Document:

exv10w3

Exhibit 10.3

EXECUTION VERSION

GUARANTY AGREEMENT

     THIS GUARANTY AGREEMENT, dated as of the 30th day of March, 2011 (this “Guaranty”), is
made by each of the undersigned Subsidiaries of SWISHER HYGIENE INC., a Delaware corporation (the
“Borrower”), and each other Subsidiary of the Borrower that, after the date hereof,
executes an instrument of accession hereto substantially in the form of Exhibit A (a
“Guarantor Accession”; the undersigned and such other Subsidiaries of the Borrower,
collectively, the “Guarantors”), in favor of the Guaranteed Parties (as hereinafter
defined). Capitalized terms used herein without definition shall have the meanings given to them
in the Credit Agreement referred to below.

RECITALS

     A. The Borrower, certain Lenders, and Wells Fargo Bank, National Association, as
administrative agent for the Lenders (in such capacity, the “Administrative Agent”), are
parties to a Credit Agreement, dated as of March 30, 2011 (as amended, modified, restated or
supplemented from time to time, the “Credit Agreement”), providing for the availability of
certain credit facilities to the Borrower upon the terms and conditions set forth therein.

     B. It is a condition to the extension of credit to the Borrower under the Credit Agreement
that each Guarantor shall have agreed, by executing and delivering this Guaranty, to guarantee to
the Guaranteed Parties the payment in full of the Guaranteed Obligations (as hereinafter defined).
The Guaranteed Parties are relying on this Guaranty in their decision to extend credit to the
Borrower under the Credit Agreement, and would not enter into the Credit Agreement without this
Guaranty.

     C. The Borrower and the Guarantors are engaged in related businesses and undertake certain
activities and operations on an integrated basis. As part of such integrated operations, the
Borrower, among other things, will advance to the Guarantors from time to time certain proceeds of
the Loans made to the Borrower by the Lenders under the Credit Agreement. Each Guarantor will
therefore obtain benefits as a result of the extension of credit to the Borrower under the Credit
Agreement, which benefits are hereby acknowledged, and, accordingly, desires to execute and deliver
this Guaranty.

 

 

STATEMENT OF AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, to induce the Guaranteed Parties to
enter into the Credit Agreement and to induce the Lenders to extend credit to the Borrower
thereunder, each Guarantor hereby agrees as follows:

     1. Guaranty.

     (a) Each Guarantor hereby irrevocably, absolutely and unconditionally, and jointly and
severally:

     (i) guarantees (A) to the Lenders (including the Issuing Lender and the Swingline
Lender in their capacities as such) and the Administrative Agent (together with any Lender
(or any Affiliate of any Lender) in the capacity described in clause (B) below,
collectively, the “Guaranteed Parties”) the full and prompt payment, at any time and
from time to time as and when due (whether at the stated maturity, by acceleration or
otherwise), of all Obligations of the Borrower under the Credit Agreement and the other
Credit Documents, including, without limitation, all principal of and interest on the Loans,
all Reimbursement Obligations, all fees, expenses, indemnities and other amounts payable by
the Borrower under the Credit Agreement or any other Credit Document (including interest
accruing after the filing of a petition or commencement of a case by or with respect to the
Borrower seeking relief under any Insolvency Laws (as hereinafter defined), whether or not
the claim for such interest is allowed in such proceeding), and all Obligations that, but
for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, would
become due, and (B) to each applicable Lender or Affiliate of any Lender in its capacity as
a Hedge Party under any Hedge Agreement that is required or permitted by the Credit
Agreement to be entered into by the Borrower (a “Permitted Hedge Agreement”), all
obligations of the Borrower under such Permitted Hedge Agreement, in each case under (A) and
(B) whether now existing or hereafter created or arising and whether direct or indirect,
absolute or contingent, due or to become due (all liabilities and obligations described in
this clause (i), collectively, the “Guaranteed Obligations”); and

     (ii) agrees to pay the reasonable fees and expenses of counsel to, and reimburse upon
demand all reasonable costs and expenses incurred or paid by, (y) any Guaranteed Party in
connection with any suit, action or proceeding to enforce or protect any rights of the
Guaranteed Parties hereunder and (z) the Administrative Agent in connection with any
amendment, modification or waiver hereof or consent pursuant hereto, and to indemnify and
hold each Guaranteed Party and its directors, officers, employees, agents and Affiliates
harmless from and against any and all claims, losses, damages, obligations, liabilities,
penalties, costs and expenses (including, without limitation, reasonable attorneys’ fees and
expenses) of any kind or nature whatsoever, whether direct, indirect or consequential, that
may at any time be imposed on, incurred by or asserted against any such indemnified party as
a result of, arising from or in any way relating to this Guaranty or the collection or
enforcement of the Guaranteed Obligations; provided, however, that no
indemnified party shall have the right to be indemnified

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hereunder for any such claims, losses, costs and expenses to the extent determined by a
court of competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such indemnified party.

     (b) Notwithstanding the provisions of subsection (a) above and notwithstanding any other
provisions contained herein or in any other Credit Document:

     (i) no provision of this Guaranty shall require or permit the collection from any
Guarantor of interest in excess of the maximum rate or amount that such Guarantor may be
required or permitted to pay pursuant to applicable law; and

     (ii) the liability of each Guarantor under this Guaranty as of any date shall be
limited to a maximum aggregate amount (the “Maximum Guaranteed Amount”) equal to the
greatest amount that would not render such Guarantor’s obligations under this Guaranty
subject to avoidance, discharge or reduction as of such date as a fraudulent transfer or
conveyance under applicable federal and state laws pertaining to bankruptcy, reorganization,
arrangement, moratorium, readjustment of debts, dissolution, liquidation or other debtor
relief, specifically including, without limitation, the Bankruptcy Code and any fraudulent
transfer and fraudulent conveyance laws (collectively, “Insolvency Laws”), in each
instance after giving effect to all other liabilities of such Guarantor, contingent or
otherwise, that are relevant under applicable Insolvency Laws (specifically excluding,
however, any liabilities of such Guarantor in respect of intercompany indebtedness to the
Borrower or any of its Affiliates to the extent that such indebtedness would be discharged
in an amount equal to the amount paid by such Guarantor hereunder, and after giving effect
as assets to the value (as determined under applicable Insolvency Laws) of any rights to
subrogation, contribution, reimbursement, indemnity or similar rights of such Guarantor
pursuant to (y) applicable law or (z) any agreement (including this Guaranty) providing for
an equitable allocation among such Guarantor and other Affiliates of the Borrower of
obligations arising under guaranties by such parties).

     (c) The Guarantors desire to allocate among themselves, in a fair and equitable manner, their
obligations arising under this Guaranty. Accordingly, in the event any payment or distribution is
made hereunder on any date by a Guarantor (a “Funding Guarantor”) that exceeds its Fair
Share (as hereinafter defined) as of such date, that Funding Guarantor shall be entitled to a
contribution from each of the other Guarantors in the amount of such other Guarantor’s Fair Share
Shortfall (as hereinafter defined) as of such date, with the result that all such contributions
will cause each Guarantor’s Aggregate Payments (as hereinafter defined) to equal its Fair Share as
of such date. “Fair Share” means, with respect to a Guarantor as of any date of
determination, an amount equal to (i) the ratio of (x) the Adjusted Maximum Guaranteed Amount (as
hereinafter defined) with respect to such Guarantor to (y) the aggregate of the Adjusted Maximum
Guaranteed Amounts with respect to all Guarantors, multiplied by (ii) the aggregate amount paid or
distributed on or before such date by all Funding Guarantors hereunder in respect of the
obligations guarantied. “Fair Share Shortfall” means, with respect to a Guarantor as of
any date of determination, the excess, if any, of the Fair Share of such Guarantor over the
Aggregate Payments of such Guarantor. “Adjusted Maximum Guaranteed Amount” means, with
respect to a Guarantor as of any date of determination, the Maximum Guaranteed Amount of

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such Guarantor, determined in accordance with the provisions of subsection (b) above;
provided that, solely for purposes of calculating the “Adjusted Maximum Guaranteed Amount”
with respect to any Guarantor for purposes of this subsection (c), any assets or liabilities
arising by virtue of any rights to subrogation, reimbursement or indemnity or any rights to or
obligations of contribution hereunder shall not be considered as assets or liabilities of such
Guarantor. “Aggregate Payments” means, with respect to a Guarantor as of any date of
determination, the aggregate amount of all payments and distributions made on or before such date
by such Guarantor in respect of this Guaranty (including, without limitation, in respect of this
subsection (c)). The amounts payable as contributions hereunder shall be determined as of the date
on which the related payment or distribution is made by the applicable Funding Guarantor. Each
Funding Guarantor’s right of contribution under this subsection (c) shall be subject to the
provisions of Section 4. The allocation among Guarantors of their obligations as set forth in this
subsection (c) shall not be construed in any way to limit the liability of any Guarantor hereunder
to the Guaranteed Parties.

     (d) The guaranty of each Guarantor set forth in this Section is a guaranty of payment as a
primary obligor, and not a guaranty of collection. Each Guarantor hereby acknowledges and agrees
that the Guaranteed Obligations, at any time and from time to time, may exceed the Maximum
Guaranteed Amount of such Guarantor and may exceed the aggregate of the Maximum Guaranteed Amounts
of all Guarantors, in each case without discharging, limiting or otherwise affecting the
obligations of any Guarantor hereunder or the rights, powers and remedies of any Guaranteed Party
hereunder or under any other Credit Document.

     2. Guaranty Absolute. Each Guarantor agrees that its obligations hereunder and under
the other Credit Documents to which it is a party are irrevocable, absolute and unconditional, are
independent of the Guaranteed Obligations and any Collateral or other security therefor or other
guaranty or liability in respect thereof, whether given by such Guarantor or any other Person, and
shall not be discharged, limited or otherwise affected by reason of any of the following, whether
or not such Guarantor has notice or knowledge thereof:

     (i) any change in the time, manner or place of payment of, or in any other term of, any
Guaranteed Obligations or any guaranty or other liability in respect thereof, or any
amendment, modification or supplement to, restatement of, or consent to any rescission or
waiver of or departure from, any provisions of the Credit Agreement, any other Credit
Document or any agreement or instrument delivered pursuant to any of the foregoing;

     (ii) the invalidity or unenforceability of any Guaranteed Obligations, any guaranty or
other liability in respect thereof or any provisions of the Credit Agreement, any other
Credit Document or any agreement or instrument delivered pursuant to any of the foregoing;

     (iii) the addition or release of Guarantors hereunder or the taking, acceptance or
release of other guarantees of any Guaranteed Obligations or additional Collateral or other
security for any Guaranteed Obligations or for any guaranty or other liability in respect
thereof;

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     (iv) any discharge, modification, settlement, compromise or other action in respect of
any Guaranteed Obligations or any guaranty or other liability in respect thereof, including
any acceptance or refusal of any offer or performance with respect to the same or the
subordination of the same to the payment of any other obligations;

     (v) any agreement not to pursue or enforce or any failure to pursue or enforce (whether
voluntarily or involuntarily as a result of operation of law, court order or otherwise) any
right or remedy in respect of any Guaranteed Obligations, any guaranty or other liability in
respect thereof or any Collateral or other security for any of the foregoing; any sale,
exchange, release, substitution, compromise or other action in respect of any such
Collateral or other security; or any failure to create, protect, perfect, secure, insure,
continue or maintain any Liens in any such Collateral or other security;

     (vi) the exercise of any right or remedy available under the Credit Documents, at law,
in equity or otherwise in respect of any Collateral or other security for any Guaranteed
Obligations or for any guaranty or other liability in respect thereof, in any order and by
any manner thereby permitted, including, without limitation, foreclosure on any such
Collateral or other security by any manner of sale thereby permitted, whether or not every
aspect of such sale is commercially reasonable;

     (vii) any bankruptcy, reorganization, arrangement, liquidation, insolvency,
dissolution, termination, reorganization or like change in the corporate structure or
existence of the Borrower or any other Person directly or indirectly liable for any
Guaranteed Obligations;

     (viii) any manner of application of any payments by or amounts received or collected
from any Person, by whomsoever paid and howsoever realized, whether in reduction of any
Guaranteed Obligations or any other obligations of the Borrower or any other Person directly
or indirectly liable for any Guaranteed Obligations, regardless of what Guaranteed
Obligations may remain unpaid after any such application; or

     (ix) any other circumstance that might otherwise constitute a legal or equitable
discharge of, or a defense, set-off or counterclaim available to, the Borrower, any
Guarantor or a surety or guarantor generally, other than the occurrence of all of the
following: (x) the payment in full in cash of the Guaranteed Obligations (other than
contingent and indemnification obligations not then due and payable), (y) the termination of
the Commitments and the termination or expiration of all Letters of Credit under the Credit
Agreement, and (z) the termination of, and settlement of all obligations of the Borrower
under, each Permitted Hedge Agreement to which any Hedge Party is a party (the events in
clauses (x), (y) and (z) above, collectively, the “Termination Requirements”).

     3. Certain Waivers. Each Guarantor hereby knowingly, voluntarily and expressly
waives:

     (i) presentment, demand for payment, demand for performance, protest and notice of any
other kind, including, without limitation, notice of nonpayment or other

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nonperformance (including notice of default under any Credit Document with respect to
any Guaranteed Obligations), protest, dishonor, acceptance hereof, extension of additional
credit to the Borrower and of any of the matters referred to in Section 2 and of any rights
to consent thereto;

     (ii) any right to require the Guaranteed Parties or any of them, as a condition of
payment or performance by such Guarantor hereunder, to proceed against, or to exhaust or
have resort to any Collateral or other security from or any deposit balance or other credit
in favor of, the Borrower, any other Guarantor or any other Person directly or indirectly
liable for any Guaranteed Obligations, or to pursue any other remedy or enforce any other
right; and any other defense based on an election of remedies with respect to any Collateral
or other security for any Guaranteed Obligations or for any guaranty or other liability in
respect thereof, notwithstanding that any such election (including any failure to pursue or
enforce any rights or remedies) may impair or extinguish any right of indemnification,
contribution, reimbursement or subrogation or other right or remedy of any Guarantor against
the Borrower, any other Guarantor or any other Person directly or indirectly liable for any
Guaranteed Obligations or any such Collateral or other security; and, without limiting the
generality of the foregoing, each Guarantor hereby specifically waives the benefits of
Sections 26-7 through 26-9, inclusive, of the General Statutes of North Carolina, as amended
from time to time, and any similar statute or law of any other jurisdiction, as the same may
be amended from time to time;

     (iii) any right or defense based on or arising by reason of any right or defense of the
Borrower or any other Person, including, without limitation, any defense based on or arising
from a lack of authority or other disability of the Borrower or any other Person, the
invalidity or unenforceability of any Guaranteed Obligations, any Collateral or other
security therefor or any Credit Document or other agreement or instrument delivered pursuant
thereto, or the cessation of the liability of the Borrower for any reason other than the
satisfaction of the Termination Requirements;

     (iv) any defense based on any Guaranteed Party’s acts or omissions in the
administration of the Guaranteed Obligations, any guaranty or other liability in respect
thereof or any Collateral or other security for any of the foregoing, and promptness,
diligence or any requirement that any Guaranteed Party create, protect, perfect, secure,
insure, continue or maintain any Liens in any such Collateral or other security;

     (v) any right to assert against any Guaranteed Party, as a defense, counterclaim,
crossclaim or set-off, any defense, counterclaim, claim, right of recoupment or set-off that
it may at any time have against any Guaranteed Party (including, without limitation, failure
of consideration, fraud, fraudulent inducement, statute of limitations, payment, accord and
satisfaction and usury), other than compulsory counterclaims and other than the payment in
full in cash of the Guaranteed Obligations; and

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     (vi) any defense based on or afforded by any applicable law that limits the liability
of or exonerates guarantors or sureties or that may in any other way conflict with the terms
of this Guaranty.

     4. No Subrogation. Each Guarantor hereby waives, and agrees that it will not exercise
or seek to exercise, any claim or right that it may have against the Borrower or any other
Guarantor at any time as a result of any payment made under or in connection with this Guaranty or
the performance or enforcement hereof, including any right of subrogation to the rights of any of
the Guaranteed Parties against the Borrower or any other Guarantor, any right of indemnity,
contribution or reimbursement against the Borrower or any other Guarantor (including rights of
contribution as set forth in Section 1(c)), any right to enforce any remedies of any Guaranteed
Party against the Borrower or any other Guarantor, or any benefit of, or any right to participate
in, any Collateral or other security held by any Guaranteed Party to secure payment of the
Guaranteed Obligations, in each case whether such claims or rights arise by contract, statute
(including without limitation the Bankruptcy Code), common law or otherwise; provided,
however, that a Guarantor may enforce the rights of contribution set forth in Section 1(c)
after satisfaction of the Termination Requirements. Each Guarantor further agrees that all
indebtedness and other obligations, whether now or hereafter existing, of the Borrower or any other
Subsidiary of the Borrower to such Guarantor, including, without limitation, any such indebtedness
in any proceeding under the Bankruptcy Code and any intercompany receivables, together with any
interest thereon, shall be, and hereby are, subordinated and made junior in right of payment to the
Guaranteed Obligations. Each Guarantor further agrees that if any amount shall be paid to or any
distribution received by any Guarantor (i) on account of any such indebtedness at any time after
the occurrence and during the continuance of an Event of Default, or (ii) on account of any rights
of contribution at any time prior to the satisfaction of the Termination Requirements, such amount
or distribution shall be deemed to have been received and to be held in trust for the benefit of
the Guaranteed Parties, and shall forthwith be delivered to the Administrative Agent in the form
received (with any necessary endorsements in the case of written instruments), to be applied
against the Guaranteed Obligations, whether or not matured, in accordance with the terms of the
applicable Credit Documents and without in any way discharging, limiting or otherwise affecting the
liability of such Guarantor under any other provision of this Guaranty. Additionally, in the event
the Borrower or any other Credit Party becomes a “debtor” within the meaning of the Bankruptcy
Code, the Administrative Agent shall be entitled, at its option, on behalf of the Guaranteed
Parties and as attorney-in-fact for each Guarantor, and is hereby authorized and appointed by each
Guarantor, to file proofs of claim on behalf of each relevant Guarantor and vote the rights of each
such Guarantor in any plan of reorganization, and to demand, sue for, collect and receive every
payment and distribution on any indebtedness of the Borrower or such Credit Party to any Guarantor
in any such proceeding, each Guarantor hereby assigning to the Administrative Agent all of its
rights in respect of any such claim, including the right to receive payments and distributions in
respect thereof.

     5. Representations and Warranties. Each Guarantor hereby represents and warrants to
the Guaranteed Parties that, as to itself, all of the representations and warranties relating to it
contained in the Credit Agreement are true and correct.

     6. Financial Condition of Borrower. Each Guarantor represents that it has knowledge
of the Borrower’s financial condition and affairs and that it has adequate means to

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obtain from the Borrower on an ongoing basis information relating thereto and to the
Borrower’s ability to pay and perform the Guaranteed Obligations, and agrees to assume the
responsibility for keeping, and to keep, so informed for so long as this Guaranty is in effect with
respect to such Guarantor. Each Guarantor agrees that the Guaranteed Parties shall have no
obligation to investigate the financial condition or affairs of the Borrower for the benefit of any
Guarantor nor to advise any Guarantor of any fact respecting, or any change in, the financial
condition or affairs of the Borrower that might become known to any Guaranteed Party at any time,
whether or not such Guaranteed Party knows or believes or has reason to know or believe that any
such fact or change is unknown to any Guarantor, or might (or does) materially increase the risk of
any Guarantor as guarantor, or might (or would) affect the willingness of any Guarantor to continue
as a guarantor of the Guaranteed Obligations.

     7. Payments; Application; Set-Off.

     (a) Each Guarantor agrees that, upon the failure of the Borrower to pay any Guaranteed
Obligations when and as the same shall become due (whether at the stated maturity, by acceleration
or otherwise), and without limitation of any other right or remedy that any Guaranteed Party may
have at law, in equity or otherwise against such Guarantor, such Guarantor will, subject to the
provisions of Section 1(b), forthwith pay or cause to be paid to the Administrative Agent, for the
benefit of the Guaranteed Parties, an amount equal to the amount of the Guaranteed Obligations then
due and owing as aforesaid.

     (b) All payments made by each Guarantor hereunder will be made in Dollars to the
Administrative Agent, without set-off, counterclaim or other defense and, in accordance with the
Credit Agreement, free and clear of and without deduction for any Taxes, each Guarantor hereby
agreeing to comply with and be bound by the provisions of the Credit Agreement in respect of all
payments made by it hereunder.

     (c) All payments made hereunder shall be applied in accordance with the provisions of Section
2.12 of the Credit Agreement. For purposes of applying amounts in accordance with this Section,
the Administrative Agent shall be entitled to rely upon any Guaranteed Party that has entered into
a Permitted Hedge Agreement with the Borrower for a determination (which such Guaranteed Party
agrees to provide or cause to be provided upon request of the Administrative Agent) of the
outstanding Guaranteed Obligations owed to such Guaranteed Party under any such Permitted Hedge
Agreement. Unless it has actual knowledge (including by way of written notice from any such
Guaranteed Party) to the contrary, the Administrative Agent, in acting hereunder, shall be entitled
to assume that no Permitted Hedge Agreements or Guaranteed Obligations in respect thereof are in
existence between any Guaranteed Party and the Borrower. If any Lender or Affiliate thereof that
is a party to a Permitted Hedge Agreement with the Borrower (the obligations of the Borrower under
which are Guaranteed Obligations) ceases to be a Lender or Affiliate thereof, such former Lender or
Affiliate thereof shall nevertheless continue to be a Guaranteed Party hereunder with respect to
the Guaranteed Obligations under such Permitted Hedge Agreement.

     (d) In the event that the proceeds of any such sale, disposition or realization are
insufficient to pay all amounts to which the Guaranteed Parties are legally entitled, the
Guarantors shall be jointly and severally liable for the deficiency, together with interest thereon

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at the highest rate specified in any applicable Credit Document for interest on overdue
principal or such other rate as shall be fixed by applicable law, together with the costs of
collection and all other fees, costs and expenses payable hereunder.

     (e) Upon and at any time after the occurrence and during the continuance of any Event of
Default, each Guaranteed Party and each of their respective Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by applicable law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such
Guaranteed Party or any such Affiliate to or for the credit or the account of any Guarantor against
any and all of the obligations of such Guarantor now or hereafter existing under this Guaranty or
any other Credit Document to such Guaranteed Party, irrespective of whether or not such Guaranteed
Party shall have made any demand under this Guaranty or any other Credit Document and although such
obligations of such Guarantor may be contingent or unmatured or are owed to a branch or office of
such Guaranteed Party different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Guaranteed Party and their respective Affiliates under this
subsection are in addition to other rights and remedies (including other rights of setoff) that
such Guaranteed Parties or their respective Affiliates may have. Each Guaranteed Party agrees to
notify the Borrower and the Administrative Agent promptly after any such setoff and application;
provided that the failure to give such notice shall not affect the validity of such setoff
and application.

     8. No Waiver. The rights and remedies of the Guaranteed Parties expressly set forth
in this Guaranty and the other Credit Documents are cumulative and in addition to, and not
exclusive of, all other rights and remedies available at law, in equity or otherwise. No failure
or delay on the part of any Guaranteed Party in exercising any right, power or privilege shall
operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power
or privilege or be construed to be a waiver of any Default or Event of Default. No course of
dealing between any of the Guarantors and the Guaranteed Parties or their agents or employees shall
be effective to amend, modify or discharge any provision of this Guaranty or any other Credit
Document or to constitute a waiver of any Default or Event of Default. No notice to or demand upon
any Guarantor in any case shall entitle such Guarantor or any other Guarantor to any other or
further notice or demand in similar or other circumstances or constitute a waiver of the right of
any Guaranteed Party to exercise any right or remedy or take any other or further action in any
circumstances without notice or demand.

     9. Enforcement. The Guaranteed Parties agree that, except as provided in Section
7(e), this Guaranty may be enforced only by the Administrative Agent, acting upon the instructions
or with the consent of the Required Lenders as provided for in the Credit Agreement, and that no
Guaranteed Party shall have any right individually to enforce or seek to enforce this Guaranty or
to realize upon any Collateral or other security given to secure the payment and performance of the
Guarantors’ obligations hereunder. The obligations of each Guarantor hereunder are independent of
the Guaranteed Obligations, and a separate action or actions may be brought against each Guarantor
whether or not action is brought against the Borrower or any other Guarantor and whether or not the
Borrower or any other Guarantor is joined in any such action. Each Guarantor agrees that to the
extent all or part of any payment of the Guaranteed

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Obligations made by any Person is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid by or on behalf of any Guaranteed Party to a
trustee, receiver or any other party under any Insolvency Laws (the amount of any such payment, a
“Reclaimed Amount”), then, to the extent of such Reclaimed Amount, this Guaranty shall
continue in full force and effect or be revived and reinstated, as the case may be, as to the
Guaranteed Obligations intended to be satisfied as if such payment had not been received; and each
Guarantor acknowledges that the term “Guaranteed Obligations” includes all Reclaimed Amounts that
may arise from time to time.

     10. Amendments, Waivers, etc. No amendment, modification, waiver, discharge or
termination of, or consent to any departure by any Guarantor from, any provision of this Guaranty,
shall be effective unless in a writing signed by the Administrative Agent and such of the Lenders
as may be required under the provisions of the Credit Agreement to concur in the action then being
taken, and then the same shall be effective only in the specific instance and for the specific
purpose for which given.

     11. Addition, Release of Guarantors. Each Guarantor recognizes that the provisions of
the Credit Agreement require Persons that become Subsidiaries of the Borrower and that are not
already parties hereto to become Guarantors hereunder by executing a Guarantor Accession (subject
to certain excepts regarding Foreign Subsidiaries), and agrees that its obligations hereunder shall
not be discharged, limited or otherwise affected by reason of the same, or by reason of the
Administrative Agent’s actions in effecting the same or in releasing any Guarantor hereunder, in
each case without the necessity of giving notice to or obtaining the consent of any other
Guarantor.

     12. Continuing Guaranty; Term; Successors and Assigns; Assignment; Survival. This
Guaranty is a continuing guaranty and covers all of the Guaranteed Obligations as the same may
arise and be outstanding at any time and from time to time from and after the date hereof, and
shall (i) remain in full force and effect until satisfaction of all of the Termination Requirements
(provided that the provisions of Sections 1(a)(ii) and 4 shall survive any termination of
this Guaranty), (ii) be binding upon and enforceable against each Guarantor and its successors and
assigns (provided, however, that no Guarantor may sell, assign or transfer any of
its rights, interests, duties or obligations hereunder without the prior written consent of the
Required Lenders) and (iii) inure to the benefit of and be enforceable by each Guaranteed Party and
its successors and assigns. Without limiting the generality of clause (iii) above, any Guaranteed
Party may, in accordance with the provisions of the Credit Agreement, assign all or a portion of
the Guaranteed Obligations held by it (including by the sale of participations), whereupon each
Person that becomes the holder of any such Guaranteed Obligations shall (except as may be otherwise
agreed between such Guaranteed Party and such Person) have and may exercise all of the rights and
benefits in respect thereof granted to such Guaranteed Party under this Guaranty or otherwise.
Each Guarantor hereby irrevocably waives notice of and consents in advance to the assignment as
provided above from time to time by any Guaranteed Party of all or any portion of the Guaranteed
Obligations held by it and of the corresponding rights and interests of such Guaranteed Party
hereunder in connection therewith. All representations, warranties, covenants and agreements
herein shall survive the execution and delivery of this Guaranty and any Guarantor Accession.

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     13. Governing Law; Consent to Jurisdiction; Appointment of Borrower as Representative,
Process Agent, Attorney-in-Fact.

     (a) This Guaranty shall be governed by, and construed and enforced in accordance with, the
laws of the State of North Carolina (without regard to the conflicts of law provisions thereof).

     (b) Each Guarantor irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the courts of the State of North Carolina sitting in Mecklenburg
County and of the United States District Court of the Western District of North Carolina, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Guaranty or any other Credit Document, or for recognition or enforcement of any judgment, and each
of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such state court or, to the fullest extent
permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Guaranty or in any other Credit Document shall affect any right that any Guaranteed Party may
otherwise have to bring any action or proceeding relating to this Guaranty or any other Credit
Document against any Guarantor or its properties in the courts of any jurisdiction.

     (c) Each Guarantor irrevocably and unconditionally waives, to the fullest extent permitted by
applicable law, any objection that it may now or hereafter have to the laying of venue of any
action or proceeding arising out of or relating to this Guaranty or any other Credit Document in
any court referred to in Section 13(b). Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

     (d) Each Guarantor hereby irrevocably designates and appoints the Borrower as its designee,
appointee and agent to receive on its behalf all service of process in any such action or
proceeding and any other notice or communication hereunder, irrevocably consents to service of
process in any such action or proceeding by registered or certified mail directed to the Borrower
at its address set forth in the Credit Agreement (and service so made shall be deemed to be
completed upon the earlier of actual receipt thereof or three (3) business days after deposit in
the United States mails, proper postage prepaid and properly addressed), and irrevocably agrees
that service so made shall be effective and binding upon such Guarantor in every respect and that
any other notice or communication given to the Borrower at the address and in the manner specified
herein shall be effective notice to such Guarantor. Nothing in this Section shall affect the right
of any party to serve legal process in any other manner permitted by law or affect the right of any
Guaranteed Party to bring any action or proceeding against any Guarantor in the courts of any other
jurisdiction.

     (e) Further, each Guarantor does hereby irrevocably make, constitute and appoint the Borrower
as its true and lawful attorney-in-fact, with full authority in its place and stead and in its
name, the Borrower’s name or otherwise, and with full power of substitution in the premises, from
time to time in the Borrower’s discretion to agree on behalf of, and sign the name of, such

11

 

Guarantor to any amendment, modification or supplement to, restatement of, or waiver or
consent in connection with, this Guaranty, any other Credit Document or any document or instrument
pursuant hereto or thereto, and to take any other action and do all other things on behalf of such
Guarantor that the Borrower may deem necessary or advisable to carry out and accomplish the
purposes of this Guaranty and the other Credit Documents. The Borrower will not be liable for any
act or omission nor for any error of judgment or mistake of fact unless the same shall occur as a
result of the gross negligence or willful misconduct of the Borrower. This power, being coupled
with an interest, is irrevocable by any Guarantor for so long as this Guaranty shall be in effect
with respect to such Guarantor. By its signature hereto, the Borrower consents to its appointment
as provided for herein and agrees promptly to distribute all process, notices and other
communications to each Guarantor.

     14. Arbitration; Preservation and Limitation of Remedies.

     (a) Upon demand of any party hereto, whether made before or after institution of any judicial
proceeding, any dispute, claim or controversy arising out of, connected with or relating to this
Guaranty or any other Credit Document (“Disputes”) between or among the Guarantors and the
Guaranteed Parties, or any of them, shall be resolved by binding arbitration as provided herein.
Institution of a judicial proceeding by a party does not waive the right of that party to demand
arbitration hereunder. Disputes may include, without limitation, tort claims, counterclaims,
claims brought as class actions, claims arising from documents executed in the future, disputes as
to whether a matter is subject to arbitration, or claims arising out of or connected with the
transactions contemplated by this Guaranty, the Credit Agreement and the other Credit Documents.
Arbitration shall be conducted under and governed by the Commercial Financial Disputes Arbitration
Rules (the “Arbitration Rules”) of the American Arbitration Association (the
“AAA”), as in effect from time to time, and the Federal Arbitration Act, Title 9 of the
U.S. Code, as amended. All arbitration hearings shall be conducted in the city in which the
principal office of the Administrative Agent is located. A hearing shall begin within ninety (90)
days of demand for arbitration and all hearings shall be concluded within 120 days of demand for
arbitration. These time limitations may not be extended unless a party shows cause for extension
and then for no more than a total of sixty (60) days. The expedited procedures set forth in Rule
51 et seq. of the Arbitration Rules shall be applicable to claims of less than
$1,000,000. All applicable statutes of limitation shall apply to any Dispute. A judgment upon the
award may be entered in any court having jurisdiction. The panel from which all arbitrators are
selected shall be comprised of licensed attorneys selected from the Commercial Financial Dispute
Arbitration Panel of the AAA. The single arbitrator selected for expedited procedure shall be a
retired judge from the highest court of general jurisdiction, state or federal, of the state where
the hearing will be conducted. Notwithstanding the foregoing, this arbitration provision does not
apply to Disputes under or related to any Hedge Agreement. The parties do not waive applicable
federal or state substantive law except as provided herein.

     (b) Notwithstanding the preceding binding arbitration provisions, the parties hereto agree to
preserve, without diminution, certain remedies that any party hereto may employ or exercise freely,
either alone, in conjunction with or during a Dispute. Any party hereto shall have the right to
proceed in any court of proper jurisdiction or by self-help to exercise or prosecute the following
remedies, as applicable: (i) all rights to foreclose against any Collateral by exercising a power
of sale granted pursuant to any of the Credit Documents or under

12

 

applicable law or by judicial foreclosure and sale, including a proceeding to confirm the
sale; (ii) all rights of self-help, including peaceful occupation of real property and collection
of rents, set-off, and peaceful possession of personal property; (iii) obtaining provisional or
ancillary remedies, including injunctive relief, sequestration, garnishment, attachment,
appointment of a receiver and filing an involuntary bankruptcy proceeding; and (iv) when
applicable, a judgment by confession of judgment. Any claim or controversy with regard to any
party’s entitlement to such remedies is a Dispute. Preservation of these remedies does not limit
the power of an arbitrator to grant similar remedies that may be requested by a party in a Dispute.
The parties hereto agree that no party shall have a remedy of punitive or exemplary damages
against any other party in any Dispute, and each party hereby waives any right or claim to punitive
or exemplary damages that it has now or that may arise in the future in connection with any
Dispute, whether such Dispute is resolved by arbitration or judicially. The parties acknowledge
that by agreeing to binding arbitration they have irrevocably waived any right they may have to a
jury trial with regard to a Dispute. The Guarantors agree, jointly and severally, to pay the
reasonable fees and expenses of counsel to the Guaranteed Parties in connection with any Dispute
subject to arbitration as provided herein.

     15. Notices. All notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier as follows: (a) if to any Guarantor, in care of the Borrower
and at the Borrower’s address for notices set forth in the Credit Agreement, and (b) if to any
Guaranteed Party, at its address for notices set forth in the Credit Agreement; in each case, as
such addresses may be changed from time to time pursuant to the Credit Agreement, and with copies
to such other Persons as may be specified under the provisions of the Credit Agreement. Notices
sent by hand or overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in the Credit Agreement
shall be effective as provided therein.

     16. Severability. To the extent any provision of this Guaranty is prohibited by or
invalid under the applicable law of any jurisdiction, such provision shall be ineffective only to
the extent of such prohibition or invalidity and only in such jurisdiction, without prohibiting or
invalidating such provision in any other jurisdiction or the remaining provisions of this Guaranty
in any jurisdiction.

     17. Construction. The headings of the various sections and subsections of this
Guaranty have been inserted for convenience only and shall not in any way affect the meaning or
construction of any of the provisions hereof. Unless the context otherwise requires, words in the
singular include the plural and words in the plural include the singular.

     18. Counterparts; Effectiveness. This Guaranty may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument. This Guaranty shall become effective, as to any Guarantor, upon the execution and
delivery by such Guarantor of a counterpart hereof or a Guarantor Accession.

13

 

     IN WITNESS WHEREOF, the parties have caused this Guaranty to be executed under seal by their
duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	SWISHER HYGIENE INC.

 	 
	 	By:  	/s/ Hugh H. Cooper
 	 
	 	 	Hugh H. Cooper 	 
	 	 	Chief Financial Officer 	 
	 
	 	GUARANTORS:

 	 
	 	SWISHER INTERNATIONAL, INC.

HB SERVICE, LLC

SWISHER HYGIENE FRANCHISE CORP.

SWISHER PEST CONTROL CORP.

SWISHER MAID, INC.

SHFC FINANCE, LLC

SERVICE MINNEAPOLIS, LLC

SHFC OPERATIONS, LLC

EXPRESS RESTAURANT EQUIPMENT

   SERVICE, INC.

SERVICE ARKANSAS, LLC

SERVICE BALTIMORE, LLC

SERVICE BEVERLY HILLS, LLC

SERVICE BIRMINGHAM, LLC

SERVICE CALIFORNIA, LLC

SERVICE CAROLINA, LLC

SERVICE CENTRAL FL, LLC

SERVICE CHARLOTTE LLC

SERVICE CHATTANOOGA, LLC

SERVICE CINCINNATI, LLC

SERVICE COLUMBIA, LLC

SERVICE COLUMBUS, LLC

SERVICE DC, LLC

SERVICE DENVER, LLC

 	 

	 	 	 	 	 
	 	By:  	/s/ Hugh H. Cooper
 	 
	 	 	Hugh H. Cooper 	 
	 	 	Chief Financial Officer 	 
	 

(Signatures continue on following page)

Signature Page to Guaranty Agreement

 

 

	 	 	 	 	 
	 	SERVICE FLORIDA, LLC

SERVICE GAINESVILLE, LLC

SERVICE GOLD COAST, LLC

SERVICE GREENSBORO, LLC

SERVICE GREENVILLE, LLC

SERVICE GULF COAST, LLC

SERVICE HAWAII, LLC

SERVICE HOUSTON, LLC

SERVICE LAS VEGAS, LLC

SERVICE LOUISVILLE, LLC

SERVICE MEMPHIS, LLC

SERVICE MICHIGAN, LLC

SERVICE MIDATLANTIC, LLC

SERVICE MIDWEST, LLC

SERVICE NASHVILLE, LLC

SERVICE NEW ENGLAND, LLC

SERVICE NEW MEXICO, LLC

SERVICE NEW ORLEANS, LLC

SERVICE NORTH, LLC

SERVICE NORTH-CENTRAL, LLC

SERVICE OKLAHOMA CITY, LLC

SERVICE PHILADELPHIA, LLC

SERVICE PHOENIX, LLC

SERVICE PORTLAND, LLC

SERVICE RALEIGH, LLC

SERVICE SALT LAKE CITY, LLC

SERVICE SEATTLE, LLC

SERVICE SOUTH, LLC

SERVICE ST. LOUIS, LLC

SERVICE TALLAHASSEE, LLC

SERVICE TAMPA, LLC

SERVICE TRI-CITIES, LLC

SERVICE VIRGINIA, LLC

SERVICE WEST COAST, LLC

SERVICE WESTERN PENNSYLVANIA, LLC

FOUR-STATE HYGIENE, INC.

INTEGRATED BRANDS INC.

ESKIMO PIE CORPORATION

 	 

	 	 	 	 	 
	 	By:  	/s/ Hugh H. Cooper
 	 
	 	 	Hugh H. Cooper 	 
	 	 	Chief Financial Officer 	 
	 

(Signatures continue on following page)

Signature Page to Guaranty Agreement

 

 

	 	 	 	 	 
	 	CHOICE ENVIRONMENTAL SERVICES,
INC.

CHOICE ENVIRONMENTAL SERVICES

   OF MIAMI, INC.

CHOICE ENVIRONMENTAL SERVICES

   OF BROWARD, INC.

CHOICE ENVIRONMENTAL SERVICES

   OF DADE COUNTY, INC.

CHOICE ENVIRONMENTAL SERVICES

   OF COLLIER, INC.

CHOICE RECYCLING SERVICES

   OF MIAMI, INC.

CHOICE ENVIRONMENTAL SERVICES

   OF ST. LUCIE, INC.

CHOICE RECYCLING SERVICES

   OF BROWARD, INC.

CHOICE ENVIRONMENTAL SERVICES

   OF LEE COUNTY, INC.

CHOICE ENVIRONMENTAL SERVICES

   OF HIGHLANDS COUNTY, INC.

 	 

	 	 	 	 	 
	 	By:  	/s/ Hugh H. Cooper
 	 
	 	 	Hugh H. Cooper 	 
	 	 	Chief Financial Officer 	 
	 

Signature Page to Guaranty Agreement

 

 

	 	 	 	 	 
	Accepted and agreed to:

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as 
Administrative Agent

 	 
	By:  	/s/ Cavan J. Harris
 	 
	 	Cavan J. Harris 	 
	 	Senior Vice President 	 

Signature Page to Guaranty Agreement

 

 

EXECUTION VERSION

EXHIBIT A

GUARANTOR ACCESSION

     THIS GUARANTOR ACCESSION (this “Accession”), dated as of _____________, ____, is
executed and delivered by [NAME OF NEW GUARANTOR], a ______________ corporation (the “New
Guarantor”), pursuant to the Guaranty Agreement referred to hereinbelow.

     Reference is made to the Credit Agreement, dated as of March 30, 2011, among Swisher Hygiene
Inc. (the “Borrower”), the Lenders party thereto, and the Administrative Agent (as amended,
modified, restated or supplemented from time to time, the “Credit Agreement”). In
connection with and as a condition to the initial and continued extensions of credit under the
Credit Agreement, the Borrower and certain of its Subsidiaries have executed and delivered a
Guaranty Agreement, dated as of March 30, 2011 (as amended, modified, restated or supplemented from
time to time, the “Guaranty Agreement”), pursuant to which such Subsidiaries have
guaranteed the payment in full of the obligations of the Borrower under the Credit Agreement and
the other Credit Documents (as defined in the Credit Agreement). Capitalized terms used herein
without definition shall have the meanings given to them in the Guaranty Agreement.

     The Borrower has agreed under the Credit Agreement to cause each of its future Subsidiaries to
become a party to the Guaranty Agreement as a guarantor thereunder (subject to certain excepts
regarding Foreign Subsidiaries). The New Guarantor is a Subsidiary of the Borrower. The New
Guarantor will obtain benefits as a result of the continued extension of credit to the Borrower
under the Credit Agreement, which benefits are hereby acknowledged, and, accordingly, desire to
execute and deliver this Accession. Therefore, in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and to
induce the Lenders to continue to extend credit to the Borrower under the Credit Agreement, the New
Guarantor hereby agrees as follows:

     1. The New Guarantor hereby joins in and agrees to be bound by each and all of the provisions
of the Guaranty Agreement as a Guarantor thereunder. In furtherance (and without limitation) of
the foregoing, pursuant to Section 1 of the Guaranty Agreement, the New Guarantor hereby
irrevocably, absolutely and unconditionally, and jointly and severally with each other Guarantor,
guarantees to the Guaranteed Parties the full and prompt payment, at any time and from time to time
as and when due (whether at the stated maturity, by acceleration or otherwise), of all of the
Guaranteed Obligations, and agrees to pay or reimburse upon demand all other obligations of the
Guarantors under the Guaranty Agreement, all on the terms and subject to the conditions set forth
in the Guaranty Agreement.

     2. The New Guarantor hereby represents and warrants that after giving effect to this
Accession, each representation and warranty related to it contained in the Credit Agreement is true
and correct with respect to the New Guarantor as of the date hereof.

 

 

     3. This Accession shall be a Credit Document (within the meaning of such term under the Credit
Agreement), shall be binding upon and enforceable against the New Guarantor and its successors and
assigns, and shall inure to the benefit of and be enforceable by each Guaranteed Party and its
successors and assigns. This Accession and its attachments are hereby incorporated into the
Guaranty Agreement and made a part thereof.

     IN WITNESS WHEREOF, the New Guarantor has caused this Accession to be executed under seal by
its duly authorized officer as of the date first above written.

	 	 	 	 	 
	 	[NAME OF NEW GUARANTOR]

 	 
	 	By:  	
 	 
	 
	 	 	Title:exv4w1

EXHIBIT 4.1

REGISTERED GLOBAL DEBT SECURITY

THIS DEBT SECURITY IS A GLOBAL DEBT SECURITY WITHIN THE MEANING OF THE FISCAL AGENCY AGREEMENT
(AS DEFINED IN THE ATTACHED CONDITIONS) AND IS REGISTERED IN THE NAME OF CEDE & CO., AS THE NOMINEE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”). THIS DEBT SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A DEBT SECURITY REGISTERED, AND NO TRANSFER OF THIS DEBT SECURITY
IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE CONDITIONS REFERRED TO WITHIN THIS
DEBT SECURITY. THIS DEBT SECURITY REPRESENTS “SECURITIES OF A SERIES” WITHIN THE MEANING OF THE
FISCAL AGENCY AGREEMENT.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, TO THE REPUBLIC OF
HUNGARY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

REPUBLIC OF HUNGARY

6.375% NOTES DUE 2021

PAYABLE AS TO PRINCIPAL AND INTEREST IN LAWFUL MONEY OF

THE UNITED STATES OF AMERICA

FULLY REGISTERED NOTES

			
	 	 	 
	Certificate No. 1
	 	US$500,000,000

CUSIP No. 445545AE6

COMMON CODE No. 061189050

ISIN No. US445545AE60

REGISTERED HOLDER: Cede & Co., or its registered assigns

PRINCIPAL SUM OF FIVE HUNDRED MILLION DOLLARS

 

 

THE REPUBLIC OF HUNGARY (the “Republic”), for value received, hereby promises to pay to the
registered owner specified above or registered assigns on March 29, 2021, upon presentation and
surrender of this Global Debt Security, the principal sum specified above in lawful money of the
United States of America at the office of Citibank, N.A. in London or The City of New York, New
York, and to pay interest thereon in like money in the manner provided in the Conditions endorsed
hereon from March 29, 2011 or from the most recent interest payment date to which interest has been
paid, or duly provided for, such interest to be payable semi-annually at the rate of 6.375% per
annum on March 29 and on September 29 in each year (each an “Interest Payment Date”) until the
principal of this Global Debt Security shall have been paid, the first of such payments of interest
to become due and payable on September 29, 2011. Notwithstanding anything to the contrary provided
herein, any payment of principal or interest falling due on a day which is not a Business Day (as
defined in the Fiscal Agency Agreement, dated as of January 29, 2010, between the Republic and
Citibank, N.A., as Fiscal Agent and Paying Agent) will be payable on the next succeeding Business
Day and no interest shall accrue for the intervening period, provided however that if that next
succeeding Business Day falls in the next calendar month, such payment of principal or interest
will be payable on the first preceding business day. The interest so payable on any such Interest
Payment Date will be paid to the person in whose name this Global Debt Security is registered at
the close of business on the fifteenth day (whether or not such day is a Business Day) preceding
such Interest Payment Date (each a “Record Date”).

This Global Debt Security is a direct, unconditional, unsecured and general obligation of the
Republic. This Global Debt Security ranks and will rank at least equally in right of payment with
all other unsecured and unsubordinated payment obligations of the Republic outstanding at the date
of issue of this Global Debt Security or issued thereafter, except for such obligations as may be
preferred by mandatory provisions of applicable law. This Global Debt Security will be backed by
the full faith and credit of the Republic. The Republic will give no preference to one obligation
over another on the basis of priority of issue date or currency of payment.

This Global Debt Security is not redeemable prior to maturity at the option of the Republic or of
the registered holders thereof.

This Global Debt Security is subject to the Conditions endorsed on the reverse hereof and shall not
be valid or enforceable for any purpose unless authenticated by the manual signature of the Fiscal
Agent (as defined in the Fiscal Agency Agreement). This Global Debt Security shall be dated the
date of its authentication by the Fiscal Agent.

 

 

IN WITNESS WHEREOF, the Republic has caused this Global Debt Security to be duly executed by the
facsimile signature of Mr. Gyula Pleschinger and a facsimile of the written, printed or stamped
name of the Republic to be hereon imprinted.

On behalf of the Republic of Hungary

	 	 	 	 	 

	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Name: Gyula Pleschinger	 	 
	 	 	Title: Chief Executive Officer of the Government Debt Management Agency Pte Ltd. of the
Republic of Hungary as attorney for the Republic of Hungary represented by its Minister for
National Economy	 	 

[Signature Page to Global Note]

 

 

	 	 	 	 	 

	FISCAL AGENT’S CERTIFICATE
	OF AUTHENTICATION
	 
	 	 	 	 
	This is a permanent global debt security evidencing
	the Securities of a Series referred to in the aforementioned
	Fiscal Agency Agreement.
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name: Citibank, N.A.	 	 
	 

	 	Title: Fiscal Agent	 	 
	 
	 	 	 	 
	Dated: March 29, 2011

[Signature Page to Certificate of Authentication]

 

 

THE CONDITIONS WITHIN REFERRED TO

	1	 	This Global Debt Security is one of the permanent global securities evidencing a duly
authorized issue of US$3,000,000,000 aggregate principal amount of 6.375% Notes due March 29,
2021 of the Republic (herein called the “Debt Securities”) as executed by the authorized
signatory of the Republic, Mr. Gyula Pleschinger (the “Republic Authorized Signatory”). The
Debt Securities are issued under the Fiscal Agency Agreement dated as of January 29, 2010 (as
the same may be amended, supplemented or otherwise modified from time to time, the “Fiscal
Agency Agreement”) between the Republic, and Citibank, N.A., as fiscal agent and paying agent
(the “Fiscal Agent”, “Agent” or “Registrar”), to which Fiscal Agency Agreement reference is
hereby made for a statement of the respective rights, duties, limitations of rights,
obligations and immunities thereunder of the Republic, the Agent and the holders of the Debt
Securities. Notices to the Fiscal Agent can be sent to Citibank, N.A., Attention: Citigroup
Centre, 21st Floor, Canada Wharf, London E14 5LB. The Debt Securities are issuable
as fully registered Debt Securities without coupons in minimum denominations of US$2,000 and
integral multiples of US$2,000 in lawful money of the United States of America. This Debt
Security is one of the series designated on the face hereof, initially limited to the
aggregate price amount of US$3,000,000,000.
	 
	 	 	The Republic may from time to time, without the consent of the holders of the Debt
Securities, create and issue further debt securities having the same terms and conditions as
the Debt Securities even if further Debt Securities have original issue discount for U.S.
federal income tax purposes and even if doing so may adversely affect the value of the
original Debt Securities. Any additional Debt Securities, together with the Debt Securities,
will constitute a single series of Debt Securities under the Fiscal Agency Agreement.
	 
	2	 	All payments made in respect of this Global Debt Security, including payments of
principal and interest, to a holder that is not a resident of the Republic, shall be made by
the Republic without withholding or deduction for or on account of any present or future
taxes, duties, levies or other governmental charges of whatever nature, imposed or levied by
the Republic or by any political subdivision or taxing authority within the Republic
(“Taxes”). In the event the Republic is required by law to deduct or withhold any such Taxes
from payments, the Republic will pay such additional amounts as may be necessary so that the
net amount received is equal to the amount provided for in this Global Debt Security to be
paid in the absence of such deduction or withholding. A holder will not be paid any additional
amounts however, if the Tax is:

	 	(i)	 	a Tax that would not have been imposed but for the holder’s present or former
connection (or a connection of the holder’s fiduciary, shareholder or other related
party) with the Republic, including the holder being or having been a citizen or
resident of the Republic or being or having been engaged in a trade or business or
present in the Republic or having, or having had, a permanent establishment in the
Republic;
	 
	 	(ii)	 	imposed on a payment to an individual and is required to be made pursuant to the
European Council Directive 2003/48/EC on taxation of savings income in the form on
interest payments or any other Directive implementing the conclusions of the EU Council
of Finance Ministers meeting of November 26 and 27, 2000 or any law implementing or
complying with, or introduced in order to conform to, such Directive;
	 
	 	(iii)	 	imposed because the holder presents a Debt Security for payment more than thirty
(30) days after the date on which the payment became due and payable;

 

 

	 	(iv)	 	an estate, inheritance, gift, sales, transfer or personal property tax,
assessment or governmental charge;
	 
	 	(v)	 	a tax, assessment or other governmental charge which is payable other than by
withholding;
	 
	 	(vi)	 	a Tax that would not have been imposed but for the failure to comply with
certification, information or other reporting requirements concerning the holder’s
nationality, residence or identity (or the nationality, residence or identity of the
beneficial owner of this Global Debt Security), if such holder’s compliance is required
by the laws of the Republic or of any political subdivision or taxing authority of the
Republic to avoid or reduce such tax;
	 
	 	(vii)	 	required to be withheld by any paying agent from a payment on this Global Debt
Security if such payment can be made without such withholding by another paying agent;
or
	 
	 	(viii)	 	are imposed as a result of any combination of the items listed above.

	 	 	Furthermore, no additional amounts shall be paid with respect to any Debt Security to a
holder who is a fiduciary or partnership or other than the sole beneficial owner of such
payment to the extent that the settlor with respect to such fiduciary, partner or beneficial
owner, as the case may be, would not have been entitled to payment of such additional amounts
if they held this Global Debt Security themselves.
	 
	3	 	As long as any Debt Security remains outstanding, the Republic will not allow any
Security Interest to be established on any of the Republic’s or the National Bank of Hungary’s
assets or revenues, present or future, in order to secure (i) any Public External Indebtedness
of the Republic having an original maturity of at least one year; or (ii) any Public External
Indebtedness of the National Bank of Hungary having an original maturity of at least one year
and incurred on or prior to December 31, 1998, unless the debt securities are secured equally
and rateably to this external indebtedness.
	 
	 	 	For these purposes:
	 
	 	 	“External Indebtedness” means any obligation in respect of existing or future Indebtedness
denominated or payable, or at the option of the holder thereof payable, in a currency other
than the lawful currency of the Republic of Hungary. If at any time the lawful currency of
the Republic of Hungary becomes the Euro, then External Indebtedness shall also include
Indebtedness expressed in or payable or optionally payable in Euro, if (i) such Indebtedness
was issued after the date on which the Euro became the lawful currency of the Republic of
Hungary, and (ii) more than 50% of the aggregate principal amount of such Indebtedness was
initially placed outside the Republic of Hungary.
	 
	 	 	“Public External Indebtedness” means External Indebtedness which: (i) is in the form of, or
represented by, bonds, notes or other similar securities; and (ii) is, or may be, quoted,
listed or ordinarily purchased and sold on any stock exchange, automated trading system or
over-the-counter or other securities market.
	 
	 	 	“Indebtedness” means any indebtedness of any Person (whether incurred as principal or surety)
for money borrowed.
	 
	 	 	“Person” means any individual, company, corporation, firm, partnership, joint venture,
association, organization, state or agency of a state or other entity, whether or not having
separate legal personality.

 

 

	 	 	“Security Interest” means any lien, pledge hypothecation, mortgage, security interest, charge
or other encumbrance or arrangement which has a similar legal and economic effect, and,
without limitation, anything analogous to any of the foregoing under the laws of any
jurisdiction.
	 
	4	 	An “Event of Default” means any of the following:

	 	(i)	 	the Republic fails to pay the principal of or interest on any of the Debt
Securities for more than 30 days after payment is due; or
	 
	 	(ii)	 	the Republic does not perform any of its other covenants under any of the Debt
Securities for more than 60 days after the holder of the Debt Security has given written
notice of the breach to the Republic at the Fiscal Agent’s corporate trust office.

	 	 	An “Event of Acceleration” means any of the following:

	 	(i)	 	any action, condition or any other thing which at any time is required to be
taken, fulfilled or done in order: (A) to enable the Republic lawfully to enter into,
exercise its rights and perform and comply with its obligations under and in respect of
the Debt Securities, (B) to ensure that those obligations are legal, valid, binding and
enforceable and (C) subject to their official translation into the Hungarian language,
to make the Debt Securities admissible in evidence in the courts of the Republic of
Hungary, is not taken, fulfilled or done within 30 days of receipt by the Republic of
written notice thereof; or
	 
	 	(ii)	 	it becomes illegal for the Republic to perform any of its obligations under the
Debt Securities or if these obligations become invalid and not remedied by the Republic
within 30 days’ written notice thereof.

	 	 	If an Event of Default or an Event of Acceleration occurs, all of the Debt Securities may, by
written notice addressed and delivered by the holders of at least 25% of the aggregate
principal amount of the outstanding Debt Securities to the Republic at the office of the
Fiscal Agent, be declared to be immediately due and payable, unless prior to such date the
Republic shall have remedied the Event of Default or Event of Acceleration for all the Debt
Securities.
	 
	 	 	If the Fiscal Agent receives notice in writing from holders of at least 50% in aggregate
principal amount of the outstanding Debt Securities and/or a resolution is passed at a
meeting of the holders of the Debt Securities, duly convened and held in accordance with the
Fiscal Agency Agreement, to the effect that the Event(s) of Default and/or Event(s) of
Acceleration giving rise to a declaration of acceleration made pursuant to the conditions
above is or are cured or is or are waived by them following any such declaration and that
such holders request the Fiscal Agent to rescind the relevant declaration, the Fiscal Agent
shall, by notice in writing to the Republic and the holders, rescind the relevant declaration
whereupon it shall be rescinded and shall have no further effect.
	 
	 	 	The Republic is not obliged to provide investors with periodic evidence that there are no
Events of Default and/or Events of Acceleration. Please also note that the Fiscal Agency
Agreement does not provide for the holders to be notified of the existence of an Event of
Default or an Event of Acceleration or for any right to examine the Debt Securities register.
	 
	5	 	The Fiscal Agency Agreement contains provisions for convening meetings of holders of
the Debt Securities to consider matters relating to the Debt Securities, including, without
limitation, the modification of any provision of the terms of the Debt Securities. Any such
modification may be made if, having been approved in writing by the Republic, it is sanctioned
by an Extraordinary Resolution. Such a meeting may be convened by the Republic and shall be
convened by the Fiscal Agent upon the request in writing of holders holding not less than 10%
of the aggregate principal amount of the outstanding Debt Securities. The quorum at any
meeting of holders

 

 

	 	 	convened to vote on an Extraordinary Resolution will be two or more persons holding or
representing not less than 50% of the aggregate principal amount of the outstanding Debt
Securities or, at any adjourned meeting of holders, two or more persons being or representing
holders, whatever the aggregate principal amount of the outstanding Debt Securities held or
represented; provided, however, that any proposals relating to a Reserved Matter may only be
sanctioned by an Extraordinary Resolution passed at a meeting of holders at which two or more
persons holding or representing not less than 75% of the aggregate principal amount of the
outstanding Debt Securities or, at any adjourned meeting, 25% of the aggregate principal
amount of the outstanding Debt Securities form a quorum. Any Extraordinary Resolution duly
passed at any such meeting shall be binding on all the holders of the Debt Securities,
whether present or not.
	 
	 	 	If a resolution is brought in writing, such a resolution in writing may be contained in one
document or several documents in the same form, each signed by or on behalf of one or more
holders.

	 	 	 	For these purposes:
	 
	 	 	 	“Extraordinary Resolution” means:
	 
	 	(i)	 	in relation to any Reserved Matter:
	 
	 	 	 	(x) a resolution passed at a meeting of holders duly convened and held in accordance
with the Fiscal Agency Agreement by a majority consisting of not less than 75% of the
aggregate principal amount of all outstanding Debt Securities; or
	 
	 	 	 	(y) a resolution in writing signed by or on behalf of holders of not less than 75% of
the aggregate principal amount of all outstanding Debt Securities; and
	 
	 	(ii)	 	in relation to any other matter:
	 
	 	 	 	(x) a resolution passed at a meeting of holders duly convened and held in accordance
with the Fiscal Agency Agreement by a majority consisting of not less than 66.67% of
the aggregate principal amount of the outstanding Debt Securities which are
represented at that meeting; or
	 
	 	 	 	(y) a resolution in writing signed by or on behalf of holders of not less than 66.67%
of the aggregate principal amount of all outstanding Debt Securities.
	 
	 	 	 	“Reserved Matter” means any proposal to:
	 
	 	(i)	 	change any date, or the method for determining the date, fixed for payment of
principal or interest in respect of the Debt Securities, to reduce the amount of
principal or interest payable on any date in respect of the Debt Securities or to alter
the method of calculating the amount of any payment in respect of the Debt Securities on
redemption or maturity or the date for any such payment;
	 
	 	(ii)	 	effect the exchange or substitution of the Debt Securities for, or the conversion
of the Debt Securities into, shares, bonds or other obligations or securities of the
Republic or any other person or body corporate formed or to be formed;
	 
	 	(iii)	 	reduce or cancel the principal amount of the Debt Securities;
	 
	 	(iv)	 	vary the currency or place of payment in which any payment in respect of the Debt
Securities is to be made;
	 
	 	(v)	 	amend the status of the Debt Securities;

 

 

	 	(vi)	 	amend the obligation of the Republic to pay additional amounts under Condition 2;
	 
	 	(vii)	 	amend the Events of Default or the Events of Acceleration set out in Condition
4;
	 
	 	(viii)	 	amend the law governing the Debt Securities, the courts to the jurisdiction to which
the Republic has submitted in the Debt Securities, the Republic’s obligation to maintain
an agent for service of process in the United States or the Republic’s waiver of
immunity, in respect of actions or proceedings brought by any holder of the Debt
Securities set out in Conditions 6 and 7;
	 
	 	(ix)	 	modify the provisions contained in Schedule I to the Fiscal Agency Agreement
concerning the quorum required at any meeting of holders of the Debt Securities or any
adjournment thereof or concerning the majority required to pass an Extraordinary
Resolution or the percentage of votes required for the taking of any action;
	 
	 	(x)	 	change the definition of “Extraordinary Resolution” or “outstanding” in these
conditions of the Debt Securities and/or in the Fiscal Agency Agreement;
	 
	 	(xi)	 	instruct any holder of the Debt Securities or committee appointed on behalf of
all holders of the Debt Securities pursuant to the Fiscal Agency Agreement to withdraw,
settle or compromise any proceeding or claim being asserted pursuant to Condition 4;
	 
	 	(xii)	 	confer upon any committee appointed pursuant to the Fiscal Agency Agreement any
powers or discretions which the holder of the Debt Securities could themselves exercise
by Extraordinary Resolution; or
	 
	 	(xiii)	 	amend this definition.

	 	 	The holders of the Debt Securities may, by a resolution passed at a meeting of holders duly
convened and held in accordance with the Fiscal Agency Agreement by a majority of at least
50% in aggregate principal amount of the Debt Securities then outstanding, or by notice in
writing to the Fiscal Agent signed by or on behalf of the holders of at least 50% in
aggregate principal amount of the Debt Securities then outstanding, appoint any persons as a
committee to represent the interests of the holders if any of the following events shall have
occurred:

	 	(i)	 	an Event of Default or an Event of Acceleration;
	 
	 	(ii)	 	any event or circumstance which would, with the giving of notice, lapse of time,
the issuing of a certificate and/or fulfillment of any other requirement provided for in
Condition 4 become an Event of Default or an Event of Acceleration; or
	 
	 	(iii)	 	any public announcement by the Republic, to the effect that the Republic is
seeking or intends to seek a restructuring of the Debt Securities (whether by amendment,
exchange offer or otherwise).

	 	 	Such committee in its discretion may, among other things, (i) engage legal advisers and
financial advisers to assist it in representing the interests of the holders of the Debt
Securities, (ii) adopt such rules as it considers appropriate regarding its proceedings and
(iii) enter into discussions with the Republic and/or other creditors of the Republic. The
Republic shall pay any reasonably incurred fees and expenses of any such committee
(including, without limitation, the fees and expenses of the committee’s legal advisers and
financial advisers, if any) within 30 days of the delivery to the Republic of a reasonably
detailed invoice and supporting documentation.
	 
	 	 	For the purposes of (i) ascertaining the right to attend and vote at any meeting of the
holders of the Debt Securities and (ii) Conditions 4 and 5, those Debt Securities (if any)
which are for the time being held by any person (including but not limited to the Republic)
for the benefit of the

 

 

	 	 	Republic or by any public body owned or controlled, directly or indirectly, by the Republic
shall (unless and until ceasing to be so held) be deemed not to remain outstanding.
	 
	6	 	As more fully set forth in the Fiscal Agency Agreement, the Republic has appointed the
Consulate General of the Republic of Hungary, 223 East 52nd Street, New York, New York 10022,
as its authorized agent upon which process may be served in any action arising out of or based
on the Debt Securities which may be instituted in any Federal or State court in New York, New
York by the holder of any Debt Security, and the Republic hereby expressly accepts the
jurisdiction of any such court in respect of any such action. Such appointment shall be
irrevocable so long as any of the Debt Securities remain outstanding, unless and until a
successor shall have been appointed by the Republic as its authorized agent for such purpose
and such successor authorized agent shall have accepted such appointment. Notwithstanding the
foregoing, any action arising out of or based on the Debt Securities may be instituted by the
holder of any Debt Security in any competent court in the Republic of Hungary. The Republic
hereby waives irrevocably, to the fullest extent permitted by law, any immunity from
jurisdiction to which it might otherwise be entitled in any such action which may be
instituted by the holder of any Debt Security in Federal or State court in New York, New York
or in any competent court in the Republic of Hungary. This waiver is intended to be effective
upon execution of this Global Debt Security without further act by the Republic before any
such court, and introduction of this Global Debt Security into evidence shall be final and
conclusive evidence of such waiver. Such waiver constitutes only a limited and specific waiver
for the purposes of the Debt Securities and under no circumstances shall it be interpreted as
a general waiver by the Republic or a waiver with respect to proceedings unrelated to the Debt
Securities. Neither such appointment nor such waiver shall be interpreted to include the
waiver of any immunity with respect to: (i) actions brought against the Republic under U.S.
State or Federal securities laws; (ii) present or future “premises of the mission” as defined
in the Vienna Convention on Diplomatic Relations signed in 1961; (iii) “Consular premises” as
defined in the Vienna Convention on Consular Relations signed in 1963; (iv) any other property
or assets used solely or mainly for official state purposes in the Republic or elsewhere; or
(v) military property or military assets or property or assets of the Republic related
thereto.
	 
	7	 	This Global Debt Security shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflicts of law principles of such
State, except with respect to its authorization and execution by the Republic, which shall be
governed by the laws of the Republic of Hungary.
	 
	8	 	Except as set forth in this Condition 8, the Debt Securities are issuable only as fully
registered global securities, without coupons, each registered in the name of DTC, a nominee
thereof or a successor to DTC or a nominee thereof, and

	 	(i)	 	no Global Debt Security may be transferred, except in whole and not in part, and
only to DTC, one or more nominees of DTC or one or more respective successors of DTC and
its nominees; and
	 
	 	(ii)	 	no Global Debt Security may be exchanged for any Debt Security other than another
Global Debt Security.

	 	 	Notwithstanding any other provisions of the Fiscal Agency Agreement or this Global Debt
Security, a Global Debt Security may be transferred to, or exchanged for registered Debt
Securities registered in the name of, a person other than DTC, a nominee of DTC or a
successor of DTC or its nominee if:

 

 

	 	(i)	 	DTC or each of Euroclear Bank S.A./N.V (“Euroclear”) and Clearstream Banking,
S.A. (“Clearstream”) (a) notifies the Republic that it is unwilling or unable to
continue as depository for such Global Debt Security or (b) ceases to be a clearing
agency registered under the Securities Exchange Act of 1934 at a time when it is
required to be, and in either such case (a) or (b) a successor depository is not
appointed by the Republic within 90 days after receiving such notice from Euroclear,
Clearstream or DTC or on becoming aware that DTC is no longer so registered;
	 
	 	(ii)	 	the Republic, in its sole discretion, instructs the Fiscal Agent in writing that
a Global Debt Security shall be so transferable and exchangeable; or
	 
	 	(iii)	 	there shall have occurred and be continuing an Event of Default and/or Event of
Acceleration with respect to the Debt Securities evidenced by this Global Debt Security.

	 	 	Registered Debt Securities issued in exchange for this Global Debt Security will be
registered in such names, and issued in such denominations (of $2,000 and integral multiples
thereof), as an authorized representative of DTC shall request.
	 
	9	 	The Republic will maintain for the Debt Securities (i) a Paying Agent and Registrar in
the City of London, England or The City and State of New York, and (ii) if the Debt Securities
are issued in definitive form, a transfer agent and paying agent in The City and State of New
York. The Republic will cause the Registrar to maintain a register in which shall be entered
the names and addresses of the holders of the Debt Securities of this issue and the
particulars of the Debt Securities held by them respectively and in which, subject to
Condition 8 above, transfers of the Debt Securities shall be registered. Such Paying Agent and
Registrar in England shall be Citibank, N.A., unless and until the Republic appoints a
different Paying Agent or Registrar (if applicable) in the same city. The Republic will
appoint a transfer agent and paying agent as or when required in The City and State of New
York. The holders of the Debt Securities may serve notices and demands with respect to the
Debt Securities at the office of any Paying Agent and Registrar maintained pursuant to this
Condition. In addition, all notices of the Republic will be published in a daily newspaper of
general circulation in London for so long as the Debt Securities are listed on the London
Stock Exchange and the rules of the London Stock Exchange so require. Any such notice shall be
deemed to have been given on the date of such publication or, if published more than once on
different dates, on the first date on which publication is made.
	 
	10	 	Subject to Condition 8 above, this Global Debt Security is transferable upon
presentation for such purpose at the office of the Registrar referred to in Condition 9,
accompanied by a written instrument of transfer in form approved by the Republic executed by
the registered holder hereof or by his duly authorized attorney, whereupon this Global Debt
Security will be canceled and one or more Debt Securities of this issue for an equal aggregate
principal amount will be delivered to the transferee.
	 
	11	 	Subject to Condition 8 above, Debt Securities of this issue upon presentation for such
purpose at the office of the Registrar referred to in Condition 9, accompanied by a written
instrument of transfer in form approved by the Republic executed by the registered holder or
by his duly authorized attorney, may be exchanged for an equal aggregate principal amount of
other fully registered Debt Securities of this issue in other authorized denominations.
	 
	12	 	Subject to Condition 8 above, the Republic will make transfers and exchanges of Debt
Securities of this issue as aforesaid upon compliance by the holders of the Debt Securities
with such reasonable regulations as may be prescribed by the Republic, and the Republic shall
not be entitled to make any charge in respect to transfers and exchanges of Debt Securities of
this

 

 

	 	 	issue, other than in respect of transfer taxes, if any. Each Debt Security issued upon any
such transfer or exchange shall be dated the date of its authentication by the Fiscal Agent.
	 
	13	 	Interest on the Debt Securities of this issue shall be computed on the basis of a
360-day year of twelve 30-day months. Unless other arrangements are made, payments of interest
on this Global Debt Security will be made by check drawn on a bank or trust company in The
City and State of New York payable to the order of the registered holder, or, in the case of
joint holders, to the order of all such joint holders or to such person as the joint holders
may request in writing, provided that payment of principal will be made only upon prior
presentation and surrender of this Global Debt Security at the office of a Paying Agent of the
Republic referred to in Condition 9. Such check shall be mailed to the address of the
registered holder as such address shall appear on the register maintained by the Registrar
pursuant to Condition 9 hereof, or, in the case of joint holders, to such registered address
of that joint holder who is first named in the register as one of such joint holders or to
such address specified in the aforementioned request of such joint holders. The registered
holder hereof or his legal personal representatives will be regarded as exclusively entitled
to the principal moneys hereby secured, and in the case of joint registered holders of this
Global Debt Security the said principal monies shall be deemed to be owing to them on joint
account. Any holder of Debt Securities, the aggregate principal amount of which equals or
exceeds U.S. $1,000,000, may, by written notice to the Paying Agent no later than the Record
Date therefor, elect to receive the interest payment in respect of such Debt Securities by
wire transfer in same-day funds to a bank account maintained by such holder in the United
States.
	 
	14	 	Claims for payment of the principal amount of this Debt Security shall become void 10
years after such principal amount became due and payable. Claims for payment of interest on
this Debt Security shall become void five years after relevant interest payment date on which
the interest became due and payable.
	 
	15	 	In case any Debt Security shall at any time become mutilated or destroyed or stolen or
lost, and such Debt Security, or evidence of the loss, theft or destruction thereof (together
with the indemnity hereinafter referred to and such other documents or proof as may be
required in the premises) shall be delivered to the Registrar referred to in Condition 9
above, a new Debt Security of like tenor and date will be issued by the Republic in exchange
for the Debt Security so mutilated, or in lieu of the Debt Security so destroyed or stolen or
lost, but, in the case of any destroyed or stolen or lost Debt Security, only upon receipt of
evidence satisfactory to the Republic that such Debt Security was destroyed or stolen or lost,
and, upon receipt also of indemnity satisfactory to the Republic. Mutilated Debt Securities
must be surrendered before replacement therefore will be issued. Application for replacement
may be made only by the registered holder thereof and shall be made at the office of the
Fiscal Agent specified in Condition 1. All expenses and reasonable charges associated with
procuring such indemnity and with the preparation, authentication and delivery of a new Debt
Security shall be borne by the owner of the Debt Security mutilated, destroyed, stolen or
lost.

ABBREVIATIONS

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

	 	 	 	 	 

	TEN COM-as tenants in common
	 	UNIF GIFT MIN ACT- __________ Custodian __________
	 
	 	(Cust)       
                   (Minor)

	 
	 	 	 	 
	TEN ENT-as tenants by the entireties
	 	Under Uniform   Gifts to Minors Act __________
	 
	 	          (State)

 

 

JT TEN-as joint tenants with right of survivorship and not as tenants in common.

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

TRANSFERS

For Value Received the undersigned hereby sells, assigns and transfers unto

 

 

 

name and address including zip code and social security number or other identifying number of
assignee the within Debt Security, hereby irrevocably constituting and appointing

 

 

 

Attorney to transfer the Debt Security on the register kept at the office of the Registrar of the
Republic for such purpose in the Borough of Manhattan, The City of New York and State of New York,
United States of America or London, with full power of substitution

dated this __________ day of _____, _____.

	 	 	 	 	 

	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Debt Security in every particular without alteration or enlargement or any change
whatsoever and must be guaranteed by a commercial bank or trust company having its principal office
or correspondent in The City of New York or by a member of the New York Stock Exchange.

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