Document:

Exhibit 10.3

SEPARATION AGREEMENT AND GENERAL RELEASE

This SEPARATION AGREEMENT AND GENERAL RELEASE (hereinafter the "Agreement") is entered into on the date first set forth below by and between James A. Eberle (hereinafter referred to as "Employee") and GSE Systems, Inc. (hereinafter referred to as the "Company") (collectively referred to as the "Parties").

BACKGROUND

 

WHEREAS, Employee and the Company entered into an Employment Agreement dated as of January 1, 2015 (the "Employment Agreement");

WHEREAS, the Employee's employment will terminate as of July 31, 2015;

WHEREAS, the Employment Agreement provides that certain benefits shall be paid by the Company to Employee contingent upon Employee's execution of a termination agreement, including, but not limited to, a general release of claims;

NOW THEREFORE, in consideration of the retention benefits, and for other good and valuable consideration provided by the Company, Employee and the Company agree as follows:

SECTION ONE

DEFINITIONS

For purposes of this Agreement, the term "Releasees" shall mean the Company, and its subsidiaries and affiliates, and all of the foregoing's respective directors, officers, shareholders, employees, representatives, agents, attorneys, insurers, successors and assigns.  The term "Releasors" means the Employee and his respective heirs, executors, administrators and assigns.

SECTION TWO

CONSIDERATION FOR THE AGREEMENT

	
(a)

	
Separation Payment.  In consideration of the releases herein given by Releasors and the warranties and representations of Employee, subject to the terms and conditions set forth below, the Company agrees to provide Employee an amount constituting twelve (12) months of his annual base salary as in effect at the time of his termination, less all applicable taxes and withholdings (the "Separation Payment").  The total sum encompassing the Separation Payment shall be paid to Employee at such intervals as salaries are paid generally to other executive officers of the Company and shall commence as soon as is practicable after Employee has signed, and does not timely revoke as set forth in Section Eleven of this Separation Agreement.  In addition, for a one-year period commencing as soon as is practicable after Employee has signed, and does not timely revoke this Separation Agreement, the Employee may continue participating in the Company's 401(k) plan and will be entitled to receive the Company match.

 

	
(b)

	
Transition Payment. On December 15, 2015, in consideration of Employee's help in effectuating a smooth transition, the Company shall pay the Employee a lump sum payment in the amount of $25,000.

	
(c)

	
Options.  All options to purchase the Company's common stock granted to Employee under the Company's 1995 Long Term Incentive Compensation Plan shall immediately become fully vested and shall terminate on such date as they would have terminated if Employee's employment by the Company had not terminated.

	
(d)

	
Expenses.  The Company shall reimburse Employee for all reasonable business expenses incurred by him prior to July 31, 2015, in connection with his employment  in accordance with the written policy and guidelines established by the Company for executive officers.

SECTION THREE

NO OTHER BENEFITS

Employee understands and agrees that he is not entitled to the benefits set forth in Section Two, above, unless he executes and does not revoke this Agreement.  Employee shall have no right to receive any further payment or benefit arising from his employment relationship with the Company except those required by law and any convertible insurance programs as described in a policy of insurance.

SECTION FOUR

ADEQUATE CONSIDERATION

Employee agrees that (i) the consideration and payments made to him by the Company pursuant to this Agreement represent the sole and exclusive payments and undertakings to be provided to him; (ii) said payments include any and all outstanding and accrued compensation, wages, and benefits that may be due and owing Employee; (iii) that the Company has no further obligation to provide Employee with any compensation of any sort, or any non-monetary or monetary benefits in addition to that which is set forth in Section Two, above; and (iv) the aforementioned payments would not otherwise be due and payable to Employee under the Employment Agreement but for the execution of, and failure to revoke, this Agreement by Employee, and constitutes good and sufficient consideration for this Agreement.

SECTION FIVE

RELEASES

For and in consideration of Company's promise to cause the payment and benefits to be made as set forth in Section Two, above, Releasors do hereby RELEASE AND FOREVER DISCHARGE the Releasees of and from any and all manner of actions and causes of action, suits, debts, liabilities, losses, damages, claims and demands whatsoever (which are otherwise subject to waiver) that they or any of them had, has or may have against any of the Releasees, whether sounding in contract, any form of tort or otherwise; whether at law or in equity; whether known or unknown; from prior to the commencement of Employee's employment with any of the Releasees to the date of this Agreement.  The releases herein include, but are not limited to, any waivable claims that were asserted or could have been asserted up to the date of this Agreement and/or that could be asserted in the future under any federal, state or local laws, regulations, orders or ordinances including but not limited to:

•  Title VII of the Civil Rights Act of 1964, as amended;

•  Employee Order 11246;

•  the Rehabilitation Act of 1973;

•  the Americans with Disabilities Act of 1990 as amended (ADAAA);

	•	the Employee Retirement Income Security Act (ERISA) (except as to claims for vested benefits);

•  the Family Medical Leave Act;

•  the Pennsylvania Human Relations Act;

•         the Annotated Code of Maryland;

•         the Howard County, Maryland Code;

•  any state or local laws similar to the above;

•  any unjust or wrongful termination theory;

•  any claim for breach of contract, fraud or material misrepresentation;

•  any negligent retention, hiring, or supervision theory;

•  any right or claim based on an alleged privacy violation;

•  any claims for defamation or slander; or

other employment tort or common law claims now or hereafter recognized and any derivative claim any of the Releasors may have arising thereunder, and all claims for counsel fees and costs.  Releasors specifically acknowledge that they are releasing all Releasees from any claims for attorneys' fees and costs.

SECTION SIX

WARRANTIES AND COVENANTS OF EMPLOYEE

Employee warrants and covenants that he has not filed a lawsuit or otherwise initiated adversarial proceedings against the Company or any of the Releasees based upon, or related in any way to, any act, omission or event occurring prior to Employee's execution of this Agreement.  Employee further warrants that he will not assert any claim for recall or reemployment with the Company and will not in the future seek employment in any capacity with Company.

Employee agrees that he will not disparage the name, business reputation or business practices of the Company or any Releasee.  The Company agrees to provide a neutral reference if contacted for a job reference, including name, dates of employment, and position held as well as final rate of pay.

SECTION SEVEN

DISCLOSURE

Employee acknowledges and warrants that he is not aware of, or that he has fully disclosed to the Company, any matters for which Employee was responsible, or which came to Employee's attention as an employee of the Company, that might give rise to, evidence, or support any claim of illegal conduct, regulatory violation, unlawful discrimination, or other cause of action against the Company.

SECTION EIGHT

SURVIVAL OF PROVISIONS OF THE CONFIDENTIALITY, NON-COMPETITION  AND NON-SOLICITATION AGREEMENT

Employee acknowledges and agrees that the Employment Agreement contains provisions related to (i) Non-Competition, (ii) Non-Solicitation of Employees, (iii) Non-Solicitation of Customers, (iv) Non-Disparagement and (v) Confidentiality (collectively referred to as the "Employee Covenants").  Employee understands and agrees that the provisions of the Employee Covenants, and the remedies for breach of those provisions, survive the cessation of his employment with the Company and remain in full force and effect for the duration set forth in the Employment Agreement.  Employee further acknowledges that his compliance with the provisions of the Employee Covenants is a term and condition of Employee's entitlement to benefits under this Agreement.

SECTION NINE

RETURN OF COMPANY PROPERTY

Employee certifies that, if he has not done so already, he will return all Company property in his possession, custody and control to the Company, including, but not limited to any confidential information without retaining any copies, either in tangible or intangible form.  This certification includes the fact that he will purge all files and information from his home computer or laptop and return all photocopies of materials which relate to the Releasees or their business.  Notwithstanding anything to the contrary contained herein, the Employee may retain his Company laptop.

SECTION TEN

[not used]

SECTION ELEVEN

RELEASE UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT (ADEA)

Employee understands and agrees that, in full compliance with the Older Workers Benefit Protection Act (OWBPA) of 1990:

A.Employee enters into this Agreement freely and knowingly, and after due consideration, intending to waive, settle and release all waivable claims that Employee has or may have against the Company up to the date of the execution of this Agreement, including claims under the Age Discrimination in Employment Act;

B.Employee has been advised to consult an attorney before signing this Agreement;

C.Employee has been provided with the opportunity to consider this Agreement for twenty-one (21) days.  Material and immaterial changes to this Agreement will not temporarily stop the twenty-one (21) day period for Employee to consider this Agreement.  If Employee agrees to enter into this Agreement, he must sign and return the Agreement to Lawrence M. Gordon, Senior Vice President and General Counsel, prior to the 21st day;

D.Employee understands that he has seven (7) days after he signs the Agreement to revoke the Agreement by delivering a written notice of revocation to Lawrence M. Gordon, Senior Vice President and General Counsel, by 5:00 p.m. Eastern Standard Time on the seventh day.  In the event Employee revokes this Agreement, the Company shall have no obligation to Employee under the Agreement.  After this revocation period has expired, the Agreement will become effective, enforceable and irrevocable.

SECTION TWELVE

ASSISTANCE IN LITIGATION

Employee shall upon reasonable notice, furnish such information and proper assistance to the Company as it may reasonably require in connection with any litigation in which it is, or may become, a party after Employee's employment with the Company.

SECTION THIRTEEN

SEVERABILITY

The covenants in this Agreement are severable.  If any part or term of this Agreement is later held to be illegal, unenforceable or ineffective, the validity of the remaining provisions shall not be affected and the other obligations will be enforced as if the Agreement did not contain the part or term held to be invalid.  With the exception of a challenge to the validity of the release of his ADEA claims, if Employee challenges the validity of, or attacks this Agreement in any court of competent jurisdiction, Employee unequivocally agrees to first return to the Company any and all monies or other consideration received by Employee under the terms of this Agreement.

SECTION FOURTEEN

ENTIRE AGREEMENT

This Agreement, including those provisions of the Employment Agreement set forth in Section Eight herein, expresses the entire Agreement between Employee and the Company regarding Employee's employment and separation from employment.  This Agreement may not be amended or terminated except by a written agreement signed by both Employee and the Company.  No representations made prior to or contemporaneously with this Agreement shall have any binding effect.

SECTION FIFTEEN

WAIVER

No waiver of any provision of this Agreement shall constitute a waiver of any other provisions of this Agreement.

SECTION SIXTEEN

FUTURE BENEFITS

 The promises of Employee under this Agreement shall inure to the benefit of the Releasees and all other present or future subsidiaries and affiliates of the Releasees.  All such entities shall be considered third party beneficiaries and may enforce any provision of this Agreement.

SECTION SEVENTEEN

SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon the parties to this Agreement and their respective heirs, administrators, executors, successors and assigns.  The Company has the right to assign this Agreement.  Employee does not have the right to assign this Agreement.

SECTION EIGHTEEN

GOVERNING LAW AND JURISDICTION

The validity, legality, and construction of this Agreement or of any of its provisions shall be governed exclusively by the laws of the State of Maryland.  In the event a dispute or claim should arise regarding this Agreement, jurisdiction and venue of any such action shall be in Howard County, Maryland.  In the event that the Parties to this Agreement have diverse citizenship and/or the dispute at issue involves a federal question of law, then jurisdiction and venue may alternatively be in the United States District Court for the District of Maryland.  Each of the parties expressly consents to the jurisdiction and venue set forth in this Section Seventeen.

SECTION NINETEEN

NO ADMISSION OF LIABILITY

Employee acknowledges that the Company admits no liability or wrongdoing in requesting or accepting this Release.

SECTION TWENTY

COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties hereto.

IN WITNESS WHEREOF, intending to be legally bound, Employee and the Company executed the foregoing Separation Agreement and General Release as of the date first written below.

 

 

	 	
James A. Eberle

	 	
July 29, 2015

	 	
/s/ James A. Eberle

	 	
Date

	
 

GSE Systems, Inc.

	 	 
	
 

By:

	
 

/s/ Lawrence M. Gordon

	 	
 

July 29, 2015

	 	
Lawrence M. Gordon

	 	
Date

	 	
Senior Vice President and General CounselEX-4.1

 Exhibit 4.1 

APPLE INC. 

Officer’s Certificate 

Pursuant to Sections 102 and 301 of the Indenture dated as of April 29, 2013 (the “Indenture”) by and between Apple Inc.
(the “Issuer”) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), the undersigned officer does hereby certify, in connection with the issuance of (i) £750,000,000 aggregate
principal amount of 3.05% Notes due 2029 (“2029 Notes”) and (ii) £500,000,000 aggregate principal amount of 3.60% Notes due 2042 (“2042 Notes” and, together with the 2029 Notes, the
“Notes”), that the terms of the Notes are as follows: 
 Capitalized terms used but not otherwise defined herein shall have
the meanings specified in the Indenture. 
  

	1.	2029 Notes 

  

			
	Title:	  	3.05% Notes due 2029
		
	Issuer:	  	Apple Inc.
		
	Trustee, Registrar, Transfer Agent, and Authenticating Agent	  	The Bank of New York Mellon Trust Company, N.A.
		
	Paying Agent	  	The Bank of New York Mellon, London Branch
		
	Aggregate Principal Amount at Maturity:	  	£750,000,000
		
	Principal Payment Date:	  	July 31, 2029
		
	Interest:	  	3.05% per annum
		
	Date from which Interest will Accrue:	  	July 31, 2015
		
	Interest Payment Dates:	  	Semi-annually on January 31 and July 31, commencing on January 31, 2016
		
	Optional Redemption:	  	 The Issuer may at its option redeem the 2029 Notes in whole or in part, at any time or from time to time prior to their maturity, on at
least 30 days, but not more than 60 days, prior notice mailed or electronically delivered to the registered address of each holder of record of the 2029 Notes, at a redemption price equal to the greater of:

 
 (i) 100% of the principal amount of the 2029 Notes being redeemed; or

 

			
		
		  	 (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (not
including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined in the 2029
Notes), plus 15 basis points,
  
 plus, in each case, accrued and unpaid interest thereon
to the date of redemption.

		
	Redemption for tax purposes:	  	If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any political subdivision or taxing authority of or in the United States), or any
change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after July 24, 2015, the Issuer becomes, or based
upon a written opinion of independent counsel selected by the Issuer, will become obligated to pay additional amounts as described under Section 8 of Exhibit A hereto with respect to the 2029 Notes, then the Issuer may at its option redeem, in
whole, but not in part, the 2029 Notes on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with interest accrued but unpaid on the 2029 Notes to the date fixed for
redemption.
		
	Conversion:	  	None
		
	Sinking Fund:	  	None
		
	Denominations:	  	£100,000 and any integral multiple of £1,000 in excess thereof.
		
	Miscellaneous:	  	 The terms of the 2029 Notes shall include such other terms as are set forth in the form of 2029 Notes attached hereto as
Exhibit A and in the Indenture. In addition, the global notes for the 2029 Notes shall include the following language: “To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall
govern.”
  
 “Depositary” means “EUROCLEAR/CLEARSTREAM”
(as defined in the 2029 Note)
  

  
 2 

			
		
		  	 Solely with respect to the 2029 Notes, Section 305(2) of the Indenture shall be amended and restated as follows:

 
 “Notwithstanding any other provision in this Indenture, and
subject to such applicable provisions, if any, as may be specified as contemplated by Section 301, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be
registered, in the name of any Person other than the Depositary for such Global Security or a nominee thereof unless (A) such Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security, (B)
the Depositary ceases to be eligible under the Indenture and the Company does not appoint a successor Depositary within 90 days (C) there shall have occurred and be continuing an Event of Default with respect to such Global Security, (D) the Company
so directs the Trustee by a Company Order or (E) there shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 301.”

		
		  	 Solely with respect to the 2029 Notes, the final sentence of Section 1304(1) of the Indenture shall be amended and restated as
follows:
  
 “As used herein, “U.S. Government
Obligation” means (x) any security that is (i) a direct obligation of the United Kingdom government or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the United Kingdom government
the payment of which is fully and unconditionally guaranteed by the United Kingdom government or the central bank of the United Kingdom government, which, in either case (x)(i) or (ii), is not callable or redeemable at the option of the issuer
thereof, and (y) certificates, depositary receipts or other instruments which evidence a direct ownership interest in obligations described in clause (x)(i) or (x)(ii) above or in any specific principal or interest payments due in respect
thereof.”

  
 3 

	2.	2042 Notes 

  

			
	Title:	  	3.60% Notes due 2042
		
	Issuer:	  	Apple Inc.
		
	Trustee, Registrar, Transfer Agent and Authenticating Agent	  	The Bank of New York Mellon Trust Company, N.A.
		
	Paying Agent	  	The Bank of New York Mellon, London Branch
		
	Aggregate Principal Amount at Maturity.	  	£500,000,000
		
	Principal Payment Date:	  	July 31, 2042
		
	Interest:	  	3.60% per annum
		
	Date from which Interest will Accrue:	  	July 31, 2015
		
	Interest Payment Dates:	  	Semi-annually on January 31 and July 31, commencing on January 31, 2016
		
	Optional Redemption:	  	 The Issuer may at its option redeem the 2042 Notes in whole or in part, at any time or from time to time prior to their maturity, on at
least 30 days, but not more than 60 days, prior notice mailed or electronically delivered to the registered address of each holder of record of the 2042 Notes, at a redemption price, calculated by the Issuer, equal to the greater of:

 
 (i) 100% of the principal amount of the 2042 Notes being redeemed; or

 
 (ii) the sum of the present values of the remaining scheduled payments of principal and
interest on the notes to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable
Government Bond Rate (as defined in the 2042 Notes), plus 15 basis points,
  
 plus, in
each case, accrued and unpaid interest thereon to the date of redemption.

  
 4 

			
		
	Redemption for tax purposes:	  	If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any political subdivision or taxing authority of or in the United States), or any
change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after July 24, 2015, the Issuer becomes, or based
upon a written opinion of independent counsel selected by the Issuer, will become obligated to pay additional amounts as described under Section 8 of Exhibit B hereto with respect to the 2042 Notes, then the Issuer may at its option redeem, in
whole, but not in part, the 2042 Notes on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of their principal amount, together with interest accrued but unpaid on the 2042 Notes to the date fixed for
redemption.
		
	Conversion:	  	None
		
	Sinking Fund:	  	None
		
	Denominations:	  	£100,000 and any integral multiple of £1,000 in excess thereof.
		
	Miscellaneous:	  	 The terms of the 2042 Notes shall include such other terms as are set forth in the form of 2042 Notes attached hereto as Exhibit B
and in the Indenture. In addition, the global notes for the 2042 Notes shall include the following language: “To the extent the terms of the Indenture and this Note are inconsistent, the terms of the Indenture shall govern.”

 
 “Depositary” means “EUROCLEAR/CLEARSTREAM” (as defined in the
2042 Note)
  

  
 5 

			
		
		  	 Solely with respect to the 2042 Notes, Section 305(2) of the Indenture shall be amended and restated as follows:

 
 “Notwithstanding any other provision in this Indenture, and
subject to such applicable provisions, if any, as may be specified as contemplated by Section 301, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be
registered, in the name of any Person other than the Depositary for such Global Security or a nominee thereof unless (A) such Depositary has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security, (B)
the Depositary ceases to be eligible under the Indenture and the Company does not appoint a successor Depositary within 90 days (C) there shall have occurred and be continuing an Event of Default with respect to such Global Security, (D) the Company
so directs the Trustee by a Company Order or (E) there shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 301.”

		
		  	 Solely with respect to the 2042 Notes, the final sentence of Section 1304(1) of the Indenture shall be amended and restated as
follows:
  
 “As used herein, “U.S. Government
Obligation” means (x) any security that is (i) a direct obligation of the United Kingdom government or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the United Kingdom government
the payment of which is fully and unconditionally guaranteed by the United Kingdom government or the central bank of the United Kingdom government, which, in either case (x)(i) or (ii), is not callable or redeemable at the option of the issuer
thereof, and (y) certificates, depositary receipts or other instruments which evidence a direct ownership interest in obligations described in clause (x)(i) or (x)(ii) above or in any specific principal or interest payments due in respect
thereof.”

  
 6 

 Subject to the covenants described in the Indenture, as amended or supplemented from time to
time, the Issuer shall be entitled, subject to authorization by the Board of Directors of the Issuer and an Officer’s Certificate, to issue additional notes from time to time under each series of notes issued hereby. Any such additional notes
of a series shall have identical terms as the 2029 Notes and 2042 Notes, as the case may be, issued on the issue date, other than with respect to the date of issuance, the date interest begins to accrue, the first interest payment date, and the
issue price (together, the “Additional Notes”); provided that the Additional Notes shall have a separate ISIN number unless the Additional Notes are fungible with the Outstanding Notes for U.S. federal income tax purposes. Any
Additional Notes will be issued in accordance with Section 301 of the Indenture. 
 The officer has read and understands the provisions
of the Indenture and the definitions relating thereto. The statements made in this Officer’s Certificate are based upon the examination of the provisions of the Indenture and upon the relevant books and records of the Issuer. In such
officer’s opinion, they have made such examination or investigation as is necessary to enable such officer to express an informed opinion as to whether or not the covenants and conditions of such Indenture relating to the issuance,
authentication and delivery of the Notes have been complied with. In such officer’s opinion, such covenants and conditions have been complied with. 

  
 7 

 IN WITNESS WHEREOF, the undersigned officer of the Issuer has duly executed this certificate
as of July 31, 2015. 
  

			
	Apple Inc.
		
	By:	 	/s/ Gary Wipfler
		 	Name: Gary Wipfler
		 	Title: Vice President and Corporate Treasurer

 EXHIBIT A 

FORM OF NOTE DUE 2029 
 THIS NOTE
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREIN. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, SA/NV, AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”) AND CLEARSTREAM
BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK
DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

 APPLE INC. 

3.05% Note due 2029 
  

			
	No. 1	  	COMMON CODE No.: 126917546
		  	ISIN No.: XS1269175466
		
		  	£750,000,000

 APPLE INC., a California corporation (the “Issuer”), for value received promises to pay to
The Bank of New York Depository (Nominees) Limited or registered assigns the principal sum of 750,000,000 POUNDS STERLING on July 31, 2029. 

Interest Payment Dates: Semi-annually on January 31 and July 31, beginning on January 31, 2016 and on the principal payment
date (each, an “Interest Payment Date”). 
 Interest Record Dates: Each January 17 and July 17 preceding the
relevant Interest Payment Date (each, an “Interest Record Date”). 
 Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if set forth at this place. 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officer. 
  

			
	Apple Inc.
		
	By:	 	 
		 	Name:
		 	Title:

 This is one of the Securities of the series designated therein and referred to in the
within-mentioned Indenture. 
 Dated: July 31, 2015 
  

			
	The Bank of New York Mellon Trust Company, N.A., as Trustee
		
	By:	 	 
		 	Authorized Signatory

 (REVERSE OF NOTE) 

APPLE INC. 
 3.05% Note due 2029

  

	 	1.	Interest 

 Apple Inc. (the “Issuer”) promises to pay interest on the principal
amount of this Note at the rate per annum described above. Cash 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 July 31, 2015. Interest on this Note will be
paid to but excluding the relevant Interest Payment Date. The Issuer will pay interest semi-annually in arrears on each Interest Payment Date, commencing January 31, 2016. Interest will be computed on the basis of the actual number of days in
the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the notes (or July 31, 2015 if no interest has been paid on the Notes), to but excluding the next
scheduled Interest Payment Date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 

The Issuer shall pay interest on overdue principal from time to time on demand at the rate borne by the Notes and on overdue installments of
interest (without regard to any applicable grace periods) to the extent lawful. 
  

	 	2.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, London Branch, (the
“Paying Agent”) will act as paying agent. The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will initially act as security registrar for the Notes. The Issuer may change any paying agent or security
registrar upon notice to the Trustee. 
  

	 	3.	Indenture; Defined Terms. 

 This Note is one of the 3.05% Notes due 2029 (the
“Notes”) issued under an indenture dated as of April 29, 2013 (the “Base Indenture”) by and between the Issuer and the Trustee, as trustee, as supplemented by an Officer’s Certificate dated July 31,
2015, issued pursuant to Section 301 of the Indenture (together with the Base Indenture, the “Indenture”). This Note is a “Security” and the Notes are “Securities” under the Indenture. 

“Business Day” means any day which is not a day on which banking institutions in The City of New York or London or the
relevant place of payment are authorized or required by law, regulation or executive order to close. 
 For purposes of this Note,
unless otherwise defined herein, capitalized terms herein are used as defined in the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act as in effect on
the date on which the Indenture was qualified under the Trust Indenture Act. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of Notes are referred to the Indenture and the Trust Indenture Act for
a statement of them. 

	 	4.	Payment on the Notes 

 All payments of principal of, the redemption price (if any), and
interest and additional amounts (as provided in Section 8 hereof, if any), on the Notes, will be payable in pounds sterling, or, if the United Kingdom adopts euro as its lawful currency, in euro. If pounds sterling or, in the event the Notes
are redenominated into euro, euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s control or, in the event the Notes are redenominated into euro, the euro is no longer being
used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of
the Notes will be made in U.S. dollars until the pound sterling or euro, as the case may be, is again available to the Issuer or so used. The amount payable on any date in pounds sterling or, in the event the Notes are redenominated into euro, euro
will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a
rate of conversion, on the basis of the most recent U.S. dollar/pounds sterling or, in the event the Notes are redenominated into euro, the most recent U.S. dollar/euro exchange rate published in The Wall Street Journal on or prior to the second
Business Day prior to the relevant payment date. Any payment in respect of the Notes so made in U.S. dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any
responsibility for any calculation or conversion in connection with the foregoing. 
  

	 	5.	Denominations; Transfer; Exchange. 

 The Notes are in registered form, without coupons, in
denominations of £100,000 and any integral multiple of £1,000 in excess thereof. A Holder shall register the transfer or exchange of Notes in accordance with the Indenture. The Issuer may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or
exchange any Notes or portions thereof for a period of fifteen (15) days before the mailing of a notice of redemption, nor need the Issuer register the transfer or exchange of any Note selected for redemption in whole or in part except the
unredeemed portion of any Note being redeemed in part. 
  

	 	6.	Amendment; Supplement; Waiver. 

 Subject to certain exceptions, the Notes and the provisions of
the Indenture relating to the Notes may be amended or supplemented and any existing default or Event of Default or compliance with certain provisions may be waived with the written consent of the Holders of at least a majority in aggregate principal
amount of each series of Outstanding Securities (including the Notes) under the Indenture that is affected by such amendment, supplement or waiver (voting as a single class). Without notice to or consent of any Holder, the parties thereto may amend
or supplement the Indenture and the Notes to, among other things, cure any ambiguity, defect or inconsistency or comply with any requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act, or
make any other change that does not adversely affect the rights of any Holder of a Note. 

	 	7.	Optional Redemption. 

 The Issuer may at its option redeem any of the Notes in whole or in part
at any time, each at a redemption price calculated by the Issuer equal to the greater of: 
 (A) 100% of the principal amount of the Notes
to be redeemed; and 
 (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be
redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below), plus 15 basis points, 

plus, in each case, accrued and unpaid interest thereon to the date of redemption. 

Notwithstanding the foregoing, installments of interest on Notes that are due and payable on Interest Payment Dates falling on or prior to a
redemption date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the Interest Record Date according to the Notes and the Indenture. 

“Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an
independent investment bank selected by the Issuer, a United Kingdom government bond whose maturity is closest to the maturity of the Notes being redeemed, or if such independent investment bank in its discretion determines that such similar bond is
not in issue, such other United Kingdom government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, United Kingdom government bonds selected by the Issuer, determine to be appropriate for
determining the Comparable Government Bond Rate. 
 “Comparable Government Bond Rate” means the price, expressed as a
percentage (rounded to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be
equal to the gross redemption yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an
independent investment bank selected by the Issuer. 
 The provisions of Article XI of the Indenture shall apply to any redemption of the
Notes. 
 Unless the Issuer defaults in the payment of the redemption price, on and after the redemption date, interest will cease to accrue
on the Notes or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the applicable depository procedures, in the case of Notes represented by a Global Note, or by
lot, in the case of Notes that are not represented by a Global Note; provided, however, that no Notes of a principal amount of £100,000 or less shall be redeemed in part. 

	 	8.	Payment of Additional Amounts 

 All payments of principal and interest in respect of the Notes
will be made free and clear of, and without deduction or withholding for or on account of any present or future taxes, duties, assessments or other governmental charges of whatsoever nature required to be deducted or withheld by the United States or
any political subdivision or taxing authority of or in the United States, unless such withholding or deduction is required by law. 
 In the
event any withholding or deduction on payments in respect of the Notes for or on account of any present or future tax, assessment or other governmental charge is required to be deducted or withheld by the United States or any taxing authority
thereof or therein, the Issuer will pay such additional amounts on the Notes as will result in receipt by each beneficial owner of a Note that is not a U.S. Person (as defined below) of such amounts (after all such withholding or deduction,
including on any additional amounts) as would have been received by such beneficial owner had no such withholding or deduction been required. The Issuer will not be required, however, to make any payment of additional amounts for or on account of:

  

	 	A.	any tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection (other than a connection arising solely from the ownership of those
Notes or the receipt of payments in respect of those Notes) between that Holder (or the beneficial owner for whose benefit such Holder holds such Note), or between a fiduciary, settlor, beneficiary of, member or shareholder of, or possessor of a
power over, that Holder or beneficial owner (if that Holder or beneficial owner is an estate, trust, partnership or corporation) and the United States, including that Holder or beneficial owner, or that fiduciary, settlor, beneficiary, member,
shareholder or possessor, being or having been a citizen or resident or treated as a resident of the United States or being or having been engaged in trade or business or present in the United States or having had a permanent establishment in the
United States or (2) the presentation of a Note for payment on a date more than 30 days after the later of the date on which that payment becomes due and payable and the date on which payment is duly provided for; 

 

	 	B.	any estate, inheritance, gift, sales, transfer, capital gains, excise, personal property, wealth or similar tax, assessment or other governmental charge; 

 

	 	C.	any tax, assessment or other governmental charge imposed on foreign personal holding company income or by reason of the beneficial owner’s past or present status as a passive foreign investment company, a
controlled foreign corporation, a foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates earnings to avoid U.S. federal income tax; 

 

	 	D.	any tax, assessment or other governmental charge which is payable otherwise than by withholding or deducting from payment of principal of or premium, if any, or interest on such Notes; 

	 	E.	any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of and premium, if any, or interest on any Note if that payment can be made without withholding
by any other paying agent; 

  

	 	F.	any tax, assessment or other governmental charge which would not have been imposed but for the failure of a beneficial owner or any Holder of Notes to comply with the Issuer’s request or a request of the
Issuer’s agent to satisfy certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of the beneficial owner or any Holder of the Notes that
such beneficial owner or Holder is legally able to deliver (including, but not limited to, the requirement to provide Internal Revenue Service Forms W-8BEN, W-8BEN-E, Forms W-8ECI, or any subsequent versions
thereof or successor thereto, and including, without limitation, any documentation requirement under an applicable income tax treaty); 

  

	 	G.	any tax, assessment or other governmental charge imposed on interest received by (1) a 10% shareholder (as defined in Section 871(h)(3)(B) of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”), and the regulations that may be promulgated thereunder) of the Issuer or (2) a controlled foreign corporation that is related to the Issuer within the meaning of Section 864(d)(4) of the Code, or (3) a bank
receiving interest described in Section 881(c)(3)(A) of the Code, to the extent such tax, assessment or other governmental charge would not have been imposed but for the beneficial owner’s status as described in clauses (1) through
(3) of this paragraph (G); 

  

	 	H.	to any withholding or deduction that is required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings;

  

	 	I.	any tax, assessment or other governmental charge required to be withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections) (“FATCA”), any
regulations or other guidance thereunder, or any agreement (including any intergovernmental agreement) entered into in connection therewith; or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an
intergovernmental agreement in respect of FATCA; or 

  

	 	J.	any combination of items (A), (B), (C), (D), (E), (F), (G), (H) and (I); 

 nor will the Issuer pay any
additional amounts to any beneficial owner or Holder of Notes who is a fiduciary or partnership to the extent that a beneficiary or settlor with respect to that fiduciary or a member of that partnership or a beneficial owner thereof would not have
been entitled to the payment of those additional amounts had that beneficiary, settlor, member or beneficial owner been the beneficial owner of those Notes. 

As used in this Section 8, “U.S. Person” means any individual who is a citizen or resident of the United States for U.S.
federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a
United States person under any applicable U.S. Treasury regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source. 

	 	9.	Redemption for Tax Reasons 

 If, as a result of any change in, or amendment to, the laws (or
any regulations or rulings promulgated under the laws) of the United States (or any political subdivision or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after July 24, 2015, the Issuer becomes, or based upon a written opinion of independent counsel selected by the Issuer, will
become obligated to pay additional amounts as described under Section 8 hereof with respect to the Notes, then the Issuer may at its option redeem, in whole, but not in part, the Notes on not less than 30 nor more than 60 days prior notice, at
a redemption price equal to 100% of their principal amount, together with interest accrued but unpaid on the Notes to the date fixed for redemption. 
  

	 	10.	Defaults and Remedies. 

 If an Event of Default (other than certain bankruptcy Events of
Default with respect to the Issuer) under the Indenture occurs with respect to the Notes and is continuing, then the Trustee may and, at the direction of the Holders of at least 25% in principal amount of the outstanding Notes, shall by written
notice, require the Issuer to repay immediately the entire principal amount of the Outstanding Notes, together with all accrued and unpaid interest and premium, if any. If a bankruptcy Event of Default with respect to the Issuer occurs and is
continuing, then the entire principal amount of the Outstanding Notes together with all accrued and unpaid interest and premium, if any, will automatically become due immediately and payable without any declaration or other act on the part of the
Trustee or any Holder. Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has received indemnity as it reasonably requires.
The Indenture permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Notes notice of certain continuing defaults or Events of Default if it determines that withholding notice is not opposed to their interest. 
  

	 	11.	Authentication. 

 This Note shall not be valid until the Trustee manually signs the certificate
of authentication on this Note. 
  

	 	12.	Abbreviations and Defined Terms. 

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

	 	13.	Common Code/ISIN Numbers. 

 Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuer has caused Common Code/ISIN numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes
and reliance may be placed only on the other identification numbers printed hereon. 
  

	 	14.	Governing Law. 

 The Indenture and the Notes shall be governed by, and construed in accordance
with, the laws of the State of New York. 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 
 I or we assign
and transfer this Note to 
 (Print or type assignee’s name, address and zip code) 

(Insert assignee’s soc. sec. or tax I.D. No.) 

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

 
  

							
	Date:	 	 	  	        Your Signature:	  	 

  
  

Sign exactly as your name appears on the other side of this Note. 
  

					
		 		 	Signature

 Signature Guarantee: 
  

					
	Signature must be guaranteed	 		 	Signature

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to,
or in substitution for, STAMP, all in accordance with the United States Securities Exchange Act of 1934, as amended. 

 SCHEDULE OF EXCHANGES OF NOTES 

The following exchanges of a part of this Global Note for physical Notes or a part of another 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

 EXHIBIT B 

FORM OF NOTE DUE 2042 
 THIS NOTE
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREIN. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, SA/NV, AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”) AND CLEARSTREAM
BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM, LUXEMBOURG” AND, TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK
DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN. 

 APPLE INC. 

3.60% Note due 2042 
  

			
	No. 1	  	COMMON CODE No.: 126917619
		  	ISIN No.: XS1269176191
		
		  	£500,000,000

 APPLE INC., a California corporation (the “Issuer”), for value received promises to pay to
The Bank of New York Depository (Nominees) Limited or registered assigns the principal sum of 500,000,000 POUNDS STERLING on July 31, 2042. 

Interest Payment Dates: Semi-annually on January 31 and July 31, beginning on January 31, 2016 and on the principal payment
date (each, an “Interest Payment Date”). 
 Interest Record Dates: Each January 17 and July 17 preceding the
relevant Interest Payment Date (each, an “Interest Record Date”). 
 Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if set forth at this place. 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officer. 
  

			
	Apple Inc.
		
	By:	 	 
		 	Name:
		 	Title:

 This is one of the Securities of the series designated therein and referred to in the
within-mentioned Indenture. 
 Dated: July 31, 2015 
  

			
	The Bank of New York Mellon Trust Company, N.A., as Trustee
		
	By:	 	 
		 	Authorized Signatory

 (REVERSE OF NOTE) 

APPLE INC. 
 3.60% Note due 2042

  

	 	1.	Interest 

 Apple Inc. (the “Issuer”) promises to pay interest on the principal
amount of this Note at the rate per annum described above. Cash 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 July 31, 2015. Interest on this Note will be
paid to but excluding the relevant Interest Payment Date. The Issuer will pay interest semi-annually in arrears on each Interest Payment Date, commencing January 31, 2016. Interest will be computed on the basis of the actual number of days in
the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the Notes (or July 31, 2015 if no interest has been paid on the Notes), to but excluding the next
scheduled Interest Payment Date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. 

The Issuer shall pay interest on overdue principal from time to time on demand at the rate borne by the Notes and on overdue installments of
interest (without regard to any applicable grace periods) to the extent lawful. 
  

	 	2.	Paying Agent and Registrar. 

 Initially, The Bank of New York Mellon, London Branch, (the
“Paying Agent”) will act as paying agent. The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will initially act as security registrar for the Notes. The Issuer may change any paying agent or security
registrar upon notice to the Trustee. 
  

	 	3.	Indenture; Defined Terms. 

 This Note is one of the 3.60% Notes due 2042 (the
“Notes”) issued under an indenture dated as of April 29, 2013 (the “Base Indenture”) by and between the Issuer and the Trustee, as trustee, as supplemented by an Officer’s Certificate dated July 31,
2015, issued pursuant to Section 301 of the Indenture (together with the Base Indenture, the “Indenture”). This Note is a “Security” and the Notes are “Securities” under the Indenture. 

“Business Day” means any day which is not a day on which banking institutions in The City of New York, London or the
relevant place of payment are authorized or required by law, regulation or executive order to close. 
 For purposes of this Note,
unless otherwise defined herein, capitalized terms herein are used as defined in the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act as in effect on
the date on which the Indenture was qualified under the Trust Indenture Act. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of Notes are referred to the Indenture and the Trust Indenture Act for
a statement of them. 

	 	4.	Payment on the Notes 

 All payments of principal of, the redemption price (if any), and
interest and additional amounts (as provided in Section 8 hereof, if any), on the Notes, will be payable in pounds sterling, or, if the United Kingdom adopts euro as its lawful currency, in euro. If pounds sterling or, in the event the Notes
are redenominated into euro, euro is unavailable to the Issuer due to the imposition of exchange controls or other circumstances beyond the Issuer’s control or, in the event the Notes are redenominated into euro, the euro is no longer being
used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of
the Notes will be made in U.S. dollars until the pound sterling or euro, as the case may be, is again available to the Issuer or so used. The amount payable on any date in pounds sterling or, in the event the Notes are redenominated into euro, euro
will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second Business Day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a
rate of conversion, on the basis of the most recent U.S. dollar/pounds sterling or, in the event the Notes are redenominated into euro, the most recent U.S. dollar/euro exchange rate published in The Wall Street Journal on or prior to the second
Business Day prior to the relevant payment date. Any payment in respect of the Notes so made in U.S. dollars will not constitute an Event of Default under the Notes or the Indenture. Neither the Trustee nor the Paying Agent shall have any
responsibility for any calculation or conversion in connection with the foregoing. 
  

	 	5.	Denominations; Transfer; Exchange. 

 The Notes are in registered form, without coupons, in
denominations of £100,000 and any integral multiple of £1,000 in excess thereof. A Holder shall register the transfer or exchange of Notes in accordance with the Indenture. The Issuer may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or
exchange any Notes or portions thereof for a period of fifteen (15) days before the mailing of a notice of redemption, nor need the Issuer register the transfer or exchange of any Note selected for redemption in whole or in part except the
unredeemed portion of any Note being redeemed in part. 
  

	 	6.	Amendment; Supplement; Waiver. 

 Subject to certain exceptions, the Notes and the provisions of
the Indenture relating to the Notes may be amended or supplemented and any existing default or Event of Default or compliance with certain provisions may be waived with the written consent of the Holders of at least a majority in aggregate principal
amount of each series of Outstanding Securities (including the Notes) under the Indenture that is affected by such amendment, supplement or waiver (voting as a single class). Without notice to or consent of any Holder, the parties thereto may amend
or supplement the Indenture and the Notes to, among other things, cure any ambiguity, defect or inconsistency or comply with any requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act, or
make any other change that does not adversely affect the rights of any Holder of a Note. 

	 	7.	Optional Redemption. 

 The Issuer may at its option redeem any of the Notes in whole or in part
at any time, each at a redemption price calculated by the Issuer equal to the greater of: 
 (A) 100% of the principal amount of the Notes
to be redeemed; and 
 (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be
redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below), plus 15 basis points, 

plus, in each case, accrued and unpaid interest thereon to the date of redemption. 

Notwithstanding the foregoing, installments of interest on Notes that are due and payable on Interest Payment Dates falling on or prior to a
redemption date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the Interest Record Date according to the Notes and the Indenture. 

“Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an
independent investment bank selected by the Issuer, a United Kingdom government bond whose maturity is closest to the maturity of the Notes being redeemed, or if such independent investment bank in its discretion determines that such similar bond is
not in issue, such other United Kingdom government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, United Kingdom government bonds selected by the Issuer, determine to be appropriate for
determining the Comparable Government Bond Rate. 
 “Comparable Government Bond Rate” means the price, expressed as a
percentage (rounded to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes, if they were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be
equal to the gross redemption yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an
independent investment bank selected by the Issuer. 
 The provisions of Article XI of the Indenture shall apply to any redemption of the
Notes. 
 Unless the Issuer defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on
the Notes or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the applicable depository procedures, in the case of Notes represented by a Global Note, or by lot,
in the case of Notes that are not represented by a Global Note; provided, however, that no Notes of a principal amount of £100,000 or less shall be redeemed in part. 

	 	8.	Payment of Additional Amounts 

 All payments of principal and interest in respect of the Notes
will be made free and clear of, and without deduction or withholding for or on account of any present or future taxes, duties, assessments or other governmental charges of whatsoever nature required to be deducted or withheld by the United States or
any political subdivision or taxing authority of or in the United States, unless such withholding or deduction is required by law. 
 In the
event any withholding or deduction on payments in respect of the Notes for or on account of any present or future tax, assessment or other governmental charge is required to be deducted or withheld by the United States or any taxing authority
thereof or therein, the Issuer will pay such additional amounts on the Notes as will result in receipt by each beneficial owner of a Note that is not a U.S. Person (as defined below) of such amounts (after all such withholding or deduction,
including on any additional amounts) as would have been received by such beneficial owner had no such withholding or deduction been required. The Issuer will not be required, however, to make any payment of additional amounts for or on account of:

  

	 	A.	any tax, assessment or other governmental charge that would not have been imposed but for (1) the existence of any present or former connection (other than a connection arising solely from the ownership of those
Notes or the receipt of payments in respect of those Notes) between that Holder (or the beneficial owner for whose benefit such Holder holds such Note), or between a fiduciary, settlor, beneficiary of, member or shareholder of, or possessor of a
power over, that Holder or beneficial owner (if that Holder or beneficial owner is an estate, trust, partnership or corporation) and the United States, including that Holder or beneficial owner, or that fiduciary, settlor, beneficiary, member,
shareholder or possessor, being or having been a citizen or resident or treated as a resident of the United States or being or having been engaged in trade or business or present in the United States or having had a permanent establishment in the
United States or (2) the presentation of a Note for payment on a date more than 30 days after the later of the date on which that payment becomes due and payable and the date on which payment is duly provided for; 

 

	 	B.	any estate, inheritance, gift, sales, transfer, capital gains, excise, personal property, wealth or similar tax, assessment or other governmental charge; 

 

	 	C.	any tax, assessment or other governmental charge imposed on foreign personal holding company income or by reason of the beneficial owner’s past or present status as a passive foreign investment company, a
controlled foreign corporation, a foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates earnings to avoid U.S. federal income tax; 

 

	 	D.	any tax, assessment or other governmental charge which is payable otherwise than by withholding or deducting from payment of principal of or premium, if any, or interest on such Notes; 

	 	E.	any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of and premium, if any, or interest on any Note if that payment can be made without withholding
by any other paying agent; 

  

	 	F.	any tax, assessment or other governmental charge which would not have been imposed but for the failure of a beneficial owner or any Holder of Notes to comply with the Issuer’s request or a request of the
Issuer’s agent to satisfy certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of the beneficial owner or any Holder of the Notes that
such beneficial owner or Holder is legally able to deliver (including, but not limited to, the requirement to provide Internal Revenue Service Forms W-8BEN, W-8BEN-E, Forms W-8ECI, or any subsequent versions
thereof or successor thereto, and including, without limitation, any documentation requirement under an applicable income tax treaty); 

  

	 	G.	any tax, assessment or other governmental charge imposed on interest received by (1) a 10% shareholder (as defined in Section 871(h)(3)(B) of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”), and the regulations that may be promulgated thereunder) of the Issuer or (2) a controlled foreign corporation that is related to the Issuer within the meaning of Section 864(d)(4) of the Code, or (3) a bank
receiving interest described in Section 881(c)(3)(A) of the Code, to the extent such tax, assessment or other governmental charge would not have been imposed but for the beneficial owner’s status as described in clauses (1) through
(3) of this paragraph (G); 

  

	 	H.	to any withholding or deduction that is required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings;

  

	 	I.	any tax, assessment or other governmental charge required to be withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections) (“FATCA”), any
regulations or other guidance thereunder, or any agreement (including any intergovernmental agreement) entered into in connection therewith; or any law, regulation or other official guidance enacted in any jurisdiction implementing FATCA or an
intergovernmental agreement in respect of FATCA; or 

  

	 	J.	any combination of items (A), (B), (C), (D), (E), (F), (G), (H) and (I); 

 nor will the Issuer pay any
additional amounts to any beneficial owner or Holder of Notes who is a fiduciary or partnership to the extent that a beneficiary or settlor with respect to that fiduciary or a member of that partnership or a beneficial owner thereof would not have
been entitled to the payment of those additional amounts had that beneficiary, settlor, member or beneficial owner been the beneficial owner of those Notes. 

As used in this Section 8, “U.S. Person” means any individual who is a citizen or resident of the United States for U.S.
federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a
United States person under any applicable U.S. Treasury regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source. 

	 	9.	Redemption for Tax Reasons 

 If, as a result of any change in, or amendment to, the laws (or
any regulations or rulings promulgated under the laws) of the United States (or any political subdivision or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after July 24, 2015, the Issuer becomes, or based upon a written opinion of independent counsel selected by the Issuer, will
become obligated to pay additional amounts as described under Section 8 hereof with respect to the Notes, then the Issuer may at its option redeem, in whole, but not in part, the Notes on not less than 30 nor more than 60 days prior notice, at
a redemption price equal to 100% of their principal amount, together with interest accrued but unpaid on the Notes to the date fixed for redemption. 
  

	 	10.	Defaults and Remedies. 

 If an Event of Default (other than certain bankruptcy Events of
Default with respect to the Issuer) under the Indenture occurs with respect to the Notes and is continuing, then the Trustee may and, at the direction of the Holders of at least 25% in principal amount of the outstanding Notes, shall by written
notice, require the Issuer to repay immediately the entire principal amount of the Outstanding Notes, together with all accrued and unpaid interest and premium, if any. If a bankruptcy Event of Default with respect to the Issuer occurs and is
continuing, then the entire principal amount of the Outstanding Notes together with all accrued and unpaid interest and premium, if any, will automatically become due immediately and payable without any declaration or other act on the part of the
Trustee or any Holder. Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has received indemnity as it reasonably requires.
The Indenture permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Notes notice of certain continuing defaults or Events of Default if it determines that withholding notice is not opposed to their interest. 
  

	 	11.	Authentication. 

 This Note shall not be valid until the Trustee manually signs the certificate
of authentication on this Note. 
  

	 	12.	Abbreviations and Defined Terms. 

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

	 	13.	Common Code/ISIN Numbers. 

 Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuer has caused Common Code/ISIN numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes
and reliance may be placed only on the other identification numbers printed hereon. 
  

	 	14.	Governing Law. 

 The Indenture and the Notes shall be governed by, and construed in accordance
with, the laws of the State of New York. 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 
 I or we assign
and transfer this Note to 
 (Print or type assignee’s name, address and zip code) 

(Insert assignee’s soc. sec. or tax I.D. No.) 

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

 
  

							
	Date:	 	 	  	        Your Signature:	  	 

  
  

Sign exactly as your name appears on the other side of this Note. 
  

					
		 		 	Signature

 Signature Guarantee: 
  

					
	Signature must be guaranteed	 		 	Signature

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to,
or in substitution for, STAMP, all in accordance with the United States Securities Exchange Act of 1934, as amended. 

 SCHEDULE OF EXCHANGES OF NOTES 

The following exchanges of a part of this Global Note for physical Notes or a part of another 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

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