Document:

EX-10.1

NOTE REPURCHASE AGREEMENT

This NOTE REPURCHASE AGREEMENT (this “Agreement”) to repurchase Cambium Learning
Group, Inc. 9.75% Senior Secured Notes Due 2017, is made as of May 15, 2014, by and between Cambium
Learning Group, Inc., a Delaware corporation (the “Issuer”) and MSD Credit Opportunity
Master Fund, L.P.(the “Holder”).

WHEREAS, the Holder is the owner and legal and beneficial holder of certain 9.75% Senior
Secured Notes Due 2017 of the Issuer, in the aggregate principal amount of $3,000,000 (the
“Notes”), issued under an indenture, dated as of February 17, 2011 (the
“Indenture”), between the Issuer, the Guarantors named therein and Wells Fargo Bank,
National Association, as trustee (the “Trustee”);

WHEREAS, the Notes, to date, have not matured; and

WHEREAS, the Holder desires and is willing to sell to the Issuer, and the Issuer desires to
repurchase from the Holder, the Notes, upon and subject to the terms and conditions set forth in
this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the covenants, agreements and warranties
contained herein, the sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Definitions. When used herein, the following terms shall have the meanings set
forth below:

(a) “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, or is controlled by, or is under common
control with, such Person, and the term “control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through ownership of voting
securities, by contract or otherwise.

(b) “Encumbrance” means any pledge, hypothecation, assignment, lien, restriction,
charge, claim, security interest, option, preference, priority or other preferential arrangement of
any kind or nature whatsoever.

(c) “Organizational Documents” means: (a) in the case of a Person that is a
corporation, its articles or certificate of incorporation and its by-laws, regulations or similar
governing instruments required by the laws of its jurisdiction of formation or organization; (b) in
the case of a Person that is a partnership, its articles or certificate of partnership, formation
or association, and its partnership agreement (in each case, limited, limited liability, general or
otherwise); (c) in the case of a Person that is a limited liability company, its articles or
certificate of formation or organization, and its limited liability company agreement or operating
agreement; and (d) in the case of a Person that is none of a corporation, partnership (limited,
limited, general or otherwise), limited liability company or natural person, its governing
instruments as required or contemplated by the laws of its jurisdiction of organization.

(d) “Person” means any individual, corporation, partnership, limited liability
company, firm, joint venture, association, joint-stock company, trust, unincorporated organization,
governmental body or authority or any other entity.

(e) “Transfer Restriction” means, with respect to any security or other property, any
condition to or restriction on the ability of the holder thereof to sell, assign or otherwise
transfer such security or other property or to enforce the provisions thereof or of any document
related thereto, whether set forth in such security or other property itself or in any document
related thereto or arising by operation of law, including, without limitation, such conditions or
restrictions arising under federal, state or foreign laws or under any contracts, arrangements or
agreements.

2. Sale and Purchase of the Notes. Subject to the terms and conditions of this
Agreement, the Issuer agrees to purchase from the Holder, and the Holder agrees to sell to the
Issuer, the Notes (the “Transaction”) at an aggregate purchase price of Three Million and
Sixty Thousand Dollars and No Cents ($3,060,000), plus accrued and unpaid interest thereon in the
amount of Seventy Seven Thousand and One Hundred and Eighty Seven Dollars and Fifty Cents
($77,187.50) (collectively, the “Purchase Price”). The purchase and sale of the Notes
shall take place as of 5:00 p.m., New York City time, on May 15, 2014 (the “Trade Date”).
Upon receipt by the Holder of the Purchase Price, the Issuer shall become the legal and beneficial
owner of the Notes and of all rights and interest therein or related thereto and to the monies due
and to become due under the terms of the Notes. The Holder hereby agrees that upon the settlement
of the Transaction pursuant to Section 7 below, the Notes shall be cancelled and the Issuer
shall have no further obligation to the Holder thereunder.

3. Representations, Warranties and Agreements of the Holder.

(a) The Holder hereby represents and warrants to the Issuer, on the date hereof and on the
Trade Date and the Settlement Date (as defined below):

(i) The Holder has the power and capacity to enter into this Agreement and to consummate the
Transaction. The execution, delivery, and performance by the Holder of this Agreement and the
consummation by the Holder of the Holder’s obligations hereunder have been duly authorized by all
necessary action in respect thereof by the Holder. This Agreement has been duly and validly
executed and delivered by the Holder and constitutes the legal, valid and binding obligation of the
Holder, enforceable in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or similar laws from time to time in
effect that affect creditors’ rights generally, and by legal and equitable limitations on the
availability of specific remedies. Any Person signing this Agreement on behalf of the Holder has
been duly and validly authorized and empowered to do so and has the authority to bind the Holder
and to effectuate the transactions contemplated by this Agreement.

(ii) The execution, delivery and performance by the Holder of this Agreement and consummation
by the Holder of the Transaction do not and will not: (w) violate any decree or judgment of any
court or other governmental authority applicable to or binding on the Holder; (x) violate any
provision of any federal or state statute, rule or regulation which is, to the Holder’s knowledge,
applicable to the Holder; (y) conflict with, or result in any violation of, any provision of any
Organizational Document of the Holder; or (z) violate or result in a default under any contract to
which the Holder or any of such Holder’s assets or properties are bound. No consent or approval of,
or filing with, any governmental authority or other Person not a party hereto is required for the
execution, delivery and performance by the Holder of this Agreement or the consummation of the
Transaction.

(iii) The Holder is the beneficial owner of the Notes, free and clear of any Encumbrances, and
upon the transfer of the Notes to the Issuer, the Issuer will acquire good and marketable title
thereto, free and clear of any Encumbrances or Transfer Restrictions, other than Transfer
Restrictions arising solely under the Securities Act of 1933, as amended (the “Securities
Act”), and the rules and regulations of the Securities and Exchange Commission (the
“Commission”) promulgated thereunder, or under similar state securities laws (the
“Permitted Securities Law Restrictions”).

(iv) No proceedings relating to the Notes are pending or, to the knowledge of the Holder,
threatened, before any court, arbitrator or administrative or governmental body or authority that
would adversely affect the Holder’s right to transfer the Notes to the Issuer.

(v) The Holder, by reason of, among other things, the Holder’s business and financial
experience, is capable of evaluating the merits and risks of the Transaction and of protecting the
Holder’s own interests in connection with the Transaction. The Holder is aware of the Issuer’s
business affairs and financial condition, and has acquired sufficient information about the Issuer
to reach an informed and knowledgeable decision to sell the Notes owned by the Holder.

(vi) The Holder acknowledges that the Holder is aware and understands that the Issuer is the
Issuer of the Notes, and that the Issuer has informed the Holder that, among other things, the
Issuer, as the Issuer of the Notes, is in possession of substantial information which may be
material and/or nonpublic (collectively, the “Issuer Information”) and which, if publicly
disclosed, could foreseeably affect the trading price of the Notes, including information that may
be indicative that the value of the Notes is substantially lower or higher than the Purchase Price
being paid in the Transaction, or which, if known to the Holder, could foreseeably have impacted
the Holder’s decision to sell the Holder’s Sale Notes or to enter into this Agreement.

(vii) Notwithstanding the Issuer’s possession of the Issuer Information, which is not being
disclosed to the Holder, the Holder wishes to enter into the Transaction at this time for the
Holder’s own business purposes. The Holder acknowledges that the Issuer would not enter into the
Transaction with the Holder in the absence of the protections afforded to the Issuer by the
Holder’s representations, warranties and agreements in this Section 3 and that the Holder
is providing such representations, warranties and agreements, including the waivers contained in
this Agreement, as an inducement to the Issuer to consummate the Transaction.

(viii) The Holder is (i) an “accredited investor” within the meaning of Rule 501 under the
Securities Act, (ii) is experienced, sophisticated and knowledgeable in the trading of securities
and other instruments of private and public companies and (iii) understands the disadvantage to
which the Holder is subject on account of the disparity of the access to, and possession of, the
Issuer Information between the Issuer and the Holder. The Holder has conducted an independent
evaluation of the Notes to determine whether to engage in the Transaction and, notwithstanding the
absence of access by the Holder to the Issuer Information, the Holder is desirous of consummating
the Transaction.

(ix) Neither the Issuer nor any of its Affiliates or any of their respective representatives
are making any representations or warranties to the Holder, and the Holder is not, in connection
with this Agreement, relying on any statements, whether oral or written, which may have been made
at any time by the Issuer or any of its Affiliates or any of their respective representatives,
except for those representations and warranties of the Issuer expressly set forth in
Section 4 of this Agreement.

(x) The Holder has made no general solicitation in connection with the sale of the Notes,
acknowledges that it independently approached the Issuer regarding the Transaction contemplated
hereby, and that the Issuer did not initiate or attempt to initiate the Transaction contemplated
hereby.

(xi) The Holder has independently received all information (but not the Issuer Information) it
considers necessary or appropriate to determine whether to sell the Notes to the Issuer pursuant to
this Agreement. The Holder has been given the opportunity to consult with the Holder’s own counsel
and financial and other advisors, including tax advisors, with respect to this Agreement and the
terms hereof and the Transaction to be consummated hereunder and has delivered this Agreement
freely and voluntarily. The Holder is relying solely on such advisors in connection with this
Agreement and not on any statements or representations of the Issuer, except for those
representations and warranties of the Issuer expressly set forth in Section 4 of this
Agreement.

(b) The Holder hereby agrees with the Issuer as follows:

(i) The Holder acknowledges and agrees that the sale of the Notes by the Holder and the
purchase of the Notes by the Issuer pursuant to the Transaction shall constitute the final
disposition of the Notes by the Holder, and, following the consummation of the Transaction and the
Holder’s receipt of the Purchase Price as full consideration for the Notes, the Holder shall have
no further rights with respect to the Notes, including, without limitation, any right or
entitlement to participate in any future repurchases by the Issuer of its Notes whether pursuant to
a note repurchase program, open market purchase, tender offer or otherwise, and shall not be
entitled to any additional consideration in respect of the Notes by virtue of any of the foregoing
actions on the part of the Issuer or its representatives and waives any and all rights thereto.
The Holder intends to effect, to the maximum extent permitted by law, an irrevocable, voluntary,
complete and knowing waiver of the Holder’s rights as set forth in this Section 3(b)(i).
Each of the terms of the waivers and releases set forth in this Section 3(b)(i) shall
survive the execution and delivery of this Agreement and the consummation of the Transaction.

(ii) The Holder hereby irrevocably waives any and all actions, causes of action, rights or
claims, whether known or unknown, contingent or matured, and whether currently existing or
hereafter arising, that the Holder may have or hereafter acquire against the Issuer or any of its
Affiliates (collectively, the “Issuer Released Persons” and each, individually, an
“Issuer Released Person”) in any way, directly or indirectly, arising out of, relating to
or resulting from the Issuer’s or such other Persons’ failure to disclose any Issuer Information to
the Holder in connection with this Agreement, including, without limitation, claims it may have or
hereafter acquire under applicable federal and/or state securities laws. The Holder also agrees
that the Holder shall not institute or maintain any cause of action, suit, complaint or other
proceeding against any Issuer Released Person as a result of the Issuer’s or such other Persons’
failure to disclose any Issuer Information to the Holder in connection with this Agreement. The
Holder intends to effect, to the maximum extent permitted by law, an irrevocable, voluntary,
complete and knowing waiver of the Holder’s rights as set forth in this Section 3(b)(ii).
Each of the terms of the waivers and releases set forth in this Section 3(b)(ii) shall
survive the execution and delivery of this Agreement and the consummation of the Transaction.

(iii) The Holder acknowledges that the Issuer may disclose the terms of the Transaction and
this Agreement in certain current and periodic reports that the Issuer is required to file with the
Commission pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”), which
public disclosures are hereby consented to and approved; provided, however, that Issuer shall not,
unless required by applicable law or regulation or otherwise approved in writing by the Holder,
disclose to any third party the name of the Holder or any of its Affiliates or their respective
involvement in this Agreement or the Transaction.

4. Representations and Warranties of the Issuer.

The Issuer hereby represents and warrants to the Holder, as of the date hereof and on the
Trade Date and the Settlement Date:

(a) The Issuer has the power and capacity to enter into this Agreement and to consummate the
Transaction. This Agreement has been duly and validly executed and delivered by the Issuer and
constitutes the legal, valid and binding obligation of the Issuer, enforceable in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
moratorium, reorganization or similar laws from time to time in effect that affect creditors’
rights generally, and by legal and equitable limitations on the availability of specific remedies.

(b) The execution, delivery and performance by the Issuer of this Agreement and consummation
by the Issuer of the Transaction do not and will not: (i) violate any decree or judgment of any
court or other governmental authority applicable to or binding on the Issuer; (ii) violate any
provision of any federal or state statute, rule or regulation which is, to the Issuer’s knowledge,
applicable to the Issuer; (iii) conflict with, or result in any violation of, any provision of the
Notes, the Indenture (including any supplement thereto) or any Organizational Document of the
Issuer; or (iv) violate or result in a default under any material contract to which the Issuer or
any of the Issuer’s assets or properties are bound. No consent or approval of, or filing with, any
governmental authority or other Person not a party hereto is required for the execution, delivery
and performance by the Issuer of this Agreement or the consummation of the Transaction.

(c) Neither the Holder nor any of its Affiliates or any of their respective representatives
are making any representations or warranties to the Issuer, and the Issuer is not relying on any
statements, whether oral or written, which may have been made at any time by the Holder or any of
its Affiliates or any of their respective representatives, except for those representations and
warranties of the Issuer expressly set forth in Section 3 of this Agreement.

(d) The Issuer is solvent and able to pay its debts as they come due, with assets having a
fair value greater than liabilities and with capital sufficient to carry on the businesses in which
it engages.

5. Conditions Precedent to Obligations of the Issuer. The obligations of the Issuer
to pay the Purchase Price on the Settlement Date are subject to the satisfaction of the following
conditions precedent:

(a) The representations and warranties of the Holder contained herein shall be true and
correct in all respects as of the Trade Date and the Settlement Date.

(b) The Holder shall have complied in all respects with all of the Holder’s covenants and
agreements contained herein to be performed by the Holder on or prior to the Settlement Date.

6. Conditions Precedent to Obligations of the Holder. The obligations of the Holder
to deliver the Notes on the Settlement Date are subject to the satisfaction of the following
conditions precedent:

(a) The representations and warranties of the Issuer contained herein shall be true and
correct in all respects as of the Trade Date and the Settlement Date.

(b) The Issuer shall have complied in all respects with all of the Issuer’s covenants and
agreements contained herein to be performed by the Issuer on or prior to the Settlement Date.

(c) The Holder shall have received the wire transfer referred to in Section 7 hereof.

7. Settlement.

(a) Settlement of the Transaction shall take place on May 20, 2014 (the “Settlement
Date”). On the Settlement Date, subject to Sections 5 and 6 hereof, the Holder shall
deliver to the Issuer or to the Trustee the Notes, duly endorsed or accompanied by an assignment
duly endorsed in a form acceptable to the Issuer and the Trustee, or by means of the book-entry
transfer procedures of the Depositary Trust Company, as depositary for the Notes, or by other means
of transfer acceptable to the Issuer, against payment by the Issuer of the Purchase Price.

(b) The Notes delivered to the Issuer pursuant to this Agreement shall be free and clear of
all Encumbrances and Transfer Restrictions (other than the Permitted Securities Law Restrictions).

(c) The Issuer shall pay the Purchase Price to the Holder by wire transfer of immediately
available funds to the bank account on Schedule I attached hereto.

(d) The Issuer and the Holder shall, upon the reasonable request of the other, execute and
deliver all other such documents and instruments reasonably deemed necessary or desirable by the
other parties to fully effect the Transaction contemplated hereby.

8. Amendment. This Agreement shall not be amended, modified or supplemented except in
a writing signed by the Issuer and the Holder.

9. Notices. Any notice, request, instruction or other document to be given hereunder
by a party hereto shall be in writing and shall be deemed to have been given, (a) when received, if
given in person or by a courier or a courier service, (b) on the date of transmission, if sent by
facsimile transmission or other means of electronic transmission (provided that the sending party
retains written evidence of confirmed transmission), or (c) when actually received, if mailed by
first-class certified or registered United States mail or recognized overnight courier service,
postage-prepaid and return receipt requested, and all legal process with regard hereto shall be
validly served when served in accordance with applicable law, in the case of the Issuer, to Cambium
Learning Group, Inc., 17855 North Dallas Parkway, Suite 400, Dallas, Texas 75287, Attention:
General Counsel and Secretary, and, in the case of the Holder, to the address of the Holder set
forth below the Holder’s name on the signature page hereto, or, in either case, at such other
address as the recipient party may designate for such party in writing by notice to the other
parties, given as herein provided.

10. Counterparts; Facsimile or Electronic Signatures. This Agreement may be executed
in two or more counterparts. Each such counterpart shall be deemed to be an original, but all of
which together shall constitute one and the same document. Executed counterparts to this Agreement
transmitted by facsimile or by electronic transmission of portable document format (PDF) files or
tagged image file format (TIF) files shall be deemed to be original signatures for all purposes.

11. GOVERNING LAW; VENUE. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
OF LAWS. The parties hereby submit to the exclusive jurisdiction of any state or federal court
sitting in New York County over any suit, action or proceeding arising out of or relating to this
Agreement and waive any claims of lack of personal jurisdiction or forum non conveniens. The
parties agree that a final judgment in any such suit, action or proceeding brought in such court
shall be conclusive and binding upon the parties and may be enforced in any other courts to whose
jurisdiction other parties are or may be subject, by suit upon such judgment.

12. Expenses. Except as otherwise expressly provided herein, each party hereto will
bear his or its own expenses in connection with the purchase and sale of the Notes contemplated
hereby.

13. Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior agreements and
understandings between such parties with respect to such subject matter.

14. Severability. If any provision of this Agreement shall be held invalid, illegal
or unenforceable, the validity, legality and enforceability of the other provisions hereof shall
not be affected thereby.

15. Captions. The Section captions herein are for convenience of reference only and
are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

16. Currency. All references to “dollars” or “$” in this Agreement refer to United
States dollars, which is the currency used for all purposes in this Agreement.

17. Specific Performance. Each party hereto acknowledges that it would be impossible
to determine the amount of damages that would result from a breach of any of the provisions of
this Agreement and that the remedy at law for any breach, or threatened breach, of any of such
provisions would likely be inadequate and, accordingly, each other party shall, in addition to any
other rights or remedies that it may have, be entitled to seek such equitable and injunctive
relief as may be available from any court of competent jurisdiction to compel specific performance
of, or restrain any party from violating, any of such provisions. In connection with any action or
proceeding for injunctive relief, each party hereto hereby waives the claim or defense that a
remedy at law alone is adequate and, to the maximum extent permitted by law, consents to have each
provision of this Agreement specifically enforced against such party, without the necessity of
posting bond or other security against him or it, and consents to the entry of injunctive relief
against him or it enjoining or restraining any breach or threatened breach of any provision of
this Agreement.

[Signature Page Follows]

1

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
as of the date first above written.

ISSUER:

CAMBIUM LEARNING GROUP, INC.

By: /s/ Barbara Benson

Name: Barbara Benson

Title: Chief Financial Officer

HOLDER:

MSD CREDIT OPPORTUNITY MASTER FUND, L.P.

	 	 	 
	By:       
	Name: Marcello Liguori
	Title:Managing Director
	Address:
	 	c/o MSDC Management, L.P.

645 Fifth Ave, 21st Fl

New York, NY 10022

Attn: Marcello Liguori

2Exhibit 4.2

 

 

(Face of Certificate)

 

THIS SECURITY (THE “CERTIFICATE”) IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO BARCLAYS BANK PLC, OR ITS AGENT, FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

BY PURCHASING THE SECURITIES EVIDENCED BY THIS CERTIFICATE (THE “SECURITIES”), THE HOLDER AGREES TO CHARACTERIZE THE SECURITIES FOR ALL U.S. FEDERAL INCOME TAX PURPOSES AS PROVIDED IN SECTION 12 ON THE FACE OF THIS CERTIFICATE.

 

-1-

 

	
CUSIP No.: 06742W430
    	
 
    	
ISIN: US06742W4309
    

 

BARCLAYS BANK PLC

 

GLOBAL MEDIUM-TERM NOTES, SERIES A

 

 

 

Barclays Women in Leadership ETN

due July 15, 2024

 

The following terms apply to the Securities.  Capitalized terms that are not defined the first time they are used in this Certificate shall have the meanings indicated elsewhere in this Certificate or in the Indenture.  Reference is made to (i) the Pricing Supplement related to the Securities, dated [________] (the “Pricing Supplement”), (ii) the Prospectus Supplement, dated July 19, 2013 (the “Prospectus Supplement”) and (iii) the Prospectus, dated July 19, 2013 (together with the Prospectus Supplement and the Pricing Supplement, the “Prospectus”).

 

Issuer:  Barclays Bank PLC

 

Face Amount:  $[______] equal to [_____] Securities at $50 per Security

 

Stated Principal Amount:  $50 per Security

 

Index:  Barclays Women in Leadership Total Return USD Index (Bloomberg ticker symbol “BXIIWILT <Index>”).

 

Inception Date:  July 9, 2014 (also referred to as the “Initial Valuation Date”)

 

Original Issue Date: July 14, 2014

 

Denomination:  $50

 

Payment at Maturity:  On the Maturity Date, unless such Securities are to be or have previously been redeemed as provided under “Holder Redemption” or “Issuer Redemption,” the Holder will receive a cash payment per Security equal to the Closing Indicative Value on the Final Valuation Date.

Closing Indicative Value:  The Closing Indicative Value for each Security on the Inception Date will equal $50.  On each subsequent calendar day until maturity or early redemption, the Closing Indicative Value for each Security will equal (1) the Closing Indicative Value on the immediately preceding calendar day times (2) the Daily Index Factor on such calendar day (or, if such day is not an Index Business Day, one) minus (3) the Investor Fee on such calendar day.  If the Securities undergo a split or reverse split, the Closing Indicative Value will be adjusted accordingly.

 

Daily Index Factor:  The Daily Index Factor for each Security on any Index Business Day will equal (1) the Closing Level of the Index on such Index Business Day divided by (2) the Closing Level of the Index on the immediately preceding Index Business Day.

 

 

(Face of Certificate continued on next page)

 

-2-

 

Investor Fee:  The Investor Fee for each Security on the Inception Date will equal $0.  On each subsequent calendar day until maturity or early redemption, the Investor Fee for each Security will be equal to (1) the Fee Rate times (2) the Closing Indicative Value on the immediately preceding calendar day times (3) the Daily Index Factor on that day (or, if such day is not an Index Business Day, one) divided by (4) 365.

 

Fee Rate: 0.45%

 

Holder Redemption:  The Holder may, subject to the notification requirements as described in “6. Redemption Mechanics” below, require the Company to redeem the Holder’s Securities in whole or in part on any Holder Redemption Date during the term of the Securities.  If the Holder requires the Company to redeem the Holder’s Securities on any Holder Redemption Date, the Holder will receive a cash payment per Security equal to the Closing Indicative Value on the applicable Valuation Date.  The Company shall not be required to redeem fewer than 25,000 Securities (such amount, the “Minimum Redemption Amount”) at one time.  The Company may from time to time, in its sole discretion, reduce the Minimum Redemption Amount on a consistent basis for all Holders of the Securities.

 

Holder Redemption Date: The third Business Day following each Valuation Date (other than the Final Valuation Date).  The final Holder Redemption Date will be the third Business Day following the Valuation Date that is immediately prior to the Final Valuation Date.

 

Issuer Redemption:  The Company may redeem the Securities (in whole but not in part) at its sole discretion on any Business Day on or after the Inception Date until and including maturity. To exercise its right to redeem the Securities, the Company must deliver written notice to the Holder 

not less than ten calendar days prior to the intended Issuer Redemption Date (such notice, the “Issuer Redemption Notice”). If the Company redeems the Securities, the Holder will receive a cash payment per Security in an amount equal to the Closing Indicative Value on the Valuation Date specified by the Company in such Issuer Redemption Notice.

 

Issuer Redemption Date:  The fifth Business Day after the Valuation Date specified by the Company in the Issuer Redemption Notice, which will in no event be prior to the tenth calendar day following the date on which the Company delivers the Issuer Redemption Notice.

 

Redemption Date: The Holder Redemption Date or the Issuer Redemption Date, as the case may be.

 

Calculation Agent:  Barclays Bank PLC

 

All percentages resulting from any calculation relating to the Securities will be rounded upward or downward, as appropriate, to the next higher or lower one hundred-thousandth of a percentage point, e.g., 9.876541% (or 0.09876541) being rounded down to 9.87654% (or 0.0987654) and 9.876545% (or 0.09876545) being rounded up to 9.87655% (or 0.0987655).  All amounts used in or resulting from any calculation relating to the Securities will be rounded upward or downward, as appropriate, to the nearest cent, in the case of U.S. dollars, the nearest corresponding hundredth of a unit, in the case of a currency other than U.S. dollars, or to the nearest one hundred-thousandth of a unit, in the case of a currency exchange rate, with one-half cent, one-half of a corresponding hundredth of a unit or one-half of a hundred-thousandth of a unit or more being rounded upward.

 

Defeasance:  Neither full defeasance nor covenant defeasance applies to this Security.

 

Listing:  NYSE Arca

 

(Face of Certificate)

 

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OTHER TERMS:

 

All terms used in this Certificate that are not defined in this Certificate but are defined in the Indenture referred to on the reverse of this Certificate shall have the meanings assigned to them in the Indenture.  Section headings on the face of this Certificate are for convenience only and shall not affect the construction of this Certificate.

 

“Business Day” has the meaning set forth under “Specific Terms of the ETNs—Payment at Maturity” in the Pricing Supplement.

 

“Closing Level” means the closing level of the Index as published at the regular weekday close of trading on that Trading Day as displayed on the Bloomberg Professional® service page set forth under “Index” above or any successor page on Bloomberg Professional® service or any successor service, as applicable.

 

“Default Amount” means, if an Event of Default occurs and the maturity of the Securities is accelerated, the Closing Indicative Value of the Security on the date of acceleration, as determined by the Calculation Agent.

 

“Final Valuation Date” means July 8, 2024.  In addition, the Final Valuation Date is subject to adjustment in the event of non-Trading Days or a Market Disruption Event as described in “3. Market Disruption Events and Non-Trading Days” below.

 

“Index Business Day” has the meaning set forth under “Specific Terms of the ETNs—Payment at Maturity” in the Pricing Supplement.

 

“Market Disruption Event” has the meaning set forth under “Reference Assets—Indices—Market Disruption Events for Securities with the Reference Asset Comprised of an Index or Indices of Equity Securities” in the Prospectus Supplement; provided that “scheduled trading day” as used therein shall have the meaning of Trading Day set forth in this Certificate and “index sponsor” shall mean Barclays Risk Analytics and Index Solutions Limited, or any other entity appointed by Barclays Bank PLC to act as the index sponsor for the Index.

 

“Maturity Date” means July 15, 2024; provided that if such date is not a Business Day, the Maturity Date will be the next succeeding Business Day.  If the Final Valuation Date is postponed, the Maturity Date will be the fifth Business Day following the Final Valuation Date, as postponed.

 

“Trading Day” has the meaning set forth under “Specific Terms of the ETNs—Payment at Maturity” in the Pricing Supplement.

 

“Valuation Date” means each Trading Day from July 9, 2014 to July 8, 2024, inclusive.  Each Valuation Date is subject to adjustment in the event of a Market Disruption Event as described in “3. Market Disruption Events and Non-Trading Days” below.

 

 

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1.                                    Promise to Pay at Maturity or Upon Early Redemption

 

Barclays Bank PLC, a public limited company duly organized and existing under the laws of England and Wales (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay (or cause to be paid) to Cede & Co., as nominee for The Depository Trust Company, or registered assigns, the amount as calculated and provided under (i) “Holder Redemption” and elsewhere on the face of this Security on the applicable Holder Redemption Date, in the case of any Securities in respect of the which the Holder exercises such Holder’s right to require the Company to redeem such Holder’s Securities prior to the Maturity Date, (ii) “Issuer Redemption” and elsewhere on the face of this Certificate on the applicable Issuer Redemption Date, in case the Company exercises its right to redeem Securities prior to the Maturity Date or (iii) “Payment at Maturity” and elsewhere on the face of this Certificate on the Maturity Date.

 

2.                                    Payment of Interest

 

The principal of the Securities shall not bear interest during its term.  Any return on the Securities that may be deemed to be interest will in no event be higher than the maximum rate permitted by New York law, as it may be modified by U.S. law of general application.

 

3.                                    Market Disruption Events and Non-Trading Days

 

Each Valuation Date (including the Final Valuation Date) is subject to postponement as set forth under “Reference Assets—Indices—Market Disruption Events for Securities with the Reference Asset Comprised of an Index or Indices of Equity Securities” in the Prospectus Supplement; provided that “scheduled trading day” as used therein shall have the meaning of Trading Day set forth in this Certificate and “index sponsor” shall mean Barclays Risk Analytics and Index Solutions Limited, or any other entity appointed by Barclays Bank PLC to act as the index sponsor for the Index.  Notwithstanding anything to the contrary in the Prospectus Supplement, each Valuation Date (including the Final Valuation Date) may be postponed by up to five Trading Days due to the occurrence or continuance of a Market Disruption Event on such date.

 

4.                                    Discontinuance or Modification of the Index

 

In certain circumstances, the Closing Level of the Index will be based on the alternate calculation of the Index as described under “Specific Terms of the ETNs—Discontinuance or Modification of the Index” in the Pricing Supplement.

 

5.                                    Payment at Maturity or Upon Holder Redemption or Upon Issuer Redemption

 

The payment on the Securities that becomes due and payable on the Maturity Date, on a Holder Redemption Date or an Issuer Redemption Date, as the case may be, shall be the cash amount that must be paid to redeem the Securities as provided above under “Payment at Maturity,” “Holder Redemption” or “Issuer Redemption,” as applicable.  The payment on the Securities that becomes due and payable upon acceleration of the Maturity

 

-5-

 

Date hereof after an Event of Default has occurred pursuant to the Indenture shall be the Default Amount.  When any such payment has been made as provided herein (or such payment has been made available), the principal of the Securities shall be deemed to have been paid in full, whether or not the Securities shall have been surrendered for payment or cancellation.  References to the payment at maturity or upon early redemption of the Securities on any day shall be deemed to mean the payment of cash that is payable on such day as provided in the Securities.  Notwithstanding the foregoing, solely for the purpose of determining whether any consent, waiver, notice or other action to be given or taken by Holders of Securities pursuant to the Indenture has been given or taken by Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of the Securities will be deemed to equal the Face Amount.  The Securities shall cease to be Outstanding as provided in the definition of such term in the Indenture or when the principal of the Securities shall be deemed to have been paid in full as provided above.

 

6.                                    Redemption Mechanics

 

(a) Holder Redemption: Subject to the Minimum Redemption Amount provided under “Holder Redemption,” the Holder may require the Company to redeem the Holder’s Securities on any Holder Redemption Date subject to the provisions set forth under “Specific Terms of the ETNs—Early Redemption Procedures—Holder Redemption Procedures” in the Pricing Supplement.

 

(b) Issuer Redemption:  The Company may elect to exercise its right to redeem the Securities under “Issuer Redemption,” subject to the provisions set forth under “Specific Terms of the ETNs—Early Redemption Procedures—Issuer Redemption Procedures” in the Pricing Supplement.

 

7.                                    Split or Reverse Split of the Securities

 

On any Business Day, the Company may elect to initiate a split of the Securities or a reverse split of the Securities as set forth under “Valuation of the ETNs—Split or Reverse Split of the ETNs” in the Pricing Supplement.

 

8.                                    Role of Calculation Agent

 

Initially, the Company will serve as the Calculation Agent.  The Company may change the Calculation Agent after the Original Issue Date of the Securities without notice.  The Calculation Agent will, in its sole discretion and acting in good faith and using reasonable judgment, make all calculations and determinations in connection with the Securities as specified herein.  Absent manifest error, all calculations and determinations of the Calculation Agent will be conclusive for all purposes and final and binding on the Holders and the Company, without any liability on the part of the Calculation Agent.

 

The Company shall take such action as shall be necessary to ensure that there is at all relevant times a financial institution serving as the Calculation Agent hereunder.  Insofar as the Securities provide for the Calculation Agent to obtain the applicable Closing Level or other information from any institution or other source, the Calculation Agent may do so from any source or sources of the kind contemplated or otherwise permitted hereby notwithstanding that any one or more of such sources are the Calculation Agent, affiliates of the Calculation Agent or affiliates of the Company.

 

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9.                                    Payment

 

Payment of any amount payable on the Securities in cash will be made 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.  Payment of any cash payable on the Securities will be made to an account designated by the Holder (in writing to the Company and the Trustee on or before the applicable Valuation Date) and approved by the Company or, if no such account is designated and approved as aforesaid, at the office or agency of the Company maintained for that purpose in The City of New York (i.e., the office of the Trustee); provided that the payment on the Maturity Date or any Redemption Date shall be made only upon surrender of this Certificate at such office or agency (unless the Company expressly waives surrender).  Notwithstanding the foregoing, if the Securities are evidenced by one or more Global Securities, any payment may be made pursuant to the applicable procedures of the Depositary.

 

10.                            Reverse of this Certificate

 

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

 

11.                            Certificate of Authentication

 

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

 

12.                            Prospectus

 

The terms and conditions of the Securities as fully set forth in the Prospectus are hereby incorporated by reference in their entirety into this Certificate and binding upon the parties hereto.  In the event of a conflict between the terms of the Prospectus and the terms of this Certificate, the Prospectus will control and if the Prospectus provides for a specific United States tax characterization, by purchasing the Securities, you agree (in the absence of a change in law, an administrative determination or a judicial ruling to the contrary) to be bound for United States federal income tax purposes to such tax characterization.  Copies of the Prospectus are available from the Company or any underwriter or any dealer participating in the offering by calling toll free, 1-888-227-2275 (extension 2-3430).

 

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

 

	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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

 

Dated:

 

	
 
    	
THE BANK OF NEW YORK MELLON
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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(Reverse of Certificate)

 

The Securities are part of a duly authorized issue of securities of the Company issued and to be issued in one or more series under an Indenture, dated as of September 16, 2004 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  Insofar as the provisions of the Indenture may conflict with the provisions set forth on the face of this Certificate, the latter shall control for purposes of the Securities.

 

The Securities are part of the series designated on the face hereof.  References herein to “this series” mean the series designated on the face hereof.

 

Payments under the Securities will be made without deduction or withholding for, or on account of, any and all present or future income, stamp and other taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Taxes”) now or hereafter imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power to tax (each a “Taxing Jurisdiction”), unless such deduction or withholding is required by law.  If any such Taxes are at any time required by a Taxing Jurisdiction to be deducted or withheld, the Company will, subject to the exceptions and limitations set forth in Section 10.04 of the Indenture, pay such additional amounts of the principal of such Securities and any other amounts payable on such Securities (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holders of any Securities, after such deduction or withholding, shall equal the amounts of the principal of such Securities and any other amounts payable on such Securities that would have been payable in respect of such Securities had no such deduction or withholding been required.

 

If at any time the Company determines that as a result of a change in or amendment to the laws or regulations of a Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a party), or a change in an official application or interpretation of such laws or regulations (including a decision of any court or tribunal), which change or amendment becomes effective on or after the date of the Pricing Supplement as specified on the face hereof in making any payment of, or in respect of, the principal amount of the Securities, the Company would be required to pay any Additional Amounts with respect thereto, then the Securities will be redeemable upon not less than 30 nor more than 60 days’ notice by mail, at any time thereafter, in whole but not in part, at the election of the Company as provided in the Indenture at a redemption price per Outstanding Security being redeemed equal to 100% of the Stated Principal Amount together with any accrued but unpaid interest to the date fixed for redemption.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company

 

(Reverse of Certificate continued on next page)

 

-9-

 

and the rights of the Holders of the Securities of each series to be 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 all series to be affected (considered together as one class for this purpose).  The Indenture also contains provisions (i) permitting the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of all series to be affected under the Indenture (considered together as one class for this purpose), on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and (ii) permitting the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of any series to be affected under the Indenture (with each such series considered separately for this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences.  Any such consent or waiver by Holders of the Securities shall be conclusive and binding upon such Holders and upon all future Holders of the Securities and of any Securities 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 the Securities.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Certificate shall not have any right to institute any proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 25% in aggregate principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holders of the Securities for the enforcement of any payment of principal hereof on or after the respective due dates expressed herein.

 

(Reverse of Certificate continued on next page)

 

-10-

 

No reference herein to the Indenture and no provision of the Securities or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of the Securities as herein provided.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of the Securities is registrable in the Senior Debt Security Register, upon surrender of the Securities for registration of transfer at the office or agency of the Company in any place where the principal of the Securities is payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Senior Debt Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing.  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, and any other Securities of this series and of like tenor, are issuable only in registered form without coupons in denominations as specified on the face hereof.  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.

 

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

 

Prior to due presentment of this Certificate 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 Certificate is registered as the owner hereof for all purposes, whether or not the Securities be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

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

 

-11-

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