and delivered hereunder).

 

Section 2.03.  Maturity Dates.  The entire outstanding principal amount of the 2045 Notes shall be payable on November 15, 2045.

 

Section 2.04.  Interest.  The 2045  Notes will bear interest at the rate of 4.750% per annum. Interest on the 2045 Notes will be computed on the basis of a

 

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360-day year of twelve 30-day months. Interest on the 2045 Notes will be payable semi-annually in arrears on May 15 and November 15, commencing May 15, 2016, and ending on the date of maturity, to the Persons in whose names the 2045 Notes are registered on the preceding May 1 and November 1 (whether or not that date is a Business Day), respectively.

 

Section 2.05.  Defeasance and Discharge; Covenant Defeasance.  The provisions of Section 13.02 and Section 13.03 of the Indenture shall apply to the 2045 Notes.

 

Section 2.06.  Optional Redemption.  The Company will have the right, at its option, to redeem the 2045  Notes in whole or in part at any time prior to the Par Call Date, on at least 30 days’, but no more than 60 days’, prior written notice mailed by the Company (or otherwise delivered in accordance with the applicable procedures of the Depositary) to the Holders of the 2045 Notes to be redeemed. Upon redemption of such 2045 Notes, the Company will pay a redemption price as calculated by a Reference Treasury Dealer (as defined below) selected by the Company equal to the greater of:

 

(a)           100% of the principal amount of the 2045 Notes to be redeemed; and

 

(b)           the sum of the present values of the remaining scheduled payments of principal and interest on the 2045 Notes to be redeemed that would be due if the 2045 Notes matured on the Par Call Date (not including any portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate described below plus 0.300% (30 basis points);

 

in each case, plus accrued and unpaid interest to the date of redemption on the principal amount of the 2045 Notes being redeemed.

 

At any time on or after the Par Call Date, the Company may redeem the 2045 Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2045 Notes to be redeemed plus accrued and unpaid interest to the date of redemption on the principal amount of the 2045 Notes being redeemed.

 

“Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that date of redemption.

 

“Comparable Treasury Issue” means the United States Treasury security selected by a Reference Treasury Dealer selected by the Company as having a maturity comparable to the remaining term of the 2045 Notes to be redeemed

 

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(assuming, for this purpose, that the 2045 Notes mature on the Par Call Date) that would be used, at the time of selection and under customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the 2045 Notes (assuming, for this purpose, that the 2045 Notes mature on the Par Call Date).

 

“Comparable Treasury Price” means, with respect to any date of redemption, the average of the Reference Treasury Dealer Quotations for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or if the Company is provided fewer than three Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

“Par Call Date” means May 15, 2045 (the date that is six months prior to the maturity date of the 2045 Notes).

 

“Reference Treasury Dealer” means each of (i) Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and a Primary Treasury Dealer (as defined herein) selected by Wells Fargo Securities, LLC and their respective successors and (ii) any other primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) the Company selects. If any of the foregoing ceases to be a Primary Treasury Dealer, the Company must substitute another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day before the date of redemption.

 

Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the 2045 Notes or portions of the 2045 Notes called for redemption.

 

Section 2.07  Form of Notes.  The 2045 Notes shall be represented by one or more permanent global notes registered in the name Cede & Co. or The Depository Trust Company or its nominee. The 2045 Notes shall be in the form of Exhibit A attached hereto.

 

Section 2.08.  Sinking Fund.  The 2045 Notes shall not be subject to a sinking fund.

 

Section 2.09.  Additional Amounts.  The provisions of Section 10.06 of the Indenture shall not apply to the 2045 Notes.

 

Section 2.10.  Amount Not Limited.  The aggregate principal amount of 2045 Notes which may be authenticated and delivered under the Indenture, as supplemented from time to time, shall not be limited, and additional 2045 Notes

 

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may be issued from time to time without any consent of Holders or of the Trustee, provided that if the additional 2045 Notes are not fungible with the then-outstanding 2045 Notes for U.S. federal income tax purposes, the additional 2045 Notes shall have a separate CUSIP number.

 

ARTICLE 3
 CHANGE OF CONTROL REPURCHASE EVENT

 

Section 3.01.  Intended Beneficiary; Definitions.

 

(a)           The provisions of this Article 3 shall be applicable only to, and are solely for the benefit of Holders of, the 2045 Notes and to no other Security.

 

(b)           For purposes of this Supplemental Indenture No. 1:

 

“Below Investment Grade Ratings Event” means, with respect to the 2045 Notes, on any day within the 60-day period (which period shall be extended so long as the rating of the 2045 Notes is under publicly announced consideration for a possible downgrade by any Rating Agency) after the earlier of (1) the occurrence of a Change of Control, or (2) the public announcement of the occurrence of a Change of Control or the intention by the Company to effect a Change of Control, the 2045 Notes are rated below Investment Grade by each and every Rating Agency. Notwithstanding the foregoing, a Below Investment Grade Ratings Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Ratings Event for purposes of the definition of Change of Control Repurchase Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not publicly announce or publicly confirm, or inform the Trustee in writing at the Company’s request, that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Ratings Event).

 

“Change of Control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than (1) the Company, (2) any Subsidiary, (3) any employee benefit plan (or a trust forming a part thereof) maintained by the Company or any Subsidiary, or (4) any underwriter temporarily holding Voting Stock of the Company pursuant to an offering of such Voting Stock, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the combined voting power of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is

 

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reclassified, consolidated, exchanged or changed measured by voting power rather than number of shares.

 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Ratings Event with respect to the 2045 Notes.

 

“Investment Grade” means, with respect to Moody’s, a rating of Baa3 or better (or its equivalent under any successor rating categories of Moody’s); with respect to S&P, a rating of BBB- or better (or its equivalent under any successor rating categories of S&P); and, with respect to any additional Rating Agency or Rating Agencies selected by the Company, the equivalent investment grade credit rating.

 

“Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors.

 

“Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases to rate the 2045 Notes or fails to make a rating of the 2045 Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act, selected by the Company (as certified by a Board Resolution) as a replacement agency for Moody’s or S&P, or both of them, as the case may be.

 

“S&P” means Standard & Poor’s Ratings Services, a division of McGraw Hill Financial, Inc., and its successors.

 

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

 

Section 3.02.  Change of Control Repurchase Event.

 

(a)           If a Change of Control Repurchase Event occurs with respect to the 2045 Notes, unless the Company has exercised its right to redeem the 2045 Notes pursuant to the redemption terms of the 2045 Notes, the Company will make an offer to each Holder of the 2045 Notes to repurchase all or any part (in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof) of that Holder’s 2045 Notes at a repurchase price (the “Repurchase Price”) in cash equal to 101% of the aggregate principal amount of such 2045 Notes repurchased plus any accrued and unpaid interest on such 2045 Notes repurchased to, but not including, the Repurchase Date (defined below).

 

(b)           Within 30 days following a Change of Control Repurchase Event or, at the Company’s option, prior to a Change of Control, but after the public announcement of such Change of Control, the Company will mail, or cause to be

 

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mailed, or otherwise deliver in accordance with the applicable procedures of the Depositary, a notice to each Holder of the 2045 Notes, with a copy to the Trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the 2045 Notes on the payment date specified in the notice (such offer the “Repurchase Offer” and such date the “Repurchase Date”), which Repurchase Date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed, pursuant to the procedures described in such notice. The notice shall, if mailed or delivered prior to the date of consummation of the Change of Control, state that the Repurchase Offer is conditioned on a Change of Control Repurchase Event occurring on or prior to the Repurchase Date.

 

(c)           The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations to the extent those laws and regulations are applicable in connection with the repurchase of the 2045 Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the 2045 Notes, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Repurchase Event provisions of the 2045 Notes by virtue of such conflict.

 

(d)           On the Repurchase Date following a Change of Control Repurchase Event, the Company will, to the extent lawful:

 

(i)        accept for payment all 2045 Notes or portions of 2045 Notes properly tendered pursuant to the Repurchase Offer;

 

(ii)       deposit with the Trustee or with such Paying Agent as the Trustee may designate an amount equal to the aggregate Repurchase Price for all 2045 Notes or portions of 2045 Notes properly tendered;

 

(iii)      deliver, or cause to be delivered, to the Trustee the 2045 Notes properly accepted for payment by the Company, together with an Officers’ Certificate stating the aggregate principal amount of 2045 Notes being repurchased by the Company pursuant to the Repurchase Offer; and

 

(iv)     deliver, or cause to be delivered, to the Trustee, for authentication by the Trustee, any new 2045 Notes required to be issued pursuant to Section 3.02(e) below, duly executed by the Company.

 

(e)           Upon receipt by the Trustee from the Company of a notice setting forth the Repurchase Price and the 2045 Notes properly tendered and accepted for payment, the Trustee will promptly mail, or cause the Paying Agent to promptly mail, or otherwise deliver in accordance with the applicable procedures of the Depositary, to each Holder of 2045 Notes, or portions of 2045 Notes, properly tendered and accepted for payment by the Company the Repurchase Price for

 

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such 2045 Notes or portions of 2045 Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each such Holder a new 2045 Note duly executed by the Company equal in principal amount to any unpurchased portion of any 2045 Notes surrendered, as applicable; provided that each such new 2045 Note will be in a principal amount equal to $2,000 or integral multiples of $1,000 in excess thereof.

 

(f)            The Company will not be required to make a Repurchase Offer upon a Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all 2045 Notes or portions of 2045 Notes properly tendered and not withdrawn under its offer.

 

(g)           The Company and the Guarantors acknowledge that the Company may not have sufficient funds to repurchase all 2045 Notes or portions of 2045 Notes properly tendered upon a Change of Control Repurchase Event.

 

ARTICLE 4
 MISCELLANEOUS PROVISIONS

 

Section 4.01.  Supplemental Indenture.  The Indenture, as supplemented by this Supplemental Indenture No. 1, is in all respects hereby adopted, ratified and confirmed.

 

Section 4.02.  Effectiveness.  This Supplemental Indenture No. 1 shall take effect as of the date hereof.

 

Section 4.03.  Effect of Headings.  The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

 

Section 4.04.  Separability Clause.  In case any provision in this Supplemental Indenture No. 1 shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions herein shall not in any way be affected or impaired thereby.

 

Section 4.05.  Governing Law.  This Supplemental Indenture No. 1 shall be governed by and construed in accordance with the laws of the State of New York.

 

Section 4.06.  Execution by the Trustee.  The Trustee has executed this Supplemental Indenture No. 1 only upon the terms and conditions set forth in the Indenture. Without limiting the generality of the foregoing, the Trustee shall not be responsible for the correctness of the recitals contained herein, which shall be taken as statements of the Company and the Guarantors, and the Trustee makes no representation and shall have no responsibility for, or in respect of, the validity or

 

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sufficiency of this Supplemental Indenture No. 1 or the execution hereof by any Person (other than the Trustee).

 

Section 4.07.  Counterparts.  This Supplemental Indenture No. 1 may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 1 to be duly executed, all as of the day and year first above written.

 

 

	
 
    	
 
    	
FedEx   Corporation,
    
	
 
    	
 
    	
as Issuer
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Michael C.   Lenz
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
Name:
    	
Michael C. Lenz
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
Title:
    	
Corporate Vice President and
   Treasurer
    

 

[Signature Page to Supplemental Indenture No. 1]

 

 

	
 
    	
 
    	
Federal Express Corporation,
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Elise L.   Jordan
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Elise L. Jordan
    
	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice   President and
   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
FedEx Ground Package System, Inc.,
 as Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Gretchen G.   Smarto
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Gretchen G. Smarto
    
	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice President —
 Finance and Administration,
   Chief Financial Officer and
   Treasurer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
FedEx Freight Corporation,
 as Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Donald C.   Brown
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Donald C. Brown
    
	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Executive Vice   President —
   Finance and Administration
   and Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
FedEx Freight, Inc.,
   as Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward Klank   III
    	
 
    	
By:
    	
/s/ Donald C.   Brown
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Donald C. Brown
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Executive Vice   President —
   Finance and Administration
   and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 1]

 

 

	
 
    	
 
    	
FedEx Office and Print Services, Inc.,
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Leslie M.   Benners
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Leslie M. Benners
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice President   and
   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
FedEx Corporate Services, Inc.,
   as Guarantor
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Mark A.   McGough
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Mark A. McGough
    
	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice   President and
   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Federal Express Europe, Inc.,
 as Guarantor
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By: 
    	
/s/ Helena Jansson
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Helena Jansson
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Vice President and   Chief
   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Federal Express Holdings S.A.,
 as Guarantor
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Juan N. Cento
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Juan N. Cento
    
	
Title:
    	
Assistant Secretary
    	
 
    	
 
    	
Title:
    	
Chairman of the   Board,
   President and Chief Executive
   Officer
    

 

[Signature Page to Supplemental Indenture No. 1]

 

 

	
 
    	
 
    	
Federal Express International, Inc.,
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Ming Kwang   (Philip) Cheng
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Ming Kwang   (Philip) Cheng
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
FedEx TechConnect, Inc.,
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Mark A. McGough
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Mark A. McGough
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice   President and
   Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

[Signature Page to Supplemental Indenture No. 1]

 

 

	
 
    	
Wells   Fargo Bank, National Association,

as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stefan Victory
    
	
 
    	
 
    	
Name:
    	
Stefan Victory
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Supplemental Indenture No. 1]

 

 

Exhibit A

 

Form of 2045 Note

 

	
No. [·]
    	
CUSIP   No. 31428X BE5
    

 

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 OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

Unless this security is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange or payment, and any security issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

FEDEX CORPORATION

 

4.750% Notes due 2045

 

Guaranteed as to Payment of Principal and Interest
 by the Guarantors named in the Indenture Referred to Below

 

FedEx Corporation, a Delaware corporation (the “Company,” which term includes any successor Corporation under the Indenture), for value received, hereby promises to pay to

 

Cede & Co.
 c/o The Depository Trust Company
 55 Water Street
 New York, New York 10041

 

or registered assigns, the principal sum of US$[   ] on November 15, 2045 (the “Maturity Date”) and to pay interest thereon from October 23, 2015, or from the

 

1

 

most recent “Interest Payment Date” to which interest has been paid or duly provided for, semi-annually in arrears on May 15 and November 15 of each year, commencing May 15, 2016, and ending on the Maturity Date, at the rate of 4.750% per annum, until the principal hereof is paid or duly provided for. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture dated as of October 23, 2015 between the Company, the Guarantors referred to in the Indenture and Wells Fargo Bank, National Association as Trustee (the “Trustee,” which term includes any successor trustee pursuant to the Indenture), as supplemented by Supplemental Indenture No. 1 dated as of October 23, 2015 (“Supplemental Indenture No. 1”), between the Company, the Guarantors named therein and the Trustee (as so amended and supplemented, the “Indenture”), be paid to the Person in whose name this Note is registered at the close of business on the “Regular Record Date” for such interest, which shall be the preceding May 1 and November 1 (whether or not a Business Day), respectively. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the registered Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

 

The Company will at all times appoint and maintain a Paying Agent (which may be the Trustee) authorized by the Company to pay the principal of and interest on any Notes of this series on behalf of the Company and having an office or agency in New York, New York and in such other cities, if any, as the Company may designate in writing to the Trustee (the “Place of Payment”) where Notes of this series may be presented or surrendered for payment and where notices, designations or requests in respect for payments with respect to Notes of this series may be served.  The Company has initially appointed Wells Fargo Bank, National Association as such Paying Agent.

 

Interest payments on this Note will be computed and paid on the basis of a 360-day year of twelve 30-day months. Interest payable on this Note on any Interest Payment Date and on the Maturity Date will include interest accrued from and including the most recent Interest Payment Date to which interest has been paid or duly provided for (or from and including October 23, 2015, if no interest has been paid on this Note) to but excluding such Interest Payment Date or the Maturity Date, as the case may be.

 

If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day (as defined below), principal or interest payable with respect to such Interest Payment Date or Maturity Date, as the case may be, will be paid on

 

2

 

the next succeeding Business Day with the same force and effect as if it were paid on the date such payment was due, and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be. “Business Day” means any day other than Saturday, Sunday or other day on which banking institutions in New York or Tennessee are obligated or authorized by law to close.

 

The principal and interest payable on this Note will be made by wire transfer of immediately available funds to the Holder hereof in such currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

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

 

Unless the Certificate of Authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit pursuant to the Indenture or be valid or obligatory for any purpose.

 

3

 

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

 

	
 
    	
FEDEX CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Michael C.   Lenz
    
	
 
    	
 
    	
Title:   Corporate Vice President
    
	
 
    	
 
    	
and Treasurer
    

 

Attest:

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name: C. Edward   Klank III
    	
 
    
	
 
    	
Title:   Assistant Secretary
    	
 
    

 

4

 

Certificate of Authentication

 

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

 

	
 
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

Dated:  October 23, 2015

 

5

 

[REVERSE OF SECURITY]

 

FEDEX CORPORATION

 

4.750% Notes due 2045

 

This Note is one of a duly authorized issue of notes of the Company (herein called the “Notes”), issued pursuant to the Indenture. 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 Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern. This Note is one of the series designated on the face hereof, limited in initial aggregate principal amount to US$1,250,000,000. Capitalized terms used herein and in the Guarantee endorsed hereon but not defined herein have the meanings ascribed to such terms in the Indenture.

 

The Notes of this series are not subject to any sinking fund.

 

The Company will have the right, at its option, to redeem the Notes of this series in whole or in part at any time prior to the Par Call Date, on at least 30 days’, but no more than 60 days’, prior written notice mailed to the registered address of each Holder of the Notes of this series to be redeemed. Upon redemption of such Notes, the Company will pay a redemption price as calculated by a Reference Treasury Dealer (as defined in Supplemental Indenture No. 1) selected by the Company equal to the greater of (i) 100% of the principal amount of the Notes of this series to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes of this series to be redeemed that would be due if the Notes of this series matured on the Par Call Date (not including any portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate (as defined in Supplemental Indenture No. 1) plus 0.300% (30 basis points), plus, in the case of either (i) or (ii), accrued and unpaid interest to the date of redemption on the principal amount of the Notes of this series being redeemed.

 

At any time on or after the Par Call Date, the Company may redeem the Notes of this series, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes of this series to be redeemed plus accrued and unpaid interest to the date of redemption on the principal amount of the Notes of this series being redeemed. As used in this Note, Par Call Date shall mean May 15, 2045 (the date that is six months prior to the maturity date of the Notes of this series).

 

6

 

Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes or portions of the Notes of this series called for redemption.

 

If a Change of Control Repurchase Event (as defined in Supplemental Indenture No. 1) occurs with respect to Notes of this series, unless the Company has exercised its right to redeem the affected Notes, the Company will make an offer, as provided in, and subject to the terms of, Supplemental Indenture No. 1, to each Holder of the Notes of this series to repurchase all or any part (in minimum denominations of $2,000 or integral multiples of $1,000 in excess thereof) of that Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of such Notes repurchased plus any accrued and unpaid interest on such Notes repurchased to, but not including, the date of repurchase.

 

The Notes of this series are fully and unconditionally guaranteed as to the due and punctual payment of the principal and interest in respect thereof by the Guarantors as evidenced by their guarantees (the “Guarantees”) set forth hereon. The Guarantees are the direct and unconditional obligations of such Guarantors and rank and will rank equally in priority of payment and in all other respects with all other unsecured and unsubordinated obligations of such Guarantors now or hereafter outstanding.

 

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

 

The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of this Note or (ii) certain respective covenants and Events of Default with respect to this Note, in each case upon compliance with certain conditions set forth therein, which provisions apply to the Notes.

 

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 Guarantors and the rights of the Holders of the Notes of each series to be affected pursuant to the Indenture at any time by the Company, the Guarantors and the Trustee with the consent of the Holders of a majority in principal amount of such Notes at the time Outstanding (voting as a single class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and certain past defaults pursuant to the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note or Notes issued upon the registration of transfer hereof or in

 

7

 

exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the currency herein prescribed.

 

As provided in the Indenture and subject to certain limitations herein and therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in the Place of Payment, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar, duly executed by, the Holder hereof or its attorney-in-fact duly authorized in writing, and thereupon one or more new Notes 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.

 

The Notes of this series are issuable only in registered form without coupons in denominations equal to $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations herein and therein set forth, Notes of this series are exchangeable for the same aggregate principal amount of Notes of this series and of like tenor and authorized denominations, 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 Note for registration of transfer, the Company, the Guarantors, the Trustee and any agent of the Company, a Guarantor or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Guarantors, the Trustee nor any such agent shall be affected by notice to the contrary.

 

No recourse under or upon any obligation, covenant or agreement of the Company or any Guarantor in the Indenture or any indenture supplemental thereto or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or any Guarantor or of any successor thereto, either directly or through the Company or any Guarantor or any successor thereto, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance hereof and as part of the consideration for the issue hereof.

 

8

 

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

 

9

 

Schedule 1

 

SCHEDULE OF CHANGES IN OUTSTANDING PRINCIPAL AMOUNT

 

The following notations in respect of changes in the outstanding principal amount of this Note have been made:

 

	
Date
    	
 
    	
Initial Principal Amount
    	
 
    	
Change in Outstanding
   Principal Amount
    	
 
    	
New
   Balance
    	
 
    	
Notation Made
   by
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

10ex4-1.htm

                                                                     Exhibit 4.1

                          AMERICAN PARAMOUNT GOLD CORP.
                               (the "Corporation")

                       CODE OF ETHICS AND BUSINESS CONDUCT
         FOR DIRECTORS, SENIOR OFFICERS AND EMPLOYEES OF THE CORPORATION
                                  (the "Code")

This Code applies to the Chief  Executive  Officer,  President,  Chief Financial
Officer,  Principal Executive Officer,  Principal  Financial Officer,  Principal
Accounting   Officer,   Controller  and  persons  performing  similar  functions
(collectively,  the "Senior  Officers")  along with all  directors and employees
within the  Corporation  (the  Senior  Officers,  directors  and  employees  are
hereinafter  collectively  referred to as the  "Employees").  This Code covers a
wide range of business  practices and procedures.  It does not cover every issue
that may arise,  but it sets out basic  principles to guide all Employees of the
Corporation.  All Employees  should conduct  themselves  accordingly and seek to
avoid  the  appearance  of  improper  behaviour  in  any  way  relating  to  the
Corporation.

Any Employee who has any questions  about the Code should consult with the Chief
Executive  Officer,  the President,  the  Corporation's  board of directors (the
"Board") or the Corporation's audit committee (the "Audit Committee").

The Corporation has adopted the Code for the purpose of promoting:

     *    honest and ethical  conduct,  including the ethical handling of actual
          or apparent  conflicts of interest  between  personal and professional
          relationships;

     *    full,  fair,  accurate,  timely and  understandable  disclosure in all
          reports and documents that the Corporation  files with, or submits to,
          the  Securities  and Exchange  Commission  ("SEC") and in other public
          communications  made by the  Corporation  that are  within  the Senior
          Officer's area of responsibility;

     *    compliance with applicable governmental laws, rules and regulations;

     *    the prompt internal reporting of violations of the Code; and

     *    accountability for adherence to the Code.

HONEST AND ETHICAL CONDUCT

Each Senior  Officer and member of the Board owes a duty to the  Corporation  to
act with integrity.  Integrity  requires,  among other things,  being honest and
candid.  Employees  must adhere to a high  standard  of business  ethics and are
expected to make  decisions and take actions based on the best  interests of the
Corporation,  as a whole,  and not based on personal  relationships or benefits.
Generally, a "conflict of interest" occurs when an Employee's personal interests
is, or appears to be,  inconsistent  with,  interferes with or is opposed to the
best interests of the Corporation or gives the appearance of impropriety.
<PAGE>
Business  decisions  and  actions  must  be made in the  best  interests  of the
Corporation  and  should  not  be  influenced  by  personal   considerations  or
relationships.  Relationships with the Corporation's  stakeholders - for example
suppliers,  competitors  and  customers  -  should  not in  any  way  affect  an
Employee's  responsibility and  accountability to the Corporation.  Conflicts of
interest  can arise when an  Employee  or a member of his or her family  receive
improper gifts,  entertainment or benefits as a result of his or her position in
the Corporation.

Specifically, each Employee must:

     1.   act with  integrity,  including  being  honest and candid  while still
          maintaining  the  confidentiality  of  information  when  required  or
          consistent with the Corporation's policies;

     2.   avoid violations of the Code,  including actual or apparent  conflicts
          of  interest  with  the  Corporation  in  personal  and   professional
          relationships;

     3.   disclose to the Board or the Audit Committee any material  transaction
          or  relationship  that could  reasonably be expected to give rise to a
          breach of the Code, including actual or apparent conflicts of interest
          with the Corporation;

     4.   obtain  approval from the Board or Audit  Committee  before making any
          decisions  or taking any action that could  reasonably  be expected to
          involve a conflict  of  interest  or the  appearance  of a conflict of
          interest;

     5.   observe  both the form and spirit of laws and  governmental  rules and
          regulations, accounting standards and Corporation policies;

     6.   maintain  a  high  standard  of  accuracy  and   completeness  in  the
          Corporation's financial records;

     7.   ensure full, fair, timely,  accurate and understandable  disclosure in
          the Corporation's periodic reports;

     8.   report any violations of the Code to the Board or Audit Committee;

     9.   proactively  promote ethical  behaviour among peers in his or her work
          environment; and

     10.  maintain the skills  appropriate  and necessary for the performance of
          his or her duties.

DISCLOSURE OF CORPORATION INFORMATION

As a result of the Corporation's  status as a public company,  it is required to
file periodic and other reports with the SEC. The  Corporation  takes its public
disclosure  responsibility  seriously to ensure that these  reports  furnish the
marketplace  with full, fair,  accurate,  timely and  understandable  disclosure
regarding  the  financial  and  business  condition  of  the  Corporation.   All
disclosures  contained in reports and  documents  filed with or submitted to the

                                       2
<PAGE>
SEC, or other government agencies,  on behalf of the Corporation or contained in
other public communications made by the Corporation must be complete and correct
in all material respects and understandable to the intended recipient.

The Senior Officers,  in relation to his or her area of responsibility,  must be
committed  to  providing  timely,   consistent  and  accurate  information,   in
compliance  with all legal and regulatory  requirements.  It is imperative  that
this disclosure be accomplished  consistently during both good times and bad and
that all  parties  in the  marketplace  have  equal or  similar  access  to this
information.

All of the Corporation's books, records,  accounts and financial statements must
be maintained in reasonable detail, must appropriately reflect the Corporation's
transactions,  and must conform both to applicable legal requirements and to the
Corporation's  system of internal controls.  Unrecorded or "off the book" funds,
assets or liabilities  should not be maintained  unless  permitted by applicable
law  or  regulation.   Senior  Officers  involved  in  the  preparation  of  the
Corporation's  financial  statements must prepare those statements in accordance
with generally accepted accounting  principles,  consistently  applied,  and any
other applicable accounting standards and rules so that the financial statements
materially,   fairly  and  completely  reflect  the  business  transactions  and
financial  statements and related condition of the Corporation.  Further,  it is
important that financial  statements and related disclosures be free of material
errors.

Specifically, each Senior Officer must:

     1.   familiarize  himself  or  herself  with  the  disclosure  requirements
          generally applicable to the Corporation;

     2.   not knowingly  misrepresent,  or cause others to  misrepresent,  facts
          about  the   Corporation  to  others,   including  the   Corporation's
          independent   auditors,   governmental   regulators,   self-regulating
          organizations and other governmental officials;

     3.   to the  extent  that he or she  participates  in the  creation  of the
          Corporation's  books and records,  promote the accuracy,  fairness and
          timeliness of those records; and

     4.   in relation to his or her area of responsibility,  properly review and
          critically analyse proposed disclosure for accuracy and completeness.

CONFIDENTIAL INFORMATION

Employees  must  maintain  the   confidentiality  of  confidential   information
entrusted to them by the Corporation of its customers,  suppliers, joint venture
partners, or others with whom the Corporation is considering a business or other
transaction  except when  disclosure is  authorized  by an executive  officer or
required or mandated by laws or regulations.  Confidential  information includes
all  non-public  information  that might be useful or helpful to  competitors or
harmful to the Corporation or its customers or suppliers,  if disclosed. It also
includes information that suppliers,  customers and other parties have entrusted
to  the  Corporation.   The  obligation  to  preserve  confidential  information
continues even after employment ends.

                                       3
<PAGE>
Records  containing  personal data about employees or private  information about
customers  and  their  employees  are  confidential.  They  are to be  carefully
safeguarded,  kept current, relevant and accurate. They should be disclosed only
to authorized personnel or as required by law.

All inquiries  regarding the Corporation from  non-employees,  such as financial
analysts  and  journalists,  should  be  directed  to the  Board  or  the  Audit
Committee.  The  Corporation's  policy is to  cooperate  with  every  reasonable
request of  government  investigators  for  information.  At the same time,  the
Corporation is entitled to all the safeguards provided by law for the benefit of
persons  under   investigation   or  accused  of  wrongdoing,   including  legal
representation. If a representative of any government or government agency seeks
an  interview  or requests  access to data or  documents  for the purposes of an
investigation,  the Employee should refer the representative to the Board or the
Audit  Committee.  Employees  also  should  preserve  all  materials,  including
documents  and e-mails that might relate to any pending or  reasonably  possible
investigation.

COMPLIANCE WITH LAWS

The Employees must respect and obey all applicable foreign,  federal,  state and
local laws,  rules and regulations  applicable to the business and operations of
the Corporation.

Employees who have access to, or knowledge of,  material  nonpublic  information
from or about the Corporation  are prohibited from buying,  selling or otherwise
trading in the  Corporation's  stock or other securities.  "Material  nonpublic"
information  includes any  information,  positive or negative,  that has not yet
been made available or disclosed to the public and that might be of significance
to an investor, as part of the total mix of information,  in deciding whether to
buy or sell stock or other securities.

Employees  also  are  prohibited  from  giving  "tips"  on  material   nonpublic
information,  that is directly or indirectly  disclosing such information to any
other person,  including  family members,  other relatives and friends,  so that
they may trade in the Corporation's stock or other securities.

Furthermore,   if,  during  the  course  of  an  Employee's   service  with  the
Corporation,  he or she acquires  material  nonpublic  information about another
company,  such as one of our  customers  or  suppliers,  or you  learn  that the
Corporation  is planning a major  transaction  with another  company (such as an
acquisition),  the Employee is restricted  from trading in the securities of the
other company.

REPORTING  ACTUAL AND POTENTIAL  VIOLATIONS OF THE CODE AND  ACCOUNTABILITY  FOR
COMPLIANCE WITH THE CODE

The Corporation,  through the Board or the Audit  Committee,  is responsible for
applying this Code to specific  situations in which  questions may arise and has
the authority to interpret this Code in any particular  situation.  This Code is
not  intended  to  provide a  comprehensive  guideline  for Senior  Officers  in
relation to their business  activities  with the  Corporation.  Any Employee may
seek  clarification  on the application of this Code from the Board or the Audit
Committee.

                                       4
<PAGE>
Each Employee must:

     1.   notify the Corporation of any existing or potential  violation of this
          Code, and failure to do so is itself a breach of the Code; and

     2.   not retaliate,  directly or indirectly,  or encourage others to do so,
          against  any  Employee  for  reports,  made  in  good  faith,  of  any
          misconduct  or  violations  of the Code solely  because that  Employee
          raised a legitimate ethical issue.

The Board or the Audit  Committee will take all action it considers  appropriate
to investigate any breach of the Code reported to it. All Employees are required
to  cooperate  fully with any such  investigations  and to provide  truthful and
accurate  information.  If the Board or the Audit  Committee  determines  that a
breach has  occurred,  it will take or authorize  disciplinary  or  preventative
action  as it deems  appropriate,  after  consultation  with  the  Corporation's
counsel if  warranted,  up to and including  termination  of  employment.  Where
appropriate,  the Corporation  will not limit itself to disciplinary  action but
may pursue legal action against the offending Employee involved.  In some cases,
the Corporation may have a legal or ethical obligation to call violations to the
attention of appropriate enforcement authorities.

Compliance  with the Code may be  monitored  by audits  performed  by the Board,
Audit Committee,  the Corporation's  counsel and/or by the Corporation's outside
auditors. All Employees are required to cooperate fully with any such audits and
to provide truthful and accurate information.

Any  waiver of this Code for any  Employee  may be made only by the Board or the
Audit Committee and will be promptly  disclosed to stockholders  and others,  as
required by applicable law. The Corporation must disclose changes to and waivers
of the Code in accordance with applicable law.

                                       5

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