Document:

EX-4.9

 Exhibit 4.9 

EXECUTION VERSION 
  

 
  

NOTEHOLDERS AGREEMENT 

with respect to 
 THE
FLOATING RATE NOTES DUE 2022 AND 
 THE FLOATING RATE NOTES DUE 2025 

of 
 VERIZON
COMMUNICATIONS INC. 
 dated as of February 21, 2014 

 
  

 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
	Article I DEFINITIONS	  	 	1	  
			
	        1.1	  	Certain Defined Terms.	  	 	1	  
	        1.2	  	Other Definitional Provisions.	  	 	4	  
		
	 Article II TRANSFERS
	  	 	4	  
			
	        2.1	  	Rights and Obligations of Transferees.	  	 	4	  
	        2.2	  	Transfer Restrictions.	  	 	4	  
	        2.3	  	Void Transfers.	  	 	5	  
	        2.4	  	Trading Restrictions.	  	 	5	  
	        2.5	  	No Vodafone Entity Repurchase.	  	 	5	  
	        2.6	  	Regulation S Restricted Period.	  	 	6	  
		
	Article III REPURCHASE	  	 	6	  
			
	        3.1	  	Optional Repurchase Right.	  	 	6	  
	        3.2	  	Notices.	  	 	6	  
	        3.3	  	Payment.	  	 	6	  
	        3.4	  	Pro-Rata Payments.	  	 	6	  
	        3.5	  	Failure to Deliver Notes.	  	 	6	  
	        3.6	  	Title to Notes.	  	 	6	  
	        3.7	  	No Transfer Following Repurchase Notice.	  	 	6	  
		
	Article IV MISCELLANEOUS	  	 	7	  
			
	        4.1	  	Termination.	  	 	7	  
	        4.2	  	Amendments and Waivers.	  	 	7	  
	        4.3	  	Successors and Assigns.	  	 	7	  
	        4.4	  	Notices.	  	 	7	  
	        4.5	  	Further Assurances.	  	 	8	  
	        4.6	  	Entire Agreement; No Third Party Beneficiaries.	  	 	8	  
	        4.7	  	Restrictions on Other Agreements.	  	 	8	  
	        4.8	  	Delays or Omissions.	  	 	8	  
	        4.9	  	Submission to Jurisdiction.	  	 	8	  
	        4.10	  	Waiver of Jury Trial.	  	 	9	  
	        4.11	  	Severability.	  	 	9	  
	        4.12	  	Enforcement.	  	 	9	  
	        4.13	  	Titles and Subtitles.	  	 	9	  
	        4.14	  	Governing Law.	  	 	9	  
	        4.15	  	Counterparts; Facsimile Signatures.	  	 	9	  
		
	 Exhibits
	  			
		
	 Exhibit A—Form of Regulation S Certificate
	  			
	 Exhibit B—Form of Reduction Notice
	  			
	 Exhibit C—Form of 2022 Note
	  			
	 Exhibit D—Form of 2025 Note
	  			
	Exhibit E—Form of Verizon Officers’ Certificate (Including Form of Notice of Transfer and Form of Joinder Agreement)	  			

  
 - i - 

 THIS NOTEHOLDERS AGREEMENT (as amended, waived, supplemented or otherwise modified from time to
time, this “Agreement”) is entered into as of February 21, 2014, among Vodafone Group Plc, an English public limited company (“Vodafone”), Vodafone 4 Limited, an indirect wholly owned Subsidiary of Vodafone
(the “Seller”) and Verizon Communications Inc., a Delaware corporation (the “Company”), and any Affiliate of Vodafone who becomes a party hereto by executing a Joinder Agreement pursuant to Section 2.1(b)
hereto. 
 WHEREAS, pursuant to the Stock Purchase Agreement, dated as of September 2, 2013, and amended as of December 5, 2013
(as so amended and as subsequently amended, supplemented or modified from time to time, the “Stock Purchase Agreement”), by and among Vodafone, the Seller and the Company, the Seller has acquired $2,500,000,000 aggregate principal amount
of the Company’s Floating Rate Notes due 2022 (the “2022 Notes”) and $2,500,000,000 aggregate principal amount of the Company’s Floating Rate Notes due 2025 (the “2025 Notes” and together with the 2022
Notes, the “Initial Notes”) from the Company on the Closing Date (the “Transaction”); 
 WHEREAS, in
connection with the Seller’s acquisition of the Initial Notes, the Seller provided Verizon an officer’s certificate (the “Regulation S Certificate”) in the form attached hereto as Exhibit A; 

WHEREAS, concurrently with the consummation of the Transaction, Vodafone, the Seller and the Company have entered into an Exchange and
Registration Rights Agreement (the “Registration Rights Agreement”), dated the Closing Date, providing for, among other things, the exchange of the Initial Notes for new senior unsecured notes of the Company registered under the
Securities Act (the “Exchange Notes,” and together with the Initial Notes, the “Notes”) having substantially the same terms as the Initial Notes (other than provisions relating to Additional Interest), on the terms
and subject to the conditions set forth therein; and 
 WHEREAS, concurrently with the consummation of the Transaction, Vodafone, the Seller
and the Company desire to enter into this Agreement to provide for certain rights and restrictions with respect to the Notes. 
 NOW,
THEREFORE, in consideration of the foregoing and of the mutual promises hereinafter set forth, each party hereto hereby agrees as follows: 

ARTICLE I 
 DEFINITIONS 

1.1 Certain Defined Terms. As used herein, the following terms shall have the following meanings: 

“2022 Notes” has the meaning given to such term in the preamble. 

“2022 Physical Note” has the meaning given to such term in Section 2.2(c). 

“2022 Regulation S Global Note” has the meaning given to such term in Section 2.2(c). 

“2025 Notes” has the meaning given to such term in the preamble. 

“2025 Physical Note” has the meaning given to such term in Section 2.2(c). 

“2025 Regulation S Global Note” has the meaning given to such term in Section 2.2(c). 

“Affiliate” has the meaning given to such term in the Stock Purchase Agreement. 

“Agreement” has the meaning given to such term in the preamble. 

 “Beneficial Owner” or “Beneficially Own” has the meaning given
to such term in Rule 13d-3 under the Exchange Act, and a Person’s Beneficial Ownership of the Notes shall be calculated in accordance with the provisions of such Rule. 

“Business Day” has the meaning given to such term in the Stock Purchase Agreement. 

“CDS” has the meaning given to such term in Section 2.4. 

“Closing Date” means February 21, 2014. 

“Company” has the meaning given to such term in the preamble. 

“Control” (including the terms “controlling,” “controlled by” and “under common
control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise. 
 “Disposal” or “Dispose” means, directly
or indirectly, to sell, transfer or similarly dispose of, either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer or similar disposition of, any Notes
Beneficially Owned by a Noteholder or any interest in any Notes Beneficially Owned by a Noteholder. 
 “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Exchange Notes”
has the meaning given to such term in the preamble. 
 “Form of 2022 Note” has the meaning given to such term in
Section 2.2(c). 
 “Form of 2025 Note” has the meaning given to such term in Section 2.2(c). 

“Global Notes” has the meaning given to such term in Section 2.2(c). 

“Indenture” means the Indenture dated as of December 1, 2000, between the Company, as successor in interest to Verizon
Global Funding Corp., and U.S. Bank National Association, as successor to Wachovia Bank, National Association, formerly known as First Union National Bank, as Trustee, as amended by the first, second and third supplemental indentures, and as the
same may be amended, waived, supplemented or otherwise modified from time to time. 
 “Initial Notes” has the meaning given
to such term in the preamble. 
 “Joinder Agreement” has the meaning given to such term in Section 2.1(b). 

“Law” has the meaning given to such term in the Stock Purchase Agreement. 

“Notes” has the meaning given to such term in the preamble. 

“Noteholder” and “Noteholders” means the Seller and any subsequent Transferee that is a Vodafone Entity, in
each case so long as (and only so long as) such Person is (and remains) a holder of Notes. 
 “Optional Repurchase” has the
meaning given to such term in Section 3.1. 
 “Optional Repurchase Price” has the meaning given to such term in
Section 3.1. 

  
 2 

 “Outstanding” or “outstanding,” when used with respect to the
Notes means, as of the date of determination, all Notes theretofore authenticated and delivered under the Indenture, except (i) Notes theretofore cancelled or delivered to the Trustee for cancellation, (ii) Notes for whose
payment or repurchase money in the necessary amount has been theretofore deposited with the Trustee or paying agent in trust for the holders of such Notes, provided that, if such Notes are to be repurchased, notice of such repurchase has been
duly given pursuant to Article III hereto, and (iii) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to the Indenture. 

“Person” has the meaning given to such term in the Stock Purchase Agreement. 

“Physical Notes” has the meaning given to such term in Section 2.2(c). 

“Pricing Date” means five Business Days prior to the Closing Date. 

“Reduction Notice” has the meaning given to such term in Section 2.2(b). 

“Registration Rights Agreement” has the meaning given to such term in the preamble. 

“Regulation S Global Security” has the meaning given to it in the Indenture. 

“Regulation S Restricted Period” has the meaning given to it in the Indenture. 

“Representatives” means with respect to any Person, any of such Person’s, or its Affiliates’, directors, officers,
employees, general partners, Affiliates, direct or indirect shareholders, members or limited partners, attorneys, accountants, financial and other advisers, and other agents and representatives. 

“Repurchase Notice” has the meaning given to such term in Section 3.2. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

“Seller” has the meaning given to such term in the preamble. 

“Stock Purchase Agreement” has the meaning given to such term in the recitals. 

“Subsidiary” has the meaning given to such term in the Stock Purchase Agreement. 

“Transaction” has the meaning given to such term in the preamble. 

“Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of,
either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of, any Notes Beneficially
Owned by a Person or any interest in any Notes Beneficially Owned by a Person. In the event that any Noteholder that is a corporation, partnership, limited liability company or other legal entity (other than an individual, trust or estate) ceases to
be, directly or indirectly, controlled by the Person controlling such Noteholder as of the date hereof or a Vodafone Entity, such event shall be deemed to constitute a “Transfer” subject to the restrictions on Transfer contained or
referenced herein. Any transfer of all or any portion of the principal amount of a Physical Note to the applicable Global Note shall constitute a “Transfer.” Any exchange of the Initial Notes for Exchange Notes pursuant to the Registration
Rights Agreement, shall not constitute a “Transfer.” 
 “Transferee” means any Person to whom any Noteholder or
any Transferee thereof Transfers Notes in accordance with the terms of this Agreement. 

  
 3 

 “Trustee” means U.S. Bank National Association. 

“Verizon Officers’ Certificate” has the meaning given to such term in Section 2.2(c). 

“Vodafone Entity” means Vodafone or any of its Affiliates. 

“Vodafone Notes” any outstanding Notes that are legally or Beneficially Owned by a Vodafone Entity, whether directly or
indirectly or in whole or in part, and which have not been previously Transferred to a Person that is not a Vodafone Entity. 
 1.2 Other
Definitional Provisions. 
 (a) The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Article and Section references are to this Agreement unless otherwise specified. 

(b) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 

(c) Reference to the amount of any Notes shall be to the principal amount of such Notes. 

ARTICLE II 
 TRANSFERS 

2.1 Rights and Obligations of Transferees. 

(a) No Transferee of any Noteholder, except a Vodafone Entity, shall be entitled to any rights or subject to any obligations under this
Agreement. 
 (b) As a condition precedent to the consummation of a Transfer by any Noteholder to any Vodafone Entity, the applicable
Transferee shall execute and deliver a joinder agreement in the form included in Exhibit E attached hereto (a “Joinder Agreement”) to the Company and the Transferring Noteholder. 

2.2 Transfer Restrictions. 

(a) Prior to June 30, 2020, no Noteholder may effect any Transfer of all or any portion of the Notes, or any interest therein, other
than: (i) Disposals to another Vodafone Entity; provided that such proposed Transferee executes and delivers a Joinder Agreement as required pursuant to Section 2.1(b); (ii) subject to Section 2.2(b),
Disposals of up to $2.5 billion aggregate principal amount of the 2022 Notes during the period from January 1, 2017 through and including June 30, 2017; and (iii) subject to Section 2.2(b), Disposals of up to $2.5 billion
aggregate principal amount of Notes (which Notes may be either the 2022 Notes or the 2025 Notes, or any combination thereof) during the period from January 1, 2019 through and including June 30, 2019. Notwithstanding the foregoing, in no
event shall the Noteholders Transfer more than $2.5 billion aggregate principal amount of Notes to any entity other than a Vodafone Entity, during any rolling 12-month period. 

(b) If the Company repurchases any Notes pursuant to Article III, prior to January 1, 2017, the Company shall have the right, but not the
obligation, to reduce the aggregate principal amount of Notes thereafter Transferable pursuant to either clause (ii) or (iii) of Section 2.2(a), as and to the extent specified by the Company in a notice to be given by the Company to
Vodafone prior to January 1, 2017 in the form attached hereto as Exhibit B (each, a “Reduction Notice”), up to the principal amount of Notes so repurchased; provided, however, that in the event that a
Reduction Notice specifies that a repurchase of the 2022 Notes shall reduce the aggregate 

  
 4 

 
principal amount of Notes that may be transferred pursuant to Section 2.2(a)(iii), a corresponding aggregate principal amount of the 2025 Notes shall thereafter be transferable pursuant to
Section 2.2(a)(ii), it being understood that this proviso shall not increase the aggregate principal amount of Notes transferable pursuant to Section 2.2(a)(ii) and (iii). 

(c) The 2022 Notes, in the form attached hereto as Exhibit C (the “Form of 2022 Note”), have initially been issued in
the form of one physical certificated note in the principal amount of $2,499,998,000 (the “2022 Physical Note”) and one Regulation S Global Security, in the principal amount of $2,000 (the “2022 Regulation S Global
Note”). The 2025 Notes, in the form attached hereto as Exhibit D (the “Form of 2025 Note”), have initially been issued in the form of one physical certificated note in the principal amount of $2,499,998,000 (the
“2025 Physical Note” and together with the 2022 Physical Note, the “Physical Notes”) and one Regulation S Global Security, in the principal amount of $2,000 (the “2025 Regulation S Global Note,” and
together with the 2022 Regulation S Global Notes, the “Global Notes”). The Global Notes have been, and any future Global Notes shall be, registered in the name of The Depository Trust Company or its nominee. In order for the Trustee
to Transfer all or any portion of the principal amount of the Physical Notes to the applicable Global Notes, the Trustee is required to have received (i) an executed certificate of an authorized officer of the Company in the form attached
hereto as Exhibit E (a “Verizon Officers’ Certificate”), which shall include a Notice of Transfer as described below and (ii) the Physical Note to be Transferred; provided, however, that in the event
of a partial Transfer of a Physical Note, the Physical Note to be partially Transferred shall be cancelled and a new Physical Note representing the principal amount to be retained by the Transferring Noteholder shall be issued in the name of such
Noteholder. 
 (d) Prior to and as a condition to any Transfer of the Notes by a Noteholder pursuant to Section 2.2(a), the Noteholder
will execute and deliver to the Company a notice of its intention to Transfer, in the form attached as Annex A to Exhibit E hereto (a “Notice of Transfer”), which shall include, if applicable, an executed Joinder Agreement in
the event of a proposed Transfer to a Vodafone Entity. 
 (e) Upon receipt of an executed Notice of Transfer (and, if applicable, an
executed Joinder Agreement), the Company agrees to provide to the Trustee a Verizon Officers’ Certificate, no later than 2 Business Days after receipt of the Notice of Transfer; provided, however, that the Company will not be
obligated to deliver the Verizon Officers’ Certificate if it reasonably believes on the written advice of counsel that the Transfer is not permitted under this Section 2.2, under the Indenture or under applicable Law, or if a Vodafone
Entity has failed, and continues to fail, to deliver any Notes subject to a Repurchase Notice to the Company or any other person designated by the Company to receive such Notes on the Repurchase Payment Date. 

2.3 Void Transfers. Any Transfer or attempted or purported Transfer in violation of this Agreement shall be void. 

2.4 Trading Restrictions. Prior to January 1, 2017, no Vodafone Entity will participate, directly or indirectly, in markets for
the Company’s debt securities or credit default swaps (“CDS”); provided, however, that the foregoing shall not be deemed to restrict the Company’s ability to market or issue debt securities during such
period. 
 2.5 No Vodafone Entity Repurchase. In no instance shall a Vodafone Entity purchase or otherwise acquire a beneficial
interest in or record ownership of, either directly or indirectly, any Notes Transferred to any holder of the Notes that is not a Vodafone Entity; provided, however, that this Section 2.5 shall not prohibit the acquisition of any
indirect interest in any Notes Transferred to any holder of the Notes that is not a Vodafone Entity that arises by virtue of such holder becoming an Affiliate of Vodafone, provided that (i) such holder becoming an Affiliate of Vodafone was not
reasonably foreseeable at the time such holder acquired an interest in the Notes and (ii) the acquisition of any indirect interest in the Notes by a Vodafone Entity was not part of a plan or scheme to evade the provisions or intent of this
Agreement. 

  
 5 

 2.6 Regulation S Restricted Period. Following the Regulation S Restricted Period, the
Company shall use its commercially reasonable efforts, upon a Holder’s request, to have (a) the Global Notes transferred into an unrestricted CUSIP through the facilities of the Depository Trust Company and (b) the “Regulation S
Legend” removed from the Physical Notes. 
 ARTICLE III 

REPURCHASE 
 3.1 Optional
Repurchase Right. At any time following February 21, 2016, the Company shall have the right to repurchase from time to time (the “Optional Repurchase”) all or any portion of the outstanding Vodafone Notes. The repurchase
price with respect to such Vodafone Notes shall be equal to 100% of the aggregate principal amount of the Notes being repurchased plus accrued and unpaid interest on the Notes being repurchased to, but excluding, the date of repurchase (the
“Optional Repurchase Price”). 
 3.2 Notices. Prior to any exercise by the Company of its rights to repurchase all
or any portion of the Vodafone Notes, the Company will send a written notice (a “Repurchase Notice”) to the applicable Noteholder stating (a) the principal amount of 2022 Notes and/or 2025 Notes, as applicable, to be
repurchased from such Noteholder, (b) the Optional Repurchase Price and the date on which such Vodafone Notes are to be repurchased, which date shall be no earlier than 30 days and no later than 60 days from the date on which such Repurchase
Notice is sent (the “Repurchase Payment Date”) and (c) the place or places where such Vodafone Notes are to be surrendered for payment of the Optional Repurchase Price. 

3.3 Payment. On the Repurchase Payment Date: 
  

	 	(a)	the Noteholder will deliver the Notes being repurchased to the Company; and 

  

	 	(b)	the Company will: 

 (i) accept such Notes for payment; and 

(ii) deposit with the Noteholder or any other Person designated by the Noteholder to receive funds on its behalf an amount
equal to the Optional Repurchase Price in immediately available funds to the account specified by the Noteholder. 
 3.4 Pro-Rata
Payments. In the event that the Vodafone Notes to be repurchased are held by more than one Noteholder the Optional Repurchase shall be made pro-rata, in integral multiples of $1,000, by the applicable series of Notes. 

3.5 Failure to Deliver Notes. Vodafone shall indemnify the Company and shall hold it harmless from any interest payments required to be
paid on the Notes to a Person that is not a controlled Affiliate of the Company as a result of the failure of any Vodafone Entity to deliver the Notes being repurchased to the Company on the Repurchase Payment Date. 

3.6 Title to Notes. At all times while this Agreement is in effect, each Vodafone Entity that is a Noteholder of the Vodafone Notes
will, subject to Section 2.2(a), maintain good and valid title to its Vodafone Notes, free and clear of all liens, encumbrances, equities or adverse claims; and, upon delivery of any Vodafone Notes and payment therefor in connection with any
Optional Repurchase hereunder, good and valid title to such Vodafone Notes, free and clear of all liens, encumbrances, equities or adverse claims, will pass to the Company. 

3.7 No Transfer Following Repurchase Notice. At any time following the receipt of a Repurchase Notice, no Noteholder may agree to any
Transfer of the principal amount of the Notes subject to such Repurchase Notice or effect any Transfer of the principal amount of the Notes subject to such Repurchase Notice not agreed to prior to 

  
 6 

 
the effectiveness of the applicable Repurchase Notice, unless and until the Company fails to pay the applicable Optional Repurchase Price with respect to such Notes on the applicable Repurchase
Payment Date (other than as a result of the failure on the part of the Noteholder to deliver the Notes being repurchased to the Company on the Repurchase Payment Date). 

ARTICLE IV 
 MISCELLANEOUS 

4.1 Termination. Subject to the early termination of any provision as a result of an amendment to this Agreement agreed to by the
Noteholders as provided under Section 4.2, Sections 2.1 and 2.3, and this Section 4.1 shall not terminate until such time as no Vodafone Notes remain outstanding. Nothing herein shall relieve any party from any liability for the breach of
any of the agreements set forth in this Agreement. Notwithstanding any such termination, the provisions of Section 3.5 shall remain in effect. 

4.2 Amendments and Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure
therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto; provided, however, that any Joinder Agreement executed pursuant to Section 2.1(b) shall not be considered an
amendment for purposes of this Section 4.2. 
 4.3 Successors and Assigns. This Agreement shall bind and inure to the benefit of
and be enforceable by the parties hereto and their respective successors and permitted assigns, including all Vodafone Entities that hold or Beneficially Own Notes. 

4.4 Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be effective
(a) when personally delivered or transmitted by telecopier on a business day during normal business hours where such notice is to be received at the address or number designated below or (b) on the business day where such notice is to be
received following the date of mailing by overnight courier, fully prepaid, addressed to such address, whichever shall first occur. The addresses for such communications shall be: 

 

	 	(a)	if to Vodafone, to: 

 Vodafone Group Plc 

Vodafone House 
 The Connection

 Newbury 
 Berkshire 

RG14 2FN 
 Fax: +44 1635 238080

 Attention: Company Secretary 

if to Seller, to: 
 Vodafone 4
Limited 
 Rivium Quadrant 173 

2909 LC Capelle aan den Ijssel 

The Netherlands 
 Telecopier +31
10 498 77 22 
 Attention: Erik de Rijk, Managing Director 

  
 7 

	 	(b)	if to the Company, to: 

 Verizon Communications Inc. 

One Verizon Way 
 Basking Ridge,
NJ 07920 
 Fax: (908) 766-3813 

Attention: William L. Horton, Jr., Senior Vice President, Deputy General Counsel and Corporate Secretary 

 

	 	(c)	if to any other Noteholder, to the address of such other Noteholder as shown on the Joinder Agreement delivered by such Noteholder. 

4.5 Further Assurances. Subject to the terms and provisions of this Agreement, each party hereto shall do and perform or cause to be
done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments, and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions contemplated hereby and thereby. 
 4.6 Entire Agreement; No
Third Party Beneficiaries. This Agreement, together with the Indenture, the Notes and the Registration Rights Agreement, constitutes the entire agreement among the parties hereto with respect to the subject matter of this Agreement and
supersedes any prior discussions, correspondence, negotiation, proposed term sheet, agreement or understanding, and the parties hereto make no representations or warranties with respect to such subject matter other than those set forth or referred
to in this Agreement, and, except as provided in Section 4.3, this Agreement is not intended to confer upon any Person not a party to this Agreement (and their successors and assigns) any rights, benefits, causes of action or remedies with
respect to the subject matter or any provision hereof. 
 4.7 Restrictions on Other Agreements. Following the date hereof, no
Noteholder or Vodafone Entity shall enter into or agree to be bound by any agreements or arrangements of any kind with any Person with respect to any Notes except as would not conflict with this Agreement or the Registration Rights Agreement. 

4.8 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party, upon any
breach, default or noncompliance by another party hereto under this Agreement, shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of or
in any similar breach, default or noncompliance thereafter occurring. All remedies, either under this Agreement, by Law, or otherwise afforded to any party, shall be cumulative and not alternative. 

4.9 Submission to Jurisdiction. Each party to this Agreement irrevocably agrees that any legal action or proceeding with respect to
this Agreement or for recognition and enforcement of any judgment in respect hereof brought by another party hereto or its successors or assigns shall be brought and determined in the United States District Court for the Southern District of New
York (or, to the extent such court does not have subject matter jurisdiction, the Supreme Court of the State of New York in New York County), and each party to this Agreement hereby irrevocably submits with regard to any such action or proceeding
for itself and in respect to its property, generally and unconditionally, to the exclusive jurisdiction of the aforesaid courts. Each party to this Agreement hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense,
counterclaim or otherwise, in any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process
in accordance with this Section 4.9, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to
judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (c) to the fullest extent permitted by Law, that (i) the suit, action or proceeding in any such court is brought in an
inconvenient forum, (ii) the venue of such suit, action or proceeding is improper and (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. 

  
 8 

 4.10 Waiver of Jury Trial. Each of the parties hereto irrevocably and unconditionally
waives trial by jury in any legal action or proceeding relating to this Agreement or the transactions contemplated hereby and for any counterclaim therein. 

4.11 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or
public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to
any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 

4.12 Enforcement. Each party hereto acknowledges that money damages would not be an adequate remedy in the event that any of the
covenants or agreements in this Agreement are not performed in accordance with its terms, and it is therefore agreed that in addition to and without limiting any other remedy or right it may have, the non-breaching party will have the right to an
injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof. 

4.13 Titles and Subtitles. The titles of the articles, sections and subsections of this Agreement are for convenience of reference only
and will not affect the meaning or interpretation of this Agreement. 
 4.14 Governing Law. This Agreement shall be governed and
construed in accordance with the Laws of the State of New York, without regard to the conflicts of Law rules of such state that would result in the application of the Laws of any other jurisdiction 

4.15 Counterparts; Facsimile Signatures. This Agreement may be executed in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts shall together constitute one and the same instrument. Each of the parties hereto (i) has agreed to permit the use, from time to time, of faxed or otherwise electronically
transmitted signatures in order to expedite the consummation of the transactions contemplated hereby, (ii) intends to be bound by its respective faxed or otherwise electronically transmitted signature, (iii) is aware that the
other parties hereto will rely on the faxed or otherwise electronically transmitted signature, and (iv) acknowledges such reliance and waives any defenses to the enforcement of the documents effecting the transaction contemplated by this
Agreement based on the fact that a signature was sent by fax or otherwise electronically transmitted. 
 [Rest of page intentionally left
blank] 

  
 9 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth in
the first paragraph hereof. 
  

					
	VERIZON COMMUNICATIONS INC.
		
	 By:    
	 	     /s/ Matthew D. Ellis

		 	 Name:
	 	 Matthew D. Ellis

		 	 Title:
	 	 Senior Vice President and Treasurer

	
	VODAFONE GROUP PLC
		
	 By:    
	 	     /s/ Rosemary Martin

		 	 Name: Rosemary Martin

Title: Group General Counsel & Company

Secretary

	
	VODAFONE 4 LIMITED
		
	 By:    
	 	     /s/ Erik de Rijk

		 	 Name: Erik de Rijk

Title: Managing Director

 (Noteholders Agreement) 

 Exhibit A 

February 21, 2014 
 VERIZON COMMUNICATIONS
INC. 
 140 West Street 
 New York, NY 10007 

 

	 	Re:	Floating Rate Notes due 2022 and Floating Rate Notes due 2025 of Verizon Communications Inc. – Regulation S Certificate 

Ladies and Gentlemen: 
 Reference is hereby made
to the Stock Purchase Agreement, dated as of September 2, 2013, and amended as of December 5, 2013 (as so amended and as subsequently amended, supplemented or modified from time to time, the “Stock Purchase Agreement”) by
and among Vodafone Group Plc, an English public limited company (“Vodafone”), Vodafone 4 Limited, an indirect wholly owned Subsidiary of Vodafone (the “Seller”), and Verizon Communications Inc., a Delaware
corporation (the “Company”), whereby, among other things, the Company agreed to issue to the Seller $2,500,000,000 aggregate principal amount of the Company’s Floating Rate Notes due 2022 (the “2022 Notes”) and
$2,500,000,000 aggregate principal amount of the Company’s Floating Rate Notes due 2025 (together with the 2022 Notes, the “Verizon Notes”). 

In connection with the Seller’s acquisition of the Verizon Notes pursuant to the Stock Purchase Agreement, the Seller represents: 

(a) that it is not a U.S. person and is acquiring the Verizon Notes in an offshore transaction (as such terms are defined in Rule 902 of
Regulation S under the Securities Act); and 
 (b) that it will not within 40 days after the date of the original issuance of the Verizon
Notes, offer, resell or otherwise transfer such Verizon Notes except to Vodafone, any Subsidiary of Vodafone that is not a U.S. person or to the Company or any Subsidiary thereof. 

Capitalized terms used, but not defined, herein shall have the meanings ascribed thereto in the Stock Purchase Agreement. 

 

			
	Very truly yours,
	
	VODAFONE 4 LIMITED
		
	By:	 	  

		 	Name:
		 	Title:

 Exhibit B 

VERIZON COMMUNICATIONS INC. 
 140
West Street 
 New York, NY 10007 
 Vodafone
Group Plc 
 Vodafone House 
 The Connection 

Newbury 
 Berkshire 

RG14 2FN 
 Fax: +44 1635 238080 

Attention: Company Secretary 
 Reference is
hereby made to the Noteholders Agreement, dated as of February 21, 2014, by and among Verizon Communications Inc. (“Verizon”), Vodafone Group Plc (“Vodafone”), and Vodafone 4 Limited, an indirect wholly owned
Subsidiary of Vodafone (the “Seller”) (as the same may be amended and supplemented, the “Noteholders Agreement”), entered into in connection with the issuance of Verizon’s Floating Rate Notes due 2022 (the
“2022 Notes”) and Floating Rate Notes due 2025 (the “2025 Notes” and together with the 2022 Notes, the “Verizon Notes”) issued pursuant to the Indenture, dated as of December 1, 2000 between
Verizon, as successor in interest to Verizon Global Funding Corp., and U.S. Bank National Association, as successor to Wachovia Bank, National Association (formerly known as First Union National Bank), as trustee (the “Trustee”), as
amended by the first, second and third supplemental indentures. This notice is delivered to you in accordance with Section 2.2(b) of the Noteholders Agreement. 

You are hereby notified that Verizon intends to reduce the aggregate principal amount of the 20[●] Notes, that may be transferred by the
Noteholder during the period beginning on January 1, [2017/2019] and ending on June 30 [2017/2019] to $[●] as a consequence of the repurchase by Verizon of $[●] aggregate principal amount of the 20[●] Notes in accordance
with Section 2.2(b) of the Noteholders Agreement[, it being understood that a corresponding aggregate principal amount of the 2025 Notes shall thereafter be transferable pursuant to Section 2.2(a)(ii) of the Noteholders Agreement]1. 
 Capitalized terms used, but not defined, herein shall have the meanings ascribed
thereto in the Noteholders Agreement. 
  

			
	Very truly yours,
		
	By:	 	  

		 	 Name:

		 	 Title:

  

	1 	Language should be included only if the Company specified that a repurchase of 2022 Notes reduced the aggregate principal amount of Notes that may be Transferred during the 2019 transfer window. 

 Exhibit C 

FORM OF 2022 NOTE 
 [TRANSFERS OF THIS
NOTE BY THE HOLDER THEREOF WILL BE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE NOTEHOLDERS AGREEMENT, DATED AS OF FEBRUARY 21, 2014, BY AND AMONG VERIZON COMMUNICATIONS INC., VODAFONE GROUP PLC AND VODAFONE 4 LIMITED.]1 
 [REGULATION S LEGEND] 

[THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM]2 [PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (A) THE DATE ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT)
AND (B) THE ORIGINAL ISSUE DATE OF THE SECURITY]3. 
 [THE FOREGOING LEGEND MAY BE REMOVED FROM
THIS SECURITY AFTER 40 DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DATE ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE
OF THE SECURITY.]4 
 [GLOBAL NOTE LEGEND] 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY 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. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.]5 
  

					
	 No.
                    
	  	$	                    	  

 [CUSIP No.: [●] 
 ISIN No.:
[●]]6 
  

	1 	Include only in the case of a Physical Note. 

	2 	Include in the case of a Regulation S Global Note and Physical Note. 

	3 	Include in the case of a Regulation S Global Note 

	4 	Include in the case of a Physical Note. 

	5 	To be inserted if a Global Security. 

	6 	Do not include for the Physical Notes. 

 Verizon Communications Inc. 

Floating Rate Notes due 2022 
 Verizon
Communications Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to [●], or registered assigns, the principal sum
of              Dollars ($             ) [(subject to adjustment as reflected in the Schedule of Increases and
Decreases in Global Security attached hereto)]7 on February 21, 2022, and to pay interest on said principal sum at the floating rate per annum determined in accordance with the provisions
below (the “interest rate”), until the principal hereof shall have become due and payable, and on any overdue principal and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of
interest at the same rate per annum. This Debt Security (or one or more Predecessor Securities, as defined in the Indenture) shall bear interest at a rate per annum equal to LIBOR (as defined below) plus 1.222%, which rate will be reset quarterly
(as described below), and will be payable quarterly in arrears on each February 21, May 21, August 21 and November 21, each an “interest payment date.” If any interest payment date falls on a day that is not a
business day (as defined below), the Company will make the interest payment on the next succeeding business day unless such business day is in the next succeeding calendar month, in which case the Company will make the interest payment on the
immediately preceding business day. 
 Interest on this Debt Security will accrue from, and including, February 21, 2014, to, but excluding, the first
interest payment date and then from and including, the immediately preceding interest payment date to which interest has been paid or duly provided for (or from, and including, February 21, 2014, if no interest has been paid or duly provided
for) to, but excluding, the next applicable interest payment date or the maturity date, as the case may be (each of these periods, an “interest period”). The amount of accrued interest payable for any interest period shall be calculated by
multiplying the face amount of this Debt Security by an accrued interest factor. Such accrued interest factor is computed by adding the interest factor calculated for each day from February 21, 2014, or from the immediately preceding interest
payment date to which interest has been paid or duly provided for, to the date for which accrued interest is being calculated. The interest factor for each day shall be computed by dividing the interest rate applicable to such day by 360. 

If the maturity date of this Debt Security falls on a day that is not a business day, the payment of principal, premium, if any, and interest shall be made on
the next succeeding business day, as if made on the date such payment was due, and no interest on such payment shall accrue on such payment for the period from and after the maturity date to the date of such payment on the next succeeding business
day. 
 The interest installment so payable, and punctually paid or duly provided for, on any interest payment date will, as provided in the Indenture
hereinafter referred to, be paid to the person in whose name this Debt Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment, which shall be the fifteenth
calendar day, whether or not a business day, immediately preceding such interest payment date. However, interest that the Company pays on the maturity date shall be payable to the person to whom the principal hereof shall be payable. Any such
interest installment not so punctually paid or duly provided for shall forthwith cease to be payable to the registered holder on such regular record date, and may be paid to the person in whose name this Debt Security (or one or more Predecessor
Securities) is registered at the close of business on a special record date to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be given to the registered holders of this series of Debt Securities as provided
in the Indenture, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Debt Securities may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture hereinafter referred to. 
 As used herein, “business day” means any day other than a Saturday or a Sunday
that is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive order to close in 

 

	7 	To be inserted if a Global Security. 

  
 2 

 
The City of New York; provided, that such day is also a London business day. “London business day” means any day on which commercial banks are open for business, including dealings in
U.S. dollars, in London. 
 The interest rate on this Debt Security shall be calculated by the calculation agent, which will be an independent investment
banking or commercial banking institution of international standing appointed by the Company and shall be equal to LIBOR (as defined below) plus 1.222%; provided, however, that the interest rate in effect for the period from February 21, 2014
to but excluding May 21, 2014, the initial interest reset date, shall be 1.456% (the “initial interest rate”). The calculation agent will reset the interest rate on each interest payment date, each of which is an “interest reset
date.” The second London business day preceding an interest reset date will be the “interest determination date” for that interest reset date. The interest rate in effect on each day that is not an interest reset date shall be the
interest rate determined as of the interest determination date pertaining to the immediately preceding interest reset date; provided, however, that the interest rate in effect for the period from and including February 21, 2014, to but
excluding the initial interest reset date shall be the initial interest rate. The interest rate in effect on any day that is an interest reset date shall be the interest rate determined as of the interest determination date pertaining to such
interest reset date. 
 “LIBOR” shall be determined by the calculation agent in accordance with the following provisions: 

(i) With respect to any interest determination date, LIBOR shall be the rate for deposits in U.S. dollars having a maturity of three months
commencing on the first day of the applicable interest period that appears on the Designated LIBOR Page as of 11:00 A.M., London time, on such interest determination date. If no such rate appears, then LIBOR, in respect to such interest
determination date, shall be determined in accordance with the provisions described in (ii) below. 
 (ii) With respect to an interest
determination date on which no rate appears on the Designated LIBOR Page, as specified in (i) above, the calculation agent will request the principal London offices of each of four major reference banks in the London interbank market, as
selected by the calculation agent, to provide the calculation agent with its offered quotation for deposits in U.S. dollars for the period of three months, commencing on the first day of the applicable interest period, to prime banks in the London
interbank market at approximately 11:00 A.M., London time, on such interest determination date and in a principal amount of not less than $1,000,000 for a single transaction in U.S. dollars in such market at such time. If at least two such
quotations are so provided, then LIBOR on such interest determination date shall be the arithmetic mean of such quotations. If fewer than two such quotations are so provided, then LIBOR on such interest determination date shall be the arithmetic
mean of the rates quoted at approximately 11:00 A.M., in The City of New York, on such interest determination date by three major banks in The City of New York selected by the calculation agent for loans in U.S. dollars to leading European banks,
having a three month maturity and in a principal amount of not less than $1,000,000 for a single transaction in U.S. dollars in such market at such time; provided, however, that if the banks so selected by the calculation agent are not providing
quotations in the manner described in this sentence, LIBOR determined as of such interest determination date shall be LIBOR in effect on such interest determination date. 

“The Designated LIBOR Page” means the Reuters screen “LIBOR01” page, or any successor page on Reuters selected by the Company with the
consent of the calculation agent, or if the Company determines that no such successor page shall exist on Reuters, the Bloomberg page “BBAM,” or any successor page on Bloomberg selected by the Company with the consent of the calculation
agent. 
 The calculation agent (which initially shall be U.S. Bank National Association, as successor to Wachovia Bank, National Association, and which may
be changed by the Company from time to time subject to the third preceding paragraph) shall calculate the interest rate on this Debt Security on or before each calculation date and, upon request, provide holders of the Debt Securities the interest
rate then in effect and, if determined, the interest rate which shall become effective as a result of a determination made for the next succeeding interest reset date with respect to this Debt Security. The calculation agent’s determination of
any interest rate shall be final and binding absent error in the calculation thereof. The “calculation date” pertaining to any interest determination 

  
 3 

 
date shall be the earlier of (a) the tenth calendar day after such interest determination date, or if any such day is not a business day, the next succeeding business day, or (b) the
business day immediately preceding the applicable interest payment date or the maturity date, as the case may be. 
 Notwithstanding the other provisions
herein, the interest rate hereon shall in no event be higher than the maximum rate permitted by New York law, as the same may be modified by United States law of general application. 

Except as otherwise provided herein, all percentages resulting from any calculation shall be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all amounts used in or resulting from such calculation shall be rounded to the nearest
cent (with one-half cent being rounded upward). 
 The principal of and the interest on this Debt Security shall be payable at the office or agency of the
Company maintained for that purpose in the City of New York, State of New York (and at the office or agency of any paying agent the Company may appoint) in any coin or currency of the United States of America which at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the registered holder at such address as shall appear in the Security Register; provided,
further, that all payments of principal and interest with respect to the Debt Securities [represented by one or more global certificates registered in the name of or held by a depositary or its nominee, or other Debt Securities] in a principal
amount of at least $1,000,000, will be made by wire transfer of immediately available funds to the accounts specified by the Holder or Holders thereof not less than five business days prior to the applicable payment date. This Debt Security shall
not be entitled to any benefit under the Indenture hereinafter referred to, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee. 

The provisions of this Debt Security are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place. 

  
 4 

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

 

							
	Dated:	 		 	VERIZON COMMUNICATIONS INC.

							
				
		 		 	By	 	  

							
		 		 		 	Name:
		 		 		 	Title:

 CERTIFICATE OF AUTHENTICATION 

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

U.S. Bank National Association 
 as
Trustee, Authenticating Agent and 
 Security Registrar 

			
		
	By	 	 
		 	Authorized Signatory

 Dated: 

 (FORM OF REVERSE OF DEBT SECURITY) 

This Debt Security is one of a duly authorized series of Securities of the Company, all issued or to be issued in one or more series under and pursuant to an
Indenture dated as of December 1, 2000, duly executed and delivered by the Company, as successor in interest to Verizon Global Funding Corp. and U.S. Bank National Association, as successor to Wachovia Bank, National Association, formerly known
as First Union National Bank (hereinafter referred to as the “Trustee”), as amended and supplemented (the “Indenture”), to which Indenture reference is hereby made for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Securities. By the terms of the Indenture, the Securities are issuable in series which may vary as to amount, date of maturity, rate of interest and in
other respects as in the Indenture provided. This Debt Security is one of the series designated on the face hereof (herein called the “Debt Securities”) unlimited in aggregate principal amount. 

[Holders of the Debt Securities are entitled to the benefits of the Exchange and Registration Rights Agreement, dated as of February 21, 2014 (the
“Registration Rights Agreement”), among the Company and parties named therein, including the right to receive additional interest under an Additional Interest Trigger (as defined therein). The Debt Securities and any related Exchange
Securities (as defined in the Registration Rights Agreement) shall vote and consent together on all matters as one class, and none of such securities shall have the right to vote or consent as a separate class.]1 
 Beneficial interests in this [global] Debt Security may be held in minimum denominations of $2,000 and
integral multiples of $1,000 in excess of $2,000. This [global] Debt Security shall be exchangeable for Debt Securities in definitive form registered in the names of persons other than the Depository or its nominee only if (i) the
Depository notifies the Company that it is unwilling or unable to continue as the Depository or if at any time such Depository is no longer registered as a clearing agency or in good standing under the Securities Exchange Act of 1934, as amended or
other applicable statute and a successor depository is not appointed by the Company within 90 days or (ii) the Company executes and delivers to the Trustee an Officers’ Certificate that the [global] Debt Security shall be so
exchangeable. To the extent that the [global] Debt Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for Debt Securities registered in such names as the Depository shall direct. Debt Securities represented by this
[global] Debt Security that may be exchanged for Debt Securities in definitive form under the circumstances described in this paragraph will be exchangeable only for Debt Securities in definitive form issued in minimum denominations of $2,000 and
integral multiples of $1,000 in excess of $2,000. Notwithstanding any other provision herein, this [global] Debt Security may not be transferred except as a whole by the Depository to a nominee of such Depository or by a nominee of such Depository
to such Depository or another nominee of such Depository. 
 In case an Event of Default, as defined in the Indenture, with respect to the Debt Securities
shall have occurred and be continuing, the principal of all of the Debt Securities may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal
amount of the Securities of each series affected at the time outstanding, as defined in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of such Securities; provided, however, that no such supplemental indenture shall, among other things, (i) extend the fixed maturity of any
Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, without the consent of the holder of each Debt
Security so affected or (ii) reduce the aforesaid percentage of Debt Securities, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of each Debt Security then outstanding and
affected thereby. The Indenture also contains provisions permitting the 
  

	1 	To be deleted upon issuance of Exchange Notes. 

  
 2 

 
holders of a majority in aggregate principal amount of the Securities of any series at the time outstanding, on behalf of the holders of Securities of such series, to waive any past default in
the performance of any of the covenants contained in the Indenture, or established pursuant to the Indenture with respect to such series, and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on
any of the Securities of such series. Any such consent or waiver by the registered holder of this Debt Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of
this Debt Security and of any Debt Security issued in exchange herefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Debt Security. 

No reference herein to the Indenture and no provision of this Debt 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 interest on this Debt Security at the times and place and at the rate and in the money herein prescribed. 

The Debt Securities are issuable as registered Debt Securities without coupons. 

The Debt Securities shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. Debt Securities may be exchanged, upon
presentation thereof for that purpose, at the office or agency of the Company in the City of New York, State of New York, for other Debt Securities of authorized denominations, and for a like aggregate principal amount and series, and upon payment
of a sum sufficient to cover any tax or other governmental charge in relation thereto. 
 This Debt Security will not be redeemable prior to maturity. 

As provided in the Indenture and subject to certain limitations therein set forth, this Debt Security is transferable by the registered holder hereof on the
Security Register of the Company, upon surrender of this Debt Security for registration of transfer at the office or agency of the Company in the City of New York, State of New York accompanied by a written instrument or instruments of transfer in
form satisfactory to the Company or the Security Registrar duly executed by the registered holder hereof or his attorney duly authorized in writing, and thereupon one or more new Debt Securities of authorized denominations and for the same aggregate
principal amount and series will be issued to the designated transferee or transferees. No service charge will be made for any such transfer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in relation thereto. 
 Prior to due presentment for registration of transfer of this Debt Security the Company, the Trustee, any paying agent and
any Security Registrar for the Debt Securities may deem and treat the registered holder hereof as the absolute owner hereof (whether or not this Debt Security shall be overdue and notwithstanding any notice of ownership or writing hereon made by
anyone other than the Security Registrar for the Debt Securities) for the purpose of receiving payment of or on account of the principal hereof and (subject to Section 310 of the Indenture) interest due hereon and for all other purposes, and
neither the Company nor the Trustee nor any paying agent nor any Security Registrar for the Debt Securities shall be affected by any notice to the contrary. 

No recourse shall be had for the payment of the principal of or the interest on this Debt Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer or director, past, present or future, as such, of the Company or of any predecessor or 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 issuance hereof, expressly waived and released. 

[If a Global Security: The Depository by acceptance of this global Debt Security agrees that it will not sell, assign, transfer or otherwise convey any
beneficial interest in this global Debt Security unless such beneficial interest is in an amount equal to an authorized denomination for Debt Securities of this series.] 

Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Indenture. 

  
 3 

 [TO BE ATTACHED IF A GLOBAL SECURITY] 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY 

The following increases and decreases in this Global Security have been made: 

 

									
	 Date of
 Decrease or

Increase
	  	Amount of decrease in
Principal Amount of this
Global Security	  	Amount of increase
in Principal
Amount of this
Global Security	  	Principal Amount of this
Global Security following
such decrease or increase	  	Signature of authorized
signatory of Trustee or
Securities Custodian

  
 4 

 Exhibit D 

FORM OF 2025 NOTE 
 [TRANSFERS OF THIS
NOTE BY THE HOLDER THEREOF WILL BE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE NOTEHOLDERS AGREEMENT, DATED AS OF FEBRUARY 21, 2014, BY AND AMONG VERIZON COMMUNICATIONS, INC., VODAFONE GROUP PLC AND VODAFONE 4 LIMITED.]1 
 [REGULATION S LEGEND] 

[THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM]2 [PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (A) THE DATE ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT)
AND (B) THE ORIGINAL ISSUE DATE OF THE SECURITY]3. 
 [THE FOREGOING LEGEND MAY BE REMOVED FROM
THIS SECURITY AFTER 40 DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DATE ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AND (B) THE ORIGINAL ISSUE DATE
OF THE SECURITY.]4 
 [GLOBAL NOTES LEGEND] 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY 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. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.]5 
  

					
	 No.
                    
	  	$	                    	  

 [CUSIP No.: [●] 
 ISIN No.:
[●]]6 
  

	1 	Include only in the case of a Physical Note. 

	2 	Include in the case of a Regulation S Global Note and Physical Note. 

	3 	Include in the case of a Regulation S Global Note 

	4 	Include in the case of a Physical Note. 

	5 	To be inserted if a Global Security. 

	6 	Do not include for the Physical Notes. 

 Verizon Communications Inc. 

Floating Rate Notes due 2025 
 Verizon
Communications Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to [●], or registered assigns, the principal sum
of              Dollars ($             ) [(subject to adjustment as reflected in the Schedule of Increase and
Decreases in Global Security attached hereto)]7 on February 21, 2025, and to pay interest on said principal sum at the floating rate per annum determined in accordance with the provisions
below (the “interest rate”), until the principal hereof shall have become due and payable, and on any overdue principal and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of
interest at the same rate per annum. This Debt Security (or one or more Predecessor Securities, as defined in the Indenture) shall bear interest at a rate per annum equal to LIBOR (as defined below) plus 1.372%, which rate will be reset quarterly
(as described below), and will be payable quarterly in arrears on each February 21, May 21, August 21 and November 21, each an “interest payment date.” If any interest payment date falls on a day that is not a
business day (as defined below), the Company will make the interest payment on the next succeeding business day unless such business day is in the next succeeding calendar month, in which case the Company will make the interest payment on the
immediately preceding business day. 
 Interest on this Debt Security will accrue from, and including, February 21, 2014, to, but excluding, the first
interest payment date and then from and including, the immediately preceding interest payment date to which interest has been paid or duly provided for (or from, and including, February 21, 2014, if no interest has been paid or duly provided
for) to, but excluding, the next applicable interest payment date or the maturity date, as the case may be (each of these periods, an “interest period”). The amount of accrued interest payable for any interest period shall be calculated by
multiplying the face amount of this Debt Security by an accrued interest factor. Such accrued interest factor is computed by adding the interest factor calculated for each day from February 21, 2014, or from the immediately preceding interest
payment date to which interest has been paid or duly provided for, to the date for which accrued interest is being calculated. The interest factor for each day shall be computed by dividing the interest rate applicable to such day by 360. 

If the maturity date of this Debt Security falls on a day that is not a business day, the payment of principal, premium, if any, and interest shall be made on
the next succeeding business day, as if made on the date such payment was due, and no interest on such payment shall accrue on such payment for the period from and after the maturity date to the date of such payment on the next succeeding business
day. 
 The interest installment so payable, and punctually paid or duly provided for, on any interest payment date will, as provided in the Indenture
hereinafter referred to, be paid to the person in whose name this Debt Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment, which shall be the fifteenth
calendar day, whether or not a business day, immediately preceding such interest payment date. However, interest that the Company pays on the maturity date shall be payable to the person to whom the principal hereof shall be payable. Any such
interest installment not so punctually paid or duly provided for shall forthwith cease to be payable to the registered holder on such regular record date, and may be paid to the person in whose name this Debt Security (or one or more Predecessor
Securities) is registered at the close of business on a special record date to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be given to the registered holders of this series of Debt Securities as provided
in the Indenture, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Debt Securities may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture hereinafter referred to. 
 As used herein, “business day” means any day other than a Saturday or a Sunday
that is neither a legal holiday nor a day on which commercial banks are authorized or required by law, regulation or executive order to close in 

 

	7 	To be inserted if a Global Security. 

  
 2 

 
The City of New York; provided, that such day is also a London business day. “London business day” means any day on which commercial banks are open for business, including dealings in
U.S. dollars, in London. 
 The interest rate on this Debt Security shall be calculated by the calculation agent, which will be an independent investment
banking or commercial banking institution of international standing appointed by the Company and shall be equal to LIBOR (as defined below) plus 1.372%; provided, however, that the interest rate in effect for the period from February 21, 2014
to but excluding May 21, 2014, the initial interest reset date, shall be 1.606% (the “initial interest rate”). The calculation agent will reset the interest rate on each interest payment date, each of which is an “interest reset
date.” The second London business day preceding an interest reset date will be the “interest determination date” for that interest reset date. The interest rate in effect on each day that is not an interest reset date shall be the
interest rate determined as of the interest determination date pertaining to the immediately preceding interest reset date; provided, however, that the interest rate in effect for the period from and including February 21, 2014, to but
excluding the initial interest reset date shall be the initial interest rate. The interest rate in effect on any day that is an interest reset date shall be the interest rate determined as of the interest determination date pertaining to such
interest reset date. 
 “LIBOR” shall be determined by the calculation agent in accordance with the following provisions: 

(i) With respect to any interest determination date, LIBOR shall be the rate for deposits in U.S. dollars having a maturity of three months
commencing on the first day of the applicable interest period that appears on the Designated LIBOR Page as of 11:00 A.M., London time, on such interest determination date. If no such rate appears, then LIBOR, in respect to such interest
determination date, shall be determined in accordance with the provisions described in (ii) below. 
 (ii) With respect to an interest
determination date on which no rate appears on the Designated LIBOR Page, as specified in (i) above, the calculation agent will request the principal London offices of each of four major reference banks in the London interbank market, as
selected by the calculation agent, to provide the calculation agent with its offered quotation for deposits in U.S. dollars for the period of three months, commencing on the first day of the applicable interest period, to prime banks in the London
interbank market at approximately 11:00 A.M., London time, on such interest determination date and in a principal amount of not less than $1,000,000 for a single transaction in U.S. dollars in such market at such time. If at least two such
quotations are so provided, then LIBOR on such interest determination date shall be the arithmetic mean of such quotations. If fewer than two such quotations are so provided, then LIBOR on such interest determination date shall be the arithmetic
mean of the rates quoted at approximately 11:00 A.M., in The City of New York, on such interest determination date by three major banks in The City of New York selected by the calculation agent for loans in U.S. dollars to leading European banks,
having a three month maturity and in a principal amount of not less than $1,000,000 for a single transaction in U.S. dollars in such market at such time; provided, however, that if the banks so selected by the calculation agent are not providing
quotations in the manner described in this sentence, LIBOR determined as of such interest determination date shall be LIBOR in effect on such interest determination date. 

“The Designated LIBOR Page” means the Reuters screen “LIBOR01” page, or any successor page on Reuters selected by the Company with the
consent of the calculation agent, or if the Company determines that no such successor page shall exist on Reuters, the Bloomberg page “BBAM,” or any successor page on Bloomberg selected by the Company with the consent of the calculation
agent. 
 The calculation agent (which initially shall be U.S. Bank National Association, as successor to Wachovia Bank, National Association, and which may
be changed by the Company from time to time subject to the third preceding paragraph) shall calculate the interest rate on this Debt Security on or before each calculation date and, upon request, provide holders of the Debt Securities the interest
rate then in effect and, if determined, the interest rate which shall become effective as a result of a determination made for the next succeeding interest reset date with respect to this Debt Security. The calculation agent’s determination of
any interest rate shall be final and binding absent error in the calculation thereof. The “calculation date” pertaining to any interest determination date shall be the earlier of (a) the tenth calendar day after such interest
determination date, or if any such day is 

  
 3 

 
not a business day, the next succeeding business day, or (b) the business day immediately preceding the applicable interest payment date or the maturity date, as the case may be. 

Notwithstanding the other provisions herein, the interest rate hereon shall in no event be higher than the maximum rate permitted by New York law, as the same
may be modified by United States law of general application. 
 Except as otherwise provided herein, all percentages resulting from any calculation shall be
rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all amounts used in
or resulting from such calculation shall be rounded to the nearest cent (with one-half cent being rounded upward). 
 The principal of and the interest on
this Debt Security shall be payable at the office or agency of the Company maintained for that purpose in the City of New York, State of New York (and at the office or agency of any paying agent the Company may appoint) in any coin or currency of
the United States of America which at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the registered holder at such
address as shall appear in the Security Register; provided, further, that all payments of principal and interest with respect to the Debt Securities [represented by one or more global certificates registered in the name of or held by a depositary or
its nominee, or other Debt Securities] in a principal amount of at least $1,000,000, will be made by wire transfer of immediately available funds to the accounts specified by the Holder or Holders thereof not less than five business days prior to
the applicable payment date. This Debt Security shall not be entitled to any benefit under the Indenture hereinafter referred to, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed
by or on behalf of the Trustee. 
 The provisions of this Debt Security are continued on the reverse side hereof and such continued provisions shall for all
purposes have the same effect as though fully set forth at this place. 

  
 4 

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

 

					
	Dated:	 	VERIZON COMMUNICATIONS INC.
			
		 	By	 	  

		 		 	Name:
		 		 	Title:

  
 5 

 CERTIFICATE OF AUTHENTICATION 

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

U.S. Bank National Association 
 as
Trustee, Authenticating Agent and 
 Security Registrar 
  

			
	 By
	 	  

		 	Authorized Signatory

 Dated: 

  
 6 

 (FORM OF REVERSE OF DEBT SECURITY) 

This Debt Security is one of a duly authorized series of Securities of the Company, all issued or to be issued in one or more series under and pursuant to an
Indenture dated as of December 1, 2000, duly executed and delivered by the Company, as successor in interest to Verizon Global Funding Corp. and U.S. Bank National Association, as successor to Wachovia Bank, National Association, formerly known
as First Union National Bank (hereinafter referred to as the “Trustee”), as amended and supplemented (the “Indenture”), to which Indenture reference is hereby made for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Securities. By the terms of the Indenture, the Securities are issuable in series which may vary as to amount, date of maturity, rate of interest and in
other respects as in the Indenture provided. This Debt Security is one of the series designated on the face hereof (herein called the “Debt Securities”) unlimited in aggregate principal amount. 

[Holders of the Debt Securities are entitled to the benefits of the Exchange and Registration Rights Agreement, dated as of February 21, 2014 (the
“Registration Rights Agreement”), among the Company and parties named therein, including the right to receive additional interest under an Additional Interest Trigger (as defined therein). The Debt Securities and any related Exchange
Securities (as defined in the Registration Rights Agreement) shall vote and consent together on all matters as one class, and none of such securities shall have the right to vote or consent as a separate class.]8 
 Beneficial interests in this [global] Debt Security may be held in minimum denominations of $2,000 and
integral multiples of $1,000 in excess of $2,000. This [global] Debt Security shall be exchangeable for Debt Securities in definitive form registered in the names of persons other than the Depository or its nominee only if (i) the
Depository notifies the Company that it is unwilling or unable to continue as the Depository or if at any time such Depository is no longer registered as a clearing agency or in good standing under the Securities Exchange Act of 1934, as amended or
other applicable statute and a successor depository is not appointed by the Company within 90 days or (ii) the Company executes and delivers to the Trustee an Officers’ Certificate that the [global] Debt Security shall be so
exchangeable. To the extent that the [global] Debt Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for Debt Securities registered in such names as the Depository shall direct. Debt Securities represented by this
[global] Debt Security that may be exchanged for Debt Securities in definitive form under the circumstances described in this paragraph will be exchangeable only for Debt Securities in definitive form issued in minimum denominations of $2,000 and
integral multiples of $1,000 in excess of $2,000. Notwithstanding any other provision herein, this [global] Debt Security may not be transferred except as a whole by the Depository to a nominee of such Depository or by a nominee of such Depository
to such Depository or another nominee of such Depository. 
 In case an Event of Default, as defined in the Indenture, with respect to the Debt Securities
shall have occurred and be continuing, the principal of all of the Debt Securities may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal
amount of the Securities of each series affected at the time outstanding, as defined in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of such Securities; provided, however, that no such supplemental indenture shall, among other things, (i) extend the fixed maturity of any
Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, without the consent of the holder of each Debt
Security so affected or (ii) reduce the aforesaid percentage of Debt Securities, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of each Debt Security then outstanding and
affected thereby. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount 
  

	8 	To be deleted upon issuance of Exchange Notes. 

  
 7 

 
of the Securities of any series at the time outstanding, on behalf of the holders of Securities of such series, to waive any past default in the performance of any of the covenants contained in
the Indenture, or established pursuant to the Indenture with respect to such series, and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on any of the Securities of such series. Any such consent
or waiver by the registered holder of this Debt Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Debt Security and of any Debt Security issued in
exchange herefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Debt Security. 

No reference herein to the Indenture and no provision of this Debt 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 interest on this Debt Security at the times and place and at the rate and in the money herein prescribed. 

The Debt Securities are issuable as registered Debt Securities without coupons. 

The Debt Securities shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. Debt Securities may be exchanged, upon
presentation thereof for that purpose, at the office or agency of the Company in the City of New York, State of New York, for other Debt Securities of authorized denominations, and for a like aggregate principal amount and series, and upon payment
of a sum sufficient to cover any tax or other governmental charge in relation thereto. 
 This Debt Security will not be redeemable prior to maturity. 

As provided in the Indenture and subject to certain limitations therein set forth, this Debt Security is transferable by the registered holder hereof on the
Security Register of the Company, upon surrender of this Debt Security for registration of transfer at the office or agency of the Company in the City of New York, State of New York accompanied by a written instrument or instruments of transfer in
form satisfactory to the Company or the Security Registrar duly executed by the registered holder hereof or his attorney duly authorized in writing, and thereupon one or more new Debt Securities of authorized denominations and for the same aggregate
principal amount and series will be issued to the designated transferee or transferees. No service charge will be made for any such transfer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in relation thereto. 
 Prior to due presentment for registration of transfer of this Debt Security the Company, the Trustee, any paying agent and
any Security Registrar for the Debt Securities may deem and treat the registered holder hereof as the absolute owner hereof (whether or not this Debt Security shall be overdue and notwithstanding any notice of ownership or writing hereon made by
anyone other than the Security Registrar for the Debt Securities) for the purpose of receiving payment of or on account of the principal hereof and (subject to Section 310 of the Indenture) interest due hereon and for all other purposes, and
neither the Company nor the Trustee nor any paying agent nor any Security Registrar for the Debt Securities shall be affected by any notice to the contrary. 

No recourse shall be had for the payment of the principal of or the interest on this Debt Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer or director, past, present or future, as such, of the Company or of any predecessor or 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 issuance hereof, expressly waived and released. 

[If a global security: The Depository by acceptance of this global Debt Security agrees that it will not sell, assign, transfer or otherwise convey any
beneficial interest in this global Debt Security unless such beneficial interest is in an amount equal to an authorized denomination for Debt Securities of this series.] 

Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Indenture. 

  
 8 

 [TO BE ATTACHED IF A GLOBAL SECURITY] 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY 

The following increases and decreases in this Global Security have been made: 

 

									
	 Date of
 Decrease or

Increase
	  	Amount of decrease in
Principal Amount of this
Global Security	  	Amount of increase in
Principal Amount of this
Global Security	  	Principal Amount of this
Global Security
following such decrease
or increase	  	Signature of authorized
signatory of Trustee or
Securities Custodian

  
 9 

 Exhibit E 

VERIZON COMMUNICATIONS INC. 
 140
West Street 
 New York, NY 10007 

Officers’ Certificate pursuant to Sections 102 and 301 of the Indenture and Section 2.2(e) 

of the Noteholders Agreement 

Pursuant to (i) Sections 102 and 301 of the Indenture dated as of December 1, 2000 between Verizon Communications Inc., a
Delaware corporation, as successor in interest to Verizon Global Funding Corp. (the “Company”), and U.S. Bank National Association, as successor to Wachovia Bank, National Association (formerly known as First Union National Bank),
as trustee (the “Trustee”), as amended by the first, second and third supplemental indentures, and as the same may be amended, waived, supplemented or otherwise modified from time to time (the “Indenture”),
(ii) Section 2.2(e) of the Noteholders Agreement, dated as of February 21, 2014, by and among the Company, Vodafone Group Plc (“Vodafone”) and Vodafone 4 Limited, an indirect wholly owned Subsidiary of Vodafone
(as the same may be amended and supplemented (the “Noteholders Agreement”), entered into in connection with the issuance of the Company’s Floating Rate Notes due 2022 (the “8-Year Notes”) and Floating Rate
Notes due 2025 (the “11-Year Notes” and together with the 8-Year Notes, the “Verizon Notes”) issued pursuant to the Indenture and (iii) the Officers’ Certificate of the Company dated
February 21, 2014 authorizing the issuance of the Verizon Notes (the “Officers’ Certificate”), the undersigned, [●], in [his/her] capacity as [●] of the Company, and [●], in [his/her] capacity as
[●] of the Company, respectively, DO HEREBY CERTIFY that: 
  

	 	1.	We have read the applicable provisions of the Indenture, Noteholders Agreement and Officers’ Certificate, including all covenants and conditions relating to the transfer of $[●] principal amount of
[●]-Year Notes represented by physical certificates registered in the name of [Vodafone Entity] (the “Holder”). We have also examined the Vodafone Notice of Transfer dated [●] [●], 20[●]
attached hereto as Annex A (the “Vodafone Notice”) and such corporate records and other documents and satisfied ourselves as to such other matters as we have deemed necessary to enable us to express informed opinions as to
the matters covered by this certificate. 

  

	 	2.	[Subject to the Trustee’s receipt of the physical certificates specified below in this Paragraph 2 (the “Old Notes”), duly endorsed for transfer, and based upon the examination described above in
Paragraph 1, including the review of the representations in the Vodafone Notice, all conditions precedent provided for in the Indenture, the Noteholders Agreement and the Officers’ Certificate to register the transfer of $[●] principal
amount (the “Transferred Amount”) of [●]-Year Notes represented by the Old Notes for a beneficial interest equal in the aggregate to the Transferred Amount in one or more of the registered global certificates representing
[●]-Year Notes and bearing CUSIP No. [●] (the “Transfer”), which certificates are registered in the name of Cede & Co., as the nominee of The Depository Trust Company, have been complied with, and the Company
hereby requests and directs the Trustee to effect the Transfer and, upon such Transfer [(and registration and delivery pursuant to Paragraph 3, if applicable)] to cancel the Old Notes upon the Trustee’s receipt of the Old Notes as described
above. 

  

	 	    	Certificates: [●]-Year Notes No(s). [●]]1 

  

	 	3.	[Subject to the Trustee’s receipt of the physical certificates specified below in this Paragraph 2 (the “Old Notes”), duly endorsed for transfer, and based upon the examination described above in
Paragraph 1, including the review of the representations in the Vodafone Notice, all conditions precedent provided for in the Indenture, the Noteholders Agreement and the Officers’ Certificate to register the transfer of $[●] principal
amount of [●]-Year Notes represented by the Old Notes for $[●] aggregate principal amount of [●]-Year Notes in the form of one or more physical certificates (the “Affiliate Notes”), which are to be registered in
the name of [Vodafone entity] (the “Affiliate Holder”), have been complied with, and the Company hereby requests and directs the Trustee to register in the 

 

	1 	This bracketed text to be included only in the case of a transfer to a person other than a Vodafone Entity. 

	 	
name of and deliver to the Affiliate Holder the Affiliate Notes and, upon such registration and delivery, [(and registration and delivery pursuant to Paragraph 3, if applicable)] to cancel the
Old Notes upon the Trustee’s receipt of the Old Notes as described above. 

  

	 	    	Certificates: [●]-Year Notes No(s). [●]]2 

  

	 	[4.	The Company hereby requests and directs you to register in the name of and deliver to the Holder $[●] aggregate principal amount of [●]-Year Notes in the form of one or more physical certificates reflecting
the principal amount of the Old Notes that was not transferred as part of the transfer described above.]3 

Capitalized terms used, but not defined, herein shall have the meanings ascribed thereto in the Indenture or the Noteholders Agreement, as the
case may be. 
  

	2 	This bracketed text to be included only in the case of a transfer to a Vodafone Entity. 

	3 	This paragraph to be deleted in the event that the Old Notes are transferred in their entirety to a person other than a Vodafone Entity by means of the Global Notes or to a Vodafone Entity by means of physical
certificates. 

  
 2 

 IN WITNESS WHEREOF, the undersigned have hereunto set their hands this [●] day of
[●], 20[●]. 
  

	
	  

	Name:
	Title:
	
	  

	Name:
	Title:

  
 3 

 Annex A 

[Letterhead of Holder] 

[●] [●], 20[●] 
 VERIZON
COMMUNICATIONS INC. 
 140 West Street 
 New York, NY 10007 

 

	 	Re:	Floating Rate Notes due 20[●] of Verizon Communications Inc.—Notice of Transfer 

 Ladies and
Gentlemen: 
 Reference is hereby made to the Noteholders Agreement, dated as of February 21, 2014, by and among Verizon Communications
Inc. (“Verizon”), Vodafone Group Plc (“Vodafone”) and Vodafone 4 Limited, an indirect wholly owned Subsidiary of Vodafone (as the same may be amended and supplemented, the “Noteholders Agreement”),
entered into in connection with the issuance and sale of Verizon’s Floating Rate Notes due 2022 (the “8-Year Notes”) and Floating Rate Notes due 2025 (the “11-Year Notes” and together with the 8-Year Notes, the
“Verizon Notes”) issued pursuant to the Indenture, dated as of December 1, 2000, between Verizon, as successor in interest to Verizon Global Funding Corp., and U.S. Bank National Association, as successor to Wachovia Bank,
National Association (formerly known as First Union National Bank), as trustee (the “Trustee”), as amended by the first, second and third supplemental indentures, and as the same may be amended, waived, supplemented or otherwise
modified from time to time. This notice is delivered to you in accordance with Section 2.2(d) of the Noteholders Agreement. 
 You are
hereby notified that [Vodafone Entity] (“Holder”) intends to transfer $[●] principal amount of [●]-Year Notes registered in Holder’s name to a Person (the
“Transferee” and such transfer, the “Transfer”), who is, as of the date hereof: 
  

	 	 ̈	not a Vodafone Entity. 

  

	 	 ̈	a Vodafone Entity. 

 After the Transfer, $[●] principal amount of the [●]-Year
Notes will be held by one or more Vodafone Entities. The Holder hereby certifies that Holder has fully complied with the conditions and covenants of the Noteholders Agreement applicable to such Transfer. 

We hereby request that you transmit the officers’ certificate required pursuant to Section 2.2(e) of the Noteholders Agreement to
the Trustee on [●] [●], 20[●] with instructions to register the transfer of $[●] principal amount (the “Transferred Amount”) of [●]-Year Notes represented by Note No. [●], currently held in
physical form (the “Physical Note”): 
 (i) if the Transferee is not a Vodafone Entity, for a beneficial
interest in an aggregate principal amount equal to the Transferred Amount in one or more of the registered global certificates representing the [●]-Year Notes and bearing CUSIP No. [●], which certificates are registered in the name of
Cede & Co., as the nominee of The Depository Trust Company; or 
 (ii) if the Transferee is a Vodafone Entity, for a
new physical certificate held in the name of [●], the Transferee and representing an aggregate principal amount of [●]-Year Notes equal to the Transferred Amount; and cancel the existing Physical Note[, and issue a new physical
certificate for [●]-Year Notes in the aggregate principal amount of $[●] to Holder, reflecting the principal amount of the Physical Note that was not transferred].21 

 

	21 	Bracketed text to be included if less than the entire aggregate principal amount of the Physical Note is transferred. 

 [In connection with the delivery of this Notice of Transfer and the transfer to [Vodafone
entity], a Vodafone Entity, as proposed above, the Transferee has executed a Joinder Agreement which is attached hereto.]22 

Capitalized terms used, but not defined, herein shall have the meanings ascribed thereto in the Noteholders Agreement. 

 

			
	Very truly yours,
	
	 [Vodafone entity]

		
	 By:
	 	  

		 	 Name:

		 	 Title:

 [JOINDER AGREEMENT 

Reference is made to the (i) Noteholders Agreement, dated as of February 21, 2014 (as the same may be amended and
supplemented, the “Noteholders Agreement”), among Verizon Communications Inc. (the “Company”), Vodafone Group Plc, an English public limited company, Vodafone 4 Limited, and certain holders of the
(a) Floating Rate Notes due 2022 and (b) Floating Rate Notes due 2025 of the Company who become a party thereto and (ii) the Registration Rights Agreement as defined therein, the undersigned by execution hereof,
hereby agrees to become a party to, and to be subject to the rights and obligations of a Noteholder (as such term is defined in the Noteholders Agreement) under, the Noteholders Agreement and the Registration Rights Agreement upon consummation of
the Transfer described in the Notice of Transfer accompanying this Joinder Agreement. 
  

			
	 [Vodafone Affiliate]

		
	 By:
	 	  

		 	 Name:

		 	 Title:

		 	  
 Date:

		 	  
 Address: ]23

 Accepted and Agreed: 
  

			
	 VERIZON COMMUNICATIONS INC.

		
	 By:
	 	  

		 	Name:
		 	Title:

  

	22 	Include only in the event of a transfer to a Vodafone Entity. 

	23 	Joinder Agreement to be included only in the event of a transfer to a Vodafone Entity. 

	

  
 2Exhibit 10.1

 

EGALET CORPORATION

 

2013 STOCK-BASED

INCENTIVE COMPENSATION PLAN

 

(as amended and restated effective June 15, 2016)

 

 

EGALET CORPORATION

 

2013 STOCK-BASED

INCENTIVE COMPENSATION PLAN

(as amended and restated effective June 15, 2016)

 

1.                                      Purpose of the Plan

 

The purpose of the Plan is to assist the Company, its Subsidiaries and Affiliates in attracting and retaining valued Employees, Consultants and Non-Employee Directors by offering them a greater stake in the Company’s success and a closer identity with it, and to encourage ownership of the Company’s stock by such Employees, Consultants and Non-Employee Directors.

 

2.                                      Definitions

 

As used herein, the following definitions shall apply:

 

2.1.                            “Affiliate” means any entity other than the Subsidiaries in which the Company has a substantial direct or indirect equity interest, as determined by the Board.

 

2.2.                            “Award” means a grant of Common Stock, Deferred Stock, Restricted Stock, Restricted Stock Units, Options or SARs under the Plan.

 

2.3.                            “Award Agreement” means the written agreement, instrument or document evidencing an Award, including any such item in an electronic medium.

 

2.4.                            “Board” means the Board of Directors of the Company.

 

2.5.                            “Change in Control” means, after the Effective Date (and not including the public offering of the Company, which shall not be treated as a Change in Control for purposes of the Plan), any of the following events:

 

 

(a)                                 a “person” (as such term in used in Sections 13(d) and 14(d) of the 1934 Act), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner” (as defined in Rule 13D-3 under the 1934 Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or

 

(b)                                 during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Section 2.5(a), Section 2.5(c) or Section 2.5(d) hereof) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously approved, cease for any reason to constitute a majority thereof; or

 

(c)                                  the Company merges or consolidates with any other corporation, other than in a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or

 

2

 

(d)                                 the complete liquidation of the Company or the sale or other disposition of all or substantially all of the Company’s assets.

 

(e)                                  Notwithstanding anything in the Plan or an Award Agreement to the contrary, if an Award is subject to Section 409A of the Code, no event that, but for this Section, would be a Change in Control as defined in the Plan or the Award Agreement, as applicable, shall be a Change in Control unless such event is also a “change in control event” as defined in Section 409A of the Code.

 

2.6.                            “Code” means the Internal Revenue Code of 1986, as amended, and the Treasury regulations promulgated thereunder.  A reference to any provision of the Code or the Treasury regulations promulgated thereunder shall include reference to any successor provision of the Code or the Treasury regulations.

 

2.7.                            “Committee” means the committee designated by the Board to administer the Plan under Section 4.  The Committee shall have at least two members and each member of the Committee shall be a Non-Employee Director, an Outside Director and an “independent director” within the meaning of Rule 5605(a)(2) of the NASDAQ Stock Market Equity Rules.

 

2.8.                            “Common Stock” means the common stock of the Company, par value $0.001 per share, or such other class or kind of shares or other securities resulting from the application of Section 13.

 

2.9.                            “Company” means Egalet Corporation, a Delaware corporation, or any successor corporation.

 

3

 

2.10.                     “Consultant” means an individual who renders services to the Company, a Subsidiary or an Affiliate as a consultant, advisor or independent contractor.

 

2.11.                     “Deferral Period” means the period during which the receipt of a Deferred Stock Award under Section 7 will be deferred.

 

2.12.                     “Deferred Stock” means Common Stock to be delivered at the end of a Deferral Period and awarded by the Committee under Section 7.

 

2.13.                     “Effective Date” has the meaning set forth in Section 25.

 

2.14.                     “Employee” means an individual, including an officer or director, who is employed by the Company, a Subsidiary or an Affiliate.

 

2.15.                     “Fair Market Value” means the fair market value of Common Stock determined by such methods or procedures as shall be established from time to time by the Committee in good faith and in accordance with applicable law.  Unless otherwise determined by the Committee, the Fair Market Value of Common Stock shall mean, on any given date, the closing price of a share of Common Stock on the principal national securities exchange on which the Common Stock is listed on such date or, if Common Stock was not traded on such date, on the last preceding day on which the Common Stock was traded.

 

2.16.                     “Incentive Stock Option” means an Option or a portion thereof intended to meet the requirements of an incentive stock option as defined in Section 422 of the Code and designated as an Incentive Stock Option in the applicable Award Agreement.

 

2.17.                     “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder.  A reference to any provision of the 1934 Act or rule promulgated under the 1934 Act shall include reference to any successor provision or rule.

 

4

 

2.18.                     “Non-Employee Director” means a member of the Board who meets the definition of a “non-employee director” under Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act.

 

2.19.                     “Non-Qualified Option” means an Option or a portion thereof not intended to be an Incentive Stock Option and designated as a Non-Qualified Option in the applicable Award Agreement.

 

2.20.                     “Option” means a right to purchase a specified number of shares of Common Stock at a specified price awarded by the Committee under Section 6 of the Plan.

 

2.21.                     “Outside Director” means a member of the Board who meets the definition of an “outside director” under Section 162(m) of the Code.

 

2.22.                     “Participant” means any Employee, Consultant or Non-Employee Director who receives an Award.

 

2.23.                     “Performance Cycle” means the period selected by the Committee during which the performance of the Company, any Subsidiary, any Affiliate or any business unit thereof, or any individual is measured for the purpose of determining the extent to which a Performance Goal has been achieved.

 

2.24.                     “Performance Goal” means a goal that must be met by the end of a period specified by the Committee (but that is substantially uncertain of being met before the grant of the Award) and that, in the case of Qualified Performance-Based Awards, must be based upon any one or more of the following as they relate to the Company, its Subsidiaries or Affiliates (or any business unit or department thereof): (i) stock price, (ii) market share, (iii) sales, (iv) earnings per share, (v) diluted earnings per share, (vi) diluted net income per share,

 

5

 

(vii) return on shareholder equity, (viii) costs, (ix) cash flow, (x) return on total assets, (xi) return on capital or invested capital, (xii) return on net assets, (xiii) operating income, (xiv) net income, (xv) earnings (or net income) before interest, taxes, depreciation and amortization, (xvi) improvements in capital structure, (xvii) gross, operating or other margins, (xviii) budget and expense management, (xix) productivity ratios, (xx) working capital targets, (xxi) enterprise value, (xxii) safety record, (xxiii) completion of acquisitions or business expansion of the company, our subsidiaries or affiliates (or any business unit or department thereof) (xxiv) economic value added or other value added measurements, (xxv) expenses targets, (xxvi) operating efficiency, (xxvii) regulatory body approvals for commercialization of products,  (xxviii) implementation or completion of critical projects or related milestones (including, without limitation, milestones such as clinical trial enrollment targets, commencement of phases of clinical trials and completion of phases of clinical trials) or (xxix) partnering or similar transactions, in all cases, whether measured absolutely or relative to an index or peer group.  The Committee shall have discretion to determine the specific targets with respect to each of these categories of Performance Goals.  Performance Goals with respect to Awards that are not intended to be Qualified Performance-Based Awards may be based on one or more of the preceding measures or any other measure that the Committee may determine in its sole discretion.  If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Performance Goals unsuitable, the Committee may modify such Performance Goals or the related minimum acceptable level of achievement, in whole or in part, as the Committee deems appropriate and equitable.

 

6

 

2.25.                     “Plan” means the Egalet Corporation 2013 Stock-Based Incentive Compensation Plan herein set forth, as amended and/or restated from time to time.

 

2.26.                     “Qualified Performance-Based Award” means an Award or portion of an Award that is intended to satisfy the requirements for “qualified performance-based compensation” under Section 162(m) of the Code.

 

2.27.                     “Restricted Stock” means Common Stock awarded by the Committee under Section 8 of the Plan.

 

2.28.                     “Restricted Stock Unit” means the right to a payment in Common Stock or in cash, or in a combination thereof, awarded by the Committee under Section 9 of the Plan.

 

2.29.                     “Restriction Period” means the period during which Restricted Stock awarded under Section 8 of the Plan and Restricted Stock Units awarded under Section 9 of the Plan are subject to forfeiture.

 

2.30.                     “SAR” means a stock appreciation right awarded by the Committee under Section 11 of the Plan.

 

2.31.                     “Subsidiary” means any corporation (other than the Company), partnership, joint venture or other business entity of which 50% or more of the outstanding voting power is beneficially owned, directly or indirectly, by the Company.

 

2.32.                     “Ten Percent Shareholder” means a person who on any given date owns, either directly or indirectly (taking into account the attribution rules contained in Section 424(d) of the Code), stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary.

 

7

 

3.                                      Eligibility

 

Any Employee, Consultant or Non-Employee Director is eligible to receive an Award.

 

4.                                      Administration and Implementation of Plan

 

4.1.                            The Plan shall be administered by the Committee.  Any action of the Committee in administering the Plan shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries and Affiliates, their Employees, Consultants and directors, Participants, persons claiming rights from or through Participants and stockholders of the Company.  No member of the Committee shall be personally liable for any action, determination, or interpretation taken or made in good faith by the Committee with respect to the Plan or any Awards granted hereunder, and all members of the Committee shall be fully indemnified and protected by the Company in respect of any such action, determination or interpretation.

 

4.2.                            Subject to the provisions of the Plan, the Committee shall have full and final authority in its discretion (a) to select the Employees, Consultants and Non-Employee Directors who will receive Awards pursuant to the Plan, (b) to determine the type or types of Awards to be granted to each Participant, (c) to determine the number of shares of Common Stock to which an Award will relate, the terms and conditions of any Award granted under the Plan (including, but not limited to, restrictions as to vesting, transferability or forfeiture, exercisability or settlement of an Award and waivers or accelerations thereof, and waivers of or modifications to performance conditions relating to an Award, based in each case on such considerations as the Committee shall determine) and all other matters to be determined in

 

8

 

connection with an Award; (d) to determine whether, to what extent, and under what circumstances an Award may be canceled, forfeited, or surrendered; (e) to determine whether, and to certify that, Performance Goals to which the settlement of an Award is subject are satisfied; (f) to correct any defect or supply any omission or reconcile any inconsistency in the Plan, and to adopt, amend and rescind such rules and regulations as, in its opinion, may be advisable in the administration of the Plan; and (g) to construe and interpret the Plan and to make all other determinations as it may deem necessary or advisable for the administration of the Plan.

 

4.3.                            The Committee’s powers shall also include responsibility to determine the effect, if any, of a Change in Control of the Company upon outstanding Awards.  Upon a Change in Control, the Committee may, at its discretion, (i) fully vest any or all Awards made under the Plan, (ii) determine whether all applicable Performance Goals have been achieved and the applicable level of performance, (iii) cancel any outstanding Awards in exchange for a cash payment of an amount (including zero) equal to the difference between the then Fair Market Value of the Award less the option or base price of the Award, (iv) after having given the Participant a reasonable chance to exercise any vested outstanding Options or SARs, terminate any or all of the Participant’s unexercised Options or SARs, (v) where the Company is not the surviving corporation, cause the surviving corporation to assume all outstanding Awards or replace all outstanding Awards with comparable awards or (vi) take such other action as the Committee shall determine to be appropriate.

 

4.4.                            The Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter, such terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture of Awards in

 

9

 

the event of the Participant’s termination of employment or service with the Company or any Subsidiary or Affiliate; provided, however, that the Committee shall retain full power to accelerate or waive any such term or condition as it may have previously imposed, including, without limitation, any minimum vesting period.  All Awards shall be evidenced by an Award Agreement.  The right of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such Performance Goals as may be specified by the Committee.

 

4.5.                            To the extent permitted by applicable law, the Committee may delegate some or all of its authority with respect to the Plan and Awards to any executive officer of the Company or any other person or persons designated by the Committee, in each case, acting individually or as a committee, provided that the Committee may not delegate its authority hereunder to make awards to Employees who are (i) “officers” as defined in Rule 16a-1(f) under the 1934 Act, (ii) “covered employees” within the meaning of Section 162(m) of the Code or (iii) officers or other Employees who are delegated authority by the Committee pursuant to this Section.  Any delegation hereunder shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation or thereafter.  The Committee may at any time rescind the authority delegated to any person pursuant to this Section.  Any action undertaken by any such person or persons in accordance with the Committee’s delegation of authority pursuant to this Section shall have the same force and effect as if undertaken directly by the Committee.

 

10

 

5.                                      Shares of Stock Subject to the Plan

 

5.1.                            Subject to adjustment as provided in Section 13, the total number of shares of Common Stock available for Awards under the Plan shall be 6,280,000.

 

5.2.                            Subject to adjustment as provided in Section 13, (i) the maximum number of shares of Common Stock available for Awards that are intended to be Incentive Stock Options shall not exceed 6,280,000 and (ii) the maximum number of shares of Common Stock available for Awards that may be granted to any individual Participant shall not exceed 1,840,000 during any calendar year.

 

5.3.                            If any shares subject to an Award are forfeited or such Award otherwise terminates, any shares counted against the number of shares available for issuance pursuant to the Plan with respect to such Award shall, to the extent of any such forfeiture or termination, again be available for Awards under the Plan; provided, however, that the Committee may adopt procedures for the counting of shares relating to any Award to ensure appropriate counting, avoid double counting, and provide for adjustments in any case in which the number of shares actually distributed differs from the number of shares previously counted in connection with such Award.  SARs or Restricted Stock Units to be settled in shares of Common Stock shall be counted in full against the number of shares available for award under the Plan, regardless of the number of shares of Common Stock issued upon settlement of the SAR or Restricted Stock Unit.  If any shares subject to an Award are retained or reacquired by the Company in payment of an exercise price or satisfaction of a withholding or other tax obligation in connection with any Award, such shares shall not be made available for future Awards under the Plan.

 

11

 

5.4.                            Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares.  Any shares issued by the Company through the assumption or substitution of outstanding grants in connection with the acquisition of another entity shall not reduce the maximum number of shares available for delivery under the Plan.

 

6.                                      Common Stock

 

An Award of Common Stock is a grant by the Company of a specified number of shares of Common Stock to the Participant, which shares are not subject to forfeiture except as set forth in Section 21.  Upon the Award of Common Stock, the Committee may direct the number of shares of Common Stock subject to such Award be issued to the Participant, designating the Participant as the registered owner.  The Participant shall have all of the customary rights of a stockholder with respect to the Award of Common Stock, including the right to vote shares of the Common Stock and receive dividends with respect to the Common Stock.

 

7.                                      Deferred Stock

 

An Award of Deferred Stock is an agreement by the Company to deliver to the Participant a specified number of shares of Common Stock at the end of a specified Deferral Period or Periods.  Such an Award shall be subject to the following terms and conditions:

 

7.1.                            Upon the Award of Deferred Stock, the Committee shall direct that the number of shares subject to such Award be credited to the Participant’s account on the books of the Company but that issuance and delivery of the same shall be deferred until the date or dates provided in the Award Agreement.  Prior to issuance and delivery of the Deferred Stock,

 

12

 

the Participant shall have no rights as a stockholder with respect to any shares of Deferred Stock credited to the Participant’s account.

 

7.2.                            During the Deferral Period, no dividend shall be paid with respect to shares covered by a Deferred Stock Award and the Participant shall have no future right to any dividend paid during the Deferral Period.

 

7.3.                            The Deferral Period may consist of one or more installments.  Provided that the Deferred Stock has not been previously forfeited, at the end of the Deferral Period or any installment thereof, the shares of Deferred Stock applicable to such installment, shall be issued and delivered to the Participant (or, where appropriate, the Participant’s legal representative) in accordance with the terms of the Award Agreement.

 

8.                                      Restricted Stock

 

An Award of Restricted Stock is a grant by the Company of a specified number of shares of Common Stock to the Participant, which shares are subject to forfeiture upon the happening of specified events.  Such an Award shall be subject to the following terms and conditions:

 

8.1.                            Upon the Award of Restricted Stock, the Committee may direct the number of shares of Common Stock subject to such Award be issued to the Participant or placed in a restricted stock account (including an electronic account) with the transfer agent and in either case designating the Participant as the registered owner.  The certificate(s), if any, representing such shares shall be physically or electronically legended, as applicable, as to sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and, if issued to the Participant, returned to the Company to be held in escrow during the Restriction Period.  In

 

13

 

all cases, the Participant shall sign a stock power endorsed in blank to the Company to be held in escrow during the Restriction Period.

 

8.2.                            During the Restriction Period, the Participant shall have the right to vote shares of Restricted Stock.  During the Restriction Period, no dividend shall be paid with respect to the number of shares covered by a Restricted Stock Award and the Participant shall have no future right to any dividend paid during the Restriction Period.

 

8.3.                            Provided that the Restricted Stock has not been previously forfeited, at the end of the Restriction Period the restrictions imposed under the Award Agreement shall lapse with respect to the number of shares specified thereunder, and the legend, if any, imposed hereunder shall be removed and such number of shares delivered to the Participant (or, where appropriate, the Participant’s legal representative).

 

9.                                      Restricted Stock Units

 

An Award of Restricted Stock Units is a grant by the Company of the right to receive a payment in Common Stock or in cash, or in a combination thereof, that is equal to the Fair Market Value of a share of Common Stock as of the date of vesting or payment, as set forth in the applicable Award Agreement, which right is subject to forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions:

 

9.1.                            Any amount payable upon the end of the Restriction Period with respect to a Restricted Stock Unit shall be paid by the Company in shares of Common Stock, in cash or in a combination of shares of Common Stock and cash, as determined by the Committee in its sole discretion or as set forth in the Award Agreement.

 

14

 

9.2.                            Provided that the Restricted Stock Units have not been previously forfeited, at the end of the Restriction Period the restrictions imposed under the Award Agreement shall lapse with respect to the number of Restricted Stock Units specified thereunder, and shares of Common Stock or cash with a value equal to the Fair Market Value of the shares of Common Stock underlying such Restricted Stock Units shall be delivered to the Participant (or, where appropriate, the Participant’s legal representative).

 

10.                               Options

 

Options give a Participant the right to purchase a specified number of shares of Common Stock from the Company for a specified time period at a fixed price.  Options may be either Incentive Stock Options or Non-Qualified Stock Options.  The grant of Options shall be subject to the following terms and conditions:

 

10.1.                     Option Price:  The price per share at which Common Stock may be purchased upon exercise of an Option shall be determined by the Committee, but shall be not less than 100% of the Fair Market Value of a share of Common Stock on the date of grant (or 110% of such Fair Market Value in the case of an Incentive Stock Option granted to a Ten Percent Shareholder), unless the Option was granted through the assumption of, or in substitution for, outstanding awards previously granted by an entity acquired by the Company or any Subsidiary or Affiliate or with which the Company or any Subsidiary or Affiliate combines.

 

10.2.                     Term of Options:  The term of an Option shall in no event be greater than ten years (five years in the case of an Incentive Stock Option granted to a Ten Percent Shareholder).

 

15

 

10.3.                     Incentive Stock Options:  Each provision of the Plan and each Award Agreement relating to an Incentive Stock Option shall be construed so that each Incentive Stock Option shall be an incentive stock option as defined in Section 422 of the Code, and any provisions of an Award Agreement that cannot be so construed shall be disregarded.  In no event may a Participant be granted an Incentive Stock Option which does not comply with the grant and vesting limitations prescribed by Section 422(b) of the Code.  Incentive Stock Options may not be granted to Employees of Affiliates or to Consultants or Non-Employee Directors.

 

10.4.                     Payment of Option Price:  The option price of the shares of Common Stock received upon the exercise of an Option shall be paid within three days of the date of exercise: (i) in cash, or (ii) with the proceeds received from a broker-dealer whom the Participant has authorized to sell all or a portion of the Common Stock covered by the Option, or (iii) with the consent of the Committee, in whole or in part in Common Stock held by the Participant and valued at Fair Market Value on the date of exercise.  With the consent of the Committee, payment upon the exercise of a Non-Qualified Option may be made in whole or in part by Restricted Stock held by the Participant and valued at Fair Market Value on the date the Option is exercised.  In such case, the Common Stock to which the Option relates shall be subject to the same forfeiture restrictions originally imposed on the Restricted Stock exchanged therefor.  An Option may be exercised only for a whole number of shares of Common Stock.

 

11.                               Stock Appreciation Rights

 

SARs give the Participant the right to receive, upon exercise of the SAR, the excess of (i) the Fair Market Value of one share of Common Stock on the date of exercise over (ii) the grant price of the SAR as determined by the Committee, but which may never be less

 

16

 

than 100% of the Fair Market Value of a share of Common Stock on the date of grant.  The grant of SARs shall be subject to the following terms and conditions:

 

11.1.                     The term of a SAR shall in no event be greater than ten years.

 

11.2.                     The Committee shall determine the time or times at which a SAR may be exercised in whole or in part, the method of exercise, the method of settlement, form of consideration payable in settlement, method by which Common Stock will be delivered or deemed to be delivered to Participants, whether or not a SAR shall be in tandem with any other Award, and any other terms and conditions of any SAR.

 

11.3.                     The Committee may provide that a SAR shall be deemed to be exercised at the close of business on the scheduled expiration date of such SAR.

 

12.                               Qualified Performance-Based Awards.

 

To the extent the Committee determines, in its sole discretion, that it is necessary or advisable in order to comply with the deductibility limitations of Section 162(m) of the Code applicable to Qualified Performance-Based Awards, the following rules shall apply:

 

12.1.                     Only an Employee who is a  “covered employee” within the meaning of Section 162(m) of the Code shall be eligible to receive Qualified Performance-Based Awards.  The Committee shall designate in its sole discretion which covered employees will be Participants for a Performance Cycle within the earlier of (i) the first 90 days of a Performance Cycle and (ii) the lapse of 25% of the Performance Cycle.

 

12.2.                     The Committee shall establish in writing within the earlier of (i) the first 90 days of a Performance Cycle and (ii) the lapse of 25% of the Performance Cycle, and

 

17

 

in any event, while the outcome is substantially uncertain, (A) Performance Goals for the Performance Cycle, and (B) in respect of such Performance Goals, a minimum acceptable level of achievement below which no payment will be made or no Award shall vest or become exercisable, and an objective formula or other method for determining the amount of any payment to be made or the extent to which an Award hereunder shall vest or become exercisable if performance is at or above such minimum acceptable level but falls short of the maximum achievement of the specified Performance Goals.

 

12.3.                     Following the completion of a Performance Cycle, the Committee shall review and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the Qualified Performance-Based Awards earned for the Performance Cycle based upon the Performance Goals and the related formulas or methods as determined pursuant to Section 12.2.  The Committee shall then determine the actual amount payable or the extent to which an Award is vested or exercisable as a result of attainment of such Performance Goals under each Participant’s Award for the Performance Cycle, and, in doing so, may reduce or eliminate, except as otherwise provided in the Award Agreement, the amount of the Award.  In no event shall the Committee have the authority to increase Award amounts to any covered employee under a Qualified Performance-Based Award.

 

12.4.                     A Qualified Performance-Based Award granted, vesting or becoming exercisable with respect to a Performance Cycle shall be paid (unless such Award is subject to the Participant’s exercise, which exercise such Participant has not effectuated) as soon as practicable following completion of the certification described in Section 12.3 but in no event

 

18

 

later than December 31 of the year following the year in which the applicable Performance Cycle ends.

 

13.                               Adjustments upon Changes in Capitalization

 

13.1.                     In order to prevent dilution or enlargement of the rights of Participants under the Plan as a result of any stock dividend, recapitalization, forward stock split or reverse stock split, reorganization, division, merger, consolidation, spin-off, combination, repurchase or share exchange, extraordinary or unusual cash distribution or other similar corporate transaction or event that affects the Common Stock, the Committee shall adjust (i) the number and kind of shares of Common Stock which may thereafter be issued in connection with Awards, (ii) the number and kind of shares of Common Stock issuable in respect of outstanding Awards, (iii) the aggregate number and kind of shares of Common Stock available under the Plan, and (iv) the exercise or grant price relating to any Award.  Any such adjustment shall be made in an equitable manner which reflects the effect of such transaction or event.  It is provided, however, that in the case of any such transaction or event, the Committee may make any additional adjustments to the items in (i) through (iv) above which it deems appropriate in the circumstances, or make provision for a cash payment with respect to any outstanding Award; and it is provided, further, that no adjustment shall be made under this Section that would cause the Plan to violate Section 422 of the Code with respect to Incentive Stock Options or that would adversely affect the status of any Award that is “performance-based compensation” under Section 162(m) of the Code.

 

13.2.                     In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards, including any Performance

 

19

 

Goals, in recognition of unusual or nonrecurring events (including, without limitation, events described in Section 13.1) affecting the Company, any Subsidiary or Affiliate, or in response to changes in applicable laws, regulations, or accounting principles.  Notwithstanding the foregoing, no adjustment shall be made in any outstanding Awards to the extent that such adjustment would adversely affect the intended status of the Award as “performance-based compensation” under Section 162(m) of the Code.

 

14.                               Termination and Amendment

 

14.1.                     The Board may amend, alter, suspend, discontinue, or terminate the Plan without the consent of the Company’s stockholders or Participants, except that any such amendment, alteration, suspension, discontinuation, or termination shall be subject to the approval of the Company’s stockholders if (i) such action would increase the number of shares subject to the Plan, (ii) such action results in the repricing, replacement or repurchase of any Option, SAR  or other Award, or (iii) such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Common Stock may then be listed or quoted, in each case, except as provided in Section 13.1; provided, however, that without the consent of an affected Participant, no amendment, alteration, suspension, discontinuation, or termination of the Plan may materially and adversely affect the rights of such Participant under any Award theretofore granted and any Award Agreement relating thereto, except as the Committee determines in its sole discretion to be necessary or advisable to ensure a deduction under Section 162(m) of the Code or to comply with Section 409A of the Code or an exemption therefrom.  The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Award

 

20

 

theretofore granted and any Award Agreement relating thereto; provided, however, that without the consent of an affected Participant, no such amendment, alteration, suspension, discontinuation, or termination of any Award may materially and adversely affect the rights of such Participant under such Award, except as the Committee determines in its sole discretion to be necessary or advisable to ensure a deduction under Section 162(m) of the Code or to comply with Section 409A of the Code or an exemption therefrom.

 

14.2.                     The foregoing notwithstanding, any Performance Goal or other performance condition specified in connection with an Award shall not be deemed a fixed contractual term, but shall remain subject to adjustment by the Committee, in its discretion at any time in view of the Committee’s assessment of the Company’s strategy, performance of comparable companies, and other circumstances, except to the extent that any such adjustment to a performance condition would adversely affect the intended status of an Award as “performance-based compensation” under Section 162(m) of the Code.

 

15.                               No Right to Award, Employment or Service

 

Neither the Plan nor any action taken hereunder shall be construed as giving any Employee, Consultant or Non-Employee Director any right to be retained in the employ or service of the Company, any Subsidiary or Affiliate.  For purposes of the Plan, transfer of employment or service between the Company and its Subsidiaries and Affiliates shall not be deemed a termination of employment or service.

 

16.                               Taxes

 

The Company, any Subsidiary or Affiliate is authorized to withhold from any payment relating to an Award under the Plan, including from a distribution of Common Stock or

 

21

 

any payroll or other payment to a Participant amounts of withholding and other taxes due in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company, the Subsidiary or Affiliate and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award.  This authority shall include authority to withhold or receive Common Stock or other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations.  Withholding of taxes in the form of shares of Common Stock shall not occur at a rate that exceeds the minimum required statutory federal and state withholding rates.(1)  Participants who are subject to the reporting requirements of Section 16 of the 1934 Act may elect to pay all or a portion of any withholding or other taxes due in connection with an Award by directing the Company to withhold shares of Common Stock that would otherwise be received in connection with such Award.

 

17.                               Limits on Transferability; Beneficiaries

 

No Award or other right or interest of a Participant under the Plan shall be pledged, encumbered, or hypothecated to, or in favor of, or subject to any lien, obligation, or liability of such Participant to, any party, other than the Company, any Subsidiary or Affiliate, or assigned or transferred by such Participant otherwise than by will or the laws of descent and distribution, and such Awards and rights shall be exercisable during the lifetime of the Participant only by the Participant or his or her guardian or legal representative.  Notwithstanding the foregoing, the Committee may, in its discretion, provide that Awards or

 

22

 

other rights or interests of a Participant granted pursuant to the Plan (other than an Incentive Stock Option) be transferable, without consideration, to immediate family members (i.e., children, grandchildren or spouse), to trusts for the benefit of such immediate family members and to partnerships in which such family members are the only partners.  The Committee may attach to such transferability feature such terms and conditions as it deems advisable.  In addition, a Participant may, in the manner established by the Committee, designate a beneficiary (which may be a person or a trust) to exercise the rights of the Participant, and to receive any distribution, with respect to any Award upon the death of the Participant.  A beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by the Committee, and to any additional restrictions deemed necessary or appropriate by the Committee.

 

18.                               No Rights to Awards; No Stockholder Rights

 

No Participant shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants.  No Award shall confer on any Participant any of the rights of a stockholder of the Company unless and until Common Stock is duly issued or transferred to the Participant in accordance with the terms of the Award.

 

19.                               Foreign Nationals.

 

Without amending the Plan, Awards may be granted to Employees, Consultants and Non-Employee Directors who are foreign nationals or are employed or providing services outside the United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the

 

23

 

purpose of the Plan.  Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose, provided that no such supplements, amendments, restatements or alternative versions shall include any provisions that are inconsistent with the terms of the Plan, as then in effect, unless the Plan could have been amended to eliminate such inconsistency without further approval by the stockholders of the Company.

 

20.                               Securities Law Requirements

 

20.1.                     No Award granted hereunder shall be exercisable if the Company shall at any time determine that (a) the listing upon any securities exchange, registration or qualification under any state or federal law of any Common Stock otherwise deliverable upon such exercise, or (b) the consent or approval of any regulatory body or the satisfaction of withholding tax or other withholding liabilities, is necessary or appropriate in connection with such exercise.  In any of the events referred to in clause (a) or clause (b) above, the exercisability of such Awards shall be suspended and shall not be effective unless and until such withholding, listing, registration, qualifications or approval shall have been effected or obtained free of any conditions not acceptable to the Company in its sole discretion, notwithstanding any termination of any Award or any portion of any Award during the period when exercisability has been suspended.

 

20.2.                     The Committee may require, as a condition to the right to exercise any Award that the Company receive from the Participant, at the time any such Award is exercised, vests or any applicable restrictions lapse, representations, warranties and agreements

 

24

 

to the effect that the shares are being purchased or acquired by the Participant for investment only and without any present intention to sell or otherwise distribute such shares and that the Participant will not dispose of such shares in transactions which, in the opinion of counsel to the Company, would violate the registration provisions of the Securities Act of 1933, as then amended, and the rules and regulations thereunder.  The certificates issued to evidence such shares shall bear appropriate legends summarizing such restrictions on the disposition thereof.

 

21.                               Recoupment

 

Any Award granted pursuant to the Plan shall be subject to mandatory repayment by the Participant to the Company pursuant to the terms of any Company “clawback” or recoupment policy directly applicable to the Plan and (i) set forth in the Participant’s Award Agreement or (ii) required by law to be applicable to the Participant.

 

22.                               Termination

 

Unless the Plan previously shall have been terminated by action of the Board, the Plan shall terminate on the 10-year anniversary of the Effective Date, and no Awards under the Plan shall thereafter be granted.

 

23.                               Fractional Shares

 

The Company will not be required to issue any fractional shares of Common Stock pursuant to the Plan.  The Committee may provide for the elimination of fractions and for the settlement of fractions in cash.

 

24.                               Governing Law

 

To the extent that Federal laws do not otherwise control, the validity and construction of the Plan and any Award Agreement entered into thereunder shall be construed

 

25

 

and enforced in accordance with the laws of the State of Delaware, but without giving effect to the choice of law principles thereof.

 

25.                               Effective Date

 

The Plan shall be effective as of the date approved by the Company’s shareholders.

 

26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]