Document:

SETTLEMENT
AGREEMENT AND RELEASE

 

This
Settlement Agreement (the “Agreement”) is made as of the Effective Date (defined below) by and between (i)
Lester Einhaus (“Einhaus”); and (ii) Textmunication Holdings, Inc. (“Textmunication”), Wais
Asefi, and David Thielen (collectively the “Textmunication Parties”). Said parties are referred to collectively
as the “Parties” and individually as a “Party.”

 

RECITALS

 

WHEREAS,
Einhaus has asserted claims against Textmunication as set forth in the Complaint filed on April 27, 2017, in the Circuit Court
of Cook County, Illinois, Case No. 2017 L 506, removed to the United States District Court for the Northern District of Illinois,
Case No. 17 C 4478 (the “Einhaus Lawsuit”), and in subsequent pleadings; and

 

WHEREAS,
Textmunication has asserted claims against Einhaus as set forth in the Answer, Affirmative Defenses and Counterclaim filed in
the Einhaus Lawsuit on April 5, 2018; and

 

WHEREAS,
David Thielen and Wais Asefi have asserted claims against Einhaus as set forth in the Complaint filed on April 4, 2018 in the
United States District Court for the Northern District of Illinois, Case No. 18 C 2421 (the “Thielen/Asefi Lawsuit,”
collectively with the Einhaus Lawsuit, the “Litigation”); and

 

WHEREAS,
the claims asserted by the Parties relate to, among other issues, that certain promissory note between Textmunication and Einhaus
dated September 23, 2015 that is attached to the Complaint in the Einhaus Lawsuit (the “Promissory Note”);

 

WHEREAS,
the Textmunication Parties deny that they are in any way liable to the Einhaus, and Einhaus denies that he is in any way liable
to the Textmunication Parties; and

 

WHEREAS,
the Parties wish to avoid the time and cost of further litigation; and

 

WHEREAS,
the Parties have reached a settlement as to the Litigation and the Promissory Note and wish to memorialize that settlement by
entering into this this Agreement and otherwise settle and resolve all claims and potential claims among them;

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties agree as follows:

 

1.
Recitals

 

The
Recitals are incorporated into and made a part of this agreement.

 

    	 	1	 

     

    

 

2.
Issuance of Textmunication Stock to Einhaus. Textmunication shall issue to Einhaus a total of up to 475,000 shares of Textmunication
stock, subject to the following terms:

 

a.
Maximum Shares Held By Einhaus. At no time shall Einhaus own more than 4.99% of Textmunication’s outstanding shares.

 

b.
Tranche 1. Within 10 days after the Effective Date, Textmunication shall issue to Einhaus 4.99% of Textmunication common
shares, currently equal to 198,000 shares (“Tranche 1”).

 

c.
Tranche 2. Within 10 days after the Effective Date, Textmunication shall issue into a reserve with its stock transfer agent
a number of shares equal to 475,000 minus Tranche 1, currently equal to 277,000 Textmunication common shares, which shall be restricted
as provided below (“Tranche 2”). Einhaus may request issuance to him of such restricted common shares from
Tranche 2 at any time after selling shares from Tranche 1, but the issuance shall be capped such that Einhaus’ holdings
of Textmunication shares shall not exceed 4.99%. The transfer agent shall be instructed to refuse a request for the issuance of
such restricted common shares to Einhaus if such issuance would make Einhaus’ holdings of Textmunication shares exceed 4.99%
of Textmunication’s outstanding shares. Each share placed in reserve and issued pursuant to this Section 2(c) shall bear
the restriction that the share cannot be traded until six (6) months after its issuance to Einhaus, provided that Rule 144 is
available.

 

d.
Leak Out. Einhaus shall not, on any single trading day, sell more Textmunication shares than the greater of: (i) 10,000
shares, or (ii) 15% of the trading volume of Textmunication shares that day. This limitation applies to both Tranche 1 and Tranche
2 shares.

 

e.
Anti-Dilution. At any time during the six (6) months following the Effective Date of this Agreement should the number of
outstanding shares of Textmunication common stock increase for any reason other than an issuance of shares pursuant to this Agreement,
Textmunication shall cause to be issued into the Tranche 2 reserve the number of shares of its common stock equal to 4.99% of
said increase, rounded down to the nearest whole share.

 

f.
Responsibility to Clear Shares. The obligations of the Textmunication Parties under this Paragraph 2 shall be limited to
issuing the shares in Tranche 1 and Tranche 2. The Textmunication Parties shall have no responsibility for clearing the shares.
Einhaus shall have sole responsibility for clearing the shares. Notwithstanding the foregoing, Textmunication agrees to provide
Einhaus certified copies of the resolutions of the Directors of the corporation approving this Agreement and of all documents
evidencing other necessary action and approvals, including, specifically, the issuance of any common stock with respect to this
Agreement.

 

3.
Dismissal of Claims. Within 10 days after the Effective Date, the Parties shall jointly submit to the Court in the Litigation
a stipulated order dismissing all claims and counterclaims with prejudice and with each party to bear his or its own fees and
costs in substantially the form as Exhibit A.

 

    	 	2	 

     

    

 

4.
Satisfaction of Promissory Note. In consideration for the agreements set forth herein, the Promissory Note is hereby satisfied
and discharged and all claims or other obligations related thereto are released pursuant to Section 5.

 

5.
Mutual Releases and Covenants Not to Sue

 

a.
Release and Covenant Not to Sue by Einhaus. Einhaus releases and forever discharges, and covenants not to sue, each of
the Textmunication Parties, and their agents, employees, directors, officers, attorneys, insurers, representatives, heirs, and
assigns (the “Textmunication Releasees”), from any and all claims, rights, actions, causes of action, damages,
losses, costs and expenses, agreements, liabilities or controversies, contingent or fixed, liquidated or unliquidated, known or
unknown, asserted or unasserted, whether arising under federal securities law, other federal law, or state or local law, that
Einhaus had, now has, or may hereafter have against any of the Textmunication Releasees, including but not limited to any arising
directly or indirectly from, or in any way relating to, any act or omission occurring from the beginning of time to the execution
of this Agreement, and including, without limiting the generality of the foregoing release, any cause of action, claim, or matter
alleged or set forth in, related directly or indirectly to, or based on alleged damages incurred in the future related directly
or indirectly to the purchase, sale or ownership of Textmunication shares or any of the transactions, occurrences, or events alleged
or referred to in any document filed in the Litigation. This release is intended to extend to and include the release and abandonment
of any claim or argument that the release is or should be limited in any respect by any condition precedent or subsequent or by
any claim or argument that it should be limited to matters within the contemplation of the Parties as of the date of execution
or otherwise.

 

b.
Release and Covenant Not to Sue by the Textmunication Parties. The Textmunication Parties each release and forever discharge,
and covenant not to sue, Einhaus, and his agents, employees, attorneys, insurers, representatives, heirs, and assigns (the “Einhaus
Releasees”), from any and all claims, rights, actions, causes of action, damages, losses, costs and expenses, agreements,
liabilities or controversies, contingent or fixed, liquidated or unliquidated, known or unknown, asserted or unasserted, whether
arising under federal securities law, other federal law, or state or local law, that any of the Textmunication Parties had, now
has, or may hereafter have against the Einhaus Releasees, including but not limited to any arising directly or indirectly from,
or in any way relating to, any act or omission occurring from the beginning of time to the execution of this Agreement, and including,
without limiting the generality of the foregoing release, any cause of action, claim, or matter alleged or set forth in, related
directly or indirectly to, or based on alleged damages incurred in the future related directly or indirectly to the purchase,
sale or ownership of Textmunication shares or any of the transactions, occurrences, or events alleged or referred to in any document
filed in the Litigation. This release is intended to extend to and include the release and abandonment of any claim or argument
that the release is or should be limited in any respect by any condition precedent or subsequent or by any claim or argument that
it should be limited to matters within the contemplation of the Parties as of the date of execution or otherwise.

 

    	 	3	 

     

    

 

c.
Notwithstanding the foregoing, the releases set forth above do not include a release of the express undertakings created by this
Agreement.

 

6.
Non-Disparagement and Removal of Prior Comments

 

a.
Non-Disparagement. Einhaus shall not disparage the Textmunication Parties, or any other officer, director or employee of
Textmunication. For purposes of this Section 6(a), “disparage” shall mean any negative statement, whether written
or oral. Without limiting the generality of the foregoing, Einhaus shall not post any comments regarding Textmunication, Wais
Asefi and/or David Thielen in any Internet message forums such as iHub, or on any other internet or social media platform such
as Facebook or Twitter.

 

b.
Removal of Prior Comments. Einhaus shall take all reasonable steps to remove prior comments by him in Internet message
forums related to Textmunication, Wais Asefi, and/or David Thielen. For each such prior comment, Einhaus’ obligation under
this Section 6(b) shall be satisfied upon either (A) the comment actually being removed from the message forum, or (B) Einhaus
having (i) identified each comment individually; (ii) requested to the moderator of the Internet message forum pertaining to each
comment that each comment be removed; and (iii) provided to the Textmunication Parties written proof of his completion of (i)
and (ii).

 

7.
Einhaus Statement. Einhaus shall provide to the Textmunication Parties a signed statement in the form set forth in Exhibit
2 hereto.

 

8.
Confidentiality.

 

a.
Except as provided in this Section 8 (the “Confidentiality Clause”) or as otherwise required by law, court order,
or regulation (including reporting regulations), the Parties agree to not disclose to any person or entity that is not a Party
(or a director, officer, insurer, auditor, accountant, or legal counsel of a Party) any terms of this Agreement or the contents
of any related settlement communications (collectively “Confidential Information”). Confidential Information does
not include information needed to enforce any rights under this Agreement, provided, however, that prior to using or filing any
such information with a court or other tribunal, the Party seeking to file or use the information shall provide the other Party
with sufficient notice so as to allow the other party to seek a protective order if it so chooses.

 

b.
Notwithstanding the foregoing, the Parties may account or report to their owners, auditors, accountants, insurers, insurers’
reinsurers, or other entities to whom the Parties owe legal or contractual obligations to account or report, and their respective
representatives, the terms of the Agreement. The Parties shall disclose only so much of the Confidential Information as is necessary
to comply with said legal or contractual obligations. The Parties shall not enter into any new contract for the purpose of circumventing
their obligations under the Confidentiality Clause.

 

    	 	4	 

     

    

 

9.
Representations and Warranties. Each Party hereby represents and warrants to the other Parties that:

 

a.
Such Party has received all approvals necessary to enter into and to fully and effectively carry out the provisions of this Agreement
on behalf of such Party and that the person signing this Agreement on his or its behalf is fully authorized to commit and bind
such Party to each and all of the terms and conditions of this Agreement.

 

b.
Such Party has entered into this Agreement freely and voluntarily of his or her own choice and without inducement, promise, or
understanding, except as expressly set forth in this Agreement.

 

c.
Such Party has cooperated in the drafting and preparation of this Agreement.

 

d.
Such Party acknowledges that he/it has been represented by independent legal counsel of such Party’s own choice throughout
all the negotiations which preceded the execution of this Agreement, that this Agreement was negotiated at arms-length, and that
such Party has knowingly and voluntarily executed this Agreement.

 

e.
Such Party warrants and represents that such Party is the sole and lawful owner of all right, title and interest in and to all
of the matters released by such Party herein; that such Party has full power, authority and capacity to release the Claims and
other rights that such Party is releasing in this Agreement; and that such Party has not heretofore, by operation of law or otherwise,
assigned or transferred, or purported to assign or transfer, to any person whomsoever any Claims or other rights released in this
Agreement or any part of or portion thereof.

 

f.
No individual, person, lawyer, law firm, or entity (including but not limited to Einhaus and the Tracy Firm) owns or holds any
lien or claim of any nature, including but not limited to any lien under the Illinois Attorneys Lien Act, 770 ILCS 5/1, with respect
to any claim being released by Einhaus or with respect to the Settlement Payment.

 

g.
Einhaus has not asserted and shall not assert any claim against any other person or entity arising out of the matters that form
any part of the factual basis for the claims in the Einhaus Lawsuit and that give rise to a contribution claim or other claim
from such other person or entity against the Textmunication Parties (a “Contribution Claim”). If Einhaus shall
assert any claim against any other person or entity and such claim results in a Contribution Claim, Einhaus shall immediately
upon request by any of the Textmunication Parties withdraw with prejudice the claim giving rise to the Contribution Claim, and
shall at their sole expense take any other action reasonably necessary to cause the Contribution Claim be dismissed. Einhaus shall
hold the Textmunication Parties harmless with respect to any Contribution Claim, including paying their attorneys’ fees
of counsel of their choice, and litigation costs in responding to any such Contribution Claim.

 

    	 	5	 

     

    

 

h.
Einhaus and the Tracy Firm have not, as of the date of execution by each of this Agreement, (a) been retained by any other individuals
having or purporting to have any claims of any sort against any of the Textmunication Parties; (b) filed, instituted or initiated
an investigation of any complaints, charges, applications, actions, suits, proceedings, claims or grievances against the Textmunication
Parties with any local, state or federal entity, or any court or other body; (c) testified, provided documents, filed, instituted
or become a party to, or participated in the investigation of, any complaint, charge application, action, suit, proceeding, claim
or grievances against any of the Textmunication Parties with any local, state or federal entity, or any court or other body, based
on any act, omission or other thing which arose prior to the date of execution of this Agreement, whether known or unknown at
the time of executing this Agreement, except for the claims asserted in the Einhaus Lawsuit.

 

i.
Except for the claims asserted in the Einhaus Lawsuit, Einhaus and the Tracy Firm (a) have no knowledge of the filing or status
of any complaint, charge, application, action, suit proceeding, investigation, claim, or grievances, if any, against any of the
Textmunication Parties that is or may be pending before any governmental entity, court or other body, (b) are not aware of, and
have not been informed of, any other potential plaintiff, or potential class member who intends to bring claims against the Textmunication
Parties; and (c) have not referred the claims related to Textmunication to any other attorneys or law firms.

 

j.
The foregoing representations by Einhaus and, solely with respect to subparagraphs (f) and (h)-(i), the Tracy Firm, are truthful
statements of fact. They are not an agreement restricting the ability of the Tracy Firm to practice law and are not believed or
intended to violate the provision of Illinois Rules of Professional Conduct 5.6 that states that “a lawyer shall not participate
in offering or making . . . an agreement in which a restriction on the lawyer’s right to practice as part of the settlement
of a client controversy.”

 

k.
All representations and warranties made by such Party in this Agreement are true and correct as of the date this Agreement becomes
effective.

 

l.
All representations and warranties made by a Party in this Agreement shall survive following the execution and delivery hereof.

 

10.
Textmunication’s Representations and Warranties

 

a.
Authorized Capital. The authorized capital stock of Textmunication consists of: (i) 100,000,000 shares of common stock,
of which 3,976,524 is issued and outstanding; and (ii) 1,774,000 shares of preferred stock of which 0 is issued and outstanding.
Moreover, when accounting for any Convertible Security, Textmunication has 3,976,524 common stock issued and outstanding on a
fully dilutive basis.

 

b.
Non-Shell Status. The Company is not now or ever been a shell as that term is defined in Rule 405 of the Securities Act.

 

c.
Periodic Filings. The Company at all times relevant herein will remain current in its reporting requirements with the SEC
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) including maintaining XBRL financial information
on the Company’s corporate website.

 

    	 	6	 

     

    

 

11.
Arbitration. Any controversy or claim arising out of or relating to this Agreement or the breach thereof, or any other
future issue between any of the parties, shall be settled by arbitration administered by the American Arbitration Association
in accordance with its Commercial Arbitration Rules and judgment on the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. Each party will, upon written request of the other party, promptly provide the other with copies
of all relevant documents. There shall be no other discovery allowed. Claims shall be heard by a single arbitrator. The award
of the arbitrator shall be accompanied by a reasoned written opinion. The arbitrator shall award to the prevailing party, if any,
as determined by the arbitrator, that party’s reasonable costs and fees. “Reasonable Costs and fees” shall include
reasonable pre-award expenses of the arbitration, including the arbitrators’ fees, administrative fees, travel expenses,
out-of-pocket expenses such as copying and telephone, court costs, witness fees, and attorneys’ fees. Any such arbitration
shall be held in Chicago, Illinois.

 

12.
No Admission. This Agreement is entered into solely to avoid the substantial costs, expenses and uncertainties associated
with contested claims. Neither the negotiation, execution nor performance of any of the terms of this Agreement shall constitute
or be construed as an admission by any Party of any fact, liability or wrongdoing, or as any indication that any of the claims
or charges made by any of the Parties has any merit or lacks merit, except as set forth in Exhibit 1. This Agreement shall not
be construed or interpreted as recognizing or assuming liability by any Party.

 

13.
General Provisions

 

a.
Further Assurances. Each Party shall take such further action and execute such further documents as may be reasonably requested
by another Party from time to time to further effectuate this Agreement and the releases it provides.

 

b.
Attorneys’ Fees and Costs. Each Party shall bear his or its own attorneys’ fees and costs in connection with
the Litigation and this Agreement.

 

c.
Applicable Law. This Agreement is made in the State of Illinois and shall be governed by, construed, and interpreted under
and pursuant to the laws of the State of Illinois without regard to choice of law principles.

 

d.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective
heirs, successors, and assigns.

 

e.
Headings. Headings are for convenience only and shall not be used in interpreting this Agreement.

 

f.
Complete Agreement. This Agreement constitutes the entire understanding of the Parties with respect to the subject matter
of this Agreement. It supersedes any and all prior or contemporaneous discussions, representations, agreements, or understandings
of the Parties with respect thereto, whether written or oral.

 

    	 	7	 

     

    

 

g.
Amendments. This Agreement may not be modified or amended, nor may any of its provisions be waived, except in a written
document signed by each Party. Each Party covenants and agrees not to assert any amendment or modification of this Agreement and
its exhibits not set forth in a writing signed or otherwise agreed to in writing by the Party sought to be bound.

 

h.
Construction. This Agreement shall be construed as if drafted by all Parties. No inference shall be drawn for or against
any Party because of its role in drafting any provision of this Agreement.

 

i.
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation shall not affect
the validity or enforceability of the remaining terms and provisions of this Agreement or the validity or enforceability of the
offending term or provision in any other situation.

 

j.
Counterparts, Signatures, and Effective Date. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original for all purposes. The Agreement is effective upon receipt by all Parties of a fully executed Agreement,
or counterparts, containing signatures of all Parties (the “Effective Date”).

 

k.
Notices. Notices permitted or provided in this Agreement shall be in writing sent to the Parties by (i) email, receipt
of which is confirmed by the receiving Party, (ii) U.S. Mail, or (iii) any established national private delivery service, such
as United Parcel Service or Federal Express, and shall be deemed delivered when received or, in the case of email, when acknowledged.
All such notices shall be sent to the Parties at the following addresses:

 

To
Einhaus:

 

Lester
Einhaus

blessd5@mchsi.com

105
W. Clark St.

Pontiac,
IL 61764

 

With
a copy to:

 

Adam
Tracy

at@tracyfirm.com

The
TracyFirm, Ltd.

141
W. Jackson, Ste. 2172

Chicago,
IL 60604

 

To
the Textmunication Parties:

 

Wais
Asefi

wais@textmunication.com

Textmunication
Holdings, Inc.

1940
Contra Costa Blvd.

Pleasant
Hill, CA 94523

 

and

 

David
Thielen

david@textmunication.com

Textmunication
Holdings, Inc.

1940
Contra Costa Blvd.

Pleasant
Hill, CA 94523

 

With
a copy to:

 

Edward
W. Feldman

EFeldman@millershakman.com

William
J. Katt

WKatt@millershakman.com

Miller
Shakman & Beem LLP

180
N. LaSalle Street, Suite 3600

Chicago,
Illinois 60601

 

Any
Party may change the recipient of notice and the address by a notice given in accordance with the foregoing.

 

    	 	8	 

     

    

 

 

    	 	9	 

     

    

 

[EXHIBIT
1]

UNITED
STATES DISTRICT COURT

NORTHER
DISTRICT OF ILLINOIS

EASTERN
DIVISION

 

	LESTER
    EINHAUS,	)	 
	 	)	No.
    17 C 4478
	Plaintiff,	)	 
	 	)	 
	v.	)	 
	 	)	Hon.
    Sara L. Ellis
	TEXTMUNICATION
    HOLDINGS, INC.,	)	 
	 	)	 
	Defendant.	)	 
	DAVID
    THIELEN and WAIS ASEFI,	)	 
	 	)	No.
    18 C 2421
	Plaintiffs,	)	 
	 	)	 
	v.	)	 
	 	)	Hon.
    Sara L. Ellis
	LESTER
    EINHAUS,	)	 
	 	)	 
	Defendant	)	 

 

STIPULATED
ORDER OF DISMISSAL

 

The
parties in the above-captioned consolidated cases having reached an agreement to dismiss all claims between them, with prejudice,
each party to bear his or its own fees and costs, IT IS HEREBY ORDERED that all claims and counterclaims in Case No. 17 C 4478
and Case No. 18 C 2421 are dismissed with prejudice, each party to bear his or its own fees and costs.

 

	 	ENTER:
	 	 
	 	 
	 	Hon.
    Sara L. Ellis

 

AGREED:

 

	LESTER EINHAUS	 	TEXTMUNICATION HOLDINGS, INC.,
	 	 	 	DAVID THIELEN, and WAIS ASEFI
	 	 	 	 	 
	By: 	             	 	By: 	                                  
	Adam Tracy	 	Edward Feldman
	The Tracy Firm, Ltd.	 	Miller Shakman & Beem, LLP
	141 W. Jackson, Ste. 2172	 	180 N. LaSalle, Ste. 3600
	Chicago, IL 60604	 	Chicago, IL 60601Exhibit 4.2

 

SUPPLEMENTAL INDENTURE NO. 6

 

Dated as of October 17, 2018

 

4.200% Notes due 2028

4.950% Notes due 2048

 

SUPPLEMENTAL INDENTURE NO. 6, dated as of October 17, 2018, among FedEx Corporation, a Delaware corporation (the “Company”), Federal Express Corporation, a Delaware corporation, Federal Express Europe,  Inc., a Delaware corporation, Federal Express Holdings S.A., LLC, a Delaware limited liability company (formerly Federal Express Holdings S.A.), Federal Express International, Inc., a Delaware corporation, FedEx Corporate Services, Inc., a Delaware corporation (into which FedEx TechConnect, Inc., a Delaware corporation, was merged), FedEx Freight Corporation, a Delaware corporation, FedEx Freight, Inc., an Arkansas corporation, FedEx Ground Package System, Inc., a Delaware corporation, and FedEx Office and Print Services, Inc., a Texas corporation (collectively, the “Guarantors”) and Wells Fargo Bank, National Association, as trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered an Indenture, dated as of October 23, 2015 (as amended or supplemented to date, the “Indenture”), to provide for the issuance by the Company from time to time, and the guarantee by the Guarantors, of the Company’s senior unsecured debt securities;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 1, dated as of October 23, 2015;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 2, dated as of March 24, 2016;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 3, dated as of April 11, 2016;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 4, dated as of January 6, 2017;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 5, dated as of January 31, 2018;

 

1

 

WHEREAS, Section 9.01(b) of the Indenture permits execution of supplemental indentures without the consent of any Holders for the purpose of adding to the covenants of the Company or any Guarantor for the benefit of the Holders of less than all series of Securities so long as such supplemental indenture states that such covenant is expressly being included solely for the benefit of one or more particular series of Securities;

 

WHEREAS, Section 9.01(j) of the Indenture permits execution of supplemental indentures for the purpose of establishing the form or terms of Securities of any series as permitted by Sections 2.01 and 3.01 of the Indenture without the consent of any Holders;

 

WHEREAS, the entry into this Supplemental Indenture No. 6 by the parties hereto is authorized by the provisions of the Indenture;

 

WHEREAS, the Change of Control Repurchase Event (as defined herein) covenant, as set forth below, is expressly being included solely for the benefit of the Notes (as defined herein); and

 

WHEREAS, all things necessary to make the Notes, when executed by the Company and authenticated and delivered hereunder and under the Indenture, duly issued by the Company and to make this Supplemental Indenture No. 6 a valid and legally binding agreement of the Company and the Guarantors, in accordance with the terms hereof and thereof, have been done.

 

NOW, THEREFORE, for and in consideration of the premises and the purchase of the Notes by the Holders, the Company, the Guarantors and the Trustee mutually covenant and agree, for the equal and proportionate benefit of the respective Holders from time to time of each series of the Notes as follows:

 

ARTICLE 1
 RELATION TO THE INDENTURE; DEFINITIONS AND
 OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Relation to the Indenture.  This Supplemental Indenture No. 6 constitutes an integral part of the Indenture.

 

Section 1.02.  Definitions and Other Provisions of General Application.  For all purposes of this Supplemental Indenture No. 6 unless otherwise specified herein:

 

(a)        all terms defined in this Supplemental Indenture No. 6 which are used and not otherwise defined herein shall have the meanings they are given in the Indenture; and

 

2

 

(b)        the provisions of general application stated in Section 1.01 of the Indenture shall apply to this Supplemental Indenture No. 6, except that the words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Supplemental Indenture No. 6 as a whole and not to the Indenture or any particular Article, Section or other subdivision of the Indenture or this Supplemental Indenture No. 6.

 

ARTICLE 2
 THE SERIES OF NOTES

 

Section 2.01.  Title.  There shall be a series of Securities designated the 4.200% Notes due 2028 (the “2028 Notes”) and a series of Securities designated the 4.950% Notes due 2048 (the “2048 Notes,” and collectively with the 2028 Notes, the “Notes”).

 

Section 2.02.  Principal Amounts.  Subject to Section 2.10, the initial aggregate principal amount of the 2028 Notes that may be authenticated and delivered under this Supplemental Indenture No. 6 shall not exceed $400,000,000 and the initial aggregate principal amount of the 2048 Notes that may be authenticated and delivered under this Supplemental Indenture No. 6 shall not exceed $850,000,000 (except for Notes of each series authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 3.04, 3.05, 3.06, 9.06 or 11.07 of the Indenture and except for any Notes which pursuant to Section 3.03 of the Indenture are deemed never to have been authenticated and delivered hereunder).

 

Section 2.03.  Stated Maturity Dates.  The entire outstanding principal amount of the 2028 Notes shall be payable on October 17, 2028 and the entire outstanding principal amount of the 2048 Notes shall be payable on October 17, 2048, in each case subject to Section 2.06 and Section 3.02.

 

Section 2.04  Interest.

 

(a)        The 2028 Notes will bear interest at the rate of 4.200% per annum. Interest on the 2028 Notes will be computed on the basis of a 360-day year of twelve 30-day months. Interest on the 2028 Notes will be payable semi-annually in arrears on April 17 and October 17, commencing April 17, 2019, and ending on the date of maturity, to the Persons in whose names the 2028 Notes are registered on the preceding April 2 and October 2 (whether or not that date is a Business Day), respectively.

 

(b)        The 2048 Notes will bear interest at the rate of 4.950% per annum. Interest on the 2048 Notes will be computed on the basis of a 360-day year of twelve 30-day months. Interest on the 2048 Notes will be payable semi-annually

 

3

 

in arrears on April 17 and October 17, commencing April 17, 2019, and ending on the date of maturity, to the Persons in whose names the 2048 Notes are registered on the preceding April 2 and October 2 (whether or not that date is a Business Day), respectively.

 

Section 2.05.  Defeasance and Discharge; Covenant Defeasance.  The provisions of Section 13.02 and Section 13.03 of the Indenture shall apply to each series of the Notes.

 

Section 2.06.  Optional Redemption.  The Company will have the right, at its option, to redeem either series of the Notes, in whole or in part, at any time prior to the applicable Par Call Date, on at least 10 days’, but no more than 60 days’, prior written notice mailed by the Company (or otherwise delivered in accordance with the applicable procedures of the Depositary) to the Holders of the Notes to be redeemed. Upon redemption of Notes of either series, the Company will pay a redemption price as calculated by a Reference Treasury Dealer (as defined below) selected by the Company equal to the greater of:

 

(a)        100% of the principal amount of the Notes of such series to be redeemed; and

 

(b)        the sum of the present values of the remaining scheduled payments of principal and interest on the Notes of such series to be redeemed that would be due if such Notes matured on the applicable Par Call Date (not including any portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate described below plus 0.20% (20 basis points) in the case of the 2028 Notes and 0.25% (25 basis points) in the case of the 2048 Notes,

 

in each case, plus accrued and unpaid interest to the date of redemption on the principal amount of the Notes of such series being redeemed.

 

At any time on or after the applicable Par Call Date, the Company may redeem either series of the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes of such series to be redeemed plus accrued and unpaid interest to the date of redemption on the principal amount of the Notes of such series being redeemed.

 

“Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that date of redemption.

 

4

 

“Comparable Treasury Issue” means, with respect to the Notes of either series to be redeemed prior to the applicable Par Call Date, the United States Treasury security selected by a Reference Treasury Dealer selected by the Company as having a maturity comparable to the remaining term of such Notes (assuming, for this purpose, that such Notes mature on the applicable Par Call Date) that would be used, at the time of selection and under customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes (assuming, for this purpose, that such Notes mature on the applicable Par Call Date).

 

“Comparable Treasury Price” means, with respect to any date of redemption, the average of the Reference Treasury Dealer Quotations for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or if the Company is provided fewer than three Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

“Par Call Date” means July 17, 2028 in the case of the 2028 Notes (the date that is three months prior to the Stated Maturity Date of the 2028 Notes) and April 17, 2048 in the case of the 2048 Notes (the date that is six months prior to the Stated Maturity Date of the 2048 Notes).

 

“Reference Treasury Dealer” means each of: (i) Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA LLC and their respective successors; and (ii) any other primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) the Company selects. If any of the foregoing ceases to be a Primary Treasury Dealer, the Company must substitute another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day before the date of redemption.

 

Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes, or portions of the Notes, called for redemption.

 

Section 2.07  Form of Notes.  Each series of the Notes shall be represented by one or more permanent global notes registered in the name Cede & Co. or The Depository Trust Company or its nominee. The 2028 Notes shall be in the form of Exhibit A attached hereto and the 2048 Notes shall be in the form of Exhibit B attached hereto.

 

5

 

Section 2.08.  Sinking Fund.  The Notes shall not be subject to a sinking fund.

 

Section 2.09.  Additional Amounts.  The provisions of Section 10.06 of the Indenture shall not apply to the Notes.

 

Section 2.10.  Amount Not Limited.  The aggregate principal amount of Notes which may be authenticated and delivered under the Indenture, as supplemented from time to time, shall not be limited, and additional Notes may be issued from time to time without any consent of Holders or of the Trustee, provided that if the additional Notes of a series are not fungible with the then-outstanding Notes of that series for U.S. federal income tax purposes, the additional Notes shall have a separate CUSIP number.

 

ARTICLE 3
 CHANGE OF CONTROL REPURCHASE EVENT

 

Section 3.01.  Intended Beneficiary; Definitions.

 

(a)        The provisions of this Article 3 shall be applicable only to, and are solely for the benefit of Holders of, each series of the Notes and to no other Security.

 

(b)        For purposes of this Supplemental Indenture No. 6:

 

“Below Investment Grade Ratings Event” means, with respect to a series of Notes, on any day within the 60-day period (which period shall be extended so long as the rating of such series of Notes is under publicly announced consideration for a possible downgrade by any Rating Agency) after the earlier of (1) the occurrence of a Change of Control, or (2) the public announcement of the occurrence of a Change of Control or the intention by the Company to effect a Change of Control, the Notes of such series are rated below Investment Grade by each and every Rating Agency. Notwithstanding the foregoing, a Below Investment Grade Ratings Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Ratings Event for purposes of the definition of Change of Control Repurchase Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not publicly announce or publicly confirm, or inform the Trustee in writing at the Company’s request, that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Ratings Event).

 

6

 

“Change of Control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than (1) the Company or any Subsidiary, (2) any employee benefit plan (or a trust forming a part thereof) maintained by the Company or any Subsidiary, or (3) any underwriter temporarily holding Voting Stock of the Company pursuant to an offering of such Voting Stock, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the combined voting power of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed measured by voting power rather than number of shares.

 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Ratings Event with respect to a series of Notes.

 

“Investment Grade” means: with respect to Moody’s, a rating of Baa3 or better (or its equivalent under any successor rating categories of Moody’s); with respect to S&P, a rating of BBB- or better (or its equivalent under any successor rating categories of S&P); and, with respect to any additional Rating Agency or Rating Agencies selected by the Company, the equivalent investment grade credit rating.

 

“Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors.

 

“Rating Agency” means: (1) each of Moody’s and S&P; and (2) if either of Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act, selected by the Company (as certified by a Board Resolution) as a replacement agency for Moody’s or S&P, or both of them, as the case may be.

 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors.

 

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

 

7

 

Section 3.02.  Change of Control Repurchase Event.

 

(a)        If a Change of Control Repurchase Event occurs with respect to either or both series of Notes, except to the extent the Company has exercised its right to redeem the Notes of such series pursuant to the redemption terms of such series of the Notes, the Company will make an offer to each Holder of the Notes of such series to repurchase all or any part (in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof) of that Holder’s Notes of such series at a repurchase price (the “Repurchase Price”) in cash equal to 101% of the aggregate principal amount of such Notes repurchased plus any accrued and unpaid interest on such Notes repurchased to, but not including, the Repurchase Date (defined below).

 

(b)        Within 30 days following a Change of Control Repurchase Event or, at the Company’s option, prior to a Change of Control, but after the public announcement of such Change of Control, the Company will mail, or cause to be mailed, or otherwise deliver in accordance with the applicable procedures of the Depositary, a notice to each Holder of the Notes of such series, with a copy to the Trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the Notes of such series on the payment date specified in the notice (such offer, the “Repurchase Offer” and such date, the “Repurchase Date”), which Repurchase Date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed, pursuant to the procedures described in such notice. The notice shall, if mailed or delivered prior to the date of consummation of the Change of Control, state that the Repurchase Offer is conditioned on a Change of Control Repurchase Event occurring on or prior to the Repurchase Date.

 

(c)        The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations to the extent those laws and regulations are applicable in connection with the repurchase of the Notes of such series as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of such Notes, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Repurchase Event provisions of such Notes by virtue of such conflict.

 

(d)        On the Repurchase Date following a Change of Control Repurchase Event, the Company will, to the extent lawful:

 

(i)            accept for payment all Notes or portions of Notes properly tendered pursuant to the Repurchase Offer;

 

(ii)           deposit with the Trustee or with such Paying Agent as the Trustee may designate an amount equal to the aggregate Repurchase Price for all Notes or portions of Notes properly tendered;

 

8

 

(iii)          deliver, or cause to be delivered, to the Trustee the Notes properly accepted for payment by the Company, together with an Officers’ Certificate stating the aggregate principal amount of Notes being repurchased by the Company pursuant to the Repurchase Offer; and

 

(iv)          deliver, or cause to be delivered, to the Trustee, for authentication by the Trustee, any new Notes required to be issued pursuant to Section 3.02(e) below, duly executed by the Company.

 

(e)   Upon receipt by the Trustee from the Company of a notice setting forth the Repurchase Price and the Notes properly tendered and accepted for payment, the Trustee will promptly mail, or cause the Paying Agent to promptly mail, or otherwise deliver in accordance with the applicable procedures of the Depositary, to each Holder of such Notes, or portions of such Notes, properly tendered and accepted for payment by the Company the Repurchase Price for such Notes or portions of such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each such Holder a new 2028 Note or 2048 Note, as applicable, duly executed by the Company equal in principal amount to any unrepurchased portion of such series of Notes surrendered, as applicable; provided that each such new Note will be in a principal amount equal to $2,000 or integral multiples of $1,000 in excess thereof.

 

(f)    The Company will not be required to make a Repurchase Offer upon a Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all Notes or portions of such Notes properly tendered and not withdrawn under its offer.

 

(g)   The Company and the Guarantors acknowledge that the Company may not have sufficient funds to repurchase all Notes or portions of such Notes properly tendered upon a Change of Control Repurchase Event.

 

ARTICLE 4
 MISCELLANEOUS PROVISIONS

 

Section 4.01.  Supplemental Indenture.  The Indenture, as supplemented by this Supplemental Indenture No. 6, is in all respects hereby adopted, ratified and confirmed.

 

Section 4.02.  Effectiveness.  This Supplemental Indenture No. 6 shall take effect as of the date hereof.

 

9

 

Section 4.03.  Effect of Headings.  The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

 

Section 4.04.  Separability Clause.  In case any provision in this Supplemental Indenture No. 6 shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions herein shall not in any way be affected or impaired thereby.

 

Section 4.05.  Governing Law.  This Supplemental Indenture No. 6 shall be governed by and construed in accordance with the laws of the State of New York.

 

Section 4.06.  Execution by the Trustee.  The Trustee has executed this Supplemental Indenture No. 6 only upon the terms and conditions set forth in the Indenture. Without limiting the generality of the foregoing, the Trustee shall not be responsible for the correctness of the recitals contained herein, which shall be taken as statements of the Company and the Guarantors, and the Trustee makes no representation and shall have no responsibility for, or in respect of, the validity or sufficiency of this Supplemental Indenture No. 6 or the execution hereof by any Person (other than the Trustee).

 

Section 4.07.  Counterparts.  This Supplemental Indenture No. 6 may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

10

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 6 to be duly executed, all as of the day and year first above written.

 

 

	
 
    	
 
    	
FedEx Corporation,   
    as Issuer
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Michael C.   Lenz
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Michael C. Lenz
    
	
 
    	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Corporate Vice   President and Treasurer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
Federal Express Corporation,  
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Elise L.   Jordan
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Elise L. Jordan
    
	
 
    	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Executive Vice   President and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
FedEx Ground Package System, Inc.,  
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Robert D.   Henning
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Robert D. Henning
    
	
 
    	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Executive Vice   President and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
FedEx Freight Corporation, 
    
	
 
    	
 
    	
as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Claude F.   Russ
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Claude F. Russ
    
	
 
    	
Title:
    	
Secretary
    	
 
    	
 
    	
Title: 
    	
Senior Vice   President — Finance and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
FedEx Freight, Inc., 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Claude F.   Russ
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Claude F. Russ
    
	
 
    	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice   President — Finance and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
FedEx Corporate Services, Inc., 
   as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward Klank III
    	
 
    	
By:
    	
/s/ Mark A.   McGough
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Mark A. McGough
    
	
 
    	
Title: 
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice   President and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
FedEx Office and Print Services, Inc.,
   as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Leslie M.   Benners
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Leslie M. Benners
    
	
 
    	
Title:
    	
Secretary
    	
 
    	
 
    	
Title:
    	
Senior Vice   President and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
Federal Express Europe, Inc., 
   as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Helena   Jansson
    
	
 
    	
Name: 
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name: 
    	
Helena Jansson
    
	
 
    	
Title: 
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Vice President and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
Federal Express Holdings S.A., LLC,  
 as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Juan N.   Cento
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
Juan N. Cento
    
	
 
    	
Title: 
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
President and Chief Executive Officer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
Federal Express International, Inc., 
   as Guarantor
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ John D. Hartney
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    	
 
    	
Name:
    	
John D. Hartney
    
	
 
    	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
Title:
    	
Assistant   Treasurer
    

 

[Signature Page to Supplemental Indenture No. 6]

 

 

	
 
    	
 
    	
Wells   Fargo Bank, National Association,  
   as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Stefan   Victory
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Stefan Victory
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

Exhibit A

 

Form of 2028 Note

 

	
No. [       ]
    	
 
    	
CUSIP No. [            ](1)
    

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

Unless this security 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 security 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.

 

FEDEX CORPORATION

 

4.200% Notes due 2028

 

Guaranteed as to Payment of Principal, Premium, if any, and Interest
 by the Guarantors named in the Indenture Referred to Below

 

FedEx Corporation, a Delaware corporation (the “Company,” which term includes any successor Corporation under the Indenture), for value received, hereby promises to pay to

 

Cede & Co.
 c/o The Depository Trust Company

 

(1)  Initial Note: 31428X BR6

 

1

 

55 Water Street
 New York, New York 10041

 

or registered assigns, the principal sum of US $400,000,000 on October 17, 2028 (the “Stated Maturity Date”) and to pay interest thereon from October 17, 2018, or from the most recent “Interest Payment Date” to which interest has been paid or duly provided for, semi-annually in arrears on April 17 and October 17 of each year, commencing April 17, 2019, and ending on the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein, at the rate of 4.200% per annum, until the principal hereof is paid or duly provided for. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture dated as of October 23, 2015 among the Company, the Guarantors referred to in the Indenture and Wells Fargo Bank, National Association as Trustee (the “Trustee,” which term includes any successor trustee pursuant to the Indenture), as supplemented by Supplemental Indenture No. 6 dated as of October 17, 2018 (“Supplemental Indenture No. 6”), among the Company, the Guarantors named therein and the Trustee (as so amended and supplemented, the “Indenture”), be paid to the Person in whose name this Note is registered at the close of business on the “Regular Record Date” for such interest, which shall be the preceding April 2 and October 2 (whether or not a Business Day (as defined below)), respectively. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the registered Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

 

The Company will at all times appoint and maintain a Paying Agent (which may be the Trustee) authorized by the Company to pay the principal of and premium, if any, and interest on any Notes of this series on behalf of the Company and having an office or agency in New York, New York and in such other cities, if any, as the Company may designate in writing to the Trustee (the “Place of Payment”) where Notes of this series may be presented or surrendered for payment and where notices, designations or requests in respect for payments with respect to Notes of this series may be served.  The Company has initially appointed Wells Fargo Bank, National Association as such Paying Agent.

 

Interest payments on this Note will be computed and paid on the basis of a 360-day year of twelve 30-day months. Interest payable on this Note on any Interest Payment Date and on the Stated Maturity Date or date of earlier

 

2

 

redemption or repurchase as contemplated herein will include interest accrued from and including the most recent Interest Payment Date to which interest has been paid or duly provided for (or from and including October 17, 2018, if no interest has been paid on this Note) to but excluding such Interest Payment Date or the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein, as the case may be.

 

If any Interest Payment Date or the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein falls on a day that is not a Business Day, principal, premium, if any, and/or interest payable with respect to such Interest Payment Date or the Stated Maturity Date, or such date of earlier redemption or repurchase, as the case may be, will be paid on the next succeeding Business Day with the same force and effect as if it were paid on the date such payment was due, and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein, as the case may be. “Business Day” means any day other than Saturday, Sunday or other day on which banking institutions in New York or Tennessee are obligated or authorized by law to close.

 

The principal, premium, if any, and interest payable on this Note will be made by wire transfer of immediately available funds to the Holder hereof in such 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 hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the Certificate of Authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit pursuant to the Indenture or be valid or obligatory for any purpose.

 

3

 

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

 

	
 
    	
FEDEX CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Michael C. Lenz
    
	
 
    	
 
    	
Title:
    	
Corporate Vice   President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    
	
 
    	
Title:
    	
Assistant   Secretary
    	
 
    

 

4

 

Certificate of Authentication

 

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

 

	
 
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

Dated:  [                   ](2)

 

(2)  Initial Note: October 17, 2018

 

5

 

[REVERSE OF SECURITY]

 

FEDEX CORPORATION

 

4.200% Notes due 2028

 

This Note is one of a duly authorized issue of notes of the Company (herein called the “Notes”), issued pursuant to the Indenture. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern. This Note is one of the series designated on the face hereof, limited in initial aggregate principal amount to US $400,000,000, except as contemplated in Supplemental Indenture No. 6. Capitalized terms used herein and in the Guarantee, dated October 17, 2018, but not defined herein have the meanings ascribed to such terms in the Indenture.

 

The Notes of this series are not subject to any sinking fund.

 

The Company will have the right, at its option, to redeem the Notes of this series in whole or in part at any time prior to the Par Call Date, on at least 10 days’, but no more than 60 days’, prior written notice mailed to the registered address of each Holder of the Notes of this series to be redeemed. Upon redemption of such Notes, the Company will pay a redemption price as calculated by a Reference Treasury Dealer (as defined in Supplemental Indenture No. 6) selected by the Company equal to the greater of (i) 100% of the principal amount of the Notes of this series to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes of this series to be redeemed that would be due if the Notes of this series matured on the Par Call Date (not including any portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate (as defined in Supplemental Indenture No. 6) plus 0.20% (20 basis points), plus, in the case of either (i) or (ii), accrued and unpaid interest to the date of redemption on the principal amount of the Notes of this series being redeemed.

 

At any time on or after the Par Call Date, the Company may redeem the Notes of this series, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes of this series to be redeemed plus accrued and unpaid interest to the date of redemption on the principal amount of the Notes of this series being redeemed. As used in this Note, “Par Call Date” shall mean July 17, 2028 (the date that is three months prior to the Stated Maturity Date of the Notes of this series).

 

6

 

Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes, or portions of the Notes of this series, called for redemption.

 

If a Change of Control Repurchase Event (as defined in Supplemental Indenture No. 6) occurs with respect to Notes of this series, unless the Company has exercised its right to redeem the affected Notes, the Company will make an offer, as provided in, and subject to the terms of, Supplemental Indenture No. 6, to each Holder of the Notes of this series to repurchase all or any part (in minimum denominations of $2,000 or integral multiples of $1,000 in excess thereof) of that Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of such Notes repurchased plus any accrued and unpaid interest on such Notes repurchased to, but not including, the date of repurchase.

 

The Notes of this series are fully and unconditionally guaranteed as to the due and punctual payment of the principal, premium, if any, and interest in respect thereof by the Guarantors as evidenced by their guarantees (the “Guarantees”) set forth hereon. The Guarantees are the direct and unconditional obligations of such Guarantors and rank and will rank equally in priority of payment and in all other respects with all other unsecured and unsubordinated obligations of such Guarantors now or hereafter outstanding.

 

In case an Event of Default with respect to the Notes of this series shall occur and be continuing, the principal of the Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of this Note or (ii) certain respective covenants and Events of Default with respect to this Note, in each case upon compliance with certain conditions set forth therein, which provisions apply to the Notes.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantors and the rights of the Holders of the Securities of each series to be affected pursuant to the Indenture at any time by the Company, the Guarantors and the Trustee with the consent of the Holders of a majority in principal amount of such Securities at the time Outstanding (voting as a single class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and certain past defaults pursuant to the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note

 

7

 

and of any Note or Notes issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this 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 Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the times, places and rate, and in the currency herein prescribed.

 

As provided in the Indenture and subject to certain limitations herein and therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in the Place of Payment, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar, duly executed by, the Holder hereof or its attorney-in-fact duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Notes of this series are issuable only in registered form without coupons in denominations equal to $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations herein and therein set forth, Notes of this series are exchangeable for the same aggregate principal amount of Notes of this series and of like tenor and authorized denominations, as requested by the Holder surrendering the same.

 

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

 

Prior to due presentment of this Note for registration of transfer, the Company, the Guarantors, the Trustee and any agent of the Company, a Guarantor or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Guarantors, the Trustee nor any such agent shall be affected by notice to the contrary.

 

No recourse under or upon any obligation, covenant or agreement of the Company or any Guarantor in the Indenture or any indenture supplemental thereto or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or any Guarantor or of any successor thereto, either directly or through the Company or any Guarantor or any successor thereto, under any rule of law, statute or constitutional provision or by

 

8

 

the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance hereof and as part of the consideration for the issue hereof.

 

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

 

9

 

Schedule 1

 

SCHEDULE OF CHANGES IN OUTSTANDING PRINCIPAL AMOUNT

 

The following notations in respect of changes in the outstanding principal amount of this Note have been made:

 

	
Date
    	
 
    	
Initial Principal Amount
    	
 
    	
Change in Outstanding
   Principal Amount
    	
 
    	
New
   Balance
    	
 
    	
Notation Made
   by
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

10

 

Exhibit B

 

Form of 2048 Note

 

	
No. [       ]
    	
 
    	
CUSIP No. [            ](3)
    

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

Unless this security 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 security 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.

 

FEDEX CORPORATION

 

4.950% Notes due 2048

 

Guaranteed as to Payment of Principal, Premium, if any, and Interest
 by the Guarantors named in the Indenture Referred to Below

 

FedEx Corporation, a Delaware corporation (the “Company,” which term includes any successor Corporation under the Indenture), for value received, hereby promises to pay to

 

(3)  Initial Note: 31428X BS4

 

1

 

Cede & Co.
 c/o The Depository Trust Company
 55 Water Street
 New York, New York 10041

 

or registered assigns, the principal sum of US$[      ] on October 17, 2048 (the “Stated Maturity Date”) and to pay interest thereon from October 17, 2018, or from the most recent “Interest Payment Date” to which interest has been paid or duly provided for, semi-annually in arrears on April 17 and October 17 of each year, commencing April 17, 2019, and ending on the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein, at the rate of 4.950% per annum, until the principal hereof is paid or duly provided for. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture dated as of October 23, 2015 among the Company, the Guarantors referred to in the Indenture and Wells Fargo Bank, National Association as Trustee (the “Trustee,” which term includes any successor trustee pursuant to the Indenture), as supplemented by Supplemental Indenture No. 6 dated as of October 17, 2018 (“Supplemental Indenture No. 6”), among the Company, the Guarantors named therein and the Trustee (as so amended and supplemented, the “Indenture”), be paid to the Person in whose name this Note is registered at the close of business on the “Regular Record Date” for such interest, which shall be the preceding April 2 and October 2 (whether or not a Business Day (as defined below)), respectively. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the registered Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

 

The Company will at all times appoint and maintain a Paying Agent (which may be the Trustee) authorized by the Company to pay the principal of and premium, if any, and interest on any Notes of this series on behalf of the Company and having an office or agency in New York, New York and in such other cities, if any, as the Company may designate in writing to the Trustee (the “Place of Payment”) where Notes of this series may be presented or surrendered for payment and where notices, designations or requests in respect for payments with respect to Notes of this series may be served.  The Company has initially appointed Wells Fargo Bank, National Association as such Paying Agent.

 

2

 

Interest payments on this Note will be computed and paid on the basis of a 360-day year of twelve 30-day months. Interest payable on this Note on any Interest Payment Date and on the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein will include interest accrued from and including the most recent Interest Payment Date to which interest has been paid or duly provided for (or from and including October 17, 2018, if no interest has been paid on this Note) to but excluding such Interest Payment Date or the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein, as the case may be.

 

If any Interest Payment Date or the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein falls on a day that is not a Business Day, principal, premium, if any, and/or interest payable with respect to such Interest Payment Date or the Stated Maturity Date, or such date of earlier redemption or repurchase, as the case may be, will be paid on the next succeeding Business Day with the same force and effect as if it were paid on the date such payment was due, and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or the Stated Maturity Date or date of earlier redemption or repurchase as contemplated herein, as the case may be. “Business Day” means any day other than Saturday, Sunday or other day on which banking institutions in New York or Tennessee are obligated or authorized by law to close.

 

The principal, premium, if any, and interest payable on this Note will be made by wire transfer of immediately available funds to the Holder hereof in such 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 hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the Certificate of Authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit pursuant to the Indenture or be valid or obligatory for any purpose.

 

3

 

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

 

	
 
    	
FEDEX CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Michael C. Lenz
    
	
 
    	
 
    	
Title:
    	
Corporate Vice   President and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
C. Edward Klank   III
    	
 
    
	
 
    	
Title:
    	
Assistant Secretary
    	
 
    

 

4

 

Certificate of Authentication

 

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

 

	
 
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

Dated:  [                   ](4)

 

(4)  Initial Note: October 17, 2018

 

5

 

[REVERSE OF SECURITY]

 

FEDEX CORPORATION

 

4.950% Notes due 2048

 

This Note is one of a duly authorized issue of notes of the Company (herein called the “Notes”), issued pursuant to the Indenture. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern. This Note is one of the series designated on the face hereof, limited in initial aggregate principal amount to US $850,000,000, except as contemplated in Supplemental Indenture No. 6. Capitalized terms used herein and in the Guarantee, dated October 17, 2018, but not defined herein have the meanings ascribed to such terms in the Indenture.

 

The Notes of this series are not subject to any sinking fund.

 

The Company will have the right, at its option, to redeem the Notes of this series in whole or in part at any time prior to the Par Call Date, on at least 10 days’, but no more than 60 days’, prior written notice mailed to the registered address of each Holder of the Notes of this series to be redeemed. Upon redemption of such Notes, the Company will pay a redemption price as calculated by a Reference Treasury Dealer (as defined in Supplemental Indenture No. 6) selected by the Company equal to the greater of (i) 100% of the principal amount of the Notes of this series to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes of this series to be redeemed that would be due if the Notes of this series matured on the Par Call Date (not including any portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate (as defined in Supplemental Indenture No. 6) plus 0.25% (25 basis points), plus, in the case of either (i) or (ii), accrued and unpaid interest to the date of redemption on the principal amount of the Notes of this series being redeemed.

 

At any time on or after the Par Call Date, the Company may redeem the Notes of this series, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes of this series to be redeemed plus accrued and unpaid interest to the date of redemption on the principal amount of the Notes of this series being redeemed. As used in this Note, “Par Call Date” shall mean April 17, 2048 (the date that is six months prior to the Stated Maturity Date of the Notes of this series).

 

6

 

Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes, or portions of the Notes of this series, called for redemption.

 

If a Change of Control Repurchase Event (as defined in Supplemental Indenture No. 6) occurs with respect to Notes of this series, unless the Company has exercised its right to redeem the affected Notes, the Company will make an offer, as provided in, and subject to the terms of, Supplemental Indenture No. 6, to each Holder of the Notes of this series to repurchase all or any part (in minimum denominations of $2,000 or integral multiples of $1,000 in excess thereof) of that Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of such Notes repurchased plus any accrued and unpaid interest on such Notes repurchased to, but not including, the date of repurchase.

 

The Notes of this series are fully and unconditionally guaranteed as to the due and punctual payment of the principal, premium, if any, and interest in respect thereof by the Guarantors as evidenced by their guarantees (the “Guarantees”) set forth hereon. The Guarantees are the direct and unconditional obligations of such Guarantors and rank and will rank equally in priority of payment and in all other respects with all other unsecured and unsubordinated obligations of such Guarantors now or hereafter outstanding.

 

In case an Event of Default with respect to the Notes of this series shall occur and be continuing, the principal of the Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of this Note or (ii) certain respective covenants and Events of Default with respect to this Note, in each case upon compliance with certain conditions set forth therein, which provisions apply to the Notes.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantors and the rights of the Holders of the Securities of each series to be affected pursuant to the Indenture at any time by the Company, the Guarantors and the Trustee with the consent of the Holders of a majority in principal amount of such Securities at the time Outstanding (voting as a single class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and certain past defaults pursuant to the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note

 

7

 

and of any Note or Notes issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this 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 Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the times, places and rate, and in the currency herein prescribed.

 

As provided in the Indenture and subject to certain limitations herein and therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in the Place of Payment, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar, duly executed by, the Holder hereof or its attorney-in-fact duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Notes of this series are issuable only in registered form without coupons in denominations equal to $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations herein and therein set forth, Notes of this series are exchangeable for the same aggregate principal amount of Notes of this series and of like tenor and authorized denominations, as requested by the Holder surrendering the same.

 

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

 

Prior to due presentment of this Note for registration of transfer, the Company, the Guarantors, the Trustee and any agent of the Company, a Guarantor or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Guarantors, the Trustee nor any such agent shall be affected by notice to the contrary.

 

No recourse under or upon any obligation, covenant or agreement of the Company or any Guarantor in the Indenture or any indenture supplemental thereto or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or any Guarantor or of any successor thereto, either directly or through the Company or any Guarantor or any successor thereto, under any rule of law, statute or constitutional provision or by

 

8

 

the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance hereof and as part of the consideration for the issue hereof.

 

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

 

9

 

Schedule 1

 

SCHEDULE OF CHANGES IN OUTSTANDING PRINCIPAL AMOUNT

 

The following notations in respect of changes in the outstanding principal amount of this Note have been made:

 

 

	
Date
    	
 
    	
Initial Principal Amount
    	
 
    	
Change in Outstanding
   Principal Amount
    	
 
    	
New
   Balance
    	
 
    	
Notation Made
   by
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

10

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