Document:

Exhibit 10.4

 

Guarantee and Indemnity

 

Dated 8 October 2014

 

(1)                                 Baltic Trading Limited

 

(2)                                 ABN AMRO Capital USA LLC

 

 

 

Contents

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1
    	
Definitions and interpretation
    	
1
    
	
 
    	
 
    	
 
    
	
2
    	
Representations and warranties
    	
3
    
	
 
    	
 
    	
 
    
	
3
    	
Guarantee and indemnity
    	
4
    
	
 
    	
 
    	
 
    
	
4
    	
Preservation of Guarantor’s Liability
    	
5
    
	
 
    	
 
    	
 
    
	
5
    	
Preservation of Finance   Parties’ rights
    	
6
    
	
 
    	
 
    	
 
    
	
6
    	
Undertakings
    	
7
    
	
 
    	
 
    	
 
    
	
7
    	
Payments
    	
11
    
	
 
    	
 
    	
 
    
	
8
    	
Currency
    	
12
    
	
 
    	
 
    	
 
    
	
9
    	
Set-Off
    	
13
    
	
 
    	
 
    	
 
    
	
10
    	
Application of Moneys
    	
13
    
	
 
    	
 
    	
 
    
	
11
    	
Partial Invalidity
    	
14
    
	
 
    	
 
    	
 
    
	
12
    	
Further Assurance
    	
14
    
	
 
    	
 
    	
 
    
	
13
    	
Miscellaneous
    	
14
    
	
 
    	
 
    	
 
    
	
14
    	
Notices
    	
14
    
	
 
    	
 
    	
 
    
	
15
    	
Law and Jurisdiction
    	
14
    

 

 

Guarantee and Indemnity

 

Dated:  8 October 2014

 

Between:

 

(1)                                 Baltic Trading Limited, a company incorporated according to the law of the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH 96960 (the “Guarantor”)

 

In favour of:

 

(2)                                 ABN AMRO Capital USA LLC acting through its office at 100 Park Avenue, 24th Floor, NY 10017, United States of America (the “Security Agent”).

 

Whereas:

 

(A)                               Each of the banks listed in schedule 1 to the Loan Agreement (as defined below) (collectively the “Lenders”) has agreed to lend to Baltic Wasp Limited (the “Borrower”) its participation in a loan not exceeding sixteen million eight hundred thousand Dollars ($16,800,000) (the “Loan”) on the terms and subject to the conditions set out in a loan agreement dated 8 October 2014 made between the Borrower (as borrower), the Lenders (as lenders), ABN AMRO Capital USA LLC (as mandated lead arranger), ABN AMRO Capital USA L.L.C (as agent)  (the “Agent”), the Security Agent (as security agent), ABN AMRO Bank N.V. Singapore Branch as agent for China Export & Credit Insurance Corporation and ABN AMRO Bank N.V. as swap provider (the “Loan Agreement”).

 

(B)                               Pursuant to the Loan Agreement, and as a condition precedent to the several obligations of the Lenders to make the Loan available to the Borrower, the Borrower has, amongst other things, agreed to procure that the Guarantor execute and deliver this Guarantee and Indemnity in favour of the Security Agent as security agent for the Finance Parties.

 

This deed witnesses as follows:

 

1                                         Definitions and interpretation

 

1.1                               In this Guarantee and Indemnity:

 

“Collateral” shall mean all property (whether real or personal) with respect to which any Encumbrance have been granted (or purported to be granted) pursuant to any Security Document.

 

“Default Rate” means interest at the rate calculated in accordance with clause 7.8 of the Loan Agreement.

 

“Dividend” with respect to any Person shall mean that such Person has declared or paid a dividend or returned any equity capital to its stockholders, partners or members or authorised or made any other distribution, payment or delivery of property (other than common stock or the right to purchase any of such stock of such Person) or cash to its stockholders, partners or members as such, or redeemed, retired, purchased or otherwise acquired, directly or indirectly, for a consideration

 

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any shares of any class of its capital stock or partnership or membership interests outstanding on or after the date of the Loan Agreement (or any options or warrants issued by such Person with respect to its capital stock), or set aside any funds for any of the foregoing purposes, or shall have permitted any of its Subsidiaries to purchase or otherwise acquire for a consideration any shares of any class of the capital stock of, or equity interests in, such Person outstanding on or after the date of the Loan Agreement (or any options or warrants issued by such Person with respect to is capital stock or other equity interests).  Without limiting the foregoing, “Dividends” with respect to any Person shall also include all payments made or required to be made by such Person with respect to any stock appreciation rights, plans, equity incentive or achievement plans or any similar plans or setting side of any funds for the foregoing purposes.

 

“Equity Interests” means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any preferred stock, any limited or general partnership interest and any limited liability company membership interest.

 

“GAAP” means generally accepted accounting principles in the United States of America.

 

“Guarantor’s Liabilities” means all of the liabilities and obligations of the Guarantor to any of the Finance Parties under or pursuant to this Guarantee and Indemnity, from time to time, whether in respect of principal, interest, costs or otherwise and whether present, future, actual or contingent.

 

“Indebtedness” means the aggregate from time to time of the amount of the Loan outstanding; all accrued and unpaid interest on the Loan; and all other sums of any nature (together with all accrued and unpaid interest on any of those sums) payable by the Borrower to any of the Finance Parties under all or any of the Finance Documents.

 

“Original Financial Statements” means the audited consolidated financial statements of the Guarantor for the financial year ended 31 December 2013.

 

“Quarter Date” means each of 31 March, 30 June, 30 September and 31 December of each calendar year.

 

“Registration Rights Agreement” shall mean the Registration Rights Agreement as of 15 March 2010 by and between the Guarantor and Genco Investments LLC.

 

“Shareholder Rights Agreement” shall mean the shareholder rights agreement entered into as of 5 March 2010 by and between the Guarantor and Mellon Investor Services LLC (operating with the service name BNY Mellon Shareholder Services), a New Jersey limited liability company, as rights agent, without giving effect to any amendments, modifications or supplements thereto, without the consent of the Agent (acting on the instructions of the Majority Lenders).

 

1.2                               Unless otherwise specified in this Guarantee and Indemnity, or unless the context otherwise requires, all words and expressions defined in the Loan Agreement shall have the same meaning when used in this Guarantee and Indemnity.

 

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1.3                               In this Guarantee and Indemnity:

 

1.3.1                     words denoting the plural number include the singular and vice versa;

 

1.3.2                     words denoting persons include corporations, partnerships, associations of persons (whether incorporated or not) or governmental or quasi-governmental bodies or authorities and vice versa;

 

1.3.3                     references to Clauses are references to clauses of this Guarantee and Indemnity;

 

1.3.4                     references to this Guarantee and Indemnity include the recitals to this Guarantee and Indemnity;

 

1.3.5                     the headings and contents page(s) are for the purpose of reference only, have no legal or other significance, and shall be ignored in the interpretation of this Guarantee and Indemnity;

 

1.3.6                     references to any document (including, without limitation, to any of the Finance Documents) are, unless the context otherwise requires, references to that document as amended, supplemented, novated or replaced from time to time;

 

1.3.7                     references to statutes or provisions of statutes are references to those statutes, or those provisions, as from time to time amended, replaced or re-enacted; and

 

1.3.8                     references to any Finance Party include its successors, transferees and assignees.

 

2                                         Representations and warranties

 

The Guarantor represents and warrants to the Security Agent at the date of this Guarantee and Indemnity and (by reference to the facts and circumstances then pertaining) on the date of each Drawdown Notice and the first day of each Interest Period that:

 

2.1                               all representations and warranties given by the Borrower in the Loan Agreement in respect of the Guarantor and/or this Guarantee and Indemnity are and will remain correct and none of them is or will become misleading; and

 

2.2                               the Guarantor is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation and has the power to own its assets and to carry on its business as it is being conducted; and

 

2.3                               the Guarantor has the power to enter into and perform this Guarantee and Indemnity and has taken all necessary action to authorise its entry into and performance of this Guarantee and Indemnity; and

 

2.4                               the Guarantor is not insolvent or in liquidation or administration or subject to any other formal or informal insolvency procedure, and no receiver, administrative receiver, administrator, liquidator, trustee or analogous officer has been appointed in respect of the Guarantor or all or any part of its assets; and

 

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2.5                               this Guarantee and Indemnity constitutes legal, valid, binding and enforceable obligations of the Guarantor; and

 

2.6                               all consents, licences, approvals and authorisations of, or registrations with or declarations to, any governmental authority, bureau or agency which may be required in connection with the entry into, performance, validity or enforceability of this Guarantee and Indemnity have been obtained or made and remain in full force and effect and the Guarantor is not aware of any event or circumstance which could reasonably be expected adversely to affect the right of the Guarantor to hold and/or obtain renewal of any such consents, licences, approvals or authorisations; and

 

2.7                               no litigation, arbitration or administrative proceeding of or before any court, arbitral body or agency which if adversely determined, might reasonably be expected to have a material adverse effect on the business or financial condition of the Guarantor have (to the best of the Guarantor’s knowledge and belief) been started or threatened against the Guarantor; and

 

2.8                               the entry into and performance of this Guarantee and Indemnity will not conflict with the constitutional documents of the Guarantor or any law or regulation or document applicable to, or binding on, the Guarantor or any of its assets; and

 

2.9                               the Guarantor is not required to make any deduction or withholding from any payment which it may be obliged to make to any Finance Party under or pursuant to this Guarantee and Indemnity; and

 

2.10                        under the laws of the jurisdiction of incorporation of the Guarantor, it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this Guarantee and Indemnity that it be filed, recorded or enrolled with any court or other authority in any country or that any stamp, registration or similar tax be paid on or in relation to this Guarantee and Indemnity; and

 

2.11                        the Guarantor is not in breach of, or default under, any agreement of any sort binding on it or on all or any part of its assets which has or is reasonably likely to have a Material Adverse Effect; and

 

2.12                        the Guarantor is not aware of any material facts or circumstances which have not been disclosed to the Security Agent and which might, if disclosed, have adversely affected the decision of a person considering whether or not to make loan facilities of the nature contemplated by the Loan Agreement available to the Borrower; and

 

2.13                        the Guarantor has received a copy of the Loan Agreement and approves of, and agrees to, the terms and conditions of the Loan Agreement.

 

3                                         Guarantee and indemnity

 

The Guarantor:

 

3.1                               irrevocably and unconditionally guarantees the due and punctual observance and performance by the Borrower of all their obligations under the Finance Documents including, without limitation, the due and punctual payment of each and every part of the Indebtedness in accordance with the terms of the Finance Documents so that, if any of the Indebtedness is not paid when it is due and payable, whether on maturity or otherwise, the Guarantor will, immediately on demand, make such payment to the

 

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Security Agent in the manner specified by the Security Agent, together with interest on the amount demanded at the rate accruing on the same under the Loan Agreement from the date of demand until the date of payment, both before and after judgment; and

 

3.2                               agrees, as a separate and independent obligation, that, if any of the Indebtedness is not recoverable from the Guarantor under Clause 3.1 for any reason, the Guarantor will be liable as a principal debtor by way of indemnity for the same amount as that for which the Guarantor would have been liable had that Indebtedness been recoverable, and agrees to discharge its liability under this Clause 3.2 by making payment to the Security Agent immediately on demand together with interest on the amount demanded at the rate accruing on the same under the Loan Agreement from the date of demand until the date of payment, both before and after judgment.

 

4                                         Preservation of Guarantor’s Liability

 

4.1                               This Guarantee and Indemnity is a continuing security for the full amount of the Indebtedness from time to time until the expiry of the Facility Period.

 

4.2                               Any Finance Party may without the Guarantor’s consent and without notice to the Guarantor and without in any way releasing or reducing the Guarantor’s Liabilities:

 

4.2.1                     amend, vary, novate, or replace any of the Finance Documents (other than this Guarantee and Indemnity); and/or

 

4.2.2                     agree with the Borrower to increase or reduce the amount of the Loan, or vary the terms and conditions for its repayment or prepayment (including, without limitation, the rate and/or method of calculation of interest payable on the Loan); and/or

 

4.2.3                     allow any time or other indulgence to any of the other Security Parties under or in connection with any of the Finance Documents; and/or

 

4.2.4                     renew, vary, release or refrain from enforcing any of the Finance Documents (other than this Guarantee and Indemnity); and/or

 

4.2.5                     compound with any of the other Security Parties; and/or

 

4.2.6                     enter into, renew, vary or terminate any other agreement or arrangement with any of the other Security Parties; and/or

 

4.2.7                     do or omit or neglect to do anything which might, but for this provision, operate to release or reduce the liability of the Guarantor under this Guarantee and Indemnity.

 

4.3                               The Guarantor’s Liabilities shall not be affected by:

 

4.3.1                     the absence of, or any defective, excessive or irregular exercise of, any of the powers of any of the other Security Parties; nor

 

4.3.2                     any security given or payment made to any Finance Party by any of the other Security Parties being avoided or reduced under any law (whether English or foreign) relating to bankruptcy or insolvency or analogous circumstance in force from time to time; nor

 

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4.3.3                     any change in the constitution of the Guarantor or of any of the other Security Parties or of any Finance Party or the absorption of or amalgamation by any Finance Party in or with any other entity or the acquisition of all or any part of the assets or undertaking of any Finance Party by any other entity; nor

 

4.3.4                     the liquidation, administration, receivership, bankruptcy or insolvency of the Guarantor or any of the other Security Parties; nor

 

4.3.5                     any of the Finance Documents (other than this Guarantee and Indemnity) being defective, void or unenforceable, or the failure of any other person to provide any Finance Party with any security, guarantee or indemnity envisaged by the Loan Agreement; nor

 

4.3.6                     any composition, assignment or arrangement being made by any of the other Security Parties with any of its creditors; nor

 

4.3.7                     anything which would, but for this provision, have released or reduced the liability of the Guarantor to any Finance Party.

 

4.4                               Any Finance Party may continue the account(s) of the Borrower or open one or more new accounts for the Borrower notwithstanding any demand under this Guarantee and Indemnity, and the Guarantor’s liability at the date of demand shall not be released or affected by any subsequent payment into or out of any of the Borrower’s accounts with any Finance Party.

 

5                                         Preservation of Finance Parties’ rights

 

5.1                               This Guarantee and Indemnity is in addition to any other security, guarantee or indemnity now or in the future held by any of the Finance Parties in respect of the Indebtedness, whether from the Borrower, the Guarantor or any other person, and shall not merge with, prejudice or be prejudiced by, any such security, guarantee or indemnity or any contractual or legal right of any of the Finance Parties.

 

5.2                               Any release, settlement, discharge or arrangement relating to the Guarantor’s Liabilities shall be conditional on no payment, assurance or security received by any Finance Party in respect of the Indebtedness being avoided or reduced under any law (whether English or foreign) in force from time to time relating to bankruptcy, insolvency or any (in the opinion of the Security Agent) analogous circumstance, and, after any such avoidance or reduction, each Finance Party shall be entitled to exercise all of its rights, powers, discretions and remedies under or pursuant to this Guarantee and Indemnity and/or any other rights, powers, discretions or remedies which it would otherwise have been entitled to exercise, as if no release, settlement, discharge or arrangement had taken place.

 

5.3                               Following the full payment of the Indebtedness, the Security Agent shall be entitled to retain this Guarantee and Indemnity and any security which it may hold for the Guarantor’s Liabilities until the Security Agent is satisfied in its discretion that no Finance Party will have to make any payment under any law referred to in Clause 5.2.

 

5.4                               Until the expiry of the Facility Period the Guarantor shall not:

 

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5.4.1                     be entitled to participate in any sums received by any Finance Party in respect of any of the Indebtedness; nor

 

5.4.2                     be entitled to participate in any security held by any Finance Party in respect of any of the Indebtedness nor stand in the place of, or be subrogated for, any Finance Party in respect of any such security; nor

 

5.4.3                     take any step to enforce any claim against any of the other Security Parties (or their respective estates or effects), nor claim or exercise any right of set-off or counterclaim against any of the other Security Parties, nor make any claim in the bankruptcy or liquidation of any of the other Security Parties, in respect of any sums paid by the Guarantor to any Finance Party or in respect of any sum which includes the proceeds of realisation of any security at any time held by any Finance Party in respect of any of the Guarantor’s Liabilities; nor

 

5.4.4                     take any steps to enforce any other claim which it may have against any of the other Security Parties without the prior written consent of the Security Agent, and then only on such terms and subject to such conditions as the Security Agent may impose.

 

5.5                               Any Finance Party may, subject to the terms and provisions of the Finance Documents, but shall not be obliged to, resort for its own benefit to any other means of payment at any time and in any order it thinks fit without releasing or reducing the Guarantor’s Liabilities.

 

5.6                               Any Finance Party may enforce this Guarantee and Indemnity either before or after resorting to any other means of payment without entitling the Guarantor to any benefit from or share in any such other means of payment until the expiry of the Facility Period.

 

5.7                               The Guarantor agrees that it is, and will throughout the Facility Period remain, a principal debtor in respect of the Guarantor’s Liabilities.

 

5.8                               No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under this Guarantee and Indemnity shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Guarantee and Indemnity are cumulative and not exclusive of any rights or remedies provided by law.

 

6                                         Undertakings

 

6.1                               The Guarantor shall pay to the Security Agent on demand on a full indemnity basis all costs and expenses incurred by any Finance Party in or about or incidental to the exercise by it of its rights under this Guarantee and Indemnity, together with interest at the Default Rate on the amount demanded from the date of demand until the date of payment, both before and after judgment, which interest shall be compounded with the amount demanded at the end of such periods as the Security Agent may reasonably select.

 

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6.2                               The Guarantor has not taken, and will not take without the prior written consent of the Security Agent (and then only on such terms and subject to such conditions as the Security Agent may impose), any security from any of the other Security Parties in connection with this Guarantee and Indemnity, and any security taken by the Guarantor notwithstanding this Clause shall be held by the Guarantor in trust for the Finance Parties absolutely as a continuing security for the Guarantor’s Liabilities.

 

6.3                               The Guarantor will observe and perform any and all covenants and undertakings in the Loan Agreement whose observance and performance by the Guarantor the Borrower has undertaken to procure.

 

6.4                               The Guarantor shall without the consent of the Security Agent be permitted to:

 

6.4.1                     create or permit to arise any Encumbrance or other third party rights over any of its present or future assets or undertaking;

 

6.4.2                     transfer, lease or otherwise dispose of all or a substantial part of its assets, whether by one transaction or a number of transactions and whether related or not;

 

6.4.3                     declare or pay any Dividends or make any distribution;

 

6.4.4                     create, incur, assume or suffer to exist any indebtedness; and

 

6.4.5                     directly or indirectly lend money or make available credit or advance funds to any person or purchase or acquire any Equity Interests or make any capital contributions,

 

Provided that (a) no Event of Default has occurred and is continuing and the Guarantor is in compliance with its financial covenants contained in Clause 6.8 and the Borrower is in compliance with all the covenants contained in Clause 12 of the Loan Agreement and (b) the Guarantor may authorise, declare and distribute a dividend of Rights (as such term is defined in the Shareholder Rights Agreement and which are convertible into other securities set out in the Shareholder Rights Agreement) as contemplated by the Shareholder Rights Agreement.

 

The foregoing proviso shall not restrict the Guarantor from allowing any Permitted Encumbrance to arise and such Permitted Encumbrance shall not require the prior written consent of the Security Agent.

 

6.5                               The Guarantor shall supply to the Security Agent as soon as the same become available, but in any event within one hundred and eighty (180) days after the end of each of its financial years, its audited consolidated financial statements for that financial year (such financial statements to be supplemented by updated details of all off-balance sheet and time charter hire commitments in respect of the Vessel and the Other Vessel), together with a Compliance Certificate, signed by the Chief Financial Officer of the Guarantor, setting out (in reasonable detail) computations as to compliance with Clause 6.8.  Each set of financial statements:

 

6.5.1                     shall be certified by a director or officer of the Guarantor as fairly representing its financial condition as at the date at which those financial statements were drawn up; and

 

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6.5.2                     shall be prepared using GAAP, accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements unless, in relation to any set of financial statements, the Guarantor notifies the Security Agent that there has been a change in GAAP, the accounting practices or reference periods and the Guarantor’s auditors deliver to the Security Agent:

 

(a)                                 a description of any change necessary for those financial statements to reflect the GAAP, accounting practices and reference periods upon which the Original Financial Statements were prepared; and

 

(b)                                 sufficient information, in form and substance as may be reasonably required by the Security Agent, to enable the Security Agent to make an accurate comparison between the financial position indicated in those financial statements and that indicated in the Original Financial Statements.

 

6.6                               The Guarantor shall supply to the Security Agent as soon as the same become available, but in any event within forty five (45) days after the end of each quarter during each of its financial years, its unaudited quarterly consolidated financial statements for that quarter (such financial statements to be supplemented by updated details of all off-balance sheet and time charter hire commitments in respect of the Vessel and the Other Vessel), together with a Compliance Certificate, signed by the Chief Financial Officer of the Guarantor, setting out (in reasonable detail) computations as to compliance with Clause 6.8 as at the date as at which those financial statements were drawn up.

 

6.7                               The Guarantor shall supply to the Security Agent:

 

6.7.1                     all documents which could reasonably be expected to have a material effect on the business, assets, financial creditworthiness of the Guarantor or the ability of the Guarantor to perform its obligations under any Finance Document to which it is a party, which are dispatched by the Guarantor to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched.  For the avoidance of doubt, this obligation does not include circulars to shareholders of a routine and non-material nature; and

 

6.7.2                     promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any Security Party, and which (a) might, if adversely determined, have a materially adverse effect on the business, assets, financial condition or credit worthiness of that Security Party and (b) exceed the amount of two million Dollars ($2,000,000) in respect of the Guarantor and five hundred thousand Dollars ($500,000) in respect of the Borrower; and

 

6.7.3                     promptly, such further information regarding the financial condition, business and operations of any of the Security Parties as the Security Agent may reasonably request including, without limitation, cash flow analyses, quarterly reports on the financial and operating performance of the Vessel 

 

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and the Other Vessel, in form and substance satisfactory to the Security Agent.

 

6.8                               The Guarantor shall at all times during the Facility Period:-

 

(a)                                 maintain cash and Cash Equivalents (including available but undrawn working capital lines) in an amount of not less than seven hundred and fifty thousand Dollars ($750,000) per Fleet Vessel; and

 

(b)                                 not permit its maximum Leverage to exceed seventy per cent (70%); and

 

(c)                                  not permit its Consolidated Net Worth to be less than the Minimum Consolidated Net Worth,

 

which covenants shall be tested upon receipt of the interim financial statements delivered to the Agent pursuant to Clause 6.6 for a period ending on each Quarter Date.

 

6.9                               In the event that any member of the Group enters into a loan facility with other lenders or financial institutions on terms and conditions such that any financial covenants analogous to those covenants in Clause 6.8 are, to the Agent’s opinion, on more favourable terms to those lenders or financial institutions, the Guarantor shall provide the same terms and conditions to the Finance Parties on the terms and conditions to be agreed between the Agent (acting on the instructions of the Lenders) and the Guarantor.

 

6.10

 

6.10.1              Other than in compliance with Clause 6.10.2, the Guarantor will not, and will not permit the Borrower to, amend, modify or change its certificate of incorporation, certificate of formation (including, without limitation, by the filing or modification of any certificate of designation), By-Laws, limited liability company agreement, partnership agreement (or equivalent organizational documents) or any agreement entered into by it with respect to its capital stock or membership interests (or equivalent equity interests), or enter into any new agreement with respect to its capital stock or membership interests (or equivalent interests), other than the Shareholders Rights Agreement or the Registration Rights Agreement or any amendments, modifications or changes or any such new agreements which are not in any way materially adverse to the interests of the Lenders.

 

6.10.2              The Guarantor shall not, without the prior written consent of the Agent and Sinosure, enter into any amalgamation, demerger, merger or corporate reconstruction that may (in the sole determination of the Agent acting reasonably) adversely impact the Guarantor’s ability to perform its obligations under the Finance Documents.

 

6.10.3              Notwithstanding the foregoing provisions of this Clause 6.10, upon not less than 30 days prior written notice to the Agent and so long as no Default or Event of Default exists and is continuing, the Borrower may, subject to the 

 

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Agent’s consent (x) change its jurisdiction of organization to another jurisdiction and (y) change its form of organisation to another form, in each case to the extent satisfactory to the Agent, provided that, the Borrower shall promptly take all actions reasonably deemed necessary by the Security Agent to preserve, protect and maintain, without interruption, the security interest and Encumbrance of the Security Agent in any Collateral owned by the Borrower to the satisfaction of the Security Agent, and the Borrower shall have provided to the Agent and the Lenders such opinions of counsel as may be reasonably requested by the Agent to assure itself that the conditions of this proviso have been satisfied.

 

6.11                        The Guarantor will not engage in any business other than the businesses in which it is engaged in as of the date of the Loan Agreement and activities directly related thereto, and similar or related businesses; the Guarantor will not (i) be engaged in (A) the retailing, wholesaling, trading or importing of goods or services for or with residents of the Republic of the Marshall Islands; (B) any extractive industry in the Republic of Marshall Islands; (C) any regulated professional service activity in the Republic of the Marshall Islands; (D) the export of any commodity or goods manufactured, processed, mined or made in the Republic of the Marshall Islands; or (E) the ownership of real property in the Republic of the Marshall Islands; and (ii) do business in the Republic of the Marshall Islands except that the Guarantor and their Subsidiaries may (A) have its registered office in the Republic of the Marshall Islands and maintain its registered agent in the Republic of the Marshall Islands as required by the provisions of the Associations Law of 1990 of the Republic of the Marshall Islands, as amended; and (B) secure and maintain registry in the Republic of the Marshall Islands solely related to the operation or disposition of any vessel outside of the Republic of the Marshall Islands.

 

7                                         Payments

 

7.1                               All amounts payable by the Guarantor under or pursuant to this Guarantee and Indemnity shall be paid to such accounts at such banks as the Security Agent may from time to time direct to the Guarantor in the relevant currency in same day funds for immediate value.  Payment shall be deemed to have been received on the date on which the Security Agent receives authenticated advice of receipt, unless that advice is received by the Security Agent on a day other than a Business Day or at a time of day (whether on a Business Day or not) when the Security Agent in its discretion considers that it is impossible or impracticable to utilise the amount received for value that same day, in which event the payment in question shall be deemed to have been received on the Business Day next following the date of receipt of advice by the Security Agent.

 

7.2                               All payments to be made by the Guarantor pursuant to this Guarantee and Indemnity shall, subject only to Clause 7.3, be made free and clear of and without deduction for or on account of any taxes or other deductions, withholdings, restrictions, conditions, set-offs or counterclaims of any nature.

 

7.3                               If at any time any law requires (or is interpreted to require) the Guarantor to make any deduction or withholding from any payment, or to change the rate or manner in which any required deduction or withholding is made, the Guarantor will promptly notify the Security Agent and, simultaneously with making that payment, will pay 

 

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whatever additional amount (after taking into account any additional taxes on, or deductions or withholdings from, or restrictions or conditions on, that additional amount) is necessary to ensure that, after making the deduction or withholding, each relevant Finance Party receives a net sum equal to the sum which it would have received had no deduction or withholding been made.

 

7.4                               If at any time the Guarantor is required by law to make any deduction or withholding from any payment to be made by it pursuant to this Guarantee and Indemnity, the Guarantor will pay the amount required to be deducted or withheld to the relevant authority within the time allowed under the applicable law and will, no later than thirty days after making that payment, deliver to the Security Agent an original receipt issued by the relevant authority, or other evidence acceptable to the Security Agent, evidencing the payment to that authority of all amounts required to be deducted or withheld.

 

7.5                               If the Guarantor pays any additional amount under Clause 7.3, and a Finance Party subsequently receives a refund or allowance from any tax authority which that Finance Party identifies as being referable to that increased amount so paid by the Guarantor, that Finance Party shall, as soon as reasonably practicable, pay to the Guarantor an amount equal to the amount of the refund or allowance received, if and to the extent that it may do so without prejudicing its right to retain that refund or allowance and without putting itself in any worse financial position than that in which it would have been had the relevant deduction or withholding not been required to have been made.  Nothing in this Clause 7.5 shall be interpreted as imposing any obligation on any Finance Party to apply for any refund or allowance nor as restricting in any way the manner in which any Finance Party organises its tax affairs, nor as imposing on any Finance Party any obligation to disclose to the Guarantor any information regarding its tax affairs or tax computations.

 

7.6                               Any certificate or statement signed by an authorised signatory of the Security Agent purporting to show the amount of the Indebtedness or of the Guarantor’s Liabilities (or any part of any of them) or any other amount referred to in any of the Finance Documents shall, save for manifest error or on any question of law, be conclusive evidence as against the Guarantor of that amount.

 

8                                         Currency

 

8.1                               The Guarantor’s liability under this Guarantee and Indemnity is to discharge the Indebtedness in the currency in which it is expressed to be payable (the “Agreed Currency”).

 

8.2                               If at any time any Finance Party receives (including by way of set-off) any payment by or on behalf of the Guarantor in a currency other than the Agreed Currency, that payment shall take effect as a payment to that Finance Party of the amount in the Agreed Currency which that Finance Party is able to purchase (after deduction of any relevant costs) with the amount of the payment so received in accordance with its usual practice.

 

8.3                               To the extent that any payment to any Finance Party (whether by the Guarantor or any other person and whether under any judgment or court order or otherwise) in a currency other than the Agreed Currency shall on actual conversion into the Agreed Currency fall short of the relevant amount of the Indebtedness expressed in the 

 

12

 

Agreed Currency, then the Guarantor as a separate and independent obligation will indemnify that Finance Party against the shortfall.

 

9                                         Set-Off

 

9.1                               The Guarantor irrevocably authorises each Finance Party at any time to set off without notice any sums then due and payable by the Guarantor to that Finance Party under this Guarantee and Indemnity (irrespective of the branch or office, currency or place of payment) against any credit balance from time to time standing on any account of the Guarantor (whether current or otherwise, whether or not subject to notice and whether or not that credit balance is then due to the Guarantor) with any branch of that Finance Party in or towards satisfaction of the Guarantor’s Liabilities and, in the name of that Finance Party or the Guarantor, to do all acts (including, without limitation, purchasing or converting or exchanging any currency) which may be required to effect such set-off.

 

9.2                               Despite any term to the contrary in relation to any deposit or credit balance at any time on any account of the Guarantor with any Finance Party, no such deposit or credit balance shall be repayable or capable of being assigned, mortgaged, charged or otherwise disposed of or dealt with by the Guarantor until the Guarantor’s Liabilities have been discharged in full, but each Finance Party may from time to time permit the withdrawal of all or any part of any such deposit or balance without affecting the continued application of this Clause.

 

10                                  Application of Moneys

 

10.1                        All sums which any Finance Party (other than the Security Agent) receives (including by way of set-off) under or in connection with this Guarantee and Indemnity, otherwise than by payment from the Security Agent, shall be paid to the Security Agent immediately on receipt, and that payment to the Security Agent shall be deemed to have been made by the Guarantor rather than by the receiving Finance Party.

 

10.2                        All sums which the Security Agent receives under or in connection with this Guarantee and Indemnity shall, unless otherwise agreed by the Security Agent or otherwise provided in the Loan Agreement, be applied by the Security Agent in or towards satisfaction of, or retention on account for, the Guarantor’s Liabilities in such manner as the Security Agent may in its discretion determine.

 

10.3                        The Security Agent may place any money received by it under or in connection with this Guarantee and Indemnity to the credit of a suspense account on such terms and subject to such conditions as the Security Agent may in its discretion determine for so long as the Security Agent thinks fit without any obligation in the meantime to apply that money in or towards discharge of the Indebtedness, and, despite such payment, the Security Agent may claim against any of the other Security Parties or prove in the bankruptcy, liquidation or insolvency of any of the other Security Parties for the whole of the Indebtedness at the date of the Security Agent’s demand for payment pursuant to this Guarantee and Indemnity, together with all interest, commission, charges and expenses accruing subsequently.

 

13

 

11                                  Partial Invalidity

 

If, at any time, any provision of this Guarantee and Indemnity is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

12                                  Further Assurance

 

The Guarantor agrees that from time to time on the written request of the Security Agent it will immediately execute and deliver to the Security Agent all further documents which the Security Agent may require for the purpose of perfecting or protecting the security intended to be created by this Guarantee and Indemnity.

 

13                                  Miscellaneous

 

13.1                        All the covenants and agreements of the Guarantor in this Guarantee and Indemnity shall bind the Guarantor and its successors and permitted assignees and shall inure to the benefit of the Finance Parties and their respective successors, transferees and assignees.

 

13.2                        The representations and warranties on the part of the Guarantor contained in this Guarantee and Indemnity shall survive the execution of this Guarantee and Indemnity.

 

13.3                        No variation or amendment of this Guarantee and Indemnity shall be valid unless in writing and signed on behalf of the Guarantor and the Security Agent.

 

13.4                        Other than the Finance Parties, a person who is not a party to this Guarantee and Indemnity has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Guarantee and Indemnity.

 

14                                  Notices

 

The provisions of clause 18 of the Loan Agreement shall apply (mutatis mutandis) to this Guarantee and Indemnity as if it were set out in full with references to this Guarantee and Indemnity substituted for references to the Loan Agreement and with references to the Guarantor substituted for references to the Borrower.

 

15                                  Law and Jurisdiction

 

15.1                        This Guarantee and Indemnity and any non-contractual obligations arising from or in connection with it shall in all respects be governed by and interpreted in accordance with English law.

 

15.2                        For the exclusive benefit of the Security Agent, the Guarantor irrevocably agrees that the courts of England are to have exclusive jurisdiction to settle any dispute (a) arising from or in connection with this Guarantee and Indemnity or (b) relating to any non-contractual obligations arising from or in connection with this Guarantee and Indemnity and that any proceedings may be brought in those courts.

 

15.3                        Nothing contained in this Clause shall limit the right of the Security Agent to commence any proceedings against the Guarantor in any other court of competent 

 

14

 

jurisdiction nor shall the commencement of any proceedings against the Guarantor in one or more jurisdictions preclude the commencement of any proceedings in any other jurisdiction, whether concurrently or not.

 

15.4                        The Guarantor irrevocably waives any objection which it may now or in the future have to the laying of the venue of any proceedings in any court referred to in this Clause and any claim that those proceedings have been brought in an inconvenient or inappropriate forum, and irrevocably agrees that a judgment in any proceedings commenced in any such court shall be conclusive and binding on it and may be enforced in the courts of any other jurisdiction.

 

15.5                        Without prejudice to any other mode of service allowed under any relevant law, the Guarantor:

 

15.5.1              irrevocably appoints WFW Legal Services Limited present of 15 Appold Street, London EC2A 2HB, England as its agent for service of process in relation to any proceedings before the English courts; and

 

15.5.2              agrees that failure by a process agent to notify the Guarantor of the process will not invalidate the proceedings concerned.

 

15

 

In witness of which this Guarantee and Indemnity has been duly executed and delivered as a deed the day and year first before written.

 

	
Signed and Delivered
    	
/s/   John C. Wobensmith
    
	
as a Deed
    	
 
    
	
by Baltic Trading Limited
    	
 
    
	
acting by John C. Wobensmith
    	
 
    
	
its duly authorised President /
    	
 
    
	
Chief Financial Officer / Secretary / 
    	
 
    
	
Treasurer
    	
 
    
	
in the presence of:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
signature
    	
 
    
	
of   witness
    	
/s/   Apostolos Zafolias
    	
 
    
	
 
    	
 
    
	
name
    	
Apostolos   Zafolias
    	
 
    
	
 
    	
print   name of witness
    	
 
    
	
 
    	
 
    	
 
    
	
address
    	
299   Park Avenue, NY 10171
    	
 
    

 

16EX-4.1

 Exhibit 4.1 
 APPLE INC. 
 Officer’s Certificate 

Pursuant to Sections 102 and 301 of the Indenture dated as of April 29, 2013 (the “Indenture”) by
and between Apple Inc. (the “Issuer”) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), the undersigned officer does hereby certify, in connection with the issuance of
(i) €1,400,000,000 aggregate principal amount of 1.000% Notes due 2022 (“2022 Notes”) and (ii) €1,400,000,000 aggregate principal amount of 1.625% Notes due 2026 (“2026 Notes” and, together with
the 2022 Notes, the “Notes”), that the terms of the Notes are as follows: 
 Capitalized terms
used but not otherwise defined herein shall have the meanings specified in the Indenture. 
  

	 1.
	 2022 Notes 

  

			
		
	 Title:
	    	 1.000% Notes due 2022

		
	 Issuer:
	    	 Apple Inc.

		
	 Trustee, Registrar, Transfer Agent, and Authenticating Agent
	    	 The Bank of New York Mellon Trust Company, N.A.

		
	 Paying Agent
	    	 The Bank of New York Mellon, London Branch

		
	 Aggregate Principal Amount at Maturity:
	    	 €1,400,000,000

		
	 Principal Payment Date:
	    	 November 10, 2022

		
	 Interest:
	    	 1.000% per annum

		
	 Date from which Interest will Accrue:
	    	 November 10, 2014

		
	 Interest Payment Dates:
	    	 Annually on November 10, commencing November 10, 2015

			
		
	 Optional Redemption:
	    	 The Issuer may at its option redeem the 2022 Notes in whole or in part, at any time or from time to time prior to their maturity, on at least 30 days, but not
more than 60 days, prior notice mailed or electronically delivered to the registered address of each holder of record of the 2022 Notes, at a redemption price, calculated by the Issuer, equal to the greater of:

		
		    	 (i) 100% of the principal amount of the 2022 Notes being redeemed; or

		
		    	 (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes 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 in
the 2022 Notes), plus 5 basis points,
  
 plus,
in each case, accrued and unpaid interest thereon to the date of redemption.

		
	 Redemption for tax purposes:
	    	 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 any political
subdivision or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes
effective on or after November 4, 2014, the Issuer becomes, or based upon a written opinion of independent counsel selected by the Issuer, will become obligated to pay additional amounts as described under Section 8 of Exhibit A hereto with respect
to the 2022 Notes, then the Issuer may at its option redeem, in whole, but not in part, the 2022 Notes 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 interest
accrued but unpaid on the 2022 Notes to the date fixed for redemption.

		
	 Conversion:
	    	 None

		
	 Sinking Fund:
	    	 None

		
	 Denominations:
	    	 €100,000 and any integral multiple of €1,000 in excess thereof.

		
	 Miscellaneous:
	    	 The terms of the 2022 Notes shall include such other terms as are set forth in the form of 2022 Notes attached hereto as Exhibit A and in the
Indenture. In addition, the global notes for the 2022 Notes shall include the following language: “To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall
govern.”

  
 2 

			
		
		    	 “Depositary” means “EUROCLEAR/CLEARSTREAM” (as defined in the 2022 Note)

		
		    	 Solely with respect to the 2022 Notes, Section 305(2) of the Indenture shall be amended and restated as follows:

		
		    	 “Notwithstanding any other provision in this Indenture, and subject to such applicable provisions, if any, as may be specified
as contemplated by Section 301, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any Person other than the Depositary
for such Global Security or a nominee thereof unless (A) such Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security, (B) the Depositary ceases to be eligible under the
Indenture and the Company does not appoint a successor Depositary within 90 days (C) there shall have occurred and be continuing an Event of Default with respect to such Global Security, (D) the Company so directs the Trustee by a Company
Order or (E) there shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 301.”

		
		    	 Solely with respect to the 2022 Notes, the final sentence of Section 1304(1) of the Indenture shall be amended and restated as
follows:

		
		    	 “As used herein, “U.S. Government Obligation” means (x) any security that is (i) a direct
obligation of the German government or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the German government the payment of which is fully and unconditionally guaranteed by the German
government or the central bank of the German Government, which, 

  
 3 

			
		    	 in either case (x)(i) or (ii), is not callable or redeemable at the option of the issuer thereof, and (y) certificates, depositary
receipts or other instruments which evidence a direct ownership interest in obligations described in clause (x)(i) or (x)(ii) above or in any specific principal or interest payments due in respect thereof.”

  

	 2.
	 2026 Notes 

  

			
	 Title:
	    	 1.625% Notes due 2026

		
	 Issuer:
	    	 Apple Inc.

		
	 Trustee, Registrar, Transfer Agent and Authenticating Agent
	    	 The Bank of New York Mellon Trust Company, N.A.

		
	 Paying Agent
	    	 The Bank of New York Mellon, London Branch

		
	 Aggregate Principal Amount at Maturity.
	    	 €1,400,000,000

		
	 Principal Payment Date:
	    	 November 10, 2026

		
	 Interest:
	    	 1.625% per annum

		
	 Date from which Interest will Accrue:
	    	 November 10, 2014

		
	 Interest Payment Dates:
	    	 Annually on November 10, commencing November 10, 2015

		
	 Optional Redemption:
	    	 The Issuer may at its option redeem the 2026 Notes in whole or in part, at any time or from time to time prior to
their maturity, on at least 30 days, but not more than 60 days, prior notice mailed or electronically delivered to the registered address of each holder of record of the 2026 Notes, at a redemption price, calculated by the Issuer, equal to the
greater of:
  
 (i) 100% of the principal amount
of the 2026 Notes being redeemed; or
  
 (ii) the
sum of the present values of the remaining scheduled payments of principal and interest on the notes 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 in the 2026 Notes), plus 10 basis points,

  
 4 

			
		
		    	 plus, in each case, accrued and unpaid interest thereon to the date of redemption.

		
	 Redemption for tax purposes:
	    	 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 any political
subdivision or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes
effective on or after November 4, 2014, the Issuer becomes, or based upon a written opinion of independent counsel selected by the Issuer, will become obligated to pay additional amounts as described under Section 8 of Exhibit B hereto with respect
to the 2026 Notes, then the Issuer may at its option redeem, in whole, but not in part, the 2026 Notes 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 interest
accrued but unpaid on the 2026 Notes to the date fixed for redemption.

		
	 Conversion:
	    	 None

		
	 Sinking Fund:
	    	 None

		
	 Denominations:
	    	 €100,000 and any integral multiple of €1,000 in excess thereof.

		
	 Miscellaneous:
	    	 The terms of the 2026 Notes shall include such other terms as are set forth in the form of 2026 Notes attached hereto as Exhibit B and in the
Indenture. In addition, the global notes for the 2026 Notes shall include the following language: “To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern.”

		
		    	 “Depositary” means “EUROCLEAR/CLEARSTREAM” (as defined in the 2026
Note)

  
 5 

			
		
		    	 Solely with respect to the 2026 Notes, Section 305(2) of the Indenture shall be amended and restated as follows:

		
		    	 “Notwithstanding any other provision in this Indenture, and subject to such applicable provisions, if any, as may be specified
as contemplated by Section 301, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any Person other than the Depositary for
such Global Security or a nominee thereof unless (A) such Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security, (B) the Depositary ceases to be eligible under the Indenture and the
Company does not appoint a successor Depositary within 90 days (C) there shall have occurred and be continuing an Event of Default with respect to such Global Security, (D) the Company so directs the Trustee by a Company Order or (E) there shall
exist such circumstances, if any, in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 301.”

		
		    	 Solely with respect to the 2026 Notes, the final sentence of Section 1304(1) of the Indenture shall be amended and restated as
follows:

		
		    	 “As used herein, “U.S. Government Obligation” means (x) any security that is (i) a direct
obligation of the German government or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the German government the payment of which is fully and unconditionally guaranteed by the German
government or the central bank of the German Government, which, in either case (x)(i) or (ii), is not callable or redeemable at the option of the issuer thereof, and (y) certificates, depositary receipts or other instruments which evidence a
direct ownership interest in obligations described in clause (x)(i) or (x)(ii) above or in any specific principal or interest payments due in respect thereof.”

 Subject to the covenants described in the Indenture, as amended or supplemented from time
to time, the Issuer shall be entitled, subject to authorization by the Board of Directors of the 

  
 6 

 
Issuer and an Officer’s Certificate, to issue additional notes from time to time under each series of notes issued hereby. Any such additional notes of a series shall have identical terms as
the 2022 Notes and 2026 Notes, as the case may be, issued on the issue date, other than with respect to the date of issuance, the date interest begins to accrue, the first interest payment date, and the issue price (together, the “Additional
Notes”); provided that the Additional Notes shall have a separate ISIN number unless the Additional Notes are fungible with the Outstanding Notes for U.S. federal income tax purposes. Any Additional Notes will be issued in accordance with
Section 301 of the Indenture. 
 The officer has read and understands the provisions of the Indenture and
the definitions relating thereto. The statements made in this Officer’s Certificate are based upon the examination of the provisions of the Indenture and upon the relevant books and records of the Issuer. In such officer’s opinion, they
have made such examination or investigation as is necessary to enable such officer to express an informed opinion as to whether or not the covenants and conditions of such Indenture relating to the issuance, authentication and delivery of the Notes
have been complied with. In such officer’s opinion, such covenants and conditions have been complied with. 

  
 7 

 IN WITNESS WHEREOF, the undersigned officer of the Issuer has duly executed
this certificate as of November 10, 2014. 
 APPLE INC. 

By: /s/ Gary
Wipfler                             

       Gary Wipfler 

       Vice President and Corporate Treasurer 

 EXHIBIT A 
 FORM OF NOTE DUE 2022 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREIN. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, SA/NV, AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ
ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE ISSUER 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 IN SUCH OTHER NAME 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. 

 APPLE INC. 
 1.000% Note due 2022 
  

			
	 No. 1
	  	COMMON CODE No.: 113533480
		  	ISIN No.: XS1135334800
		
		  	€1,400,000,000

 APPLE INC., a California corporation (the “Issuer”), for value received
promises to pay to The Bank of New York Depository (Nominees) Limited or registered assigns the principal sum of 1,400,000,000 EUROS on November 10, 2022. 
 Interest Payment Date: Annually on November 10, beginning on November 10, 2015, and on the principal payment date (each, an “Interest Payment Date”). 

Interest Record Date: Each October 27 preceding the relevant Interest Payment Date (each, an “Interest
Record Date”). 
 Reference is made to the further provisions of this Note contained herein, which will
for all purposes have the same effect as if set forth at this place. 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or
by facsimile by its duly authorized officer. 
  

			
	 APPLE INC.

		
	 By:    
	 	  

		 	 Name:

		 	 Title:

 This is one of the Securities of the series designated therein and referred
to in the within-mentioned Indenture. 
 Dated: November 10, 2014 

 

			
	 The Bank of New York Mellon Trust Company, N.A., as Trustee

		
	 By: 
	 	  

		 	 Authorized Signatory

 (REVERSE OF NOTE) 
 APPLE INC. 
 1.000% Note due 2022 

 

	 	 1.
	 Interest 

 Apple Inc. (the “Issuer”) promises to pay interest on the principal amount of this Note at the rate per annum described above. Cash interest on the Notes will accrue from the most recent
date to which interest has been paid; or, if no interest has been paid, from November 10, 2014. Interest on this Note will be paid to but excluding the relevant Interest Payment Date. The Issuer will pay interest annually in arrears on each
Interest Payment Date, commencing November 10, 2015. Interest will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on
which interest was paid on the notes (or November 10, 2014 if no interest has been paid on the Notes), to but excluding the next scheduled Interest Payment Date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the
rulebook of the International Capital Market Association. 
 The Issuer shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 

 

	 	 2.
	 Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, London Branch, (the “Paying Agent”) will act as paying agent. The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will
initially act as security registrar for the Notes. The Issuer may change any paying agent or security registrar upon notice to the Trustee. 
  

	 	 3.
	 Indenture; Defined Terms. 

 This Note is one of the 1.000% Notes due 2022 (the “Notes”) issued under an indenture dated as of April 29, 2013 (the “Base Indenture”) by and between the Issuer and
the Trustee, as trustee, as supplemented by an Officer’s Certificate dated November 10, 2014, issued pursuant to Section 301 of the Indenture (together with the Base Indenture, the “Indenture”). This Note is a
“Security” and the Notes are “Securities” under the Indenture. 
 “Business
Day” means any day, other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which
the Trans-European Automated Real-time Gross Settlement Express Transfer system (the TARGET2 system), or any successor thereto, is open. 
 For purposes of this Note, unless otherwise defined herein, capitalized terms herein are used as defined in the Indenture. The terms of the Notes include those stated in the Indenture and those made part
of the Indenture by reference to the Trust Indenture Act as in effect on the date 

 
on which the Indenture was qualified under the Trust Indenture Act. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of Notes are referred to
the Indenture and the Trust Indenture Act for a statement of them. 
 To the extent the terms of the Indenture
and this Note are inconsistent, the terms of the Indenture shall govern. 
  

	 	 4.
	 Payment on the Notes 

 All payments of principal of, the redemption price (if any), and interest and additional amounts (as provided in Section 8 hereof, if any), on the Notes, will be payable in euro, provided, that if on
or after November 4, 2014, the euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s 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 the Notes will be made in U.S. dollars until
the euro is again available to the Issuer or so used. The amount payable on any date in euro will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to
the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the most recent U.S. dollar/euro exchange rate published in The Wall Street Journal on or prior to the second Business
Day prior to the relevant payment date. Any payment in respect of the Notes so made in U.S. dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for
any calculation or conversion in connection with the foregoing. 
  

	 	 5.
	 Denominations; Transfer; Exchange. 

 The Notes are in registered form, without coupons, in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. A Holder shall register the transfer or exchange of Notes
in accordance with the Indenture. The Issuer may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as
permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or exchange any Notes or portions thereof for a period of fifteen (15) days before the mailing of a notice of redemption, nor need the Issuer register
the transfer or exchange of any Note selected for redemption in whole or in part except the unredeemed portion of any Note being redeemed in part. 
  

	 	 6.
	 Amendment; Supplement; Waiver. 

 Subject to certain exceptions, the Notes and the provisions of the Indenture relating to the Notes may be amended or supplemented and any existing default or Event of Default or compliance with certain
provisions may be waived with the written consent of the Holders of at least a majority in aggregate principal amount of each series of Outstanding Securities (including the Notes) under the Indenture that is affected by such amendment, supplement
or waiver (voting as a single class). Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Notes to, among other things, cure any ambiguity, defect or

 
inconsistency or comply with any requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act, or make any other change that does not
adversely affect the rights of any Holder of a Note. 
  

	 	 7.
	 Optional Redemption. 

 The Issuer may at its option redeem any of the Notes in whole or in part at any time, each at a redemption price calculated by the Issuer equal to the greater of: 

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

(B)        the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes to be redeemed (exclusive of interest accrued to 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 5 basis points, 
 plus, in each case, accrued and unpaid interest thereon to the date of
redemption. 
 Notwithstanding the foregoing, installments of interest on Notes that are due and payable on
Interest Payment Dates falling on or prior to a redemption date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the Interest Record Date according to the Notes and the Indenture. 

“Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at
the discretion of an independent investment bank selected by the Issuer, a German government bond whose maturity is closest to the maturity of the Notes being 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 Issuer, determine to be appropriate for
determining the Comparable Government Bond Rate. 
 “Comparable Government Bond Rate” means the
price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes, if they were to be purchased at such price on the third Business Day prior to the date fixed for
redemption, would be equal to the gross redemption yield on such Business Day of the Comparable Government Bond 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 Issuer. 
 The provisions of Article XI of the
Indenture shall apply to any redemption of the Notes. 
 Unless the Issuer defaults in the payment of the
redemption price, on and after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the applicable
depository procedures, in the case of Notes represented by a Global Note, or by lot, in the case of Notes that are not represented by a Global Note; provided, however, that no Notes of a principal amount of €100,000 or less shall be redeemed in
part. 

	 	 8.
	 Payment of Additional Amounts 

 All payments of principal and interest in respect of the Notes will be made free and clear of, and without deduction or withholding for or on account of any present or future taxes, duties, assessments or
other governmental charges of whatsoever nature required to be deducted or withheld by the United States or any political subdivision or taxing authority of or in the United States, unless such withholding or deduction is required by law.

 In the event any withholding or deduction on payments in respect of the Notes for or on account of any
present or future tax, assessment or other governmental charge is required to be deducted or withheld by the United States or any taxing authority thereof or therein, the Issuer will pay such additional amounts on the Notes as will result in receipt
by each beneficial owner of a Note that is not a U.S. Person (as defined below) of such amounts (after all such withholding or deduction, including on any additional amounts) as would have been received by such beneficial owner had no such
withholding or deduction been required. The Issuer will not be required, however, to make any payment of additional amounts for or on account of: 
  

	 	 A.
	 any tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection
(other than a connection arising solely from the ownership of those Notes or the receipt of payments in respect of those Notes) between that Holder (or the beneficial owner for whose benefit such Holder holds such Note), or between a fiduciary,
settlor, beneficiary of, member or shareholder of, or possessor of a power over, that Holder or beneficial owner (if that Holder or beneficial owner is an estate, trust, partnership or corporation) and the United States, including that Holder or
beneficial owner, or that fiduciary, settlor, beneficiary, member, shareholder or possessor, being or having been a citizen or resident or treated as a resident of the United States or being or having been engaged in trade or business or present in
the United States or having had a permanent establishment in the United States or (2) the presentation of a Note for payment on a date more than 30 days after the later of the date on which that payment becomes due and payable and the date on
which payment is duly provided for; 

  

	 	 B.
	 any estate, inheritance, gift, sales, transfer, capital gains, excise, personal property, wealth or similar tax, assessment or other governmental
charge; 

  

	 	 C.
	 any tax, assessment or other governmental charge imposed on foreign personal holding company income or by reason of the beneficial owner’s past
or present status as a passive foreign investment company, a controlled foreign corporation, a foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates earnings to avoid
U.S. federal income tax; 

  

	 	 D.
	 any tax, assessment or other governmental charge which is payable otherwise than by withholding or deducting from payment of principal of or
premium, if any, or interest on such Notes; 

	 	 E.
	 any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of and premium, if any,
or interest on any Note if that payment can be made without withholding by any other paying agent; 

  

	 	 F.
	 any tax, assessment or other governmental charge which would not have been imposed but for the failure of a beneficial owner or any Holder of Notes
to comply with the Issuer’s request or a request of the Issuer’s agent to satisfy certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United
States of the beneficial owner or any Holder of the Notes that such beneficial owner or Holder is legally able to deliver (including, but not limited to, the requirement to provide Internal Revenue Service Forms W-8BEN, W-8BEN-E, Forms W-8ECI, or any subsequent versions thereof or successor thereto, and including, without limitation, any documentation requirement under an applicable income tax treaty); 

 

	 	 G.
	 any tax, assessment or other governmental charge imposed on interest received by (1) a 10% shareholder (as defined in Section 871(h)(3)(B)
of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and the regulations that may be promulgated thereunder) of the Issuer or (2) a controlled foreign corporation that is related to the Issuer within the meaning
of Section 864(d)(4) of the Code, or (3) a bank receiving interest described in Section 881(c)(3)(A) of the Code, to the extent such tax, assessment or other governmental charge would not have been imposed but for the beneficial
owner’s status as described in clauses (1) through (3) of this paragraph (G); 

  

	 	 H.
	 to any withholding or deduction that is imposed on a payment to an individual and that is required to be made pursuant to any law implementing or
complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings; 

  

	 	 I.
	 any tax, assessment or other governmental charge required to be withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or
successor version of such Sections) (“FATCA”), any regulations or other guidance thereunder, or any agreement (including any intergovernmental agreement) entered into in connection therewith; or any law, regulation or other official
guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA; or 

  

	 	 J.
	 any combination of items (A), (B), (C), (D), (E), (F), (G), (H) and (I); 

nor will the Issuer pay any additional amounts to any beneficial owner or Holder of Notes who is a fiduciary or partnership to the extent
that a beneficiary or settlor with respect to that fiduciary or a member of that partnership or a beneficial owner thereof would not have been entitled to the payment of those additional amounts had that beneficiary, settlor, member or beneficial
owner been the beneficial owner of those Notes. 
 As used in this Section 8, “U.S.
Person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the
United 

 
States or the District of Columbia (other than a partnership that is not treated as a United States person under any applicable U.S. Treasury regulations), or any estate or trust the income of
which is subject to United States federal income taxation regardless of its source. 
  

	 	 9.
	 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 any political subdivision or taxing authority of or in the
United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after November 4, 2014,
the Issuer becomes, or based upon a written opinion of independent counsel selected by the Issuer, will become obligated to pay additional amounts as described under Section 8 hereof with respect to the Notes, then the Issuer may at its option
redeem, in whole, but not in part, the Notes 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 interest accrued but unpaid on the Notes to the date fixed for
redemption. 
  

	 	 10.
	 Defaults and Remedies. 

 If an Event of Default (other than certain bankruptcy Events of Default with respect to the Issuer) under the Indenture occurs with respect to the Notes and is continuing, then the Trustee may and, at the
direction of the Holders of at least 25% in principal amount of the outstanding Notes, shall by written notice, require the Issuer to repay immediately the entire principal amount of the Outstanding Notes, together with all accrued and unpaid
interest and premium, if any. If a bankruptcy Event of Default with respect to the Issuer occurs and is continuing, then the entire principal amount of the Outstanding Notes together with all accrued and unpaid interest and premium, if any, will
automatically become due immediately and payable without any declaration or other act on the part of the Trustee or any Holder. Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not
obligated to enforce the Indenture or the Notes unless it has received indemnity as it reasonably requires. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then
outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of certain continuing defaults or Events of Default if it determines that withholding notice is not opposed to their
interest. 
  

	 	 11.
	 Authentication. 

 This Note shall not be valid until the Trustee manually signs the certificate of authentication on this Note. 
  

	 	 12.
	 Abbreviations and Defined Terms. 

 Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

	 	 13.
	 Common Code/ISIN Numbers. 

 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused Common Code/ISIN numbers to be printed on the Notes as a convenience to the
Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed hereon. 

 

	 	 14.
	 Governing Law. 

 The Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 

 ASSIGNMENT FORM 
 To assign this Note, fill in the form below: 
 I or we assign and transfer this
Note to 
 (Print or type assignee’s name, address and zip code) 

(Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint                          agent to transfer this Note on the
books of the Issuer. The agent may substitute another to act for him. 
  

 
 Date:
                                        
  Your Signature:
                                         
                    
  

 
 Sign exactly as your name appears
on the other side of this Note. 
  

							
		 		 		 	  

		 		 		 	 Signature

				
	 Signature Guarantee:
	 		 		 	
				
	  
	 		 		 	  

	 Signature must be guaranteed
	 		 		 	 Signature

 Signatures must be guaranteed by an “eligible guarantor institution” meeting
the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with the United States Securities Exchange Act of 1934, as amended. 

 SCHEDULE OF EXCHANGES OF NOTES 

The following exchanges of a part of this Global Note for physical Notes or a part of another Global Note have been made: 

 

									
	 Date of Exchange
	 	
Amount of decrease in
principal amount of this
Global Note
	 	 Amount of increase
in
principal amount of this
Global Note
	  	Principal amount of this
Global Note following
such decrease
(or
increase)	  	Signature of authorized
officer of Trustee

 EXHIBIT B 
 FORM OF NOTE DUE 2026 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREIN. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, SA/NV, AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”) AND CLEARSTREAM BANKING, SOCIÉTÉ
ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE ISSUER 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 IN SUCH OTHER NAME 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. 

 APPLE INC. 
 1.625% Note due 2026 
  

			
	 No. 1
	  	COMMON CODE No.: 113533749
		  	ISIN No.: XS1135337498
		
		  	€1,400,000,000

 APPLE INC., a California corporation (the “Issuer”), for value received
promises to pay to The Bank of New York Depository (Nominees) Limited or registered assigns the principal sum of 1,400,000,000 EUROS on November 10, 2026. 
 Interest Payment Date: Annually on November 10, beginning on November 10, 2015, and on the principal payment date (each, an “Interest Payment Date”). 

Interest Record Date: Each October 27 preceding the relevant Interest Payment Date (each, an “Interest
Record Date”). 
 Reference is made to the further provisions of this Note contained herein, which will
for all purposes have the same effect as if set forth at this place. 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or
by facsimile by its duly authorized officer. 
  

			
	 APPLE INC.

		
	 By:    
	 	  

		 	 Name:

		 	 Title:

 This is one of the Securities of the series designated therein and referred
to in the within-mentioned Indenture. 
 Dated: November 10, 2014 

 

			
	 The Bank of New York Mellon Trust Company, N.A., as Trustee

		
	 By: 
	 	  

		 	 Authorized Signatory

 (REVERSE OF NOTE) 
 APPLE INC. 
 1.625% Note due 2026 

 

	 	 1.
	 Interest 

 Apple Inc. (the “Issuer”) promises to pay interest on the principal amount of this Note at the rate per annum described above. Cash interest on the Notes will accrue from the most recent
date to which interest has been paid; or, if no interest has been paid, from November 10, 2014. Interest on this Note will be paid to but excluding the relevant Interest Payment Date. The Issuer will pay interest annually in arrears on each
Interest Payment Date, commencing November 10, 2015. Interest will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on
which interest was paid on the Notes (or November 10, 2014 if no interest has been paid on the Notes), to but excluding the next scheduled Interest Payment Date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the
rulebook of the International Capital Market Association. 
 The Issuer shall pay interest on overdue principal
from time to time on demand at the rate borne by the Notes and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 

 

	 	 2.
	 Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, London Branch, (the “Paying Agent”) will act as paying agent. The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will
initially act as security registrar for the Notes. The Issuer may change any paying agent or security registrar upon notice to the Trustee. 
  

	 	 3.
	 Indenture; Defined Terms. 

 This Note is one of the 1.625% Notes due 2026 (the “Notes”) issued under an indenture dated as of April 29, 2013 (the “Base Indenture”) by and between the Issuer and
the Trustee, as trustee, as supplemented by an Officer’s Certificate dated November 10, 2014, issued pursuant to Section 301 of the Indenture (together with the Base Indenture, the “Indenture”). This Note is a
“Security” and the Notes are “Securities” under the Indenture. 
 “Business
Day” means any day, other than a Saturday or Sunday, (1) which is not a day on which banking institutions in The City of New York or London are authorized or required by law, regulation or executive order to close and (2) on which
the Trans-European Automated Real-time Gross Settlement Express Transfer system (the TARGET2 system), or any successor thereto, is open. 
 For purposes of this Note, unless otherwise defined herein, capitalized terms herein are used as defined in the Indenture. The terms of the Notes include those stated in the Indenture and those made part
of the Indenture by reference to the Trust Indenture Act as in effect on the date 

 
on which the Indenture was qualified under the Trust Indenture Act. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of Notes are referred to
the Indenture and the Trust Indenture Act for a statement of them. 
 To the extent the terms of the Indenture
and this Note are inconsistent, the terms of the Indenture shall govern. 
  

	 	 4.
	 Payment on the Notes 

 All payments of principal of, the redemption price (if any), and interest and additional amounts (as provided in Section 8 hereof, if any), on the Notes, will be payable in euro, provided, that if on
or after November 4, 2014, the euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s 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 the Notes will be made in U.S. dollars until
the euro is again available to the Issuer or so used. The amount payable on any date in euro will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to
the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the most recent U.S. dollar/euro exchange rate published in The Wall Street Journal on or prior to the second Business
Day prior to the relevant payment date. Any payment in respect of the Notes so made in U.S. dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for
any calculation or conversion in connection with the foregoing. 
  

	 	 5.
	 Denominations; Transfer; Exchange. 

 The Notes are in registered form, without coupons, in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. A Holder shall register the transfer or exchange of Notes
in accordance with the Indenture. The Issuer may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as
permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or exchange any Notes or portions thereof for a period of fifteen (15) days before the mailing of a notice of redemption, nor need the Issuer register
the transfer or exchange of any Note selected for redemption in whole or in part except the unredeemed portion of any Note being redeemed in part. 
  

	 	 6.
	 Amendment; Supplement; Waiver. 

 Subject to certain exceptions, the Notes and the provisions of the Indenture relating to the Notes may be amended or supplemented and any existing default or Event of Default or compliance with certain
provisions may be waived with the written consent of the Holders of at least a majority in aggregate principal amount of each series of Outstanding Securities (including the Notes) under the Indenture that is affected by such amendment, supplement
or waiver (voting as a single class). Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Notes to, among other things, cure any ambiguity, defect or

 
inconsistency or comply with any requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act, or make any other change that does not
adversely affect the rights of any Holder of a Note. 
  

	 	 7.
	 Optional Redemption. 

 The Issuer may at its option redeem any of the Notes in whole or in part at any time, each at a redemption price calculated by the Issuer equal to the greater of: 

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

(B)        the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes to be redeemed (exclusive of interest accrued to 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 10 basis points, 
 plus, in each case, accrued and unpaid interest thereon to the date of
redemption. 
 Notwithstanding the foregoing, installments of interest on Notes that are due and payable on
Interest Payment Dates falling on or prior to a redemption date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the Interest Record Date according to the Notes and the Indenture. 

“Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at
the discretion of an independent investment bank selected by the Issuer, a German government bond whose maturity is closest to the maturity of the Notes being 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 Issuer, determine to be appropriate for
determining the Comparable Government Bond Rate. 
 “Comparable Government Bond Rate” means the
price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes, if they were to be purchased at such price on the third Business Day prior to the date fixed for
redemption, would be equal to the gross redemption yield on such Business Day of the Comparable Government Bond 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 Issuer. 
 The provisions of Article XI of the
Indenture shall apply to any redemption of the Notes. 
 Unless the Issuer defaults in payment of the redemption
price, on and after the redemption date, interest will cease to accrue on the Notes or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the applicable depository
procedures, in the case of Notes represented by a Global Note, or by lot, in the case of Notes that are not represented by a Global Note; provided, however, that no Notes of a principal amount of €100,000 or less shall be redeemed in part.

	 	 8.
	 Payment of Additional Amounts 

 All payments of principal and interest in respect of the Notes will be made free and clear of, and without deduction or withholding for or on account of any present or future taxes, duties, assessments or
other governmental charges of whatsoever nature required to be deducted or withheld by the United States or any political subdivision or taxing authority of or in the United States, unless such withholding or deduction is required by law.

 In the event any withholding or deduction on payments in respect of the Notes for or on account of any
present or future tax, assessment or other governmental charge is required to be deducted or withheld by the United States or any taxing authority thereof or therein, the Issuer will pay such additional amounts on the Notes as will result in receipt
by each beneficial owner of a Note that is not a U.S. Person (as defined below) of such amounts (after all such withholding or deduction, including on any additional amounts) as would have been received by such beneficial owner had no such
withholding or deduction been required. The Issuer will not be required, however, to make any payment of additional amounts for or on account of: 
  

	 	 A.
	 any tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection
(other than a connection arising solely from the ownership of those Notes or the receipt of payments in respect of those Notes) between that Holder (or the beneficial owner for whose benefit such Holder holds such Note), or between a fiduciary,
settlor, beneficiary of, member or shareholder of, or possessor of a power over, that Holder or beneficial owner (if that Holder or beneficial owner is an estate, trust, partnership or corporation) and the United States, including that Holder or
beneficial owner, or that fiduciary, settlor, beneficiary, member, shareholder or possessor, being or having been a citizen or resident or treated as a resident of the United States or being or having been engaged in trade or business or present in
the United States or having had a permanent establishment in the United States or (2) the presentation of a Note for payment on a date more than 30 days after the later of the date on which that payment becomes due and payable and the date on
which payment is duly provided for; 

  

	 	 B.
	 any estate, inheritance, gift, sales, transfer, capital gains, excise, personal property, wealth or similar tax, assessment or other governmental
charge; 

  

	 	 C.
	 any tax, assessment or other governmental charge imposed on foreign personal holding company income or by reason of the beneficial owner’s past
or present status as a passive foreign investment company, a controlled foreign corporation, a foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates earnings to avoid
U.S. federal income tax; 

  

	 	 D.
	 any tax, assessment or other governmental charge which is payable otherwise than by withholding or deducting from payment of principal of or
premium, if any, or interest on such Notes; 

	 	 E.
	 any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of and premium, if any,
or interest on any Note if that payment can be made without withholding by any other paying agent; 

  

	 	 F.
	 any tax, assessment or other governmental charge which would not have been imposed but for the failure of a beneficial owner or any Holder of Notes
to comply with the Issuer’s request or a request of the Issuer’s agent to satisfy certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United
States of the beneficial owner or any Holder of the Notes that such beneficial owner or Holder is legally able to deliver (including, but not limited to, the requirement to provide Internal Revenue Service Forms W-8BEN, W-8BEN-E, Forms W-8ECI, or any subsequent versions thereof or successor thereto, and including, without limitation, any documentation requirement under an applicable income tax treaty); 

 

	 	 G.
	 any tax, assessment or other governmental charge imposed on interest received by (1) a 10% shareholder (as defined in Section 871(h)(3)(B)
of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and the regulations that may be promulgated thereunder) of the Issuer or (2) a controlled foreign corporation that is related to the Issuer within the meaning
of Section 864(d)(4) of the Code, or (3) a bank receiving interest described in Section 881(c)(3)(A) of the Code, to the extent such tax, assessment or other governmental charge would not have been imposed but for the beneficial
owner’s status as described in clauses (1) through (3) of this paragraph (G); 

  

	 	 H.
	 to any withholding or deduction that is imposed on a payment to an individual and that is required to be made pursuant to any law implementing or
complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings; 

  

	 	 I.
	 any tax, assessment or other governmental charge required to be withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or
successor version of such Sections) (“FATCA”), any regulations or other guidance thereunder, or any agreement (including any intergovernmental agreement) entered into in connection therewith; or any law, regulation or other official
guidance enacted in any jurisdiction implementing FATCA or an intergovernmental agreement in respect of FATCA; or 

  

	 	 J.
	 any combination of items (A), (B), (C), (D), (E), (F), (G), (H) and (I); 

nor will the Issuer pay any additional amounts to any beneficial owner or Holder of Notes who is a fiduciary or partnership to the extent
that a beneficiary or settlor with respect to that fiduciary or a member of that partnership or a beneficial owner thereof would not have been entitled to the payment of those additional amounts had that beneficiary, settlor, member or beneficial
owner been the beneficial owner of those Notes. 
 As used in this Section 8, “U.S.
Person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the
United 

 
States or the District of Columbia (other than a partnership that is not treated as a United States person under any applicable U.S. Treasury regulations), or any estate or trust the income of
which is subject to United States federal income taxation regardless of its source. 
  

	 	 9.
	 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 any political subdivision or taxing authority of or in the
United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after November 4, 2014,
the Issuer becomes, or based upon a written opinion of independent counsel selected by the Issuer, will become obligated to pay additional amounts as described under Section 8 hereof with respect to the Notes, then the Issuer may at its option
redeem, in whole, but not in part, the Notes 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 interest accrued but unpaid on the Notes to the date fixed for
redemption. 
  

	 	 10.
	 Defaults and Remedies. 

 If an Event of Default (other than certain bankruptcy Events of Default with respect to the Issuer) under the Indenture occurs with respect to the Notes and is continuing, then the Trustee may and, at the
direction of the Holders of at least 25% in principal amount of the outstanding Notes, shall by written notice, require the Issuer to repay immediately the entire principal amount of the Outstanding Notes, together with all accrued and unpaid
interest and premium, if any. If a bankruptcy Event of Default with respect to the Issuer occurs and is continuing, then the entire principal amount of the Outstanding Notes together with all accrued and unpaid interest and premium, if any, will
automatically become due immediately and payable without any declaration or other act on the part of the Trustee or any Holder. Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not
obligated to enforce the Indenture or the Notes unless it has received indemnity as it reasonably requires. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then
outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of certain continuing defaults or Events of Default if it determines that withholding notice is not opposed to their
interest. 
  

	 	 11.
	 Authentication. 

 This Note shall not be valid until the Trustee manually signs the certificate of authentication on this Note. 
  

	 	 12.
	 Abbreviations and Defined Terms. 

 Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

	 	 13.
	 Common Code/ISIN Numbers. 

 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused Common Code/ISIN numbers to be printed on the Notes as a convenience to the
Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed hereon. 

 

	 	 14.
	 Governing Law. 

 The Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 

 ASSIGNMENT FORM 
 To assign this Note, fill in the form below: 
 I or we assign and transfer this
Note to 
 (Print or type assignee’s name, address and zip code) 

(Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint                          agent to transfer this Note on the
books of the Issuer. The agent may substitute another to act for him. 
  

 
 Date:
                                        
  Your Signature:
                                         
                    
  

 
 Sign exactly as your name appears
on the other side of this Note. 
  

							
		 		 		 	  

		 		 		 	 Signature

				
	 Signature Guarantee:
	 		 		 	
				
	  
	 		 		 	  

	 Signature must be guaranteed
	 		 		 	 Signature

 Signatures must be guaranteed by an “eligible guarantor institution” meeting
the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, STAMP, all in accordance with the United States Securities Exchange Act of 1934, as amended. 

 SCHEDULE OF EXCHANGES OF NOTES 

The following exchanges of a part of this Global Note for physical Notes or a part of another Global Note have been made: 

 

									
	 Date of Exchange
	 	 Amount of decrease
in
principal amount of this
Global Note
	 	 Amount of increase
in
principal amount of this
Global Note
	  	Principal amount of this
Global Note following
such decrease
(or
increase)	  	Signature of authorized
officer of Trustee

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