Document:

Exhibit 4.1

 

SIMON PROPERTY GROUP, L.P.

 

ISSUER

 

TO

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

TRUSTEE

 

 

THIRTY-EIGHTH SUPPLEMENTAL INDENTURE

 

DATED AS OF SEPTEMBER 13, 2019

 

 

$1,000,000,000 2.000% NOTES due 2024
 $1,250,000,000 2.450% NOTES due 2029

$1,250,000,000 3.250% NOTES due 2049

 

SUPPLEMENT TO INDENTURE,
 DATED AS OF NOVEMBER 26, 1996,
 BETWEEN
 SIMON PROPERTY GROUP, L.P.
 AND
 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
 (AS SUCCESSOR TO THE CHASE MANHATTAN BANK),
 AS TRUSTEE

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   DEFINITIONS, CREATION, FORMS AND TERMS AND CONDITIONS OF THE SECURITIES
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 1.01.
    	
 
    	
Definitions
    	
 
    	
2
    
	
SECTION 1.02.
    	
 
    	
Creation of the Notes
    	
 
    	
4
    
	
SECTION 1.03.
    	
 
    	
Form of the Notes
    	
 
    	
4
    
	
SECTION 1.04.
    	
 
    	
Terms and Conditions of the 2024 Notes
    	
 
    	
4
    
	
SECTION 1.05.
    	
 
    	
Terms and Conditions of the 2029 Notes
    	
 
    	
6
    
	
SECTION 1.06.
    	
 
    	
Terms and Conditions of the 2049 Notes
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II   COVENANTS; EVENTS AND NOTICE OF DEFAULT; SUPPLEMENTAL INDENTURES
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 2.01.
    	
 
    	
Covenants for Benefit of Holders of Notes
    	
 
    	
10
    
	
SECTION 2.02.
    	
 
    	
Provision of Financial Information
    	
 
    	
10
    
	
SECTION 2.03.
    	
 
    	
Definitions
    	
 
    	
11
    
	
SECTION 2.04.
    	
 
    	
Events of Default
    	
 
    	
12
    
	
SECTION 2.05.
    	
 
    	
Notice of Defaults
    	
 
    	
13
    
	
SECTION 2.06.
    	
 
    	
Supplemental Indentures Without Consent of Holders
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III   TRANSFER AND EXCHANGE
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 3.01.
    	
 
    	
Transfer and Exchange
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV   LEGENDS
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 4.01.
    	
 
    	
Legends
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V   TRUSTEE
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 5.01.
    	
 
    	
Corporate Trust Office
    	
 
    	
15
    
	
SECTION 5.02.
    	
 
    	
Recitals of Fact; Other Matters
    	
 
    	
15
    
	
SECTION 5.03.
    	
 
    	
Successor
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI   MISCELLANEOUS PROVISIONS
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 6.01.
    	
 
    	
Ratification of Original Indenture
    	
 
    	
16
    
	
SECTION 6.02.
    	
 
    	
Effect of Headings
    	
 
    	
16
    
	
SECTION 6.03.
    	
 
    	
Successors and Assigns
    	
 
    	
16
    
	
SECTION 6.04.
    	
 
    	
Separability Clause
    	
 
    	
16
    
	
SECTION 6.05.
    	
 
    	
Governing Law
    	
 
    	
16
    
	
SECTION 6.06.
    	
 
    	
Counterparts
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBITS
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT A
    	
 
    	
Form of Global Note
    	
 
    	
 
    
	
EXHIBIT B
    	
 
    	
Form of Certificated Note
    	
 
    	
 
    

 

i

 

THIRTY-EIGHTH SUPPLEMENTAL INDENTURE, dated as of September 13, 2019 (the “Thirty-Eighth Supplemental Indenture”), between SIMON PROPERTY GROUP, L.P. (formerly known as Simon DeBartolo Group, L.P.), a Delaware limited partnership (the “Issuer” or the “Operating Partnership”), having its principal offices at 225 West Washington Street, Indianapolis, Indiana 46204, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (as successor to The Chase Manhattan Bank), a national banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”), having its Corporate Trust Office at 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602.

 

RECITALS

 

WHEREAS, the Issuer and Simon Property Group, L.P., a Delaware limited partnership acting as a guarantor (the “Guarantor”), executed and delivered to the Trustee an Indenture, dated as of November 26, 1996 (the “Original Indenture”), providing for the issuance from time to time of debt securities evidencing unsecured and unsubordinated indebtedness of the Issuer;

 

WHEREAS, on December 31, 1997 the Guarantor was merged into the Issuer as contemplated under the Indenture;

 

WHEREAS, the Issuer changed its name from “Simon DeBartolo Group, L.P.” to “Simon Property Group, L.P.” effective as of September 24, 1998;

 

WHEREAS, the Original Indenture provides that by means of a supplemental indenture, the Issuer may create one or more series of its debt securities and establish the form and terms and conditions thereof;

 

WHEREAS, the Issuer intends by this Thirty-Eighth Supplemental Indenture to create and provide for the following series of debt securities:

 

Simon Property Group, L.P. 2.000% Notes due 2024 (the “2024 Notes”) initially in an aggregate principal amount of $1,000,000,000;

 

Simon Property Group, L.P. 2.450% Notes due 2029 (the “2029 Notes”) initially in an aggregate principal amount of $1,250,000,000; and

 

Simon Property Group, L.P. 3.250% Notes due 2049 (the “2049 Notes,” and together with the 2024 Notes and the 2029 Notes, the “Notes”) initially in an aggregate principal amount of $1,250,000,000;

 

WHEREAS, the Board of Directors of Simon Property Group, Inc., the general partner of the Issuer, has approved the creation of the Notes and the forms, terms and conditions thereof pursuant to Sections 301 and 1701 of the Original Indenture; and

 

WHEREAS, all actions required to be taken under the Original Indenture with respect to this Thirty-Eighth Supplemental Indenture have been taken.

 

NOW, THEREFORE, IT IS AGREED:

 

 

ARTICLE I

 

DEFINITIONS, CREATION, FORMS AND
 TERMS AND CONDITIONS OF THE SECURITIES

 

SECTION 1.01.                                   Definitions.  Capitalized terms used in this Thirty-Eighth Supplemental Indenture and not otherwise defined shall have the meanings ascribed to them in the Original Indenture.  Certain terms, used principally in Article II of this Thirty-Eighth Supplemental Indenture, are defined in that Article.  In addition, the following terms shall have the following meanings to be equally applicable to both the singular and the plural forms of the terms defined:

 

“2024 Interest Payment Date” has the meaning set forth in Section 1.04(c).

 

“2024 Notes” has the meaning set forth in the Recitals hereto.

 

“2024 Redemption Price” has the meaning set forth in Section 1.04(d).

 

“2024 Regular Record Date” has the meaning set forth in Section 1.04(c).

 

“2029 Interest Payment Date” has the meaning set forth in Section 1.05(c).

 

“2029 Notes” has the meaning set forth in the Recitals hereto.

 

“2029 Redemption Price” has the meaning set forth in Section 1.05(d).

 

“2029 Regular Record Date” has the meaning set forth in Section 1.05(c).

 

“2049 Interest Payment Date” has the meaning set forth in Section 1.06(c).

 

“2049 Notes” has the meaning set forth in the Recitals hereto.

 

“2049 Redemption Price” has the meaning set forth in Section 1.06(d).

 

“2049 Regular Record Date” has the meaning set forth in Section 1.06(c).

 

“Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in The City of New York are authorized or required by law, regulation or executive order to close.

 

“Certificated Notes” has the meaning set forth in Article III.

 

“Closing Date” means September 13, 2019.

 

“Dollar” or “$” means the lawful currency of the United States of America.

 

“DTC” means The Depository Trust Company, its nominees and their successors and assigns.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

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

 

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“Indenture” means the Original Indenture as supplemented by this Thirty-Eighth Supplemental Indenture.

 

“Issuer” has the meaning set forth in the Recitals hereto.

 

“Make-Whole Amount” means, in connection with any optional redemption or accelerated payment of any Notes, the excess, if any, of (i) the aggregate present value, as of the date of such redemption or accelerated payment, of each Dollar of principal of such Notes being redeemed or accelerated and the amount of interest, calculated by the Operating Partnership, excluding interest accrued to the date of redemption or accelerated payment, that would have been payable in respect of each such Dollar if such redemption or accelerated payment had been made on June 13, 2024, in the case of the 2024 Notes, June 13, 2029, in the case of the 2029 Notes, or March 13, 2049, in the case of the 2049 Notes, determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate, determined on the third Business Day preceding the date notice of such redemption or accelerated payment is given, from the respective dates on which such principal and interest would have been payable if such redemption or accelerated payment had been made on June 13, 2024, in the case of the 2024 Notes, June 13, 2029, in the case of the 2029 Notes, or March 13, 2049, in the case of the 2049 Notes, over (ii) the aggregate principal amount of such Notes being redeemed or accelerated.

 

“Notes” has the meaning set forth in the Recitals hereto.

 

“Operating Partnership” has the meaning set forth in the Recitals hereto.

 

“Original Indenture” has the meaning set forth in the Recitals hereto.

 

“Reinvestment Rate” means, in connection with any optional redemption or accelerated payment of any Notes, the yield on treasury securities at a constant maturity corresponding to the remaining life to maturity (rounded up to the nearest month) of the principal of the Notes being redeemed or accelerated as of the date of redemption or accelerated payment (which maturity shall be deemed to be June 13, 2024, in the case of the 2024 Notes, June 13, 2029, in the case of the 2029 Notes, or March 13, 2049, in the case of the 2049 Notes) (the “Treasury Yield”), plus 0.125%, in the case of the 2024 Notes, 0.200%, in the case of the 2029 Notes, and 0.200%, in the case of the 2049 Notes, being redeemed or accelerated.  For purposes hereof, (1) the Treasury Yield shall be equal to the arithmetic mean of the yields displayed for each day in the preceding calendar week published in the Statistical Release for Treasury constant maturities with a maturity equal to the remaining life to maturity of the Notes being redeemed or accelerated (assuming the 2024 Notes mature on June 13, 2024, the 2029 Notes mature on June 13, 2029 and the 2049 Notes mature on March 13, 2049) and (2) the most recent Statistical Release published prior to the date of the applicable determination will be used; provided, that if no published maturity exactly corresponds to such remaining life, then the Treasury Yield shall be interpolated or extrapolated on a straight-line basis from the arithmetic means of the yields for the next shortest and next longest published maturities, rounding each of such relevant periods to the nearest month.  If the format or content of the Statistical Release changes in a manner that precludes determination of the Treasury Yield in the above manner, then the Treasury Yield shall be determined in the manner that most closely approximates the above manner, as reasonably determined by the Operating Partnership.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time.

 

“Statistical Release” means the statistical release designated “H.15” or any successor publication which is published weekly by the Federal Reserve System and which reports yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release or

 

3

 

successor publication is not published at the time of any required determination, then such other reasonably comparable index which shall be designated by the Operating Partnership.

 

“Trustee” has the meaning set forth in the Recitals hereto.

 

SECTION 1.02.                                   Creation of the Notes.  In accordance with Section 301 of the Original Indenture, the Issuer hereby creates each of the 2024 Notes, the 2029 Notes and the 2049 Notes as a separate series of its debt securities issued pursuant to the Indenture.  The 2024 Notes shall be issued initially in an aggregate principal amount of $1,000,000,000, the 2029 Notes shall be issued initially in an aggregate principal amount of $1,250,000,000 and the 2049 Notes shall be issued initially in an aggregate principal amount of $1,250,000,000, except, in each case, as permitted by Sections 301, 304, 305 or 306 of the Original Indenture.

 

SECTION 1.03.                                   Form of the Notes.  Each series of the Notes shall be issued in the form of one or more Global Notes, duly executed by the Operating Partnership and authenticated by the Trustee without the necessity of the reproduction thereon of the corporate seal of the General Partner (as defined in the Original Indenture), which shall be deposited with, or on behalf of, DTC and registered in the name of “Cede & Co.,” as the nominee of DTC.  The Notes of each series shall be substantially in the form of Exhibit A attached hereto.  So long as DTC, or its nominee, is the registered owner of a Global Note, DTC or its nominee, as the case may be, shall be considered the sole owner or Holder of the Notes represented by such Global Notes for all purposes under the Indenture.  Ownership of beneficial interests in such Global Notes shall be shown on, and transfers thereof will be effected only through, records maintained by DTC (with respect to beneficial interests of participants) or by participants or Persons that hold interests through participants (with respect to beneficial interests of beneficial owners).

 

SECTION 1.04.                                   Terms and Conditions of the 2024 Notes.  The 2024 Notes shall be governed by all the terms and conditions of the Indenture.  In particular, the following provisions shall be terms of the 2024 Notes:

 

(a)                                 Title and Aggregate Principal Amount.  The title of the 2024 Notes shall be as specified in the Recitals; and the aggregate principal amount of the 2024 Notes shall be as specified in Section 1.02 of this Thirty-Eighth Supplemental Indenture, except as permitted by Sections 301, 304, 305 or 306 of the Original Indenture.

 

(b)                                 Stated Maturity.  The 2024 Notes shall mature, and the unpaid principal thereon shall be payable, on September 13, 2024, subject to the provisions of the Original Indenture and Section 1.04(d) below.

 

(c)                                  Interest.  The rate per annum at which interest shall be payable on the 2024 Notes shall be 2.000%.  Interest on the 2024 Notes shall be payable semi-annually in arrears on each March 13 and September 13, commencing on March 13, 2020 (each, a “2024 Interest Payment Date”), to the Persons in whose names the applicable 2024 Notes are registered in the Security Register applicable to the 2024 Notes at the close of business on the 15th calendar day immediately prior to the applicable 2024 Interest Payment Date regardless of whether such day is a Business Day (each, a “2024 Regular Record Date”).  Interest on the 2024 Notes shall be computed on the basis of a 360-day year of twelve 30-day months.  Interest on the 2024 Notes shall accrue from and including September 13, 2019.

 

(d)                                 Sinking Fund, Redemption or Repayment.  No sinking fund shall be provided for the 2024 Notes and the 2024 Notes shall not be repayable at the option of the Holders thereof prior to their Stated Maturity.  The 2024 Notes may be redeemed at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the 2024

 

4

 

Notes being redeemed plus accrued interest thereon to but excluding the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to such 2024 Notes (collectively, the “2024 Redemption Price”), all in accordance with the provisions of Article XI of the Original Indenture, as supplemented herein; provided, however, that if the 2024 Notes are redeemed on or after June 13, 2024, the 2024 Redemption Price shall not include the Make-Whole Amount.

 

If notice of redemption has been given as provided in the Original Indenture and as supplemented herein, and funds for the redemption of any 2024 Notes called for redemption shall have been made available on the Redemption Date referred to in such notice, such 2024 Notes shall cease to bear interest on the Redemption Date and the only right of the Holders of the 2024 Notes from and after the Redemption Date shall be to receive payment of the 2024 Redemption Price upon surrender of such 2024 Notes in accordance with such notice.

 

(e)                                  Registration and Form.  The 2024 Notes shall be issuable as Registered Securities as provided in Section 1.03 of this Thirty-Eighth Supplemental Indenture.  The 2024 Notes shall be issued and may be transferred only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  All payments of principal, premium, if any, and interest in respect of the 2024 Notes shall be made by the Issuer in immediately available funds.

 

(f)                                   Defeasance and Covenant Defeasance.  The provisions for defeasance in Section 1402 of the Original Indenture, and the provisions for covenant defeasance (which provisions shall apply, without limitation, to the covenants set forth in Article II of this Thirty-Eighth Supplemental Indenture) in Section 1403 of the Original Indenture, shall be applicable to the 2024 Notes.

 

(g)                                  Make-Whole Amount Payable Upon Acceleration.  Upon any acceleration of the Stated Maturity of the 2024 Notes in accordance with Section 502 of the Original Indenture, the Make-Whole Amount on the 2024 Notes shall become immediately due and payable, subject to the terms and conditions of the Indenture.

 

(h)                                 Further Issues.  Notwithstanding anything to the contrary contained herein or in the Original Indenture, the Issuer may, from time to time, without the consent of or notice to the Holders, create and issue further debt securities under the Indenture having the same terms and conditions as the 2024 Notes in all respects, except for issue date, issue price and, to the extent applicable, first payment of interest.  Additional debt securities issued in this manner shall be consolidated with and shall form a single series with the previously outstanding 2024 Notes, provided, however, that the issuance of such additional debt securities will not be so consolidated for United States federal income tax purposes unless such issuance constitutes a “qualified reopening” within the meaning of the Code, and the Treasury regulations promulgated thereunder.  Notice of any such issuance shall be given to the Trustee and a new supplemental indenture shall be executed in connection with the issuance of such additional debt securities.

 

(i)                                     Election to Redeem; Notice to the Trustee.  The second sentence of Section 1102 of the Original Indenture is replaced in its entirety by the following with respect to the 2024 Notes:

 

“In case of any redemption at the election of the Issuer of less than all of the Securities of any series, the Issuer shall, at least 5 business days prior to the giving of the notice of redemption in Section 1104 (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities of such series to be redeemed.”

 

(j)                                    Selection by Trustee of Securities to be Redeemed.  The first paragraph of Section 1103 of the Original Indenture is replaced in its entirety by the following with respect to the 2024 Notes:

 

5

 

“If less than all the Securities of any series issued on the same day with the same terms are to be redeemed, the particular Securities to be redeemed shall be selected by the Trustee from the Outstanding Securities of such series issued on such date with the same terms not previously called for redemption, by such method as the Trustee shall deem fair and appropriate (and in such manner as complies with the requirements of DTC, if applicable) and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series.”

 

(k)                                 Notice of Redemption.  The first paragraph of Section 1104 of the Original Indenture is replaced in its entirety by the following with respect to the 2024 Notes:

 

“Notice of redemption shall be given in the manner provided in Section 106, not less than 15 days nor more than 45 days prior to the Redemption Date, unless a shorter period is specified by the terms of such series established pursuant to Section 301, to each Holder of Securities to be redeemed, but failure to give such notice in the manner herein provided to the Holder of any Security designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Security or portion thereof.”

 

(l)                                     Other Terms and Conditions.  The 2024 Notes shall have such other terms and conditions applicable to them as provided in the form thereof attached as Exhibit A.

 

SECTION 1.05.                                   Terms and Conditions of the 2029 Notes.  The 2029 Notes shall be governed by all the terms and conditions of the Indenture.  In particular, the following provisions shall be terms of the 2029 Notes:

 

(a)                                 Title and Aggregate Principal Amount.  The title of the 2029 Notes shall be as specified in the Recitals; and the aggregate principal amount of the 2029 Notes shall be as specified in Section 1.02 of this Thirty-Eighth Supplemental Indenture, except as permitted by Sections 301, 304, 305 or 306 of the Original Indenture.

 

(b)                                 Stated Maturity.  The 2029 Notes shall mature, and the unpaid principal thereon shall be payable, on September 13, 2029, subject to the provisions of the Original Indenture and Section 1.05(d) below.

 

(c)                                  Interest.  The rate per annum at which interest shall be payable on the 2029 Notes shall be 2.450%.  Interest on the 2029 Notes shall be payable semi-annually in arrears on each March 13 and September 13, commencing on March 13, 2020 (each, a “2029 Interest Payment Date”), to the Persons in whose names the applicable 2029 Notes are registered in the Security Register applicable to the 2029 Notes at the close of business on the 15th calendar day immediately prior to the applicable 2029 Interest Payment Date regardless of whether such day is a Business Day (each, a “2029 Regular Record Date”).  Interest on the 2029 Notes shall be computed on the basis of a 360-day year of twelve 30-day months.  Interest on the 2029 Notes shall accrue from and including September 13, 2019.

 

(d)                                 Sinking Fund, Redemption or Repayment.  No sinking fund shall be provided for the 2029 Notes and the 2029 Notes shall not be repayable at the option of the Holders thereof prior to their Stated Maturity.  The 2029 Notes may be redeemed at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the 2029 Notes being redeemed plus accrued interest thereon to but excluding the Redemption Date and (ii) the

 

6

 

Make-Whole Amount, if any, with respect to such 2029 Notes (collectively, the “2029 Redemption Price”), all in accordance with the provisions of Article XI of the Original Indenture, as supplemented herein; provided, however, that if the 2029 Notes are redeemed on or after June 13, 2029, the 2029 Redemption Price shall not include the Make-Whole Amount.

 

If notice of redemption has been given as provided in the Original Indenture and as supplemented herein, and funds for the redemption of any 2029 Notes called for redemption shall have been made available on the Redemption Date referred to in such notice, such 2029 Notes shall cease to bear interest on the Redemption Date and the only right of the Holders of the 2029 Notes from and after the Redemption Date shall be to receive payment of the 2029 Redemption Price upon surrender of such 2029 Notes in accordance with such notice.

 

(e)                                  Registration and Form.  The 2029 Notes shall be issuable as Registered Securities as provided in Section 1.03 of this Thirty-Eighth Supplemental Indenture.  The 2029 Notes shall be issued and may be transferred only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  All payments of principal, premium, if any, and interest in respect of the 2029 Notes shall be made by the Issuer in immediately available funds.

 

(f)                                   Defeasance and Covenant Defeasance.  The provisions for defeasance in Section 1402 of the Original Indenture, and the provisions for covenant defeasance (which provisions shall apply, without limitation, to the covenants set forth in Article II of this Thirty-Eighth Supplemental Indenture) in Section 1403 of the Original Indenture, shall be applicable to the 2029 Notes.

 

(g)                                  Make-Whole Amount Payable Upon Acceleration.  Upon any acceleration of the Stated Maturity of the 2029 Notes in accordance with Section 502 of the Original Indenture, the Make-Whole Amount on the 2029 Notes shall become immediately due and payable, subject to the terms and conditions of the Indenture.

 

(h)                                 Further Issues.  Notwithstanding anything to the contrary contained herein or in the Original Indenture, the Issuer may, from time to time, without the consent of or notice to the Holders, create and issue further debt securities under the Indenture having the same terms and conditions as the 2029 Notes in all respects, except for issue date, issue price and, to the extent applicable, first payment of interest.  Additional debt securities issued in this manner shall be consolidated with and shall form a single series with the previously outstanding 2029 Notes, provided, however, that the issuance of such additional debt securities will not be so consolidated for United States federal income tax purposes unless such issuance constitutes a “qualified reopening” within the meaning of the Code, and the Treasury regulations promulgated thereunder.  Notice of any such issuance shall be given to the Trustee and a new supplemental indenture shall be executed in connection with the issuance of such additional debt securities.

 

(i)                                     Election to Redeem; Notice to the Trustee.  The second sentence of Section 1102 of the Original Indenture is replaced in its entirety by the following with respect to the 2029 Notes:

 

“In case of any redemption at the election of the Issuer of less than all of the Securities of any series, the Issuer shall, at least 5 business days prior to the giving of the notice of redemption in Section 1104 (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities of such series to be redeemed.”

 

(j)                                    Selection by Trustee of Securities to be Redeemed.  The first paragraph of Section 1103 of the Original Indenture is replaced in its entirety by the following with respect to the 2029 Notes:

 

7

 

“If less than all the Securities of any series issued on the same day with the same terms are to be redeemed, the particular Securities to be redeemed shall be selected by the Trustee from the Outstanding Securities of such series issued on such date with the same terms not previously called for redemption, by such method as the Trustee shall deem fair and appropriate (and in such manner as complies with the requirements of DTC, if applicable) and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series.”

 

(k)                                 Notice of Redemption.  The first paragraph of Section 1104 of the Original Indenture is replaced in its entirety by the following with respect to the 2029 Notes:

 

“Notice of redemption shall be given in the manner provided in Section 106, not less than 15 days nor more than 45 days prior to the Redemption Date, unless a shorter period is specified by the terms of such series established pursuant to Section 301, to each Holder of Securities to be redeemed, but failure to give such notice in the manner herein provided to the Holder of any Security designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Security or portion thereof.”

 

(l)                                     Other Terms and Conditions.  The 2029 Notes shall have such other terms and conditions applicable to them as provided in the form thereof attached as Exhibit A.

 

SECTION 1.06.                                   Terms and Conditions of the 2049 Notes.  The 2049 Notes shall be governed by all the terms and conditions of the Indenture.  In particular, the following provisions shall be terms of the 2049 Notes:

 

(a)                                 Title and Aggregate Principal Amount.  The title of the 2049 Notes shall be as specified in the Recitals; and the aggregate principal amount of the 2049 Notes shall be as specified in Section 1.02 of this Thirty-Eighth Supplemental Indenture, except as permitted by Sections 301, 304, 305 or 306 of the Original Indenture.

 

(b)                                 Stated Maturity.  The 2049 Notes shall mature, and the unpaid principal thereon shall be payable, on September 13, 2049, subject to the provisions of the Original Indenture and Section 1.06(d) below.

 

(c)                                  Interest.  The rate per annum at which interest shall be payable on the 2049 Notes shall be 3.250%.  Interest on the 2049 Notes shall be payable semi-annually in arrears on each March 13 and September 13, commencing on March 13, 2020 (each, a “2049 Interest Payment Date”), to the Persons in whose names the applicable 2049 Notes are registered in the Security Register applicable to the 2049 Notes at the close of business on the 15th calendar day immediately prior to the applicable 2049 Interest Payment Date regardless of whether such day is a Business Day (each, a “2049 Regular Record Date”).  Interest on the 2049 Notes shall be computed on the basis of a 360-day year of twelve 30-day months.  Interest on the 2049 Notes shall accrue from and including September 13, 2019.

 

(d)                                 Sinking Fund, Redemption or Repayment.  No sinking fund shall be provided for the 2049 Notes and the 2049 Notes shall not be repayable at the option of the Holders thereof prior to their Stated Maturity.  The 2049 Notes may be redeemed at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the 2049 Notes being redeemed plus accrued interest thereon to but excluding the Redemption Date and (ii) the

 

8

 

Make-Whole Amount, if any, with respect to such 2049 Notes (collectively, the “2049 Redemption Price”), all in accordance with the provisions of Article XI of the Original Indenture, as supplemented herein; provided, however, that if the 2049 Notes are redeemed on or after March 13, 2049, the 2049 Redemption Price shall not include the Make-Whole Amount.

 

If notice of redemption has been given as provided in the Original Indenture and as supplemented herein, and funds for the redemption of any 2049 Notes called for redemption shall have been made available on the Redemption Date referred to in such notice, such 2049 Notes shall cease to bear interest on the Redemption Date and the only right of the Holders of the 2049 Notes from and after the Redemption Date shall be to receive payment of the 2049 Redemption Price upon surrender of such 2049 Notes in accordance with such notice.

 

(e)                                  Registration and Form.  The 2049 Notes shall be issuable as Registered Securities as provided in Section 1.03 of this Thirty-Eighth Supplemental Indenture.  The 2049 Notes shall be issued and may be transferred only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  All payments of principal, premium, if any, and interest in respect of the 2049 Notes shall be made by the Issuer in immediately available funds.

 

(f)                                   Defeasance and Covenant Defeasance.  The provisions for defeasance in Section 1402 of the Original Indenture, and the provisions for covenant defeasance (which provisions shall apply, without limitation, to the covenants set forth in Article II of this Thirty-Eighth Supplemental Indenture) in Section 1403 of the Original Indenture, shall be applicable to the 2049 Notes.

 

(g)                                  Make-Whole Amount Payable Upon Acceleration.  Upon any acceleration of the Stated Maturity of the 2049 Notes in accordance with Section 502 of the Original Indenture, the Make-Whole Amount on the 2049 Notes shall become immediately due and payable, subject to the terms and conditions of the Indenture.

 

(h)                                 Further Issues.  Notwithstanding anything to the contrary contained herein or in the Original Indenture, the Issuer may, from time to time, without the consent of or notice to the Holders, create and issue further debt securities under the Indenture having the same terms and conditions as the 2049 Notes in all respects, except for issue date, issue price and, to the extent applicable, first payment of interest.  Additional debt securities issued in this manner shall be consolidated with and shall form a single series with the previously outstanding 2049 Notes, provided, however, that the issuance of such additional debt securities will not be so consolidated for United States federal income tax purposes unless such issuance constitutes a “qualified reopening” within the meaning of the Code, and the Treasury regulations promulgated thereunder.  Notice of any such issuance shall be given to the Trustee and a new supplemental indenture shall be executed in connection with the issuance of such additional debt securities.

 

(i)                                     Election to Redeem; Notice to the Trustee.  The second sentence of Section 1102 of the Original Indenture is replaced in its entirety by the following with respect to the 2049 Notes:

 

“In case of any redemption at the election of the Issuer of less than all of the Securities of any series, the Issuer shall, at least 5 business days prior to the giving of the notice of redemption in Section 1104 (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities of such series to be redeemed.”

 

(j)                                    Selection by Trustee of Securities to be Redeemed.  The first paragraph of Section 1103 of the Original Indenture is replaced in its entirety by the following with respect to the 2049 Notes:

 

9

 

“If less than all the Securities of any series issued on the same day with the same terms are to be redeemed, the particular Securities to be redeemed shall be selected by the Trustee from the Outstanding Securities of such series issued on such date with the same terms not previously called for redemption, by such method as the Trustee shall deem fair and appropriate (and in such manner as complies with the requirements of DTC, if applicable) and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series.”

 

(k)                                 Notice of Redemption.  The first paragraph of Section 1104 of the Original Indenture is replaced in its entirety by the following with respect to the 2049 Notes:

 

“Notice of redemption shall be given in the manner provided in Section 106, not less than 15 days nor more than 45 days prior to the Redemption Date, unless a shorter period is specified by the terms of such series established pursuant to Section 301, to each Holder of Securities to be redeemed, but failure to give such notice in the manner herein provided to the Holder of any Security designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Security or portion thereof.”

 

(l)                                     Other Terms and Conditions.  The 2049 Notes shall have such other terms and conditions applicable to them as provided in the form thereof attached as Exhibit A.

 

ARTICLE II

 

COVENANTS; EVENTS AND NOTICE OF DEFAULT;
 SUPPLEMENTAL INDENTURES

 

SECTION 2.01.                                   Covenants for Benefit of Holders of Notes.  In addition to the covenants set forth in Article X of the Original Indenture, there are established pursuant to Section 901(2) of the Original Indenture the following covenants for the benefit of the Holders of the Notes of each series and to which such Notes shall be subject.

 

(a)                                 Limitation on Debt.  As of each Reporting Date (as defined below), Debt (as defined below) shall not exceed 65% of Total Assets (as defined below).

 

(b)                                 Limitation on Secured Debt.  As of each Reporting Date, Secured Debt (as defined below) shall not exceed 50% of Total Assets.

 

(c)                                  Fixed Charge Coverage Ratio.  For the four consecutive quarters ending on each Reporting Date, the ratio of Annualized EBITDA (as defined below) to Annualized Interest Expense (as defined below) shall be at least 1.50 to 1.00.

 

(d)                                 Maintenance of Unencumbered Assets.  As of each Reporting Date, Unencumbered Assets (as defined below) shall be at least 125% of Unsecured Debt (as defined below).

 

SECTION 2.02.                                   Provision of Financial Information. For the purposes of the Notes of each series, Section 1010 of the Original Indenture is hereby amended by adding the following as the third paragraph of such section:

 

10

 

“The availability of the foregoing materials on the Commission’s website or on the Issuer’s website shall be deemed to satisfy the foregoing delivery obligations. The Trustee shall have no obligation to determine if and when the Issuer’s Financial Statements or reports are publicly available and accessible electronically.”

 

SECTION 2.03.                                   Definitions.  As used herein:

 

“Annualized EBITDA” means, for the four consecutive quarters ending on each Reporting Date, the Operating Partnership’s Pro Rata Share (as defined below) of earnings before interest, taxes, depreciation and amortization (“EBITDA”), with other adjustments as are necessary to exclude the effect of all realized or unrealized gains and losses related to hedging obligations, items classified as extraordinary items and impairment charges in accordance with generally accepted accounting principles, adjusted to reflect the assumption that (i) any EBITDA related to any assets acquired or placed in service since the first day of such four-quarter period had been earned, on an annualized basis, from the beginning of such period, and (ii) any assets disposed of during such four-quarter period had been disposed of as of the first day of such period and no EBITDA related to such assets had been earned during such period.

 

“Annualized Interest Expense” means, for the four consecutive quarters ending on each Reporting Date, the Operating Partnership’s Pro Rata Share of interest expense, with other adjustments as are necessary to exclude the effect of items classified as extraordinary items, in accordance with generally accepted accounting principles, reduced by amortization of debt issuance costs and adjusted to reflect the assumption that (i) any interest expense related to indebtedness incurred since the first day of such four-quarter period is computed as if such indebtedness had been incurred as of the beginning of such period, and (ii) any interest expense related to indebtedness that was repaid or retired since the first day of such four-quarter period is computed as if such indebtedness had been repaid or retired as of the beginning of such period (except that, in making such computation, the amount of interest expense related to indebtedness under any revolving credit facility shall be computed based upon the average daily balance of such indebtedness during such four-quarter period).

 

“Capitalization Rate” means 7.00%.

 

“Capitalized Value” means, as of any date, Annualized EBITDA divided by the Capitalization Rate.

 

“Company” means Simon Property Group, Inc., a Delaware corporation and the sole general partner of the Operating Partnership.

 

“Debt” means the Operating Partnership’s Pro Rata Share of the aggregate principal amount of indebtedness in respect of (i) borrowed money evidenced by bonds, notes, debentures or similar instruments, as determined in accordance with generally accepted accounting principles, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property owned by the Operating Partnership or any Subsidiary directly, or indirectly through unconsolidated joint ventures, as determined in accordance with generally accepted accounting principles, (iii) reimbursement obligations in connection with any letters of credit actually issued and called and (iv) any lease of property by the Operating Partnership or any Subsidiary as lessee which is reflected in the Operating Partnership’s balance sheet as a financing lease, in accordance with generally accepted accounting principles; provided, that Debt also includes, to the extent not otherwise included, any obligation by the Operating Partnership or any Subsidiary to be liable for, or to pay, as obligor, guarantor or otherwise, items of indebtedness of another Person (other than the Operating Partnership or any Subsidiary) described in clauses (i) through (iv) above (or, in the case of any such obligation made jointly with another Person, the Operating Partnership’s or Subsidiary’s allocable portion of such obligation based on its ownership interest in the

 

11

 

related real estate assets); and provided, further, that Debt excludes (a) Intercompany Debt (as defined below) and (b) in the case of clause (iv) above, operating lease liabilities on the Operating Partnership’s balance sheet in accordance with generally accepted accounting principles.

 

“Intercompany Debt” means Debt to which the only parties are the Company, the Operating Partnership and any of their Subsidiaries or affiliates (but only so long as such Debt is held solely by any of the Company, the Operating Partnership and any Subsidiary or affiliate) and provided that, in the case of Debt owed by the Operating Partnership to any Subsidiary or affiliate, the Debt is subordinated in right of payment to the Notes.

 

“Pro Rata Share” means any applicable figure or measure of the Operating Partnership and its Subsidiaries on a consolidated basis, less any portion attributable to minority interests, plus the Operating Partnership’s or its Subsidiaries’ allocable portion of such figure or measure, based on their ownership interest, of unconsolidated joint ventures.

 

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

 

“Secured Debt” means Debt secured by any mortgage, lien, pledge, encumbrance or security interest of any kind upon any of the property of the Operating Partnership or any Subsidiary.

 

“Stabilized Asset” means (i) with respect to an acquisition of an asset, such asset becomes stabilized when the Operating Partnership or its Subsidiaries or an unconsolidated joint venture in which the Operating Partnership or any Subsidiary has an interest has owned the asset as of at least six Reporting Dates, and (ii) with respect to a new construction or development asset, such asset becomes stabilized four Reporting Dates after the earlier of (a) six Reporting Dates after substantial completion of construction or development or (b) the first Reporting Date on which the asset is at least 90% leased.

 

“Total Assets” means, as of any Reporting Date, the sum of (i) for Stabilized Assets, Capitalized Value; (ii) for all other assets of the Operating Partnership and its Subsidiaries, the Operating Partnership’s Pro Rata Share of undepreciated book value as determined in accordance with generally accepted accounting principles; and (iii) the Operating Partnership’s Pro Rata Share of cash and cash equivalents; provided, that Total Assets excludes right-of-use assets associated with operating leases in accordance with generally accepted accounting principles.

 

“Unencumbered Annualized EBITDA” means Annualized EBITDA less any portion thereof attributable to assets serving as collateral for Secured Debt.

 

“Unencumbered Assets” as of any Reporting Date means Total Assets as of such date multiplied by a fraction, the numerator of which is Unencumbered Annualized EBITDA and the denominator of which is Annualized EBITDA.

 

“Unsecured Debt” means Debt that is not secured by any mortgage, lien, pledge, encumbrance or security interest of any kind.

 

SECTION 2.04.                                   Events of Default.  For the purposes of the Notes of each series, Section 501 of the Original Indenture is hereby amended by, supplemented with, and where inconsistent replaced by, the following provisions:

 

12

 

(a)                                 Section 501(4) of the Original Indenture is replaced in its entirety by the following:

 

“(4)                           default in the performance, or breach, of any covenant or warranty of the Issuer in this Indenture with respect to any Security of that series (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or”

 

(b)                                 Section 501(5) of the Original Indenture is replaced in its entirety by the following:

 

“(5)                           a default under any evidence of recourse indebtedness of the Issuer, or under any mortgage, indenture or other instrument of the Issuer (including a default with respect to Securities of any series other than that series) under which there may be issued or by which there may be secured any recourse indebtedness of the Issuer (or of any Subsidiary, the repayment of which the Issuer has guaranteed or for which the Issuer is directly responsible or liable as obligor or guarantor), whether such indebtedness now exists or shall hereafter be created, which default shall constitute a failure to pay an aggregate principal amount exceeding $50,000,000 of such indebtedness when due and payable after the expiration of any applicable grace period with respect thereto and shall have resulted in such indebtedness in an aggregate principal amount exceeding $50,000,000 becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable, without such indebtedness having been discharged, or such acceleration having been rescinded or annulled, within a period of 30 days after there shall have been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default and requiring the Issuer to cause such indebtedness to be discharged or cause such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder; or”

 

SECTION 2.05.                                   Notice of Defaults.  For the purposes of the Notes of each series, Section 601 of the Original Indenture is hereby replaced in its entirety by the following provision:

 

“Notice of Defaults.  Within 90 days after the occurrence of any default hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner and to the extent provided in TIA Section 313(c), notice of such default hereunder known to the Trustee, unless such default shall have been cured or waived; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest on or any Additional Amounts with respect to any Security of such series, or in the payment of any sinking fund installment with respect to the Securities of such series, the Trustee shall be protected in withholding such notice if and so long as a trust committee of Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interests of the Holders of the Securities and Coupons of such series; and provided further that in the case of any default or breach of the character specified in Section 501(4) with respect to the Securities and Coupons of such series, no such notice to

 

13

 

Holders shall be given until at least 90 days after the occurrence thereof.  For the purpose of this Section, the term “default” means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to the Securities of such series.”

 

SECTION 2.06.                                   Supplemental Indentures Without Consent of Holders.  For the purposes of the Notes of each series, Section 901 of the Original Indenture is hereby amended by adding the following as Section 901(11):

 

“to conform the terms of this Indenture or the Securities of a series or any Coupons to the description thereof contained in any prospectus, prospectus supplement or other offering document relating to the offer and sale of such Securities, as evidenced by an Officers’ Certificate.”

 

ARTICLE III

 

TRANSFER AND EXCHANGE

 

SECTION 3.01.                                   Transfer and Exchange.

 

(a)                                 The Global Notes shall be exchanged by the Operating Partnership for one or more Notes of the same series in definitive, fully registered certificated form, without coupons, substantially in the form of Exhibit B hereto (the “Certificated Notes”) if (i) DTC (1) has notified the Operating Partnership that it is unwilling or unable to continue as, or ceases to be, a clearing agency registered under Section 17A of the Exchange Act and (2) a successor to DTC registered as a clearing agency under Section 17A of the Exchange Act is not able to be appointed by the Operating Partnership within 90 calendar days or (ii) DTC is at any time unwilling or unable to continue as depositary and the Operating Partnership is not able to appoint a successor to DTC within 90 calendar days.  If an Event of Default occurs and is continuing, the Operating Partnership shall, at the request of the Trustee or the Holder thereof, exchange all or part of the applicable Global Note for one or more Certificated Notes of the same series, as applicable.  In addition, beneficial interests in a Global Note may be exchanged for Certificated Notes of the same series upon request but only upon at least 30 calendar days’ prior written notice given to the Trustee by or on behalf of DTC in accordance with customary procedures.  Whenever a Global Note is exchanged for one or more Certificated Notes of the same series, it shall be surrendered by the Holder thereof to the Trustee and cancelled by the Trustee.  All Certificated Notes issued in exchange for a Global Note, a beneficial interest therein or a portion thereof shall be registered in such names, and delivered, as DTC shall instruct the Trustee.

 

(b)                                 Any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of beneficial interests in such Global Note may be effected only through a book-entry system maintained by such Holder (or its agent), and that, subject to the immediately preceding paragraph, ownership of a beneficial interest in the Notes represented thereby shall be required to be reflected in book-entry form.  Transfers of a Global Note shall be limited to transfers in whole and not in part, to DTC, its successors and their respective nominees.  Interests of beneficial owners in a Global Note shall be transferred in accordance with the rules and procedures of DTC (or its successors).

 

ARTICLE IV

 

LEGENDS

 

SECTION 4.01.                                   Legends.  Each Global Note shall bear the following legends on the face thereof:

 

14

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER 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.

 

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.

 

ARTICLE V

 

TRUSTEE

 

SECTION 5.01.                                   Corporate Trust Office.  The Trustee is appointed as the principal paying agent, transfer agent and registrar for the Notes and for the purposes of Section 1002 of the Indenture.  The Notes may be presented for payment at the Corporate Trust Office of the Trustee or at any other agency as may be appointed from time to time by the Operating Partnership in The City of New York or the City of Chicago.

 

SECTION 5.02.                                   Recitals of Fact; Other Matters.

 

(a)                                 The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Thirty-Eighth Supplemental Indenture or the due execution thereof by the Issuer.  The recitals of fact contained herein shall be taken as the statements solely of the Issuer and the Trustee assumes no responsibility for the correctness thereof.

 

(b)                                 The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under the Indenture arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including without limitation, acts of God; earthquakes; fires; floods; wars; civil or military disturbances; sabotage; epidemics; riots; interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications service; accidents; labor disputes; acts of civil or military authority or governmental actions; it being understood that the Trustee shall use its best efforts to resume performance as soon as practicable under the circumstances.

 

(c)                                  In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

(d)                                 The Trustee may reasonably rely upon and comply with instructions or directions sent via unsecured facsimile or email transmission and the Trustee shall not be liable for any loss, liability or expense of any kind incurred by the Issuer or the Holders of the Notes due to the Trustee’s reasonable reliance upon and compliance with instructions or directions given by unsecured facsimile or email

 

15

 

transmission, provided, however, that such losses have not arisen from the negligence or willful misconduct of the Trustee.

 

(e)                                  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to the Indenture, the Notes or the transactions contemplated hereby or thereby.

 

SECTION 5.03.                                   Successor.  Any corporation or association into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation or association resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation or association to which all or substantially all of the corporate trust business of the Trustee may be sold or otherwise transferred, shall be the successor trustee hereunder without any further act.

 

ARTICLE VI

 

MISCELLANEOUS PROVISIONS

 

SECTION 6.01.                                   Ratification of Original Indenture.  This Thirty-Eighth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture, and as supplemented and modified hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture and this Thirty-Eighth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

SECTION 6.02.                                   Effect of Headings.  The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

 

SECTION 6.03.                                   Successors and Assigns.  All covenants and agreements in this Thirty-Eighth Supplemental Indenture by the Issuer shall bind its successors and assigns, whether so expressed or not.

 

SECTION 6.04.                                   Separability Clause.  In case any one or more of the provisions contained in this Thirty-Eighth Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

SECTION 6.05.                                   Governing Law.  This Thirty-Eighth Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York.  This Thirty-Eighth Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of this Thirty-Eighth Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

 

SECTION 6.06.                                   Counterparts.  This Thirty-Eighth Supplemental Indenture may be executed in any number of counterparts, and each of such counterparts shall for all purposes be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

 

* * * *

 

16

 

IN WITNESS WHEREOF, the parties hereto have caused this Thirty-Eighth Supplemental Indenture to be duly executed all as of the date first above written.

 

	
 
    	
 
    	
SIMON PROPERTY GROUP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Simon Property Group, Inc.,
    
	
 
    	
 
    	
 
    	
  its sole General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Brian J. McDade
    
	
 
    	
 
    	
 
    	
Name:
    	
Brian J. McDade
    
	
 
    	
 
    	
 
    	
Title:
    	
Executive Vice President — Chief
    
	
 
    	
 
    	
 
    	
 
    	
Financial Officer and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE   BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Robert W. Hardy
    
	
 
    	
 
    	
 
    	
Name:
    	
Robert W. Hardy
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

Exhibit A

 

FORM OF GLOBAL NOTE

 

[FACE OF GLOBAL NOTE]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER 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.

 

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.

 

	
REGISTERED
    	
 
    	
REGISTERED
    
	
NO. [  ]
    	
 
    	
PRINCIPAL AMOUNT
    
	
CUSIP NO. [828807 DG9 / 828807 DF1 / 828807 DH7]
    	
 
    	
$[  ]
    
	
ISIN NO. [US828807DG99 / US828807DF17 / US828807DH72]
    	
 
    	
 
    

 

SIMON PROPERTY GROUP, L.P.

 

[2.000/2.450/3.250]% Note due [2024/2029/2049]

 

Simon Property Group, L.P., a Delaware limited partnership (the “Issuer,” which term includes any successor under the Indenture (as defined below)), for value received, hereby promises to pay to Cede & Co. or its registered assigns, the principal amount of [PRINCIPAL AMOUNT IN WORDS] dollars on September 13, [2024]/[2029]/[2049] (the “Maturity Date”), unless earlier redeemed as described on the reverse hereof, and to pay interest on the outstanding principal amount hereof from and including September 13, 2019, semi-annually in arrears on March 13 and September 13 of each year (each, an “Interest Payment Date”), commencing on March 13, 2020, at the rate of [2.000/2.450/3.250]% per annum, until payment of said principal amount has been made or duly provided for.

 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date shall be paid to the Holder in whose name this Note (or one or more predecessor Notes) is registered in the Security Register applicable to this Note at the close of business on the “Record Date” for such payment, which shall be the 15th calendar day immediately prior to such Interest Payment Date, regardless of whether such day is a Business Day (as defined below).  Any interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date, and may be paid to the Holder in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a subsequent record date for the payment of such defaulted interest (which shall not be more than 15

 

A-1

 

calendar days and less than 10 calendar days prior to the date of the payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than 10 calendar days preceding such subsequent record date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.  Interest on this Note shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Interest payable on this Note on any Interest Payment Date or, if applicable, on the date of redemption shall be the amount of interest accrued from and including the immediately preceding Interest Payment Date (or from and including September 13, 2019, in the case of the initial period) to but excluding the applicable Interest Payment Date or date of redemption, as the case may be.  If any date for the payment of principal of, or premium, if any, interest on, or any other amount with respect to, this Note (each, a “Payment Date”) falls on a day that is not a Business Day, the principal, premium, if any, or interest payable with respect to such Payment Date shall be made on the next succeeding Business Day with the same force and effect as if made on such Payment Date, and no interest shall accrue on the amount so payable for the period from and after such Payment Date to such next succeeding Business Day.  “Business Day” means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking institutions in The City of New York are authorized or required by law, regulation or executive order to close.

 

The principal of this Note payable on the Maturity Date or the principal, premium, if any, and interest, if any, payable on any earlier date of redemption shall be paid against presentation and surrender of this Note at the office or agency of the Issuer maintained for that purpose in The Borough of Manhattan, The City of New York or The City of Chicago.  The Issuer hereby initially designates the Corporate Trust Office of the Trustee in The City of New York as the office to be maintained by it where Notes may be presented for payment, registration of transfer or exchange, and where notices to or demands upon the Issuer in respect of the Notes or the Indenture referred to on the reverse hereof may be served.

 

Payments of principal, premium, if any, and interest in respect of this Note shall be made by wire transfer of immediately available funds in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

Reference is made to the further provisions of this Note set forth on the reverse hereof after the Trustee’s Certificate of Authentication.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note shall not be entitled to the benefits of the Indenture or be valid or obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Trustee under such Indenture.

 

A-2

 

IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed manually or by facsimile by its authorized officers.

 

	
Dated:    September 13, 2019
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SIMON PROPERTY GROUP, L.P.,
    
	
 
    	
 
    	
as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
SIMON PROPERTY GROUP, INC.
    
	
 
    	
 
    	
 
    	
its sole General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    

 

A-3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
 
    	
 
    	
THE BANK OF NEW YORK MELLON 
    
	
 
    	
 
    	
TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Authorized Officer
    

 

A-4

 

[REVERSE OF NOTE]

 

SIMON PROPERTY GROUP, L.P.

 

[2.000/2.450/3.250]% Note due [2024/2029/2049]

 

This security is one of a duly authorized issue of debt securities of the Issuer (hereinafter called the “Securities”), issued or to be issued under and pursuant to an Indenture dated as of November 26, 1996 (herein called the “Indenture”), duly executed and delivered by the Issuer to The Bank of New York Mellon Trust Company, N.A. (as successor to The Chase Manhattan Bank), as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is a part), to which Indenture and all indentures supplemental thereto relating to this Note (including, without limitation, the Thirty-Eighth Supplemental Indenture, dated as of September 13, 2019, between the Issuer and the Trustee) reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Issuer and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered and for the definition of capitalized terms used hereby and not otherwise defined.  The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), and may otherwise vary as provided in the Indenture or any indenture supplemental thereto.  This Security is one of a series of debt securities under the Indenture designated as the Simon Property Group, L.P. [2.000/2.450/3.250]% Notes due [2024/2029/2049], initially limited in aggregate principal amount to [$1,000,000,000/$1,250,000,000/$1,250,000,000] (the “Notes”).

 

In case an Event of Default with respect to the Notes shall have occurred and be continuing, the principal amount of the Notes and the Make-Whole Amount may be declared, and in certain cases shall automatically be, accelerated and thereupon become due and payable, in the manner, with the effect, and subject to the conditions provided in the Indenture.

 

The Notes may be redeemed at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the Notes being redeemed plus accrued interest thereon to but excluding the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to such Notes.  If the Notes are redeemed on or after [June 13, 2024/June 13, 2029/March 13, 2049], the redemption price shall not include the Make-Whole Amount.  Notice of any optional redemption shall be given to Holders at their addresses, as shown in the Security Register for the Notes, not more than 45 nor less than 15 days prior to the date fixed for redemption.  The notice of redemption shall specify, among other items, the redemption price and the principal amount of the Notes to be redeemed.

 

The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a majority of the aggregate principal amount of the Securities at the time Outstanding of all series to be affected (voting as one class), evidenced as provided in the Indenture, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Securities of each series; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security so affected, (i) change the Stated Maturity of the principal of, or premium, (if any) or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate or amount of interest thereon or any premium payable upon the redemption or acceleration thereof, or adversely affect any right of repayment at the option of the Holder of any Security, or change any Place of Payment where, or the currency or currencies, currency unit or units or composite currency or currencies in which, the principal of any Security or any premium or interest

 

A-5

 

thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof, or (ii) reduce the aforesaid percentage of Securities the Holders of which are required to consent to any such supplemental indenture, or (iii) reduce the percentage of Securities the Holders of which are required to consent to any waiver of compliance with certain provisions of the Indenture or any waiver of certain defaults and consequences thereunder or to reduce the quorum or voting requirements set forth in the Indenture, or (iv) effect certain other changes to the Indenture or any supplemental indenture or in the rights of Holders of the Securities.  The Indenture also permits the Holders of a majority in principal amount of the Outstanding Securities of any series (or, in the case of certain defaults or Events of Default, all series of Securities), on behalf of the Holders of all the Securities of such series (or all of the Securities, as the case may be), to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults or Events of Default under the Indenture and their consequences, prior to any declaration accelerating the maturity of such Securities, or subject to certain conditions, rescind a declaration of acceleration and its consequences with respect to such Securities.  Any such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note that may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Note or such other Note.

 

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

 

Notwithstanding any other provision of the Indenture to the contrary, no recourse shall be had, whether by levy or execution or otherwise, for the payment of any sums due under the Securities, including, without limitation, the principal, premium, if any, or interest payable under the Securities, or for the payment or performance of any obligation under, or for any claim based on, the Indenture or otherwise in respect thereof, against any partner of the Issuer, whether limited or general, including Simon Property Group, Inc. or such partner’s assets or against any principal, shareholder, officer, director, trustee or employee of such partner.  It is expressly understood that the sole remedies under the Securities and the Indenture, or under any other document with respect to the Securities, against such parties with respect to such amounts, obligations or claims shall be against the Issuer.

 

This Note is issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  This Note may be exchanged for a like aggregate principal amount of Notes of the same series of other authorized denominations at the office or agency of the Issuer in The Borough of Manhattan, The City of New York or The City of Chicago, in the manner and subject to the limitations provided in the Indenture, but without the payment of any service charge, except for any tax or other governmental charge imposed in connection therewith.

 

Upon due presentment for registration of transfer of this Note at the office or agency of the Issuer in The Borough of Manhattan, The City of New York or The City of Chicago, one or more new Notes of the same series of authorized denominations in an equal aggregate principal amount shall be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture, without charge, except for any tax or other governmental charge imposed in connection therewith.

 

The Issuer, the Trustee and any authorized agent of the Issuer or the Trustee may deem and treat the Person in whose name this Note is registered as the absolute owner and Holder of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal hereof and any premium hereon and, subject to the provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer

 

A-6

 

nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to the contrary.

 

This Note, including the validity hereof, and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such state, except as may otherwise be required by mandatory provisions of law.

 

Capitalized terms used herein which are not otherwise defined shall have the respective meanings assigned to them in the Indenture and the Thirty-Eighth Supplemental Indenture referred to herein.

 

A-7

 

ABBREVIATIONS

 

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

 

TEN COM — as tenants in common

UNIF GIFT MIN ACT —             Custodian       (Cust)

(minor) under Uniform Gifts to Minors Act                                (State)

TEN ENT — as tenants by the entireties

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

 

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

 

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

(Please print or typewrite name and address, including postal zip code of assignee.)

 

this Note and all rights thereunder and does hereby irrevocably constitute and appoint                          Attorney to transfer this Note on the books of the Trustee, with full power of substitution in the premises.

 

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notice: The   signature(s) on this Assignment must correspond with the name(s) as   written upon the face of this Note in every particular, without alteration or   enlargement or any change whatsoever
    

 

A-8

 

Exhibit B

 

FORM OF CERTIFICATED NOTE

 

[FACE OF CERTIFICATED NOTE]

 

	
REGISTERED
    	
 
    	
REGISTERED
    
	
NO. [ ]
    	
 
    	
PRINCIPAL AMOUNT
    
	
 
    	
 
    	
$[]
    

 

SIMON PROPERTY GROUP, L.P.

 

[2.000/2.450/3.250]% Note due [2024/2029/2049]

 

Simon Property Group, L.P., a Delaware limited partnership (the “Issuer,” which term includes any successor under the Indenture (as defined below)), for value received, hereby promises to pay to Cede & Co. or its registered assigns, the principal amount of [PRINCIPAL AMOUNT IN WORDS] dollars on September 13, [2024]/[2029]/[2049] (the “Maturity Date”), unless earlier redeemed as described on the reverse hereof, and to pay interest on the outstanding principal amount hereof from and including September 13, 2019, semi-annually in arrears on March 13 and September 13 of each year (each, an “Interest Payment Date”), commencing on March 13, 2020, at the rate of [2.000/2.450/3.250]% per annum, until payment of said principal amount has been made or duly provided for.

 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date shall be paid to the Holder in whose name this Note (or one or more predecessor Notes) is registered in the Security Register applicable to this Note at the close of business on the “Record Date” for such payment, which shall be the 15th calendar day immediately prior to such Interest Payment Date, regardless of whether such day is a Business Day (as defined below).  Any interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date, and may be paid to the Holder in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a subsequent record date for the payment of such defaulted interest (which shall not be more than 15 calendar days and less than 10 calendar days prior to the date of the payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than 10 calendar days preceding such subsequent record date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.  Interest on this Note shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Interest payable on this Note on any Interest Payment Date or, if applicable, on the date of redemption shall be the amount of interest accrued from and including the immediately preceding Interest Payment Date (or from and including September 13, 2019, in the case of the initial period) to but excluding the applicable Interest Payment Date or date of redemption, as the case may be.  If any date for the payment of principal of, or premium, if any, interest on, or any other amount with respect to, this Note (each, a “Payment Date”) falls on a day that is not a Business Day, the principal, premium, if any, or interest payable with respect to such Payment Date shall be made on the next succeeding Business Day with the same force and effect as if made on such Payment Date, and no interest shall accrue on the amount so payable for the period from and after such Payment Date to such next succeeding Business Day.  “Business Day” means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking

 

B-1

 

institutions in The City of New York are authorized or required by law, regulation or executive order to close.

 

The principal of this Note payable on the Maturity Date or the principal, premium, if any, and interest, if any, payable on any earlier date of redemption shall be paid against presentation and surrender of this Note at the office or agency of the Issuer maintained for that purpose in The Borough of Manhattan, The City of New York or The City of Chicago.  The Issuer hereby initially designates the Corporate Trust Office of the Trustee in The City of New York as the office to be maintained by it where Notes may be presented for payment, registration of transfer or exchange, and where notices to or demands upon the Issuer in respect of the Notes or the Indenture referred to on the reverse hereof may be served.

 

Payments of principal, premium, if any, and interest in respect of this Note shall be made by wire transfer of immediately available funds in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

Reference is made to the further provisions of this Note set forth on the reverse hereof after the Trustee’s Certificate of Authentication.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note shall not be entitled to the benefits of the Indenture or be valid or obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Trustee under such Indenture.

 

B-2

 

IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed manually or by facsimile by its authorized officers.

 

	
Dated:   September 13, 2019
    	
 
    
	
 
    	
 
    
	
 
    	
SIMON PROPERTY GROUP, L.P.,
    
	
 
    	
as Issuer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
SIMON PROPERTY   GROUP, INC.
    
	
 
    	
 
    	
its sole General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

B-3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
 
    	
THE BANK OF NEW YORK MELLON
    
	
 
    	
TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    

 

B-4

 

[REVERSE OF NOTE]

 

SIMON PROPERTY GROUP, L.P.

 

[2.000/2.450/3.250]% Note due [2024/2029/2049]

 

This security is one of a duly authorized issue of debt securities of the Issuer (hereinafter called the “Securities”), issued or to be issued under and pursuant to an Indenture dated as of November 26, 1996 (herein called the “Indenture”), duly executed and delivered by the Issuer to The Bank of New York Mellon Trust Company, N.A. (as successor to The Chase Manhattan Bank), as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is a part), to which Indenture and all indentures supplemental thereto relating to this Note (including, without limitation, the Thirty-Eighth Supplemental Indenture, dated as of September 13, 2019, between the Issuer and the Trustee) reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Issuer and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered and for the definition of capitalized terms used hereby and not otherwise defined.  The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), and may otherwise vary as provided in the Indenture or any indenture supplemental thereto.  This Security is one of a series of debt securities under the Indenture designated as the Simon Property Group, L.P. [2.000/2.450/3.250]% Notes due [2024/2029/2049], initially limited in aggregate principal amount to [$1,000,000,000/$1,250,000,000/$1,250,000,000] (the “Notes”).

 

In case an Event of Default with respect to the Notes shall have occurred and be continuing, the principal amount of the Notes and the Make-Whole Amount may be declared, and in certain cases shall automatically be, accelerated and thereupon become due and payable, in the manner, with the effect, and subject to the conditions provided in the Indenture.

 

The Notes may be redeemed at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the Notes being redeemed plus accrued interest thereon to but excluding the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to such Notes.  If the Notes are redeemed on or after [June 13, 2024/June 13, 2029/March 13, 2049], the redemption price shall not include the Make-Whole Amount.  Notice of any optional redemption shall be given to Holders at their addresses, as shown in the Security Register for the Notes, not more than 45 nor less than 15 days prior to the date fixed for redemption.  The notice of redemption shall specify, among other items, the redemption price and the principal amount of the Notes to be redeemed.

 

The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a majority of the aggregate principal amount of the Securities at the time Outstanding of all series to be affected (voting as one class), evidenced as provided in the Indenture, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Securities of each series; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security so affected, (i) change the Stated Maturity of the principal of, or premium, (if any) or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate or amount of interest thereon or any premium payable upon the redemption or acceleration thereof, or adversely affect any right of repayment at the option of the Holder of any Security, or change any Place of Payment where, or the currency or currencies, currency unit or units or composite currency or currencies in which, the principal of any Security or any premium or interest

 

B-5

 

thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof, or (ii) reduce the aforesaid percentage of Securities the Holders of which are required to consent to any such supplemental indenture, or (iii) reduce the percentage of Securities the Holders of which are required to consent to any waiver of compliance with certain provisions of the Indenture or any waiver of certain defaults and consequences thereunder or to reduce the quorum or voting requirements set forth in the Indenture, or (iv) effect certain other changes to the Indenture or any supplemental indenture or in the rights of Holders of the Securities.  The Indenture also permits the Holders of a majority in principal amount of the Outstanding Securities of any series (or, in the case of certain defaults or Events of Default, all series of Securities), on behalf of the Holders of all the Securities of such series (or all of the Securities, as the case may be), to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults or Events of Default under the Indenture and their consequences, prior to any declaration accelerating the maturity of such Securities, or subject to certain conditions, rescind a declaration of acceleration and its consequences with respect to such Securities.  Any such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note that may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Note or such other Note.

 

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

 

Notwithstanding any other provision of the Indenture to the contrary, no recourse shall be had, whether by levy or execution or otherwise, for the payment of any sums due under the Securities, including, without limitation, the principal, premium, if any, or interest payable under the Securities, or for the payment or performance of any obligation under, or for any claim based on, the Indenture or otherwise in respect thereof, against any partner of the Issuer, whether limited or general, including Simon Property Group, Inc. or such partner’s assets or against any principal, shareholder, officer, director, trustee or employee of such partner.  It is expressly understood that the sole remedies under the Securities and the Indenture, or under any other document with respect to the Securities, against such parties with respect to such amounts, obligations or claims shall be against the Issuer.

 

This Note is issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  This Note may be exchanged for a like aggregate principal amount of Notes of the same series of other authorized denominations at the office or agency of the Issuer in The Borough of Manhattan, The City of New York or The City of Chicago, in the manner and subject to the limitations provided in the Indenture, but without the payment of any service charge, except for any tax or other governmental charge imposed in connection therewith.

 

Upon due presentment for registration of transfer of this Note at the office or agency of the Issuer in The Borough of Manhattan, The City of New York or The City of Chicago, one or more new Notes of the same series of authorized denominations in an equal aggregate principal amount shall be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture, without charge, except for any tax or other governmental charge imposed in connection therewith.

 

The Issuer, the Trustee and any authorized agent of the Issuer or the Trustee may deem and treat the Person in whose name this Note is registered as the absolute owner and Holder of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal hereof and any premium hereon and, subject to the provisions on the face hereof, interest hereon, and for all other purposes, and neither the Issuer

 

B-6

 

nor the Trustee nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to the contrary.

 

This Note, including the validity hereof, and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such state, except as may otherwise be required by mandatory provisions of law.

 

Capitalized terms used herein which are not otherwise defined shall have the respective meanings assigned to them in the Indenture and the Thirty-Eighth Supplemental Indenture referred to herein.

 

B-7

 

ABBREVIATIONS

 

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

 

TEN COM — as tenants in common

UNIF GIFT MIN ACT —             Custodian       (Cust)

(minor) under Uniform Gifts to Minors Act                                (State)

TEN ENT — as tenants by the entireties

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

 

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

 

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

(Please print or typewrite name and address, including postal zip code of assignee.)

 

this Note and all rights thereunder and does hereby irrevocably constitute and appoint                         Attorney to transfer this Note on the books of the Trustee, with full power of substitution in the premises.

 

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notice: The   signature(s) on this Assignment must correspond with the name(s) as   written upon the face of this Note in every particular, without alteration or   enlargement or any change whatsoever
    

 

B-8EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT, dated as of September 9, 2019, by and between VALUESETTERS, INC., a Utah corporation (the “Company”),
and CECILIA LENK, an individual (the “Employee”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company desires to employ the Employee as Chief Executive Officer of the Company and wishes to acquire and be assured of Employee’s
services on the terms and conditions hereinafter set forth; and

 

WHEREAS,
the Employee desires to be employed by the Company and to perform and to serve the Company on the terms and conditions hereinafter
set forth;

 

NOW, THEREFORE,
in consideration of the mutual terms, covenants, agreements and conditions hereinafter set forth, the Company and the Employee
hereby agree as follows:

 

1.       Employment.
(a) The Company hereby employs the Employee to serve as a full-time employee of the Company, and the Employee hereby accepts such
employment with the Company, for the period set forth in Section 2 hereof. The Employee’s principal place of employment
shall be at the offices at 745 Atlantic Avenue, Boston MA, 02111, or such other location as determined by the Company, provided
however, that the Employee’s principal place of employment shall not be relocated more than 25 miles from its current
location without the prior written consent of the Employee.

 

(b)       The
Employee affirms and represents that (i) the Employee is under no obligation to any former employer or other party that is in
any way inconsistent with, or that imposes any restriction upon, the Employee’s acceptance of employment hereunder with
the Company, the employment of the Employee by the Company, or the Employee’s undertakings under this Agreement and (ii)
her performance of all the terms of this Agreement and her employment by the Company does not and will not breach any agreement
to keep in confidence proprietary information acquired by her in confidence or in trust prior to her employment by the Company.

 

2.       Term.
Unless earlier terminated as provided in this Agreement, the term of the Employee’s employment under this Agreement shall
be for a period beginning on the date hereof and ending on July 31, 2021 or, if the Employee’s employment hereunder is earlier
terminated, such shorter period, being hereinafter called the “Employment Term”).

 

 

 

3.       Duties.

 

(a)The
Employee shall be employed as Chief Executive Officer. The Employee shall faithfully and competently perform such duties at such
times and places and in such manner as the Company may from time to time reasonably direct or such other duties appropriate to
a senior executive managerial position as the Board of Directors of the Company shall from time to time determine.

 

(b)Except
as may otherwise be approved in writing by the Board of Directors of the Company, and except during vacation periods and reasonable
periods of absence due to sickness, personal injury or other disability, the Employee shall devote a minimum of 35 hours per week
of time throughout the Employment Term to the services required of Employee hereunder. The Employee shall use her best efforts,
judgment and energy to improve and advance the business and interests of the Company and its Affiliates in a manner consistent
with the duties of Employee’s position.

    	 

    	 

    

 

4.       Salary
and Bonus.

 

(a)       Base
Salary. In consideration for the services of the Employee rendered hereunder, the Company shall pay the Employee a base salary
(the “Base Salary”) at an annual rate of $1.00 during the Employment Term, plus twenty-five million shares
of common stock, par value $0.001 of the Company to be issued immediately as a prepaid compensation (the “Prepaid Compensation”)..

 

(b) Bonus.
Employee shall be eligible for periodic bonuses throughout the year, or for additional salary in excess of the Base Salary.

 

(c)       Withholding,
Etc. The payment of any salary or bonus hereunder shall be subject to income tax, social security and other applicable withholdings,
as well as such deductions as may be required under the Company’s employee benefit plans.

 

5.Benefits. (a)During
the Employment Term, the Employee shall be:

 

(i)eligible to participate in all employee fringe benefits and any pension and/or profit sharing plans that may be provided
by the Company for its key executive employees in accordance with the provisions of any such plans, as the same may be in effect
on and after the date hereof;

 

(ii)       eligible
to participate in any medical and health plans or other employee welfare benefit plans that may be provided by the Company for
its key executive employees in accordance with the provisions of any such plans, as the same may be in effect on and after the
date hereof;

(iii) entitled to up to eight (8) weeks of paid time off (“PTO”) each year, which shall be taken at such time
or times as will not unreasonably hinder or interfere with the Company’s business or operations; provided, however, that
unused PTO in any 12-month period shall be forfeited and the Employee hereby waives any rights under applicable law or otherwise
to be compensated in respect thereof;

 

(iv)entitled to sick leave, sick pay and disability benefits in accordance with any Company policy that may be applicable
on and after the date hereof to key executive employees; and

 

(v)entitled to reimbursement for all reasonable and necessary out-of-pocket business expenses incurred by the Employee in
the performance of the Employee’s duties hereunder in accordance with the Company’s policies applicable (on and after
the date hereof) thereto.

 

(b)       Employee
shall cooperate with the Company in the event the Company wishes to obtain key-woman insurance on the Employee. Such cooperation
shall include, but not be limited to taking any physical examinations that may be requested by the insurance company.

 

6.       Inventions
and Confidential Information. The Employee hereby covenants, agrees and acknowledges as follows:

 

(a)       The
Company is engaged in a continuous program of research, design, development, production, marketing and servicing with respect
to its businesses.

 

(b)       The
Employee’s employment hereunder creates a relationship of confidence and trust between the Employee and the Company with
respect to certain information pertaining to the business of the Company and its Affiliates (as hereinafter defined) or pertaining
to the business of any client or customer of the Company or its Affiliates which may be made known to the Employee by the Company
or any of its Affiliates or by any client or customer of the Company or any of its Affiliates or learned by the Employee during
the period of Employee’s employment by the Company.

 

(c)       The
Company possesses and will continue to possess information that has been created, discovered or developed by, or otherwise become
known to it (including, without limitation, information created, discovered or developed by, or made known to, the Employee during
the period of Employee’s employment or arising out of Employee’s employment) or in which property rights have been
or may be assigned or otherwise conveyed to the Company, which information has commercial value in the business in which the Company
is engaged and is treated by the Company as confidential.

    	 

    	 

    

 

(d)       Any
and all inventions, products, discoveries, improvements, processes, manufacturing, marketing and services methods or techniques,
formulae, designs, styles, specifications, data bases, computer programs (whether in source code or object code), know-how, strategies
and data, whether or not patentable or registrable under copyright or similar statutes, made, developed or created by the Employee
(whether at the request or suggestion of the Company, any of its Affiliates, or otherwise, whether alone or in conjunction with
others, and whether during regular hours of work or otherwise) during the period of Employee’s employment by the Company
which may pertain to the business, products, or processes of the Company or any of its Affiliates (collectively hereinafter referred
to as “Inventions”), will be promptly and fully disclosed by the Employee to an appropriate executive officer
of the Company (other than the Employee) without any additional compensation therefor, all papers, drawings, models, data, documents
and other material pertaining to or in any way relating to any Inventions made, developed or created by Employee as aforesaid.
For the purposes of this Agreement, the term “Affiliate” or “Affiliates” shall mean any
person, corporation or other entity directly or indirectly controlling or controlled by or under direct or indirect common control
with the Company. For the purposes of this definition, “control” when used with respect to any person, corporation
or other entity means the power to direct the management and policies of such person or entity, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

(e)       The
Employee will keep confidential and will hold for the Company’s sole benefit any Invention which is to be the exclusive
property of the Company under this Section 6 for which no patent, copyright, trademark or other right or protection is issued.

 

(f)       The
Employee also agrees that the Employee will not without the prior written consent of the Board of Directors of the Company (i)
use for Employee’s benefit or disclose at any time during Employee’s employment by the Company, or thereafter, except
to the extent required by the performance by the Employee of the Employee’s duties as an employee of the Company, any information
obtained or developed by Employee while in the employ of the Company with respect to any Inventions or with respect to any customers,
clients, suppliers, products, employees, financial affairs, or methods of design, distribution, marketing, service, procurement
or manufacture of the Company or any of its Affiliates, or any confidential matter, except information which at the time is generally
known to the public other than as a result of disclosure by the Employee not permitted hereunder, or (ii) take with the Employee
upon leaving the employ of the Company any document or paper relating to any of the foregoing or any physical property of the
Company or any of its Affiliates.

 

(g)       The
Employee acknowledges and agrees that a remedy at law for any breach or threatened breach of the provisions of this Section 6
would be inadequate and, therefore, agrees that the Company and its Affiliates shall be entitled to injunctive relief in addition
to any other available rights and remedies in case of any such breach or threatened breach; provided, however, that
nothing contained herein shall be construed as prohibiting the Company or any of its Affiliates from pursuing any other rights
and remedies available for any such breach or threatened breach.

 

(h)       The
Employee agrees that upon termination of Employee’s employment by the Company for any reason, the Employee shall immediately
return to the Company all documents, records and other property in Employee’s possession belonging to the Company or any
of its Affiliates.

 

(i)       Without
limiting the generality of Section 9 hereof, the Employee hereby expressly agrees that the foregoing provisions of this Section
6 shall be binding upon the Employee’s heirs, successors and legal representatives.

 

7.       Termination.
(a) The Employee’s employment hereunder shall be terminated upon the occurrence of any of the following:

 

(i)       death
of the Employee;

 

(ii)       termination
of the Employee’s employment hereunder by the Employee at any time for any reason whatsoever (including, without limitation,
resignation or retirement) other than for “good reason” as contemplated by clause (v)(B) below;

 

(iii)        termination
of the Employee’s employment hereunder by the Company because of the Employee’s inability to perform Employee’s
duties on account of disability or incapacity for a period of ninety (90) or more days, whether or not consecutive, occurring
within any period of twelve (12) consecutive months;

 

(iv)       termination
of the Employee’s employment hereunder by the Company at any time for “cause” (as hereinafter defined), such
termination to take effect immediately upon written notice from the Company to the Employee; and

 

(v)       termination
of the Employee’s employment hereunder (A) by the Company at any time, other than termination by reason of disability or
incapacity as contemplated by clause (iii) above or termination by the Company for “cause” as contemplated by clause
(iv) above and (B) by the Employee for “good reason” (as hereinafter defined).

    	 

    	 

    

 

The following
actions, failures or events shall constitute “cause” for termination within the meaning of clause (iv) above: (i)
the Employee’s conviction of, admission of guilt to or plea of nolo contendere or similar plea (which, through lapse
of time or otherwise, is not subject to appeal) with respect to any crime or offense that constitutes a felony in the jurisdiction
involved; (2) acts of dishonesty or moral turpitude which are materially detrimental to the Company and/or its Affiliates; (3)
failure by the Employee to obey the reasonable and lawful orders of the Board of Directors of the Company following written notice
of such failure from the Board of Directors of the Company; (4) any act by the Employee in violation of Section 8 hereof, any
statement or disclosure by the Employee in violation of Section 6 hereof, or any material breach by the Employee of a representation
or warranty contained in Section 1(b) hereof; (5) following written notice from the Board of Directors of the Company of prior
similar actions by Employee, excessive absenteeism (other than by reason of disability); (6) following written notice from the
Board or Directors of the Company of prior similar actions by Employee, excessive alcoholism or addiction to drugs not prescribed
by a qualified physician or (7) gross negligence by the Employee in the performance of, or willful disregard by the Employee of,
the Employee’s obligations hereunder.

 

The following
actions, failures or events shall constitute “good reason” within the meaning of clause (V)(B) above: a material breach
by the Company of its obligations under this Agreement or a change in majority control of the Company.

 

(a)       In
the event that the Employee’s employment is terminated by the Company prior to July 31, 2021 for any reason other than “cause”
or by Employee for “good reason,” then the Company shall have no claims to the 25 million shares of common stock issued
to the Employee and the Company agrees to not hinder and to cooperate with the Employee in depositing those shares in a brokerage
account, or selling those shares to a third party.

 

(b)       Notwithstanding
anything to the contrary expressed or implied herein, except as required by applicable law and except as set forth in paragraph
(a) above, the Company (and its Affiliates) shall not be obligated to make any payments to the Employee or on Employee’s
behalf of whatever kind or nature by reason of the Employee’s cessation of employment (including, without limitation, by
reason of termination of the Employee’s employment by the Company for “cause”), other than (i) such amounts,
if any, of Employee's salary and bonus as shall have accrued and remained unpaid as of the date of said cessation and (ii) such
other amounts which may be then otherwise payable to the Employee from the Company’s benefits plans or reimbursement policies,
if any.

 

(c)       No
interest shall accrue on or be paid with respect to any portion of any payments hereunder.

 

8.       Non-Competition.
(a) The term “Non-Compete Term” shall mean the period during which Employee is employed hereunder and (x) in
the event Employee’s employment is terminated by the Company for any reason other than “cause” or by Employee
for “good reason,” the three-month period following such termination, (y) in the event Employee’s employment
is terminated by the Company for “cause” or by Employee for any reason other than “good reason,” the six-month
period following such termination.

During the
Non-Compete Term:

 

(i)the
Employee will not make any statement or perform any act intended to advance an interest of any existing or prospective competitor
of the Company or any of its Affiliates in any way that will or may injure an interest of the Company or any of its Affiliates
in its relationship and dealings with existing or potential customers or clients, or solicit or encourage any other employee of
the Company or any of its Affiliates to do any act that is disloyal to the Company or any of its Affiliates or inconsistent with
the interest of the Company or any of its Affiliate’s interests or in violation of any provision of this Agreement;

 

(ii)the
Employee will not discuss with any existing or potential customers or clients of the Company or any of its Affiliates the present
or future availability of services or products of a business, if the Employee has or expects to acquire a proprietary interest
in such business or is or expects to be an employee, officer or director of such business, where such services or products are
competitive with services or products which the Company or any of its Affiliates provides;

 

(iii)the
Employee will not make any statement or do any act intended to cause any existing or potential customers or clients of the Company
or any of its Affiliates to make use of the services or purchase the products of any competitive business in which the Employee
has or expects to acquire a proprietary interest or in which the Employee is or expects to be made an employee, officer or director,
if such services or products in any way compete with the services or products sold or provided or expected to be sold or provided
by the Company or any of its Affiliates to any existing or potential customer or client; and

    	 

    	 

    

 

(iv)the
Employee will not directly or indirectly (as a director, officer, employee, manager, consultant, independent contractor, advisor
or otherwise) engage in competition with, or own any interest in, perform any services for, participate in or be connected with
(i) any business or organization which engages in competition with the Company or any of its Affiliates in any geographical area
where any business is presently carried on by the Company or any of its Affiliates, or (ii) any business or organization which
engages in competition with the Company or any of its Affiliates in any geographical area where any business shall be hereafter,
during the period of the Employee’s employment by the Company, carried on by the Company or any of its Affiliates, if such
business is then being carried on by the Company or any of its Affiliates in such geographical area; provided, however,
that the provisions of this Section 8(a) shall not be deemed to prohibit the Employee’s ownership of not more than one percent
(1%) of the total shares of all classes of stock outstanding of any publicly held company.

 

(b)       During
the Non-Compete Term, the Employee will not directly or indirectly hire, engage, send any work to, place orders with, or in any
manner be associated with any supplier, contractor, subcontractor or other person or firm which rendered manufacturing or other
services, or sold any products, to the Company or any of its Affiliates if such action by Employee would have a material adverse
effect on the business, assets or financial condition of the Company or any of its Affiliates.

 

(c)       In
connection with the foregoing provisions of this Section 8, the Employee represents that Employee’s experience, capabilities
and circumstances are such that such provisions will not prevent Employee from earning a livelihood. The Employee further agrees
that the limitations set forth in this Section 8 (including, without limitation, any time or territorial limitations) are reasonable
and properly required for the adequate protection of the businesses of the Company and its Affiliates. It is understood and agreed
that the covenants made by the Employee in this Section 8 (and in Section 6 hereof) shall survive the expiration or termination
of this Agreement.

 

(d)       For
purposes of this Section 8, proprietary interest in a business is ownership, whether through direct or indirect stock holdings
or otherwise, of one percent (1%) or more of such business. The Employee shall be deemed to expect to acquire a proprietary interest
in a business or to be made an officer or director of such business if such possibility has been discussed with any officer, director,
employee, agent, or promoter of such business.

 

(e)       The
Employee acknowledges and agrees that a remedy at law for any breach or threatened breach of the provisions of this Section 8
would be inadequate and, therefore, agrees that the Company and any of its Affiliates shall be entitled to injunctive relief in
addition to any other available rights and remedies in cases of any such breach or threatened breach; provided, however,
that nothing contained herein shall be construed as prohibiting the Company or any of its Affiliates from pursuing any other rights
and remedies available for any such breach or threatened breach.

 

9.       Non-Assignability.
(a) Neither this Agreement nor any right or interest hereunder shall be assignable by the Employee, Employee’s beneficiaries,
or legal representatives without the Company’s prior written consent; provided, however, that nothing in this
Section 9(a) shall preclude the Employee from designating a beneficiary to receive any benefit payable hereunder upon Employee’s
death or incapacity.

 

(b)       Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation or to exclusion, attachment, levy or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect.

 

10.       Binding
Effect. Without limiting or diminishing the effect of Section 9 hereof, this Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, successors, legal representatives and assigns.

 

11.        Notice.
Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and either delivered in person
or sent by first class certified or registered mail, postage prepaid, if to the Company, at the Company’s principal place
of business, and if to the Employee, at Employee’s home address, or, in the case of either party, to such other address
or addresses as such party shall have designated in writing to the other party hereto.

    	 

    	 

    

 

12.       Severability.
The Employee agrees that in the event that any court of competent jurisdiction shall finally hold that any provision of Section
6 or 8 hereof is void or constitutes an unreasonable restriction against the Employee, such provision shall not be rendered void
but shall apply with respect to such extent as such court may judicially determine constitutes a reasonable restriction under
the circumstances. If any part of this Agreement other than Section 6 or 8 is held by a court of competent jurisdiction to be
invalid, illegible or incapable of being enforced in whole or in part by reason of any rule of law or public policy, such part
shall be deemed to be severed from the remainder of this Agreement for the purpose only of the particular legal proceedings in
question and all other covenants and provisions of this Agreement shall in every other respect continue in full force and effect
and no covenant or provision shall be deemed dependent upon any other covenant or provision.

 

13.       Waiver.
Failure to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of
such term, covenant or condition, nor shall any waiver or relinquishment of any right or power hereunder at any one or more times
be deemed a waiver or relinquishment of such right or power at any other time or times.

 

14.       Entire
Agreement; Modifications. This Agreement constitutes the entire and final expression of the agreement of the parties with
respect to the subject matter hereof and supersedes all prior agreements, oral and written, between the parties hereto with respect
to the subject matter hereof. This Agreement may be modified or amended only by an instrument in writing signed by both parties
hereto.

 

15.       Relevant
Law. This Agreement shall be construed and enforced in accordance with the internal laws of the State of Massachusetts without
regard to the conflicts of law principles thereof.

16.Counterparts.This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

17.       Survival.
The termination of Employee’s employment hereunder shall not affect the enforceability of Sections 6 or 8.

 

18.       Further
Assurances. The parties agree to execute and deliver all such further instruments and take such other and further action as
may be reasonably necessary or appropriate to carry out the provisions of this Agreement.

 

19.       Headings.
The Section headings appearing in this Agreement are for purposes of easy reference and shall not be considered a part of this
Agreement or in any way modify, amend or affect its provisions.

 

IN WITNESS
WHEREOF, the Company and the Employee have duly executed and delivered this Agreement as of the day and year first above written.

 

VALUESETTERS,
INC.

 

 

 

By:
/s/ Coreen Kraysler   

Name:
Coreen Kraysler

Title:
CFO

 

 

 

 

/s/
Cecilia Lenk  

Name:
CECILIA LENK

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