Document:

Exhibit 10.18

 

Summary of Compensation Arrangements for
Nonemployee Directors

 

The Company’s nonemployee directors are as follows:  Donald
G. Calder, Robin S. Callahan, Paul J. Choquette, Jr., Peter L.A. Jamieson,
Peter F. Krogh, Anthony W. Ruggiero, Lawrence A. Sala, Eriberto R. Scocimara
and Magalen C. Webert.

 

For 2005, the annual fee paid to each nonemployee director was $35,000.
In addition, a $5,000 annual attendance fee is paid to each nonemployee
director who attends at least 75% of the aggregate of (i) the total number of
Board of Directors meetings which he or she is eligible to attend, and (ii) all
meetings of committees of the Board on which the director serves. For 2005,
each nonemployee director attended at least 75% of such meetings and received a
$5,000 annual attendance fee.

 

The Board has standing Executive, Audit, Compensation, Pension and
Benefits and Corporate Governance and Nominating Committees. During 2005,
Committee fees paid to the nonemployee directors were as follows:

 

	
  Nonemployee

  Director

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Donald G.
  Calder

  	
   

  	
  $

  	
  35,000

  	
   

  
	
  Robin S.
  Callahan

  	
   

  	
  35,000

  	
   

  
	
  Paul J.
  Choquette, Jr.

  	
   

  	
  30,000

  	
   

  
	
  Peter L.A.
  Jamieson

  	
   

  	
  25,000

  	
   

  
	
  Peter F.
  Krogh

  	
   

  	
  25,000

  	
   

  
	
  Anthony W.
  Ruggiero

  	
   

  	
  42,500

  	
   

  
	
  Lawrence A.
  Sala

  	
   

  	
  23,750

  	
   

  
	
  Eriberto R.
  Scocimara

  	
   

  	
  30,000

  	
   

  
	
  Magalen C.
  Webert

  	
   

  	
  20,000

  	
   

  
					

 

In addition, on February 8, 2006, each nonemployee director received an
option to acquire 2,000 shares of the Company’s common stock at an option price
of $68.86, which was equal to the closing market price of the shares on the
date of grant. All options expire ten (10) years following the date of grant.

 

Under the Deferred Compensation Plan for Nonemployee Directors, each
nonemployee director is entitled to defer up to 100% of his or her annual
retainer and meeting fees. Each participant can direct the “deemed investment”
of his or her account among the different investment funds offered by the
Company from time to time. Initially, the investment options include (i) a
fixed rate fund and (ii) Share equivalent units. All amounts held under the
Deferred Compensation Plan are 100% vested amounts credited to a participant’s
account and generally will be paid or commence to be paid after the participant
terminates service as a director. At the participant’s election, payments can
be made in a lump sum or in quarterly installments. Payments under the Deferred
Compensation Plan are made in cash from the Company’s general assets. For the
period January 1, 2005 to December 31, 2005, the fixed rate fund accrued
interest at five and one-half percent (5.5%) per annum and the aggregate
interest accrued for all participants in the Deferred Compensation Plan was
$38,113.

 

1Exhibit 4.1

 

EXECUTION
COPY

 

 

SABRE HOLDINGS
CORPORATION

TO

SUNTRUST BANK,

AS TRUSTEE

SECOND SUPPLEMENTAL INDENTURE

DATED AS OF MARCH 13, 2006

$400,000,000 6.350% SENIOR NOTES DUE
2016

 

 

SUPPLEMENTAL
TO INDENTURE

DATED AS OF AUGUST 3, 2001 BETWEEN

SABRE HOLDINGS CORPORATION AND

SUNTRUST BANK, AS TRUSTEE

 

SECOND SUPPLEMENTAL INDENTURE dated as of March
13, 2006 between Sabre Holdings Corporation, a Delaware corporation having its
principal offices at 3150 Sabre Drive, Southlake, Texas 76092 (the “Issuer”) and SunTrust Bank, as Trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, the Issuer has executed and
delivered its Indenture (the “Original Indenture”)
dated as of August 3, 2001 to the Trustee to issue from time to time its
debentures, notes, or other evidences of indebtedness (collectively, the “Debt Securities”);

 

WHEREAS, Article Nine of the Original
Indenture provides that the Issuer may enter into one or more supplemental
indentures for the purpose of issuing one or more series of its Debt Securities
and establish the form and terms and conditions thereof, and for other
additional purposes;

 

WHEREAS, pursuant to this Second Supplemental
Indenture, the Issuer intends to issue $400,000,000 aggregate principal amount
of 6.350% Senior Notes due 2016 (the “Notes”) and
establish the forms and the terms and conditions thereof;

 

WHEREAS, the Board of Directors of the Issuer
has approved the creation of the Notes and the form, terms and conditions
thereof; and

 

WHEREAS, the consent of the Holders to the
execution and delivery of this Supplemental Indenture is not required pursuant
to Section 901 of the Original Indenture, and all other actions required to be
taken with respect to this Supplemental Indenture have been taken.

 

NOW, THEREFORE, IT IS AGREED:

 

ARTICLE 1

DEFINITIONS

 

Section 1.01. Terms Defined in the
Original Indenture. Capitalized terms used in this Supplemental
Indenture and not otherwise defined herein shall have the meanings ascribed to
them in the Original Indenture.

 

Section 1.02. Definitions. For
the purposes of this supplemental indenture:

 

 

“DTC” means The
Depository Trust Company.

 

“Indenture”
means the Original Indenture as supplemented by this Second Supplemental
Indenture.

 

“Notes” means
the $400,000,000 aggregate original principal amount of the 6.350% Senior Notes
due 2016 issued by the Issuer.

 

“Registered Global Security”
means a single fully-registered global security in book-entry form, without
coupons, substantially in the form of Exhibit A attached hereto.

 

ARTICLE 2

THE NOTES

 

Section 2.01. Form of the Notes. The
Notes shall be substantially in the form of Exhibit A attached hereto, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by the Indenture. The Notes will be represented by a
single Registered Global Security, registered in the name of Cede & Co.,
the nominee of DTC. So long as DTC or its nominee is the registered owner of a
Registered Global Security, DTC or its nominee, as the case may be, will be
considered the sole owner or holder of the Notes represented by such Registered
Global Security for all purposes under the Indenture. Ownership of beneficial
interests in the Registered Global Security will be shown on, and transfers
thereof will be effected only through, records maintained by DTC (with respect
to beneficial interests maintained by participants) or by participants or
persons that hold interests through participants (with respect to beneficial
interests of beneficial holders). Beneficial owners will not receive
certificates representing their ownership interest in the Notes except in the
event that use of the book-entry system for the Notes is discontinued because
DTC ceases to qualify as a clearing agency or DTC so requests following an
Event of Default.

 

Section 2.02. Terms and Conditions in
the Original Indenture. The Notes shall be governed by all the terms
of the Original Indenture, as supplemented by this Second Supplemental
Indenture. The terms of this Second Supplemental Indenture will only apply to
the Notes.

 

Section 2.03. Terms of the Series. The
information with respect to the Notes required by Section 301 of the Original
Indenture is set forth in Exhibit A or as set out below. The Notes will not be
issued as units.

 

Section 2.04. Payment of Principal and
Interest. Principal and interest payments on the Notes represented
by the Registered Global Security will be made to DTC or its nominee, as the
case may be, as the registered owner of the

 

2

 

Registered Global Security. All payments of principal and interest in
respect of the Notes will be made by the Issuer in immediately available funds.

 

Section 2.05. Optional Redemption. The
Notes may be redeemed, in whole or in part, at any time and at the option of
the Issuer, at the Redemption Price specified in the form of the Notes attached
hereto as Exhibit A.

 

Section 2.06. Interest Rate Adjustment
upon a Change of Control. The interest rate payable on the Notes
will be subject to adjustment from time to time after the occurrence of any
Change of Control as set forth in the form of the Notes attached hereto as
Exhibit A.

 

ARTICLE 3

THE TRUSTEE

 

Section 3.01. The Trustee. Trustee
shall not be responsible in any manner whatsoever for or in respect of the validity
or sufficiency of this Second Supplemental Indenture or the due execution
thereof by the Issuer. The recitals of fact contained herein shall be taken as
the statements solely of the Issuer, and the Trustee assumes no responsibility
for the correctness thereof.

 

ARTICLE 4

MISCELLANEOUS PROVISIONS

 

Section 4.01. Ratification. This
Supplemental Indenture is executed and shall be construed as an indenture
supplemental to the Original Indenture, and as supplemented as modified hereby,
the Original Indenture is in all respects ratified and confirmed, and the
Original Indenture and this Supplemental Indenture shall be read, taken and
construed as one and the same instrument.

 

Section 4.02. Headings. The
Article and Section headings herein are for convenience only and shall not
effect the construction hereof.

 

Section 4.03. Successors and Assigns. All
covenants and agreements in this Supplemental Indenture by the Issuer shall
bind its successors and assigns, whether so expressed or not.

 

Section 4.04. Separability Clause. In
case any one or more of the provisions contained in this Supplemental Indenture
shall for any reason be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

 

3

 

Section 4.05. Governing Law. This
Supplemental Indenture shall be governed by and construed in accordance with
the laws of the State of New York, without regard to conflicts of laws. This
Supplemental Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, that are required to be part of this Supplemental
Indenture and shall, to the extent applicable, be governed by such provisions.

 

Section 4.06. Counterparts. This
Supplemental Indenture may be executed in any number of counterparts, and each
of such counterparts shall for all purposes be deemed to be an original, but
all such counterparts shall together constitute one and the same instrument.

 

IN WITNESS THEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed, and their respective
corporate seals to be hereunto fixed and attested, all as of the date first
above written.

 

	
   

  	
  Sabre Holdings Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffery Jackson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeffery Jackson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ James F. Brashear

  	
   

  	
   

  	
   

  
	
  Name:

  	
  James F. Brashear

  	
   

  	
   

  
	
  Title:

  	
  Corporate Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SunTrust Bank, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia Spruell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Patricia Spruell

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Olga G. Warren

  	
   

  	
   

  	
   

  
	
  Name: Olga G. Warren

  	
   

  	
   

  
	
  Title: First Vice President

  	
   

  	
   

  
										

 

4

 

Exhibit A

 

	
  REGISTERED

  	
   

  	
  U.S.
  $400,000,000

  
	
   

  	
   

  	
  CUSIP NO.:785905
  AB 6

  

 

THIS SECURITY IS A BOOK-ENTRY SECURITY WITHIN
THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEES
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC
TO DTC OR ANOTHER NOMINEE OF DTC.

 

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

 

SABRE HOLDINGS
CORPORATION

 

6.350% SENIOR
NOTES DUE 2016

 

Sabre Holdings Corporation, a corporation
duly organized and existing under the laws of Delaware (herein called the “Company”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to Cede & Co., or registered assigns, the principal sum of Four Hundred
Million United States Dollars (U.S. $400,000,000) on March 15, 2016 (the “Maturity Date”), at the office or agency of the Company
referred to below, and to pay interest thereon at the rate set forth above (as may
be adjusted as set forth on the reverse of this Security) from March 13, 2006
or the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on March 15 and September 15 in each year,
commencing September 15, 2006, at the rate of 6.350% per annum, until the
principal hereof is paid or made available for payment. The interest so
payable,

 

5

 

and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the March 1 or September
1 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.

 

Payment of the principal of (and premium, if
any) and any such interest on this Security will be made at the office or
agency of the Company maintained for that purpose in Atlanta, Georgia, in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

 

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

 

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by
manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

6

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed under its corporate seal.

 

Dated: March
13, 2006

 

 

	
   

  	
  Sabre Holdings Corporation

  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  [Seal]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
						

 

 

TRUSTEE’S
CERTIFICATE

OF AUTHENTICATION

 

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

 

	
   

  	
  SUNTRUST BANK,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
     Authorized Signatory

  

 

Dated:  March
13, 2006

 

7

 

[FORM OF REVERSE OF SECURITY]

 

1. Series under Indenture.

 

This Security is one of a duly authorized
issue of securities of the Company (herein called the “Securities”)
issued or to be issued in one or more series under an indenture dated as of August
3, 2001 (herein called the “Indenture”)
between the Company and SunTrust Bank, as trustee (herein called the “Trustee”, which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties, obligations and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof, initially limited in aggregate
principal amount to $400,000,000. The Company may, without the consent of the
Holders of the Securities, issue additional Securities having the same ranking
and same interest rate, maturity and other terms as the Securities. Any
additional Securities having such similar terms, together with the Securities,
will constitute a single series of Securities under the Indenture.

 

2. Optional Redemption

 

The Securities of this series are subject to redemption upon not less
than 30 nor more than 60 days’ notice by mail, such 30 or 60 days, as the case
may be, to be counted from the date notice is mailed, as a whole or in part, at
the election of the Company, at a Redemption Price equal to the greater of: (1)
100% of the principal amount of Securities then outstanding, or (2) the sum of
the present values of the remaining scheduled payments of principal and
interest thereon (not including any portion of such payments of interest
accrued as of the Redemption Date) discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate (as defined below), plus 30 basis points, as
calculated by an Independent Investment Banker (as defined below); plus, in
either of the above cases, accrued and unpaid interest thereon to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Securities, or
one or more Predecessor Securities, of record at the close of business on the
relevant Regular Record Dates or Special Record Dates referred to on the face
hereof, all as provided in the Indenture.

 

For the purposes of calculating the
Redemption Price as described above:

 

“Adjusted Treasury Rate”
means, with respect to any Redemption Date:

 

•                                          the
yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated “H.15(519)” or any

 

8

 

successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes yields on
actively traded United States Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is within three
months before or after the Remaining Life, yields for the two published maturities
most closely corresponding to the Comparable Treasury Issue shall be determined
and the adjusted Treasury Rate shall be interpolated or extrapolated from such
yields on a straight line basis, rounding to the nearest month); or

 

•                                          if
such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, calculated using a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such Redemption Date.

 

The Adjusted Treasury Rate shall be
calculated on the third Business Day preceding the Redemption Date.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by an Independent Investment
Banker as having a maturity comparable to the remaining term of the Securities
to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the Securities
(“Remaining Life”).

 

“Comparable Treasury Price”
means (1) the average of five Reference Treasury Dealer Quotations for such
Redemption Date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer
than five such Reference Treasury Dealer Quotations, the average of all such
quotations.

 

“Independent Investment
Banker” means one of the Reference Treasury Dealers appointed by the
Company.

 

“Reference Treasury Dealer”
means:

 

•                                          each
of Morgan Stanley & Co. Incorporated, Bear, Stearns & Co. Inc.,
Goldman, Sachs & Co., Banc of America Securities LLC, Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc. and their respective successors;
provided that, if any of the foregoing ceases to be a primary U.S. Government
securities dealer in New

 

9

 

York City (a “Primary Treasury Dealer”),
the Company will substitute another Primary Treasury Dealer; and

 

•                                          any
other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Independent Investment Banker at 5:00 p.m., New York City
time, on the third business day preceding such Redemption Date.

 

Article 11 of
the Indenture shall apply to such redemptions.

 

3. Interest Rate Adjustments

 

The interest
rate payable on the Securities will be subject to adjustment from time to time
after the occurrence of any Change of Control if the debt rating applicable to
the Securities (a “rating”) by
either Moody’s Investors Service, Inc., (“Moody’s”), or
Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc. (“S&P”) is as set forth below.

 

If, at any time after a Change of Control occurs, the rating of the
Securities from Moody’s is a rating set forth in the immediately following
table, the interest rate on the Securities will increase from that set forth on
the face of this Security by the percentage set opposite that rating:

 

	
  Rating 

  	
   

  	
  Percentage 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ba1

  	
   

  	
  .25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ba2

  	
   

  	
  .50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ba3

  	
   

  	
  .75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  B1 or below

  	
   

  	
  1.00

  	
  %

  

 

If, at any time after a Change of Control occurs, the rating of the
Securities from S&P is a rating set forth in the immediately following
table, the interest rate on the Securities will increase from that set forth on
the face of this Security by the percentage set opposite that rating:

 

10

 

	
  Rating 

  	
   

  	
  Percentage 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BB+

  	
   

  	
  .25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  BB

  	
   

  	
  .50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  BB-

  	
   

  	
  .75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  B+ or below

  	
   

  	
  1.00

  	
  %

  

 

If Moody’s or S&P subsequently increases its rating to any of the
threshold ratings set forth above, the interest rate on the Securities will be
decreased such that the interest rate equals the interest rate set forth on the
face of this Security plus the percentages set opposite the ratings from the
tables above in effect immediately following the increase. Each adjustment
required by any decrease or increase in a rating set forth above, whether
occasioned by the action of Moody’s or S&P, shall be made independent of
any and all other adjustments. In no event shall (1) the interest rate for
the Securities be reduced to below the interest rate set forth on the face of
this Security, and (2) the total increase in the interest rate exceed
2.00% above the interest rate set forth on the face of this Security. If,
following any Change of Control, Moody’s increases its rating to Baa2 and
S&P increases its rating to BBB, the interest rate on the Securities will
remain at, or be decreased to, as the case may be, the interest rate set forth
on the face of this Security and no subsequent downgrades in a rating shall
result in an adjustment of the interest rate on the Securities as provided
herein.

 

If either Moody’s or S&P ceases to provide a rating, any subsequent
increase or decrease in the interest rates of the Securities necessitated by a
reduction or increase in the rating by the agency continuing to provide the
rating shall be twice the percentage set forth in the applicable table above.
No adjustments in the interest rates of the Securities shall be made solely as
a result of either Moody’s or S&P ceasing to provide a rating. If both
Moody’s and S&P cease to provide a rating and a Change of Control has
occurred, the interest rates on the Securities will increase to, or remain at,
as the case may be, 2.00% above the interest rate set forth on the face of this
Security.

 

Any interest rate increase or decrease, as described above, will take
effect as of the most recent Interest Payment Date, or if prior to the
occurrence of the first Interest Payment Date following the issuance of this
Security, from and including the date of issuance of this Security. The Company
shall give the Trustee a notice in writing should the interest rate on the
Securities be required to be increased or decreased pursuant to the terms
described above no later than the Business Day immediately following the date
on which a change in the interest rate is required to be made as provided
above.

 

For purposes of the Securities:

 

“Change of Control” means the occurrence of either of the following:

 

11

 

(1)         the
direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the Company’s properties or assets and those of
the Subsidiaries, taken as a whole (other than in connection with a spin-off or
split-off to the Company’s shareholders), to any “person” or “group” (as such
term is used in Section 13(d)(3) of the Exchange Act), other than a Public
Acquirer and other than any of its Subsidiaries; or

 

(2)         the
consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” or “group” (as such
term is used in Section 13(d)(3) of the Exchange Act), other than a Public
Acquirer, becomes the beneficial owner, directly or indirectly, of more than
50% of the Company’s Voting Stock, measured by voting power rather than number
of shares.

 

“Public Acquirer” means any person whose securities (or depositary
receipts respect thereof), or the securities of its direct or indirect parent,
are listed or quoted on any national securities exchange or The NASDAQ National
Market or, in the case of any non-U.S. organized person, if such securities are
listed on any internationally recognized securities exchange.

 

“Voting Stock” as applied to stock of any person, means shares,
interests, participations or other equivalents in the equity interest (however
designated) in such person having ordinary voting power for the election of a
majority of the directors (or the equivalent) of such person, other than
shares, interests, participations or other equivalents having such power only
by reason of the occurrence of a contingency.

 

4. No Sinking Fund

 

The Securities do not have the benefit of any
sinking fund obligations. In the event of redemption of this Security in part
only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.

 

5. Defeasance

 

The Indenture contains provisions for
defeasance at any time of the entire indebtedness of this Security and/or
certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth in the
Indenture.

 

12

 

6. Events of Default;
Modifications

 

If an Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and
with the effect provided in the Indenture. The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be adversely affected under the Indenture at any
time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each
series to be adversely affected. The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of
all Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.

 

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

 

7. Registration and Transfer

 

As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is
registrable in the Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in any place
where the principal of and any premium and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar duly executed
by, the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

 

The Securities of this series are issuable
only in registered form without coupons in minimum aggregate principal amounts
of $2,000 or integral multiples of $1,000 for amounts in excess of $2,000. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

13

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

 

8. No Recourse

 

No recourse shall be had for the payment of
the principal of (or premium, if any) or the interest on this Security, or for
any claim based hereon, or otherwise in respect hereof, or based on or in
respect of the Indenture or any indenture supplemental thereto, against any
incorporator, stockholder, officer, director or employee, as such, past,
present or future, of the Company or any successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

 

9. Persons Deemed Owners

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered
as the owner hereof for all purposes (subject to Section 307 of the Indenture),
whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.

 

10. Definitions; Governing Law

 

All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the
Indenture. The Indenture and this Security shall be governed by and construed
in accordance with the laws of the State of New York without regard to the
conflicts of laws principles thereof.

 

14

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