Document:

Exhibit 10_28

		
			Appvion, Inc.
		

		
			Long Term Restricted Stock Unit Plan
		

		
			(As Amended and Restated Effective January 1, 2016)

		

		
			ARTICLE 1.
		

		
			Purpose
		

		
			The Board adopted the Plan for the purpose of assisting the Company in attracting and retaining key management employees who are in a position to make a significant contribution to the growth and profitability of the Company by providing a reward for performance and incentive for future endeavors. The Plan will be implemented through the opportunity to earn Restricted Stock Units, the value of which is related to the value of the Company’s stock, but Company stock is not issued at the time of the grant, vesting or distribution.
		

		
			ARTICLE 2.
Definitions 
		

		
			Capitalized words and phrases used in the Plan have the following meanings unless otherwise expressly provided herein:
		

		
			2.1Board. "Board" means the Board of Directors of Appvion, Inc.
		

		
			2.2Cause. "Cause" in connection with the termination of the Participant's employment with the Company, means that, in the judgment of the Committee, based upon any information or evidence reasonably persuasive to the Committee, the Participant: (1) willfully engaged in activities or conducted himself or herself in a manner seriously detrimental to the interests of the Company or its subsidiaries and affiliates; or (2) failed to execute the duties reasonably assigned to him or her in a reasonably timely, effective, or competent manner; provided, however, that the termination of the Participant's employment because of Disability shall not be deemed to be for Cause.
		

		
			2.3Change of Control. “Change of Control” means: (1) the termination of the ESOP or amendment of the ESOP so that it ceases to be an employee stock ownership plan; (2) the ESOP ceases to own a majority interest in the Company; (3) the sale, lease, exchange or other transfer of all or substantially all of the assets of the Company (in one transaction or in a series of related transactions) to a person or entity that is not controlled by the Company; (4) the approval by the Company shareholders of any plan or proposal to terminate the Company’s business, to liquidate or dissolve the Company or to sell substantially all the Common Stock; (5) the Company merges or consolidates with any other company and the Company is not the surviving company of such merger or consolidation, and the surviving company is not controlled by the persons or entities who controlled the Company immediately prior to such merger or consolidation; or (6) any other event or series of events whereby ownership and effective control of the Company is transferred or conveyed to a person or entity that is not controlled by the Company.
		

		
			 
		

		

		

		 

		

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		2.4Committee. “Committee” means the Compensation Committee of the Board.
		

		
			2.5Common Stock. "Common Stock" means the common stock of Paperweight Development Corp.
		

		
			2.6Company. "Company" means the affiliated group of corporations, as defined in Section 1504(a) of the Internal Revenue Code, which includes Appvion, Inc. or any corporate successor to Appvion, Inc. “Company” also means (except where the context relates to a Change in Control) any subsidiary or other affiliate of Appvion, Inc. who employs an Eligible Employee (as designated by the Committee in accordance with Section 4.1). Any such subsidiary or affiliate of Appvion, Inc. that has become a “Company” as provided above is deemed to have designated Appvion, Inc. as its agent with respect to amending or terminating the Plan. Any such action by Appvion, Inc. shall be binding on such subsidiary or affiliate at the time taken.
		

		
			2.7Disability. “Disability” means a physical or mental condition of the Participant which results in the Participant receiving benefits under an applicable Company’s long term disability insurance plan, or in the event the Participant is not participating in a Company long term disability insurance plan, means disability as defined under the long term disability plan of Appvion, Inc.
		

		
			2.8Eligible Employee. "Eligible Employee" means an employee of Appvion, Inc. in the following classifications: (1) the Chief Executive Officer, (2) a Vice President or Mill Manager, (3) a director-level employee; and (4) any other key employee of a participating Company who has been designated by the CEO as an Eligible Employee.
		

		
			2.9Employment. References in the Plan to “employment” with the Company; “year(s) of employment” and “termination of employment” shall in all events refer to the total period of employment with Appvion, Inc. and any of its subsidiaries or affiliates. For example, a Participant’s termination of employment for purposes of the Plan shall occur at the time the Participant is no longer employed by Appvion, Inc., or any of its subsidiaries or affiliates.
		

		
			2.10 ESOP. "ESOP" means the Appvion, Inc. Retirement Savings and Employee Stock Ownership Plan.
		

		
			2.11 Fair Market Value. “Fair Market Value” means the value of a Restricted Stock Unit which is equal to the fair market value most recently assigned to Common Stock under the terms of the ESOP prior to the Grant Date or date of valuation. For example, the value of a Restricted Stock Unit between January 1 and June 30 will be based on the fair market value assigned to the Common Stock under the ESOP on the prior December 31 valuation. The value of a Restricted Stock Unit between July 1 and December 31 will be based on the prior June 30 valuation, subject to the applicable requirements of Code Section 409A.
		

		
			2.12 Participant. “Participant” means an Eligible Employee who has been granted Restricted Stock Units in accordance with Article 4 of the Plan and has an existing account balance.
		

		
			2.13 Plan. “Plan” means the Appvion, Inc. Long Term Restricted Stock Unit Plan, as set forth herein and as amended from time to time.
		

		
			2.14 Plan Year. “Plan Year” means the fiscal year of Appvion, Inc.
		

		
			 
		

		

		

		 

		

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		2.15 Representative. “Representative” means the personal representative of the Participant's estate, and after final settlement of the Participant's estate, the successor or successors entitled thereto by law.
		

		
			2.16 Restricted Stock Unit. “Restricted Stock Unit” means a bookkeeping unit and accounting mechanism designed to measure the value of a nonequity compensation unit payable as taxable compensation to the Participant in accordance with Article 5. One Restricted Stock Unit has a value equal to the value of one share of Common Stock (as determined pursuant to Section 5.3).
		

		
			2.17 Retirement.  “Retirement” means termination of employment with the Company or an applicable subsidiary or affiliate, after age 55 and with at least 10 years of service.
		

		
			2.18 Vesting Date. “Vesting Date” means the date on which a Participant’s Restricted Stock Units vest under the provisions of Article 5.
		

		
			ARTICLE 3.
		

		
			Plan Administration
		

		
			3.1Committee Administration. The Committee shall be responsible for the operation and administration of the Plan. The decision of a majority of the members of the Committee shall constitute the decision of the Committee. The Committee may act either at a meeting at which a majority of the members of the Committee is present or by a writing signed by all Committee members. The Committee shall have full discretion, power and authority, in its sole discretion, to make factual determinations, construe, interpret and administer the Plan, to adopt such rules and regulations governing the administration of the Plan, and shall exercise all other duties and powers conferred on it by the Plan, or which are incidental or ancillary thereto, and may designate agents to assist it in administration of the Plan. The Committee shall have the sole, final and conclusive authority to determine, consistent with and subject to the provisions of the Plan, the Eligible Employees, Maximum Reserved Units, the number of Restricted Stock Units to be awarded to individual Participants reporting to the CEO, and all other matters relating to the Plan. Benefits will be paid only if the Committee determines in its discretion that the applicant is entitled to them.
		

		
			3.2 Maximum Reserved Units. The maximum number of Restricted Stock Units that may be granted each year shall be authorized by the Compensation Committee of the Board of Directors in accordance with the executive compensation goals and policies.
		

		
			3.3Changes in Capital Structure. If there is a change in the outstanding Common Stock by reason of the issuance of additional units, recapitalization, reclassification, reorganization or similar transaction, the Committee shall proportionately adjust, in an equitable manner, the aggregate number of available Restricted Stock Units and the number of Restricted Stock Units held by Participants. The adjustment shall be made in a manner that will cause the value of Restricted Stock Units at the time of the transaction to remain unchanged as a result of the transaction.
		

		
			 
		

		

		

		 

		

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		ARTICLE 4.
		

		
			Participation and Awards
		

		
			4.1Annual Grants. Restricted Stock Units shall be granted, as of the first day of a Plan Year, or as of January 1 if the Plan Year begins on or before December 31 of the prior calendar year (the “Grant Date”), to all Eligible Employees who are Participants with respect to that Plan Year. By February 28, the Committee shall determine and approve the number of Restricted Stock Units awarded to the CEO, the number of Restricted Stock Units awarded to individual Participants reporting to the CEO, and the Maximum Reserve Units. The number of Restricted Stock Units awarded to each Participant for the upcoming Plan Year shall be approved by the CEO, with input from other Vice Presidents, before February 28 of each Plan Year. The CEO shall notify Participants of the Units awarded for a Plan Year (“Grant Confirmation”) as soon as administratively practical after such awards have been approved. Participants who have been invited to receive a grant, must accept the grant by signing an Acknowledgement form provided by the Company.
		

		
			Notwithstanding the foregoing, Restricted Stock Units shall not be granted under the Plan to the extent a Participant elects a deferral of the Participant’s Restricted Stock Unit award under the terms of the Executive Nonqualified Excess Plan, as amended.
		

		
			4.2New Hires and Employment Classification Changes. An individual who becomes a Participant after the beginning of a Plan Year, either as a newly hired employee or as a result of a change in employment classification, shall be entitled to receive a grant of Restricted Stock Units at the discretion of the Committee or the CEO in accordance with Section 4.1.
		

		
			ARTICLE 5.
		

		
			Vesting and Payment of Units
		

		
			5.1Vesting. A Restricted Stock Unit shall be 100% vested upon the completion of three (3) full years of employment commencing with the Grant Date of the Restricted Stock Unit or, if earlier, upon the occurrence of a Change of Control. Upon termination of employment due to the Participant’s death, Disability or Retirement, an award of Restricted Stock Units shall be 0% vested if such employment termination occurs before the completion of one (1) full year of employment commencing with the Grant Date, 33.3% vested if such employment termination occurs on or after the completion of one (1) full year of employment, but before completion of two (2) full years of employment commencing with the Grant Date, and shall be 66.7% vested if such employment termination occurs on or after the completion of two (2) full years of employment but before the completion of three (3) full years of employment commencing with the Grant Date. Retirements on December 31 of any given Plan Year shall be treated as a full year of employment for vesting purposes. Any grant of Restricted Stock Units, or portion thereof, not vested according to the foregoing schedule on the date of the Participant's termination of employment for any reason shall be forfeited.
		

		
			5.2Payment For Vested Units. Upon the vesting of Restricted Stock Units in accordance with Section 5.1, payment, less applicable withholding taxes, shall be made to the Participant (or to the Participant’s Representative in the event of the Participant’s death) in a single sum cash payment in an amount equal to the value of the Restricted Stock Unit as determined under Section 5.3. This cash payment will be paid in the currency in which such Participant is paid the majority of his or her remuneration by multiplying the amount by the appropriate currency exchange rate as posted in the Wall Street Journal on the last date of the valuation of the Common Stock. Payment will be made as soon as administratively practicable after vesting, but no later than 
		
		
 

		

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		two and one-half months following yearend of the taxable year  in which vesting occurred, provided, however, that if it is administratively impracticable to make the payment by such date, or if the payment would jeopardize the ability of the Company to continue as a going concern, then such payment shall be made as soon as administratively practicable or as soon as the payment would no longer have such effect.

		
		
			5.3Unit Valuation. The value represented by a Restricted Stock Unit shall be the greater of: (1) the Fair Market Value of a share of Common Stock; (2) the price per share of Common Stock received as a result of a Change of Control; or (3) a public offering price.
		

		
			5.4 Tax Withholding. The Company shall deduct from payments made under the Plan any federal, state or local withholding or other taxes or charges which the Company is required to deduct under applicable law.
		

		
			5.5Change of Control Tax Provisions. With respect to Restricted Stock Units awarded on or after January 1, 2016, if any payments or benefits provided to Participants in connection with a Change of Control under this Agreement (the “Payments”) constitute “excess parachute payments” as defined in Section 280G of the Internal Revenue Code (the “Code”), which are subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Payments will either be (i) reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such Payment, as so reduced, constitutes an excess parachute payment or (ii) delivered in full, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the excise tax (and any equivalent state or local excise taxes), results in the receipt by the Participant, on an after tax basis, of the greatest amount of payment or benefits, notwithstanding that all or some portion of such payments or benefits may be subject to the excise tax.  The fact that the Participant's right to payments or benefits may be reduced by reason of the limitations contained in this Section 5.5 will not of itself limit or otherwise affect any other rights of the Participant other than pursuant to this Agreement.  In the event that any payment or benefit intended to be provided under this Agreement or otherwise is required to be reduced pursuant to this Section 5.5, cash severance payable hereunder shall be reduced first, then other cash payments that qualify as Excess Parachute Payments payable to the Participant, then non cash benefits shall be reduced, as determined by the Corporation.  
		

		
			For purposes of determining whether any of the Payments will be subject to the Excise Tax and the amount of such Excise Tax, (i) any other payments or benefits received by Participant in connection with a Change of Control or Participant’s termination of employment shall be treated as “parachute payments” within the meaning of section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel selected by the Corporation’s independent auditors and acceptable to Participant such other payments or benefits (in whole or in part) do not constitute parachute payments, or such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code, (ii) the amount of the Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Payments or (B) the amount of excess parachute payments within the meaning of Sections 280G(b)(1) and (4) (after applying clause (i) above, and after deducting any excess parachute payments in respect of which payments have been made), and (iii) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Corporation’s independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. 
		

		
			 
		

		

		

		 

		

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		5.6Forfeitures. Notwithstanding any other provision of the Plan, all rights to any payments under the Plan, shall be discontinued and forfeited, and the Company will have no further obligation to the Participant if
		

			
	
			
				 a.
			

			
	
			
			the Participant is discharged from employment with the Company or its subsidiaries and affiliates for Cause, or the Participant performs during the course of his employment with the Company or its subsidiaries and affiliates acts of willful malfeasance or gross negligence in a matter of material importance to the Company, or

			
	
			
				 b.
			

			
	
			
			the Participant violates any express restrictive covenant between Participant and Company (whether relating to obligations of confidentiality, non-competition, non-solicitation or otherwise).

		
			Absent a Change of Control, any decision of the Committee with respect to the application of the provisions of this Section 5.6 shall have a presumption of correctness, and the burden shall be on the Participant to rebut such presumption by clear and convincing evidence.
		

		
			5.7Presumed Competency. Every person receiving or claiming payments under the Plan shall be conclusively presumed to be mentally competent until the date on which the Company receives a written notice in a form and manner acceptable to the Company that such person is incompetent and that a guardian, conservator or other person legally vested with the interest of his or her estate has been appointed. In the event a guardian or conservator of the estate or any person receiving or claiming payments under the Plan shall be appointed by a court of competent jurisdiction, payments under the Plan may be made to such guardian or conservator provided that the proper proof of appointment and continuing qualification is furnished in a form and manner acceptable to the Company. Any such payments so made shall be a complete discharge of any liability or obligation of Company or the Committee regarding such payments.
		

		
			5.8Forfeiture of Unclaimed Benefits. Each Participant shall keep the Company informed of his or her current address. The Company shall not be obligated to search for the whereabouts of any person. If the Company is unable to locate any person to whom a payment is due under the Plan or a distribution payment check is not presented for payment, such payment shall be irrevocably forfeited at the earlier of: (1) the day preceding the date such payment would otherwise escheat pursuant to any applicable escheat law; or (2) the later of three (3) years after the date on which the payment was first due or ninety (90) days after issuance of the check. Forfeited payments shall be returned to the Company.
		

		
			 
		

		
			ARTICLE 6.
		

		
			Miscellaneous Provisions
		

		
			6.1Nonguarantee of Employment. No employee or other person shall have any claim or right to participate in the Plan except as designated by the Committee. Neither the Plan nor any action taken pursuant to the Plan shall be construed as giving any employee any right to be retained in the employ of the Company.
		

		
			6.2No Rights as Shareholder. Restricted Stock Units shall not entitle the Participant to an equity interest in the Company nor give the Participant the rights of a shareholder in the Company.
		

		
			 
		

		

		

		 

		

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		6.3Nonassignable . Restricted Stock Units are an unfunded promise to pay and are not property. Any rights and privileges represented by a Restricted Stock Unit may not be transferred, assigned, pledged or hypothecated in any manner, by operation of law or otherwise, and shall not be subject to execution, attachment or similar process except as provided in Section 6.5.
		

		
			6.4Unfunded Plan. The Plan shall at all times be unfunded and no provision shall at any time be made with respect to segregating assets of the Company for payment of benefits under the Plan. No Participant or other person shall have any interest in any particular assets of the Company and shall have only the rights of a general unsecured creditor of the Company with respect to any rights under the Plan.
		

		
			6.5Offsets. As a condition to eligibility to participate in the Plan, each Participant consents to the deduction from amounts otherwise payable to the Participant under the Plan all amounts owed by the Participant to the Company and its subsidiaries and affiliates to the maximum extent permitted by applicable law.
		

		
			6.6Limitation of Actions. No lawsuit with respect to any benefit payable or other matter arising out or relating to the Plan may be brought before exhaustion of claim and review procedures established by the Committee, and any lawsuit must be filed no later than nine (9) months after a claim is denied or be forever barred.
		

		
			6.7 Amendment and Termination. The Board may amend or terminate the Plan at any time provided that no amendment to the Plan may alter, impair or reduce the number of Restricted Stock Units earned before the effective date of the amendment without the written consent of the affected Participants. No Restricted Stock Units may be awarded after the date of Plan termination although payments shall be made in accordance with the Plan with respect to Restricted Stock Units awarded before the date of Plan termination.  Notwithstanding anything herein to the contrary, the Committee, in its sole discretion, may accelerate the time for exercise of vested Restricted Stock Units upon Plan termination.
		

		
			6.8Internal Revenue Code Section 409A. The Plan is intended to be exempt from the coverage of the Internal Revenue Code Section 409A, and shall be administered and interpreted in such a way as to maintain the status of the Plan as being so exempt. Any deferral of Restricted Stock Units shall be made under and governed by the terms, conditions and limitations of the Appvion, Inc. Executive Nonqualified Excess Plan, as amended, and shall not be made under or governed by the terms of the Plan.
		

		
			 
		

		
			6.9Governing Law; Jurisdiction. The Plan shall be governed by, and construed in accordance with, the laws of the State of Wisconsin. By participating in the Plan, the Participant irrevocably consents to the exclusive jurisdiction of the courts of the State of Wisconsin and of any federal court located in Milwaukee, Wisconsin in connection with any action or proceeding arising out of or relating to the Plan, any document or instrument delivered pursuant to or in connection with the Plan.
		

		
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			Page 7 of 7ex4_02.htm

 

Exhibit 4.02

 

THIS NOTE IS A REGISTERED SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREIN AND IS REGISTERED IN THE NAME USB NOMINEES (UK) LIMITED, AS NOMINEE OF U.S. BANK NATIONAL ASSOCIATION, AS COMMON DEPOSITARY (THE “COMMON DEPOSITARY”) FOR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME AND EUROCLEAR BANK SA/NV. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, EXCEPT AS A WHOLE BY THE COMMON DEPOSITARY OR ANOTHER DEPOSITARY OR BY THE COMMON DEPOSITARY OR A NOMINEE OF THE COMMON DEPOSITARY TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY OR IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

	
No. 1

	
Common Code/ISIN 104349838/XS1043498382

 

PRAXAIR, INC.

 

€600,000,000

 

1.500% Note due March 11, 2020

 

Praxair, Inc. promises to pay to USB NOMINEES (UK) LIMITED or registered assigns the principal sum of SIX HUNDRED MILLION EUROS on March 11, 2020.

 

Interest Payment Date: March 11

Record Dates: February 25

  

  

  

ELAVON FINANCIAL SERVICES LIMITED,

UK BRANCH

Transfer Agent and Paying Agent

 

 

By:  ___________________________________

       Name:

       Title:

By:  ___________________________________

       Name:

       Title:

[Global Note]

  

  

  

	
PRAXAIR, INC.

 

 

By:  _________________________

       Name:  Stephen F. Angel

       Title:    Chairman, President and

                   Chief Executive Officer

 

 

By:  _________________________

       Name:  Matthew J. White

       Title:    Senior Vice President and

                   Chief Financial Officer

(SEAL)

[Global Note]

  

  

  

Authenticated:

ELAVON FINANCIAL SERVICES LIMITED

Registrar, by

 

 

By:  ___________________________________

       Name:

       Title:

 

By:  ___________________________________

       Name:

       Title:

[Global Note]

  

  

  

PRAXAIR, INC.

 

1.500% Note due March 11, 2020

 

	
1.  

	
Interest.

 

Praxair, Inc. (“Company”), a Delaware corporation, promises to pay interest on the principal amount of the Securities (as defined below) at the rate per annum shown above.  The Company will pay interest annually in arrears on March 11 of each year commencing March 11, 2015.  Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from March 11, 2014.  Interest on the Securities 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 Securities (or March 11, 2014 if no interest has been paid on the Securities), 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.

 

	
2.  

	
Method of Payment.

 

The Company will pay interest on the Securities to the persons who are registered Holders of the Securities at the close of business on the record date for the next interest payment date, except as otherwise provided in the Indenture (as defined below).  Holders must surrender Securities to a Paying Agent to collect principal payments.  The Company may pay principal and interest by check payable in such money.  It may mail an interest check to a Holder’s registered address.

 

All payments of interest and principal, including payments made upon redemption of the Securities, will be payable in euro. If the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or the euro is no longer used by the 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 Securities will be made in U.S. dollars until the euro is again available to the Company or so used. In such a circumstance, the amount payable on any date in euro will be converted into U.S. dollars on the basis of the most recently available market exchange rate for the euro. Any payment in respect of the Securities so made in U.S. dollars will not constitute an Event of Default under the Securities or the Indenture.

 

	
3.  

	
Bond Agents.

 

Elavon Financial Services Limited, UK Branch will initially act as paying agent (“Paying Agent”) and Transfer Agent with respect to the Securities and Elavon Financial Services Limited will initially act as Registrar with respect to the Securities. Upon notice to U.S. Bank National Association, as Trustee (the “Trustee”), the Company may change any Paying Agent, Transfer Agent or Registrar.  The Company or any Affiliate may act in any such capacity.  Subject to certain conditions, the Company may change the Trustee.

 

	
4.  

	
Indenture.

 

The Company issued the securities of this series (“Securities”) under an Indenture dated as of July 15, 1992 (“Indenture”) between the Company and the Trustee.  The terms of the Securities include those stated in the Indenture and in the Bond Resolution creating the Securities and those made part of the Indenture by the Trust Indenture Act of 1939, as amended (15 U.S. Code § 77aaa-77bbbb) (the “TIA”).  Securityholders are referred to the Indenture, the Bond Resolution and the TIA for a statement of such terms.

 

	
5.  

	
Redemption.

 

All or part of the Securities may be redeemed at any time at the Company’s option. The redemption price for the Securities to be redeemed on any redemption date will be equal to the greater of:

 

(1) the principal amount of the Securities being redeemed plus accrued and unpaid interest to the redemption date; or

 

  

  

  

(2) the sum of the present values of the principal amount of the Securities, together with the scheduled annual payments of interest (exclusive of interest to the redemption date) from the redemption date to the maturity date of the Securities, in each case discounted to the redemption date on an ACTUAL/ACTUAL (ICMA) day count basis at the applicable Comparable Government Bond Rate (as defined below), plus 15 basis points, plus accrued and unpaid interest on the principal amount of the Securities to the redemption date.

 

Once notice of redemption is given, the Securities called for redemption become due and payable on the redemption date at the redemption price stated in the notice.

 

In any case, the principal amount of a Security remaining outstanding after a redemption in part shall be €100,000 or an integral multiple of €1,000 in excess thereof.  There is no sinking fund for the Securities.

 

 

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

 

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

 

“Business Day” means any day, other than a Saturday or a Sunday, (1) which is not a day on which banking institutions are authorized or obliged by law or executive order to close in New York City or London and (2) on which the Trans−European Automated Real−time Gross Settlement Express Transfer System (the TARGET2 system), or any successor thereto, is open.

 

The Company may from time to time without the consent of the Holders of Securities create and issue further notes having the same terms and conditions as the Securities so that the further issue is consolidated and form a single series with the Securities.

 

6.           Payment of Additional Amounts

 

The Company shall, subject to the exceptions and limitations set forth below, pay additional amounts as are necessary in order that the net payment by the Company of principal of and interest on the Securities to a Holder who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment or similar governmental charge (each, a “Tax”) imposed by the United States, will not be less than the amount which would have been received by such Holder in respect of such payments in the absence of such withholding or deduction; provided, however, that the foregoing obligation to pay additional amounts shall not apply:

 

	
(1)  

	
to any Tax to the extent such Tax is imposed by reason of the Holder (or the beneficial owner for whose benefit such Holder holds such Security), or a fiduciary, settlor, beneficiary, partner, member or shareholder of the Holder if the Holder is an estate, nominee, trust, partnership, limited liability company or corporation, or a person holding a power over an estate or trust administered by a fiduciary holder, being considered as:

 

  

2

  

	
(a)  

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

 

	
(b)  

	
having or having had any other connection with the United States (other than a connection arising solely as a result of the ownership of the Securities, the receipt of any payment or the enforcement of any rights hereunder), including being or having been a citizen or resident of the United States;

 

	
(c)  

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

 

	
(d)  

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

 

	
(e)  

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

 

	
(2)  

	
to any Holder that is not the sole beneficial owner of the Securities, or a portion of the Securities, or that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or limited liability company would not have been entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment;

 

	
(3)  

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

 

	
(4)  

	
to any Tax that is imposed otherwise than by withholding by the Company or a paying agent from the payment;

 

	
(5)  

	
to any estate, inheritance, gift, sales, value added, excise, transfer, wealth, gains, personal property Tax or similar Tax;

 

	
(6)  

	
to any withholding or deduction required to be made pursuant to any European Union directive on the taxation of savings, or any similar directive of any jurisdiction outside of the European Union, or any law implementing or complying with, or introduced in order to conform to any such directive;

 

  

3

  

	
(7)  

	
to any Tax required to be withheld by any paying agent from any payment of principal of or interest on any Security, if such payment can be made without such withholding by at least one other paying agent;

 

	
(8)  

	
to any Tax to the extent such Tax would not have been imposed but for the presentation by the Holder or beneficial owner of any Security, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later;

 

	
(9)  

	
to any Tax to the extent such Tax is imposed or withheld solely by reason of the beneficial owner being a bank (i) purchasing the Securities in the ordinary course of its lending business or (ii) that is neither (A) buying the Securities for investment purposes only nor (B) buying the Securities for resale to a third-party that either is not a bank or holding the Securities for investment purposes only;

 

	
(10)  

	
to any Tax imposed under Sections 1471 through 1474 of the Code (or any amended or successor provisions), any current or future regulations or other official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Internal Revenue Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Internal Revenue Code;

 

	
(11)  

	
to any backup withholding Tax imposed pursuant to Section 3406 of the Code (or any amended or successor provision);

 

	
(12)  

 

(13)   

	
to any Tax imposed pursuant to Section 871(h)(6) or 881(c)(6) of the Code (or any amended or successor provisions); or

 

in the case of any combination of items in the clauses above.

 

Except as specifically provided under this Section 6, the Company is not required to make any payment for any Tax imposed by any government or any political subdivision or taxing authority of or in any government or political subdivision.

 

As used under this Section 6 and Section 7 below, the term “United States”  means the United States of America, any state thereof or the District of Columbia, and the term “United States person” means any person that is, for U.S. federal income tax purposes, an individual who is a citizen or resident of the United States, a corporation, partnership or other entity organized under the laws of the United States, an estate, the income of which is subject to United States federal income taxation regardless of its source, or a trust, if (i) a court within the United States is able to exercise primary jurisdiction over its administration and one or more United States persons have the authority to control all of its substantial decisions, or (ii) it has a valid election is in place under applicable U.S. Treasury regulations to be treated as a domestic trust.

 

Neither the Trustee nor the Paying Agent shall be responsible for determining whether and how much additional amounts are due and shall exclusively rely on the Company’s certification as to the foregoing.

 

  

4

  

7.           Redemption Upon Tax Event

 

If, as a result of any change in, or amendment to, any laws (which includes, for the avoidance of doubt, any treaties), or any regulations or rulings promulgated thereunder, of the United States (or any taxing authority in the United States), or any change in, or amendments to, an official position regarding the application, administration or interpretation of any such laws, regulations or rulings (including a holding, judgment or order by a court of competent jurisdiction), which change or amendment is announced or becomes effective on or after March 4, 2014, the Company becomes or, based upon a written opinion of independent counsel selected by the Company, will become obligated to pay any additional amounts as provided in Section 6 with respect to the Securities, then the Company may at any time at its option redeem, in whole but not in part, the Securities on not less than 10 nor more than 60 days prior notice given by the Company to the Holders, at a redemption price equal to 100% of their principal amount, together with accrued and unpaid interest on those Securities to, but not including, the date fixed for redemption (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided, however, that the notice of redemption shall not be given earlier than 90 days before the earliest date on which the Company would be obligated to pay such additional amounts if a payment in respect of the Securities were then due.

 

	
8.  

	
Denominations, Transfer, Exchange.

 

The Securities are issuable in registered form without coupons in denominations of €100,000 and whole multiples of €1,000 in excess thereof.  The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture.  The Transfer Agent may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or the Indenture.

 

	
9.  

	
Persons Deemed Owners.

 

The registered Holder of a Security may be treated as its owner for all purposes.

 

	
10.  

	
Amendments and Waivers.

 

Subject to certain exceptions, the Indenture or the Securities may be amended with the consent of the Holders of a majority in principal amount of the Securities of all series affected by the amendment.  Subject to certain exceptions, a default on a series may be waived with the consent of the Holders of a majority in principal amount of the series.

 

Without the consent of any Securityholder, the Indenture or the Securities may be amended, among other things, to cure any ambiguity, omission, defect or inconsistency; to provide for assumption of Company obligations to Securityholders; or to make any change that does not materially adversely affect the rights of any Securityholder.

 

	
11.  

	
Restrictive Covenants.

 

The Securities are unsecured general obligations of the Company.  The Indenture does not limit other unsecured debt of the Company.  It does limit certain mortgages and sale-leaseback transactions if the property mortgaged or leased is a manufacturing facility in the United States (excluding its territories and possessions) that is of material importance to the Company’s consolidated business.  It also limits the amount of debt that may be incurred by the Company’s subsidiaries.  The limitations are subject to a number of important qualifications and exceptions.

 

  

5

  

	
12.  

	
Successors.

 

When a successor assumes all the obligations of the Company under the Securities and the Indenture, the Company will be released from those obligations.

 

	
13.  

	
Defeasance Prior to Maturity.

 

Subject to certain conditions, the Company at any time may terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of principal and interest on the Securities to maturity.  U.S. Government Obligations are securities backed by the full faith and credit of the United States of America or certificates representing an ownership interest in such obligations.

 

	
14.  

	
Defaults and Remedies.

 

An Event of Default includes: default for 30 days in payment of interest on the Securities; default in payment of principal on the Securities; default by the Company for a specified period after notice to it in the performance of any of its other agreements applicable to the Securities; and certain events of bankruptcy or insolvency.  If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities may declare the principal of all the Securities to be due and payable immediately.

 

Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture.  The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities.

 

Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Securityholders notice of any continuing default (except a default in payment of principal or interest) if it determines that withholding notice is in their interests.  The Company must furnish an annual compliance certificate to the Trustee.

 

	
15.  

	
Trustee Dealings with Company.

 

U.S. Bank National Association, the Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with those persons, as if it were not Trustee.

 

	
16.  

	
No Recourse Against Others.

 

A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.  Each Securityholder by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Securities.

 

	
17.  

	
Authentication.

 

This Security shall not be valid until authenticated by a manual signature of the Registrar.

 

  

6

  

	
18.  

	
Abbreviations.

 

Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (=tenants in common), TENENT (=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).

 

The Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture and the Bond Resolution.  Requests may be made to: Secretary, Praxair, Inc., 39 Old Ridgebury Road, Danbury, CT  06810-5113.

 

  

7

  

                                                                   ASSIGNMENT FORM

 

To assign this Security, fill in the form below:

 

I or we assign and transfer this Security to

 

                         ______________________________________________________

                            :                                                                                                                         :

                            :                                                                                                                         :

                         ______________________________________________________

                                            (Insert assignee’s soc. Sec. or tax I.D. no.)

 

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

                          (Print or type assignee’s name, address and zip code)

 

and irrevocably appoint ___________________________ agent to transfer this Security on the books 

of the Company.  The Agent may substitute another to act for him.

 

Date:   __________________________      Your signature:   ____________________________

                                                                                                             ____________________________

                              (Sign exactly as your name appears on the other side of this Security)

 

 

                                                                                       8

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