Document:

Exhibit

Exhibit No. 10.1

Execution Version
ESCROW AGREEMENT
ESCROW AGREEMENT, dated as of August 2, 2019 (as amended, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”), by and among Diamond Sports Group, LLC, a Delaware limited liability company (“Diamond Sports Group”), and Diamond Sports Finance Company, a Delaware corporation (the “Co-Issuer” and, together with Diamond Sports Group, the “Issuers”), U.S. Bank National Association, as trustee (the “Trustee”) on behalf of the Holders (as defined in the applicable Indenture referred to below) of the Secured Notes and the Senior Notes (each as defined below) (such holders, the “Holders”), and U.S. Bank National Association, as escrow agent and as securities intermediary and bank (collectively, in such capacity, the “Escrow Agent”).  
This Agreement is being entered into in connection with (i) the Equity Purchase Agreement, dated as of May 3, 2019 (the “Acquisition Agreement”), by and among The Walt Disney Company, Fox Cable Networks, LLC and Diamond Sports Group, (ii) the Purchase Agreement, dated July 19, 2019, by and among the Issuers, the guarantors party thereto and J.P. Morgan Securities LLC as representative on behalf of the several Initial Purchasers named in Schedule 1 thereto (collectively, the “Initial Purchasers”), (iii) the Indenture, dated as of the date hereof (the “Secured Notes Indenture”), by and among the Issuers, the guarantors party thereto, the Trustee and U.S. Bank National Association, as collateral agent, governing the Issuers’ $3,050,000,000 aggregate principal amount of 5.375% Senior Secured Notes due 2026 (the “Secured Notes”) and (iv) the Indenture, dated as of the date hereof (the “Senior Notes Indenture” and, together with the Secured Notes Indenture, the “Indentures”), by and among the Issuers, the guarantors party thereto and the Trustee and U.S. Bank National Association, as collateral agent, governing the Issuers’ $1,825,000,000 6.625% Senior Notes due 2027 (the “Senior Notes” and, together with the Secured Notes, the “Notes”).  
For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by each of the parties hereto, the parties hereto, intending to be legally bound, do hereby agree as follows:
Section 1.    Definitions.  Capitalized terms, used but not defined herein, shall have the respective meanings specified in the applicable Indenture.
Section 2.    Appointment and Jurisdiction of Escrow Agent.
(a)    The Issuers hereby appoint U.S. Bank National Association as the escrow agent, the securities intermediary and bank hereunder in accordance with the terms and conditions set forth herein, and U.S. Bank National Association hereby accepts such appointments.
(b)    The Issuers, the Trustee and the Escrow Agent hereby agree that the “securities intermediary’s jurisdiction” of the Escrow Agent and the “bank’s jurisdiction” of the Escrow Agent is the State of New York for purposes of the Uniform Commercial Code in effect in New York State on the date hereof (the “New York UCC”), including Sections 9-304, 9-305 and 8-110 thereof.
Section 3.    The Escrowed Property.
(a)    On the date hereof (the “Closing Date”), 
(i)    pursuant to Section 4.17 of the Secured Notes Indenture, (x) the Issuers shall deposit (or cause to be deposited) with the Escrow Agent in the Secured Notes Escrow Deposit Account (as defined below) or the Secured Notes Escrow Securities Account (as defined below) $3,050,000,000.00 in cash, 

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representing the gross proceeds from the offering of the Secured Notes (the “Secured Notes Proceeds”) and (y) either (i) the Issuers will also deposit (or cause to be deposited) in cash in the Secured Notes Escrow Deposit Account or the Secured Notes Escrow Securities Account or (ii) Diamond Sports Intermediate Holdings, LLC, a Delaware limited liability company and parent company of the Issuers (“Holdings”), or its Affiliates will cause to be issued Letters of Credit (as defined below) for the benefit of the Escrow Agent, the Trustee and the Holders of the Secured Notes (or a combination of (i) and (ii)), in each case of (i) and (ii), in the amount of $13,661,458.33 (the “Secured Notes Interest Deposit”), representing, when taken together with the amount of the Secured Notes Proceeds deposited in the Secured Notes Escrow Accounts (as defined below), an amount sufficient (as reasonably determined by the Issuers taking into account investment income therefrom and proceeds thereof) to fund a Special Mandatory Redemption (as defined in the Secured Notes Indenture) of the Secured Notes on September 1, 2019 (the “Initial Outside Date”), if a Special Mandatory Redemption of the Secured Notes were to occur on such date, and the Escrow Agent acknowledges receipt of the Secured Notes Proceeds and the Secured Notes Interest Deposit; and
(ii)    pursuant to Section 4.17 of the Senior Notes Indenture, (x) the Issuers shall deposit (or cause to be deposited) with the Escrow Agent in the Senior Notes Escrow Deposit Account (as defined below) or the Senior Notes Escrow Securities Account (as defined below) $1,825,000,000.00 in cash, representing the gross proceeds from the offering of the Senior Notes (the “Senior Notes Proceeds”) and (y) either (i) the Issuers will also deposit (or cause to be deposited) in cash in the Senior Notes Escrow Deposit Account or the Senior Notes Escrow Securities Account or (ii) Holdings or its Affiliates will cause to be issued Letters of Credit for the benefit of the Escrow Agent, the Trustee and the Holders of the Senior Notes (or a combination of (i) and (ii)), in each case of (i) and (ii), in the amount of $10,075,520.83 (the “Senior Notes Interest Deposit”), representing, when taken together with the amount of the Senior Notes Proceeds deposited in the Senior Notes Escrow Accounts (as defined below), an amount sufficient (as reasonably determined by the Issuers taking into account investment income therefrom and proceeds thereof) to fund a Special Mandatory Redemption (as defined in the Senior Notes Indenture) of the Senior Notes on the Initial Outside Date, if a Special Mandatory Redemption of the Senior Notes were to occur on such date, and the Escrow Agent acknowledges receipt of the Senior Notes Proceeds and the Senior Notes Interest Deposit.
(b)    Unless (x) the Issuers have delivered a Release Notice (as defined below) to the Trustee and the Escrow Agent as set forth in Section 5(a), or (y) there has occurred a Special Mandatory Redemption Event (as defined below), the Issuers shall, from time to time, extend the Initial Outside Date by one calendar month upon each such extension (each such date to which the Initial Outside Date is extended to, an “Extended Outside Date”) by (x) at any time on or prior to 5:00 p.m. (New York City time) on (i) the date that is two (2) Business Days prior to the Initial Outside Date, with respect to the first extension, or (ii) the date that is two (2) Business Days prior to the latest Extended Outside Date, with respect to all subsequent extensions (each such date referred to in clause (i) or (ii), the “Deposit Date”), delivering a notice substantially in the form of Exhibit A (an “Extension Election”) to the Trustee and the Escrow Agent and (y) within one Business Day after the applicable Deposit Date, either (i) depositing (or causing to be deposited) in cash in the applicable Escrow Deposit Account or the applicable Escrow Securities Account or (ii) having Holdings or its Affiliates cause to be issued Letters of Credit for the benefit of the Escrow Agent and the Holders of the Secured Notes or the Senior Notes, as applicable (or a combination of (i) and (ii)), in each case of (i) and (ii), in an amount equal to the applicable Additional Amount (as defined below); provided that (A) if the Extended Outside Date then being extended is February 1, 2020, the new Extended Outside Date pursuant to such Extension Election shall be the Escrow End Date (as defined below), and (B) the Extended Outside Date shall in no event be a date later than the Escrow End Date.  Each Extension Election shall be executed by an Authorized Person (as defined below). Neither the Escrow Agent nor the Trustee shall be responsible for calculating the amounts required to be deposited as Additional Amounts, which calculations shall be the responsibility of the Issuers.

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“Additional Amount” means (i) in the case of the Secured Notes, an amount equal to one (1) month of interest that would accrue on the Secured Notes or, with respect to the Deposit Date immediately preceding February 1, 2020 only, an amount equal to the interest that would accrue on the Secured Notes from February 1, 2020 to, but excluding, February 3, 2020, and (ii) in the case of the Senior Notes, an amount equal to one (1) month of interest that would accrue on the Senior Notes or, with respect to the Deposit Date immediately preceding February 1, 2020 only, an amount equal to the interest that would accrue on the Secured Notes from February 1, 2020 to, but excluding, February 3, 2020 (in each case, as calculated on the basis of a 360 day year comprised of twelve 30-day months and otherwise in accordance with the terms of the applicable Indenture); provided that, in each case, the Additional Amount with respect to the Secured Notes or the Senior Notes shall be determined net of any amount in the applicable Escrow Account attributable to investment earnings from Eligible Escrow Investments made using the Escrowed Property in such Escrow Account.  
“Escrow End Date” means the earlier of (x) the date of the Escrow Release (as defined below) and (y) February 3, 2020.
“Letters of Credit” means one or more irrevocable letters of credit issued by an issuing bank under the Sixth Amended and Restated Credit Agreement, dated as of July 31, 2014, by and among Sinclair Television Group, Inc., the guarantors party thereto, JPMorgan Chase Bank, N.A., as administrative agent, the other lenders party thereto and the other agents party thereto (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), which Letters of Credit shall provide that the face amount thereof, which shall be denominated in U.S. Dollars, may be drawn at any time prior to the expiration thereof, which shall be no earlier than the Escrow End Date (without further conditions other than the delivery by the Escrow Agent of certification that a Special Mandatory Redemption Event has occurred and setting forth the amount by which the aggregate amount of cash required to be paid in respect of such Special Mandatory Redemption Event on the Special Mandatory Redemption Date exceeds the aggregate amount of cash in the Escrow Deposit Accounts), in each case subject to the terms and conditions set forth in the Credit Agreement.
(c)    The deposits and letter-of-credit rights (as such term is defined in the New York UCC) made pursuant to subsections (a) and (b) above, the Escrow Deposit Accounts and the Escrow Securities Accounts (each as defined below) and all cash, funds, investment property (as defined in Article 9 of the New York UCC) or securities now or hereafter credited to or deposited in the Escrow Accounts (as defined below), all investments of any of the foregoing, plus all interest, dividends and other distributions and payments on any of the foregoing received or receivable in respect of any of the foregoing, together with all proceeds of any of the foregoing, are collectively referred to herein as the “Escrowed Property.”
The Escrow Agent shall have no duty to take any actions with respect to the Escrowed Property unless directed by the Issuers in accordance with this Agreement. The Issuers certify that the Escrowed Property shall comply with the applicable provisions of the applicable Indenture. The Escrow Agent shall have no liability for any Escrowed Property, or for interest thereon, that remains unclaimed and/or is returned if written notification with respect to such unclaimed and/or returned Escrow Property is not given to the Escrow Agent subsequent to the date of this Agreement.
(d)    (i) Subject to and in accordance with the provisions hereof, the Escrow Agent agrees to hold (x) that portion of the Escrowed Property consisting of securities and investment property in one or more trust accounts in respect of each of the Secured Notes (the “Secured Notes Escrow Securities Account”) and the Senior Notes (the “Senior Notes Escrow Securities Account”) which is a “securities account” (as defined in Section 8-501 of the New York UCC) (collectively, the “Escrow Securities Accounts”), and (y) that portion 

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of the Escrowed Property consisting of cash in one or more accounts in respect of the Secured Notes (the “Secured Notes Escrow Deposit Account” and, together with the Secured Notes Escrow Securities Account, the “Secured Notes Escrow Accounts”) and in respect of the Senior Notes (the “Senior Notes Escrow Deposit Account” and, together with the Senior Notes Escrow Securities Account, the “Senior Notes Escrow Accounts”) which is a “deposit account” (as defined in Section 9-102(a)(29) of the New York UCC) (collectively, the “Escrow Deposit Accounts” and, together with the Escrow Securities Accounts and any successor account(s) or sub-account(s), the “Escrow Accounts”) established with the Escrow Agent.  
(A) Such securities account, in the case of the Secured Notes Escrow Securities Account, shall be maintained with the Escrow Agent in the name of: [

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(B) Such securities account, in the case of the Senior Notes Escrow Securities Account, shall be maintained with the Escrow Agent in the name of: [

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(C) Such deposit account, in the case of the Secured Notes Escrow Deposit Account, shall be maintained with the Escrow Agent in the name of: [

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(D) Such deposit account, in the case of the Senior Notes Escrow Deposit Account, shall be maintained with the Escrow Agent in the name of: [

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The parties agree that the Escrow Agent is a securities intermediary with respect to the Escrow Securities Accounts and intend that all securities held in the Escrow Securities Accounts shall be treated as 

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financial assets.  The parties further agree that the Escrow Agent is a bank with respect to the Escrow Deposit Accounts and that any Escrowed Property that consists of cash shall only be held in the Escrow Deposit Accounts.  In no event shall the Escrow Agent hold cash in the Escrow Securities Accounts or deem cash to be a financial asset.  The Escrow Agent makes no representation or warranties with respect to the creation or enforceability of any security interest in the Escrow Accounts or the Collateral.
The Escrow Accounts will be established with the Escrow Agent as provided above.  The Escrow Agent shall administer the Escrow Accounts in accordance with the provisions of this Agreement, including, without limitation, holding in escrow, investing and reinvesting and releasing or distributing the Escrowed Property.
(ii)    (A) As security for the due and punctual payment of the Special Mandatory Redemption Price (as defined in the Secured Notes Indenture) of the Secured Notes and the prompt and complete payment and performance by the Issuers of the Obligations under the Secured Notes Indenture (collectively, the “Secured Notes Secured Obligations”), the Issuers hereby pledge, assign and grant to the Trustee, for the benefit of the Trustee and the Holders of the Secured Notes, to secure the Secured Notes Secured Obligations, a security interest in all of their right, title and interest in, whether now owned by or owing to, or hereafter acquired by or arising in favor of the Issuers, in the Secured Notes Escrow Accounts, the other Escrowed Property, and all “financial assets” (as defined in Section 8-102(a)(9) of the New York UCC) credited thereto, “investment property” (as defined Article 9 of the New York UCC) credited thereto and proceeds of the foregoing, together with all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and any “general intangibles” (as defined in Article 9 of the New York UCC) at any time evidencing or relating to any of the foregoing (collectively, the “Secured Notes Collateral”), and (B) as security for the due and punctual payment of the Special Mandatory Redemption Price (as defined in the Senior Notes Indenture) of the Senior Notes and the prompt and complete payment and performance by the Issuers of the Obligations under the Senior Notes Indenture (collectively, the “Senior Notes Secured Obligations”), the Issuers hereby pledge, assign and grant to the Trustee, for the benefit of the Trustee and the Holders of the Senior Notes, to secure the Senior Notes Secured Obligations, a security interest in all of their right, title and interest in, whether now owned by or owing to, or hereafter acquired by or arising in favor of the Issuers, in the Senior Notes Escrow Accounts, the other Escrowed Property, and all “financial assets” (as defined in Section 8-102(a)(9) of the New York UCC) credited thereto, “investment property” (as defined Article 9 of the New York UCC) credited thereto and proceeds of the foregoing, together with all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and any “general intangibles” (as defined in Article 9 of the New York UCC) at any time evidencing or relating to any of the foregoing (collectively, the “Senior Notes Collateral” and, together with the Secured Notes Collateral, the “Collateral”).  The security interest of the Trustee granted pursuant hereto shall at all times be valid, perfected and enforceable as a first priority security interest.  The Issuers agree to take all steps necessary to maintain the security interest created by this Agreement as a perfected first-priority security interest (including, but not limited to, taking any action necessary to enable the Escrow Agent and Trustee to obtain “control” (within the meaning of the applicable section of the New York UCC) over any investment, property, deposit account, letter-of-credit rights and any other relevant collateral).  Without limiting the generality of the foregoing, the Issuers hereby authorize the Trustee (or its designated representative, which may include counsel to the Initial Purchasers) to file one or more UCC financing statements (including amendments thereto and continuations thereof) in such jurisdictions and filing offices and containing such description of Collateral as may be reasonably necessary in order to perfect the security interest granted herein, and the Issuers agree to file or to cause to be filed all such UCC financing statements in such jurisdictions and filing offices and containing such description of Collateral as is necessary in order to perfect the security interest granted herein; provided that the Trustee and the Escrow Agent shall have no obligation to file or monitor the filing of financing statements.  Any rights that the Trustee may have 

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under this Agreement shall not imply any obligations under this Agreement.  Diamond Sports Group represents and warrants that, as of the date hereof, its legal name is that set forth on the signature pages hereof, and that it is duly formed and validly existing as a limited liability company under the laws of the State of Delaware and is not organized under the laws of any other jurisdiction. The Co-Issuer represents and warrants that, as of the date hereof, its legal name is that set forth on the signature pages hereof, and that it is duly formed and validly existing as a corporation under the laws of the State of Delaware and is not organized under the laws of any other jurisdiction. Each of Diamond Sports Group and the Co-Issuer hereby agrees that, except in connection with the Transactions (as defined in the Final Offering Memorandum dated July 19, 2019, relating to the offering of the Notes), prior to the termination of this Agreement, it will not change its legal name, jurisdiction of organization, organizational identification number, if any, or chief executive office without giving the Trustee and the Initial Purchasers at least five (5) Business Days’ prior written notice thereof.
(iii)    The Escrow Agent hereby agrees that, prior to release from the Escrow Accounts, all Escrowed Property shall either be held as U.S. dollars (which shall be deposited in the applicable Escrow Deposit Account at the Escrow Agent) or invested in Eligible Escrow Investments (as defined below), in each case, as specified in writing (which may be in the form of an email that includes an executed direction) to the Escrow Agent by an Authorized Person (as defined below) of the Issuers, credited to the applicable Escrow Securities Account.  The Eligible Escrow Investments shall be liquidated in accordance with the written instructions of an Authorized Person of the Issuers (which may be in the form of an email that includes an executed direction). The Issuers and the Escrow Agent hereby agree that the Eligible Escrow Investments and any investment property, financial asset, security or instrument credited to the Escrow Securities Accounts shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the New York UCC.  For purposes of this Agreement, “Eligible Escrow Investments” means (1) Government Securities (as defined below) maturing no later than the Business Day preceding the Escrow End Date, (2) money market funds registered under the Investment Company Act of 1940, whose shares are registered under the Securities Act, and either rated “AAAm” or “AAAm-G” by S&P or rated “Aaa” by Moody’s, including any mutual fund for which the Escrow Agent or its affiliate serves as investment manager, administrator, shareholder servicing agent, and/or custodian, (3) U.S. dollar denominated deposit accounts with domestic national or commercial banks, including the Escrow Agent or an affiliate of the Escrow Agent, that have a short term issuer rating on the date of purchase of “A-1+” or “A-1” by S&P or “Prime-1” or better by Moody’s and maturing no more than 360 days after the date of purchase and (4) such other short-term liquid investments in which the Escrowed Property may be invested in accordance with this Agreement.  For purposes of this Agreement, “Government Securities” means securities that are (1) direct obligations of the United States of America for the timely payment of which its full faith and credit is pledged; or (2) obligations unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuers thereof, and shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with respect to any such Government Securities or a specific payment of principal of or interest on any such Government Securities held by such custodian for the account of the holder of such depository receipt.  Notwithstanding any other provision in this Agreement, the Escrow Agent agrees to comply with (x) any entitlement order (as such term is defined in Section 8-102(a)(8) of the New York UCC) originated by the Trustee acting on the written directions of the Holders of the Secured Notes in accordance with the Secured Notes Indenture, with respect to any financial asset credited to the Secured Notes Escrow Securities Account or acting on the written directions of the Holders of the Senior Notes in accordance with the Senior Notes Indenture, with respect to any financial asset credited to the Senior Notes Escrow Securities Account, or (y) any instructions originated by the Trustee acting on the written directions of the Holders of the Secured Notes in accordance with the Secured Notes Indenture, with respect to any cash deposited in the Secured Notes Escrow Deposit Account or acting on the written directions of the Holders of the Senior Notes in accordance with the Senior Notes Indenture, with 

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respect to any cash deposited in the Senior Notes Escrow Deposit Account, in each case without further consent by the Issuers or any other person.  The Escrow Agent represents and warrants that it has not entered into, and agrees that it will not enter into, any control agreement, other than this Agreement and the Indentures and documents related thereto, relating to the Escrow Accounts or the other Escrowed Property with any other third party.  The Trustee hereby agrees with the Issuers that the Trustee shall not give any entitlement orders or instructions, as applicable, unless it has received confirmation that the conditions in the applicable Indenture requiring that the Issuers effect a Special Mandatory Redemption of the Secured Notes and/or the Senior Notes, as applicable, shall have occurred or as otherwise permitted pursuant to Section 5 hereof.
(iv)    Upon the release of any Escrowed Property pursuant to Section 5 hereof, the security interest of the Trustee for its benefit and the benefit of the Holders of the Notes in the Collateral shall automatically terminate without any further action and the Escrowed Property shall be delivered to the applicable recipient pursuant to Section 5 free and clear of any and all liens, claims or encumbrances of any Person; provided that to the extent that any fees, expenses or costs incurred by, or any obligations owed to the Escrow Agent or the Trustee hereunder are not promptly paid when due, such party may reimburse itself therefor from the Escrowed Property and may sell, convey or otherwise dispose of any Escrowed Property for such purpose.  Upon any such termination, the Trustee hereby authorizes the Issuers to take all steps reasonably necessary to terminate any UCC financing statements filed with respect to the Collateral pursuant to this Section 3 that have not been terminated and the Trustee shall execute at the sole cost and expense of the Issuers such other documents without recourse, representation or warranty of any kind as the Issuers may reasonably request in writing to evidence or confirm the termination of such security interest.
Section 4.    Investment of the Escrowed Property; Income Tax Reporting.
(a)    During the term of this Agreement, the Escrow Agent shall, at the written direction of one of the authorized representatives of the Issuers identified on Schedule I hereto (which schedule certifies as to the incumbency and specimen signature of each officer or other representative of such party authorized to act for and give and receive notices, requests and instructions), as such Schedule I may be amended from time to time as provided in Section 9(g) hereof (each, an “Authorized Person”), invest and reinvest all or any part of the Escrowed Property in Eligible Escrow Investments or deposit all or any part of the Escrowed Property in the applicable Escrow Deposit Account with the Escrow Agent, and the Escrow Agent shall invest and deposit the Escrowed Property in accordance with such instructions.  Anything herein to the contrary notwithstanding, the parties hereto agree that all of the Escrowed Property, other than any Escrowed Property that may be invested in Eligible Escrow Investments or held in the applicable Escrow Securities Account, shall be held in the applicable Escrow Deposit Account with the Escrow Agent.
(b)    The Escrow Agent shall have no obligation to invest or reinvest the Escrowed Property if deposited with the Escrow Agent after 11:00 a.m. (New York City time) on such day of deposit until the next Business Day.  For purposes of this Section 4, instructions received after 11:00 a.m. (New York City time) may be treated by the Escrow Agent as if received on the following Business Day.  The Escrow Agent shall have no responsibility for any investment losses resulting from the investment, reinvestment or liquidation of the Escrowed Property to the extent such investment, reinvestment or liquidation is made in compliance with the terms of this Agreement.  Any interest or other income received on such investment and reinvestment of the Escrowed Property shall become part of the Escrowed Property and any losses incurred on such investment and reinvestment of the Escrowed Property shall be debited against the Escrowed Property.  If a selection is not made and a written direction not given to the Escrow Agent, the Escrowed Property deposited in cash shall remain uninvested with no liability for interest thereon.  Notwithstanding the foregoing, the Escrow Agent shall have the power to sell or liquidate the foregoing 

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investments whenever the Escrow Agent shall be required to release all or any portion of the Escrowed Property pursuant to Section 5 hereof.  In no event shall the Escrow Agent be deemed an investment manager or adviser in respect of any selection of investments hereunder.  The Escrow Agent shall have no liability for any loss sustained as a result of any investment selected in accordance with the terms of this Agreement or made pursuant to the written instructions of the Issuers, as a result of any liquidation of any investment prior to its maturity or for failure of the Issuers to give the Escrow Agent instructions to invest or reinvest the Escrowed Property.
(c)    The Escrow Agent does not have any interest in the Escrowed Property but is serving as escrow holder only and having only possession thereof.  The Issuers, jointly and severally, shall be obligated to and shall pay or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrowed Property incurred in connection herewith and shall jointly and severally indemnify and hold harmless the Escrow Agent for any amounts that it is obligated to pay in the way of such taxes.  Any payments of income from the Escrow Accounts shall be subject to withholding regulations then in force with respect to United States taxes.  The parties hereto will provide the Escrow Agent with appropriate W-9 forms for tax I.D., number certifications, or W-8 forms for non-resident alien certifications, and will inform the Escrow Agent as to the proper allocation of income in respect of the Escrowed Property for annual and periodic tax and other reporting purposes.  It is understood that the Escrow Agent shall be responsible for income reporting only with respect to income earned on investment of funds which are a part of the Escrowed Property and is not responsible for any other reporting.  The Issuers shall indemnify, defend and hold the Escrow Agent harmless from and against any tax, late payment, interest, penalty or other cost or expense that may be assessed against the Escrow Agent on or with respect to the Escrowed Property and the investment thereof unless such tax, late payment, interest, penalty or other expense was directly caused by the gross negligence or willful misconduct of the Escrow Agent.  The indemnification provided by this Section 4(c) is in addition to the indemnification provided in Section 8(a) hereof and shall survive the resignation or removal of the Escrow Agent and the termination of this Agreement.
Section 5.    Distribution of Escrowed Property.  The Escrow Agent is directed to distribute the Escrowed Property in the following manner:
(a)    If at any time on or prior to the Escrow End Date, the Escrow Agent receives (i) written notice from the Issuers of the intention to effect an Escrow Release (as defined below) (which Escrow Release shall be dated at least one (1) Business Day after the date of such written notice), (ii) an officer’s certificate from the Issuers substantially in the form of Exhibit B hereof, and dated the date of delivery thereof, executed by an Authorized Person and certifying to the Escrow Agent as to the matters set forth therein (an “Officer’s Certificate”) (the date of delivery of such Officer’s Certificate to the Escrow Agent is hereinafter called the “Escrow Release Date”) and (iii) a written notice substantially in the form of Exhibit C hereto, executed by an Authorized Person of each of the Issuers (a “Release Notice”), the Escrow Agent shall liquidate and release the applicable Escrowed Property (the “Escrow Release”) (by initiation of a wire transfer of immediately available funds) as directed and in the manner set forth in the Release Notice from the Issuers; provided that, notwithstanding the foregoing, in the event that the Escrow Agent receives an Officer’s Certificate and a Release Notice contemplated in the foregoing clauses (a)(ii) and (iii) on a Business Day, the Escrow Agent shall, not later than the time set forth in such Release Notice, liquidate and release the applicable Escrowed Property (by initiation of a wire transfer of immediately available funds) as directed and by the time and in the manner set forth in the Release Notice (provided that the time set forth in the Release Notice shall be (x) no earlier than the time that the Federal Reserve System will permit such wire transfer of immediately available funds to be made, (y) no earlier than 60 minutes following the time such Release Notice is received by the Escrow Agent and (z) at least 30 minutes prior to the last time that the Federal Reserve System will permit such wire transfer of immediately available funds to be made; provided further, that the Escrow Agent 

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shall not release or deliver any Escrowed Property if the Release Notice referenced in clause (iii) above is not received).
(b)    If (A) the Escrow Agent shall not have received pursuant to subsection (a) of this Section 5 an Officer’s Certificate from the Issuers substantially in the form of Exhibit B hereto on or prior to the Escrow End Date or (B) the Issuers shall have notified the Trustee and the Escrow Agent in writing pursuant to a Release Notice that the Issuers will not pursue the consummation of the Acquisition (each of the events described in the foregoing clauses (A) and (B) of this subsection, a “Special Mandatory Redemption Event”), the Escrow Agent shall release and deliver (by wire transfer of immediately available funds or via internal transfer) (and, if necessary in connection therewith, make a drawing on any Letters of Credit, which drawing shall not in the aggregate exceed the amount set forth in the certification required by the terms of the Letters of Credit, such amount representing the amount by which the aggregate amount of cash required to be paid in respect of such Special Mandatory Redemption Event on the Special Mandatory Redemption Date exceeds the aggregate amount of cash in the Escrow Deposit Accounts after liquidating to cash the Escrow Securities Accounts and transferring such cash to the Escrow Deposit Accounts) the Escrowed Property (including investment earnings thereon and proceeds thereof) to the Trustee pursuant to the wire and delivery instructions provided on Schedule II hereto, as such Schedule II may be amended by the Trustee from time to time in accordance with the provisions of Section 9(g) hereof, not later than 10:00 a.m. (New York City time) on the third Business Day succeeding (x) the Escrow End Date (in the case of clause (A) of this subsection) or (y) the date of such Release Notice (in the case of clause (B) of this subsection), and the Issuers shall effect a Special Mandatory Redemption, and the Trustee agrees to apply, or cause a Paying Agent to apply (i) the funds in the Secured Notes Escrow Accounts to redeem all of the Secured Notes at the Special Mandatory Redemption Price on the Special Mandatory Redemption Date in accordance with the provisions of the Secured Notes Indenture and the Secured Notes and (ii) the funds in the Senior Notes Escrow Accounts to redeem all of the Senior Notes at the Special Mandatory Redemption Price on the Special Mandatory Redemption Date in accordance with the provisions of the Senior Notes Indenture and the Senior Notes.  None of the Escrow Agent, the Trustee or the applicable Paying Agent shall be responsible for calculating amounts to be disbursed hereunder, and each shall be entitled to rely on written instructions from the Issuers delivered in accordance with this Agreement, which instructions shall include wiring instructions, if not provided for herein or in certificates delivered pursuant to this Agreement.  On the Special Mandatory Redemption Date, (i) if the Escrowed Property (including investment earnings thereon and proceeds thereof) exceeds the amount necessary to effect the Special Mandatory Redemption of the Secured Notes or the Senior Notes, as applicable, the Trustee shall pay such remaining amounts to the Issuers and (ii) if the Escrowed Property (including investment earnings thereon and proceeds thereof) is insufficient to effect the Special Mandatory Redemption of the Secured Notes or the Senior Notes, as applicable, the Issuers shall immediately fund such deficit to the Trustee in order to effect the applicable Special Mandatory Redemption of such Notes.
(c)    If this Agreement remains in effect with Escrowed Property remaining in  the Escrow Accounts established hereunder, and (1) the Issuers have not delivered an Officer’s Certificate described under clause (a) above or (2) a Special Mandatory Redemption Event has not occurred, in each case, prior to (x) with respect to the Secured Notes, 5:00 p.m. (New York City time) on February 14, 2020, the Escrow Agent shall by no later than 10:00 a.m. (New York City time) on February 17, 2020, without any action of Issuers, transfer to the Trustee, in immediately available funds, Escrowed Property from the Secured Notes Escrow Accounts in an amount in cash equal to the interest payment due on the Secured Notes on such date and (y) with respect to the Senior Notes, 5:00 p.m. (New York City time) on February 14, 2020, the Escrow Agent shall by no later than 10:00 a.m. (New York City time) on February 17, 2020, without any action of Issuers, transfer to the Trustee, in immediately available funds, Escrowed Property from the Senior Notes Escrow Accounts in an amount in cash equal to the interest payment due on the Senior Notes on such date.  

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The Trustee shall, without any action of the Issuers, pay to the Paying Agent such amounts received by it from the Escrow Agent pursuant to the immediately preceding sentence for payment to the Holders of the Secured Notes or the Senior Notes, as applicable, in accordance with the provisions of the applicable Indentures and the Notes.
Section 6.    Termination.  This Agreement shall terminate upon the distribution of all Escrowed Property from the Escrow Accounts established hereunder.  The provisions of Sections 4(c), 7, 8 and 9 hereof shall survive the termination of this Agreement and the earlier resignation or removal of the Escrow Agent.
Section 7.    Duties of the Escrow Agent.
(a)    Scope of Responsibility.  Notwithstanding any provision to the contrary, the Escrow Agent is obligated only to perform the duties specifically set forth in this Agreement, which shall be deemed purely ministerial in nature.  Under no circumstances will the Escrow Agent be deemed to be a fiduciary to any party hereto or any other person under this Agreement.  The Escrow Agent will not be responsible or liable for the failure of any party hereto to perform in accordance with this Agreement.  The Escrow Agent shall neither be responsible for, nor chargeable with, knowledge of the terms and conditions of any other agreement, instrument, or document other than this Agreement, whether or not an original or a copy of such agreement has been provided to the Escrow Agent, and the Escrow Agent shall have no duty to know or inquire as to the performance or nonperformance of any provision of any such other agreement, instrument, or document.  References in this Agreement to any other agreement, instrument, or document are for the convenience of the parties hereto, and the Escrow Agent has no duties or obligations with respect thereto.  This Agreement sets forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall be inferred or implied from the terms of this Agreement or any other agreement.
(b)    Attorneys and Agents.  The Escrow Agent shall be entitled to rely on and shall not be liable for any action taken or omitted to be taken in good faith by the Escrow Agent in accordance with the advice of counsel retained or consulted by the Escrow Agent at the expense of the Issuers in accordance with Section 8(d) hereof.  In no event shall the Escrow Agent be liable (i) for the acts and omissions of its nominees, correspondents, designees, subagents or subcustodians selected by it in good faith and with due care, or (ii) for an amount in excess of the value of the Escrowed Property.
(c)    Reliance.  The Escrow Agent shall not be liable for any action taken or not taken by it or for any loss or injury resulting from its actions or its performance or lack of performance of its duties in good faith in accordance with the direction or consent of the parties hereto or any entity acting on behalf of the Issuers or any other Person or entity it reasonably believes to be genuine or their respective agents, representatives, successors, or assigns.  The Escrow Agent shall be entitled to conclusively rely on and shall not be liable for acting or refraining from acting upon any notice, request, consent, direction, requisition, certificate, order, affidavit, letter, or other paper or document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper person or persons and instructing it to so act or refrain from acting, without further inquiry into the person’s or persons’ authority.
(d)    Right Not Duty Undertaken.  The permissive rights of the Escrow Agent to do things enumerated in this Agreement shall not be construed as duties.
(e)    No Financial Obligation.  No provision of this Agreement shall require the Escrow Agent to risk or advance its own funds or otherwise incur any financial liability or potential financial liability in the performance of its duties or the exercise of its rights under this Agreement.

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Section 8.    Provisions Concerning the Escrow Agent.
(a)    Indemnification.  The Issuers, jointly and severally, shall indemnify, defend, reimburse and hold harmless the Escrow Agent and its affiliates and the Escrow Agent’s and such affiliates’ respective directors, officers, employees and agents from and against any and all loss, liability, cost, damage and expense, including, without limitation, reasonable fees and documented out-of-pocket costs of legal counsel, which the Escrow Agent may suffer or incur by reason of any action, claim or proceeding brought against the Escrow Agent, arising out of or relating in any way to this Agreement or any transaction to which this Agreement relates, unless such loss, liability, cost, damage or expense shall have been caused by the gross negligence or willful misconduct of the Escrow Agent as determined by a court of competent jurisdiction.  The provisions of this Section 8(a) shall survive the resignation or removal of the Escrow Agent and the termination of this Agreement.  The Escrow Agent shall notify the Issuers promptly of any claim against the Escrow Agent of which the Escrow Agent has received notice for which it may seek indemnity.  The Issuers shall be entitled to participate at their own expense in the defense of any such claim or other action and, if the Issuers so elect, the Issuers shall assume the defense of any suit brought to enforce any such claim.  In the event the Issuers assume the defense of any such suit, the Issuers shall not be liable for the fees and expenses incurred thereafter by any counsel retained by the Escrow Agent, so long as the Issuers shall retain counsel reasonably satisfactory to the Escrow Agent; provided that the Issuers shall not be entitled to assume the defense of any such action if the named parties to such action include both the Escrow Agent and the Issuers and the representation of both parties by the same counsel would, in the written opinion of the Escrow Agent’s counsel, be inappropriate due to conflicting interests between the Escrow Agent and the Issuers.  The Issuers need not pay or indemnify for any settlement made without its written consent (which consent shall not be unreasonably withheld).  Notwithstanding anything herein to the contrary, the Issuers shall not be liable for the fees and expenses of more than one counsel for the Escrow Agent (and one local counsel in each applicable jurisdiction). The Issuers need not reimburse any expense or indemnify against any loss, liability, cost, damage, claim or expense to the extent caused by any gross negligence or willful misconduct of the Escrow Agent, any predecessor Escrow Agent, or any of their respective employees, affiliates, officers, stockholders or directors as determined by a court of competent jurisdiction.
(b)    Limitation of Liability.  The Escrow Agent shall not be liable, directly or indirectly, for any (A) damages, losses or expenses arising out of the services provided hereunder, or (B) special, indirect or consequential damages or losses of any kind whatsoever (including without limitation lost profits), even if the Escrow Agent has been advised of the possibility of such losses or damages and regardless of the form of action, in each case, other than damages, losses or expenses which have directly resulted from the gross negligence or willful misconduct of the Escrow Agent, any predecessor Escrow Agent, or any of their respective employees, affiliates, officers, stockholders or directors as determined by a court of competent jurisdiction.
(c)    Resignation or Removal.  The Escrow Agent may resign by furnishing written notice of its resignation to the Issuers and the Trustee, and the Issuers may remove the Escrow Agent by furnishing to the Escrow Agent 30 days written notice of its removal along with payment of all fees and expenses to which it is entitled through the date of termination.  Within 10 Business Days after giving the notice of removal to the Escrow Agent or receiving the notice of resignation from the Escrow Agent, in each case pursuant to this Section 8(c), the Issuers shall appoint a successor Escrow Agent.  If a successor Escrow Agent has not accepted such appointment by the end of such period, the Escrow Agent may, in its sole discretion, deliver the Escrowed Property to either Issuer at the address provided herein or apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent or for other appropriate relief.  The costs and 

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expenses (including reasonable fees and documented out-of-pocket costs of legal counsel) incurred by the Escrow Agent in connection with such proceeding shall be paid by, and be deemed joint and several obligations of, the Issuers.  Upon receipt of the identity of the successor Escrow Agent, the Escrow Agent shall either deliver the Escrowed Property then held hereunder to the successor Escrow Agent, less the Escrow Agent’s fees, costs and expenses or other obligations owed to the Escrow Agent, or hold such Escrowed Property (or any portion thereof), pending distribution, until all such fees, costs and expenses or other obligations are paid.  Upon delivery of the Escrowed Property to such successor Escrow Agent or the Issuers or in accordance with the instructions of a court of competent jurisdiction, the Escrow Agent shall have no further duties, responsibilities or obligations hereunder.
(d)    Compensation.  The Escrow Agent shall be entitled to such compensation for its services as the Issuers and the Escrow Agent shall from time to time agree in writing, which compensation shall be paid by, and be deemed joint and several obligations of, the Issuers.  The Issuers shall additionally be jointly and severally obligated to pay all activity and investment charges as per the Escrow Agent’s (or, in the case of execution of investment orders, executing parties’) then-current schedule for such charges.  The Issuers shall be jointly and severally responsible for and shall reimburse the Escrow Agent upon demand for all reasonable expenses, disbursements and advances incurred or made by the Escrow Agent in connection with this Agreement, including, without limitation, the reasonable costs, expenses and disbursements of legal counsel for the Escrow Agent; provided, however, that that the Issuers need not reimburse any expense to the extent any loss or expenses are the result of any gross negligence or willful misconduct of the Escrow Agent, any predecessor Escrow Agent, or any of their respective employees, affiliates, officers, stockholders or directors as determined by a court of competent jurisdiction.
(e)    Disagreements.  Subject to the sixth sentence of Section 3(d)(iii), if any conflict, disagreement or dispute arises between, among, or involving any of the parties hereto concerning the meaning or validity of any provision hereunder or concerning any other matter relating to this Agreement, or legal counsel to the Escrow Agent has advised the Escrow Agent that there is reasonable doubt as to the action to be taken hereunder, the Escrow Agent may, in its sole discretion, refuse to comply with any and all claims, demands or instructions with respect to the Escrowed Property so long as such dispute or conflict shall continue and the Escrow Agent shall not be or become liable in any way to either Issuer for failure or refusal to comply with such conflicting claims, demands or instructions, retain the Escrowed Property and refuse to act until the Escrow Agent (A) receives a final non-appealable order of a court of competent jurisdiction or a final non-appealable arbitration decision directing delivery of the Escrowed Property, in which event the Escrow Agent shall disburse the Escrowed Property in accordance with such final court order or arbitration decision, (B) receives a written agreement executed by the Issuers and the Trustee, in which event the Escrow Agent shall disburse the Escrowed Property in accordance with the written instructions of the Issuers and the Trustee, (C) receives security or an indemnity reasonably satisfactory to it sufficient to hold it harmless against any losses that it may incur by reason of so acting, in which event the Escrow Agent shall disburse the Escrowed Property in accordance with the instruction so given or (D) files an interpleader action in any court of competent jurisdiction (provided that, anything herein to the contrary notwithstanding, the Escrow Agent shall continue to hold the Escrowed Property in accordance with this Agreement during the pendency of such interpleader action and any appeals thereof) and shall be entitled to reimbursement of reasonable fees and documented out-of-pocket expenses of one separate firm of legal counsel incurred in commencing and maintaining any such interpleader action; provided that the Issuers need not reimburse any expense to the extent any loss or expenses are the result of any gross negligence or willful misconduct of the Escrow Agent, any predecessor Escrow Agent, or any of their respective employees, affiliates, officers, stockholders or directors as determined by a court of competent jurisdiction.  Subject to the first proviso to the immediately preceding sentence, the Escrow Agent shall be entitled to act on any such agreement, court order, or arbitration decision without further question, inquiry, or consent.

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(f)    Merger or Consolidation.  Any corporation, association or other entity into which the Escrow Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business and assets, or any corporation, association or other entity resulting from any such conversion, sale, merger, consolidation or transfer to which the Escrow Agent is a party, shall be and become the successor Escrow Agent under this Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution or filing of any instrument or paper or the performance of any further act.
(g)    Attachment of Escrowed Property; Compliance with Legal Orders.  In the event that any Escrowed Property shall be attached, garnished or levied upon by any court order, or the delivery thereof shall be stayed or enjoined by an order of a court, or any order, judgment or decree shall be made or entered by any court order affecting the Escrowed Property, the Escrow Agent shall promptly notify the Issuers and the Trustee, and the Issuers may defend against, appeal or contest such order, judgment or decree and the Escrow Agent shall cooperate in such defense, appeal or contest; provided that nothing herein shall prevent the Escrow Agent from complying with all writs, orders or decrees which it is advised by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction, unless such writ, order or decree is being contested or appealed by appropriate proceedings.  In the event that the Escrow Agent obeys or complies with any such writ, order or decree it shall not be liable to any of the parties or to any other person, firm or corporation, should, by reason of such compliance notwithstanding, such writ, order or decree be subsequently reversed, modified, annulled, set aside or vacated.
(h)    Force Majeure.  The Escrow Agent shall not be responsible or liable for any failure or delay in the performance of its obligation under this Agreement arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including acts of God, earthquakes, fire, flood, wars, acts of terrorism, civil or military disturbances, sabotage, epidemic, riots, interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications services, accidents, labor disputes, acts of civil or military authority or governmental action or the unavailability of the Federal Reserve Bank wire or telex or other wire or telecommunication facility; it being understood that the Escrow Agent shall use commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as reasonably practicable under the circumstances.
Section 9.    Miscellaneous.  
(a)    This Agreement embodies the entire agreement and understanding among the parties relating to the subject matter hereof.  This Agreement is for the exclusive benefit of the parties hereto and their respective successors hereunder, and shall not be deemed to give, either expressed or implied, any legal or equitable right, remedy or claim to any other entity or person whatsoever.
(b)    This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and construed in accordance with the laws of the State of New York.
(c)    Each of the parties hereto hereby submits to the exclusive jurisdiction of any U.S. federal or state court located in the Borough of Manhattan, the City and County of New York in any action, suit or proceeding arising out of or relating to or based upon this Agreement or any of the transactions contemplated hereby, and each of the parties hereto hereby irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding in any such court arising out of or relating to this Agreement or the transactions contemplated hereby and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding has been brought in an inconvenient forum.  To the fullest extent permitted by applicable law, each party further waives personal service of any summons, 

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complaint or other process and agrees that service thereof may be made by certified or registered mail, return receipt requested, directed to such person at such person’s address for purposes of notices hereunder and such service shall be deemed completed ten (10) calendar days after the same is so mailed.
(d)    All notices, requests, demands, and other communications required under this Agreement shall be in writing, in English, and shall be deemed to have been duly given if delivered (A) personally, (B) by facsimile transmission with written confirmation of receipt, (C) by overnight delivery with a reputable national overnight delivery service, (D) by mail or by certified mail, return receipt requested, and postage prepaid or (E) by e-mail when transmitted without notice of a failed delivery.  If any notice is mailed (other than by overnight delivery), it shall be deemed given five (5) Business Days after the date such notice is deposited in the United States mail.  If notice is given to a party, it shall be given at the address, facsimile number or email address for such party specified below.  It shall be the responsibility of the parties to notify one another in writing of any name or address, facsimile number or email address changes.  In the case of communications delivered to the Escrow Agent, such communications shall be deemed to have been given on the date actually received by the Escrow Agent’s Escrow Unit.
If to the Issuers:
Diamond Sports Group, LLC 
    10706 Beaver Dam Road
Hunt Valley, Maryland 21030 
    Attention: Lucy Rutishauser; Justin Bray 
    Email: [      ]; [     ]
If to the Escrow Agent or Trustee:
U.S. Bank National Association
Corporate Trust Services, 18th Floor
1021 East Cary Street, Suite 1850
Richmond, Virginia 23219 
    Attention: Melody Scott
Email: melody.scott@usbank.com 

Notwithstanding the foregoing, any notice given to the Trustee hereunder shall also be deemed to have been given if sent in the manner provided in the applicable Indenture.  The Escrow Agent is authorized to comply with and rely upon any notices, instructions or other communications believed by it to have been sent or given by either Issuer or by a person or persons authorized by an Issuer, including persons identified on Authorized Persons schedules delivered pursuant to Section 4 of this Agreement.  Whenever under the terms hereof the time for giving a notice or performing an act falls upon a Saturday, Sunday, or banking holiday, such time shall be extended to the next Business Day.
(e)    The headings of the Sections of this Agreement have been inserted for convenience and shall not modify, define, limit or expand the express provisions of this Agreement.
(f)    This Agreement and the rights and obligations hereunder of parties hereto may not be assigned except with the prior written consent of the other parties hereto.  Any such assignment made without such consent shall be null and void for all purposes.  This Agreement shall be binding upon and inure to the benefit of each party’s respective successors and permitted assigns.  Except as expressly provided herein, no Person other than the parties hereto and the Holders of the Notes shall acquire or have any rights under 

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or by virtue of this Agreement.  This Agreement is intended to be for the sole benefit of the parties hereto, and (subject to the provisions of this Section 9(f)) their respective successors and permitted assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be, for the benefit of any third person other than the Holders of the Notes.
(g)    This Agreement may not be amended, supplemented or otherwise modified without the prior written consent of the parties hereto.  Notwithstanding the foregoing, Schedule I and Schedule II hereto may be amended from time to time by written notice from the Issuers and the Trustee, respectively, to the other parties hereto and as so amended from time to time shall be deemed part of this Agreement and to have replaced and superseded Schedule I or Schedule II, as the case may be, as previously in effect.
(h)    The Escrow Agent makes no representation as to the form, execution, validity, value, genuineness or the collectability of any document, security, instrument or endorsement held by or delivered to it or for any description therein or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document, security, instrument or endorsement.
(i)    This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.
(j)    To the fullest extent permitted by applicable law, each right and remedy conferred upon the parties hereto shall be cumulative, and the exercise or waiver of any such right or remedy shall not preclude or inhibit the exercise of any additional rights or remedies.  To the fullest extent permitted by applicable law, the waiver of any right or remedy hereunder shall not preclude the subsequent exercise of such right or remedy.
(k)    The Issuers hereby represent and warrant (A) that this Agreement has been duly authorized, executed and delivered on their behalf and constitutes their legal, valid and binding obligation and (B) that the execution, delivery and performance of this Agreement by the Issuers does not and will not violate any material law or regulation binding on the Issuers.
(l)    To the fullest extent permitted by applicable law, the invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision and if any provision is held to be unenforceable as a matter of law, the other provisions shall not be affected thereby and shall remain in full force and effect.
(m)    The Escrow Agent shall confirm each funds transfer instruction received in the name of the Issuers by a telephone call-back procedure (or such other security procedure then in effect) to one or more of the persons listed on Schedule I attached hereto, which upon receipt by the Escrow Agent shall become a part of this Agreement.  Once delivered to the Escrow Agent, Schedule I may be revised or rescinded only by a writing signed by an Authorized Person.  Such revisions or rescissions shall be effective only after actual receipt and following such period of time as may be necessary to afford the Escrow Agent a reasonable opportunity to act on it.  If a revised Schedule I or a rescission of an existing Schedule I is delivered to the Escrow Agent by an entity that is a successor-in-interest to an Issuer, such document shall be accompanied by additional reasonable documentation satisfactory to the Escrow Agent showing that such entity has succeeded to the rights and responsibilities of the party under this Agreement.  The parties understand that the Escrow Agent’s inability to receive or confirm funds transfer instructions pursuant to the security procedure selected by such party may result in a delay in accomplishing such funds transfer, and agree that the Escrow Agent shall not be liable for any loss caused by any such delay.

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(n)    EACH OF THE ISSUERS, THE ESCROW AGENT AND THE TRUSTEE 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 THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
(o)    Each of the Escrow Agent and the Trustee (each, an “Applicable Party”) agrees to accept and act upon instructions or directions pursuant to this Agreement sent by the Issuers by unsecure e-mail, pdf, facsimile transmission or other similar unsecure electronic methods, provided, however, that such Applicable Party shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons (it being understood and agreed by the Applicable Parties that the incumbency certificate in the form attached as Schedule I hereto, as the same may be amended from time to time, satisfies the foregoing requirement), which incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing.  No Applicable Party shall be liable for any losses, costs or expenses arising directly or indirectly from such Applicable Party’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with written instructions subsequently received by such Applicable Party.  The Issuers agree to assume all risks arising out of the use of such electronic methods to submit instructions and directions to any Applicable Party, including without limitation the risk of interception and misuse by third parties.
(p)    Anything in this Agreement to the contrary notwithstanding, the Trustee and the Escrow Agent shall at all times be the same entity and none of them shall resign or be removed unless all of them concurrently resign or are removed and, in such event, they must all be replaced by the same entity.
(q)    In connection with its execution hereof and in the performance of its obligations hereunder, the Trustee shall be entitled to all of the rights, benefits, protections, indemnities and immunities afforded to it pursuant to the applicable Indenture.
(r)    The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act, the Escrow Agent and the Trustee, in order to help fight the funding of terrorism and prevent money laundering, are required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Escrow Agent and the Trustee.  The parties to this Agreement agree that they will provide the Escrow Agent and the Trustee with such information as they may request in order for the Escrow Agent and the Trustee to satisfy the requirements of the USA PATRIOT Act, including, but not limited to, information as to name, physical address, tax identification number and other information that will help the Escrow Agent to identify and verify the Issuers such as organizational documents, certificates of good standing, licenses to do business or other pertinent identifying information.  The Issuers understand and agree that the Escrow Agent cannot open the Escrow Accounts in accordance with applicable law unless and until the Escrow Agent verifies the identities of the Issuers in accordance with its Customer Identification Program under the USA PATRIOT Act.
(s)    Escrow Agent’s Reliance on Orders, Etc.  If at any time the Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process which in any way affects Escrowed Property (including, but not limited to, orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of Escrowed Property), the Escrow Agent is authorized to comply therewith in any manner as it or legal counsel of its choosing deems appropriate; and if the Escrow Agent complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process, the Escrow Agent shall not be liable to any 

16

of the parties hereto or to any other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect.
(t)    Collections.  Unless otherwise specifically set forth herein, the Escrow Agent shall proceed as soon as practicable to collect any checks or other collection items at any time deposited hereunder.  All such collections shall be subject to the Escrow Agent’s usual collection practices or terms regarding items received by the Escrow Agent for deposit or collection.  The Escrow Agent shall not be required, or have any duty, to notify anyone of any payment or maturity under the terms of any instrument deposited hereunder, or to take any legal action to enforce payment of any check, note or security deposited hereunder or to exercise any right or privilege which may be afforded to the holder of any such security.
(u)    Statements.  The Escrow Agent shall provide to the Issuers statements (not less frequently than monthly) reflecting activity in the Escrow Accounts for the preceding period.  No statement need be provided for periods in which no Escrow Account activity occurred.  Each such statement shall be deemed to be correct and final upon receipt thereof by the Issuers unless the Escrow Agent is notified in writing to the contrary within 30 Business Days of the delivery date of such statement.
(v)    Shareholder Communication Act, Etc. With respect to securities issued in the United States, the Shareholders Communications Act of 1985 (the “Act”) requires the Escrow Agent to disclose to the issuers of registered securities (the “registrants”), upon their request, the name, address and securities position of the Issuers who are (a) the “beneficial owners” (as defined in the Act) of the registrants’ securities, if the beneficial owner does not object to such disclosure, or (b) acting as a “respondent bank” (as defined in the Act) with respect to the securities. (Under the Act, “respondent banks” do not have the option of objecting to such disclosure upon the registrants’ request.) The Act defines a “beneficial owner” as any person who has, or shares, the power to vote a security (pursuant to an agreement or otherwise), or who directs the voting of a security. The Act defines a “respondent bank” as any bank, association or other entity that exercises fiduciary powers which holds securities on behalf of beneficial owners and deposits such securities for safekeeping with a bank, such as Escrow Agent. Under the Act, the Issuers are either the “beneficial owner” or a “respondent bank.” 
		
	[x]
	The Issuers are the “beneficial owner,” as defined in the Act, of the securities to be held by Escrow Agent hereunder.

		
	[ ]
	Neither of the Issuers is the beneficial owner of the securities to be held by Escrow Agent, but is acting as a “respondent bank,” as defined in the Act, with respect to the securities to be held by Escrow Agent hereunder.

IF NO BOX IS CHECKED, THE ESCROW AGENT SHALL ASSUME THAT THE ISSUERS ARE THE BENEFICIAL OWNER OF THE SECURITIES.
For beneficial owners of the securities only: 
		
	[x]
	The Issuers object

		
	[ ]
	The Issuers do not object to the disclosure of their name, address and securities position to any registrant which requests such information pursuant to the Act for the specific purpose of direct communications between such registrant and the Issuers.

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IF NO BOX IS CHECKED, ESCROW AGENT SHALL RELEASE SUCH INFORMATION UNTIL IT RECEIVES A CONTRARY WRITTEN INSTRUCTION FROM THE ISSUERS. 
With respect to securities issued outside of the United States, information shall be released to registrants only if required by law or regulation of the particular country in which the securities are located.
The Issuers agree to disseminate in a timely manner any proxies or requests for voting instructions, other proxy soliciting material, information statements, and/or annual reports that it receives to any other beneficial owners.
[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
DIAMOND SPORTS GROUP, LLC
By:  /s/ Lucy Rutishauser         
    Name:  Lucy Rutishauser
    Title:  Treasurer

DIAMOND SPORTS FINANCE COMPANY
By:  /s/ Lucy Rutishauser         
    Name:  Lucy Rutishauser
    Title:  Treasurer

[Signature Page to Escrow Agreement]

U.S. BANK NATIONAL ASSOCIATION, as the Trustee
By:  /s/ Melody M. Scott         
    Name:  Melody M. Scott 
    Title:  Assistant Vice President

U.S. BANK NATIONAL ASSOCIATION, as the Escrow Agent
By:      /s/ Melody M. Scott         
    Name:  Melody M. Scott 
    Title:  Assistant Vice President

[Signature Page to Escrow Agreement]

EXHIBIT A
Notice of Extension of Outside Date
Dated: [    ]
NOTICE IS HEREBY GIVEN THAT pursuant to Section 3(b) of the Escrow Agreement, dated as of August 2, 2019 (the “Escrow Agreement”), by and among Diamond Sports Group, LLC, a Delaware limited liability company (“Diamond Sports Group”), and Diamond Sports Finance Company, a Delaware corporation (the “Co-Issuer” and, together with Diamond Sports Group, the “Issuers”), U.S. Bank National Association, as trustee (the “Trustee”), U.S. Bank National Association, as escrow agent and securities intermediary and bank (collectively, in such capacity, the “Escrow Agent”), as of the date hereof, the Issuers hereby elect to extend the [Initial Outside Date] [Extended Outside Date] such that the effective “Extended Outside Date” for purposes of the Escrow Agreement shall be as set forth below. Capitalized terms used but not defined herein have the respective meanings specified in the Escrow Agreement (including those terms defined by reference to the applicable Indenture referred to therein).
The Issuers hereby certify to the Escrow Agent that (i) they are extending the [Initial Outside Date] [Extended Outside Date] in accordance with Section 3(b) of the Escrow Agreement, (ii) either (x) they have deposited (or caused to be deposited) or will deposit (or cause to be deposited) within one Business Day in cash in the applicable Escrow Deposit Account or (y) Holdings or its affiliate has caused to be issued or will cause to be issued within one Business Day Letters of Credit for the benefit of the Escrow Agent and the Holders of the Secured Notes or the Senior Notes, as applicable (or a combination of (x) and (y)), in each case of (x) and (y), in an amount equal to the applicable Additional Amount and (iii) based on the amount of Escrowed Property on deposit with the Escrow Agent as of the date hereof, the amount deposited with the Escrow Agent as set forth below satisfies the requirements set forth in Section 3(b) of the Escrow Agreement.
[Initial Outside Date] [Extended Outside Date] prior to this Notice:  [_________] 
Extended Outside Date after this Notice:  [_________] 
Additional Amount for the Secured Notes:
Cash: $[_________]
Letters of Credit:  $[_________]
Additional Amount for the Senior Notes:
Cash: $[_________]
Letters of Credit:  $[_________]
[SIGNATURE PAGE FOLLOWS] 

Exhibit A-1

IN WITNESS WHEREOF, the Issuers, through the undersigned officers, have signed this officer’s certificate as of the date first written above.
DIAMOND SPORTS GROUP, LLC
By:                           
    Name: 
    Title:
DIAMOND SPORTS FINANCE COMPANY
By:                           
    Name: 
    Title:

[Escrow Agreement Notice of Extension]

EXHIBIT B
Officer’s Certificate
Diamond Sports Group, LLC
Diamond Sports Finance Company
Dated:  [    ]
This certificate is being delivered pursuant to Section 5(a) of the Escrow Agreement, dated as of August 2, 2019 (the “Escrow Agreement”), by and among Diamond Sports Group, LLC, a Delaware limited liability company (“Diamond Sports Group”), and Diamond Sports Finance Company, a Delaware corporation (the “Co-Issuer” and, together with Diamond Sports Group, the “Issuers”), U.S. Bank National Association, as trustee (the “Trustee”), and U.S. Bank National Association, as escrow agent and as securities intermediary and bank (collectively, in such capacity, the “Escrow Agent”).  Capitalized terms used but not defined herein have the respective meanings specified in the Escrow Agreement (including those terms defined by reference to the applicable Indenture referred to therein).
The Issuers hereby certify to the Escrow Agent that the following conditions have been or, substantially concurrently with the release of the Escrowed Property, will be satisfied:
(1)    (A) all conditions precedent to the consummation of the Acquisition have been satisfied or waived in accordance with the terms thereof (other than those conditions that by their terms are to be satisfied substantially concurrently therewith, but subject to the satisfaction or waiver of such conditions) and (B) the Escrowed Property will be used to consummate, or used in connection with the financing of, the Acquisition; 
(2)    the Acquisition Agreement has not been amended, modified, consented to or waived prior to the date hereof in a manner that is materially adverse to the interests of the Holders in their capacities as such; provided that no such amendment, modification, consent or waiver shall be deemed materially adverse to the interests of the Holders in their capacities as such if borrowings under the Senior Credit Facilities are made prior to or substantially concurrently with the release of the funds from the Escrow Accounts;
(3)     all conditions precedent to the effectiveness of, and borrowings under, the Senior Credit Facilities (other than the release of the Escrowed Property) have been satisfied or waived, and prior to or substantially concurrently with the release of the funds from the Escrow Accounts, the borrowings under the Senior Credit Facilities to be drawn in connection with the Acquisition have become or will be available to Diamond Sports Group on the Escrow Release Date; and
(4)    each Wholly-Owned Subsidiary that is a Domestic Subsidiary of Holdings (other than the Issuers) that guarantees obligations under the Senior Credit Facilities on the Escrow Release Date is or shall become a Guarantor under the Secured Notes and/or the Senior Notes, as applicable.
[SIGNATURE PAGE FOLLOWS]

Schedule B-1

IN WITNESS WHEREOF, the Issuers, through the undersigned officers, have signed this officer’s certificate as of the date first written above.
DIAMOND SPORTS GROUP, LLC
By:                           
    Name: 
    Title:
DIAMOND SPORTS FINANCE COMPANY
By:                           
    Name: 
    Title:

[Escrow Agreement Officer’s Certificate]

EXHIBIT C
Release Notice
Dated:  [      ]
This certificate is being delivered pursuant to Section 5 of the Escrow Agreement, dated as of August 2, 2019 (the “Escrow Agreement”), by and among Diamond Sports Group, LLC, a Delaware limited liability company (“Diamond Sports Group”), and Diamond Sports Finance Company, a Delaware corporation (the “Co-Issuer” and, together with Diamond Sports Group, the “Issuers”), U.S. Bank National Association, as trustee (the “Trustee”) and U.S. Bank National Association, as escrow agent and as securities intermediary and bank (collectively, in such capacity, the “Escrow Agent”).  Capitalized terms used but not defined herein have the respective meanings specified in the Escrow Agreement (including those terms defined by reference to the applicable Indenture referred to therein).
Pursuant to the Escrow Agreement, the Issuers hereby authorize and instruct the release by the Escrow Agent of the Escrowed Property no later than [insert time][a.m.][p.m.] (New York City time) on [insert date], as follows:
[Choose one of the following as applicable:]
[Purpose A – Choose if a release pursuant to Section 5(a):
$[●] to J.P. Morgan Securities LLC, for itself and on behalf of the Initial Purchasers, pursuant to the Initial Purchasers’ wire instructions on Schedule I attached hereto or as otherwise directed by J.P. Morgan Securities LLC in its capacity as an Initial Purchaser in connection with the offering of the Notes.
$[●] to, or as directed by, the Issuers pursuant to the wire instructions on Schedule I attached hereto or as otherwise directed by the Issuers in connection with the consummation of the Acquisition and the transactions related thereto.]
[Purpose B – Choose if a Special Mandatory Redemption is triggered and Escrowed Property is to be distributed pursuant to Section 5(b)(B):
100% of the Escrowed Property to the Trustee pursuant to the wire and delivery instructions provided on Schedule II of the Escrow Agreement.
The Trustee and Escrow Agent are hereby notified that the Issuers will not pursue the consummation of the Acquisition and this Release Notice shall constitute, upon delivery, a Special Mandatory Redemption Event pursuant to Section 5(b)(B) of the Escrow Agreement.]
[SIGNATURE PAGE FOLLOWS]

Exhibit C-1

IN WITNESS WHEREOF, the undersigned have caused this Release Notice to be duly executed and delivered as of the date first written above.
DIAMOND SPORTS GROUP, LLC
By:                           
    Name: 
    Title:
DIAMOND SPORTS FINANCE COMPANY
By:                           
    Name: 
    Title:

[Escrow Agreement Release Notice]

Schedule I to Exhibit C
Transfer Instructions
[

]

SCHEDULE I
To the Escrow Agreement among Diamond Sports Group, LLC, Diamond Sports Finance Company and U.S. Bank National Association, as each of the trustee, escrow agent, securities intermediary and bank, dated as of August 2, 2019 (the “Agreement”): 
The names, titles, telephone numbers, email addresses and specimen signatures set forth in Part A identify the persons authorized to provide direction and initiate or confirm transactions, including funds transfer instructions, on behalf of Diamond Sports Group, LLC and Diamond Sports Finance Company (together, the “Issuers”).

Schedule I-1

Part A
Name, Title, Telephone Number, Email Address and Specimen Signature for person(s) designated to provide direction, including but not limited to funds transfer instructions and confirmation thereof, and to otherwise act on behalf of the Issuers.
Diamond Sports Group

	
					
	Name
	Title
	Telephone Number
	Email Address
	Specimen Signature

	Lucy Rutishauser
	Senior Vice President and Chief Financial Officer
	                    [     ]
	[     ]
	_________________

	Justin Bray
	Authorized Person
	                    [     ]
	[     ]
	_________________

Co-Issuer

	
					
	Name
	Title
	Telephone Number
	Email Address
	Specimen Signature

	Lucy Rutishauser
	Senior Vice President and Chief Financial Officer
	                    [     ]
	[     ]
	_________________

	Justin Bray
	Authorized Person
	                    [     ]
	[     ]
	_________________

[Schedule I, Part A of the Escrow Agreement]

SCHEDULE II
Wire and Delivery Instructions
[

]

Schedule IIExhibit 4.2

 

SUPPLEMENTAL INDENTURE NO. 10
  
 Dated as of August 5, 2019

 

€500,000,000 0.450% Notes due 2025

€500,000,000 1.300% Notes due 2031

 

SUPPLEMENTAL INDENTURE NO. 10, dated as of August 5, 2019, 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”) and Elavon Financial Services DAC, UK Branch, as paying agent (the “Paying Agent”).

 

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;

 

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WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 6, dated as of October 17, 2018;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 7, dated as of January 16, 2019;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 8, dated as of January 16, 2019;

 

WHEREAS, the Company, the Guarantors and the Trustee have executed and delivered Supplemental Indenture No. 9, dated as of July 24, 2019;

 

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. 10 by the parties hereto is authorized by the provisions of the Indenture;

 

WHEREAS, the Redemption for Tax Reasons (as defined herein), as set forth below, is expressly being included solely for the benefit of the Company;

 

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. 10 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, the Trustee and the Paying Agent mutually covenant and agree, for the equal and proportionate benefit of the respective Holders from time to time of each series of Notes as follows:

 

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

 

Section 1.01.  Relation to the Indenture.  This Supplemental Indenture No. 10 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. 10 unless otherwise specified herein:

 

(a)                       all terms defined in this Supplemental Indenture No. 10 which are used and not otherwise defined herein shall have the meanings they are given in the Indenture;

 

(b)                       the provisions of general application stated in Section 1.01 of the Indenture shall apply to this Supplemental Indenture No. 10, except that the words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Supplemental Indenture No. 10 as a whole and not to the Indenture or any particular Article, Section or other subdivision of the Indenture or this Supplemental Indenture No. 10;

 

(c)                                  “business day” means each day which is not a Saturday, Sunday or other day on which the Trustee, Paying Agent, Transfer Agent (as defined herein) and registrar or banking institutions are not required by law or regulation to be open in the State of New York or London and, for any place of payment outside of New York City or London, in such place of payment, and on which the TARGET2 system (as defined below), or any successor thereto, does not operate;

 

(d)                                 “Agency Agreement” means the agreement among the Company, Elavon Financial Services DAC, UK Branch, as the Paying Agent, U.S. Bank National Association, as the registrar and transfer agent, and the Trustee;

 

(e)                                  “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear System; and

 

(f)                                   “Clearstream” means Clearstream Banking, société anonyme.

 

ARTICLE 2
 THE SERIES OF NOTES

 

Section 2.01.  Title.  There shall be a series of Securities designated the 0.450% Notes due 2025 (the “2025 Notes”) and a series of Securities designated the 1.300% Notes due 2031 (the “2031 Notes” and, together with the 2025 Notes, the “Notes”).

 

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Section 2.02.  Principal Amounts.  Subject to Section 2.12, the initial aggregate principal amount of the 2025 Notes that may be authenticated and delivered under this Supplemental Indenture No. 10 shall not exceed €500,000,000, and the initial aggregate principal amount of the 2031 Notes that may be authenticated and delivered under this Supplemental Indenture No. 10 shall not exceed €500,000,000 (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 2025 Notes shall be payable on August 5, 2025, and the entire outstanding principal amount of the 2031 Notes shall be payable on August 5, 2031, in each case subject to Section 2.07 and 2.08.

 

Section 2.04  Interest.

 

(a)                       2025 Notes. The 2025 Notes will bear interest at the rate of 0.450% per annum. Interest on the 2025 Notes will be payable annually in arrears on August 5 of each year, commencing on August 5, 2020, to the Persons in whose names the 2025 Notes are registered at the close of business of the preceding July 21 or, if the 2025 Notes are represented by one or more global notes, the close of business on the business day (for this purpose a day on which Clearstream and Euroclear are open for business) immediately preceding July 21. Interest on the 2025 Notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the 2025 Notes (or August 5, 2019, if no interest has been paid on the 2025 Notes) to, but excluding, the next scheduled interest payment date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association.

 

(b)                       2031 Notes. The 2031 Notes will bear interest at the rate of 1.300% per annum. Interest on the 2031 Notes will be payable annually in arrears on August 5 of each year, commencing on August 5, 2020, to the Persons in whose names the 2031 Notes are registered at the close of business of the preceding July 21 or, if the 2031 Notes are represented by one or more global notes, the close of business on the business day (for this purpose a day on which Clearstream and Euroclear are open for business) immediately preceding July 21. Interest on the 2031 Notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the 2031 Notes (or August 5, 2019, if no interest has been paid on the 2031 Notes) to, but excluding, the next scheduled interest payment date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association.

 

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Section 2.05.  Payments in Euro.  All payments of interest and principal, including payments made upon any redemption of the Notes, will be payable in euro. If, on or after the date of issuance of the Notes, the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euro will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second business day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the then most recent U.S. dollar/euro exchange rate available on or prior to the second business day prior to the relevant payment date as determined by the Company in its sole discretion. Any payment in respect of the Notes so made in U.S. dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing.

 

Section 2.06  Defeasance and Discharge; Covenant Defeasance.

 

(a)                       The provisions of Section 13.02 and Section 13.03 of the Indenture shall apply to each series of the Notes, subject to clause (b) below.

 

(b)                       Solely with respect to the Notes, the Government Obligations referred to in Section 13.04 of the Indenture shall include (1) securities that are direct obligations of the Federal Republic of Germany for the payment of which its full faith and credit is pledged or (2) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the Federal Republic of Germany, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the Federal Republic of Germany, which, in either case under clauses (1) or (2) are not callable or redeemable at the option of the issuer thereof.

 

Section 2.07.  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 (as defined below), 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 clearing system’s procedures) to the Holders of the Notes to be redeemed. Upon redemption of the Notes of any series, the Company will pay a redemption price equal to the greater of:

 

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

 

5

 

(b)                       the sum of the present values of the Remaining Scheduled Payments (as defined below) of principal and interest on the Notes to be redeemed that would be due if the 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 an ACTUAL/ACTUAL (ICMA) day count basis, at the applicable Comparable Government Bond Rate (as defined below) plus 0.200% (20 basis points) in the case of the 2025 Notes and 0.250% (25 basis points) in the case of the 2031 Notes;

 

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

 

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

 

“Comparable Government Bond” means, with respect to the Notes to be redeemed prior to the applicable Par Call Date, in relation to any Comparable Government Bond Rate calculation, at the discretion of an independent investment bank selected by the Company, a bond that is a direct obligation of the Federal Republic of Germany (“German government bond”), whose maturity is closest to the Par Call Date of such Notes, or if such independent investment bank in its discretion determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company, determine to be appropriate for determining the Comparable Government Bond Rate.

 

“Comparable Government Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), on the third business day prior to the date fixed for redemption, of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such business day as determined by an independent investment bank selected by the Company.

 

“Par Call Date” means May 5, 2025 in the case of the 2025 Notes (the date that is three months prior to the maturity date of the 2025 Notes) and May 5, 2031 in the case of the 2031 Notes (the date that is three months prior to the maturity date of the 2031 Notes).

 

“Remaining Scheduled Payments” means with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related redemption date but for such redemption; provided, however, that, if such redemption date is not an interest

 

6

 

payment date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced (solely for the purposes of this calculation) by the amount of interest accrued thereon to such redemption date.

 

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.

 

If less than all of a series of Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by such method the Trustee deems to be fair and appropriate in accordance with the applicable clearing system’s procedures.

 

Section 2.08  Redemption for Tax Reasons.  If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority in the United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the date of the issuance of the Notes, the Company becomes or, based upon a written opinion of independent counsel selected by the Company, the Company will become obligated to pay additional amounts as described in Section 3.01 hereof with respect to a series of Notes, then the Company may at any time at its option redeem, in whole, but not in part, the outstanding Notes of such series on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on those Notes to, but not including, the date fixed for redemption (such redemptions, a “Redemption for Tax Reasons”).

 

Section 2.09  Form of Notes and Payment.

 

(a)                       The Notes shall be represented by one or more permanent global notes. The 2025 Notes shall be in the form of Exhibit A attached hereto, and the 2031 Notes shall be in the form of Exhibit B attached hereto. The Notes shall be issued in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof.

 

(b)                       Principal, premium and additional amounts, if any, and/or interest, if any, on the global notes representing the Notes shall be made to the Paying Agent which in turn, for so long as the Notes are in global form, shall make payment with respect to the Notes to Elavon Financial Services DAC, UK Branch, as common depositary for Euroclear and Clearstream, for their respective accounts.

 

(c)                        The global notes representing the Notes shall be deposited with, or on behalf of, Elavon Financial Services DAC, UK Branch, as common depositary for Euroclear and Clearstream, and registered in the name of such common depositary or its nominee for the accounts of Euroclear and Clearstream.

 

7

 

(d)                       Elavon Financial Services DAC, UK Branch, shall initially act as the Paying Agent for the Notes in accordance with the terms of the Agency Agreement. U.S. Bank National Association shall initially act as the transfer agent for the Notes (the “Transfer Agent”) in accordance with the terms of the Agency Agreement. The Company may change the Paying Agent or the Transfer Agent without prior notice to the Holders.

 

(e)                        U.S. Bank National Association shall initially act as the Security Registrar, as such term is defined in Section 3.05 of the Indenture, for the Notes in accordance with the terms of the Agency Agreement. The Company may change the Security Registrar without prior notice to the Holders.

 

(f)                         Each of the Company and the Guarantors designates the office of the Paying Agent at 125 Old Broad Street, Fifth Floor, London EC2N 1AR as an agency where the Notes may be presented for payment, in each case as provided for in the Indenture.

 

(g)                                  Each of the Company and the Guarantors designates the officer of the Transfer Agent at U.S. Bank Wealth Management — Corp Trust Services Boston, 1 Federal Street, Boston, Massachusetts 02110 as an agency where the Notes may be presented for exchange or registration of transfer as provided for in the Indenture.

 

Section 2.10.  Sinking Fund.  The Notes shall not be subject to a sinking fund.

 

Section 2.11.  Additional Amounts.  The provisions of Section 10.06 of the Indenture shall not apply to the Notes; provided that the provisions of Section 3.01 of this Supplemental Indenture No. 10 shall apply to the Notes.

 

Section 2.12.  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 separate CUSIP, ISIN and Common Code numbers.

 

ARTICLE 3
 PAYMENT OF ADDITIONAL AMOUNTS

 

Section 3.01  Payment of Additional Amounts.

 

(a)                       The Company will, subject to the exceptions and limitations set forth below, pay as additional interest on the Notes such additional amounts as are necessary in order that the net payment by the Company of the principal of and

 

8

 

interest on the Notes to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment or other governmental charge imposed by the United States or a taxing authority in the United States (including any withholding or deduction with respect to the payment of such additional amounts), will not be less than the amount provided in the Notes to be then due and payable; provided, however, that the foregoing obligation to pay additional amounts shall not apply:

 

(1)                                 to any tax, assessment or other governmental charge that is imposed by reason of the Holder (or the beneficial owner for whose benefit such Holder holds such Note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder or beneficial owner if the Holder or beneficial owner is an estate, trust, partnership, corporation or other entity, or a person holding a power over an estate or trust administered by a fiduciary holder, being considered as:

 

(a)                                             being or having been engaged in a trade or business in the United States or having or having had a permanent establishment in the United States;

 

(b)                                             having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of the Notes, the receipt of any payment thereon or the enforcement of any rights thereunder), including being or having been a citizen or resident of the United States;

 

(c)                                              being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for United States federal income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax;

 

(d)                                             being or having been a “10-percent shareholder” of the Company as defined in Section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”), or any successor provision; or

 

(e)                                              being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(2)                                 to any Holder that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or limited liability company would not have been entitled to the payment of such additional amounts had the beneficiary, settlor,

 

9

 

beneficial owner or member received directly its beneficial or distributive share of the payment;

 

(3)                                 to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the Holder or any other person to comply with any certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of such Holder or other person, if compliance is required by statute, by regulation of the United States or any taxing authority therein or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from, or reduction in, such tax, assessment or other governmental charge;

 

(4)                                 to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the Company or a paying agent from payments on the Notes;

 

(5)                                 to any tax, assessment or other governmental charge that would not have been imposed but for a change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later;

 

(6)                                 to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or similar tax, assessment or other governmental charge;

 

(7)                                 to any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on any Note, if such payment can be made without such withholding by presenting such Note (where presentation is required) to at least one other paying agent;

 

(8)                                 to any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the Holder of any Note, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later;

 

(9)                                 to any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner being a bank (i) purchasing the Notes in the ordinary course of its lending business or (ii) that is neither (A) buying the Notes for investment purposes only nor (B) buying the Notes for resale to a third-party that either is not a bank or holding the Notes for investment purposes only;

 

(10)                          to any tax, assessment or other governmental charge imposed under Sections 1471 through 1474 of the Code (or any amended or successor provisions), any current or future regulations or official interpretations thereof,

 

10

 

any agreement entered into pursuant to Section 1471(b) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; or

 

(11)         in the case of any combination of items (1), (2), (3), (4), (5), (6), (7), (8), (9), and (10).

 

(b) The Notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to the Notes. Except as specifically provided under this Section 3.01, the Company will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any government or political subdivision.

 

(c) As used under this Section 3.01 and Section 2.08 hereof, the term “United States” means the United States of America (including the states of the United States and the District of Columbia and any political subdivision thereof) and the term “United States person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a United States person under any applicable Treasury regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.

 

(d) Any reference to amounts payable in respect of the Notes herein or in the Indenture shall be deemed to include any additional amounts which may be payable under this Section 3.01.

 

ARTICLE 4
 CHANGE OF CONTROL REPURCHASE EVENT

 

Section 4.01.  Intended Beneficiary; Definitions.

 

(a)        The provisions of this Article 4 shall be applicable only to, and are solely for the benefit of Holders of, the Notes and to no other Security.

 

(b)        For purposes of this Supplemental Indenture No. 10:

 

“Below Investment Grade Ratings Event” means, with respect to the Notes, on any day within the 60-day period (which period shall be extended so long as the rating of the 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, 

 

11

 

the Notes 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).

 

“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, (2) any Subsidiary, (3) any employee benefit plan (or a trust forming a part thereof) maintained by the Company or any Subsidiary, or (4) 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 the 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 

 

12

 

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.

 

Section 4.02.  Change of Control Repurchase Event.

 

(a)        If a Change of Control Repurchase Event with respect to a series of Notes occurs, except to the extent the Company has exercised its right to redeem the Notes of such series pursuant to the redemption terms 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 €100,000 and integral multiples of €1,000 in excess thereof) of that Holder’s Notes 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 the Notes repurchased to, but not including, the Repurchase Date (as 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 procedures of the applicable clearing system, a notice to each Holder of the Notes of such series, with a copy to the Trustee and the Paying Agent, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the Notes 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 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 the Notes, the Company will comply with the applicable securities laws and regulations and will not be deemed to have 

 

13

 

breached its obligations under the Change of Control Repurchase Event provisions of the 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 Paying Agent an amount equal to the aggregate Repurchase Price for all Notes or portions of Notes properly tendered;

 

(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 4.02(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 procedures of the applicable clearing system, to each Holder of Notes, or portions of the Notes, properly tendered and accepted for payment by the Company the Repurchase Price for the Notes or portions of the Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each such Holder a new Note, as applicable, duly executed by the Company equal in principal amount to any unrepurchased portion of the Notes surrendered, as applicable; provided that each new Note will be in a principal amount equal to €100,000 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 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 Notes properly tendered upon a Change of Control Repurchase Event.

 

14

 

ARTICLE 5
 MISCELLANEOUS PROVISIONS

 

Section 5.01.  Supplemental Indenture.  The Indenture, as supplemented by this Supplemental Indenture No. 10, is in all respects hereby adopted, ratified and confirmed.

 

Section 5.02.  Effectiveness.  This Supplemental Indenture No. 10 shall take effect as of the date hereof.

 

Section 5.03.  Effect of Headings.  The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

 

Section 5.04.  Separability Clause.  In case any provision in this Supplemental Indenture No. 10 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 5.05.  Governing Law.  This Supplemental Indenture No. 10 shall be governed by and construed in accordance with the laws of the State of New York.

 

Section 5.06.  Submission of Paying Agent to Jurisdiction in the United States.  Each of the Paying Agent, the Transfer Agent and the registrar irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Supplemental Indenture No. 10. To the fullest extent permitted by applicable law, each of the Paying Agent, the Transfer Agent and the registrar irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

Section 5.07  Execution by the Trustee.  The Trustee has executed this Supplemental Indenture No. 10 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. 10 or the execution hereof by any Person (other than the Trustee).

 

Section 5.08  Counterparts.  This Supplemental Indenture No. 10 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.

 

15

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 10 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. 10]

 

 

	
 
    	
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. 10]

 

 

	
 
    	
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. 10]

 

 

	
 
    	
FedEx   Freight Corporation,

as Guarantor
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward Klank   III
    	
 
    	
By:
    	
/s/ Matthew L.   Rittenhour
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
Name:
    	
Matthew L.   Rittenhour
    
	
Title:
    	
Secretary
    	
 
    	
Title:
    	
Senior Vice   President — Finance and Chief Financial   Officer
    
						

 

[Signature Page to Supplemental Indenture No. 10]

 

 

	
 
    	
FedEx   Freight, Inc.,

as Guarantor
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ C. Edward   Klank III
    	
 
    	
By:
    	
/s/ Matthew L.   Rittenhour
    
	
Name:
    	
C. Edward Klank   III
    	
 
    	
Name:
    	
Matthew L.   Rittenhour
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
Title:
    	
Senior Vice   President — Finance and Chief Financial   Officer
    
						

 

[Signature Page to Supplemental Indenture No. 10]

 

 

	
 
    	
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:
    	
Assistant   Secretary
    	
 
    	
Title:
    	
Senior Vice   President and Chief Financial Officer
    

 

[Signature Page to Supplemental Indenture No. 10]

 

 

	
 
    	
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. 10]

 

 

	
 
    	
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. 10]

 

 

	
 
    	
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. 10]

 

 

	
 
    	
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. 10]

 

 

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

 

[Signature Page to Supplemental Indenture No. 10]

 

 

	
 
    	
Elavon   Financial Services DAC, UK Branch, as Paying Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Laurence   Griffiths
    
	
 
    	
 
    	
Name: Laurence Griffiths
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Chris Hobbs
    
	
 
    	
 
    	
Name: Chris Hobbs
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

 

Exhibit A

 

Form of 0.450% Note

 

	
No. [     ]
    	
CUSIP   No. [                    ](1)
    
	
 
    	
 
    
	
 
    	
ISIN   No. [                    ](2)
    
	
 
    	
 
    
	
 
    	
Common Code   [                    ](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 Euroclear Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream” and, together with Euroclear, “Euroclear/Clearstream”) to the Issuer or its agent for registration of transfer, exchange or payment, and any security issued is registered in the name of USB Nominees (UK) Limited or in such other name as is requested by an authorized representative of Euroclear/Clearstream (and any payment is made to USB Nominees (UK) Limited or to such other entity as is requested by an authorized representative of Euroclear/Clearstream), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, USB Nominees (UK) Limited, has an interest herein.

 

(1)  Initial Note: 31428XBW5

 

(2)  Initial Note: XS2034626460

 

(3)  Initial Note: 203462646

 

 

FEDEX CORPORATION

 

0.450% Notes due 2025

 

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 USB Nominees (UK) Limited as nominee of Elavon Financial Services DAC as common depository for the accounts of Euroclear/Clearstream or registered assigns, the principal sum of €500,000,000 on August 5, 2025 (the “Stated Maturity Date”) and to pay interest thereon from August 5, 2019, or from the most recent “Interest Payment Date” to which interest has been paid or duly provided for, annually in arrears on August 5 of each year, commencing on August 5, 2020, and ending on the Stated Maturity Date or date of earlier redemption as contemplated herein, at the rate of 0.450% 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. 10 dated as of August 5, 2019 (“Supplemental Indenture No. 10”), among the Company, the Guarantors named therein, the Trustee and Elavon Financial Services DAC, UK Branch, as paying agent (the “Paying Agent”) (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 July 21 or, if the Notes are represented by one or more global notes, the close of business on the business day (for this purpose a day on which Euroclear/Clearstream are open for business) immediately preceding July 21. 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.

 

Interest payments on this Note will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on this Note (or August 5, 2019, if no interest has been paid on this Note) to, but excluding the next scheduled interest payment date. This payment convention is

 

 

referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association.

 

If the Stated Maturity Date or any redemption date of this Note falls on a day that is not a business day, the related payment of principal, premium and additional amounts, if any, and interest will be made on the next business day as if it were made on the date such payment was due, and no interest shall accrue on the amounts so payable for the period from and after such date to the next business day. If any interest payment date would otherwise be a day that is not a business day, that interest payment date will be postponed to the next date that is a business day.

 

If, on or after issuance of this Note, the single currency of participating member states of the economic and monetary union as contemplated in the Treaty on European Union (the “euro”) is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of this Note will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euro will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second business day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the then most recent U.S. dollar/euro exchange rate available on or prior to the second business day prior to the relevant payment date as determined by the Company in its sole discretion. Any payment in respect of this Note so made in U.S. dollars will not constitute an Event of Default under this Note or the Indenture.

 

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.

 

 

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
    	
 
    
				

 

 

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: August 5, 2019.

 

 

[REVERSE OF SECURITY]

 

FEDEX CORPORATION

 

0.450% Notes due 2025

 

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 €500,000,000, except as contemplated in Supplemental Indenture No. 10. Capitalized terms used herein and in the Guarantee dated August 5, 2019 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 (as defined below), 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 clearing system’s procedures) to the Holders of the Notes of this series to be redeemed. Upon redemption of such Notes, the Company will pay a redemption price 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 (as defined in Supplemental Indenture No. 10) 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 an ACTUAL/ACTUAL (ICMA) day count basis, at the applicable Comparable Government Bond Rate (as defined in Supplemental Indenture No. 10) plus 0.200% (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 May 5, 2025 (the date that is three months prior to the Stated Maturity Date of the Notes of this series).

 

 

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, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority in the United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the date of the issuance of the Notes of this series, the Company becomes or, based upon a written opinion of independent counsel selected by the Company, the Company will become obligated to pay additional amounts (as described in Supplemental Indenture No. 10) with respect to the Notes of this series, then the Company may at any time at its option redeem, in whole, but not in part, the outstanding Notes of this series on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on the Notes of this series to be redeemed to, but not including, the date fixed for redemption.

 

If a Change of Control Repurchase Event (as defined in Supplemental Indenture No. 10) occurs with respect to Notes of this series, except to the extent  the Company has exercised its right to redeem the Notes of this series pursuant to the redemption terms of the Notes, the Company will make an offer, as provided in, and subject to the terms of, Supplemental Indenture No. 10, to each Holder of the Notes of this series to repurchase all or any part (in minimum denominations of €100,000 and 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 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 of the Transfer Agent, 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 €100,000 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, the Paying Agent 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, the Paying Agent 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 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.

 

 

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
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

Exhibit B

 

Form of 1.300% Note

 

	
No. [                        ]
    	
 
    	
CUSIP No.   [                        ](5)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ISIN No.   [                        ](6)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Common Code   [                        ](7)
    

 

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 Euroclear Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream” and, together with Euroclear, “Euroclear/Clearstream”) to the Issuer or its agent for registration of transfer, exchange or payment, and any security issued is registered in the name of USB Nominees (UK) Limited or in such other name as is requested by an authorized representative of Euroclear/Clearstream (and any payment is made to USB Nominees (UK) Limited or to such other entity as is requested by an authorized representative of Euroclear/Clearstream), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, USB Nominees (UK) Limited, has an interest herein.

 

(5)  Initial Note: 31428XBX3

 

(6)  Initial Note: XS2034629134

 

(7)  Initial Note: 203462913

 

 

FEDEX CORPORATION

 

1.300% Notes due 2031

 

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 USB Nominees (UK) Limited as nominee of Elavon Financial Services DAC as common depository for the accounts of Euroclear/Clearstream or registered assigns, the principal sum of €500,000,000 on August 5, 2031 (the “Stated Maturity Date”) and to pay interest thereon from August 5, 2019, or from the most recent “Interest Payment Date” to which interest has been paid or duly provided for, annually in arrears on August 5 of each year, commencing on August 5, 2020, and ending on the Stated Maturity Date or date of earlier redemption as contemplated herein, at the rate of 1.300% 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. 10 dated as of August 5, 2019 (“Supplemental Indenture No. 10”), among the Company, the Guarantors named therein, the Trustee and Elavon Financial Services DAC, UK Branch, as paying agent (the “Paying Agent”) (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 July 21 or, if the Notes are represented by one or more global notes, the close of business on the business day (for this purpose a day on which Euroclear/Clearstream are open for business) immediately preceding July 21. 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.

 

Interest payments on this Note will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on this Note (or August 5, 2019, if no interest has been paid on this Note) to, but excluding the next scheduled interest payment date. This payment convention is

 

 

referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association.

 

If the Stated Maturity Date or any redemption date of this Note falls on a day that is not a business day, the related payment of principal, premium and additional amounts, if any, and interest will be made on the next business day as if it were made on the date such payment was due, and no interest shall accrue on the amounts so payable for the period from and after such date to the next business day. If any interest payment date would otherwise be a day that is not a business day, that interest payment date will be postponed to the next date that is a business day.

 

If, on or after issuance of this Note, the single currency of participating member states of the economic and monetary union as contemplated in the Treaty on European Union (the “euro”) is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of this Note will be made in U.S. dollars until the euro is again available to the Company or so used. In such circumstances, the amount payable on any date in euro will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second business day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the then most recent U.S. dollar/euro exchange rate available on or prior to the second business day prior to the relevant payment date as determined by the Company in its sole discretion. Any payment in respect of this Note so made in U.S. dollars will not constitute an Event of Default under this Note or the Indenture.

 

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.

 

 

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
    	
 
    

 

 

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:  [                    ](8)
    	
 
    

 

(8)  Initial Note: August 5, 2019.

 

 

[REVERSE OF SECURITY]

 

FEDEX CORPORATION

 

1.300% Notes due 2031

 

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 €500,000,000, except as contemplated in Supplemental Indenture No. 10. Capitalized terms used herein and in the Guarantee dated August 5, 2019 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 (as defined below), 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 clearing system’s procedures) to the Holders of the Notes of this series to be redeemed. Upon redemption of such Notes, the Company will pay a redemption price 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 (as defined in Supplemental Indenture No. 10) 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 an ACTUAL/ACTUAL (ICMA) day count basis, at the applicable Comparable Government Bond Rate (as defined in Supplemental Indenture No. 10) plus 0.250% (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 May 5, 2031 (the date that is three months prior to the Stated Maturity Date of the Notes of this series).

 

 

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, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority in the United States), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after the date of the issuance of the Notes of this series, the Company becomes or, based upon a written opinion of independent counsel selected by the Company, the Company will become obligated to pay additional amounts (as described in Supplemental Indenture No. 10) with respect to the Notes of this series, then the Company may at any time at its option redeem, in whole, but not in part, the outstanding Notes of this series on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on the Notes of this series to be redeemed to, but not including, the date fixed for redemption.

 

If a Change of Control Repurchase Event (as defined in Supplemental Indenture No. 10) occurs with respect to Notes of this series, except to the extent the Company has exercised its right to redeem the Notes of this series pursuant to the redemption terms of the Notes, the Company will make an offer, as provided in, and subject to the terms of, Supplemental Indenture No. 10, to each Holder of the Notes of this series to repurchase all or any part (in minimum denominations of €100,000 and 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 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 of the Transfer Agent, 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 €100,000 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, the Paying Agent 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, the Paying Agent 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 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.

 

 

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

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