Document:

Neurokine Pharmaceuticals, Inc. - Exhibit 10.01 - Filed by newsfilecorp.com

This Agreement made this August 15, 2011 by
and between: 

Wakabayashi Fund, LLC

Japanese Limited Liability Company,

Address: 4-13-20 Mita Minato-Ku, Tokyo, Japan
108-0073

  Hereinafter referred to as “WAKABAYASHI” or “Consultant”
  

And 

NEUROKINE PHARMACEUTICALS, INC.

A Vancouver, BC Corporation, its agents,
successors or assigns 
Hereinafter referred to
as
“NEUROKINE
PHARMACEUTICALS, INC. OR “Client” 
Address: Suite 2007 - 1177 West
Hastings Street, Vancouver, B.C. V6E 2KE 
Telephone No: 604.221.0595 Fax No.: 604.225.0588 Mobile:
604.805.773
Email: adoroudian@neurokine.com

  Symbol: NEUKF.OB 

Whereas Consultant
is in the business of providing management consulting services to businesses in
an effort to obtain institutional capital from third parties for business use,
including equipment leasing, purchase order and/ or contract financing,
factoring and financing for land and buildings’
utilizing various financing instruments and whereas
Client desires to retain Consultant for the following purposes:

To provide institutional market awareness
and public relations services 

For and in consideration
  of mutual benefits, promises, and the cross consideration hereinafter set forth,
  the adequacy of which is hereby acknowledged, the parties hereto, WAKABAYASHI
  and NEUROKINE PHARMACEUTICALS, INC. collectively “THE PARTIES”, hereby covenant and agree
  as follows:

	1. 	
      Services

	 	 
		
      WAKABAYASHI FUND is hereby engaged to
      provide Public Relations services (non -exclusive) including serving as an
      investment banking liaison, obtaining write ups about the company and
      acting as an institutional public relations consultant for a six month
      period from the date hereof (the
      “term”).

	 	 
	2. 	
      Compensation

	 	 
		
      NEUROKINE PHARMACEUTICALS, INC.
      hereby agrees to pay WAKABAYASHI FUND for the services set forth in
      Paragraph 1, the following non-refundable retainer items:

	 	 
		
      A. The issuance of 1,600,000 shares
      of common stock upfront. Further, shares when issued will have no stop
      orders, orders to cancel or other legal impediment, and that said shares,
      when issued, will be validly issued, fully paid and non-assessable. The
      said shares shall be issued within five days after the date hereof. Such
      stock cannot be issued pursuant to an S-8 Registration statement. The
      shares are not in contravention of Section 5 of the Securities Act of 1933
      and specifically with sections 5a and 5c there under.

	 	 
		
      For undertaking this engagement and
      for other good and valuable consideration, NEUROKINE PHARMACEUTICALS, INC.
      agrees to issue to the Consultant a
      “Commencement Retainer” of 1,600,000 shares of NEUROKINE PHARMACEUTICALS,
      INC.’s Common Stock (“Common Stock”) to be
  delivered to WAKABAYASHI FUND within five (5)
      business days of the signing of this Agreement. This Commencement retainer
      shall be issued to WAKABAYASHI FUND immediately following execution of
      this Agreement and shall, when issued and delivered to WAKABAYASHI FUND,
  be fully paid and non- assessable.

		
      NEUROKINE PHARMACEUTICALS, INC.
      understands and acknowledges that WAKABAYASHI FUND has foregone
      significant opportunities to accept this engagement and that NEUROKINE
      PHARMACEUTICALS, INC. derives substantial benefit from the execution of
      this Agreement and the ability to announce its relationship with
      WAKABAYASHI FUND. Therefore, the 1,600,000 shares of Common Stock issued
      as a Commencement Retainer, constitute payment for NEUROKINE
      PHARMACEUTICALS, INC.’s agreement to
      consult with WAKABAYASHI FUND and are a
      nonrefundable, non-apportionable, and non-ratable retainer; such shares of
      common stock are not a prepayment for future services. If NEUROKINE
      PHARMACEUTICALS, INC. decides to terminate this Agreement prior to
      February 13, 2012 for any reason whatsoever, it is agreed and understood
      that WAKABAYASHI FUND will not be requested or demanded by NEUROKINE
      PHARMACEUTICALS, INC. to return any of the shares of Common Stock paid to
      it as retainer hereunder.

	 	 	 
		
      Further, if and in the event
      NEUROKINE PHARMACEUTICALS, INC. is acquired in whole or in part, during
      the term of this agreement, it is agreed and understood WAKABAYASHI FUND
      will not be requested or demanded by NEUROKINE PHARMACEUTICALS, INC. to
      return any of the 1,600,000 shares of Common Stock paid to it hereunder.
      It is further agreed that if at any time during the term of this
      agreement, NEUROKINE PHARMACEUTICALS, INC. or
      substantially all of WAKABAYASHI FUND’s assets
      are merged with or acquired by another entity, or some other change occurs
      in the legal entity that constitutes NEUROKINE PHARMACEUTICALS, INC.,
      WAKABAYASHI FUND shall retain and will not be requested by NEUROKINE
      PHARMACEUTICALS, INC. to return any of the 1,600,000 common
      shares.

	 	 	 
		
      B.        WAKABAYASHI FUND will also incorporate a free look clause whereby
      NEUROKINE PHARMACEUTICALS, INC. may request to verify
      our long position in NEUROKINE PHARMACEUTICALS, INC.'s stock as well as
      incorporate a proprietary restrictive clause which precludes any
      liquidation of our vested stock until the termination of our
      contract.

	 	 	 
	3. 	
      Termination of
      Agreement

	 	 	 
		A. 	
      Upon the bankruptcy or liquidation of
      the other party, whether voluntary or involuntary

		B. 	
      Upon the other party taking the
      benefit of any insolvency law

		C. 	
      Upon the other party having or
      applying for a receiver appointed for either party; and/or written notice
      by one party to the other party

	 	 	 
	4. 	
      Notices

	 	 	 
		
      All notices hereunder shall be in
      writing and addressed to the party at the address herein set forth, or at
      such other address which notice pursuant to this section may be given, and
      shall be given upon the earlier of actual receipt or three (3) business
      days after being mailed or delivered to such courier service. Any notices
      to be given hereunder shall be effective if executed by and/or sent by the
      attorneys for THE PARTIES giving such notice and, in connection therewith,
      THE PARTIES and their respective counsel agree in giving such notice such
      counsel may communicate directly in writing with such party to the extent
      necessary to give such notice.

	 	 	 
	5. 	
      Attorney Fees

	 	 	 
		
      In the event either party is in
      default of the terms or conditions of this Consulting Agreement and legal
      action is initiated or suit be entered as a result of such default, the
      prevailing party shall be entitled to recover all costs incurred as a result of such default including reasonable attorney fees, expenses and court costs through trial, appeal and to final disposition.

	
6. 		
Time is of the Essence
	
	 	 
		
Time is hereby expressly made of the essence of this Consulting Agreement with respect to the performance by THE PARTIES of their respective obligations hereunder.

	
	 	 
	
7. 		
Inurement
	
	 	 
		
This Consulting Agreement shall inure to the benefit of and be binding upon THE PARTIES hereto and their respective heirs, executors, administrators, personal representatives, successors, and consultant
cannot assign this agreement.

	
	 	 
	
8. 		
Entire Agreement
	
	 	 
		
This Consulting Agreement contains the entire agreement of THE PARTIES. It is declared by THE PARTIES that there are no other oral or written agreements or understanding between them affecting this Agreement.
This Agreement supersedes all previous agreements.

	
	 	 
	
9. 		
Amendments
	
	 	 
		
This Agreement may be modified or amended provided such modifications or amendments are mutually agreed upon by and between THE PARTIES hereto and that said modifications or amendments are made only by an
instrument in writing signed by THE PARTIES.

	
	 	 
	
10. 		
Waivers
	
	 	 
		
No waiver of any provision or condition of this Agreement shall be valid unless executed in writing and signed by the party to be bound thereby, and then only to the extent specified in such waiver. No waiver
of any provision or condition of this Agreement and no present waiver of any provision or condition of this Agreement shall be construed as a future waiver of such provision or condition.

	
	 	 
	
11. 		
Non-Waiver
	
	 	 
		
The failure of either party, at any time, to require any such performance by any other party shall not be construed as a waiver of such right to require such performance, and
shall in no way affect such party’s right to require such performance and shall in no way affect such party’s right subsequently to require a full
performance hereunder.

	
	 	 
	
12. 		
Construction of Agreement
	
	 	 
		
Each party and its counsel have participated fully in the review and revision of this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not
apply in the interpretation of this Agreement.

	
	 	 
	
13. 		
Non-Circumvention Agreement
	
	 	 
		
NEUROKINE PHARMACEUTICALS, INC. agrees, represents and warrants hereby that it shall not circumvent WAKABAYASHI with respect to any banking or lending institution, investment bank, trust, corporation,
individual or investor introduced by WAKABAYASHI to NEUROKINE PHARMACEUTICALS, INC. pursuant to the terms with WAKABAYASHI for the purpose of, without limitation, this Agreement and for a period of twenty four (24) months from the date of execution
by THE PARTIES of this Agreement. If NEUROKINE PHARMACEUTICALS, INC. enters into a transaction with a party introduced by consultant, then the fees owed under section 2 shall be due whether or not this Agreement or term has ended.

	

	14. 	Applicable Law
		 
		
      THIS AGREEMENT IS EXECUTED PURSUANT
      TO AND SHALL BE INTERPRETED AND GOVERNED FOR ALL PURPOSES BY THE LAWS OF
      STATE OF CALIFORNIA FOR WHICH THE COURTS IN SAN DIEGO, CALIFORNIA SHALL
      HAVE JURISDICTION WITHOUT GIVING EFFECT TO THE CHOICE OR LAWS OR CONFLICT
      OF LAWS RULES THEREOF OR OF ANY STYLE. The parties agree that mediation
      shall be used as an initial forum for the good-faith attempt to settle and
      resolve any issues or disputes that may arise.

	 	 
	15. 	
      Counterparts

	 	 
		
      This Agreement may be executed in a
      number of identical counterparts. Each such counterpart is deemed an
      original for all purposes and all such counterparts shall, collectively,
      constitute one agreement, but, in making proof of this Agreement, it shall
      not be necessary to produce or account for more than one
      counterpart.

	 	 
	16. 	
      Facsimile

	 	 
		
      A facsimile copy of this Agreement is
      acceptable.

	 	 
	17. 	
      Acceptance of
      Agreement

	 	 
		
      Unless both parties have signed this
      Agreement within five (5) business days of the date listed above, this
      Agreement shall be deemed automatically withdrawn and
      terminated.

	 	 
	18. 	
      Interstate
    Commerce

	 	 
		
      The Consultant shall undertake to
      comply at all times with Section 17B of the Securities Act of
      1933.

	 	 
		
      IN WITNESS WHEREOF, THE PARTIES have
      set forth their hands and seal in execution of this Consulting Agreement
      this August 15, 2011 by and between Wakabayashi Fund LLC and NEUROKINE
      PHARMACEUTICALS, INC.:

	Wakabayashi Fund LLC 	NEUROKINE
      PHARMACEUTICALS, INC. 
	A Japan Limited Liability Company 	A Vancouver, B.C.
      Corporation 
	 	  
	      	  
	 	  
	By:	By: 
	Tadaharu Wakabayashi, Director 	Dr. Ahmad Doroudian, Ph.D.,
      President & CEO 
	Date: August 15, 2011 	Date: August 15,
      2011 
	 	  
	 	  
	 	  
	 	NEUROKINE
      PHARMACEUTICALS, INC. 
	 	A Vancouver, B.C.
      Corporation 
	 	  
	 	  
	 	By: 
	 	Secondary Corporate
      Officer 
	 	Date: August 15,
      2011 

PROJECT SCOPE 

PROJECT ACTIVITIES 

WAKABAYASHI FUND, in providing funding
services, shall perform the following project specific functions and merge
WAKABAYASHI FUND efforts with NEUROKINE PHARMACEUTICALS, INC. resources, as
needed. The emphasis of this funding project shall be personal introductions of
NEUROKINE PHARMACEUTICALS, INC. to money managers, private equity fund managers,
hedge fund managers, pension fund managers, financial analysts, institutional
brokers, venture capitalists, investment bankers, and wholesale/retail market
makers. All out-of-pocket costs (i.e., costs for mail campaigns, printing,
distributions, etc.) shall be pre-approved and paid for by NEUROKINE
PHARMACEUTICALS, INC. 

	o 	
      Conduct and implement strategic
      planning analysis that combines NEUROKINE PHARMACEUTICALS, INC.
      due- diligence and WAKABAYASHI FUND in-house analysis tools
      to emphasize marketability. 

	 	 
	o 	
      Coordinate buy-side and sell-side
      brokerage research coverage introducing NEUROKINE PHARMACEUTICALS,
      INC. to these sources and facilitating their institutional
      research. This provides NEUROKINE PHARMACEUTICALS, INC. and WAKABAYASHI FUND additional analysis
      reports from funding services. 

	 	 
	o 	
      Investment banking
      introductions. 

	 	 
	o 	
      Develop story development project
      related Executive Summary for mail-out / distribution, which is
      flexible and updated to the ongoing developments of the
      NEUROKINE PHARMACEUTICALS, INC. 

	 	 
	o 	
      Plan marketing campaign matching
      NEUROKINE PHARMACEUTICALS, INC. to WAKABAYASHI FUND’S proprietary contact base and other
      investment prospects / sources anchored by Internet presence
  

	 	 
	o 	
      Target of one on one institutional
      investor meetings and conference calls with the most desirable in
      microcap, small cap and mid cap decision making analysts and
      portfolio managers of corporate, business and family funds 

	 	 
	o 	
      Corporate message refinement that is
      flexible according to ongoing developments 

	 	 
	o 	
      Fact Sheets flexible to ongoing
      developments 

	 	 
	o 	
      PowerPoint / slide
      presentations 

	 	 
	o 	
      Tele-conference call, including
      scripting, Q&A preparation, and thorough details for successful
      presentation 

	 	 
	o 	
      Honest feedback from all meetings to
      allow complete knowledge of ongoing relationships and enhancements
      of messaging 

	 	 
	o 	
      Work towards development of Analysts
      research coverage and comparable inclusion 

	 	 
	o 	
      Nurture of current and potential
      investors 

	 	 
	o 	
      Mail processing and request
      fulfillment 

	 	 
	o 	
      Investment Banking
      introductions 

	 	 
	o 	
      Annual Meetings
  

	o 	Peer Group /
      Industry Analysis 
	 	 
	o 	Perception
      audits of the investment community 

OPTIONAL PROJECT ACTIVITIES

These ancillary projects can be provided
  at NEUROKINE PHARMACEUTICALS, INC.’s
  discretion and cost.

	o 	
      Conduct road shows, with direct
      NEUROKINE PHARMACEUTICALS, INC.’s
      participation, in cities targeted because of NEUROKINE
      PHARMACEUTICALS, INC.’s institutional investor contact
      base 

	 	 
	o 	
      Design and Coordinate Trade
      Booths 

	 	 
	o 	
      Attend trade shows and
      conferences 

	 	 
	o 	
      Hold press/analysts seminars for
      institutional investors and investment managers 

	 	 
	o 	
      Develop investor relations section on
      NEUROKINE PHARMACEUTICALS, INC.’s
      website 

	 	 
	o 	
      Develop comprehensive website and
      e-commerce solutions and/or project related web pages 

	 	 
	
      o 
	
      Write media alerts and press releases
      to continuously generate press relating to NEUROKINE
      PHARMACEUTICALS, INC. and its stock performance, emphasizing both
      standard and Internet dissemination (company
      initiated only) 

	 	 
	o 	
      Plan and implement direct mail
      campaign to WAKABAYASHI FUND’S contact base and NEUROKINE PHARMACEUTICALS, INC.’s
      related contacts with follow-up telephone sales
      contact 

	 	 
	o 	
      Annual Reports: assisting in the
      writing as well as assisting and directing to the designers, graphic
      artists and printers for the complete management of the
      publication 

Please let this serve as detailed
information for wire transfer payments to Wakabayashi Fund LLC. 

Bank Name: Bank of Tokyo – Mitsubishi UFJ Ltd. 
Account Number: 0077306 
Bank Code /
Name: 043 / Tamachi 
Account Name: Wakabayashi
Fund LLC 
Swift Code: BOTKJPJT 
Branch Name: Tamachi Branch 043 
MUFJ Address: 2-7-1 Marunouchi, Chiyoda-ku Tokyo
Japan
Bank Representative: Ryota Ishida

Bank Telephone: 03-3454-0460Exhibit 4.1

 

YUM! BRANDS, INC.

 

OFFICERS’ CERTIFICATE

 

Pursuant to Section 2.1 and Section 2.3(a) of the Indenture, dated as of May 1, 1998 (the “Indenture”), between YUM! Brands, Inc. (formerly TRICON Global Restaurants, Inc.), a North Carolina corporation (the “Company”), and The Bank of New York Mellon Trust Company, N.A., as successor trustee (the “Trustee”), the undersigned, Larry Gathof, Vice President and Treasurer, and Rick Carucci, Chief Financial Officer and Senior Vice President, hereby certify on behalf of the Company as follows:

 

1.                                       AUTHORIZATION.  The establishment of a series of Securities of the Company has been approved and authorized in accordance with the provisions of the Indenture pursuant to a resolution adopted by the Board of Directors of the Company on September 22, 1997.

 

2.                                       COMPLIANCE WITH COVENANTS AND CONDITIONS PRECEDENT.  All covenants and conditions precedent provided for in the Indenture relating to the establishment of a series of Securities have been complied with.

 

3.                                       TERMS.  The terms of the series of Securities established pursuant to this Officers’ Certificate shall be as follows:

 

(i)                                     TITLE.  The title of the series of Securities is the “3.75% Senior Notes due November 1, 2021” (the “Notes”).

 

(ii)                                  AGGREGATE PRINCIPAL AMOUNT.  The aggregate principal amount of the Notes which may be authenticated and delivered pursuant to the Indenture (except for Notes (i) authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 2.8, 2.9, 2.11, 3.6, 9.5 or 10.3 of the Indenture or (ii) which, pursuant to Section 2.4 of the Indenture, are deemed never to have been authenticated and delivered) is initially limited to $350,000,000 subject, however to the Company’s right to increase such limit upon the delivery to the Trustee of an Officers’ Certificate specifying a higher amount.

 

(iii)                               REGISTERED SECURITIES IN BOOK-ENTRY FORM.  The Notes will be issued in book-entry form (“Book-Entry Notes”) and represented by one or more global notes (the “Global Notes”) in fully registered form, without coupons.  The initial Depositary with respect to the Global Notes will be The Depository Trust Company, New York, New York, as Depositary for the accounts of its participants.  So long as the Depositary for a Global Note, or its nominee, is the registered owner of the Global Note, the Depositary or its nominee, as the case may be, will be considered the sole owner or holder of the Notes in book-entry form represented by such Global Note for all purposes under the Indenture.  Book-Entry Notes will not be exchangeable for Notes in definitive form (“Definitive Notes”) except that, if the Depositary with respect to any Global Note or Notes is at any time unwilling or unable to continue as Depositary and a successor Depositary is not appointed by the Company within 90 days, the Company will issue Definitive Notes in exchange for the Book-Entry Notes represented

 

 

by any such Global Note or Notes.  In addition, the Company may at any time and in its sole discretion determine not to have a Global Note or Notes, and, in such event, will issue Definitive Notes in exchange for the Book-Entry Notes represented by such Global Note or Notes in accordance with the provisions of Section 2.8 of the Indenture.

 

(iv)                              PERSONS TO WHOM INTEREST PAYABLE.  Interest will be payable to the Person in whose name a Note is registered at the close of business (whether or not a Business Day) on the Regular Record Date with respect to such Note, except for interest payable on a Note surrendered for redemption as set forth in paragraph (viii) below.

 

(v)                                 STATED MATURITY.  The principal amount of the Notes will be payable on November 1, 2021 subject to earlier redemption as set forth in paragraph (viii) below.

 

(vi)                              RATE OF INTEREST; INTEREST PAYMENT DATES; REGULAR RECORD DATES; ACCRUAL OF INTEREST.  The Notes will bear interest at the rate of 3.75% per annum.  Interest on the Notes will be payable semiannually in arrears on May 1 and November 1 of each year (each, an “Interest Payment Date”), commencing on May 1, 2012.  The Regular Record Date for the Notes shall be April 15 or October 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  The Notes will bear interest from August 29, 2011, or from the most recent Interest Payment Date to which interest has been paid or duly provided for until the principal thereof is paid or made available for payment.  Interest payments shall be the amount of interest accrued from and including the most recent Interest Payment Date in respect of which interest has been paid or duly provided for (or from and including August 29, 2011, if no interest has been paid or duly provided for with respect to such Note), to but excluding the next succeeding Interest Payment Date.

 

(vii)                           PLACE OF PAYMENT; REGISTRATION OF TRANSFER AND EXCHANGE; NOTICES TO COMPANY.  Payment of the principal of and interest on the Notes will be made at the Corporate Trust Office of the Trustee in the Borough of Manhattan, The City of New York, or at any other office or agency designated by the Company for such purpose; provided, that at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities; and provided, further, that the Holder of the Notes shall be entitled to receive payments of principal of and interest on the Notes by wire transfer of immediately available funds, if appropriate wire transfer instructions have been received in writing by the Trustee not less than 15 days prior to the applicable payment date.

 

The Notes may be presented for exchange and registration of transfer at the Corporate Trust Office of the Trustee in the Borough of Manhattan, The City of New York, or at the office of any transfer agent hereafter designated by the Company for such purpose.  Notices and demands to or upon the Company in respect of the Notes and the Indenture may be served at YUM! Brands, Inc., 1441 Gardiner Lane, Louisville, Kentucky 40213, Attention: Treasurer.

 

(viii)                        REDEMPTION.  The Notes are not entitled to any mandatory redemption or sinking fund payments.  However, at any time prior to the date that is three months prior to the Stated Maturity, the Notes are redeemable in whole at any time or in part from time to time, at the option of the Company, at a Redemption Price equal to the greater of (i) 100% of the

 

2

 

principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon to the Redemption Date;  and (ii) the sum of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (not including any portion of the payment of interest accrued as of the Redemption Date), discounted to their present value as of the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined herein), as determined by the Quotation Agent (as defined herein), plus 25 basis points, plus accrued and unpaid interest on the principal amount to be redeemed to the Redemption Date.

 

At any time on or after the date that is three months prior to the Stated Maturity, the Notes are redeemable in whole at any time or in part from time to time, at the option of the Company, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon to the Redemption Date.

 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined herein), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined herein) for such Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.  “Quotation Agent” means one of the Reference Treasury Dealers (as defined herein) who the Company appointed.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations (as defined herein), or (ii) if the Company is provided fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.

 

“Reference Treasury Dealer” means each of Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, and their respective successors and, at the Company’s option, additional Primary Treasury Dealers; provided, however, that if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute another Primary Treasury Dealer.

 

Notwithstanding the foregoing, installments of interest whose Stated Maturity is prior to the relevant Redemption Date shall be payable to the Holders of such Notes, or one or more

 

3

 

Predecessor Securities, of record at the close of business on the relevant Regular Record Date.

 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of the Notes to be redeemed.  Unless the Company 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.

 

(ix)                                CHANGE OF CONTROL.  If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes (as described above), the Company shall be required to make an offer (the “Change of Control Offer”) to each holder of the Notes to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s Notes on the terms set forth below.  In the Change of Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase (the “Change of Control Payment”).  Within 30 days following any Change of Control Triggering Event or, at the option of the Company, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice shall be mailed to holders of the Notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”).  The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date.

 

On the Change of Control Payment Date, the Company shall, to the extent lawful:

 

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

 

(2)                                  deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and

 

(3)                                  deliver or cause to be delivered to the Trustee the Notes properly accepted together with an officer’s certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased.

 

The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Notes properly tendered and not withdrawn under its offer.  In addition, the Company shall not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

 

The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and

 

4

 

regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict.

 

For purposes of the Change of Control Offer provisions of the Notes, the following definitions shall apply:

 

“Change of Control” means the occurrence of any of the following: (1) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than the Company or one of its Subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s assets and the assets of its subsidiaries, taken as a whole, to one or more “persons” (as that term is defined in the Indenture), other than the Company or one of its Subsidiaries; or (3) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors.  Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 

“Continuing Director” means, as of any date of determination, any member of the Company’s Board of Directors who (1) was a member of such Board of Directors on the date the Notes were issued or (2) was nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the continuing directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director).

 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies.

 

5

 

“Moody’s” means Moody’s Investors Service, Inc.

 

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

 

“Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies and the Notes are rated below an investment grade rating by each of the Rating Agencies on any day within the 60-day period (which 60-day period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect a Change of Control; provided, however, that a Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Rating Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the Company’s or its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the Rating Event).

 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 

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

 

(x)                                   COVENANT DEFEASANCE.  The obligations of the Company to offer to repurchase the Notes following the occurrence of a Change of Control Triggering Event shall be subject to the covenant defeasance provisions of Section 8.5 of the Indenture.

 

(xi)                                DENOMINATIONS.  The Notes are issuable in minimum denominations of $2,000 and in integral multiples of $1,000 in excess thereof.

 

(xii)                             SECURITY REGISTER; PAYING AGENT.  The register of Securities for the Notes will be initially maintained at the Corporate Trust Office of the Trustee.  The Company hereby appoints the Trustee as the initial Paying Agent.

 

(xiii)                          FORM.  The Notes will be in substantially the form set forth in Exhibit A attached hereto and may have such other terms as are provided in such form.

 

Capitalized terms used in this Officers’ Certificate and not otherwise defined herein shall have the meanings set forth in the Indenture.

 

6

 

Each of the undersigned, for himself, states that he has read and is familiar with the provisions of Article II of the Indenture relating to the establishment of a series of Securities thereunder and the establishment of a form of Security representing a series of Securities thereunder and, in each case, the definitions therein relating thereto; that he is generally familiar with the other provisions of the Indenture and with the affairs of the Company and its acts and proceedings and that the statements and opinions made by him in this Certificate are based upon such familiarity; and that he has made such examination or investigation as is necessary to enable him to determine whether or not the covenants and conditions referred to above have been complied with; and in his opinion, such covenants and conditions have been complied with.

 

Insofar as this Certificate relates to legal matters it is based upon the Opinion of Counsel delivered to the Trustee contemporaneously herewith pursuant to Section 2.4 of the Indenture and relating to the Notes.

 

[Signature page follows on next page]

 

7

 

IN WITNESS WHEREOF, the undersigned have hereunto signed this Certificate on behalf of the Company as of this 29th day of August, 2011.

 

 

	
 
    	
 
    	
YUM!   BRANDS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Larry Gathof
    
	
 
    	
 
    	
 
    	
Name:
    	
Larry   Gathof
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Rick Carucci
    
	
 
    	
 
    	
 
    	
Name:
    	
Rick   Carucci
    
	
 
    	
 
    	
 
    	
Title:
    	
Chief   Financial Officer and
    
	
 
    	
 
    	
 
    	
 
    	
Senior   Vice President
    

 

Signature Page to Officer’s Certificate (Sections 2.1 and 2.3(a) Indenture)

 

 

EXHIBIT A

 

Form of Note

 

 

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, New York, New York (“DTC”) to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of DTC and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.

 

	
REGISTERED
    	
 
    	
YUM! BRANDS, INC.
    	
 
    	
REGISTERED
    

 

3.75% SENIOR NOTE DUE NOVEMBER 1, 2021

 

	
NO.
    	
 
    	
Principal Amount:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CUSIP:
    

 

YUM! Brands, Inc., a corporation duly organized and existing under the laws of the State of North Carolina (herein referred to as the “Company,” which term includes any successor corporation under the Indenture as hereinafter referred to) for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of                                                                              on November 1, 2021 and to pay interest thereon from August 29, 2011 or from the most recent Interest Payment Date to which interest has been paid or duly provided for semiannually in arrears on May 1 and November 1, in each year, commencing on May 1, 2012 at the rate of 3.75% per annum, until the principal hereof is paid or made available for payment.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture (as defined herein), be paid to the person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date, which shall be April 15 or October 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Except as otherwise provided in the Indenture, any such interest not punctually paid or duly provided for on any Interest Payment Date (herein called “Defaulted Interest”) will forthwith cease to be payable to the Holder on the Regular Record Date with respect to such Interest Payment Date and may either be paid to the person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.  Payment of the principal and interest on this Note will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, and at any other office or agency maintained by the Company for such purpose, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the register of Securities; and provided, further, that the Holder of this Note shall be entitled to receive payments of principal of and interest on this Note by wire transfer of immediately available funds, if appropriate wire transfer instructions have been received in writing by the Trustee not less than 15 days prior to the applicable payment date.

 

Reference is hereby made to the further provisions of this Note set forth herein, which further provisions shall for all proposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee or its duly appointed authenticating agent by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, YUM! Brands, Inc. has caused this instrument to be signed by the manual signature of its Chairman of the Board, one of its Vice Chairmen, its President or one of its Vice Presidents, or the Treasurer or any Assistant Treasurer, under its corporate seal reproduced thereon attested by its Secretary or one of its Assistant Secretaries.

 

	
 
    	
 
    	
YUM!   BRANDS, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
(SEAL)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Larry   Gathof
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Linda   Neat
    	
 
    	
 
    	
 
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:   August 29, 2011
    	
 
    	
 
    	
 
    

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

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

 

 

YUM! BRANDS, INC.

3.75% SENIOR NOTE DUE NOVEMBER 1, 2021

 

This Note is one of a duly authorized issue of securities (herein called the “Securities”) of the Company (which term includes any successor corporation under the Indenture hereinafter referred to), issued and to be issued pursuant to an Indenture, dated as of May 1, 1998 (herein called the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture).  This Note is one of a series designated by the Company as its 3.75% Senior Notes due November 1, 2021, initially limited in aggregate principal amount to $350,000,000.

 

The Company issued this Note pursuant to the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered.

 

The Notes are issuable in registered form, without coupons, in minimum denominations of $2,000 and in integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of any authorized denomination, as requested by the Holder surrendering the same, upon surrender of the Note or Notes to be exchanged at any office or agency described below where the Notes may be presented for registration of transfer.

 

Interest on the Notes shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.

 

Optional Redemption

 

The Notes are not entitled to any mandatory redemption or sinking fund payments.  However, at any time prior to the date that is three months prior to the Stated Maturity, the Notes are redeemable in whole at any time or in part from time to time, at the option of the Company, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon to the Redemption Date; and (ii) the sum of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (not including any portion of the payment of interest accrued as of the Redemption Date), discounted to their present value as of the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined herein), as determined by the Quotation Agent (as defined herein), plus 25 basis points, plus accrued and unpaid interest on the principal amount to be redeemed to the Redemption Date.

 

At any time on or after the date that is three months prior to the Stated Maturity, the Notes are redeemable in whole at any time or in part from time to time, at the option of the Company, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon to the Redemption Date.

 

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined herein), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined herein) for such Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.  “Quotation Agent” means one of the Reference Treasury Dealers (as defined herein) who the Company appointed.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations (as defined herein) for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Company is provided fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations.

 

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.

 

“Reference Treasury Dealer” means each of Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, and their respective successors, and, at the Company’s option, additional Primary Treasury Dealers; provided, however, that if any of the foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute another Primary Treasury Dealer.

 

Notwithstanding the foregoing, installments of interest whose Stated Maturity is prior to the Redemption Date of any Note will be payable to the Holder of such Note, or one or more Predecessor Securities, of record at the close of business on the relevant Regular Record Date referred to above, all as provided in the Indenture.

 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each holder of the Notes to be redeemed.  Unless the Company 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.

 

All notices of redemption shall state the Redemption Date, the Redemption Price, if fewer than all the Outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the particular Notes to be redeemed, that on the Redemption Date the Redemption Price will become due and payable upon each Note, or portion thereof, to be redeemed, that interest on each Note, or portion thereof, called for redemption will cease to accrue on the Redemption Date and the place or places where Notes may be surrendered for redemption. If fewer than all of the Notes are to be redeemed at any time, selection of such Notes for redemption will be made by the Trustee by such method as the Trustee shall deem fair and appropriate.

 

In the event of redemption of this Note in part only, a new Note or Notes of like tenor for the unredeemed portion hereof will be issued in authorized denominations in the name of the Holder hereof upon the cancellation hereof.

 

For all purposes of this Note and the Indenture, unless the context otherwise requires, all provisions relating to the redemption by the Company of this Note shall relate, in the case that this Note is redeemed or to be redeemed by the Company only in part, to that portion of the principal amount of this Note that has been or is to be redeemed.

 

Change of Control

 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes (as described above), the Company shall be required to make an offer (the “Change of Control Offer”) to each holder of the Notes to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s Notes on the terms set forth below.  In the Change of Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase (the “Change of Control Payment”).  Within 30 days following any Change of Control Triggering Event or, at the option of the Company, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice shall be mailed to holders of the Notes describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”).  The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date.

 

On the Change of Control Payment Date, the Company shall, to the extent lawful:

 

 

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

 

(2)           deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and

 

(3)           deliver or cause to be delivered to the Trustee the Notes properly accepted together with an officer’s certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased.

 

The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Notes properly tendered and not withdrawn under its offer.  In addition, the Company shall not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

 

The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict.

 

For purposes of the Change of Control Offer provisions of the Notes, the following definitions shall apply:

 

“Change of Control” means the occurrence of any of the following: (1) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than the Company or one of its Subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s assets and the assets of its subsidiaries, taken as a whole, to one or more “persons” (as that term is defined in the Indenture), other than the Company or one of its Subsidiaries; or (3) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors.  Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 

“Continuing Director” means, as of any date of determination, any member of the Company’s Board of Directors who (1) was a member of such Board of Directors on the date the Notes were issued or (2) was nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the continuing directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director).

 

 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

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

 

“Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies and the Notes are rated below an investment grade rating by each of the Rating Agencies on any day within the 60-day period (which 60-day period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect a Change of Control; provided, however, that a Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Rating Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the Company’s or its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the Rating Event).

 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 

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

 

Other Provisions of the Notes and the Indenture

 

If an Event of Default with respect to the Notes shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.  Holders of Notes may not enforce their rights pursuant to the Indenture or the Notes except as provided in the Indenture.

 

The Indenture permits, in certain circumstances therein specified, the amendment thereof without the consent of the Holders of the Securities.  The Indenture also permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations under the Indenture of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision of this Note or, subject to the provisions for satisfaction and discharge in Article VIII of the Indenture, of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

The Indenture permits the Company, by irrevocably depositing, in amounts and maturities sufficient to pay

 

 

and discharge at the Stated Maturity or Redemption Date, as the case may be, the entire indebtedness on all Outstanding Notes, cash or direct obligations of, or obligations the principal of and interest on which are fully guaranteed by, the United States government, and which are not subject to prepayment, redemption or call, with the Trustee in trust solely for the benefit of the Holders of all Outstanding Notes, to defease the Indenture with respect to such Notes, and upon such deposit the Company shall be deemed to have paid and discharged its entire indebtedness on such Notes. Thereafter, Holders would be able to look only to such trust fund for payment of principal and interest at the Stated Maturity or Redemption Date, as the case may be. The Indenture also permits, in certain circumstances therein specified, the Company to be released from certain of its obligations under the Indenture on the terms and subject to the conditions therein provided.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the register of Securities, upon surrender of this Note for registration of transfer at the office or agency of the Company in the Borough of Manhattan, The City of New York, or at such other offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

No service charge shall be made by the Company, the Trustee or the Registrar for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax, assessment or other governmental charge payable in connection therewith (other than exchanges pursuant to Sections 2.11, 3.6 or 9.5 of the Indenture, not involving any transfer).

 

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

 

The Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York of the United States of America, including without limitation, New York General Obligations Law Sections 5-1401 and 5-1402 and New York Civil Practice Law and Rules 327.

 

All undefined terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

 

ABBREVIATIONS

 

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

 

TEN COM - as tenants in common

 

	
UNIF GIFT MIN ACT                        Custodian                        - Under Uniform Gifts to Minor Act (State)
    
	
 
    	
 (Cust.)
    	
 
    	
 (Minor)
    	
 
    

 

TEN ENT - as tenants by the entireties

 

JT TEN - as joint tenants with right of survivor- ship and not as tenants in common

 

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

 

 

 

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

 

Please Insert Social Security or Employer

Identification number of assignee

 

	
–
    	
–
    

 

 

Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee

 

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing                                        attorney to transfer said Security on the books of the Company, with full power of substitution in the premises.

 

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature
    

 

 

	
NOTICE:
    	
The   signature to this assignment must correspond with the name as it appears upon   the face of the within Note in every particular, without alteration or   enlargement or any change whatever.

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