Document:

Exhibit 4.1

 

Execution Version

 

AERCAP IRELAND CAPITAL LIMITED

 

as Irish Issuer,

 

AERCAP GLOBAL AVIATION TRUST

 

as U.S. Issuer,

 

and

 

AERCAP HOLDINGS N.V.

 

as Holdings

 

 

NINTH SUPPLEMENTAL INDENTURE

 

Dated as of May 23, 2016

 

to

 

INDENTURE

 

Dated as of May 14, 2014

 

 

THE GUARANTORS PARTY HERETO

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION

 

as Trustee

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I   
    	
DEFINITIONS
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 1.01.
    	
Definitions
    	
2
    
	
SECTION 1.02.
    	
Other Definitions
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE II   
    	
DESIGNATION   AND TERMS OF THE NOTES
    	
4
    
	
 
    	
 
    	
 
    
	
SECTION 2.01.
    	
Title and Aggregate   Principal Amount
    	
4
    
	
SECTION 2.02.
    	
Execution
    	
5
    
	
SECTION 2.03.
    	
Other Terms and   Form of the Notes
    	
5
    
	
SECTION 2.04.
    	
Further Issues
    	
5
    
	
SECTION 2.05.
    	
Interest and Principal
    	
5
    
	
SECTION 2.06.
    	
Place of Payment
    	
5
    
	
SECTION 2.07.
    	
Form and Dating
    	
6
    
	
SECTION 2.08.
    	
[Reserved]
    	
6
    
	
SECTION 2.09.
    	
Depositary; Registrar
    	
6
    
	
SECTION 2.10.
    	
Optional Redemption
    	
6
    
	
SECTION 2.11.
    	
Redemption for Changes   in Withholding Taxes
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE III   
    	
TRANSFER   AND EXCHANGE
    	
8
    
	
 
    	
 
    	
 
    
	
SECTION 3.01.
    	
Transfer and Exchange   of Global Notes
    	
8
    
	
SECTION 3.02.
    	
Transfer and Exchange   of Beneficial Interests in the Global Notes
    	
8
    
	
SECTION 3.03.
    	
Transfer or Exchange of   Beneficial Interests in Global Notes for Definitive Notes
    	
9
    
	
SECTION 3.04.
    	
Transfer and Exchange   of Definitive Notes for Beneficial Interests in Global Notes
    	
9
    
	
SECTION 3.05.
    	
Transfer and Exchange   of Definitive Notes for Definitive Notes
    	
10
    
	
SECTION 3.06.
    	
[Reserved]
    	
10
    
	
SECTION 3.07.
    	
Legend
    	
10
    
	
SECTION 3.08.
    	
Cancellation and/or   Adjustment of Global Notes
    	
10
    
	
SECTION 3.09.
    	
General Provisions   Relating to Transfers and Exchanges
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   
    	
LEGAL   DEFEASANCE, COVENANT DEFEASANCE AND SATISFACTION AND DISCHARGE
    	
12
    
				

 

i

 

	
SECTION 4.01.
    	
Legal Defeasance,   Covenant Defeasance and Satisfaction and Discharge
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    	
COVENANTS
    	
12
    
	
 
    	
 
    	
 
    
	
SECTION 5.01.
    	
Repurchase upon a   Change of Control Triggering Event
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   
    	
MISCELLANEOUS
    	
15
    
	
 
    	
 
    	
 
    
	
SECTION 7.01.
    	
Ratification of   Original Indenture; Supplemental Indenture Part of Original Indenture
    	
15
    
	
SECTION 7.02.
    	
Concerning the Trustee
    	
15
    
	
SECTION 7.03.
    	
Multiple Originals;   Electronic Signatures
    	
15
    
	
SECTION 7.04.
    	
GOVERNING LAW
    	
15
    
	
 
    	
 
    	
 
    
	
Exhibit A   
    	
Form of   3.950% Senior Note Due 2022
    	
 
    
				

 

ii

 

NINTH SUPPLEMENTAL INDENTURE, dated as of May 23, 2016 (this “Ninth Supplemental Indenture”), to the Indenture, dated as of May 14, 2014 (the “Original Indenture”), among AERCAP IRELAND CAPITAL LIMITED, a private limited company incorporated under the laws of Ireland (the “Irish Issuer”), AERCAP GLOBAL AVIATION TRUST, a statutory trust organized under the law of Delaware (the “U.S. Issuer” and, together with the Irish Issuer, the “Issuers,” and each, an “Issuer”), AERCAP HOLDINGS N.V., a public limited liability company organized under the laws of the Netherlands (“Holdings”), each of the subsidiary guarantors party hereto or that becomes a guarantor pursuant to the terms of the Original Indenture (the “Subsidiary Guarantors” and, together with Holdings, the “Guarantors”) and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States, as trustee (the “Trustee”).

 

WHEREAS, the Issuers, the Guarantors and the Trustee have heretofore executed and delivered the Original Indenture to provide for the issuance from time to time of Notes (as defined in the Original Indenture) of the Issuers, to be issued in one or more Series;

 

WHEREAS, the Original Indenture provides, among other things, that the Issuers and the Trustee may enter into indentures supplemental to the Original Indenture for, among other things, the purpose of establishing the form and terms of Notes (as defined in the Original Indenture) of any Series pursuant to the Original Indenture;

 

WHEREAS, the Issuers (i) desire the issuance of a Series of Notes (as defined in the Original Indenture) to be designated as hereinafter provided and (ii) have requested the Trustee to enter into this Ninth Supplemental Indenture for the purpose of establishing the form and terms of the Notes (as defined in the Original Indenture) of such Series;

 

WHEREAS, the Issuers have duly authorized the creation of an issue of their 3.950% Senior Notes Due 2022 (the “Notes”), which expression includes any further such Notes issued pursuant to Section 2.04 hereof; and

 

WHEREAS, all action on the part of the Issuers necessary to authorize the issuance of the Notes under the Original Indenture and this Ninth Supplemental Indenture (the Original Indenture, as supplemented by this Ninth Supplemental Indenture, being hereinafter called the “Indenture”) has been duly taken;

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

That, in order to establish the form and terms of the Notes and in consideration of the acceptance of the Notes by the Holders thereof and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

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ARTICLE I

 

DEFINITIONS

 

SECTION 1.01.                                   Definitions.

 

(a)                                 Capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Original Indenture.

 

(b)                                 The rules of interpretation set forth in the Original Indenture shall be applied hereto as if set forth in full herein.

 

(c)                                  For all purposes of this Ninth Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the following meanings:

 

“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of DTC that apply to such transfer or exchange.

 

“Change of Control” means:

 

(1)                                 any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of shares representing more than 50% of the voting power of Holdings’ Voting Stock;

 

(2)                                 Holdings ceases to own, directly or indirectly, 100% of the issued and outstanding Voting Stock of either Issuer, other than director’s qualifying shares and other shares required to be issued by law;

 

(3)                                 during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of Holdings (together with any new directors whose election to such Board of Directors or whose nomination for election by the shareholders of Holdings was approved by a vote of the majority of the directors of Holdings then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved (who cannot include persons not elected by or recommended for election by the then-incumbent Board of Directors unless such Board of Directors of Holdings determines reasonably and in good faith that failure to approve any such persons as members of the Board of Directors of Holdings could reasonably be expected to violate a fiduciary duty under applicable law)), cease for any reason to constitute a majority of the Board of Directors of Holdings;

 

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(4)                                 (a) all or substantially all of the assets of Holdings and the Restricted Subsidiaries, taken as a whole, are sold or otherwise transferred to any Person other than a Wholly-Owned Restricted Subsidiary or one or more Permitted Holders or (b) Holdings consolidates, amalgamates or merges with or into another Person or any Person consolidates, amalgamates or merges with or into Holdings, in either case (a) or (b) in one transaction or a series of related transactions in which immediately after the consummation thereof Persons beneficially owning (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) Voting Stock representing in the aggregate a majority of the total voting power of the Voting Stock of Holdings immediately prior to such consummation do not beneficially own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) Voting Stock representing a majority of the total voting power of the Voting Stock of Holdings or the applicable surviving or transferee Person (or applicable parent thereof); provided that this clause (4) shall not apply (i) in the case where immediately after the consummation of the transactions Permitted Holders beneficially own Voting Stock representing in the aggregate a majority of the total voting power of Holdings or the applicable surviving or transferee Person (or applicable parent thereof) or (ii) to a consolidation, amalgamation or merger of Holdings with or into a (x) Person or (y) Wholly-Owned Subsidiary of a Person that, in either case, immediately following the transaction or series of transactions, has no Person or group (other than Permitted Holders) that beneficially owns Voting Stock representing 50% or more of the voting power of the total outstanding Voting Stock of such Person and, in the case of clause (y), the parent of such Wholly-Owned Subsidiary guarantees Holdings’ obligations under the Notes and this Indenture; or

 

(5)                                 Holdings shall adopt a plan of liquidation or dissolution or any such plan shall be approved by the shareholders of Holdings.

 

“Change of Control Triggering Event” means the occurrence of both a (1) Change of Control and (2) a Rating Decline.

 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Article III hereof substantially in the form of Exhibit A hereto, except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Global Note Legend” means the legend set forth in Section 3.07, which is required to be placed on all Global Notes issued hereunder.

 

“Global Notes” means, individually and collectively, Global Notes deposited with or on behalf of and registered in the name of the Depositary or its nominee, substantially in the form of Exhibit A and that bears the Global Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached thereto, issued in accordance with Section 2.14 of the Original Indenture and Section 2.07 hereof.

 

“Indirect Participant” means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Management Group” means at any time, the Chairman of the board of directors, the Chief Executive Officer, the President, any Managing Director, Executive Vice President, Senior Vice President or Vice President, any Treasurer and any Secretary of Holdings or other executive officer of Holdings or any Subsidiary of Holdings at such time.

 

“Par Call Date” means January 1, 2022.

 

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“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary.

 

“Permitted Holders” means Waha Capital and its Affiliates and the Management Group.  Any Person or group whose acquisition of beneficial ownership constitutes a Change of Control in respect of which a Change of Control Offer is made in accordance with the requirements of this Indenture will thereafter, together with its Affiliates, constitute an additional Permitted Holder.

 

“Rating Date” means the date that is the day prior to the initial public announcement by Holdings or the proposed acquirer that (i) the proposed acquirer has entered into one or more binding agreements with Holdings or shareholders of Holdings that would give rise to a Change of Control or (ii) the proposed acquirer has commenced an offer to acquire outstanding Voting Stock of Holdings.

 

“Rating Decline” shall be deemed to occur if on the 60th day following the occurrence of a Change of Control the rating of the Notes by two Rating Organizations, if the Notes are rated by all three Rating Organizations, or either Rating Organization, if the Notes are only rated by two Rating Organizations, shall have been (i) withdrawn or (ii) downgraded, by one or more degradations, from the ratings in effect on the Rating Date.

 

“Wholly-Owned Restricted Subsidiary” means any Wholly-Owned Subsidiary that is a Restricted Subsidiary.

 

“Wholly-Owned Subsidiary” of any Person means a Subsidiary of such Person, 100% of the outstanding Capital Stock or other ownership interests of which (other than directors’ qualifying shares) shall at the time be owned by such Person or by one or more Wholly-Owned Subsidiaries of such Person.

 

SECTION 1.02.                                   Other Definitions.

 

	
Term
    	
 
    	
Defined in Section
    
	
 
    	
 
    	
 
    
	
“Change of Control Offer”
    	
 
    	
5.01(a)
    
	
“Change of Control Payment”
    	
 
    	
5.01(a)
    
	
“Change of Control Payment Date”
    	
 
    	
5.01(b)(ii)
    
	
“Interest Payment Date”
    	
 
    	
2.05
    
	
“Record Date”
    	
 
    	
2.05
    

 

ARTICLE II

 

DESIGNATION AND TERMS OF THE NOTES

 

SECTION 2.01.                                   Title and Aggregate Principal Amount.  There is hereby created one Series of Notes designated: 3.950% Senior Notes Due 2022 in an initial aggregate principal amount of $1,000,000,000.

 

4

 

SECTION 2.02.                                   Execution.  The Notes may forthwith be executed by the Issuers and delivered to the Trustee for authentication and delivery by the Trustee in accordance with the provisions of Section 2.04 of the Original Indenture.

 

SECTION 2.03.                                   Other Terms and Form of the Notes.  The Notes shall have and be subject to such other terms as provided in the Original Indenture and this Ninth Supplemental Indenture and shall be evidenced by one or more Global Notes in the form of Exhibit A hereof and as set forth in Section 2.07 hereof; provided, notwithstanding anything in the Original Indenture to the contrary, for purposes of this Ninth Supplemental Indenture and this series of 3.950% Senior Notes Due 2022, clause (g) of the definition of Permitted Liens shall be modified and replaced in its entirety as set forth below:

 

“any replacement or successive replacement in whole or in part of any Liens referred to in the foregoing clauses (a) to (f), inclusive; provided, however, that the principal amount of the indebtedness for borrowed money secured by the Liens shall not be increased and the stated maturity of such indebtedness shall remain the same or be extended and (A) such replacement shall be limited to all or part of the property that secured the indebtedness for borrowed money so replaced (plus improvements and construction on such property), or (B) if the property that secured the indebtedness for borrowed money so replaced has been destroyed, condemned or damaged and pursuant to the terms of such indebtedness other property has been substituted therefor, then such replacement shall be limited to all or part of such substituted property;”.

 

SECTION 2.04.                                   Further Issues.  The Issuers may from time to time, without the consent of the Holders of the Notes and in accordance with the Original Indenture and this Ninth Supplemental Indenture, create and issue further notes having the same terms and conditions as the Notes in all respects (or in all respects except for the first payment of interest) so as to form a single Series with the Notes.  The Notes and any such further notes shall be treated as a single class for all purposes under this Indenture; provided that if any such further notes are not fungible with the Notes for U.S. Federal income tax purposes, such further notes will have a separate CUSIP number, if applicable.  Unless the context otherwise requires, all references to the Notes shall include any such further notes.

 

SECTION 2.05.                                   Interest and Principal.  The Notes will mature on February 1, 2022 and will bear interest at the rate of 3.950% per annum.  The Issuers will pay interest on the Notes on each February 1 and August 1 (each an “Interest Payment Date”), beginning on August 1, 2016, to the Holders of record on the immediately preceding January 15 or July 15 (each a “Record Date”), respectively.  Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from and including the date of issuance.  Payments of the principal of and interest on the Notes shall be made in Dollars, and the Notes shall be denominated in Dollars.

 

SECTION 2.06.                                   Place of Payment.  The place of payment where the Notes issued in the form of Definitive Notes may be presented or surrendered for payment, where the principal of and interest and any other payments due on the Notes issued in the form of Definitive Notes are payable and where the Notes may be surrendered for registration of transfer or exchange shall be the office or agency of the Issuers maintained for that purpose pursuant to  Section 2.05 of the Original Indenture, and the office or agency maintained by the Issuers for such purpose shall initially be the Corporate Trust Office of the Trustee.

 

5

 

All payments on Notes issued in the form of Global Notes shall be made by wire transfer of immediately available funds to the Depositary and, at the option of the Issuers, payment of interest on the Notes issued in the form of Definitive Notes may be made by check mailed to registered Holders.

 

SECTION 2.07.                                   Form and Dating.

 

(a)                                 General.  The Notes will be substantially in the form of Exhibit A hereto.  The terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Ninth Supplemental Indenture and the Issuers and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.  However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling.

 

(b)                                 Global Notes.  Notes issued in global form will be substantially in the form of Exhibit A attached hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto).  Notes issued in definitive form will be substantially in the form of Exhibit A attached hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto).  Each Global Note will represent such of the outstanding principal amount of the Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Article III hereof.

 

SECTION 2.08.                                   [Reserved].

 

SECTION 2.09.                                   Depositary; Registrar.  The Issuers initially appoint DTC to act as Depositary with respect to the Global Notes.  The Issuers initially appoint the Trustee to act as the Registrar and the Paying Agent with respect to the Notes.

 

SECTION 2.10.                                   Optional Redemption.

 

(a)                                 Prior to the Par Call Date, the Issuers may redeem all or part of the Notes, upon not less than 30 nor more than 60 days’ prior notice mailed by first class mail to each Holder’s registered address, or delivered electronically if held by DTC, at a redemption price equal to the greater of (i) 100% of the principal amount of Notes and (ii) the sum of the present value at such redemption date of all remaining scheduled payments of principal and interest on such Note through the Par Call Date (excluding accrued but unpaid interest to the redemption date)), discounted to the date of redemption using a discount rate equal to the Treasury Rate plus 45 basis points, plus, in each case, accrued and unpaid interest, if any, to, but not including, the  redemption date, subject to the rights of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.

 

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(b)                                 On or after the Par Call Date, the Notes may be redeemed at the Issuers’ option, at any time in whole or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, subject to the rights of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.

 

SECTION 2.11.                                   Redemption for Changes in Withholding Taxes.

 

(a)                                 The Issuers are entitled to redeem the Notes, at the option of the Issuers, at any time in whole but not in part, upon not less than 30 nor more than 60 days’ notice (which notice shall be irrevocable) to the Holders mailed by first-class mail to each Holder’s registered address (or delivered electronically if held by DTC), at 100% of the principal amount thereof, plus accrued and unpaid interest, to the date of redemption (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date), in the event the Issuers have become or would become obligated to pay, on the next date on which any amount would be payable with respect to the Notes, any Additional Amounts as a result of:

 

(i)                                     a change in or an amendment to the laws (including any regulations, protocols or rulings promulgated and treaties enacted thereunder) of any Relevant Taxing Jurisdiction affecting taxation; or

 

(ii)                                  any change in or amendment to, or the introduction of, any official position regarding the application, administration or interpretation of such laws, regulations, treaties or rulings (including a holding, judgment or order by a court of competent jurisdiction),

 

which change or amendment is announced or becomes effective on or after the date of this Ninth Supplemental Indenture and where the Issuers cannot avoid such obligation by taking reasonable measures available to the Issuers.  Notwithstanding the foregoing, no such notice of redemption will be given (x) earlier than 90 days prior to the earliest date on which the Issuers would be obliged to make such payment of Additional Amounts and (y) unless at the time such notice is given, such obligation to pay such Additional Amounts remains in effect.

 

(b)                                 Before the Issuers publish or mail or deliver notice of redemption of the Notes as described above, the Issuers will deliver to the Trustee an Officers’ Certificate stating that the Issuers cannot avoid their obligation to pay Additional Amounts by taking reasonable measures available to them and that all conditions precedent to the redemption have been complied with.  The Issuers will also deliver an Opinion of Counsel from outside counsel stating that the Issuers would be obligated to pay Additional Amounts as a result of a change in tax laws or regulations or a new application or interpretation of such laws or regulations and that all conditions precedent to the redemption have been complied with.

 

7

 

(c)                                  This Section will apply mutatis mutandis to any jurisdiction in which any successor Person to an Issuer or a Guarantor is incorporated or organized or any political subdivision or taxing authority or agency thereof or therein.

 

ARTICLE III

 

TRANSFER AND EXCHANGE

 

SECTION 3.01.                                   Transfer and Exchange of Global Notes.  A Global Note may not be transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.  All Global Notes shall be exchangeable pursuant to Section 2.08 of the Original Indenture for Definitive Notes if:

 

(a)                                 the Issuers deliver to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the Issuers within 90 days after the date of such notice from the Depositary;

 

(b)                                 the Issuers in their sole discretion determine that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and deliver a written notice to such effect to the Trustee; or

 

(c)                                  an Event of Default with respect to the Notes represented by such Global Note shall have occurred and be continuing and the Holders of a majority in principal amount of the Notes have requested the Issuers to issue Definitive Notes.

 

Upon the occurrence of any of the preceding events in (a), (b) or (c) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Issuers and the Trustee.  Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.09 and 2.11 of the Original Indenture.  A Global Note may not be exchanged for a Definitive Note other than as provided in this Section 3.01; however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 3.02 or 3.03 hereof.

 

SECTION 3.02.                                   Transfer and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial interests in the Global Notes will be effected through the Depositary, in accordance with the provisions of this Ninth Supplemental Indenture and the Applicable Procedures.  The transferor of such beneficial interest must deliver to the Registrar either:

 

(a)                                 both:

 

(A)                               a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

8

 

(B)                               instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase; or

 

(b)                                 both:

 

(A)                               a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

(B)                               instructions given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (A) above.

 

Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 3.08 hereof.

 

SECTION 3.03.                                   Transfer or Exchange of Beneficial Interests in Global Notes for Definitive Notes.  Subject to the terms hereof, including Section 3.01 hereof, if any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 3.02 hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 3.08 hereof, and the Issuers will execute and the Trustee, upon receipt of a Company Order in accordance with Section 2.04 of the Original Indenture, will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 3.03 will be registered in such name or names and in such authorized denomination or denominations as the Holder of such beneficial interest requests through instructions to the Registrar from or through the Depositary and the Participant or Indirect Participant.  The Trustee will deliver such Definitive Notes to the Persons in whose names such Notes are so registered.

 

SECTION 3.04.                                   Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.  A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time.  Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause to be increased the aggregate principal amount of one of the Global Notes.

 

If any such exchange or transfer from a Definitive Note to a beneficial interest is effected at a time when a Global Note has not yet been issued, the Issuers will issue and, upon receipt of a Company Order in accordance with Section 2.04 of the Original Indenture, the Trustee will authenticate one or more Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

 

9

 

SECTION 3.05.                                   Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 3.05, the Registrar will register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or exchange, the requesting Holder must present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing.

 

SECTION 3.06.                                   [Reserved].

 

SECTION 3.07.                                   Legend.  The following legend will appear on the face of all Global Notes issued under this Ninth Supplemental Indenture unless specifically stated otherwise in the applicable provisions of this Ninth Supplemental Indenture:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO ARTICLE III OF THE NINTH SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT 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 OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENTS FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

SECTION 3.08.                                   Cancellation and/or Adjustment of Global Notes.

 

At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in  whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.12 of the Original Indenture.

 

10

 

At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

 

SECTION 3.09.                                   General Provisions Relating to Transfers and Exchanges.

 

(a)                                 To permit registrations of transfers and exchanges, the Issuers will execute and the Trustee will authenticate Global Notes and Definitive Notes upon receipt of a Company Order in accordance with Section 2.04 of the Original Indenture.

 

(b)                                 No service charge will be made to a Holder of a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Issuers may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.11, 3.06 and 9.04 of the Original Indenture and Section 5.01 of this Ninth Supplemental Indenture).

 

(c)                                  The Registrar will not be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

 

(d)                                 All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be the valid obligations of the Issuers, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(e)                                  The Issuers will not be required:

 

(A)                               to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.02 of the Original Indenture and ending at the close of business on the day of selection;

 

(B)                               to register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part; or

 

(C)                               to register the transfer of or to exchange a Note between a Record Date and the next succeeding Interest Payment Date.

 

11

 

(f)                                   Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Issuers may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuers shall be affected by notice to the contrary.

 

(g)                                  The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.04 of the Original Indenture.

 

(h)                                 All certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to Article III to effect a registration of transfer or exchange may be submitted by facsimile.

 

(i)                                     Each Holder agrees to indemnify the Issuers, the Registrar and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Note in violation of any provision of this Indenture and/or applicable United States federal or state securities law.  Neither the Trustee nor the Registrar shall have any obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

ARTICLE IV

 

LEGAL DEFEASANCE, COVENANT DEFEASANCE
  AND SATISFACTION AND DISCHARGE

 

SECTION 4.01.                                   Legal Defeasance, Covenant Defeasance and Satisfaction and Discharge.  Article VIII of the Original Indenture shall be applicable to the Notes.  The Issuers may defease the covenant contained in Section 5.01 of this Ninth Supplemental Indenture under the provisions of Section 8.03 of the Original Indenture.

 

ARTICLE V

 

COVENANTS

 

SECTION 5.01.                                   Repurchase upon a Change of Control Triggering Event.

 

(a)                                 Upon the occurrence of a Change of Control Triggering Event after the date of this Ninth Supplemental Indenture, unless the Issuers have previously or concurrently sent a redemption notice with respect to all the Outstanding Notes as described in Section 3.03 of the Original Indenture, the Issuers will make an offer to purchase all of the Notes pursuant to the offer described below (the “Change of Control Offer”) at a price in cash (the “Change of Control Payment”) equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest to, but not including, the date of purchase, subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.

 

12

 

(b)                                 Within 30 days following any Change of Control Triggering Event, the Issuers will send notice of such Change of Control Offer by first-class mail, or delivered electronically if held by DTC, with a copy to the Trustee, to each Holder of Notes to the address of such Holder appearing in the register or otherwise in accordance with the procedures of DTC, with the following information:

 

(i)                                     a Change of Control Offer is being made pursuant to this Section 5.01 and that all Notes properly tendered pursuant to such Change of Control Offer will be accepted for payment;

 

(ii)                                  the purchase price and the purchase date, which will be no earlier than 30 days nor later than 60 days from the date such notice is mailed or delivered (the “Change of Control Payment Date”);

 

(iii)                               any Note not properly tendered will remain Outstanding and continue to accrue interest;

 

(iv)                              unless the Issuers default in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest on, but not including, the Change of Control Payment Date;

 

(v)                                 the instructions determined by the Issuers consistent with this covenant that a Holder must follow in order to have its Notes purchased or to cancel a previous order of purchase; and

 

(vi)                              if such notice is mailed or delivered prior to the occurrence of a Change of Control Triggering Event, stating the Change of Control Offer is conditional on the occurrence of such Change of Control Triggering Event.

 

(c)                                  While the Notes are in global form, when the Issuers make an offer to purchase all of the Notes pursuant to the Change of Control Offer, a Holder may exercise its option to elect for the purchase of the Notes through the facilities of DTC, subject to DTC’s rules and regulations.

 

(d)                                 If Holders of not less than 90% in aggregate principal amount of the Outstanding Notes validly tender and do not withdraw such Notes in a Change of Control Offer and the Issuers, or any other Person making a Change of Control Offer in lieu of the Issuers as described below, purchase all of the Notes validly tendered and not withdrawn by such Holders, the Issuers will have the right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30 days following such purchase pursuant to the Change of Control Offer described above, to redeem all Notes that remain Outstanding following such purchase at a redemption price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, to, but not including, the date of redemption (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date).

 

(e)                                  The Issuers will not be required to make a Change of Control Offer following a Change of Control Triggering Event if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in  this Indenture applicable to a Change of Control Offer made by the Issuers and purchases all Notes validly tendered and not withdrawn pursuant to such Change of Control Offer or (2) notice of redemption has been given pursuant to this Indenture as described in Section 3.03 of the Original Indenture, unless and until there is a default in payment of the applicable redemption price.

 

13

 

Notwithstanding anything to the contrary herein, a Change of Control Offer may be made in advance of a Change of Control Triggering Event, conditional upon such Change of Control Triggering Event.

 

(f)                                   Notes repurchased by the Issuers pursuant to a Change of Control Offer will have the status of Notes issued but not Outstanding or will be retired and canceled at the option of the Issuers.  Notes purchased by a third party pursuant to the preceding paragraph will have the status of Notes issued and Outstanding.

 

(g)                                  The Issuers will comply with the requirements of Section 14(e) under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws or regulations are applicable in connection with the repurchase of the Notes pursuant to a Change of Control Offer.  To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Indenture, the Issuers will comply with the applicable securities laws and regulations and shall not be deemed to have breached their obligations described in this Indenture by virtue thereof.

 

(h)                                 On the Change of Control Payment Date, the Issuers (or any Person making a Change of Control Offer in lieu of the Issuers) will, to the extent permitted by law,

 

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

 

(ii)                                  deposit with the Paying Agent an amount equal to the aggregate Change of Control Payment in respect of all Notes or portions thereof so tendered;

 

(iii)                               at the option of the Issuers, unless a Person is making a Change of Control Offer in lieu of the Issuers, deliver, or cause to be delivered, to the Trustee for cancellation the Notes so accepted together with an Officers’ Certificate stating that such Notes or portions thereof have been tendered to and purchased by the Issuers; and

 

(iv)                              the Paying Agent will promptly mail or otherwise deliver to each Holder of the Notes the Change of Control Payment for such Notes, and the Issuers shall execute and the Trustee, upon a Company Order, will promptly authenticate and mail, or will cause to be delivered electronically if held by DTC, to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be in a minimum denomination of $150,000 and an integral multiple of $1,000 above that amount.  The Issuers will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

 

(i)                                     Other than as specifically provided in this Section, any purchase pursuant to this Section shall be made pursuant to the provisions of Article III of the Original Indenture.

 

14

 

ARTICLE VI

 

MISCELLANEOUS

 

SECTION 6.01.                                   Ratification of Original Indenture; Supplemental Indenture Part of Original Indenture.  Except as expressly amended hereby, the Original Indenture, including Section 11.18 thereof regarding submission to jurisdiction, is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Ninth Supplemental Indenture shall form a part of the Original Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

 

SECTION 6.02.                                   Concerning the Trustee.  The recitals contained herein and in the Notes, except with respect to the Trustee’s certificates of authentication, shall be taken as the statements of the Issuers, and the Trustee assumes no responsibility for the correctness of the same.  The Trustee makes no representations as to the validity or sufficiency of this Ninth Supplemental Indenture or of the Notes.

 

SECTION 6.03.                                   Multiple Originals; Electronic Signatures.  This Ninth Supplemental Indenture may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.  The exchange of copies of this Ninth Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Ninth Supplemental Indenture as to the parties hereto and may be used in lieu of the original Ninth Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

SECTION 6.04.                                   GOVERNING LAW.  THIS NINTH SUPPLEMENTAL INDENTURE AND EACH NOTE OF THE SERIES CREATED HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

[Signature Page Follows]

 

15

 

IN WITNESS WHEREOF, the parties have caused this Ninth Supplemental Indenture to be duly executed by their respective officers thereunto duly authorized as of the date first above written.

 

	
 
    	
SIGNED AND DELIVERED AS A DEED by
    
	
 
    	
 
    
	
 
    	
/s/ Thomas Kelly
    
	
 
    	
 
    
	
 
    	
As Attorney of AERCAP IRELAND CAPITAL LIMITED in the presence of:
    
	
 
    	
 
    
	
 
    	
Name:
    	
Amy Smyth
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Senior Manager
    
	
 
    	
 
    
	
 
    	
SIGNED AND DELIVERED AS A DEED for and on behalf of AERCAP GLOBAL   AVIATION TRUST, a Delaware statutory trust by AerCap Ireland Capital Limited,   its Regular Trustee
    
	
 
    	
 
    
	
 
    	
Name:
    	
/s/ Thomas Kelly
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Chief Executive   Officer
    
	
 
    	
 
    
	
 
    	
in the presence of:
    
	
 
    	
 
    
	
 
    	
Signature:
    	
/s/ Amy Smyth
    
	
 
    	
Name:
    	
Amy Smyth
    
	
 
    	
Address:  
    	
4450 Atlantic   Avenue
    
	
 
    	
 
    	
Westpark
    
	
 
    	
 
    	
Shannon
    
	
 
    	
 
    	
Co. Clare
    
	
 
    	
 
    	
Ireland
    
					

 

[Signature Page to Ninth Supplemental Indenture]

 

 

	
 
    	
AERCAP HOLDINGS N.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Aengus Kelly
    
	
 
    	
 
    	
Name:  Aengus Kelly
    
	
 
    	
 
    	
Title:  CEO
    
	
 
    	
 
    
	
 
    	
AERCAP AVIATION SOLUTIONS B.V.
    
	
 
    	
 
    
	
 
    	
represented by   its sole Managing Director, AERCAP GROUP SERVICES B.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard   Maasland
    
	
 
    	
 
    	
Name:  Richard Maasland
    
	
 
    	
 
    	
Title:  Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Johan-Willem   Dekkers
    
	
 
    	
 
    	
Name:  Johan-Willem Dekkers
    
	
 
    	
 
    	
Title:  Authorized Signatory
    
	
 
    	
 
    
	
 
    	
SIGNED AND DELIVERED AS A DEED by
    
	
 
    	
 
    
	
 
    	
/s/ Thomas Kelly
    
	
 
    	
 
    
	
 
    	
As Attorney of AERCAP IRELAND LIMITED in the presence of:
    
	
 
    	
 
    
	
 
    	
Name:
    	
Amy Smyth
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Senior Manager
    
	
 
    	
 
    
	
 
    	
AERCAP U.S. GLOBAL AVIATION LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas Kelly
    
	
 
    	
 
    	
Name:  Thomas Kelly
    
	
 
    	
 
    	
Title:  Director
    
	
 
    	
 
    
	
 
    	
INTERNATIONAL LEASE FINANCE CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sean   Sullivan
    
	
 
    	
 
    	
Name: Sean Sullivan
    
	
 
    	
 
    	
Title: Chief Executive   Officer
    

 

[Signature Page to Ninth Supplemental Indenture]

 

 

	
 
    	
WILMINGTON TRUST, NATIONAL 
    
	
 
    	
ASSOCIATION, as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jane   Schweiger
    
	
 
    	
 
    	
Name:  Jane Schweiger
    
	
 
    	
 
    	
Title:  Vice President
    

 

[Signature Page to Ninth Supplemental Indenture]

 

 

EXHIBIT A

 

[Face of Note]

 

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

 

CUSIP/ISIN 00772B AR2/US00772BAR24

 

3.950% Senior Notes Due 2022

 

	
No. [  ]
    	
$[        ]
    

 

AERCAP IRELAND CAPITAL LIMITED and AERCAP GLOBAL AVIATION TRUST promise, jointly and severally, to pay to [            ] or registered assigns, the principal sum of [           ] Dollars on February 1, 2022 or such greater or lesser amount as may be indicated in Schedule A hereto.

 

Interest Payment Dates:  February 1 and August 1

 

Record Dates:  January 15 and July 15

 

Additional provisions of this Note are set forth on the other side of this Note.

 

A-1

 

IN WITNESS WHEREOF, the parties have caused this instrument to be duly executed.

 

	
 
    	
AERCAP IRELAND CAPITAL LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
AERCAP GLOBAL AVIATION TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This Note is one of the 3.950% Senior Notes Due 2022 referred to in the within-mentioned Indenture.

 

Dated:

 

WILMINGTON TRUST, NATIONAL ASSOCIATION, 
 as Trustee

 

	
by
    	
 
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    

 

A-3

 

[Reverse of Note]

 

3.950% Senior Notes Due 2022

 

1.                                      Indenture

 

This Note is one of a duly authorized issue of Notes of the Issuers, designated as their 3.950% Senior Notes Due 2022 (herein called the “Notes,” which expression includes any further notes issued pursuant to Section 2.04 of the Ninth Supplemental Indenture (as hereinafter defined) and forming a single Series therewith), issued and to be issued under an indenture, dated as of May 14, 2014 (herein called the “Original Indenture”), as supplemented by an ninth supplemental indenture, dated as of May 23, 2016 (the “Ninth Supplemental Indenture,” and together with the Original Indenture, the “Indenture”), among AERCAP IRELAND CAPITAL LIMITED, a private limited company incorporated under the laws of Ireland (the “Irish Issuer”), AERCAP GLOBAL AVIATION TRUST, a statutory trust organized under the law of Delaware (the “U.S. Issuer” and, together with the Irish Issuer, the “Issuers,” and each, an “Issuer”), AERCAP HOLDINGS N.V., a public limited liability company organized under the laws of the Netherlands (“Holdings”), each of Holdings’ subsidiaries signatory thereto or that becomes a Guarantor pursuant to the terms of the Indenture (the “Subsidiary Guarantors”) and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States, as trustee (the “Trustee”).  Reference is hereby made to the Indenture and all indentures supplemental thereto relevant to the Notes for a complete description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Issuers and the Holders of the Notes.  Capitalized terms used but not defined in this Note shall have the meanings ascribed to them in the Indenture.

 

The Indenture imposes certain limitations on the ability of Holdings and its Restricted Subsidiaries to create or incur Liens.  The Indenture also imposes certain limitations on the ability of the Holdings and its Restricted Subsidiaries to merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of the property of Holdings and its Restricted Subsidiaries in any one transaction or series of related transactions.

 

Each Note is subject to, and qualified by, all such terms as set forth in the Indenture certain of which are summarized herein and each Holder of a Note is referred to the corresponding provisions of the Indenture for a complete statement of such terms.  To the extent that there is any inconsistency between the summary provisions set forth in the Notes and the Indenture, the provisions of the Indenture shall govern.

 

2.                                      Interest

 

The Issuers promise to pay interest on the principal amount of this Note at the rate per annum shown above.  The Issuers will pay interest semiannually on February 1 and August 1 of each year, commencing on August 1, 2016.  Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from and including May 23, 2016.  Interest shall be computed on the basis of a 360-day year of twelve 30 day months.

 

A-4

 

3.                                      Paying Agent, Registrar and Service Agent

 

Initially the Trustee will act as paying agent and registrar.  Initially, CT Corporation System will act as service agent.  The Issuers may appoint and change any paying agent, registrar or service agent without notice.  Holdings or any of its Subsidiaries may act as paying agent, registrar or service agent.

 

4.                                      Defaults and Remedies; Waiver

 

Article VI of the Original Indenture sets forth the Events of Default and related remedies applicable to the Notes.

 

5.                                      Amendment

 

Article IX of the Original Indenture sets forth the terms by which the Notes and the Indenture may be amended.

 

6.                                      Change of Control

 

Upon the occurrence of a Change of Control Triggering Event, unless the Issuers have previously or concurrently sent a redemption notice with respect to all the Outstanding Notes as described in Section 3.03 of the Original Indenture, the Issuers will make an offer to purchase all of the Notes at a price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest to, but not including, the date of purchase, subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.

 

7.                                      Obligations Absolute

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligations of the Issuers, which are absolute and unconditional, to pay the principal of and any premium and interest on this Note at the place, at the respective times, at the rate and in the coin or currency herein prescribed.

 

8.                                      Sinking Fund

 

The Notes will not have the benefit of any sinking fund.

 

9.                                      Denominations; Transfer; Exchange

 

The Notes are issuable in registered form without coupons in minimum denominations of $150,000 principal amount and any integral multiple of $1,000 in excess thereof.  When Notes are presented to the Registrar with a request to register a transfer or to exchange them for an equal principal amount of Notes of the same Series, the Registrar shall register the transfer or make the exchange in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer  pursuant to Sections 2.11 and 9.04 of the Original Indenture and Section 5.01 of the Ninth Supplemental Indenture).

 

A-5

 

The Issuers and the Registrar shall not be required (a) to issue, register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.02 of the Original Indenture and ending at the close of business on the day of selection; (b) to register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part; or (c) to register the transfer of or to exchange a Note between a Record Date and the next succeeding Interest Payment Date.

 

10.                               Further Issues

 

The Issuers may from time to time, without the consent of the Holders of the Notes and in accordance with the Indenture, create and issue further notes having the same terms and conditions as the Notes in all respects (or in all respects except for the first payment of interest) so as to form a single Series with the Notes.

 

11.                               Optional Redemption

 

(a)                                 Prior to the Par Call Date, the Issuers may redeem all or part of the Notes, upon not less than 30 nor more than 60 days’ prior notice mailed by first class mail to each Holder’s registered address, or delivered electronically if held by DTC, at a redemption price equal to the greater of (i) 100% of the principal amount of Notes or (ii) the sum of the present value at such redemption date of all remaining scheduled payments of principal and interest on such Note through the Par Call Date (excluding accrued but unpaid interest to the redemption date)), discounted to the date of redemption using a discount rate equal to the Treasury Rate plus 45 basis points, plus, in each case, accrued and unpaid interest, if any, to but not including, the redemption date, subject to the rights of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.

 

(b)                                 On or after the Par Call Date, the Notes may be redeemed at the Issuers’ option, at any time in whole or from time to time in part, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, subject to the rights of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.

 

12.                               Persons Deemed Owners

 

The ownership of Notes shall be proved by the register maintained by the Registrar.

 

13.                               No Recourse Against Others

 

No director, officer, employee, incorporator or stockholder of the Issuers, as such, will have any liability for any obligations of the Issuers under the Notes, the Indenture, or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such liability.  The waiver and release are part of the  consideration for issuance of the Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

 

A-6

 

14.                               Discharge and Defeasance

 

Subject to certain conditions set forth in the Indenture, the Issuers at any time may terminate some or all of their obligations under the Notes and the Indenture if the Issuers deposit with the Trustee money and/or U.S. Government Obligations for the payment of principal of, premium, if any, and interest on the Notes to redemption or maturity, as the case may be.

 

15.                               Unclaimed Money

 

Any money deposited with the Trustee or any Paying Agent, or then held by an Issuer, in trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Issuers on their request or, if then held by an Issuer, shall be discharged from such trust.  Thereafter the Holder of such Note shall look only to the Issuers for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuers as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Issuers cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Issuers.

 

16.                               Trustee Dealings with the Issuers

 

Subject to certain limitations imposed by the TIA, the Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuers or their Affiliates with the same rights it would have if it were not Trustee.  Any Paying Agent, Registrar or co paying agent may do the same with like rights.

 

17.                               Abbreviations

 

Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

 

18.                               CUSIP Numbers

 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on the Notes and have directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

A-7

 

19.                               Governing Law

 

THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Issuers will furnish to any Holder of Notes upon written request and without charge to the Holder a copy of the Indenture.

 

A-8

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	
(I) or (we) assign and transfer   this Note to                                                                                                        
    
	
(Insert assignee’s legal name)
    

 

	
 
    
	
(Insert assignee’s soc. sec. or tax   I.D. no.)
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type assignee’s name,   address and zip code)
    

 

and irrevocably appoint to transfer this Note on the books of the Issuers.  The agent may substitute another to act for him or her.

 

	
Date:
    	
 
    	
 
    

 

	
 
    	
Your Signature:
    	
 
    
	
 
    	
 
    	
(Sign exactly as your name
    
	
 
    	
 
    	
appears on the face of this
    
	
 
    	
 
    	
Note)
    

 

Signature Guarantee*:

 

*                 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

A-9

 

Option of Holder to Elect Purchase

 

If you want to elect to have this Note purchased by the Issuers pursuant to Section 5.01 of the Ninth Supplemental Indenture, check the box: o

 

If you want to elect to have only part of the Note purchased by the Issuers pursuant to Section 5.01 of the Ninth Supplemental Indenture, state the amount you elect to have purchased:

 

	
$
    	
 
    	
 
    

 

Date:

 

	
Your Signature:
    	
 
    
	
 
    	
(Sign exactly as your name appears on the face of this Note)
    

 

	
 
    	
Tax Identification No.:
    	
 
    

 

Signature Guarantee*:

 

*                 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

A-10

 

Schedule A

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

 

The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	
Date of Exchange
    	
 
    	
Amount of decrease
   in Principal Amount
   of this Global Note
    	
 
    	
Amount of increase
   in Principal Amount
   of this Global Note
    	
 
    	
Principal Amount of
   this Global Note
   following such
   decrease or increase
    	
 
    	
Signature of
   authorized officer of
   Trustee or Custodian
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

*                 This schedule should be included only if the Note is issued in Global Form

 

A-11Exhibit 10.1

 

 

Effective Date:   5/19/2016

 

Inovalon Holdings, Inc.

Executive Change in Control Severance Plan

 

ARTICLE I

 

Purpose

 

This Executive Change in Control Severance Plan has been established by the Company on May 19, 2016 (the “Effective Date”) to provide Participants with the opportunity to receive severance protections in connection with a Change in Control of the Company. Although no Change in Control is currently anticipated, in the ultimate event the Company is acquired, the Board desires to assure the present and future continuity, objectivity and dedication of management; to keep management focused on maximizing the value of the Company; and to acknowledge, retain, and provide certain protections for certain individuals who have been particularly important to the success of the Company and who would be expected to continue to be important to the continued success of the Company going forward.

 

The Plan is intended to be a “top hat” welfare benefit plan under ERISA.  Capitalized terms used but not otherwise defined herein have the meanings set forth in Appendix A.

 

ARTICLE II

 

Participation

 

Section 2.01         Participants. The Administrator will designate the Eligible Employees who will participate in the Plan (each, a “Participant”) and provide written notice to each such Participant.  The initial list of titles and/or levels of Eligible Employees, which may be amended from time to time at the discretion of the Administrator subject to Section 2.02, is set forth in Appendix B.

 

Section 2.02         Designation. The Administrator may amend the designated titles and/or levels of Eligible Employees set forth in Appendix B and/or reduce an Applicable Severance Multiplier; provided that no such amendment or reduction will be effective if made: (i) during the Covered Period; (ii) in connection with or in anticipation of a Change in Control; or (iii) at such time as the Participant who is affected by an amendment, removal or reduction is entitled to payments of Severance or any other amounts payable under the Plan.

 

ARTICLE III

 

Severance

 

Section 3.01         Severance. If a Participant has a Qualifying Termination, then, subject to Article V, the Company will provide the Participant with the following:

 

(a)           Severance in an amount equal to the product of the Participant’s Applicable Severance Multiplier times the Participant’s base salary in effect on the date of the Qualifying Termination or, if greater, in effect on the date of the Change in Control (“Severance”).

 

 

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(b)           Subject to Sections 9.12 and 9.13, Severance will be paid in a single lump-sum on the 61st day following the Qualifying Termination.

 

ARTICLE IV

 

Equity Awards

 

Section 4.01         Equity Awards.  Notwithstanding the terms of the Company’s equity plan or plans under which a Participant’s equity awards are granted or any applicable award agreements, if a Participant has a Qualifying Termination, then, subject to Article V:

 

(a)           all of the Participant’s outstanding unvested time-based equity awards will become fully vested and any restrictions thereon will lapse and, in the case of stock options and stock appreciation rights, will remain exercisable for the remainder of their full term; and

 

(b)           all of the Participant’s outstanding unvested equity awards with performance-based vesting, will be deemed achieved at target levels with respect to performance goals or other vesting criteria.

 

All references to “equity awards” in this Section 4.01 refer only to awards issued to a Participant in connection with a Participant’s employment or service to the Company under the Company’s equity plan or plans, including any predecessor or successor equity plans (collectively, “Company Plans”).  For the sake of clarity, unless otherwise specified in Appendix B, “equity awards” do not include equity issued outside of a Company Plan under a separate agreement, such as, for example, equity compensation issued under an acquisition agreement or equity issued under equity plans of entities acquired by the Company.

 

ARTICLE V

 

Conditions

 

Section 5.01         Conditions. A Participant’s entitlement to any severance benefits under Article III and Article IV will be subject to:

 

(a)           the Participant having a Qualifying Termination; and

 

(b)           the Participant executing a release of claims in favor of the Company, its affiliates, and their respective officers and directors, in a form that is to the reasonable satisfaction of the Company (the “Release”) and such Release becoming effective and irrevocable within 60 days following the Participant’s Qualifying Termination.

 

ARTICLE VI

 

Section 280G

 

Section 6.01         Reduction. Notwithstanding any other provision of the Plan or any other plan, arrangement or agreement to the contrary, if any payment or benefit the Participant would receive from the Company or otherwise (“Covered Payments”) would constitute parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Code; and but for this Article VI, be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then such Covered Payments will be equal to either (x) the largest portion of the Covered Payments that would result in no portion of the Covered Payments being subject to the Excise Tax; or (y) the largest portion, up to and including the total, of the Covered Payments, whichever amount, after taking into account all applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax) (all computed at the highest applicable marginal rate), results in such Participant’s receipt, on an after-tax basis, of the greater amount of the Covered Payments (the “Reduced Amount”).  If a reduction in payments or benefits constituting Parachute Payments is necessary so that the Covered Payments equal the Reduced Amount, reduction will occur in the following order: first, the Covered Payments which do not constitute nonqualified deferred compensation subject to Section 409A of the Code will be reduced; second, reduction of cash payments; third, cancellation of accelerated vesting of equity awards; and fourth, reduction of employee benefits.  In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting will be cancelled in the reverse order of the date of

 

 

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grant of the Participant’s equity award.  The reduction of amounts within any of the foregoing categories will be made in the order that will provide the Participant with the largest amount of after-tax proceeds.

 

Section 6.02         Determinations. Any determination required under this Article VI will be made in writing in good faith by the accounting firm selected by the Company immediately before the occurrence of the Change in Control (the “Accountants”), which will provide detailed supporting calculations to the Company and the Participant as requested by the Company or the Participant. The Company and the Participant will provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination under this Article VI. For purposes of making the calculations and determinations required by this Article VI, the Accountants may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Accountants’ determinations will be final and binding on the Company and the Participant. The Company will be responsible for all fees and expenses incurred by the Accountants in connection with the calculations required by this Article VI.

 

ARTICLE VII

 

Claims Procedures

 

Section 7.01         Initial Claims. In order to file a claim to receive benefits under the Plan, the Participant or his or her authorized representative must submit a written claim for benefits to the Plan within 60 days after the Participant’s Qualifying Termination.  Claims should be addressed and sent to:

 

Inovalon Holdings, Inc.

Attn: Board of Directors

4321 Collington Road

Bowie, MD 20716

 

If the Participant’s claim is denied, in whole or in part, the Participant will be furnished with written notice of the denial within 90 days after the Administrator’s receipt of the Participant’s written claim, unless special circumstances require an extension of time for processing the claim, in which case a period not to exceed 180 days will apply.  If such an extension of time is required, written notice of the extension will be furnished to the Participant before the termination of the initial 90-day period and will describe the special circumstances requiring the extension, and the date on which a decision is expected to be rendered. Written notice of the denial of the Participant’s claim will contain the following information:

 

(a)           the specific reason or reasons for the denial of the Participant’s claim;

 

(b)           references to the specific Plan provisions on which the denial of the Participant’s claim was based;

 

(c)           a description of any additional information or material required by the Administrator to reconsider the Participant’s claim (to the extent applicable) and an explanation of why such material or information is necessary; and

 

(d)           a description of the Plan’s review procedure and time limits applicable to such procedures, including a statement of the Participant’s right to bring a civil action under Section 502(a) of ERISA following a benefit claim denial on review.

 

Section 7.02         Appeal of Denied Claims. If the Participant’s claim is denied and he or she wishes to submit a request for a review of the denied claim, the Participant or his or her authorized representative must follow the procedures described below:

 

 

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(a)           Upon receipt of the denied claim, the Participant (or his or her authorized representative) may file a request for review of the claim in writing with the Administrator. This request for review must be filed no later than 60 days after the Participant has received written notification of the denial.

 

(b)           The Participant has the right to submit in writing to the Administrator any comments, documents, records or other information relating to his or her claim for benefits.

 

(c)           The Participant has the right to be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records and other information that is relevant to his or her claim for benefits.

 

(d)           The review of the denied claim will take into account all comments, documents, records and other information that the Participant submitted relating to his or her claim, without regard to whether such information was submitted or considered in the initial denial of his claim.

 

Section 7.03         Administrator’s Response to Appeal. The Administrator will provide the Participant with written notice of its decision, which shall be made in its sole discretion, within 60 days after the Administrator’s receipt of the Participant’s written claim for review. There may be special circumstances which require an extension of this 60-day period. In any such case, the Administrator will notify the Participant in writing within the 60-day period and the final decision will be made no later than 120 days after the Administrator’s receipt of the Participant’s written claim for review. The Administrator’s decision on the Participant’s claim for review on appeal will be final and will be communicated to the Participant in writing and will clearly state:

 

(a)           the specific reason or reasons for the denial of the Participant’s claim;

 

(b)           reference to the specific Plan provisions on which the denial of the Participant’s claim is based;

 

(c)           a statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, the Plan and all documents, records and other information relevant to his or her claim for benefits; and

 

(d)           a statement describing the Participant’s right to bring an action under Section 502(a) of ERISA.

 

Section 7.04         Exhaustion of Administrative Remedies. The exhaustion of these claims procedures is mandatory for resolving every claim and dispute arising under the Plan.  As to such claims and disputes:

 

(a)           no claimant will be permitted to commence any legal action to recover benefits or to enforce or clarify rights under the Plan under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, until these claims procedures have been exhausted in their entirety; and

 

(b)           in any such legal action, all explicit and implicit determinations by the Administrator (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) will be afforded the maximum deference permitted by law.

 

Section 7.05         Time Limit on Claims. Any claim or action that is filed in court or subject to arbitration against or with respect to the Plan, the Administrator or the Company must be filed within the applicable time frame that relates to the claim or action, as follows: (i) claims or actions for benefits under this Plan must be filed within six (6) months of the later of the date the Participant received the benefits under this Plan or the date of the Participant’s Qualifying Termination; (ii) for all other claims or actions, the claim or action must be filed within six (6) months of the date when the Participant knew or should have known of the actions or events that gave rise to the claim or action.

 

 

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Section 7.06         Arbitration. Subject to Sections 7.04 and 7.05, any dispute, controversy or claim arising out of or related to the Plan will be submitted to and decided by binding arbitration. Arbitration will be administered exclusively by the American Arbitration Association and will be conducted consistent with the rules, regulations and requirements thereof as well as any requirements imposed by state law.  Any arbitral award determination will be final and binding.

 

Section 7.07         Legal Fees.  If the Participant prevails on any substantive issue in the proceeding, the Company agrees to pay or reimburse a Participant, to the fullest extent permitted by law, all legal fees and expenses that the Participant may reasonably incur as a result of any contest by the Company, the Participant or others of the validity or enforceability of, or liability under, any provision of the Plan or any guarantee of performance thereof (including as a result of any contest by a Participant about the amount of any payments under the Plan).

 

ARTICLE XIII

 

Administration, Amendment and Termination

 

Section 8.01         Administration. The Administrator has the exclusive right, power and authority, in its sole and absolute discretion, to administer and interpret the Plan. The Administrator has all powers reasonably necessary to carry out its responsibilities under the Plan including (but not limited to) the sole and absolute discretionary authority to:

 

(a)           administer the Plan according to its terms and to interpret Plan policies and procedures;

 

(b)           resolve and clarify inconsistencies, ambiguities and omissions in the Plan and among and between the Plan and other related documents;

 

(c)           take all actions and make all decisions regarding questions of eligibility and entitlement to benefits, and benefit amounts;

 

(d)           make, amend, interpret, and enforce all appropriate rules and regulations for the administration of the Plan;

 

(e)           process and approve or deny all claims for benefits; and

 

(f)            decide or resolve any and all questions, including benefit entitlement determinations and interpretations of the Plan, as may arise in connection with the Plan.

 

The decision of the Administrator on any disputes arising under the Plan, including (but not limited to) questions of construction, interpretation and administration will be final, conclusive and binding on all persons having an interest in or under the Plan. Any determination made by the Administrator will be given deference in the event the determination is subject to judicial review and will be overturned by a court of law only if it is arbitrary and capricious.

 

Section 8.02         Amendment and Termination. The Administrator reserves the right to amend or terminate the Plan at any time and in any manner.  However, in anticipation of a specific identified Change in Control, the Administrator will not revoke, suspend, or terminate this Plan, and will not amend or modify this Plan in a way that is unfavorable to Participants, without the advance consent of the Participants still employed by Company at the relevant time.

 

 

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ARTICLE IX

 

General Provisions

 

Section 9.01         At-will Employment. The Plan does not alter the status of each Participant as an at-will employee of the Company. Nothing contained herein will be deemed to give any Participant the right to remain employed by the Company or to interfere with the rights of the Company to terminate the employment of any Participant at any time, with or without Cause.

 

Section 9.02         Effect on Other Plans, Agreements and Benefits.

 

(a)           Any severance benefits payable to a Participant under the Plan will be in lieu of and not in addition to any severance benefits to which the Participant would otherwise be entitled under any general severance policy or severance plan maintained by the Company or any agreement between the Participant and the Company that provides for severance benefits (unless the policy, plan or agreement expressly provides for severance benefits to be in addition to those provided under the Plan); and (ii) any severance benefits payable to a Participant under the Plan will be reduced by any severance benefits to which the Participant is entitled by operation of a statute or government regulations.

 

(b)           Any severance benefits payable to a Participant under the Plan will not be counted as compensation for purposes of determining benefits under any other benefit policies or plans of the Company, except to the extent expressly provided therein.

 

Section 9.03         Mitigation and Offset. If the Participant obtains other employment, such other employment will not affect the Participant’s rights or the Company’s obligations under the Plan. The Company’s obligation to make the payments and provide the benefits required under the Plan will not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other rights that the Company may have against the Participant.

 

Section 9.04         Severability. The invalidity or unenforceability of any provision of the Plan will not affect the validity or enforceability of any other provision of the Plan. If any provision of the Plan is held by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, such provision will be deemed modified, amended and narrowed to the extent necessary to render such provision legal, valid and enforceable, and the other remaining provisions of the Plan will not be affected but will remain in full force and effect.

 

Section 9.05         Headings and Subheadings. Headings and subheadings contained in the Plan are intended solely for convenience and no provision of the Plan is to be construed by reference to the heading or subheading of any section or paragraph.

 

Section 9.06         Unfunded Obligations. The amounts to be paid to Participants under the Plan are unfunded obligations of the Company. The Company is not required to segregate any monies or other assets from its general funds with respect to these obligations. Participants will not have any preference or security interest in any assets of the Company other than as a general unsecured creditor.

 

Section 9.07         Successors. The Plan will be binding upon any successor to the Company, its assets, its businesses or its interest (whether as a result of the occurrence of a Change in Control or otherwise), in the same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan, the Company will require any successor to the Company to expressly and unconditionally assume the Plan in writing and honor the obligations of the Company hereunder, in the same manner and to the same extent that the Company would be required to perform if no succession had taken place. All payments and benefits that become due to a Participant under the Plan will inure to the benefit of his or her heirs, assigns, designees or legal representatives.

 

 

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Section 9.08         Transfer and Assignment. Neither a Participant nor any other person will have any right to sell, assign, transfer, pledge, anticipate or otherwise encumber, transfer, hypothecate or convey any amounts payable under the Plan prior to the date that such amounts are paid.

 

Section 9.09         Waiver. Any party’s failure to enforce any provision or provisions of the Plan will not in any way be construed as a waiver of any such provision or provisions, nor prevent any party from thereafter enforcing each and every other provision of the Plan.

 

Section 9.10         Governing Law. To the extent not pre-empted by federal law, the Plan will be construed in accordance with and governed by the laws of Maryland without regard to conflicts of law principles. Subject to Section 7.06, any action or proceeding to enforce the provisions of the Plan will be brought only in a state or federal court located in the state of Maryland, county of Prince George’s, and each party consents to the venue and jurisdiction of such court. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

 

Section 9.11         Clawback. Any amounts payable under the Plan are subject to any policy established by the Company at any time before the occurrence of a Change in Control providing for clawback or recovery of amounts that were paid to the Participant. The Company will make any determination for clawback or recovery in its sole discretion and in accordance with any applicable law or regulation.

 

Section 9.12         Withholding. The Company will have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

Section 9.13         Section 409A.

 

(a)           The Plan is intended to comply with Section 409A of the Code or an exemption thereunder and will be construed and administered in accordance with Section 409A of the Code. Notwithstanding any other provision of the Plan, payments provided under the Plan may only be made upon an event and in a manner that complies with Section 409A of the Code or an applicable exemption. Any payments under the Plan that may be excluded from Section 409A of the Code either as separation pay due to an involuntary separation from service or as a short-term deferral will be excluded from Section 409A of the Code to the maximum extent possible. For purposes of Section 409A of the Code, each installment payment provided under the Plan will be treated as a separate payment. To the extent required to comply with Section 409A of the Code or an exemption therefrom, any payments to be made under the Plan upon a termination of employment will only be made upon a “separation from service” under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under the Plan comply with Section 409A of the Code and in no event will the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A of the Code.

 

(b)           Notwithstanding any other provision of the Plan, if any payment or benefit provided to a Participant in connection with his or her Qualifying Termination is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the Participant is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i) of the Code, then such payment or benefit will not be paid until the first payroll date to occur following the six-month anniversary of the Qualifying Termination or, if earlier, on the Participant’s death (the “Specified Employee Payment Date”). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which the Participant’s separation from service occurs will be paid to the Participant in a lump sum on the Specified Employee Payment Date. Notwithstanding any other provision of the Plan, if a Qualifying Termination occurs before the first occurrence of a Change in Control, payment will not begin before the Change in Control occurs.

 

 

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Section 9.14         Tax Advice.  By becoming a Participant in the Plan, Participant agrees to review with Participant’s own tax advisors the federal, state, provincial, local and foreign tax consequences of participation in this Plan.  Participant will rely solely on such advisors and not on any statements or representations of the Company or any of its agents.  Participant understands that Participant (and not the Company) will be responsible for his or her own tax liability that may arise as a result of becoming a Participant in the Plan.

 

 

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APPENDIX A

 

DEFINITIONS

 

“Accountants” has the meaning set forth in Section 6.02.

 

“Administrator” means the Board or any committee thereof duly authorized by the Board to administer the Plan prior to a Change in Control.  Following a Change in Control, the Administrator will be composed of 5 members, at least 3 of which must be members of or delegates selected by the Company’s Board immediately before any changes are made to Board members as a result of the Change in Control.

 

“Applicable Severance Multiplier” has the meaning set forth in Appendix B.

 

“Board” means the Board of Directors of the Company, as constituted from time to time.

 

“Cause” means:

 

(a) a material breach by the Participant of the terms of any agreement between such Participant and the Company or an affiliate of the Company, which breach is not cured within 10 days after written notice thereof to such Participant, to the extent such breach is reasonably capable of being cured;

 

(b) the persistent and willful failure by the Participant to perform his or her duties or obligations under any such agreement between such Participant and the Company or an affiliate of the Company, which failure is not cured within 10 days after written notice thereof to such Participant;

 

(c) the Participant’s appropriation (or attempted appropriation) of a material business opportunity of the Company or an affiliate of the Company, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of the Company or such affiliate of the Company, as the case may be;

 

(d) the Participant’s misappropriation (or attempted misappropriation) of funds or property of the Company or an affiliate of the Company;

 

(e) the Participant’s commission (or attempted commission) of any act of theft or fraud, or the commission of any act of dishonesty which has or would reasonably be expected to have a significant detrimental effect on the reputation or business of the Company or an affiliate of the Company;

 

(f) the Participant’s unauthorized and willful disclosure of confidential information of the Company or an affiliate of the Company (including confidential or proprietary information of their respective clients); or

 

(g) the Participant’s conviction of, the criminal indictment for (or its procedural equivalent), or the entering of a guilty plea or a plea of no contest with respect to, a felony or any other crime for which imprisonment is required or imposed.

 

For purposes of this definition, no act or failure to act on the part of the Participant will be considered “willful” unless done or omitted to be done by such Participant, either knowingly, intentionally, or with reasonable knowledge or reckless disregard of the foreseeable consequences of such conduct.  For any termination by the Company for Cause that occurs after the occurrence of a Change in Control, termination of the Participant’s employment will not be deemed to be for Cause unless and until the Company delivers to the Participant a copy of a resolution duly adopted by the Administrator (after reasonable written notice is provided to the Participant and the Participant is given an opportunity, together with counsel, to be heard before the Administrator), finding that the Participant has engaged in the conduct described in any of (a)-(g) above.

 

 

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“Change in Control” has the meaning ascribed to it in the Company’s 2015 Omnibus Incentive Plan (as may be amended from time to time, or any successor plan), provided that in no event will (1) a liquidation, dissolution or winding up of the Company or any Subsidiary of the Company, (2) an assignment for the benefit of creditors or (3) a bona fide financing of the Company constitute a Change in Control.  To the extent required to comply with Section 409A of the Code, a Company transaction that does not constitute a change in control event under Treasury Regulation Section 1.409A-3(i)(5) will not be considered a Change in Control of purposes of this Plan.

 

“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code will be deemed to include a reference to any regulations promulgated thereunder.

 

“Company” means Inovalon Holdings, Inc., a Delaware corporation, and any successor thereto.

 

“Company Plans” has the meaning set forth in Section 4.01.

 

“Covered Payments” has the meaning set forth in Article VI.

 

“Covered Period” means the period of time beginning on the first occurrence of a Change in Control and lasting through the two-year anniversary of the occurrence of the Change in Control.

 

“Effective Date” has the meaning set forth in Article I.

 

“Eligible Employee” means any full-time employee who holds a title or is employed at a level set forth in Appendix B, and any other full-time employee of the Company or any Subsidiary identified in Appendix B who was recommended by the Company’s Chief Executive Officer to, and whose participating in the Plan was approved by, the Administrator. Eligible employees will be limited to a select group of management or highly compensated employees within the meaning of Sections 201, 301 and 404 of ERISA.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

“Excise Tax” has the meaning set forth in Article VI.

 

“Good Reason” means:

 

(a) the material breach by the Company or an affiliate of the Company, as applicable, of a written employment agreement, if any, between the Participant and the Company or an affiliate of the Company, as applicable;

 

(b) the assignment of the Participant without his or her consent to a position, responsibilities, or duties of a materially lesser status or degree of responsibility than his or her position, responsibilities, or duties on the date of a Change in Control, as set forth in writing between the Participant and the Company (other than temporarily while the Participant is physically or mentally incapacitated or as required by applicable law);

 

(c) a reduction in the Participant’s base salary or a material reduction in the Participant’s target annual bonus;

 

(d) the Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform the obligations under the Plan in the same manner and to the same extent that the Company would be required to perform, except where such assumption occurs by operation of law; or

 

(e) the requirement by the Company that the Participant’s principal place of employment be anywhere other than within 50 miles of the Participant’s principal place of employment with the Company immediately preceding a Change in Control; or

 

 

Change in Control Plan

Page 11 of 12

 

(f) a material breach by the Company of this Plan which is not cured by the Company within 30 days following written notice to the Company of such breach.

 

The Participant cannot terminate his or her employment for Good Reason unless he or she has provided written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within 30 days of the initial existence of such grounds and the Company has had at least 30 days from the date on which such notice is provided to cure such circumstances, if curable. If the Participant does not terminate his or her employment for Good Reason within 90 days after the first occurrence of the applicable grounds, then the Participant will be deemed to have waived his or her right to terminate for Good Reason with respect to such grounds.

 

“Parachute Payments” has the meaning set forth in Article VI.

 

“Participant” has the meaning set forth in Article II.

 

“Plan” means this Inovalon Holdings, Inc. Executive Change in Control Severance Plan, as may be amended and/or restated from time to time.

 

“Qualifying Termination” means the termination of a Participant’s employment either:

 

(a) by the Company without Cause during the Covered Period;

 

(b) by the Company without Cause within 60 days in advance of the Covered Period if such termination is reasonably deemed to be in connection with or in anticipation of the occurrence of the Change in Control, provided that the Change in Control actually occurs; or

 

(c) by the Participant for Good Reason during the Covered Period.

 

“Reduced Amount” has the meaning set forth in Section 6.01.

 

“Release” has the meaning set forth in Section 5.01.

 

“Severance” has the meaning set forth in Section 3.01(a).

 

“Specified Employee Payment Date” has the meaning set forth in Section 9.13(b).

 

“Subsidiary” means any entity in which the Company directly or indirectly beneficially owns at least fifty percent (50%) of the equity interests by vote and value.

 

 

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Page 12 of 12

 

APPENDIX B(1)

 

	
Title / Level
    	
 
    	
Applicable Severance Multiplier
    
	
Member of Executive   Leadership Team
    	
 
    	
1.50x
    
	
Senior Vice President
    	
 
    	
1.25x
    
	
Vice President
    	
 
    	
1.00x
    
	
Associate Vice   President
    	
 
    	
0.75x
    

 

(1)  Titles not specifically listed in Appendix B, whether Company or otherwise, are not included.  Titles and levels that are included refer only to full-time employees at the Company or Inovalon, Inc. (or the successors thereto), unless specifically stated otherwise.  For the sake of clarity, titles at the Company or Inovalon, Inc. subsidiaries are not included unless expressly listed, and titles at the Company or Inovalon, Inc. that are not listed, are not included.  For example, currently under this Appendix B, a VP of a Subsidiary is not included, and division-based titles at the Company, such as “Regional Vice President” or “RVP” are not included.  A subsidiary or division “President” is not included, unless such person is also a member of the Company’s Executive Leadership Team or otherwise has a duel Company title that is included.

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