Document:

Exhibit
10.48 

 

EXECUTIVE
AGREEMENT

 

This
Executive Agreement (the “Agreement”) is made this 31st day of August 2022, by and between Endexx Corporation,
a Nevada corporation, and its affiliates, successors, and assigns (“EDXC”) and Todd Allen Davis (the “Executive”).

 

WHEREAS,
the Executive is a director, executive officer, and significant stockholder of EDXC;

 

WHEREAS,
immediately prior to the effectiveness hereof, EDXC contributed (the “EDXC – CBDU Contribution”) all of EDXC’s
operating assets and all of its liabilities directly related thereto to CBD Unlimited, Inc., a Nevada corporation (“CBDU”),
pursuant to a unanimous written consent executed by the respective boards of directors of EDXC and CBDU;

 

WHEREAS,
in connection with the EDXC – CBDU Contribution, the Executive, EDXC, and CBDU are also parties to that certain Contribution and
Exchange agreement of even date herewith (the “Exchange Agreement”), pursuant to which the Executive agreed to, among
other things, exchange a portion of his equity interest in EDXC for certain equity interests in CBDU (the transactions set forth in Exchange
Agreement, the “Exchange”);

 

WHEREAS,
in connection with the EDXC – CBDU Contribution and with the Exchange, the Executive, EDXC, and CBDU are also parties to that certain
Stockholders Agreement of even date herewith (the “Stockholders Agreement”), pursuant to which the parties thereto
made certain agreements related to their ownership of CBDU’s equity and the operation and management of CBDU;

 

WHEREAS,
EDXC and the Executive are entering into this Agreement in connection with the transactions contemplated by (i) the EDXC – CBDU
Contribution, (ii) the Exchange Agreement, and (iii) the Stockholders Agreement;

 

WHEREAS,
the Executive currently serves EDXC in the roles of its President, Secretary, and Treasurer; and

 

WHEREAS,
EDXC desires to continue to have the Executive provide services to EDXC in his role of its President and the Executive desires to continue
to provide services by EDXC in that capacity, pursuant to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained in this Agreement and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.
EFFECTIVE DATE OF AGREEMENT.

 

This
Agreement shall take effect as of August 31, 2022 (the “Effective Date”).

 

2.
STATUS; TERM.

 

EDXC
shall purchase the services of the Executive and the Executive accepts such arrangement with EDXC for the purposes and on the terms and
conditions set forth herein. The relationship set forth under this Agreement shall be “at-will”, commencing on the Effective
Date (the “Term”). During the Term, the relationship between EDXC and the Executive hereunder shall be subject to
termination as specified in Section 5.

 

    	Endexx Todd Davis Agreement August 2022.3	1 

    	 

    

 

3.
TITLE; DUTIES.

 

During
the Term, the Executive shall serve as the President of EDXC, and the Executive shall perform all duties and accept all responsibilities
incidental to such position as reasonably specified from time to time by the board of directors of EDXC, including but not limited to:
(i) day-to-day oversight of EDXC’s status as a public company, coordination of all of its regulatory filings (e.g., the
Securities and Exchange Commission and OTC Markets Group Inc.), and coordinating and directing its investor relations programs and (ii)
operating CBDU’s business, subject to oversight by the boards of directors of CBDU and EDXC. In respect of item (i), above, the
Executive shall report directly to EDXC’s board of directors. In respect of item (ii), above, the Executive shall report directly
to both CBDU’s board of directors and EDXC’s board of directors. During the Term, the Executive shall spend not less than
40 hours a week in the faithful discharge of his duties in a diligent manner. Notwithstanding the above and without a breach of the terms
of this Agreement, the Executive intends to engage in any outside business activities that (i) are not competitive with the business
of EDXC and its “Subsidiaries” and (ii) do not distract from his discharge of the services that he is rendering pursuant
to this Agreement, the lack of objection to the Executive’s provision of which outside business activities is hereby confirmed
by EDXC. For the purposes of this Agreement, “Subsidiaries” shall include, but not be limited to, any subsidiary that
EDXC lists in any periodic reports that it files with the U.S. Securities and Exchange Commission and, specifically, EH Sub Inc., Hyla
US Holdco Limited, a Delaware corporation, and CBDU.

 

4.
COMPENSATION.

 

The
Executive’s compensation for all services rendered to or on behalf of EDXC shall be as follows:

 

4.1.
Base Compensation.

 

During
the Term, the Executive shall be paid base compensation on a calendar monthly basis at the rate of Ten Thousand Dollars ($10,000.00)
(the “Base Compensation”). By virtue of the Executive’s other professional activities, outside of and not in
competition with his duties hereunder, the Executive has confirmed to EDXC that his status as President is as an “independent contractor,”
rather than as an employee. The Executive will indemnify and hold EDXC and its Subsidiaries harmless from and against any tax, tax-related,
or other issues related to the Executive’s determination of his independent, and not employee status.

 

4.2.
Health Insurance.

 

During
the Term, the Executive may participate in all standard health insurance as made available by EDXC to its executives, which cost shall
be borne by EDXC.

 

4.3.
Expense Reimbursement

 

During
the Term, EDXC shall reimburse the Executive for his reasonable expenses supported by appropriate documentation incurred by him in connection
with his fulfillment of his duties hereunder.

 

5.
TERMINATION.

 

5.1.
Reserved.

 

    	Endexx Todd Davis Agreement August 2022.3	2 

    	 

    

 

5.2.
Termination Without Cause.

 

Either
the Executive or EDXC may terminate the relationship set forth under this Agreement for any reason or no reason upon thirty (30) days’
written notice. In the event of such termination, except as otherwise provided in Section 6.1, the Executive shall have no right to receive
any compensation or other benefits under this Agreement after the effective date of termination, provided that EDXC will pay the
Executive his then-applicable Base Compensation earned through the date of termination at the conclusion of such 30-day period. The termination
will become effective as of the end of such 30-day period.

 

5.3.
Termination by EDXC for Cause.

 

Any
of the following acts or omissions shall constitute grounds for the Board of Directors of EDXC (the “Board”) to terminate
the Executive’s the relationship set forth under this Agreement for “Cause”: (i) intentional misconduct in the
performance of the Executive’s duties hereunder that is materially injurious to EDXC or to CBDU; (ii) the Executive’s conviction
of, or plea of nolo contendere to, a felony; (iii) the Executive’s material dishonesty relating to the performance of his services
hereunder; (iv) the Executive’s breach of a fiduciary duty owed to EDXC or its Subsidiaries; (v) the Executive’s misappropriation
of confidential information or material property or assets of EDXC or its Subsidiaries; (vi) CBDU is sold or ceases operations as permitted
in the Stockholders Agreement, of even date herewith, between EDXC and the Executive (the “Stockholders Agreement”),
or (vii) the Executive’s breach of this Agreement. Notwithstanding anything in this Agreement to the contrary, termination for
Cause shall be accomplished and effective immediately upon receipt by the Executive of written notice from the Board. Any such termination
shall be without prejudice to any other remedy to that EDXC may be entitled either at law, in equity, or under this Agreement. In the
event the Executive’s relationship set forth under this Agreement is terminated for Cause, the Executive shall separate from service
with EDXC after the date of termination and shall have no right to receive compensation or other benefits under this Agreement after
the date of termination, other than any compensation accrued prior to such termination but unpaid as of such termination and any continuation
of group health coverage to which the Executive and his qualified beneficiaries may be entitled, at his sole expense, under Section 4980B
of the Internal Revenue Code of 1986, as amended or similar state law.

 

5.4.
Termination by the Executive for Good Reason.

 

The
Executive’s separation from service under this Agreement may be terminated by the Executive for Good Reason in accordance with
this Section 5.4 and shall be treated as an involuntary separation from service. For purposes of this Agreement, any of the following
acts or omissions without the Executive’s express written consent shall constitute the only grounds for the Executive to initiate
a separation from service with EDXC pursuant to this Agreement for “Good Reason”: (i) the reduction of the Executive’s
Base Compensation or the failure to provide the Executive with agreed-upon benefits, in either case without the Executive’s consent;
(ii) the Executive’s job title is reduced to a lower job title; (iii) the services that the Executive is providing hereunder, when
taken as a whole, are materially diminished (without the Executive’s consent) from those in effect as of the effective date of
this Agreement or as subsequently agreed between the Executive and EDXC; or (iv) EDXC materially breaches this Agreement. For clarity
and not by way of limitation, the Executive may not use “Termination by EDXC for Cause” to constitute “Termination
by the Executive for Good Reason.” Notice of a condition purported to constitute Good Reason must be provided to EDXC in writing
by the Executive within thirty (30) days following the Executive’s knowledge of the first occurrence of such purported condition
and must state a proposed date of termination by the Executive that is at least thirty (30) days but not more than ninety (90) days after
the date of such notice, during which time EDXC shall be given the opportunity to cure any basis for such Good Reason. The Executive’s
failure to provide a timely notice of Good Reason shall foreclose the Executive from asserting Good Reason for the purpose of receipt
of those benefits provided for in Section 6.1 with respect to such condition at any later date. If no cure is timely effected, then the
Executive’s termination with Good Reason shall be effective as of the date of termination specified in the notice of termination.
In the event of such termination, except as otherwise provided in Section 6.1, the Executive shall have no right to receive any compensation
or other benefits under this Agreement after the effective date of termination, provided that EDXC will pay the Executive his
then-applicable Base Compensation earned through the date of termination at date of termination.

 

    	Endexx Todd Davis Agreement August 2022.3	3 

    	 

    

 

5.5.
Termination for Death or Disability.

 

This
Agreement and the Executive’s relationship hereunder shall terminate if the Executive dies or suffers a Disability. For purposes
of this Agreement, the term “Disability” means any physical or mental impairment or illness that has prevented the
Executive from performing the normal duties hereunder for a cumulative period of at least one hundred eighty (180) consecutive days and
which is expected to be of permanent duration. A determination of whether such impairment or illness is expected to be of permanent duration
shall be made by a licensed physician mutually acceptable to the Executive and EDXC. It is EDXC’s intent to comply with the Family
and Medical Leave Act and the Americans with Disabilities Act, if applicable, and nothing in this Section 5.5 should be construed to
the contrary. In the event the Executive’s relationship hereunder is terminated due to death or Disability, the Executive’s
relationship shall cease after the date of termination and shall have no right to receive compensation or other benefits under this Agreement
after the date of termination.

 

6.
PAYMENTS UPON TERMINATION.

 

6.1.
Post-termination Payments. 

 

In
the event that, during the Term, (i) the Executive’s relationship hereunder has been terminated without Cause by EDXC in accordance
with Section 5.2; or (ii) the Executive voluntarily terminates his relationship hereunder with EDXC during the Term for Good Reason in
accordance with Section 5.4, the Executive shall be entitled to his then-current Base Compensation as set forth in Section 4.1 (the “Post-termination
Payments”) for a period of six (6) months. The Post-termination Payments are contingent upon the Executive’s executing,
and not revoking, a full waiver and release of all claims in a commercially reasonable form prepared by and acceptable to EDXC (the “Release”)
and upon the Executive complying with the Executive’s obligations under Section 7 of this Agreement. Provided that the Executive
has first executed the Release, and does not revoke such Release, the Post-termination Payments will begin on the first day of the month
that occurs after the 60th day following the Executive’s termination date.

 

6.2.
Effect of Termination for Reasons Not Covered by Section 6.1.

 

In
the event the Executive’s relationship hereunder is terminated: (i) [reserved]; (ii) by the Executive under Section 5.2; (iii)
by EDXC for Cause under Section 5.3; (iv) by the Executive for reasons that do not satisfy the criteria set forth in Section 5.4, as
applicable; or (v) by reason of death or Disability of the Executive under Section 5.5, then the Executive shall cease to provide services
to EDXC after the date of termination, and, except for the Executive’s regular Base Compensation earned through the date of termination,
the Executive shall have no right to receive any other compensation or other benefits under this Agreement after the date of termination.
EDXC will pay the Executive his then-applicable Base Compensation as of the termination date. The Executive’s obligations under
Section 7 of this Agreement shall continue in accordance with their terms.

 

    	Endexx Todd Davis Agreement August 2022.3	4 

    	 

    

 

6.3.
Release and Compliance with Obligations. 

 

Notwithstanding
any other provision of this Agreement, EDXC shall have no obligation to pay or provide, and the Executive shall have no right to receive,
the Post-termination Payments unless the Executive first executes, and does not revoke, the Release and unless the Executive complies
with his obligations under Section 7 of this Agreement.

 

7.
CONFIDENTIAL INFORMATION.

 

7.1.
Access to Confidential Information.

 

The
Executive understands and acknowledges that, during the period that he provides services to EDXC, he will have access to and become familiar
with confidential information belonging to EDXC and each of its Subsidiaries. Examples of confidential information include, but are not
limited to, financial information, non-public information pertaining to the business operations, clients, lists of clients, client records,
notes, market studies and plans, policies and procedures, sales aids, marketing methods, and all other types of proprietary data and
plans for EDXC and its Subsidiaries (collectively, the “Confidential Information”).

 

7.2.
Covenant Not to Use or Disclose.

 

The
Executive understands that the Confidential Information is the exclusive property of EDXC and its Subsidiaries. The Executive agrees
that, during and after the term of this Agreement, the Executive will not, directly or indirectly, use any of the Confidential Information
for his own benefit or in any way that is or could be deemed to be detrimental to EDXC or its Subsidiaries. The Executive also agrees
that he will not disclose any Confidential Information to anyone other than authorized officers of EDXC or its Subsidiaries

 

7.3.
Return of Property.

 

Upon
the cessation of the Executive’s relationship with EDXC hereunder for any reason or no reason or at any other time upon EDXC’s
request, the Executive will promptly return to EDXC any and all written information, materials and equipment that constitute, contain,
or relate in any way to proprietary or confidential information or trade secrets of EDXC (including, but not limited to, Confidential
Information) and any other documents, equipment, and materials of any kind that constitute the property of EDXC or its Subsidiaries,
whether confidential or not, including any and all copies or notes thereof that may have been made by or for the Executive. After the
cessation of the Executive’s relationship with EDXC hereunder, the Executive shall not retain, in hard copy, computer, electronic,
or any other form, any information that constitutes, contains, or relates in any way to proprietary, confidential, or trade secret information
of EDXC or its Subsidiaries. Upon request by EDXC, the Executive will provide a certification or declaration that the Executive is in
compliance with this Section 7.3 of this Agreement, that the Executive has returned all Company property to EDXC, and that the Executive
is not using, and does not possess, any Confidential Information.

 

    	Endexx Todd Davis Agreement August 2022.3	5 

    	 

    

 

7.4.
Specific Performance.

 

In
the event of any controversy concerning the rights or obligations under this Section 7, such rights or obligations shall be enforceable
in a court of equity by a decree of specific performance. Such equity shall, however, be cumulative and nonexclusive and shall be in
addition to any other remedy to which the parties may be entitled. The Executive acknowledges that a breach of the provisions of this
Section 7 will cause irreparable damage to EDXC or its Subsidiaries, the exact amount of which will be difficult or impossible to ascertain,
and that EDXC’s remedies at law for any such breach will be inadequate. Accordingly, upon a breach of the covenants and agreements
contained in this Section 7, in addition to all other rights and remedies existing in its favor, EDXC, its successors, assigns, or affiliates
may apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent
any violations of the provisions hereof without the requirement of posting any bond.

 

8.
SECTION 409A COMPLIANCE

 

The
parties to this Agreement intend that the Agreement complies with Section 409A of the Internal Revenue Code of 1986, as amended (“the
Code”), where applicable, and this Agreement will be interpreted in a manner consistent with that intention. If employed, a
termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
of any amounts or benefits upon or following a termination of employment unless such termination qualifies as a “separation from
service” within the meaning of Section 409A of the Code and, for purposes of any such provision of this Agreement, references to
a “termination,” “termination of employment,” or like terms will mean a “separation from service.”
For purposes of Section 409A of the Code, each payment made in accordance with this Agreement will be designated as a “separate
payment” within the meaning of Section 409A of the Code. Notwithstanding anything to the contrary herein, except to the extent
any expense, reimbursement or in-kind benefit provided pursuant to this Agreement does not constitute a “deferral of compensation”
within the meaning of Section 409A of the Code: (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to
the Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided
to the Executive in any other calendar year, (ii) the reimbursements for expenses for which the Executive is entitled to be reimbursed
will be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred,
and (iii) the right to reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

9.
WAIVER.

 

A
waiver by EDXC of a breach by the Executive of any provision or covenant of this Agreement shall not operate or be construed as a waiver
of any other breach by the Executive. A waiver by the Executive of a breach by EDXC of any provision or covenant of this Agreement shall
not operate or be construed as a waiver of any other breach by EDXC.

 

10.
GOVERNING LAW; FORUM SELECTION.

 

This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Arizona without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of Arizona or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Arizona. The parties hereto agree that any suit or proceeding arising out of
this Agreement shall be brought only in the State of Arizona or U.S. Federal District courts located in Maricopa County, Arizona; provided,
however, that no party waives his or its right to request removal of such action or proceeding from the state court to a federal
court. Each party hereto consents to the personal jurisdiction of such courts and agrees that service of process in any such suit or
proceeding such be sufficiently accomplished if accomplished in accordance with the notice provisions set forth in the Agreement.

 

    	Endexx Todd Davis Agreement August 2022.3	6 

    	 

    

 

11.
WAIVER OF JURY TRIAL.

 

EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

12.
AMENDMENTS.

 

No
amendment or addition to this Agreement shall be binding unless it is approved by EDXC’s Board of Directors and is in writing and
signed by the Executive and an individual specifically authorized by the Board of Directors to execute such amendment or addition to
this Agreement.

 

13.
SEVERABILITY.

 

If
any of the provisions of this Agreement are held to be void, illegal, invalid, or unenforceable by a court of competent jurisdiction,
the remaining provisions hereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts
had not been included therewith. In the event that any provision in this Agreement relating to the time period, areas of restriction,
and/or the scope of actions precluded shall be declared by a court of competent jurisdiction to exceed the maximum time period, areas
of restriction and/or scope of actions precluded as such court deems reasonable and enforceable, then in such event the time period,
areas of restriction and/or scope of actions precluded deemed most beneficial to EDXC but reasonable and enforceable by the court shall
become and thereafter be the maximum time period, areas of restriction and/or scope of actions precluded hereunder.

 

14.
NOTICES.

 

Any
and all notices or other communications or deliveries required or permitted to be given or made pursuant to any of the provisions of
this Agreement shall be deemed to have been duly given or made for all purposes if made in writing and: (a) hand delivered, (b) sent
by a nationally recognized overnight courier, or (c) sent by electronic transmission (with confirmation by the transmitting equipment)
as follows:

 

If
to EDXC:

 

Endexx
Corporation

38246
North Hazelwood Circle

Cave
Creek, Arizona 85331

Attention:
_____________

Email:
____________________

 

with
a mandatory copy (which shall not constitute notice) to:

 

Clark
Hill PLC

555
South Flower Street, 24th Floor

Los
Angeles, California 90071

Attention:
Randolf W. Katz

Email:
Rkatz@clarkhill.com

 

    	Endexx Todd Davis Agreement August 2022.3	7 

    	 

    

 

If
to the Executive:

 

Todd
Allen Davis

37043
North Kohuana Place

Cave
Creek, Arizona 85331

Email:
todski17@yahoo.com

 

With
a mandatory copy (which shall not constitute notice) to:

 

[Info
for Todd’s counsel]

Attention:
_________

Email:
____________

 

or
at such other address as any party may specify by notice given to the other party in accordance with this Section. The date of giving
of any such notice shall be the date of hand delivery, the date sent by telephone facsimile, and the day after delivery to the overnight
courier service.

 

15.
Intentionally Omitted.

 

16.
ASSIGNMENT.

 

This
Agreement is not assignable by the Executive or by EDXC. Any purported assignment by the Executive in violation of this Section shall
be void ab initio.

 

17.
CAPTIONS.

 

The
captions of the paragraphs of this Agreement are for convenience only and shall not affect in any way the meaning or interpretation of
this Agreement or any of the provisions of this Agreement.

 

18.
ATTORNEYS’ FEES.

 

In
the event of litigation to enforce or defend enforcement of the terms of this Agreement, the prevailing party shall be entitled to collect
from the other party, all of his or its costs, including without limitation, court costs and reasonable attorneys’ fees.

 

19.
ENTIRE AGREEMENT.

 

This
Agreement, the Exchange Agreement, and the Stockholders Agreement executed in connection with the Exchange contain the entire agreement
of the parties relating to the subject matter hereof and supersede all prior agreements and understandings with respect to such subject
matter (including any prior agreements between the Executive and EDXC), which prior agreements are hereby null and void and of no further
effect. Except for the Exchange Agreement and the Stockholders Agreement, the parties hereto have made no agreements, representations
or warranties relating to the subject matter of this Agreement which are not set forth herein. The recitals set forth herein are true
and correct and hereby made a representation under this Agreement. Nothing in this Agreement shall supersede or otherwise amend any provisions
of the Stockholders Agreement.

 

20.
Counterparts and Signatures.

 

This
Agreement may be executed in as many counterparts as may be deemed necessary and convenient, each of which when so executed shall be
deemed an original, but all such counterparts shall constitute but one and the same instrument. One or more counterparts of this Agreement
may be delivered by facsimile or other electronic means, with the intention that delivery by such means shall have the same effect as
delivery of an original counterpart.

 

[Signature
Page Follows]

 

    	Endexx Todd Davis Agreement August 2022.3	8 

    	 

    

 

 

IN
WITNESS WHEREOF, and intending to be legally bound, the parties have signed this Agreement as of the date first above written. 

 

	 	ENDEXX
    CORPORATION
	 	 
	 	By:	                   
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 
	 	TODD ALLEN DAVIS

 

    	Endexx Todd Davis Agreement August 2022.3	9ex_421448.htm

Exhibit 4.1

 

 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“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 is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to 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.

 

This Security is a Global Security as referred to in the Indenture hereinafter referenced. Unless and until it is exchanged in whole or in part for the individual Securities represented hereby, this Global Security 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.

 

Union Pacific Corporation

4.500% Note due 2033

 

Registered                 $900,000,000

 

No. R-1                   CUSIP No. 907818 GB8

 

UNION PACIFIC CORPORATION, a corporation duly organized and existing under the laws of the State of Utah (herein called the “Company”, which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to

 

Cede & Co.

 

or registered assigns, the principal sum of $900,000,000 at the office or agency of the Company in the Borough of Manhattan, The City of New York, on January 20, 2033, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum at the rate per annum specified above semiannually on January 20 and July 20 of each year (each, an “Interest Payment Date”), commencing January 20, 2023. Interest shall be paid from the Interest Payment Date, as the case may be, next preceding the date of this Note to which interest on the Notes (as defined below) has been paid or duly provided for (unless the date hereof is the date to which interest on the Notes has been paid or duly provided for, in which case from the date of this Note), or, if no interest has been paid on the Notes or duly provided for, from September 9, 2022 until payment of said principal sum has been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after January 5 or July 5 (each, a “Regular Record Date”), as applicable, and before the next succeeding Interest Payment Date, this Note shall bear interest from such Interest Payment Date, as the case may be; provided, however, that if the Company shall default in the payment of interest due on such Interest Payment Date, then this Note shall bear interest from the next preceding Interest Payment Date to which interest on the Notes has been paid or duly provided for, or if no interest has been paid on the Notes or duly provided for, from September 9, 2022. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, except as provided in the Indenture dated as of April 1, 1999 (herein called the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as successor to The Bank of New York Mellon (formerly known as The Bank of New York), as successor to JPMorgan Chase Bank, N.A. (formerly The Chase Manhattan Bank), as Trustee (herein called the “Trustee”), 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 next preceding Regular Record Date, whether or not a Business Day, and may, at the option of the Company, be paid by check mailed to the registered address of such Person. Any such interest which is payable, but is not so punctually paid or duly provided for, shall forthwith cease to be payable to the registered Holder on such Regular Record Date and may be paid either 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 whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or may 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, if such manner of payment shall be deemed practical by the Trustee, all as more fully provided in the Indenture. Notwithstanding the foregoing, in the case of interest payable at Maturity, such interest shall be paid to the same Person to whom the principal hereof is payable. In the event that any date on which the principal of or interest on this Note is payable is not a Business Day, then payment of the principal or interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.

 

 

 

 

The Bank of New York Mellon Trust Company, N.A. is the Paying Agent and the Security Registrar with respect to the Notes. The Company reserves the right at any time to vary or terminate the appointment of any Paying Agent or Security Registrar, to appoint additional or other Paying Agents and other Security Registrars, which may include the Company, and to approve any change in the office through which any Paying Agent or Security Registrar acts; provided that there will at all times be a Paying Agent in The City of New York and there will be no more than one Security Registrar for the Notes.

 

This Note is one of the duly authorized issue of notes, debentures, bonds or other evidences of indebtedness (hereinafter called the “Securities”) of the Company, of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee and any agent of the Trustee, any Paying Agent, the Security Registrar, the Company and the Holders of the Securities and the terms upon which the Securities are issued and are to be authenticated and delivered.

 

The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different redemption provisions (if any), may be subject to different sinking, purchase or analogous funds (if any), may be subject to different covenants and Events of Default and may otherwise vary as provided or permitted in the Indenture. This Note is one of the series of Securities of the Company issued pursuant to the Indenture and designated as the 4.500% Notes due 2033 (herein called the “Notes”).

 

At any time before October 20, 2032, the Notes will be redeemable in whole or in part at any time and 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 and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon that would be due if the Notes matured on October 20, 2032 (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360‐day year consisting of twelve 30‐day months) at the Treasury Rate (as defined below) plus 20 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to the Redemption Date.

 

At any time on or after October 20, 2032 the Notes will be redeemable in whole or in part at any time and 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 on the principal amount being redeemed to the Redemption Date.

 

“Business Day” means any calendar day that is not a Saturday, Sunday or legal holiday in New York, New York and on which banking institutions and trust companies are open for business in New York, New York.

 

“Treasury Rate” means, with respect to any Redemption Date, the yield determined by the Company in accordance with the following two paragraphs.

 

The Treasury Rate shall be determined by the Company after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the redemption date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as “Selected Interest Rates (Daily) - H.15” (or any successor designation or publication) (“H.15”) under the caption “U.S. government securities–Treasury constant maturities–Nominal” (or any successor caption or heading). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the “Remaining Life”); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields – one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life – and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the redemption date.

 

 

 

 

If on the third Business Day preceding the redemption date H.15 or any successor designation or publication is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second Business Day preceding such redemption date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places.

 

The Company’s actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error.

 

Notwithstanding Section 1104 of the Indenture, notice of the redemption will be transmitted to Holders of Notes at least 10 and not more than 60 days prior to the Redemption Date. If fewer than all of the Notes are to be redeemed, the Trustee will select, not more than 60 days prior to the Redemption Date, the particular Notes or portions thereof for redemption from the Outstanding Notes not previously called for redemption by lot; provided that if the Notes are represented by one or more global securities, beneficial interests in such Notes will be selected for redemption by the applicable depositary in accordance with its standard procedures therefor. Notwithstanding Section 1104 of the Indenture, the notice of any such redemption occurring before October 20, 2032 need not set forth the Redemption Price but only the manner of calculation thereof. The Company shall give the Trustee notice of the Redemption Price for any such redemption promptly after the calculation thereof and the Trustee shall have no responsibility for such calculation.

 

If a Change of Control Repurchase Event occurs with respect to the Notes, unless the Company has exercised its right to redeem the Notes as described above, and notice of such redemption has been given to the Holders of the Notes in accordance with the Indenture (as further described above), the Company will be required to make an offer to each Holder of the Notes to repurchase all or any part (in integral multiples of $1,000) of that Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of such Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Within 30 days following a Change of Control Repurchase Event or, at the Company’s option, prior to a Change of Control, but after the public announcement of the Change of Control, the Company will deliver a notice to each Holder of the Notes, with a copy to the Trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is sent. The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on a Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. The Company will 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 Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Repurchase Event provisions of the Notes by virtue of such conflict.

 

On the repurchase date following a Change of Control Repurchase Event, the Company will, to the extent lawful:

 

(1)         accept for payment all Notes or portions of Notes properly tendered pursuant to the Company’s offer;

 

(2)         deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered; and

 

(3)         deliver or cause to be delivered to the Paying Agent the Notes properly accepted, together with an Officers’ Certificate stating the aggregate principal amount of Notes being purchased by the Company and that all conditions precedent provided for in the Indenture to the repurchase offer and to the repurchase by the Company of the Notes pursuant to the repurchase offer have been complied with.

 

The Paying Agent will promptly deliver to each Holder of Notes properly tendered the purchase price for the Notes, and the Trustee will promptly authenticate and deliver (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a principal amount of an integral multiple of $1,000.

 

 

 

 

The Company will not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer.

 

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

 

“Change of Control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than the Company or 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 combined voting power of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed measured by voting power rather than number of shares.

 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Ratings Event with respect to the Notes.

 

“Fitch” means Fitch, Inc., also known as Fitch Ratings, and its successors.

 

“Investment Grade” means a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); and the equivalent investment grade credit rating from any additional Rating Agency or Rating Agencies selected by the Company.

 

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

 

“Rating Agency” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, 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) under the Exchange Act, selected by the Company (as certified by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors.

 

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

 

If an Event of Default with respect to the Notes shall occur and be continuing, the principal of all of the Notes may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee to enter into supplemental indentures to the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner the rights of the Holders of the Securities of each series under the Indenture with the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding of each series to be affected thereby on behalf of the Holders of all Securities of such series. The Indenture also permits the Holders of a majority in principal amount of the Securities at the time Outstanding of each series, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults and their consequences with respect to such series under the Indenture. 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 hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note or such other Notes.

 

 

 

 

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

 

As provided in the Indenture and subject to the satisfaction of certain conditions therein set forth, including the deposit of certain trust funds in trust, the Company shall be deemed to have paid and discharged the entire indebtedness represented by, and the obligations under, the Securities of any series and to have satisfied all the obligations (with certain exceptions) under the Indenture relating to the Securities of such series.

 

The Notes are issuable in registered form without coupons in denominations of $1,000 and any integral multiple of $1,000. Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company in the Borough of Manhattan, The City of New York, designated for such purpose, and in the manner and subject to the limitations provided in the Indenture.

 

Upon due presentment for registration of transfer of this Note at the office or agency of the Company in the Borough of Manhattan, The City of New York designated for such purpose, a new Note or Notes of authorized denominations for a like aggregate principal amount will be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture.

 

No charge shall be made for any such transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge imposed in connection therewith.

 

Except as otherwise provided in the Indenture, 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 is overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the contrary.

 

Unless otherwise defined herein, all terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

This Note shall be construed in accordance with and governed by the laws of the State of New York.

 

Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee under the Indenture, this Note shall not be entitled to any benefits under the Indenture, or be valid or obligatory for any purpose.

 

 

 

 

In Witness Whereof, Union Pacific Corporation has caused this Note to be duly executed.

 

Dated: September 9, 2022                                                                        Union Pacific Corporation

 

________________________

Michael V. Miller

Vice President and Treasurer

 

 

Attest: ____________________________

Michael S. Schmidt

Assistant Secretary

 

Trustee’s Certificate of Authentication

 

This is one of the Securities of the series designated therein referred to in the within mentioned Indenture.

 

THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Trustee

 

Dated:___________________________  By:________________________________

Authorized Signatory

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