Document:

EX-4.2

 Exhibit 4.2 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM
(“EUROCLEAR”), AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”) , TO UNITED PARCEL SERVICE, INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY
PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL, INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 
 THIS SECURITY IS
A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND
DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES. 

 UNITED PARCEL SERVICE, INC. 

 

			
	No. 1	  	€700,000,000

 CUSIP: 911312 AV8 
 ISIN:
XS1323463726 
 Common Code No.: 132346372 

1.625% Senior Notes due 2025 

United Parcel Service, Inc., a corporation duly organized and existing under the laws of Delaware (herein called the
“Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, as nominee of The Bank of New York Mellon
(London Branch) as common depositary for Euroclear Bank, S.A./N.V. (“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream”), or registered assigns, the principal sum of SEVEN HUNDRED MILLION
EUROS (€700,000,000), or such other principal amount as may be set forth in the records of the Securities Registrar hereinafter referred to in accordance with the Indenture, on November 15, 2025 and to pay interest thereon from
November 20, 2015, or from the most recent date to which interest has been paid or duly provided for, annually on November 15 of each year (each an “Interest Payment Date”), commencing November 15, 2016 at the rate of
1.625% per annum, until the principal hereof is paid or made available for payment.  
 Interest payable on this Security on any
Interest Payment Date, redemption date or maturity date shall be the amount of interest accrued from, and including, the next preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or from and including the
original issue date of this Security, if no interest has been paid or duly provided for) to, but excluding, such Interest Payment Date, redemption date or maturity date, as the case may be. This payment convention is referred to as ACTUAL/ACTUAL
(ICMA) as defined in the rulebook of the International Capital Markets Association. If any Interest Payment Date falls on a day that is not a Business Day, the interest payment will be made on the next succeeding day that is a Business Day, but no
additional interest will accrue as a result of the delay in payment. If the maturity date or any redemption date of this Security falls on a day that is not a Business Day, the related payment of principal, premium, if any, and interest will be made
on the next succeeding Business Day as if it were made on the date such payment was due, and no interest will accrue on the amounts so payable for the period from and after such date to the next succeeding Business Day. The rights of Holders of
beneficial interests of Security to receive the payments of interest on such Security are subject to the applicable procedures of Euroclear and Clearstream. 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the close of business on the 15th calendar day (whether or not a
Business Day) immediately preceding the related Interest Payment Date or, if the Securities are represented by one or more global notes, the close of business on the business day (for this purpose a day on which Clearstream and Euroclear are open
for business) immediately preceding 

 
the related Interest Payment Date; provided, however, that interest payable on the maturity date or any redemption date shall be payable to the Person to whom the principal of this Security shall
be payable. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be set by the Trustee, notice whereof shall be given to Holders of Securities 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 Securities of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. 
 A “Business Day” shall mean any day, other than a Saturday or Sunday,
(i) which is not a day on which banking institutions in the City of New York or London are authorized or required by law or executive order to close and (ii) on which the Trans-European Automated Real-time Gross Settlement Express Transfer
system, or the TARGET2 system, or any successor thereto, operates. 
 The “Place of Payment” with respect to this Security shall
be London, England. 
 Delivery of the Maturity Consideration and payment of interest on this Security will be made at the office or agency
of the Company maintained for that purpose in London, England, which shall initially be One Canada Square, London E14 5AL; provided, however, that at the option of the Company, payment of interest may be made by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register; provided further, that all payments of Maturity Consideration and interest with respect to the Securities of this series represented by one or more Global Securities
deposited with, or on behalf of, a common depositary, and registered in the name of the nominee of the common depositary for the accounts of Clearstream and Euroclear shall be made through the facilities of the common depositary. 

All payments of Maturity Consideration and interest will be made in euros. If the euro is unavailable to the Company due to the imposition of
exchange controls or other circumstances beyond its control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public
institutions of or within the international banking community, then all payments in respect of this Security will be made in U.S. dollars until the euro is again available to the Company or so used. The amount payable on any date in euros will be
converted into U.S. dollars on the basis of the most recently available “Market Exchange Rate” for the euro, which shall mean the noon buying rate in The City of New York for cable transfers of euros as certified for customs purposes (or,
if not so certified, as otherwise determined) by the United States Federal Reserve Board. The Market Exchange Rate most recently available on, or prior to, the second Business Day before the relevant determination date will be the basis for
determining the equivalent of euro in the currency of the United States of America for any purpose under the Indenture, including for purposes of the definition of “Outstanding” in Section 1.01 of the Indenture. Any payments in
respect of the Securities so made in U.S. dollars will not constitute an event of default under the terms of this Security or the Indenture. 

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

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

Dated: November 20, 2015 
  

			
	UNITED PARCEL SERVICE, INC.
	
	 /s/ Richard N. Peretz

	Name:	 	Richard N. Peretz
	Title:	 	Senior Vice President, Chief Financial Officer and Treasurer

  

			
	Attest:	 	
	
	 /s/ Joseph B. Amsbary, Jr.

	Name:	 	Joseph B. Amsbary, Jr.
	Title:	 	Assistant Secretary

 REVERSE OF SECURITY 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of August 26, 2003 (as supplemented, herein called the “Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of
New York Mellon Trust Company, N.A. (as successor to Citibank, N.A.), as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security
is one of the series designated on the face hereof. 
 Optional Redemption 

The Securities are redeemable at any time prior to August 15, 2025 as a whole or in part, at the Company’s option, on at least 30
days’, but not more than 60 days’, prior notice mailed (or otherwise transmitted in accordance with the applicable procedures of Euroclear or Clearstream) to the registered address of each Holder of the Securities to be redeemed, at a
redemption price equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; and (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of principal and interest on the
Securities to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate
(as defined below) plus 20 basis points; together with, in each case, accrued and unpaid interest, if any, on the principal amount of the Securities to be redeemed to, but excluding, the Redemption Date. 

The Securities are redeemable at any time on or after August 15, 2025 as a whole or in part, at the Company’s option, on at least 30
days’, but not more than 60 days’, prior notice mailed (or otherwise transmitted in accordance with the applicable procedures of Euroclear or Clearstream) to the registered address of each holder of the Securities to be redeemed, at a
redemption price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, on the principal amount of the Securities to be redeemed to, but excluding, the Redemption Date. 

“Comparable Government Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, with
0.0005 being rounded upwards), on the third Business Day prior to the date fixed for redemption, of the Comparable Government Bond (as defined below) on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m.
(London time) on such Business Day as determined by an independent investment bank selected by the Company. 

 “Comparable Government Bond” means, in relation to any Comparable Government Bond Rate
calculation, at the discretion of an independent investment bank selected by the Company, a German government bond whose maturity is closest to the maturity of the Securities to be redeemed, or if such independent investment bank in its discretion
determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company, determine to
be appropriate for determining the Comparable Government Bond Rate. 
 “Remaining Scheduled Payments” means, with respect to each
Security to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that, if such redemption date is not an Interest
Payment Date with respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced (solely for the purposes of this calculation) by the amount of interest accrued thereon to such redemption
date. 
 In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. In the event of redemption of this Security in part only, Section 11.03 of the Indenture shall apply, provided that if this Security is
represented by one or more Global Securities, beneficial interests in this Security shall be selected for redemption by Euroclear and Clearstream in accordance with their respective standard procedures therefor, provided further, however, that no
Securities of this series of a principal amount of €100,000 or less shall be redeemed in part. 
 Unless the Company defaults on the
payment of the redemption price, on and after the redemption date, interest will cease to accrue on the principal amount of this Security to be redeemed. 

Payment of Additional Amounts 
 Subject to
the exceptions and limitations set forth below, the Company will pay to or on account of a beneficial owner of Securities who is not a United States person for U.S. federal income tax purposes such additional amounts as may be necessary to ensure
that every net payment by the Company of the principal of and interest on such Securities, after deduction or withholding for or on account of any present or future tax, assessment or other governmental charge imposed upon or as a result of such
payment, by the United States or any political subdivision or taxing authority of the United States, will not be less than the amount that would have been payable had no such deduction or withholding been required. However, the Company will not pay
additional amounts for or on account of: 
  

	 	(a)	any such tax, assessment or other governmental charge which would not have been so imposed but for (i) the existence of any present or former connection between the holder or beneficial owner of a Security (or
between a fiduciary, settlor, beneficiary, member or shareholder of such person, if such person is an estate, a trust, a partnership or a corporation) and the United States, including, without limitation, such person (or such fiduciary, settlor,
beneficiary, member or shareholder) being or having been a citizen or resident thereof or being or having been engaged in a trade or business or present therein or having, or having had, a permanent establishment therein or (ii) the
presentation, where required, by the Holder of any such Securities for payment on a date more than 15 calendar days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever
occurs later; 

	 	(b)	any estate, inheritance, gift, sales, transfer or personal property tax or any similar tax, assessment or governmental charge; 

  

	 	(c)	any tax, assessment or other governmental charge imposed by reason of the Holder or beneficial owner’s past or present status as a personal holding company or foreign personal holding company or controlled foreign
corporation or passive foreign investment company for U.S. federal income tax purposes or as a corporation which accumulates earnings to avoid United States federal income tax or as a private foundation or other tax-exempt organization;

  

	 	(d)	any tax, assessment or other governmental charge which is payable otherwise than by withholding from payments on or in respect of any Security; 

 

	 	(e)	any tax, assessment or other governmental charge which would not have been imposed but for the failure to comply with certification, information or other reporting requirements concerning the nationality, residence or
identity of the holder or beneficial owner of such Security, if such compliance is required by statute or by regulation of the United States or of any political subdivision or taxing authority thereof or therein as a precondition to relief or
exemption from such tax, assessment or other governmental charge; 

  

	 	(f)	any tax, assessment or other governmental charge that would not have been imposed but for a failure by the holder or beneficial owner (or any financial institution through which the holder or beneficial owner holds any
Security or through which payment on the Security is made) to comply with any certification, information, identification, documentation or other reporting requirements (including entering into and complying with an agreement with the Internal
Revenue Service) imposed pursuant to, or complying with any requirements imposed under an intergovernmental agreement entered into between the United States and the government of another country in order to implement the requirements of, Sections
1471 through 1474 of the Internal Revenue Code as in effect on the date of issuance of the Securities or any successor or amended version of these provisions, to the extent such successor or amended version is not materially more onerous to comply
with than these provisions as enacted on such date; 

  

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

  

	 	(h)	any tax, assessment or other governmental charge required to be deducted or withheld by any Paying Agent from a payment on a Security upon presentation of such Security, where required, if such payment can be made
without such deduction or withholding upon presentation of such Security, where required, to any other Paying Agent; or 

 any combination of two or more of items (a), (b), (c), (d), (e), (f), (g) and (h), 

nor shall additional amounts be paid with respect to any payment on Securities to a United States Alien Holder who is a fiduciary or
partnership or other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the United States (or any political subdivision thereof) to be included in the income, for tax purposes, of a beneficiary
or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to the additional amounts had such beneficiary, settlor, member or beneficial owner been the holder of the Securities.

 The term “United States Alien Holder” means any beneficial owner of a Security that is not, for United States federal income
tax purposes, (i) a citizen or resident of the United States, (ii) a corporation, partnership or other entity created or organized in or under the laws of the United States or any political subdivision thereof, (iii) an estate whose
income is subject to United States federal income tax regardless of its source, or (iv) a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States
persons have the authority to control all substantial decisions of the trust or if such trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person. Except as specifically provided under
this heading “—Payment of Additional Amounts,” the Company will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in
any government or political subdivision. 
 To the extent permitted by law, the Company will maintain a paying agent in a Member State of
the European Union (if any) that will not require withholding or deduction of tax pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any law implementing or complying with, or introduced to conform to, such
European Council Directive. 
 Redemption for Tax Reasons 

If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States or
of any political subdivision or any taxing authority thereof or therein affecting taxation, or any change in, or amendment to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or
amendment is announced and becomes effective on or after November 20, 2015, the Company becomes or will become obligated to pay additional amounts as described above under the heading “Payment of Additional Amounts” with respect to
the Securities of this series, then the Company may at any time at the Company’s option redeem, in whole, but not in part, the Securities of this series on not less than 30 nor more than 60 days’ prior notice, at a redemption price equal
to 100% of their principal amount, together with any accrued and unpaid interest and additional amounts on the Securities of this series to, but not including, the redemption date. If the Company exercises its option to redeem the Securities of this
series pursuant to this paragraph, it shall deliver to the Trustee an Officer’s Certificate stating that it is entitled to redeem the Securities of this series and an opinion of independent tax counsel to the effect that the circumstances
described in this paragraph exist. 

 Unless the Company defaults on the payment of the redemption price, on and after the redemption
date, interest will cease to accrue on the principal amount of this Security to be redeemed. 
 Additional Covenants 

The Company will not create, assume, incur or guarantee, and will not permit any Restricted Subsidiary to create, assume, incur or guarantee,
any Secured Indebtedness without making provision whereby this Security shall be secured equally and ratably with, or prior to, such Secured Indebtedness, together with, if the Company shall so determine, any other Indebtedness of the Company or any
Restricted Subsidiary then existing or thereafter created that is not subordinate to this Security, so long as the Secured Indebtedness shall be outstanding, unless such Secured Indebtedness, when added to (a) the aggregate amount of all
Secured Indebtedness then outstanding (not including in this computation Secured Indebtedness if this Security is secured equally and ratably with (or prior to) such Secured Indebtedness and further not including in this computation any Secured
Indebtedness that is concurrently being retired) and (b) the aggregate amount of all Attributable Debt then outstanding pursuant to Sale and Leaseback Transactions entered into by the Company after January 26, 1999, or entered into by a
Restricted Subsidiary after January 26, 1999 or, if later, the date on which it became a Restricted Subsidiary (not including in this computation any Attributable Debt that is concurrently being retired), would not exceed 10% of Consolidated
Net Tangible Assets. 
 The Company will not, and will not permit any Restricted Subsidiary to, enter into any Sale and Leaseback
Transaction unless (a) the sum of (i) the Attributable Debt to be outstanding pursuant to such Sale and Leaseback Transaction, (ii) all Attributable Debt then outstanding pursuant to all other Sale and Leaseback Transactions entered
into by the Company after January 26, 1999, or entered into by a Restricted Subsidiary after January 26, 1999 or, if later, the date on which it became a Restricted Subsidiary, and (iii) the aggregate of all Secured Indebtedness then
outstanding (not including in this computation Secured Indebtedness if this Security is secured equally and ratably with (or prior to) such Secured Indebtedness) would not exceed 10% of Consolidated Net Tangible Assets, or (b) an amount equal
to the greater of (i) the net proceeds to the Company or the Restricted Subsidiary of the sale of the Principal Property sold and leased back pursuant to such Sale and Leaseback Transaction and (ii) the amount of Attributable Debt to be
outstanding pursuant to such Sale and Leaseback Transaction is applied to the retirement of Funded Debt of the Company or any Restricted Subsidiaries (other than Funded Debt that is subordinate to this Security or is owing to the Company or any
Restricted Subsidiaries or is scheduled to mature within one year after consummation of such Sale and Leaseback Transaction) within 180 days after the consummation of such Sale and Leaseback Transaction. 

Default in the performance, or breach, of either of the covenants set forth in the preceding two paragraphs will be an “Event of
Default” under Section 5.01 of the Indenture, and the covenants set forth in the preceding two paragraphs will be subject to defeasance in accordance with Section 13.03 of the Indenture. 

 “Attributable Debt” means, as of the date of its determination, the present value
(discounted semiannually at an interest rate of 7.0% per annum) of the obligation of a lessee for rental payments pursuant to any Sale and Leaseback Transaction (reduced by the amount of the rental obligations of any sublessee of all or part of
the same property) during the remaining term of such Sale and Leaseback Transaction (including any period for which the lease relating thereto has been extended), such rental payments not to include amounts payable by the lessee for maintenance and
repairs, insurance, taxes, assessments and similar charges and for contingent rents (such as those based on sales). In the case of any Sale and Leaseback Transaction in which the lease is terminable by the lessee upon the payment of a penalty, such
rental payments shall be considered for purposes of this definition to be the lesser of the discounted values of (a) the rental payments to be paid under such Sale and Leaseback Transaction until the first date (after the date of such
determination) upon which it may be so terminated plus the then applicable penalty upon such termination, and (b) the rental payments required to be paid during the remaining term of such Sale and Leaseback Transaction (assuming such
termination provision is not exercised). 
 “Capitalized Lease Obligation” means any obligation to pay rent or other amounts under
a lease of (or other agreement conveying the right to use) real or personal property that is required to be classified and accounted for as a capital lease obligation under generally accepted accounting principles, and, for the purposes of this
Security, the amount of such obligation at any date shall be the capitalized amount thereof at such date, determined in accordance with such principles. 

“Consolidated Net Tangible Assets” means at any date, the total assets appearing on the Company’s most recently prepared
consolidated balance sheet as of the end of the Company’s fiscal quarter, prepared in accordance with generally accepted accounting principles, less (a) all current liabilities as shown on such balance sheet and (b) Intangible Assets.

 “Funded Debt” means any indebtedness maturing by its terms more than one year from its date of issue, including any
indebtedness renewable or extendable at the option of the obligor to a date later than one year from the date of the original issuance thereof. 

“Indebtedness” means (a) any liability of any Person (i) for borrowed money, or under any reimbursement obligation
relating to a letter of credit, (ii) evidenced by a bond, note, debenture or similar instrument, including a purchase money obligation, given in connection with the acquisition of any businesses, properties or assets of any kind or with
services incurred in connection with capital expenditures, other than a trade payable or a current liability arising in the ordinary course of business, or (iii) for the payment of money relating to a Capitalized Lease Obligation, or
(iv) for Interest Rate Protection Obligations; (b) any liability of others described in the preceding clause (a) that the Person has guaranteed or that is otherwise its legal liability; and (c) any amendment, supplement,
modification, deferral, renewal, extension or refunding of any liability of the types referred to in clauses (a) and (b) above. 

“Intangible Assets” means at any date the value (net of any applicable reserves), as shown on or reflected in the Company’s
most recently prepared consolidated balance sheet, prepared in accordance with generally accepted accounting principles, of: (a) all trade names, trademarks, licenses, patents, copyrights and goodwill; (b) organizational and development
costs; (c) deferred charges (other than prepaid items such as insurance, taxes, interest, commissions, rents and similar items and tangible assets being amortized); and (d) unamortized debt discount and expense, less unamortized premium. 

 “Interest Rate Protection Obligations” of any Person means the obligations of such
Person pursuant to any arrangement with any other Person whereby, directly or indirectly, such Person is entitled to receive from time to time periodic payments calculated by applying a fixed rate of interest on a stated notional amount in exchange
for periodic payments made by such Person calculated by applying a floating rate of interest on the same notional amount. 

“Liens” means any mortgage, lien, pledge, security interest, charge or encumbrance. 

“Principal Property” means any land, land improvements, buildings and associated factory, distribution, laboratory and office
equipment (excluding any motor vehicles, aircraft, mobile materials handling equipment, data processing equipment and rolling stock) constituting a distribution facility, operating facility, manufacturing facility, development facility, warehouse
facility, service facility or office facility (including any portion thereof), which facility (a) is owned by or leased to the Company or any Restricted Subsidiary, (b) is located within the United States and (c) has an acquisition
cost plus capitalized improvements in excess of 0.50% of Consolidated Net Tangible Assets as of the date of such determination, other than (i) any such facility, or portion thereof, which has been financed by obligations issued by or on behalf
of a State, a Territory or a possession of the United States, or any political subdivision of any of the foregoing, or the District of Columbia, the interest on which is excludable from gross income of the holders thereof (other than a
“substantial user” of such facility or a “related Person” as those terms are used in Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”)) pursuant to the provisions of Section 103 of the
Code (or any similar provision hereafter enacted) as in effect at the time of issuance of such obligations, (ii) any such facility that the Board of Directors may by Board Resolution declare is not of material importance to the Company and the
Restricted Subsidiaries taken as a whole and (iii) any such facility, or portion thereof, owned or leased jointly or in common with one or more Persons other than the Company and any Subsidiary and in which the interest of the Company and all
Subsidiaries does not exceed 50%. 
 “Restricted Securities” means any shares of the capital stock or Indebtedness of any
Restricted Subsidiary. 
 “Restricted Subsidiary” means (a) any Subsidiary (i) which has substantially all its property
within the United States of America, (ii) which owns or is a lessee of any Principal Property and (iii) in which the investment of the Company and all other Subsidiaries exceeds 0.50% of Consolidated Net Tangible Assets as of the date of
such determination; provided, however, that the term “Restricted Subsidiary” shall not include: (A) any Subsidiary (x) primarily engaged in the business of purchasing, holding, collecting, servicing or otherwise dealing in and
with installment sales contracts, leases, trust receipts, mortgages, commercial paper or other financing instruments, and any collateral or agreements relating thereto, including in the business, individually or through partnerships, of financing,
whether through long- or short-term borrowings, pledges, discounts or otherwise, the sales, leasing or other operations of the Company and the Subsidiaries or any of them, or (y) engaged in the business of financing the assets and operations of
third parties, and (z) in any case, not, except as incidental to such 

 
financing business, engaged in owning, leasing or operating any property which, but for this proviso, would qualify as Principal Property or (B) any Subsidiary acquired or organized after
January 26, 1999, for the purpose of acquiring the stock or business or assets of any Person other than the Company or any Restricted Subsidiary, whether by merger, consolidation, acquisition of stock or assets or similar transaction analogous
in purpose or effect, so long as such Subsidiary does not acquire by merger, consolidation, acquisition of stock or assets or similar transaction analogous in purpose or effect all or any substantial part of the business or assets of the Company or
any Restricted Subsidiary; and (b) any other Subsidiary that is hereafter designated by the Board of Directors as a Restricted Subsidiary. 

“Sale and Leaseback Transaction” means any arrangement with any Person providing for the leasing by the Company or any Restricted
Subsidiary of any Principal Property (whether such Principal Property is now owned or hereafter acquired) that has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person, other than (a) leases for a
term, including renewals at the option of the lessee, of not more than three years; (b) leases between the Company and a Restricted Subsidiary or between Restricted Subsidiaries and (c) leases of Principal Property executed by the time of,
or within 180 days after the latest of, the acquisition, the completion of construction or improvement (including any improvements on property that will result in such property becoming a Principal Property), or the commencement of commercial
operation of such Principal Property. 
 “Secured Indebtedness” means (a) Indebtedness of the Company or a Restricted
Subsidiary that is secured by any Lien upon any Principal Property or Restricted Securities, and (b) Indebtedness of the Company or a Restricted Subsidiary in respect of any conditional sale or other title retention agreement covering Principal
Property or Restricted Securities; but “Secured Indebtedness” shall not include any of the following: 
 (a)
Indebtedness of the Company and the Restricted Subsidiaries outstanding on January 26, 1999, secured by then existing Liens upon, or incurred in connection with conditional sales agreements or other title retention agreements with respect to
Principal Property or Restricted Securities; 
 (b) Indebtedness that is secured by (i) purchase money Liens upon
Principal Property acquired after January 26, 1999, (ii) Liens placed on Principal Property after January 26, 1999, during construction or improvement thereof (including any improvements on property which will result in such property
becoming Principal Property) or placed thereon within 180 days after the later of acquisition, completion of construction or improvement or the commencement of commercial operation of such Principal Property or improvement, or placed on Restricted
Securities acquired after January 26, 1999 or (iii) conditional sale agreements or other title retention agreements with respect to any Principal Property or Restricted Securities acquired after January 26, 1999, if (in each case
referred to in this subparagraph (b)) (x) such Lien or agreement secures all or any part of the Indebtedness incurred for the purpose of financing all or any part of the purchase price or cost of construction of such Principal Property or
improvement or Restricted Securities and (y) such Lien or agreement does not extend to any Principal Property or Restricted Securities other than the Principal Property so acquired or the Principal Property, or portion thereof, on which the
property so 

 
constructed or such improvement is located; provided, however, that the amount by which the aggregate principal amount of Indebtedness secured by any such Lien or agreement exceeds the cost to
the Company or such Restricted Subsidiary of the related acquisition, construction or improvement will be considered to be “Secured Indebtedness;” 

(c) Indebtedness that is secured by Liens on Principal Property or Restricted Securities, which Liens exist at the time of
acquisition (by any manner whatsoever) of such Principal Property or Restricted Securities by the Company or a Restricted Subsidiary; 

(d) Indebtedness of Restricted Subsidiaries owing to the Company or any other Restricted Subsidiary and Indebtedness of the
Company owing to any Restricted Subsidiary; 
 (e) In the case of any corporation that becomes (by any manner whatsoever) a
Restricted Subsidiary after January 26, 1999, Indebtedness that is secured by Liens upon, or conditional sale agreements or other title retention agreements with respect to, its property that constitutes Principal Property or Restricted
Securities, which Liens exist at the time such corporation becomes a Restricted Subsidiary; 
 (f) Guarantees by the Company
of Secured Indebtedness and Attributable Debt of any Restricted Subsidiaries and guarantees by a Restricted Subsidiary of Secured Indebtedness and Attributable Debt of the Company and any other Restricted Subsidiaries; 

(g) Indebtedness arising from any Sale and Leaseback Transaction; 

(h) Indebtedness secured by Liens on property of the Company or a Restricted Subsidiary in favor of the United States of
America, any State, Territory or possession thereof, or the District of Columbia, or any department, agency or instrumentality or political subdivision of the United States of America or any State, Territory or possession thereof, or the District of
Columbia, or in favor of any other country or any political subdivision thereof, if such Indebtedness was incurred for the purpose of financing all or any part of the purchase price or the cost of construction of the property subject to such Lien;
provided, however, that the amount by which the aggregate principal amount of Indebtedness secured by any Lien exceeds the cost to the Company or the Restricted Subsidiary of the related acquisition or construction will be considered to be
“Secured Indebtedness”; 
 (i) Indebtedness secured by Liens on aircraft, airframes or aircraft engines, aeronautic
equipment or computers and electronic data processing equipment; and 
 (j) The replacement, extension or renewal, or
successive replacements, extensions or renewals, of any Indebtedness, in whole or in part, excluded from the definition of “Secured Indebtedness” by subparagraphs (a) through (i) above; provided, however, that no Lien securing,
or conditional sale or title retention agreement with respect to, such Indebtedness will extend to or cover any Principal Property or any Restricted Securities, 

 
other than such property that secured the Indebtedness so replaced, extended or renewed, plus improvements on or to any such Principal Property, provided further, however, that to the extent that
such replacement, extension or renewal increases the principal amount of Indebtedness secured by such Lien or is in a principal amount in excess of the principal amount of Indebtedness excluded from the definition of “Secured Indebtedness”
by subparagraphs (a) through (i) above, the amount of such increase or excess will be considered to be “Secured Indebtedness.” 

In no event shall the foregoing provisions be interpreted to mean that the same Indebtedness is included more than once in the calculation of
“Secured Indebtedness” as that term is used in this Security, nor shall their operation cause this result. 
 The Indenture
contains provisions whereby (i) the Company may be discharged from its obligations with respect to the Securities (subject to certain exceptions) or (ii) the Company may be released from its obligation under specified covenants and
agreements in the Indenture, in each case if the Company satisfies certain conditions, all as more fully provided in the Indenture. For purposes of such provisions, German government securities shall be used instead of United States government
securities in respect of payments due in euros on the Securities of this series. 
 If an Event of Default with respect to the Securities of
this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series issued under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the
right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made a written request to the Trustee to institute proceedings in respect
of such Event of Default as Trustee and offered the Trustee indemnity satisfactory to the trustee, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute any such proceeding for 60 days 

 
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment or delivery of
the Maturity Consideration hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference
herein to the Indenture and no provision of this Security or of the Indenture shall affect or impair the obligation of the Company, which is absolute and unconditional, to pay the Maturity Consideration and interest on this Security at the times,
place and rate, and in the manner, herein prescribed. 
 As provided in the Indenture and subject to certain limitations set forth therein
and in this Security, the transfer of this Security is registrable in the Security Register upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the Maturity Consideration and
interest on this Security are payable, 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 his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any
such registration of transfer or exchange, but the Company and the Security Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

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

Except in the limited circumstances described in Section 3.05 of the Indenture, this Security shall be issued in the form of one or more
Global Securities and a common depositary for the accounts of Euroclear and Clearstream shall be the Depositary for such Global Security or Securities. Clause 2(A)(ii) of the eighth paragraph of Section 3.05 of the Indenture shall be
inapplicable to this Security. 
 The Securities of this series are issuable only in registered form without coupons in minimum
denominations of €100,000 and any integral multiples of €1,000 in excess thereof. As provided in the Indenture and subject to certain limitations set forth therein, Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

Notices to Holders of the Securities of this series will be sent by mail or email to the registered Holders, or otherwise in accordance with
the procedures of the applicable depositary. 
 This Security shall be governed by and construed in accordance with the laws of the State of
New York without giving effect to principles of conflicts of laws or such state. 

 All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture. 

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

 

			
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
	As Trustee
		
	By:	 	 /s/ Richard Tarnas

		 	Authorized Signatory

 [FORM OF TRANSFER NOTICE] 

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

Insert Taxpayer Identification No. 

(Please print or typewrite name and address including zip code of assignee) 

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

 

	
	  
 By:

	Date:

 SCHEDULE OF INCREASES OR DECREASES IN SECURITY 

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

 

									
	 Date of

Exchange
	  	Amount of decrease in
Principal Amount of this
Security	  	Amount of increase in
Principal Amount of this
Security	  	Principal Amount of this
Security following such
decrease or increase	  	Signature of authorized
officer of Trustee or
Securities Custodian

 OPTION TO ELECT REPAYMENT 

If you elect to have this Security purchased by the Company pursuant to the terms of the Security, check the box: 

 
  ̈ 

If you want to elect to have only part of this Security purchased by the Company pursuant to the terms of the Security, state the amount in
principal amount (must be in denominations of €1,000 or an integral multiple of €1,000 in excess thereof):
€                                        
         and specify the denomination or denominations (which shall not be less than the minimum authorized denomination) of the Securities to be issued to the Holder for the portion of the Security not
being repurchased (in the absence of any such specification, one such Security will be issued for the portion not being repurchased):
                                        .

  

					
	Date:                     	  	Your Signature	  	  

		  		  	(Sign exactly as your name appears on the other side of the Security)

  

			
	Signature Guarantee:	  	  

		  	(Signature must be guaranteed)

 The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations
and credit unions with membership in an approved signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.EX-4.3

 Exhibit 4.3 

Dated: November 20, 2015 

United Parcel Service, Inc. 

as Issuer 
 and 

The Bank of New York Mellon, London Branch 

as London Paying and Calculation Agent 

PAYING AND CALCULATION AGENCY AGREEMENT 

 THIS AGREEMENT is made as of November 20, 2015 between United Parcel
Service, Inc., a corporation organized under the laws of the State of Delaware (the “Issuer”), and The Bank of New York Mellon (London Branch) (sometimes refered to herein as “BNYM”), as London Paying and
Calculation Agent (the “Paying and Calculation Agent”), located at One Canada Square, London E14 5AL. 

WHEREAS, the Issuer proposes to issue (i) Euro denominated Floating Rate Senior Notes due 2020 in the form attached
hereto as Annex A (the “Floating Rate Notes”) in the aggregate principal amount of €500,000,000 and (ii) Euro denominated 1.625% Senior Notes due 2025 in the form attached hereto as Annex B (the “Fixed Rate
Notes”) in the aggregate principal amount of €700,000,000 (together with the Floating Rate Notes, the “Notes”) on the date hereof, pursuant to the Indenture, dated as of August 26, 2003 (the
“Indenture”), as supplemented from time to time, between the Issuer and The Bank of New York Mellon Trust Company, N.A. (as successor to Citibank, N.A.), a national banking association, as Trustee (the “Trustee”);

 WHEREAS, solely with respect to the Notes, the Issuer wishes to appoint the Paying and Calculation Agent, as set forth
above, upon the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, in consideration of the mutual
promises contained herein, the parties hereto agree as follows: 
  

	1	 Definitions 

  

	1.1	 All capitalized terms used herein, but not defined, shall have the meanings given to them in the Indenture. 

 

	1.2	 In addition, the following terms shall have the following meanings: 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a
day on which (i) banking institutions in The City of New York or London are authorized or required by law or executive order to close and (ii) the Trans-European Automated Real-time Gross Settlement Express Transfer system, or the TARGET2
system, or any successor thereto, operates.  
 “Clearstream” means Clearstream
Banking, société anonyme, Luxembourg (or any successor securities clearing agency). 

“Euroclear” means Euroclear Bank S.A./N.V. (or any successor securities clearing agency), as
operator of the Euroclear system. 
 “Holder(s)” means the person(s) in whose name(s) the
Note(s) are registered in the Security Register. 

  
 1 

 References to the records of Euroclear and Clearstream shall be
to the records that each of Euroclear and Clearstream holds for its customers which reflect the amount of such customers’ interests in the Notes. 
  

	2	 Appointment of Paying and Calculation Agent 

The Issuer hereby appoints The Bank of New York Mellon (London Branch) at its office specified above as the
paying agent solely in respect of each series of Notes, and calculation agent solely in respect of the Floating Rate Notes, upon the terms and conditions herein contained, and The Bank of New York Mellon (London Branch) accepts such appointment. In
the event of any inconsistency between the Indenture and this Agreement with respect to the Paying and Calculation Agent, the terms of this Agreement shall prevail. 
  

	3	 Payment 

  

	3.1	 In order to provide for all payments due on each series of Notes as the same shall become due, the Issuer shall cause to be paid to the
Paying and Calculation Agent, no later than 4:00 p.m. London time one Business Day prior to the due date for the payment of such series of Notes, at such bank as the Paying and Calculation Agent shall previously have notified to the Issuer,
immediately available funds sufficient to meet all payments due on such Notes on such due date. 

  

	3.2	 The Issuer hereby authorizes and directs the Paying and Calculation Agent, from the amounts paid to it pursuant to this Section 3, to
make or cause to be made all payments on each respective series of Notes in accordance with the terms thereof and the terms of the Indenture. Such payments shall be made to the Holder or Holders of each respective series of Notes in accordance with
the terms of such series of Notes and the Indenture, the provisions contained in this Agreement, and the procedures of Euroclear and Clearstream. All interest payments in respect of each respective series of Notes will be made by the Paying and
Calculation Agent on the relevant interest payment dates (as set forth in the relevant Notes) to the Holders in whose names such series of Notes are registered at the close of business (New York) on the record date specified in such series of Notes
next preceding the interest payment date or such other date as is provided in the Notes. So long as a series of Notes are represented by a single global certificate and registered in the name of Euroclear and Clearstream or its nominee, all interest
payments on such Notes shall be made by the Paying and Calculation Agent by wire transfer of immediately available funds in Euros to Euroclear and Clearstream. 

 

	3.3	 The Paying and Calculation Agent will pay the principal amount of each Note on the applicable maturity date or upon any redemption date with
respect thereto, together with accrued and unpaid interest due at maturity or such redemption date, if any, upon presentation and surrender of such Note on or after the maturity date or redemption date thereof to the Paying and Calculation Agent, or
as specified in each Note. 

  
 2 

	3.4	 If for any reason the amounts received by the Paying and Calculation Agent are insufficient to satisfy all claims in respect of all payments
then due on a series of Notes, the Paying and Calculation Agent shall forthwith notify the Issuer, and the Paying and Calculation Agent shall not be obliged to pay any such claims until the Paying and Calculation Agent has received the full amount
of the monies then due and payable in respect of such Notes. If, however, the Paying and Calculation Agent in its sole discretion shall make payment on such Notes on their maturity, redemption, payments of interest or such other payments when
otherwise due (it being understood that the Paying and Calculation Agent shall have no obligation whatsoever to make any such payment) and the amount which should have been received is not received on such date, the Issuer agrees forthwith on demand
to pay, or procure the payment of, to the Paying and Calculation Agent, in addition to the amount which should have been paid hereunder, interest thereon from the day following the date when the amount unpaid should have been received under this
Agreement to the date when such amount is actually received (inclusive) at a rate equal to the cost of the Paying and Calculation Agent of funding such amount, as certified by the Paying and Calculation Agent and expressed as a rate per annum.

  

	3.5	 The Paying and Calculation Agent hereby agrees that: 

 

	 	(i)	 it will hold all sums held by it as Paying and Calculation Agent for the payment of the principal or interest, if any, on each respective series of
Notes in trust for the benefit of the Holders of the Notes or such series entitled thereto, or for the benefit of the Trustee, as the case may be, until such sums shall be paid out to such Holders or otherwise as provided in Section 3.6 below
and in the Indenture; 

  

	 	(ii)	 it will promptly give the Trustee notice of: (x) an Issuer deposit for the payment of principal of or interest, if any, on a series of Notes,
(y) any failure by the Issuer in the making of any deposit for the payment of principal of or interest, if any, on a series of Notes that shall have become payable, and (z) any default by the Issuer in making any payment of the principal
of or interest, if any, on a series of Notes where the same shall be due and payable as provided in such Notes; 

  

	 	(iii)	 At any time after an Event of Default in respect of a series of Notes shall have occurred, the Paying and Calculation Agent shall, if so required
by notice in writing given by the Trustee to the Paying and Calculation Agent: (y) thereafter, until otherwise instructed by the Trustee, act as agent of the Trustee under the terms of the Indenture; and/or (z) deliver all such Notes and
all sums, documents and records held by the Paying and Calculation Agent in respect of such Notes to the Trustee or as the Trustee shall direct in such notice; provided that such notice shall be deemed not to apply to any document or record which
the Paying and Calculation Agent is obliged not to release by any applicable law or regulation. 

  
 3 

	 	(iv)	 Subject to Section 10.03 of the Indenture, the Paying and Calculation Agent will (1) comply with the provisions of the Trust Indenture
Act applicable to it as a Paying and Calculation Agent and (2) during the continuance of any default by the Issuer (or any other obligor upon the Notes) in the making of any payment in respect of each series of Notes, upon the written request
of the Trustee, forthwith pay to the Trustee all sums held in trust by the Paying and Calculation Agent for payment in respect of such Notes. 

  

	 	(v)	 This Agreement may be delivered to and filed with the Trustee and the agreements in this Section 3.5 shall also be deemed to be agreed with
the Trustee. 

  

	3.6	 Notwithstanding the foregoing, 

  

	 	(i)	 if any Note is presented or surrendered for payment to the Paying and Calculation Agent and the Paying and Calculation Agent has delivered a
replacement therefor or has been notified that the same has been replaced, the Paying and Calculation Agent shall as soon as is reasonably practicable notify the Issuer in writing of such presentation or surrender and shall not make payment against
the same until it is so instructed by the Issuer and has received the amount to be so paid; and 

  

	 	(ii)	 the Paying and Calculation Agent shall cancel each Note against surrender of which it has made full payment and shall deliver each such Note so
cancelled by it to the Trustee. 

  

	3.7	 In no event, shall the Paying and Calculation Agent be obliged to make any payments hereunder if it has not received the full amount of any
payment. 

  

	3.8	 The Notes may be presented or surrendered for registration of transfer or exchange at the London office of the Paying and Calculation Agent
(which shall initially be the office specified in the introductory paragraph of this Agreement), and notices and demands to or upon the Issuer in respect to each series of Notes and the Indenture may be served at such London office of the Paying and
Calculation Agent. Upon receipt of a series of Notes, notice or demand for such purposes, the Paying and Calculation Agent shall promptly notify the Issuer and the Trustee and shall not be required to take any action other than in accordance with
the instructions of the Issuer or the Trustee, as the case may be. 

  
 4 

	4	 Calculation of Interest 

  

	4.1	 The Paying and Calculation Agent shall calculate the amount of interest payable on the Floating Rate Notes in the manner and at the times
set forth in Annex A and in the Prospectus Supplement in respect of the Notes attached hereto as Annex C. 

  

	4.2	 As soon as practicable after each Interest Determination Date (as defined in the Floating Rate Notes), the Paying and Calculation Agent will
cause to be forwarded to the Issuer and the Trustee information regarding the interest rates, the interest periods, the amount of interest for each interest period and the relevant interest payment date. The Paying and Calculation Agent will, upon
the written request of any Holder of any Floating Rate Note, provide the interest rate then in effect and, if then determined, the interest rate which will become effective for the next interest period with respect to such Floating Rate Note.

  

	4.3	 In no event shall the interest rate be less than zero or more than the maximum rate permitted by New York law, as the same may be modified
or superseded by United States law of general application. 

  

	5	 Indemnity 

  

	5.1	 The Issuer shall indemnify and keep indemnified the Paying and Calculation Agent against any losses, liabilities, costs, claims, actions or
demands which it may incur or which may be made against it as a result of or in connection with its appointment or the exercise of its powers and duties under this Agreement or in respect of the Issuer’s issue of Notes, except to the extent
that such has resulted from the Paying and Calculation Agent’s gross negligence, bad faith or wilful misconduct or the gross negligence, bad faith or wilful misconduct of its officers or employees. Promptly after the receipt by the Paying and
Calculation Agent of notice of any demand or claim or the commencement of any action, suit, proceeding or investigation, the Paying and Calculation Agent shall provide such notice to the Issuer; provided, however, that the Paying and Calculation
Agent’s failure to provide such notice shall not relieve the Issuer of its obligation to indemnify and keep indemnified the Paying and Calculation Agent pursuant to this Section 5.1. 

 

	5.2	 The indemnity contained in this Section shall survive the termination or expiry of this Agreement and the resignation or removal of the
Paying and Calculation Agent. 

  

	6	 General 

  

	6.1	 In acting under this Agreement, the Paying and Calculation Agent shall not (a) be under any fiduciary duty towards any Holder of Notes,
(b) be responsible for or liable in respect of the authorization, validity or legality of any Note amount paid by it hereunder (except to the extent that any such liability is determined by a court of

  
 5 

	 	 
competent jurisdiction to have been resulted from the Paying and Calculation Agent’s gross negligence, bad faith or wilful misconduct), (c) be under any obligation towards any person
other than the Trustee and Issuer or (d) assume any relationship of agency or trust for or with any Holder. 

  

	6.2	 The Paying and Calculation Agent shall be entitled to treat the registered Holder of any Note as the absolute owner of such Note for all
purposes and make payments thereon accordingly. 

  

	6.3	 The Paying and Calculation Agent may exercise any of its rights or duties hereunder by or through agents or attorneys, and shall not be
responsible for any misconduct thereof, provided such agent or attorney has been appointed by due care and each such agent making any payment on the Notes is a United States person (as defined in Section 7701(a)(30) of the Code) that is a
“financial institution” within the meaning of Treasury Regulation Section 1.1441-1T(c)(5) and a U.S. financial institution within the meaning of Treasury Regulation Section 1.1471-1(b)(136). 

 

	6.4	 The Paying and Calculation Agent shall not exercise any lien, right of set-off or similar claim against any Holder of a Note in respect of
moneys payable by it under this Agreement; however, should the Paying and Calculation Agent elect to make a payment pursuant to Section 3.4 hereof, it shall be entitled to appropriate for its own account out of the funds received by it under
Section 3 an amount equal to the amount so paid by it. 

  

	6.5	 The Paying and Calculation Agent may (at the expense of the Issuer) consult on any matter concerning its duties hereunder any legal adviser
or other expert selected by it, and the Paying and Calculation Agent shall not be liable in respect of anything done, or omitted to be done, in good faith in accordance with that legal adviser’s written opinion. At any time, the Paying and
Calculation Agent may apply to any duly authorized representative of the Issuer for a written instruction, and shall not be liable for action taken or omitted to be taken in good faith in accordance with such instruction. Notwithstanding anything to
the contrary herein, in no event shall the Paying and Calculation Agent be entitled to reimbursement of the expenses of such legal adviser or expert with respect to any matter arising from the Paying and Calculation Agent’s gross negligence,
bad faith or wilful misconduct. The Paying and Calculation Agent shall notify the Issuer with reasonable promptness of any action taken or omitted by the Paying and Calculation Agent in reliance upon such advice. 

 

	6.6	 The Paying and Calculation Agent shall be entitled to rely, and shall not be liable in respect of anything done or suffered by it in
reliance, on any notice, document, communication or information reasonably believed in good faith by it to be genuine and given by the proper parties. 

  

	6.7	 The Paying and Calculation Agent shall be obliged to perform only such duties as are specifically set forth herein and in the Notes, and no
implied duties or obligations shall be read into this Agreement or the Notes against the Paying and Calculation Agent. 

  
 6 

	6.8	 The Paying and Calculation Agent shall not be liable to account to the Issuer for any interest or other amounts in respect of funds received
by it from the Issuer. Money held by the Paying and Calculation Agent need not be segregated except as required by law. 

  

	6.9	 No provision of this Agreement or the Notes shall require the Paying and Calculation Agent to risk or expend its own funds, or to take any
action which in its reasonable judgment would result in any expense or liability accruing to it. 

  

	6.10	 In no event will the Paying and Calculation Agent be responsible or liable for any failure or delay in the performance of its obligations
hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God; it being understood that the Paying and Calculation Agent will use commercially reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

  

	6.11	 The Paying and Calculation Agent shall have no duty to inquire as to the performance of the covenants of the Issuer, nor shall it be charged
with knowledge of any default or Event of Default under the Indenture. 

  

	6.12	 Notwithstanding any provision of this Agreement to the contrary, the Paying and Calculation Agent will not in any event be liable for
special, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), whether or not foreseeable, even if the Paying and Calculation Agent has been advised of the likelihood of such loss or damage and
regardless of the form of action. 

  

	6.13	 The Paying and Calculation Agent shall incur no liability hereunder except to the extent such liability has resulted from the Paying and
Calculation Agent’s gross negligence, bad faith or wilful misconduct. 

  

	6.14	 Notwithstanding any other provision of this Agreement, the Paying Agent shall be entitled to make a deduction or withholding from any
payment which it makes under this Agreement for or on account of any present or future taxes, duties or charges if and to the extent so required by any applicable law and any current or future regulations or official interpretations thereof or any
law implementing an intergovernmental approach thereto or by virtue of the relevant holder failing to satisfy any certification or other requirements in respect of the Notes, in which event the Paying Agent shall make such payment after such
withholding or deduction has been made and shall account to the relevant authorities for the amount so withheld or deducted and shall have no obligation to gross up any payment hereunder or pay any additional amount as a result of such withholding
tax except as provided in the Indenture and provided the amount of the gross up is paid by the Issuer to the Paying Agent prior to such payment. The terms of this section shall survive the termination of this Agreement. 

  
 7 

	6.15	 [Reserved.] 

  

	6.16	 The Paying and Calculation Agent, its officers, directors, employees and shareholders may become the owners of, or acquire any interest in,
the Notes, with the same rights that it or they would have if it were not the Paying and Calculation Agent, and may engage or be interested in any financial or other transaction with the Issuer as freely as if it were not the Paying and Calculation
Agent. 

  

	6.17	 [Reserved]. 

  

	6.18	 The Paying and Calculation Agent shall retain the right not to act and shall not be held liable for refusing to act unless it has received
clear and reasonable documentation which complies with the terms of this Agreement. 

  

	6.19	 The Issuer will supply the Paying and Calculation Agent with the names and specimen signatures of its authorized persons.

  

	7	 Change of Paying and Calculation Agent 

  

	7.1	 Resignation or Removal of Paying and Calculation Agent. Subject to Section 7.2, any time, other than on a day during the forty-five
(45) day period preceding any payment date for Issuer’s Notes, the Paying and Calculation Agent may resign by giving at least forty-five (45) days’ prior written notice to Issuer; and the Paying and Calculation Agent’s
agency shall be terminated and its duties shall cease upon expiration of such forty-five (45) days or such lesser period of time as shall be mutually agreeable to Paying and Calculation Agent and Issuer. Subject to Section 7.2, at any
time, following at least forty-five (45) days’ prior written notice (or such lesser period of time as shall be mutually agreeable to the Paying and Calculation Agent and the Issuer) from the Issuer, the Paying and Calculation Agent may be
removed from its agency. Subject to Section 7.2, such removal shall become effective upon the expiration of the forty-five (45) day or agreed lesser time period, and upon payment to the Paying and Calculation Agent of all amounts payable
to it in connection with its agency. In such event, following payment of its fees and expenses, the Paying and Calculation Agent shall deliver to the Issuer, or to the Issuer’s designated representative, all Notes (if any) and cash (if any)
belonging to the Issuer and, at the Issuer’s expense, shall furnish to the Issuer, or to the Issuer’s designated representative, such information regarding the status of the Issuer’s outstanding Notes reasonably requested by the
Issuer. 

  

	7.2	 (a) Notwithstanding anything to the country in Section 7.1 and subject to Section 7.2(b), no resignation or removal of the Paying and
Calculation Agent shall take effect if there would not then be a paying agent with respect to the Notes in London and a paying agent in London is required under the Indenture or the Notes. If a successor paying agent in London is required under the
Indenture or the Notes but shall not have been appointed and accepted before the expiration of 45-day period (or other period of time mutually agreed by the Issuer and the Paying and Calculation Agent) set forth in Section 7.1, the resigning or
terminated Paying and Calculation Agent may petition any court of competent jurisdiction for the appointment of a successor London paying agent with respect to the Notes. 

  
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 (b) Automatic Termination: Notwithstanding anything to the country in Sections
7.1 and 7.2(a), the appointment of the Paying and Calculation Agent shall forthwith terminate if the Paying and Calculation Agent becomes incapable of acting, is adjudged bankrupt or insolvent, files a voluntary petition in bankruptcy, makes an
assignment for the benefit of its creditors, consents to the appointment of a receiver, administrator or other similar official of all or a substantial part of its property or admits in writing its inability to pay or meet its debts as they mature
or suspends payment thereof, or if a resolution is passed or an order made for the winding-up or dissolution of the Paying and Calculation Agent, a receiver, administrator or other similar official of the Paying and Calculation Agent or all or a
substantial part of its property is appointed, a court order is entered approving a petition filed by or against it under applicable bankruptcy or insolvency law, or a public officer takes charge or control of the Paying and Calculation Agent or its
property or affairs for the purpose of rehabilitation, conservation or liquidation. 
  

	7.3	 Any corporation into which a Paying and Calculation Agent may be merged or consolidated or any corporation resulting from any merger or
consolidation to which such Paying and Calculation Agent is a party or any corporation to which such Paying and Calculation Agent shall sell or otherwise transfer all or substantially all of its corporate trust or agency assets shall on the date on
which such merger, consolidation or transfer becomes effective, become the successor to such Paying and Calculation Agent under this Agreement upon due notice to the Issuer hereunder without the further execution or filing of any paper or any
further act on the part of the parties hereto; provided that such corporation provides the information required by Section 11.2 of this Agreement. 

  

	7.4	 If the Paying and Calculation Agent changes the address of its specified office in London, it shall give the Issuer and the Trustee at least
60 days’ notice of the change, giving the new address and the date on which the change is to take effect. 

  

	8	 Compensation, Fees and Expenses 

  

	8.1	 The Issuer will pay to the Paying and Calculation Agent the compensation, fees and expenses in respect of the Paying and Calculation
Agent’s services as separately agreed with the Paying and Calculation Agent. 

  

	8.2	 The Issuer will also pay as incurred all reasonable and documented out-of-pocket expenses (including reasonable and documented legal
expenses) incurred by the Paying and Calculation Agent in connection with its services hereunder, together with any applicable value added tax and stamp, issue, or other documentary taxes and duties. 

  
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	9	 Notices 

  

	9.1	 Each notice or communication under this Agreement shall be made in writing, by fax or otherwise in accordance with this Section 9. Each
communication or document to be delivered to any party under this Agreement shall be sent to that party at the fax number or address, and marked for the attention of the person (if any), from time to time designated by that party to the Paying and
Calculation Agent (or, in the case of the Paying and Calculation Agent, by it to each other party) for the purpose of this Agreement. The initial telephone number, fax number, address and person so designated are: 

in the case of the Issuer, at: 

United Parcel Service, Inc. 

55 Glenlake Parkway, N.E. 

Atlanta, GA 30328 

Attn: Legal Department 

Fax no.: 404-828-6912 

With copies to: 

King & Spalding LLP 

1180 Peachtree Street, N.E. 

Atlanta, GA 30309 

Attn: Jeffrey M. Stein 

Fax no.: 404-572-5133 

in the case of the Paying and Calculation Agent, to it at: 

The Bank of New York Mellon (London Branch) 

One Canada Square, London E14 5AL 

Attention: Corporate Trust Administration 

Fax no.: +44 (0) 207 964 2536 

All notices under this Agreement shall be effective (if by fax) when good receipt is confirmed by the recipient following
enquiry by the sender and (if in writing) when delivered, except that a communication received outside normal business hours shall be deemed to be received on the next business day in the city in which the recipient is located. 

 

	9.2	 In no event, shall the Paying and Calculation Agent be liable for any losses arising from the Paying and Calculation Agent receiving or
transmitting any data from or to an authorized person via any non-secure method of transmission or communication, such as but without limitation, by facsimile or email, in the absence of fraud, gross negligence or wilful misconduct of the Paying and
Calculation Agent. The Issuer 

  
 10 

	 	 
accepts that some methods of communication are not secure and the Paying and Calculation Agent shall not incur any liability for receiving instructions via any such non-secure method. The Paying
and Calculation Agent is authorized to comply with and rely upon any such notice, instruction or other communications believed by it to have been sent or given by an authorized person. The Issuer shall use all reasonable endeavours to ensure that
instructions transmitted to the Paying and Calculation Agent pursuant to this Agreement are complete and correct. Any instructions shall be conclusively deemed to be valid instructions from the Issuer to the Paying and Calculation Agent for the
purposes of this Agreement. 

  

	10	 Governing Law and Jurisdiction; Waiver of Jury Trial 

 

	10.1	 The interpretation, validity and enforcement of this Agreement, and all legal actions brought under or in connection with the subject matter
of this Agreement, shall be governed by the laws of the State of New York. 

  

	10.2	 Any court action brought under or in connection with the subject matter of this Agreement shall be brought only in the United States
District Court for the Southern District of New York or, if such court would not have jurisdiction over the matter, then only in a New York State court sitting in the Borough of Manhattan, City of New York. Each Party submits to the exclusive
jurisdiction of these courts and agrees not to commence any legal action under or in connection with the subject matter of this Agreement in any other court or forum. 

 

	10.3	 Each Party waives any objection to the laying of the venue of any legal action brought under or in connection with the subject matter of
this Agreement in the Federal or state courts sitting in the Borough of Manhattan, City of New York, and agrees not to plead or claim in such courts that any such action has been brought in an inconvenient forum. 

 

	10.4	 THE ISSUER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY. 

  

	11	 Withholding and Tax Forms. 

  

	11.1	 In order to comply with applicable tax laws, rules and regulations (inclusive of directives, guidelines and interpretations promulgated by
competent authorities) in effect from time to time to which a foreign financial institution, issuer, trustee, paying agent, holder or other institution is or has agreed to be subject related to the Notes (“Applicable Law”), the
Issuer agrees: (i) to provide to BNYM sufficient information about Holders or other applicable parties and/or transactions in its possession (including any modification to the terms of such transactions), so BNYM can determine whether it has
tax related obligations under Applicable Law; and (ii) that BNYM shall be entitled to make any withholding or deduction from payments under the transaction documents to the extent required to comply with Applicable Law. The terms of this
section shall survive the termination of this Agreement. 

  
 11 

	11.2	 The Paying and Calculation Agent shall deliver to the Issuer a properly completed and executed original (or electronic copy) of IRS Form W-9
(or appropriate successor form) upon entering into this agreement (and from time to time thereafter upon reasonable request of the Issuer). The Paying and Calculation Agent agrees that if any form or certification that it previously delivered
expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification promptly or promptly notify the Issuer in writing of its legal inability to do so. 

 

	12	 Counterparts 

This Agreement may be signed in any number of counterparts, each of which shall be deemed an original. 

  
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 In witness whereof the parties hereto have caused this Agreement to be duly
executed the day and year first above written. 
  

			
	United Parcel Service, Inc., as Issuer
		
	 By:
	 	 /s/ Richard N. Peretz

		 	Name: Richard N. Peretz
		 	Title: Senior Vice President, Chief Financial Officer & Treasurer

  

			
	Paying and Calculation Agent
	
	 The Bank of New York Mellon (London Branch)

		
	 By:
	 	 /s/ Paul Cattermole

		 	Name: Paul Cattermole
		 	Title: Vice President

 [Signature to Paying Agency Agreement] 

 Annex A – Form of Floating Rate Notes 

 Annex B – Form of Fixed Rate Notes 

 Annex C – Prospectus Supplement

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